House Bill No. 350
Introduced By beaudry, harrington, menahan, lynch, ohs
A Bill for an Act entitled: An Act revising the authority for the size of loans that enhance economic development and create jobs in the basic sector of the economy; providing a 4-year period over which to assess the creation of jobs; extending to 4 years the period for measuring jobs to calculate interest rate reductions for infrastructure loans; and amending sections 17-6-311 and 17-6-318, MCA.
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 17-6-311, MCA, is amended to read:
"17-6-311. Limitation on size of investments. (1) Except as provided in subsections (2) through (4), an investment may not be made that will result in any one business enterprise or person receiving a benefit from or incurring a debt to the permanent coal tax trust fund the total current accumulated amount of which exceeds 1% of the permanent coal tax trust fund.
(2) Subsection (1) does not limit the board's authority to make loans to the capital reserve account as provided in 17-6-308(2).
(3) Subsection (1) does not apply to the purchase of debentures issued by a capital company; however, the total amount of such debentures purchased by the board may not exceed 1% of the Montana permanent coal tax trust fund at the time of purchase.
(4) The total amount of loans made pursuant to 17-6-309(2) may not exceed $20 million, and a single loan may not be less
Loans must be made in $250,000 increments. A loan may not exceed $10,000 per job that is estimated to be
created. In determining the size of a loan made pursuant to 17-6-309(2), the board shall consider:
(a) the estimated number of jobs to be created by the project within a 4-year period from the time that the loan is made and the impact of the jobs on the state and the community where the project will be located;
(b) the long-term effect of corporate and personal income taxes estimated to be paid by the business and its employees;
(c) the current and projected ability of the community to provide necessary infrastructure for economic and community development purposes; and
(d) other matters that the board considers necessary."
Section 2. Section 17-6-318, MCA, is amended to read:
"17-6-318. Job credit interest rate reduction for small business loan participations. (1) A borrower who uses the
proceeds of a small business loan participation funded under the provisions of this part to create jobs employing Montana
residents is entitled to a job credit interest rate reduction for each job created over a 2-year period to employ a Montana
resident. A borrower who used the proceeds of a loan made pursuant to 17-6-309(2) to create jobs is entitled to a job credit
interest rate reduction for each job created in the 4-year period provided for in 17-6-311(4)(a). The date of the formal
written interim or permanent loan application to the financial institution will be used as a beginning date for counting the
number of jobs created. The job credit interest rate reduction may not apply to a loan participation of more than 1% of the
total of the permanent coal tax trust fund determined at the end of the
last completed last-completed fiscal year. The job
credit interest rate reduction is equal to 0.05% for each job created to employ a Montana resident, up to a maximum interest
rate reduction of 2.5%.
(2) If the salary or wage of the job created:
(a) exceeds the average weekly wage, as defined in 39-71-116, the amount of the job credit interest rate reduction may be increased proportionately for each increment of 25% above the average weekly wage to a maximum of two times the average weekly wage; or
(b) is less than the average weekly wage, as defined in 39-71-116, the job credit interest rate reduction is reduced proportionately for each 25% increment below the average wage.
(3) A job credit interest rate reduction may not be allowed for a job created by the borrower using the proceeds of the loan for which the salary or wage is less than the minimum wage provided for in 39-3-409.
No A job credit will may not be given unless one whole job is created.
(5) To qualify for the job credit interest rate reduction, the borrower shall provide satisfactory evidence of the creation of
jobs and make application in writing, through its financial institution, to the board when the loan is delivered to the board
or not later than 45 days after the
first and second applicable anniversary dates of the loan."