53-30-511. Local governmental entity authorized to enter into long-term contracts and to incur indebtedness -- noncompetition clause. - Montana Statutes

     53-30-511. Local governmental entity authorized to enter into long-term contracts and to incur indebtedness -- noncompetition clause. (1) A local governmental entity may enter into a long-term lease or agreement, not to exceed a term of 30 years, with a corporation proposing to operate a regional detention facility under this part. The local governmental entity may agree in the long-term lease or agreement to acquire the facility from the corporation through a lease or a lease option to purchase, subject to the limitations of Title 7, chapter 7, part 21.
     (2) A contract may also contain a covenant by the local governmental entity that if the contract is terminated for nonappropriation of funds by the local governmental entity, the local governmental entity agrees not to purchase, lease, or rent property to perform the functions performed by the corporation and agrees not to permit the functions to be performed by its own employees or by any local governmental entity for a specified period of not less than 1 year and not more than the remaining original term of the contract.

     History: En. Sec. 5, Ch. 224, L. 1997.