Administrative Rules of the State of Montana

BEFORE THE DEPARTMENT OF TRANSPORTATION

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 18.13.404, 18.13.405, and 18.13.407 pertaining to Board of Aeronautics grant and loan program

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NOTICE OF PROPOSED AMENDMENT

NO PUBLIC HEARING CONTEMPLATED

TO: All Concerned Persons

1. On September 20, 2014, the Department of Transportation proposes to amend the above-stated rules.

2. The Department of Transportation 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 Department of Transportation no later than 5:00 p.m. on Sept. 11, 2014, to advise us of the nature of the accommodation that you need. Please contact Tim Conway, Department of Transportation, Aeronautics Division, P.O. Box 200507, Helena, Montana, 59620-0507; telephone (406) 444-9547; fax (406) 444-2519; TDD/Montana Relay Service (406) 444-7696 or (800) 335-7592; or e-mail [email protected].

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

18.13.404 GENERAL TERMS AND CONDITIONS (1) All grant or loan monies awarded under this program must be utilized specifically for aviation or aeronautically related projects. The proposed projects ~~will~~ must be detailed in an application submitted by a public sponsor, on a form provided by the board. The applicant is responsible for retaining and providing documentation to ensure all monies received under the program are spent as applied for within the application.

(2) Applicants may submit one application only for each eligible public sponsor. A single sponsor may apply for funding for multiple aeronautically related projects or for multiple separate categories of work within a project by listing separate line items for which a grant or loan is sought. Retroactive projects which have been completed before the date of application are also eligible for grants or loans. Separate projects or categories of work on each application shall be evaluated, reviewed, and selected for award individually, according to the board's priority process under ARM 18.13.406.

(3) Changes by the applicant to application information may be made at any time up to and including the date of the board's annual grant and loan review meeting, if the changes meet all original application requirements. Changes may include, but are not limited to: cost estimates, change in sponsor priorities of separate line-item categories of work, and other changes as allowed by the board. New projects or new categories of work which did not appear on the original application will not be considered by the board. Applications may be withdrawn by an applicant at any time.

(2) through (5) remain the same, but are renumbered (4) through (7).

~~(6)~~(8) Grant and loan recipients must follow the board's close-out procedure under ARM 18.13.407 at the conclusion of the eligible project or category of work approved by the board. A recipient of a grant or loan must retain all records of transactions and disbursements of grant or loan monies for a period of three years after completion of the project for which the grant or loan was awarded. By accepting a grant or loan, a recipient agrees that upon reasonable notice, the state of Montana may audit the records supporting the acquisition and disbursement of the grant or loan monies.

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, 67-1-306, 67-1-307, MCA

REASON: The proposed rule amendment is necessary because the Board of Aeronautics and the Aeronautics Division will begin utilizing an electronic application procedure with the 2016 grant and loan applications. The new application will require a single airport applicant's separate projects or categories of work within a project, to be listed on one application, rather than multiple applications as have been accepted in the past. The board will continue to make awards based on priorities of projects or categories of work as listed on the new applications. The proposed rule amendment will also clarify that new or additional information, not included on the original application, may be accepted by the board prior to its annual grant and loan award meeting, and during presentations at the board meeting. The proposed amendment will also clarify the requirement that new projects, not listed on the original applications, will not be accepted at the annual grant and loan award meeting. Finally, the proposed amendment will incorporate a cross-reference to the board's new close-out procedure, which procedure is proposed for inclusion in ARM 18.13.407.

18.13.405 APPLICATION PROCESS, FEES, AND DEADLINES (1) Official grant and loan applications will be sent to the manager of record of every eligible state airport no later than the last Friday in October. Grant or loan applicants shall submit applications to the Montana Aeronautics Division All eligible applicants must complete the application form found on the Department of Transportation's web site at www.mdt.mt.gov. Paper copies of the application may be obtained by contacting the Aeronautics Division at P.O. Box 200507, Helena, MT 59620-0507. Applications for the next following fiscal year grant and loan program will be accepted by the Aeronautics Division at any time after July 1st of each year. Completed applications and all supplemental materials must be submitted electronically, by first class mail, e-mail, or hand delivery to the Aeronautics Division to be received or postmarked no later than ~~the fourth Friday in~~ November 15 of the appropriate year. ~~These~~ The ~~deadlines~~ deadline may be subject to change by the Aeronautics Division after official notification of any change in the deadline that is posted on the Department of Transportation's web site and sent to the official manager of record of every eligible airport.

(2) Official grant and loan applications, any required supplemental information, or additional program guidelines and help may also be obtained by contacting the Montana Aeronautics Division. Applications and any required supplemental information must be submitted to the Montana Aeronautics Division, Airports/Airways Bureau, P.O. Box 200507, Helena, MT 59620-0507. Each application must be complete and accompanied by all required supplemental materials. The Aeronautics Division reserves the right to reject ineligible, incomplete, or otherwise improper applications. Applications submitted electronically via the Aeronautics Division's web site must be verified via electronic signature. ~~The division~~ The Aeronautics Division may request additional information if warranted after initial application review.

(3) and (4) remain the same.

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, 67-1-307, MCA

REASON: The proposed rule amendment is necessary because the Board of Aeronautics and the Aeronautics Division will begin utilizing an electronic application procedure with the 2016 grant and loan applications. The proposed amendments will set forth the new procedures for electronic applications, but will also allow for traditional paper copy application submission for applicants who may not have access to the electronic process.

18.13.407 TERMS AND CONDITIONS OF SUCCESSFUL APPLICANTS

(1) and (2) remain the same.

(3) ~~Successful applicants who have been offered a grant or loan must submit the following documentation,~~ The Aeronautics Division must be in receipt of the appropriate documents listed below, or any combination as requested by the board in its grant or loan application approval, prior to ~~receiving~~ disbursing payment for approved grants or loans. ~~Copies, examples, or official forms for the items below may be obtained from the Aeronautics Division.~~ The Aeronautics Division will accept copies of an appropriate federal aid agreement directly from the Federal Aviation Administration. Other listed documents must be received directly from the grant or loan recipient before payment will be made by the Aeronautics Division. The Aeronautics Division will make payment upon receipt of all necessary documents.

(4) through (8) remain the same.

(9) Grants and loans awarded by the board for a fiscal year, but not ~~requested by~~ disbursed to the applicant within that fiscal year, will revert ~~back~~ to the same special aeronautics grant or loan account in the state special revenue fund from which they were originally appropriated to be used for future grant or loan awards to any applicant.

(10) Each grant or loan recipient must submit a close-out report, on a form provided by the board, within 30 days after closure of the project or board-approved category of work, or within one year after fund disbursement, whichever occurs earliest. If the project is not completed within one year following fund disbursement, the grant or loan recipient must provide a status report detailing the reason the project has not been closed, and projected closure date upon which the close-out report will be filed.

(11) The close-out report must include information on amount requested, amount awarded by the board, and amount actually spent on board-approved project work. The grant or loan recipient must adequately account for expenditures in a manner acceptable to the board.

(12) The board may request reimbursement from the grant or loan recipient of awarded and disbursed funds not actually spent on board-approved project work.

(13) The board may pay any additional amount not previously disbursed, which may be due to the grant or loan recipient for board-approved work, up to the total amount awarded by the board. The board will not request reimbursement nor make additional disbursement for any amounts under $500.

(14) Any grant or loan recipient which fails to provide the close-out form, status report, or any requested reimbursement is not eligible for future grant or loan awards until the deficiency is remedied.

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, 67-1-307, MCA

REASON: The proposed rule amendment is necessary because the Board of Aeronautics and the Aeronautics Division received an audit recommendation the board should impose a follow-up process to verify if the awarded funds were spent as requested by the applicants and as approved and awarded by the board. The proposed rule amendments will impose a close-out process to allow the board to verify appropriate fund expenditure. The close-out process will also allow the board to request reimbursement of funds disbursed to an applicant, but not actually spent on an approved project expenditure, as when a project is completed for less money than originally estimated. The close-out process will also allow the board to make additional disbursements of awarded funds, up to the total amount awarded, in the event a lesser disbursement was originally made, but the close-out process reveals legitimate project expenditures occurred. Finally, the proposed amendments will impose a penalty for an airport's failure to follow the close-out procedure by deeming noncompliant airport sponsors as ineligible for future grant or loan awards until they are in full compliance with the board's close-out process.

4. Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Tim Conway, Department of Transportation, Aeronautics Division, P.O. Box 200507, Helena, Montana, 59620-0507; telephone (406) 444-9547; fax (406) 444-2519; or e-mail [email protected], and must be received no later than 5:00 p.m., September 18, 2014.

5. If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Tim Conway at the above address no later than 5:00 p.m., September 18, 2014.

6. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 12 persons based on the approximately 115 eligible airport applicants.

7. 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, e-mail, and mailing address of the person to receive notices 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 the contact person in 4 above or may be made by completing a request form at any rules hearing held by the department. An Administrative Rules Notice Interested Person's List Request Form is located at the Department of Transportation's web site at the following address: http://www.mdt.mt.gov/publications/docs/forms/mdt-leg-003_interested-persons-list.pdf.

8. An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this 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 Secretary of State 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.

9. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

10. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.

/s/ Carol Grell Morris /s/ Michael T. Tooley

Carol Grell Morris Michael T. Tooley

Rule Reviewer Director

Department of Transportation

Certified to the Secretary of State August 11, 2014.