House Bill No. 584

Introduced By knox, quilici, grosfield, beaudry



A Bill for an Act entitled: "An Act creating an orphan share account for Comprehensive Environmental Cleanup and Responsibility Act sites; allocating certain fines, penalties, resource indemnity trust interest and tax proceeds, and metal mines license tax proceeds to the orphan share account; appropriating funds to the department of environmental quality for reimbursements and orphan share defense costs from the orphan share account; amending sections 15-37-117, 15-38-106, and 15-38-202, MCA; and providing effective dates and a termination date."



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



NEW SECTION. Section 1.  Orphan share state special revenue account. (1) There is an orphan share account in the state special revenue fund established in 17-2-102.

(2) There must be deposited into the orphan share account:

(a) revenue allocated from the metalliferous mines license tax pursuant to 15-37-117;

(b) money in excess of $250,000 a year collected by the department as provided in [House Bill No. 284];

(c) all penalties assessed pursuant to [LC 759];

(B) ALL PENALTIES ASSESSED PURSUANT TO [SENATE BILL NO. 377];

(d)(C) funds received from the interest income of the resource indemnity trust fund pursuant to 15-38-202;

(e)(D) funds allocated from the resource indemnity ground water assessment tax proceeds provided in 15-38-106;

(f)(E) unencumbered funds remaining in the abandoned mines state special revenue account provided for in section 19, Chapter 584, Laws of 1995, as of June 30, 1997 1999;

(g)(F) money expended by the orphan share account to provide orphan share defense costs later attributed to a potentially liable party under 75-10-715; and

(h)(G) interest income earned on the account.

(3) Money in the account is available to the department by appropriation and must be used to reimburse remedial action costs claimed pursuant to [LC 759] and to pay costs incurred by the department in defending the orphan share pursuant to [LC 759]. THE FUNDS ALLOCATED IN SUBSECTIONS (2)(C) AND (2)(D) MAY NOT BE USED FOR ADMINISTRATIVE EXPENSES.



Section 2.  Section 15-37-117, MCA, is amended to read:

"15-37-117.   (Temporary) Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501, be allocated as follows:

(a)  to the credit of the general fund of the state, 58% of total collections each year;

(b)  to the state special revenue fund to the credit of a hard-rock mining impact trust account, 1.5% of total collections each year;

(c)  to the abandoned mines state special revenue account provided for in section 19, Chapter 584, Laws of 1995, 8.5% of total collections each year;

(d)  to the ground water assessment account established in 85-2-905, 2.2% of total collections each year;

(e)  to the reclamation and development grants program state special revenue account, 4.8% of total collections each year; and

(f)  to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan, or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:

(i)  not less than 40% to the county hard-rock mine trust reserve account established in 7-6-2225; and

(ii) all money not allocated to the account pursuant to subsection (1)(f)(i) to be further allocated as follows:

(A)  33 1/3% is allocated to the county for planning or economic development activities;

(B)  33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

(C)  33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

(2)  When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(f) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

(3)  The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(f). The allocation to the county described by subsection (1)(f) is a statutory appropriation pursuant to 17-7-502. (Terminates June 30, 1997--sec. 27, Ch. 584, L. 1995.)

15-37-117.   (Effective July 1, 1997) Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501, be allocated as follows:

(a)  to the credit of the general fund of the state, 58% of total collections each year;

(b)  to the state special revenue fund to the credit of a hard-rock mining impact trust account, 1.5% of total collections each year;

(c)  to the state resource indemnity trust fund, 15.5% of total collections each year to the orphan share account established in [section 1], 8.5% of total collections each year;

(d)  to the ground water assessment account established in 85-2-905, 2.2% of total collections each year;

(e)  to the reclamation and development grants program state special revenue account, 4.8% of total collections each year; and

(f)  to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan, or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:

(i)  not less than 40% to the county hard-rock mine trust reserve account established in 7-6-2225; and

(ii) all money not allocated to the account pursuant to subsection (1)(f)(i) to be further allocated as follows:

(A)  33 1/3% is allocated to the county for planning or economic development activities;

(B)  33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

(C)  33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

(2)  When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(f) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

(3)  The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(f). The allocation to the county described by subsection (1)(f) is a statutory appropriation pursuant to 17-7-502."



Section 3.  Section 15-38-106, MCA, is amended to read:

"15-38-106.   Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before March 31, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

(2)  The department shall, in accordance with the provisions of 15-1-501(6), deposit the proceeds of the tax in the resource indemnity trust fund of the nonexpendable trust fund type, except that:

(a)  14.1% of the proceeds must be deposited in the ground water assessment account established by 85-2-905;

(b)  10% of the proceeds must be deposited in the renewable resource grant and loan program state special revenue account established by 85-1-604; and

(c)  30% of the proceeds must be deposited in the reclamation and development grants account established by 90-2-1104; and

(d) if there are sufficient funds remaining, at the beginning of each fiscal year, there is allocated from the proceeds of the tax $200,000 to be deposited in the orphan share account established in [section 1].

(3)  Every person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

(4)  The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer."



Section 4.  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 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 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.

(c) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund $200,000 to be deposited in the orphan share account established in [section 1].

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

(i)  Thirty-six percent of the interest income of 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 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 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."



NEW SECTION. Section 5.  Appropriation. There is appropriated to the department of environmental quality from the orphan share account provided for in [section 1], to fund reimbursements for orphan shares at Comprehensive Environmental Cleanup and Responsibility Act sites and department costs in defending the orphan shares, $1 million $825,000 $675,000 in fiscal year 1998 and $1.3 $1.325 $1.245 million in fiscal year 1999.



NEW SECTION. Section 6.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 75, chapter 10, and the provisions of Title 75, chapter 10, apply to [section 1].



NEW SECTION. Section 7.  Coordination instruction. (1) If Senate Bill No. 7 and [this act] are both passed and approved, then the amendments to 15-37-117 in Senate Bill No. 7, relating to the allocation of the metal mines license tax, are IS void.

(2) If __ Bill __ [LC 759] SENATE BILL NO. 377 and [this act] are both passed and approved, then [sections 1 through 4 of this act] are void. If __ Bill __ [LC 759] SENATE BILL NO. 377 fails, then [this act] is void.

(3) If House Bill No. 284 fails then [section 1(2)(b) of this act] is void and the subsections must be renumbered.



NEW SECTION. Section 8.  Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.



NEW SECTION. Section 9.  Effective dates. (1) Subject to [section 7], [sections 1 through 3, 5 through 8, and 10 and this section] are effective July 1, 1997.

(2) Subject to [section 7], [section 4] is effective July 1, 2000 1999.



NEW SECTION. Section 10.  Termination. [This act] terminates July 1, 2005.

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