Bill > HB61

This bill revises Montana's inter-entity loan procedures, primarily focusing on modifications to how state agencies can manage cash balances and temporary loans between different accounting entities. The legislation introduces several key changes, including allowing federal special revenue funds to have a negative cash balance at fiscal year-end when the agency expects reimbursement from federal funds. The bill establishes new rules for loan approvals, including mandatory documentation and reporting requirements when loans are extended or when an accounting entity consistently experiences cash flow challenges. Specifically, it requires the department of administration or the commissioner of higher education to submit detailed reports to the legislative fiscal analyst if a loan is extended for two consecutive fiscal years or if an accounting entity maintains a negative cash balance. The bill also stipulates that loans between accounting entities must typically be repaid within one calendar year, with provisions for one possible one-year extension under unusual circumstances. Notably, the bill mandates that loans to certain funds must bear interest at a rate equivalent to the previous fiscal year's average return on the board of investments' short-term investment pool. The legislation aims to provide more flexibility in managing state funds while maintaining fiscal accountability and transparency, with an immediate effective date upon passage and approval.

Government Affairs

https://bills.legmt.gov/#/laws/bill/20251/LC0273