SENATE BILL NO. 248

INTRODUCED BY T. KEATING

A BILL FOR AN ACT ENTITLED: "AN ACT ELIMINATING DIRECT ALLOCATION OF PORTIONS OF CERTAIN NATURAL RESOURCE-RELATED TAX PROCEEDS TO THE GROUND WATER ASSESSMENT ACCOUNT AND DIRECTING THEM INTO THE RESOURCE INDEMNITY TRUST; AUTHORIZING APPROPRIATIONS FROM THE RENEWABLE RESOURCE GRANT AND LOAN ACCOUNT FOR PURPOSES OF THE GROUND WATER CHARACTERIZATION PROGRAM AND THE GROUND WATER MONITORING PROGRAM AND TRANSFERRING $666,000 EACH FISCAL YEAR INTO THE GROUND WATER ASSESSMENT ACCOUNT; DIRECTING CURRENT GROUND WATER PROGRAM FEE COLLECTIONS INTO THE GROUND WATER ASSESSMENT ACCOUNT; DIRECTING THE MONTANA BUREAU OF MINES AND GEOLOGY TO EVALUATE ADDITIONAL OPPORTUNITIES FOR DIVERSIFICATION OF PROGRAM RESOURCES AND FUNDING; AMENDING SECTIONS 15-37-117, 15-38-106, 85-1-604, 85-2-905, AND 85-2-906, MCA; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE."

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

Section 1. Section 15-37-117, MCA, is amended to read:

"15-37-117. Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501, be allocated as follows:

(a) to the credit of the general fund of the state, 58% of total collections each year;

(b) to the state special revenue fund to the credit of a hard-rock mining impact trust account, 1.5% of total collections each year;

(c) to the orphan share state special revenue account established in 75-10-743, 8.5% of total collections each year;

(d) to the resource indemnity trust fund established in 15-38-201, 2.2% of total collections each year;

(e) to the reclamation and development grants program state special revenue account, 4.8% of total collections each year; and

(f) to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan, or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:

(i) not less than 40% to the county hard-rock mine trust reserve account established in 7-6-2225; and

(ii) all money not allocated to the account pursuant to subsection (1)(f)(i) to be further allocated as follows:

(A) 33 1/3% is allocated to the county for planning or economic development activities;

(B) 33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and

(C) 33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.

(2) When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(f) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.

(3) The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(f). The allocation to the county described by subsection (1)(f) is a statutory appropriation pursuant to 17-7-502."

Section 2. Section 15-38-106, MCA, is amended to read:

"15-38-106. Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before March 31, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

(2) The department shall, in accordance with the provisions of 15-1-501, deposit the proceeds of the tax in the resource indemnity trust fund , except that:

(a) 10% of the proceeds must be deposited in the renewable resource grant and loan program state special revenue account established by 85-1-604; and

(b) 30% of the proceeds must be deposited in the reclamation and development grants account established by 90-2-1104; and

(c) at the beginning of each fiscal year, there is allocated from the proceeds of the tax up to $200,000 to be deposited in the orphan share account established in 75-10-743.

(3) Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

(4) The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer."

Section 3. Section 85-1-604, MCA, is amended to read:

"85-1-604. Renewable resource grant and loan program state special revenue account created -- revenue allocated -- appropriations from account -- limitations. (1) There is a renewable resource grant and loan program state special revenue account within the state special revenue fund established in 17-2-102.

(2) Except to the extent that they are required to be credited to the renewable resource loan debt service fund pursuant to 85-1-603, there must be paid into the renewable resource grant and loan program state special revenue account:

(a) all revenue of the works and other money as provided in 85-1-332;

(b) the interest income of the resource indemnity trust fund as provided in and subject to the conditions of 15-38-202;

(c) the excess of the coal severance tax proceeds allocated by 85-1-603 to the renewable resource loan debt service fund above debt service requirements as provided in and subject to the conditions of 85-1-619;

(d) any fees or charges collected by the department pursuant to 85-1-616 for the servicing of loans, including arrangements for obtaining security interests; and

(e) the resource indemnity and ground water assessment tax proceeds as provided in 15-38-106(2)(a).

(3) Appropriations may be made from the renewable resource grant and loan program state special revenue account for the following purposes and subject to the following conditions:

(a) The amount of resource indemnity trust fund interest earnings allocated to the special revenue account under 15-38-202(2)(a)(ii) must be used for renewable resource grants.

(b) An amount less than or equal to that paid into the account under 85-1-332 and only that amount may be appropriated for the operation and maintenance of state-owned projects and works. If the amount of money available for appropriation under this subsection (3)(b) is greater than that necessary for operation and maintenance expenses, the excess may be appropriated as provided in subsection (3)(c).

(c) An amount less than or equal to that paid into the account from the resource indemnity trust account plus any excess from subsection (3)(b) and only that amount may be appropriated from the account for expenditures that meet the policies and objectives of the renewable resource grant and loan program. If the amount of money available for appropriation under this subsection (3)(c) is greater than that necessary for operation and maintenance expenses, the excess may be appropriated as provided in subsection (3)(d).

(d) An amount less than or equal to that paid into the account from the sources provided for in subsections (2)(c) and (2)(d) and any excess from subsection (3)(c) and only that amount may be appropriated from the account for loans and grants for renewable resource projects; for purchase of liens and operation of property as provided in 85-1-615; for administrative expenses, including but not limited to the salaries and expenses of personnel, equipment, and office space; for the servicing of loans, including arrangements for obtaining security interests; and for other necessities incurred in administering the loans and grants.

(e) Appropriations may be made for purposes of ground water characterization and monitoring in accordance with Title 85, chapter 2, part 9.

(4) At the beginning of each fiscal year, $666,000 is transferred from the renewable resource grant and loan account to the ground water assessment account established in 85-2-905."

Section 4. Section 85-2-905, MCA, is amended to read:

"85-2-905. Ground water assessment account. (1) There is a ground water assessment account within the special revenue fund established in 17-2-102. The Montana bureau of mines and geology is authorized to expend amounts from the account necessary to carry out the purposes of this part.

(2) The account may be used by the Montana bureau of mines and geology only to carry out the provisions of this part.

(3) Subject to the direction of the ground water assessment steering committee, the Montana bureau of mines and geology shall investigate opportunities for the participation and financial contribution of agencies of federal and local governments to accomplish the purposes of this part.

(4) There must be deposited in the account:

(a) fees charged to users of ground water characterization or ground water monitoring program services and purchasers of program products;

(b) funds provided by state government agencies and by local governments to carry out the purposes of this part;

(c) funds transferred to the account as provided in 85-1-604; and

(d) funds provided by any other public or private sector organization or person in the form of gifts, grants, or contracts specifically designated to carry out the purposes of this part."

Section 5. Section 85-2-906, MCA, is amended to read:

"85-2-906. Ground water characterization program -- ground water monitoring program. (1) There is a ground water characterization program and a ground water monitoring program.

(2) Subject to the direction of the ground water assessment steering committee, the Montana bureau of mines and geology shall establish and administer the ground water characterization program and the ground water monitoring program.

(3) The Montana bureau of mines and geology shall work with units of local government, ground water users, and other affected organizations and individuals in areas of the state that are included in a ground water characterization study and, if warranted by the level of local interest in a ground water characterization study, shall establish a local ground water assessment advisory committee.

(4) The ground water assessment steering committee shall:

(a) oversee expenditures from the ground water assessment account , fee schedules for program services and products, organization plans, and work plans proposed by the Montana bureau of mines and geology to implement the ground water characterization and ground water monitoring programs, including plans for local involvement and participation in ground water characterization studies;

(b) approve ground water monitoring sites;

(c) prioritize and select ground water characterization study areas;

(d) develop plans for ground water information management and dissemination;

(e) develop plans for integrating existing ground water information with information collected under the programs created by subsection (1);

(f) coordinate ground water information collection projects sponsored by individual units of state, federal, or local government with the programs created by subsection (1); and

(g) evaluate reports and other information produced by the Montana bureau of mines and geology from ground water characterization studies.

(5) The ground water assessment steering committee shall invite representatives of local governments and Indian tribes with jurisdiction over areas of the state that are included in an active ground water characterization study or in a study scheduled to begin in the ensuing biennium, as well as affected citizens in these areas, to participate in steering committee meetings."

NEW SECTION. Section 6. Diversification of program resources and funding. (1) Subject to the direction of the ground water assessment steering committee, the Montana bureau of mines and geology shall evaluate opportunities to further diversify ground water characterization and ground water monitoring program resources and funding. Opportunities investigated must include but are not limited to:

(a) enhanced implementation of potential funding sources provided for in 85-2-905; and

(b) alteration of the existing charges to users of program services and purchasers of program products.

(2) The Montana bureau of mines and geology shall present their recommendations for diversification to the 57th legislature, including any fee change proposals requiring voter approval. Recommendations for alteration of the fee structure must balance the following considerations:

(a) enhancement of program self-sustainability;

(b) maintenance of reasonable general public access to program information;

(c) higher charges to those users receiving the greatest economic benefit from program services and products; and

(d) due consideration of the business sectors that already contribute to the program through tax payments.

NEW SECTION. Section 7. Codification instruction. [Section 6] is intended to be codified as an integral part of Title 85, chapter 2, part 9, and the provisions of Title 85, chapter 2, part 9, apply to [section 6].

NEW SECTION. Section 8. Effective date. [This act] is effective July 1, 1999.

NEW SECTION. Section 9. Termination. [Section 6] terminates June 30, 2001.

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