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| Montana Administrative Register Notice 4-14-188 | No. 23 12/10/2009 | |
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BEFORE THE DEPARTMENT OF AGRICULTURE OF THE STATE OF MONTANA
TO: All Concerned Persons
1. On December 30, 2009, at 10:00 a.m. the Montana Department of Agriculture will hold a public hearing in Room 225 of the Scott Hart Building, 303 N. Roberts at Helena, Montana, to consider the proposed amendment, repeal, and adoption of the above-stated rules.
2. The Department of Agriculture will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process and need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Agriculture no later than 5:00 p.m. on December 24, 2009, to advise us of the nature of the accommodation that you need. Please contact Cort Jensen at the Montana Department of Agriculture, 303 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; phone: (406) 444-3144; fax: (406) 444-5409; or e-mail: [email protected].
3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:
4.16.102 PROCEDURAL RULES (1) The Council
REASON: Added the mailing address for clarification purposes.
4.16.103 CITIZEN PARTICIPATION RULES (1) The Council
REASON: Added the mailing address for clarification purposes.
4.16.201 DEFINITIONS (1) In addition to the definitions set forth in 90-9-103, MCA, the following definitions apply for purposes of these rules:
(2) "Matching Funds" means both cash or in-kind match. In-kind match is calculated at the actual market price of the services rendered but no more than 25 dollars an hour. All in-kind match(es) must be project specific as opposed to the normal operation of an ongoing business.
AUTH: 90-9-203, MCA IMP: 90-9-202, MCA
REASON: The definitions were not needed as they are already found in law. Matching funds definition was vague in the law and needed clarification into what was acceptable kinds and quantities of match.
4. The department proposes to repeal the following rules:
4.16.301 APPLICATION PROCEDURES FOR A SEED CAPITAL PROJECT LOAN - SUBMISSION AND USE OF EXECUTIVE SUMMARY
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.302 APPLICATION PROCEDURES FOR A SEED CAPITAL PROJECT LOAN - SUBMISSION OF BUSINESS PLAN
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.303 APPLICATION PROCEDURES FOR A SEED CAPITAL PROJECT LOAN - REVIEW PROCESS
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.304 APPLICATION PROCEDURES FOR A SEED CAPITAL PROJECT LOAN - COUNCIL ACTION
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-202, 90-9-203, 90-9-301, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.305 SEED CAPITAL PROJECT LOAN - POST-DISBURSEMENT ACTIVITIES
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-316, 90-9-317, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.401 APPLICATION PROCEDURES FOR A RESEARCH AND DEVELOPMENT PROJECT LOAN - SUBMISSION AND USE OF EXECUTIVE SUMMARY
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.402 APPLICATION PROCEDURES FOR A RESEARCH AND DEVELOPMENT PROJECT LOAN - SUBMISSION OF RESEARCH AND DEVELOPMENT PROPOSAL
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-203, 90-9-301, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.403 APPLICATION PROCEDURES FOR A RESEARCH AND DEVELOPMENT PROJECT LOAN - EVALUATION - DUE DILIGENCE
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.404 APPLICATION PROCEDURES FOR A RESEARCH AND DEVELOPMENT PROJECT LOAN - REVIEW PROCESS
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.405 APPLICATION FOR A RESEARCH AND DEVELOPMENT PROJECT LOAN - COUNCIL ACTION
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-202, 90-9-203, 90-9-301, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.406 RESEARCH AND DEVELOPMENT PROJECT LOANS - MONITORING REPORTS
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-314, 90-9-315, 90-9-316, 90-9-318, 90-9-203, MCA
REASON: We are creating one unified process to streamline the process for the public.
4.16.501 FAILURE TO COMMERCIALIZE OR PRODUCE IN MONTANA - ALL LOAN PROGRAMS
AUTH: 90-9-203, MCA IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-314, 90-9-315, 90-9-316, 90-9-317, 90-9-318, 90-9-202, 90-9-203, MCA
REASON: This rule no longer makes sense and the law never seemed to adequately support it.
4.16.502 RIGHTS TO INTELLECTUAL PROPERTY-CONFIDENTIALITY - ALL LOAN PROGRAMS
IMP: 90-9-311, 90-9-312, 90-9-313, 90-9-314, 90-9-315, 90-9-316, 90-9-317, 90-9-318, 90-9-202, 90-9-203, MCA
REASON: This rule does not match the state case law or policy on confidentiality and therefore must be repealed.
5. The proposed new rules provide as follows:
NEW RULE I APPLICATION FOR GRANTS AND LOANS (1) In order to apply for a grant or loan, an applicant must: (a) Complete the application form. If seeking a grant, complete the grant eligibility portion of the application. (b) Provide a credit report for all parties seeking the loan or grant. If a credit report is not available, an exception to this requirement must be sought. (c) Provide a current cash flow statement and projected cash flow statements for the business for the next three years at a minimum. Any assumptions used to create this cash flow statement must be included. (d) Provide a current and projected balance sheet for the business. Any assumptions used to create this balance sheet statement must be included. (e) Have on file with the Secretary of State all paperwork (if any) required to do business in Montana under the name seeking the grant or loan. (2) Applicants are encouraged to have a professional business plan.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: This new rule creates a unified application process. It provides the minimum amount of information that the council needs to make decisions on grants and loans.
NEW RULE II TARGETED AREAS (1) The Council can declare up to two kinds or areas of projects to be targeted areas. These areas must be reviewed at least annually and announced at least 60 days before they become effective.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: The law allows for additional criteria for a lower-rate loan at the Council's discretion. This allows a formal way for the Council to encourage specific types of projects or development in certain areas of the state. It allows all people applying for a grant or loan to know the Council's particular interests for the coming year.
NEW RULE III HIGH INTEREST RATE (1) The high interest rate will be reviewed and set by the Council at least annually.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: The law requires the Council to set interest rates.
NEW RULE IV LOW INTEREST RATE (1) The low interest rate will be reviewed and set by the Council at least annually.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: The law requires the Council to set interest rates.
NEW RULE V LOW INTEREST ELIGIBILITY (1) The Council may allow the low interest rate for projects that fall within a targeted area.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: The law allows the Council to set up criteria to qualify for a lower interest rate. The Council desires to give the potential applicants a way of knowing where they see areas in need of development.
NEW RULE VI RECONSIDERATION OF APPLICATIONS (1) The Council may meet to reconsider all projects that have not received funding or not received the maximum requested funding if funds permit within the last 120 days of the fiscal year.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: This allows the Council to make better decisions on projects that were on the edge of being funded at a time when it will have already heard all of the proposals for that year.
NEW RULE VII APPLICATION LIMIT (1) A rejected or partially funded proposal cannot come before the Council a second time within 12 months of its last presentation unless the Council votes to allow it to do so. The Department will screen applications to decide if a proposal is duplicative.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: Every proposal requires large amounts of time and resources to evaluate and present to the committee. Hearing the same proposal multiple times a year is wasteful of the Council's time and the Department's resources.
NEW RULE VIII REIMBURSEMENT (1) Only costs incurred within 12 months prior to the approval of the loan or grant can be reimbursed and only if specifically allowed by the Council.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: The law is unclear how far back in time the matching funds and/or the start of the project can occur. This rule makes clear the limit (1 year).
NEW RULE IX FUNDING FOR SALARIES OR OVERHEAD (1) In order to fund a project with salaries or overhead included in the expenses to be paid by the loan or grant, the Council must vote a majority plus one.
AUTH: 90-9-203, MCA IMP: 90-9-203, MCA
REASON: Salaries and basic overhead are a controversial area and this rule sets a higher threshold on the Council for distributing loans or grants to pay for it.
ECONOMIC IMPACT: None of the rules being added, amended, or repealed have any economic impact different than the laws they implement.
6. Concerned persons may submit their data, views, or arguments concerning the proposed actions either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to Cort Jensen at the Montana Department of Agriculture, 303 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; Fax: (406) 444-5409; or e-mail: [email protected]. Any comments must be received no later than 5:00 p.m. on January 7, 2009.
7. Cort Jensen, Department of Agriculture, has been designated to preside over and conduct this hearing.
8. The Department of Agriculture 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 which includes the name, e-mail, and mailing address of the person and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to Montana Department of Agriculture, 303 North Roberts, P.O. Box 200201, Helena, MT 59620-0201; Fax: (406) 444-5409; or e-mail: [email protected] or may be made by completing a request form at any rules hearing held by the Department of Agriculture.
9. An electronic copy of this Notice of Proposed Adoption is available through the department's web site at www.agr.mt.gov, under the Administrative Rules section. 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 strives 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.
10. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was notified on November 23, 2009 by U.S. mail, e-mail, and phone. For previous rule projects involving the same bill, the primary sponsor was given appropriate notice.
DEPARTMENT OF AGRICULTURE
/s/ Ron de Yong /s/ Cort Jensen Ron de Yong, Director Cort Jensen, Rule Reviewer
Certified to the Secretary of State, November 30 2009.
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A directory of state agencies is available online at http://www.mt.gov/govt/agencylisting.asp.
For questions about the organization of the ARM or this web site, contact [email protected].
