2017 Montana Legislature

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HOUSE BILL NO. 422

INTRODUCED BY R. COOK, L. JONES

 

AN ACT GENERALLY REVISING LAWS RELATED TO LOCAL GOVERNMENT; WITHHOLDING CERTAIN PAYMENTS TO A LOCAL GOVERNMENT UNDER CERTAIN CIRCUMSTANCES; REQUIRING THE ATTORNEY GENERAL TO REVIEW COMPLAINTS CONCERNING THE ALLEGED OFFICIAL MISCONDUCT OF LOCAL GOVERNMENT PUBLIC OFFICERS UNDER CERTAIN CIRCUMSTANCES; AMENDING SECTIONS 2-7-517, 15-1-121, 15-36-331, 15-36-332, 15-37-117, 15-39-110, AND 20-9-310, MCA; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     Section 1.  Official misconduct -- evidential review. The attorney general shall review a complaint referred from a county attorney concerning alleged misconduct of a local government public officer pursuant to [section 2] or an independent complaint made to the attorney general concerning the alleged misconduct of a local government public officer and any evidence concerning the officer's alleged misconduct. After reviewing the complaint, the attorney general may instruct the county attorney to diligently prosecute the officer as provided by 2-15-501(5), bring an action against the officer as provided in 45-7-401, or decline to prosecute the officer.

 

     Section 2.  Referral of complaint. If a county attorney receives a complaint concerning official misconduct as provided in 45-7-401 of a local government public officer and the county attorney does not commence an action pursuant to 45-7-401(3), the county attorney must refer the complaint and any relevant evidence for the attorney general's review as provided by [section 1] within 90 days of the receipt of the complaint.

 

     Section 3.  Section 2-7-517, MCA, is amended to read:

     "2-7-517.  Penalties -- rules to establish fine. (1) When Except as provided in 15-1-121(12)(b), when a local government entity has failed to file a report as required by 2-7-503(1) or to make the payment required by 2-7-514(2) within 60 days, the department may issue an order stopping payment of any state financial assistance to the local government entity or may charge a late payment penalty as adopted by rule. Upon receipt of the report or payment of the filing fee, all financial assistance that was withheld under this section must be released and paid to the local government entity.

     (2)  In addition to the penalty provided in subsection (1), if a local government entity has not filed the audits or reports pursuant to 2-7-503 within 180 days of the dates required by 2-7-503, the department shall notify the entity of the fine due to the department and shall provide public notice of the delinquent audits or reports.

     (3)  When a local government entity has failed to make payment as required by 2-7-516 within 60 days of receiving a bill for an audit, the department may issue an order stopping payment of any state financial aid to the local government entity. Upon payment for the audit, all financial aid that was withheld because of failure to make payment must be released and paid to the local government entity.

     (4)  The department may grant an extension to a local government entity for filing the audits and reports required under 2-7-503 or may waive the fines, fees, and other penalties imposed in this section if the local government entity shows good cause for the delinquency or demonstrates that the failure to comply with 2-7-503 was the result of circumstances beyond the entity's control.

     (5)  The department shall adopt rules establishing a fine, not to exceed $100, based on the cost of providing public notice under subsection (2), for failure to file audits or reports required by 2-7-503 in the timeframes required under that section."

 

     Section 4.  Section 15-1-121, MCA, is amended to read:

     "15-1-121.  Entitlement share payment -- purpose -- appropriation. (1) As described in 15-1-120(3), each local government is entitled to an annual amount that is the replacement for revenue received by local governments for diminishment of property tax base and various earmarked fees and other revenue that, pursuant to Chapter 574, Laws of 2001, amended by section 4, Chapter 13, Special Laws of August 2002, and later enactments, were consolidated to provide aggregation of certain reimbursements, fees, tax collections, and other revenue in the state treasury with each local government's share. The reimbursement under this section is provided by direct payment from the state treasury rather than the ad hoc system that offset certain state payments with local government collections due the state and reimbursements made by percentage splits, with a local government remitting a portion of collections to the state, retaining a portion, and in some cases sending a portion to other local governments.

     (2)  The sources of dedicated revenue that were relinquished by local governments in exchange for an entitlement share of the state general fund were:

     (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) 25-9-506; and

     (iv) 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.

     (3)  (a) Except as provided in subsection (3)(b), the total amount received by each local government in the prior fiscal year as an entitlement share payment under this section is the base component for the subsequent fiscal year distribution, and in each subsequent year the prior year entitlement share payment, including any reimbursement payments received pursuant to subsection (7), is each local government's base component. Subject to subsection (3)(b), the sum of all local governments' base components is the fiscal year entitlement share pool.

     (b)  For fiscal year 2016, the fiscal year entitlement share pool is reduced by $1,049,904.

     (4)  (a) Subject to subsection (3)(b), the base entitlement share pool must be increased annually by an entitlement share growth rate as provided for in this subsection (4). The amount determined through the application of annual growth rates is the entitlement share pool for each fiscal year.

     (b)  By October 1 of each year, the department shall calculate the growth rate of the entitlement share pool for the next fiscal year in the following manner:

     (i)  The department shall calculate the entitlement share growth rate based on the ratio of two factors of state revenue sources for the first, second, and third most recently completed fiscal years as recorded on the statewide budgeting and accounting system. The first factor is the sum of the revenue for the first and second previous completed fiscal years received from the sources referred to in subsections (2)(b), (2)(c), and (2)(g) divided by the sum of the revenue for the second and third previous completed fiscal years received from the same sources multiplied by 0.75. The second factor is the sum of the revenue for the first and second previous completed fiscal years received from individual income tax as provided in Title 15, chapter 30, and corporate income tax as provided in Title 15, chapter 31, divided by the sum of the revenue for the second and third previous completed fiscal years received from the same sources multiplied by 0.25.

     (ii) Except as provided in subsection (4)(b)(iii), the entitlement share growth rate is the lesser of:

     (A)  the sum of the first factor plus the second factor; or

     (B)  1.03 for counties, 1.0325 for consolidated local governments, and 1.035 for cities and towns.

     (iii) In no instance can the entitlement growth factor be less than 1. Subject to subsection (4)(b)(iv), the entitlement share growth rate is applied to the most recently completed fiscal year entitlement payment to determine the subsequent fiscal year payment.

     (iv) For fiscal year 2016, the entitlement share growth rate is applied to the most recently completed fiscal year entitlement payment minus $1,049,904 to determine the subsequent fiscal year payment.

     (5)  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 (8). 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 for which reimbursement is provided in this section. The allocation for each special district that existed in 2002 must be based on the relative proportion of the loss of revenue in 2002.

     (6)  (a) The entitlement share pools calculated in this section, the amounts determined under 15-1-123(2) for local governments, the funding provided for in subsection (8) of this section, and the amounts determined under 15-1-123(4) for tax increment financing districts are statutorily appropriated, as provided in 17-7-502, from the general fund to the department for distribution to local governments. Except for the distribution made under 15-1-123(2)(b), 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. 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 prior fiscal 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 prior fiscal 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 prior fiscal 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 before the growth amount or adjustments made under subsection (7) are applied is to be distributed to each local government in the same manner as the entitlement share pool was distributed in the prior fiscal year.

     (7)  If the legislature enacts a reimbursement provision that is to be distributed pursuant to this section, the department shall determine the reimbursement amount as provided in the enactment and add the appropriate amount to the entitlement share distribution under this section. The total entitlement share distributions in a fiscal year, including distributions made pursuant to this subsection, equal the local fiscal year entitlement share pool. The ratio of each local government's distribution from the entitlement share pool must be recomputed to determine each local government's ratio to be used in the subsequent year's distribution determination under subsections (6)(b)(ii)(A), (6)(b)(iii)(A), and (6)(b)(iv)(A).

     (8)  (a) Except for a tax increment financing district entitled to a reimbursement under 15-1-123(4), 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 funding. If a tax increment financing district referred to in subsection (8)(b) terminates, then the funding for the district provided for in subsection (8)(b) terminates.

     (b)  Except for the reimbursement made under 15-1-123(4)(b), one-half of the payments provided for in this subsection (8)(b) must be made by November 30 and the other half by May 31 of each year. Subject to subsection (8)(a), the entitlement share for tax increment financing districts is as follows:

 Deer Lodge

 TIF District 1

 $2,833

 Deer Lodge

 TIF District 2

 2,813

 Flathead

 Kalispell - District 2

 4,638

 Flathead

 Kalispell - District 3

 37,231

 Flathead

 Whitefish District

 148,194

 Gallatin

 Bozeman - downtown

 31,158

 Missoula

 Missoula - 1-1C

 225,251

 Missoula

 Missoula - 4-1C

 30,009

 Silver Bow

 Butte - uptown

 255,421

     (9)  The estimated fiscal year entitlement share pool and any subsequent entitlement share pool for local governments do not include revenue received from tax increment financing districts, from countywide transportation block grants, or from countywide retirement block grants.

     (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 component, the entitlement share 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) 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.

     (b) A payment required pursuant to this section must be withheld if a local government:

     (i) fails to meet a deadline established in 2-7-503(1), 7-6-611(2), 7-6-4024(3), or 7-6-4036(1); and

     (ii) fails to remit any amounts collected on behalf of the state as required by 15-1-504 or any other amounts owed to the state or another taxing jurisdiction, as otherwise required by law, within 45 days of the end of a month.

     (c) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (i) file a financial report required by 15-1-504;

     (ii) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (iii) remit any other amounts owed to the state or another taxing jurisdiction."

 

     Section 5.  Section 15-36-331, MCA, is amended to read:

     "15-36-331.  Distribution of taxes. (1) (a) For each calendar quarter, the department shall determine the amount of tax, late payment interest, and penalties collected under this part.

     (b)  For the purposes of distribution of oil and natural gas production taxes to county and school district taxing units under 15-36-332 and to the state, the department shall determine the amount of oil and natural gas production taxes paid on production in the taxing unit.

     (2)  (a) The amount of oil and natural gas production taxes collected for the privilege and license tax pursuant to 82-11-131 must be deposited, in accordance with the provisions of 17-2-124, in the state special revenue fund for the purpose of paying expenses of the board, as provided in 82-11-135.

     (b)  The amount of the tax allocated in 15-36-304(7)(b) for the oil and gas natural resource distribution account established in 90-6-1001(1) must be deposited in the account.

     (3)  (a) For each tax year, the amount of oil and natural gas production taxes determined under subsection (1)(b) is allocated to each county according to the following schedule:

 Big Horn

 45.05%

 Blaine

 58.39%

 Carbon

 48.27%

 Chouteau

 58.14%

 Custer

 69.53%

 Daniels

 50.81%

 Dawson

 47.79%

 Fallon

 41.78%

 Fergus

 69.18%

 Garfield

 45.96%

 Glacier

 58.83%

 Golden Valley

 58.37%

 Hill

 64.51%

 Liberty

 57.94%

 McCone

 49.92%

 Musselshell

 48.64%

 Petroleum

 48.04%

 Phillips

 54.02%

 Pondera

 54.26%

 Powder River

 60.9%

 Prairie

 40.38%

 Richland

 47.47%

 Roosevelt

 45.71%

 Rosebud

 39.33%

 Sheridan

 47.99%

 Stillwater

 53.51%

 Sweet Grass

 61.24%

 Teton

 46.1%

 Toole

 57.61%

 Valley

 51.43%

 Wibaux

 49.16%

 Yellowstone

 46.74%

 All other counties

 50.15%

     (b)  The oil and natural gas production taxes allocated to each county must be deposited in the state special revenue fund and transferred to each county for distribution, as provided in 15-36-332.

     (4)  The department shall, in accordance with the provisions of 17-2-124, distribute the state portion of oil and natural gas production taxes remaining after the distributions pursuant to subsections (2) and (3) as follows:

     (a)  for each fiscal year through the fiscal year ending June 30, 2011, to be distributed as follows:

     (i)  1.23% to the coal bed methane protection account established in 76-15-904;

     (ii) 1.45% to the natural resources projects state special revenue account established in 15-38-302;

     (iii) 1.45% to the natural resources operations state special revenue account established in 15-38-301;

     (iv) 2.99% to the orphan share account established in 75-10-743;

     (v)  2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 15-10-108; and

     (vi) all remaining proceeds to the state general fund;

     (b)  for fiscal years beginning after June 30, 2011, to be distributed as follows:

     (i)  2.16% to the natural resources projects state special revenue account established in 15-38-302;

     (ii) 2.02% to the natural resources operations state special revenue account established in 15-38-301;

     (iii) 2.95% to the orphan share account established in 75-10-743;

     (iv) 2.65% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 15-10-108; and

     (v)  all remaining proceeds to the state general fund.

     (5) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction."

 

     Section 6.  Section 15-36-332, MCA, is amended to read:

     "15-36-332.  (Temporary) Distribution of taxes to taxing units -- appropriation. (1) (a) Subject to 20-9-310 and subsection (9) of this section, by the dates referred to in subsection (6) of this section, the department shall distribute oil and natural gas production taxes allocated under 15-36-331(3) to each eligible county.

     (b)  By Except as provided by subsection (9), by the dates referred to in subsection (6), the department shall distribute the amount deposited in the oil and gas natural resource distribution account under 15-36-331(2)(b) as provided in subsection (7) of this section.

     (2)  (a) Each county treasurer shall distribute the amount of oil and natural gas production taxes designated under subsection (1)(a), including the amounts referred to in subsection (2)(b), to the countywide elementary and high school retirement funds, countywide transportation funds, and eligible school districts according to the following schedule:

 

 Elementary

 High School

 Countywide

 School

 

 Retirement

 Retirement

 Transportation

 Districts

 Big Horn

 14.81%

 10.36%

 2.99%

 26.99%

 Blaine

 5.86%

 2.31%

 2.71%

 24.73%

 Carbon

 3.6%

 6.62%

 1.31%

 49.18%

 Chouteau

 8.1%

 4.32%

 3.11%

 23.79%

 Custer

 6.9%

 3.4%

 1.19%

 31.25%

 Daniels

 0

 7.77%

 3.92%

 48.48%

 Dawson

 5.53%

 2.5%

 1.11%

 35.6%

 Fallon

 0

 7.63%

 1.24%

 42.58%

 Fergus

 7.88%

 4.84%

 2.08%

 53.25%

 Garfield

 4.04%

 3.13%

 5.29%

 26.19%

 Glacier

 11.2%

 4.87%

 3.01%

 46.11%

 Golden Valley

 0

 11.52%

 2.77%

 54.65%

 Hill

 6.7%

 4.07%

 1.59%

 49.87%

 Liberty

 4.9%

 4.56%

 1.15%

 35.22%

 McCone

 4.18%

 3.19%

 2.58%

 43.21%

 Musselshell

 5.98%

 4.07%

 3.53%

 32.17%

 Petroleum

 0

 11.92%

 4.59%

 55.48%

 Phillips

 0.43%

 6.6%

 1.08%

 41.29%

 Pondera

 6.96%

 5.06%

 1.94%

 45.17%

 Powder River

 3.96%

 2.97%

 4.57%

 22.25%

 Prairie

 0

 8.88%

 1.63%

 36.9%

 Richland

 4.1%

 3.92%

 2.26%

 43.77%

 Roosevelt

 9.93%

 7.37%

 2.74%

 40.94%

 Rosebud

 3.87%

 2.24%

 1.05%

 72.97%

 Sheridan

 0

 3.39%

 2.22%

 47.63%

 Stillwater

 6.87%

 4.86%

 1.63%

 41.16%

 Sweet Grass

 6.12%

 6.5%

 2.4%

 37.22%

 Teton

 6.88%

 8.19%

 3.8%

 29.43%

 Toole

 2.78%

 4.78%

 1.3%

 43.56%

 Valley

 2.26%

 12.61%

 4.63%

 41.11%

 Wibaux

 0

 4.1%

 0.77%

 31.46%

 Yellowstone

 7.98%

 4.56%

 1.07%

 52.77%

 All other counties

 3.81%

 7.84%

 1.81%

 41.04%

     (b)  (i) The county treasurer shall distribute 9.8% of the Custer County share to the countywide community college district in Custer County.

     (ii) The county treasurer shall distribute 14.5% of the Dawson County share to the countywide community college district in Dawson County.

     (3)  The remaining oil and natural gas production taxes for each county must be used for the exclusive use and benefit of the county, including districts within the county established by the county.

     (4)  (a) The county treasurer shall distribute oil and natural gas production taxes to school districts in each county referred to in subsection (2) as provided in subsections (4)(b) through (4)(d) and subject to the provisions of 20-9-310.

     (b)  The amount distributed to each K-12 district within the county is equal to oil and natural gas production taxes in the county multiplied by the ratio that oil and natural gas production taxes attributable to oil and natural gas production in the K-12 school district bear to total oil and natural gas production taxes attributable to total oil and natural gas production in the county and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).

     (c)  For the amount to be distributed to each elementary school district and to each high school district under subsection (4)(d), the department shall first determine the amount of oil and natural gas production taxes in the high school district that is attributable to oil and natural gas production in each elementary school district that is located in whole or in part within the exterior boundaries of a high school district and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).

     (d)  (i) The amount distributed to each elementary school district that is located in whole or in part within the exterior boundaries of a high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the elementary school district bear to the sum of the total mills of the elementary school district and the total mills of the high school district.

     (ii) The amount distributed to the high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the high school district bear to the sum of the total mills of each elementary school district referred to in subsection (4)(c) and the total mills of the high school district.

     (5)   Oil and natural gas production taxes calculated for each school district under subsections (4)(b) through (4)(d) must be distributed to each school district as provided in 20-9-310.

     (6)  Subject to 20-9-310 and subsection (9) of this section, the department shall remit the amounts to be distributed in this section to the county treasurer by the following dates:

     (a)  On or before August 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending March 31 of the current year.

     (b)  On or before November 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending June 30 of the current year.

     (c)  On or before February 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending September 30 of the previous year.

     (d)  On or before May 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending December 31 of the previous year.

     (7)  The department shall distribute the funds received under 15-36-331(2)(b) to counties based on county oil and gas production. Of the distribution to a county, one-third must be distributed to the county government and two-thirds must be distributed to incorporated cities and towns within the county. If there is more than one incorporated city or town within the county, the city and town allocation must be distributed to the cities and towns based on their relative populations.

     (8)  The distributions to taxing units and to counties and incorporated cities and towns under this section are statutorily appropriated, as provided in 17-7-502, from the state special revenue fund.

     (9) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction. (Terminates June 30, 2020--sec. 38, Ch. 400, L. 2013.)

     15-36-332.  (Effective July 1, 2020) Distribution of taxes to taxing units -- appropriation. (1) (a) By Except as provided by subsection (9), by the dates referred to in subsection (6), the department shall distribute oil and natural gas production taxes allocated under 15-36-331(3) to each eligible county.

     (b)  By Except as provided by subsection (9), by the dates referred to in subsection (6), the department shall distribute the amount deposited in the oil and gas natural resource distribution account under 15-36-331(2)(b) as provided in subsection (7) of this section.

     (2)  (a) Each county treasurer shall distribute the amount of oil and natural gas production taxes designated under subsection (1)(a), including the amounts referred to in subsection (2)(b), to the countywide elementary and high school retirement funds, countywide transportation funds, and eligible school districts according to the following schedule:

 

 Elementary

 High School

 Countywide

 School

 

 Retirement

 Retirement

 Transportation

 Districts

 Big Horn

 14.81%

 10.36%

 2.99%

 26.99%

 Blaine

 5.86%

 2.31%

 2.71%

 24.73%

 Carbon

 3.6%

 6.62%

 1.31%

 49.18%

 Chouteau

 8.1%

 4.32%

 3.11%

 23.79%

 Custer

 6.9%

 3.4%

 1.19%

 31.25%

 Daniels

 0

 7.77%

 3.92%

 48.48%

 Dawson

 5.53%

 2.5%

 1.11%

 35.6%

 Fallon

 0

 7.63%

 1.24%

 42.58%

 Fergus

 7.88%

 4.84%

 2.08%

 53.25%

 Garfield

 4.04%

 3.13%

 5.29%

 26.19%

 Glacier

 11.2%

 4.87%

 3.01%

 46.11%

 Golden Valley

 0

 11.52%

 2.77%

 54.65%

 Hill

 6.7%

 4.07%

 1.59%

 49.87%

 Liberty

 4.9%

 4.56%

 1.15%

 35.22%

 McCone

 4.18%

 3.19%

 2.58%

 43.21%

 Musselshell

 5.98%

 4.07%

 3.53%

 32.17%

 Petroleum

 0

 11.92%

 4.59%

 55.48%

 Phillips

 0.43%

 6.6%

 1.08%

 41.29%

 Pondera

 6.96%

 5.06%

 1.94%

 45.17%

 Powder River

 3.96%

 2.97%

 4.57%

 22.25%

 Prairie

 0

 8.88%

 1.63%

 36.9%

 Richland

 4.1%

 3.92%

 2.26%

 43.77%

 Roosevelt

 9.93%

 7.37%

 2.74%

 40.94%

 Rosebud

 3.87%

 2.24%

 1.05%

 72.97%

 Sheridan

 0

 3.39%

 2.22%

 47.63%

 Stillwater

 6.87%

 4.86%

 1.63%

 41.16%

 Sweet Grass

 6.12%

 6.5%

 2.4%

 37.22%

 Teton

 6.88%

 8.19%

 3.8%

 29.43%

 Toole

 2.78%

 4.78%

 1.3%

 43.56%

 Valley

 2.26%

 12.61%

 4.63%

 41.11%

 Wibaux

 0

 4.1%

 0.77%

 31.46%

 Yellowstone

 7.98%

 4.56%

 1.07%

 52.77%

 All other counties

 3.81%

 7.84%

 1.81%

 41.04%

     (b)  (i) The county treasurer shall distribute 9.8% of the Custer County share to the countywide community college district in Custer County.

     (ii) The county treasurer shall distribute 14.5% of the Dawson County share to the countywide community college district in Dawson County.

     (3)  The remaining oil and natural gas production taxes for each county must be used for the exclusive use and benefit of the county, including districts within the county established by the county.

     (4)  (a) The county treasurer shall distribute oil and natural gas production taxes to school districts in each county referred to in subsection (2) as provided in subsections (4)(b) through (4)(d).

     (b)  The amount distributed to each K-12 district within the county is equal to oil and natural gas production taxes in the county multiplied by the ratio that oil and natural gas production taxes attributable to oil and natural gas production in the K-12 school district bear to total oil and natural gas production taxes attributable to total oil and natural gas production in the county and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).

     (c)  For the amount to be distributed to each elementary school district and to each high school district under subsection (4)(d), the department shall first determine the amount of oil and natural gas taxes in the high school district that is attributable to oil and natural gas production in each elementary school district that is located in whole or in part within the exterior boundaries of a high school district and multiply that amount by the school district percentage figure for the county referred to in subsection (2)(a).

     (d)  (i) The amount distributed to each elementary school district that is located in whole or in part within the exterior boundaries of a high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the elementary school district bear to the sum of the total mills of the elementary school district and the total mills of the high school district.

     (ii) The amount distributed to the high school district is equal to the amount determined in subsection (4)(c) multiplied by the ratio that the total mills of the high school district bear to the sum of the total mills of each elementary school district referred to in subsection (4)(c) and the total mills of the high school district.

     (5)  (a) Oil and natural gas production taxes calculated for each school district under subsections (4)(b) through (4)(d) must be distributed to each school district in the relative proportion of the mill levy for each fund.

     (b)  If a distribution under subsection (5)(a) exceeds the total budget for a school district fund, the board of trustees of an elementary or high school district may reallocate the excess to any budgeted fund of the school district.

     (6)  The Except as provided by subsection (9), the department shall remit the amounts to be distributed in this section to the county treasurer by the following dates:

     (a)  On or before August 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending March 31 of the current year.

     (b)  On or before November 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending June 30 of the current year.

     (c)  On or before February 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending September 30 of the previous year.

     (d)  On or before May 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending December 31 of the previous year.

     (7)  The department shall distribute the funds received under 15-36-331(2)(b) to counties based on county oil and gas production. Of the distribution to a county, one-third must be distributed to the county government and two-thirds must be distributed to incorporated cities and towns within the county. If there is more than one incorporated city or town within the county, the city and town allocation must be distributed to the cities and towns based on their relative populations.

     (8)  The distributions to taxing units and to counties and incorporated cities and towns under this section are statutorily appropriated, as provided in 17-7-502, from the state special revenue fund.

     (9) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction."

 

     Section 7.  Section 15-37-117, MCA, is amended to read:

     "15-37-117.  (Temporary) Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 17-2-124, be allocated as follows:

     (a)  to the credit of the general fund of the state, 47% of total collections each year;

     (b)  to the state special revenue fund to the credit of the hard-rock mining impact trust account established in 90-6-304(2), 2.5% of total collections each year;

     (c)  to the hard-rock mining reclamation debt service fund established in 82-4-312, 8.5% of total collections each year;

     (d)  to the natural resources operations state special revenue account established in 15-38-301, 7% of total collections each year; and

     (e)  within 60 days of the date the tax is payable pursuant to 15-37-105, to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan or, if an impact plan has not been prepared, to the county in which the mine is located, 35% of total collections each year, to be allocated by the county commissioners as follows:

     (i)  not less than 37.5% to the county hard-rock mine trust account established in 7-6-2225; and

     (ii) all money not allocated to the account pursuant to subsection (1)(e)(i) to be further allocated as follows:

     (A)  33 1/3% is allocated to the county for general planning functions or economic development activities as described in 7-6-2225(3)(c) through (3)(e);

     (B)  33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

     (C)  33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

     (2)  When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(e) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

     (3)  The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(e). The allocation to the county described by subsection (1)(e) is a statutory appropriation pursuant to 17-7-502.

     (4) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction. (Terminates June 30, 2027--sec. 5, Ch. 387, L. 2015.)

     15-37-117.  (Effective July 1, 2027) Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 17-2-124, be allocated as follows:

     (a)  to the credit of the general fund of the state, 57% of total collections each year;

     (b)  to the state special revenue fund to the credit of a hard-rock mining impact trust account, 2.5% of total collections each year;

     (c)  to the hard-rock mining reclamation debt service fund established in 82-4-312, 8.5% of total collections each year;

     (d)  to the natural resources operations state special revenue account established in 15-38-301, 7% of total collections each year; and

     (e)  within 60 days of the date the tax is payable pursuant to 15-37-105, to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:

     (i)  not less than 37.5% to the county hard-rock mine trust account established in 7-6-2225; and

     (ii) all money not allocated to the account pursuant to subsection (1)(e)(i) to be further allocated as follows:

     (A)  33 1/3% is allocated to the county for general planning functions or economic development activities as described in 7-6-2225(3)(c) through (3)(e);

     (B)  33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

     (C)  33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

     (2)  When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(e) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

     (3)  The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(e). The allocation to the county described by subsection (1)(e) is a statutory appropriation pursuant to 17-7-502.

     (4) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction."

 

     Section 8.  Section 15-39-110, MCA, is amended to read:

     "15-39-110.  Distribution of taxes. (1) (a) For each semiannual period, the department shall determine the amount of tax, late payment interest, and penalties collected under this part from bentonite mines that produced bentonite before January 1, 2005. The tax is distributed as provided in subsections (2) through (9).

     (b)  For each semiannual period, the department shall determine the amount of tax, late payment interest, and penalties collected under this part from bentonite mines that first began producing bentonite after December 31, 2004. The tax is distributed as provided in subsection (10).

     (2)  The percentage of the tax determined under subsection (1)(a) and specified in subsections (3) through (9) is allocated according to the following schedule:

     (a)  2.33% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 15-10-108;

     (b)  18.14% to the state general fund to be appropriated for the purposes of the tax levies as provided in 20-9-331, 20-9-333, and 20-9-360;

     (c)  3.35% to Carbon County to be distributed in proportion to current fiscal year mill levies in the taxing jurisdictions in which production occurs, except a distribution may not be made for county and state levies under 15-10-108, 20-9-331, 20-9-333, and 20-9-360; and

     (d)  76.18% to Carter County to be distributed in proportion to current fiscal year mill levies in the taxing jurisdictions in which production occurs, except a distribution may not be made for county and state levies under 15-10-108, 20-9-331, 20-9-333, and 20-9-360.

     (3)  For the production of bentonite occurring after December 31, 2008, and before January 1, 2010, 60% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 40% must be distributed as provided in subsection (10).

     (4)  For the production of bentonite occurring after December 31, 2009, and before January 1, 2011, 50% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 50% must be distributed as provided in subsection (10).

     (5)  For the production of bentonite occurring after December 31, 2010, and before January 1, 2012, 40% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 60% must be distributed as provided in subsection (10).

     (6)  For the production of bentonite occurring after December 31, 2011, and before January 1, 2013, 30% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 70% must be distributed as provided in subsection (10).

     (7)  For the production of bentonite occurring after December 31, 2012, and before January 1, 2014, 20% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 80% must be distributed as provided in subsection (10).

     (8)  For the production of bentonite occurring after December 31, 2013, and before January 1, 2015, 10% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (2) and 90% must be distributed as provided in subsection (10).

     (9)  For the production of bentonite occurring in tax years beginning after December 31, 2014, 100% of the tax determined under subsection (1)(a) must be distributed as provided in subsection (10).

     (10) For the production of bentonite, 100% of the tax determined under subsection (1)(b) and the distribution percentages determined under subsections (3) through (9) are allocated according to the following schedule:

     (a)  1.30% to the state special revenue fund to be appropriated to the Montana university system for the purposes of the state tax levy as provided in 15-10-108;

     (b)  20.75% to the state general fund to be appropriated for the purposes of the tax levies as provided in 20-9-331, 20-9-333, and 20-9-360;

     (c)  77.95% to the county in which production occurred to be distributed in proportion to current fiscal year mill levies in the taxing jurisdictions in which production occurs, except a distribution may not be made for county and state levies under 15-10-108, 20-9-331, 20-9-333, and 20-9-360.

     (11) The Except as provided by subsection (14), the department shall remit the amounts to be distributed in this section to the county treasurer by the following dates:

     (a)  On or before October 1 of each year, the department shall remit the county's share of bentonite production tax payments received for the semiannual period ending June 30 of the current year to the county treasurer.

     (b)  On or before April 1 of each year, the department shall remit the county's share of bentonite production tax payments received to the county treasurer for the semiannual period ending December 31 of the previous year.

     (12) (a) The department shall also provide to each county the amount of gross yield of value from bentonite, including royalties, for the previous calendar year. Thirty-three and one-third percent of the gross yield of value must be treated as taxable value for determining school district debt limits under 20-9-406.

     (b)  The percentage amount of the gross yield of value determined under subsection (12)(a) must be treated as assessed value under 15-8-111 for the purposes of local government debt limits and other bonding provisions as provided by law.

     (13) The bentonite tax proceeds are statutorily appropriated, as provided in 17-7-502, to the department for distribution as provided in this section.

     (14) A payment required pursuant to this section may be withheld if, for more than 90 days, a local government fails to:

     (a) file a financial report required by 15-1-504;

     (b) remit any amounts collected on behalf of the state as required by 15-1-504; or

     (c) remit any other amounts owed to the state or another taxing jurisdiction."

 

     Section 9.  Section 20-9-310, MCA, is amended to read:

     "20-9-310.  (Temporary) Oil and natural gas production taxes for school districts -- allocation and limits. (1) Except as provided in subsection (6), the maximum amount of oil and natural gas production taxes that a school district may retain is 130% of the school district's maximum budget, determined in accordance with 20-9-308.

     (2)  Upon receipt of school district budget reports required under 20-9-134, the superintendent of public instruction shall provide the department of revenue with a list reporting the maximum general fund budget for each school district.

     (3)  The Except as provided by 15-36-332(9), the department of revenue shall make the full quarterly distribution of oil and natural gas production taxes as required under 15-36-332(6) until the amount distributed reaches the limitation in subsection (1) of this section. The department of revenue shall deposit any amount exceeding the limitation in subsection (1) in the state school oil and natural gas distribution account provided for in 20-9-520.

     (4)  (a) By the last day of the month immediately following the month in which the quarterly distribution of oil and natural gas production taxes in subsection (3) is made, the office of public instruction shall distribute any amount of oil and natural gas production taxes exceeding the limitation in subsection (1) based on allocations determined by the department of revenue pursuant to subsection (3) to school districts that are directly impacted by oil and natural gas development, but that receive insufficient oil and natural gas revenue to address the oil and natural gas development impacts. The office of public instruction shall adopt administrative rules to establish a process, criteria, and a mechanism for distribution under this subsection (4), using the negotiated rulemaking process set forth in the Montana Negotiated Rulemaking Act, Title 2, chapter 5, part 1.

     (b)  In developing administrative rules, the office of public instruction shall establish two independent negotiated rulemaking committees to consider issues for the purpose of reaching a consensus to develop proposed rules for the distribution of the funds under this subsection (4).

     (c)  The members of the first negotiated rulemaking committee appointed by the office of public instruction must include public school officials and public school employees from school districts that are located in or are immediately adjacent to a county in which oil and natural gas production taxes are generated and professional organizations representing these public school officials and employees. This committee shall transmit proposed rules regarding distribution of 50% of the funds available under this subsection (4) in accordance with 2-5-108.

     (d)  The members of the second negotiated rulemaking committee appointed by the office of public instruction must include public school officials and public school employees from school districts around the state and professional organizations representing these public school officials and employees. This committee shall transmit proposed rules regarding the distribution of the remaining 50% of the funds available under this subsection (4) in accordance with 2-5-108.

     (5)  (a) Subject to the limitation in subsection (1) and the conditions in subsection (5)(b), the trustees shall budget and allocate the oil and natural gas production taxes anticipated by the district in any budgeted fund at the discretion of the trustees. Oil and natural gas production taxes allocated to the district general fund may be applied to the BASE or over-BASE portions of the general fund budget at the discretion of the trustees.

     (b)  Except as provided in subsection (5)(c), if the trustees apply an amount less than 12.5% of the total oil and natural gas production taxes received by the district in the prior school fiscal year to the district's general fund BASE budget for the upcoming school fiscal year, then:

     (i)  the trustees shall levy the number of mills required to raise an amount equal to the difference between 12.5% of the oil and natural gas production taxes received by the district in the prior school fiscal year and the amount of oil and natural gas production taxes the trustees budget in the district's general fund BASE budget for the upcoming school fiscal year;

     (ii) the mills levied under subsection (5)(b)(i) are not eligible for the guaranteed tax base subsidy under the provisions of 20-9-366 through 20-9-369; and

     (iii) the general fund BASE budget levy requirement calculated in 20-9-141 must be calculated as though the trustees budgeted 12.5% of the oil and natural gas production taxes received by the district in the prior year and the number of mills calculated in subsection (5)(b)(i) must be added to the number of mills calculated in 20-9-141(2).

     (c)  The provisions of subsection (5)(b) do not apply to the following:

     (i)  a district that has a maximum general fund budget of less than $1 million;

     (ii) a district whose oil and natural gas revenue combined with its adopted general fund budget totals 105% or less of its maximum general fund budget;

     (iii) a district that has a maximum general fund budget of $1 million or more and has had an unusual enrollment increase approved by the superintendent of public instruction as provided in 20-9-314 in the year immediately preceding the fiscal year to which the provisions of this subsection (5) would otherwise apply; or

     (iv) a district that has issued outstanding oil and natural gas revenue bonds. Funds received pursuant to this section must first be applied by the district to payment of debt service obligations for oil and natural gas revenue bonds for the next 12-month period.

     (6)  The limit on oil and natural gas production taxes that a school district may retain under subsection (1) must be increased for any school district with an unusual enrollment increase approved by the superintendent of public instruction as provided in 20-9-314. The increase in the limit on oil and natural gas production taxes that a school district may retain under subsection (1) applies in the year immediately following the fiscal year in which the office of public instruction has approved the district's unusual enrollment increase and must be calculated by multiplying $45,000 times each additional ANB approved by the superintendent of public instruction as provided in 20-9-314.

     (7)  In any year in which the actual oil and natural gas production taxes received by a school district are less than 50% of the total oil and natural gas production taxes received by the district in the prior year, the district may transfer money from any budgeted fund to its general fund in an amount not to exceed the amount of the shortfall. (Terminates June 30, 2019--sec. 7, Ch. 433, L. 2015.)

     20-9-310.  (Effective July 1, 2019) Oil and natural gas production taxes for school districts -- allocation and limits. (1) Except as provided in subsection (6), the maximum amount of oil and natural gas production taxes that a school district may retain is 130% of the school district's maximum budget, determined in accordance with 20-9-308.

     (2)  Upon receipt of school district budget reports required under 20-9-134, the superintendent of public instruction shall provide the department of revenue with a list reporting the maximum general fund budget for each school district.

     (3)  The Except as provided by 15-36-332(9), the department of revenue shall make the full quarterly distribution of oil and natural gas production taxes as required under 15-36-332(6) until the amount distributed reaches the limitation in subsection (1) of this section. The department of revenue shall deposit any amount exceeding the limitation in subsection (1) in the state school oil and natural gas distribution account provided for in 20-9-520.

     (4)  By the last day of the month immediately following the month in which the quarterly distribution of oil and natural gas production taxes in subsection (3) is made, the office of public instruction shall distribute any amount of oil and natural gas production taxes exceeding the limitation in subsection (1) based on allocations determined by the department of revenue pursuant to subsection (3) as follows:

     (a)  70% of the retained amount must be deposited in the guarantee account provided for in 20-9-622;

     (b)  5% of the retained amount must be deposited in the state school oil and natural gas impact account provided for in 20-9-517; and

     (c)  25% of the retained amount must be distributed to the counties in proportion to a county's oil and natural gas production taxes for the preceding 3 years compared to the total of all counties' oil and natural gas production taxes for the preceding 3 years. Funds distributed must be deposited in a county's county school oil and natural gas impact fund provided for in 20-9-518.

     (5)  (a) Subject to the limitation in subsection (1) and the conditions in subsection (5)(b), the trustees shall budget and allocate the oil and natural gas production taxes anticipated by the district in any budgeted fund at the discretion of the trustees. Oil and natural gas production taxes allocated to the district general fund may be applied to the BASE or over-BASE portions of the general fund budget at the discretion of the trustees.

     (b)  Except as provided in subsection (5)(c), if the trustees apply an amount less than 12.5% of the total oil and natural gas production taxes received by the district in the prior school fiscal year to the district's general fund BASE budget for the upcoming school fiscal year, then:

     (i)  the trustees shall levy the number of mills required to raise an amount equal to the difference between 12.5% of the oil and natural gas production taxes received by the district in the prior school fiscal year and the amount of oil and natural gas production taxes the trustees budget in the district's general fund BASE budget for the upcoming school fiscal year;

     (ii) the mills levied under subsection (5)(b)(i) are not eligible for the guaranteed tax base subsidy under the provisions of 20-9-366 through 20-9-369; and

     (iii) the general fund BASE budget levy requirement calculated in 20-9-141 must be calculated as though the trustees budgeted 12.5% of the oil and natural gas production taxes received by the district in the prior year and the number of mills calculated in subsection (5)(b)(i) must be added to the number of mills calculated in 20-9-141(2).

     (c)  The provisions of subsection (5)(b) do not apply to the following:

     (i)  a district that has a maximum general fund budget of less than $1 million;

     (ii) a district whose oil and natural gas revenue combined with its adopted general fund budget totals 105% or less of its maximum general fund budget;

     (iii) a district that has a maximum general fund budget of $1 million or more and has had an unusual enrollment increase approved by the superintendent of public instruction as provided in 20-9-314 in the year immediately preceding the fiscal year to which the provisions of this subsection (5) would otherwise apply; or

     (iv) a district that has issued outstanding oil and natural gas revenue bonds. Funds received pursuant to this section must first be applied by the district to payment of debt service obligations for oil and natural gas revenue bonds for the next 12-month period.

     (6)  The limit on oil and natural gas production taxes that a school district may retain under subsection (1) must be increased for any school district with an unusual enrollment increase approved by the superintendent of public instruction as provided in 20-9-314. The increase in the limit on oil and natural gas production taxes that a school district may retain under subsection (1) applies in the year immediately following the fiscal year in which the office of public instruction has approved the district's unusual enrollment increase and must be calculated by multiplying $45,000 times each additional ANB approved by the superintendent of public instruction as provided in 20-9-314.

     (7)  In any year in which the actual oil and natural gas production taxes received by a school district are less than 50% of the total oil and natural gas production taxes received by the district in the prior year, the district may transfer money from any budgeted fund to its general fund in an amount not to exceed the amount of the shortfall."

 

     Section 10.  Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 2, chapter 15, part 5, and the provisions of Title 2, chapter 15, part 5, apply to [section 1].

     (2) [Section 2] is intended to be codified as an integral part of Title 7, chapter 4, part 27, and the provisions of Title 7, chapter 4, part 27, apply to [section 2].

 

     Section 11.  Effective date. [This act] is effective July 1, 2017.

- END -

 


Latest Version of HB 422 (HB0422.ENR)
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