HOUSE BILL NO. 650
INTRODUCED BY D. MOOD, TAYLOR
AN ACT PROVIDING FOR A CENTRALIZED FINANCIAL ASSISTANCE CENTER WITHIN THE DEPARTMENT OF COMMERCE; ESTABLISHING DUTIES RELATED TO INFORMATION EXCHANGE AND COORDINATION; REQUIRING THE DEPARTMENT OF COMMERCE TO REVIEW THE DEVELOPMENT AND ACTIVITIES OF THE FINANCIAL ASSISTANCE CENTER AND REPORT TO THE 58TH LEGISLATURE WITH RECOMMENDATIONS FOR EXPANDING OR MODIFYING THE PROGRAM; ELIMINATING CERTAIN UNFUNDED OR UNUSED LOAN AND GRANT PROGRAMS; AMENDING SECTIONS 17-6-305, 17-6-308, 20-25-1006, AND 90-6-305, MCA; REPEALING SECTIONS 17-6-501, 17-6-502, 17-6-503, 17-6-504, 17-6-505, 17-6-509, 17-6-510, 17-6-511, 17-6-512, 60-11-1101, 60-11-1102, 60-11-1103, 60-11-1104, 60-11-1105, 60-11-1106, 60-11-1107, 60-11-1108, 60-11-1109, 60-11-1110, 60-11-1111, 60-11-1112, 60-11-1113, 60-11-1201, 60-11-1202, 60-11-1203, 60-11-1204, 60-11-1205, 60-11-1206, 60-11-1207, 60-11-1208, 60-11-1209, 60-11-1210, 60-11-1211, 60-11-1212, 60-11-1213, AND 90-6-306, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Short title. [Sections 1 through 7] may be cited as the "Economic Development Financial Assistance Act".
Section 2. Purposes. The purposes of [sections 1 through 7] are to:
(1) provide a convenient, accessible, and comprehensive clearinghouse for information about available financial assistance offered by the state, including but not limited to loans, grants, and tax credits;
(2) provide financial assistance for the purpose of establishing financing for economic development activities; and
(3) streamline loan applications and maintain a central clearinghouse of information to ensure an effective and timely response to the needs of individuals, the business community, and governmental entities seeking state financial assistance.
Section 3. Definitions. As used in [sections 1 through 7] the following definitions apply:
(1) "Center" means the financial assistance center provided for in [section 4].
(2) "Financial assistance" means loans, grants, and tax credits or incentive programs offered by the state to facilitate economic development activities and infrastructure development, repair, or replacement.
Section 4. Financial assistance center -- department responsibilities. (1) There is a financial assistance center within the department of commerce.
(2) The center shall:
(a) compile and include a comprehensive list of all state financial assistance programs, including but not limited to:
(i) eligible recipients;
(ii) conditions required for an award of a loan or grant;
(iii) limits on the amount of funds available;
(iv) application information; and
(v) lending or granting cycles;
(b) maintain and provide information related to nonstate loan and grant programs by cooperating and coordinating with federal loan and grant programs, commercial lenders, and nonprofit economic development lending organizations; and
(c) provide regular opportunities for financial institutions, loan and grant applicants, local economic development organizations, business enterprises, and other federal, state, and local governmental entities to review the center and provide advice and recommendations regarding the expansion or modification of the center.
(3) The department shall:
(a) develop an internet website specifically designed to assist loan and grant applicants in gathering information. The website must, at a minimum, contain the following features:
(i) a prominently placed world wide web link representing the financial assistance programs that allows for multiple methods for website navigation;
(ii) a comprehensive list of the types of loans and grants available from the state, outlined by agency, subject, area, or speciality; and
(iii) an agency-specific loan and grant list with appropriate links to personnel responsible for administering the program;
(b) cooperate with the office of the secretary of state to ensure that rules governing electronic transactions, digital signatures, and digital notary can be applied to electronic loan and grant applications;
(c) provide direct and individual service to interested applicants to ensure that:
(i) adequate information regarding eligibility requirements for financial assistance is received and understood;
(ii) contacts and appointments are made with the various state agencies administering financial assistance programs;
(iii) technical and professional assistance is provided to facilitate the accurate and timely completion of business feasibility plans and financial assistance applications; and
(iv) periodic updates are provided to applicants regarding the status of financial assistance applications and new or emerging financial assistance opportunities;
(d) develop a marketing plan to provide information about the center to individuals, commercial financial institutions, local economic development organizations, business enterprises, and local governments;
(e) coordinate with the department of revenue to provide:
(i) information related to applicable business licensing and registration requirements; and
(ii) relevant information related to tax credits and tax incentive programs for economic development activities;
(f) collect and maintain a supply of loan and grant application forms and information for all state loan and grants and actively assist interested applicants in answering application questions;
(g) collect and maintain a master list of state loan opportunities by type of loan, eligibility requirements, lending cycles, and availability; and
(h) review rules, application forms and processes, and lending cycles of loan and grant programs administered by other state agencies and make recommendations to those agencies related to the development of uniform loan and grant requirements.
(4) The department may gather and disseminate information related to nonstate loan sources and perform other administrative tasks delegated to the department to improve state lending processes and loan and grant program administration.
Section 5. Cooperation between state agencies and department -- dissemination of information. (1) State agencies administering financial assistance programs shall cooperate with the department of commerce in providing information for the center.
(2) The department shall include all of the information received from other agencies in the center.
Section 6. Information coordination. (1) The department shall encourage and invite the federal government, local governments, other political subdivisions, local economic development corporations, and private financial institutions to make lending information available to the department of commerce.
(2) The department may, when practical, provide persons with information from other lenders when requested.
Section 7. Rulemaking. The department of commerce may adopt rules to:
(1) provide for uniform loan and grant applications, when appropriate;
(2) coordinate the announcement and marketing of available financial assistance programs that are administered by other state agencies;
(3) provide for the specific requirements necessary to develop useful and logical navigation pathways and cross-references for a financial assistance program internet website and a standard form of internet links and access, consistent with the financial assistance program website, for individual agency websites that administer financial assistance programs; and
(4) develop processes and procedures necessary to effectively implement the provisions of [sections 1 through 7].
Section 8. Section 17-6-305, MCA, is amended to read:
"17-6-305. Investment of up to twenty-five percent of coal tax trust fund in Montana economy -- report by
board. (1) Subject to the provisions of 17-6-201(1), the board shall endeavor to invest up to 25% of the permanent coal tax
trust fund established in 17-6-203(6) in the Montana economy, with special emphasis on investments in new or expanding
locally owned enterprises. Investments made pursuant to this section do not include investments made pursuant to
17-6-309(2). For purposes of calculating the 25% of the permanent coal tax trust fund, the board shall include all funds
listed in 17-5-703(1). The portion of the permanent coal tax trust fund contained in portfolios formerly administered by the
Montana board of science and technology development and administered by the department pursuant to part 5 of this
chapter is included in the 25% of the trust fund allocated to the board for in-state investment under this section.
(2) In determining the probable income to be derived from investment of this revenue, the long-term benefit to the Montana economy must be considered.
(3) The legislature may provide additional procedures to implement this section.
(4) The board shall include a report on the investments made under this section as a part of the information required by 17-7-111."
Section 9. Section 17-6-308, MCA, is amended to read:
"17-6-308. Authorized investments. (1) Except as provided in subsections (2) through (4) 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 manage the seed capital and research and development loan portfolios created by the former
Montana board of science and technology development. The board shall establish an appropriate repayment schedule for all
outstanding research and development loans made to the university system. The board is the successor in interest to all
agreements, contracts, loans, notes, or other instruments entered into by the Montana board of science and technology
development as part of the seed capital and research and development loan portfolios, except agreements, contracts, loans,
notes, or other instruments funded with coal tax permanent trust funds. The board shall administer the agreements,
contracts, loans, notes, or other instruments funded with coal tax permanent trust funds. Until the department makes a loan
pursuant to the provisions of part 5 of this chapter, the $915,000 in funds under its administration must be invested by the
board pursuant to the provisions of 17-6-201. As loans made pursuant to part 5 of this chapter by the former Montana board
of science and technology development are repaid, the board shall deposit the proceeds or loans made from the coal
severance tax trust fund in the coal severance tax permanent fund until all investments are paid back with 7% interest.
(4) The board shall allow the Montana health facility authority to administer $15 million of the permanent coal tax trust fund for capital projects. Until the authority makes a loan pursuant to the provisions of Title 90, chapter 7, the funds under its administration must be invested by the board pursuant to the provisions of 17-6-201. As loans for capital projects made pursuant to this subsection are repaid, the principal and interest payments on the loans must be deposited in the coal severance tax permanent fund until all principal and interest have been repaid. The board and the authority shall calculate the amount of the interest charge. Individual loan amounts may not exceed 10% of the amount administered under this subsection.
(5) 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.
(6) All repayments of proceeds pursuant to subsection (3) of investments made from the coal severance tax trust fund must be deposited in the coal severance tax permanent fund."
Section 10. Section 20-25-1006, MCA, is amended to read:
"20-25-1006. Motorcycle safety training course -- tuition. (1) The board of regents may prescribe tuition rates for the motorcycle safety training courses. The tuition collected must be deposited in the state motorcycle safety account, as provided in 20-25-1002.
(2) The board of regents may delegate authority to a unit of the university system to conduct motorcycle safety training courses and to approve instructors of motorcycle safety training.
(3) State agencies and subdivisions of the state may provide facilities, such as classrooms and outdoor paved areas or other resources, for conducting motorcycle safety training courses.
(4) Subject to the availability of funds, the board of regents may pay for construction, repair, or purchases or award
grants from the state motorcycle safety account to provide facilities for motorcycle safety training courses."
Section 11. Section 90-6-305, MCA, is amended to read:
"90-6-305. Hard-rock mining impact board -- general powers. (1) The board may:
(a) retain professional staff, including its administrative staff, and retain consultants and advisors advisers,
notwithstanding the provisions of 2-15-121;
(b) adopt rules governing its proceedings, determinations, and administration of this part;
(c) award grants to local government units subject to 90-6-306;
(d) make payments to local government units from money paid to the hard-rock mining impact account as provided in
90-6-307;
(e)(d) make determinations as provided in 90-6-307, 90-6-311, and 90-6-403(3); and
(f)(e) accept grants and other funds to be used in carrying out this part.
(2) The provisions of the Montana Administrative Procedure Act apply to the proceedings and determinations of the board."
Section 12. Repealer. Sections 17-6-501, 17-6-502, 17-6-503, 17-6-504, 17-6-505, 17-6-509, 17-6-510, 17-6-511, 17-6-512, 60-11-1101, 60-11-1102, 60-11-1103, 60-11-1104, 60-11-1105, 60-11-1106, 60-11-1107, 60-11-1108, 60-11-1109, 60-11-1110, 60-11-1111, 60-11-1112, 60-11-1113, 60-11-1201, 60-11-1202, 60-11-1203, 60-11-1204, 60-11-1205, 60-11-1206, 60-11-1207, 60-11-1208, 60-11-1209, 60-11-1210, 60-11-1211, 60-11-1212, 60-11-1213, and 90-6-306, MCA, are repealed.
Section 13. Department of commerce program review. The department of commerce shall review the activities of the financial assistance center and all financial assistance programs administered by the state and develop recommendations for the 58th legislature identifying options for consolidation of financial assistance programs into a single agency.
Section 14. Codification instruction. [Sections 1 through 7] are intended to be codified as an integral part of Title 90, chapter 1, part 1, and the provisions of Title 90, chapter 1, part 1, apply to [sections 1 through 7].
Section 15. Effective date. [This act] is effective July 1, 2001.
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