HOUSE BILL NO. 238

INTRODUCED BY K. OHS

BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME

A BILL FOR AN ACT ENTITLED: "AN ACT ESTABLISHING THE MONTANA JOBS AND INCOME COMMISSION; PROVIDING FOR MEETING TIMES AND COMPENSATION FOR MEMBERS; ESTABLISHING DUTIES OF THE EXECUTIVE DIRECTOR AND QUALIFICATIONS FOR PROGRAM SPECIALISTS; ESTABLISHING COMMISSION RESPONSIBILITIES; REQUIRING A BIENNIAL REPORT; PROVIDING FOR THE CREATION OF TWO COMMITTEES; ESTABLISHING AN ECONOMIC POLICY FOR THE STATE; PROVIDING AN APPROPRIATION; AMENDING SECTION 2-18-103, MCA; AND PROVIDING EFFECTIVE DATES."

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

NEW SECTION. Section 1. Short title. [Sections 1 through 14] may be cited as "The Montana Jobs and Income Act".

NEW SECTION. Section 2. Legislative findings and declarations. The legislature finds and declares that it is the state's policy to encourage economic activities that are compatible with Montana's strengths and resources, to supplement the expansion of existing economic enterprises, to foster conditions necessary to attract new businesses with strong economic growth potential, to address conditions, both in the present and in the future, to reduce impediments to competition, and to ensure that all the people of the state share in Montana's economic success.

NEW SECTION. Section 3. Policy. (1) The legislature, recognizing that the long-term economic stability of Montana requires strengthening the foundations of the state's business communities and diversifying existing economic endeavors, recognizing that expansion of the state's research infrastructure creates solutions through new opportunities, recognizing the state's strong educational system that prepares Montanans to compete in a global economy, and further recognizing the strong work ethic exhibited by the state's labor force and the safe and civil communities where workers want to live and raise families, declares that it is the continuing policy of the state of Montana, in cooperation with the federal government, local governments, and other concerned public and private organizations, to use all practical means and measures, including financial and technical assistance, to establish an economic climate in which the state's natural resources and agricultural operations remain constant contributors to the state's economic welfare, to articulate a coherent economic development vision for the future, and to take a proactive role to ensure that Montana has the flexibility and resources to be an effective competitor in the changing global marketplace.

(2) In order to carry out the policy established in this section, it is the continuing responsibility of the state of Montana to use all practical means consistent with other essential considerations of state policy to improve and coordinate state plans, functions, programs, and resources so that the state may:

(a) elevate the personal income of all Montanans by supporting activities that create livable wage jobs and by reducing the number of multiple-jobholders;

(b) increase the economic value of the state's agricultural products;

(c) strengthen partnerships between public and private organizations;

(d) accelerate the accessibility of advanced high-speed telecommunications services;

(e) increase the commercial activity of small businesses operating in the state;

(f) strengthen existing manufacturing businesses and attract new manufacturing operations that add value to Montana's natural resources;

(g) enhance research and commercialization activities in both the public and private sectors for the benefit of Montana businesses;

(h) streamline the regulatory requirements for establishing and operating a business in Montana; and

(i) establish a business-friendly culture in state agencies.

NEW SECTION. Section 4. Purpose. The purpose of [sections 1 through 14] is to:

(1) establish a permanent state commitment to economic development;

(2) provide for continuity of economic policy between administrations;

(3) establish accountability for economic policy decisions through regular updates to the legislature and the governor; and

(4) provide a forum for public participation in the formulation and implementation of economic policy in the state.

NEW SECTION. Section 5. Definitions. As used in [sections 1 through 14], the following definitions apply:

(1) "Commission" means the Montana jobs and income commission.

(2) "Executive director" means the person employed by the commission to coordinate the commission's statutory responsibilities with any state, local, or tribal government agencies or private economic development organizations, to administer commission economic development programs, and to supervise commission staff.

(3) "Program specialist" means a person employed by the commission who is responsible for administering a program or duty as determined by the commission or its committees.

NEW SECTION. Section 6. Commission -- membership -- administration. (1) There is a Montana jobs and income commission.

(2) The commission consists of 15 members, 13 of whom must be appointed by the governor from a list of nominees provided by each of the respective economic interests represented in subsection (4) within 30 days of [the effective date of this section]. The list of nominees provided by the respective economic interests must contain at least three persons for the governor's consideration. Of the remaining two members of the commission, one member must be appointed by the president of the senate and one member must be appointed by the speaker of the house.

(3) Nominees for membership on the commission:

(a) must have extensive experience in the field of business and business development;

(b) must be dedicated to the goal of increasing the long-term economic vitality of the state; and

(c) shall reasonably reflect the diverse geographic and economic needs of the state.

(4) Of the members nominated by the respective economic interests and appointed by the governor:

(a) one member shall own and operate or must have previously owned and operated a business in the state;

(b) one member shall represent the banking and investment community;

(c) one member shall represent the technology research and development community;

(d) one member shall own or represent a livestock operation;

(e) one member shall own or represent a crop growing operation;

(f) one member shall own or represent an advertising or marketing agency;

(g) one member must be a certified public accountant;

(h) one member shall own or represent a wood products enterprise;

(i) one member shall represent a mining, minerals, or oil and gas operation;

(j) one member shall represent the state university system in the field of applied research technology;

(k) one member shall represent the computer technology industry;

(l) one member shall represent organized labor; and

(m) one member shall own or must have previously owned and operated a small business in the state.

(5) A member who ceases to live in the state is disqualified from membership, and the position becomes vacant. If a vacancy occurs, the position must be filled in the manner of the original appointment.

(6) The commission shall hire an executive director and two program specialists, pursuant to [section 8], and prescribe the executive director's and program specialists' salaries and duties.

(7) (a) The commission is a quasi-judicial entity subject to the provisions of 2-15-124, except that none of the members are required to be licensed to practice law in the state.

(b) The commission shall elect a presiding officer from among its members at an annual election. The presiding officer may be reelected.

(c) Legislative appointees shall serve 2-year terms.

(8) The commission is attached to the department of commerce for administrative purposes only.

NEW SECTION. Section 7. Meetings -- compensation. (1) The commission may determine the time and place of its meetings but shall meet at least once each quarter.

(2) Each member of the commission, except legislative members, is entitled to receive compensation of $100 a day plus travel expenses, pursuant to 2-18-501 through 2-18-503, for each day spent conducting official commission business.

NEW SECTION. Section 8. Executive director -- program specialists -- qualifications -- duties. (1) The commission shall hire an executive director who is responsible for:

(a) managing commission staff;

(b) documenting and monitoring grants approved by the commission;

(c) reporting to the legislature and governor about investments made in research and commercialization activities and developments and opportunities in diversified research arenas;

(d) recruiting new businesses;

(e) monitoring and updating business assistance strategies designed to encourage business expansion and job creation and for business recruitment programs;

(f) monitoring and promoting activities that increase the presence of Montana products in new and expanding markets;

(g) promoting and facilitating program strategies that add value to Montana products; and

(h) any additional responsibilities determined necessary and appropriate by the commission.

(2) The executive director shall develop a job description for each program specialist position and recommend two candidates for selection by the commission, one each with specific experience in the fields of:

(a) business development; and

(b) research and commercialization.

(3) The executive director may hire additional staff as necessary within budgetary limitations as prescribed by the commission.

NEW SECTION. Section 9. Cooperation with other groups -- use of services. In exercising its powers, functions, and duties under [sections 1 through 14], the commission shall:

(1) cooperate with representatives of business, agriculture, local development organizations, science and technology, labor, local government, tribal governments, and educational institutions as is necessary; and

(2) use, to the fullest extent possible, the services, facilities, and information of public and private agencies and organizations and of individuals in order to avoid duplication of effort and expenses, ensuring that the commission's activities will not unnecessarily overlap or conflict with similar activities authorized by law and performed by established agencies.

NEW SECTION. Section 10. Commission responsibilities. The commission shall:

(1) develop, monitor, and revise, as necessary, a strategic plan for economic growth to meet the state's economic policy provided for in [section 3] that:

(a) facilitates the enhancement and commercialization of Montana's basic industries;

(b) recruits and encourages businesses based outside of Montana to relocate in the state pursuant to [section 13];

(c) assists Montana's basic industries to expand and create new opportunities;

(d) oversees a research and commercialization strategic plan pursuant to [section 11]; and

(e) oversees a statewide agricultural assistance and marketing strategic plan pursuant to [section 14];

(2) coordinate economic development activities among state, local, and tribal governments and private economic development organizations;

(3) review semiannual reports from economic development agencies, including the commission's committees, conducting economic development activities and report the activities' effectiveness to each legislature, including:

(a) a biennial progress and performance report to the legislature and the governor on the status of the state's economy that:

(i) recommends changes in economic strategies; and

(ii) identifies impediments to economic growth;

(b) a comparative assessment of the commission's economic development activities and their effectiveness in different regions of the state, using the measurements established in subsection (4);

(c) a comparative assessment of the commission's economic development activities to those of other states in the region;

(4) conduct a benchmark assessment analyzing the progress of the commission's or any other economic development entities' strategies toward meeting the objectives established in the economic development strategic plan, using 1998 as a base year for comparison. The commission shall determine the source of data to be used in the comparison, but the data source must be used consistently for each biennial progress and performance report. The benchmark assessment must state whether the policies and programs:

(a) significantly increase Montanans' personal income;

(b) double the economic value of Montana agricultural operations;

(c) increase the number of livable wage jobs in Montana;

(d) improve overall efficiency and number of irrigated acres in the state;

(e) reduce the number of multiple jobholders in the state;

(f) double the number of employees with jobs in the manufacturing sector;

(g) increase the accessibility of high-speed telecommunications services;

(h) increase the number of startup businesses that annually receive state technical assistance; and

(i) positively impact any other social or economic benchmarks determined appropriate by the commission.

(5) promote the business and educational values present in Montana as positive factors that assist business development and productivity;

(6) facilitate conditions that demonstrate that Montana's natural resources are vital aspects of the state's economy and industries that use the state's natural resources must be given opportunities to expand while continuing to meet established environmental standards; and

(7) establish two separate committees with responsibility over research and commercialization and business development. Each committee must be served by a program specialist. The committees may investigate, examine, and inspect all records, books, and files of any department, agency, commission, board, or institution of the state engaged in promoting economic development activities.

NEW SECTION. Section 11. Research and commercialization committee -- purpose. (1) There is a research and commercialization committee chosen from among the members of the commission.

(2) The purpose of [section 12 and this section] is to:

(a) confirm the state's long-term commitment to research and commercialization;

(b) identify a stable and predictable source of funding for research projects with commercialization potential that will attract nonstate matching funds;

(c) facilitate the development of innovative technology-based businesses; and

(d) develop and implement a statewide research and commercialization strategic plan that:

(i) encourages basic industries in Montana to add value to Montana resources; and

(ii) explores new areas of research and technology development that diversify the state's economic activities and provide for future economic growth.

NEW SECTION. Section 12. Committee responsibilities -- program specialist. (1) The research and commercialization committee shall develop and implement a statewide research and commercialization strategic plan for approval by the commission that meets the objectives established in the state's economic development policy. The research and commercialization strategic plan must focus research efforts toward the state's basic industries, including production agriculture, that lead directly to commercialization benefits for Montana businesses and must provide for additional research efforts outside of the scope of the state's traditional basic industries.

(2) There is a research and commercialization program specialist. The research and commercialization committee shall prescribe the duties of the program specialist.

(3) The research and commercialization committee may solicit funds as grants, donations, or other public or private income and shall manage the funds in accordance with the instructions of the grantor.

(4) The research and commercialization committee shall adopt rules establishing a policy for reviewing research and commercialization projects applying for grants. The rules must consider whether the project:

(a) supports and implements the research and commercialization strategic plan pursuant to subsection (1);

(b) leads to greater economic diversification and the creation of quality jobs;

(c) maximizes the value of commission funds by attracting other public and private matching funds;

(d) strengthens the existing research capabilities in the state;

(e) diversifies or adds value to an existing state industry; and

(f) is located in the state.

(5) The research and commercialization committee shall recommend to the commission for approval any research and commercialization projects that meet the criteria established in subsection (4). If approved by the commission, the commission shall direct the state treasurer to distribute funds for approved projects.

NEW SECTION. Section 13. Business development committee -- purpose. (1) There is a business development committee chosen from among the members of the commission.

(2) The purpose of [section 14 and this section] is to:

(a) provide direction through the development of strategies to ensure that the activities of state and local government agencies and private economic development organizations performing business recruitment and expansion functions are coordinated through the commission;

(b) facilitate recruitment of businesses that offer quality, long-term career opportunities;

(c) develop and implement a statewide assessment tool with appropriate state agencies that provides out-of-state businesses with an accurate means to project the costs and benefits of relocating to Montana, including:

(i) labor, utility, and insurance costs;

(ii) state licensing and regulatory requirements;

(iii) applicable taxes; and

(iv) regional or local contact agencies;

(d) coordinate a statewide response that addresses changing agricultural economic conditions;

(e) strengthen the state's agricultural community by encouraging increased investments in agricultural businesses that add value to Montana products; and

(f) identify and direct assistance efforts toward Montana agricultural producers that stabilize and diversify the agricultural community.

NEW SECTION. Section 14. Committee responsibilities -- program specialist. (1) The business development committee shall develop and implement a statewide business recruitment and expansion strategic plan for approval by the commission that includes:

(a) coordinating with regional and local economic development programs; and

(b) establishing a business recruitment program that generates wages that are higher than the statewide average wages for full-time employees and that will increase over time.

(2) There is a business development program specialist. The business development committee shall prescribe the duties of the program specialist.

(3) The business development committee shall:

(a) coordinate business recruitment efforts with local economic development organizations and provide matching funds as outlined in 90-1-116;

(b) establish a program to award local leadership grants to private citizens who present local economic growth plans to the commission;

(c) conduct a national site location survey and select industries that meet the criteria established in the strategic plan;

(d) develop and administer a national campaign, including trade advertising and recruitment missions, to encourage industries to relocate in Montana; and

(e) develop a database that assesses the strengths of potential relocation sites and offer assistance in developing local responses to business relocation inquiries;

(f) develop and implement a statewide agricultural assistance and marketing strategic plan for approval by the board;

(g) direct the department of agriculture to provide the following to agricultural businesses:

(i) support for the development of individual feasibility plans designed to add value to Montana products and to secure financing for value-added production; and

(ii) assistance with marketing and distribution plans for value-added products;

(h) cooperate with the department of agriculture by:

(i) increasing the state's agricultural product sales to national and international markets;

(ii) identifying the infrastructure needs of the state's agricultural business community;

(iii) assisting agricultural businesses in complying with regulatory requirements; and

(iv) contributing information necessary for startup businesses to secure funding and begin operations.

Section 15. Section 2-18-103, MCA, is amended to read:

"2-18-103. (Temporary) Officers and employees excepted. Parts 1 through 3 and 10 do not apply to the following officers and employees in state government:

(1) elected officials;

(2) county assessors and their chief deputies;

(3) employees of the office of consumer counsel;

(4) judges and employees of the judicial branch;

(5) members of boards and commissions appointed by the governor, the legislature, or other elected state officials;

(6) officers or members of the militia;

(7) agency heads appointed by the governor;

(8) academic and professional administrative personnel with individual contracts under the authority of the board of regents of higher education;

(9) academic and professional administrative personnel and live-in houseparents who have entered into individual contracts with the state school for the deaf and blind under the authority of the state board of public education;

(10) investment officer, assistant investment officer, executive director, and three professional staff positions of the board of investments;

(11) four professional staff positions under the board of oil and gas conservation;

(12) assistant director for security of the Montana state lottery;

(13) executive director and senior investment officer of the Montana board of science and technology development;

(14) executive director and employees of the state compensation insurance fund;

(15) state racing stewards employed by the executive secretary of the Montana board of horseracing;

(16) executive director of the Montana wheat and barley committee;

(17) commissioner of banking and financial institutions;

(18) training coordinator for county attorneys;

(19) employees of an entity of the legislative branch consolidated, as provided in 5-2-504.

2-18-103. (Effective July 1, 1999) Officers and employees excepted. Parts 1 through 3 and 10 do not apply to the following officers and employees in state government:

(1) elected officials;

(2) county assessors and their chief deputies;

(3) employees of the office of consumer counsel;

(4) judges and employees of the judicial branch;

(5) members of boards and commissions appointed by the governor, the legislature, or other elected state officials;

(6) officers or members of the militia;

(7) agency heads appointed by the governor;

(8) academic and professional administrative personnel with individual contracts under the authority of the board of regents of higher education;

(9) academic and professional administrative personnel and live-in houseparents who have entered into individual contracts with the state school for the deaf and blind under the authority of the state board of public education;

(10) investment officer, assistant investment officer, executive director, and five professional staff positions of the board of investments;

(11) four professional staff positions under the board of oil and gas conservation;

(12) assistant director for security of the Montana state lottery;

(13) executive director and employees of the state compensation insurance fund;

(14) state racing stewards employed by the executive secretary of the Montana board of horseracing;

(15) executive director of the Montana wheat and barley committee;

(16) commissioner of banking and financial institutions;

(17) training coordinator for county attorneys;

(18) employees of an entity of the legislative branch consolidated, as provided in 5-2-504;

(19) executive director and program specialists of the Montana commission on jobs and income."

NEW SECTION. Section 16. Codification instruction. [Sections 1 through 14] are intended to be codified as an integral part of Title 90, chapter 3, and the provisions of Title 90, chapter 3, apply to [sections 1 through 14].

NEW SECTION. Section 17. Appropriation -- conditions. (1) There is appropriated to the Montana commission on jobs and income $2,170,000 from the general fund for the fiscal year ending July 1, 2001, for the purposes described in subsection (2).

(2) The commission shall use the funds appropriated in subsection (1) for:

(a) funding the certified communities program established in 90-1-116;

(b) providing grants to a local leadership program; and

(c) providing matching funds to federal small business innovation research funds.

(3) The remaining funds appropriated to the commission may be used for the purposes described in [sections 3 through 14].

NEW SECTION. Section 18. Effective dates. (1) [Sections 1 through 16 and this section] are effective on passage and approval.

(2) [Section 17] is effective July 1, 1999.

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