2007 Montana Legislature

About Bill -- Links

Seal

SENATE BILL NO. 69

INTRODUCED BY D. WANZENRIED

BY REQUEST OF THE DEPARTMENT OF COMMERCE


AN ACT INCREASING THE ALLOCATION OF COAL SEVERANCE TAX TRUST FUNDS AVAILABLE FOR THE VALUE-ADDED LOAN PROGRAM, THE INFRASTRUCTURE LOAN PROGRAM, AND THE MONTANA ECONOMIC DEVELOPMENT LOAN PROGRAM; AMENDING SECTIONS 17-6-305 AND 17-6-311, MCA; AND PROVIDING AN EFFECTIVE DATE.

 

AN ACT INCREASING THE ALLOCATION OF COAL SEVERANCE TAX TRUST FUNDS AVAILABLE FOR THE VALUE-ADDED LOAN PROGRAM, THE INFRASTRUCTURE LOAN PROGRAM, AND THE MONTANA ECONOMIC DEVELOPMENT LOAN PROGRAM; AMENDING SECTIONS 17-6-305 AND 17-6-311, MCA; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     Section 1.  Section 17-6-305, MCA, is amended to read:

     "17-6-305.  Investment of up to twenty-five percent of coal tax trust fund in Montana economy -- report by board. (1) Subject to the provisions of 17-6-201(1), the board shall endeavor to invest up to 25% of the permanent coal tax trust fund established in 17-6-203(6) in the Montana economy, with special emphasis on investments in new or expanding locally owned enterprises. Investments made pursuant to this section do not include investments made pursuant to 17-6-309(2). For purposes of calculating the 25% of the permanent coal tax trust fund, the board shall include all funds listed in 17-5-703(1). The portion of the permanent coal tax trust fund contained in portfolios formerly administered by the Montana board of science and technology development is included in the 25% of the trust fund allocated to the board for in-state investment under this section. This subsection does not prohibit the board from investing more than 25% of the permanent coal tax trust fund in the Montana economy if it is prudent to do so and the investments will benefit the Montana economy.

     (2)  In determining the probable income to be derived from investment of this revenue, the long-term benefit to the Montana economy must be considered.

     (3)  The legislature may provide additional procedures to implement this section.

     (4)  The board shall include a report on the investments made under this section as a part of the information required by 17-7-111."

 

     Section 2.  Section 17-6-311, MCA, is amended to read:

     "17-6-311.  Limitation on size of investments. (1) Except as provided in subsection (2) and this subsection, 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 10% of the permanent coal tax trust fund. If an investment results in any one business enterprise or person incurring a debt in excess of 6% of the permanent coal tax trust fund, at least 30% of the debt incurred for the project or enterprise for the coal tax investment that was made to the business enterprise or person must be held by a commercial lender. This subsection does not:

     (a)  apply to a loan made pursuant to 17-6-317;

     (b)  limit the board's authority to make loans to the capital reserve account as provided in 17-6-308(2);

     (c)  apply to the purchase of debentures issued by a capital company. However, the total amount of debentures purchased by the board may not exceed 1% of the Montana permanent coal tax trust fund at the time of purchase.

     (2)  The total amount of loans made pursuant to 17-6-309(2) or 17-6-317 may not exceed $50 $80 million, the total amount of loans made pursuant to 17-6-317 may not exceed $70 million, and a single loan may not be less than $250,000. Except for a loan made pursuant to 17-6-317, a loan may not exceed $16,666 for each 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;

     (d)  the amount of increased salaries, wages, and business incomes of existing jobholders and businesses; and

     (e)  other matters that the board considers necessary."

 

     Section 3.  Effective date. [This act] is effective July 1, 2007.

- END -

 


Latest Version of SB 69 (SB0069.ENR)
Processed for the Web on April 30, 2007 (11:02am)

New language in a bill appears underlined, deleted material appears stricken.

Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted.

See the status of this bill for the bill's primary sponsor.

 Status of this Bill | 2007 Legislature | Leg. Branch Home
All versions of this bill (PDF format)
Authorized print version w/line numbers (PDF format)
[
NEW SEARCH ]

Prepared by Montana Legislative Services
(406) 444-3064