HOUSE BILL NO. 561

INTRODUCED BY S. GALLUS, G. DEVLIN, S. DOHERTY, L. GRINDE, J. HARP, J. LYNCH, W. MCNUTT, J. MERCER, A. MOHL, J. QUILICI, F. THOMAS

A BILL FOR AN ACT ENTITLED: "AN ACT ALLOWING THE TRANSPORTATION COMMISSION TO TRANSFER APPORTIONED PRIMARY HIGHWAY SYSTEM FUNDS WITHIN AND BETWEEN FINANCIAL DISTRICTS; AND AMENDING SECTION 60-3-205, MCA."

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

Section 1. Section 60-3-205, MCA, is amended to read:

"60-3-205. Apportionment of state funds to primary highway system. (1) Prior to the beginning of each biennium, the commission, referring to highway sufficiency ratings developed by the department, shall designate a level of sufficiency considered adequate and a lesser level of sufficiency considered critical, both to be used to compute the apportionment of federal-aid highway funds for the primary highway system during the succeeding biennium.

(2) The department shall then compute the ratio:

(a) between the mileage rated below adequate sufficiency in each financial district and the total mileage rated below adequate sufficiency of the primary highway system in the state; and

(b) between the mileage rated at or below critical sufficiency in each financial district and the total mileage rated at or below critical sufficiency of the primary highway system in the state.

(3) The department, subject to the limitation provided in subsection (4), shall then distribute three-fourths of the available federal-aid highway funds for the primary highway system among the financial districts according to the ratios computed in subsection (2)(a) and one-fourth of the available federal-aid highway funds for the primary highway system among the financial districts according to the ratios computed in subsection (2)(b).

(4) A financial district may not receive more than one-third of the total funds available for the primary highway system in any biennium. If a financial district would receive more than one-third of the total funds available under the formula in subsection (3), its apportionment is limited to the one-third maximum and any excess funds that it would have received must be redistributed among the other districts according to the formula.

(5) (a) To the extent necessary to permit the orderly programming and construction of projects, the commission may transfer and obligate apportioned primary system funds for any project located on the federal-aid interstate or national highway systems within a financial district. The commission may transfer and obligate any amount of apportioned primary system funds to any other financial district if the financial district receiving primary system funds transfers an equal amount of federal-aid interstate or national highway system funds to the financial district from which the transfer originated. This transferred amount is in addition to the federal-aid interstate and national highway system funds that would have been obligated on these systems within the federal fiscal year of transfer.

(b) The intent of the provisions allowing transfers between financial districts is that a district may not receive less funding than the amount distributed by the formula of this subsection and that a district may not transfer more than is received by virtue of this formula for a given federal fiscal year."

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