House Bill No. 248
Introduced By harper
A Bill for an Act entitled: "An Act CLARIFYING TERMS AND CONDITIONS OF BOARD OF INVESTMENTS LOANS TO STATE AGENCIES; increasing the bonding limit of the board of investments from $50 million to $75 million for the purposes of the Municipal Finance Consolidation Act; amending section
17-5-1608, MCA; and providing an IMMEDIATE effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 17-5-1608, MCA, is amended to read:
"17-5-1608. Limitations on amounts. The board may not issue any bonds or notes that cause the total outstanding
indebtedness of the board under this part (except for bonds or notes issued to fund or refund other outstanding bonds or
notes or to purchase registered warrants or tax or revenue anticipation notes of a local government as defined in 7-6-1101)
$50 $75 million."
NEW SECTION. SECTION 2. LOANS TO STATE AGENCIES. AN AGENCY RESPONSIBLE FOR THE PROCUREMENT AND PROVISION OF VEHICLES AND EQUIPMENT USING AN ENTERPRISE FUND OR AN INTERNAL SERVICE FUND, AS DESCRIBED IN 17-2-102, IS AUTHORIZED TO ENTER INTO CONTRACTS, LOAN AGREEMENTS, OR OTHER FORMS OF INDEBTEDNESS PAYABLE OVER A TERM NOT TO EXCEED 7 YEARS FOR THE PURPOSE OF FINANCING THE COST OF THE VEHICLES AND EQUIPMENT AND TO PLEDGE TO THE REPAYMENT OF THE INDEBTEDNESS THE REVENUE OF THE ENTERPRISE FUND OR INTERNAL SERVICE FUND IF:
(1) THE TERM OF THE INDEBTEDNESS DOES NOT EXCEED THE USEFUL LIFE OF THE ITEMS BEING FINANCED; AND
(2) AT THE TIME THAT THE INDEBTEDNESS IS INCURRED, THE PROJECTED REVENUE OF THE FUND, BASED ON THE FEES AND CHARGES APPROVED BY THE LEGISLATURE AND OTHER AVAILABLE FUND REVENUE, WILL BE SUFFICIENT TO REPAY THE INDEBTEDNESS OVER THE PROPOSED TERM AND TO MAINTAIN THE OPERATION OF THE ENTERPRISE.
NEW SECTION. SECTION 3. CODIFICATION INSTRUCTION. [SECTION 2] IS INTENDED TO BE CODIFIED AS AN INTEGRAL PART OF TITLE 17, CHAPTER 5, AND THE PROVISIONS OF TITLE 17, CHAPTER 5, APPLY TO [SECTION 2].
NEW SECTION. Section 4. Effective date. [This act] is effective
July 1, 1997 ON PASSAGE AND APPROVAL.