Representative Gary Perry presented House Bill 61 as an efficiency measure to reduce the volume of interentity loan accounting entries agencies currently process to avoid short‑term negative cash balances while waiting for federal reimbursements.

Department of Administration Director Misty Anne Giles said the current practice produces frequent loan requests — sometimes many per agency — which creates heavy paperwork for the treasury and agency accounting staff. Jennifer Thompson, state accountant, said in fiscal year 2024 there were more than 1,600 journal‑entry lines tied to the loan process and roughly 300 funds required loans at fiscal‑year end. She said HB 61 would significantly reduce that administrative burden while keeping the state compliant with generally accepted accounting principles.

Several large recipients of federal funds supported the bill. Montana Fish, Wildlife and Parks CFO Lena Havron said FWP had about 50 such loans last fiscal year and that the timing of federal drawdowns (for example, Friday drawdowns and Tuesday reimbursements) made the paperwork burdensome. The Department of Transportation and Military Affairs also testified in support, citing similar timing and closeout issues.

Committee members asked implementation questions, including whether the federal government would reimburse interest if federal agencies missed drawdown schedules (the Cash Management Improvement Act was cited) and about contingency planning in the event of a federal shutdown. Administration staff said agencies maintain cash monitoring processes and that the treasury could provide short‑term help in extraordinary circumstances.

The sponsor closed by urging the committee to pass the housekeeping bill to reduce paperwork and let agency staff focus on program work. No committee vote is recorded in the hearing transcript.

Next steps: HB 61 will proceed to executive action if the committee votes to advance it; Administration staff flagged the need for written controls and monthly reporting requirements in the bill language.