Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                         HB 818.1
                                               HOUSE BILL NO. 818
                                      INTRODUCED BY L. REKSTEN, L. JONES
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  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO FUNDING FOR
  SCHOOL FACILITIES; CONSOLIDATING TWO EXISTING STATE SPECIAL REVENUE ACCOUNTS AND
  THEIR VARIOUS REVENUE SOURCES AND PRIORITIZING THE FUNDING OF PROGRAMS; CHANGING
  THE NATURAL RESOURCE DEVELOPMENT K-12 SCHOOL FACILITIES PAYMENT FROM A GENERAL
  FUND APPROPRIATION TO A GENERAL FUND TRANSFER; PROVIDING A STATUTORY
  APPROPRIATION; AMENDING SECTIONS 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, AND 20-9-635, MCA; REPEALING SECTION 20-9-534, MCA; AND PROVIDING
  EFFECTIVE DATES.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 17-5-703, MCA, is amended to read:
          "17-5-703.    (Temporary) Coal severance tax trust funds. (1) The trust established under Article IX,
  section 5, of the Montana constitution is composed of the following funds:
          (a)      a coal severance tax bond fund into which the constitutionally dedicated receipts from the coal
  severance tax must be deposited;
          (b)      a Montana coal endowment fund;
          (c)      a Montana coal endowment regional water system fund;
          (d)      a coal severance tax permanent fund;
          (e)      a coal severance tax income fund;
          (f)      a big sky economic development fund; and
          (g)      a school facilities fund.
          (2)      (a) The state treasurer shall determine, on July 1 of each year, the amount necessary to meet
  all principal and interest payments on bonds payable from the coal severance tax bond fund during the next 12
  months and retain that amount in the coal severance tax bond fund.
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68th Legislature 2023                                                                                               HB 818.1
          (b)      The amount in the coal severance tax bond fund in excess of the amount required in
  subsection (2)(a) must be transferred from that fund as provided in subsections (4) and (5).
          (3)      (a) The state treasurer shall monthly transfer from the Montana coal endowment fund to the
  Montana coal endowment special revenue account the amount of earnings, excluding unrealized gains and
  losses, required to meet the obligations of the state that are payable from the account in accordance with 90-6-
  710. Earnings not transferred to the Montana coal endowment special revenue account must be retained in the
  Montana coal endowment fund.
          (b)      The state treasurer shall monthly transfer from the Montana coal endowment regional water
  system fund to the Montana coal endowment regional water system special revenue account the amount of
  earnings, excluding unrealized gains and losses, required to meet the obligations of the state that are payable
  from the account for regional water systems authorized under 90-6-715. Earnings not transferred to the
  Montana coal endowment regional water system special revenue account must be retained in the Montana coal
  endowment regional water system fund.
          (4)      (a) Starting July 1, 2017, the state treasurer shall quarterly transfer to the school facilities fund
  provided for in 20-9-380(1) 75% of the amount in the coal severance tax bond fund in excess of the amount that
  is specified in subsection (2) to be retained in the fund. The budget director shall certify to the state treasurer
  when the balance of the school facilities fund is $200 million. Beginning with the quarter following this
  certification, the state treasurer shall instead transfer to the coal severance tax permanent fund 75% of the
  amount in the coal severance tax bond fund that exceeds the amount that is specified in subsection (2) to be
  retained in the fund.
          (b)      The state treasurer shall monthly transfer from the school facilities fund to the account
  established in 20-9-525 20-9-516 the amount of earnings, excluding unrealized gains and losses, required to
  meet the obligations of the state that are payable from the account. Earnings not transferred to the account
  established in 20-9-525 20-9-516 must be retained in the school facilities fund.
          (5)      (a) From July 1, 2005, through June 30, 2025, the state treasurer shall quarterly transfer to the
  big sky economic development fund 25% of the amount in the coal severance tax bond fund in excess of the
  amount that is specified in subsection (2) to be retained in the fund.
          (b)      The state treasurer shall monthly transfer from the big sky economic development fund to the
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68th Legislature 2023                                                                                               HB 818.1
  economic development special revenue account, provided for in 90-1-205, the amount of earnings, excluding
  unrealized gains and losses, required to meet the obligations of the state that are payable from the account in
  accordance with 90-1-204. Earnings not transferred to the economic development special revenue account
  must be retained in the big sky economic development fund.
           (6)     Any amount in the coal severance tax bond fund in excess of the amount that is specified in
  subsection (2)(a) to be retained in the fund and that is not otherwise allocated under this section must be
  deposited in the coal severance tax permanent fund. (Terminates June 30, 2031--secs. 1 through 3, Ch. 305, L.
  2015.)
           17-5-703. (Effective July 1, 2031) Coal severance tax trust funds. (1) The trust established under
  Article IX, section 5, of the Montana constitution is composed of the following funds:
           (a)     a coal severance tax bond fund into which the constitutionally dedicated receipts from the coal
  severance tax must be deposited;
           (b)     a Montana coal endowment fund;
           (c)     a coal severance tax permanent fund;
           (d)     a coal severance tax income fund;
           (e)     a big sky economic development fund; and
           (f)     a school facilities fund.
           (2)     (a) The state treasurer shall determine, on July 1 of each year, the amount necessary to meet
  all principal and interest payments on bonds payable from the coal severance tax bond fund during the next 12
  months and retain that amount in the coal severance tax bond fund.
           (b)     The amount in the coal severance tax bond fund in excess of the amount required in
  subsection (2)(a) must be transferred from that fund as provided in subsections (4) and (5).
           (3)     The state treasurer shall monthly transfer from the Montana coal endowment fund to the
  Montana coal endowment special revenue account the amount of earnings, excluding unrealized gains and
  losses, required to meet the obligations of the state that are payable from the account in accordance with 90-6-
  710. Earnings not transferred to the Montana coal endowment special revenue account must be retained in the
  Montana coal endowment fund.
           (4)     (a) Starting July 1, 2017, the state treasurer shall quarterly transfer to the school facilities fund
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68th Legislature 2023                                                                                               HB 818.1
  provided for in 20-9-380(1) 75% of the amount in the coal severance tax bond fund in excess of the amount that
  is specified in subsection (2) to be retained in the fund. The budget director shall certify to the state treasurer
  when the balance of the school facilities fund is $200 million. Beginning with the quarter following this
  certification, the state treasurer shall instead transfer to the coal severance tax permanent fund 75% of the
  amount in the coal severance tax bond fund that exceeds the amount that is specified in subsection (2) to be
  retained in the fund.
          (b)      The state treasurer shall monthly transfer from the school facilities fund to the account
  established in 20-9-525 20-9-516 the amount of earnings, excluding unrealized gains and losses, required to
  meet the obligations of the state that are payable from the account. Earnings not transferred to the account
  established in 20-9-525 20-9-516 must be retained in the school facilities fund.
          (5)      (a) From July 1, 2005, through June 30, 2025, the state treasurer shall quarterly transfer to the
  big sky economic development fund 25% of the amount in the coal severance tax bond fund in excess of the
  amount that is specified in subsection (2) to be retained in the fund.
          (b)      The state treasurer shall monthly transfer from the big sky economic development fund to the
  economic development special revenue account, provided for in 90-1-205, the amount of earnings, excluding
  unrealized gains and losses, required to meet the obligations of the state that are payable from the account in
  accordance with 90-1-204. Earnings not transferred to the economic development special revenue account
  must be retained in the big sky economic development fund.
          (6)      Any amount in the coal severance tax bond fund in excess of the amount that is specified in
  subsection (2)(a) to be retained in the fund and that is not otherwise allocated under this section must be
  deposited in the coal severance tax permanent fund."
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          Section 2. 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:
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68th Legislature 2023                                                                                            HB 818.1
          (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; 7-4-2924; 7-32-236; 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; 10-4-310; 15-1-121; 15-1-218;
  15-31-165; 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; 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 20-9-516; 20-9-622; [20-15-328]; 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; 37-54-113; 39-71-503; 41-5-2011; 42-2-105; 44-4-1101; 44-12-213; 44-13-
  102; 46-32-108; 50-1-115; 53-1-109; 53-6-148; 53-9-113; 53-24-108; 53-24-206; 60-5-530; 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-
  150; 76-13-151; 76-13-417; 76-17-103; 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; 87-5-909; 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. 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
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68th Legislature 2023                                                                                           HB 818.1
  terminates June 30, 2025; 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. 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; pursuant to sec. 7, Ch. 465, L. 2019, the inclusion of 85-2-526 terminates July 1, 2023; pursuant to
  sec. 5, Ch. 477, L. 2019, the inclusion of 10-3-802 terminates June 30, 2023; pursuant to secs. 1, 2, 3, Ch. 139,
  L. 2021, the inclusion of 53-9-113 terminates June 30, 2027; pursuant to sec. 8, Ch. 200, L. 2021, the inclusion
  of 10-4-310 terminates July 1, 2031; pursuant to secs. 3, 4, Ch. 404, L. 2021, the inclusion of 30-10-1004
  terminates June 30, 2027; pursuant to sec. 5, Ch. 548, L. 2021, the inclusion of 50-1-115 terminates June 30,
  2025; pursuant to secs. 5 and 12, Ch. 563, L. 2021, the inclusion of 22-3-1004 is effective July 1, 2027; and
  pursuant to sec. 15, Ch. 574, L. 2021, the inclusion of 46-32-108 terminates June 30, 2023.)"
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          Section 3. Section 20-6-702, MCA, is amended to read:
          "20-6-702.       Funding for K-12 school districts. (1) Notwithstanding the provisions of subsections (2)
  through (6), a K-12 school district formed under the provisions of 20-6-701 is subject to the provisions of law for
  high school districts.
          (2)      The number of elected trustees of the K-12 school district must be based on the classification
  of the attached elementary district under the provisions of 20-3-341 and 20-3-351.
          (3)      Calculations for the following must be made separately for the elementary school program and
  the high school program of a K-12 school district:
          (a)      the calculation of ANB for purposes of determining the total per-ANB entitlements must be in
  accordance with the provisions of 20-9-311;
          (b)      the basic county tax for elementary equalization and revenue for the elementary BASE funding
  program for the district must be determined in accordance with the provisions of 20-9-331, and the basic county
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68th Legislature 2023                                                                                           HB 818.1
  tax for high school equalization and revenue for the high school BASE funding program for the district must be
  determined in accordance with 20-9-333;
           (c)     the guaranteed tax base aid for BASE funding program purposes for a K-12 school district must
  be calculated separately, using each district's guaranteed tax base ratio, as defined in 20-9-366. The BASE
  budget levy to be levied for the K-12 school district must be prorated based on the ratio of the BASE funding
  program amounts for elementary school programs to the BASE funding program amounts for high school
  programs.
           (d)     the levy authority limits under 20-9-502(3) and the corresponding state school major
  maintenance aid under 20-9-525(3) for a K-12 school district must be calculated separately for the K-12 school
  district's elementary and high school programs in the same manner as those limits and aid would be calculated
  i