HOUSE BILL NO. 259
INTRODUCED BY R. JOHNSON
A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING THE DEPARTMENT OF ADMINISTRATION TO NEGOTIATE TRANSPORTATION CONTRACTS WITH CERTAIN INTRASTATE TRANSPORTATION PROVIDERS; REQUIRING STATE AGENCIES TO COMPLY WITH THE TRANSPORTATION CONTRACTS; EXEMPTING CERTAIN TRANSPORTATION CONTRACTS FROM COMPETITIVE BIDDING REQUIREMENTS; AUTHORIZING THE DEPARTMENT OF ADMINISTRATION TO ADOPT RULES; AND AMENDING SECTION 18-4-132, MCA."
WHEREAS, the existence of a strong and healthy intrastate passenger transportation industry is essential to the well-being of the citizens of this state and the strength of this state's economy; and
WHEREAS, the existence and support of Montana intrastate passenger transportation providers is essential to the maintenance and expansion of public transportation in this state; and
WHEREAS, negotiated contracts with providers of intrastate passenger transportation services in Montana can provide economies to the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Short title. [Sections 1 through 11] may be cited as the "Montana Intrastate Transportation Provider Purchasing Act".
NEW SECTION. Section 2. Purpose and policy. It is the purpose of [sections 1 through 11] and the policy of this state to ensure that:
(1) Montana businesses have the opportunity to provide a fair proportion of the state's total intrastate passenger transportation needs;
(2) utilization of Montana businesses that provide intrastate passenger transportation services is encouraged; and
(3) the state shall seek to negotiate rates with Montana businesses that provide intrastate passenger transportation services in order to achieve economies.
NEW SECTION. Section 3. Definitions. As used in [sections 1 through 11], unless the context requires otherwise, the following definitions apply:
(1) "Agency" means a state office, department, board, commission, committee, council, unit of the university system, or any other entity or instrumentality of the executive, legislative, or judicial branch of state government.
(2) "Montana intrastate transportation provider" means a business domiciled in Montana that provides intrastate passenger transportation services. A business is considered domiciled in Montana if it is:
(a) an individual proprietorship and the individual proprietor has resided in the state for a period of more than 1 year prior to the award of a transportation contract;
(b) a partnership enterprise or association in which the majority of the partners or association members have been in actual residence in the state for a period of more than 1 year; or
(c) a domestic corporation organized under the laws of the state of Montana with a principal place of business in the state for a period of more than 1 year prior to the award of a transportation contract or a foreign corporation that employs more than 50% of its employed personnel within the boundaries of the state of Montana and has its principal place of business in the state of Montana. This qualification does not apply when it is shown to the satisfaction of the department that the corporation is a wholly owned subsidiary of a foreign corporation or that the corporation was formed for the purpose of circumventing the provisions of this section relating to Montana domicile.
(3) "Transportation contract" means an agreement to provide passenger transportation services between points and places in the state of Montana awarded by the department under [sections 1 through 11].
NEW SECTION. Section 4. Department to determine qualifications -- applications for redetermination -- determination as prima facie evidence. (1) The department shall determine if a transportation provider qualifies as a Montana intrastate transportation provider. An agency may request that the department provide a determination of a transportation provider's qualifications as a Montana intrastate transportation provider. A request must specify the name and address of the transportation provider for whom a determination of status as a Montana intrastate transportation provider is required.
(2) If a determination is made that a transportation provider is not a Montana intrastate transportation provider, the transportation provider may apply to the department for a redetermination. If upon redetermination the transportation provider is found to qualify as a Montana intrastate transportation provider, the transportation provider must be furnished with a letter by the department attesting to the qualification.
(3) The determination by the department that a transportation provider is a Montana intrastate transportation provider is prima facie evidence of that fact.
NEW SECTION. Section 5. Transportation provider to submit affidavit -- penalty. (1) A transportation provider shall submit or have on file with the department an affidavit specifying in detail, as determined by rule of the department, its qualifications as a Montana intrastate transportation provider.
(2) If the department determines that the transportation provider has submitted a false affidavit under subsection (1), the transportation provider is disqualified from negotiating or entering into any future transportation contracts with the department and from providing transportation services to an agency for a period of 5 years from the date of the determination.
NEW SECTION. Section 6. Monitoring of requirements -- information to agencies. (1) The department shall work with each agency to determine the agency's transportation requirements for business travel. The department shall monitor the requirements to ensure that the transportation contracts reflect the needs of the agencies.
(2) The department shall provide agencies with the names of Montana intrastate transportation providers that have been awarded transportation contracts under [section 7] and shall provide information about transportation services available from Montana intrastate transportation providers.
NEW SECTION. Section 7. Negotiated contracts -- impartiality. (1) The department shall negotiate contracts with Montana intrastate transportation providers that are beneficial to the state. The length of the contracts must be determined by the department.
(2) Transportation contracts negotiated under this section are not subject to the competitive bidding requirements of Title 18, chapter 4, as long as the rates negotiated for transportation services do not exceed the rates published and made available to the general public for nondiscounted business class transportation by the Montana intrastate transportation provider.
(3) Contracts with transportation providers for rates greater than the transportation provider's rates published and made available to the general public for nondiscounted business class transportation are not governed by [sections 1 through 11] and are subject to the competitive bidding requirements of Title 18, chapter 4.
(4) The department may not show any partiality or favoritism in entering into transportation contracts and must be absolutely fair and impartial. When the terms and conditions offered by competing Montana intrastate transportation providers are the same, the department shall enter into transportation contracts with each of the Montana intrastate transportation providers offering the same terms and conditions.
NEW SECTION. Section 8. Agency and employee participation in contracts. (1) An agency or a state employee engaged in business travel shall, to the extent practical, comply with a transportation contract entered into by the department.
(2) An agency may begin to comply with the provisions of a transportation contract at any time during the term of the contract with the concurrence of the department.
(3) A county or a county official engaged in official business may utilize a transportation contract awarded by the department.
NEW SECTION. Section 9. Use of travel agency or reservation service. Except as otherwise provided in a transportation contract entered into by the department, an agency or a state employee traveling on state business may use the services of a travel agency, a reservation service, or a transportation provider to process reservations or ticketing requests, provided that the reservations and ticketing comply with the rates negotiated in the transportation contract.
NEW SECTION. Section 10. Rules. (1) The department shall adopt rules to implement [sections 1 through 11], including but not limited to rules for:
(a) negotiating, amending, and terminating a transportation contract; and
(b) determining the contents of the affidavit required in [section 5].
(2) The department's rules apply to all agencies.
NEW SECTION. Section 11. Construction with other sections. Procurement of passenger transportation services and the negotiation of and entry into transportation contracts with Montana intrastate transportation providers, at rates that do not exceed the rates published and made available to the general public for nondiscounted business class travel within the state of Montana, are governed by [sections 1 through 11] and any rules adopted under [sections 1 through 11]. Any rules or statutes that conflict with [sections 1 through 11] do not apply.
Section 12. Section 18-4-132, MCA, is amended to read:
"18-4-132. Application. (1) This chapter applies to expenditure of public funds irrespective of their source, including federal assistance money, by this state acting through a governmental body, as defined in 18-4-123, under any contract. This chapter does not apply to either grants or contracts between the state and its political subdivisions or other governments, except as provided in part 4. This chapter also applies to the disposal of state supplies. This chapter or rules adopted pursuant to this chapter do not prevent any governmental body or political subdivision from complying with the terms and conditions of any grant, gift, bequest, or cooperative agreement.
(2) This chapter does not apply to construction contracts.
(3) This chapter does not apply to expenditures of or the authorized sale or disposal of equipment purchased with money raised by student activity fees designated for use by the student associations of the university system.
(4) This chapter does not apply to contracts entered into by the Montana state lottery that have an aggregate value of less than $250,000.
(5) This chapter does not apply to employment of:
(a) a registered professional engineer, surveyor, real estate appraiser, or registered architect;
(b) a physician, dentist, pharmacist, or other medical, dental, or health care provider;
(c) an expert witness hired for use in litigation, a hearings officer hired in rulemaking and contested case proceedings under the Montana Administrative Procedure Act, or an attorney as specified by executive order of the governor;
(d) consulting actuaries;
(e) a private consultant employed by the student associations of the university system with money raised from student activity fees designated for use by those student associations;
(f) a private consultant employed by the Montana state lottery;
(g) a private investigator licensed by any jurisdiction; or
(h) a claims adjuster.
(6) This chapter does not apply to a transportation contract, as defined in [section 3], as long as the rates negotiated in the contract do not exceed the rates published and made available to the general public for nondiscounted business class transportation."
NEW SECTION. Section 13. Codification instruction. [Sections 1 through 11] are intended to be codified as an integral part of Title 18, and the provisions of Title 18 apply to [sections 1 through 11].
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Latest Version of HB 259 (HB0259.01)
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