House Bill No. 398
Introduced By r. johnson
A Bill for an Act entitled: "An Act generally revising the laws governing the lease with option to purchase for state
providing timing for legislative approval; providing for a request for proposals process; exempting
lease-purchase provisions from state construction contract requirements; revising the appointment of architects for building
lease projects; eliminating certain requirements concerning leases for buildings; removing the statutory provisions
governing rent; approving the lease with option to purchase for specific buildings; CONTINGENTLY AUTHORIZING
THE ISSUANCE OF GENERAL OBLIGATION LONG-RANGE BUILDING PROGRAM BONDS; creating a state debt;
amending sections 18-3-101, 18-3-105, 53-1-203, and 53-30-505, MCA; repealing sections 18-3-102, 18-3-103, 18-3-104,
and 18-3-107, MCA; and providing an immediate effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 18-3-101, MCA, is amended to read:
"18-3-101. Authority to lease with option to purchase.
(1) When authorized by a vote of two-thirds of the members of
each house of the legislature, the The WHEN AUTHORIZED BY A VOTE OF TWO-THIRDS OF THE MEMBERS OF
EACH HOUSE OF THE LEGISLATURE, THE department of administration shall have the authority, as part of the
long-range building program, to may, AS PART OF THE LONG-RANGE BUILDING PROGRAM, enter into a rental
lease contract which that provides an option to purchase a building to be used by the state or any department of state
government. The purchase option terms of the contract are valid only after authorization by a vote of two-thirds of the
members of each house of the legislature. (2) For projects with an appraised building value of less than $2 million, the department shall seek legislative approval for
a purchase option in the next regularly scheduled legislative session. (3) For projects with an appraised building value of $2 million or more, the department shall seek legislative approval
before contracting for a purchase option."
Section 2. Section 18-3-105, MCA, is amended to read:
"18-3-105. Location of building.
The A building authorized pursuant to 18-3-101 shall must be located as determined by
the terms of the call request for bids proposals. If any such a contract entered into pursuant to this chapter requires the sale
or lease of any interest in state lands, the contract must have prior approval of the board of land commissioners."
NEW SECTION. Section 3. Requests for proposals. (1) The department, with the cooperation of the departments that will occupy the rental property, shall develop a request for proposals defining the state's program and building specification requirements. A request for proposals must be administered in accordance with 18-4-304(3) through (7).
(2) For projects valued at less than $2 million, the departments may develop the request for proposals. For projects valued at $2 million or more, the departments shall contract with a licensed architect or engineer selected in accordance with 18-2-112 for the development of the request for proposals.
(3) A successful proposer, general contractor, or subcontractor engaged in construction under this part shall pay the standard prevailing rate of wages to employees engaged in the construction of the leased property.
NEW SECTION. Section 4. Exemption from construction contract requirements. Except as provided in [section 3], a contract provided for in this chapter is not subject to the provisions of Title 18, chapter 2.
Section 5. Section 53-1-203, MCA, is amended to read:
"53-1-203. Powers and duties of department of corrections. (1) The department of corrections shall:
(a) adopt rules necessary to carry out the purposes of 41-5-527 through 41-5-529 and rules for the admission, custody, transfer, and release of persons in department programs except as otherwise provided by law. However, rules adopted by the department may not amend or alter the statutory powers and duties of the state board of pardons and parole.
(b) subject to the functions of the department of administration, lease or purchase lands for use by institutions and classify those lands to determine those that may be most profitably used for agricultural purposes, taking into consideration the needs of all institutions for the food products that can be grown or produced on the lands and the relative value of agricultural programs in the treatment or rehabilitation of the persons confined in the institutions;
(c) contract with private, nonprofit Montana corporations to establish and maintain community-based prerelease centers for purposes of preparing inmates of the Montana state prison who are approaching parole eligibility or discharge for release into the community. The centers shall provide a less restrictive environment than the prison while maintaining adequate security. The centers must be operated in coordination with other department correctional programs, including the supervised release program provided for in Title 46, chapter 23, part 4. This subsection does not affect the department's authority to operate and maintain community-based prerelease centers.
(d) utilize the staff and services of other state agencies and units of the Montana university system, within their respective statutory functions, to carry out its functions under this title;
(e) propose programs to the legislature to meet the projected long-range needs of institutions, including programs and facilities for the diagnosis, treatment, care, and aftercare of persons placed in institutions;
(f) encourage the establishment of programs at the local and institutional level for the rehabilitation and education of adult felony offenders;
(g) administer all state and federal funds allocated to the department for youth in need of supervision and delinquent youth, as defined in 41-5-103;
(h) collect and disseminate information relating to youth in need of supervision and delinquent youth;
(i) maintain adequate data on placements that it funds in order to keep the legislature properly informed of the specific information, by category, related to youth in need of supervision and delinquent youth in out-of-home care facilities;
(j) provide funding for and place youth who are alleged or adjudicated to be delinquent or in need of supervision and who are referred or committed to the department;
(k) administer youth correctional facilities;
(l) provide supervision, care, and control of youth released from a state youth correctional facility; and
(m) use to maximum efficiency the resources of state government in a coordinated effort to:
(i) provide for children in need of temporary protection or correctional services; and
(ii) coordinate and apply the principles of modern institutional administration to the institutions in the department.
(2) The department and a private, nonprofit Montana corporation may not enter into a contract under subsection (1)(c) for a
period that exceeds 10 years. The provisions of
18-3-104 and 18-4-313 that limit the term of a contract do not apply to a
contract authorized by subsection (1)(c).
(3) The department of corrections may enter into contracts with nonprofit corporations or associations or private organizations to provide substitute care for youth in need of supervision and delinquent youth in youth care facilities."
Section 6. Section 53-30-505, MCA, is amended to read:
"53-30-505. Contract time limit. A contract entered into under 53-30-504 may not exceed a term of 30 years and must
contain provisions for renegotiation after 30 years. The provisions of
18-3-104 and 18-4-313 that limit the term of a
contract do not apply to a contract authorized by 53-30-504."
NEW SECTION. Section 7. Approval of
certain projects PROJECT PROJECTS -- BONDS. The passage of
[sections 1 through 4 and 8] constitutes legislative approval for the following facilities: THE FOLLOWING FACILITIES: (1)(1) a 16,064 square foot building for the office of public instruction, located at 1227 eleventh avenue, Helena, Montana.
Three-fourths of the cost of this facility is intended to be recovered from the operating budget of the agency occupying the
facility. One-fourth of the cost will be due as a lump-sum payment if the purchase option is exercised at the end of the
leasing period. IF THE LEASE CONTRACT PROVIDES FOR A PURCHASE OPTION, THE BOARD OF
EXAMINERS MAY ISSUE $900,000 OF GENERAL OBLIGATION LONG-RANGE BUILDING PROGRAM BONDS
FOR PURPOSES OF FUNDING THE SECOND FLOOR ADDITION TO THE BUILDING. (2) a building of approximately 14,500 square feet for the department of justice, located at sixth avenue and south 27th
street in Billings, Montana. Costs are intended to be recovered through the operating budget of the agencies occupying the
leased space with a lump-sum payment if the purchase option is exercised. (3) a building of approximately 200,000 square feet, including a new public health lab, for the department of public health
and human services in Helena, Montana. Costs are intended to be recovered through the operating budget of the general
services division of the department of administration.
(2) A BUILDING OF APPROXIMATELY 14,500 SQUARE FEET FOR THE DEPARTMENT OF JUSTICE, LOCATED AT SIXTH AVENUE AND SOUTH 27TH STREET IN BILLINGS, MONTANA. COSTS ARE INTENDED TO BE RECOVERED THROUGH THE OPERATING BUDGET OF THE AGENCIES OCCUPYING THE LEASED SPACE WITH A LUMP-SUM PAYMENT IF THE PURCHASE OPTION IS EXERCISED.
NEW SECTION. Section 8. Repealer. Sections 18-3-102, 18-3-103, 18-3-104, and 18-3-107, MCA, are repealed.
NEW SECTION. Section 9. Codification instruction. [Sections 3 and 4] are intended to be codified as an integral part of Title 18, chapter 3, part 1, and the provisions of Title 18, chapter 3, part 1, apply to [sections 3 and 4].
NEW SECTION. Section 10. Two-thirds vote required. Because [section 7] authorizes the creation of state debt, Article VIII, section 8, of the Montana constitution requires a vote of two-thirds of the members of each house of the legislature for passage.
NEW SECTION. Section 11. Effective date. [This act] is effective on passage and approval.