HOUSE BILL NO. 406
INTRODUCED BY C. WILLIAMS, S. DOHERTY, T. DELL, D. ECK, R. ERICKSON, S. GALLUS, K. GALVIN-HALCRO, K. GILLAN, G. GUTSCHE, H. HARPER, D. HARRINGTON, C. JUNEAU, B. KRENZLER, L. MCCULLOCH, D. SHEA, S. STANG, E. SWANSON, C. TUSS,
M. WATERMAN, D. WYATT
A BILL FOR AN ACT ENTITLED: "AN ACT CREATING AN EDUCATION TRUST FUND WITHIN THE COAL
TAX TRUST FUND; ALLOCATING $100 MILLION TO THE EDUCATION TRUST FUND; PROVIDING THAT 90
PERCENT OF THE INTEREST AND EARNINGS ON THE EDUCATION TRUST FUND MUST BE USED FOR BASE
FUNDING STATE PAYMENTS FOR SCHOOL CAPITAL PROJECTS AND THE OTHER 10 PERCENT OF THE
INTEREST AND EARNINGS MUST BE DEPOSITED IN THE EDUCATION TRUST FUND; CREATING A SCHOOL
CAPITAL PROJECTS ACCOUNT IN THE STATE SPECIAL REVENUE FUND; STATUTORILY APPROPRIATING
MONEY FROM THE SCHOOL CAPITAL PROJECTS ACCOUNT; AMENDING SECTIONS 17-5-703, 17-6-308, AND
20-9-307, 17-7-502, 20-9-343, 20-9-346, 20-9-367, 20-9-369, 20-9-370, AND 20-9-371, MCA; AND PROVIDING AN
EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. SECTION 1. SCHOOL CAPITAL PROJECTS -- CALCULATION -- PURPOSE. (1) THE STATE PAYMENT FOR SCHOOL CAPITAL PROJECTS FOR A DISTRICT IS THE SCHOOL CAPITAL PROJECTS ENTITLEMENT DETERMINED IN 20-9-370(1) TIMES (1-(DISTRICT MILL VALUE PER ANB/STATEWIDE MILL VALUE PER ANB)).
(2) THE PURPOSE OF THE STATE PAYMENT FOR SCHOOL CAPITAL PROJECTS IS TO FINANCE SCHOOL DISTRICT COSTS ASSOCIATED WITH THE ACQUISITION, REMODELING, AND REPLACEMENT OF FACILITIES AND EQUIPMENT. THE TRUSTEES OF THE DISTRICT MAY DEPOSIT THE STATE PAYMENT FOR SCHOOL CAPITAL PROJECTS IN THE DEBT SERVICE FUND IN 20-9-438 OR IN THE DISTRICT BUILDING FUND IN 20-9-508.
NEW SECTION. SECTION 2. SCHOOL CAPITAL PROJECTS ACCOUNT -- STATUTORY APPROPRIATION. THERE IS AN ACCOUNT IN THE STATE SPECIAL REVENUE FUND CALLED THE SCHOOL CAPITAL PROJECTS ACCOUNT. NINETY PERCENT OF THE INTEREST AND EARNINGS ON THE EDUCATION TRUST FUND, AS PROVIDED IN 17-6-308(3), MUST BE DEPOSITED IN THE ACCOUNT AND IS STATUTORILY APPROPRIATED, PURSUANT TO 17-7-502, FOR THE STATE PAYMENT FOR SCHOOL CAPITAL PROJECTS.
Section 3. Section 17-5-703, MCA, is amended to read:
"17-5-703. Coal severance tax trust funds. (1) The trust established under Article IX, section 5, of the Montana constitution is composed of the following funds:
(a) a coal severance tax bond fund into which the constitutionally dedicated receipts from the coal severance tax must be deposited;
(b) a treasure state endowment fund;
(c) a coal severance tax permanent fund;
(d) a coal severance tax income fund; and
(e) an education trust fund; and
(e)(f) a coal severance tax school bond contingency loan fund.
(2) (a) The state treasurer shall determine, on July 1 of each year, the amount necessary to meet all principal and interest payments on bonds payable from the coal severance tax bond fund during the next 12 months and retain that amount in the coal severance tax bond fund.
(b) The amount in the coal severance tax bond fund in excess of the amount required in subsection (2)(a) must be transferred from that fund as provided in subsections (3) through (5).
(3) (a) On January 21, 1992, and continuing as As long as any school district bonds secured by state loans
under 20-9-466 are outstanding, the state treasurer shall from time to time and as provided in subsection
(3)(b) transfer from the coal severance tax bond fund to the coal severance tax school bond contingency
loan fund any amount in the coal severance tax bond fund in excess of the amount that is specified in
subsection (2) to be retained in the fund.
(b) The state treasurer shall transfer the amount referred to in subsection (3)(a) until and unless the balance in the coal severance tax school bond contingency loan fund is equal to the amount due as principal of and interest on the school district bonds secured by state loans under 20-9-466 during the next following 12 months.
(4) (a) Beginning July 1, 1993, and ending June 30, 2013, the state treasurer shall quarterly transfer to the treasure state endowment fund 50% of the amount in the coal severance tax bond fund in excess of the amount that is specified in subsection (2) to be retained in the fund and in excess of amounts that are transferred pursuant to subsection (3).
(b) The state treasurer shall monthly transfer from the treasure state endowment fund to the treasure state endowment special revenue account the amount of earnings required to meet the obligations of the state that are payable from the account in accordance with 90-6-710. Earnings not transferred to the treasure state endowment special revenue account must be retained in the treasure state endowment fund.
(5) Any amount in the coal severance tax bond fund in excess of the amount that is specified in subsection (2)(a) to be retained in the fund and that is not otherwise allocated under this section must be deposited in the coal severance tax permanent fund."
Section 4. Section 17-6-308, MCA, is amended to read:
"17-6-308. (Temporary) Authorized investments. (1) Except as provided in subsections (2) and (3) and subject to the provisions of 17-6-201, the Montana permanent coal tax trust fund must be invested as authorized by rules adopted by the board.
(2) The board may make loans from the permanent coal tax trust fund to the capital reserve account created pursuant to 17-5-1515 to establish balances or restore deficiencies in the account. The board may agree in connection with the issuance of bonds or notes secured by the account or fund to make the loans. Loans must be on terms and conditions determined by the board and must be repaid from revenue realized from the exercise of the board's powers under 17-5-1501 through 17-5-1518 and 17-5-1521 through 17-5-1529, subject to the prior pledge of the revenue to the bonds and notes.
(3) The board shall allow the Montana board of science and technology development, provided for in 2-15-1818, to administer $12.5 million of the permanent coal tax trust fund for seed capital project loans or mezzanine financing loans and $11.1 million of the permanent coal tax trust fund for research and development project matching funds for projects at Montana public universities. The board may grant up to $2 million of interest and income from investments to research and development projects at Montana public universities. The research and development projects may include grant matching fund purposes. This authority does not extend beyond June 30, 1999, for seed capital project loans and beyond June 30, 1999, for research and development projects. Except for $915,000, all uncommitted seed capital funds must revert to the coal severance tax permanent fund. The department may use up to $75,000 each year of the seed capital funds for administrative purposes. The board of science and technology development, with the concurrence of the director of the department, may extend an additional loan to an existing seed capital portfolio company by up to $700,000. In the fiscal year ending June 30, 1998, the department shall transfer $250,000 of interest and earnings to the Montana supreme court to be used to fund the judges' retirement system. Until the Montana board of science and technology development makes a loan pursuant to the provisions of Title 90, chapter 3, the funds under its administration must be invested by the board pursuant to the provisions of 17-6-201. As seed capital and mezzanine financing loans made pursuant to this subsection are repaid, the proceeds of the seed capital portion of the Montana board of science and technology development loans must be deposited in the coal severance tax permanent fund until all loans have been repaid plus the amount of 7% simple interest for the years that the loans have been outstanding. The board shall calculate the amount of the interest charge. The board may use up to $25,000 of the repayments for administrative costs in the fiscal year ending June 30, 1997.
(4) The board shall adopt rules to allow a nonprofit corporation to apply for economic assistance. The rules must recognize that different criteria may be needed for nonprofit corporations than for for-profit corporations.
(5) Beginning July 1, 1999, all repayments proceeds in excess of $4.395 million must be deposited in the coal severance tax permanent fund. In the fiscal year ending June 30, 1998, the department shall transfer $250,000 from the interest and earnings from job investment loans to the Montana supreme court to be used to fund the judges' retirement system.
17-6-308. (Effective July 1, 1999) Authorized investments. (1) Except as provided in subsections (2) and (3) and subject to the provisions of 17-6-201, the Montana permanent coal tax trust fund must be invested as authorized by rules adopted by the board.
(2) The board may make loans from the permanent coal tax trust fund to the capital reserve account created pursuant to 17-5-1515 to establish balances or restore deficiencies in the account. The board may agree in connection with the issuance of bonds or notes secured by the account or fund to make the loans. Loans must be on terms and conditions determined by the board and must be repaid from revenue realized from the exercise of the board's powers under 17-5-1501 through 17-5-1518 and 17-5-1521 through 17-5-1529, subject to the prior pledge of the revenue to the bonds and notes.
(3) The department shall manage the seed capital and research and development loan portfolios
created by the former Montana board of science and technology development. The department shall
establish an appropriate repayment schedule for all outstanding research and development loans made to
the university system. The department shall report the schedule to the 56th legislature. The department
shall develop a business investment strategy for investing in Montana business and shall present the
proposal to the 56th legislature. The department is the successor in interest to all agreements, contracts,
loans, notes, or other instruments entered into by the Montana board of science and technology
development as part of the seed capital and research and development loan portfolios. Until the
department makes a loan pursuant to the provisions of part 5 of this chapter, the $915,000 in funds under its
administration must be invested by the board pursuant to the provisions of 17-6-201. As loans made
pursuant to part 5 of this chapter are repaid, the department may reinvest the principal in new loans
pursuant to part 5 of this chapter. On July 1, 1999, the board shall transfer $100 million from the coal
severance tax permanent fund to the education trust fund. The board shall deposit 10% of the interest
and earnings on the education trust fund in the fund and shall deposit the remaining 90% of the earnings in
the state general fund SCHOOL CAPITAL PROJECTS ACCOUNT ESTABLISHED IN [SECTION 2] to be used
for BASE funding as provided in Title 20, chapter 9, part 3 STATE PAYMENTS FOR SCHOOL CAPITAL
PROJECTS AS PROVIDED IN [SECTION 1].
(4) The board shall adopt rules to allow a nonprofit corporation to apply for economic assistance. The rules must recognize that different criteria may be needed for nonprofit corporations than for for-profit corporations.
(5) Beginning July 1, 1999, all All repayments proceeds from investments entered into by the former
Montana board of science and technology development in excess of $4.395 million must be deposited in the
coal severance tax permanent fund. In the fiscal year ending June 30, 1998, the department shall transfer
$250,000 from the interest and earnings from job investment loans to the Montana supreme court to be used
to fund the judges' retirement system."
Section 3. Section 20-9-307, MCA, is amended to read:
"20-9-307. BASE funding program -- district general fund budget -- funding sources. (1) A basic system
of free quality public elementary schools and high schools must be established and maintained
throughout the state of Montana to provide equality of educational opportunity to all school-age
children.
(2) The state shall in an equitable manner fund and distribute to the school districts the state's share of
the cost of the basic school system through BASE aid to support the BASE funding program in the manner
established in this title.
(3) The budgetary vehicle for achieving the financing system established in subsection (2) is the general
fund budget of the school district. The purpose of the district general fund budget is to finance those
instructional, administrative, facility maintenance, and other operational costs of a district not financed
by other funds established for special purposes in this title.
(4) The BASE funding program for the districts in the state is financed by a combination of the following
sources:
(a) county equalization money, as provided in 20-9-331 and 20-9-333;
(b) state equalization aid, as provided in 20-9-343, including guaranteed tax base aid for eligible
districts, as provided in 20-9-366 through 20-9-369;
(c) interest on the education trust fund, as provided in 17-6-308;
(c)(d) appropriations for special education;
(d)(e) a district levy, as provided in 20-9-302, for support of a school not approved as an isolated school
under the provisions of that section; and
(e)(f) district levies or other revenue, as provided by 20-9-308 and 20-9-353."
SECTION 5. SECTION 17-7-502, MCA, IS AMENDED TO READ:
"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; [section 2]; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)
17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; [section 2]; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"
SECTION 6. SECTION 20-9-343, MCA, IS AMENDED TO READ:
"20-9-343. Definition of and revenue for state equalization aid. (1) As used in this title, the term "state equalization aid" means revenue as required in this section for:
(a) distribution to the public schools for the purposes of payment of systems development and other
related costs resulting from the enactment of legislation that requires changes to the automated system
used to administer the BASE funding program, guaranteed tax base aid, BASE aid, state reimbursement for
school facilities, matching funds for the systemic initiative for Montana mathematics and science grant
state payments for school capital projects, and grants for school technology purchases;
(b) negotiated payments authorized under 20-7-420(3) up to $500,000 per biennium; and
(c) the Montana educational telecommunications network as provided in 20-32-101.
(2) The superintendent of public instruction may spend throughout the biennium funds appropriated for the purposes of systems development and other related costs resulting from the enactment of legislation that requires changes to the automated system used to administer the BASE funding program, guaranteed tax base aid, BASE aid for the BASE funding program, state reimbursement for school facilities, state payments for school capital projects, negotiated payments authorized under 20-7-420(3), the Montana educational telecommunications network, and school technology purchases.
(3) The following must be paid into the state general fund for the public schools of the state:
(a) (i) subject to subsection (3)(a)(ii), interest and income money described in 20-9-341 and 20-9-342; and
(ii) an amount of money equal to the income money attributable to the difference between the average sale value of 18 million board feet and the total income produced from the annual timber harvest on common school trust lands during the fiscal year to be appropriated for purposes of 20-9-533;
(b) investment income earned by investing interest and income money described in 20-9-341 and 20-9-342."
SECTION 7. SECTION 20-9-346, MCA, IS AMENDED TO READ:
"20-9-346. Duties of superintendent of public instruction for state and county equalization aid distribution. The superintendent of public instruction shall administer the distribution of the state and county equalization aid by:
(1) establishing the annual entitlement of each district and county to state and county equalization aid, based on the data reported in the retirement, general fund, and debt service fund budgets for each district that have been adopted for the current school fiscal year and verified by the superintendent of public instruction;
(2) for the purposes of state advances and reimbursements for school facilities, limiting the distribution to no more than the amount appropriated for the school fiscal year to the districts that are eligible under the provisions of 20-9-366 through 20-9-371 by:
(a) determining the debt service payment obligation in each district for debt service on bonds that were
sold as provided in 20-9-370(3) 20-9-370(5) that qualify for a state advance or reimbursement for school
facilities under the provisions of 20-9-366 through 20-9-369 and 20-9-370;
(b) based on the limitation of state equalization aid appropriated for debt service purposes, determining the state advance for school facilities and the proportionate share of state reimbursement for school facilities that each eligible district must receive for the school fiscal year; and
(c) distributing that amount by May 31 of each school fiscal year to each eligible district for reducing the property tax for the debt service fund for the ensuing school fiscal year.
(3) distributing by electronic transfer the BASE aid and state advances for county equalization, for each district or county entitled to the aid, to the county treasurer of the respective county for county equalization or to the county treasurer of the county where the district is located for BASE aid, in accordance with the distribution ordered by the board of public education;
(4) keeping a record of the full and complete data concerning money available for state equalization aid, state advances for county equalization, and the entitlements for BASE aid of the districts of the state;
(5) reporting to the board of public education the estimated amount that will be available for state
equalization aid; and
(6) for the purposes of state payments for school capital projects, limiting the distribution to the districts that are eligible under the provisions of 20-9-367 to no more than the amount available in the school capital projects account established in [section 2] by:
(a) determining the amount to which school districts are eligible under [section 1];
(b) based on the limitation of money available in the school capital projects account established in [section 2], determining the proportionate share that each eligible district must receive; and
(c) distributing the state payment for school capital projects to districts by May 31 of each school year; and
(6)(7) reporting to the office of budget and program planning as provided in 17-7-111:
(a) the figures and data available concerning distributions of state and county equalization aid during the preceding 2 school fiscal years;
(b) the amount of state equalization aid then available;
(c) the apportionment made of the available money but not yet distributed;
(d) the latest estimate of accruals of money available for state equalization aid; and
(e) the amount of state advances and repayment for county equalization."
SECTION 8. SECTION 20-9-367, MCA, IS AMENDED TO READ:
"20-9-367. Eligibility to receive guaranteed tax base aid, or state advance or reimbursement for
school facilities, or state payment for school capital projects. (1) If the district guaranteed tax base
ratio of any elementary or high school district is less than the corresponding statewide elementary or
high school guaranteed tax base ratio, the district may receive guaranteed tax base aid based on the
number of mills levied in the district in support of up to 40% of the basic entitlement, up to 40% of the total
per-ANB entitlement, and up to 40% of the special education allowable cost payment budgeted within the
general fund budget.
(2) If the county retirement mill value per elementary ANB or the county retirement mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB, the county may receive guaranteed tax base aid based on the number of mills levied in the county in support of the retirement fund budgets of the respective elementary or high school districts in the county.
(3) For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund.
(4) For the purpose of a state payment for school capital projects, a district is eligible for a payment if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB."
SECTION 9. SECTION 20-9-369, MCA, IS AMENDED TO READ:
"20-9-369. Duties of superintendent of public instruction and department of revenue. (1) The superintendent of public instruction shall administer the distribution of guaranteed tax base aid by:
(a) providing each school district and county superintendent, by March 1 of each year, with the preliminary statewide and district guaranteed tax base ratios and, by May 1 of each year, with the final statewide and district guaranteed tax base ratios, for use in calculating the guaranteed tax base aid available for the ensuing school fiscal year;
(b) providing each school district and county superintendent, by March 1 of each year, with the preliminary statewide, county, and district mill values per ANB and, by May 1 of each year, with the final statewide, county, and district mill values per ANB, for use in calculating the guaranteed tax base aid, state payments for school capital projects, and state advance and reimbursement for school facilities available to counties and districts for the ensuing school fiscal year;
(c) requiring each county and district that qualifies and applies for guaranteed tax base aid to report to the county superintendent all budget and accounting information required to administer the guaranteed tax base aid;
(d) keeping a record of the complete data concerning appropriations available for guaranteed tax base aid and the entitlements for the aid of the counties and districts that qualify;
(e) distributing the guaranteed tax base aid entitlement to each qualified county or district from the appropriations for that purpose.
(2) The superintendent shall adopt rules necessary to implement 20-9-366 through 20-9-369.
(3) The department of revenue shall provide the superintendent of public instruction by December 1 of each year a final determination of the taxable value of property within each school district and county of the state reported to the department of revenue based on information delivered to the county clerk and recorder as required in 15-10-305.
(4) The superintendent of public instruction shall calculate the district and statewide guaranteed tax base ratios by applying the prior year's direct state aid payment."
SECTION 10. SECTION 20-9-370, MCA, IS AMENDED TO READ:
"20-9-370. Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "School capital projects entitlement" means $121 per ANB for the school fiscal year ending June 30, 2000, and $122 per ANB for the school fiscal year ending June 30, 2001.
(1)(2) "School facility entitlement" means:
(a) $220 per ANB for an elementary school district;
(b) $330 per ANB for a high school district; or
(c) $270 per ANB for an approved and accredited junior high school or middle school.
(2)(3) "State advance for school facilities" is the amount of state equalization aid distributed to an
eligible district to pay the debt service obligation for a bond in the first school fiscal year in which a debt
service payment is due for the bond.
(4) "State payment for school capital projects" means the amount of state equalization aid distributed to a district that has a district mill value per elementary ANB that is less than the corresponding statewide mill value per elementary ANB or a district mill value per high school ANB that is less than the corresponding statewide mill value per high school ANB.
(3)(5) "State reimbursement for school facilities" means the amount of state equalization aid distributed
to a district that:
(a) has a district mill value per elementary ANB that is less than the corresponding statewide mill value per elementary ANB or a district mill value per high school ANB that is less than the corresponding statewide mill value per high school ANB; and
(b) has a debt service obligation in the ensuing school year on bonds for which the original issue was sold after July 1, 1991.
(4)(6) "Total school facility entitlement" means the school facility entitlement times the total ANB for
the district."
SECTION 11. SECTION 20-9-371, MCA, IS AMENDED TO READ:
"20-9-371. Calculation and uses of school facility entitlement amount. (1) The state reimbursement
for school facilities for a district is the percentage determined in 20-9-346(2)(b) times (1-(district mill value
per ANB/statewide mill value per ANB)) times the lesser of the total school facility entitlement
calculated under the provisions of 20-9-370 or the district's current year debt service obligations on bonds
that qualify under the provisions of 20-9-370(3) 20-9-370(5).
(2) The state advance for school facilities for a district is determined as follows:
(a) Calculate the percentage of the district's debt service payment that will be advanced by the state using the district ANB, the district mill value and the statewide mill value for the current year, and the percentage used to determine the proportionate share of state reimbursement for school facilities in the prior year.
(b) Multiply the percentage determined in subsection (2)(a) by the lesser of the total school facility entitlement calculated under the provisions of 20-9-370 or the district's current year debt service obligation for bonds to which the state advance applies.
(3) Within the available appropriation, the superintendent of public instruction shall first distribute to eligible districts the state advance for school facilities. From the remaining appropriation, the superintendent shall distribute to eligible districts the state reimbursement for school facilities.
(4) The trustees of a district may apply the state reimbursement for school facilities to reduce the levy requirement in the ensuing school fiscal year for all outstanding bonded indebtedness on bonds sold in the debt service fund of the district after July 1, 1991. The trustees may apply the state advance for school facilities to reduce the levy requirement in the current school fiscal year for debt service payments on bonds to which the state advance for school facilities applies."
NEW SECTION. SECTION 12. CODIFICATION INSTRUCTION. [SECTIONS 1 AND 2] ARE INTENDED TO BE CODIFIED AS AN INTEGRAL PART OF TITLE 20, CHAPTER 9, AND THE PROVISIONS OF TITLE 20, CHAPTER 9, APPLY TO [SECTIONS 1 AND 2].
NEW SECTION. Section 13. Effective date. [This act] is effective July 1, 1999.
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Latest Version of HB 406 (HB0406.02)
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