The bill seeks to revise and enhance the funding mechanisms for school facilities in Montana by consolidating two existing state special revenue accounts and establishing a new school facilities fund. It proposes a shift in the funding mechanism for the Natural Resource Development K-12 School Facilities Payment from a general fund appropriation to a general fund transfer, thereby creating a statutory appropriation. The bill includes significant amendments to the Montana Code Annotated (MCA), particularly repealing Section 20-9-534 and replacing it with Section 20-9-516. Key provisions include the allocation of a percentage of coal severance taxes to the new fund, the management responsibilities of the state treasurer, and the transfer of excess funds to the coal severance tax permanent fund once a specified balance is reached.

Additionally, the bill introduces new legal language that statutorily appropriates funds for school districts from the school facility and technology account, prioritizing school major maintenance aid and technology purposes. It clarifies definitions related to local efforts and school major maintenance amounts, modifies the distribution process for maintenance aid, and allows school district trustees to propose additional levies for technology funding. The bill also redirects excess interest and income revenue from the guarantee account to the new facility and technology account, establishes a new payment structure based on inflation and oil and gas production taxes, and mandates the transfer of unencumbered funds from the school major maintenance aid account to the new account by June 30, 2023. The act is effective upon passage, with certain sections taking effect on July 1, 2023.

Statutes affected:
Introduced: 17-5-703, 17-7-502, 20-6-702, 20-9-380, 20-9-502, 20-9-516, 20-9-525, 20-9-533, 20-9-622, 20-9-635