20-9-518. (Effective July 1, 2013) County school oil and natural gas impact fund. (1) The governing body of a county receiving an allocation under 20-9-104(6) and 20-9-310(7) shall establish a county school oil and natural gas impact fund.
     (2) Money received by a county pursuant to 20-9-104(6) and 20-9-310(7) must remain in the fund and may not be appropriated by the governing body until:
     (a) the amount of oil and natural gas production taxes received by a school district for the fiscal year is 30% or less of the amount of the average received by the district in the previous 4 fiscal years;
     (b) the average price of oil is $50 a barrel or less for the fiscal year; or
     (c) the production of oil in the county drops 50% or more below the average oil production in the county during the immediately preceding 5-year period.
     (3) Within 30 days of any of the circumstances described in subsections (2)(a) through (2)(c) occurring, the governing body of the county shall allocate 80% of the money proportionally to affected high school districts and elementary school districts in the county.
     (4) The governing body of the county may use 20% of the money in the fund to:
     (a) pay for outstanding capital project bonds or other expenses incurred prior to the reduction in the price of oil described in subsection (2)(b);
     (b) offset property tax levy increases that are directly caused by the cessation or reduction of oil and natural gas activity;
     (c) promote diversification and development of the economic base within the jurisdiction;
     (d) attract new industry to the area impacted by the changes in oil and natural gas activity described in subsection (2); or
     (e) provide cash incentives for expanding the employment base of the area impacted by the changes in oil and natural gas activity described in subsection (2).
     (5) Except as provided in subsection (4)(b), money held in the fund may not be considered as fund balance for the purpose of reducing mill levies.
     (6) Money in the fund must be invested as provided by law. Interest and income from the investment of money in the fund must be credited to the fund.

     History: En. Sec. 10, Ch. 418, L. 2011.