Title 17, Title 17

(1) The board of investments may require the payment of quarterly annual interest on daily balances of collected funds at a rate to be agreed upon between the depository banks, building and loan associations, savings and loan associations, credit unions, and the board of investme…

(1) The state treasurer is designated the treasurer of every state agency and institution. (2) All state agencies shall deposit all money, credits, evidences of indebtedness, and securities either: (a) in banks, building and loan associations, savings and loan associations, or cr…

(1) The unified investment program directed by Article VIII, section 13, of the Montana constitution to be provided for public funds must be administered by the board of investments in accordance with the prudent expert principle, which requires an investment manager to: (a) disc…

(1) For each treasury fund account into which state funds are segregated by the department of administration pursuant to 17-2-106, individual transactions and totals of all investments shall be separately recorded to the extent directed by the department. (2) However, the securit…

Separate investment funds must be maintained as follows: (1) the permanent funds, including all public school funds and funds of the Montana university system and other state institutions of learning referred to in Article X, sections 2 and 10, of the Montana constitution. The pr…

(1) The governing body of any city, county, school district, or other local government unit or political subdivision that has funds that are available for investment and are not required by law or by any covenant or agreement with bondholders or others to be segregated and invest…

(1) The governing body of any city, county, school district, or other local government unit or political subdivision may participate in the various investment pools or other investments offered by the board of investments not otherwise prohibited by law. (2) A local government ma…

The board of investments may purchase from approved lenders contracts for deed or mortgages for cabin sites on state trust land for the trust and legacy fund.

(1) The board of investments shall endeavor to direct its portion of the state's investment business to those investment firms and/or financial institutions which maintain offices in the state and thereby make contributions to the state economy. Further, due consideration shall b…

(1) The state reserves a preference right, prior to the right of any person, company, or corporation, to purchase state general fund warrants issued with funds under the control of the board of investments and subject to investment. (2) When the board of investments has under its…

(1) The board of investments shall permit any school district, town, city, or county to pay and redeem one or more of its bonds held by the state for the credit of any fund under the investment administration of the board of investments at any time before maturity. (2) In calcula…

(1) There is an account in the state special revenue fund established by 17-2-102 known as the debt and liability free account. (2) The purpose of the debt and liability free account is as follows: (a) to pay the principal, interest, premiums, and any costs or fees associated wit…

(1) Securities may be placed in safekeeping with banks subject to national supervision or Montana state examination, and a safekeeping receipt may be accepted in lieu of the actual securities. (2) Custody and control of repurchase agreements and mortgages shall be accomplished by…

(1) The board of investments may loan funds to the petroleum tank release compensation board to cover temporary cash shortfalls. The total of all loans may not exceed the greater of $15 million or 80% of the fees that the office of budget and program planning projects will be col…

(1) As soon as practical after the end of each calendar year, the board of investments shall publish a report on each retirement system trust fund invested by the board. The report may be part of an annual report required pursuant to Article VIII, section 13, of the Montana const…

For the purposes of 17-6-232, 17-6-233, and this section: (1) (a) "Material" means a risk or return regarding which there is a substantial likelihood that a reasonable investor would attach importance when: (i) evaluating the potential financial return and financial risks of an e…

(1) The evaluation by the board of investments or the evaluation or exercise of any right appurtenant to an investment must take into account only pecuniary factors. (2) Environmental, social, governance, or other similarly oriented considerations are pecuniary factors only if th…

(1) All shares held directly or indirectly by or on behalf of the board must be voted solely in the pecuniary interest of the beneficiaries of the funds. (2) Voting to further nonpecuniary, environmental, social, governance, or other similarly oriented considerations is prohibite…

The attorney general may bring an action in the appropriate Montana district court to prevent or restrain violations of 17-6-231 through 17-6-233.

This part may be cited as the "Montana In-State Investment Act of 1983".

As used in this part, unless the context requires otherwise, the following definitions apply: (1) "Board" means the board of investments created in 2-15-1808. (2) "Clean and healthful environment" means an environment that is relatively free from pollution that threatens human he…

The people of Montana establish that the intent of the permanent coal tax trust fund, as created by Article IX, section 5, of the Montana constitution, is: (1) to compensate future generations for the loss of a valuable and depletable resource and to meet any economic, social, an…

Objectives for investment of the permanent coal tax trust fund are to diversify, strengthen, and stabilize the Montana economy and to increase Montana employment and business opportunities while maintaining and improving a clean and healthful environment.

(1) Subject to the provisions of 17-6-201(1), the board shall endeavor to invest 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 pursua…

(1) Except as provided in subsections (2) through (7) of this section 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 …

(1) Subject to the provisions of subsection (2), in deciding which of several investments of equal or comparable security and return are to be made when sufficient funds are not available to fund all possible investments, the board shall give preference to the business investment…

(1) Except as provided in subsection (2) and this subsection, an investment may not be made that will result in any one business enterprise or person receiving a benefit from or incurring a debt to the permanent coal tax trust fund the total current accumulated amount of which ex…

(1) Subject to 17-6-311, state participation in any loan to a business enterprise, except for a loan made pursuant to 17-6-317 or guaranteed by a federal agency, must be limited to 80% of the outstanding loan. The state shall participate in the security for a loan in the same pro…

The board may authorize the commitment of funds to financial institutions pursuant to rules adopted by the board, but the determination as to credit with respect to individual investments must be made by the financial institution and the board.

Except as provided in 17-6-317, in calculating the rate of return for any Montana investment to be made from the permanent coal tax trust fund, the board shall consider the long-term benefit to the Montana economy and the additional service fee discount provided for in 17-6-319.

(1) A loan made pursuant to 17-6-309(2) must be used to build infrastructure authorized under 7-15-4288(4) that allows the location or creation of a business in Montana. The loan must be made to a local government or an Indian tribal government that will create the necessary infr…

(1) (a) The board may jointly participate with private financial institutions in making loans to a business enterprise if the loan will: (i) result in the creation of a business estimated to employ at least 10 people in Montana on a permanent, full-time basis; (ii) result in the …

(1) A borrower who uses the proceeds of a business loan participation funded under the provisions of this part to create jobs employing Montana residents is entitled to a job credit interest rate reduction for each job created to employ a Montana resident. A borrower who uses the…

A financial institution that originates a small business loan no larger than 0.05% of the balance of the Montana permanent coal tax trust fund at the end of the last-completed fiscal year is entitled to an additional service fee in the form of a discount equal to 0.5% of the boar…

(1) If an owner of a coal-fired generating unit receives a loan in accordance with this part, the owner shall provide the board of investments and the governor of Montana with a minimum of 90 days' notice prior to filing for bankruptcy, reorganization, or other insolvency proceed…

The board's books and records related to in-state investments must be audited once each fiscal year by or at the direction of the legislative auditor. The actual cost of this audit must be paid from the board's funds.

The board shall include in its annual report a section on the results of the previous year's operations of the investment in the Montana economy from the permanent coal tax trust fund, as required in 17-6-305, including: (1) financial statements audited by independent auditors; (…

(1) The board may adopt rules to implement the provisions of this part and 17-6-211(2). Rules adopted by the board may include: (a) definitions of small- and medium-sized businesses; (b) a method of committing funds to financial institutions, including guidelines for lead private…

Any contract to construct a project financed pursuant to this part must require all contractors to give preference to the employment of bona fide Montana residents, as defined in 18-2-401, in the performance of the work on the projects if their qualifications are substantially eq…

A Montana economic development fund is created. A portion of the interest income from the permanent coal tax trust fund created in 17-6-203(6) shall be deposited in the fund as determined by the legislature. Monies, if any, appropriated by the legislature from the economic develo…

(1) The board may set aside an amount, not to exceed $10 million, from the in-state investment percentage provided for in 17-6-305 for the purpose of creating an intermediary relending program. (2) Intermediary loans may be made to board-approved local economic development organi…

(1) The interest rate on an intermediary loan made pursuant to 17-6-345 may not exceed 2% a year for a period of 30 years. (2) For the first 3 years, repayment on the intermediary loan is of the interest only, and for the remainder of the term of the intermediary loan, the repaym…

The board may purchase a portion of a seasoned or mature loan from a local economic development organization's revolving loan program.

This part may be cited as the "Microbusiness Development Act".

(1) The legislature finds and declares that: (a) it is the policy of the state to foster and encourage economic development within the state in order to promote the general welfare of the people; (b) no program exists by which the state encourages and assists in the creation, dev…

As used in this part, the following definitions apply: (1) "Certified microbusiness development corporation" means a microbusiness development corporation certified pursuant to 17-6-408. (2) "Department" means the department of commerce provided for in 2-15-1801. (3) "Development…