House Bill No. 14

Introduced By r. johnson

By Request of the Office of Budget and Program Planning

A Bill for an Act entitled: An Act authorizing the creation of state debt through the issuance of general obligation bonds; appropriating the proceeds of the bonds for capital projects for the biennium ending June 30, 1999; providing for matters relating to appropriations; amending section 12, chapter 774, laws of 1991; and providing an immediate effective date.

Be it enacted by the Legislature of the State of Montana:

Section 1.  Definitions. For the purposes of [sections 1 through 7], unless otherwise stated, the following definitions apply:

(1) "Capital project" means the acquisition of land or improvements or the planning, capital construction, renovation, furnishing, or major repair projects authorized in [sections 1 through 7].

(2) "CPF" means the capital projects fund.

(3) "Other funding sources" means money other than CPF money, including special revenue fund money, that accrues to an agency under the provisions of the law.

Section 2.  Appropriation of bond proceeds and other funds. (1) The following money is appropriated from the CPF and other funding sources to the department of administration for the capital projects described in this section, contingent upon the respective authorization of general obligation long-range building program bonds by the 55th legislature and the sale of the bonds by the board of examiners:

Agency/Project CPF


Critical Project Requirements, Capitol Renovation $ 3,458,700

Historic Restoration, Montana State Capitol 678,902


One Additional Regional Correctional Facility 500,000

New Food Service/Kitchen Facility, MSP, Deer Lodge 2,150,000

Campus Expansion/Consolidation, PHS, Miles City 10,306,000

192 Bed, Infrastructure and Services Expansion and

Fire/Life Safety/Road Improvements, MSP, Deer Lodge 5,340,000


Purchase of Virginia City and Nevada City Property 3,912,500


Replace Primary Electrical Distribution,

MSU-Billings 963,600

Replace HVAC System, Science Complex, UM-Missoula 1,200,000

Utility Tunnel Extension, MSU-Bozeman 5,623,113

Repair/Replace Primary Electrical Distribution,

MSU-Northern 1,028,000

Boiler Plant and Utility Distribution, UM-Dillon 1,117,000

Facility Renovation/Completion MSU-COT-GF 3,950,000

Addition to Special Education Building,

MSU-Billings 7,004,000

(2) It is the intent of the 55th legislature that at least 50% of all future operations and maintenance costs for the special education building addition at MSU-Billings be funded by Montana state university and that no more than 50% be funded with general fund money.

Section 3.  Authorization of bonds. The board of examiners is authorized to issue and sell general obligation long-range building program bonds in an amount not exceeding $47,231,815 for the projects described in [section 2] over and above the amount of general obligation long-range building program bonds outstanding on January 1, 1997, to be issued in accordance with the terms and in the manner required by Title 17, chapter 5, part 8. The authority granted to the board by this section is in addition to any other authorization to the board to issue and sell general obligation long-range building program bonds.

Section 4.  Planning and design. The department of administration may proceed with the planning and design of capital projects before the receipt of other funding sources. The department may use interaccount loans in accordance with 17-2-107 to pay planning and design costs incurred before the receipt of other funding sources.

Section 5.  Capital projects -- contingent funds. If a capital project is financed in whole or in part with appropriations contingent upon the receipt of other funding sources, the department of administration may not let the projects for bid until the agency has submitted a financial plan for approval by the director of the department of administration. A financial plan may not be approved by the director if:

(1) the level of funding provided under the financial plan deviates substantially from the funding level provided in [section 2] for that project; or

(2) the scope of the project is substantially altered or revised from the preliminary plans presented for that project in the 1998-99 long-range building program presented to the 55th legislature.

Section 6.  Legislative consent. (1) The appropriations authorized in [section 2] constitute legislative consent for the capital projects contained in [section 2] within the meaning of 18-2-102.

(2) The expenditure of $1,870,000 for the capitol renovation project authorized in [section 2] is contingent upon written permission to change legislative control of rooms and offices as provided for in 2-17-108. The written approval of the renovation plans must be filed with the secretary of state.

Section 7.  Requirements for approval of state debt. Because [section 3] authorizes the creation of a state debt, a vote of two-thirds of the members of each house is required for enactment of [section 3]. If [section 3] is not approved by the required vote, [this act] is void.

Section 8.  Section 12, Chapter 774, Laws of 1991, providing appropriations of bond proceeds to the department of administration for capital projects on page 2877, Laws of 1991, is amended to read:

"Construct Women's Correction Center 10,075,600


Section 9.  Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

Section 10.  Effective date. [This act] is effective on passage and approval.