House Bill No. 564

Introduced By dowell

A Bill for an Act entitled: "An Act authorizing a school district that provides educational services to an out-of-district student pursuant to a tuition agreement to issue and sell short-term obligations in the current fiscal year to pay the costs of educational services for which tuition payment will not be received until the ensuing fiscal year; amending section

7-6-1102, MCA; and providing an effective date and an applicability date."

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

NEW SECTION. Section 1.  Short-term obligation for out-of-district tuition costs. A school district that provides educational services to an out-of-district student pursuant to a tuition agreement under 20-5-320 or 20-5-321 may issue and sell short-term obligations in the current fiscal year to pay the costs of educational services for which tuition payment will not be received until the ensuing fiscal year. THE SHORT-TERM OBLIGATIONS MAY NOT EXCEED THE AMOUNT OF THE TUITION PAYMENT TO BE RECEIVED.

Section 2.  Section 7-6-1102, MCA, is amended to read:

"7-6-1102.   Short-term obligations authorized. A Except as provided in [section 1], a local government may issue and sell short-term obligations as provided in this part in anticipation of taxes or revenues revenue budgeted to be received and appropriated for expenditure during the fiscal year in which the obligations are issued. The proceeds of the obligations may be expended solely for the purposes for which the taxes or revenues revenue were was appropriated and for costs and expenses incident to the issuance and sale thereof of the obligations. Pending expenditure, the proceeds may be invested as provided by law. The principal and interest on short-term obligations must be repaid from the money derived from the taxes and revenues revenue in anticipation of which they were issued, income from investment of the proceeds of the obligations, and any money otherwise legally available for this purpose."

NEW SECTION. Section 3.  Effective date -- applicability. [This act] is effective July 1, 1997, and applies to short-term obligations issued on or after [the effective date of this act].

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