Bill Summary – FastDemocracy

67th Legislature                                                                                                    HB 630.1
                                                    HOUSE BILL NO. 630
                                                INTRODUCED BY D. BEDEY
  3
   A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING STATE FINANCE LAWS RELATED TO
   APPROPRIATING FEDERAL FUNDS FOR COVID-19 RELIEF FOR THE FISCAL YEAR ENDING JUNE 30,
   2021; TEMPORARILY SUSPENDING ANTICIPATED ENROLLMENT INCREASES DUE TO COVID-19;
   TEMPORARILY MODIFYING FINANCIAL SUPPORT FOR UNANTICIPATED ENROLLMENT INCREASES
   DUE TO COVID-19; ALLOWING COVID-19 RELIEF APPROPRIATIONS TO CONTINUE INTO THE
   BIENNIUM BEGINNING JULY 1, 2021; APPROPRIATING FUNDS TO THE OFFICE OF STATE PUBLIC
   DEFENDER FOR THE FISCAL YEAR ENDING JUNE 30, 2021; AMENDING SECTIONS 20-6-326, 20-9-166,
   AND 20-9-314, MCA; AMENDING SECTION 1, CHAPTER 483, LAWS OF 2019; AND PROVIDING AN
   EFFECTIVE DATE AND A TERMINATION DATE.”
 13
   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
 15
              Section 1. Section 20-6-326, MCA, is amended to read:
              "20-6-326.   Procedure for expansion of elementary school district into K-12 school district --
   trustee resolution. (1) An existing elementary district that is not part of a unified school system or governed by
   a joint board with a high school district may expand into a K-12 district under the procedures outlined in this
   section only if the elementary district's ANB, as calculated under the provisions of 20-9-311, is at least 1,000.
              (2)   The expansion to a K-12 district may be requested by the trustees of an existing elementary
   district through passage of a resolution that includes the information outlined in 20-6-105(3) and requests the
   county superintendent to order an election to allow the electors of the elementary district to consider the
   proposition of expanding the elementary school district into a K-12 district. The trustees of an existing
   elementary district with an ANB of at least 1,000 may not pass a resolution for expansion more than one time
   within a 5-year period.
              (3)   (a) If the proposition for the expansion is approved by the electors of the elementary district and
   the trustees issue a certificate of election as provided in 20-20-416, for a period of 2 years from the date of the
                                                                  -1-                      Authorized Print Version – HB 630
67th Legislature                                                                                                          HB 630.1
   certification of the election the elementary trustees have the authority to propose to the electors of the
   elementary district:
              (i)   a transition costs levy pursuant to 20-9-502; and
              (ii) a general obligation bond pursuant to Title 20, chapter 9, part 4, for the purpose of building,
   altering, repairing, buying, furnishing, equipping, purchasing lands for, or obtaining a water supply for a school
   to accommodate high school students.
              (b)   The bond limitations pursuant to 20-9-406 imposed on a district proposing a bond under
   subsection (3)(a) must be calculated on the limits for a K-12 district with the high school ANB calculated by
   dividing the ANB of the elementary district by 9 and multiplying the result by 4.
              (c)   A bond approved under subsection (3)(a) becomes a bond of, and may not be issued until the
   creation of, the K-12 district formed pursuant to subsection (4).
              (d)   A district that issues a bond under this subsection (3) is eligible for facility reimbursements and
   advances pursuant to 20-9-366 through 20-9-371 that, until the new high school has enrolled students in all
   grades and has established an actual ANB for budgeting purposes, must be based on an estimated high school
   ANB calculated by dividing the ANB of the elementary district by 9 and multiplying the result by 4.
              (e)   Until the county superintendent orders the creation of a new high school district and attachment of
   the expanding elementary district to form a new K-12 district pursuant to subsection (4), the existing high school
   district remains intact for all purposes.
              (4)   If elementary electors approve a bond pursuant to subsection (3), on July 1 following the approval
   of the bond the county superintendent shall order the creation of a new high school district with identical
   boundaries to the expanding elementary district and the immediate attachment of the expanding elementary
   district to form a K-12 district. The county superintendent shall send a copy of the order to the board of county
   commissioners and to the trustees of the districts affected by the creation of the district. The trustees of the
   expanding elementary district must be designated as the trustees of the new K-12 district.
              (5)   Prior to the first school fiscal year in which the K-12 district will enroll students in a particular high
   school grade, the K-12 trustees shall prepare operating budgets for the new high school according to the school
   budgeting provisions of this title, except that:
              (a)   the ANB for any inaugural grades for the high school program of the K-12 district must be
                                                                     -2-                       Authorized Print Version – HB 630
67th Legislature                                                                                                       HB 630.1
   estimated by the trustees and may not exceed the number resulting from dividing the highest budgeted ANB of
   the elementary program in the preceding 3 fiscal years by 9 and multiplying the result by the number of grades
   in which the high school will enroll students for the first time in the ensuing school year;
              (b)   the number of quality educators for the high school program must be estimated by the trustees
   and may not exceed the number resulting from dividing the ANB estimated under subsection (5)(a) by 10;
              (c)   the taxable value for budgeting purposes of both the elementary and high school programs of the
   K-12 district must be based on the taxable value as most recently determined by the department of revenue;
              (d)   the general fund budget adopted by the trustees must be based on only the basic entitlement, the
   quality educator payment, and the budget components derived from ANB counts; and
              (e)   the district's BASE aid for the upcoming year must be based on the general fund budget adopted
   by the trustees for the upcoming school year.
              (6)   Until the first school year in which the K-12 school district enrolls high school students in all grades
   and for a period of time not to exceed 6 years following the creation of the K-12 district:
              (a)   the high school district shall provide high school instruction to high school students of the K-12
   district in any grades in which the K-12 district is not enrolling students;
              (b)   the K-12 district shall be responsible for providing transportation for its students enrolled in the
   high school district pursuant to subsection (6)(a), may establish a transportation budget for this purpose, and
   may receive state and county reimbursements under Title 20, chapter 10; and
              (c)   the K-12 district shall pay the high school district 20% of the per-ANB maximum rate established in
   20-9-306 for each of its students enrolled in the high school district with one-half of the amount due by
   December 31 of the year following the year of attendance and the remainder due no later than June 15 of the
   year following the year of attendance. The K-12 trustees shall establish a tuition fund and levy to fund these
   payments.
              (7)   (a) Bonded indebtedness of the high school district that is outstanding as of the date of creation of
   the K-12 district must remain secured by and be the indebtedness of the original territory against which the
   bonds of the high school district were issued and must be paid by tax levies against the original territory.
              (b)   Bonded indebtedness of the high school district that is issued by the high school district following
   the creation of the K-12 district is secured by the territory of the high school district as of the date of issuance of
                                                                    -3-                      Authorized Print Version – HB 630
67th Legislature                                                                                                       HB 630.1
   the high school district bonds and must be paid by tax levies against the territory of the high school district.
   However, if bonds of the high school district were approved at a bond election conducted before the creation of
   the K-12 district, all bonds of the high school district issued by the high school district under the bond election
   authority must remain secured by and be the indebtedness of the territory of the high school district as of the
   date the bond authority was approved by voters and must be paid by tax levies against that territory.
               (c)   Bonded indebtedness of the K-12 district is secured by the territory of the K-12 district as of the
   date of issuance of the K-12 district bonds and must be paid by tax levies against the territory of the K-12
   district.
               (d)   Bonded indebtedness of the elementary district that is outstanding as of the date of creation of the
   K-12 district must become upon the date of creation of the K-12 district the bonded indebtedness of the K-12
   district and must be secured by the territory of the K-12 district and paid by tax levies against the territory of the
   K-12 district. The debt service on the bonds must be allocated to the elementary program of the K-12 district.
               (e)   Bonded indebtedness of the high school district or the K-12 district that is subsequently affected
   by a later reorganization of the high school district or the K-12 district is governed by the provisions of Title 20,
   chapter 6, part 4.
               (8)   When a K-8 district expands to a K-12 district as provided for in this section, a principal, teacher,
   or other certified employee of the original high school district who has a right of tenure under Montana law must
   be given preference in hiring for a vacant position in the new K-12 district for which the employee is qualified
   with the required certification endorsements."
 20
               Section 2. Section 20-9-166, MCA, is amended to read:
               "20-9-166.    State financial aid for (Temporary) Financial support for transportation budget
   amendments and covid-19-related enrollment increases. Whenever a final budget amendment has been
   adopted for the general fund to finance the cost of an amendment resulting from increased enrollment, the
   trustees may apply to the superintendent of public instruction for an increased payment from the state for direct
   state aid. (1) Whenever a final budget amendment has been adopted for the transportation fund, the trustees
   may apply to the superintendent of public instruction for an increased payment for state transportation
   reimbursement. The superintendent of public instruction shall adopt rules for the application for state
                                                                    -4-                      Authorized Print Version – HB 630
67th Legislature                                                                                                     HB 630.1
   transportation reimbursement. The superintendent of public instruction shall approve or disapprove each
   application for increased state aid made in accordance with 20-9-314and this section state transportation
   reimbursement. When the superintendent of public instruction approves an application, the superintendent of
   public instruction shall determine the additional amount of direct state aid or the state transportation
   reimbursement that will be made available to the applicant district because of the increase in enrollment or
   additional pupil transportation obligations. The superintendent of public instruction shall notify the applicant
   district of the superintendent's approval or disapproval and, in the event of approval, the amount of additional
   state aid that will be made available for the general fund or the transportation fund. The superintendent of public
   instruction shall disburse the state aid to the eligible district at the time the next regular state aid payment is
   made.
              (2)   (a) Any increase in enrollment for a district at the October enrollment count for fiscal years 2022
   and 2023 compared to the enrollment count of the district in October of the immediately preceding fiscal year is
   declared by the legislature to be related to the uncertainty created by covid-19 and qualifies the district for
   additional financial support as described in this subsection (2). The legislature also declares that the state's
   fiscal challenges in the biennium beginning July 1, 2021, are a direct result of the economic downturn resulting
   from covid-19.
              (b)   Subject to reduction under subsection (2)(c), the amount of additional financial support the district
   qualifies for must be calculated by the superintendent of public instruction as the difference between the
   district's BASE budget for that fiscal year and the amount of the district's BASE budget if the district's budget
   limit ANB for that fiscal year was calculated using the district's actual October enrollment count in the current
   school year in place of the preceding year's October enrollment count.
              (c)   (i) The total amount of the additional financial support for a district must be reduced by 10% of the
   Title I allocation and any portion of an amount allocated on a per-quality-educator basis received by the district
   as of the enrollment count date pursuant to:
              (A)   the Coronavirus Response and Relief Supplemental Appropriations Act of 2021; and
              (B) any additional federal stimulus funds passed by congress and distributing funding under catalog of
   federal domestic assistance number 84.425D.
              (ii) The superintendent of public instruction shall consider the 10% amount calculated under this
                                                                   -5-                     Authorized Print Version – HB 630
67th Legislature                                                                                                      HB 630.1
   subsection (2)(c) as an expense eligible for reimbursement under catalog of federal domestic assistance
   number 84.425D.
              (d)   The only increases in financial support resulting from increased enrollment are the increases
   described in this subsection (2). The superintendent of public instruction shall allocate the additional financial
   support to a qualifying district, first from federal money appropriated by the legislature for this purpose and if
   necessary, from the BASE aid appropriation in House Bill No. 2.
              (e)   A district receiving additional financial support under this subsection (2) shall deposit the money in
   the district's miscellaneous programs fund and use it to address costs associated with the enrollment increase.
   (Terminates June 30, 2023)."
 10
              Section 3. Section 20-9-314, MCA, is amended to read:
              "20-9-314.    Procedures for determining eligibility and amount of increased average number
   belonging due to unusual enrollment increase. A Except for the ensuing school fiscal years of 2022 and
   2023, a district that anticipates an unusual increase in enrollment in the ensuing school fiscal year, as provided
   for in 20-9-313(1)(d), may increase its basic entitlement and total per-ANB entitlement for the ensuing school
   fiscal year in accordance with the following provisions:
              (1)   Prior to June 1, the district shall estimate the elementary or high school enrollment to be realized
   during the ensuing school fiscal year, based on as much factual information as may be available to the district.
              (2)   No later than June 1, the district shall submit its application for an anticipated unusual enrollment
   increase by elementary or high school level to the superintendent of public instruction. The application must
   include:
              (a)   the enrollment for the current school fiscal year;
              (b)   the average number belonging used to calculate the basic entitlement and total per-ANB
   entitlement for the current school fiscal year;
              (c)   the average number belonging that will be used to calculate the basic entitlement and total per-
   ANB entitlement for the ensuing school fiscal year;
              (d)   the anticipated enrollment, including the factual information on which the estimate is based, as
   provided in subsection (1); and
                                                                   -6-                      Authorized Print Version – HB 630
67th Legislature                                                                                                        HB 630.1
              (e)   any other information or data that may be requested by the superintendent of public instruction.
              (3)   The superintendent of public instruction shall immediately review all the factors of the application
   and shall approve or disapprove the application or adjust the enrollment used to calculate the budgeted
   average number b