Senate Bill No. 346

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act establishing the Upper Clark Fork River Basin Natural Resource Damage Board; establishing an Upper Clark Fork River Basin Natural Resource Damage Board account; providing for the Upper Clark Fork River Basin Natural Resource Damage Board to allocate funds from the Upper Clark Fork River Basin Natural Resource Damage Lawsuit; and providing a contingent effective date."

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

NEW SECTION. Section 1.  Purpose. The purpose of [sections 1 through 3 and 5 through 11] is to provide a structure for the governor to allocate funds from a judgment or settlement of the Upper Clark Fork River basin natural resource damage lawsuit.

NEW SECTION. Section 2.  Definition. Unless the context requires otherwise, in [sections 1 through 3 and 5 through 11], "board" means the Upper Clark Fork River basin natural resource damage board provided for in [section 4].

NEW SECTION. Section 3.  Upper Clark Fork River basin natural resource damage board account. (1) There is an Upper Clark Fork River basin natural resource damage board account in the state special revenue fund established in 17-2-102.

(2) There must be deposited into the Upper Clark Fork River basin natural resource damage board account the funds from the judgment or settlement of the Upper Clark Fork River basin natural resource damage lawsuit.

(3) Money is available to the board by appropriation and must be used to carry out the purposes of this part.

NEW SECTION. Section 4.  Upper Clark Fork River basin natural resource damage board -- allocation -- composition. (1) (a) There is an Upper Clark Fork River natural resource damage board of nine members.

(b) The governor shall appoint the Upper Clark Fork River natural resource damage board as provided under 2-15-124.

(2) The Upper Clark Fork River natural resource damage board is attached to the department of natural resources and conservation for administrative purposes only, as prescribed in 2-15-121.

(3) (a) The governor shall select the members of the Upper Clark Fork River natural resource damage board from the natural resource damage area designated by the Upper Clark Fork River basin natural resource damage lawsuit.

(b) The governor shall select members to the Upper Clark Fork River natural resource damage board with expertise in any of the following fields:

(i) business;

(ii) engineering;

(iii) public administration;

(iv) planning;

(v) economic development;

(vi) finance;

(vii) resource management;

(viii) resource conservation; and

(ix) recreation.

(c) Members of the Upper Clark Fork River natural resource damage board must be representative of the public and may not be members of a governmental agency.

(4) Members of the Upper Clark Fork River natural resource damage board shall serve staggered 3-year terms, subject to replacement at the discretion of the governor. The governor shall designate three of the initial members to serve 1-year terms, three of the initial members to serve 2-year terms, and three of the initial members to serve 3-year terms.

(5) The Upper Clark Fork River natural resource damage board shall dissolve once the money from the Upper Clark Fork River basin natural resource damage judgment or settlement has been fully allocated.

NEW SECTION. Section 5.  Presiding officer, meetings, compensation, and facilities. (1) The board shall elect a presiding officer from among its members.

(2) The board shall meet quarterly and may meet at other times as called by the presiding officer or a majority of the members.

(3) Members are entitled to compensation as provided for in 2-15-124(7).

(4) The board shall provide suitable office facilities located within the natural resource damage area designated by the Upper Clark Fork River basin natural resource damage lawsuit.

(5) The board shall provide for necessary staff to carry out the provisions of [sections 1 through 3 and 5 through 11].

NEW SECTION. Section 6.  Board -- general powers. The board may:

(1) adopt rules governing its proceedings;

(2) consider applications for grants from available funds;

(3) issue bonds for indebtedness to be repaid by the principal or interest from the judgment or settlement from the Upper Clark Fork River basin natural resource damage lawsuit or other funds obtained by the board;

(4) consider applications for loans from available funds for periods and interest rates to be determined by the board;

(5) award grants and loans from available funds to:

(a) reimburse a local governmental unit, the state, or a nonprofit corporation for actual costs incurred in pursuing the Upper Clark Fork River basin natural resource damage lawsuit;

(b) reimburse the state for state-supervised projects that directly impact:

(i) the natural resource damage area designated in the Upper Clark Fork River basin natural resource damage lawsuit;

(ii) the population in the natural resource damage area designated in the Upper Clark Fork River basin natural resource damage lawsuit;

(iii) projects that fall outside of the natural resource damage area designated in the Upper Clark Fork River basin natural resource damage lawsuit;

(6) authorize or supervise the investment of money from the judgment or settlement from the Upper Clark Fork River basin natural resource damage lawsuit or other funds obtained by the board;

(7) retain professional consultants and advisers; and

(8) carry out any other actions set forth in the restoration plan pursuant to 43 CFR 11.93 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit.

NEW SECTION. Section 7.  Basis for awarding grants or loans. Grants and loans must be awarded on the basis of:

(1) the restoration plan pursuant to 43 CFR 11.93 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit;

(2)  need;

(3)  degree of severity of impact on the natural resources in the natural resource damage area designated by the Upper Clark Fork River basin natural resource damage lawsuit;

(4)  availability of funds;

(5) mitigation of the damaged natural resources;

(6) economic growth;

(7) positive impact on quality of life; and

(8)  degree of local effort in meeting the needs listed in subsections (1) through (7).

NEW SECTION. Section 8. Priorities for grants and loans. The board shall give priority to grants and loans that:

(1) carry out the directives of the restoration plan pursuant to 43 CFR 11.93 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit;

(2) provide direct restoration, replacement, or mitigation of damaged natural resources;

(3) provide indirect restoration, replacement, or mitigation of damaged natural resources;

(4) promote health and safety;

(5) provide for the infrastructure needs of the natural resource damage area designated in the Upper Clark Fork River basin natural resource damage lawsuit; and

(6) provide for other community needs.

NEW SECTION. Section 9.  Applications for grants and loans. (1) A local governmental unit, the state, or a nonprofit corporation may apply for a grant or a loan to finance a project that meets the needs of the restoration plan pursuant to 43 CFR 11.81 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit.

(2) The applications for grants and loans for personnel costs associated with a project are limited to those directly related to the project and to a reasonable overhead percentage as determined by the board.

(3) The board shall prescribe the form for applications for grants and loans.

NEW SECTION. Section 10.  Limitations on grants and loans. (1) The board may commit itself to the expenditure of funds for a grant for more than 1 year for a single project if the grant does not extend for more than 20 years.

(2) The board may commit itself to the expenditure of funds for a loan for more than 1 year for a single project if:

(a) the loan does not extend for more than 20 years;

(b) the repayment period does not extend beyond 20 years; and

(c) the commitment by the board does not exceed reasonable revenue expectations.

(3) (a) The board may not approve a loan if the source of money for repayment would be derived from property taxes. Repayment may be made from fees, rentals, admissions, use charges, and special assessments.

(b)  The board shall hold all loan contracts within its administrative offices. The board may not sell, assign, or pledge a loan contract to any other entity in a manner that discounts its value to the board or the restoration plan pursuant to 43 CFR 11.93 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit.

(c)  A local governmental unit, the state, or a nonprofit corporation shall use or commit for use the loan money within 1 year of the date of the board's final approval of the loan.

(d)  If a local governmental unit, the state, or a nonprofit corporation does not comply with subsection (3)(c), the entire loan must be repaid within 30 days following expiration of the 1-year period, along with the interest that the loan may have earned with the loan proceeds.

NEW SECTION. Section 11.  Disposition of natural resource damage judgment or settlement funds. The board shall distribute money from the judgment or settlement for the Upper Clark Fork River basin natural resource damage lawsuit in the following order:

(1) to the state to cover the state's legal costs of pursuing the Upper Clark Fork River basin natural resource damage lawsuit pursuant to any contracts governing the state's costs;

(2) to actions delineated in the restoration plan established under 43 CFR 11.93 or any other actions delineated in the settlement or judgment from the Upper Clark Fork River basin natural resource damage lawsuit;

(3) not more than 15% to a state or local agency or a nonprofit corporation to implement natural resource damage restoration, replacement, mitigation, or acquisition outside the natural resource damage area designated by the Upper Clark Fork River basin natural resource damage lawsuit;

(4) not less than 85% to a state or local agency or a nonprofit corporation to implement natural resource damage restoration, replacement, mitigation, or acquisition within the natural resource damage area designated by the Upper Clark Fork River basin natural resource damage lawsuit.

NEW SECTION. Section 12.  Codification instructions. (1) [Sections 1 through 3 and 5 through 11] are intended to be codified as an integral part of Title 75, chapter 1, and the provisions of Title 75, chapter 1, apply to [sections 1 through 3 and 5 through 11].

(2) [Section 4] is intended to be codified as an integral part of Title 2, chapter 15, part 35, and the provisions of Title 2, chapter 15, part 35, apply to [section 4].

NEW SECTION. Section 13.  Effective date. [This act] is effective on the date of the judgment or settlement of the Upper Clark Fork River basin natural resource damage lawsuit.

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