HOUSE BILL NO. 419

INTRODUCED BY L. MCCULLOCH, B. LAWSON, A. BISHOP, K. GILLAN, R. SOMERVILLE, S. STANG

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING THE TRUSTEES OF A SCHOOL DISTRICT TO ENTER INTO A CONTRACT WITH THE GOVERNING BODY OF ANOTHER POLITICAL SUBDIVISION WITHIN ITS COUNTY OR IN AN ADJOINING COUNTY FOR JOINT CONSTRUCTION OF A FACILITY; AMENDING SECTIONS 20-9-404 AND 20-9-405, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."

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

Section 1. Section 20-9-404, MCA, is amended to read:

"20-9-404. Contracts and bonds for joint construction. (1) The trustees of a school district may enter into a contract with the trustees of any school district within the county , with any school district in an adjoining county, with the governing body of another political subdivision within the county in which the school district is located, or with the governing body of a political subdivision of a county adjoining the school district to provide for the joint construction of a facility upon terms and conditions mutually agreed upon between the districts.

(2) The trustees of any district executing a contract in accordance with this section may levy taxes and issue bonds for the purpose of constructing the facilities authorized by this section. "

Section 2. Section 20-9-405, MCA, is amended to read:

"20-9-405. Proportional joint ownership -- disposition of money. The facility constructed under 20-9-404 must be jointly owned by the school districts or other political subdivisions contributing to its construction in proportion to the contribution of each political subdivision. The sale or other disposition of a district's interest in the facility must be made in accordance with 20-6-604. Money received from the sale or disposition of a district's interest in a facility must be credited to the debt service fund, building fund, general fund, or any combination of these three funds, at the discretion of the trustees."

NEW SECTION. Section 3. Effective date -- applicability. [This act] is effective July 1, 1999, and applies to contracts entered into on or after [the effective date of this act].

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