HOUSE BILL NO. 11

INTRODUCED BY MCCANN M

BY REQUEST OF THE DEPARTMENT OF COMMERCE AND THE OFFICE OF BUDGET AND PROGRAM PLANNING

A BILL FOR AN ACT ENTITLED: "AN ACT APPROPRIATING MONEY TO THE DEPARTMENT OF COMMERCE FOR FINANCIAL ASSISTANCE TO LOCAL GOVERNMENT INFRASTRUCTURE PROJECTS UNDER THE TREASURE STATE ENDOWMENT PROGRAM; AUTHORIZING GRANTS FROM THE TREASURE STATE ENDOWMENT SPECIAL REVENUE ACCOUNT; PLACING CONDITIONS UPON GRANTS; AND PROVIDING EFFECTIVE DATES."

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

NEW SECTION. Section 1. Appropriations from treasure state endowment special revenue account. (1) There is appropriated to the department of commerce the interest earnings of the treasure state endowment special revenue account to finance grants authorized by this section.

(2) The funds appropriated in this section must be used by the department to make grants to the local government entities listed in subsection (3) for the described purposes and in amounts not to exceed the amounts set out in subsection (3). The appropriations are subject to the conditions set forth in [sections 1 through 3] and described in the treasure state endowment program January 1999 report to the 56th legislature. The legislature, pursuant to 90-6-710, approves the grants listed in subsection (3), in the order indicated in the list of projects. The department shall award funds up to the amounts approved in this section based on the manner of disbursement set forth in [section 3] until available funds are expended. The department shall provide funds not accepted or used by local governments to other local governments whose projects have been authorized for grants as listed in subsection (3). When additional funds become available for the grants listed in subsection (3), they must be awarded to projects as set forth in [section 3].

(3) The following are the authorized projects for grants in the order of their priority:

Applicant/Project	Matching Grant

1.	Harrison Water and Sewer District, Madison County (wastewater)	$500,000

2.	Arlee Water and Sewer District, Lake County (wastewater)	500,000

3.	Highwood Water and Sewer District, Chouteau County (water)	400,000

4.	City of Missoula (wastewater)	500,000

5.	City of Thompson Falls (water)	500,000

6.	Town of Philipsburg (water)	121,900

7.	Town of Ekalaka (wastewater)	87,200

8.	Rae Water and Sewer District, Gallatin County (wastewater)	500,000

9.	City of Big Timber (wastewater)	500,000

10.	City of Glasgow (wastewater, storm drainage)	500,000

11.	Corvallis Sewer District, Ravalli County (wastewater)	410,760

12.	Town of Boulder (water)	500,000

13.	Town of Denton (wastewater)	415,000

14.	City of Cut Bank (water)	500,000

15.	Richland County (bridge)	181,155

16.	Town of Geraldine (wastewater)	300,000

17.	Augusta Water and Sewer District, Lewis and Clark County (wastewater)	500,000

18.	City of Havre (water)	303,747

19.	Sweetgrass Water and Sewer District, Toole County (wastewater)	213,000

20.	Lewis and Clark County (bridge)	500,000

21.	Town of Drummond (wastewater)	292,850

22.	South Hills Water and Sewer District, Yellowstone County (water)	500,000

23.	City of Helena (water)	500,000

24.	City of Red Lodge (wastewater)	500,000

(4) If sufficient funds are available, this section constitutes a valid obligation of funds to the entities listed in subsection (3) for purposes of encumbering the treasure state endowment special revenue account funds received during the 2001 biennium under 17-7-302. However, a local government's entitlement to receive funds is dependent on the local government's compliance with the conditions described in [section 3] and on the availability of funds.

(5) If funds deposited in the treasure state endowment special revenue account during the biennium ending June 30, 2001, are insufficient to fully fund the projects numbered 1 through 24 in subsection (3) that have satisfied the conditions described in [section 3], these projects will be fully funded from deposits in the treasure state endowment special revenue account made during the biennium ending June 30, 2003, before projects authorized by the 57th legislature in 2001 receive funding from the account.

NEW SECTION. Section 2. Approval of grants -- completion of appropriation. (1) The legislature, pursuant to 90-6-701, approves grants for the projects identified in [section 1(3)].

(2) The approval of these grants completes an appropriation from the special revenue account provided for in 17-5-703(4)(b).

NEW SECTION. Section 3. Conditions and manner of disbursement of grant funds. (1) The disbursement of grant funds under [sections 1 through 3] for the grants specified in [section 1(3)] is subject to the following conditions:

(a) The local government recipient must have a scope of work and budget for the project approved by the department of commerce that is consistent with the intent and circumstances under which the application was originally ranked by the department and approved by the legislature. The department may not approve amendments to the scope of work or budget affecting priority activities or improvements that would materially alter the intent and circumstances under which the application was originally ranked by the department and approved by the legislature.

(b) The local government recipient shall document that other matching funds required for completion of the project have been firmly committed before the disbursement of the funds appropriated in [section 1].

(c) The local government recipient shall have satisfactorily complied with any conditions described in the recommendation section of the project narrative in the treasure state endowment program project evaluations and recommendations report submitted to and approved by the 56th legislature and with conditions specified by the department in the notification of grant approval.

(d) The local government recipient shall have executed a grant agreement with the department.

(e) The local government recipient shall have satisfied other specific requirements considered necessary by the department to accomplish the purpose of the project as evidenced by the application to the department.

(2) The department shall disburse grant funds to projects approved in the order of priority listed in [section 1] and subject to the conditions in subsection (1), as treasure state endowment special revenue account interest income is received during the 2001 biennium.

(3) The department shall disburse grant funds as they become available each month in the order of priority, for projects that have met the conditions in subsection (1).

(4) A project approved in [section 1] may not receive grant funds until sufficient funds have been deposited in the treasure state endowment special revenue account and are available for that purpose.

(5) The department shall disburse grant funds on a reimbursement basis as grantees incur eligible project costs.

(6) In the event that construction bids received for a project are for an amount lower than the projected cost of the project, the department may, at its discretion, reduce the amount of funding to be provided in proportion to all other project funding sources. In the alternative, the department may authorize the construction of additional, directly related project components to enhance the overall project that are consistent with the intent and circumstances under which the application was originally ranked by the department and approved by the legislature, in amounts not to exceed the originally approved project budget.

NEW SECTION. Section 4. Effective dates. (1) [Sections 2 and 3 and this section] are effective on passage and approval.

(2) [Section 1] is effective July 1, 1999.

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