SENATE BILL NO. 298
INTRODUCED BY T. KEATING
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE METHOD BY WHICH FUNDS ARE ALLOCATED FROM THE RECLAMATION AND DEVELOPMENT GRANTS PROGRAM ACCOUNT; ELIMINATING GRANTS FROM THE RECLAMATION AND DEVELOPMENT GRANTS PROGRAM; REALLOCATING FUNDS FROM THE GRANTS PROGRAM TO PROVIDE FOR THE FUNDING OF OIL, GAS, AND MINE RECLAMATION PROJECTS; AMENDING SECTIONS 15-37-117, 15-38-106, 15-38-202, 17-7-111, 90-2-1101, 90-2-1102, 90-2-1103, 90-2-1104, AND 90-2-1112, MCA; REPEALING SECTIONS 90-2-1105, 90-2-1111, 90-2-1113, 90-2-1114, AND 90-2-1121, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-37-117, MCA, is amended to read:
"15-37-117. Disposition of metalliferous mines license taxes. (1) Metalliferous mines license taxes collected under the provisions of this part must, in accordance with the provisions of 15-1-501, be allocated as follows:
(a) to the credit of the general fund of the state, 58% of total collections each year;
(b) to the state special revenue fund to the credit of a hard-rock mining impact trust account, 1.5% of total collections each year;
(c) to the orphan share state special revenue account established in 75-10-743, 8.5% of total collections each year;
(d) to the ground water assessment account established in 85-2-905, 2.2% of total collections each year;
(e) to the reclamation and development grants program state special revenue account, 4.8% of total collections each
year; and
(f) to the county or counties identified as experiencing fiscal and economic impacts, resulting in increased employment or local government costs, under an impact plan for a large-scale mineral development prepared and approved pursuant to 90-6-307, in direct proportion to the fiscal and economic impacts determined in the plan, or, if an impact plan has not been prepared, to the county in which the mine is located, 25% of total collections each year, to be allocated by the county commissioners as follows:
(i) not less than 40% to the county hard-rock mine trust reserve account established in 7-6-2225; and
(ii) all money not allocated to the account pursuant to subsection (1)(f)(i) to be further allocated as follows:
(A) 33 1/3% is allocated to the county for planning or economic development activities;
(B) 33 1/3% is allocated to the elementary school districts within the county that have been affected by the development or operation of the metal mine; and
(C) 33 1/3% is allocated to the high school districts within the county that have been affected by the development or operation of the metal mine.
(2) When an impact plan for a large-scale mineral development approved pursuant to 90-6-307 identifies a jurisdictional revenue disparity, the county shall distribute the proceeds allocated under subsection (1)(f) in a manner similar to that provided for property tax sharing under Title 90, chapter 6, part 4.
(3) The department shall return to the county in which metals are produced the tax collections allocated under subsection (1)(f). The allocation to the county described by subsection (1)(f) is a statutory appropriation pursuant to 17-7-502."
Section 2. Section 15-38-106, MCA, is amended to read:
"15-38-106. Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before March 31, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.
(2) The department shall, in accordance with the provisions of 15-1-501, deposit the proceeds of the tax in the resource indemnity trust fund of the nonexpendable trust fund type, except that:
(a) 14.1% of the proceeds must be deposited in the ground water assessment account established by 85-2-905;
(b) 10% of the proceeds must be deposited in the renewable resource grant and loan program state special revenue account established by 85-1-604; and
(c) 30% of the proceeds must be deposited in the reclamation and development grants account established by
90-2-1104; and
(d) at the beginning of each fiscal year, there is allocated from the proceeds of the tax up to $200,000 to be deposited in the orphan share account established in 75-10-743.
(3) Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.
(4) The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer."
Section 3. Section 15-38-202, MCA, is amended to read:
"15-38-202. (Temporary) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. Only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts may be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs;
(ii) $1 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants; and
(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by
90-2-1104, for the exclusive purpose of making grants funding oil and gas reclamation projects proposed by the board of
oil and gas conservation and funding mine reclamation projects proposed by the department of environmental quality.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and
(iii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.
(c) The remainder of the interest income is allocated as follows:
(i) Thirty-six percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) Eighteen percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and
development grants account provided for in 90-2-1104.
(iv) Six percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session.
15-38-202. (Effective July 1, 1999) Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. Only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts may be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan program state special revenue account to support the operations of the environmental science-water quality instructional programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs;
(ii) $1 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants; and
(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by
90-2-1104, for the exclusive purpose of making grants funding oil and gas reclamation projects proposed by the board of
oil and gas conservation and funding mine reclamation projects proposed by the department of environmental quality.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of 82-11-161; and
(iii) $500,000 to be deposited into the water storage state special revenue account created by 85-1-631.
(c) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund up to $200,000 to be deposited in the orphan share account established in 75-10-743.
(d) The remainder of the interest income is allocated as follows:
(i) Thirty-six percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) Eighteen percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and
development grants account provided for in 90-2-1104.
(iv) Six percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds other than as provided for by the allocations in subsection (2) must specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session."
Section 4. Section 17-7-111, MCA, is amended to read:
"17-7-111. Preparation of state budget -- agency program budgets -- form distribution and contents. (1) (a) To prepare a state budget, the executive branch, the legislature, and the citizens of the state need information that is consistent and accurate. Necessary information includes detailed disbursements by fund type for each agency and program for the appropriate time period, recommendations for creating a balanced budget, and recommended disbursements and estimated receipts by fund type and fund category.
(b) Subject to the requirements of this chapter, the budget director and the legislative fiscal analyst shall by agreement:
(i) establish necessary standards, formats, and other matters necessary to share information between the agencies and to ensure that information is consistent and accurate for the preparation of the state's budget; and
(ii) provide for the collection and provision of budgetary and financial information that is in addition to or different from the information otherwise required to be provided pursuant to this section.
(2) In the preparation of a state budget, the budget director shall, not later than the date specified in 17-7-112(1), distribute to all agencies the proper forms and instructions necessary for the preparation of budget estimates by the budget director. These forms must be prescribed by the budget director to procure the information required by subsection (3). The forms must be submitted to the budget director by the date provided in 17-7-112(2) or the agency's budget is subject to preparation based upon estimates as provided in 17-7-112(5). The budget director may refuse to accept forms that do not comply with the provisions of this section or the instructions given for completing the forms.
(3) The agency budget request must set forth a balanced financial plan for the agency completing the forms for each fiscal year of the ensuing biennium. The plan must consist of:
(a) a consolidated agency budget summary of funds subject to appropriation for the current base budget expenditures, including statutory appropriations, and for each present law adjustment and new proposal request setting forth the aggregate figures of the full-time equivalent personnel positions (FTE) and the budget, showing a balance between the total proposed disbursements and the total anticipated receipts, together with the other means of financing the budget for each fiscal year of the ensuing biennium, contrasted with the corresponding figures for the last completed fiscal year and the fiscal year in progress;
(b) a schedule of the actual and projected receipts, disbursements, and solvency of each accounting entity within each fund for the current biennium and estimated for the subsequent biennium;
(c) a statement of the agency mission and a statement of goals and objectives for each program of the agency. The goals and objectives must include, in a concise form, sufficient specific information and quantifiable information to enable the legislature to formulate an appropriations policy regarding the agency and its programs and to allow a determination, at some future date, on whether the agency has succeeded in attaining its goals and objectives.
(d) actual FTE and disbursements for the completed fiscal year of the current biennium, estimated FTE and disbursements for the current fiscal year, and the agency's request for the ensuing biennium, by program;
(e) actual disbursements for the completed fiscal year of the current biennium, estimated disbursements for the current fiscal year, and the agency's recommendations for the ensuing biennium, by disbursement category;
(f) a reference, for each program included in the agency budget request, identifying whether the program may be operated at the discretion of the agency or whether the agency is required by federal or state law to operate, administer, or manage the program; and
(g) other information the budget director feels is necessary for the preparation of a budget.
(4) The budget director shall prepare and submit to the legislative fiscal analyst in accordance with 17-7-112:
(a) detailed recommendations for the state long-range building program. Each recommendation must be presented by institution, agency, or branch, by funding source, with a description of each proposed project.
(b) the proposed pay plan schedule for all executive branch employees at the program level by fund, with the specific cost and funding recommendations for each agency. Submission of a pay plan schedule under this subsection is not an unfair labor practice under 39-31-401.
(c) agency proposals for the use of cultural and aesthetic project grants under Title 22, chapter 2, part 3, the renewable
resource grant and loan program under Title 85, chapter 1, part 6, the reclamation and development grants program under
Title 90, chapter 2, part 11, and the treasure state endowment program under Title 90, chapter 6, part 7.
(5) The board of regents shall submit, with its budget request for each university unit in accordance with 17-7-112, a report on the university system bonded indebtedness and related finances as provided in this subsection (5). The report must include the following information for each year of the biennium, contrasted with the same information for the last completed fiscal year and the fiscal year in progress:
(a) a schedule of estimated total bonded indebtedness for each university unit by bond indenture;
(b) a schedule of estimated revenue, expenditures, and fund balances by fiscal year for each outstanding bond indenture, clearly delineating the accounts relating to each indenture and the minimum legal funding requirements for each bond indenture; and
(c) a schedule showing the total funds available from each bond indenture and its associated accounts, with a list of commitments and planned expenditures from such accounts, itemized by revenue source and project for each year of the current and ensuing bienniums.
(6) The budget director may not obtain copies of individual income tax records protected under 15-30-303. The department of revenue shall make individual income tax data available by removing names, addresses, occupations, social security numbers, and taxpayer identification numbers. The department of revenue may not alter the data in any other way. The data is subject to the same restrictions on disclosure as are individual income tax returns."
Section 5. Section 90-2-1101, MCA, is amended to read:
"90-2-1101. Short title. This part may be cited as the "Reclamation and Development Grants Program Act"."
Section 6. Section 90-2-1102, MCA, is amended to read:
"90-2-1102. Policy and purpose. (1) The policy of the state of Montana expressed in the Reclamation and
Development Grants Program Act is to provide a state capability to fund projects that indemnify the people of the state for
the effects of mineral development on public resources and that meet other crucial needs serving the public interest and the
total environment of the citizens of Montana.
(2) The purposes of the reclamation and development grants program are to:
(a) repair, reclaim, and mitigate environmental damage to public resources from nonrenewable resource extraction; and
(b) develop and ensure the quality of public resources for the benefit of all Montanans."
Section 7. Section 90-2-1103, MCA, is amended to read:
"90-2-1103. Definitions. As used in this part, the following definitions apply:
(1) "Board of oil and gas conservation" means the board provided for in 2-15-3303.
(1) "Department" means the department of natural resources and conservation provided for in Title 2, chapter 15, part
33.
(2) "Financially feasible" means that adequate funds are available to complete the project as approved.
(3)(2) "Mineral" means any precious stones or gems, gold, silver, copper, coal, lead, petroleum, natural gas, oil,
uranium, or other nonrenewable merchantable products extracted from the surface or subsurface of the state of Montana.
(4)(3) "Mineral development" means exploration, extraction, processing, or other activity related to the production of a
mineral.
(5)(4) "Mitigation" means the act of rectifying an impact by repairing, rehabilitating, or restoring the affected
environment; reducing or eliminating an impact over time by operations that preserve or maintain the environment; or
compensating for an impact by replacing or providing substitute resources or habitats.
(6)(5) "Project" means a planned and coordinated action or series of actions addressing an objective consistent with the
policy and purpose of the reclamation and development grants program. A project may consist of problem analysis,
feasibility or design studies, environmental monitoring, remedial action plans or implementation, technology
demonstration, research, construction or acquisition of capital facilities, or other related actions.
(7) "Public benefits" means those benefits that accrue to citizens as a group and enhance the common well-being of the
people of Montana.
(8)(6) "Public resources" means the natural resources of the state, including air, water, soil, minerals, vegetation, and
fish and wildlife, and the economic, social, and cultural conditions of Montana citizens.
(9)(7) "Reclamation and development grants account" means the reclamation and development grants special revenue
account established in 90-2-1104.
(10) "Technically feasible" means that a project or activity can be designed, constructed, operated, or carried out to
accomplish its objectives, utilizing accepted engineering and other technical principles and concepts."
Section 8. Section 90-2-1104, MCA, is amended to read:
"90-2-1104. Reclamation and development grants account. (1) There is a reclamation and development grants
special revenue account within the state special revenue fund established in 17-2-102.
(2) There must be paid into the reclamation and development grants account money allocated from:
(a) the interest income of the resource indemnity trust fund under the provisions of 15-38-202;
(b) the resource indemnity and ground water assessment tax under the provisions of 15-38-106;
(c) the the metal mines license tax proceeds as provided in 15-37-117(1)(e); and
(d) the oil and gas production tax as provided in 15-36-324 and 15-38-106.
(3) Appropriations may be made from the reclamation and development grants account for the following purposes:
(a) grants for designated projects funding oil and gas reclamation and mitigation projects proposed by the board of oil
and gas conservation and funding mine reclamation and mitigation projects proposed by the department of environmental
quality; and
(b) administrative expenses, including the salaries and expenses of personnel, equipment, office space, and other
expenses necessarily incurred in the administration of the grants program these programs. These expenses may be funded
before funding of projects."
Section 9. Section 90-2-1112, MCA, is amended to read:
"90-2-1112. Eligibility requirements. (1) Except as provided under subsection (2), to be eligible for funding under the
reclamation and development grants program, the proposed project must provide benefits in one or more of the following
categories:
(a) reclamation of land, water, or other resources adversely affected by mineral development;
(b) mitigation of damage to public resources caused by mineral development;
(c) research, demonstration, or technical assistance to promote the wise use of Montana minerals, including efforts to
make processing more environmentally compatible;
(d)(c) investigation and remediation of sites where hazardous wastes or regulated substances threaten public health or
the environment; and
(e)(d) research to assess existing or potential environmental damage resulting from mineral development.
(2) If sufficient eligible and qualified applications projects satisfying the mineral development objectives provided for
in subsection (1) are not received proposed and funded or if there is a crucial state need, the department may evaluate and
the governor may recommend that the legislature may approve funding for projects that:
(a) enhance Montana's economy through the development of natural resources; or
(b) develop, promote, protect, or further Montana's total environment and public interest, including the general health, safety, welfare, and public resources of Montana citizens and communities.
(3) To be eligible for funding under the reclamation and development grants program, a project must:
(a) be technically and financially feasible;
(b) be the best cost-effective alternative to address a problem or attain an objective;
(c) comply with statutory and regulatory standards protecting environmental quality; and
(d) be from an applicant able and willing to enter into a contract with the department for the implementation of the
proposed project or activity.
(4)(3) A project is not eligible for funding under the reclamation and development grants program to the extent that the
project is eligible for and can reasonably be expected to receive funding from other state or federal reclamation programs or
any other program or act that provides funding to accomplish remedial action for environmental damage or if the project is
permitted under Title 82, chapter 4 or 11.
(5)(4) A proposed project is not eligible for funding under the reclamation and development grants program if there is a
liable party who would be relieved of financial or legal responsibility and who can reasonably be expected to be held
responsible."
NEW SECTION. Section 10. Repealer. Sections 90-2-1105, 90-2-1111, 90-2-1113, 90-2-1114, and 90-2-1121, MCA, are repealed.
NEW SECTION. Section 11. Coordination instruction. If [this act] is passed and approved, House Bill No. 7 is void.
NEW SECTION. Section 12. 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 13. Effective date. [This act] is effective July 1, 1999.
- END -
Latest Version of SB 298 (SB0298.01)
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