AN ACT REQUIRING A STATE PAYMENT TO POWELL COUNTY FOR LAND ON WHICH THE STATE CONDUCTS A FARMING OR RANCHING OPERATION; REQUIRING THE INTERIM LOCAL GOVERNMENT FUNDING AND STRUCTURE COMMITTEE TO CONDUCT A REVIEW OF STATE PAYMENTS IN LIEU OF TAXES; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE.

WHEREAS, the state makes payments in lieu of taxes for property from which the state derives grazing, agricultural, or forest income; and

WHEREAS, the state prison conducts a farming and ranching operation in Powell County that is not subject to payment in lieu of taxes.

THEREFORE, the Legislature finds that it is appropriate for the state prison ranch to make a payment to Powell County that is comparable to a payment in lieu of taxes.

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

Section 1. Payment to Powell County. (1) The department of corrections shall allocate $46,000 each fiscal year from the proprietary enterprise fund established for the operation of the state prison ranch to the Powell County treasurer.

(2) The Powell County treasurer shall distribute the payment in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as property taxes are distributed.

Section 2. Review of state payments in lieu of taxes. The interim local government funding and structure committee created under [section 1 of House Bill No. 622] shall include in its study of funding local government a review of state payments in lieu of taxes to local governments from grazing, agricultural, and forest activities that are self-supporting or that compete with private enterprise.

Section 3. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 53, chapter 1, part 2, and the provisions of Title 53, chapter 1, part 2, apply to [section 1].

Section 4. Coordination instruction. If House Bill No. 622 is not passed and approved, then the interim revenue and taxation committee shall conduct the review of state payments in lieu of taxes required by [section 2].

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

Section 6. Termination. [This act] terminates June 30, 2001.

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I hereby certify that the within bill,

SB 0454, 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. 454

INTRODUCED BY T. BECK

AN ACT REQUIRING A STATE PAYMENT TO POWELL COUNTY FOR LAND ON WHICH THE STATE CONDUCTS A FARMING OR RANCHING OPERATION; REQUIRING THE INTERIM LOCAL GOVERNMENT FUNDING AND STRUCTURE COMMITTEE TO CONDUCT A REVIEW OF STATE PAYMENTS IN LIEU OF TAXES; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE.