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State Fund Board to Meet on Lawsuit Against State

The Montana State Fund filed the lawsuit on Nov. 17

By Associated Press

HELENA — The Montana State Fund board is scheduled to meet Wednesday to inform two new board members on a lawsuit the State Fund filed against the state.

The lawsuit argues a bill that allows the Montana Board of Investments to charge a 3 percent management fee assets above $1 billion is unconstitutional. The bill was included in legislation to address a projected $227 million state budget deficit.

Supporters argued such a fee is a legitimate business expense.

The lawsuit was filed on Nov. 17, the same day Gov. Steve Bullock appointed to new members to the board — former Democratic Sen. Cliff Larsen of Missoula and Jim Molloy, a former senior policy adviser to Bullock.

A spokeswoman for Bullock said the governor’s office did not know about the lawsuit before the appointments were made.