HOUSE BILL NO. 631

INTRODUCED BY B. REHBEIN

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR THE ESTABLISHMENT OF THE MONTANA RESIDENT STUDENT VOCATIONAL-TECHNICAL TRAINING SCHOLARSHIP PROGRAM; PROVIDING FOR THE ADMINISTRATION OF THE MONTANA RESIDENT STUDENT VOCATIONAL-TECHNICAL TRAINING SCHOLARSHIP PROGRAM; APPROPRIATING FUNDS IN AN AMOUNT ESTIMATED TO BE THE TAX TO BE RECEIVED ON THE CAPITAL GAIN ON THE SALE OF THE GENERATION ASSETS OF THE MONTANA POWER COMPANY, BUT NOT EXCEEDING $20 MILLION, TO ENDOW THE MONTANA RESIDENT STUDENT VOCATIONAL-TECHNICAL TRAINING SCHOLARSHIP PROGRAM; PROVIDING A STATUTORY APPROPRIATION OF THE INTEREST AND INCOME FROM THE MONTANA RESIDENT STUDENT VOCATIONAL-TECHNICAL TRAINING SCHOLARSHIP ACCOUNT; CREATING THE MONTANA RESIDENT STUDENT VOCATIONAL-TECHNICAL TRAINING SCHOLARSHIP ADVISORY COUNCIL; AMENDING SECTION 17-7-502, MCA; AND PROVIDING EFFECTIVE DATES."

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

NEW SECTION. Section 1. Short title. [Sections 1 through 10] may be cited as "The Montana Resident Student Vocational-Technical Training Scholarship Program".

NEW SECTION. Section 2. Purpose. The purpose of [sections 1 through 10] is to establish a program to provide financial assistance to resident Montana postsecondary students who have pursued or are pursuing vocational-technical training.

NEW SECTION. Section 3. Definitions. As used in [sections 1 through 10], the following definitions apply:

(1) "Board" means the board of regents of higher education created by Article X, section 9, subsection (2), of the Montana constitution and 2-15-1505.

(2) "Council" means the student vocational-technical training scholarship program advisory council created in [section 11].

(3) "Eligible educational institution" means an institution that has been approved by the board and that provides vocational-technical training.

(4) "Resident student" means a person who:

(a) was or is a Montana resident at the time of enrolling in an eligible educational institution;

(b) remained or remains a Montana resident while enrolled;

(c) (i) attended or is attending an eligible educational institution; or

(ii) attended an educational institution that, during the time that the student was enrolled, provided courses or programs similar to courses or programs described in 20-25-301(17). During the time enrolled, the student must also have been enrolled in courses or programs similar to the courses or programs described in 20-25-301(17).

(d) was or is a Montana resident at the time of application for participation in the student scholarship program; and

(e) remains a Montana resident while participating in the student scholarship program.

(5) "Student scholarship program" means the program established in [section 4] and administered pursuant to [sections 1 through 10].

(6) "Vocational-technical training" includes the courses or programs described under 20-25-301(17) and courses or programs similar to those courses or programs that are sanctioned for the student scholarship program by the commissioner.

NEW SECTION. Section 4. Resident vocational-technical training scholarship program created. There is a resident vocational-technical training scholarship program, administered pursuant to [sections 1 through 10] by the commissioner in consultation with the board and the council.

NEW SECTION. Section 5. Duties of commissioner relative to program. In consultation with the board and the council, the commissioner shall:

(1) act as administrator on scholarships of money, upon terms and conditions as the board may prescribe, to assist any resident student in meeting the student's educational expenses;

(2) whenever considered to be necessary or appropriate, make and execute agreements, contracts, or other instruments with any public or private person or agency, including the United States secretary of education, for the administration of the student scholarship program;

(3) provide for the operation of the student scholarship program to conduct scholarship approval processing, essential and special scholarship servicing, preclaims assistance, supplemental preclaims assistance, claim processing, and other services that promote student and school participation and scholarship availability to students;

(4) determine the amount of individual scholarships, up to a maximum of $1,000 annually;

(5) establish procedures for fiscal control, fund accounting, and necessary reports;

(6) adopt rules to administer the student scholarship program, including the establishment of criteria for student eligibility, which must include a determination of need; and

(7) perform any other duties necessary for the administration of the student scholarship program.

NEW SECTION. Section 6. Deposit of funds. Funds received by the commissioner for the student scholarship program, including funds for the administration of [sections 1 through 10], must be deposited in the state treasury in the account established in [section 8].

NEW SECTION. Section 7. Student vocational-technical training scholarship program advisory council -- duties. The council shall:

(1) advise the board and the commissioner on policies, rules, and procedures necessary for accomplishing the provisions of [sections 1 through 10]; and

(2) monitor the program to ensure that the students and schools are adequately served.

NEW SECTION. Section 8. Student scholarship account -- corpus nonexpendable -- statutory appropriation. (1) There is a student scholarship account of the nonexpendable trust fund type provided for in 17-2-102.

(2) The commissioner shall credit to the account established in subsection (1) all money designated for the student scholarship program by the legislature or by any other public or private source. All expenses incurred by the board or the commissioner in connection with the student scholarship program, not to exceed 5% of the total amount of funds awarded during the year to students participating in the student scholarship program, must be charged against the portion of the account described in subsection (3)(b).

(3) Money in the account that is available under subsection (3)(b) and that is not needed to meet current obligations of the commissioner in exercising the duties and responsibilities as administrator, as provided for in [sections 1 through 10], must be invested in accordance with the provisions of Title 17, chapter 6. Interest and income on the account must be allocated as follows:

(a) 10% to be deposited to the credit of the account; and

(b) 90% to be used for the state scholarship program as follows:

(i) 50% to be used to provide grants to students participating in the student scholarship program; and

(ii) 50% to be used to reimburse students participating in the student scholarship program for the interest costs incurred on loans used to attend an eligible educational institution.

(4) (a) Except as provided in subsection (4)(b), money on deposit in the student scholarship account may not be appropriated or expended for any purpose other than the student scholarship program, except by a two-thirds majority vote in each house of the legislature.

(b) The interest and income dedicated to the student scholarship program under subsection (3)(b) is statutorily appropriated, as provided in 17-7-502, to the commissioner for the purposes of the student scholarship program.

NEW SECTION. Section 9. No state obligation. The legislature is not obligated to appropriate any money to endow, operate, administer, or otherwise fund the student scholarship program. For the purpose of the student scholarship program, the board, the commissioner, or the council or any agent of the board, the commissioner, or the council may not obligate the credit of the state.

NEW SECTION. Section 10. Dissolution -- disposition of money. (1) The student scholarship program may not be dissolved until all contractual obligations have been satisfied.

(2) Upon dissolution of the program or the cessation of the program's activities, all property and money of the board or the commissioner relating to the student scholarship program and all funds remaining in the student scholarship account vests in the state and must be credited to the state general fund.

NEW SECTION. Section 11. Student vocational-technical training scholarship program advisory council -- terms -- compensation. (1) There is a student vocational-technical training scholarship program advisory council appointed by the board.

(2) The council consists of six members. Each member must be appointed for a term of 3 years.

(3) Appointments to the council must conform to the following requirements:

(a) one member must be an employer who employs or has employed within the past 3 years one or more graduates of vocational-technical training;

(b) two members must be representatives of an eligible educational institution;

(c) one member must be a faculty member of an eligible educational institution;

(d) one member must be a full-time student registered at an eligible educational institution; and

(e) one member, who is a nonvoting member, must be a representative of the office of the commissioner.

(4) The council shall elect a presiding officer from its membership at the first meeting of each fiscal year and may elect other officers considered by the council to be necessary.

(5) Each member of the council is entitled to compensation and reimbursement for travel expenses as provided in 2-15-122(5).

Section 12. Section 17-7-502, MCA, is amended to read:

"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.

(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:

(a) The law containing the statutory authority must be listed in subsection (3).

(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.

(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-26-1503; [section 8]; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.

(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)

17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.

(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:

(a) The law containing the statutory authority must be listed in subsection (3).

(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.

(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 20-26-1503; [section 8]; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.

(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"

NEW SECTION. Section 13. Appropriation. On July 1, 1999, there is appropriated from the general fund, as an endowment to the account created in [section 8], the amount of revenue estimated as and identified as "One-Time Capital Gain on Generation Assets" in House Joint Resolution No. 2 of the 56th legislature, or $20 million, whichever is less.

NEW SECTION. Section 14. Codification instruction. (1) [Sections 1 through 10] are intended to be codified as an integral part of Title 20, and the provisions of Title 20 apply to [sections 1 through 10].

(2) [Section 11] is intended to be codified as an integral part of Title 2, chapter 15, part 15, and the provisions of Title 2, chapter 15, part 15, apply to [section 11].

NEW SECTION. Section 15. Coordination instruction. If House Joint Resolution No. 2 of the 56th legislature is not adopted by the legislature or is adopted but does not contain a line item for or reference to a "One-Time Capital Gain on Generation Assets", then the amount of money to be deposited on July 1, 1999, from the state general fund as an endowment to the account created in [section 8] is $20 million.

NEW SECTION. Section 16. Effective dates. (1) Except as provided in subsection (2), [this act] is effective on passage and approval.

(2) [Sections 8, 12, and 13] are effective July 1, 1999.

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