MontanaHB 6169th Legislature, Regular Session (2025)HouseWALLET

Revise inter-entity loan process

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

Cleaner state accounting and reports

The state accounting office must keep clear records showing cash and investments for each fund and account. It must prevent transfers or loans from making total costs or revenue look larger than they really are in reports.

Reports after repeat loans or deficits

If the same account gets a loan or an extension at two straight fiscal year-ends, a written electronic report is due by September 1. The report must explain why, show a solvency analysis, and give a repayment plan, with a copy sent to the legislature. If a university account ends two straight fiscal year-ends with a negative cash balance, a similar report and corrective plan are due by September 1.

Loans to cover delayed reimbursements

The department can approve longer-term loans to federal and state special revenue accounts when reimbursements are delayed. Loans should come from non-general funds if possible, may not exceed billed receivables, and must have terms set by the department or law. Some federal special revenue accounts may end the year with a negative cash balance. For federal or third‑party receivable loans, agencies must certify and then recertify monthly that they bill at the earliest allowed date. If they fail to recertify, the loan is canceled, money is returned, and transactions may be stopped.

Short, no-interest loans between state funds

The department can make temporary, interest-free loans between state accounts when a needed expense is due and a fund lacks cash. There must be reasonable evidence the income will repay the loan within one calendar year, and the loan is recorded. Most state accounts may not end the fiscal year with a negative cash balance. A short negative balance is allowed for up to seven working days. In unusual cases, one extension of up to one year can be granted, with a written plan sent to key legislative committees at the next session.

New rules for university fund loans

The commissioner of higher education can allow short-term loans between university funds when cash is short. When certain funds borrow from the current unrestricted subfund, they must pay interest equal to last year’s average return on the state short‑term investment pool. Each fund must use a single, dedicated accounting unit to give or receive these loans. University funds must keep a positive cash balance; an accidental negative can last up to seven working days. After that, transactions for that fund are blocked in the statewide system.

Sponsors & Cosponsors

Sponsor

Gary Parry
Republican • House

Cosponsors

Janet Ellis
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 265 • No: 33

House vote • 2/25/2025

Do Concur

Yes: 38 • No: 11

House vote • 2/24/2025

Do Concur

Yes: 36 • No: 13

House vote • 1/15/2025

Do Pass

Yes: 94 • No: 6

House vote • 1/14/2025