Bill Summary – FastDemocracy

67th Legislature
                                                                                                                   HB 72.1
                                                HOUSE BILL NO. 72
                                          INTRODUCED BY F. GARNER
                      BY REQUEST OF THE PUBLIC EMPLOYEES' RETIREMENT BOARD
 4
 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING FUNDING OF THE HIGHWAY PATROL OFFICERS'
 RETIREMENT SYSTEM; PROVIDING FOR A STATE SUPPLEMENTAL CONTRIBUTION FROM CERTAIN
 STATE LOTTERY REVENUE; PROVIDING A STATUTORY APPROPRIATION; AMENDING SECTIONS 17-7-
 502 AND 23-7-402, MCA; AND PROVIDING AN EFFECTIVE DATE.”
 9
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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         Section 1. Section 17-7-502, MCA, is amended to read:
         "17-7-502. Statutory appropriations -- definition -- requisites for validity. (1) A statutory
 appropriation is an appropriation made by permanent law that authorizes spending by a state agency without
 the need for a biennial legislative appropriation or budget amendment.
         (2)   Except as provided in subsection (4), to be effective, a statutory appropriation must comply with
 both of the following provisions:
         (a)   The law containing the statutory authority must be listed in subsection (3).
         (b)   The law or portion of the law making a statutory appropriation must specifically state that a
 statutory appropriation is made as provided in this section.
         (3)   The following laws are the only laws containing statutory appropriations: 2-17-105; 5-11-120; 5-11-
 407; 5-13-403; 5-13-404; 7-4-2502; 10-1-108; 10-1-1202; 10-1-1303; 10-2-603; 10-2-807; 10-3-203; 10-3-310;
 10-3-312; 10-3-314; 10-3-802; 10-3-1304; 10-4-304; 15-1-121; 15-1-218; 15-31-1004; 15-31-1005; 15-35-108;
 15-36-332; 15-37-117; 15-39-110; 15-65-121; 15-70-101; 15-70-130; 15-70-433; 16-11-119; 16-11-509; 17-3-
 106; 17-3-212; 17-3-222; 17-3-241; 17-6-101; 17-7-215; 18-11-112; 19-3-319; 19-3-320; 19-6-404; 19-6-410;
 [section 2]; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 19-20-607; 19-21-
 203; 20-8-107; 20-9-534; 20-9-622; 20-9-905; 20-26-617; 20-26-1503; 22-1-327; 22-3-116; 22-3-117; 22-3-
 1004; 23-4-105; 23-5-306; 23-5-409; 23-5-612; 23-7-301; 23-7-402; 30-10-1004; 37-43-204; 37-50-209; 37-54-
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                                                      67th Legislature
                                                                                                                HB 72.1
 113; 39-71-503; 41-5-2011; 42-2-105; 44-4-1101; 44-12-213; 44-13-102; 50-1-115; 53-1-109; 53-6-148; 53-9-
 113; 53-24-108; 53-24-206; 60-11-115; 61-3-321; 61-3-415; 67-1-309; 69-3-870; 69-4-527; 75-1-1101; 75-5-
 1108; 75-6-214; 75-11-313; 75-26-308; 76-13-151; 76-13-150; 76-17-103; 76-22-109; 77-1-108; 77-2-362; 80-
 2-222; 80-4-416; 80-11-518; 80-11-1006; 81-1-112; 81-1-113; 81-7-106; 81-7-123; 81-10-103; 82-11-161; 85-2-
 526; 85-20-1504; 85-20-1505; [85-25-102]; 87-1-603; 90-1-115; 90-1-205; 90-1-504; 90-6-331; and 90-9-306.
         (4)   There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing,
 paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued
 pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of
 Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined
 by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have
 statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 10, Ch. 360, L. 1999, the
 inclusion of 19-20-604 terminates contingently when the amortization period for the teachers' retirement
 system's unfunded liability is 10 years or less; pursuant to sec. 73, Ch. 44, L. 2007, the inclusion of 19-6-410
 terminates contingently upon the death of the last recipient eligible under 19-6-709(2) for the supplemental
 benefit provided by 19-6-709; pursuant to sec. 27, Ch. 285, L. 2015, and sec. 1, Ch. 292, L. 2015, the inclusion
 of 53-9-113 terminates June 30, 2021; pursuant to sec. 6, Ch. 291, L. 2015, the inclusion of 50-1-115
 terminates June 30, 2021; pursuant to sec. 5, Ch. 383, L. 2015, the inclusion of 85-25-102 is effective on
 occurrence of contingency; pursuant to sec. 6, Ch. 423, L. 2015, the inclusion of 22-3-116 and 22-3-117
 terminates June 30, 2025; pursuant to sec. 33, Ch. 457, L. 2015, the inclusion of 20-9-905 terminates
 December 31, 2023; pursuant to sec. 12, Ch. 55, L. 2017, the inclusion of 37-54-113 terminates June 30, 2023;
 pursuant to sec. 4, Ch. 122, L. 2017, the inclusion of 10-3-1304 terminates September 30, 2025; pursuant to
 sec. 55, Ch. 151, L. 2017, the inclusion of 30-10-1004 terminates June 30, 2021; pursuant to sec. 1, Ch. 213, L.
 2017, the inclusion of 90-6-331 terminates June 30, 2027; pursuant to secs. 5, 8, Ch. 284, L. 2017, the
 inclusion of 81-1-112, 81-1-113, and 81-7-106 terminates June 30, 2023; pursuant to sec. 1, Ch. 340, L. 2017,
 the inclusion of 22-1-327 terminates July 1, 2023; pursuant to sec. 10, Ch. 374, L. 2017, the inclusion of 76-17-
 103 terminates June 30, 2027; pursuant to sec. 5, Ch, 50, L. 2019, the inclusion of 37-50-209 terminates
 September 30, 2023; pursuant to sec. 1, Ch. 408, L. 2019, the inclusion of 17-7-215 terminates June 30, 2029;
 pursuant to secs. 11, 12, and 14, Ch. 343, L. 2019, the inclusion of 15-35-108 terminates June 30, 2027;
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                                                                                                                 HB 72.1
 pursuant to sec. 7, Ch. 465, L. 2019, the inclusion of 85-2-526 terminates July 1, 2023; and pursuant to sec. 5,
 Ch. 477, L. 2019, the inclusion of 10-3-802 terminates June 30, 2023.)"
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         NEW SECTION. Section 2. State supplemental contribution -- special account -- statutory
 appropriation. (1) There is an account in the state special revenue fund provided for in 17-2-102 for the
 purpose of paying the state supplemental contribution to the highway patrol officers' retirement system pension
 trust fund as provided in this section.
         (2)   The amounts specified under 23-7-402(3) must be deposited in the account.
         (3)   The money in the account is statutorily appropriated, as provided in 17-7-502, from the account to
 the highway patrol officers’ retirement system pension trust fund.
         (4)   The board shall review the sufficiency of the contributions provided pursuant to this section and
 make recommendations to the legislature for adjustments as needed.
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         Section 3. Section 23-7-402, MCA, is amended to read:
         "23-7-402.    (Temporary) Disposition of revenue. (1) A minimum of 45% of the money paid for
 tickets, chances, wagers, or bets must be paid out as prize money. The prize money is statutorily appropriated,
 as provided in 17-7-502, to the state lottery.
         (2)   Commissions paid to lottery sales agents are not a state lottery operating expense.
         (3)   That part of all gross revenue not used for the payment of prizes, commissions, and operating
 expenses, together with the interest earned on the gross revenue while the gross revenue is in the enterprise
 fund, is net revenue. Net revenue must be transferred quarterly from the enterprise fund established by 23-7-
 401 in the following order:
         (a)   (i) The first $500,000 of net revenue in fiscal year 2020 must be transferred quarterly in equal
 payments of $125,000 to the Montana STEM scholarship program special revenue account established in 20-
 26-617; and
         (ii) net revenue in excess of $500,000 in fiscal year 2020 must be transferred to the state general fund.
         (b)   (i) The first $1 million of net revenue in fiscal year 2021 must be transferred quarterly in equal
 payments of $250,000 to the Montana STEM scholarship program special revenue account established in 20-
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                                                                                                                  HB 72.1
 26-617; and
         (ii) net revenue in excess of $1 million in fiscal year 2021 must be transferred to the state general fund.
         (c) (i) The first $1.5 million of net revenue in fiscal year 2022 must be transferred quarterly in equal
 payments of $375,000 to the Montana STEM scholarship program special revenue account established in 20-
 26-617; and.
         (ii) Except as provided in subsection (3)(c)(iii), the net revenue in excess of $1.5 million in fiscal year
 2022 must be transferred to the state general fund.
         (iii) The first $860,000 of the net revenue in excess of $1.5 million in fiscal year 2022 must be
 transferred on or before June 30, 2022, to the account established in [section 2] for the highway patrol officers'
 retirement system pension trust fund.
         (d)    (i) The first $2 million of net revenue in fiscal year 2023 must be transferred quarterly in equal
 payments of $500,000 to the Montana STEM scholarship program special revenue account established in 20-
 26-617; and.
         (ii) Except as provided in subsection (3)(d)(iii), the net revenue in excess of $2 million in fiscal year
 2023 must be transferred to the state general fund.
         (iii) The first $910,000 of the net revenue in excess of $2 million in fiscal year 2023 must be transferred
 on or before June 30, 2023, to the account established in [section 2] for the highway patrol officers' retirement
 system pension trust fund.
         (e)    (i) The first $2.25 million of net revenue in fiscal year 2024 and subsequent fiscal years must be
 transferred quarterly in equal payments of $562,500 to the Montana STEM scholarship program special
 revenue account established in 20-26-617; and.
         (ii) Except as provided in subsection (3)(e)(iii), the net revenue in excess of $2.25 million in fiscal year
 2024 and subsequent fiscal years must be transferred to the state general fund.
         (iii) The first $960,000 of the net revenue in excess of $2.25 million in fiscal year 2024 must be
 transferred on or before June 30, 2024, and on or before June 30 of each subsequent fiscal year to the account
 established in [section 2] for the highway patrol officers' retirement system pension trust fund.
         (4)    The spending authority of the state lottery may be increased in accordance with this section upon
 review and approval of a revised operation plan by the office of budget and program planning. (Terminates
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                                                        67th Legislature
                                                                                                                     HB 72.1
 June 30, 2023--sec. 20, Ch. 300, L. 2019.)
         23-7-402.     (Effective July 1, 2023) Disposition of revenue. (1) A minimum of 45% of the money paid
 for tickets or chances must be paid out as prize money. The prize money is statutorily appropriated, as provided
 in 17-7-502, to the state lottery.
         (2)    Commissions paid to lottery ticket or chance sales agents are not a state lottery operating
 expense.
         (3)    That part of all gross revenue not used for the payment of prizes, commissions, and operating
 expenses, together with the interest earned on the gross revenue while the gross revenue is in the enterprise
 fund, is net revenue. Net revenue must be transferred quarterly from the enterprise fund established by 23-7-
 401 in the following order:
         (a)    the The first $2.25 million of net revenue in each fiscal year must be transferred quarterly in equal
 payments of $562,500 to the Montana STEM scholarship program special revenue account established in 20-
 26-617; and.
         (b)    Except as provided in subsection (3)(c), the net revenue in excess of $2.25 million in each fiscal
 year must be transferred to the state general fund.
         (c)    The first $960,000 of the net revenue in excess of $2.25 million in fiscal year 2024 must be
 transferred on or before June 30, 2024, and on or before June 30 of each subsequent fiscal year to the account
 established in [section 2] for the highway patrol officers' retirement system pension trust fund.
         (4)    The spending authority of the state lottery may be increased in accordance with this section upon
 review and approval of a revised operation plan by the office of budget and program planning."
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         NEW SECTION. Section 4. Codification instruction. [Section 2] is intended to be codified as an
 integral part of Title 19, chapter 6, part 4, and the provisions of Title 19, chapter 6, part 4, apply to [section 2].
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         NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 2021.
                                                         - END -
                                                               -5-                        Authorized Print Version – HB 72
Statutes affected: 
HB0072_1.pdf: 17-7-502, 23-7-402
HB0072_2.pdf: 44-1-504
HB0072_X.pdf: 44-1-504
Introduced: 17-7-502, 23-7-402