BEFORE THE DEPARTMENT OF COMMERCE

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 8.99.301, 8.99.302, 8.99.303, and 8.99.305 pertaining to the Certified Regional Development Corporations Program

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On June 21, 2010, at 1:30 p.m., the Department of Commerce will hold a public hearing in Room 228 of the Park Avenue Building, 301 South Park Avenue, Helena, Montana, to consider the proposed amendment of the above-stated rules.

 

2.  The Department of Commerce 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 Commerce no later than 5:00 p.m. on June 10, 2010, to advise us of the nature of the accommodation that you need.  Please contact Fran Viereck, Business Resources Division, Department of Commerce, 301 South Park Avenue, P.O. Box 200505, Helena, Montana 59620-0505; telephone (406) 841-2736; fax (406) 841-2731; TDD (406) 841-2702; or e-mail fviereck@mt.gov.

 

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

 

8.99.301  DEFINITIONS  (1) and (1)(a) remain the same.

            (b)  "Assistance grant" means funds awarded by the department to a CRDC for administering economic development programs activities directly related to submitted work plans consistent with strategic plans adopted by a CRDC approved by the department;

            (c) and (d) remain the same.

                (e)  "Certification" means the criteria and process by which an organization obtains certification for a period not to exceed seven five years, annually maintains certification as a CRDC with annual renewals up to a five year period, and becomes eligible to participate in the Certified Regional Development Corporations Program and to receive an assistance grant;.  Continued recertification is conditional on department approval;

            (f) remains the same.

            (g)  "Community" means a county, an incorporated city or town, a Census Designated Place (CDP), or an Indian reservation;

            (h) and (i) remain the same.

            (j)  "Local and regional planning" means a long-range planning process that encourages citizens to develop a mission statement, goals, strategies, and actions used to prioritize the efforts of citizens and communities and guide the development of the economy of a region or a portion of a region;

            (k)  "Program" means the Certified Regional Development Corporations Program provided for in 90-1-116, MCA;

            (l)  "Region" means one of not more than 12 service regions.  At a minimum, a service region must include two contiguous counties in their entirety;  

            (m) remains the same.

            (n)  "Technical assistance" means business-related assistance in a one-to-one setting that includes business plan composition, formation, financing, management, and operation of a small business.

 

AUTH:  90-1-116, MCA

IMP:  90-1-116, MCA

 

            8.99.302  CERTIFICATION OF REGIONAL DEVELOPMENT CORPORATIONS  (1)  The following information shall be presented to the department by applicants that seek certification as a CRDC:

            (a)  an outline of the region the applicant is proposing to represent that includes a description of the communities, economy, demographics, and culture;

            (b) remains the same.

            (c)  a staffing plan that includes current job titles, job descriptions, and qualifications of primary personnel.  At a minimum, the applicant is required to provide 4,160 hours of staff time annually to economic development activities.  If the applicant does not currently have the capacity to provide 4,160, which must include at least 2,080 hours of staff time annually to professional economic development activities, staff time.  Tthe applicant shall include a hiring plan or a contracting plan to meet in meeting this requirement. 

            (i)  for the purpose of this rule, economic development activities means work in the development and management of revolving loan funds, business technical assistance, state and federal grants and programs, local and regional planning, business retention and expansion programs, and business recruitment programs all directly related to regional strategic plans;

            (ii)  the department may review, approve, and/or veto hiring decisions for professional economic development staff;

            (d)  documentation of the composition of board(s) of directors;

            (d) remains the same but is renumbered (e).

            (e) (f)  evidence of matching funds, including those from local governments, in the ratio of $1 for every $1 of assistance grants requested that satisfy the following requirements:

            (i) through (iii) remain the same.

            (f) (g)  a plan based upon a comprehensive economic development strategic plan model for encouraging and organizing full participation in regional economic development activities, meetings, and projects in the region; 

            (g) (h)  evidence of written, broad-based community support from the region, at the time of certification, that includes written support from all county governments, a majority of all incorporated cities and towns, and a significant level of support from economic development organizations in the region.  Where applicable, evidence of support from tribal governments, and tribal economic development organizations is strongly encouraged.  In addition, county governments cannot provide multiple letters of support for the same geographic area;

            (h) remains the same but is renumbered (i).

            (i) (j)  a plan for delivery of, and evidence of the ability to administer, a revolving loan fund.  To meet a minimum application threshold, the applicant shall include pertinent experience in the management of a revolving loan fund;

            (j) (k) a plan for delivery of, and evidence of the ability to provide, business technical assistance.  To meet a minimum application threshold, the applicant shall include pertinent experience in providing business technical assistance;

            (k) (l)  a plan for delivery of, and evidence of the ability to apply for, facilitate, and manage, state and federal grants and programs.  To meet a minimum application threshold, the applicant shall include pertinent experience in the application and management of state and federal grants and programs grant and loan programs, in particular, department loan and grant programs;

            (l) (m)  a plan for delivery of, and evidence of the ability to perform, local and regional planning.  To meet a minimum application threshold, the applicant shall include pertinent experience in local and regional planning;

            (m) (n)  a plan for performance of a business retention and expansion program (optional);

            (n) (o)  a plan for performance of a business recruitment program (optional); and

            (o) remains the same but is renumbered (p).

            (2)  The procedures for certifying a CRDC are as follows:

            (a)  the department shall issue a formal request for proposal from any for interested individuals or organizations to respond to;

            (b)  the department's staff shall review timely submitted proposals and determine whether to recommend certification of the CRDC.  The proposal and staff's recommendation regarding certification shall be forwarded to the department director for a final decision on certification;

            (c)  the department will annually review the CRDC performance on a quarterly  basis for compliance with continued program requirements for certification; and

(d) remains the same.

 

AUTH:  90-1-116, MCA

IMP:  90-1-116, MCA

 

            8.99.303  ASSISTANCE GRANTS – DISTRIBUTION  (1)  The department shall distribute set aside assistance grants annually as follows based upon the following:

            (a)  $25,000 $30,000 to each CRDC for providing services to their respective regions based upon receipt of an acceptable work plan.  For the purpose of this rule, services means work in the development and management of revolving loan funds, business technical assistance, state and federal grants and programs, local and regional planning, business retention and expansion programs, and business recruitment programs;

            (b)  $60,000 to $65,000 divided among the CRDCs according to the following formula:

            (i) through (iii) remain the same.

            (iv)  15% shall be distributed based on the number of incorporated cities or towns in the region communities served;

            (c)  all remaining assistance grants will be distributed on a quarterly basis, in at the department's sole discretion, based upon the performance of the CRDC in meeting submitted work plans for the current year, to CRDCs for demonstrated capacity building needs. 

 

AUTH:  90-1-116, MCA

IMP:  90-1-116, MCA

 

            8.99.305  CRDC – CERTIFICATION REPORTING REQUIREMENTS

            (1) through (1)(b) remain the same.

            (c)  a description of any changes in the services provided by the CRDC to the citizens, communities, and businesses in the region;

            (d)  an action plan consistent with the strategic plan that identifies goals, actions, and priorities for the coming year; in the areas of:

            (i)  revolving loan fund activity and management;

            (ii)  business technical assistance;

            (iii)  the application for and award of department grant and loan programs and other state and federal grant and loan programs;

            (iv)  local and regional planning;

            (v)  business retention and expansion programs, if any; and

            (vi)  business recruitment programs, if any;

            (e)  an annual report that includes statements concerning the accomplishments or shortfalls of goals and actions identified in the previous year's action plan; a report showing the work accomplished by the CRDC for the preceding year in the areas of:

            (i)  revolving loan fund activity and management;

            (ii)  business technical assistance;

            (iii)  the application for and award of department grant and loan programs and other state and federal grant and loan programs;

            (iv)  local and regional planning;

            (v)  business retention and expansion programs, if any; and

            (vi)  business recruitment programs, if any;

            (f)  contact information for each certified treasure community in the region;

            (g) (f)  a copy of the CRDC's most recent annual, audited or professionally reviewed financial statements including any supplemental schedules or other detailed information that specifically discloses the financial condition and results of operations of the CRDC; and

            (h) remains the same but is renumbered (g).

            (2)  Quarterly reporting requirements for CRDC certification include:

            (a)  a progress report showing accomplishments in meeting annual work plan objectives in the following areas:

            (i)  revolving loan fund activity and management;

            (ii)  business technical assistance;

            (iii)  the application for and award of department grant and loan programs and other state and federal grants and programs;

            (iv)  local and regional planning;

            (v)  business retention and expansion programs, if any; and

            (vi)  business recruitment programs, if any;

            (b)  any other requirements deemed necessary by the department to maintain certification.

           

AUTH:  90-1-116, MCA

IMP:  90-1-116, MCA

 

REASON:  It is reasonably necessary to amend the rules for certified regional development corporations because existing seven year program contracts expire on December 31, 2010.  Amended rules are also needed to once again create a fair and equitable process that is open and transparent for future certification of regional development corporations and the assistance grants associated with certification.  In addition, amended rules are reasonably necessary to improve accountability, financial controls, measures, and professional economic development leadership for each certified regional development corporation.

 

            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: Fran Viereck, Department of Commerce, Business Resources Division, 301 South Park Avenue, P.O. Box 200505, Helena, Montana 59620-0505; telephone (406) 841-2736; fax (406) 841-2731; or e-mail fviereck@mt.gov, and must be received no later than 5:00 p.m., June 28, 2010.

 

5.  Ty Jones, Legal Counsel, Department of Commerce, has been designated to preside over and conduct this hearing.

 

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, 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 Department of Commerce, 301 South Park Avenue, P.O. Box 200505, Helena, Montana 59620-0505, by fax to (406) 841-2731, by e-mail to lgregg@mt.gov, or may be made by completing a request form at any rules hearing held by the department.

 

7.  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 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 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.

 

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

 

 

 

/s/  G. MARTIN TUTTLE                               /s/  ANTHONY J. PREITE                

G. MARTIN TUTTLE                                     ANTHONY J. PREITE

Rule Reviewer                                               Director

                                                                        Department of Commerce

           

Certified to the Secretary of State May 17, 2010.