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HOUSE BILL NO. 237
INTRODUCED BY E. SWANSON, J. TESTER, M. WATERMAN, M. TAYLOR, C. TUSS, L. GROSFIELD, R. DEPRATU, K. OHS, D. MOOD, B. SIMON
BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME
AN ACT REDUCING THE BOARD OF INVESTMENTS MINIMUM INFRASTRUCTURE LOAN AMOUNT FROM $500,000 TO $250,000; REDUCING THE MINIMUM NUMBER OF JOBS CREATED FROM 50 TO 15 THAT ARE REQUIRED FOR A MINIMUM INFRASTRUCTURE LOAN AMOUNT; INCREASING THE MAXIMUM LOAN AMOUNT FROM $20 MILLION TO $50 MILLION; REMOVING THE REQUIREMENT THAT ONLY SMALL BUSINESSES MAY RECEIVE A JOB CREDIT INTEREST RATE REDUCTION FOR PARTICIPATING IN THE JOB CREATION LOAN PROGRAM; AMENDING SECTIONS 17-6-309, 17-6-311, AND 17-6-318, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 17-6-309, MCA, is amended to read:
"17-6-309. Investment preferences. (1) Subject to the provisions of subsection (2), in deciding which of several investments of equal or comparable security and return are to be made when sufficient funds are not available to fund all possible investments, the board shall give preference to the business investments that:
(a) assist employee-owned enterprises in providing new jobs or in preserving existing jobs for Montana residents or in otherwise contributing to the long-term benefit of the Montana economy, including raising the per capita income of Montana jobholders;
(b) are for locally owned enterprises that are either expanding or establishing new operations;
(c) provide jobs that will be substantially filled by current Montana residents as opposed to providing jobs that will be filled by nonresidents coming into the state to fill such jobs;
(d) maintain and improve a clean and healthful environment, with emphasis on energy efficiency;
(e) encourage or benefit the processing, refining, marketing, and innovative use and promotion of Montana's agricultural products; or
(f) benefit small- and medium-sized businesses as defined in rules adopted by the board.
(2) The board may make a loan to enhance economic development and create jobs in the basic sector of the economy, as
defined by the board by rule, if the loan will result in the creation of a business estimated to employ at least
50 15 people in
Montana on a permanent, full-time basis or result in the expansion of a business estimated to employ at least an additional 50
15 people in Montana on a permanent, full-time basis or raise salaries, wages, and business incomes of existing employees
Section 2. Section 17-6-311, MCA, is amended to read:
"17-6-311. Limitation on size of investments. (1) Except as provided in subsections (2) through (4), an investment may not be made that will result in any one business enterprise or person receiving a benefit from or incurring a debt to the permanent coal tax trust fund the total current accumulated amount of which exceeds 1% of the permanent coal tax trust fund.
(2) Subsection (1) does not limit the board's authority to make loans to the capital reserve account as provided in 17-6-308(2).
(3) Subsection (1) does not apply to the purchase of debentures issued by a capital company; however, the total amount of such debentures purchased by the board may not exceed 1% of the Montana permanent coal tax trust fund at the time of purchase.
(4) The total amount of loans made pursuant to 17-6-309(2) may not exceed
$20 $50 million, and a single loan may not
be less than $500,000 $250,000. A loan may not exceed $10,000 $16,666 per job that is estimated to be created. In
determining the size of a loan made pursuant to 17-6-309(2), the board shall consider:
(a) the estimated number of jobs to be created by the project within a 4-year period from the time that the loan is made and the impact of the jobs on the state and the community where the project will be located;
(b) the long-term effect of corporate and personal income taxes estimated to be paid by the business and its employees;
(c) the current and projected ability of the community to provide necessary infrastructure for economic and community
(d) the amount of increased salaries, wages, and business incomes of existing jobholders and businesses; and
(d)(e) other matters that the board considers necessary."
Section 3. Section 17-6-318, MCA, is amended to read:
"17-6-318. Job credit interest rate reduction for
small business loan participations. (1) A borrower who uses the
proceeds of a small business loan participation funded under the provisions of this part to create jobs employing Montana
residents is entitled to a job credit interest rate reduction for each job created over a 2-year period to employ a Montana
resident. A borrower who used the proceeds of a loan made pursuant to 17-6-309(2) to create jobs is entitled to a job credit
interest rate reduction for each job created in the 4-year period provided for in 17-6-311(4)(a). The date of the formal
written interim or permanent loan application to the financial institution will be used as a beginning date for counting the
number of jobs created. The job credit interest rate reduction may not apply to a loan participation of more than 1% of the
total of the permanent coal tax trust fund determined at the end of the last-completed fiscal year. The job credit interest rate
reduction is equal to 0.05% for each job created to employ a Montana resident, up to a maximum interest rate reduction of
(2) If the salary or wage of the job created:
(a) exceeds the average weekly wage, as defined in 39-71-116, the amount of the job credit interest rate reduction may be increased proportionately for each increment of 25% above the average weekly wage to a maximum of two times the average weekly wage; or
(b) is less than the average weekly wage, as defined in 39-71-116, the job credit interest rate reduction is reduced proportionately for each 25% increment below the average wage.
(3) A job credit interest rate reduction may not be allowed for a job created by the borrower using the proceeds of the loan for which the salary or wage is less than the minimum wage provided for in 39-3-409.
(4) A job credit may not be given unless one whole job is created.
(5) To qualify for the job credit interest rate reduction, the borrower shall provide satisfactory evidence of the creation of jobs and make application in writing, through its financial institution, to the board when the loan is delivered to the board or not later than 45 days after the applicable anniversary dates of the loan."
Section 4. Effective date. [This act] is effective on passage and approval.
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Latest Version of HB 237 (HB0237.ENR)
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