HOUSE BILL NO. 152

INTRODUCED BY S. ANDERSON

BY REQUEST OF THE STATE LIBRARY COMMISSION

A BILL FOR AN ACT ENTITLED: "AN ACT PERMITTING THE CREATION OF PUBLIC LIBRARY DISTRICTS WITH TAXING AUTHORITY; AND AMENDING SECTION 20-3-337, MCA."

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

NEW SECTION. Section 1. Public library districts -- territory -- purpose. (1) A public library district must contain one of the following:

(a) the entire territory of a county;

(b) the entire territory of a county and a part of the territory of one or more contiguous counties; or

(c) contiguous parts of the territory of two or more adjacent counties.

(2) A public library district may include incorporated municipalities within a county.

(3) The purpose of [sections 1 through 11] is to provide a method for establishing, equipping, administering, and funding libraries. [Sections 1 through 11] also provide for contracting for library services from existing libraries.

NEW SECTION. Section 2. Creation or enlargement of public library district. (1) Proceedings for the creation or enlargement of a public library district may be initiated by a petition signed by not less than 5% of the qualified electors who reside within the proposed district or the area to be added to an existing district.

(2) The petition must contain:

(a) (i) the boundaries of the proposed public library district; and

(ii) a map showing the boundaries of the proposed district;

(b) the proposed maximum property tax mill levy, not to exceed 20 mills, that could be levied on the property owners within the district for the operation of the district; and

(c) subject to the requirements of [section 6], the number of members of the board of trustees.

(3) When the territory to be included in the proposed public library district lies in more than one county, a petition must be presented to the governing body of each county in which the territory lies. Each petition must be signed by not less than 5% of the qualified electors of the territory within the county proposed for inclusion in the district.

(4) Upon receipt of a petition to create a public library district, the county clerk shall examine the petition and within 15 days, either reject the petition if it is insufficient under the provisions of subsection (1), (2), or (3) or certify that the petition is sufficient and present it to the county governing body at its next meeting.

(5) The text of the petition must be published as provided in 7-1-2121 in each county in which territory of the proposed public library district lies.

(6) At a hearing on the proposed public library district, the county governing body shall hear testimony:

(a) of all interested persons on whether a public library district should be created;

(b) regarding the proposed boundary, property tax mill levy, and number of members of the board of trustees; and

(c) on any other matter relating to the petition.

(7) (a) After the hearing, the county governing body shall proceed by resolution to refer the funding for the public library district or addition to a district to the persons qualified to vote on the proposition.

(b) The county governing body may designate in the resolution the tax election at which the matter is to be determined, and whether the matter is to be determined by a mail ballot election held pursuant to the provisions of Title 13, chapter 19.

(8) If part of the territory of an existing county free library created under 22-1-303 is included within the boundaries of a newly created or enlarged public library district, then the governing body of the county shall adjust the boundaries of the existing county free library to exclude the territory of the library district. Property located within the newly created or enlarged library district is not subject to county free library levies, except for levies assessed for existing bonded indebtedness.

NEW SECTION. Section 3. Election on creation of district. (1) The election on the question of whether to create a public library district must be conducted as provided in Title 13.

(2) (a) Only qualified electors residing within the proposed public library district may vote on the question of whether to create the district.

(b) A vote in favor of imposing the proposed mill levy is to be construed as a vote in favor of creating a public library district or converting an existing public library into a public library district.

(3) (a) The question of creating a public library district must be submitted to the electors in substantially the following form:

SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED, ALLOWING THE PUBLIC LIBRARY DISTRICT TO LEVY NOT MORE THAN .... MILLS OF PROPERTY TAX FOR THE OPERATION OF THE DISTRICT.

[]	FOR imposing the new tax.

[]	AGAINST imposing the new tax.

(b) The question of converting an existing public library to a public library district must be submitted to the electors in substantially the following form:

SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED, ALLOWING THE PUBLIC LIBRARY DISTRICT TO LEVY NOT MORE THAN .... MILLS OF PROPERTY TAX FOR THE OPERATION OF THE DISTRICT.

[]	FOR imposing the new tax.

[]	AGAINST imposing the new tax.

NEW SECTION. Section 4. Formation of public library district -- appointment of initial board of trustees. (1) If a majority of the votes cast at the election in the territory of each county included in the proposed public library district approve the funding of the district, the governing body of each county shall, within 10 days of receipt of the official canvass of the result, certify that the district is formed.

(2) Within 30 days after the certification of the formation of the public library district, the governing body of each county with territory included in the district shall jointly appoint the initial members of the district board of trustees. The members shall serve until their successors are elected and qualified.

NEW SECTION. Section 5. Incorporation of existing public libraries or public library districts. (1) A public city, city-county, or county library may join a contiguous public library district pursuant to the provisions of Title 7, chapter 11, part 3.

(2) The territory of an existing public library district may be consolidated into a contiguous district, upon resolution, after a hearing, by the governing body of each district. The board of trustees of the incorporated district shall continue to serve the terms for which they were elected.

NEW SECTION. Section 6. Election of board of trustees -- compensation -- removal -- trustee zones. (1) After appointment of the initial board of trustees and except in case of vacancies, all members of the board must be elected by the electors of the public library district. The number of board members must be 5 or 7 as determined in the initial petition creating the district.

(2) The election of members to the board must be held in conjunction with the school election held pursuant to 20-3-304.

(3) (a) A candidate for the office of trustee of the public library district must be nominated by petition, signed by at least five electors of the district, filed with the office of the election administrator not earlier than 135 days or later than 75 days prior to the election day.

(b) If the district lies in more than one county, the petition for nomination must be presented to the election administrator whose county contains the largest percentage of territory in the district.

(4) If a nomination petition is not filed for an office, the county governing body of the county containing the largest percentage of the territory in the public library district shall appoint a member to fill the term. A person appointed pursuant to this subsection has the same term and obligations as a person elected to fill the office. If there are not any nomination petitions filed, an election does not need to be held.

(5) The term of office of an elected board member commences on the board member being elected and qualified. The term of office of an elected member is 4 years, except that a simple majority of the members of the first elected board shall serve a term of 2 years, with the minority of the board serving terms of 4 years. The members serving 2-year terms must be selected by lot.

(6) A vacancy in the office of a member must be filled by appointment by the remaining members of the board. The term of the appointed member expires upon the election and qualification of an elected successor or upon the election of a member to fill the unexpired term of the vacant office. The election must be held at the next scheduled school election held pursuant to 20-3-304.

(7) Members of the board of trustees serve without compensation.

(8) (a) A trustee may be removed from office by a court of competent jurisdiction pursuant to state law governing the removal of elected officials.

(b) If charges are brought against a trustee and upon a showing of good cause, the governing body of the county containing the largest percentage of territory in the public library district may suspend the trustee until the charges can be heard in a court of competent jurisdiction.

(9) A public library district may be divided into trustee zones as provided in 20-3-337.

NEW SECTION. Section 7. Duties and powers of board of trustees. (1) The board of trustees of a public library district shall:

(a) operate and maintain library property within the district and may conduct programs relating to libraries and make improvements to district property as the board considers appropriate;

(b) prepare annual budgets as required by the governing body;

(c) pay necessary expenses of district staff members when on business of the district; and

(d) prepare and submit any records required by the Montana state library.

(2) The board has all powers necessary for the betterment, operation, maintenance, and operation of library property within the territory of the public library district, including establishing library locations. In the exercise of this general grant of powers, the board may:

(a) (i) employ or contract with administrative, professional, or other personnel necessary for the operation of the district; and

(ii) contract with other entities to give and receive library services and to pay out or receive funds for those library services;

(b) lease, purchase, or contract for the purchase of personal property, including property that after purchase constitutes a fixture on real property;

(c) (i) lease, purchase, or contract for the purchase of buildings and facilities on lands controlled by the district and equip, operate, and maintain the buildings and facilities; and

(ii) receive by transfer, conditionally or otherwise, from a county or city, the ownership or control of a library building, with all or any part of its property, provided that any existing debt of the governing body transferring the interest tied to the property shall remain an obligation of the governing body and may not become an obligation of the district;

(d) adopt by resolution bylaws and rules for the operation and administration of the district;

(e) establish a property tax mill levy for the operation of the district as provided in [section 3];

(f) with the concurrence of the governing body, accept donations of land or facilities within the district to be used for district purposes;

(g) accept donations and devises of money or personal property; and

(h) exercise other powers, not inconsistent with the law, necessary for the use and management of the district.

NEW SECTION. Section 8. Public library district budget -- property tax levy. (1) The board of trustees shall annually prepare a budget for the ensuing fiscal year and present the budget to the governing body of each county with territory in the public library district at the regular budget meetings as prescribed in Title 7, chapter 6, part 23, and certify the amount of money necessary for the operation of the district for the ensuing fiscal year.

(2) The county governing body shall, at the time of levying county taxes, fix and levy a tax in mills on all taxable property within the public library district sufficient to raise the amount certified by the board of trustees and approved by the electors. The tax levied may not in any year exceed the maximum amount approved by the electorate in [section 3 or 9].

NEW SECTION. Section 9. Election to change maximum property tax mill levy. (1) The maximum property tax mill levy authorized for the operation of a public library district may be changed by an election on the question of changing the maximum mill levy.

(2) A vote on the question of raising or lowering the maximum property tax mill levy in the public library district may be initiated by:

(a) a petition signed by not less than 15% of the electorate of the district; or

(b) a resolution of the board of trustees.

(3) The petition or resolution must set forth the proposed new maximum mill levy for the operation of the public library district.

(4) Upon receipt of a petition for a change in the maximum mill levy, certified by the county clerk as sufficient under this section, or a resolution for a change adopted by the board of trustees, the county governing body shall submit to the electorate of the public library district, at the next tax election, a ballot question on changing the maximum mill levy. The election on the question of changing the maximum mill levy must be held as provided in Title 13. The question must be submitted to the electors of the district in substantially the following form:

SHALL THE PUBLIC LIBRARY DISTRICT MILL LEVY PROPERTY TAX BE INCREASED ANNUALLY BY .... MILLS, IN THE FOLLOWING MANNER? INCREASING BY .... MILLS THE AMOUNT OF PROPERTY TAX MILL LEVY ASSESSED AGAINST PROPERTY OWNERS WITHIN THE DISTRICT.

[]	FOR increasing the authorized maximum property tax mill levy for the operation of the public library district from .... to .....

[]	AGAINST increasing the authorized maximum property tax mill levy for the operation of the public library district.

NEW SECTION. Section 10. Dissolution of public library district. (1) A public library district may be dissolved after an election on the question of dissolving the district. The process of dissolving the district may be initiated by a petition of 15% of the electorate of the district or by a resolution of intent to dissolve the district adopted by either the board of trustees or the governing body in which territory of the district is located.

(2) Upon receipt of a petition that has been certified by the county clerk as sufficient under this section or upon the adoption of a resolution of intent, the governing body shall call a public hearing on the question of dissolving the public library district and cause notice of the hearing to be published in the official county newspaper.

(3) At the public hearing, the governing body shall hear testimony of interested persons regarding the dissolution of the public library district. After the public hearing, the governing body may either submit the question of dissolving the district to the electorate of the district or it may call for a public hearing on the question of altering the boundaries of the district. If the governing body calls for a public hearing on the question of altering the boundaries of the district by withdrawal of territory, it shall publish notice of the hearing in the official county newspaper. The notice must state the boundaries of the area proposed to be withdrawn from the district. After hearing testimony at the hearing, the governing body may submit the question of either dissolving the district or altering the district by withdrawal of specified territory from the district to the electorate of the district.

(4) The question must be submitted by a resolution calling for an election on either dissolving the public library district or altering the boundaries of the district by withdrawal of land from the district. The governing body shall schedule the election in conjunction with any other regularly scheduled election. The election on the question must be conducted as provided in Title 13.

(5) The question of withdrawal of territory under this section must be voted on separately by the electorate of the territory to be withdrawn and the electorate of the balance of the territory of the public library district. The question fails unless a simple majority of those voting on the question in each of the two territories authorize altering the district boundary. If the question passes, the boundary alteration is effective the following January 1. If the question fails, the governing body shall by resolution call for an election on the question of dissolving the district.

NEW SECTION. Section 11. Effect of dissolution. (1) If dissolution of a public library district is authorized by a majority of the electorate of the district, the governing body shall order the dissolution and file the order with the county clerk. The dissolution is effective upon the earlier of the following:

(a) 6 months after the date of filing of the order; or

(b) certification by the members of the board of trustees that all debts and obligations of the district have been paid, discharged, or irrevocably settled.

(2) If debts or obligations of the public library district remain unsatisfied after the dissolution of the district, the governing body shall, for as long as necessary, levy a property tax, in an amount not to exceed the amount authorized for the district, on all taxable property that is in the territory formerly comprising the district, to be used to discharge the debts of the former district. If the electors of the district lowered the maximum amount to be levied for the operation of the district within 2 calendar years prior to the election authorizing the dissolution, the governing body is authorized to levy a property tax not to exceed the levy authorized prior to the reduction of the maximum levy for the discharge of the district's obligations.

(3) Any asset of the public library district remaining after all debts and obligations have been discharged becomes the property of the county in which the asset is located.

Section 12. Section 20-3-337, MCA, is amended to read:

"20-3-337. Plan for creating single-member trustee districts. (1) The board of trustees of a school district or public library district may establish a procedure for studying the appropriateness of creating single-member trustee districts within the district.

(2) If the board considers a single-member district plan, the plan must establish single-member districts that:

(a) are as compact in area and as equal in population as possible; and

(b) provide equitable voting rights for the minorities residing within the district by ensuring that the access of minorities to the political process is not diluted in contravention of the Voting Rights Act Amendments of 1982, Public Law 97-205.

(3) If the board determines that it is in the best interest of the electors of the district, it shall:

(a) propose creation of a single-member trustee district plan;

(b) schedule and hold a public hearing on the proposed plan; and

(c) publish in a newspaper of general circulation in the district a notice of the public hearing, including a map of the proposed single-member trustee district plan, and the reasons why the board believes that the plan satisfies the criteria set forth in subsection (2).

(4) After the public hearing is held, the board of a school district shall forward a copy of the proposed single-member trustee district plan to the secretary of state and the superintendent of public instruction and in the case of a public library district, the board shall forward a copy to the governing body in which the district is located for review and comment. The copy of the proposed plan must be accompanied by:

(a) a map indicating the circulation of the newspaper in which the notice required in subsection (3) was published;

(b) the published notice of the public hearing;

(c) a map of the proposed single-member trustee district plan; and

(d) a summary of any public comments to the board regarding the proposed plan.

(5) After receiving comments from the secretary of state and the superintendent of public instruction, or in the case of a public library district, from the governing body, the board of trustees may amend, revise, approve, or disapprove the proposed plan. If the plan is adopted by the board, the board shall:

(a) inform the county superintendent of schools, or the governing body in the case of a public library district, of the plan's adoption;

(b) publish notice of the adoption in a newspaper of general circulation within the district, including identification of the boundaries of each new single-member trustee district and the implementation date of the plan; and

(c) file with the county clerk and recorder a certificate designating the boundary lines and limits of each single-member trustee district.

(6) All successors to the board of trustees must be elected in accordance with the adopted single-member trustee district plan.

(7) A change in the boundaries of a trustee district may not be made within 3 months preceding a regular school election day as provided in 20-3-304."

NEW SECTION. Section 13. Codification instruction. [Sections 1 through 11] are intended to be codified as an integral part of Title 22, chapter 1, part 4, and the provisions of Title 22, chapter 1, part 4, apply to [sections 1 through 11].

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