BEFORE THE DEPARTMENT OF ADMINISTRATION

OF THE STATE OF MONTANA

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TO: All Concerned Persons

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1. On October 15, 2007, at 10:00 a.m., the Department of Administration will hold a public hearing in Room 255 of the Mitchell Building, at 125 N. Roberts, Helena, Montana, to consider the proposed amendment of the above-stated rules.

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2. The Department of Administration will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Administration no later than 5:00 p.m. on October 5, 2007, to advise us of the nature of the accommodation that you need. Please contact Paul Christofferson, Department of Administration, 125 N. Roberts, Helena, Montana 59620-0102; telephone (406) 444-4609; fax (406) 444-2812; Montana Relay Service 711; or e-mail [email protected].

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3. The rules proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

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2.4.202 EXCEPTIONS TO MINIMUM REFUND RULE (1) remains the same.

(2) Vocational-technical centers may follow their local school boards' refund policies. Colleges of technology may follow the Board of Regents refund policies.

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AUTH: 17-8-201, 17-8-203, MCA

IMP: 17-8-203, MCA

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REASON: The Vocational Technical Colleges are now under the auspices of the Board of Regents and have been renamed Colleges of Technology.

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2.4.301 VOLUME CAP ALLOCATION (1) The Department of Administration sets the state of Montana's volume cap as follows:

(a) $187.5 million for calendar year 2001; and

(b) $225 million for calendar year 2002.

(2) In calendar year 2003 and thereafter, the volume cap allocation shall be increased by the increase in the consumer price index (CPI) over the CPI for calendar year 2001 the maximum amount allowed by the Internal Revenue Service.

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AUTH: 17-5-1311, MCA

IMP: 17-5-1311, MCA

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REASON: The Internal Revenue Service makes the allocation to the state of Montana based on population. The Internal Revenue Service allows the greater of $85 multiplied by the state population or a flat dollar amount they specify in an annual notice.

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4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Paul Christofferson, Department of Administration, 125 N. Roberts, Helena, Montana 59620-0102; telephone (406) 444-4609; fax (406) 444-2812; or e-mail [email protected], and must be received no later than 5:00 p.m., October 18, 2007.

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5. Paul Christofferson, Department of Administration, has been designated to preside over and conduct this hearing.

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6. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Such written request may be mailed or delivered to the contact person in paragraph 4 or may be made by completing a request form at any rules hearing held by the department.

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7. An electronic copy of this Proposal Notice is available through the department's web site at http://doa.mt.gov/AdministrativeRules.asp. The department strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the department works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

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8. The bill sponsor notice requirements of 2-4-302, MCA, do not apply.

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By: /s/ Janet R. Kelly�������������������������������������������������� By: /s/ Dal Smilie

����� Janet R. Kelly, Director���������������������������������������������� Dal Smilie, Rule Reviewer

������Department of Administration����������������������������������� Department of Administration

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Certified to the Secretary of State September 10, 2007.