_________ Bill No. _______
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act extending the authority of the Montana board of science and technology development to administer coal tax trust funds for seed capital project loans or mezzanine financing loans; amending section
17-6-308, MCA; and providing an immediate effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 17-6-308, MCA, is amended to read:
"17-6-308. Authorized investments. (1) Except as provided in subsections (2) and (3) and subject to the provisions of 17-6-201, the Montana permanent coal tax trust fund must be invested as authorized by rules adopted by the board.
(2) The board may make loans from the permanent coal tax trust fund to the capital reserve account created pursuant to 17-5-1515 to establish balances or restore deficiencies in the account. The board may agree in connection with the issuance of bonds or notes secured by the account or fund to make the loans. Loans must be on terms and conditions determined by the board and must be repaid from revenue realized from the exercise of the board's powers under 17-5-1501 through 17-5-1518 and 17-5-1521 through 17-5-1529, subject to the prior pledge of the revenue to the bonds and notes.
(3) The board shall allow the Montana board of science and technology development, provided for in 2-15-1818, to
administer $12.5 million of the permanent coal tax trust fund for seed capital project loans or mezzanine financing loans
and $11.1 million of the permanent coal tax trust fund for research and development project matching funds for projects at
Montana public universities. This authority does not extend beyond June 30,
1997 1999, for seed capital project loans or
mezzanine financing loans and beyond June 30, 1997, for research and development projects. Until the Montana board of
science and technology development makes a loan pursuant to the provisions of Title 90, chapter 3, the funds under its
administration must be invested by the board pursuant to the provisions of 17-6-201. As seed capital and mezzanine
financing loans made pursuant to this subsection are repaid, the Montana board of science and technology development
may reinvest the principal in new loans.
(4) The board shall adopt rules to allow a nonprofit corporation to apply for economic assistance. The rules must recognize that different criteria may be needed for nonprofit corporations than for for-profit corporations."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.