SENATE BILL NO. 432
INTRODUCED BY M. TAYLOR, BRUEGGEMAN, DEPRATU, MAHLUM, F. THOMAS
AN ACT REVISING AND CLARIFYING THE PURPOSE FOR WHICH GENERAL OBLIGATION BONDS MAY BE ISSUED FOR FINANCING INFRASTRUCTURE IMPROVEMENTS AND EQUIPMENT FOR AEROSPACE TRANSPORTATION AND TECHNOLOGY PROJECTS; AMENDING SECTION 5, CHAPTER 269, LAWS OF 1999, AND SECTION 1, CHAPTER 6, SPECIAL LAWS OF MAY 2000; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
WHEREAS, Montana continues to lag behind the rest of the nation in average per capita income; and
WHEREAS, the state has determined that it is in the best interest of the citizens and taxpayers of the state to promote and induce the creation of higher paying jobs in the state; and
WHEREAS, the Legislature has determined that the state may need to provide more direct inducements to private industry to achieve the creation of better paying jobs; and
WHEREAS, the Legislature has determined that the inducement of private industry to create jobs in Montana is a public purpose in that it will provide more and better employment opportunities for its citizens, particularly its college-educated young citizens who frequently leave the state in search of good jobs, and it will increase the tax base for both state and local government and in general enhance the opportunities for greater prosperity for the state; and
WHEREAS, given the state's location and other reasons, the Legislature has determined that aerospace transportation and technology projects represent the best potential for good, quality jobs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 1, Chapter 6, Special Laws of May 2000, is amended to read:
"Section 1. Section 5, Chapter 269, Laws of 1999, is amended to read:
"Section 5. Authorization of bonds. (1) The board of examiners is authorized to issue and sell general obligation
bonds in an amount not exceeding $20 million for aerospace transportation and technology infrastructure development
projects, as defined in 7-15-4283, except as provided in subsection (2) of this section, in accordance with the terms and in
the manner required by Title 17, chapter 5, part 8, and upon the authority granted to the board by this section for the
purpose of financing infrastructure improvements as enumerated in 7-15-4288 and equipment for aerospace transportation
and technology projects recommended by the department of commerce in accordance with the authority granted to the
board by this section. The bonds are in addition to any other authorization to the board to issue and sell general obligation
bonds and subject to the conditions set forth in this section.
(2) For purposes of the general obligation bonds authorized in this section, 7-15-4288(5) and (7) are excluded from the
definition of aerospace transportation and technology infrastructure development projects. Bond proceeds are appropriated
to the department of commerce for assisting in funding authorized aerospace transportation and technology infrastructure
development projects. The department of commerce may request the board of examiners to issue the bonds for one or more
specified projects for a single or multiple entities in one or more series, but the total amount of bonds issued may not
exceed $20 million. Bond proceeds are appropriated to the department, and the department is authorized to construct the
infrastructure improvements or acquire the equipment, to contract with the city or county in which a project is located, to
contract with a certified community lead organization, as defined in 90-1-116, or to contract with the developer of an
approved project for the construction of the infrastructure improvement or the acquisition of equipment upon a
determination that it is in the best interest of the project. The plans and specifications for the infrastructure and equipment
to be financed from the proceeds of the bonds must be approved by and be acceptable to the department following a review
of the plans and specifications of the infrastructure by the architecture and engineering division of the department of
administration, but the design and construction of the infrastructure and the acquisition of equipment for approved projects
are not, with the exception of Title 18, chapter 2, part 4, subject to the public procurement requirements contained in Title
18. The portions of aerospace transportation and technology infrastructure development projects that are Infrastructure and
equipment financed with bond proceeds are are owned by the state, and may be leased to the local government creating the
tax increment financing district or to the entity for whom the project is created at a fair value, taking into consideration job
creation and overall tax revenue generated by the project the use must be governed by a development agreement between
the state and the developer of the project. The agreement may provide for the use of the infrastructure and equipment at less
than fair market value, taking into consideration the number of jobs to be created by the project, the salary range of the
jobs, the amount of capital contributed by the developer, and the projected tax revenue to be received by the state and local
governments from the project over the term of the lease or use agreement. For purposes of this section, state and local
governments may not provide telecommunications or other services in competition with private providers unless private
providers cannot provide the services.
(3) It is the intent of the legislature that debt service payments for the bonds authorized by this section will be covered
by the totality of the taxes generated by the aerospace transportation and technology infrastructure development projects to
be calculated by an economic impact analysis of the projects on state tax revenue. Prior to requesting the board of
examiners to issue the bonds, the department of commerce shall determine that the developer of a proposed project has the
financial ability to construct and implement the project based upon audited financial statements. When requesting the board
of examiners to issue the bonds, the department of commerce shall present to the department of administration for
presentation to the board of examiners the following:
(a) evidence satisfactory to the board that each aerospace transportation and technology infrastructure development
project has committed itself to locate its project in Montana and has acquired a site for the project; and
(b) a certificate signed by the director of the office of budget and program planning that the tax revenue to be received
by the state from each aerospace transportation and technology infrastructure development project over the term of the
bonds will be sufficient to pay the principal amount of and interest on and interest on the bonds issued to assist with the
specific project.
(4) For the purposes of this section, "equipment" means machinery used in the design, manufacture, repair, and maintenance of aerospace transportation and technology projects.""
Section 2. Effective date. [This act] is effective on passage and approval.
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