Unofficial Draft Copy
**** As of: 11/14/2024, 12:53:46
69th Legislature 2025 Drafter: Julie Johnson, **** LC 0257
1 **** BILL NO. ****
2 INTRODUCED BY ****
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING THE APPROVAL PROCESS FOR LONG-RANGE
5 CAPITAL DEVELOPMENTS; REQUIRING THE DEPARTMENT OF ADMINISTRATION TO SOLICIT BIDS IN
6 ADVANCE OF LEGISLATIVE APPROVAL; REQUIRING WINNING CONTRACTOR TO ENTER INTO
7 CONTRACT LIMITING PAYMENT TO BID AMOUNT UNLESS PARTIES AGREE TO OTHERWISE AND
8 LEGISLATURE APPROVES; DISALLOWING PAYMENT FOR COST OVERRUNS EXCEEDING 2% OR
9 MORE OF ORIGINAL BID; AMENDING SECTION 17-7-204, MCA; AND PROVIDING AN APPLICABILITY
10 DATE.”
11
12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
13
14 NEW SECTION. Section 1. Submission of bids by contractors for long-range building capital
15 developments. (1) Prior to the submission of the executive budget for all state agencies to the legislature, the
16 architecture and engineering division of the department of administration shall solicit bids by contractors for
17 each capital development recommended in the executive budget and enter into a preliminary contract with the
18 contractor.
19 (2) The contractor and the division must enter into a contract contingent on the approval of the
20 capital development by the legislature. The contract must provide that the contractor may not be paid an
21 amount that exceeds the amount of the bid.
22
23 Section 2. Section 17-7-204, MCA, is amended to read:
24 "17-7-204. Long-range building program for capital developments. (1) The executive budget for
25 all state agencies must include detailed recommendations for the state long-range building program for capital
26 developments presented in order of importance by fund type.
27 (2) Each recommendation must be presented by agency or branch by funding source, with a
28 description of each proposed capital development, an explanation of the problem to be addressed by the
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 Unofficial Draft Copy
**** As of: 11/14/2024, 12:53:46
69th Legislature 2025 Drafter: Julie Johnson, **** LC 0257
1 proposed project, alternative methods of addressing the problem, the rationale for the selection of a particular
2 alternative, and a projection of increased operating costs incident to the project for the next three bienniums.
3 (3) Each recommendation must include a bid by a contractor pursuant to [section 1] whose
4 acceptance is contingent on the approval of the legislature pursuant to [section 1(2)]. The contractor may not
5 receive payment that exceeds the amount identified in the bid unless mutually agreed on by the state and the
6 contractor. A cost overrun of 2% or more of the original bid will not be reimbursed unless approved by the
7 legislature."
8
9 NEW SECTION. Section 3. Codification instruction. [Section 1] is intended to be codified as an
10 integral part of Title 17, chapter 7, part 2, and the provisions of Title 17, chapter 7, part 2, apply to [section 1].
11
12 NEW SECTION. Section 4. Applicability. [This act] applies to capital developments proposed to the
13 70th Legislature and subsequent legislatures.
14 - END -
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