AN ACT REVISING THE SCHEDULE OF BASE AID PAYMENTS TO SCHOOL DISTRICTS TO COMPLETE THE DISTRIBUTION IN FULL PRIOR TO THE END OF THE SCHOOL FISCAL YEAR; AMENDING SECTION 20-9-344, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.

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

Section 1. Section 20-9-344, MCA, is amended to read:

"20-9-344. Duties of board of public education for distribution of BASE aid. (1) The board of public education shall administer and distribute the BASE aid and state advances for county equalization in the manner and with the powers and duties provided by law. To this end, the board of public education shall:

(a) adopt policies for regulating the distribution of BASE aid and state advances for county equalization in accordance with the provisions of law;

(b) have the power to require reports from the county superintendents, budget boards, county treasurers, and trustees as it considers necessary; and

(c) order the superintendent of public instruction to distribute the BASE aid on the basis of each district's annual entitlement to the aid as established by the superintendent of public instruction. In ordering the distribution of BASE aid, the board of public education may not increase or decrease the BASE aid distribution to any district on account of any difference that may occur during the school fiscal year between budgeted and actual receipts from any other source of school revenue.

(2) The board of public education may order the superintendent of public instruction to withhold distribution of BASE aid from a district when the district fails to:

(a) submit reports or budgets as required by law or rules adopted by the board of public education; or

(b) maintain accredited status.

(3) Prior to any proposed order by the board of public education to withhold distribution of BASE aid or county equalization money, the district is entitled to a contested case hearing before the board of public education, as provided under the Montana Administrative Procedure Act.

(4) If a district or county receives more BASE aid than it is entitled to, the county treasurer shall return the overpayment to the state upon the request of the superintendent of public instruction in the manner prescribed by the superintendent of public instruction.

(5) Except as provided in 20-9-347(3), the BASE aid payment must be distributed according to the following schedule:

(a) from August to October of the school fiscal year, 10% of the direct state aid to each district;

(b) from December to April of the school fiscal year, 10% of the direct state aid to each district;

(c) in November of the school fiscal year, one-half of the guaranteed tax base aid payment to each district or county that has submitted a final budget to the superintendent of public instruction in accordance with the provisions of 20-9-134;

(d) in May of the school fiscal year, the remainder of the guaranteed tax base aid payment to each district or county; and

(e) in June of the school fiscal year, the remaining payment to each district of direct state aid .

(6) The distribution provided for in subsection (5) must occur by the last working day of each month."

Section 2. Effective date. [This act] is effective July 1, 1999.

Section 3. Applicability. [This act] applies to school fiscal years beginning after June 30, 1999.

- END -

I hereby certify that the within bill,

SB 0031, originated in the Senate.

Secretary of the Senate

President of the Senate

Signed this	day

of	, .

Speaker of the House

Signed this	day

of	, .

SENATE BILL NO. 31

INTRODUCED BY S. STANG

BY REQUEST OF THE OFFICE OF PUBLIC INSTRUCTION

AN ACT REVISING THE SCHEDULE OF BASE AID PAYMENTS TO SCHOOL DISTRICTS TO COMPLETE THE DISTRIBUTION IN FULL PRIOR TO THE END OF THE SCHOOL FISCAL YEAR; AMENDING SECTION 20-9-344, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.