House Bill No. 235

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act appropriating $1 million annually from the interest of the resource indemnity trust fund to the future fisheries improvement program to assist in paying the costs of moving or removing sources of pollution from streambanks and lakeshores; amending sections 15-38-202 and 87-1-272, MCA; and providing an effective date."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 15-38-202, MCA, is amended to read:

"15-38-202.   Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. All the net earnings accruing to the resource indemnity trust fund must annually be added to the trust fund until it has reached the sum of $10 million. Thereafter, only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts must be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.

(2)  (a) At the beginning of each fiscal year, there is allocated from the interest income of from the resource indemnity trust fund $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs.

(b)  At the beginning of each biennium, there is allocated from the interest income of from the resource indemnity trust fund:

(i)  an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;

(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161;

(iii) beginning in fiscal year 1996, $2 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants;

(iv) beginning in fiscal year 1996, $3 million to be deposited into the reclamation and development grants state special revenue account, created by 90-2-1104, for the purpose of making grants; and

(v)  beginning in fiscal year 1996, $500,000 to be deposited into the water storage state special revenue account created by 85-1-631; and

(vi) beginning in fiscal year 1998 and each succeeding fiscal year, $1 million to the future fisheries improvement program, established in 87-1-272, to fund projects that enhance moving or removing sources of pollution from streambanks and lakeshores, including but not limited to stockyards, mine tailings, machinery, sources of silt, and other pollution sources.

(c)  The remainder of the interest income is allocated as follows:

(i)  Thirty-six percent of the interest income of from the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.

(ii) Eighteen percent of the interest income of from the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.

(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.

(iv) Six percent of the interest income of from the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.

(3)  Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds from the resource indemnity trust interest account other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session."

Section 2.  Section 87-1-272, MCA, is amended to read:

"87-1-272.   (Temporary) Future fisheries improvement program -- funding priority -- reports required. (1) In order to enhance future fisheries through natural reproduction, the department shall establish and implement a statewide voluntary program that promotes fishery habitats and spawning areas for the rivers, streams, and lakes of Montana's fisheries.

(2)  The department shall by April 1, 1996, and thereafter when projects are suggested by the future fisheries review panel, through a public hearing process and with the approval of the commission, prioritize projects that have been recommended by the review panel to be funded. Emphasis must be given to projects that enhance the historic habitat of native fish species. The department shall fund and implement the program regarding the long-term enhancement of streams and streambanks, streambank and lakeshore pollution mitigation, instream flows, water leasing, lease or purchase of stored water, and other voluntary programs that deal with wild fish and aquatic habitats. A project conducted under the future fisheries improvement program may not restrict or interfere with the exercise of any water rights or property rights of the owners of streambeds and property adjacent to streambeds, streambanks, and lakes. The fact that a program project has been completed on private property does not create any right of public access to the private property unless that right is granted voluntarily by the property owner.

(3)  The department shall work in cooperation with private landowners, conservation districts, irrigation districts, local officials, anglers, and other citizens to implement the future fisheries improvement program. Any department employee who is employed under this section to facilitate contact with landowners must have experience in commercial or irrigated agriculture. The department shall encourage the use of volunteer labor and grants, matching grants, and private donations to accomplish program purposes. The department may use contracted services:

(a)  for negotiations with landowners, local officials, citizens, and others;

(b)  for coordination with other agencies that may be involved in projects conducted under this section; and

(c)  to perform and supervise project work.

(4)  Funds expended under this section may be used only for projects for the protection of the fisheries resource that have been identified by the review panel, established in 87-1-273, and approved by the commission and may not be used for the acquisition of any interest in land.

(5)  (a) The department shall report to the commission on the progress of the future fisheries improvement program every 12 months and post a copy of the report on the state electronic bulletin board to ensure public access to the report.

(b)  The department shall also present a detailed report to each regular session of the legislature on the progress of the future fisheries improvement program. The legislative report must include the department's program activities and expenses since the last report and the project schedules and anticipated expenses for the ensuing 10 years' implementation of the future fisheries improvement program.

(c)  In order to implement 87-1-273 and this section, the department may expend revenue from the future fisheries improvement program for up to two additional full-time employees.

(d) In order to mitigate the effects of pollution affecting fisheries, the department may expend revenue allocated from the interest income from the resource indemnity trust fund, pursuant to 15-38-202(2)(b)(vi), to fund projects that enhance moving or removing sources of pollution from streambanks and lakeshores, including but not limited to stockyards, mine tailings, machinery, sources of silt, and other pollution sources. (Terminates July 1, 2005--sec. 5, Ch. 463, L. 1995.)"

NEW SECTION. Section 3.  Effective date. [This act] is effective July 1, 1997.

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