As reported in the April 18, 2005 issue of the SSTI Weekly Digest, Senate Bill 133 called for the creation of a $60 million Montana Equity Fund to attract out-of-state investment and increase in-state venture activity. A governor-appointed board was to contract with an outside investor group to capitalize and manage the Equity Fund and a subfund targeted toward investments in strategic industries. The $60 million would be issued in tax credits to investors to offset any shortfalls in scheduled returns on their investments.
The Fund, however, was not created right away. In the subsequent two years, concerns about the law's constitutionality and the availability of funding continually delayed its implementation.
Gov. Schweitzer finally announced the appointment of five Montana Capital Equity Investment Board members in October to move forward with the fund. When the Board met earlier this month, members decided to move forward with the program and dismissed the idea of filing a "test case" to verify the constitutionality of the law. Instead, the Attorney General, Mangan and other state officials gave testimony relating to the program.
Board members are now ready to move forward with the program and are currently investigating fund-of-fund programs in other states to find a suitable model.
The text of the Montana Equity Capital Investment Act is available at: http://data.opi.state.mt.us/bills/2005/billhtml/SB0133.htm
***
Copyright State Science & Technology Institute 2007. Redistribution to all others interested in tech-based economic development is strongly encouraged. Please cite the State Science & Technology Institute whenever portions are reproduced or redirected.