HOUSE BILL NO. 577

INTRODUCED BY B. STORY

A BILL FOR AN ACT ENTITLED: "AN ACT ESTABLISHING A MATCHING GRANT PROGRAM ADMINISTERED BY THE AGRICULTURAL DEVELOPMENT COUNCIL TO SUPPORT QUALIFIED ORGANIZATIONS THAT ARE SEEKING LEGAL REMEDIES RELATED TO UNFAIR FOREIGN TRADE PRACTICES AND THE IMPLEMENTATION OF INTERNATIONAL TRADE AGREEMENTS; APPROPRIATING MONEY FOR THE MATCHING GRANT PROGRAM; AMENDING SECTIONS 90-9-202, 90-9-203, 90-9-401, AND 90-9-402, MCA; AND PROVIDING AN EFFECTIVE DATE."

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

Section 1. Section 90-9-202, MCA, is amended to read:

"90-9-202. Powers and duties of the council. The council shall:

(1) establish policies and priorities to enhance the future development of agriculture in Montana;

(2) issue grants to qualified organizations pursuing legal remedies related to unfair foreign trade practices and the implementation of international trade agreements;

(3) make investments or loans in agricultural development projects that have a short- or long-term ability to stimulate agriculture development and diversification in Montana, including but not limited to:

(a) seed capital loans for development and commercialization of new products and processes;

(b) agricultural business incubators;

(c) foreign and domestic market development activities;

(d) applied technological research; and

(e) agricultural technology assistance and transfer; and

(4) accept grants or receive devises of money or property for use in making the investments, loans, or grants authorized by this chapter."

Section 2. Section 90-9-203, MCA, is amended to read:

"90-9-203. Rulemaking. The council shall adopt rules necessary to implement the provisions of this chapter, including but not limited to rules:

(1) governing the conduct of council business;

(2) establishing application procedures that, at a minimum, require the submittal of an executive summary for an agricultural development project loan, a business plan for a seed capital project loan, a research and development project proposal for a research and development project loan, a detailed proposal and a budget plan for the pursuit of legal remedies related to unfair foreign trade practices and the implementation of international trade agreements, and other documents necessary to meet the criteria established in the act;

(3) establishing procedures to be followed by the council in its review process prior to making an agricultural development project loan;

(4) establishing postdisbursement activities that describe the ongoing involvement or follow-along management of the council that may be required in an agricultural development project loan agreement."

Section 3. Section 90-9-401, MCA, is amended to read:

"90-9-401. Agricultural marketing enhancement. The council shall assist in identification and development of new domestic and foreign markets for Montana agricultural products. The council shall:

(1) assist in placing one full-time professional marketing person in Japan or another Pacific Rim country to develop export marketing opportunities in the Pacific region;

(2) provide assistance for appropriate trade missions of Montana producers, processors, or distributors of agricultural products on a cost-share basis;

(3) administer a grant program designed to provide financial assistance, on a one-to-one matching fund basis, to qualified organizations seeking legal remedies related to unfair foreign trade practices and the implementation of international trade agreements; and

(4) assist in other appropriate means of enhancing domestic markets for Montana agricultural products."

Section 4. Section 90-9-402, MCA, is amended to read:

"90-9-402. Export finance assistance -- legal remedies funding. (1) The council shall provide professional assistance to persons who apply for financial assistance for the purpose of developing export sales of Montana agricultural products.

(2) The council may solicit funds and technical assistance from the federal government and private commercial or nonprofit organizations for the purpose of matching on at least a one-to-one basis state funds devoted to the pursuit of legal remedies related to unfair foreign trade practices and the implementation of international trade agreements.

(3) The council shall provide notice to interested persons and organizations about the legal remedies grant program in subsection (2) in a manner determined by the council."

NEW SECTION. Section 5. Trade agreements assistance -- grant fund -- spending guidelines. (1) There is a legal remedies grant account established in the state special revenue fund administered by the department for the agricultural development council established in 90-9-202.

(2) All money appropriated to the department for the purposes established in 90-9-202(2) must be allocated to the agricultural development council to meet administrative costs and to be distributed as grants to qualified organizations, as provided in [section 6].

(3) The agricultural development council shall endeavor to minimize administrative expenditures and shall grant not less than 90% of the appropriated funds or gifts and donations to qualified applicants.

(4) A matching grant awarded to a qualified organization may not exceed $50,000 in any fiscal year.

NEW SECTION. Section 6. Qualifications -- application. To qualify for matching funds distributed from the legal remedies grant account established in [section 5], an organization must have:

(1) obtained official recognition from the United States internal revenue service and the Montana secretary of state as a nonprofit corporation that is exempt from federal taxes;

(2) established a board of directors that has at least one representative who is a Montana citizen;

(3) achieved standing in view of the appropriate federal court or international tribunal to file suit and pursue an action related to unfair foreign trade practices or an international trade agreement to which the United States is a signatory;

(4) obtained funding support from sources other than the state of Montana in an amount that is not less than the total amount sought by the organization from the grant account established in [section 5].

NEW SECTION. Section 7. Appropriation. There is appropriated $100,000 in fiscal year 2000 from the general fund to the department of agriculture for the purpose of establishing a grant program to be administered by the agricultural development council during the biennium ending June 30, 2001. Any portion of the money appropriated that is not issued to grantees or expended for administrative purposes must be reverted to the general fund on or before June 30, 2001.

NEW SECTION. Section 8. Codification instruction. [Sections 5 and 6] are intended to be codified as an integral part of Title 90, chapter 9, and the provisions of Title 90, chapter 9, apply to [sections 5 and 6].

NEW SECTION. Section 9. Effective date. [This act] is effective July 1, 1999.

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