Legislature asked to reauthorize bond‑validation provision to protect state and local issuers
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
House Bill 63 would extend the application of Montana's Bond Validating Act, a frequent, technical housekeeping bill that protects bond investors from challenges to issuance arising from clerical or technical errors. Department of Administration officials and bond counsel told the committee the extension is routine and required to
Representative Julie Darling presented House Bill 63 for the Department of Administration. The bill extends the Bond Validating Act, which the department and bond counsel said is a routine, technical measure used to protect investors and stabilize the municipal bond market against challenges that can arise from clerical or technical errors during issuance.
Department of Administration Director Misty Anne Giles and CFO Kristen Reynolds explained that the Board of Examiners authorizes state debt and that validations cannot be retrospective; a prospective validation by the legislature is required periodically. Courtney Ellis of the firm Dorsey & Whitney, bond counsel for state and local issuers, said the validation act is a common statutory tool nationwide to maintain a predictable market for state and local bonds.
No opponents or informational witnesses appeared in the hearing record and no committee vote is recorded in the transcript.
Next steps: HB 63 is a routine reauthorization bill commonly brought each session; if the committee advances it, it will go to the House floor for further consideration.