1999 Montana Legislature

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SENATE BILL NO. 228

INTRODUCED BY B. GLASER



A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING ELECTION LAWS; CHANGING THE PRIMARY ELECTION DATE; PROVIDING FOR TAX ELECTIONS; PROVIDING FOR THE ADMINISTRATION OF TAX ELECTIONS; EXTENDING THE PERMISSIBLE USES OF MAIL BALLOT ELECTIONS; REVISING THE REQUIREMENTS FOR VOTER INFORMATION PAMPHLETS IN TAX ELECTIONS; REVISING THE TIME FOR HOLDING SCHOOL ELECTIONS; AMENDING SECTIONS 5-4-301, 7-2-2246, 7-2-2730, 7-2-2746, 7-2-2748, 7-2-2749, 7-2-4314, 7-2-4606, 7-2-4607, 7-2-4733, 7-3-149, 7-3-184, 7-3-1227, 7-3-1229, 7-3-1310, 7-3-4311, 7-4-2611, 7-6-1504, 7-6-2319, 7-6-2345, 7-6-2348, 7-6-2531, 7-6-2534, 7-6-4237, 7-6-4261, 7-6-4272, 7-6-4431, 7-7-2101, 7-7-2223, 7-7-2302, 7-7-2402, 7-7-4426, 7-11-308, 7-11-1112, 7-12-2158, 7-13-308, 7-13-2214, 7-13-2341, 7-13-2342, 7-13-4204, 7-14-210, 7-14-212, 7-14-1131, 7-14-1133, 7-14-1134, 7-14-1633, 7-14-1636, 7-14-2504, 7-14-4404, 7-14-4512, 7-15-2111, 7-16-2102, 7-16-2109, 7-16-2411, 7-16-2412, 7-16-2413, 7-16-2432, 7-16-2441, 7-16-2443, 7-22-2222, 7-22-2443, 7-32-235, 7-34-102, 7-34-2114, 7-34-2135, 7-35-2122, 13-1-101, 13-1-104, 13-1-107, 13-1-301, 13-1-302, 13-1-401, 13-2-122, 13-10-202, 13-13-230, 13-19-306, 13-27-310, 13-27-312, 13-27-313, 13-27-315, 13-27-401, 13-27-402, 13-27-403, 13-27-410, 15-1-402, 15-10-412, 15-36-323, 17-5-1001, 17-5-1105, 20-6-203, 20-6-205, 20-6-206, 20-6-207, 20-6-213, 20-6-309, 20-6-315, 20-6-317, 20-6-318, 20-6-319, 20-6-320, 20-6-505, 20-7-714, 20-9-353, 20-9-421, 20-9-465, 20-9-471, 20-9-502, 20-9-705, 20-10-126, 20-15-231, 20-15-241, 20-15-305, 20-15-311, 20-15-313, 20-15-314, 20-20-102, 20-20-105, 20-20-106, 20-20-108, 20-20-401, 20-20-417, 22-1-303, 22-1-304, 39-71-403, 67-11-303, 76-15-531, 76-15-606, 85-3-412, 85-3-413, 85-3-415, 85-7-1418, 85-7-1974, 85-8-624, 85-9-304, AND 90-5-112, MCA; REPEALING SECTIONS 7-7-2221, 7-7-2222, 7-7-2311, AND 20-6-215, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."



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



     Section 1.  Section 5-4-301, MCA, is amended to read:

     "5-4-301.  Bills received by the governor -- how endorsed. Each bill passed by the legislature, except bills proposing amendments to the Montana constitution, bills ratifying proposed amendments to the United States constitution, resolutions, and initiative measures, and referendum measures, other than tax referendum measures, shall must be submitted to the governor for his signature. Each bill must, as soon as delivered to the governor, be endorsed as follows: "This bill was received by the governor this .... day of ...., 19..". The endorsement must be signed by an assistant authorized by the governor or by the governor himself."



     Section 2.  Section 7-2-2246, MCA, is amended to read:

     "7-2-2246.  Settlement between counties following adjustment of indebtedness. (1) The sum of said the ascertained value of the property referred to in 7-2-2245 added to the ascertained proportion of the excess referred to in 7-2-2245 which that the new county is to pay the old county and its proportion of the expense of said the county creation election, as aforesaid, shall be is an indebtedness from the new county to the old county, and the property situated, as aforesaid, in the new county shall is upon settlement therefor as provided in this part, become the property of the new county, and the old county shall pay the entire indebtedness against it.

     (2)  If, upon the settlement between the old and the new counties, as herein provided for in this part, the new county shall be is found to be indebted to the old county or either of the old counties, the money necessary to pay said indebtedness shall must be raised by a tax levied upon the property contained in said the new county and said upon approval at a tax election, the new county shall pay the same amount necessary. Such The payment by said the new county may be made in not more than three equal annual payments or by funds to be derived from the sale of bonds of said the new county, as may be determined by a resolution of the board of county commissioners of said the new county adopted within 1 year after the receipt of the statement from the board of commissioners, as aforesaid, of the amount or amounts due from it.

     (3)  If the value of the property belonging to the old county exceeds the indebtedness of the old county, then the old county shall pay to the new county a due proportion of such the excess, which proportion shall be as determined by the board of commissioners and shall must be paid by the old county to the new county in the same manner and subject to the same conditions herein provided for payment by the new county to the old county when the indebtedness of the old county exceeds the value of the property in the old county."



     Section 3.  Section 7-2-2730, MCA, is amended to read:

     "7-2-2730.  Establishment of special warrant district or special funding bond district in continuing county. (1) After all warrants have been drawn and issued against the funds of such the adjoining county to pay the claims and demands existing against such the adjoining county on the date when the territory of such the abandoned and abolished county was attached to such the adjoining county, all money in the funds of such the adjoining county shall must be used and applied in payment of the warrants drawn against its respective funds. If such the money is not sufficient to pay all of such the warrants, with the interest thereon, then the board of county commissioners shall make an order creating a special warrant district and shall include within such the district all of the territory of such the adjoining county but shall may not include therein in the district any of the territory of such the abandoned and abolished county. and shall, thereafter and If authorized at a tax election, the county commissioners shall at the time of making levies for county purposes, levy a special tax against all taxable property in such the district to pay the warrants, with interest thereon, outstanding against the funds of said the county. The board may in its discretion extend such submit to the electors the question of extending the tax levy over a period of not to exceed 3 years.

     (2)  (a) If it shall appear appears to the board that it will require too large a tax levy to pay such the warrant indebtedness, with interest thereon, within 3 years, such the board, instead of creating a special warrant district, shall create and establish a special funding bond district. and The board shall include within the boundaries thereof of the district all of the territory within such the adjoining county but shall may not include therein any of the territory of the abandoned and abolished county attached to such the adjoining county. After all money in the several funds of said the county applicable thereto to warrant indebtedness has been applied in payment of such the outstanding warrants and interest thereon on the warrants and without after submitting the question of doing so to an election, such the board may, if authorized by the electorate, issue bonds in an amount sufficient to pay and redeem all such warrants remaining outstanding, with interest thereon.

     (b)  Such The bonds shall must be issued in the name of said the adjoining county and shall must contain recitals to the effect that the principal and interest thereof of the bonds will be paid by millage tax levies against the property situated within the boundaries of said the county as the same existed before the territory of such the abandoned and abolished county was attached thereto to the receiving county and that none of the property within the territory of such the abandoned and abolished county will be subjected to such the levies. Except as otherwise provided herein in this section, said the bonds shall must be issued and sold and tax levies shall must be fixed and made to pay the principal and interest thereof of the bonds as the same it becomes due in the manner provided by 7-7-107, 7-7-108, 7-7-123, 7-7-124, 7-7-2104, 7-7-2106, and parts 22 and 23 of chapter 7 and all the provisions thereof of those laws, so far as applicable thereto, shall apply to such the bonds."



     Section 4.  Section 7-2-2746, MCA, is amended to read:

     "7-2-2746.  Details relating to special warrant district. (1) The board of county commissioners creating a special warrant district shall if approved at a tax election, thereafter and at the time of making and fixing tax levies for county purposes, make and fix a levy against all taxable property within such the special warrant district for the payment of said the warrants and the interest thereon on the warrants. The proceeds of such the levy, when collected, shall must be deposited by the county treasurer in a separate fund which shall that must be used for the payment of said the warrants and interest and for no other purpose.

     (2)  Said The tax levy need not be made at such a rate as that will pay all of said the warrants, with interest, in 1 year, but if said the board shall deem it for determines that it is in the best interests of the taxpayers owning property within such the special warrant district, such the levy may be spread over a term of not more than 3 years."



     Section 5.  Section 7-2-2748, MCA, is amended to read:

     "7-2-2748.  Special funding bond district bonds. (1) Bonds issued under 7-2-2747 shall may not be issued for a longer period than 10 years and shall may not be issued without submitting the question of doing so to any unless approved at an election. Such If authorized, the bonds shall must be issued in the name of such the district and shall must be signed by the trustees. The clerk shall attest the same issuance and affix the seal of the district thereof, and they shall the bonds must be registered in the office of the county treasurer, who shall certify such the registration on such the bonds. Except as otherwise provided herein in this section and insofar as the same are not in unless they are in conflict herewith with this section, all of the provisions of 7-7-107, 7-7-108, 7-7-123, 7-7-124, 7-7-2104, 7-7-2106, and parts 22 and 23 of chapter 7 shall apply to, govern, and control the issuance, sale, and payment of such the bonds, with the interest thereon, and the levying of taxes for such purposes of the bonds.

     (2)  There shall must be inserted and made a part of each such bond statements setting forth the purpose for which the same is bonds are issued and that said the bonds do not incur, create, or constitute any indebtedness or obligation whatever on the part of the county of (naming the county whose board of county commissioners, acting as such trustees, are issuing such the bonds) but that the principal and interest thereof of the bonds will be paid by special millage taxes levied against all of the taxable property situated within the boundaries of such the special funding bond district."



     Section 6.  Section 7-2-2749, MCA, is amended to read:

     "7-2-2749.  Payment of outstanding bonds of abandoned county. (1) If any abandoned and abolished county shall have has any bonds outstanding and unpaid at the time it ceases to exist, the territory within the boundaries of such the former county as they existed when such the county so ceased to exist shall constitute constitutes a special district for the payment thereof of the bonds. The board of county commissioners of the county designated in the petition for abandonment as the county to which the territory of such the county is to be attached and made a part shall, if approved at a tax election, annually levy a tax against all taxable property in such the taxing district sufficient to pay the interest and principal of such the bonds as the same they become due, and all of the provisions of 7-7-107, 7-7-108, 7-7-123, 7-7-124, 7-7-2104, 7-7-2106, and parts 22 and 23 of chapter 7 shall apply to, govern, and control the levying and collection of such the taxes and the payment of interest and principal thereof of the bonds by the boards and officers of the county within which such the district is situated.

     (2)  Any and all All money in any bond sinking and interest funds of such the abandoned and abolished county, when transmitted and paid over to the treasurer of the county to which the territory of such the abandoned and abolished county has been attached, shall must be credited to and deposited in a sinking and interest fund. All taxes levied for the payment of such the bonds and interest and delinquent at the time such that county ceased to exist, all taxes levied for such the sinking and interest fund in accordance with the provisions of 7-2-2742 through 7-2-2750, and all other money coming to the hands of such the county treasurer for the use or benefit of such the abandoned county, when not required for any other purposes under the provisions of this part, shall must be deposited to the credit of such the sinking and interest fund and used for the payment of the principal and interest of such the bonds and for no other purpose."



     Section 7.  Section 7-2-4314, MCA, is amended to read:

     "7-2-4314.  Hearing on question of annexation -- vote on question of annexation -- resolution of annexation. (1) (a) The city or town clerk shall, at the next regular meeting of the city or town council after the expiration of the 20-day period provided for in 7-2-4313, forward all written communication received by the clerk for the city or town council's consideration.

     (b)  Except as provided in subsection (1)(d), if the city or town council, after considering all written communication, adopts a resolution approving the annexation, the implementation of the resolution must be approved by the vote of the registered voters residing in the area proposed for annexation. The resolution must state the date on which the proposed annexation is intended to take effect.

     (c)  Within 45 days of adopting the resolution for annexation, the city or town council shall submit the question of approving the resolution to the registered voters residing in the area proposed for annexation. A notice of election must be mailed to all registered voters residing in the area proposed for annexation.

     (d)  If the area to be annexed contains less than 300 recorded parcels, the city or town council, after considering all written communication, may adopt a resolution approving the annexation. and The city or town council shall then submit all required issues to the registered voters of the area at the next tax election. If all issues are approved at the tax election, then the boundaries of the city or town must be extended to include the platted tracts or parcels of land or unplatted land for which a certificate of survey has been filed. An area annexed pursuant to this subsection may include land used for railroad purposes. A city or town council may not annex by resolution an area containing less than 300 recorded parcels if the resolution is disapproved in writing by a majority of real property owners of the area proposed to be annexed. If the resolution is disapproved by a majority of the land owners, the city or town council may not on its own initiative propose further resolutions relating to the annexation of the area or any portion of the area, without petition, for a period of 1 year.

     (2)  Except as provided in subsection (1)(d), further resolutions relating to the annexation of the area or any portion of the area may not be considered or acted upon by the council on its own initiative, without petition, for a period of 5 years from the date of disapproval by the voters as provided in subsection (1)."



     Section 8.  Section 7-2-4606, MCA, is amended to read:

     "7-2-4606.  Resolution of annexation. (1) (a) If it is found that a majority of votes were cast in favor of the annexation, the city or town council or other legislative body shall, at a regular or special meeting held within 30 days of the election, pass and adopt a resolution providing for the annexation.

     (b)  The resolution must state that a petition has been filed with the council or other legislative body with the signatures of 33 1/3% of the resident electors owning real property in the area proposed to be annexed; a description of the boundaries of the area to be annexed; a copy of the resolution ordering a general or special election; a copy of the notice of the election; the time and result of the canvass of the votes received in favor of annexation and the number of votes cast against annexation; and, subject to the results of a tax election, that the boundaries of the city or town will be extended to include the area described in the petition for annexation. The resolution must be incorporated in the minutes of the council or legislative body.

     (2)  A resolution adopted pursuant to 7-2-4601(3) must include a statement that a petition has been filed with the governing body containing the signatures of more than 50% of the resident electors owning real property or the owners of 50% of the area to be annexed; a description of the boundaries of the area to be annexed; and a statement that, subject to the results of a tax election, the boundaries of the municipality are to be extended to include the area described in the petition for annexation. The resolution must be incorporated in the minutes of the governing body. Upon incorporation in the minutes, the resolution must be filed and becomes effective as provided in 7-2-4607."



     Section 9.  Section 7-2-4607, MCA, is amended to read:

     "7-2-4607.  Filing of resolution. (1) If all issues required to be submitted to the registered voters of the area proposed for annexation are approved at a tax election, The the clerk or other officer performing the duties of clerk of such the city or town council or legislative body shall promptly make and certify under the seal of said the municipal corporation a copy of said the record so entered upon said the minutes,. which The document shall must be filed with the clerk of the county in which the city or town to which said the territory or territories are sought to be annexed is situated.

     (2)  From and after After the date of the filing of said the document in the office of the county clerk, the annexation of such the territory or territories so proposed to be annexed shall be deemed and shall be is complete. Thenceforth such After filing, the annexed territory or territories shall be, to all intents and purposes, is a part of said the municipal corporation, and the said city or town to which the annexation is made has the power to pass all necessary ordinances pertaining thereto to the territory."



     Section 10.  Section 7-2-4733, MCA, is amended to read:

     "7-2-4733.  Vote required on proposed capital improvements taxes. Included within the annexation plan must be methodology whereby the area to be annexed may vote upon any proposed capital improvements and any new taxes or tax increases as required by Article VIII, section 17, of the Montana constitution. Should a negative vote be cast by over 50% of the residents in the section or sections If any measure submitted to the electors of the area to be annexed in such is not approved at the tax election, the area may not be annexed."



     Section 11.  Section 7-3-149, MCA, is amended to read:

     "7-3-149.  Election on alternative form. (1) The governing body shall call a special election on the question of an alternative form of government to be held at the next regular or primary election that is at least 75 days after the call and the date of filing with the records administrator under 7-3-146. The records administrator shall prepare and print notices of the election.

     (2)  The cost of the election must be paid for by the local government.

     (3)  (a) The affirmative vote of a simple majority of those voting on the question is required for adoption.

     (b)  In any election involving the question of consolidation, each question must be submitted to the electors in the county and requires an affirmative vote of a simple majority of the votes cast in the county on the question for adoption. There Subject to Article VIII, section 17, of the Montana constitution, the is no requirement for separate majorities in local governments voting on consolidation.

     (c)  In any election involving the question of county merger, the questions must be submitted to the electors in the counties affected and require a majority of the votes cast on the questions in each affected county for adoption.

     (d)  If the electors disapprove the proposed new form of local government, amendments, or consolidation plan, or any new tax or tax increase the local government retains its existing form."



     Section 12.  Section 7-3-184, MCA, is amended to read:

     "7-3-184.  Financial administration. (1) A study commission shall prepare a budget for each fiscal year it is in existence and submit it to the local governing body for approval.

     (2)  (a) For the support of the study commission, for each fiscal year the study commission is in existence, each local government under study shall appropriate an amount necessary to fund the study, not to exceed 1 mill, and the local government may, if approved at a tax election, levy up to 1 mill in excess of all other mill levies authorized by law to fund the appropriation for the support of the study commission.

     (b)  The local government shall provide office and meeting space and clerical assistance to the study commission. The cost of clerical assistance and other in-kind services provided by the local government may be used to partially fulfill the appropriation requirement of subsection (2)(a).

     (c)  The local government may in its discretion provide additional funds and other assistance.

     (3)  The study commission may apply for and accept available private, state, and federal money and may accept donations from any source.

     (4)  All money received by the study commission shall must be deposited with the local government finance administrator. The finance administrator is authorized to disburse appropriated money of the study commission on the study commission's order after approval of the budget by the governing body. Unexpended money of the study commission does not revert to the general fund of the local government at the end of the fiscal year but carries over to the study commission's appropriation for the following fiscal year. Upon termination of the study commission, unexpended money reverts to the general fund of the local government."



     Section 13.  Section 7-3-1227, MCA, is amended to read:

     "7-3-1227.  Petition for initiative. (1) Any proposed ordinance, except an ordinance making a tax levy or an appropriation, may be submitted to the commission by petition signed by 10% of the qualified electors of the municipality whose names appear on the register of voters on the date when the proposed ordinance is submitted to the commission.

     (2)  All petition papers circulated with respect to any proposed ordinance shall must be uniform in character and shall must contain the full text of the proposed ordinance in full.

     (3)  Proposed ordinances for repealing any existing ordinance or ordinances, in whole or in part, may be submitted to the commission as provided in 7-3-1227 through 7-3-1229 for initiating ordinances."



     Section 14.  Section 7-3-1229, MCA, is amended to read:

     "7-3-1229.  Submission of initiative measure to electors. (1) If the commission fails to pass an ordinance proposed by initiative petition or passes it in a form different from that set forth in the petition, the committee of the petitioners may require that it be submitted to a vote of the electors either in its original form or with any change or amendment presented in writing, either at a public hearing before the committee to which the proposed ordinance was referred or during consideration by the commission. If the committee of petitioners requires the submission of a proposed ordinance to a vote of the electors, the committee shall certify that fact to the clerk and file in the clerk's office a certified copy of the ordinance, in the form in which it is to be submitted, within 10 days after final action on the ordinance by the commission.

     (2)  Upon receipt of the certified copy of a proposed ordinance from the committee of the petitioners, the clerk shall certify the fact to the commission at its next regular meeting. The Unless the measure is required to be submitted at a tax election, the proposed ordinance must be submitted to a vote of the electors at the next regular or primary election. A proposal for a new tax or tax increase must be submitted to a vote of the electors at the next tax election. If a majority of those voting on a proposed ordinance vote in favor of the proposed ordinance, it is an ordinance of the municipality."



     Section 15.  Section 7-3-1310, MCA, is amended to read:

     "7-3-1310.  Limitation on tax levy. (1) No If approved at a tax election, an ordinance making the annual tax levy shall may be passed fixing the rate to be levied upon all property within the municipality to defray current expenses, including salaries otherwise unprovided for, in excess of the maximum levies prescribed by law for general fund purposes in the county and the cities and towns which have been consolidated into a single government.

     (2)  The tax limit provided by subsection (1) shall apply only to taxes for the purposes therein specified. Taxes required by this part or part 12 or this part to be levied on account of the debt of the municipality or any district thereof of the municipality and special taxes authorized by this part or part 12 or this part or by the general laws of the state shall may not be affected by such the limits,. nor shall such Subject to Article VIII, section 17, of the Montana constitution, the exempt taxes be may not be considered in determining the limits of taxation fixed by subsection (1)."



     Section 16.  Section 7-3-4311, MCA, is amended to read:

     "7-3-4311.  Procedure for multimunicipality organization. (1) Whenever the inhabitants of any community or group of communities in any county, whether separately incorporated in whole or in part or unincorporated desire to be organized into or annexed to an incorporated city or town under the provisions of this part and part 44 and this part, the board of county commissioners of the county may or upon the presentation of a petition signed by not less than 25% of the qualified electors in the community or group of communities shall issue a proclamation ordering a special election to be held in conjunction with a regular or primary election.

     (2)  At this election, the question of the organization of the community or group of communities as a municipality under the provisions of this part and part 44 and this part must be submitted to the qualified electors within the proposed municipal district. The proclamation must specify the time when and the places where the election will be held and must define the boundaries of the proposed municipal district, which must include all communities, cities, and any additional adjacent territory that, in the judgment of the board of county commissioners, provides for future urban growth.

     (3)  If a majority of the legal voters at the election vote in favor of the organization of the municipal district or in favor of annexation to an incorporated city or town, then the board of county commissioners shall submit all required measures to the legal voters at the next tax election. If all required measures are approved at the tax election, the county commissioners shall declare the result of the election and shall give notice for 30 days in a newspaper published within the proposed municipal district or, if a newspaper is not published in the proposed district, by posting notices in six public places within the limits of the district of the time and place or places of holding the first election for commissioners of the municipal district under this law. At the election, all electors qualified by the general election laws of the state who have resided within the limits of the municipal district for 6 months are qualified electors. The board of county commissioners shall appoint judges and clerks of election and canvass and declare the result of the election. The election must be held in conjunction with a regular or primary election and must be conducted in the manner prescribed by law for the election of county officers. The commissioners elected must qualify in the manner prescribed by law for county officers."



     Section 17.  Section 7-4-2611, MCA, is amended to read:

     "7-4-2611.  Role and duties of county clerk and election administrator. (1) The county clerk of a county is also clerk of the county commissioners and ex officio recorder. A duty imposed by law upon the officer, whether as county clerk, clerk of the county commissioners, or recorder, must be performed by the county clerk, and any official act performed or certified by the county clerk is as valid and effectual as if performed and certified by the clerk of the county commissioners or the recorder.

     (2)  The county clerk shall:

     (a)  take charge of and safely keep or dispose of according to law all books, papers, maps, and records that may be filed or deposited in the county clerk's office;

     (b)  record all the proceedings of the board;

     (c)  make full entries of all its resolutions and decisions on all questions concerning the raising of money for and the allowance of accounts against the county;

     (d)  record the vote of each member on a question upon which there is a division or at the request of any member present;

     (e)  sign all orders made and warrants issued by order of the board for the payment of money and certify the orders and warrants to the county treasurer;

     (f)  record the reports of the county treasurer of the receipts and disbursements of the county;

     (g)  preserve and file all accounts acted upon by the board;

     (h)  preserve and file all petitions and applications for franchises and record the action of the board on the petitions and applications;

     (i)  record all orders levying taxes;

     (j)  designate upon each account allowed by the board the amount allowed and deliver to any person who may demand it a certified copy of any record or any account on file in the county clerk's office;

     (k)  when a new township is organized or the boundaries of a township are altered, immediately make out and transmit to the secretary of state a certified statement of the names and boundaries of the township organized or altered;

     (l)  keep other records and books and perform other duties that are prescribed by law or by rule or order of the board.

     (3)  An election administrator shall file, code, and cross-index all reports and statements filed as prescribed by the commissioner of political practices.

     (4)  An election administrator shall make statements and other information filed under the provisions of Title 13, chapters 35, 36, and 37, available for public inspection and copying during the office hours determined by the governing body by resolution after a public hearing and make copying facilities available free of charge or at a charge not to exceed actual cost.

     (5) The election administrator is the chief election officer for a tax election conducted within the county."



     Section 18.  Section 7-6-1504, MCA, is amended to read:

     "7-6-1504.  Resort tax -- election required -- procedure -- notice. (1) A resort community or area may not impose or, except as provided in 7-6-1505, amend or repeal a resort tax unless the resort tax question has been submitted to the electorate of the resort community or area and approved by a majority of the electors voting on the question.

     (2)  The resort tax question may be presented to the electors of:

     (a)  a resort community by a petition of the electors as provided by 7-1-4130, 7-5-132, and 7-5-134 through 7-5-137 or by a resolution of the governing body of the resort community; or

     (b)  a resort area by a resolution of the board of county commissioners, following receipt of a petition of electors as provided in 7-6-1508.

     (3)  If a resort area is in more than one county, the resort tax question must be presented to and approved by the electors in the resort area of each county.

     (4)  The petition or resolution referring the taxing question must state:

     (a)  the rate of the resort tax;

     (b)  the duration of the resort tax;

     (c)  the date when the tax becomes effective, which date may not be earlier than 35 days after the election; and

     (d)  the purposes that may be funded by the resort tax revenue.

     (5)  Upon receipt of an adequate petition, the governing body may:

     (a)  call a special election on the resort tax question; or

     (b)  have the resort tax question placed on the ballot at the next regularly scheduled tax election.

     (6)  (a) Before the resort tax question is submitted to the electorate of a resort community or area, the governing body of the resort community or the board of county commissioners in the county in which the resort area is located shall publish notice of the goods and services subject to the resort tax, in a newspaper that meets the qualifications of subsection (6)(b). The notice must be published twice, with at least 6 days separating publications. The first publication must be no more than 30 days prior to the election and the last no less than 3 days prior to the election.

     (b)  The newspaper must be:

     (i)  of general, paid circulation with a second-class mailing permit;

     (ii) published at least once a week; and

     (iii) published in the county where the election will take place.

     (7)  The question of the imposition of a resort tax may not be placed before the electors more than once in any fiscal year."



     Section 19.  Section 7-6-2319, MCA, is amended to read:

     "7-6-2319.  Determination of fund requirements to be met by tax levy -- exception. (1) Following the determinations required by 7-6-2318, the board shall determine the amount to be raised by tax levy for each fund by adding the cash balance in the fund at the close of the preceding fiscal year and the amount of the estimated revenue to accrue to the fund during the current fiscal year. It shall then deduct the total amount obtained from the total amount of the appropriations and authorized expenditures from the fund as determined by the board. The amount remaining is the amount necessary to be raised for the fund by tax levy during the current fiscal year.

     (2)  The board may add to the amount necessary to be raised for any fund by tax levy during the current fiscal year an additional amount as a reserve to meet expenditures to be made from the fund during the months of July to November of the next fiscal year. The amount that may be added to any fund as the reserve may not exceed one-third of the total amount appropriated and authorized to be spent from the fund during the current fiscal year, after deducting from the amount of the appropriations and authorized expenditures the total amount appropriated and authorized to be spent for election expenses and payment of emergency warrants.

     (3)  The Unless approved at a tax election, the total amount to be raised by tax levy for any fund during the current fiscal year, including the amount of the reserve and any amount for payment of election expenses and emergency warrants, may not exceed the total amount which may be raised for the fund by a tax levy which does not exceed the maximum levy permitted by law to be made for the fund that was collected in the prior tax year.

     (4)  This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."



     Section 20.  Section 7-6-2345, MCA, is amended to read:

     "7-6-2345.  Use of emergency warrants. (1) All emergency expenditures shall must be made by the issuance of emergency warrants drawn against the fund or funds properly chargeable with such the emergency expenditures. The county treasurer is authorized and directed to shall pay such the emergency warrants with any money in such fund or the funds available for such that purpose. If at any time there shall is not be sufficient money available in such fund or the appropriate funds to pay such the emergency warrants, then such the warrants shall must be registered, bear interest, and be called in for payment in the manner provided by law for other county warrants.

     (2)  The county clerk and recorder shall include in his the annual tabulation to be submitted to the board of county commissioners the total amount of emergency warrants issued during the preceding fiscal year. Subject to the provisions of subsection (3), the county commissioners shall, in their tax levies, include a levy for each fund sufficient to raise an amount equal to the total amount of such emergency warrants, if there be any, remaining unpaid at the close of such the preceding fiscal year because of insufficient money in such an appropriate fund to pay the same warrants.

     (3)  (a) No Subject to subsection (3)(b), a levy shall may not be made for any fund in excess of the levy authorized by law to be made therefor.

     (b)  The board may submit the question of funding such emergency warrants through the use of bonds at any election as provided by law, and if at any such the election the issuing of such funding bonds be is authorized, it shall is not then be necessary for any levy to be made for the purpose of paying such the emergency warrants."



     Section 21.  Section 7-6-2348, MCA, is amended to read:

     "7-6-2348.  Budgets of appointed boards and commissions -- exemption for bonds. (1) With respect to tax and fee money, the proposed budget of and the number of mills to be assessed by any board, commission, or other governing entity, except a board of trustees of a public library and an airport authority, appointed by a local government are subject to approval by that local government.

     (2)  If a board, commission, or other governing entity, other than a port authority created under Title 7, chapter 14, part 11, issues bonds approved by the electorate and pledges to the payment of the bonds, taxes, revenue, or fees in accordance with the statutes authorizing the issuance of the bonds, the taxes, revenue, or fees and the levy or appropriation of the taxes, revenue, or fees are not subject to approval by the local government appointing the board, commission, or governing entity."



     Section 22.  Section 7-6-2531, MCA, is amended to read:

     "7-6-2531.  County may exceed maximum mill levy -- election required. The governing body of a county may raise money by taxation for the support of county government services, facilities, or other capital projects in excess of the levy or levies allowed by law under the following conditions:

     (1)  The governing body shall pass a resolution indicating its intent to exceed the current statutory mill levy on the approval of a majority of the qualified electors voting in an election under subsection (2). The resolution must include:

     (a)  the specific purpose for which the additional money will be used;

     (b)  the specific amount to be raised;

     (c)  the approximate number of mills required; and

     (d)  the specific mill levy limitation to be exceeded.

     (2)  (a)  Except as provided in subsection (2)(b), the governing body shall submit the question of the additional mill levy to the qualified electors of the county at the next regular primary tax election held in an even-numbered year.

     (b)  If the purpose of the special levy designated pursuant to subsection (1)(a) is for the support of a health care facility as described in 7-6-2512, the governing body may submit the question of the additional mill levy to the qualified electors of the county at a general election, at a school election held pursuant to 20-3-304, or at a regular primary election held in an even-numbered year.

     (c)(b)  If the majority voting on the question are in favor of the additional levy or levies, the governing body is authorized to exceed the statutory mill levy limit in the amount specified in the resolution for a period not to exceed 2 years."



     Section 23.  Section 7-6-2534, MCA, is amended to read:

     "7-6-2534.  Form of ballot. (1) If at any time it is desired to submit the question of additional levies for more than one purpose, such the propositions shall must be submitted on separate ballots.

     (2)  Each of the ballots shall must be in substantially the following form:

     Shall the county governing body be authorized to make a levy of SHALL THE (insert name of tax) BE INCREASED ANNUALLY BY (here insert the number when in full effect) mills taxes in addition to the regular levy now authorized by law for the purpose of MILLS IN THE FOLLOWING MANNER? (here insert the purpose for which the additional levy is to be made and the period for which it shall be in effect)?

     [] FOR additional levy

     [] AGAINST additional levy"



     Section 24.  Section 7-6-4237, MCA, is amended to read:

     "7-6-4237.  Use of bond proceeds and borrowed money. (1) Money received from borrowing may not be used for a purpose other than that for which borrowed, except that if any surplus remains after the accomplishment of the purpose for which borrowed, it must be used to redeem the municipal debt.

     (2)  The authorization of a bond issue by the electors or by the governing body of a municipality where an election is not required constitutes an appropriation of the bond proceeds to the purpose for which the bonds are authorized, whether or not the purpose is included in a budget previously adopted, but warrants may not be drawn, expenditures made, or obligations incurred in excess of the appropriation except pursuant to an additional appropriation included in a regularly adopted budget."



     Section 25.  Section 7-6-4261, MCA, is amended to read:

     "7-6-4261.  Determination of fund requirements to be met by tax levy. (1) Following the determinations required by 7-6-4260, the governing body shall determine the amount to be raised for each fund for which a tax levy is to be made by adding the cash balance in excess of outstanding unpaid warrants at the close of the preceding fiscal year and the amount of the estimated revenues, if any, to accrue to the fund during the current fiscal year. It shall then deduct the total amount obtained from the total amount of the appropriations and authorized expenditures from the fund as determined by the governing body in the budget adopted and approved. The amount remaining is the amount necessary to be raised for any fund by tax levy during the current fiscal year.

     (2)  The Subject to the requirement that collections not exceed actual receipts during the prior year, the governing body may add to the amount necessary to be raised for any fund by tax levy during the current fiscal year an additional amount as a reserve to meet expenditures to be made from the fund during the months of July to November of the next fiscal year. The undesignated amount held as a reserve may not exceed one-half of the total amount appropriated and authorized to be spent from the fund during the current fiscal year, after deducting from the amount of the appropriations and authorized expenditures the total amount appropriated and authorized to be spent for election expenses and payment of emergency and other outstanding warrants.

     (3)  The Unless approved by the electorate, the total amount to be raised by tax levy for any fund during the current fiscal year, including the amount of the reserve, may not exceed the total amount that may be raised for the fund by a tax levy that does not exceed the maximum levy permitted by law to be made for the fund.

     (4)  This section does not apply to a municipality that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."



     Section 26.  Section 7-6-4272, MCA, is amended to read:

     "7-6-4272.  Emergency expenditures. (1) All emergency expenditures must be charged to the emergency budget appropriations adopted by a three-fourths majority of the members present at a meeting of a governing body.

     (2)  Emergency expenditures may be made by the issuance of checks or warrants drawn on the municipal treasury. The municipality is authorized and directed to pay the checks or warrants with any money available for that purpose. If at any time there is insufficient money available to pay the emergency expenditures, then emergency warrants must be issued and registered, must bear interest, and must be called for payment in the manner provided by law for other municipal warrants.

     (3)  The finance officer shall include in the preliminary annual operating budget to be submitted to the governing body the total amount of emergency warrants issued during the preceding fiscal year that remain unpaid. Subject to the provisions of this section, the governing body shall, subject to revenue limitations and voter approval, in the tax levies, include a levy for each fund sufficient to raise an amount equal to the total amount of any emergency warrants remaining unpaid at the close of the preceding fiscal year because of insufficient money in the fund to pay the warrants.

     (4)  (a) A levy may not be made for any fund in excess of the levy authorized by law to be made for the fund.

     (b)  The governing body may submit the question of funding the emergency warrants at an a tax election as provided by law. If possible, the election must be held in conjunction with a regular or primary election. If at the election issuing of funding bonds is authorized at an election, it is not necessary for any levy to be made for the purpose of paying the emergency warrants.

     (5)  This section does not apply to a municipality that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."



     Section 27.  Section 7-6-4431, MCA, is amended to read:

     "7-6-4431.  Authorization to exceed maximum mill levy -- election required. The governing body of a municipality may raise money by taxation for the support of municipal government services, facilities, or other capital projects in excess of the levy or levies allowed by law under the following conditions:

     (1)  The governing body must pass a resolution indicating its intent to exceed the current statutory mill levy on the approval of a majority of the qualified electors voting in an election under subsection (2). The resolution must include:

     (a)  the specific purpose for which the additional money will be used;

     (b)  the specific dollar amount to be raised;

     (c)  the approximate number of mills required; and

     (d)  the specific mill levy limitation to be exceeded.

     (2)  The governing body must submit the question of the additional mill levy to the qualified electors of the municipality at the next regular primary or general tax election on either odd-numbered or even-numbered years. The question may not be submitted more than once in any calendar year. If the majority voting on the question are in favor of the additional levy or levies, the governing body is authorized to exceed the statutory mill levy limit in the amount specified in the resolution for a period not to exceed 2 years."



     Section 28.  Section 7-7-2101, MCA, is amended to read:

     "7-7-2101.  Limitation on amount of county indebtedness. (1) A county may not become indebted in any manner or for any purpose in an amount, including existing indebtedness, in the aggregate exceeding 23% of the total of the taxable value of the property in the county subject to taxation, plus the value provided by the department of revenue in 15-36-324(13), as ascertained by the last assessment for state and county taxes previous to the incurring of the indebtedness, plus, for indebtedness to be incurred during fiscal year 1997, an additional 11% of the taxable value of class eight property within the county for tax year 1995, for indebtedness to be incurred during fiscal year 1998, an additional 22% of the taxable value of class eight property within the county for tax year 1995, and for indebtedness to be incurred during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for tax year 1995, in each case of class eight property, multiplied by 23%.

     (2)  A county may not incur indebtedness or liability for any single purpose to an amount exceeding $500,000 without the approval of a majority of the electors of the county voting at an election to be provided by law, except as provided in 7-7-2402, 7-21-3413, and 7-21-3414.

     (3)  This section does not apply to the acquisition of conservation easements as set forth in Title 76, chapter 6."



     Section 29.  Section 7-7-2223, MCA, is amended to read:

     "7-7-2223.  Election required for issuance of certain bonds. (1) County bonds for any purpose other than those enumerated in 7-7-2221 and 7-7-2311 may not be issued unless authorized at a special an election that is conducted by mail ballot, as provided in Title 13, chapter 19, at a special election held in conjunction with a regular or primary election, or at a general election at which the question of issuing the bonds is submitted to the registered electors of the county and approved as provided in 7-7-2237.

     (2)  A bond election may not be called unless the board of county commissioners:

     (a)  initiates and unanimously adopts a resolution in accordance with the provisions of 7-7-2227(2); or

     (b)  receives a petition, delivered and certified by the election administrator, asking that the election be held and the question be submitted. The petition must be signed by at least 20% of the registered electors of the county."



     Section 30.  Section 7-7-2302, MCA, is amended to read:

     "7-7-2302.  Applicability of certain other bond provisions. (1) The provisions of 7-7-2203 through 7-7-2207, 7-7-2209 through 7-7-2211, 7-7-2222, 7-7-2255 through 7-7-2266, 7-7-2268 through 7-7-2270, and 7-7-2272 through 7-7-2274 apply to refunding bonds issued under this part; however, the board of county commissioners may at its option sell bonds issued under this part at a private negotiated sale or at a public sale conducted pursuant to the provisions of 7-7-2251, 7-7-2252, and 7-7-2254.

     (2)  If a refunding bond issue refunds only a portion of an outstanding bond issue, the unrefunded portion of the outstanding bond issue and the refunding bond issue must be treated as a single bond issue for the purposes of 7-7-2211."



     Section 31.  Section 7-7-2402, MCA, is amended to read:

     "7-7-2402.  Election required to borrow money -- exceptions. (1) Except as provided in subsection (4), the The board of county commissioners may not borrow money for any of the purposes mentioned in this title or for any single purpose in an amount exceeding the limits set in subsection (2) without:

     (a)  first submitting the question of a loan to a vote of the electors of the county; and

     (b)  obtaining the approval of a majority of the electors of the county.

     (2)  Based upon the taxable valuation of a county, a county may borrow the following amounts without a vote of the electorate:

     (a)  up to $500,000 if the county's taxable value is less than $50 million;

     (b)  up to $750,000 if the county's taxable value is between $50 million and $100 million; and

     (c)  up to $1 million if the county's taxable valuation is greater than $100 million.

     (3)(2)  If a majority of the votes cast are in favor of the loan, then the board of county commissioners may enter into the loan, issuing bonds or otherwise as is in the best interests of the county.

     (4)  It is not necessary to submit to the electors the question of borrowing money:

     (a)  to refund outstanding bonds; or

     (b)  for the purpose of enabling any county to liquidate its indebtedness to another county incident to the creation of a new county or the change of any county boundary lines."



     Section 32.  Section 7-7-4426, MCA, is amended to read:

     "7-7-4426.  Authorization for undertaking and issuance of bonds. (1) The acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of any undertaking may be authorized under this part.

     (2)  Bonds may be authorized to be issued under this part by resolution or resolutions of the governing body of the municipality:

     (a)  without an election; or

     (b)  when authorized by a majority of the qualified electors voting upon the question at a special election that is conducted by mail ballot, as provided in Title 13, chapter 19, or that is held in conjunction with a regular or primary election, if the governing body in its sole discretion chooses to submit the question to the electorate."



     Section 33.  Section 7-11-308, MCA, is amended to read:

     "7-11-308.  General ballot requirements. (1) The question of adopting a service consolidation or transfer shall be submitted to the electors of the local governments affected by the proposal in substantially the following form:

     Shall the plan for (consolidation or transfer) of (insert name of service or function) services proposed in the (petition or recommendation of the interlocal cooperation commission) and service plan to the (insert the names of local government units) be adopted?

     [] YES.

     [] NO.

     (2)  If the question of adopting a service consolidation or transfer alters the elective status of any elected county official, it shall be submitted to the electors of the local governments affected by the proposal in substantially the following form:

     [] For adoption of (consolidation or transfer) of (insert name of service or function) proposed in the (petition or recommendation of the interlocal cooperation commission) and service plan to the (insert names of local government units) in which the office of (insert name of county office) is (insert description of changes in elective status).

     [] For existing service delivery arrangements.

     (3)  In Subject to any approval required at a tax election, any election involving the question of service consolidation or transfer, an affirmative vote of a simple majority of those voting on the question is required for adoption.

     (4)  If the electors disapprove the proposed service consolidation or transfer, each local government retains its existing service delivery method until changed or modified as provided by law.

     (5)  Except for nonsubstantive adjustments required to insure ensure efficient and effective operations, a service consolidation or transfer effected by the procedures contained in this part may be amended or otherwise changed only in the same manner as required for its adoption."



     Section 34.  Section 7-11-1112, MCA, is amended to read:

     "7-11-1112.  Financing. (1) Local If approved at a tax election, local governments organizing a multijurisdictional service district are authorized to levy property taxes in an amount not to exceed that authorized for the district in 7-11-1106, and to appropriate funds derived from other than general tax revenues for the operation of the district. Property taxes levied for a library established under this part as a multijurisdictional service must be added to taxes levied under 22-1-304.

     (2)  A property tax levied for the purpose of financing the district must, for all agricultural property having an area greater than 10 acres, be levied only on the principal residential dwelling, if any, on such the agricultural property."



     Section 35.  Section 7-12-2158, MCA, is amended to read:

     "7-12-2158.  Resolution for levy and assessment of tax. (1) To defray the cost of making or acquiring improvements in any special improvement district, the board of county commissioners shall by resolution and upon approval at a tax election levy and assess a tax upon all benefited property in the district created for such that purpose, by using for a basis for such the assessment the method or methods provided for by this part and described in the resolution of intention.

     (2)  Such The resolution shall must contain a description of each lot or parcel of land, with the name of the owner if known, and the amount of each partial payment, when made, and the day when the same shall become payment becomes delinquent.

     (3)  Such The resolution, signed by the chairman presiding officer of the board, shall must be kept on file in the office of the county clerk."



     Section 36.  Section 7-13-308, MCA, is amended to read:

     "7-13-308.  Revenue bonds and obligations. (1) A joint district may borrow money for any purpose provided in this part and issue bonds, including refunding bonds, in a form and upon terms as it may determine, payable from any revenue of the joint district, including revenue from:

     (a)  service charges authorized in 7-13-307;

     (b)  grants or contributions from the state or federal government; or

     (c)  other sources.

     (2)  The bonds may be issued by resolution of the joint district without an election and without any limitation of the amount, except that bonds may not be issued at any time if the total amount of principal and interest to become due in any year on the bonds and on any then-outstanding bonds for which revenue from the same source or sources is pledged exceeds the amount of the revenue to be received in that year as estimated in the resolution authorizing the issuance of the bonds. The Subject to Article VIII, section 17, of the Montana constitution, the board shall take all action necessary and possible to impose, maintain, and collect rates, charges, rentals, and taxes, if any are pledged, sufficient to make the revenue from the pledged source in a year at least equal to the amount of the principal and interest due in that year.

     (3)  The bonds may be sold at public or private sale and may bear interest as provided in 17-5-102. Except as otherwise provided in this part, bonds issued pursuant to this part by a joint district may be payable in principal and interest solely from revenues of the joint district and must state on their face the applicable limitations or restrictions regarding the source from which the principal and interest are payable.

     (4)  Bonds issued by a joint district under this part are issued for an essential public and governmental purpose by a political subdivision within the meaning of 15-30-111(2)(a).

     (5)  For the security of any bond, the joint district may by resolution make and enter into any covenant, agreement, or indenture. The sums required from time to time to pay principal and interest and to create and maintain a reserve for the bonds may be paid from any revenue referred to in this part prior to the payment of current costs of operation and maintenance of the solid waste management system."



     Section 37.  Section 7-13-2214, MCA, is amended to read:

     "7-13-2214.  Order creating district upon sufficient favorable vote. (1) (a) If at least 40% of all registered voters residing within the proposed district have voted and if a majority of the votes cast at such the election in each municipal corporation or part thereof of a municipal corporation and in the unincorporated territory of each county included in such the proposed district shall be are in favor of organizing such the county district, said the board of county commissioners of each such county shall, by an order entered on its minutes, declare the territory enclosed within the proposed boundaries duly organized as a county water and/or district or county sewer district, or both, under the name theretofore designated.

     (b) If the creation of the district is authorized as provided in subsection (1)(a), the district may not be formed until the tax election provisions of Article VIII, section 17, of the Montana constitution have been complied with.

     (2)  The election administrator of each such county shall immediately cause to be filed with the secretary of state and shall cause to be recorded in the office of the clerk and recorder of the county or each county in which such the district is situated a certificate stating that such a proposition was adopted."



     Section 38.  Section 7-13-2341, MCA, is amended to read:

     "7-13-2341.  Addition of land to district. (1) Except as provided in subsection (5), any portion of any county or any municipality, or both, may be added to any district organized under the provisions of part 22 and this part at any time upon petition presented in the manner provided in part 22 and this part for the organization of the district.

     (2)  The petition may be granted by ordinance of the board of directors of the district. The ordinance must be submitted for adoption or rejection to the vote of the electors in the district and in the proposed addition at a general election, at a special election that is conducted by mail ballot, as provided in Title 13, chapter 19, or at a special election that is held in conjunction with a regular or primary election. The necessary taxes or fees must be approved at a tax election in the proposed addition.

     (3)  If the ordinance is approved and all taxes or fees are approved, the president and secretary of the board of directors shall certify that fact to the secretary of state and to the county clerk and recorder of the county in which the district is located. Upon the receipt of the certification, the secretary of state shall within 10 days issue a certificate that states the passage of the ordinance and the addition of the territory to the district. A copy of the certificate must be transmitted to and filed with the county clerk and recorder of the county in which the district is situated.

     (4)  After the filing of the certificate, the territory is added to and is a part of the district with all the rights, privileges, and powers set forth in this part and necessarily incident to this part.

     (5)  If the board of directors determines that a district has a water facility or a sewer facility with a capacity greater than required to meet the needs of the current district, it may by ordinance, upon petition of contiguous property owners and with the written consent of all property owners to whom approval at a tax election of the qualified electors of the area to which the service is to be extended, expand the district to include land, to the extent of excess capacity, without complying with subsections (1) and (2). However, if the board determines that an election should be held or if 40% or more of the members of the district petition for an election, compliance with subsections (1) and (2) is required."



     Section 39.  Section 7-13-2342, MCA, is amended to read:

     "7-13-2342.  Consolidation of county water and/or sewer districts. (1) Two or more districts organized under the provisions of this part and part 22 and this part may consolidate at any time, upon petitions submitted to the board of directors of each such district and approval of any necessary taxes or fees at a tax election. Such The petitions shall must be in the form required for petitions for the organization of districts. Each such petition shall must be signed by not less than 10% of the registered voters of the territory included within said the district.

     (2)  Said The petitions may be granted by ordinance of the board of directors of each of said the districts. Such The ordinances shall be submitted for adoption or rejection to the vote of the electors in such districts at general or special elections held, as provided in this part and part 22, within 70 days after the adoption of such ordinances may not become effective unless all necessary taxes and fees are approved at a tax election.

     (3)  If such the ordinances are approved become effective, the president and secretary of the boards of directors of each of said the districts shall certify that fact to the secretary of state and to the county clerk of the county or counties in which such the districts are located. Upon the receipt of said the certificate, the secretary of state shall within 10 days issue his a certificate, reciting the passage of said and effectiveness of the ordinances and the consolidation of said the districts. A copy of such the secretary of state's certificate shall must be transmitted to and filed with the county clerk of each county in which such the consolidated district is situated.

     (4)  From and after After the date of such the secretary of state's certificate, the districts shall be deemed to be are consolidated and shall consist of one district with all the rights, privileges, and powers set forth in this part and part 22 and this part and necessarily incident thereto to part 22 and this part.

     (5)  The number and manner of selection and election of directors of the consolidated district shall must be the same as the number and manner of selection and election of directors of newly organized districts."



     Section 40.  Section 7-13-4204, MCA, is amended to read:

     "7-13-4204.  Rental charges for use of sewer system -- election required. (1) Upon being petitioned by 5% of the qualified electors, the city council shall submit to a vote to the qualified electors, at the annual municipal tax election or at a special election held in conjunction with a regular or special election, the question of whether or not the city council may establish and collect specified rentals for the use of the sewer system, may fix the scale of the rentals, and may prescribe the manner and time at which the rentals must be paid:

     (a)  to provide the sewer fund;

     (b)  to provide for the retirement of the bonds and the payment of the interest on the bonds; or

     (c)  for any purpose mentioned in this section.

     (2)  If a majority of votes is cast in favor of the proposition, then the city or town council may establish and collect rentals for the use of the sewer system, may fix impose the scale of rentals, and may prescribe the manner and time at which the rentals should be paid, and may change the scale of rentals from time to time as considered advisable.

     (3)  The revenue provided in this section are in addition to and not exclusive of other revenue that may be legally collected for sewer payment."



     Section 41.  Section 7-14-210, MCA, is amended to read:

     "7-14-210.  Election on question of creating urban transportation district or addition to a district. (1) The commissioners, upon completion of the public hearing required by 7-14-207, shall proceed by resolution to refer the creation of the district or addition to a district to the persons qualified to vote on the proposition. The vote on the proposition may occur either before or after any necessary tax election.

     (2)  The commissioners may designate in their resolution whether a special election is to be held in conjunction with a regular or primary election, whether the matter is to be determined at the next general election, or whether the matter is to be determined by a mail ballot election held pursuant to the provisions of Title 13, chapter 19. If a special election is ordered, the order must specify the date for the election and the voting places and the commissioners shall appoint and designate election judges and clerks."



     Section 42.  Section 7-14-212, MCA, is amended to read:

     "7-14-212.  District to be governed by transportation board. (1) The If authorized at the election on the creation of the district and if any necessary tax or fee is approved at a tax election, the district must be governed by a transportation board. The commissioners and the governing bodies of each city or town included or partially included in the district shall determine if the board is to be elected or appointed.

     (2)  The commissioners and the governing body by resolution shall:

     (a)  determine the number of board members;

     (b)  set the term of office;

     (c)  determine the makeup of the board with respect to the number of appointed members that will represent each county, city, or town;

     (d)  establish a procedure for selecting the initial members of an elected board. The initial members shall serve until the first county general election after their appointment.

     (e)  determine the number of candidates for an elected board whose names must be placed on the ballot in the county general election, based on the results of the primary election; and

     (f)  establish a procedure for filling vacancies on the board, including a provision for public notice.

     (3)  The commissioners and the governing body may, at any time, adopt a resolution changing the method by which the members of the board are selected. The resolution must contain a provision that the term of office of the current members of the board may not be shortened."



     Section 43.  Section 7-14-1131, MCA, is amended to read:

     "7-14-1131.  Municipal tax levy. The Subject to Article VIII, section 17, of the Montana constitution, a port authority may request annually from the governing bodies the amount of tax to be levied by each municipality participating in the creation of the port authority, and the municipality may levy the amount requested, pursuant to provisions of law authorizing cities and other political subdivisions of this state to levy taxes. The levy made may not exceed the maximum levy permitted by 67-10-402 for port purposes or any lower limit that may have been established by the municipality or municipalities in the resolution creating the authority. The municipality shall collect the taxes requested by a port authority that it has authorized in the same manner as other taxes are levied and collected and make payment to the port authority. The proceeds of such the taxes when and as paid to the port authority must be deposited in a special account or accounts in which other revenues of the authority are deposited and may be expended by the authority as provided for in this part. Prior to the issuance of bonds under 7-14-1133 and 7-14-1134, the port authority or the municipality may by resolution covenant and agree that the total amount of such the taxes then authorized by law, or such a portion thereof of the taxes as may be specified by the resolution, will be requested, levied, and deposited annually as provided in this section until the bonds and interest thereon on the bonds are fully paid."



     Section 44.  Section 7-14-1133, MCA, is amended to read:

     "7-14-1133.  Bonds and obligations. (1) Except for providing financial support to a private development organization, including a corporation organized under Title 32, chapter 4, whose purpose is to advance the economic development of its jurisdiction and of the state and its citizens, an authority may borrow money for any of its corporate purposes and issue bonds, including refunding bonds, for any of its corporate purposes. The bonds may be in the form and upon terms as it determines, payable out of any revenue of the authority, including revenue derived from:

     (a)  any port or transportation and storage facility;

     (b)  taxes levied pursuant to 7-14-1131 or 67-10-402;

     (c)  grants or contributions from the federal government; or

     (d)  other sources.

     (2)  The bonds may be issued by resolution of the authority, without approved at an election and without any limitation of amount, except that bonds may not be issued at any time if the total amount of principal and interest to become due in any year on the bonds and on any then outstanding bonds for which revenue from the same source is pledged exceeds the amount of revenue to be received in that year, as estimated in the resolution authorizing the issuance of the bonds. The authority shall take all action necessary and possible to impose, maintain, and collect rates, charges, and rentals and to request taxes, if any are pledged, sufficient to make the revenue from the pledged source in such each year at least equal to the amount of principal and interest due in that year.

     (3)  The bonds may be sold at public or private sale and may bear interest as provided in 17-5-102. Except as otherwise provided in this part, any bonds issued pursuant to this part by an authority may be payable as to principal and interest solely from revenue of the authority or from particular port, transportation, storage, or other facilities of the authority. The bonds must state on their face the applicable limitations or restrictions regarding the source from which principal and interest are payable.

     (4)  Bonds issued by an authority, county, or municipality pursuant to the provisions of this part are declared to be issued for an essential public and governmental purpose by a political subdivision within the meaning of 15-30-111(2)(a).

     (5)  (a) For the security of bonds, the authority, county, or municipality may by resolution make and enter into any covenant, agreement, or indenture and may exercise any additional powers authorized to be exercised by a municipality under Title 7, chapter 7, parts 44 and 45. The sums required from time to time to pay principal and interest and to create and maintain a reserve for the bonds may be paid from any revenue referred to in this part, prior to the payment of current costs of operation and maintenance of the facilities.

     (b)  As further security for the bonds, the authority, with the approval of the governing body of the county or municipality that created the authority, may pledge, lease, sell, mortgage, or grant a security interest in all or any portion of its port, transportation, storage, or other facilities, whether or not the facilities are financed by the bonds. The instrument effecting the pledge, lease, sale, mortgage, or security interest may contain any agreements and provisions customarily contained in instruments securing bonds, as the commissioners of the authority consider advisable. The provisions must be consistent with this part and are subject to and must be in accordance with the laws of this state governing mortgages, trust indentures, security agreements, or instruments. The instrument may provide that in the event of a default in the payment of principal or interest on the bonds or in the performance of any agreement contained in the proceedings authorizing the bonds or instrument, the payment or performance may be enforced by mandamus or by the appointment of a receiver in equity. The receiver may collect charges, rental, or fees and may apply the revenue from the mortgaged property or collateral in accordance with the proceedings or the provisions of the instrument.

     (6)  Nothing in this section or 7-14-1134 may be construed to limit the use of port authority revenue, including federal and state money as described in 7-14-1136, to make grants and loans or to otherwise provide financial and other support to private development organizations, including corporations organized under the provisions of the development corporation act in Title 32, chapter 4. The credit of the state, county, or municipal governments or their agencies or authorities may not be pledged to provide financial support to the development organizations."



     Section 45.  Section 7-14-1134, MCA, is amended to read:

     "7-14-1134.  Method of funding deficiency. (1) Subject to the conditions stated in this section, the governing body of a county or of a municipality having a population in excess of 10,000 may by resolution covenant that if at any time all revenue, including taxes, appropriated and collected for bonds issued pursuant to this part are insufficient to pay principal or interest then due, it will levy submit to the qualified electors the question of imposing a general tax upon all of the taxable property in the county or municipality for the payment of the deficiency. The governing body may further covenant that at any time a deficiency is likely to occur within 1 year for the payment of principal and interest due on the bonds, it will levy submit to the qualified electors the question of imposing a general tax upon all the taxable property in the county or municipality for the payment of the deficiency. The taxes are not subject to any limitation of rate or amount applicable to other county or municipal taxes but are limited to a rate estimated to be sufficient to produce the amount of the deficiency. If more than one local government is included in an authority issuing bonds pursuant to this part, the local governments may apportion the obligation to levy taxes submitted to the electorate for the payment of, or in anticipation of, a deficiency in the revenue appropriated for the bonds in a manner that the local governments may determine.

     (2)  The resolution must state the principal amount and purpose of the bonds and the substance of the covenant respecting deficiencies.

     (3)  (a)  A resolution is not effective until the question of its approval has been submitted to and approved by the qualified electors of the local government at a special tax election:

     (i)  called for that purpose by the governing body of the local government;

     (ii) held in conjunction with a regular or primary election; and

     (iii) approved by a majority of the electors voting on the question.

     (b)  The notice and conduct of the election is governed, to the extent applicable, as provided for municipal general obligation bonds in Title 7, chapter 7, part 42, for an election called by cities and towns, and as provided for county general obligation bonds in Title 7, chapter 7, part 22, for an election called by counties. If a majority of the electors voting on the issue vote against approval of the resolution, the local government may not make the covenant or levy a tax for the payment of deficiencies pursuant to this section. The local government or authority may issue bonds under this part payable solely from the sources referred to in 7-14-1133(1)."



     Section 46.  Section 7-14-1633, MCA, is amended to read:

     "7-14-1633.  Election required to impose mill levy. (1) Before the levy provided for in 7-14-1632 may be made, the question must be submitted to a vote of the people at the next regular school tax election held in accordance with 20-3-304 or by mail ballot election as provided by Title 13, chapter 19, in the appropriate of the following form forms:

     (a) SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED?

"Shall there be a levy of (specify number, not to exceed 6) mills upon the taxable property of the (specify rail authority) necessary to raise the sum of (specify the approximate amount to be raised by the tax levy) for the purpose of (specify purpose for which the levy is made)?

     [] FOR the tax levy.

     [] AGAINST the tax levy."

     (b) SHALL THE RAIL AUTHORITY TAX BE INCREASED ANNUALLY BY (specify number of mills when in full effect), IN THE FOLLOWING MANNER?

Shall there be a levy of (specify number, not to exceed 6) mills upon the taxable property of the (specify rail authority) necessary to raise the sum of (specify the approximate amount to be raised by the tax levy) for the purpose of (specify purpose for which the levy is made)?

     [] FOR the tax levy.

     [] AGAINST the tax levy.

     (2)  Notice of the election, clearly stating the amount and the purpose of the levy, must be given and the election must be held and conducted and the returns must be made in the manner prescribed by law for the submission of questions to the electors under the general election laws."



     Section 47.  Section 7-14-1636, MCA, is amended to read:

     "7-14-1636.  Bonds and obligations. (1) An authority may borrow money for any of its corporate purposes and issue bonds for its purposes, including refunding bonds, in a form and upon terms as it determines, payable out of any revenue of the authority, including revenue derived from:

     (a)  a railroad;

     (b)  taxes levied pursuant to 7-14-1632;

     (c)  grants or contributions from the federal government; or

     (d)  other sources.

     (2)  The bonds may be issued by resolution of the authority, without upon approval at an election and without any limitation of amount, except that bonds may not be issued at any time if the total amount of principal and interest to become due in a year on the bonds and on any then-outstanding bonds for which revenue from the same source is pledged exceeds the amount of the revenue to be received in that year, as estimated in the resolution authorizing the issuance of the bonds. The authority shall take all action necessary and possible to impose, maintain, and collect rates, charges, and rentals and to request taxes, if any are pledged, sufficient to make the revenue from the pledged source in the year at least equal to the amount of principal and interest due in that year.

     (3)  The bonds may be sold at public or private sale and may bear interest as provided in 17-5-102. Bonds issued by an authority pursuant to this part may be payable as to principal and interest solely from revenue of the authority and must state on their face the applicable limitations or restrictions regarding the source from which the principal and interest are payable.

     (4)  Bonds issued by an authority pursuant to the provisions of this part are declared to be issued for an essential public and governmental purpose by a political subdivision within the meaning of 15-30-111(2)(a).

     (5)  For the security of the bonds, the authority may by resolution make and enter into any covenant, agreement, or indenture and may exercise any additional powers authorized to be exercised by a municipality under Title 7, chapter 7, parts 44 and 45. The sums required from time to time to pay principal and interest and to create and maintain a reserve for the bonds may be paid from the revenue referred to in this part, prior to the payment of current costs of operation and maintenance of the facilities."



     Section 48.  Section 7-14-2504, MCA, is amended to read:

     "7-14-2504.  Additional road and bridge construction tax -- election required. (1) Each board may make an additional levy upon the taxable property in the county of up to 10 mills for constructing public highways and bridges.

     (2)  Before the additional levy may be made, the question must be submitted to a vote of the people at a general election or a special election held in conjunction with a regular or primary tax election. The question must be in the following form, inserting the number of mills to be levied and the name of the county:

SHALL THE ROAD AND BRIDGE CONSTRUCTION TAX BE INCREASED ANNUALLY BY (specify number of mills when in full effect), IN THE FOLLOWING MANNER?

"Shall there be an additional levy of.... mills upon the taxable property in the county of...., state of Montana, for the purpose of constructing public highways and bridges?

     [] YES

     [] NO".

     (3)  A majority of the votes cast is necessary to permit the additional levy, which must be collected in the same manner as other road taxes."



     Section 49.  Section 7-14-4404, MCA, is amended to read:

     "7-14-4404.  Tax levy for contracts to operate bus service. For the purpose of raising the necessary money to defray the cost of the transportation service authorized by 7-14-4401(2) pursuant to a contract, lease, or lease and operating agreement with an independent carrier or carriers, the city or town council may, subject to Article VIII, section 17, of the Montana constitution, annually levy a tax on the taxable value of all taxable property within the limits of the city or town. Whenever the council of the city or town considers it necessary to raise money by taxation for transportation services in excess of the levy allowed by law, the council of the city or town shall in the manner prescribed by law submit the question of the additional levy to the qualified electors of the city or town, either at the regular annual tax election held in the city or town or at a special election that is held in conjunction with a regular or primary election and that is called for that purpose by the council of the city or town. The additional levy may not exceed 1 1/2 mills."



     Section 50.  Section 7-14-4512, MCA, is amended to read:

     "7-14-4512.  Referendum on parking meters prior to enacting ordinance. An ordinance providing for the purchasing, renting, leasing, or otherwise acquiring or installing, maintaining, operating, or using parking meters, devices, or instruments may not be enacted unless the question of whether or not the ordinance may be enacted has been submitted to the qualified electors of the city or town at a general tax election or a special election that is held in conjunction with a regular or primary election and that is called for that purpose. An ordinance may not be enacted unless authorized by a majority of the votes cast are in favor of enacting the ordinance."



     Section 51.  Section 7-15-2111, MCA, is amended to read:

     "7-15-2111.  Area of operation of county housing authority -- inclusion of municipalities. (1) The area of operation of a county housing authority includes the county but does not include any city unless a resolution has been adopted by the governing body of the city and by any authority established and authorized to exercise its powers in the city declaring that there is need for the county authority to exercise its powers within that city. The resolution is not effective until it has been approved by a majority vote of the electors within the corporate limits of the city or town voting either at a special election held in conjunction with a regular or primary election or at a general tax election.

     (2)  If, after the adoption of a resolution or resolutions, an authority is established for any city within the county, the county authority may not initiate any further housing projects within the city without the consent by resolution of the governing body of the city and of the authority established for the city."



     Section 52.  Section 7-16-2102, MCA, is amended to read:

     "7-16-2102.  Authorization for tax levy for parks and certain cultural, social, and recreational facilities. (1) The board of county commissioners may annually levy on the taxable property of the county, in the same manner and at the same time as other county taxes are levied, a special tax, not to exceed 2 mills on each dollar of the taxable valuation for any one year, for the purpose of maintaining, operating, and equipping parks, cultural facilities, and any county-owned civic center, youth center, recreation center, recreational complex, or any combination thereof.

     (2)  (a) The board of county commissioners must shall submit the question of imposing or the continued imposition of the property tax mill levy provided in subsection (1) to the electors of the county at the next general tax election if a petition requesting such an election, signed by at least 15% of the resident taxpayers of the county, is filed with the county clerk. The petition must be filed with the county clerk at least 90 days prior to the date of the general tax election.

     (b)  The question will must be submitted substantially as follows in accordance with the appropriate of the following:

     (i) SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED?

     [] FOR the imposition (or continued imposition) of a property tax, not to exceed 2 of .... mills, for county parks and for county-owned cultural, social, and recreational facilities.

     [] AGAINST the imposition (or continued imposition) of a property tax of .... mills, for county parks and for county-owned cultural, social, and recreational facilities.

     (ii) SHALL THE COUNTY PARKS AND CULTURAL, SOCIAL, AND RECREATIONAL FACILITY TAX BE INCREASED ANNUALLY (insert amount of annual increase when in full effect or that existing tax is being continued), IN THE FOLLOWING MANNER?

     [] FOR the (increase or continued imposition) of a property tax of .... mills, for county parks and for county-owned cultural, social, and recreational facilities.

     [] AGAINST the (increase or continued imposition) of a property tax of .... mills, for county parks and for county-owned cultural, social, and recreational facilities.

     (c)  The board of county commissioners shall levy such a the tax for the 2 subsequent fiscal years if the question for the imposition of the tax is approved by a majority of the electors voting on the question.

     (3)  All laws applicable to the collection of county taxes shall apply to the collection of the tax provided herein in this section."



     Section 53.  Section 7-16-2109, MCA, is amended to read:

     "7-16-2109.  Single tax for county fair activities, county parks, and certain cultural, social, and recreational facilities -- restriction. (1) Except as provided in subsection (2), the county commissioners of a county who have levied taxes pursuant to both 7-16-2102 and 7-21-3410 before January 1, 1993, may combine the two taxes into a single tax that may not exceed 3 1/2 mills on each dollar of the taxable valuation for any 1 year for the purpose of maintaining, operating, and equipping county fair activities, county parks, cultural facilities, and any county-owned civic center, youth center, recreation center, recreational complex, or any combination thereof. The money collected may be distributed among the activities and facilities as determined by the county commissioners.

     (2)  (a) The board of county commissioners shall submit the question of imposing or continuing the imposition of the single tax provided for in subsection (1) to the electors of the county at the next general election if a petition requesting a vote on the single tax, signed by at least 15% of the resident taxpayers of the county, is filed with the county clerk at least 90 days prior to the date of the general election.

     (b)  The question must be submitted substantially as follows in accordance with the appropriate of the following:

     (i) SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED?

     [] FOR imposition (or continued imposition) of a property tax, not to exceed 3 1/2 of .... mills, for county fair activities, county parks, and county-owned cultural, social, and recreational facilities.

     [] AGAINST imposition (or continued imposition) of a property tax, not to exceed 3 1/2 of .... mills, for county fair activities, county parks, and county-owned cultural, social, and recreational facilities.

     (ii) SHALL THE COUNTY PARKS AND CULTURAL, SOCIAL, AND RECREATIONAL FACILITY TAX BE INCREASED ANNUALLY (insert amount of annual increase when in full effect or that existing tax is being continued), IN THE FOLLOWING MANNER?

     [] FOR the (increase or continued imposition) of a property tax of .... mills, for county fair activities, county parks, and county-owned cultural, social, and recreational facilities.

     [] AGAINST the (increase or continued imposition) of a property tax of .... mills, for county fair activities, county parks, and county-owned cultural, social, and recreational facilities.

     (c)  The board of county commissioners shall levy the tax for the 2 subsequent fiscal years if the imposition or continued imposition of the single tax is approved by a majority of the electors voting on the question."



     Section 54.  Section 7-16-2411, MCA, is amended to read:

     "7-16-2411.  Creation of county park district. (1) Proceedings for the creation of a county park district may be initiated by:

     (a)  a petition signed by not less than 10% of the qualified electors of the proposed park district; or

     (b)  a resolution of intent adopted by the county governing body, calling for the creation of a county park district.

     (2)  The petition or resolution must contain:

     (a)  the boundaries of the proposed district;

     (b)  the proposed maximum property tax mill levy that could be levied on property owners within the district for the operation of the district; and

     (c)  the proposed number of members of the county park district commission. The number of members must be an odd number and may not be less than three.

     (3)  When the territory to be included in the proposed district lies in more than one county, a petition must be presented to the governing body of each county in which the territory lies. Each petition must be signed by not less than 10% of the qualified electors of the territory within the county proposed to be included in the district.

     (4)  Upon receipt of a petition for the creation of a county park district, the county clerk shall examine it and within 15 days either reject the petition if it is insufficient under the provisions of subsection (1), (2), or (3) or certify that the petition is sufficient and present it to the county governing body at its next meeting.

     (5)  The text of the petition or resolution must be published as provided in 7-1-2121 in each county in which the territory of the proposed district lies.

     (6)  At the hearing, the county governing body shall hear:

     (a) testimony of all interested persons on whether a county park district should be created;

     (b)  testimony regarding the proposed boundary, property tax mill levy, and number of members of the district commission; and

     (c)  any other matter relating to the proposed district.

     (7)  After the hearing, if the county governing body determines that the proposed park district should be created, it shall by resolution set the boundaries of the proposed park district, the maximum mill levy for the proposed park district, and the number of members to be on the district commission. The resolution must also call for an election on the question of whether to create the imposition of a mill levy to support the county park district. The election must be held in conjunction with a regular or primary election, provided that at least 75 days have elapsed between the adoption of the resolution and the at the next tax election. If the levy is approved, then the district is created. If the levy is not approved, then the district is not created."



     Section 55.  Section 7-16-2412, MCA, is amended to read:

     "7-16-2412.  Election on creation of district. (1) The election on the question of whether to create a impose a levy for a county park district must be conducted as provided in Title 13.

     (2)  Only qualified electors residing within the proposed park district may vote on the question of whether to create the district.

     (3)  The question of creating imposing a levy for a county park district shall be submitted to the electors in substantially the following form:

SHALL A NEW TAX, DESCRIBED AS FOLLOWS, BE IMPOSED?

     [] FOR the creation of a county park district which may levy not more than of .... mills of property tax for the operation of the district.

     [] AGAINST the creation of a county park district levy of .... mills of property tax for the operation of the district."



     Section 56.  Section 7-16-2413, MCA, is amended to read:

     "7-16-2413.  Formation of county park district -- appointment of initial commission. (1) If a majority of the votes cast at the election in each municipality or part of a municipality and in the unincorporated territory of each county included in the proposed district approve the formation of levy for the park district, the governing body of each county shall, within 10 days of receipt of the official canvass of the result, certify that the district is formed.

     (2)  Within 30 days after the certification of the formation of the district, the governing body of each county with territory included in the district shall jointly appoint the initial members of the county park district commission. The members shall serve until their successors are elected and qualified."



     Section 57.  Section 7-16-2432, MCA, is amended to read:

     "7-16-2432.  Election to change maximum property tax mill levy. (1) The maximum property tax mill levy authorized for the operation of a county park district may be changed by an election on the question of changing the maximum mill levy.

     (2)  A vote on the question of raising or lowering the maximum property tax mill levy in the district may be initiated by:

     (a)  a petition signed by not less than 15% of the electorate of the district; or

     (b)  a resolution of the county park district commission.

     (3)  The petition or resolution must set forth the proposed new maximum mill levy for the operation of the district.

     (4)  Upon receipt of a petition for a change in the maximum mill levy, certified by the county clerk as sufficient under this section, or a resolution for such a change adopted by the county park district commission, the county governing body shall submit to the electorate of the district, at the next tax election at which members are elected to the county park district commission, a ballot question on changing the maximum mill levy. The election on the question of changing the maximum mill levy must be held as provided in Title 13. The question must be submitted to the electors of the district in substantially the following form:

SHALL THE COUNTY PARK DISTRICT TAX BE INCREASED ANNUALLY (insert amount of annual increase when in full effect or that existing tax is being continued), IN THE FOLLOWING MANNER?

     [] FOR changing the authorized maximum property tax mill levy for the operation of the county park district from .... to .....

     [] AGAINST changing the authorized maximum property tax mill levy for the operation of the county park district from .... to ......

     (5)  If a county park district includes one or more municipalities or parts of municipalities, separate majorities of those voting on the question of changing the property tax mill levy are required of those voting who reside within each municipality and of those not residing within a municipality.

     (6)  The new maximum property tax mill levy is authorized for the following tax year if approved by a simple majority of the votes on the question."



     Section 58.  Section 7-16-2441, MCA, is amended to read:

     "7-16-2441.  Alteration of district boundaries. (1) The boundaries of a county park district may be enlarged by the annexation of contiguous territory in the county or it may be reduced in size by the withdrawal of territory from the district after an election on the question approved by simple majorities of the electorate involved.

     (2)  The alteration of the district boundary may be initiated in the same manner as the creation of the district, except the applicable resolutions, hearings, and procedures must be adopted and conducted by the county park district commission and not by the county governing body. If the alteration is proposed by petition, the petition must be signed by 15% of the electorate in the territory to be annexed or withdrawn from the district and certified as sufficient by the county clerk.

     (3)  (a) In the case of annexation, the vote on the question requires the separate majorities of the electorate of the territory to be annexed and the electorate of the then constituted district.

     (b)  In the case of withdrawal of territory, only the electorate of the territory to be withdrawn may vote on the question.

     (4)  A change in the boundaries of a district is effective on January 1 of the year following the tax election authorizing the change in boundaries."



     Section 59.  Section 7-16-2443, MCA, is amended to read:

     "7-16-2443.  Effect of dissolution. (1) If dissolution of a county park district is authorized by a majority of the electorate of the district, the county governing body shall order the dissolution and file the order with the county clerk. The dissolution is effective upon the earlier of the following:

     (a)  6 months after the date of filing of the order; or

     (b)  certification by the members of the county park commission that all debts and obligations of the district have been paid, discharged, or irrevocably settled.

     (2)  If debts or obligations of the district remain unsatisfied after the dissolution of the district, the county governing body shall, for as long as necessary, levy a property tax, in an amount not to exceed the voted maximum levy authorized by the district, on all taxable property that is in the territory formerly comprising the district, to be used to discharge the debts of the former district. If the electors of the district lowered the maximum amount to be levied for the operation of the district within 2 calendar years prior to the election authorizing the dissolution, the county governing body is authorized to levy a property tax not to exceed the maximum levy authorized prior to the reduction of the maximum levy for the discharge of the district's obligations.

     (3)  Any assets of the district remaining after all debts and obligations have been discharged become the property of the county."



     Section 60.  Section 7-22-2222, MCA, is amended to read:

     "7-22-2222.  Mill levy authorized. To administer and implement a rodent abatement program, the governing body may subject to Article VIII, section 17, of the Montana constitution, levy a tax, not to exceed 2 mills, on the taxable value of the horticultural, farming, grazing, forest, and railroad lands within the district. The proceeds of the levy are to be placed in the district fund."



     Section 61.  Section 7-22-2443, MCA, is amended to read:

     "7-22-2443.  Decision on petition for annexation. (1) Except as provided in subsection (2), if, upon the hearing provided for in 7-22-2442, the commissioners believe it to be to in the best interests of the area and those resident therein that such the area be annexed to the district, they shall, by an order duly made and entered on their minutes, declare submit the question of annexation of the area in question to be annexed to the district, and such annexed area shall thenceforth be considered a part of such district for all purposes as originally included therein the qualified electors of the area proposed for annexation at a tax election.

     (2)  (a) If 51% or more of the qualified electors or of the property owners in the area proposed to be annexed to the district file their objections to the creation of such a district, the commissioners shall may not act on such petition submit the question to a vote.

     (b)  If as a result of objections filed the commissioners in their discretion determine the question in doubt whether or not the annexation of the area is to the best interest of the area and of the residents therein, the commissioners may cause the issue to be decided by referendum at the next regular election."



     Section 62.  Section 7-32-235, MCA, is amended to read:

     "7-32-235.  Search and rescue units authorized -- under control of county sheriff -- optional funding. (1) A county may establish or recognize one or more search and rescue units within the county.

     (2)  Except in time of martial rule as provided in 10-1-106, search and rescue units and their officers are under the operational control and supervision of the county sheriff, or the sheriff's designee, having jurisdiction and whose span of control would be considered within reasonable limits.

     (3)  A county may, after approval by a majority of the people voting on the question at an a tax election held throughout the county, levy an annual tax of not more than 1 mill on each dollar of taxable value of all taxable property within the county to support one or more search and rescue units established or recognized under subsection (1). The election must be held in conjunction with a regular or primary election."



     Section 63.  Section 7-34-102, MCA, is amended to read:

     "7-34-102.  Special mill levy permitted. (1) In Subject to Article VIII, section 17, of the Montana constitution and in addition to all other levies authorized by law, each county, city, or town may levy an annual tax up to 1 mill on the dollar of the taxable value of all taxable property within the county, city, or town to defray the costs incurred in providing ambulance service.

     (2)  In addition to the levy authorized by subsection (1), a county, city, or town may levy an additional 2 mills for the support of ambulance services if, at a regularly scheduled tax election, the electorate of the county, city, or town approves the imposition of the additional levy."



     Section 64.  Section 7-34-2114, MCA, is amended to read:

     "7-34-2114.  Procedure upon favorable vote. (1) In Subject to Article VIII, section 17, in the event that a majority of the votes cast are in favor of the creation and establishment of said a hospital district, the board of county commissioners shall, within 10 days after the election, certify such the result by resolution and proceed with the organization of such the district as specified in this part.

     (2)  After 20 days from the passage of such the resolution, the validity of the creation of such the hospital district and the regularity of all proceedings preliminary thereto shall to the creation may not be questioned or asserted in any legal action."



     Section 65.  Section 7-34-2135, MCA, is amended to read:

     "7-34-2135.  Election required to impose special additional mill levy. (1) Before each additional levy provided for in 7-34-2134 may be made, the question shall must be submitted to a vote of the people at the next primary tax election held in an even-numbered year or on the next regular school election day held in accordance with 20-3-304 or by mail ballot election as provided by Title 13, chapter 19, in the following form:

SHALL THE HOSPITAL DISTRICT TAX BE INCREASED ANNUALLY BY (specify amount of annual increase when in full effect) IN THE FOLLOWING MANNER?

     "Shall there be an additional levy of (specify number) mills upon the taxable property of the (specify hospital district) for 2 years necessary to raise the sum of (specify the approximate amount to be raised by the additional tax levy) for the purpose of (specify purpose for which the additional levy is made)?

     [] FOR an additional levy to raise the sum of (state the approximate amount to be raised by the additional tax levy), and being (give number) mills.

     [] AGAINST an additional tax levy to raise the sum of (state the approximate amount to be raised by the additional tax levy), and being (give number) mills."

     (2)  Notice of the election, clearly stating the amount and the purpose of the additional levy, must be given and the election held and conducted and the returns made in all respects in the manner prescribed by law with regard to the submission of questions to the electors under the general election laws."



     Section 66.  Section 7-35-2122, MCA, is amended to read:

     "7-35-2122.  County tax levy. The Subject to Article VIII, section 17, of the Montana constitution, the board of county commissioners must shall, annually at the time of levying county taxes, fix and levy upon all property within the cemetery district an amount sufficient to raise the amount certified by the board of cemetery trustees to be raised by a tax on the property of the district. The tax may not exceed 4 mills on each dollar of taxable valuation on the property of the district."



     Section 67.  Section 13-1-101, MCA, is amended to read:

     "13-1-101.  Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:

     (1)  "Active elector" means a qualified elector whose name is on the active list.

     (2)  "Active list" means a list of active electors maintained by an election administrator pursuant to 13-2-219.

     (3)  "Anything of value" means any goods that have a certain utility to the recipient that is real and that is ordinarily not given away free but is purchased.

     (4)  "Application for voter registration" means a completed voter registration card submitted to the election administrator and subject to confirmation, as provided in 13-2-207.

     (5)  "Candidate" means:

     (a)  an individual who has filed a declaration or petition for nomination, acceptance of nomination or appointment as a candidate for public office as required by law;

     (b)  for the purposes of chapters 35, 36, or 37, an individual who has solicited or received and retained contributions, made expenditures, or given consent to an individual, organization, political party, or committee to solicit or receive and retain contributions or make expenditures on the individual's behalf to secure nomination or election to any office at any time, whether or not the office for which the individual will seek nomination or election is known when the:

     (i)  solicitation is made;

     (ii) contribution is received and retained; or

     (iii) expenditure is made; and

     (c)  an officeholder who is the subject of a recall election.

     (6)  (a) "Contribution" means:

     (i)  an advance, gift, loan, conveyance, deposit, payment, or distribution of money or anything of value to influence an election;

     (ii) a transfer of funds between political committees;

     (iii) the payment by a person other than a candidate or political committee of compensation for the personal services of another person that are rendered to a candidate or political committee.

     (b)  "Contribution" does not mean:

     (i)  services provided without compensation by individuals volunteering a portion or all of their time on behalf of a candidate or political committee or meals and lodging provided by individuals in their private residence for a candidate or other individual;

     (ii) the cost of any bona fide news story, commentary, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication of general circulation;

     (iii) the cost of any communication by any membership organization or corporation to its members or stockholders or employees, as long as the organization is not a primary political committee; or

     (iv) filing fees paid by the candidate.

     (7)  "Election" means a general, regular, special, tax, or primary election held pursuant to the requirements of state law, regardless of the time or purpose.

     (8)  "Election administrator" means the county clerk and recorder or the individual designated by a county governing body to be responsible for all election administration duties including tax elections,. except that with The school district clerk is the election administrator with regard to school elections other than tax elections, the term means the school district clerk.

     (9)  "Elector" means an individual qualified and registered to vote under state law.

     (10) (a) "Expenditure" means a purchase, payment, distribution, loan, advance, promise, pledge, or gift of money or anything of value made for the purpose of influencing the results of an election.

     (b)  "Expenditure" does not mean:

     (i)  services, food, or lodging provided in a manner that they are not contributions under subsection (6);

     (ii) payments by a candidate for a filing fee or for personal travel expenses, food, clothing, lodging, or personal necessities for the candidate and the candidate's family;

     (iii) the cost of any bona fide news story, commentary, or editorial distributed through the facilities of any broadcasting station, newspaper, magazine, or other periodical publication of general circulation; or

     (iv) the cost of any communication by any membership organization or corporation to its members or stockholders or employees, as long as the organization is not a primary political committee.

     (11) "Federal election" means a general election in which an elector may vote for individuals for the office of president of the United States or for the United States congress.

     (12) "General election" or "regular election" means an election held for the election of public officers throughout the state at times specified by law, including elections for officers of political subdivisions when the time of the election is set on the same date for all similar political subdivisions in the state. For ballot issues, other than tax measures, required by Article III, section 6, or Article XIV, section 8, of the Montana constitution to be submitted by the legislature to the electors at a general election, "general election" means an election held at the time provided in 13-1-104(1). For ballot issues required by Article XIV, section 9, of the Montana constitution to be submitted as a constitutional initiative at a regular election, regular election means an election held at the time provided in 13-1-104(1). For tax measures required by Article VIII, section 17, of the Montana constitution to be submitted at a primary election or general election, "primary election" means an election held at the time provided in 13-1-107 in even-numbered years, and "general election" means an election held at a time provided in 13-1-104. There may be only one tax election for a governmental unit in a year.

     (13) "Inactive elector" means a qualified elector who is placed on an inactive list.

     (14) "Inactive list" means a list of inactive electors maintained by an election administrator pursuant to 13-2-219.

     (15) "Individual" means a human being.

     (16) "Issue" or "ballot issue" means a proposal submitted to the people at an election for their approval or rejection, including but not limited to initiatives, referenda, proposed constitutional amendments, recall questions, school levy questions, bond issue questions, or a ballot question. For the purposes of chapters 35, 36, or 37, an issue becomes a "ballot issue" upon certification by the proper official that the legal procedure necessary for its qualification and placement upon the ballot has been completed, except that a statewide issue becomes an "issue" upon approval by the secretary of state of the form of the petition or referral.

     (17) "Person" means an individual, corporation, association, firm, partnership, cooperative, committee, club, union, or other organization or group of individuals or a candidate as defined in subsection (5).

     (18) "Political committee" means a combination of two or more individuals or a person other than an individual who makes a contribution or expenditure:

     (a)  to support or oppose a candidate or a committee organized to support or oppose a candidate or a petition for nomination; or

     (b)  to support or oppose a ballot issue or a committee organized to support or oppose a ballot issue; or

     (c)  as an earmarked contribution.

     (19) "Political subdivision" means a county, consolidated municipal-county government, municipality, special district, or any other unit of government, except school districts, having authority to hold an election for officers or on a ballot issue.

     (20) "Primary" or "primary election" means an election held throughout the state to nominate candidates for public office at times specified by law, including nominations of candidates for offices of political subdivisions when the time for nominations is set on the same date for all similar subdivisions in the state.

     (21) "Public office" means a state, county, municipal, school, or other district office that is filled by the people at an election.

     (22) "Registrar" means the county election administrator and any regularly appointed deputy or assistant election administrator.

     (23) "Special election" means an election other than a statutorily scheduled primary or general election held at any time for any purpose provided by law. It may be held in conjunction with a statutorily scheduled election.

     (24) "Voting machine or device" means any equipment used to record, tabulate, or in any manner process the vote of an elector."



     Section 68.  Section 13-1-104, MCA, is amended to read:

     "13-1-104.  Times for holding general elections. (1) A general election shall must be held throughout the state in every even-numbered year on the first Tuesday after the first Monday of November to vote on ballot issues, other than tax measures, required by Article III, section 6, or Article XIV, section 8, of the Montana constitution to be submitted by the legislature to the electors at a general election, unless an earlier date is provided in a law authorizing a special election on an initiative or referendum pursuant to Article III, section 6, and to elect federal officers, state or multicounty district officers, members of the legislature, judges of the district court, and county officers when the terms of such the offices will expire before the next scheduled election for the offices or when one of the offices must be filled for an unexpired term as provided by law. A tax measure must be submitted to the electorate at a tax election held in conjunction with a primary or general election.

     (2)  A general election shall must be held throughout the state in every odd-numbered year on the first Tuesday after the first Monday in November to elect municipal officers, officers of political subdivisions wholly within one county and not required to hold annual elections, and any other officers specified by law for election in odd-numbered years when the term for the offices will expire before the next scheduled election for the offices or when one of the offices must be filled for an unexpired term as provided by law.

     (3)  The general election for any political subdivision, other than a municipality, required to hold elections annually shall must be held on school election day, the first Tuesday of April second Friday in March of each year, and is subject to the election procedures provided for in 13-1-401.

     (4)  The general election for a municipality required to hold elections annually may be held either on school the election day as provided in subsection (3) or on the first Tuesday after the first Monday in November, at the discretion of the governing body."



     Section 69.  Section 13-1-107, MCA, is amended to read:

     "13-1-107.  Times for holding primary elections. (1) On the first Tuesday after the first Monday in June March preceding the general election provided for in 13-1-104(1), a primary election shall must be held throughout the state.

     (2)  On the Tuesday following the second Monday second Friday in September March preceding the general election provided for in 13-1-104(2), a primary election, if required, shall must be held throughout the state.

     (3)  If the general election for a municipality required to hold annual elections is held in November, as provided in 13-1-104(4), a primary election, if required, shall must be held on the Tuesday following the second Monday second Friday in September March. In an even-numbered year, the cost of this election must be paid by the municipality."



     Section 70.  Section 13-1-301, MCA, is amended to read:

     "13-1-301.  Election administrator. (1) The county clerk and recorder of each county is the election administrator unless the governing body of the county designates another official or appoints an election administrator.

     (2)  The election administrator is responsible for the administration of all procedures relating to registration of electors and conduct of elections and shall keep all records relating to elector registration and elections.

     (3)  The election administrator may appoint a deputy election administrator for each political subdivision required to hold annual elections under the provisions of 13-1-104(3). Each Except as provided in subsection (4), each election administrator or deputy election administrator is responsible for the conduct of the annual elections of such a political subdivision, as provided by 13-1-401.

     (4)  A deputy election administrator may not be appointed for a tax election.

     (5)  A governmental unit referring a tax measure to the electors shall conform to the ballot submission and ballot certification requirements imposed by the election administrator."



     Section 71.  Section 13-1-302, MCA, is amended to read:

     "13-1-302.  Election costs. (1) Unless specifically provided otherwise, all costs of the regularly scheduled primary and general elections shall must be paid by the counties and other political subdivisions for which the elections are held. Each political subdivision shall bear its proportionate share of the costs as determined by the county governing body.

     (2)  A political subdivision holding an annual election with a regularly scheduled school election shall bear its proportionate share of the costs as determined by the county election administrator and the school district election administrator.

     (3)  The political subdivision for which a special election is held shall bear all costs of the election, or its proportionate share as determined by the county governing body if held in conjunction with any other election.

     (4)  Costs Subject to subsection (8), costs of elections may not include the services of the election administrator or capital expenditures.

     (5)  The county governing body shall set a schedule of fees for services provided to school districts by the election administrator.

     (6)  Election costs shall must be paid from county funds, and any shares paid by other political subdivisions shall must be credited to the fund from which the costs were paid.

     (7)  The proportionate costs referred to in subsection (1) of this section shall must be only those additional costs incurred as a result of the political subdivision holding its election in conjunction with the primary or general election.

     (8)  For a tax election, each taxing jurisdiction bears the costs of its election."



     Section 72.  Section 13-1-401, MCA, is amended to read:

     "13-1-401.  Manner of conducting general elections for political subdivisions required to hold annual elections. (1) (a) Any political subdivision required to hold annual elections under 13-1-104(3) may shall cooperate with school districts having similar district boundaries to hold the election at the same location. The election administrator or deputy election administrator appointed under the provisions of 13-1-301 shall cooperate with the school district election administrator to share costs, as provided in 13-1-302.

     (b) A political subdivision holding a tax election shall cooperate with the state, school districts, and other political subdivisions to hold elections at the same location and to share costs, as provided in 13-1-302.

     (2)  A political subdivision subject to 13-1-104(3) may, with the consent of the election administrator or deputy election administrator, conduct its annual election at an annual meeting of the political subdivision or at another convenient location within the political subdivision.

     (3)  A political subdivision election subject to 13-1-104(3) or a tax election may be conducted by mail ballot as provided in Title 13, chapter 19.

     (4)  The election administrator or deputy election administrator conducting an election under the provisions of subsection (1), (2), or (3) shall give notice of the election not less than 20 days or more than 40 days before the day of the election by display advertisement at least two times in a newspaper of general circulation within the political subdivision. The election administrator or deputy election administrator may notify the public of the election by additional posting of notices or radio and television announcements."



     Section 73.  Section 13-2-122, MCA, is amended to read:

     "13-2-122.  Charges for registers, elector lists, and mailing labels made available to public. (1) Except as provided in subsections (2) and (3), upon written request, the registrar shall furnish to any elector, for noncommercial use, a copy of the official precinct registers, a current list of registered electors, or mailing labels for registered electors. Upon delivery, the registrar may collect a charge not to exceed the actual established copying cost of the register, list, or mailing labels.

     (2)  If the registrar receives in writing from a law enforcement officer or reserve officer, as defined in 7-32-201, a request that, for security reasons, the officer's and the officer's spouse's residential address, if the same as the officer's, not be disclosed, the registrar may not include the address on any register, list, or mailing labels disseminated pursuant to subsection (1).

     (3)  An election administrator may not include an individual's residential address on any register, list, or mailing labels but shall list only the name or names if the individual requests that the individual's address not be used and the individual proves to the election administrator those matters described in 13-2-115(6)(a)(i) or (6)(a)(ii)."



     Section 74.  Section 13-10-202, MCA, is amended to read:

     "13-10-202.  Filing fees. Filing fees are as follows:

     (1)  for offices having an annual salary of $2,500 or less and candidates for the legislature, $15;

     (2)  for county offices having an annual salary of more than $2,500, 0.5% of the total annual salary for calendar year 1998;

     (3)  for other offices having an annual salary of more than $2,500, 1% of the total annual salary for calendar year 1998;

     (4)  for offices in which compensation is paid in fees, $10;

     (5)  for officers of political parties, presidential electors, and officers who receive no salary or fees, no filing fee is required."



     Section 75.  Section 13-13-230, MCA, is amended to read:

     "13-13-230.  Authorization to increase county mill levy. Each county may, if authorized at a tax election, levy an amount not exceeding 1 mill as may be necessary to finance the additional cost of administering a special absentee election board program pursuant to 13-13-225 through 13-13-229. Such The mill levy may not be included as part of any existing mill levy or special mill levy assessed by the county. The amount of any mill levy adopted under this section must be reasonably related to the actual cost of providing services as required by 13-13-225 through 13-13-229."



     Section 76.  Section 13-19-306, MCA, is amended to read:

     "13-19-306.  Returning marked ballots -- when -- where. (1) After complying with 13-19-301, an elector or his the elector's designee may return his the elector's ballot on or before election day by either:

     (a)  depositing the return/verification return, verification envelope in the United States mail, with sufficient postage affixed; or

     (b)  returning it to any place of deposit designated by the election administrator pursuant to 13-19-307; or

     (c) for a tax election, returning the ballot to the polling place.

     (2)  In order to have his the ballot counted, each elector must shall return it in such a manner that it is received prior to 8 p.m. on election day."



     Section 77.  Section 13-27-310, MCA, is amended to read:

     "13-27-310.  Transmittal of issues referred by the legislature and ballot forms to the attorney general. (1) The secretary of state shall transmit a copy of the form in which a ballot issue proposed by petition will appear on the ballot to the attorney general on the same day the completed petition is certified to the governor.

     (2)  The secretary of state shall transmit a copy of an act referred to the people, other than a tax measure, or a constitutional amendment proposed by the legislature and a copy of the form in which the issue will appear on the ballot to the attorney general no later than 6 months before the election at which the issue will be voted on by the people. The secretary of state shall transmit a copy of a tax measure referred to the people and a copy of the form in which the issue will appear on the ballot to the attorney general as soon as possible after receipt.

     (3)  If the ballot form is not approved by the attorney general pursuant to 13-27-313, the secretary of state shall immediately submit a new ballot form to the attorney general."



     Section 78.  Section 13-27-312, MCA, is amended to read:

     "13-27-312.  Review of petition by attorney general -- preparation of statements -- fiscal note. (1) Upon receipt of a petition from the office of the secretary of state pursuant to 13-27-202, the attorney general shall examine the petition as to form and, if the proposed ballot issue has an effect on the revenues, expenditures, or the fiscal liability of the state, shall order a fiscal note incorporating an estimate of such the effect, the substance of which must substantially comply with the provisions of 5-4-205. The budget director, in cooperation with the agency or agencies affected by the petition, is responsible for preparing the fiscal note and shall return it within 6 days unless the attorney general, for good cause shown, extends the time for completing the fiscal note. The form of a petition for a tax measure must conform to the requirements of Article VIII, section 17, of the Montana constitution.

     (2)  If the petition form is approved, the attorney general shall endeavor to seek out parties on both sides of the issue and obtain their advice. The attorney general shall prepare:

     (a)  a statement, not to exceed 100 words, explaining the purpose of the measure; and

     (b)  statements, not to exceed 25 words each, explaining the implications of a vote for and a vote against the measure.

     (3)  The attorney general shall prepare a fiscal statement of no more than 50 words if a fiscal note was prepared for the proposed ballot issue,. such The statement to must be used on the petition and ballot if the measure is placed on the ballot.

     (4)  The statement of purpose and the statements of implication must express the true and impartial explanation of the proposed ballot issue in plain, easily understood language and may not be arguments or written so as to create prejudice for or against the measure. Statements of implication for tax measures must conform to the requirements of Article VIII, section 17, of the Montana constitution.

     (5)  The statement of purpose, unless altered by a court under 13-27-316, is the petition title for the measure circulated by the petition and the ballot title if the measure is placed on the ballot.

     (6)  The statements of implication shall must be placed beside the diagram provided for marking of the ballot in a manner similar to but not limited to the following example:

     [] FOR extending the right to vote to persons 18 years of age

     [] AGAINST extending the right to vote to persons 18 years of age

     (7)  If the petition is rejected as to form, the attorney general shall forward his the attorney general's comments to the secretary of state within 21 days after receipt of the petition by the attorney general. If the petition is approved as to form, the attorney general shall forward the statement of purpose, the statements of implication, and the fiscal statement, if applicable, to the secretary of state within 21 days after receipt of the petition by the attorney general."



     Section 79.  Section 13-27-313, MCA, is amended to read:

     "13-27-313.  Review of ballot forms by attorney general. (1) The Except as provided in subsection (2), the attorney general shall examine each ballot form submitted to his the attorney general's office pursuant to 13-27-310 and within 20 days of receipt of the ballot form shall notify the secretary of state of his the approval or rejection of the ballot form. If the ballot form is rejected, the attorney general shall approve or reject a new ballot form submitted by the secretary of state pursuant to 13-27-310(3) within 5 days of receiving the new form.

     (2) The attorney general shall examine the ballot form of tax referendums submitted for review pursuant to 13-27-310 and notify the secretary of state of approval or rejection of the ballot form as soon as possible after receipt."



     Section 80.  Section 13-27-315, MCA, is amended to read:

     "13-27-315.  Statements by attorney general on issues referred by legislature. (1) Upon receipt of a copy of a ballot form under 13-27-310(2) for an issue proposed by the legislature, the attorney general shall order a fiscal note as provided in 13-27-312(1) if the issue has an effect on the revenues, expenditures, or the fiscal liability of the state. At the same time the explanatory statement is prepared under subsection (2), the attorney general shall prepare a fiscal statement of no more than 50 words to be forwarded to the secretary of state at the same time as the explanatory statement.

     (2)  At the same time the attorney general, pursuant to 13-27-313, informs the secretary of state of the approval or rejection of a ballot form for an issue proposed by the legislature, the attorney general shall forward to the secretary of state a statement, not exceeding 100 words, expressing a true and impartial explanation of the purpose of the measure in plain, easily understood language. The statement may not be an argument and may not be written to create a prejudice for or against the issue. The statement prepared under this section is known as the attorney general's explanatory statement.

     (3)  If statements of the implication of a vote for or against a ballot issue have not been provided by the legislature, the attorney general shall prepare the statements. Requirements for statements of implication for ballot issues referred by the legislature are the same as those provided in 13-27-312 for other ballot issues, including the requirements for tax measures as provided in Article VIII, section 17, of the Montana constitution. Statements of implication prepared by the attorney general must be returned to the secretary of state no later than the time specified for approval of the ballot form."



     Section 81.  Section 13-27-401, MCA, is amended to read:

     "13-27-401.  Voter information pamphlet. (1) The secretary of state shall prepare for printing a voter information pamphlet containing the following information for each ballot issue to be voted on at an election, as applicable:

     (a)  ballot title, fiscal statement if applicable, and complete text of the issue;

     (b)  the form in which the issue will appear on the ballot;

     (c)  except for tax measures, arguments advocating approval and rejection of the issue; and

     (d)  except for tax measures, rebuttal arguments.

     (2)  The pamphlet must also contain a notice advising the recipient where additional copies of the pamphlet may be obtained.

     (3)  Whenever more than one ballot issue is to be voted on at a single election, the secretary of state may publish a single pamphlet for all of the ballot issues. The secretary of state may arrange the information in the order which seems most appropriate, but the information for all issues in the pamphlet must be presented in the same order.

     (4)  The secretary of state may prescribe by rule the format and manner of submission of the arguments concerning the ballot issue."



     Section 82.  Section 13-27-402, MCA, is amended to read:

     "13-27-402.  Committees to prepare arguments for and against ballot issues. (1) The arguments advocating approval or rejection of the ballot issue and rebuttal arguments for issues other than tax measures, must be submitted to the secretary of state by committees appointed as provided in this section.

     (2)  The committees must be composed of:

     (a) one senator known to favor the measure, appointed by the president of the senate;

     (b)  one representative known to favor the measure, appointed by the speaker of the house of representatives; and

     (c)  one individual who need not be a member of the legislature, appointed by the first two members from:

     (i)  the committee advocating approval of an act referred to the people or of a constitutional amendment proposed by the legislature; or

     (ii) the committee advocating approval of an act referred to the people by referendum petition.

     (3)  (a) The committee advocating rejection of an act referred to the people or of a constitutional amendment proposed by the legislature must be composed of:

     (i)  one senator appointed by the president of the senate;

     (ii) one representative appointed by the speaker of the house of representatives; and

     (iii) one individual who need not be a member of the legislature, appointed by the first two members.

     (b)  Whenever possible, the members must be known to have opposed the issue.

     (4)  The following must be three-member committees and must be appointed by the person submitting the petition to the secretary of state under the provisions of 13-27-202:

     (a)  the committee advocating approval of a ballot issue proposed by any type of initiative petition; and

     (b)  the committee advocating rejection of any ballot issue that is a legislative act referred to the people by referendum petition.

     (5)  A committee advocating rejection of a ballot issue proposed by any type of initiative petition must be composed of five members. The governor, attorney general, president of the senate, and speaker of the house of representatives shall each appoint one member, and the fifth member must be appointed by the first four members. All members must be known to favor rejection of the issue.

     (6)  A person may not be required to serve on any committee under this section, and the person making an appointment must have written acceptance of appointment from the appointee. If an appointment is not made by the required time, the committee members that have been appointed may fill the vacancy by unanimous written consent up until the deadline for filing the arguments.

     (7) Arguments advocating approval or rejection of a ballot issue and rebuttal arguments are not required for tax measures subject to Article VIII, section 17, of the Montana constitution."



     Section 83.  Section 13-27-403, MCA, is amended to read:

     "13-27-403.  Appointment to committee. (1) Except as provided in 13-27-402 and subsection (2) of this section, appointments to committees advocating approval or rejection of an act referred to the people, a constitutional amendment proposed by the legislature, or a ballot measure referred to the people by referendum petition or proposed by any type of initiative petition must be made no later than 1 week prior to the deadline for filing arguments on the ballot issue under 13-27-406.

     (2)  Appointments to committees advocating approval or rejection of a ballot measure referred to the people by referendum petition or proposed by any type of initiative petition must be made no later than 1 week before the deadline for filing arguments on the ballot issue under 13-27-406. All persons responsible for appointing members to the committee shall submit to the secretary of state the names and addresses of the appointees no later than the date set by this subsection. The submission must include the written acceptance of appointment from each appointee required by section 13-27-402(6). If an appointment is not made by the required time, the committee members that have been appointed may fill the vacancy by unanimous written consent up until the deadline for filing the arguments.

     (3)  Within 5 days after receiving notice under subsection (2), but not later than 5 days after the deadline set for appointment of committee members, the secretary of state shall notify the appointees to a committee appointed pursuant to subsection (1) or (2) by certified mail, with return receipt requested, of the deadlines for submission of the committee's arguments."



     Section 84.  Section 13-27-410, MCA, is amended to read:

     "13-27-410.  Printing and distribution of voter information pamphlet. (1) The Except as provided in subsection (6), the secretary of state shall arrange with the department of administration by requisition for the printing and delivery of a voter information pamphlet for all ballot issues to be submitted to the people at least 110 days before the election at which they will be submitted. The requisition must include a delivery list providing for shipment of the required number of pamphlets to each county and to the secretary of state.

     (2)  The secretary of state shall estimate the number of copies necessary to furnish one copy to each voter in each county, except that two or more voters with the same mailing address and the same last name may be counted as one voter. The secretary of state shall provide for an extra supply of the pamphlets in determining the number of voter pamphlets to be ordered in the requisition.

     (3)  The department of administration shall call for bids and contract with the lowest bidder for the printing and delivery of the voter information pamphlet. The contract must require completion of printing and shipment, as specified on the delivery list, of the voter information pamphlets by not later than 45 days before the election at which the ballot issues will be voted on by the people.

     (4)  The county official responsible for voter registration in each county shall mail one copy of the voter information pamphlet to each registered voter in the county, except that two or more voters with the same mailing address and the same last name may be counted as one voter. The mailing must take place no later than 2 weeks before the election.

     (5)  Ten copies of the voter information pamphlet must be available at each precinct for use by any voter wishing to read the explanatory information and complete text before voting on the ballot issues.

     (6) The secretary of state may contract directly for the voter information pamphlet for a tax election as an exigent purchase. The voter information pamphlet for a tax election must be prepared and sent to voters as soon as is practicable."



     Section 85.  Section 15-1-402, MCA, is amended to read:

     "15-1-402.  Payment of taxes under protest. (1) The person upon whom a property tax or fee is being imposed under this title may, before the property tax or fee becomes delinquent, pay under written protest that portion of the property tax or fee protested. The protested payment must:

     (a)  be made to the officer designated and authorized to collect it;

     (b)  specify the grounds of protest; and

     (c)  not exceed the difference between the payment for the immediately preceding tax year and the amount owing in the tax year protested unless a different amount results from the specified grounds of protest, which may include but are not limited to changes in assessment due to reappraisal under 15-7-111.

     (2)  A person appealing a property tax or fee pursuant to chapter 2 or 15 shall pay the tax or fee under protest when due in order to receive a refund. If the tax or fee is not paid under protest when due, the appeal may continue but a tax or fee may not be refunded as a result of the appeal.

     (3)  If a protested property tax or fee is payable in installments, a subsequent installment portion considered unlawful by the state tax appeal board need not be paid and an action or suit need not be commenced to recover the subsequent installment. The determination of the action or suit commenced to recover the first installment portion paid under protest determines the right of the party paying the subsequent installment to have it or any part of it refunded to the party or the right of the taxing authority to collect a subsequent installment not paid by the taxpayer plus interest from the date the subsequent installment was due.

     (4)  All property taxes and fees paid under protest to a county or municipality must be deposited by the treasurer of the county or municipality to the credit of a special fund to be designated as a protest fund and must be retained in the protest fund until the final determination of any action or suit to recover the taxes and fees unless they are released at the request of the county, municipality, or other local taxing jurisdiction pursuant to subsection (5). This section does not prohibit the investment of the money of this fund in the state unified investment program or in any manner provided in Title 7, chapter 6. The provision creating the special protest fund does not apply to any payments made under protest directly to the state.

     (5)  The governing board of a taxing jurisdiction affected by the payment of taxes under protest in the second and subsequent years that a tax protest remains unresolved may demand that the treasurer of the county or municipality pay the requesting taxing jurisdiction all or a portion of the protest payments to which it is entitled, except the amount paid by the taxpayer in the first year of the protest. The decision in a previous year of a taxing jurisdiction to leave protested taxes in the protest fund does not preclude it from demanding in a subsequent year any or all of the payments to which it is entitled, except the first-year protest amount.

     (6)  (a) If action before the county tax appeal board, state tax appeal board, or district court is not commenced within the time specified or if the action is commenced and finally determined in favor of the department of revenue, county, municipality, or treasurer of the county or the municipality, the amount of the protested portions of the property tax or fee must be taken from the protest fund and deposited to the credit of the fund or funds to which the property tax belongs, less a pro rata deduction for the costs of administration of the protest fund and related expenses charged the local government units.

     (b)  If the action is finally determined adversely to the department of revenue, a county, a municipality, or the treasurer of a county or a municipality, then the treasurer shall, upon receiving a certified copy of the final judgment in the action from the state tax appeal board or from the district or supreme court, as appropriate, if the final action of the state tax appeal board is appealed in the time prescribed, refund to the person in whose favor the judgment is rendered the amount of the protested portions of the property tax or fee deposited in the protest fund, and not released pursuant to subsection (5), as the person holding the judgment is entitled to recover, together with interest from the date of payment under protest, at the greater of:

     (i)  the rate of interest generated from the pooled investment fund provided for in 17-6-203 for the applicable period; or

     (ii) 6% a year.

     (c)  If the amount retained in the protest fund is insufficient to pay all sums due the taxpayer, the treasurer shall apply the available amount first to tax repayment, then interest owed, and lastly to costs.

     (d)  If the protest action is decided adversely to a taxing jurisdiction and the amount retained in the protest fund is insufficient to refund the tax payments and costs to which the taxpayer is entitled and for which local government units are responsible, the treasurer shall bill and the taxing jurisdiction shall refund to the treasurer that portion of the taxpayer refund, including tax payments and costs, for which the taxing jurisdiction is proratably responsible.

     (e)  In satisfying the requirements of subsection (6)(d), the taxing jurisdiction is allowed not more than 1 year from the beginning of the fiscal year following a final resolution of the protest. The taxpayer is entitled to interest on the unpaid balance at the greater of the rates referred to in subsections (6)(b)(i) and (6)(b)(ii) from the date of payment under protest until the date of final resolution of the protest and at the combined rate of the federal reserve discount rate quoted from the federal reserve bank in New York, New York, on the date of final resolution, plus four percentage points, from the date of final resolution of the protest until refund is made.

     (7)  A taxing jurisdiction may satisfy the requirements of this section by use of funds from one or more of the following sources:

     (a)  imposition of a property tax to be collected by a special tax protest refund levy;

     (b)  the general fund, except that amount generated by the all-purpose mill levy, or any other funds legally available to the governing body; and

     (c)  proceeds from the sale of bonds issued by a county, city, or school district for the purpose of deriving revenue for the repayment of tax protests lost by the taxing jurisdiction. The governing body of a county, city, or school district is authorized to issue the bonds pursuant to procedures established by law. The bonds may not be issued without being submitted to an election. Property taxes may be levied to amortize the bonds."



     Section 86.  Section 15-10-412, MCA, is amended to read:

     "15-10-412.  Property tax limit -- exception. Section 15-10-402 is implemented as follows:

     (1)    The limitation on the amount of taxes levied means that, except as otherwise provided in this section, the total amount of taxes levied by each taxing unit is capped at the dollar amount levied actually collected in each taxing unit for the 1996 preceding tax year, except in a taxing unit that levied a tax in tax years 1993 through 1995 but did not levy a tax in 1996, in which case the taxes levied are capped at the dollar amount due in that taxing unit for the 1995 tax year.

     (2)  The limitation on the amount of taxes levied does not prohibit an increase in the total taxes levied by a taxing unit as a result of:

     (a)  annexation of real property and improvements into a taxing unit upon the approval of the appropriate electors;

     (b)  construction, expansion, or remodeling of improvements; or

     (c)  transfer of property into a taxing unit;

     (d)  subdivision of real property;

     (e)  reclassification of property;

     (f)  increases in the amount of production or the value of production for property described in 15-6-131 or 15-6-132;

     (g)  transfer of property from tax-exempt to taxable status; or

     (h)  revaluations caused by expansion, addition, replacement, or remodeling of improvements.

     (3)  The limitation on the amount of taxes levied does not prohibit an increase in the total taxes levied by a taxing unit in order to compensate the taxing unit for any loss in the total amount of nonlevy revenue received in 1996 from taxes imposed under Title 15, chapter 23, part 7, and Title 15, chapter 36, part 3.

     (4)  The limitation on the amount of taxes, as clarified in this section, is intended to leave the property appraisal and valuation methodologies of the department of revenue intact. Determinations of county classifications, salaries of local government officers, and all other matters in which total taxable valuation is an integral component are not affected by 15-10-401 and 15-10-402.

     (5)  (a)  Except as provided in subsection (5)(d), if a taxing unit's taxable valuation decreases from the 1996 tax year, it may levy additional mills to compensate for the decreased taxable valuation, but the mills levied may not exceed a number calculated to equal the revenue from property taxes for the 1996 tax year in that taxing unit.

     (b)  If a levy authorized under Title 20 raised less revenue in 1996 than was raised in either 1994 or 1995, the taxing unit may, after approval by the voters in the taxing unit, raise each year thereafter an additional number of mills but may not levy more revenue than the 3-year average of revenue raised for that purpose during 1994, 1995, and 1996.

     (c)  If a levy authorized in 50-2-111 that was made in 1996 was for less than the number of mills levied in either 1994 or 1995, the taxing unit may, after approval after approval of a new tax or tax increase by the voters in the taxing unit, levy each year thereafter an additional number of mills but may not levy more than the 3-year average number of mills levied for that purpose during 1994, 1995, and 1996.

     (d)  If a taxing unit's taxable valuation decreases by more than 5% in any year, it may levy additional mills by following either procedure provided for in subsection (7)(a).

     (6)(4)  The limitation on the amount of taxes levied does not apply to the following levy or special assessment categories, whether or not they are based on commitments made before or after approval of 15-10-401 and 15-10-402:

     (a)  rural improvement districts;

     (b)  special improvement districts;

     (c)  levies pledged for the repayment of bonded indebtedness, including tax increment bonds;

     (d)  city street maintenance districts;

     (e)  tax increment financing districts;

     (f)  satisfaction of judgments against a taxing unit;

     (g)  street lighting assessments;

     (h)  revolving funds to support any categories specified in this subsection (6);

     (i)  levies for economic development authorized pursuant to 90-5-112(4);

     (j)  levies authorized under 7-6-502 for juvenile detention programs;

     (k)  levies authorized under 76-15-531 and 76-15-532 for conservation district special administrative assessments;

     (l)  elementary and high school districts; and

     (m)  voted poor fund levies authorized under 53-2-322 authorized by the electors of a governmental unit.

     (7)  (a)  The limitation on the amount of taxes levied does not apply in a taxing unit if the voters in the taxing unit approve an increase in tax liability:

     (i) following a resolution of the governing body of the taxing unit containing:

     (A)  a finding that there are insufficient funds to adequately operate the taxing unit as a result of 15-10-401 and 15-10-402;

     (B)  an explanation of the nature of the financial emergency;

     (C)  an estimate of the amount of funding shortfall expected by the taxing unit;

     (D)  a statement that applicable fund balances are or by the end of the fiscal year will be depleted;

     (E)  a finding that there are no alternative sources of revenue;

     (F)  a summary of the alternatives that the governing body of the taxing unit has considered; and

     (G)  a statement of the need for the increased revenue and how it will be used; or

     (ii) by a vote pursuant to this subsection (7)(a)(ii). The approval or rejection of a levy that does not follow the procedure in subsection (7)(a)(i) is decided in the following manner:

     (A)  determine the total number of qualified electors of the taxing unit from the list of electors supplied by the county registrar for the election;

     (B)  determine the total number of qualified electors who voted at the taxing unit election from the tally sheets for the election; and

     (C)  calculate the percentage of qualified electors voting at the election by dividing the number determined in subsection (7)(a)(ii)(A) by the number determined in subsection (7)(a)(ii)(B).

     (b)  When the calculated percentage in subsection (7)(a)(ii)(C) is 40% or more, the levy is considered to have been approved and adopted if a majority of the votes are cast in favor of the proposition, otherwise it is considered to have been rejected.

     (c)  The election provisions of this section do not apply to school levy elections.

     (8) (a) The limitation on the amount of taxes levied does not apply to levies required to address the funding of relief of suffering of inhabitants caused by famine, conflagration, or other public calamity.

     (b)  The limitation set forth in this chapter on the amount of taxes levied does not apply to levies to support:

     (i)  a city-county board of health as provided in Title 50, chapter 2, if the governing bodies of the taxing units served by the board of health determine, after a public hearing, that public health programs require funds to ensure the public health. A levy for the support of a local board of health may not exceed the 5-mill limit established in 50-2-111.

     (ii) county, city, or town ambulance services authorized by a vote of the electorate under 7-34-102(2);

     (iii) a hospital district, as provided in Title 7, chapter 34, part 21, if authorized by the electorate of the district. A levy for the support of the hospital district may not exceed the 3-mill levy limit authorized in 7-34-2133 unless a voted special levy is authorized under 7-34-2134.

     (iv) a rail authority, as provided in Title 7, chapter 14, part 16, authorized by a board of county commissioners. A levy for the support of a rail authority may not exceed the 6-mill limit established in 7-14-1632.

     (9) The limitation on the amount of taxes levied by a taxing jurisdiction subject to a statutory maximum mill levy does not prevent a taxing jurisdiction from increasing its number of mills beyond the statutory maximum mill levy to produce revenue equal to its 1996 revenue.

     (10) The limitation on the amount of taxes levied does not apply to a levy increase to repay taxes paid under protest in accordance with 15-1-402.

     (11) A taxing jurisdiction that included special improvement district revolving fund levies in the limitation on the amount of taxes levied prior to April 22, 1993, may continue to include the amount of the levies within the dollar amount due in each taxing unit for the 1986 tax year even if the necessity for the revolving fund has diminished and the levy authority has been transferred."



     Section 87.  Section 15-36-323, MCA, is amended to read:

     "15-36-323.  Calculation of unit value. For the purposes of distribution of oil and natural gas production taxes to county and school taxing units for production from pre-1985 wells, the department shall determine the unit value of oil and natural gas for each taxing unit as follows:

     (1)  Subject to the conditions of subsection (3), the unit value for oil for each taxing unit is the quotient obtained by dividing the net proceeds taxes calculated on oil produced and sold in that taxing unit in calendar year 1988 by the number of barrels of oil produced in that taxing unit during 1988, excluding post-1985 wells.

     (2)  Subject to the conditions of subsection (3), the unit value for natural gas is the quotient obtained by dividing the net proceeds taxes calculated on natural gas produced and sold in that taxing unit in calendar year 1988 by the number of cubic feet of natural gas produced in that taxing unit during 1988, excluding post-1985 wells.

     (3)  The amount of net proceeds taxes calculated under subsections (1) and (2) may not include the amount of taxes that are attributable to a voted levy, as described in 15-10-412(7), for which additional mills were levied in fiscal year 1990."



     Section 88.  Section 17-5-1001, MCA, is amended to read:

     "17-5-1001.  Action to restrain bond issues. (1) No An action may not be brought for the purpose of restraining the issuance and sale of bonds or other obligations by the state of Montana or for the purpose of restraining the levy and collection of taxes for the payment of such bonds or other obligations after the expiration of 60 days from the date of the election on such the bonds or obligations on account of any defect, irregularity, or informality in giving notice of or in holding the election. or, if no Subject to Article VIII, section 17, of the Montana constitution, if an election was not held thereon on the question of authorizing the bonds or other obligations, an action may not be brought after the expiration of 60 days from the date of the order, resolution, or ordinance authorizing the issuance thereof, on account of any defect, irregularity, or informality in giving notice of or in holding the election of the bonds or obligations. No A defense based upon any such defect, irregularity, or informality may not be interposed in any action unless brought within this period.

     (2)  This section applies but is not limited to any action or defense in which the issue is raised whether a voted debt or liability has carried by the required majority vote of the electors qualified and offering to vote thereon on the issue."



     Section 89.  Section 17-5-1105, MCA, is amended to read:

     "17-5-1105.  Applicability -- election -- rescission. (1)  Public obligations may be issued as certificated or uncertificated public obligations as provided in this part, notwithstanding provisions of law providing for issuance in other forms. Whenever bonds are issued under this part, the provisions of this part are alternative and supplemental to such other provisions.

     (2)  Nothing in this part limits or prevents the issuance of obligations in any other form or manner authorized by law.

     (3)  The provisions of this part may be applied to obligations that have previously been approved by vote, referendum, or hearing, authorizing or permitting the authorization of obligations in bearer and registered form or in bearer form only, and such the obligations need not be resubmitted for a further vote, referendum, or hearing for the purpose of authorizing or permitting the authorization of obligations in registered form only."



     Section 90.  Section 20-6-203, MCA, is amended to read:

     "20-6-203.  District consolidation. Any two or more elementary districts in one county may consolidate to organize an elementary district. The consolidation shall must be conducted under the following procedure:

     (1)  At the time the consolidation proposition is first considered, the districts involved shall jointly determine whether the consolidation shall be is made with or without the mutual assumption of the bonded indebtedness of each district by all districts included in the consolidation proposition.

     (2)  A consolidation proposition may be introduced, individually, in each of the districts by either of the two following methods:

     (a)  the trustees may pass a resolution requesting the county superintendent to order an election to consider a consolidation proposition involving their district; or

     (b)  not less than 20% of the electors of an elementary district who are qualified to vote under the provisions of 20-20-301 may petition the county superintendent requesting an election to consider a consolidation proposition involving their resident district.

     (3)  When the county superintendent has received a resolution or a valid petition from each of the districts included in the consolidation proposition, he the county superintendent shall, within 10 days after the receipt of the last resolution or petition and as provided by 20-20-201, order the trustees of each elementary district included in the consolidation proposition to call a consolidation election to be held in conjunction with a tax election. The tax election must also include ballot issues on all issues required by Article VIII, section 17, of the Montana constitution, to be submitted to the electors.

     (4)  Each district, individually, shall call and conduct an election in the manner prescribed in this title for school elections. In addition:

     (a)  if the districts to be consolidated are to mutually assume the bonded indebtedness of each district involved in the consolidation, the consolidation election also shall must follow the procedures prescribed in 20-6-206; or

     (b)  if the districts to be consolidated are not to mutually assume the bonded indebtedness of each district involved in the consolidation, the consolidation election also shall must follow the procedures prescribed in 20-6-207.

     (5)  After the county superintendent has received the election certification under the provisions of 20-20-416 from the trustees of each district included in a consolidation proposition, he the county superintendent shall determine if the consolidation proposition has been approved in each district. If each district has approved the consolidation proposition and all tax measures, he the county superintendent shall, within 10 days after the receipt of the last election certificate, order the consolidation of such the districts. If it be for the consolidation is with the mutual assumption of bonded indebtedness of each elementary district by all districts included in the consolidation order, such the order shall must specify that all the taxable real and personal property of the consolidated district shall assume the bonded indebtedness of each district. In addition, such the order shall must specify the number of the consolidated elementary district and shall must contain the county superintendent's appointment of the trustees for the consolidated district who shall serve until a successor is elected at the next succeeding regular school election and qualified. The superintendent shall send a copy of such the order to the board of county commissioners and to the trustees of each district incorporated in the consolidation order.

     (6)  If any district included in the consolidation proposition disapproves the consolidation proposition or any tax measure, the consolidation of all districts shall fail fails, and the county superintendent shall notify each district of the disapproval of the consolidation proposition."



     Section 91.  Section 20-6-205, MCA, is amended to read:

     "20-6-205.  Elementary district annexation. An elementary district may be annexed to another elementary district located in the same county when one of the conditions of 20-6-204 is met in accordance with the following procedure:

     (1)  At the time the annexation proposition is first considered, the districts involved shall jointly determine whether the annexation shall be is made with or without the joint assumption of the bonded indebtedness of the annexing district by the district to be annexed and the annexing district.

     (2)  An annexation proposition may be introduced in the district to be annexed by either of the two following methods:

     (a)  the trustees may pass a resolution requesting the county superintendent to order an election to consider an annexation proposition for their district; or

     (b)  not less than 20% of the electors of the district who are qualified to vote under the provisions of 20-20-301 may petition the county superintendent requesting an election to consider an annexation proposition for their district.

     (3)  Before ordering an election on the proposition, the county superintendent shall first receive from the trustees of the annexing district a resolution giving him the county superintendent the authority to annex such the district.

     (4)  When the county superintendent has received authorization from the annexing district, he the county superintendent shall, within 10 days after the receipt of the resolution or a valid petition from the district to be annexed and as provided by 20-20-201, order the trustees of the district to be annexed to call an annexation election to be held in conjunction with a tax election. The tax election must also include ballot issues on all issues required by Article VIII, section 17, of the Montana constitution, to be submitted to the electors.

     (5)  The district shall call and conduct an election in the manner prescribed in this title for school elections. In addition:

     (a)  if the district to be annexed is to jointly assume with the annexing district the bonded indebtedness of the annexing district, the annexation election shall must also follow the procedures prescribed in 20-6-206; or

     (b)  if the district to be annexed is not to jointly assume with the annexing district the bonded indebtedness of the annexing district, the annexation election shall must also follow the procedures prescribed in 20-6-207.

     (6)  After the county superintendent has received the election certificate from the trustees of the district conducting the annexation election under the provisions of 20-20-416 and if the annexation proposition has been approved by such at the election, he the county superintendent shall order the annexation of the territory of the elementary district voting on such the proposition to the elementary district that has authorized the annexation to its territory. Such The order shall must be issued within 10 days after the receipt of the election certificate and, if it be the election is for annexation with the assumption of bonded indebtedness, shall the order must specify that all the taxable real and personal property of the annexed territory shall must jointly assume with the annexing district the existing bonded indebtedness of the annexing district. The county superintendent shall send a copy of the order to the board of county commissioners and to the trustees of the districts involved in the annexation order.

     (7)  If the annexation proposition or any tax measure is disapproved in the district to be annexed, it shall fail fails and the county superintendent shall notify each district of the disapproval of the annexation proposition."



     Section 92.  Section 20-6-206, MCA, is amended to read:

     "20-6-206.  Consolidation or annexation election with assumption of bonded indebtedness. A consolidation election involving the mutual assumption of bonded indebtedness by the elementary districts to be consolidated, as prescribed in 20-6-203, or an annexation election involving the joint assumption of bonded indebtedness by the elementary district to be annexed, as prescribed in 20-6-205, shall must comply with the following procedures in addition to those prescribed by this title for other school elections:

     (1)  In a consolidation election the ballots shall must read, after stating the consolidation proposition, "FOR consolidation with assumption of bonded indebtedness" and "AGAINST consolidation with assumption of bonded indebtedness".

     (2)  In an annexation election the ballots shall must read, after stating the annexation proposition, "FOR annexation with assumption of bonded indebtedness" and "AGAINST annexation with assumption of bonded indebtedness".

     (3)  Any elector qualified to vote under the provisions of 20-20-301 may vote.

     (4)  When the trustees in each elementary district conducting an election canvass the vote under the provisions of 20-20-415, they shall decide, according to the following procedure, if the proposition has been approved:

     (a)  determine if a sufficient number of the qualified electors of the district have voted to validate the election and have voted to approve the election proposition in the same manner required for bond elections by 20-9-428; and

     (b)  when the proposition is approved under subsection (4)(a), determine the number of votes "FOR" and "AGAINST" the proposition.

     (5)  The proposition shall be is approved in the district if a majority of those voting approve the proposition and all tax measures required to be submitted because of the proposition. If the proposition is disapproved under either the provisions of subsection (4)(a) or (4)(b) or if a tax measure fails, the proposition shall be is disapproved in the district."



     Section 93.  Section 20-6-207, MCA, is amended to read:

     "20-6-207.  Consolidation or annexation election without assumption of bonded indebtedness. (1) A consolidation election without the assumption of bonded indebtedness by the elementary districts to be consolidated, as prescribed in 20-6-203, or an annexation election without the joint assumption of bonded indebtedness by the elementary district to be annexed, as prescribed in 20-6-205, shall must be conducted in the manner prescribed by this title for school elections. Any elector qualified to vote under the provisions of 20-20-301 may vote at the election.

     (2)  In a consolidation election the ballots shall must read, after stating the consolidation proposition, "FOR consolidation without assumption of bonded indebtedness" and "AGAINST consolidation without assumption of bonded indebtedness". The consolidation proposition shall must be approved by a district if a majority of those voting in a district approve the proposition and all required tax measures, otherwise it shall be is disapproved.

     (3)  In an annexation election the ballots shall must read, after stating the annexation proposition, "FOR annexation without assumption of bonded indebtedness" and "AGAINST annexation without assumption of bonded indebtedness". The annexation proposition shall must be approved by a district if a majority of those voting approve the proposition and all required tax measures, otherwise it shall be is disapproved."



     Section 94.  Section 20-6-213, MCA, is amended to read:

     "20-6-213.  Transfer of territory from one elementary district to another. (1) A majority of the registered electors of an elementary district who reside in territory that is a part of an elementary district may petition the county superintendent to transfer the territory in which they reside to another elementary district if:

     (a)  the territory to be transferred is contiguous to the district to which it is to be attached;

     (b)  the territory to be transferred is not located within 3 miles, over the shortest practical route, of an operating school of the district from which it is to be detached;

     (c)  the transfer of the territory will not reduce the taxable value of the district to less than $100,000 unless the remaining territory of the district will contain not less than 50,000 acres of nontaxable Indian land;

     (d)  the board of trustees of the school district that would receive the territory has approved the proposed transfer in writing; and

     (e)  the territory proposed to be transferred to another elementary district has not been included in a petition filed under this section in the previous 3 years.

     (2)  The petition must be addressed to the county superintendent and must:

     (a)  provide a legal description of the territory that is requested to be transferred and a description of the elementary district to which it is to be transferred;

     (b)  state the reasons why the transfer is requested;

     (c)  state the number of elementary school-age children residing in the territory; and

     (d)  be accompanied by a $100 nonrefundable filing fee.

     (3)  A petition that meets the criteria specified in subsection (1) and that contains all the information required by subsection (2) is considered a valid petition. On receipt of a valid petition for a territory transfer, the county superintendent shall:

     (a)  file the petition;

     (b)  set a hearing place, date, and time for consideration of the petition that is not more than 40 days after receipt of the petition; and

     (c)  give notice of the place, date, and time of the hearing. The notices must be posted in the districts affected by the petition for the transfer of territory in the manner prescribed in this title for school elections, with at least one notice posted in the territory to be transferred. Notice must also be delivered to the board of trustees of the school district from which the territory is to be transferred.

     (4)  The county superintendent shall conduct the hearing as scheduled in accordance with the rules of procedure adopted by the superintendent of public instruction pursuant to 20-3-107(3), and any resident, taxpayer, or representative of the affected districts must, upon request, be heard.

     (5)  Within 30 days after the hearing, the county superintendent shall, after considering the testimony and exhibits presented at the hearing, issue findings of fact, conclusions of law, and an order. The county superintendent shall grant or deny the requested transfer of territory. The decision must be based on the effects that the transfer would have on those residing in the territory proposed for transfer as well as those residing in the remaining territory of the elementary district.

     (6)  The decision of the county superintendent is final 30 days after its date unless it is appealed to the district court by a resident, taxpayer, or representative of either elementary district affected by the petitioned territory transfer.

     (7)  Whenever a petition to transfer territory from one elementary district to another elementary district creates a joint elementary district or affects the boundary of an existing joint elementary district, the petition to transfer territory must be presented to the county superintendent of the county where the territory is located. The county superintendent shall notify any other county superintendents of counties with elementary districts affected by the petition, and the duties prescribed in this section for the county superintendent must be performed jointly. If the number of county superintendents involved is an even number, the county superintendents shall jointly appoint an additional county superintendent from an unaffected county to join them in conducting the hearing required in subsection (4) and issuing the decision required in subsection (5). The decision issued under subsection (5) must be made by a majority of the county superintendents submit the transfer and all required tax measures to the electors of the area proposed for transfer at the next tax election. If the transfer and all required tax measures are approved at the election, the county superintendent shall implement the transfer.

     (8)  A petition seeking to transfer elementary territory out of or into a K-12 district must be accompanied by a petition to transfer the same territory as high school territory in accordance with 20-6-320. In the case of a proposed transfer out of or into a K-12 district, an elementary petition that is not accompanied by the high school petition is invalid for the purpose of subsection (3)."



     Section 95.  Section 20-6-309, MCA, is amended to read:

     "20-6-309.  Procedure for organization of joint high school district. The high school district boundary changes permitted under 20-6-308 shall must be made according to the following procedure:

     (1)  A majority of the electors of a joint elementary district who are qualified to vote under the provisions of 20-20-301 and who reside in a county where the elementary school is not located may petition the county superintendent of their resident county to transfer the territory of the joint elementary district where they reside to establish a joint high school district. Such The petition also shall must state the reasons for requesting such a boundary change and the number of high school pupils residing in the territory.

     (2)  When the county superintendent receives a valid petition requesting the establishment of a joint high school district, he the county superintendent shall set a time, date, and place for a public hearing on the request which is not more than 40 days after the receipt of the petition. He shall give notice of such hearing in accordance with the election requirements for school election notices prescribed by school election provisions of this title. The county superintendent shall also notify the county superintendent of the county where the high school is located and the trustees of the high school district.

     (3)  The county superintendent shall hear the request to change the high school district boundaries at the place, time, and date set for the hearing, and any interested person may appear and be heard on the request. If the county superintendent deems it advisable and in the best interests of the residents of the territory to be transferred, he shall grant the petitioned request and order the change of high school boundaries to establish a joint high school district. Otherwise, he shall, by order, deny the request.

     (4)  If the county superintendent orders the establishment of a joint high school district, he shall immediately send the order to the county superintendent of the county where the high school is located. If the county superintendent of such county approves the order, he shall send such order to the trustees of the high school district. If the trustees approve the order, the boundary change shall become effective. Without the approval of such county superintendent and trustees, the boundary change shall fail.

     (5)  At any time within 30 days after the date of the county superintendent's order to grant or deny the request to establish a joint high school district, an appeal may be made to the board of county commissioners of the county in which the petition originated. The board of county commissioners shall conduct a hearing for the appeal, and their decision shall be final, subject to the approvals required by subsection (4) submit the transfer and all required tax measures to the electors of the area proposed for inclusion in the joint district at the next tax election. If the joint district and all required tax measures are approved at the election, the county superintendent shall implement the transfer."



     Section 96.  Section 20-6-315, MCA, is amended to read:

     "20-6-315.  District consolidation. Any two or more high school districts in one county may consolidate to organize a high school district. The consolidation must be conducted under the following procedure:

     (1)  At the time the consolidation proposition is first considered, the districts involved shall jointly determine whether the consolidation is to be made with or without the mutual assumption of the bonded indebtedness of each district by all districts included in the consolidation proposition.

     (2)  A consolidation proposition may be introduced, individually, in each of the districts by either of the following methods:

     (a)  the trustees may pass a resolution requesting the county superintendent to order an election to consider a consolidation proposition involving their district; or

     (b)  not less than 20% of the electors of a high school district who are qualified to vote under the provisions of 20-20-301 may petition the county superintendent requesting an election to consider a consolidation proposition involving their district.

     (3)  When the county superintendent receives a resolution or a valid petition from each of the districts included in the consolidation proposition, he the county superintendent shall, within 10 days after the receipt of the last resolution or petition and as provided by 20-20-201, order the trustees of each high school district included in the consolidation proposition to call a consolidation election to be held in conjunction with a tax election.

     (4)  (a) Each district, individually, shall call and conduct an election in the manner prescribed in this title for school elections.

     (b)  In addition:

     (i)  if the districts to be consolidated are to mutually assume the bonded indebtedness of each district involved in the consolidation, the consolidation election must also follow the procedures prescribed in 20-6-318; or

     (ii) if the districts to be consolidated are not to mutually assume the bonded indebtedness of each district involved in the consolidation, the consolidation election must also follow the procedures prescribed in 20-6-207.

     (5)  After the county superintendent receives the election certificate provided for in 20-20-416 from the trustees of each district included in a consolidation proposition, he the county superintendent shall determine if the consolidation proposition has been approved in each district. If each district has approved the consolidation proposition and all required tax measures, he the county superintendent shall, within 10 days after the receipt of the election certificate, order the consolidation of such the districts. If the order is for consolidation with the mutual assumption of bonded indebtedness of each high school district by all districts included in the consolidation order, the order shall must specify that all taxable real and personal property of the consolidated district shall assume assumes the bonded indebtedness of each district. In addition, the order shall must specify the number of the consolidated high school district. The superintendent shall send a copy of the order to the board of county commissioners and to the trustees of each district incorporated in the consolidation order.

     (6)  If any district included in the consolidation proposition disapproves the consolidation proposition or any required tax measure, the consolidation of all districts fails and the county superintendent shall notify each district of the disapproval of the consolidation proposition."



     Section 97.  Section 20-6-317, MCA, is amended to read:

     "20-6-317.  High school district annexation procedure. A high school district may be annexed to another high school district located in the same county when one of the conditions of 20-6-316 is met in accordance with the following procedure:

     (1)  At the time the annexation proposition is first considered, the districts involved shall jointly determine whether the annexation is to be made with or without the joint assumption of the bonded indebtedness of the annexing district by the district to be annexed and the annexing district.

     (2)  An annexation proposition may be introduced in the district to be annexed by either of the following methods:

     (a)  the trustees may pass a resolution requesting the county superintendent to order an election to consider an annexation proposition for their district; or

     (b)  not less than 20% of the electors of the district who are qualified to vote under the provisions of 20-20-301 may petition the county superintendent requesting an election to consider an annexation proposition for their district.

     (3)  Before ordering an election on the proposition, the county superintendent must receive from the trustees of the annexing district a resolution giving him the county superintendent the authority to annex such the district.

     (4)  When the county superintendent receives authorization from the annexing district, he the county superintendent shall, within 10 days after the receipt of the resolution or a valid petition from the district to be annexed and as provided by 20-20-201, order the trustees of the district to be annexed to call an annexation election to be held in conjunction with a tax election.

     (5)  (a) The district shall call and conduct an election in the manner prescribed in this title for school elections.

     (b)  In addition:

     (i)  if the district to be annexed is to jointly assume with the annexing district the bonded indebtedness of the annexing district, the annexation election must also follow the procedures prescribed in 20-6-318; or

     (ii) if the district to be annexed is not to jointly assume with the annexing district the bonded indebtedness of the annexing district, the annexation election must also follow the procedures prescribed in 20-6-319.

     (6)  After the county superintendent receives the election certificate provided for in 20-20-416 from the trustees of the district conducting the annexation election and if the annexation proposition and all required tax measures has been are approved by such at the election, he the county superintendent shall order the annexation of the territory of the high school district voting on such the proposition to the high school district that has authorized the annexation to its territory. The order must be issued within 10 days after the receipt of the election certificate and, if it is for the election approved annexation with the assumption of bonded indebtedness, the order must specify that all the taxable real and personal property of the annexed territory shall jointly assume with the annexing district the existing bonded indebtedness of the annexing district. The county superintendent shall send a copy of the order to the board of county commissioners and to the trustees of the districts involved in the annexation order.

     (7)  If the annexation proposition or any required tax measure is disapproved in the district to be annexed, it the annexation proposition fails and the county superintendent shall notify each district of the disapproval of the annexation proposition."



     Section 98.  Section 20-6-318, MCA, is amended to read:

     "20-6-318.  Consolidation or annexation election with assumption of bonded indebtedness. A consolidation election involving the mutual assumption of bonded indebtedness by the high school districts to be consolidated as prescribed in 20-6-315 or an annexation election involving the joint assumption of bonded indebtedness by the high school districts to be annexed as prescribed in 20-6-317 must comply with the following procedures in addition to those prescribed by this title for other school elections:

     (1)  In a consolidation election the ballots must read, after stating the consolidation proposition, "FOR consolidation with assumption of bonded indebtedness" and "AGAINST consolidation with assumption of bonded indebtedness".

     (2)  In an annexation election the ballots must read, after stating the annexation proposition, "FOR annexation with assumption of bonded indebtedness" and "AGAINST annexation with assumption of bonded indebtedness".

     (3)  Any elector qualified to vote under the provisions of 20-20-301 may vote.

     (4)  When the trustees in each high school district conducting an election canvass the vote under the provisions of 20-20-415, they shall decide according to the following procedure if the proposition has been approved:

     (a)  determine if a sufficient number of the qualified electors of the district voted to validate the election and voted to approve the election proposition in the manner required for bond elections by 20-9-428; and

     (b)  if the proposition is approved under subsection (4)(a), determine the number of votes "FOR" and "AGAINST" the proposition and all required tax measures. If the proposition and all required tax measures are approved, the proposition is approved in the district.

     (5)  If the proposition is disapproved under the provisions of subsection (4)(a) or if a required tax measure fails, the proposition is disapproved in the district."



     Section 99.  Section 20-6-319, MCA, is amended to read:

     "20-6-319.  Consolidation or annexation election without assumption of bonded indebtedness. (1) A consolidation election without the assumption of bonded indebtedness by the high school districts to be consolidated as prescribed in 20-6-315 or an annexation election without the joint assumption of bonded indebtedness by the high school district to be annexed as prescribed in 20-6-317 must be conducted in the manner prescribed by this title for school elections. Any elector qualified to vote under the provisions of 20-20-301 may vote at the election.

     (2)  In a consolidation election the ballots must read, after stating the consolidation proposition, "FOR consolidation without assumption of bonded indebtedness" and "AGAINST consolidation without assumption of bonded indebtedness". The consolidation proposition is approved by a district if a majority of those voting in a district approve the proposition; otherwise, it and all required tax measures. If the proposition or any required tax measure is disapproved, then the proposition is disapproved.

     (3)  In an annexation election the ballots must read, after stating the annexation proposition, "FOR annexation without assumption of bonded indebtedness" and "AGAINST annexation without assumption of bonded indebtedness". The annexation proposition is approved by a district if a majority of those voting approve the proposition; otherwise, it and all required tax measures. If the proposition or any required tax measure is disapproved, then the proposition is disapproved."



     Section 100.  Section 20-6-320, MCA, is amended to read:

     "20-6-320.  Transfer of territory from one high school district to another. (1) A majority of registered electors of a high school district who reside in territory that is a part of a high school district may petition the county superintendent to transfer the territory in which they reside to another high school district if:

     (a)  the territory to be transferred is contiguous to the high school district to which it is to be attached;

     (b)  the territory to be transferred is not located within 3 miles, over the shortest practical route, of an operating school of the high school district from which it is to be detached;

     (c)  the transfer of the territory will not reduce the taxable value of the district to less than $300,000 unless the remaining territory of the high school district contains not less than 50,000 acres of nontaxable Indian land;

     (d)  the board of trustees of the school district that would receive the territory has approved the proposed transfer in writing; and

     (e)  the territory proposed to be transferred to another high school district has not been included in a petition filed under this section in the previous 3 years.

     (2)  The petition must be addressed to the county superintendent and must:

     (a)  provide a legal description of the territory that is requested to be transferred and a description of the high school district to which it is to be transferred;

     (b)  state the reasons why the transfer is requested;

     (c)  state the number of high-school-age children residing in the territory; and

     (d)  be accompanied by a $100 nonrefundable filing fee.

     (3)  A petition that meets the criteria specified in subsection (1) and that contains all the information required by subsection (2) is a valid petition. On receipt of a valid petition for a territory transfer, the county superintendent shall:

     (a)  file the petition;

     (b)  set a hearing place, date, and time for consideration of the petition that is not more than 40 days after receipt of the petition; and

     (c)  give notice of the place, date, and time of the hearing. The notices must be posted in the high school districts affected by the petition for the territory transfer in the manner prescribed in this title for school elections, with at least one notice posted in the territory to be transferred. Notice must also be delivered to the board of trustees of the school district from which the territory is to be transferred.

     (4)  The county superintendent shall conduct the hearing as scheduled in accordance with the rules of procedure adopted by the superintendent of public instruction pursuant to 20-3-107(3), and any resident, taxpayer, or representative of either affected high school district must be heard.

     (5)  Within 30 days after the hearing, the county superintendent shall, after considering the testimony and exhibits presented at the hearing, issue findings of fact, conclusions of law, and an order. The county superintendent shall grant or deny the requested transfer of territory. The decision must be based on the effects that the transfer would have on those residing in the territory proposed for transfer as well as those residing in the remaining territory of the high school district.

     (6)  The decision of the county superintendent is final 30 days after its date unless it is appealed to the district court by a resident, taxpayer, or representative of either high school district affected by the petitioned territory transfer.

     (7)  If a petition to transfer territory from one high school district to another high school district would create a joint high school district or affect the boundary of any existing joint high school district, the petition must be presented to the county superintendent of the county where the territory proposed for transfer is located. The county superintendent shall notify any other county superintendents of counties with districts affected by the petition, and the duties prescribed in this section for the county superintendent must be performed jointly. If the number of county superintendents is an even number, the county superintendents shall jointly appoint a county superintendent from an unaffected county to join them in conducting the hearing required by subsection (4) and in issuing the decision required by subsection (5). The decision issued under subsection (5) must be made by a majority of the county superintendents. submit the transfer and all required tax measures to the electors of the area proposed for inclusion in the joint high school district at the next tax election. If the joint high school district and all required tax measures are approved at the election, the county superintendent shall implement the transfer.

     (8)(4)  A petition seeking to transfer high school territory out of or into a K-12 district must be accompanied by a petition to transfer the same territory as elementary territory in accordance with 20-6-213. In the case of a proposed transfer out of or into a K-12 district, a high school petition that is not accompanied by an elementary petition is invalid for the purpose of subsection (3)."



     Section 101.  Section 20-6-505, MCA, is amended to read:

     "20-6-505.  Opening a junior high school when high school district operates a county high school. (1) Whenever the trustees of an elementary district and a high school district operating a county high school have formed a joint board of trustees under the provisions of 20-3-361, such the joint board of trustees may open a junior high school under the provisions of this section.

     (2)  When the joint board of trustees resolves to open a junior high school, they shall order an election, held in conjunction with a tax election, under the provisions of 20-20-201 to submit a proposition to the electors of the district to approve or disapprove the trustees' resolution to open a junior high school and all required tax measures. The joint board of trustees shall call and conduct the election in the manner prescribed in this title for school elections and equally share the cost of the election. Any elector qualified to vote under the provisions of 20-20-301 may vote on the proposition. If a majority of the electors voting at the election approve the proposition and all required tax measures, the trustees shall apply to the superintendent of public instruction for approval to open a junior high school. If a majority of the electors voting at the election disapprove the proposition or any required tax measure, a junior high school shall may not be opened by the joint board of trustees.

     (3)  The application to the superintendent of public instruction for the approval to open a junior high school shall must be submitted by June 1 following the election approving the opening of the junior high school. The application shall must contain such the information as that is required under 20-6-503 for an application to open a high school.

     (4)  The superintendent of public instruction shall investigate the application for the opening of a junior high school and shall approve or disapprove the opening of the junior high school before the fourth Monday of June preceding the first year of intended operation. If the opening is approved, the joint board of trustees may open the junior high school.

     (5)  At any time the trustees of the elementary district and the trustees of the high school district shall cease to form a joint board of trustees under the provisions of 20-3-361, the junior high school shall must be closed and the districts shall assume the provision of an educational program for the junior high school pupils of their respective districts."



     Section 102.  Section 20-7-714, MCA, is amended to read:

     "20-7-714.  County adult literacy programs -- authorization to levy tax and establish fund. (1) (a) The governing body of a county may, in its discretion, subject to voter approval, establish a fund and levy up to 1 mill on each dollar of taxable property in the county for the support of county literacy programs that give first priority to providing direct instruction to adults. The tax levy is in addition to all other tax levies and is subject to limitations on property taxes set forth in 15-10-402.

     (b)  The fund may be used only for the support of adult literacy programs within the county.

     (2)  (a) If a county levies a property tax for adult literacy programs, the county governing body shall appoint a county adult literacy board to administer the expenditure of funds from the county adult literacy fund established in subsection (1).

     (b)  The county adult literacy board shall coordinate all adult literacy programs receiving county adult literacy funds. The board may adopt policies concerning program standards and financial accountability for organizations receiving adult literacy funds. The board may require that adult literacy programs match adult literacy funds with federal, state, or private money. The board may, with the concurrence of the appropriate county officials, arrange for county in-kind services to support adult literacy programs.

     (c)  County adult literacy funding may be expended only on literacy programs for persons who are 16 years of age or older and who are not regularly enrolled, full-time pupils for the purposes of ANB computation."



     Section 103.  Section 20-9-353, MCA, is amended to read:

     "20-9-353.  Additional financing budget authority for general fund -- election for authorization -- tax election to impose. (1) The trustees of a district may propose to adopt:

     (a)  a budget amount up to the BASE budget amount for the district general fund that is within the limitations and required budget increases provided in 20-9-308(2);

     (b)  an over-BASE budget amount for the district general fund that does not exceed the maximum general fund budget for the district or other limitations, as provided in 20-9-308(3); or

     (c)  a general fund budget amount in excess of the maximum general fund budget amount for the district, as provided in 20-9-308(4).

     (2)  When the trustees of a district determine that a voted amount of financing is required for the general fund budget, the trustees shall submit the proposition to finance adopt the additional voted amount of general fund financing budget authority to the electors who are qualified under 20-20-301 to vote upon the proposition at the next tax election. The special election must be called and conducted in the manner prescribed by this title for school elections. The ballot for the election must state the amount of money budget authority to be financed authorized, the approximate number of mills required to raise all or a portion of the money, and the purpose for which the money will be expended. The ballot must be in the following format:

PROPOSITION

     Shall the district be authorized to expend the sum of (state the additional amount to be expended), and being approximately (give number) mills, adopt a general fund budget that exceeds the nonvoted general fund amount by (state the additional budget amount) for the purpose of (insert the purpose for which the additional financing is made)?

     [] FOR budget authority and any levy.

     [] AGAINST budget authority and any levy.

     (3)  If the election on any additional financing budget authority for the general fund is approved by a majority vote of the electors voting at the election, the proposition carries and the trustees may use any portion or all of the authorized amount in adopting the final general fund budget. The trustees shall certify any additional levy amount the budget authority authorized by the special election on the budget form that is submitted to the county superintendent, and the county commissioners shall levy submit to the electors who are qualified to vote under 20-20-301 a proposition at the tax election on the authorized number of mills on the taxable value of all taxable property within the district, as prescribed in 20-9-141, to raise the amount of the additional levy. The tax election ballot must be in the following format:

                         PROPOSITION

     SHALL THE DISTRICT GENERAL FUND LEVY BE INCREASED ANNUALLY BY (state the number of mills) IN THE FOLLOWING MANNER?

     [] FOR increasing the district levy by (state the number of mills) to support the district's additional general fund budget amount.

     [] AGAINST increasing the district levy by (state the number of mills) to support the district's additional general fund budget amount.

     (4)  Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(4) is effective for only 1 school fiscal year.

     (5)  All levies adopted under this section must be authorized by a special election conducted before August 1 of the school fiscal year for which it is effective.

     (6)(5)  If the trustees of a district are required to submit a proposition to finance an increased amount up to the BASE budget amount, as provided in 20-9-308(2)(b), an increased over-BASE budget amount, as provided in 20-9-308(3)(a), or an amount in excess of the maximum general fund budget amount for the district as allowed by 20-9-308(4) to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4)."



     Section 104.  Section 20-9-421, MCA, is amended to read:

     "20-9-421.  Election to authorize the issuance of school district bonds and the methods of introduction. A school district shall may not issue bonds for any purpose other than that provided in 15-1-402 and 20-9-412 unless the issuance of bonds has been authorized by the qualified electors of the school district at an election called for the purpose of considering a proposition to issue such bonds. A school district bond election shall must be called by a resolution as prescribed under the provisions of 20-20-201 when:

     (1)  the trustees, of their own volition, adopt a resolution to that effect; or

     (2)  the trustees have received a petition which asks that an election be held to consider a bond proposition and which has been validated under the provisions of 20-9-425."



     Section 105.  Section 20-9-465, MCA, is amended to read:

     "20-9-465.  Action to restrain bond issue -- time for bringing. (1) No An action may not be brought for the purpose of restraining the issuance and sale of bonds or other obligations by any school district or for the purpose of restraining the levy and collection of taxes for the payment of such the bonds or other obligations after the expiration of 60 days from the date of the election on such the bonds or obligations on account of any defect, irregularity, or informality in giving notice or in holding the election. or, if no Subject to Article VIII, section 17, of the Montana constitution, if an election was not held thereon on the bonds, an action may not be brought after the expiration of 60 days from the date of the resolution authorizing the issuance thereof on account of any defect, irregularity, or informality in giving notice of or in holding the election; nor may any of the bonds. A defense based upon any such defect, irregularity, or informality may not be interposed in any action unless brought within this period.

     (2)  This section applies but is not limited to any action and defense in which the issue is raised whether a voted debt or liability has carried by the required majority vote of the electors qualified and offering to vote thereon on the issue."



     Section 106.  Section 20-9-471, MCA, is amended to read:

     "20-9-471.  Issuance of obligations -- authorization -- conditions. (1) The trustees of a school district may, without after a positive vote of the electors of the district as provided in subsection (4)(c), issue and sell to the board of investments obligations for the purpose of financing all or a portion of:

     (a)  the costs of vehicles and equipment;

     (b)  the costs associated with renovating, rehabilitating, and remodeling facilities, including but not limited to roof repairs, heating, plumbing, and electrical systems;

     (c)  any other expenditure that the district is otherwise authorized to make, subject to subsection (4), including the payment of settlements of legal claims and judgments; and

     (d)  the costs associated with the issuance and sale of the obligations.

     (2)  The term of the obligation, including an obligation for a qualified energy project, may not exceed 10 fiscal years. For the purposes of this subsection, a "qualified energy project" means a project designed to reduce energy use in a school facility and from which the resulting energy cost savings are projected to meet or exceed the debt service obligation for financing the project, as determined by the department of environmental quality.

     (3)  At the time of issuing the obligation, there must exist an amount in the budget for the current fiscal year available and sufficient to make the debt service payment on the obligation coming due in the current year. The budget for each following year in which any portion of the principal of and interest on the obligation is due must provide for payment of that principal and interest.

     (4)  Except as provided in 20-9-502 and 20-9-503, the proceeds of the obligation may not be used to acquire real property or construct a facility unless:

     (a)  the acquisition or construction project does not constitute more than 20% of the square footage of the existing real property improvements made to a facility containing classrooms;

     (b)  the 20% square footage limitation may not be exceeded within any 5-year period; and

     (c)  the electors of the district approve a proposition authorizing the trustees to apply for funds through the board of investments for the construction project. The proposition must be approved at a special or regular election in accordance with all of the requirements of 20-9-428, except that the proposition is considered to have passed if a majority of the qualified electors voting approve the proposition.

     (5)  An obligation issued is payable from any legally available fund of the district and constitutes a general obligation of the district.

     (6)  The obligation may bear interest at a fixed or variable rate and may be sold to the board of investments at par, at a discount, or with a premium and upon any other terms and conditions that the trustees determine to be in the best interests of the district.

     (7)  The principal amount of the obligation, when added to the outstanding bonded indebtedness of the district, may not exceed the debt limitation established in 20-9-406."



     Section 107.  Section 20-9-502, MCA, is amended to read:

     "20-9-502.  Purpose and authorization of a building reserve fund by an election. (1) The trustees of any district, with the approval of the qualified electors of the district at a tax election, may establish a building reserve for the purpose of raising money for the future construction, equipping, or enlarging of school buildings or for the purpose of purchasing land needed for school purposes in the district. In order to submit to the qualified electors of the district a building reserve proposition for the establishment of or addition to a building reserve, the trustees shall pass a resolution that specifies:

     (a)  the purpose or purposes for which the new or addition to the building reserve will be used;

     (b)  the duration of time over which the new or addition to the building reserve will be raised in annual, equal installments;

     (c)  the total amount of money that will be raised during the duration of time specified in subsection (1)(b); and

     (d)  any other requirements under 20-20-201 for the calling of an election.

     (2)  The total amount of building reserve when added to the outstanding indebtedness of the district may not be more than the limitations provided in 20-9-406. A building reserve tax authorization may not be for more than 20 years.

     (3)  The election must be conducted in accordance with the school election laws of this title, and the electors qualified to vote in the election must be qualified under the provisions of 20-20-301. The ballot for a building reserve proposition must be substantially in the following form:

OFFICIAL BALLOT

SCHOOL DISTRICT BUILDING RESERVE ELECTION

     INSTRUCTIONS TO VOTERS: Make an X or similar mark in the vacant square before the words "BUILDING RESERVE--YES" if you wish to vote for the establishment of a building reserve (addition to the building reserve); if you are opposed to the establishment of a building reserve (addition to the building reserve) make an X or similar mark in the square before the words "BUILDING RESERVE--NO".

SHALL THE PROPERTY TAX BE INCREASED ANNUALLY BY (insert amount of annual increase when in full effect), IN THE FOLLOWING MANNER?

     Shall the trustees be authorized to impose an additional levy each year for .... years to establish a building reserve (add to the building reserve) of this school district to raise a total amount of .... dollars ($....), for the purpose(s) .... (here state the purpose or purposes for which the building reserve will be used)?

     [] BUILDING RESERVE--YES.

     [] BUILDING RESERVE--NO.

     (4)  The building reserve proposition is approved if a majority of those electors voting at the election approve the establishment of or addition to the building reserve. The annual budgeting and taxation authority of the trustees for a building reserve is computed by dividing the total authorized amount by the specified number of years. The authority of the trustees to budget and impose the taxation for the annual amount to be raised for the building reserve lapses when, at a later time, a bond issue is approved by the qualified electors of the district for the same purpose or purposes for which the building reserve fund of the district was established. Whenever a subsequent bond issue is made for the same purpose or purposes of a building reserve, the money in the building reserve must be used for such the purpose or purposes for which the building reserve was established before any money realized by the bond issue is used."



     Section 108.  Section 20-9-705, MCA, is amended to read:

     "20-9-705.  Joint interstate school agreements. (1) The trustees of any district adjacent to another state may enter into a contract with a school district in such the adjoining state to provide for the joint erection, operation, and maintenance of school facilities for both districts upon such terms and conditions as may be mutually agreed to by such the districts and as that are in accord with this section. Any such contract proposed for adoption by the trustees shall must be in the form and contain only terms that may be prescribed by the superintendent of public instruction,. and any such The contract shall must be approved by the superintendent of public instruction before it is considered by the electors of the district.

     (2)  Before any contract negotiated under the provisions of this section shall may be executed, the trustees shall call an election under the provisions of 20-20-201 and submit to the qualified electors of the district the proposition that such the contract be approved and that the trustees execute such the contract. No An agreement shall be is not valid until it has been approved at an election. The electors at the election shall must be qualified to vote under the provisions of 20-20-301, and the election shall must be conducted under the school election provisions of this title. The ballot for the election shall must be substantially in the following form:

PROPOSITION

SCHOOL DISTRICT NO. ...., .... COUNTY

     Shall the trustees of this district be authorized and directed to execute the proposed contract with school district number .... of .... County, state of ...., for the purpose of (insert the purpose of such contract)?

     [] FOR execution of contract.

     [] AGAINST execution of contract.

     (3)  The Subject to Article VIII, section 17, of the Montana constitution, the trustees of any district executing a contract under this section shall have the power and authority to levy taxes and issue bonds for the purpose of erecting and maintaining the facilities authorized by this section. Furthermore, the facilities erected or maintained under this section may be located in either Montana or the adjoining state."



     Section 109.  Section 20-10-126, MCA, is amended to read:

     "20-10-126.  Establishment of transportation service areas. (1) The territory of a transportation service area is the territory of a school district unless the county transportation committee or the electorate, as appropriate, approves alternative boundaries after determining that the adjustments will improve pupil safety, transportation efficiency, or the cost-effectiveness of the pupil transportation system of the county.

     (2)  A district may not extend a bus route to transport pupils from outside its transportation service area unless the district has a written agreement with the district that the county transportation committee has assigned to transport the pupils.

     (3)  When the trustees of two or more districts enter into a written agreement to authorize transportation services among transportation service areas, a copy of the agreement must be submitted to the county superintendent and approved by the county transportation committee. Upon approval by the committee or the electorate, if a tax or fee is imposed or extended to the area to be served, the transportation agreements are valid for the current school year.

     (4)  The trustees of any district who object to a particular bus route or transportation service area to which the district has been assigned may request a transfer to another bus route or transportation service area. The Subject to any required tax election, the county transportation committee may transfer the territory of the district to an adjacent transportation service area or approved bus route with the consent of the district providing transportation in the adjacent transportation service area.

     (5)  The trustees of any district who object to a bus route operated by another district may bring that route to the attention of the county transportation committee. If the committee agrees that the district is operating a portion of its route as an unapproved route outside of its district boundaries, the committee shall file with the district a written warning concerning the unapproved route, and if the district, in spite of the warning, continues to operate the route, the committee may withdraw its approval of the entire route.

     (6)  If the qualified electors of the district object to the decision of the county transportation committee and the adjacent district is willing to provide school bus service, 20% of the qualified electors, as prescribed in 20-20-301, may petition the trustees to conduct an election on the proposition that the territory of the district be transferred for pupil transportation purposes to the adjacent transportation service area. If a satisfactory petition is presented to the trustees, the trustees shall call an election on the proposition in accordance with 20-20-201 for the next ensuing regular school election or tax day. The election must be conducted in accordance with the school election laws. If a majority of those voting at the election approve the transfer, the transfer is effective on July 1 of the ensuing school fiscal year.

     (7)  Unless a transfer of territory from one transportation service area or approved bus route to another area or bus route is approved by the superintendent of public instruction and the county transportation committee, the state transportation reimbursement is limited to the reimbursement amount for pupil transportation to the nearest operating public elementary school or public high school, whichever is appropriate for the affected pupils."



     Section 110.  Section 20-15-231, MCA, is amended to read:

     "20-15-231.  Annexation of territory of districts to community college district. (1) Whenever 10% of the registered electors of an elementary district or districts of a county that is contiguous to the existing community college district petition the board of trustees of a community college district for annexation of the territory encompassed in such elementary school districts, the board of trustees of the community college district may order an annexation election in the area defined by the petition. Such The election shall must be held on the next general or primary election day.

     (2)  (a) Prior to the election on the question of annexation, the trustees shall adopt a plan that includes:

     (i)  a schedule that provides for the orderly transition from the existing trustee representation to the representation required by 20-15-204, with such transition period not to exceed 3 years from the date of the election on the question of annexation;

     (ii) provisions relating to the assumption or nonassumption of existing community college district bonded indebtedness by the annexed area and provisions relating to the responsibilities of the annexed area for any bonded indebtedness if it withdraws from the district; and

     (iii) a procedure by means of which the electors of the annexed area may withdraw the annexed area from the community college district and the conditions of such withdrawal.

     (b)  The plan required by this subsection (2) may not be changed by the trustees without the approval of a majority of the electors of the annexed area voting on the question. The bonding provisions of the plan set forth pursuant to subsection (2)(a)(ii) may not be changed.

     (3)  The election shall must be conducted in the proposed area for annexation in accordance with the requirements of the community college organization election, except that the board of trustees of the community college shall perform the requirements of the board of regents and there shall may not be an election of the board of trustees of the community college.

     (4)  The proposition on the ballot shall must be as follows:

     Shall school districts .... be annexed to and become a part of the Community College District of ...., Montana?

     [] FOR annexation.

     [] AGAINST annexation.

     (5)  To carry, the proposals to annex must receive a majority of the total votes cast thereon on the issue. Upon receipt of the certified results of the election from the elementary districts encompassed in the proposed area to be annexed, the board of trustees of the community college district shall canvass the vote and declare the results of the election. If the annexation proposition carries and all required tax measures are approved, a certified copy of the canvassing resolution shall must be filed in the office of the county clerk and recorder of the county encompassing the area to be annexed and, upon such filing, the area to be annexed shall then become a part of the community college district."



     Section 111.  Section 20-15-241, MCA, is amended to read:

     "20-15-241.  Community college service regions -- creation. (1) The governing body of an elementary school district, high school district, county, or municipality not within a community college district may designate itself a community college service region as provided in this section.

     (2)  A service region may be designated only if, within 12 months preceding any designation, the following conditions are met:

     (a)  the service plan required by subsection (3) is available;

     (b)  the board of trustees of the community college district that will offer services within the region has approved the designation;

     (c)  the electors within the region have approved the designation by a majority of votes cast on the question in an election held on a general or primary election day and have approved all necessary tax measures; and

     (d)  the board of regents has approved the designation.

     (3)  (a) At least 90 days prior to the granting of any of the approvals listed in subsections (2)(b) through (d), a written plan must be made available which:

     (i)  details the services the community college district will offer within the region;

     (ii) details who will be eligible to use the services and the charges that will be made to users;

     (iii) indicates the facilities that will be used to house the services;

     (iv) lists the direct and indirect costs of the services and the apportionment of those costs between the community college district and the governing body designating the service region;

     (v)  estimates the number of persons expected to use the services within the region; and

     (vi) estimates the mill levy necessary to fund the service region.

     (b)  The plan may be revised jointly by the region governing body, board of regents, and the board of trustees of the community college district as such revision may be necessary.

     (4)  A designation is effective for 5 years and after 5 years is effective unless rescinded by a majority of electors casting votes on the question in an election held on any general or primary election day following expiration of the 5-year period. The question on rescission must be put on the ballot when requested at least 90 days prior to the election by the governing body designating the service region, by the community college board, or by a petition signed by 20% of the registered electors within the service region. The rescission is effective at the end of the first full academic year following the election rescinding the district designation."



     Section 112.  Section 20-15-305, MCA, is amended to read:

     "20-15-305.  Adult education tax levy. A community college shall be is considered a district for the purposes of adult education and under the provisions for adult education may if authorized by the electors, levy a 1-mill tax for the support of its adult education program when the superintendent of public instruction approves such the program."



     Section 113.  Section 20-15-311, MCA, is amended to read:

     "20-15-311.  Funding sources. The annual operating budget of a community college district shall must be financed from the following sources:

     (1)  the estimated revenues to be realized from student tuition and fees, except those related to community service courses as defined by the board of regents;

     (2)  subject to voter approval, a mandatory mill levy on the community college district;

     (3)  subject to voter approval, the 1-mill adult education levy authorized under provisions of 20-15-305;

     (4)  the state general fund appropriation;

     (5)  an optional voted levy on the community college district that shall must be submitted to the electorate in accordance with general school election laws;

     (6)  all other income, revenue, balances, or reserves not restricted by a source outside the community college district to a specific purpose;

     (7)  income, revenue, balances, or reserves restricted by a source outside the community college district to a specific purpose. Student fees paid for community service courses as defined by the board of regents shall be considered restricted to a specific purpose;

     (8)  income from a political subdivision that is designated a community college service region under 20-15-241."



     Section 114.  Section 20-15-313, MCA, is amended to read:

     "20-15-313.  Tax levy. On Subject to Article VIII, section 17, of the Montana constitution, on the second Monday in August, the board of county commissioners of any county where a community college district is located shall fix and levy a tax on all the real and personal property within the community college district at the rate required to finance the mandatory mill levy prescribed by subsection (1)(b) of 20-15-312 and the voted levy prescribed by subsection (5) of 20-15-311 if one has been approved by the voters. When a community college district has territory in more than one county, the board of county commissioners in each county shall fix and levy the community college district tax on all the real and personal property of the community college district situated in its county."



     Section 115.  Section 20-15-314, MCA, is amended to read:

     "20-15-314.  Tax levy for community college service region. A governing body designating a community college service region as provided in 20-15-241 may, if authorized by the electors, levy a tax on all real and personal property within the region at a rate required to finance the services offered by a community college district for the region. The levy is in addition to any other levies allowed by law and is not subject to any statutory or charter limitations on levies. The levy must be made at the same time and in the same manner as the general levy of the political subdivision designating the region is made, and the revenues generated thereby by the levy must be collected at the same time and in the same manner. Within 30 days of collection, the appropriate revenues must be transmitted to the participating community college district."



     Section 116.  Section 20-20-102, MCA, is amended to read:

     "20-20-102.  Precedence of school election provisions. Except as otherwise provided in this title, school elections shall must be conducted and canvassed and the results shall must be returned in the same manner as provided for general elections in Title 13. Should there be a conflict between the requirements of Title 13 and the provisions of this title regulating school elections, the provisions of this title shall govern. The superintendent of public instruction may make any necessary rules to clarify Title 13 provisions for use in school elections. The tax election for a school district must be held in conjunction with the tax election for the county in which the school district is located."



     Section 117.  Section 20-20-105, MCA, is amended to read:

     "20-20-105.  Regular school election day and special school elections. The first Tuesday of April after the first Monday of March of each year shall be is the regular school election day. Unless otherwise provided by law, special school elections may be conducted at such times as determined by the trustees."



     Section 118.  Section 20-20-106, MCA, is amended to read:

     "20-20-106.  Poll hours. (1) The polls for any school election in any district shall open not may not open later than noon. The trustees may order the polls to open earlier, but no earlier than 7 a.m.

     (2)  If the school election is held on the same day as an election held by a political subdivision under 13-1-104(3) and at the same polling place, the polls shall must be opened and closed at the times required for the school election.

     (3)  If the school election is held on the same day as a general, or primary, or tax election, the polls shall must be opened and closed at the times required for the general, or primary, or tax election.

     (4)  Once opened, the polls shall must be kept open continuously until 8 p.m., except that whenever all the registered electors at any poll have voted, the poll shall must be closed immediately."



     Section 119.  Section 20-20-108, MCA, is amended to read:

     "20-20-108.  Rescheduling of school election canceled due to declaration of state of emergency or disaster. If the governor declares a state of emergency or disaster under Title 10, chapter 3, a school election may be canceled by the county superintendent of schools or, in the absence of the county superintendent, by the state superintendent of public instruction. As Subject to restrictions for tax elections, as soon as convenient after the declaration of a state of emergency or disaster is terminated, the trustees of the district shall set a new date for the election. Notice of such the election shall must be published for 7 consecutive days in a newspaper of general circulation in the district and posted for 7 days at district polling places. Whenever the best interests of the district would be served, the trustees may give additional notice of the election through appropriate radio and television stations that serve the people of the district."



     Section 120.  Section 20-20-401, MCA, is amended to read:

     "20-20-401.  Trustees' election duties -- ballot certification. (1) The trustees are the general supervisors of school elections unless the trustees request and the county election administrator agrees to conduct a school election under 20-20-417.

     (2)  Not less than 15 days before an election, the clerk of the district shall prepare a certified list of the names of all candidates entitled to be on the ballot and the official wording for each ballot issue. The clerk shall arrange for printing the ballots. Ballots for absentee voting must be printed and available at least 11 days before the election as provided in 13-13-205, except as provided in 20-9-426(2) for a bond election not held in conjunction with a school election. Names of candidates on school election ballots need not be rotated.

     (3)  Before the opening of the polls, the trustees shall cause each polling place to be supplied with the ballots and supplies necessary to conduct the election."



     Section 121.  Section 20-20-417, MCA, is amended to read:

     "20-20-417.  Request for county election administrator to conduct election. (1) By June 1 of each year, the trustees of any district may request the county election administrator to conduct certain school elections during the ensuing school fiscal year. The county election administrator shall conduct the tax election in each year.

     (2)  Whenever the county election administrator agrees or is required to conduct a school election, he the county election administrator shall:

     (a)  perform the duties imposed on the trustees and the clerk of the district for school elections in 20-20-203, 20-20-313, and 20-20-401;

     (b)  conduct the election in accordance with the provisions of Title 13, chapters 13 and 15; and

     (c)  deliver to the trustees, for the purpose of canvassing the vote, the certified tally sheets and other items as provided in 13-15-301.

     (3)  Whenever the trustees request the county election administrator to conduct a school election or when the county election administrator is required to conduct the tax election for a school district, the school district shall pay the costs of the election as provided in 13-1-302."



     Section 122.  Section 22-1-303, MCA, is amended to read:

     "22-1-303.  Creation of public library. A public library may be established in any county or city in any of the following ways:

     (1)  The governing body of any county or city desiring to establish and maintain a public library may pass and enter upon its minutes a resolution to the effect that a free public library is established under the provision of Montana laws relating to public libraries.

     (2)  A public library may be established by a petition that is signed by not less than 10% of the resident taxpayers whose names appear upon the last completed assessment roll of the city or county and that is filed with the governing body requesting the establishment of a public library. The governing body of a city or county shall set a time of meeting at which it may by resolution establish a public library. The governing body shall give notice of the contemplated action in a newspaper of general circulation for 2 consecutive weeks giving the date and place of the meeting at which the contemplated action is proposed to be taken.

     (3)  (a) Upon a petition being filed with the governing body and signed by not less than 5% of the resident taxpayers of any city or county requesting an election, the governing body shall submit to a vote of the qualified electors at the next general election the question of whether a free public library is to be established.

     (b)  If a petition is submitted for a city, the petition must be signed by resident taxpayers of the city.

     (c)  If a petition is submitted to the county commissioners of a county asking for the establishment of a county library, the petition must be signed by resident taxpayers of the county who reside outside the corporate limits of an incorporated city that is located in the county and that may already have established a free public library for the city.

     (d)  If the petition specifically asks that a special election be called and the petition is signed by 35% of the resident freeholders affected by the petition, then the governing body shall, upon receipt of the petition, immediately set a date for a special election. The special election must be held in conjunction with a regular or primary election.

     (e)  If at the election a majority of the electors voting on the question vote in favor of the establishment of a library and all required tax measures, the governing body shall immediately take the necessary steps to establish and maintain the library or to contract with any city or county for library service to be rendered to the inhabitants of the city or county."



     Section 123.  Section 22-1-304, MCA, is amended to read:

     "22-1-304.  Tax levy -- special library fund -- bonds. (1) The governing body of any city or county which that has established a public library may, if authorized by the electorate, levy in the same manner and at the same time as other taxes are levied a special tax in the amount necessary to maintain adequate public library service, not to exceed 5 mills on the dollar, upon all property in such the county which that may be levied by the governing body of such the county and not to exceed 7 mills on the dollar upon all property in such the city which that may be levied by the governing body of such the city.

     (2)  (a) The governing body of any city or county may by resolution submit the question of exceeding the maximum tax levy provided in subsection (1) to a vote of the qualified electors thereof at the next general tax election. Such The resolution must be adopted at least 75 days prior to the general tax election at which the question will be voted on.

     (b)  Upon petition being filed with the governing body and signed by not less than 5% of the resident taxpayers of any city or county requesting an election for the purpose of exceeding the maximum mill levy, the governing body shall submit to a vote of the qualified electors thereof at the next general tax election the question of exceeding the maximum mill levy. Such The petition must be delivered to the governing body at least 90 days prior to the general election at which the question will be voted on.

     (c)  The question shall must be submitted by ballots that conform to the requirements for tax elections and upon which the words "FOR exceeding the ... mill maximum levy and authorizing an additional ... mill(s) for the library" and "AGAINST exceeding the ... mill maximum library levy" shall must appear, with a square before each proposition and a direction to insert an "X" mark in the square before one or the other of the propositions.

     (d)  The votes cast for the adoption or rejection of the question must be canvassed, and:

     (i)  if a majority of the voters voting on the question vote to exceed the maximum mill levy, the governing body shall levy the additional tax for the year in which the vote was taken; or

     (ii) if a majority of the voters voting on the question vote to not exceed the maximum mill levy, the maximum mill levy may not be exceeded.

     (3)  The municipal tax authorized in this section is in addition to all other taxes authorized by law and is not within the all-purpose mill levy established by 7-6-4451 through 7-6-4453.

     (4)  The proceeds of such the tax shall constitute a separate fund called the public library fund and shall may not be used for any purpose except those of the public library.

     (5)  No money shall Money may not be paid out of the public library fund by the treasurer of the city or county except by order or warrant of the board of library trustees.

     (6)  Bonds may be issued by the governing body in the manner prescribed by law for the erection and equipment of public library buildings and the purchase of land therefor for the buildings."



     Section 124.  Section 39-71-403, MCA, is amended to read:

     "39-71-403.  Plan three exclusive for state agencies -- election of plan by other public corporations -- financing of self-insurance fund. (1) If a state agency is the employer, the terms, conditions, and provisions of compensation plan No. 3, state fund, are exclusive, compulsory, and obligatory upon both employer and employee. Any sums necessary to be paid under the provisions of this chapter by any state agency are considered to be ordinary and necessary expense of the agency. The agency shall make appropriation of and pay the sums into the state fund at the time and in the manner provided for in this chapter, notwithstanding that the state agency may have failed to anticipate the ordinary and necessary expense in any budget, estimate of expenses, appropriations, ordinances, or otherwise.

     (2)  A public corporation, other than a state agency, may elect coverage under compensation plan No. 1, plan No. 2, or plan No. 3, separately or jointly with any other public corporation other than a state agency. A public corporation electing compensation plan No. 1 may purchase reinsurance or issue bonds or notes pursuant to subsection (3)(b). A public corporation electing compensation plan No. 1 is subject to the same provisions as a private employer electing compensation plan No. 1.

     (3)  (a) A public corporation, other than a state agency, that elects plan No. 1 may establish a fund sufficient to pay the compensation and benefits provided for in this chapter and chapter 72 and to discharge all liabilities that reasonably incur during the fiscal year for which the election is effective. Proceeds from the fund must be used only to pay claims covered by this chapter and chapter 72 and for actual and necessary expenses required for the efficient administration of the fund, including debt service on any bonds and notes issued pursuant to subsection (3)(b).

     (b)  (i) A public corporation, other than a state agency, separately or jointly with another public corporation, other than a state agency, may issue and sell its bonds and notes for the purpose of establishing, in whole or in part, the self-insurance workers' compensation fund provided for in subsection (3)(a) and to pay the costs associated with the sale and issuance of the bonds. Bonds and notes may be issued in an amount not exceeding 3% of the taxable valuation of the public corporation as of the date of issue. The bonds and notes must be authorized by resolution of the governing body the electors who would be liable for principal and interest payments on the bonds of the public corporation and are payable from an annual property tax levied in the amount necessary to pay principal and interest on the bonds or notes. This authority to levy an annual property tax exists despite any provision of law or maximum levy limitation to the contrary. The revenues derived from the sale of the bonds and notes may not be used for any other purpose.

     (ii) The bonds and notes:

     (A)  may be sold at public or private sale;

     (B)  do not constitute debt within the meaning of any statutory debt limitation; and

     (C)  may contain other terms and provisions as the governing body determines.

     (iii) Two or more public corporations, other than state agencies, may agree to exercise their respective borrowing powers jointly under this subsection (3)(b) or may authorize a joint board to exercise the powers on their behalf.

     (iv) The fund established from the proceeds of bonds and notes issued and sold under this subsection (3)(b) may, if sufficient, be used in lieu of a surety bond, reinsurance, specific and aggregate excess insurance, or any other form of additional security necessary to demonstrate the public corporation's ability to discharge all liabilities as provided in subsection (3)(a). Subject to the 3% of taxable valuation limitation in subsection (3)(b)(i), a public corporation may issue bonds and notes to establish a fund sufficient to discharge liabilities for periods greater than 1 year.

     (4)  All money in the fund established under subsection (3)(a) not needed to meet immediate expenditures must be invested by the governing body of the public corporation or the joint board created by two or more public corporations as provided in subsection (3)(b)(iii), and all proceeds of the investment must be credited to the fund."



     Section 125.  Section 67-11-303, MCA, is amended to read:

     "67-11-303.  Bonds and obligations. (1) An authority may borrow money for any of its corporate purposes and issue its bonds for those purposes, including refunding bonds, in the form and upon the terms that it may determine, payable out of any revenue of the authority, including revenue derived from:

     (a)  an airport or air navigation facility or facilities;

     (b)  taxes levied pursuant to 67-11-301 or other law for airport purposes;

     (c)  grants or contributions from the federal government; or

     (d)  other sources.

     (2)  The bonds may be issued by resolution of the authority, without upon approval at an election and without any limitation of amount, except that bonds may not be issued at any time if the total amount of principal and interest to become due in any year on the bonds and on any then outstanding bonds for which revenue from the same source or sources are pledged exceeds the amount of revenue to be received in that year as estimated in the resolution authorizing the issuance of the bonds. The authority shall take all action necessary and possible to impose, maintain, and collect rates, charges, rentals, and taxes, if any are pledged, sufficient to make the revenue from the pledged source in the year at least equal to the amount of principal and interest due in that year.

     (3)  The bonds may be sold at public or private sale and may bear interest as provided in 17-5-102. Except as otherwise provided in this section, any bonds issued pursuant to this chapter by an authority may be payable as to principal and interest solely from revenue of the authority and must state on their face the applicable limitations or restrictions regarding the source from which the principal and interest are payable.

     (4)  Bonds issued by an authority or municipality pursuant to the provisions of this chapter are declared to be issued for an essential public and governmental purpose by a political subdivision within the meaning of 15-30-111(2)(a).

     (5)  For the security of bonds, the authority or municipality may by resolution make and enter into any covenant, agreement, or indenture and may exercise any additional powers authorized to be exercised by a municipality under Title 7, chapter 7, parts 44 and 45. The sums required from time to time to pay principal and interest and to create and maintain a reserve for the bonds may be paid from any revenues referred to in this chapter, prior to the payment of current costs of operation and maintenance of the facilities.

     (6)  Subject to the conditions stated in this subsection, the governing body of any municipality having a population in excess of 10,000, with respect to bonds issued pursuant to this chapter by the municipality or by an authority in which the municipality is included, may by resolution covenant that in the event that at any time all revenue, including taxes, appropriated and collected for the bonds is insufficient to pay principal or interest then due, it will, subject to voter approval, levy a general tax upon all of the taxable property in the municipality for the payment of the deficiency. The governing body may further covenant that at any time a deficiency is likely to occur within 1 year for the payment of principal and interest due on such the bonds, it will levy a general tax upon all the taxable property in the municipality for the payment of the deficiency, and the taxes are not subject to any limitation of rate or amount applicable to other municipal taxes but are limited to a rate estimated to be sufficient to produce the amount of the deficiency. In the event that more than one municipality having a population in excess of 10,000 is included in an authority issuing bonds pursuant to this chapter, the municipalities may apportion the obligation to levy taxes for the payment of, or in anticipation of, a deficiency in the revenue appropriated for the bonds in a manner that the municipalities may determine. The resolution must state the principal amount and purpose of the bonds and the substance of the covenant respecting deficiencies. A resolution may not be effective until the question of its approval has been submitted to the qualified electors of the municipality at a special election called for that purpose by the governing body of the municipality and a majority of the electors voting on the question have voted in favor of the resolution. The special election must be held in conjunction with a regular or primary election. The notice and conduct of the election is governed, to the extent applicable, as provided for municipal general obligation bonds in Title 7, chapter 7, part 42, for an election called by cities and towns and as provided for county general obligation bonds in Title 7, chapter 7, part 22, for an election called by counties. If a majority of the electors voting on the issue vote against approval of the resolution, the municipality may not make the covenant or levy a tax for the payment of deficiencies pursuant to this section, but the municipality or authority may issue bonds under this chapter payable solely from the sources referred to in subsection (1)."



     Section 126.  Section 76-15-531, MCA, is amended to read:

     "76-15-531.  Special administrative assessment permitted -- voter approval. (1) (a) In addition to the levy authorized in 76-15-515 and 76-15-516(3), the supervisors of a conservation district may levy an annual special administrative assessment, not to exceed the amount determined under subsection (1)(b) each year, for administrative costs and expenses of the district if, at a regularly scheduled election or special tax election, the qualified electors of the district approve the imposition of the additional assessment.

     (b)  The annual levy authorized by this section may not exceed the difference between the amount raised by the annual mill levy authorized under 76-15-515 and $20,000.

     (c)  Nonmill-levy revenue that is distributed based on the relative proportion of mill levies may not be distributed to the special administrative assessment.

     (2)  The special administrative assessment question may be presented to the qualified electors of the district by resolution of the supervisors.

     (3)  If the conservation district is located in more than one county, the special administrative assessment question must be presented to and approved by the qualified electors who reside in the district from each county.

     (4)  The resolution referring the special administrative assessment question must state:

     (a)  the rate of the assessment;

     (b)  the amount of money anticipated to be raised by the assessment; and

     (c)  the purposes for which the special administrative assessment revenue may be used."



     Section 127.  Section 76-15-606, MCA, is amended to read:

     "76-15-606.  Election procedure. (1) The question shall of the creation of a project area must be submitted to the electors at a tax election. by In addition to the requirements of Article VIII, section 17, of the Montana constitution, the ballot on which must contain the words "For creation of proposed project area" and "Against creation of proposed project area" shall must appear, with a square before each proposition and directions to insert an "X" mark in the square before one or the other of said the propositions as the voter may favor or oppose creation of the project area.

     (2)  No A person shall be is not entitled to vote at the election unless such the person possesses all the qualifications required of electors under Title 13 and resides within the boundaries of the proposed project area and the county in which he the person proposes to vote."



     Section 128.  Section 85-3-412, MCA, is amended to read:

     "85-3-412.  Petition content. (1) The petition for the creation of a weather modification authority and for appointment of commissioners shall contain:

     (a)  a title with the heading "Petition for Creation of (insert name of county) Weather Modification Authority";

     (b)  the following paragraph: We, the undersigned qualified electors of (name of county), state of Montana, request that the (name of county) board of county commissioners create by resolution a (name of county) weather modification authority and appoint the following five qualified electors of the county to 5-year terms of office as commissioners for the (name of county) weather modification authority:

     (Here insert the name and address of each proposed commissioner for the (name of county) weather modification authority.)

     (c)  the following paragraph: We, the undersigned qualified electors of the (name of county), state of Montana, are notified that the creation of the (name of county) weather modification authority and the appointment of its commissioners by the (name of county) board of county commissioners will grant the authority the power to certify to require the board of county commissioners to submit to the electors, a mill levy tax not to exceed 2 mills upon the net taxable valuation of property in the county for a weather modification fund, which tax may be levied in excess of the mill levy limit fixed by law for taxes for general county purposes and that such the fund must be used for weather modification activities as provided by 85-3-424. We, the undersigned, understand that the authority requested in this petition expires 5 years after the creation of the weather modification authority, except that the board of county commissioners may by resolution create a weather modification authority and all its powers, including the power to certify submit to the electors a tax levy as provided in 85-3-422, for one or more 5-year periods in accordance with 85-3-414.

     (d)  a heading, "Committee for Petitioners", followed by this statement: The following electors of (name of county), state of Montana, are authorized to represent and act for us and shall constitute the "Committee for the Petitioners" in the matter of this petition and all acts subsequent thereto to the petition.

     (2)  All signatures to such the petition must be numbered and dated by month, day, and year. The name must be written, with residence address and post-office address, including the county of residence.

     (3)  An affidavit must be attached to each petition and sworn to under oath before a notary public by the person circulating each petition, attesting to the fact that he the person circulated the petition and that each of the signatures to the petition is the genuine signature of the person whose name it purports to be and that each such person is a qualified elector in the county in which the petition was circulated."



     Section 129.  Section 85-3-413, MCA, is amended to read:

     "85-3-413.  Creation of authority by election. When a petition signed by not less than 20% of the qualified electors of the county, as determined by the vote cast for the office of governor at the last preceding gubernatorial election, requesting an election upon the establishment of a weather modification authority is presented to the board of county commissioners not later than 90 days prior to the next general election, the board of county commissioners shall submit the question to the electors of the county at the next general election. Upon approval by a majority of the votes cast, the board of county commissioners shall by resolution establish an authority as described in 85-3-411 with all powers set out in this part, including the power to certify a. A tax levy, as provided by 85-3-422, must be approved by the electors at a tax election."



     Section 130.  Section 85-3-415, MCA, is amended to read:

     "85-3-415.  Creation of authority by vote after resolution of county commissioners. The board of county commissioners of any county may, by resolution after a public hearing, submit the question of the creation of a weather modification authority to the electors of the county at the next countywide election. Upon approval by a majority of the votes cast, the board of county commissioners shall pass a resolution creating an authority as described in 85-3-411. Such an The authority has all powers provided by this chapter, including the authority to levy a tax as provided by 85-3-422."



     Section 131.  Section 85-7-1418, MCA, is amended to read:

     "85-7-1418.  Authorization for undertaking and issuance of bonds. (1) The acquisition, construction, or improvement of any undertaking may be authorized under this part.

     (2)  Bonds may be authorized to be issued under this part by resolution of the governing body of the issuer without after approval at an election."



     Section 132.  Section 85-7-1974, MCA, is amended to read:

     "85-7-1974.  Majority vote or petition necessary to contract with the state. (1) No A contract may not be made between an irrigation district and the state of Montana under 85-7-1971 through 85-7-1975 except upon:

     (a)  approval by a majority vote of those voting on the question at an election conducted as prescribed in 85-7-1710; or

     (b)  receipt of a petition signed by at least 60% in number and acreage of the holders of title or evidence of title to lands within the district. Such petition must be addressed to the board of commissioners and must set forth the aggregate amount of money to be borrowed from various sources, including the coal severance tax bonding program provided for in Title 17, chapter 5, part 7, and the purpose for which the money will be used. The petition must include an affidavit certifying the signatures to the petition and must be filed with the secretary of the board of commissioners.

     (2)  In an election held for approval of a district contract under this section, the voting majority must own at least 50% of the acreage included in the district."



     Section 133.  Section 85-8-624, MCA, is amended to read:

     "85-8-624.  Assessments on improvements -- taxpayers' approval, limitations, and election procedures. (1) It shall require a A vote, at a tax election, of the persons on the assessment rolls in any existing district is required to make Chapter 409, Laws of 1973, applicable to such districts an existing district.

     (2)  Nothing in Chapter 409, Laws of 1973, confers upon districts created for drainage purposes only the authority to levy assessments on benefits to improvements.

     (3)  The election provided for by subsection (1) shall must be governed by the following rules:

     (a)  Notice of the election shall must be as provided in 13-1-401(4).

     (b)  The manner of conducting the election shall must be as provided in 85-8-302 and as nearly as practicable in accordance with the provisions of the general election laws of the state, except that no registration may not be required.

     (c)  The qualifications of electors shall must be as provided in 85-8-305, except that, in addition to persons holding title or evidence of title to lands within the district, any person as therein defined who does not own land within the district but has been assessed or will have his improvements assessed under Chapter 409, Laws of 1973, or who will be assessed for benefits received shall be is entitled to one vote. Commissioners shall prepare a list of such persons eligible to vote and the election administrator or deputy election administrator shall give them notice as provided in 13-1-401(4).

     (d)  The commissioners of any district in existence prior to March 21, 1973, who wish to hold an election to determine if the district shall be governed by Chapter 409, Laws of 1973, shall at any regular or special meeting adopt a resolution calling for an election to determine whether or not the voters of said the district wish to be governed by Chapter 409, Laws of 1973. The resolution shall must contain a short summary of the changes made by Chapter 409, Laws of 1973, and the summary must be included in the notice provided for by 13-1-401(4). In addition, the commission shall provide copies of Chapter 409, Laws of 1973, to any person interested in obtaining a copy of the same law and the notice to the persons in the district calling the election shall must describe where and how copies may be obtained. The commissioners may authorize a reasonable charge for providing said copies, not to exceed 20 cents per page.

     (e)  The ballot shall must include the summary as provided for in the preceding subsection and the form of the ballot shall must conform as closely as possible to that provided for in Title 13, chapter 27, for tax elections.

     (f)  A simple majority of those who cast valid ballots shall determine the outcome of the election."



     Section 134.  Section 85-9-304, MCA, is amended to read:

     "85-9-304.  Appointment of receiver -- assessments. (1) If no plan is presented on or before the date set by the court, the court shall appoint a receiver to terminate the affairs of the district under the supervision of the court.

     (2)  Upon the appointment of any receiver, all the authority of the directors shall cease. However, until dissolution and subject to Article VIII, section 17, of the Montana constitution, the receiver shall have authority to levy assessments for:

     (a)  the payment of obligations of the district;

     (b)  the costs of termination.

     (3)  The directors or, if there is a receiver, then the receiver, with the approval of the court, shall make assessments each year in an amount large enough to retire the obligations of the district.

     (4)  If a receiver has been appointed, he the receiver shall direct, under court supervision, the disposition of all assessments collected."



     Section 135.  Section 90-5-112, MCA, is amended to read:

     "90-5-112.  Economic development levy. (1) The governing body of a city, county, or town is authorized to may, upon approval of the qualified voters, levy up to 1 mill upon the taxable value of all the property in the city, county, or town subject to taxation for the purpose of economic development. The governing body may:

     (a)  submit the question of the mill levy to the qualified voters voting in a city, county, or town election; or

     (b)  approve the mill levy by a vote of the governing body.

     (2)  Funds derived from this levy may be used for purchasing land for industrial parks, constructing buildings to house manufacturing and processing operations, conducting preliminary feasibility studies, promoting economic development opportunities in a particular area, and other activities generally associated with economic development. These funds may not be used to directly assist an industry's operations by loan or grant or to pay the salary or salary supplements of government employees.

     (3)  The governing body of the county, city, or town may use the funds derived from this levy to contract with local development companies and other associations or organizations capable of implementing the economic development function.

     (4)  A tax authorized by a vote of the electorate, as provided in subsection (1)(a), may be levied for a period not to exceed 6 years and is not subject to the provisions of Title 15, chapter 10, part 4."



     NEW SECTION.  Section 136.  Repealer. Sections 7-7-2221, 7-7-2222, 7-7-2311, and 20-6-215, MCA, are repealed.



     NEW SECTION.  Section 137.  Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].



     NEW SECTION.  Section 138.  Effective date. [This act] is effective on passage and approval.

- END -




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