Administrative Rules of the State of Montana

BEFORE THE BOARD OF AERONAUTICS AND

THE DEPARTMENT OF TRANSPORTATION

OF THE STATE OF MONTANA

In the matter of the amendment of ARM 18.13.404 and 18.13.406 and the repeal of ARM 18.13.501, 18.13.502, 18.13.503, 18.13.504, and 18.13.505 pertaining to Board of Aeronautics Loan and Grant Program and Pavement Preservation Grants

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NOTICE OF PROPOSED AMENDMENT AND
REPEAL

NO PUBLIC HEARING CONTEMPLATED

TO: All Concerned Persons

1. On August 5, 2019, the Board of Aeronautics and the Department of Transportation propose to amend and repeal the above-stated rules.

2. The Department of Transportation will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Transportation no later than 5:00 p.m. on July 26, 2019, to advise us of the nature of the accommodation that you need. Please contact Tim Conway, Department of Transportation, Aeronautics Division, P.O. Box 200507, Helena, Montana, 59620-0507; telephone (406) 444-9547; fax (406) 444-2519; TTY Service (800) 335-7592 or through the Montana Relay Service at 711; or e-mail [email protected].

3. GENERAL STATEMENT OF REASONABLE NECESSITY The 2019 Legislature enacted Chapter 455, Laws of 2019 (House Bill 661), an act generally revising aeronautics funding laws. Among other changes, the bill allows a grant for the entire local match for a federally funded project and repeals 67-1-301(5), MCA, which previously provided for a percentage of aviation fuel tax collected from scheduled passenger air carriers to be deposited in a separate account to be used only for pavement preservation grants to airports served by those carriers. The bill is effective July 1, 2019.

The department and the board are amending ARM 18.13.404 and 18.13.406 and repealing ARM 18.13.501 through 18.13.505 to conform to the new legislative changes and implement the bill revising aeronautics funding laws. Where additional specific bases for a proposed action exist, the department and the board will identify those reasons immediately following that rule.

4. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:

18.13.404 GENERAL TERMS AND CONDITIONS (1) through (3) remain the same.

(4) Grants may be awarded for up to ~~50%~~ and including 100% of an applicant's share of total project cost ~~when that same project is also receiving any~~ regardless of assistance from federal sources.

~~(5) Grants may be awarded for up to 100% of an applicant's total project cost when that same project is not receiving any assistance from federal sources.~~

(6) through (8) remain the same but are renumbered (5) through (7).

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, 67-1-306, 67-1-307, [Chapter 455, Section 2, L. 2019], MCA

REASON: The proposed amendment is necessary to implement Chapter 455, L. 2019, Section 2 which states the board must allow a grant for an amount up to 100%, or the entire local match required for a project funded with federal funds.

18.13.406 EVALUATION, REVIEW, AND SELECTION (1) and (2) remain the same.

(3) ~~Priorities shall be given to applications as follows:~~

~~(a)~~ Projects which are specifically related to airports and airport development will be given highest priority when evaluating applications for aeronautically related projects.

(b) Projects located at primary commercial service airports will be given lower priority than other eligible airport projects when evaluating applications for aeronautically related projects due to primary commercial service airports' higher priority in receiving aeronautics pavement preservation monies granted under a separate administrative grant program outlined in ARM 18.13.503.

(4) remains the same.

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, 67-1-306, 67-1-307, [Chapter 455, Section 2, L. 2019], MCA

REASON: The proposed amendment is necessary to repeal the lower priority evaluations previously given by the board to primary commercial service airport loan or grant applications. The lower priority was based on the primary commercial service airports' ability to receive pavement preservation monies under a separate administrative grant program, which program has now been repealed by the 2019 Legislature through Ch. 455, L. 2019.

5. The department and the board propose to repeal the following rules:

18.13.501 POLICY AND PURPOSE OF PAVEMENT PRESERVATION GRANTS

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, MCA

18.13.502 ELIGIBILITY FOR PAVEMENT PRESERVATION GRANTS

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, MCA

18.13.503 AWARD OF PAVEMENT PRESERVATION GRANTS

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, MCA

18.13.504 TERMS AND CONDITIONS OF PAVEMENT PRESERVATION GRANT RECIPIENTS

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, MCA

18.13.505 RECONSIDERATION OF BOARD DECISIONS ON PAVEMENT PRESERVATION GRANTS

AUTH: 67-2-102, MCA

IMP: 67-1-301, 67-1-304, MCA

REASON: The proposed repeals are necessary because the 2019 Legislature in Ch. 455, L. 2019 repealed the pavement preservation grant program in its entirety.

6. Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Tim Conway, Department of Transportation, Aeronautics Division, P.O. Box 200507, Helena, Montana, 59620-0507; telephone (406) 444-9547; fax (406) 444-2519; or e-mail [email protected], and must be received no later than 5:00 p.m., August 2, 2019.

7. If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Tim Conway at the above address no later than 5:00 p.m., August 2, 2019.

8. If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register. Ten percent of those directly affected has been determined to be 12 persons based on the approximately 115 eligible airport applicants.

9. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

10. An electronic copy of this proposal notice is available on the Department of Transportation website at www.mdt.mt.gov.

11. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by U.S. mail on May 22, 2019.

12. With regard to the requirements of 2-4-111, MCA, the department and the board have determined that the amendment and repeal of the above-referenced rules will not significantly and directly impact small businesses.

13. With regard to the requirements of 2-15-142, MCA, the department and the board have determined that the amendment and repeal of the above-referenced rules will not have direct tribal implications.

/s/ Carol Grell Morris /s/ Michael T. Tooley

Carol Grell Morris Michael T. Tooley

Rule Reviewer Director

Department of Transportation

/s/ Tricia McKenna

Tricia McKenna

Chair

Board of Aeronautics

Certified to the Secretary of State June 25, 2019.