AN ACT CREATING THE BULL TROUT AND CUTTHROAT TROUT ENHANCEMENT PROGRAM; PROVIDING FOR THE ENHANCEMENT OF MONTANA BULL TROUT AND CUTTHROAT TROUT POPULATIONS THROUGH VOLUNTARY ENHANCEMENT OF SPAWNING AREAS AND OTHER HABITATS FOR THE NATURAL REPRODUCTION OF BULL TROUT AND CUTTHROAT TROUT; DIRECTING THAT A PORTION OF FUNDING FROM VARIOUS SOURCES, INCLUDING FUNDS APPROPRIATED OR AVAILABLE TO THE DEPARTMENT OF FISH, WILDLIFE, AND PARKS AND FROM THE INTEREST ON THE RESOURCE INDEMNITY TRUST FUND, BE USED TO FUND THE BULL TROUT AND CUTTHROAT TROUT ENHANCEMENT PROGRAM; DIRECTING THE DEPARTMENT OF FISH, WILDLIFE, AND PARKS TO ADMINISTER THE PROGRAM; APPROPRIATING FUNDS FOR THE ENHANCEMENT PROGRAM; REVISING THE MEMBERSHIP OF THE FUTURE FISHERIES REVIEW PANEL AND EXTENDING THE TERMINATION DATE OF THE FUTURE FISHERIES IMPROVEMENT PROGRAM; AMENDING SECTIONS 15-38-202 AND 87-1-273, MCA, AND SECTION 5, CHAPTER 463, LAWS OF 1995; AND PROVIDING EFFECTIVE DATES AND A TERMINATION DATE.

WHEREAS, the bull trout was federally listed as a threatened species under the Endangered Species Act of 1973 in May of 1998; and

WHEREAS, the cutthroat trout is listed as a species of special concern and is a candidate for listing under the Endangered Species Act; and

WHEREAS, the 56th Legislature recognizes the economic and social impacts that may accrue to businesses and individuals in western Montana as federal land-use restrictions to protect and recover the bull trout and cutthroat trout are imposed; and

WHEREAS, significant funding opportunities exist to provide revenue to address land-use impacts to bull trout and cutthroat trout through cooperative efforts with landowners; and

WHEREAS, the 56th Legislature finds the mechanism provided in the future fisheries improvement program to be a highly successful method for on-the-land restoration of river and stream habitat referred to by the United States Secretary of the Interior, Bruce Babbitt, as "a model for other states".

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

Section 1. Bull trout and cutthroat trout enhancement program. (1) In order to enhance bull trout and cutthroat trout populations through habitat restoration, reductions in species competition, and natural reproduction, the department shall, through its future fisheries improvement program, restore habitats and spawning areas and reduce species competition in rivers, lakes, and streams for Montana's bull trout and cutthroat trout.

(2) In order to implement this section, the department may expend revenue from the bull trout and cutthroat trout enhancement program for one additional full-time employee and one contractor to assist the review panel.

(3) The department shall also work with the department of transportation to implement bull trout and cutthroat trout enhancement by providing annual updates to the state transportation improvement program regarding possible additions to projects that will benefit the enhancement effort. State transportation improvement plan funds expended for bull trout and cutthroat trout must be accounted for separately and reported annually.

Section 2. Funding of future fisheries improvement program's bull trout and cutthroat trout enhancement program. For the period inclusive of the fiscal biennium ending June 30, 2009, the following amounts must be expended to enhance bull trout and cutthroat trout populations, as directed by [section 1]:

(1) $750,000 redirected from the fiscal year 1999 ending fund balance of the general license account of the department of fish, wildlife, and parks;

(2) as determined by the transportation commission, the largest practicable portion of funding for the department of transportation's state transportation improvement program that may be used for bull trout and cutthroat trout enhancement purposes each of fiscal years 2000 and 2001.

Section 3. Section 15-38-202, MCA, is amended to read:

"15-38-202. (Temporary) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. Only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts may be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.

(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:

(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs;

(ii) $1 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants; and

(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants.

(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:

(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;

(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and

(iii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.

(c) The remainder of the interest income is allocated as follows:

(i) Thirty-six percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.

(ii) Eighteen percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.

(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.

(iv) Six percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.

(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session.

15-38-202. (Effective July 1, 1999) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. Only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts may be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.

(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:

(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs;

(ii) $1 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants;

(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants; and

(iv) $500,000 to the department of fish, wildlife, and parks for the purposes of [section 1]. The future fisheries review panel shall approve and fund qualified mineral reclamation projects before other types of qualified projects.

(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:

(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;

(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and

(iii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.

(c) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund up to $200,000 to be deposited in the orphan share account established in 75-10-743.

(d) The remainder of the interest income is allocated as follows:

(i) Thirty-six percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.

(ii) Eighteen percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.

(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.

(iv) Six percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.

(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session."

Section 4. Section 87-1-273, MCA, is amended to read:

"87-1-273. (Temporary) Future fisheries review panel -- purpose -- appointment and duties. (1) The governor or governor's designee shall call for nominees for, accept and review recommendations for, and appoint a future fisheries review panel. The panel must consist of at least 13 members, including but not limited to:

(a) one member who is a representative of conservation districts;

(b) one member with expertise in commercial agriculture ;

(c) one member with expertise in irrigated agriculture;

(d) one member from the private sector who is a fisheries restoration professional;

(e) two members who are licensed Montana anglers;

(f) one member of the house of representatives, chosen by the speaker of the house;

(g) one member of the senate, chosen by the committee on committees;

(h) one member with expertise in silviculture;

(i) one member who is a Montana high school student;

(j) one member with expertise in mining reclamation techniques;

(k) one member with expertise in fisheries; and

(l) one ex officio member from the Montana department of transportation who has experience in highway impacts mitigation.

(2) A member appointed to the review panel shall serve a 2-year term and may be reappointed.

(3) The purpose of the review panel is to:

(a) review, at least every 6 months, proposed projects that have been submitted by public or private entities for funding;

(b) determine what projects are eligible for inclusion in the future fisheries improvement program;

(c) approve or reject proposed projects; and

(d) forward a list of approved projects to the department.

(4) To be eligible for funding, a project must be generated at the local level and must be developed and presented to the review panel by the department, local landowners, conservation districts, or other interested citizens. Before consideration of any project that involves streambed or streambank restoration, a change in the use of water, or any other purpose that affects a particular property owner's interest in land or water, the review panel is required to find that the project is being proposed for funding with the voluntary approval of the participating property owner. (Terminates July 1, 2005--sec. 5, Ch. 463, L. 1995.)"

Section 5. Appropriation. There is appropriated $750,000 from the general license account to the department of fish, wildlife, and parks for the 2001 biennium for the purposes of [section 1]. Funds from the appropriation in this section that remain unexpended after the 2001 biennium may be expended during the 2003 biennium for the purposes of [section 1].

Section 6. Section 5, Chapter 463, Laws of 1995, is amended to read:

"Section 5. Termination. (1) [Sections 1 and 2] terminate July 1, 2009.

(2) [Section 3] terminates July 1, 1997."

Section 7. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 87, chapter 1, part 2, and the provisions of Title 87, chapter 1, part 2, apply to [section 1].

Section 8. Effective dates. (1) Except as provided in subsection (2), [this act] is effective July 1, 1999.

(2) [Section 3] is effective July 1, 2001.

Section 9. Termination. [This act] terminates July 1, 2009.

- END -

I hereby certify that the within bill,

HB 0647, 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. 647

INTRODUCED BY B. RANEY, P. CLARK, W. CRISMORE, S. DOHERTY, S. GALLUS, L. GRINDE, L. GROSFIELD, G. GUTSCHE, J. HARP, H. HARPER, J. MERCER, D. MOOD, P. SLITER,

S. STANG, E. SWANSON

AN ACT CREATING THE BULL TROUT AND CUTTHROAT TROUT ENHANCEMENT PROGRAM; PROVIDING FOR THE ENHANCEMENT OF MONTANA BULL TROUT AND CUTTHROAT TROUT POPULATIONS THROUGH VOLUNTARY ENHANCEMENT OF SPAWNING AREAS AND OTHER HABITATS FOR THE NATURAL REPRODUCTION OF BULL TROUT AND CUTTHROAT TROUT; DIRECTING THAT A PORTION OF FUNDING FROM VARIOUS SOURCES, INCLUDING FUNDS APPROPRIATED OR AVAILABLE TO THE DEPARTMENT OF FISH, WILDLIFE, AND PARKS AND FROM THE INTEREST ON THE RESOURCE INDEMNITY TRUST FUND, BE USED TO FUND THE BULL TROUT AND CUTTHROAT TROUT ENHANCEMENT PROGRAM; DIRECTING THE DEPARTMENT OF FISH, WILDLIFE, AND PARKS TO ADMINISTER THE PROGRAM; APPROPRIATING FUNDS FOR THE ENHANCEMENT PROGRAM; REVISING THE MEMBERSHIP OF THE FUTURE FISHERIES REVIEW PANEL AND EXTENDING THE TERMINATION DATE OF THE FUTURE FISHERIES IMPROVEMENT PROGRAM; AMENDING SECTIONS 15-38-202 AND 87-1-273, MCA, AND SECTION 5, CHAPTER 463, LAWS OF 1995; AND PROVIDING EFFECTIVE DATES AND A TERMINATION DATE.