AN ACT REQUIRING THE BOARD OF LAND COMMISSIONERS TO PROVIDE ANNUAL REPORTS REGARDING THE AVERAGE RETURN OF REVENUE ON ASSET VALUE TO TRUST BENEFICIARIES OF FORESTED LANDS; DESCRIBING THE METHOD FOR CALCULATING AVERAGE RETURN AND ASSET VALUE; AND PROVIDING AN EFFECTIVE DATE.

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

Section 1. Forest land report to trust beneficiaries -- contents. The board shall annually prepare and provide to each beneficiary of a trust a separate financial report on the forested lands classified by 77-1-401 as Class 2 lands that are held in trust for the beneficiary. The report must include for each beneficiary:

(1) the total acreage of forested land held in trust;

(2) a summary of the asset value of the forested tracts held in trust;

(3) a calculation of the average return of revenue on asset value for the forested tracts held in trust; and

(4) a listing by each department land office of the total acreage of forested land administered for the trust beneficiary and a calculation of the average return of revenue on asset value for lands designated to the trust beneficiary.

Section 2. Asset value and average return of revenue methods described. (1) The board shall use the department of revenue forest productivity valuation procedures provided in Title 15, chapter 44, part 1, to calculate the asset value of forested tracts held in trust for each beneficiary.

(2) The board shall calculate the average return of revenue on lands held in trust for each beneficiary by utilizing a 10-year rolling average. The board shall include as revenue all proceeds derived from or attributable to forested tracts held in trust for each beneficiary, and the board shall include any change in value or unrealized gain resulting from the appreciation in the value of the land, using the formula in 15-44-103. All revenue derived from the forested tracts designated to each beneficiary must be:

(a) totaled for the 10-year period including and prior to the date of the report described in [section 1];

(b) adjusted to reflect current year dollars;

(c) divided by ten to create a 10-year rolling average;

(d) expressed as a percentage of the asset value for each trust beneficiary; and

(e) expressed as a percentage of the asset value collectively for all trust beneficiaries.

Section 3. Annual report provided. The annual financial report to each trust beneficiary must be provided to each beneficiary at the end of each fiscal year beginning with the fiscal year ending June 30, 2000.

Section 4. Codification instruction. [Sections 1 through 3] are intended to be codified as an integral part of Title 77, chapter 1, part 2, and the provisions of Title 77, chapter 1, part 2, apply to [sections 1 through 3].

Section 5. Effective date. [This act] is effective July 1, 1999.

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I hereby certify that the within bill,

SB 0411, 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. 411

INTRODUCED BY W. CRISMORE, D. GRIMES, C. AHNER, T. BECK, D. BERRY, R. BITNEY, M. COLE, B. DEPRATU, G. DEVLIN, B. GLASER, L. GRINDE, L. GROSFIELD, D. HARGROVE, J. HARP, T. KEATING, B. LAWSON, D. MOOD, K. OHS, S. ORR, P. SLITER,

C. SWYSGOOD, F. THOMAS, J. WELLS

AN ACT REQUIRING THE BOARD OF LAND COMMISSIONERS TO PROVIDE ANNUAL REPORTS REGARDING THE AVERAGE RETURN OF REVENUE ON ASSET VALUE TO TRUST BENEFICIARIES OF FORESTED LANDS; DESCRIBING THE METHOD FOR CALCULATING AVERAGE RETURN AND ASSET VALUE; AND PROVIDING AN EFFECTIVE DATE.