The Montana Capital Equity Investment Board met for the 1st time on Friday, December 7th, implementing Montana’s Fund to Fund Venture Capital attraction vehicle 1st discussed in 2002 and passed by the legislature in the spring of 2005. 

A number of venture capital and investment bills were before the Montana legislature in 2003.  While no single bill was successful, the effort was responsible for the subsequent study of the issue during the interim of 2003/2004.  That study was responsible for the ultimate introduction of SB133 in the 2005 legislature, a fund to funds approach to attracting venture capital.  SB133 passed the session with strong bi-partisan support and was signed into law by Governor Schweitzer in April of 2005.

Funding issues and concerns regarding constitutionality delayed implementation of the Act until recently, as the Governor’s office appointed the Board.  Gary Buchanan, Larry Anderson, Ellen Feaver, Bob Pancich, and Bob Minto were appointed to the Board in the fall of 2007.  Buchanan, appointed Chairman, worked with the Department of Commerce to schedule the initial meeting of the Board in December of 2007.    

The constitutionality of the Act and discussion on implementation of the Act were the primary topics of discussion.  Whether or not the Board should pursue a “test case”, in a sense seek to sue itself, was ultimately dismissed for a number of reasons.  The law, which is presumed constitutional, would be defended by the Montana Attorney General.  Attorney General Mike McGrath, Bond Counsel Mae Nan Ellingson, Chief Legislative Counsel Greg Petesch, SB133 sponsor former Senator Jeff Mangan and Budget Director David Ewer provided testimony and comment.

State Auditor John Morrison, MATR’s Russ Fletcher, Jon and Liz Marchi, Representative Jim Keane and Evan Barrett of the Office of Economic Development provided comment on implementation of the Act.   DOC Deputy Director Andy Poole provided the Board an overview of the Act.  

The Board chose to move forward with implementation, directing  staff to move forward with a staff search, and assigning individual Board members to investigate Fund to Fund programs currently being implemented in a number of different states, including Oklahoma, Iowa, and Utah.