AN ACT GENERALLY REVISING THE MONTANA SMALL BUSINESS PURCHASING ACT; REVISING THE DEFINITION OF "SMALL BUSINESS"; ELIMINATING CERTAIN REQUIREMENTS RELATED TO THE DESIGNATION OF SMALL BUSINESS SET-ASIDES AND TO THE ADVERTISEMENT FOR BIDS AND NOTIFICATION OF BIDDERS; REPEALING THE PREFERENCE FOR THE MONTANA SMALL BUSINESS WHEN THERE IS A TIE FOR LOW BID; AMENDING SECTIONS 18-5-303, 18-5-304, AND 18-5-305, MCA; REPEALING SECTIONS 18-5-301, 18-5-302, 18-5-303, 18-5-304, 18-5-305, 18-5-306, 18-5-307, AND 18-5-308, MCA; AND PROVIDING EFFECTIVE DATES.

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

Section 1. Section 18-5-303, MCA, is amended to read:

"18-5-303. Definitions. As used in this part, unless the context requires otherwise, the following definitions apply:

(1) "Department" means any department, division, or agency of the state of Montana.

(2) "Small business" means a business that is independently owned and operated . The department of administration shall establish a detailed definition by rule using, in addition to the foregoing criteria, other criteria. Small business shall further mean a business domiciled in the state of Montana and that employs more than 50% of its total employed personnel within the boundaries of the state of Montana.

(3) "Small business set-aside" means a purchase request for which bids are to be invited and accepted only from small businesses by a department."

Section 2. Section 18-5-304, MCA, is amended to read:

"18-5-304. Designation of small business set-asides. (1) Each department has authority to designate as small business set-asides specified commodities, equipment, or services, except those services rendered and furnished by registered professions, such as but not limited to accountants, attorneys, architects, dentists, engineers, land surveyors, optometrists, physicians, and pharmacists, for which purchase has been requested under the Montana Small Business Purchasing Act.

(2) In the case of purchase designated as small business set-asides, invitations to bid must be confined to small businesses, and bids from other businesses must be rejected. The purchase, contract, or expenditure of funds must be awarded to the lowest responsible bidder among the small businesses, considering conformity with specifications and terms, in accordance with the rules for purchasing published by the department."

Section 3. Section 18-5-305, MCA, is amended to read:

"18-5-305. Withdrawal of small business set-aside designation. If a department determines that acceptance of the best bid will result in the payment of an unreasonable price, the department shall reject all bids and withdraw the designation of small business set-aside.

"

Section 4. Repealer. (1) Sections 18-5-306 and 18-5-307, MCA, are repealed.

(2) Sections 18-5-301, 18-5-302, 18-5-303, 18-5-304, 18-5-305, and 18-5-308, MCA, are repealed.

Section 5. Effective dates. (1) [Sections 1 through 4(1) and this section] are effective on passage and approval.

(2) [Section 4(2)] is effective June 30, 2003.

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I hereby certify that the within bill,

HB 0581, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 581

INTRODUCED BY J. COBB

AN ACT GENERALLY REVISING THE MONTANA SMALL BUSINESS PURCHASING ACT; REVISING THE DEFINITION OF "SMALL BUSINESS"; ELIMINATING CERTAIN REQUIREMENTS RELATED TO THE DESIGNATION OF SMALL BUSINESS SET-ASIDES AND TO THE ADVERTISEMENT FOR BIDS AND NOTIFICATION OF BIDDERS; REPEALING THE PREFERENCE FOR THE MONTANA SMALL BUSINESS WHEN THERE IS A TIE FOR LOW BID; AMENDING SECTIONS 18-5-303, 18-5-304, AND 18-5-305, MCA; REPEALING SECTIONS 18-5-301, 18-5-302, 18-5-303, 18-5-304, 18-5-305, 18-5-306, 18-5-307, AND 18-5-308, MCA; AND PROVIDING EFFECTIVE DATES.