HOUSE BILL NO. 14
INTRODUCED BY M. MCCANN
AN ACT AUTHORIZING THE CREATION OF STATE DEBT THROUGH THE ISSUANCE OF GENERAL OBLIGATION BONDS; APPROPRIATING THE PROCEEDS OF THE BONDS FOR CAPITAL PROJECTS FOR THE BIENNIUM ENDING JUNE 30, 2003; PROVIDING FOR MATTERS RELATING TO APPROPRIATIONS; AMENDING SECTION 2, CHAPTER 518, LAWS OF 1999; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Definitions. For the purposes of [sections 1 through 9], unless otherwise stated, the following definitions apply:
(1) "Capital project" means the acquisition of land or improvements or the planning, capital construction, renovation, furnishing, or major repair projects, including broadcast transmission lines, transmitters, and related equipment, authorized in [sections 1 through 9].
(2) "CPF" means the capital projects fund.
(3) "Other funding sources" means money other than CPF money, including special revenue fund money, that accrues to an agency under the provisions of the law.
Section 2. Appropriation of bond proceeds and other funds. (1) The following money is appropriated from the CPF and other funding sources to the department of administration for the capital projects described in this section, contingent upon the respective authorization of general obligation long-range building program bonds by the 57th legislature and the sale of the bonds by the board of examiners:
Agency/Project CPF Other Funding Sources
DEPARTMENT OF CORRECTIONS
Construct Central Reception Unit,
MSP, Deer Lodge $5,000,000
It is the intent of the 57th legislature that the department of corrections reduce its general fund present law base by $300,000 a year because of the savings from paying local governments to hold offenders as a result of building the new reception center. This reduction is to occur when the new reception center starts receiving offenders. The reduction for the first year is to be on a pro rata basis for the portion of the first fiscal year that the new reception center is receiving offenders. The reduction in the following years is to be $300,000.
DEPARTMENT OF MILITARY AFFAIRS
Construct New Armory, Dillon 1,940,000
It is the intent of the 57th legislature that all future operating and maintenance for the Dillon armory be funded from its base budget.
MONTANA UNIVERSITIES AND COLLEGES
Renovate Chemistry Building 6,350,000
UM-Missoula
Renovate Liberal Arts, Life Safety/ 3,220,000
Deferred Maintenance, MSU-Billings
Renovate Exterior Linfield Hall and 1,450,000
Montana Hall/Deferred Maintenance,
MSU-Bozeman
Upgrade HVAC Systems, Cowan Hall, 2,173,000
MSU-Northern
Construct Applied Technology Center, 2,000,000
MSU-Northern
Agricultural Experiment Station, 1,000,000
MSU-Bozeman
Install PBS Digital Conversion, 1,892,286
MSU-Bozeman
(2) The university system and the information services division of the department of administration will work together to develop network plans or procedures that provide for the highest degree of bandwidth and cost-sharing capability between the university system and the department that is within technical specifications agreed to by the parties and is mutually beneficial to them. This obligation to cooperate and coordinate for the purpose of seeking mutually beneficial network arrangements applies to the intercity transport services acquired by the university system or the department of administration to meet the needs of the public broadcast system, including the utilization and sharing of excess capacity bandwidth to help meet the telecommunication needs of all state agencies in a manner that is both cost-effective and compatible with the efficient operation of the public broadcast system.
(3) Prior to the sale of bonds for the applied technology center, private or federal funding in the amount of $2 million must be available to match the bonded amount for completion of the building.
Section 3. Authorization of bonds. The board of examiners is authorized to issue and sell general obligation long-range building program bonds in an amount not exceeding $81,310,000 for up to 20 years and not exceeding $1,892,286 for up to 10 years for the capital projects described in [section 2] over and above the amount of general obligation long-range building program bonds outstanding on January 1, 2001. The bonds must be issued in accordance with the terms and in the manner required by Title 17, chapter 5, part 8. The authority granted to the board by this section is in addition to any other authorization to the board to issue and sell general obligation long-range building program bonds.
Section 4. Agreement with department of environmental quality. The department of environmental quality shall review capital projects authorized in [section 2] for potential inclusion in the state buildings energy conservation program. When review shows that a capital project will result in energy improvements, that capital project must be submitted to the energy conservation program for consideration of receiving funding under that program. Funding provided under the energy conservation program guidelines must be used to offset or add to the authorized funding for the capital project, and the amount must be dependent on the annual utility savings resulting from the facility improvement. Agencies must be notified of potential funding after the review.
Section 5. Agreement with Montana university system. If Montana public broadcasting services receives funding at a higher federal participation rate than 67%, the amount authorized for general obligation long-range building program bonds to install PBS digital conversion through MSU-Bozeman in [section 2] must be reduced by the amount of the increased federal share.
Section 6. Agreement with department of corrections. The board of examiners and the department of corrections may enter into an agreement for the construction of the central reception unit in Deer Lodge, under which the department will reduce the $5 million of bonds requested to be issued by the amount of additional federal funds that are being received for the central reception unit. After the bonds have been issued for the project, future federal funds received for construction of the central reception unit will be used to pay the portion of the debt service related to the central reception unit project in accordance with federal provisions governing use of the federal money.
Section 7. Agreement with Montana state university agricultural experiment station. The board of examiners and the Montana state university agricultural experiment station may enter into an agreement for the construction and repair of various experiment station buildings at the following locations: $1,250,000 for Huntley, $180,000 for Moccasin, $200,000 for Havre, $210,000 for Sidney, and $160,000 for Kalispell. The amount of $1 million for these projects will be funded from CPF, and the amount of $1 million will be funded from the non-LRBP fund sources in House Bill No. 5.
Section 8. Planning and design. The department of administration may proceed with the planning and design portions of capital projects before the receipt of other funding sources. The department may use interaccount loans in accordance with 17-2-107 to pay planning and design costs incurred before the receipt of other funding sources.
Section 9. Capital projects -- contingent funds. If a capital project is financed in whole or in part with appropriations contingent upon the receipt of other funding sources, the department of administration may not let the projects for bid until the agency has submitted a financial plan for approval by the director of the department. A financial plan may not be approved by the director if:
(1) the level of funding provided under the financial plan deviates substantially from the funding level provided in [section 2] for that project; or
(2) the scope of the capital project is substantially altered or revised from the preliminary plans presented for that capital project in the 2003 biennium long-range building program presented to the 57th legislature.
Section 10. Legislative consent. The appropriations authorized in [section 2] constitute legislative consent for the capital projects contained in [section 2] within the meaning of 18-2-102.
Section 11. Legislative intent to increase maintenance funding. It is the intent of the 57th legislature that the department of administration and the office of budget and program planning make a payment of $665,000 a year of debt service from the general fund instead of the long-range building account on the 1996D bond issue, the 1997B bond issue, and the 1999C bond issue and increase the general fund statutory appropriation for debt service by a like amount. The $665,000 a year in the long-range building account is to be appropriated by the legislature for deferred maintenance and to develop a design to expand the university of Montana college of technology in Helena.
Section 12. Section 2(1), Chapter 518, Laws of 1999, is amended to read:
"Section 2. Appropriation of bond proceeds and other funds. (1) The following money is appropriated from the CPF and other funding sources to the department of administration for the capital projects described in this section, contingent upon the respective authorization of general obligation long-range building program bonds by the 56th legislature and the sale of the bonds by the board of examiners:
Agency/Project CPF Other Funding Sources
DEPARTMENT OF ADMINISTRATION
Capitol Renovation $3,898,750 $
DEPARTMENT OF CORRECTIONS
Expand Women's Prison, MWP, Billings $2,900,000
Complete Pine Hills Youth Correctional Facility, Miles City 2,225,000
Security Improvements and Wallace Expansion, MSP, Deer Lodge 3,000,000
DEPARTMENT OF LABOR AND INDUSTRY
Havre Job Service Supplemental 210,000
DEPARTMENT OF MILITARY AFFAIRS
Montana National Guard, Veterans' Affairs and
Emergency Operations Center, Fort Harrison, Helena 3,500,000
Construct New Armory, Kalispell 1,800,000
The proceeds of this bond issue, up to the amount authorized, are restricted to be used for the installation of a new water and sewer system that will serve the Kalispell armory, except for up to $100,000 for construction of space for a veterans' administration office.
Construct New Armory, Bozeman 2,200,000
MONTANA UNIVERSITIES AND COLLEGES
Renovate Renne Library, MSU-Bozeman 7,500,000
Rural Technology Education Center, UM-Dillon 4,170,000
Lab and Classroom Renovations, UM-All Campuses 2,000,000"
Section 13. Requirement for approval of state debt. Because [section 3] authorizes the creation of state debt, a vote of two-thirds of the members of each house of the legislature is required for enactment of [section 3]. If [section 3] is not approved by the required vote, [this act] is void.
Section 14. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
Section 15. Effective date. [This act] is effective on passage and approval.
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