HOUSE BILL NO. 589

INTRODUCED BY L. MCCULLOCH

A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE MINIMUM AMOUNT OF LIABILITY INSURANCE THAT A SCHOOL DISTRICT SHALL CARRY ON A SCHOOL BUS; PROVIDING FOR COMPLIANCE WITH ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION BY REQUIRING APPROVAL BY THE ELECTORATE OF A TAX INCREASE PRIOR TO INCREASING THE LIABILITY INSURANCE; SUPERSEDING THE UNFUNDED MANDATE LAWS; AMENDING SECTION 20-10-109, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE."

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

NEW SECTION. Section 1. Liability insurance increasing property taxes -- submission to electorate required. An increase in liability insurance that will result in a tax increase may not occur unless the tax increase has been approved by the electorate of the school district as required by Article VIII, section 17, of the Montana constitution.

Section 2. Section 20-10-109, MCA, is amended to read:

"20-10-109. Liability insurance for school bus. Whenever a bus is owned and operated by a district or the bus is operated by a private party under a contract but the contract does not require the private party to carry liability insurance, the trustees shall carry automobile bodily injury and liability insurance in an amount not less than $750,000 for each person and $1.5 million for each accident for each bus operated by or under contract with the district."

NEW SECTION. Section 3. Unfunded mandate laws superseded. The provisions of [this act] expressly supersede and modify the requirements of 1-2-112 through 1-2-116.

NEW SECTION. Section 4. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [section 1] is void.

NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 2000.

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