SENATE BILL NO. 55
INTRODUCED BY D. RYAN
BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
A BILL FOR AN ACT ENTITLED: "AN ACT REQUIRING THAT ROYALTIES FROM MINERAL PRODUCTION RIGHTS PURCHASED THROUGH A LOAN FROM THE COAL SEVERANCE TAX PERMANENT FUND IN EXCESS OF THE AMOUNT NECESSARY TO REPAY THE LOAN BE DEPOSITED IN A TRANSFERRED FROM THE GUARANTEE ACCOUNT TO THE SCHOOL FACILITY IMPROVEMENT ACCOUNT RATHER THAN THE GUARANTEE ACCOUNT; CREATING A SCHOOL FACILITY IMPROVEMENT ACCOUNT AND PROVIDING FOR THE USE OF MONEY IN THE ACCOUNT; AMENDING SECTION SECTIONS 17-6-340 AND 20-9-622, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. School facility improvement account. There is a school facility improvement account in the state special revenue fund provided for in 17-2-102. The purpose of the account is to provide money to schools for:
(1) deferred maintenance;
(2) improving energy efficiency in school facilities; and
(3) critical infrastructure in school districts with changing student populations.
Section 2. Section 17-6-340, MCA, is amended to read:
"17-6-340. Purchase of permanent fund mineral estate. The department of natural resources and conservation may purchase the mineral production rights held by the public school fund established in Article X, section 2, of the Montana constitution for fair market value. If the department of natural resources and conservation purchases mineral production rights, any royalty payments received by the board that are not used to reimburse the coal severance tax trust fund for the loan used for purchasing the mineral production rights must be deposited in the guarantee account GUARANTEE ACCOUNT AND TRANSFERRED TO THE school facility improvement account provided for in 20-9-622 [section 1]."
SECTION 3. SECTION 20-9-622, MCA, IS AMENDED TO READ:
"20-9-622. Guarantee account. (1) There is a guarantee account in the state special revenue fund. The guarantee account is intended to:
(a) stabilize the long-term growth of the permanent fund; and
(b) maintain a constant and increasing distributable revenue stream. All realized capital gains and all distributable revenue must be deposited in the guarantee account. Except as provided in subsections (2) and (3), the guarantee account is statutorily appropriated, as provided in 17-7-502, for distribution to school districts through school equalization aid as provided in 20-9-343.
(2) As long as a portion of the coal severance tax loan authorized in section 8, Chapter 418, Laws of 2001, is outstanding, the department of natural resources and conservation shall monthly transfer from the guarantee account to the general fund an amount that represents the amount of interest income that would be earned from the investment of the amount of the loan that is currently outstanding. When the loan is fully paid, all mineral royalties deposited in the guarantee account must be transferred to the school facility improvement account pursuant to 17-6-340.
(3) The revenue distributed through 20-9-534 must be used for the purposes of 20-9-533."
NEW SECTION. Section 4. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 20, chapter 9, and the provisions of Title 20, chapter 9, apply to [section 1].
NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 2007.
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Latest Version of SB 55 (SB0055.02)
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