_____________ bill NO. _____________

INTRODUCED BY _________________________________________________

By Request of the ****

 

A BILL FOR AN ACT ENTITLED: "AN ACT CREATING THE STATE-LOCAL INFRASTRUCTURE PARTNERSHIP ACT OF 2023; providing for grants to eligible entities for infrastructure projects; setting up a grant process; requiring a percentage of matching funds; providing for oversight; ADDRESSING cost overruns and MISAPPROPRIATION of funds; setting grant limits; PROVIDING AN APPROPRIATION; providing for allocations to counties; and PROVIDING AN IMMEDIATE EFFECTIVE DATE."

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

NEW SECTION. Section 1. Short title. [This act] may be cited as "The State-Local Infrastructure Partnership Act of 2023".

 

NEW SECTION. Section 2. Purpose. The purpose of this act is to use a portion of the state's general fund surplus to fund the maintenance and repair of local government infrastructure facilities on a partnership basis with local government supplying a cash match.

 

NEW SECTION. Section 3. Appropriation. For the biennium beginning July 1, 2023, there is appropriated $265 million from the general fund to the department of commerce to distribute funds as allocated in [section 12] to counties for each county commission to grant project funds for eligible projects.

 

NEW SECTION. Section 4. Calculation for allocation of funds. Each county will receive an allocation of funds based on the following:

(1)        the county's 2020 population;

(2)        the ability of the county's local population to pay for services as measured by per capita income; and

(3)        the county's ability to raise tax revenue locally as measured by per capita taxable valuation.

 

NEW SECTION. Section 5. Eligible use of funds -- eligible entities. (1) Funds allocated in [section 12] may be used only by eligible entities to maintain or repair existing local government infrastructure, including potable water systems, sewer systems, fire suppression systems if independent of the potable water systems, streets, roads, bridges, landfills, street lights, and public grounds and buildings.

(2)        Entities eligible for grants under [this act] include incorporated cities and towns, counties, school districts, and special districts.

 

NEW SECTION. Section 6. Grant process -- commission and department of commerce review -- priority. (1) The county commission shall solicit and accept applications from eligible entities within the county on or before July 1, 2023.

(2)        Once all the applications have been received, the county commission shall hold a public hearing and, based on the information contained within the application and the information received at the public hearing, prepare a recommendation for funding in priority order and transmit the recommendation to the department of commerce.

(3)        The department of commerce shall review the recommendations of the county commission and the content of the recommended application and determine whether the application complies with [this act]. If the application does not comply, the department shall issue notice to the applicable county commission.

(4)        The department may not substitute its judgment for that of the county commission and cannot revise the recommended priority list.

(5)        Priority is given to projects that maintain or repair publicly owned potable water systems, publicly owned sewer systems, and municipal fire suppression systems that are independent of a water system.

 

NEW SECTION. Section 7. Grant application -- contents -- matching funds requirement. Each application for grant funds must contain the following information:

(1)        the name of the applicant entity and its address, telephone number, e-mail address, and legal status, such as whether it is an incorporated city or what type of special district it is;

(2)        the name, address, telephone number, e-mail address, and title of the individual person who will be directly responsible for the management of the project or projects to be funded by the application, such as a public works director or a consulting engineer, and a copy of the individual's resume attesting to the individual's qualifications and ability to manage the project;

(3)        a narrative description of the prospective project, including a description of the problems to be addressed and the need to undertake the repairs. The applicant shall also submit a list of tasks to be undertaken to address the problem. A map or google earth photo showing the project is also required. Photographs documenting the nature of the problems are advisable but not required.

(4)        a project cost estimate showing the total cost of the project, prepared by a licensed professional engineer or qualified contractor. The cost estimated must be itemized by the list of task elements as required in subsection (3).

(5)        a time schedule showing each step in the repair process starting with the preparation of the bid documents through completion of the work. Specific calendar dates are recommended.

(6)        a statement that the information contained in the application is true, which must be signed by an authorized representative of the applicant; and

(7)        a statement identifying a cash match equal to no less than 25% of the total project cost, which may not include in-kind contributions of goods or in-kind services.

 

NEW SECTION. Section 8. Project management, cost overruns, and supplemental appropriations. The grant applicant entity is fully responsible for managing the project and ensuring that it is completed on-time and within budget. If cost overruns occur, the cost of the overrun is the full and sole responsibility of the applicant. No supplemental appropriation may be authorized by the state.

 

NEW SECTION. Section 9. Misappropriation or diversion of funds. In the event the grantee misappropriates or diverts any portion of the state grant or local government match to another use, the applicant will repay the state the misappropriated or diverted funds within 12 months of the date of notice from the state and pay a fine equal to 20% of the amount misappropriated or diverted to the state's general fund.

 

NEW SECTION. Section 10. Grant limits. (1) Except for city-county consolidated governments and counties receiving an allocation of less than $1 million, no single applicant can receive more than one-third of the county's total allocation from the state.

(2)        City-county consolidated governments are limited to two-thirds of the total county allocation.

(3)        Counties whose allocation is less than $1 million are not subject to any restriction regarding how much an individual applicant may receive.

 

NEW SECTION. Section 11. Project reports and completion notices. The applicant shall provide a progress report to the department of commerce on a quarterly basis identifying the work that has been undertaken on the project, the work completed, and the amount of funds expended to date. At the completion of the project, the final report must include a statement attesting to the completion of the project, which must be signed by the project manager.

 

NEW SECTION. Section 12. County allocations. The following amounts are allocated to counties as follows:

County                                                                         Allocation

Beaverhead                                                                  $2,314,332

Big Horn                                                                       $4,081,455

Blaine                                                                           $2,135,880

Broadwater                                                                   $1,945,896

Carbon                                                                         $2,082,624

Carter                                                                           $257,040

Cascade                                                                       $22,310,904

Chouteau                                                                      $1,396,176

Custer                                                                          $3,241,152

Daniels                                                                         $308,538

Dawson                                                                        $2,164,644

Deer Lodge                                                                   $2,764,935

Fallon                                                                           $534,059

Fergus                                                                         $2,892,632

Flathead                                                                       $25,269,782

Gallatin                                                                         $23,929,035

Garfield                                                                        $280,160

Glacier                                                                          $4,163,070

Golden Valley                                                               $147,087

Granite                                                                         $792,528

Hill                                                                               $4,174,182

Jefferson                                                                      $3,030,210

Judith Basin                                                                  $348,166

Lake                                                                             $9,193,471

Lewis and Clark                                                            $18,200,196

Liberty                                                                          $412,552

Lincoln                                                                         $6,311,438

Madison                                                                       $1,480,222

McCone                                                                        $407,166

Meagher                                                                       $459,576

Mineral                                                                         $1,380,240

Missoula                                                                       $28,926,986

Musselshell                                                                  $1,243,584

Park                                                                             $3,669,330

Petroleum                                                                     $141,683

Phillips                                                                         $1,043,808

Pondera                                                                        $1,330,668

Powell                                                                          $1,882,731

Powder River                                                                $396,566

Prairie                                                                          $195,289

Ravalli                                                                          $12,408,930

Richland                                                                       $1,963,242

Roosevelt                                                                     $2,975,775

Rosebud                                                                       $1,669,482

Sanders                                                                        $3,524,848

Sheridan                                                                       $673,657

Silver Bow                                                                    $9,313,093

Stillwater                                                                      $1,600,788

Sweetgrass                                                                  $688,755

Teton                                                                           $1,429,332

Toole                                                                            $942,068

Treasure                                                                      $125,952

Valley                                                                           $1,582,770

Wheatland                                                                    $481,806

Wibaux                                                                         $193,338

Yellowstone                                                                  $38,610,726

 

NEW SECTION. Section 13. Effective date. [This act] is effective on passage and approval.