HOUSE BILL NO. 653

INTRODUCED BY E. BERGSAGEL

A BILL FOR AN ACT ENTITLED: "AN ACT SUBMITTING TO THE QUALIFIED ELECTORS OF MONTANA AN AMENDMENT TO ARTICLE VIII OF THE MONTANA CONSTITUTION TO LIMIT GOVERNMENT FINANCE BY REQUIRING AT LEAST A TWO-THIRDS VOTE TO INCREASE TAXES OR FEES; PROVIDING A DEFINITION; AND PROVIDING AN EFFECTIVE DATE."

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

NEW SECTION. Section 1. Article VIII of The Constitution of the State of Montana is amended by adding a new section 17 that reads:

Section 17. Restrictions on government finance. (1) The state, a county, a city, a town, a school district, or any other governmental entity shall not increase any tax or fee, impose a surcharge on any existing tax or fee, or impose a new tax or fee unless authorized:

(a) for state taxes, by a two-thirds vote of the members of each house of the legislature; or

(b) for fees imposed by a state governmental entity or for taxes or fees imposed by any other governmental entity, by a two-thirds vote of its governing body.

(2) A measure that may result in an increase in any tax or fee, a surcharge on any tax or fee, or a new tax or fee shall not contain any other matter.

(3) Subsection (1) does not apply to taxes, fees, or surcharges pledged to the payment of bonds or other indebtedness authorized in accordance with applicable law prior to January 1, 2001.

(4) For the purposes of this section, a "governmental entity" does not include an insurance guaranty association.

NEW SECTION. Section 2. Severability. If a part of this amendment is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of this amendment is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

NEW SECTION. Section 3. Submission to electorate. This amendment shall be submitted to the qualified electors of Montana at the general election to be held in November 2000 by printing on the ballot the full title of this act and the following:

[]	FOR requiring a two-thirds vote for tax increases or fee increases.

[]	AGAINST requiring a two-thirds vote for tax increases or fee increases.

NEW SECTION. Section 4. Effective date. If approved by the electorate, this act is effective January 1, 2001.

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