1999 Montana Legislature

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SENATE BILL NO. 442

INTRODUCED BY S. STANG

BY REQUEST OF THE JOINT SELECT COMMITTEE ON CI-75



A BILL FOR AN ACT ENTITLED: "AN ACT REVISING TITLE 20 TO IMPLEMENT THE PROVISIONS OF ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION; ESTABLISHING THE FIRST TUESDAY AFTER THE FIRST MONDAY IN JUNE AS THE PRIMARY ELECTION DATE; REVISING LAWS RELATED TO SCHOOL BOUNDARY TRANSFERS TO REQUIRE APPROVAL OF THE ELECTORATE PRIOR TO TRANSFER; ELIMINATING THE VOTE ON BUDGET AUTHORITY; REVISING EXISTING PROCEDURES RELATING TO THE ANNEXATION OR CONSOLIDATION OF A SCHOOL DISTRICT OR THE TRANSFER OF SCHOOL DISTRICT TO CONFORM WITH THE VOTING REQUIREMENTS OF ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION; CONFORMING LANGUAGE ON THE BALLOT SUBMITTED TO THE ELECTORATE FOR THE GENERAL FUND LEVY TO ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION; DEFINING "TAX INCREASE" FOR PURPOSES OF THE ELECTION; ADJUSTING DATES TO COMPLY WITH THE JUNE TAX ELECTION AND TRUSTEE ELECTION DATE; AMENDING SECTIONS 13-1-104, 13-1-107, 20-3-304, 20-3-321, 20-6-203, 20-6-205, 20-6-206, 20-6-207, 20-6-213, 20-6-308, 20-6-309, 20-6-315, 20-6-317, 20-6-318, 20-6-319, 20-6-320, 20-6-502, 20-6-503, 20-6-504, 20-6-505, 20-7-705, 20-7-714, 20-9-122, 20-9-141, 20-9-142, 20-9-168, 20-9-214, 20-9-302, 20-9-308, 20-9-311, 20-9-314, 20-9-353, 20-9-366, 20-9-367, 20-9-368, 20-9-369, 20-9-404, 20-9-501, 20-9-502, 20-9-506, 20-9-705, 20-10-124, 20-10-144, 20-10-146, 20-10-147, 20-20-102, 20-20-105, 20-20-106, 20-20-108, 20-20-401, AND 20-20-417, MCA; REPEALING SECTIONS 20-6-215 AND 20-9-303, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."



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



     Section 1.  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 be held on school election day, the first Tuesday of April after the first Monday of June 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 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 2.  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 preceding the general election provided for in 13-1-104(1), a primary election shall must be held throughout the state.

     (2)  On the first Tuesday following the second first Monday in September June 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 first Tuesday following the second first Monday in September June. In an even-numbered year, the cost of this election must be paid by the municipality."



     Section 3.  Section 20-3-304, MCA, is amended to read:

     "20-3-304.  Annual election. In each district an election of trustees shall must be conducted annually on the regular school election day, the first Tuesday after the first Monday of April June. Election of trustees shall must comply with the election provisions of Title 13 and this title."



     Section 4.  Section 20-3-321, MCA, is amended to read:

     "20-3-321.  Organization and officers. (1) The trustees of each district shall annually organize as a governing board of the district after the regular election day and after the issuance of the election certificates to the newly elected trustees, but not later than the third Saturday of April June. In order to organize, the trustees of the district shall must be given notice of the time and place where the organization meeting will be held, and at such the meeting they shall choose one of their number as the chairman presiding officer. In addition, except for the trustees of a high school district operating a county high school, the trustees shall employ and appoint a competent person, who is not a member of the trustees, as the clerk of the district. The trustees of a high school district operating a county high school shall appoint a secretary, who shall must be a member of the board.

     (2)  The chairman presiding officer of the trustees of any district shall serve until the next organization meeting and shall preside at all the meetings of the trustees in accordance with the customary rules of order. He The presiding officer shall perform the duties prescribed by this title and any other duties that normally pertain to such a presiding officer."



     Section 5.  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 a special 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 a special 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 special election to consider the issue of consolidation election. If the consolidation proposal is approved by the affected electors, an election must be scheduled to consider any tax increase resulting from the consolidation proposal and 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 must assume the bonded indebtedness of each district. In addition, such the order shall 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 6.  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 a special 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 a special election to consider an annexation proposition for their district.

     (3)  Before ordering an a special election on the proposition, the county superintendent shall must 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 a special election to consider the issue related to annexation election. If the proposition is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted to the electors because of the proposition.

     (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 7.  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 at a special election. If the proposition is approved by the affected electors, a tax election must be held to consider 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 8.  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, 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, otherwise it shall be is disapproved.

     (4)  If the proposition is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted because of the proposition."



     NEW SECTION.  Section 9.  Boundary transfer increasing property taxes -- submission to electorate required. A transfer of property that will result in an increase in the tax rate or an expansion in the legal definition of a tax base of a school district may not occur unless the tax increase or change in tax base has been approved by the electorate as required by Article VIII, section 17, of the Montana constitution.



     Section 10.  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 Except as provided in subsection (9), 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.

     (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).

     (9) A proposed transfer of territory must be approved by the electorate at a special election. If approved by the affected electors, the proposed transfer of territory must comply with the requirements of [section 9]."



     Section 11.  Section 20-6-308, MCA, is amended to read:

     "20-6-308.  Limitations for organization of joint high school district. The boundaries of any high school district which that encompass a county's portion of a joint elementary district where an elementary school is operated may be changed to establish a joint high school district. Such A high school district boundary change shall must be a transfer of all the territory located in another county's portion of the same joint elementary district. No such A boundary change shall may not be made when:

     (1)  the territory transfer would reduce the taxable value of the taxable property of another high school district to less than $1 million; or

     (2)  a portion of the territory to be transferred is less than 3 miles from an operating accredited high school located in another high school district; or

     (3) the proposed transfer violates the provisions of [section 9]."



     Section 12.  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 13.  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 a special 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 a special 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 special election to consider the issue of consolidation election. If the proposal is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted because of the proposition.

     (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 14.  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 a special 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 a special election to consider an annexation proposition for their district.

     (3)  Before ordering an a special 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 a special election to consider the issue of annexation 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 tax 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 15.  Section 20-6-318, MCA, is amended to read:

     "20-6-318.  Consolidation or annexation election with assumption of bonded indebtedness. A special election to consider a proposition for 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 a special election to consider a proposition for 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. If the proposition is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted because of the proposition.

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

     "20-6-319.  Consolidation or annexation election without assumption of bonded indebtedness. (1) A consolidation special election to consider a proposition for consolidation without the assumption of bonded indebtedness by the high school districts to be consolidated as prescribed in 20-6-315 or an a special election to consider a proposition for 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. If the proposition is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted because of the proposition. If the 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. If the proposition is approved by the affected electors, a tax election must be held to consider all tax measures required to be submitted because of the proposition. If the tax measure is disapproved, then the proposition is disapproved."



     Section 17.  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 Except as provided in subsection (9), 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.

     (8)  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).

     (9) A proposed transfer of territory must be approved by the electorate at a special election. If approved by the affected electors, the proposed transfer must comply with the requirements of [section 9]."



     Section 18.  Section 20-6-502, MCA, is amended to read:

     "20-6-502.  Opening or reopening of elementary school. The trustees of any elementary district may open or reopen an elementary school of the district when such the opening or reopening has been approved in accordance with the following procedure:

     (1)  The parents of at least three pupils who would attend the opened or reopened school petition the trustees of the district to open or reopen a school during the ensuing school fiscal year. Such The petition shall must identify the school, state the reasons for requesting the opening or reopening, and give the names of the children who would attend such the school.

     (2)  If the trustees approve the opening or reopening of a school, they shall send the petition with a copy of their approval resolution to the county superintendent. The county superintendent shall review the petition to determine if the average number belonging (ANB) of such school would be five or more.

     (3)  The county superintendent shall present the petition, trustees' approval, and his the county superintendent's findings on the probable ANB to the board of county commissioners (budget board) for their consideration. The budget board shall deny the opening or reopening of any school if the county superintendent's enrollment estimate for such the school is less than five ANB. In all other cases, the budget board may approve or disapprove the requested opening or reopening of the elementary school.

     (4)  If the budget board approves a school opening or reopening, the county superintendent shall send a copy of such the approval, along with the petition, trustees' approval, and his the estimate of the probable ANB, to the superintendent of public instruction. The superintendent of public instruction shall approve or disapprove the requested opening or reopening of the elementary school. If the opening or reopening is approved, the superintendent of public instruction shall approve or adjust the ANB estimate of the county superintendent for such the school and such the ANB amount shall must be used for budgeting and BASE funding program purposes during the ensuing school fiscal year. No An ANB amount shall may not be approved for the ensuing school fiscal year for an opening or reopening school when the request for such the school has not been received by the superintendent of public instruction before the fourth Monday of June March 15."



     Section 19.  Section 20-6-503, MCA, is amended to read:

     "20-6-503.  Opening or reopening of a high school. (1) The trustees of any high school district may open or reopen a high school of the district or a branch of a high school of the district when such the opening or reopening has been approved by the superintendent of public instruction; except. However, when a county high school is discontinued by a unification action, the trustees may establish, by resolution, a high school to be operated by the high school district without further action or approval. When the trustees of a high school district resolve to open or reopen a high school, they shall apply to the superintendent of public instruction for approval to open or reopen such the school by June 1 March 15 before the school fiscal year in which they intend to open or reopen the high school. Such The application shall must state:

     (a)  their reasons why the high school should be opened or reopened;

     (b)  the probable enrollment of such the high school;

     (c)  the distance and road conditions of the route to neighboring high schools;

     (d)  the taxable value of the district;

     (e)  the building and equipment facilities available for such the high school;

     (f)  the planned course of instruction for such the high school;

     (g)  the planned methods of complying with high school standards of accreditation; and

     (h)  any other information that may be required by the superintendent of public instruction.

     (2)  The superintendent of public instruction shall investigate the application for the opening or reopening of a high school and shall approve or disapprove the opening of the high school before the fourth Monday of June April 15 preceding the first year of intended operation. If the opening is approved, the high school district trustees may open such the high school.

     (3)  Whenever the opening or reopening of a high school is approved for the ensuing school fiscal year, the county superintendent shall estimate the average number belonging (ANB) after investigating the probable enrollment for the high school. The ANB determined by the county superintendent shall must be used for budgeting and BASE funding program purposes.

     (4)  Nothing herein contained shall This section may not be construed so as to preclude the trustees of a high school district from establishing more than one high school in the district."



     Section 20.  Section 20-6-504, MCA, is amended to read:

     "20-6-504.  Opening of a junior high school. (1) The trustees of any elementary district and the trustees of the high school district in which such the elementary district is located may open a junior high school when such the opening has been approved by the superintendent of public instruction; except that. However, when the high school district operates a county high school, the opening of a junior high school shall must be approved under the provisions of 20-6-505.

     (2)  When the trustees of such the districts resolve to open a junior high school, they shall jointly apply to the superintendent of public instruction for approval to open such the school by June 1 March 15 before the school fiscal year in which they intend to open 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.

     (3)  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 April 15 preceding the first year of intended operation. If the opening is approved, the trustees of the elementary district and the high school district may jointly open such the school.

     (4)  Whenever the opening of a junior high school is approved for the ensuing school fiscal year, the county superintendent shall estimate the average number belonging (ANB) after investigating the probable enrollment for the junior high school. The ANB determined by the county superintendent shall must be used for budgeting and BASE funding program purposes during the ensuing school fiscal year."



     Section 21.  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 March 15 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 April 15 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 22.  Section 20-7-705, MCA, is amended to read:

     "20-7-705.  Adult education fund. (1) A separate adult education fund must be established when an adult education program is operated by a district or community college district. The financial administration of the fund must comply with the budgeting, financing, and expenditure provisions of the laws governing the schools.

     (2)  Whenever the trustees of a district establish an adult education program under the provisions of 20-7-702, they shall establish an adult education fund under the provisions of this section. The adult education fund is the depository for all district money received by the district in support of the adult education program. Federal and state adult education program money must be deposited in the miscellaneous programs fund.

     (3) The trustees shall submit a proposition on any tax increase to the electors of the district as provided in 20-9-353. If approved by the electors, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final adult education fund budget.

     (3)(4)  The If the tax increase is not approved by the electors, the trustees of a district may authorize only the levy of a tax of not more than 1 mill on the district, plus any amount attributable to improvements or personal property being brought into the district, except that trustees of a county high school district may only, whether or not the county high school district is unified with an elementary district under the provisions of 20-6-312, authorize a levy of not more than 2 mills on the district, plus any amount attributable to improvements or personal property being brought into the district, and a K-12 school district formed under the provisions of 20-6-701 may authorize a levy of not more than 3 mills on the district, plus any amount attributable to improvements or personal property being brought into the district, for the operation of an adult education program.

     (4)(5)  Whenever the trustees of a district decide to offer an adult education program during the ensuing school fiscal year, they shall budget for the cost of the program in the adult education fund of the final budget. Any expenditures in support of the adult education program under the final adult education budget must be made in accordance with the financial administration provisions of this title for a budgeted fund.

     (5)(6)  When a tax levy for an adult education program is included as a revenue item on the final adult education budget, the county superintendent shall report the levy requirement to the county commissioners on the fourth Monday of August and a levy on the district must be made by the county commissioners in accordance with 20-9-142."



     Section 23.  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 upon approval by the electorate, 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 24.  Section 20-9-122, MCA, is amended to read:

     "20-9-122.  Statement of district, city, and town valuations. (1) By the second first Monday of July April, the department of revenue shall deliver to the county superintendent and to each city or town clerk a statement showing separately for each district and each city or town in the county the final statement of the prior year's total assessed value and the total taxable value of all property in the districts, cities, or towns, as these valuations appear in the property tax record.

     (2)  In the case of a joint school district, the department of revenue shall, at the time of delivering the statement to the county superintendent, send a statement of the assessed value and taxable value of the portion of the joint school district situated in the appropriate county to the county superintendents and to the county commissioners of each county in which a part of the joint school district is situated."



     Section 25.  Section 20-9-141, MCA, is amended to read:

     "20-9-141.  Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:

     (a)  Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:

     (i)  the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and

     (ii)  any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.

     (b)  Determine the money available for the reduction of the property tax on the district for the general fund by totaling:

     (i)  the general fund balance reappropriated, as established under the provisions of 20-9-104;

     (ii)  amounts received in the last fiscal year for which revenue reporting was required for each of the following:

     (A)  tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323, except the amount of tuition received for a pupil who is a child with disabilities in excess of the amount received for a pupil without disabilities, as calculated under 20-5-323(2);

     (B)  revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;

     (C)  oil and natural gas production taxes;

     (D)  interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);

     (E)  revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and

     (F)  any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid; and

     (iii)  pursuant to subsection (4) (5), anticipated revenue from coal gross proceeds under 15-23-703.

     (c)  Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.

     (d)  Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.

     (2)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:

     (a)  the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and

     (b)  the taxable valuation of the district divided by 1,000.

     (3) The county superintendent shall submit a proposition on any tax increase to the electors of the county as provided in 20-9-353. If the election on any tax increase is approved by a majority of the electors at the election, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final district general fund budget.

     (3)(4)  The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.

     (4)(5)  For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."



     Section 26.  Section 20-9-142, MCA, is amended to read:

     "20-9-142.  Fixing and levying taxes by board of county commissioners. On the fourth Monday in August, the county superintendent shall place before the board of county commissioners the final adopted budget of the district. It If approved by the electors at the tax election, it is the duty of the board of county commissioners to fix and levy on all the taxable value of all the real and personal property within the district all district and county taxation required to finance, within the limitations provided by law, the final budget."



     Section 27.  Section 20-9-168, MCA, is amended to read:

     "20-9-168.  Emergency budget amendment tax levy. When a budget amendment has been adopted by the board of trustees under 20-9-161(2) and a district does not have sufficient funds, including insurance proceeds and reserves, to finance the budget amendment, the district may, upon approval by the electors at the tax election as provided in 20-9-353, levy a tax in the ensuing school year to fund the expenditures authorized by the budget amendment. The amount levied may not exceed the unfunded amount of the budget amendment."



     Section 28.  Section 20-9-214, MCA, is amended to read:

     "20-9-214.  Fees. (1) The trustees of a district may:

     (a)  require pupils in the commercial, industrial arts, music, domestic science, scientific, or agricultural courses to pay reasonable fees to cover the actual cost of breakage and of excessive supplies used; and

     (b)  charge pupils a reasonable fee, in effect on November 3, 1998, for a course or activity not reasonably related to a recognized academic and educational goal of the district or a course or activity held outside normal school functions if the course or activity is available from another source within the district. If the course or activity is not available from another source within the district, the trustees may charge no more than the fee in effect on November 3, 1998, or may submit the new fee or fee increase to the electors of the district for approval. The trustees may waive the fee in cases of financial hardship.

     (2)  The fees collected pursuant to subsection (1)(a) must be deposited in the general fund, and the fees collected pursuant to subsection (1)(b) must be deposited in a nonbudgeted fund as provided in 20-9-210."



     Section 29.  Section 20-9-302, MCA, is amended to read:

     "20-9-302.  School isolation. (1) The trustees of any district operating an elementary school of less than 10 ANB or a high school of less than 25 ANB for 2 consecutive years shall apply to have the school classified as an isolated school. The application shall must be submitted by the trustees to the county superintendent by May 1 of the second consecutive year that enrollment falls below the amount specified in this subsection. Such The application shall must include:

     (a)  the name of each pupil who will attend the school during the ensuing school fiscal year with the distance the pupil resides from the nearest county road or highway;

     (b)  a description of conditions affecting transportation such as poor roads, mountains, rivers, or other obstacles to travel, the distance the school is from the nearest open school having room and facilities for the pupils of such the school, or any other condition that would result in an unusual hardship to the pupils of the school if they were transported to another school; and

     (c)  any other information prescribed by the superintendent of public instruction.

     (2)  The county superintendent shall submit the applications to the board of county commissioners (budget board) for their consideration on or before May 15 March 1. The budget board shall approve or disapprove the application on the basis of the criteria established by the superintendent of public instruction. The budget board also may approve an application because of the existence of other conditions which that would result in an unusual hardship to the pupils of such the school if they were transported to another school.

     (3)  When an application is approved, the county superintendent shall submit such the application to the superintendent of public instruction before June 1 March 15. The superintendent of public instruction shall approve or disapprove such the application for isolated classification by the fourth Monday of June April 15 on the basis of the information supplied by the application or objective information the superintendent of public instruction may collect on his own initiative. No An elementary or high school shall may not be considered an isolated school until the approval of the superintendent of public instruction has been received."



     Section 30.  Section 20-9-308, MCA, is amended to read:

     "20-9-308.  BASE budgets and maximum general fund budgets. (1) The trustees of a district shall adopt a general fund budget that:

     (a)  except as provided in subsection (2), is at least equal to the BASE budget established for the district; or and,

     (b)  except as provided in section 3, Chapter 38, Special Laws of November 1993, and subsection (4) (3) of this section, does not exceed the maximum general fund budget established for the district.

     (2)  (a) If the BASE budget for a district for the school fiscal year is greater than the general fund budget of the district for the prior school fiscal year, the trustees of the district:

     (i)  shall increase the general fund budget by at least:

     (A)  25% of the range between the district general fund budget for the school fiscal year ending June 30, 1994, and the BASE budget for the district for the school fiscal year beginning July 1, 1994;

     (B)  33.3% of the range between the district general fund budget for the school fiscal year ending June 30, 1995, and the BASE budget for the district for the school fiscal year beginning July 1, 1995;

     (C)  50% of the range between the district general fund budget for the school fiscal year ending June 30, 1996, and the BASE budget for the district for the school fiscal year beginning July 1, 1996; or

     (D)  the remainder of the range between the district general fund budget for the school fiscal year ending June 30, 1997, and the BASE budget for the district for the school fiscal year beginning July 1, 1997;

     (ii) may increase the general fund budget beyond the amount in subsection (2)(a)(i) but not by more than 4% of the previous year's general fund budget or by more than 4% of the previous year's general fund per-ANB multiplied by the current year's ANB for budgeting purposes pursuant to subsection (2)(b).

     (b)  The trustees shall submit a proposition on any amount exceeding the limitations in subsection (2)(a)(i) to the electors of the district, as provided in 20-9-353.

     (3)(2)  (a) Whenever the trustees of a district adopt a general fund budget that exceeds the BASE budget for the district but does not exceed the maximum general fund budget for the district, the trustees shall submit a proposition to the electors of the district, as provided in 20-9-353, for any budget amount that exceeds the greater of the:

     (i) previous year's general fund budget amount; or

     (ii) the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes.

     (b)  A general fund budget adopted under this subsection (3) (2) may not exceed the greater of:

     (i)  104% of the previous year's general fund budget as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993; or

     (ii) 104% of the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993.

     (4)  (a) If the maximum general fund budget for a district for an ensuing school fiscal year is less than the general fund budget for the district for the current school fiscal year, as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993, the trustees of the district may not adopt a general fund budget for the ensuing school fiscal year that is greater than  the district's general fund budget for the current school fiscal year.

     (3)  (a) The trustees may adopt a general fund budget that is greater than the maximum general fund budget only if the adopted budget for the previous year was greater than the maximum general fund budget for the previous year. The adopted budget may not exceed the adopted budget for the previous year.

     (b)  Except for the school fiscal year beginning July 1, 1994, the The trustees of the district shall submit a proposition to raise any general fund budget amount that is in excess of the maximum general fund budget for the district to the electors who are qualified under 20-20-301 to vote on the proposition, as provided in 20-9-353.

     (5)(4)  Whenever the trustees of a district adopt a general fund budget that does not exceed the BASE budget for the district, the trustees shall finance this amount with The BASE budget for the district must be financed by the following sources of revenue:

     (a)  state equalization aid as provided in 20-9-343, including any guaranteed tax base aid for which the district may be eligible, as provided in 20-9-366 through 20-9-369;

     (b)  county equalization aid, as provided in 20-9-331 and 20-9-333;

     (c)  a district levy for support of a school not approved as an isolated school under the provisions of 20-9-302;

     (d)  payments in support of special education programs under the provisions of 20-9-321;

     (e)  nonlevy revenue as provided in 20-9-141; and

     (f)  a BASE budget levy on the taxable value of all property within the district.

     (6)(5)  The over-BASE budget amount of a district must be financed by a levy on the taxable value of all property within the district or other revenue available to the district as provided in 20-9-141."



     Section 31.  Section 20-9-311, MCA, is amended to read:

     "20-9-311.  Calculation of average number belonging (ANB). (1) Average number belonging (ANB) must be computed as follows:

     (a)  compute an average enrollment by adding a count of regularly enrolled full-time pupils who were enrolled as of the first Monday in October of the prior school fiscal year to a count of regularly enrolled pupils on February 1 January 5 of the prior school fiscal year, or the nearest school day if those dates do not fall on a school day, and divide the sum by two; and

     (b)  multiply the average enrollment calculated in subsection (1)(a) by the sum of the pupil-instruction and the approved pupil-instruction-related days for the current school fiscal year and divide by 180.

     (2)  For the purpose of calculating ANB under subsection (1), up to 7 approved pupil-instruction-related days may be included in the calculation.

     (3)  When a school district has approval to operate less than 180 school days under 20-9-806, the total ANB must be calculated in accordance with the provisions of 20-9-805.

     (4)  Enrollment for a part of a morning session or a part of an afternoon session by a pupil must be counted as enrollment for one-half day.

     (5)  In calculating the ANB for pupils enrolled in a program established under 20-7-117(1), enrollment at a regular session of the program for at least 2 hours of either a morning or an afternoon session must be counted as one-half pupil for ANB purposes. The ANB for a kindergarten student may not exceed one-half for each kindergarten pupil.

     (6)  When a pupil has been absent, with or without excuse, for more than 10 consecutive school days, the pupil may not be included in the enrollment count used in the calculation of the ANB unless the pupil resumes attendance prior to the day of the enrollment count.

     (7)  The enrollment of prekindergarten pupils, as provided in 20-7-117, may not be included in the ANB calculations.

     (8)  The average number belonging of the regularly enrolled, full-time pupils for the public schools of a district must be based on the aggregate of all the regularly enrolled, full-time pupils attending the schools of the district, except that when:

     (a)  (i) a school of the district is located more than 20 miles beyond the incorporated limits of a city or town located in the district and at least 20 miles from any other school of the district, the number of regularly enrolled, full-time pupils of the school must be calculated separately for ANB purposes and the district must receive a basic entitlement for the school calculated separately from the other schools of the district;

     (ii) a school of the district is located more than 20 miles from any other school of the district and incorporated territory is not involved in the district, the number of regularly enrolled, full-time pupils of the school must be calculated separately for ANB purposes and the district must receive a basic entitlement for the school calculated separately from the other schools of the district;

     (iii) the superintendent of public instruction approves an application not to aggregate when conditions exist affecting transportation, such as poor roads, mountains, rivers, or other obstacles to travel, or when any other condition exists that would result in an unusual hardship to the pupils of the school if they were transported to another school, the number of regularly enrolled, full-time pupils of the school must be calculated separately for ANB purposes and the district must receive a basic entitlement for the school calculated separately from the other schools of the district; or

     (iv) two or more elementary districts consolidate or annex under the provisions of 20-6-203, 20-6-205, or 20-6-208; two or more high school districts consolidate or annex under the provisions of 20-6-315 or 20-6-317; or two or more K-12 districts consolidate or annex under Title 20, chapter 6, part 4, the ANB and the basic entitlements of the component districts must be calculated separately for a period of 3 years following the consolidation or annexation;

     (b)  a junior high school has been approved and accredited as a junior high school, all of the regularly enrolled, full-time pupils of the junior high school must be considered as high school district pupils for ANB purposes;

     (c)  a middle school has been approved and accredited, all pupils below the 7th grade must be considered elementary school pupils for ANB purposes and the 7th and 8th grade pupils must be considered high school pupils for ANB purposes; or

     (d)  a school has not been accredited by the board of public education, the regularly enrolled, full-time pupils attending the nonaccredited school are not eligible for average number belonging calculation purposes, nor will an average number belonging for the nonaccredited school be used in determining the BASE funding program for the district.

     (9)  When 11th or 12th grade students are regularly enrolled on a part-time basis, high schools may calculate the ANB to include an "equivalent ANB" for those students. The method for calculating an equivalent ANB must be determined in a manner prescribed by the superintendent of public instruction.

     (10) For average daily attendance reporting purposes, districts shall provide the superintendent of public instruction with annual reports of school attendance for regularly enrolled students and special education students, using a format determined by the superintendent."



     Section 32.  Section 20-9-314, MCA, is amended to read:

     "20-9-314.  Procedures for determining eligibility and amount of increased average number belonging due to unusual enrollment increase. A district that anticipates an unusual increase in enrollment in the ensuing school fiscal year, as provided for in 20-9-313(4), may increase its basic entitlement and total per-ANB entitlement for the ensuing school fiscal year in accordance with the following provisions:

     (1)  Prior to May 10 March 15, the district shall estimate the elementary or high school enrollment to be realized during the ensuing school fiscal year, based on as much factual information as may be available to the district.

     (2)  No later than May 10 March 15, the district shall submit its application for an unusual enrollment increase by elementary or high school level to the superintendent of public instruction. The application must include:

     (a)  the enrollment for the current school fiscal year;

     (b)  the average number belonging used to calculate the basic entitlement and total per-ANB entitlement for the current school fiscal year;

     (c)  the average number belonging that will be used to calculate the basic entitlement and total per-ANB entitlement for the ensuing school fiscal year;

     (d)  the estimated enrollment, including the factual information on which the estimate is based, as provided in subsection (1); and

     (e)  any other information or data that may be requested by the superintendent of public instruction.

     (3)  The superintendent of public instruction shall immediately review all the factors of the application and shall approve or disapprove the application or adjust the estimated average number belonging for the ensuing ANB calculation period. After approving an estimate, with or without adjustment, the superintendent of public instruction shall:

     (a)  determine the percentage increase that the estimated enrollment increase is over the current enrollment; and

     (b)  approve an increase of the average number belonging used to establish the ensuing year's basic entitlement and total per-ANB entitlement in accordance with subsection (5) if the increase in subsection (3)(a) is at least 6%.

     (4)  The superintendent of public instruction shall notify the district of the decision by the fourth Monday in June April 15.

     (5)  Whenever an unusual enrollment increase is approved by the superintendent of public instruction, the increase of the average number belonging used to establish the basic entitlement and total per-ANB entitlement for the ensuing ANB calculation period is the difference between the enrollment for the ensuing school fiscal year and 106% of the current enrollment. The amount determined is the maximum allowable increase added to the average number belonging for the purpose of establishing the ensuing year's basic entitlement and total per-ANB entitlement.

     (6)  Any entitlement increases resulting from provisions of this section must be reviewed at the end of the ensuing school fiscal year. If the actual enrollment is less than the average number belonging used for BASE funding program and entitlement calculations, the superintendent of public instruction shall revise the total per-ANB entitlement and basic entitlement calculations using the actual average number belonging. All total per-ANB entitlements received by the district in excess of the revised entitlements are overpayments subject to the refund provisions of 20-9-344(4)."



     Section 33.  Section 20-9-353, MCA, is amended to read:

     "20-9-353.  Additional financing levy for general fund, retirement fund, adult education fund, tuition fund, and nonoperating fund -- election for authorization to impose -- definition of tax increase. (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)(1)  When the trustees of a district determine that a voted amount of financing tax increase is required for the general fund budget, the retirement fund budget, the adult education fund budget, the tuition fund budget, or the nonoperating fund budget, the trustees shall submit the proposition or propositions to finance the additional amount of general fund financing tax increase to the electors who are qualified under 20-20-301 to vote upon on the proposition at the tax election. In determining whether a tax increase is necessary, the trustees may consider each fund individually or in combination with another fund. The special election must be called and conducted in the manner prescribed by this title for school elections.

     (2) The ballot for the election must state the amount of money to be financed, 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, for the purpose of (insert the purpose for which the additional financing is made)?

     SHALL THE (INSERT THE FUND NAME OR NAMES) LEVY TAX BE INCREASED ANNUALLY BY (STATE THE NUMBER OF MILLS) MILLS IN THE FOLLOWING MANNER?

     [] FOR budget authority and any levy increasing the district levy by (state the number of mills) mills to support the district's (insert the fund or funds) budget.

     [] AGAINST budget authority and any levy increasing the district levy by (state the number of mills) mills to support the district's (insert the fund or funds) budget.

     (3)  If the election on any additional financing for the general fund levy 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, retirement fund, adult education fund, tuition fund, or nonoperating fund budgets. The trustees shall certify any additional levy amount authorized by the special election on the budget form that is submitted to the county superintendent, and the county commissioners shall levy 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.

     (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)  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).

     (4) If the election on any additional levy is not approved by a majority of the electors voting, the proposition fails and the trustees shall:

     (a) impose a levy that will generate no more than the amount of property tax actually collected in the prior year, plus any amount attributable to improvements or personal property being brought into the district; and

     (b) shall use the amount authorized to fund, in order:

     (i) the BASE budget;

     (ii) the retirement budget; and

     (iii) the tuition budget.

     (c) Any amount remaining after funding the budgets listed in subsection (4)(b) may be used to fund the remaining general fund budget, the adult education fund budget, or the nonoperating fund budget.

     (5) As used in this section, "tax increase" has the meaning provided in Article VIII, section 17, of the Montana constitution."



     Section 34.  Section 20-9-366, MCA, is amended to read:

     "20-9-366.  Definitions. As used in 20-9-366 through 20-9-369, the following definitions apply:

     (1)  "County retirement mill value per elementary ANB" or "county retirement mill value per high school ANB" means the sum of the taxable valuation in the previous year of all property in the county divided by 1,000, with the quotient divided by the total county elementary ANB count or the total county high school ANB count used to calculate the elementary school districts' and high school districts' current year total per-ANB entitlement amounts.

     (2)(1)  (a) "District guaranteed tax base ratio" for guaranteed tax base funding for the BASE budget of an eligible district means the taxable valuation in the previous year of all property in the district divided by the sum of the district's current year direct state aid and 40% of the special education allowable cost payment.

     (b)  "District mill value per ANB", for retirement and school facility entitlement purposes, means the taxable valuation in the previous year of all property in the district divided by 1,000, with the quotient divided by the ANB count of the district used to calculate the district's current year total per-ANB entitlement amount.

     (3)(2)  (a) "Statewide elementary guaranteed tax base ratio" or "statewide high school guaranteed tax base ratio", for guaranteed tax base funding for the BASE budget of an eligible district, means the sum of the taxable valuation in the previous year of all property in the state, multiplied by 175% and divided by the total sum of either the state elementary school districts' or the high school districts' current year total direct state aid and 40% of special education allowable cost amounts.

     (b)  "Statewide mill value per elementary ANB" or "statewide mill value per high school ANB", for school facility entitlement and retirement guaranteed tax base purposes, means the sum of the taxable valuation in the previous year of all property in the state, multiplied by 121% and divided by 1,000, with the quotient divided by the total state elementary ANB count or the total state high school ANB amount used to calculate the elementary school districts' and high school districts' current year total per-ANB entitlement amounts."



     Section 35.  Section 20-9-367, MCA, is amended to read:

     "20-9-367.  Eligibility to receive guaranteed tax base aid or state advance or reimbursement for school facilities. (1) If the district guaranteed tax base ratio of any elementary or high school district is less than the corresponding statewide elementary or high school guaranteed tax base ratio, the district may receive guaranteed tax base aid based on the number of mills levied in the district in support of up to 40% of the basic entitlement, up to 40% of the total per-ANB entitlement, and up to 40% of the special education allowable cost payment budgeted within the general fund budget.

     (2)  If the county district retirement mill value per elementary ANB or the county district retirement mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or high school ANB, the county district may receive guaranteed tax base aid based on the number of mills levied in the county district in support of the retirement fund budgets of the respective elementary or high school districts in the county.

     (3)  For the purposes of 20-9-370 and 20-9-371, if the district mill value per elementary ANB or the district mill value per high school ANB is less than the corresponding statewide mill value per elementary ANB or statewide mill value per high school ANB, the district may receive a state advance or reimbursement for school facilities in support of the debt service fund."



     Section 36.  Section 20-9-368, MCA, is amended to read:

     "20-9-368.  Amount of guaranteed tax base aid. (1) The amount of guaranteed tax base aid per ANB that a county district may receive in support of the retirement fund budgets of the elementary school districts in the county budget is the difference between the county district mill value per elementary ANB and the statewide mill value per elementary ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the elementary districts in the county budget.

     (2)  The amount of guaranteed tax base aid per ANB that a county may receive in support of the retirement fund budgets of the high school districts in the county is the difference between the county mill value per high school ANB and the statewide mill value per high school ANB, multiplied by the number of mills levied in support of the retirement fund budgets for the high school districts in the county.

     (3)(2)  The amount of guaranteed tax base aid that a district may receive in support of up to 40% of the basic entitlement, up to 40% of the total per-ANB entitlement budgeted within the general fund budget, and up to 40% of the special education payment is calculated in the following manner:

     (a)  multiply the sum of the district's direct state aid and 40% of the special education allowable cost payment by the corresponding statewide guaranteed tax base ratio;

     (b)  subtract the taxable valuation of the district from the product obtained in subsection (3)(a); and

     (c)  divide the remainder by 1,000 to determine the equivalent to the dollar amount of guaranteed tax base aid for each mill levied.

     (4)(3)  Guaranteed tax base aid provided to any county or district under this section is earmarked to finance the fund or portion of the fund for which it is provided. If a county or district receives more guaranteed tax base aid than it is entitled to, the excess must be returned to the state as required by 20-9-344. For a K-12 district, the elementary and high school aid under this section must be prorated on an ANB basis."



     Section 37.  Section 20-9-369, MCA, is amended to read:

     "20-9-369.  Duties of superintendent of public instruction and department of revenue. (1) The superintendent of public instruction shall administer the distribution of guaranteed tax base aid by:

     (a)  providing each school district and county superintendent, by March February 1 of each year, with the preliminary statewide and district guaranteed tax base ratios and, by May 1 April 15 of each year, with the final statewide and district guaranteed tax base ratios, for use in calculating the guaranteed tax base aid available for the ensuing school fiscal year;

     (b)  providing each school district and county superintendent, by March February 1 of each year, with the preliminary statewide, county, and district mill values per ANB and, by May 1 April 15 of each year, with the final statewide, county, and district mill values per ANB, for use in calculating the guaranteed tax base aid and state advance and reimbursement for school facilities available to counties and districts for the ensuing school fiscal year;

     (c)  requiring each county and district that qualifies and applies for guaranteed tax base aid to report to the county superintendent all budget and accounting information required to administer the guaranteed tax base aid;

     (d)  keeping a record of the complete data concerning appropriations available for guaranteed tax base aid and the entitlements for the aid of the counties and districts that qualify;

     (e)  distributing the guaranteed tax base aid entitlement to each qualified county or district from the appropriations for that purpose.

     (2)  The superintendent shall adopt rules necessary to implement 20-9-366 through 20-9-369.

     (3)  The department of revenue shall provide the superintendent of public instruction by December April 1 of each year a final determination of the taxable value of property within each school district and county of the state reported to the department of revenue based on information delivered to the county clerk and recorder as required in 15-10-305.

     (4)  The superintendent of public instruction shall calculate the district and statewide guaranteed tax base ratios by applying the prior year's direct state aid payment."



     Section 38.  Section 20-9-404, MCA, is amended to read:

     "20-9-404.  Contracts and bonds for joint construction. The trustees of a school district may enter into a contract with the trustees of any school district within the county or with any school district in an adjoining county to provide for the joint construction of a facility upon terms and conditions mutually agreed upon between the districts. The trustees of any district executing a contract in accordance with this section may, upon approval of the electors, levy taxes and issue bonds for the purpose of constructing the facilities authorized by this section."



     Section 39.  Section 20-9-501, MCA, is amended to read:

     "20-9-501.  Retirement fund. (1) The trustees of a district employing personnel who are members of the teachers' retirement system or the public employees' retirement system or who are covered by unemployment insurance or who are covered by any federal social security system requiring employer contributions shall establish a retirement fund for the purposes of budgeting and paying the employer's contributions to the systems. The district's contribution for each employee who is a member of the teachers' retirement system must be calculated in accordance with Title 19, chapter 20, part 6. The district's contribution for each employee who is a member of the public employees' retirement system must be calculated in accordance with 19-3-316. The district's contributions for each employee covered by any federal social security system must be paid in accordance with federal law and regulation. The district's contribution for each employee who is covered by unemployment insurance must be paid in accordance with Title 39, chapter 51, part 11.

     (2)  The trustees of a district required to make a contribution to a system referred to in subsection (1) shall include in the retirement fund of the final budget the estimated amount of the employer's contribution. After the final retirement fund budget has been adopted, the trustees shall pay the employer contributions to the systems in accordance with the financial administration provisions of this title.

     (3)  When the final retirement fund budget has been adopted, the county superintendent trustees shall establish the levy requirement by:

     (a)  determining the sum of the money available to reduce the retirement fund levy requirement by adding:

     (i)  any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;

     (ii)  oil and natural gas production taxes;

     (iii) anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325;

     (iv) coal gross proceeds taxes under 15-23-703;

     (v)(iv) any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the retirement fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the retirement fund. The retirement fund operating reserve may not be more than 35% of the final retirement fund budget for the ensuing school fiscal year and must be used for the purpose of paying retirement fund warrants issued by the district under the final retirement fund budget.

     (vi)(v)  any other revenue anticipated that may be realized in the retirement fund during the ensuing school fiscal year, excluding any guaranteed tax base aid.

     (b)  notwithstanding the provisions of subsection (8), subtracting the money available for reduction of the levy requirement, as determined in subsection (3)(a), from the budgeted amount for expenditures in the final retirement fund budget.

     (4)  The county superintendent shall:

     (a)  total the net retirement fund levy requirements separately for all elementary school districts, all high school districts, and all community college districts of the county, including any prorated joint district or special education cooperative agreement levy requirements; and

     (b)  report each levy requirement to the county commissioners on the fourth Monday of August as the respective county levy requirements for elementary district, high school district, and community college district retirement funds.

     (4)  The trustees shall submit a proposition on any tax increase to the qualified electors of the district as provided in 20-9-353. If approved by a majority of the electors voting, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final district retirement fund budget.

     (5)  The county commissioners shall fix and set the county district levy in accordance with 20-9-142.

     (6)  The net retirement fund levy requirement for a joint elementary district or a joint high school district must be prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint district is distributed by pupil residence in each county. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county as provided in 20-9-151.

     (7)(6)  The net retirement fund levy requirement for districts that are members of special education cooperative agreements must be prorated to each county cooperative in which the district is located in the same proportion as the special education cooperative budget is prorated to the member school districts. The county superintendents of the counties district affected shall jointly determine the net retirement fund levy requirement for each county district in the same manner as provided in 20-9-151, and the county commissioners shall fix and levy the net retirement fund levy for each county district in the same manner as provided in 20-9-152.

     (8)(7)  The county superintendent trustees shall calculate the number of mills to be levied on the taxable property in the county district to finance the retirement fund net levy requirement by dividing the amount determined in subsection (4)(a) by the sum of:

     (a)  the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the superintendent of public instruction; and

     (b)  the taxable valuation of the district divided by 1,000."



     Section 40.  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 the 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 41.  Section 20-9-506, MCA, is amended to read:

     "20-9-506.  Budgeting and net levy requirement for nonoperating fund. (1) The trustees of any district which that does not operate a school or will not operate a school during the ensuing school fiscal year shall adopt a nonoperating school district budget in accordance with the school budgeting provisions of this title. Such The nonoperating budget shall must contain the nonoperating fund and, when appropriate, a debt service fund. The nonoperating budget form shall must be promulgated and distributed by the superintendent of public instruction under the provisions of 20-9-103.

     (2)  After the adoption of a final budget for the nonoperating fund, the county superintendent shall compute the net levy requirement for such the fund by subtracting from the amount authorized by such the budget the sum of:

     (a)  the end-of-the-year cash balance of the nonoperating fund or, if it is the first year of nonoperation, the cash balance determined under the transfer provisions of 20-9-505;

     (b)  the estimated state and county transportation reimbursements; and

     (c)  any other moneys money that may become available during the ensuing school fiscal year.

     (3)  The county superintendent shall report the net nonoperating fund levy requirement and any net debt service fund levy requirement determined under the provisions of 20-9-439 to the county commissioners on the fourth Monday of August, and such levies shall be made on the district by the county commissioners in accordance with 20-9-142.

     (3)  The trustees shall submit a proposition on any tax increase to the electors as provided in 20-9-353. If the election is approved, the trustees may use all or any portion of the authorized amount in adopting the final district nonoperating fund budget."



     NEW SECTION.  Section 42.  Budgeting and levy requirement for tuition fund. (1) The trustees of any district that charges tuition shall establish a tuition fund for the purposes of budgeting and paying tuition under agreements pursuant to 20-5-320 and 20-5-321 according to the rates prescribed in 20-5-323. The tuition budget must contain the tuition fund and must be promulgated and distributed by the superintendent of public instruction.

     (2) Prior to adopting the final tuition budget, the trustees shall submit a proposition on any tax increase to the electors of the district as provided in 20-9-353. If the proposition is approved, the trustees may use all or any portion of the authorized amount in adopting the final tuition fund budget.

     (3) Upon approval by the electorate, the county commissioners shall fix and set the district levy in accordance with 20-9-142.



     Section 43.  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 the 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 the provisions of 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 The facilities erected or maintained under this section may be located in either Montana or the adjoining state."



     Section 44.  Section 20-10-124, MCA, is amended to read:

     "20-10-124.  Private party contract for transportation -- individual transportation contract. (1) When the trustees contract with any private party to provide transportation to eligible transportees, the private party shall comply with the regulations of the board of public education for the standards of equipment, operation and safety of the school bus, and qualifications of the driver. The trustees may require added safeguards by supplementing the board of public education policies in the contract with additional requirements for bus specifications, age of drivers, liability insurance, operating speed, or any other contractual condition considered necessary by the trustees.

     (2)  Any school bus transportation by a private party or individual transportation that is furnished by a district must be under contract, and district, county, or state money may not be paid for transportation services to any person or firm who does not hold a legal contract with the district. Transportation contracts for the ensuing year must be completed by the fourth Monday of June March 31, except when an eligible transportee establishes residence in the district after the fourth Monday of June March 31 and a contingency amount is included in the regular transportation budget or an emergency transportation budget is adopted.

     (3)  Transportation contracts between a district and a private party for the provision of school bus transportation must:

     (a)  be completed in triplicate, with one copy for the county superintendent, one copy for the private party, and one copy for the district;

     (b)  conform to the transportation law, policies of the board of public education, and rules of the superintendent of public instruction; and

     (c)  be signed by the presiding officer of the trustees and the private party.

     (4)  A transportation contract between a parent or guardian of an eligible transportee and a district for the provision of individual transportation is subject to the following requirements:

     (a)  it must be completed in quadruplicate, with one copy for the parent or guardian, one copy for the district, one copy for the county superintendent, and one copy for the superintendent of public instruction;

     (b)  it must be completed on forms promulgated by the superintendent of public instruction;

     (c)  the parent or guardian shall sign an affidavit attesting to the place of residence of the child or children; and

     (d)  it must be signed by the presiding officer of the trustees and the parent or guardian of the eligible transportees."



     Section 45.  Section 20-10-144, MCA, is amended to read:

     "20-10-144.  Computation of revenue and net tax levy requirements for district transportation fund budget. Before the second Monday of August, the county superintendent shall compute the revenue available to finance the transportation fund budget of each district. The county superintendent shall compute the revenue for each district on the following basis:

     (1)  The "schedule amount" of the budget expenditures that is derived from the rate schedules in 20-10-141 and 20-10-142 must be determined by adding the following amounts:

     (a)  the sum of the maximum reimbursable expenditures for all approved school bus routes maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate per bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus route approved by the county transportation committee and maintained by the district); plus

     (b)  the total of all individual transportation per diem reimbursement rates for the district as determined from the contracts submitted by the district multiplied by the number of pupil-instruction days scheduled for the ensuing school attendance year; plus

     (c)  any estimated costs for supervised home study or supervised correspondence study for the ensuing school fiscal year; plus

     (d)  the amount budgeted in the budget for the contingency amount permitted in 20-10-143, except if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the contingency amount on the budget must be reduced to the limitation amount and used in this determination of the schedule amount; plus

     (e)  any estimated costs for transporting a child out of district when the child has mandatory approval to attend school in a district outside the district of residence.

     (2)  (a) The schedule amount determined in subsection (1) or the total transportation fund budget, whichever is smaller, is divided by 2 and is used to determine the available state and county revenue to be budgeted on the following basis:

     (i)  one-half is the budgeted state transportation reimbursement, except that the state transportation reimbursement for the transportation of special education pupils under the provisions of 20-7-442 must be 50% of the schedule amount attributed to the transportation of special education pupils; and

     (ii) one-half is the budgeted county transportation fund reimbursement and must be financed in the manner provided in 20-10-146.

     (b)  When the district has a sufficient amount of fund balance for reappropriation and other sources of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero, any remaining amount of district revenue and fund balance reappropriated must be used to reduce the county financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to reduce the state financial obligation in subsection (2)(a)(i).

     (c)  The county revenue requirement for a joint district, after the application of any district money under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same proportion as the ANB of the joint district is distributed by pupil residence in each county.

     (3)  The total of the money available for the reduction of property tax on the district for the transportation fund must be determined by totaling:

     (a)  anticipated federal money received under the provisions of 20 U.S.C. 7701, et seq., or other anticipated federal money received in lieu of that federal act;

     (b)  anticipated payments from other districts for providing school bus transportation services for the district;

     (c)  anticipated payments from a parent or guardian for providing school bus transportation services for a child;

     (d)  anticipated or reappropriated interest to be earned by the investment of transportation fund cash in accordance with the provisions of 20-9-213(4);

     (e)  anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;

     (f)  anticipated revenue from coal gross proceeds under 15-23-703;

     (g)  anticipated oil and natural gas production taxes;

     (h)  anticipated local government severance tax payments for calendar year 1995 production;

     (i)  anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320 through 20-5-324;

     (j)  any other revenue anticipated by the trustees to be earned during the ensuing school fiscal year that may be used to finance the transportation fund; and

     (k)  any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund budget.

     (4)  The district levy requirement for each district's transportation fund must be computed by:

     (a)  subtracting the schedule amount calculated in subsection (1) from the total preliminary transportation budget amount; and

     (b)  subtracting the amount of money available to reduce the property tax on the district, as determined in subsection (3), from the amount determined in subsection (4)(a).

     (5) The trustees shall submit a proposition on any tax increase to the qualified electors of the district. The ballot for the election must state the 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 TRANSPORTATION FUND LEVY TAX BE INCREASED ANNUALLY BY (STATE THE NUMBER OF MILLS) MILLS IN THE FOLLOWING MANNER?

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

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

     (6) If approved by a majority vote of the electors voting at the election, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final transportation fund budget.

     (7) If the election on any additional levy is not approved by the majority vote of the electors voting at the election, the proposition fails and the trustees shall impose a levy to generate no more than the amount of property tax actually collected in the prior year, plus any amount attributable to improvements or personal property being brought into the district.

     (5)(8)  The transportation fund levy requirements determined in subsection (4) (5), if approved by the electors for each district, must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the transportation fund levy requirements for the district, and the levy must be made by the county commissioners in accordance with 20-9-142."



     Section 46.  Section 20-10-146, MCA, is amended to read:

     "20-10-146.  County transportation reimbursement. (1) The apportionment of the county transportation reimbursement by the county superintendent for school bus transportation or individual transportation that is actually rendered by a district in accordance with this title, board of public education transportation policy, and the transportation rules of the superintendent of public instruction must be the same as the state transportation reimbursement payment, except that:

     (a)  if any cash was used to reduce the budgeted county transportation reimbursement under the provisions of 20-10-144(2)(b), the annual apportionment is limited to the budget amount;

     (b)  when the county transportation reimbursement for a school bus has been prorated between two or more counties because the school bus is conveying pupils of more than one district located in the counties, the apportionment of the county transportation reimbursement must be adjusted to pay the amount computed under the proration; and

     (c)  when county transportation reimbursement is required under the mandatory attendance agreement provisions of 20-5-321.

     (2)  The county transportation net levy requirement for the financing of the county transportation fund reimbursements to districts is computed by:

     (a)  totaling the net requirement for all districts of the county, including reimbursements to a special education cooperative or prorated reimbursements to joint districts or reimbursements under the mandatory attendance agreement provisions of 20-5-321;

     (b)  determining the sum of the money available to reduce the county transportation net levy requirement by adding:

     (i)  anticipated money that may be realized in the county transportation fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;

     (ii) oil and natural gas production taxes;

     (iii) anticipated local government severance tax payments for calendar year 1995 production;

     (iv) coal gross proceeds taxes under 15-23-703;

     (v)  any fund balance available for reappropriation from the end-of-the-year fund balance in the county transportation fund;

     (vi) federal forest reserve funds allocated under the provisions of 17-3-213; and

     (vii) other revenue anticipated that may be realized in the county transportation fund during the ensuing school fiscal year; and

     (c)  subtracting the money available, as determined in subsection (2)(b), to reduce the levy requirement from the county transportation net levy requirement.

     (3) The county superintendent shall submit a proposition on any tax increase to the qualified electors of the district. The ballot for the election must state the 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 COUNTY TRANSPORTATION FUND LEVY TAX BE INCREASED ANNUALLY BY (STATE THE NUMBER OF MILLS) MILLS IN THE FOLLOWING MANNER?

     [] FOR increasing the county transportation levy by (state the number of mills) mills to support the county transportation budget.

     [] AGAINST increasing the county transportation levy by (state the number of mills) mills to support the county transportation budget.

     (4) If approved by a majority vote of the electors voting at the election, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final county transportation fund budget.

     (5) If the election on any additional levy is not approved by the majority vote of the electors voting at the election, the proposition fails and the commissioners shall impose a levy to generate no more than the amount of property tax actually collected in the prior year, plus any amount attributable to improvements or personal property being brought into the district.

     (3)(6) The net levy requirement determined in subsection (2)(c), if approved by the electors, must be reported to the county commissioners on the fourth Monday of August by the county superintendent, and a levy must be set by the county commissioners in accordance with 20-9-142.

     (4)(7)  The county superintendent shall apportion the county transportation reimbursement from the proceeds of the county transportation fund. The county superintendent shall order the county treasurer to make the apportionments in accordance with 20-9-212(2) and after the receipt of the semiannual state transportation reimbursement payments."



     Section 47.  Section 20-10-147, MCA, is amended to read:

     "20-10-147.  Bus depreciation reserve. (1) The trustees of a district owning a bus or a two-way radio used for purposes of transportation, as defined in 20-10-101, or for purposes of conveying pupils to and from school functions or activities may establish a bus depreciation reserve fund to be used for the conversion, remodeling, or rebuilding of a bus or for the replacement of a bus or radio.

     (2)  Whenever a bus depreciation reserve fund is established, the trustees may include in the district's budget, in accordance with the school budgeting provisions of this title, an amount each year that does not exceed 20% of the original cost of a bus or a two-way radio. The amount budgeted may not, over time, exceed 150% of the original cost of a bus or two-way radio. The If the annual revenue requirement for each district's bus depreciation reserve fund, determined within the limitations of this section, will require a tax increase, the trustees shall submit a proposition for the increase to the electors of the district. The ballot for the election must state the 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 BUS DEPRECIATION RESERVE FUND LEVY TAX BE INCREASED ANNUALLY BY (STATE THE NUMBER OF MILLS) MILLS IN THE FOLLOWING MANNER?

     [] FOR increasing the bus depreciation fund levy by (state the number of mills) mills to support the bus depreciation fund budget.

     [] AGAINST increasing the bus depreciation fund levy by (state the number of mills) mills to support the bus depreciation fund budget.

     (3) If approved by a majority vote of the electors voting at the election, the proposition is approved and the trustees may use all or any portion of the authorized amount in adopting the final bus depreciation fund budget.

     (4) If the election on any additional levy is not approved by the majority vote of the electors voting at the election, the proposition fails and the trustees shall impose a levy to generate no more than the amount of property tax actually collected in the prior year, plus any amount attributable to improvements or personal property being brought into the district.

     (5) The tax levy requirement, if approved by the electors, must be reported by the county superintendent to the county commissioners on the fourth Monday of August as the bus depreciation reserve fund levy requirement for that district, and a levy must be made by the county commissioners in accordance with 20-9-142.

     (3)(6)  Any expenditure of bus depreciation reserve fund money must be within the limitations of the district's final bus depreciation reserve fund budget and the school financial administration provisions of this title and may be made only to convert, remodel, or rebuild buses or to replace the buses or radios for which the bus depreciation reserve fund was created.

     (4)(7)  Whenever the trustees of a district maintaining a bus depreciation reserve fund sell all of the district's buses and consider it to be in the best interest of the district to transfer any portion or all of the bus depreciation reserve fund balance to any other fund maintained by the district, the trustees shall submit the proposition to the electors of the district. The electors qualified to vote at the election shall qualify under 20-20-301, and the election must be called and conducted in the manner prescribed by this title for school elections. If a majority of those electors voting at the election approve the proposed transfer from the bus depreciation reserve fund, the transfer is approved and the trustees shall immediately order the county treasurer to make the approved transfer."



     Section 48.  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 If there be is a conflict between the requirements of Title 13 and the provisions of this title regulating school elections, the provisions of this title shall must 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 49.  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 June 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 50.  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 51.  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 52.  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 53.  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 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."



     NEW SECTION.  Section 54.  Repealer. Sections 20-6-215 and 20-9-303, MCA, are repealed.



     NEW SECTION.  Section 55.  Transfer of funds. Money remaining as cash balances in each county's retirement fund must be prorated and reappropriated to each district.



     NEW SECTION.  Section 56.  Codification instruction. (1) [Section 9] is intended to be codified as an integral part of Title 20, chapter 6, part 2, and the provisions of Title 20, chapter 6, part 2, apply to [section 9].

     (2) [Section 42] is intended to be codified as an integral part of Title 20, chapter 9, part 5, and the provisions of Title 20, chapter 9, part 5, apply to [section 42].



     NEW SECTION.  Section 57.  Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.



     NEW SECTION.  Section 58.  Effective date -- applicability. [This act] is effective on passage and approval and applies to school fiscal years beginning on or after [the effective date of this act].

- END -




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