SENATE BILL NO. 246
INTRODUCED BY D. MAHLUM, R. PECK, J. HERTEL, M. MCCANN, S. ROSE, F. THOMAS
AN ACT AUTHORIZING A SCHOOL DISTRICT TO POOL AND INDEPENDENTLY INVEST DISTRICT FUNDS FOR COMPLIANCE WITH INVESTMENT LAWS APPLICABLE TO SCHOOL DISTRICT FUNDS; AMENDING SECTIONS 20-9-212 AND 20-9-213, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-9-212, MCA, is amended to read:
"20-9-212. Duties of county treasurer. The county treasurer of each county shall:
(1) receive and hold all school money subject to apportionment and keep a separate accounting of its apportionment to the several districts that are entitled to a portion of the money according to the apportionments ordered by the county superintendent or by the superintendent of public instruction. A separate accounting must be maintained for each county fund supported by a countywide levy for a specific, authorized purpose, including:
(a) the basic county tax for elementary equalization;
(b) the basic county tax for high school equalization;
(c) the county tax in support of the transportation schedules;
(d) the county tax in support of the elementary and high school district retirement obligations; and
(e) any other county tax for schools, including the community colleges, that may be authorized by law and levied by the county commissioners.
(2) whenever requested, notify the county superintendent and the superintendent of public instruction of the amount of county school money on deposit in each of the funds enumerated in subsection (1) and the amount of any other school money subject to apportionment and apportion the county and other school money to the districts in accordance with the apportionment ordered by the county superintendent or the superintendent of public instruction;
(3) keep a separate accounting of the receipts, expenditures, and cash balances for each fund;
(4) except as otherwise limited by law, pay all warrants properly drawn on the county or district school money;
(5) receive all revenue collected by and for each district and deposit these receipts in the fund designated by law or by the district if a fund is not designated by law. Interest and penalties on delinquent school taxes must be credited to the same fund and district for which the original taxes were levied.
(6) send all revenue received for a joint district, part of which is situated in the county, to the county treasurer designated as the custodian of the revenue, no later than December 15 of each year and every 3 months after that date until the end of the school fiscal year;
(7) at the direction of the trustees of a district, assist the district in the issuance and sale of tax and revenue anticipation notes as provided in Title 7, chapter 6, part 11;
(8) register district warrants drawn on a budgeted fund in accordance with 7-6-2604 when there is insufficient money available in all funds of the district to make payment of the warrant. Redemption of registered warrants must be made in accordance with 7-6-2116, 7-6-2605, and 7-6-2606.
(9) when directed by the trustees of a district, invest the money of any the district as directed by the trustees of the
district within 3 working days of the direction;
(10) each month give to the trustees of each district an itemized report for each fund maintained by the district, showing the paid warrants, registered warrants, interest distribution, amounts and types of revenue received, and the cash balance;
(11) remit promptly to the state treasurer receipts for the county tax for a vocational-technical program within a unit of the university system when levied by the board of county commissioners under the provisions of 20-25-439;
(12) invest the money received from the basic county taxes for elementary and high school equalization, the county levy in support of the elementary and high school district retirement obligations, and the county levy in support of the transportation schedules within 3 working days of receipt. The money must be invested until the working day before it is required to be distributed to school districts within the county or remitted to the state. Permissible investments are specified in 20-9-213(4). All investment income must be deposited, and credited proportionately, in the funds established to account for the taxes received for the purposes specified in subsections (1)(a) through (1)(d).
(13) remit on a monthly basis to the state treasurer, in accordance with the provisions of 15-1-504, all county equalization revenue received under the provisions of 20-9-331 and 20-9-333, including all interest earned and excluding any amount required for high school out-of-county tuition under the provisions of 20-9-334, in repayment of the state advance for county equalization prescribed in 20-9-347. Any funds in excess of a state advance must be used as required in 20-9-331(1)(b) and 20-9-333(1)(b)."
Section 2. Section 20-9-213, MCA, is amended to read:
"20-9-213. Duties of trustees. The trustees of each district have the authority to transact all fiscal business and execute all contracts in the name of the district. A person other than the trustees acting as a governing board may not expend money of the district. In conducting the fiscal business of the district, the trustees shall:
(1) cause the keeping of an accurate, detailed accounting of all receipts and expenditures of school money for each fund maintained by the district in accordance with generally accepted accounting principles and the rules prescribed by the superintendent of public instruction. The record of the accounting must be open to public inspection at any meeting of the trustees.
(2) authorize all expenditures of district money and cause warrants to be issued for the payment of lawful obligations;
(3) issue warrants on any budgeted fund in anticipation of budgeted revenue, except that the expenditures may not exceed the amount budgeted for the fund;
(4) invest any money of the district, whenever in the judgment of the trustees the investment would be advantageous to
the district, by either directing the county treasurer to invest any money of the district or by directly investing the money of
the district in eligible securities, as authorized identified in 7-6-202;, in savings or time deposits in a state or national bank,
building or loan association, savings and loan association, or credit union insured by the FDIC or NCUA located in the
state;, or in a repurchase agreement, as authorized that meets the criteria provided for in 7-6-213. All interest collected on
the deposits or investments must be credited to the fund from which the money was withdrawn, except that interest earned
on account of the investment of money realized from the sale of bonds must be credited to the debt service fund or the
building fund, at the discretion of the board of trustees. The placement of the investment by the county treasurer is not
subject to ratable distribution laws and must be done in accordance with the directive from the board of trustees. A district
may invest money under the state unified investment program established in Title 17, chapter 6, or in a unified investment
program with the county treasurer that meets, with other school districts, or with any other political subdivision if the unified
investment program is limited to investments that meet the requirements of this subsection (4). A school district that enters
into a unified investment program with another school district or political subdivision other than the state shall do so under
the auspices of and by complying with the provisions governing interlocal cooperative agreements authorized under Title 7,
chapter 11, and educational cooperative agreements authorized under Title 20, chapter 9, part 7. A school district shall
either contract for investment services with any company licensed to do business in Montana under the provisions of Title
30, chapter 10, or shall contract with the state board of investments for investment services.
(5) cause the district to record each transaction in the appropriate account before the accounts are closed at the end of the fiscal year in order to properly report the receipt, use, and disposition of all money and property for which the district is accountable;
(6) report annually to the county superintendent, not later than August 15, the financial activities of each fund maintained by the district during the last-completed school fiscal year, on the forms prescribed and furnished by the superintendent of public instruction. Annual fiscal reports for joint school districts must be submitted not later than September 1 to the county superintendent of each county in which part of the joint district is situated.
(7) whenever requested, report any other fiscal activities to the county superintendent, superintendent of public instruction, or board of public education;
(8) cause the accounting records of the district to be audited as required by 2-7-503; and
(9) perform, in the manner permitted by law, other fiscal duties that are in the best interests of the district."
Section 3. Effective date. [This act] is effective July 1, 1999.
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Latest Version of SB 246 (SB0246.ENR)
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