HOUSE BILL NO. 14

INTRODUCED BY JOHNSON R

BY REQUEST OF THE GOVERNOR

A BILL FOR AN ACT ENTITLED: "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, 2001; PROVIDING FOR MATTERS RELATING TO APPROPRIATIONS; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

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

NEW SECTION. Section 1. Definitions. For the purposes of [sections 1 through 8], 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 authorized in [sections 1 through 8].

(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.

NEW SECTION. 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 CORRECTIONS

Expand Women's Prison, MWP, Billings	$2,900,000	$

Complete Pine Hills Youth Correctional Facility, Miles City	2,225,000

Construct Reception Unit, MSP, Deer Lodge	550,000

Security Improvements and Wallace Expansion, MSP, Deer Lodge	3,000,000

Construct 96 Cell Close Security Housing Unit, MSP, Deer Lodge	5,500,000

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	3,000,000

Construct New Armory, Kalispell	1,900,000

Construct New Armory, Bozeman	2,500,000

MONTANA UNIVERSITIES AND COLLEGES

Renovate Renne Library, MSU-Bozeman	7,500,000

Rural Technology Education Center, UM-Dillon	3,950,000

Lab and Classroom Renovations, UM-All Campuses	2,000,000

(2) The building projects for the department of corrections are presented in priority order, with the women's prison having the highest priority. Federal special revenue is available in the amount of $6,475,000 for the women's prison, leaving a balance of $957,215 in the federal account towards construction of the reception unit.

(3) If congress does not reauthorize federal funds and the department is unable to locate federal funds after due diligence for construction of the reception unit as appropriated, then the general obligation portion of the total $6,050,000 reception unit facility must be increased by the amount of the federal funds shortfall.

(4) If the fiscal yearend 2000 adult male institutional population reaches 2,944 or within 3% of the total 3,035 projected by the department, then the architecture and engineering division of the department of administration may proceed with construction plans and sale of the bonds up to $5,500,000 for the 96 cell close security housing unit at Montana state prison. If the adult male institution population does not meet this threshold during the 2001 biennium, then the bonds may not be sold and the need for this capital project will be reassessed by the 57th legislature.

(5) All proceeds derived from the sale of the national guard armories located in Bozeman and Whitefish must be used to pay the general obligation debt service on the bonds issued for construction of the new Bozeman and Kalispell armories. The proceeds of the sale must be deposited in the general fund for this purpose. In the event one or both of the facilities are sold prior to issuance of the bonds, then the board of examiners may determine to use all or a portion of the amount deposited in the general fund to reduce the amount of the bond issue required to finance the construction.

NEW SECTION. Section 3. Authorization of bonds. (1) The board of examiners is authorized to issue and sell general obligation long-range building program bonds in an amount not exceeding $35,235,000 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, 1999, to 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.

(2) It is the intent of the 56th legislature that debt service payments for the Havre job service office be paid with federal funds. If federal funds become unavailable, however, the department of labor and industry is directed to reduce operating or personal services costs in order to service the debt. The debt service payments for the job service office may not be paid with general fund money.

NEW SECTION. Section 4. Agreement with department of labor and industry. The board of examiners and the department of labor and industry may enter into an agreement for the expansion and renovation of the job service office, Havre, under which the department shall pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, an amount, as determined by the state treasurer, that is sufficient to pay the principal and interest due on the bonds and notes from which the appropriation was made and that is sufficient to accommodate and maintain reserves required under the bonds and notes. The agreement must further provide that income from the investment of bond proceeds, unused principal, and the reserves not required for construction and renovation costs may be credited against the department's payment obligation. The agreement must also allow for the accumulation of reserves during the first year that the bonds are outstanding. Payment by the department must be made from funds available therefor.

NEW SECTION. Section 5. 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 cofunding consideration. Cofunding 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 will be dependent on the annual utility savings resulting from the facility improvement. Agencies must be notified of potential cofunding after the review.

NEW SECTION. Section 6. 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.

NEW SECTION. Section 7. 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 2000-2001 long-range building program presented to the 56th legislature.

NEW SECTION. Section 8. 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.

NEW SECTION. Section 9. Requirements 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.

NEW SECTION. Section 10. 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.

NEW SECTION. Section 11. Effective date. [This act] is effective on passage and approval.

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