SENATE BILL NO. 170

INTRODUCED BY M. TAYLOR, OHS, TUSS, GROSFIELD, SWANSON, SIMON, WATERMAN, MOOD

BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING THE DEPARTMENT OF COMMERCE TO MAKE EMERGENCY TREASURE STATE ENDOWMENT GRANTS; REQUIRING LOCAL GOVERNMENT ENTITIES TO REIMBURSE FUNDS ADVANCED FOR PROJECTS NOT COMPLETED; REVISING THE CRITERIA AND PRIORITIES FOR AWARDING FUNDING; AMENDING SECTION 90-6-710, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."

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

Section 1. Section 90-6-710, MCA, is amended to read:

"90-6-710. Priorities for projects -- procedure -- rulemaking. (1) The department of commerce must receive proposals for projects from local governments as defined in 90-6-701(3)(b). The department shall work with a local government in preparing cost estimates for a project. In reviewing project proposals, the department may consult with other state agencies with expertise pertinent to the proposal. The department shall prepare and submit a list containing the recommended projects and the recommended form and amount of financial assistance for each project to the governor, prioritized pursuant to subsection (2). The governor shall review the projects recommended by the department and shall submit a list of recommended projects and the recommended financial assistance to the legislature.

(2) In preparing recommendations under subsection (1), preference must be given to infrastructure projects based on the following order of priority:

(a) projects that solve urgent and serious public health or safety problems or

that enable local governments to meet state or federal health or safety standards;

(b) projects that reflect greater need for financial assistance than other projects;

(c) projects that incorporate appropriate, cost-effective technical design and that provide thorough, long-term solutions to community public facility needs;

(d) projects that reflect substantial past efforts to ensure sound, effective, long-term planning and management of public facilities and that attempt to resolve the infrastructure problem with local resources;

(e)

projects that enable local governments to obtain funds from sources other than the funds provided under this part;

(f) projects that provide long-term, full-time job opportunities for Montanans,

that provide public facilities necessary for the expansion of a business that has a high potential for financial success, or

that maintain the tax base or that encourage expansion of the tax base; and

(g) projects that are high local priorities and have strong community support.

(3) After the review required by subsection (1), the projects must be approved by the legislature.

(4) The department shall adopt rules necessary to implement the treasure state endowment program."

NEW SECTION. Section 2. Emergency funding for projects between legislative sessions. In addition to implementing projects approved by the legislature, the department of commerce may request up to 10% of the grant funds available from the treasure state endowment fund in any biennium to be appropriated for emergency grants for infrastructure projects required to remedy conditions that, if allowed to continue until legislative approval could be obtained, would endanger the public health or safety and expose the applicant to substantial financial risk. The department may not make emergency grants to remedy situations that have resulted from the gross negligence of the local government applicant. The department shall inform the legislative finance committee of any emergency grant.

NEW SECTION. Section 3. Infrastructure levy -- reimbursement to state. (1) Approved treasure state endowment program projects may require the local government entity to submit to the qualified electors at the next tax election a fee increase necessary to complete the project. In order to determine the amount of fee increase required, design and engineering work for the project may have to be completed before this election may be held.

(2) The department of commerce may advance all or a portion of the treasure state endowment program grant to the local entity, and the entity may use this advance as the first funding source for a project that has multiple funding sources when these other resources are unavailable to complete the design and engineering work for the project.

(3) If the fee increase required to complete the project is not approved by the electorate after two elections on the issue following the entity's receipt of funds under subsection (2) or if the project is not completed for any other reason, the state shall withhold funds that would otherwise be payable to the entity by the state or the entity may reimburse the state from other funds until an amount equal to the amount of the treasure state endowment program funds that were advanced has been withheld or paid to the state. The state shall deposit the withheld or reimbursed funds in the treasure state endowment fund established in 17-5-703.

NEW SECTION. Section 4. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [section 3] is void.

NEW SECTION. Section 5. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].

NEW SECTION. Section 6. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 7. Applicability. [This act] applies to projects funded with interest earnings from the treasure state endowment fund earned after June 30, 2001.

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