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(1) The organization and functions of the Department of Administration and its attached agencies are described in this rule.

(a) History. The department was originally established under the Office of the State Controller by Chapter 271, Session Laws of 1963, and was reestablished under the Executive Reorganization Act of 1971.

(b) Director. The director of the Department of Administration is appointed by the Governor and is responsible for managing the department and its divisions. The director is supported by a deputy director, and the offices of Legal Services, Human Resources, Finance and Budget, and Information Services.

(c) Divisions. The department consists of the following eight divisions:

(i) Architecture and Engineering Division;

(ii) Banking and Financial Institutions Division;

(iii) General Services Division;

(iv) Health Care and Benefits Division;

(v) Risk Management and Tort Defense Division;

(vi) State Accounting Division;

(vii) State Human Resources Division; and

(viii) State Information Technology Services Division.

(2) Functions of the Department Divisions.

(a) Architecture and Engineering Division. The Architecture and Engineering Division manages remodeling and construction of state buildings. Its functions include overseeing the architect/engineer interview and selection process; planning both new and remodel projects; administering and coordinating plan reviews; negotiating and administering contracts with architects and engineers; advertising, bidding, awarding, and administering construction contracts; disbursing building construction payments; providing design services for small projects; and formulating a long-range building plan for legislative consideration each session.

(b) Banking and Financial Institutions Division. The Banking and Financial Institutions Division is responsible for the supervision, regulation, and examination of state-chartered banks, trust companies, savings and loans, credit unions, consumer loan and sales finance companies, deferred deposit lenders, title loan companies, escrow companies, mortgage brokers and loan originators, and mortgage lenders. The purpose of the supervisory function of banks and credit unions is to investigate the methods of operation and determine whether these institutions are operating in a safe and sound manner. The nondepository financial institutions and licensees are examined for compliance with federal and state law. Supervision of financial institutions is accomplished through on-site examinations conducted by division examiners.

(c) General Services Division. The General Services Division is composed of three bureaus responsible for providing certain internal services to government agencies and the public.

The Facilities Management Bureau manages the following services for state agencies in the Capitol Complex and several state-owned buildings in the Helena area, either directly or through the administration of service contracts: repair, maintenance, construction, energy consumption, emergency response and recovery, space allocation, lease negotiation, security, janitorial, recycling, pest control, grounds maintenance, and garbage collection.

The State Procurement Bureau procures or supervises the procurement of all supplies and services needed by the state and provides technical assistance to government agencies and the public to ensure compliance with the Montana Procurement Act. In addition, the bureau manages the Central Stores and Surplus Property programs, the state's vehicle fueling system, energy procurement, and all procurement card functions.

The Print and Mail Services Bureau provides printing services to state agencies by operating a central facility for duplicating and binding, desktop publishing, layout and design, graphic illustration, and forms design. It operates two quick copy centers, administers the state photocopy pool, and approves the procurement of all printing and printing-related purchases for state agencies. Mail services for state agencies in the Helena area are provided through a centralized facility that manages incoming, outgoing, and interagency mail. In addition, the bureau operates a full-service contract U.S. Post Office in the State Capitol.

(d) Health Care and Benefits Division. The Health Care and Benefits Division provides competitive, comprehensive benefits that provide financial protection for state employees, retirees, legislators, and their families. Benefits include group health, medical, disability, vision, dental, life, long-term care, workers' compensation safety, and return-to-work protection. In addition, the division provides wellness programs, the state employee daycare, medical case management for high-cost medical care, and manages the sick leave fund for employees.

(e) Risk Management and Tort Defense Division. The Risk Management and Tort Defense Division provides legal assistance to state defendants through the use of staff counsel, agency legal services counsel, or contracted counsel; purchases and maintains a comprehensive insurance plan on behalf of state agencies; promotes the development of risk management principles and techniques through consultation with state participants; serves as a resource in resolving risk management and tort liability defense issues for the protection of state assets and resources; and seeks timely and cost-effective resolution of all property and casualty claims filed against the state.

The Risk Management Committee is composed of representatives from all state agencies. The committee is charged with assisting state agencies in managing their insurance, claims, and loss-prevention activities.

The Risk Management Network, composed of state and private representatives, provides feedback and recommendations to the Risk Management and Tort Defense Division on the implementation and management of the state's insurance, claims, and loss-prevention programs.

(f) State Accounting Division. The State Accounting Division is responsible for providing accounting and treasury services to all state agencies; accounting and audit review services to all local governments; and support for the financial and budgeting modules of the Statewide Accounting, Budgeting, and Human Resource System (SABHRS).

Accounting and treasury services provided include process owner of the financial modules of SABHRS; preparation and publication of the state's annual comprehensive financial report; development of the state's accounting policies and procedures; technical accounting assistance to agencies; production, processing, and printing state warrants; state vendor file maintenance; issuance of the 1099 miscellaneous forms; and maintaining accountability of all money and securities belonging to or held in trust by the state.

The local government services provided include technical accounting, budgeting, and financial reporting assistance; maintenance of the chart of accounts; training on statutory and financial reporting requirement changes; and administration of the Single Audit Act for local governments.

The SABHRS services include support and maintenance, system implementations, upgrades, contract negotiations, and management for the finance and budgeting modules within SABHRS. The State's Comprehensive Annual Financial Report, budget books, single audit reports, and agency financial schedules rely on the financial information housed in this system. The majority of state payments are processed through this system.

(g) State Human Resources Division. The State Human Resources Division provides state agencies with a variety of human resource management services including professional development, labor relations, salary administration, policy development, workforce planning, and payroll and benefit eligibility administration. The State Human Resources Division is the owner of the SABHRS human capital management modules.

(h) State Information Technology Services Division. The State Information Technology Services Division is composed of five executive groups and nine bureaus responsible for the delivery of information technology (IT) services and the planning, coordination, implementation, operation, and control of information resources throughout state government. Information services and resources include computing systems, telecommunication systems (including telephone systems, local area networks, wide area networks, high-speed voice, video and data backbone network infrastructure, and interactive video systems), desktop office products and systems, Internet systems and capabilities, management of the statewide emergency 9-1-1 system, coordination of continuity of operations, project management, and enterprise geographic information systems direction. The division provides oversight for IT planning and policy development throughout the state, and coordination of agency information technology budget requests with the Office of Budget and Program Planning.

The Information Technology Managers Advisory Council consists of IT managers representing state agencies in the executive, legislative, and judicial branches, the university system, and local government. The council reviews enterprise IT issues; provides feedback regarding information management policies; reviews opportunities for the application of new information processing technology; and participates in statewide IT planning efforts.

(3) Attached Boards, Commissions, and Councils. The following boards, commissions, and councils are allocated to the department for administrative purposes:

(a) Board of County Printing. The Board of County Printing consists of five members appointed by the Governor with the consent of the Montana Senate. The board's purpose is to adopt and publish a schedule of maximum prices to be charged for county legal advertising and to establish printing standards for county legal advertising. Additional rules regarding the board are set out in ARM Title 2, chapter 67.

(b) Board of Examiners. The Board of Examiners consists of the Governor, Secretary of State, and Attorney General. The board is authorized to prescribe the form and terms of the sale of bonds for the state and take whatever actions are lawful and necessary for their issuance and payment. Additional rules regarding the board are set out in chapter 53.

(c) Burial Preservation Board. The Burial Preservation Board consists of 13 members appointed by the Governor. The purpose of the board is to help protect from disturbance or destruction all human skeletal remains, burial sites, and burial material within the state of Montana. Additional rules regarding the board, including the board's organization, are set out in chapter 65.

(d) Information Technology Board. The Information Technology Board, established by 2-15-1021, MCA, consists of 19 appointed members that help guide state agencies, the legislative branch, the judicial branch, and local governments in the development and deployment of intergovernmental information technology resources. The board also advises the department on statewide information technology standards and policies, the state strategic information technology plan, major information technology budget requests, and rates and other charges for services established by the department.

(e) Public Employees' Retirement Board. The Public Employees' Retirement Board is composed of seven members appointed by the Governor. The board establishes policies that provide employees of the state and its political subdivisions with quality retirement, disability, and death benefits. The board also conducts hearings and adjudicates contested cases. Board-administered retirement systems cover traditional public employees, judges, and public safety officers, but generally exclude teachers. The Montana Public Employee Retirement Administration, an agency of state government, is responsible for the day-to-day administration of the retirement systems. The board's rules are found in chapter 43.

(f) State Banking Board. The State Banking Board consists of six members appointed by the Governor to advise the Department of Administration regarding banking in Montana. Additional rules regarding the board are set out in chapter 60.

(g) State Compensation Insurance Fund Board. The Board of Directors of State Compensation Insurance Fund consists of seven members appointed by the Governor to govern the State Fund, a workers' compensation insurer which is a nonprofit independent public corporation. The organization of the State Compensation Insurance Fund and additional rules are set out in chapter 55.

(h) State Tax Appeal Board. The State Tax Appeal Board is composed of three members appointed by the Governor for staggered six-year terms, with the advice and consent of the Montana Senate. The board hears appeals on the decisions of local county tax appeal boards concerning property tax assessments made by the state Department of Revenue and takes original jurisdiction on appeals arising from decisions of the Department of Revenue concerning income, corporate, natural resource, centrally assessed property, and new industry taxes; from decisions of the Department of Transportation concerning motor fuels taxes; and from decisions of the Department of Justice concerning the valuation of motor vehicles. The board also adopts rules governing the conduct of the county tax appeal boards. Additional rules regarding the board are set forth in chapter 51.

(i) Statewide Interoperability Governing Board. The Statewide Interoperability Governing Board, created by executive order, directs the operation of the statewide public safety radio system. The board's purpose is to ensure the future of interoperable communications in Montana as described in Montana's Homeland Security Strategic Plan and State Communications Interoperability Plan.

(j) Teachers' Retirement Board. The Teachers' Retirement Board is composed of six members appointed by the Governor. The board provides a comprehensive retirement plan for all members of the state Teachers' Retirement System. This includes offering the broadest and fairest possible range of disability, death, and retirement benefits to qualified members. The Teachers' Retirement Board maintains an office of state government entitled the "Teachers' Retirement System." Additional rules are set out in chapter 44.

(k) Public Defender Commission. The Public Defender Commission consists of 11 members appointed by the Governor and is charged with supervising and directing the Statewide Public Defender System. The Statewide Public Defender System's mandate is to provide effective assistance of counsel to indigent criminal defendants and other persons in civil cases who are entitled by law to assistance of counsel at public expense; to ensure that the system is free from undue political interference and conflicts of interest; and to provide that public defender services are delivered by qualified and competent counsel in a manner that is fair and consistent throughout the state. The organizational structure and additional rules regarding the Statewide Public Defender System are set forth in chapter 69.

(l) State Lottery Commission. The State Lottery Commission consists of five members appointed by the Governor to establish and operate a state lottery. The organizational structure and additional rules regarding the Montana Lottery are set out in chapter 63.

(m) 9-1-1 Advisory Council. The 9-1-1 Advisory Council provides representatives of 9-1-1 jurisdictions with the opportunity to participate in the development, implementation, and management of the state's 9-1-1 Program.

(n) Capitol Complex Advisory Council. The council, made up of nine individuals representing various state agencies, the Legislature, and the public, advises the Legislature on the placement of commemorative objects and art in public areas of the Capitol Complex and grounds, including the executive residence and the Original Governor's Mansion; and advises the Department of Administration on interior decoration of the Capitol, grounds maintenance, and grounds displays.

(o) Electronic Government Advisory Council. The Electronic Government Advisory Council advises the department on the creation, management, and administration of electronic government services and information on the Internet.

(p) State Employee Group Benefits Advisory Council. The State Employee Group Benefits Advisory Council is selected by the department from a diverse group that adequately represents state employees. The council, established by 2-15-1016, MCA, advises the department regarding state employee group benefit plans and the sick leave fund.

(4) Information or Submissions. General inquiries regarding the department may be addressed to the director. Specific inquiries regarding the functions of each division or attached agency may be addressed to the head of that division and/or agency. All requests for hearings, declaratory rulings, and for participation in rulemaking may be addressed to the director unless the notice in the Montana Administrative Register makes specific provisions for submissions.

(5) Personnel Roster. Addresses of the director, each division, and attached agencies are as follows:

Director, Department of Administration, Room 155, Mitchell Building, 125 North Roberts, P.O. Box 200101, Helena, MT 59620-0101.

Architecture and Engineering Division, 1520 East Sixth Avenue, P.O. Box 200103, Helena, MT 59620-0103.

Banking and Financial Institutions Division, 301 South Park, Suite 316, P.O. Box 200546, Helena, MT 59620-0546.

General Services Division, 1310 East Lockey, Old Livestock Building, P.O. Box 200110, Helena, MT 59620-0110.

Health Care and Benefits Division, 100 North Park Avenue, Suite 320, P.O. Box 200130, Helena, MT 59620-0130.

Risk Management and Tort Defense Division, 1625 Eleventh Avenue, Middle Floor, P.O. Box 200124, Helena, MT 59620-0124.

State Accounting Division, Room 255, Mitchell Building, 125 North Roberts, P.O. Box 200102, Helena, MT 59620-0102.

State Human Resources Division, Room 125, Mitchell Building, 125 North Roberts, P.O. Box 200127, Helena, MT 59620-0127.

State Information Technology Services Division, Room 229, Mitchell Building, 125 North Roberts, P.O. Box 200113, Helena, MT 59620-0113.

Montana Lottery, 2525 North Montana Avenue, Helena, MT 59601-0598.

Montana State Fund, 855 Front Street, Helena, MT 59601.

Office of the State Public Defender, 44 West Park Street, Butte, MT 59701.

Public Employee Retirement Administration, 100 North Park Avenue, Suite 200, P.O. Box 200131, Helena, MT 59620-0131.

State Tax Appeal Board, 1209 Eighth Avenue, P.O. Box 200138, Helena, MT 59620-0138.

Teachers' Retirement System, 1500 Sixth Avenue, P.O. Box 200139, Helena, MT 59620-0139.

(6) Charts of Agency Organization. Organizational charts of the Department of Administration are attached on the following pages and are incorporated into this rule.


Office of the Director
Architecture and Engineering Division

Banking and Financial Institutions Division

General Services Division
 Health Care and Benefits Division

Risk Management and Tort Defense Division


State Accounting Division



State Human Resources Division

State Information Technology Services Division


History: 2-4-201, MCA; IMP, 2-4-201, MCA; Eff. 12/31/72; AMD, Eff. 11/15/76; AMD, Eff. 8/7/79; AMD, Eff. 12/31/81; AMD, Eff. 9/30/88; AMD, Eff. 12/31/88; AMD, Eff. 9/30/90; AMD, Eff. 7/1/01; AMD, Eff. 11/1/01; AMD, Eff. 6/30/08; AMD, Eff. 6/30/09; AMD, Eff. 12/31/10; AMD, Eff. 5/1/13.

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