_________ Bill No. _______
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act establishing that payments made on behalf of irrigation districts or drainage districts may, at the discretion of the county treasurer, be made by county warrant; amending sections 7-6-2111, 85-7-2001, 85-7-2111, 85-7-2137, 85-7-2157, 85-7-2158, 85-7-2201, 85-8-312, and 85-8-350, MCA; and providing an effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 7-6-2111, MCA, is amended to read:
"7-6-2111. Duties of county treasurer. (1) The county treasurer:
(a) must shall receive all money belonging to the county and all other money directed to be paid to the treasurer by law,
safely keep the money, and apply and pay the money out, and account for the money as required by law;
(b) shall keep an account of the receipt and expenditures of the money in books provided for the purpose, in which must be entered:
(i) the amount, the time when, from whom, and on what account all money was received;
(ii) the amount, time when, to whom, and on what account all disbursements were made;
(c) shall keep books so that the amounts received and paid out on account of separate funds or specific appropriations are exhibited in separate and distinct accounts, with the whole receipts and expenditures shown in one general or cash account;
(d) may not enter money received for the current year on the treasurer's account with the county for the past fiscal year until after the treasurer's annual settlement for the past year has been made with the county clerk;
(e) shall disburse the county money only on county warrants issued by the county clerk, based on orders of the board of county commissioners, or as otherwise provided by law.
(2) With respect to irrigation districts created pursuant to Title 85, chapter 7, and drainage districts created pursuant to Title 85, chapter 8, the county treasurer may require that all payments made on behalf of an irrigation district or a drainage district are by county warrant.
(3) This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."
Section 2. Section 85-7-2001, MCA, is amended to read:
"85-7-2001. Limitations on debt-incurring power. (1) The board of commissioners or other officers of the district may not incur any debt or liability, either by issuing bonds or otherwise, except as provided in this chapter.
(2) An irrigation district may not become indebted, in any manner or for any purpose in any one year, in an amount exceeding 18.75% of the assessed valuation of the district, except as provided in subsection (4).
(3) An irrigation district may not incur indebtedness, in any manner or for any purpose in any one year, on behalf of any subdistrict in the district in an amount exceeding 18.75% of the assessed valuation of the subdistrict, except as provided in subsection (4).
(4) (a) For The board of commissioners may, in any 1 year, incur the indebtedness of as many dollars as there are acres in
the district and may have warrants issued on behalf of the district:
(i) for the purpose of organization;
(ii) for any of the immediate purposes of this chapter;
(iii) to make or purchase surveys, plans, and specifications;
(iv) for stream gauging and gathering data; or
(v) to make any repairs occasioned by any a calamity or other unforeseen contingency, the board of commissioners may, in
any one year, incur the indebtedness of as many dollars as there are acres in the district and may issue warrants of the
district.
(b) For the purpose of organization, for any of the immediate purposes of this chapter, or to meet the expenses occasioned
by any calamity or other unforeseen contingency, the board of commissioners may, in any one year, incur, (in addition to
the 18.75% limitations of subsections (2) and (3)), an additional indebtedness not exceeding 12.5% of the assessed
valuation of the district and may issue have warrants issued on behalf of the district therefor for the indebtedness, if any.
(c) The limitations of subsections (1) through (3) do not apply to warrants issued for unpaid interest on the valid bonds of any irrigation district.
(d) The limitations of subsections (1) through (3) do not apply to bonds or obligations issued to the state of Montana, the United States, or any department, agency, or instrumentality of these governments if the bonds or obligations are issued:
(i) pursuant to a loan program specifically authorized by the legislature; or
(ii) to finance in whole or in part a project authorized by the legislature.
(e) The limitations of subsections (1) through (3) do not apply to any bonds issued under this chapter pursuant to a provision that expressly supersedes the limitation.
(5) Any debt or liability incurred in excess of the limitations provided by the irrigation district laws is void."
Section 3. Section 85-7-2111, MCA, is amended to read:
"85-7-2111. Refunds and cancellation of excess taxes. Upon the determination provided for in 85-7-2107 through
85-7-2113, the board of commissioners may refund any taxes paid or cancel any unpaid taxes or assessments levied upon
an acreage in excess of that so the amount fixed by the order of determination and whenever necessary may issue have
warrants therefor issued for refunds."
Section 4. Section 85-7-2137, MCA, is amended to read:
"85-7-2137. Failure to levy or collect tax or assessment. In the event that for any reason a special tax or assessment
provided for cannot or may is not be levied and collected in time to meet any interest falling due on any bonds issued, the
board of commissioners shall provide for and pay such the interest when due, either out of any of the funds in hand in the
treasury of the district not otherwise appropriated or by warrants drawn on behalf of the board against the next district tax
or assessment levied or to be levied. These warrants shall be Warrants issued under this section are in addition to those
warrants mentioned in 85-7-2001."
Section 5. Section 85-7-2157, MCA, is amended to read:
"85-7-2157. Purchase of lands by district -- revolving fund, credits, and expenditures. (1) At all sales of all lands
Whenever land is sold for delinquent taxes where all or a portion of such and the delinquent taxes are include taxes and
assessments levied and assessed by any an irrigation district against the lands land to be sold, the commissioners of such
the irrigation district, if there be no other bidder for such land at such tax sale, may, if there is no other bidder, bid therefor
for the land the total amount of all delinquent taxes and assessments, penalty, and interest against such the land, and
thereupon. Subsequently, the county treasurer shall strike off said lands to such irrigation district and issue certificates a
certificate of tax sale to said the irrigation district in the same manner as such certificates of tax sales are issued to other
purchasers. For the purpose of paying such the taxes, assessments, interest, and penalties, the commissioners of such the
irrigation district shall have the power and authority to may create by resolution a fund to be known and designated as the
revolving fund for the purchase of tax certificates and titles. and to The commissioners of the district may provide funds for
such the revolving fund by levy, bond issue, or otherwise. The commissioners of the district may pay such the taxes,
assessments, interest, and penalties by issuing having a warrant to the county treasurer issued to offset the taxes,
assessments, interest, or penalties. The warrant must be drawn against such the revolving fund, provided that there shall be
is sufficient money in such the fund to pay same the taxes, assessments, interest, or penalties in full upon demand.
(2) When Whenever taxes are paid by the district as provided in this part, the county treasurer shall distribute that the
portion of said the tax belonging to the irrigation district to the several funds as designated in the tax levy and assessment.
However, if the board of commissioners of the irrigation district shall file files with the county treasurer a certified copy of
a resolution passed by such the district commissioners requesting nondistribution by the county treasurer of the portion of
the tax belonging to the district, the county treasurer shall may not distribute that the portion of said the tax belonging to the
irrigation district to the several funds as designated in the tax levy and assessment, but and the total amount due the
irrigation district shall must be credited by him the treasurer to the revolving fund above specified. In such event, at the
time of the sale by the district of the tax sale certificate or of the. If a district sells property obtained through such by a tax
sale certificate, such all funds as are realized from such the sale of the property and all rent received from the property must
be deposited with by the county treasurer, together with the rentals received from the property, and he shall credit the
proceeds of such redemption sale or rental pro rata to the several funds of the district in accordance with the original levy or
assessment.
(3)(a) At the time of redemption or of the sale by the district of the tax sale certificate or of the property obtained through
such the certificate, such all funds as are realized from the redemption or sale and all rent received from the property must
be deposited with by the county treasurer, together with rentals received from the property. He shall credit the proceeds of
such redemption, sale, or rentals to the above specified in the revolving fund to such the extent as may be required, with the
credit provided for above, in subsection (2) to reimburse said the revolving fund in full, if the sum realized permits, the
overplus, if any, to.
(b) If funds remain after the allocation provided in subsection (3)(a), the remaining funds must be credited to the several funds of the district in accordance with the original levy and assessment.
(4) No expenditures shall Expenditures may not be made from the revolving fund except for the purpose as herein
specified, and when, by resolution of in this section.
(5) If the board of irrigation district commissioners, such fund shall be deemed declares, by resolution, that a revolving
fund is inactive, the balance, if any, remaining in said the fund shall must be transferred to a sinking fund to be applied
upon to any indebtedness which may have been incurred by the district by reason of the creation of such the revolving fund,
if any there may be."
Section 6. Section 85-7-2158, MCA, is amended to read:
"85-7-2158. Purchase of lands by district -- tax sale certificates and payment. (1) Any An irrigation district may:
(a) purchase the certificate of tax sale issued to any county for lands sold at tax sale against which any of its the district's
taxes and assessments are delinquent; or
(b) if a deed therefor for land sold for delinquent taxes has been issued to the county, purchase such lands the land from the
county by paying to the county treasurer of the county making the sale all state, county, city, school district, and other
delinquent taxes together with penalty, interest, and costs of publication and sale to the county treasurer of the county
making the sale.
(2) Such payment shall be A purchase under subsection (1) made by the commissioners of such an irrigation district
issuing and delivering to the county treasurer must be made by a warrant drawn against the revolving fund of said the
district; making the purchase to the county from which the land is purchased, provided there shall be is sufficient money in
said the fund to pay same for the purchase in full upon demand.
(3)(a) Thereupon, such Except as provided in subsection (3)(b), the county treasurer shall assign such the certificate of tax
sale to such the irrigation district as in the case of the purchase thereof by any other person, or the commissioners of the
county shall convey such lands to said district in case.
(b) If a tax deed therefor has been issued to the county for the land, the board of county commissioners shall convey the
land to the irrigation district."
Section 7. Section 85-7-2201, MCA, is amended to read:
"85-7-2201. Limitation on actions attacking decrees. No A suit, action, or proceeding shall may not be brought in any
court in this state attacking the validity or regularity of any order or decree of the court purporting to establish a district
hereunder under this part or correcting or amending any order or decree creating a district after the expiration of 6 months
from the date of the recording of the order establishing the district or the order correcting or amending the same the order or
decree. Nothing contained in this This section shall be deemed may not be considered or construed to confirm, approve, or
validate any warrant issued on behalf of, disbursement made for, or contract entered into for the expenditure of money by
the board of commissioners on behalf of any district."
Section 8. Section 85-8-312, MCA, is amended to read:
"85-8-312. Custody of funds. The county treasurer of the county wherein within which the court having jurisdiction of
such the district is located shall be is the custodian of all funds belonging to the district, and he. The treasurer of that
county shall pay out such funds upon warrants drawn by at the direction of the board of commissioners of such the district,
except that the bonds of said the district and the interest coupons thereon shall be on the bonds are payable as they mature,
on presentation to such the treasurer."
Section 9. Section 85-8-350, MCA, is amended to read:
"85-8-350. Judgment on dismissal of proceedings -- assessment of costs. (1) In case If the petition or proceedings are
dismissed as provided in 85-8-327, a judgment shall must be entered for the costs, expenses, and liabilities incurred in said
the proceedings against the petitioners and in favor of the commissioners, but for the benefit of those any person who have
has rendered services or advanced money in the prosecution of said the proceedings or have who has recovered costs on
successful contests therein in the proceedings.
(2) In case If the proceedings are dismissed at any time or the district is discontinued for any cause subsequent to the time
provided in 85-8-327, a judgment shall must be entered directing the commissioners of the district to assess the costs,
expenses, and liabilities incurred in said the proceedings, up to and including the time of such dismissal and or
discontinuation, on an acreage basis against the lands in said the district, which. The assessment shall be is a lien upon said
lands the land from the date of said the judgment and is superior to the lien of any other judgment, mortgage, or
construction lien against said lands the land. Said The assessment shall must be verified by the commissioners of the
district the same as assessments to pay costs of construction. Such The assessments shall must be spread upon the tax rolls
of the counties in which said the district is situated and shall must be collected by the county treasurers of such the counties
the same as assessments to pay costs of construction are collected. Such The assessments shall be are payable on or before
November 30 following the date upon which they are so spread upon the assessment roll of such the counties. The money
so collected shall must be paid out upon warrants issued by the commissioners of the district to those to any person who
have has rendered service or advanced money in connection with said the district or have who has recovered costs on
successful contests therein in the district. Should such If the assessment, for any cause, be is not sufficient for all such the
costs, expenses, and liabilities, then additional assessments shall must be made and collected in like the same manner until
sufficient funds have been raised to pay all such of the costs, expenses, and liabilities."
NEW SECTION. Section 10. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
NEW SECTION. Section 11. Effective date. [This act] is effective July 1, 1997.
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