2001 Montana Legislature

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HOUSE BILL NO. 577

INTRODUCED BY M. MCCANN

Montana State Seal

AN ACT INCREASING THE DEBT LIMITS FOR THE BOARD OF INVESTMENTS UNDER THE MUNICIPAL FINANCE CONSOLIDATION ACT; AUTHORIZING THE DEPARTMENT OF JUSTICE TO OBTAIN A LOAN FROM THE BOARD OF INVESTMENTS FOR THE PURPOSE OF FINANCING AN INFORMATION TECHNOLOGY SYSTEM FOR THE MOTOR VEHICLE DIVISION AND THE ACQUISITION OF VIDEO GAMBLING AUTOMATED ACCOUNTING AND REPORTING SYSTEM DATA COLLECTION UNITS FOR THE GAMBLING CONTROL DIVISION; INCREASING THE LIEN FILING FEE TO $8 TO FUND REPAYMENT OF THE MOTOR VEHICLE INFORMATION TECHNOLOGY LOAN; CREATING A MOTOR VEHICLE INFORMATION TECHNOLOGY SYSTEM ACCOUNT IN THE STATE SPECIAL REVENUE FUND; APPROPRIATING TO THE DEPARTMENT OF JUSTICE MONEY BORROWED FROM THE BOARD OF INVESTMENTS; AMENDING SECTIONS 17-5-1608, 17-5-2001, AND 61-3-103, MCA; AND PROVIDING EFFECTIVE DATES AND A TERMINATION 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), to exceed $75 $80 million."



     Section 2.  Section 17-5-2001, MCA, is amended to read:

     "17-5-2001.  Loans to state agencies. (1) An agency responsible for the procurement and provision of vehicles, automated systems, 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)(a)  the term of the indebtedness does not exceed the useful life of the items being financed; and

     (2)(b)  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.

     (2) (a) The department of justice is authorized to enter into contracts, loan agreements, or other forms of indebtedness with the board of investments for an amount not to exceed $4.5 million, payable over a term not to exceed 10 years, for financing the cost of an information technology system for the production and maintenance of motor vehicle title and registration records and driver's license records.

     (b) For purposes of the financing of the motor vehicle information technology system, loans are payable from the money in the motor vehicle information technology system account as provided in [section 4]. The term of the indebtedness may not exceed the useful life of the items being financed. At the time that the loan is made, the projected revenue of the motor vehicle information technology system account, based upon the fees approved by the legislature, must be sufficient to repay the indebtedness over the proposed term.

     (3) (a) The department of justice is authorized to enter into contracts, loan agreements, or other forms of indebtedness with the board of investments for an amount not to exceed $1,120,000, payable over a term not to exceed 7 years, for the acquisition of video gambling automated accounting and reporting system data collection units.

     (b) The loan is payable from the department of justice's annual appropriation from the general fund.

     (c) The term of the indebtedness may not exceed the useful life of the items being financed. At the time that the loan is made, the department of justice's base budget appropriation from the general fund must be sufficient to repay the indebtedness with respect to the video gambling data collection units over the proposed term of the loan.

     (d)  The loan is subject to the risk of nonappropriation."



     Section 3.  Section 61-3-103, MCA, is amended to read:

     "61-3-103.  (Temporary) Filing of security interests -- perfection -- rights -- procedure -- fees. (1) Except as provided in 61-3-109, the department may not file any voluntary security interest or lien unless it is accompanied by or specified in the application for a certificate of ownership of the vehicle encumbered. If the approved notice form is transmitted to the department, the security agreement or other lien instrument that creates the security interest must be retained by the secured party. A copy of the security agreement is sufficient as a lien notice if it contains the name and address of the debtor and the secured party, the complete vehicle description, and the amount of the lien and is signed by the debtor. The department shall file voluntary security interests and liens by entering the name and address of the secured party upon the face of the certificate of ownership. Involuntary liens must be filed against the record of the vehicle encumbered. The department shall mail a statement certifying to the filing of a security interest or lien to the secured party. The department shall mail the certificate of ownership to the owner at the address given on the certificate; however, if the transfer of ownership and filing of the security interest are paid for by a creditor or secured party, the department shall return the certificate of ownership to the county treasurer in the county in which the vehicle is to be registered. The owner of a motor vehicle is the person entitled to operate and possess the motor vehicle.

     (2)  A security interest in a motor vehicle held as inventory by a dealer licensed under chapter 4 of this title must be perfected in accordance with Title 30, chapter 9.

     (3)  Whenever a security interest or lien is filed against a motor vehicle that is subject to two security interests previously perfected under this section, the department shall endorse on the face of the certificate of ownership, "NOTICE. This motor vehicle is subject to additional security interests on file with the Department of Justice." Other information regarding the additional security interests need not be endorsed on the certificate.

     (4)  Satisfactions or statements of release filed with the department under this chapter must be retained by it for a period of 8 years after receipt, after which they may be destroyed.

     (5)  Except as provided in 61-3-109 and subsection (6) of this section, a voluntary security interest or lien is perfected on the date that the lien notice and the certificate of ownership or manufacturer's statement of origin are delivered to the county treasurer. On that date, the county treasurer shall issue to the secured party a receipt evidencing the perfection. Perfection under this section constitutes constructive notice to subsequent purchasers or encumbrancers, from the date of delivery of the lien notice to the county treasurer, of the existence of the security interest.

     (6)  Except as provided in 61-3-109, voluntary security interests or lien filings that do not require transfer of ownership are perfected on the date that the lien notice and the certificate of ownership or manufacturer's statement of origin are received by the department. On that date, the department shall issue to the secured party a receipt evidencing the perfection. Perfection under this subsection constitutes constructive notice to subsequent purchasers or encumbrancers, from the date that the lien notice is delivered to the department, of the existence of the security interest.

     (7)  Upon default under a chattel mortgage or conditional sales contract covering a motor vehicle, the mortgagee or vendor has the same remedies as in the case of other personal property. In case of attachment of motor vehicles, all the provisions of 27-18-413, 27-18-414, and 27-18-804 are applicable except that deposits must be made with the department.

     (8)  A conditional sales vendor or chattel mortgagee or assignee who fails to file a satisfaction of a chattel mortgage, assignment, or conditional sales contract within 15 days after receiving final payment is required to pay the department the sum of $1 for each day that the person fails to file the satisfaction.

     (9)  Upon receipt of notice of any involuntary liens or attachments against the record of any motor vehicle registered in this state, the department shall within 24 hours mail to the owner, conditional sale vendor, mortgagees, or assignees of the owner, conditional sale vendor, or mortgagees a notice showing the name and address of the lien claimant, the amount of the lien, the date of execution of the lien, and, in the case of attachment, the full title of the court and the action and the names of the attorneys for the plaintiff and attaching creditor.

     (10) It is not necessary to refile with the department any instruments on file in the offices of the county clerk and recorders at the time that this law takes effect.

     (11) A fee of $4 $8 must be paid to the department to file any security interest or other lien against a motor vehicle. The $4 $8 fee includes the cost of filing a satisfaction or release of the security interest and also the cost of entering the satisfaction or release on the records of the department and of deleting the endorsement of the security interest from the face of the certificate of ownership. A fee of $4 must be paid to the department for issuing a certified copy of a certificate of ownership subject to a security interest or other lien on file in the office of the department or for filing an assignment of any security interest or other lien on file with the department. All fees provided for in this section must be paid to the county treasurer. Of the $8 fee, $4 must be deposited for deposit in the state general fund in accordance with 15-1-504. The remaining $4 must be forwarded to the state treasurer for deposit in the motor vehicle information technology system account provided for in [section 4]. (Terminates June 30, 2008--sec. 2, Ch. 260, L. 1999.)

     61-3-103.  (Effective July 1, 2008) Filing of security interests -- perfection -- rights -- procedure -- fees. (1) The department may not file any voluntary security interest or lien unless it is accompanied by or specified in the application for a certificate of ownership of the vehicle encumbered. If the approved notice form is transmitted to the department, the security agreement or other lien instrument that creates the security interest must be retained by the secured party. A copy of the security agreement is sufficient as a lien notice if it contains the name and address of the debtor and the secured party, the complete vehicle description, amount of lien, and is signed by the debtor. The department shall file voluntary security interests and liens by entering the name and address of the secured party upon the face of the certificate of ownership. Involuntary liens must be filed against the record of the vehicle encumbered. The department shall mail a statement certifying to the filing of a security interest or lien to the secured party. The department shall mail the certificate of ownership to the owner at the address given on the certificate; however, if the transfer of ownership and filing of the security interest are paid for by a creditor or secured party, the department shall return the certificate of ownership to the county treasurer where the vehicle is to be registered. The owner of a motor vehicle is the person entitled to operate and possess the motor vehicle.

     (2)  A security interest in a motor vehicle held as inventory by a dealer licensed under chapter 4 of this title must be perfected in accordance with Title 30, chapter 9.

     (3)  Whenever a security interest or lien is filed against a motor vehicle that is subject to two security interests previously perfected under this section, the department shall endorse on the face of the certificate of ownership, "NOTICE. This motor vehicle is subject to additional security interests on file with the Department of Justice." Other information regarding the additional security interests need not be endorsed on the certificate.

     (4)  Satisfactions or statements of release filed with the department under this chapter must be retained by it for a period of 8 years after receipt, after which they may be destroyed.

     (5)  Except as provided in subsection (6), a voluntary security interest or lien is perfected on the date the lien notice and the certificate of ownership or manufacturer's statement of origin are delivered to the county treasurer. On that date, the county treasurer shall issue to the secured party a receipt evidencing the perfection. Perfection under this section constitutes constructive notice to subsequent purchasers or encumbrancers, from the date of delivery of the lien notice to the county treasurer, of the existence of the security interest.

     (6)  Voluntary security interests or lien filings that do not require transfer of ownership are perfected on the date the lien notice and the certificate of ownership or manufacturer's statement of origin are received by the department. On that date, the department shall issue to the secured party a receipt evidencing the perfection. Perfection under this subsection constitutes constructive notice to subsequent purchasers or encumbrancers, from the date the lien notice is delivered to the department, of the existence of the security interest.

     (7)  Upon default under a chattel mortgage or conditional sales contract covering a motor vehicle, the mortgagee or vendor has the same remedies as in the case of other personal property. In case of attachment of motor vehicles all the provisions of 27-18-413, 27-18-414, and 27-18-804 are applicable except that deposits must be made with the department.

     (8)  A conditional sales vendor or chattel mortgagee or assignee who fails to file a satisfaction of a chattel mortgage, assignment, or conditional sales contract within 15 days after receiving final payment is required to pay the department the sum of $1 for each day that the person fails to file such satisfaction.

     (9)  Upon receipt of notice of any involuntary liens or attachments against the record of any motor vehicle registered in this state, the department shall within 24 hours mail to the owner, conditional sale vendor, mortgagees, or assignees of any owner, conditional sale vendor, or mortgagees a notice showing the name and address of the lien claimant, amount of the lien, date of execution of lien, and in the case of attachment the full title of the court and the action and the name of the attorneys for the plaintiff and attaching creditor.

     (10) It is not necessary to refile with the department any instruments on file in the offices of the county clerk and recorders at the time this law takes effect.

     (11) A fee of $4 $8 must be paid to the department to file any security interest or other lien against a motor vehicle. The $4 $8 fee must include and cover the cost of filing a satisfaction or release of the security interest and also the cost of entering the satisfaction or release on the records of the department and deleting the endorsement of the security interest from the face of the certificate of ownership. A fee of $4 must be paid to the department for issuing a certified copy of a certificate of ownership subject to a security interest or other lien on file in the office of the department or for filing an assignment of any security interest or other lien on file with the department. All fees provided for in this section must be paid to the county treasurer. Of the $8 fee, $4 must be deposited for deposit in the state general fund in accordance with 15-1-504. The remaining $4 must be forwarded to the state treasurer for deposit in the motor vehicle information technology system account provided for in [section 4]."



     Section 4.  Motor vehicle information technology system account. (1) There is a motor vehicle information technology system account in the state special revenue fund provided for in 17-2-102.

     (2) Fees received by the state treasurer pursuant to [section 3] must be deposited in the account.

     (3) The money in the motor vehicle information technology system account must be appropriated by the legislature to the department of justice and must be used by the department for the purpose of:

     (a) repaying any indebtedness or loan incurred for the creation of a new information technology system for motor vehicles; or

     (b) payment of costs directly incurred in the creation and support of the new motor vehicle information technology system.



     Section 5.  Deposit of loan proceeds -- capital projects appropriation. (1) The proceeds of any loan from the board of investments to the department of justice for creation of a new motor vehicle information technology system must be deposited in the capital projects fund.

     (2) There is appropriated from the capital projects fund to the department of justice up to $4.5 million for the motor vehicle information technology system described in 17-5-2001.

     (3) The department of justice is prohibited from using any of the proceeds from the loan for the motor vehicle information technology system authorized by 17-5-2001 for agency current level operating expenses.

     (4) The appropriation continues until the project is completed in accordance with 17-7-212.



     Section 6.  Deposit of loan proceeds -- appropriation -- contractual restrictions. (1) The proceeds of any loan from the board of investments to the department of justice for the acquisition of video gambling automated accounting and reporting system data collection units must be deposited in a state special revenue account.

     (2) There is appropriated from the state special revenue account to the department of justice $1,120,000 for the purchase of video gambling automated accounting and reporting system data collection units. The department shall enter into contracts with the owners or operators of machines in which the units are placed that will encumber and allow the expenditure of the appropriation over the term of the loan from the board of investments for the purchase of the units.

     (3) The department of justice is prohibited from using any of the proceeds from the loan for the purchase of video gambling automated accounting and reporting system data collection units authorized by 17-5-2001 for agency current level operating expenses.



     Section 7.  Codification instruction. [Sections 3 and 4] are intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [sections 3 and 4].



     Section 8.  Effective dates. (1) Except as provided in subsection (2), [this act] is effective July 1, 2001.

     (2) [Section 3] is effective January 1, 2002.



     Section 9.  Termination. [This act] terminates June 30, 2011.

- END -




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