HOUSE BILL NO. 422

INTRODUCED BY C. YOUNKIN

A BILL FOR AN ACT ENTITLED: "AN ACT CHANGING THE ACCOUNTING FUND TYPE FOR THE GUARANTEED STUDENT LOAN ACCOUNT FROM THE FEDERAL SPECIAL REVENUE FUND TO THE ENTERPRISE FUND; AMENDING SECTION 20-26-1105, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."

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

Section 1. Section 20-26-1105, MCA, is amended to read:

"20-26-1105. Student loan account. (1) There is a student loan account within the enterprise fund provided for in 17-2-102.

(2) The board shall credit to the account established in subsection (1) all money designated for the student loan program by the United States or by any other public or private source. All expenses incurred by the board in connection with the student loan program, including principal and interest payments required because of loan defaults, must be charged against the account.

(3) Money in the account not needed to meet current obligations of the board in the exercise of its responsibilities as guarantor and administrator, as provided for in this part, must be invested in accordance with the provisions of Title 17, chapter 6. Interest proceeds must be credited to the account.

(4) Money on deposit in the student loan account may not revert to the general fund at the close of any fiscal year."

NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.

NEW SECTION. Section 3. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to July 1, 1998.

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