AN ACT REVISING LAWS GOVERNING CONSERVATION DISTRICTS; PROVIDING IMMUNITY TO CONSERVATION DISTRICTS AND THEIR SUPERVISORS AND EMPLOYEES; AUTHORIZING CONSERVATION DISTRICTS AND OTHER POLITICAL SUBDIVISIONS TO SATISFY A SETTLEMENT USING FUNDS AUTHORIZED BY 2-9-316; AUTHORIZING CONSERVATION DISTRICTS TO EXECUTE THEIR DUTIES AND RESPONSIBILITIES RELATING TO STREAMBED PRESERVATION UNDER THE PROCEDURES OF TITLE 76, CHAPTER 15; AUTHORIZING CONSERVATION DISTRICTS TO BE INVOLVED IN THE DEVELOPMENT OF VARIOUS WATER PROJECTS; AUTHORIZING CONSERVATION DISTRICTS TO APPLY FOR, ACCEPT, AND EXPEND FUNDS, GRANTS, AND LOANS; AMENDING SECTIONS 2-9-316, 76-15-320, 76-15-403, AND 76-15-501, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

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

Section 1. Section 2-9-316, MCA, is amended to read:

"2-9-316. Judgments against governmental entities except state. Except as provided in 15-1-402, a political subdivision of the state shall satisfy a final judgment or settlement out of funds that may be available from the following sources:

(1) insurance;

(2) the general fund or any other funds legally available to the governing body;

(3) a property tax, otherwise properly authorized by law, collected by a special levy authorized by law, in an amount necessary to pay any unpaid portion of the judgment or settlement, except that the levy may not exceed 10 mills;

(4) proceeds from the sale of bonds issued by a county, city, or school district for the purpose of deriving revenue for the payment of the judgment or settlement liability. The governing body of a county, city, or school district may issue bonds pursuant to procedures established by law. Property taxes may be levied to amortize the bonds, provided the levy for payment of any bonds, settlements, or judgments may not exceed, in the aggregate, 10 mills annually."

Section 2. Section 76-15-320, MCA, is amended to read:

"76-15-320. Legal status of district -- immunity. (1) A conservation district and the supervisors of a conservation district may:

(a) sue and be sued in the name of the district;

(b) satisfy a judgment or settlement pursuant to 2-9-316;

(c) have a seal that is judicially noticed;

(d) have perpetual succession unless terminated as provided in this chapter;

(e) implement Title 75, chapter 7, part 1; and

(f) make and execute contracts and other instruments necessary or convenient to the exercise of its powers.

(2) A conservation district, conservation district supervisor, or conservation district employee is immune from suit for any liability that might otherwise be incurred or imposed for an act or omission committed while engaged in conservation district activities pursuant to Title 75, chapter 7, part 1, or this chapter, unless the act or omission constitutes gross negligence, was committed in bad faith, or was committed with malicious purpose."

Section 3. Section 76-15-403, MCA, is amended to read:

"76-15-403. Operation of projects and works. A conservation district and the supervisors of the conservation district may:

(1) conduct soil, vegetation, and water resources conservation projects on lands within the districts upon obtaining the consent of the owner of the lands or the necessary rights or interest in the lands;

(2) carry out preventive and control measures and works of improvement for flood prevention and the conservation, development, utilization, and disposal of water , including but not limited to engineering operations, range management, methods of cultivation, growing vegetation, changes in use of land, and the measures listed in 76-15-101(3) on :

(a) lands within the district and owned or controlled by the state with the cooperation of the agency administering and having jurisdiction of the lands; or

(b) any other lands within the district upon obtaining the consent of the occupier of the lands or the necessary rights or interests in the lands;

(3) cooperate or enter into agreements with and, within the limits of appropriations duly made available to it by law, furnish financial or other aid to any governmental or other agency or any occupier of lands within the district , subject to any conditions that the supervisors consider necessary to advance the purposes of this chapter, to conduct or complete:

(a) erosion control and prevention operations; and

(b) works of improvement for flood prevention and the conservation, development, utilization, and disposal of water within the district ;

(4) construct, improve, operate, and maintain any structures that are necessary or convenient for the performance of any of the operations authorized in this chapter;

(5) purchase, lease, or otherwise take over and administer projects undertaken by the United States or the state within the district boundaries for:

(a) soil conservation;

(b) flood prevention;

(c) drainage;

(d) irrigation;

(e) water management;

(f) erosion control; or

(g) erosion prevention ;

(6) manage, as agent of the United States or of the state any of the types of projects identified in subsection (5) within its boundaries;

(7) act as agent for the United States or for the state in connection with the acquisition, construction, operation, or administration of any of the types of projects identified in subsection (5) within its boundaries;

(8) accept donations, gifts, and contributions in money, services, materials, or otherwise from the United States, from the state, or from any other source and use or expend funds or other contributions to conduct its operations;

(9) execute its duties and responsibilities under Title 75, chapter 7, part 1, pursuant to the procedures of this chapter; or

(10) execute projects for the conservation, development, storage, distribution, and utilization of water, including but not limited to projects for the following purposes:

(a) irrigation;

(b) flood prevention;

(c) drainage;

(d) fish and wildlife;

(e) recreation;

(f) development of power; or

(g) supplying water for fire protection, livestock, or public, domestic, industrial, or other uses."

Section 4. Section 76-15-501, MCA, is amended to read:

"76-15-501. Financial management. A conservation district and the supervisors of a conservation district may:

(1) borrow money and incur indebtedness and issue bonds or other evidence of indebtedness;

(2) refund or retire an indebtedness or lien against the district or property of the district;

(3) establish and collect rates, fees, tolls, rents, or other charges for the use of facilities or for services or materials provided. Revenue from these sources may be expended in carrying out the purposes and provisions of this chapter.

(4) levy taxes as provided in this part to pay any obligation of the district and to accomplish the purposes of this chapter as provided in this chapter;

(5) apply for and receive federal revenue sharing funds in order to carry out the purposes and provisions of this chapter;

(6) establish a conservation practice loan program as provided in this part; or

(7) apply for, accept, administer, and expend funds, grants, and loans from the state or federal government or any other source."

Section 5. Two-thirds vote required -- contingent voidness. (1) Because [section 2] limits governmental liability, Article II, section 18, of the Montana constitution requires a vote of two-thirds of the members of each house of the legislature for passage.

(2) If [this act] is not approved by at least two-thirds of the members of each house, then [section 2] is void.

Section 6. Effective date. [This act] is effective on passage and approval.

Section 7. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109, to all occurrences prior to [the effective date of this act] for which a cause of action has not been filed and served upon a conservation district.

- END -

I hereby certify that the within bill,

HB 0284, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 284

INTRODUCED BY B. STORY, M. COLE, L. GROSFIELD, G. JERGESON, M. MCCANN, L. NELSON, K. OHS, S. ROSE, B. TASH, J. TESTER

AN ACT REVISING LAWS GOVERNING CONSERVATION DISTRICTS; PROVIDING IMMUNITY TO CONSERVATION DISTRICTS AND THEIR SUPERVISORS AND EMPLOYEES; AUTHORIZING CONSERVATION DISTRICTS AND OTHER POLITICAL SUBDIVISIONS TO SATISFY A SETTLEMENT USING FUNDS AUTHORIZED BY 2-9-316; AUTHORIZING CONSERVATION DISTRICTS TO EXECUTE THEIR DUTIES AND RESPONSIBILITIES RELATING TO STREAMBED PRESERVATION UNDER THE PROCEDURES OF TITLE 76, CHAPTER 15; AUTHORIZING CONSERVATION DISTRICTS TO BE INVOLVED IN THE DEVELOPMENT OF VARIOUS WATER PROJECTS; AUTHORIZING CONSERVATION DISTRICTS TO APPLY FOR, ACCEPT, AND EXPEND FUNDS, GRANTS, AND LOANS; AMENDING SECTIONS 2-9-316, 76-15-320, 76-15-403, AND 76-15-501, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.