SENATE BILL NO. 469

INTRODUCED BY M. WATERMAN

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING THAT THE DEPARTMENT OF PUBLIC HEALTH AND HUMAN SERVICES MAY PURCHASE SURPLUS MOTOR VEHICLES FOR PURCHASE BY FAIM FINANCIAL ASSISTANCE PARTICIPANTS; PROVIDING CRITERIA FOR THE PARTICIPANTS TO PURCHASE THE VEHICLES; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE."

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

NEW SECTION. Section 1. Purchase of surplus motor vehicles for FAIM financial assistance recipients -- criteria for recipient purchase program. (1) The department may purchase surplus motor vehicles from the department of administration at residual value for the purpose of allowing FAIM financial assistance recipients to purchase the motor vehicles through local nonprofit agencies contracted with by the department for that purpose. The department of administration shall waive the surplus property administrative fee authorized by 18-5-203.

(2) An individual purchasing a motor vehicle:

(a) (i) must be a participant in the FAIM financial assistance program; or

(ii) must have been a participant in the FAIM financial assistance program within the last 3 months, still be eligible for FAIM financial assistance, and be able to show that the individual would have to again request FAIM financial assistance because a lack of transportation has jeopardized continuing employment;

(b) must be currently employed, be actively working on becoming employed, or be employed within 30 days of receipt of the vehicle;

(c) shall continue employment or employment activities throughout the life of the vehicle purchase agreement with the local nonprofit agency or, if the individual becomes unemployed, continue to make a payment or donation or the lien process will occur;

(d) shall share in the cost and ownership of the vehicle by making car payments or donations to the local nonprofit agency handling the program; and

(e) shall buy and maintain an auto liability insurance policy that may not exclude or restrict coverage when the individual or another working adult within the household is the driver and, at the discretion of the local nonprofit agency, shall buy comprehensive vehicle collision coverage that may not exclude or restrict coverage when the individual or another working adult within the household is the driver. The vehicle coverage may only be for the individual or other working adults within the household, and only the individual and other covered working adults within the household may be allowed to drive the car during the term of a vehicle purchase agreement.

(3) Money received as a car payment or donation must be used by the local nonprofit agency to assist other eligible individuals in meeting transportation needs.

(4) A lien must be placed on each vehicle that is sold by the local nonprofit agency until payment is made in full by the participant.

(5) Failure to make a payment or donation, follow employment activities or plans, or to continue employment may result in repossession of the vehicle. Each local nonprofit agency shall establish guidelines for repossession.

(6) The state and the local nonprofit agency make no express or implied warranty of safety, merchantability, or condition with respect to any of these vehicles. There is no warranty that the vehicle is fit for a particular purpose.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 53, chapter 4, part 2, and the provisions of Title 53, chapter 4, part 2, apply to [section 1].

NEW SECTION. Section 3. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 4. Termination. [This act] terminates July 1, 2003.

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