SENATE BILL NO. 169
INTRODUCED BY J. LASLOVICH
BY REQUEST OF THE LAW AND JUSTICE INTERIM COMMITTEE
AN ACT ADJUSTING THE REDUCTION IN THE BASE ENTITLEMENT SHARE, FOR FUNDING RESPONSIBILITIES FOR PUBLIC DEFENDER SERVICES, FOR CASCADE COUNTY, FLATHEAD COUNTY, GALLATIN COUNTY, LEWIS AND CLARK COUNTY, MISSOULA COUNTY, AND YELLOWSTONE COUNTY; AMENDING SECTION 15-1-121, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE.
WHEREAS, the Legislature established the statewide Montana public defender system by the passage of Senate Bill No. 146, Chapter 449, Laws of 2005; and
WHEREAS, the Legislature provided that funding responsibilities for public defender services through the statewide system will be shared by state and local government and that the counties', consolidated governments', and cities' share of costs will be paid through a reduction in the county's, consolidated government's, or city's base entitlement share under section 15-1-121, MCA; and
WHEREAS, the Legislature provided for an audit of the actual costs for public defender services in District Court and Justice's Court proceedings incurred from July 1, 1998, through June 30, 2004, in Cascade County, Flathead County, Gallatin County, Lewis and Clark County, Missoula County, and Yellowstone County and required that the audit results be reported to the Governor's budget office, the Legislative Audit Committee, the Legislative Finance Committee, and the Law and Justice Interim Committee; and
WHEREAS, the Legislature directed the Law and Justice Interim Committee to prepare legislation to be introduced in the 2007 legislative session to amend section 15-1-121, MCA, to provide that the base entitlement share for Cascade County, Flathead County, Gallatin County, Lewis and Clark County, Missoula County, and Yellowstone County be adjusted by an appropriate amount arrived at based on the audit and in consultation with the Legislative Audit Committee, the Legislative Finance Committee, representatives of the counties, the Governor's budget office, the American Civil Liberties Union, the Attorney General's office, and all other interested and participating parties; and
WHEREAS, the audit was performed and reported as required; and
WHEREAS, the Law and Justice Interim Committee, in consultation with interested parties, has determined the appropriate amounts to be used to adjust the base entitlement share for each of the named counties; and
WHEREAS, the Law and Justice Interim Committee recommends the adjustments to the base entitlement share for each of the named counties as proposed in this act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-1-121, MCA, is amended to read:
"15-1-121. Entitlement share payment -- appropriation. (1) The amount calculated pursuant to this subsection, as adjusted pursuant to subsection (3)(a)(i), is each local government's base entitlement share. The department shall estimate the total amount of revenue that each local government received from the following sources for the fiscal year ending June 30, 2001:
(a) personal property tax reimbursements pursuant to sections 167(1) through (5) and 169(6), Chapter 584, Laws of 1999;
(b) vehicle, boat, and aircraft taxes and fees pursuant to:
(i) Title 23, chapter 2, part 5;
(ii) Title 23, chapter 2, part 6;
(iii) Title 23, chapter 2, part 8;
(iv) 61-3-317;
(v) 61-3-321;
(vi) Title 61, chapter 3, part 5, except for 61-3-509(3), as that subsection read prior to the amendment of 61-3-509 in 2001;
(vii) Title 61, chapter 3, part 7;
(viii) 5% of the fees collected under 61-10-122;
(ix) 61-10-130;
(x) 61-10-148; and
(xi) 67-3-205;
(c) gaming revenue pursuant to Title 23, chapter 5, part 6, except for the permit fee in 23-5-612(2)(a);
(d) district court fees pursuant to:
(i) 25-1-201, except those fees in 25-1-201(1)(d), (1)(g), and (1)(j);
(ii) 25-1-202;
(iii) 25-1-1103;
(iv) 25-9-506; and
(v) 27-9-103;
(e) certificate of title fees for manufactured homes pursuant to 15-1-116;
(f) financial institution taxes collected pursuant to the former provisions of Title 15, chapter 31, part 7;
(g) all beer, liquor, and wine taxes pursuant to:
(i) 16-1-404;
(ii) 16-1-406; and
(iii) 16-1-411;
(h) late filing fees pursuant to 61-3-220;
(i) title and registration fees pursuant to 61-3-203;
(j) veterans' cemetery license plate fees pursuant to 61-3-459;
(k) county personalized license plate fees pursuant to 61-3-406;
(l) special mobile equipment fees pursuant to 61-3-431;
(m) single movement permit fees pursuant to 61-4-310;
(n) state aeronautics fees pursuant to 67-3-101; and
(o) department of natural resources and conservation payments in lieu of taxes pursuant to Title 77, chapter 1, part 5.
(2) (a) From the amounts estimated in subsection (1) for each county government, the department shall deduct fiscal year 2001 county government expenditures for district courts, less reimbursements for district court expenses, and fiscal year 2001 county government expenditures for public welfare programs to be assumed by the state in fiscal year 2002.
(b) The amount estimated pursuant to subsections (1) and (2)(a) is each local government's base year component. The sum of all local governments' base year components is the base year entitlement share pool. For the purpose of calculating the sum of all local governments' base year components, the base year component for a local government may not be less than zero.
(3) (a) The base year entitlement share pool must be increased annually by a growth rate as provided for in this subsection (3). The amount determined through the application of annual growth rates is the entitlement share pool for each fiscal year. By October 1 of each even-numbered year, the department shall calculate the growth rate of the entitlement share pool for each year of the next biennium in the following manner:
(i) Before applying the growth rate for fiscal year 2007 to determine the fiscal year 2007 entitlement share payments, the department shall subtract from the fiscal year 2006 entitlement share payments the following amounts:
Beaverhead $6,972
Big Horn $52,551
Blaine $13,625
Broadwater $2,564
Carbon $11,537
Carter $407
Cascade $157,151 $100,000
Chouteau $3,536
Custer $7,011
Daniels $143
Dawson $3,893
Fallon $1,803
Fergus $9,324
Flathead $33,655 $100,000
Gallatin $222,029 $160,000
Garfield $91
Glacier $3,035
Golden Valley $2,282
Granite $4,554
Hill $31,740
Jefferson $5,700
Judith Basin $1,487
Lake $38,314
Lewis and Clark $247,886 $160,000
Liberty $152
Lincoln $3,759
Madison $8,805
McCone $1,651
Meagher $2,722
Mineral $2,361
Missoula $172,600 $200,000
Musselshell $23,275
Park $6,582
Petroleum $36
Phillips $653
Pondera $10,270
Powder River $848
Powell $5,146
Prairie $717
Ravalli $93,090
Richland $3,833
Roosevelt $9,526
Rosebud $19,971
Sanders $30,712
Sheridan $271
Stillwater $12,117
Sweet Grass $2,463
Teton $5,560
Toole $7,113
Treasure $54
Valley $6,899
Wheatland $918
Wibaux $72
Yellowstone $266,644 $270,000
Anaconda-Deer Lodge $20,707
Butte-Silver Bow $53,057
Alberton $675
Bainville $258
Baker $2,828
Bearcreek $143
Belgrade $11,704
Belt $1,056
Big Sandy $1,130
Big Timber $2,910
Billings $163,499
Boulder $2,340
Bozeman $52,805
Bridger $1,303
Broadus $766
Broadview $258
Brockton $414
Browning $1,830
Cascade $1,374
Chester $1,430
Chinook $2,275
Choteau $3,050
Circle $1,018
Clyde Park $572
Colstrip $4,090
Columbia Falls $6,805
Columbus $3,245
Conrad $4,562
Culbertson $1,216
Cut Bank $5,316
Darby $1,348
Deer Lodge $5,708
Denton $503
Dillon $6,928
Dodson $194
Drummond $561
Dutton $661
East Helena $2,888
Ekalaka $689
Ennis $1,518
Eureka $1,733
Fairfield $1,120
Fairview $1,152
Flaxville $143
Forsyth $3,286
Fort Benton $2,579
Fort Peck $393
Froid $328
Fromberg $855
Geraldine $457
Glasgow $5,361
Glendive $8,099
Grass Range $254
Great Falls $96,422
Hamilton $7,148
Hardin $5,920
Harlem $1,422
Harlowton $1,678
Havre $16,223
Helena $45,877
Hingham $263
Hobson $397
Hot Springs $912
Hysham $482
Ismay $43
Joliet $1,006
Jordan $606
Judith Gap $263
Kalispell $28,144
Kevin $304
Laurel $10,804
Lavina $361
Lewistown $10,170
Libby $4,475
Lima $397
Livingston $12,145
Lodge Grass $889
Malta $3,389
Manhattan $2,485
Medicine Lake $410
Melstone $234
Miles City $14,152
Missoula $104,264
Moore $319
Nashua $536
Neihart $149
Opheim $180
Outlook $125
Philipsburg $1,612
Pinesdale $1,413
Plains $2,007
Plentywood $3,185
Plevna $225
Polson $7,722
Poplar $1,544
Red Lodge $3,903
Rexford $263
Richey $309
Ronan $3,262
Roundup $3,280
Ryegate $465
Saco $354
Scobey $1,798
Shelby $5,677
Sheridan $1,150
Sidney $7,747
Stanford $737
Stevensville $3,063
St. Ignatius $1,367
Sunburst $709
Superior $1,521
Terry $1,011
Thompson Falls $2,272
Three Forks $3,130
Townsend $3,286
Troy $1,654
Twin Bridges $695
Valier $817
Virginia City $223
Walkerville $1,183
West Yellowstone $2,083
Westby $263
White Sulphur Springs $1,734
Whitefish $9,932
Whitehall $1,889
Wibaux $893
Winifred $259
Winnett $314
Wolf Point $4,497
(ii) The department shall calculate the average annual growth rate of the Montana gross state product, as published by the bureau of economic analysis of the United States department of commerce, for the following periods:
(A) the last 4 calendar years for which the information has been published; and
(B) the 4 calendar years beginning with the year before the first year in the period referred to in subsection (3)(a)(ii)(A).
(iii) The department shall calculate the average annual growth rate of Montana personal income, as published by the bureau of economic analysis of the United States department of commerce, for the following periods:
(A) the last 4 calendar years for which the information has been published; and
(B) the 4 calendar years beginning with the year before the first year in the period referred to in subsection (3)(a)(iii)(A).
(b) (i) The entitlement share pool growth rate for the first year of the biennium must be the following percentage of the average of the growth rates calculated in subsections (3)(a)(ii)(B) and (3)(a)(iii)(B):
(A) for counties, 54%;
(B) for consolidated local governments, 62%; and
(C) for incorporated cities and towns, 70%.
(ii) The entitlement share pool growth rate for the second year of the biennium must be the following percentage of the average of the growth rates calculated in subsections (3)(a)(ii)(A) and (3)(a)(iii)(A):
(A) for counties, 54%;
(B) for consolidated local governments, 62%; and
(C) for incorporated cities and towns, 70%.
(4) As used in this section, "local government" means a county, a consolidated local government, an incorporated city, and an incorporated town. A local government does not include a tax increment financing district provided for in subsection (6). For purposes of calculating the base year component for a county or consolidated local government, the department shall include the revenue listed in subsection (1) for all special districts within the county or consolidated local government. The county or consolidated local government is responsible for making an allocation from the county's or consolidated local government's share of the entitlement share pool to each special district within the county or consolidated local government in a manner that reasonably reflects each special district's loss of revenue sources listed in subsection (1).
(5) (a) The entitlement share pools calculated in this section and the block grants provided for in subsection (6) are statutorily appropriated, as provided in 17-7-502, from the general fund to the department for distribution to local governments. Each local government is entitled to a pro rata share of each year's entitlement share pool based on the local government's base component in relation to the base year entitlement share pool. The distributions must be made on a quarterly basis.
(b) (i) The growth amount is the difference between the entitlement share pool in the current fiscal year and the entitlement share pool in the previous fiscal year. For the purposes of subsection (5)(b)(ii)(A), a county with a negative base year component has a base year component of zero. The growth factor in the entitlement share must be calculated separately for:
(A) counties;
(B) consolidated local governments; and
(C) incorporated cities and towns.
(ii) In each fiscal year, the growth amount for counties must be allocated as follows:
(A) 50% of the growth amount must be allocated based upon each county's percentage of the base year entitlement share pool for all counties; and
(B) 50% of the growth amount must be allocated based upon the percentage that each county's population bears to the state population not residing within consolidated local governments as determined by the latest interim year population estimates from the Montana department of commerce as supplied by the United States bureau of the census.
(iii) In each fiscal year, the growth amount for consolidated local governments must be allocated as follows:
(A) 50% of the growth amount must be allocated based upon each consolidated local government's percentage of the base year entitlement share pool for all consolidated local governments; and
(B) 50% of the growth amount must be allocated based upon the percentage that each consolidated local government's population bears to the state's total population residing within consolidated local governments as determined by the latest interim year population estimates from the Montana department of commerce as supplied by the United States bureau of the census.
(iv) In each fiscal year, the growth amount for incorporated cities and towns must be allocated as follows:
(A) 50% of the growth amount must be allocated based upon each incorporated city's or town's percentage of the base year entitlement share pool for all incorporated cities and towns; and
(B) 50% of the growth amount must be allocated based upon the percentage that each city's or town's population bears to the state's total population residing within incorporated cities and towns as determined by the latest interim year population estimates from the Montana department of commerce as supplied by the United States bureau of the census.
(v) In each fiscal year, the amount of the entitlement share pool not represented by the growth amount is distributed to each local government in the same manner as the entitlement share pool was distributed in the prior fiscal year.
(6) (a) If a tax increment financing district was not in existence during the fiscal year ending June 30, 2000, then the tax increment financing district is not entitled to any block grant. If a tax increment financing district referred to in subsection (6)(b) terminates, then the block grant provided for in subsection (6)(b) terminates.
(b) One-half of the payments provided for in this subsection (6)(b) must be made by November 30 and the other half by May 31 of each year. Subject to subsection (6)(a), the entitlement share for tax increment financing districts is as follows:
Cascade Great Falls - downtown &# 160; 0; $468,966< /p>
Deer Lodge TIF District 1 60; & #160; 0; &# 160;3,148
Deer Lodge TIF District 2 60; & #160; 0; &# 160;3,126
Flathead Kalispell - District 1 60; & #160; 0; 758,359
Flathead Kalispell - District 2 60; & #160; 0; 5,153
Flathead Kalispell - District 3 60; & #160; 0; 41,368
Flathead Whitefish District 0; &# 160; 0; 164,660
Gallatin Bozeman - downtown &# 160; 0; &# 160; 34,620
Lewis and Clark Helena - #2 &# 160; 0; &# 160; 731,614
Missoula Missoula - 1-1B & 1-1C 0; &# 160; 1,100,507
Missoula Missoula - 4-1C 0; &# 160; 33,343
Silver Bow Butte - uptown 0; &# 160; 0; 283,801
Yellowstone Billings 60;436,815
(7) The estimated base year entitlement share pool and any subsequent entitlement share pool for local governments do not include revenue received from countywide transportation block grants or from countywide retirement block grants.
(8) (a) If revenue that is included in the sources listed in subsections (1)(b) through (1)(o) is significantly reduced, except through legislative action, the department shall deduct the amount of revenue loss from the entitlement share pool beginning in the succeeding fiscal year and the department shall work with local governments to propose legislation to adjust the entitlement share pool to reflect an allocation of the loss of revenue.
(b) For the purposes of subsection (8)(a), a significant reduction is a loss that causes the amount of revenue received in the current year to be less than 95% of the amount of revenue received in the base year.
(9) A three-fifths vote of each house is required to reduce the amount of the entitlement share calculated pursuant to subsections (1) through (3).
(10) When there has been an underpayment of a local government's share of the entitlement share pool, the department shall distribute the difference between the underpayment and the correct amount of the entitlement share. When there has been an overpayment of a local government's entitlement share, the local government shall remit the overpaid amount to the department.
(11) A local government may appeal the department's estimation of the base year component, the entitlement share pool growth rate, or a local government's allocation of the entitlement share pool, according to the uniform dispute review procedure in 15-1-211.
(12) A payment required pursuant to this section may not be offset by a debt owed to a state agency by a local government in accordance with Title 17, chapter 4, part 1."
Section 2. Effective date. [This act] is effective on passage and approval.
Section 3. Applicability. [This act] applies to entitlement share payments under 15-1-121 made in fiscal year 2007 and subsequent fiscal years. The department of revenue shall adjust the fourth quarterly payments for fiscal year 2007 to reflect the base entitlement share for each county as adjusted in [this act].
- END -
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