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Senate committee advances MFFA bond expansion bill aimed at spurring infrastructure projects
Summary
Senate Bill 104 would raise the cap for Montana Facility Finance Authority bond issuances to increase access to conduit bonding for nonprofit and private projects; MFFA and sponsor said the change would be self‑sustaining and add modest general-fund revenue from state fees on issuances.
Senate Bill 104, sponsored by Senator Veil Lamers, would raise the bond-issuance cap for the Montana Facility Finance Authority (MFFA) and is projected to increase MFFA application fee revenue by roughly $927,500 over the next two biennia and add modest general-fund revenue through the state's basis‑point charge on new issuances.
Adam Gill, executive director of the MFFA, explained conduit bonding: the authority acts as a facilitator between private borrowers and lenders so borrowers can access tax-exempt or other bond markets. Gill said projects financed through conduit bonds are debts of the borrower, not obligations of the state, and highlighted past projects including hospitals and workforce-housing facilities.
Committee members asked which types of borrowers and projects would now be able to use conduit bonding; Gill said the bill would open access beyond the MFFA's historical health-care focus to include nonprofits, manufacturing, housing, and other eligible infrastructure projects.
Outcome: The committee voted to pass SB104 out of Finance and Claims.
