House Bill No. 169
Introduced By zook, van valkenburg
By Request of the Legislative Finance Committee
A Bill for an Act entitled: "An Act generally revising and clarifying the laws governing appropriations and the administration of state government finances; clarifying the treasury funds subject to appropriation; revising and clarifying the deposit of certain funds; revising the statutory appropriation of certain funds; conforming the administration of retirement systems to constitutional revisions; authorizing the public employees' retirement board to hire their own personnel; limiting the administrative expenses of the retirement systems; amending sections 2-9-202, 2-15-1009, 2-18-812, 15-36-324, 15-36-325, 17-2-101, 17-2-102, 17-2-103, 17-2-121, 17-3-221, 17-3-222, 17-6-201, 17-7-402, 17-7-502, 17-8-101, 19-2-404, 19-2-408, 19-2-502, 19-5-404, 19-6-709, 19-8-504, 19-9-702, 19-9-1007, 19-13-604, 19-13-1006, 19-13-1009, 19-17-301, 19-18-512, 19-19-205, 19-19-305, 19-19-506, 19-20-203, 19-20-501, 19-20-605, 50-3-109, 61-3-321, and 76-13-114, MCA; repealing sections 19-9-208, 19-13-615, 19-18-513, 19-18-606, and 19-20-606, MCA; and providing an effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 2-9-202, MCA, is amended to read:
"2-9-202. Apportionment of costs -- creation of deductible reserve. (1) The department of administration shall
apportion the costs of all insurance purchased under 2-9-201 to the individual state participants, and the costs shall must be
paid to the department subject to appropriations by the legislature.
(2) The department, if it elects to utilize use a deductible insurance plan, is authorized to charge the individual state
participants an amount equal to the cost of a full-coverage insurance plan until such time as a deductible reserve is
established. In each subsequent year, the department may charge a sufficient amount over the actual cost of the deductible
insurance to replenish such the deductible reserves.
(3) The department may accumulate a self-insurance reserve fund sufficient to provide self-insurance for all liability
coverages that in its discretion the department considers should be self-insured. Payments into the self-insurance reserve
fund must be made from a legislative appropriation for that purpose. Proceeds of the fund are statutorily appropriated, as
provided in 17-7-502, to must be used by the department to pay claims under parts 1 through 3 of this chapter.
Expenditures for actual and necessary expenses required for the efficient administration of the fund must be made from
temporary appropriations, as described in 17-7-501(1) or (2), made for that purpose.
(4) Money in reserve funds established under this section that is not needed to meet expected expenditures shall must be
invested and all proceeds of the investment credited to the fund."
Section 2. Section 2-15-1009, MCA, is amended to read:
"2-15-1009. Public employees' retirement board -- terms -- allocation. (1) There is a public employees' retirement board.
(2) The board consists of six members appointed by the governor. The members are:
(a) three public employees who are active members of a public retirement system (not more than one of these members may be an employee of the same department);
(b) one retired public employee who is an inactive member of the public employees' retirement system; and
(c) two members at large.
(3) The term of office for each member is 5 years.
(4) The board is allocated to the department for administrative purposes only as prescribed in 2-15-121. The board shall hire necessary employees as provided in 19-2-404.
(5) Members of the board shall must be compensated and receive travel expenses as provided for in 2-15-124."
Section 3. Section 2-18-812, MCA, is amended to read:
"2-18-812. Alternatives to conventional insurance for providing state employee group benefits authorized -- requirements. The department may establish alternatives to conventional insurance for providing state employee group benefits. The requirements for providing alternatives to conventional insurance are as follows:
(1) The department must shall maintain state employee group benefit plans on an actuarially sound basis.
(2) The department must shall maintain reserves sufficient to liquidate the unrevealed claims liability and other liabilities
of state employee group benefit plans.
(3) The department must shall deposit all reserve funds and premiums paid to a state employee group benefit plan, and the
deposits are statutorily appropriated, as provided in 17-7-502, to the department to must be expended for claims under the
plan.
(4) The department must shall deposit income earned from the investment of a state employee group benefit plan's reserve
fund into the account established under subsection (3) of this section in order to offset the costs of administering the plan.
Expenditures for actual and necessary expenses required for the efficient administration of the plan must be made from
temporary appropriations, as described in 17-7-501(1) or (2), made for that purpose.
(5) The department shall, prior to implementation of any alternative to conventional insurance, present to the advisory
council the evidence upon which the department has concluded that the alternative method will be more efficient, less
costly, or otherwise superior to contracting for conventional insurance. The department may not implement any full
self-insurance alternative prior to July 1, 1981.
(6) The provisions of Title 33 shall do not apply to the department when exercising the powers and duties provided for in
this section."
Section 4. Section 15-36-324, MCA, is amended to read:
"15-36-324. Distribution of taxes. (1) For each calendar quarter, the department of revenue shall determine the amount of tax, late payment interest, and penalty collected under this part. For purposes of distribution of the taxes to county and school taxing units, the department shall determine the amount of oil and natural gas production taxes paid on production from pre-1985 wells, post-1985 wells, and horizontally drilled wells located in the taxing unit.
(2) Except as provided in subsections (3) and (4), oil production taxes must be distributed as follows:
(a) The amount equal to 41.6% of the oil production taxes, including late payment interest and penalty, collected under this part must be distributed as provided in subsection (7).
(b) The remaining 58.4% of the oil production taxes, plus accumulated interest earned on the amount allocated under this
subsection (2)(b), must be deposited in the agency state special revenue fund in the state treasury and transferred to the
county and school taxing units for distribution as provided in subsection (8).
(3) The amount equal to 100% of the oil production taxes, including late payment interest and penalty, collected from working interest owners on production from post-1985 wells occurring during the first 12 months of production must be distributed as provided in subsection (7).
(4) The amount equal to 100% of the oil production taxes, including late payment interest and penalty, collected under this part on production from horizontally drilled wells and on the incremental production from horizontally recompleted wells occurring during the first 18 months of production must be distributed as provided in subsection (7).
(5) Except as provided in subsection (6), natural gas production taxes must be allocated as follows:
(a) The amount equal to 14.6% of the natural gas production taxes, including late payment interest and penalty, collected under this part must be distributed as provided in subsection (7).
(b) The remaining 85.4% of the natural gas production taxes, plus accumulated interest earned on the amount allocated
under this subsection (5)(b), must be deposited in the agency state special revenue fund in the state treasury and transferred
to the county and school taxing units for distribution as provided in subsection (8).
(6) The amount equal to 100% of the natural gas production taxes, including late payment interest and penalty, collected from working interest owners under this part on production from post-1985 wells occurring during the first 12 months of production must be distributed as provided in subsection (7).
(7) The department shall, in accordance with the provisions of 15-1-501(6), distribute the state portion of oil and natural gas production taxes, including late payment interest and penalty collected, as follows:
(a) 85% to the state general fund;
(b) 4.3% to the state special revenue fund for the purpose of paying expenses of the board as provided in 82-11-135; and
(c) 10.7% to be distributed as provided by 15-38-106(2).
(8) (a) For the purpose of distribution of the oil and natural gas production taxes from pre-1985 wells, the department shall each calendar quarter adjust the unit value determined under 15-36-323 according to the ratio that the oil and natural gas production taxes from pre-1985 wells collected during the calendar quarter for which the distribution occurs plus penalties and interest on delinquent oil and natural gas production taxes from pre-1985 wells bears to the total liability for the oil and natural gas production taxes from pre-1985 wells for the quarter for which the distribution occurs. The amount of oil and natural gas production taxes distributions must be calculated and distributed as follows:
(i) By the dates referred to in subsection (9), the department shall calculate and distribute to each eligible county the amount of oil and natural gas production taxes from pre-1985 wells for the quarter, determined by multiplying the unit value, as adjusted in this subsection (8)(a), by the units of production on which oil and natural gas production taxes from pre-1985 wells were owed for the calendar quarter for which the distribution occurs.
(ii) Any amount by which the total tax liability exceeds or is less than the total distributions determined in subsection (8)(a) must be calculated and distributed in the following manner:
(A) The excess amount or shortage must be divided by the total distribution determined for that period to obtain an excess or shortage percentage.
(B) The excess percentage must be multiplied by the distribution to each taxing unit, and this amount must be added to the distribution to each respective taxing unit.
(C) The shortage percentage must be multiplied by the distribution to each taxing unit, and this amount must be subtracted from the distribution to each respective taxing unit.
(b) Except as provided in subsection (8)(c), the county treasurer shall distribute the money received under subsection (9) from pre-1985 wells to the taxing units that levied mills in fiscal year 1990 against calendar year 1988 production in the same manner that all other property tax proceeds were distributed during fiscal year 1990 in the taxing unit, except that a distribution may not be made to a municipal taxing unit.
(c) The board of county commissioners of a county may direct the county treasurer to reallocate the distribution of oil and natural gas production tax money that would have gone to a taxing unit, as provided in subsection (8)(b), to another taxing unit or taxing units, other than an elementary school or high school, within the county under the following conditions:
(i) The county treasurer shall first allocate the oil and natural gas production taxes to the taxing units within the county in the same proportion that all other property tax proceeds were distributed in the county in fiscal year 1990.
(ii) If the allocation in subsection (8)(c)(i) exceeds the total budget for a taxing unit, the commissioners may direct the county treasurer to allocate the excess to any taxing unit within the county.
(d) The board of trustees of an elementary or high school district may reallocate the oil and natural gas production taxes distributed to the district by the county treasurer under the following conditions:
(i) The district shall first allocate the oil and natural gas production taxes to the budgeted funds of the district in the same proportion that all other property tax proceeds were distributed in the district in fiscal year 1990.
(ii) If the allocation under subsection (8)(d)(i) exceeds the total budget for a fund, the trustees may allocate the excess to any budgeted fund of the school district.
(e) For all production from post-1985 wells and horizontally drilled wells completed after December 31, 1993, the county treasurer shall distribute oil and natural gas production taxes received under subsections (2)(b) and (5)(b) between county and school taxing units in the relative proportions required by the levies for state, county, and school district purposes in the same manner as property taxes were distributed in the preceding fiscal year.
(f) The allocation to the county in subsection (8)(e) must be distributed by the county treasurer in the relative proportions required by the levies for county taxing units and in the same manner as property taxes were distributed in the preceding fiscal year.
(g) The money distributed in subsection (8)(e) that is required for the county mill levies for school district retirement obligations and transportation schedules must be deposited to the funds established for these purposes.
(h) The oil and natural gas production taxes distributed under subsection (8)(b) that are required for the 6-mill university levy imposed under 20-25-423 and for the county equalization levies imposed under 20-9-331 and 20-9-333, as those sections read on July 1, 1989, must be remitted by the county treasurer to the state treasurer.
(i) The oil and natural gas production taxes distributed under subsection (8)(e) that are required for the 6-mill university levy imposed under 20-25-423, for the county equalization levies imposed under 20-9-331 and 20-9-333, and for the state equalization aid levy imposed under 20-9-360 must be remitted by the county treasurer to the state treasurer.
(j) The amount of oil and natural gas production taxes remaining after the treasurer has remitted the amounts determined in subsections (8)(h) and (8)(i) is for the exclusive use and benefit of the county and school taxing units.
(9) The department shall remit the amounts to be distributed in subsection (8) to the county treasurer by the following dates:
(a) On or before August 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending March 31 of the current year.
(b) On or before November 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending June 30 of the current year.
(c) On or before February 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending September 30 of the previous year.
(d) On or before May 1 of each year, the department shall remit to the county treasurer oil and natural gas production tax payments received for the calendar quarter ending December 31 of the previous calendar year.
(10) The department shall provide to each county by May 31 of each year the amount of gross taxable value represented by all types of production taxed under 15-36-304 for the previous calendar year multiplied by 60%. The resulting value must be treated as taxable value for county classification purposes and for county bonding purposes.
(11) The distribution to taxing units under this section is statutorily appropriated as provided in 17-7-502."
SECTION 5. SECTION 15-36-325, MCA, IS AMENDED TO READ:
"15-36-325. Local government severance tax payments for calendar year 1995 production -- distribution of payments -- not subject to I-105 limitations. (1) The local government severance tax imposed under 15-36-101, as that section read before January 1, 1996, for calendar year 1995 production is due as follows:
(a) for oil and natural gas production occurring in the first calendar quarter of 1995, the tax is due May 31, 1996;
(b) for oil and natural gas production occurring in the second calendar quarter of 1995, the tax is due May 31, 1997;
(c) for oil and natural gas production occurring in the third calendar quarter of 1995, the tax is due May 31, 1998; and
(d) for oil and natural gas production occurring in the fourth calendar quarter of 1995, the tax is due May 31, 1999.
(2) (a) If the taxpayer pays the entire local government severance tax liability for calendar year 1995 on or before June 30, 1996, the taxpayer must receive a 6% reduction in the total local government severance tax liability.
(b) Any payment of local government severance taxes for calendar year 1995 made on or before June 30, 1997, does not accrue interest. Any payment of local government severance taxes for calendar year 1995 made after June 30, 1997, must accrue interest at the rate of 1% a month or fraction of a month from July 1, 1997, to the date of payment. Any payment for the third quarter of 1995 received after May 31, 1998, and any payment for the fourth quarter of 1995 received after May 31, 1999, is subject to the late payment penalty provisions in 15-36-311.
(c) In the case of the dissolution of the operator or a change in the operator of any lease or unit, any unpaid local government severance tax for calendar year 1995 becomes due on the date of dissolution or on the date of the change in operator. The operator is subject to the provisions of subsection (2)(a) regarding the 6% tax liability reduction or the provisions of subsection (2)(b) regarding interest and penalties.
(3) The department shall determine the amount of tax collected under subsections (1) and (2) from within each taxing unit.
(4) For purposes of the distribution of local government severance taxes collected under this section, the department shall use the unit value of oil and gas for each taxing unit as determined in 15-36-323.
(5) The local government severance tax must be deposited in the agency state special revenue fund in the state treasury and
transferred to the county for distribution as provided in subsection (6).
(6) For the purpose of the distribution of the local government severance tax for calendar year 1995 production, the department shall adjust the unit value determined under this section according to the ratio that the local government severance taxes collected during the quarters for which the distribution occurs plus penalties and interest on delinquent local government severance taxes bears to the total liability for local government severance taxes for the quarters for which the distribution occurs. The taxes must be calculated and distributed as follows:
(a) By July 31 of each of the years 1996, 1997, 1998, and 1999, the department shall calculate and distribute to each eligible county the amount of local government severance tax for calendar year 1995 production, determined by multiplying the unit value, as adjusted in this subsection (6), by the units of production on which the local government severance tax was owed during calendar year 1995 production.
(b) Any amount by which the total tax liability exceeds or is less than the total distributions determined in subsection (6)(a) must be calculated and distributed in the following manner:
(i) The excess amount or shortage must be divided by the total distribution determined for that period to obtain an excess or shortage percentage.
(ii) The excess percentage must be multiplied by the distribution to each taxing unit, and this amount must be added to the distribution to each respective taxing unit.
(iii) The shortage percentage must be multiplied by the distribution to each taxing unit, and this amount must be subtracted from the distribution to each respective taxing unit.
(7) (a) The county treasurer shall distribute the money received under subsection (6) between the county and school taxing units. The distribution between county and school taxing units is the ratio of the number of mills levied for fiscal year 1990 against 1988 production in each taxing unit for the county and schools, including the county equalization levies that were in effect under 20-9-331 and 20-9-333 as those sections read on July 1, 1989, and the university 6-mill levy imposed under 20-25-423, except that a distribution may not be made to a municipal taxing unit or the state equalization aid levy imposed under 20-9-360. Distribution of money for the county equalization levies and the university levy must be remitted to the state by the county treasurer. The amounts distributed under subsections (7)(b) and (7)(c) are for the exclusive use of county and school taxing units.
(b) The county treasurer shall deposit the money from subsection (7)(a) allocated to county levies to the oil and gas tax accelerated fund.
(c) The trustees of a school district may allocate any payment received under subsection (7)(a) to any budget fund of the district or to the miscellaneous programs fund established in 20-9-507. The trustees shall direct the county treasurer to deposit the local government severance tax payments under this section to the funds of the district in accordance with the allocations determined by the trustees.
(8) Local government severance tax payments to a county pursuant to this section are not subject to the limitations of Title 15, chapter 10, part 4. Payments of local government severance tax pursuant to this section may not be used for county classification purposes under 7-1-2111 and may not be considered in the determination of bonding limits under 7-7-2101, 7-7-2203, 7-14-2524, and 7-16-2327.
(9) The distribution to taxing units under this section is statutorily appropriated as provided in 17-7-502."
Section 6. Section 17-2-101, MCA, is amended to read:
"17-2-101. Title and purpose. (1) Sections 17-2-101 through 17-2-107 may be cited as the "Treasury Fund Structure Act".
(2) The purpose of these sections is to:
(a) comply with Article VIII, section 12, of the Montana constitution;
(b) simplify the accounting system and treasury fund structure of the state,;
(c) to make possible the full utilization of modern accounting methods,;
(d) to provide the legislature with a greater measure of control over public moneys, money; and
(e) to enable the financial records of the state to accurately reflect the state's revenues revenue, expenditures, expenses, and
financial position in accordance with generally accepted accounting principles."
Section 7. Section 17-2-102, MCA, is amended to read:
"17-2-102. Fund structure. (1) There For the purpose of ensuring strict accountability for all revenue received and spent,
there are in the state treasury only the following fund categories and types:
(a) the governmental fund category, which includes:
(i) the general fund, which accounts for all financial resources except those required to be accounted for in another fund;
(ii) the special revenue fund type, which accounts for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specified purposes. The financial activities of the special revenue fund type are subdivided, for operational purposes, into the following funds to serve the purpose indicated:
(A) The state special revenue fund consists of money from state and other nonfederal sources deposited in the state treasury that is earmarked for the purposes of defraying particular costs of an agency, program, or function of state government and money from other nonstate or nonfederal sources that is restricted by law or by the terms of an agreement, such as a contract, trust agreement, or donation.
(B) The federal special revenue fund consists of money deposited in the treasury from federal sources, including trust income, that is used for the operation of state government.
(iii) the capital projects fund type, which accounts for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds or trust funds; and
(iv) the debt service fund type, which accounts for the accumulation of resources for and the payment of general long-term debt principal and interest;
(b) the proprietary fund category, which includes:
(i) the enterprise fund type, which accounts for operations:
(A) that are financed and operated in a manner similar to private business enterprises whenever the intent of the legislature is that costs (i.e., expenses, including depreciation) of providing goods or services to the general public on a continuing basis are to be financed or recovered primarily through user charges; or
(B) whenever the legislature has decided that periodic determination of revenue earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes; and
(ii) the internal service fund type, which accounts for the financing of goods or services provided by one department or agency to other departments or agencies of state government or to other governmental entities on a cost-reimbursed basis;
(c) the fiduciary fund category, which includes trust and agency fund types used to account for assets held by state government in a trustee capacity or as an agent for individuals, private organizations, other governmental entities, or other funds. These include the:
(i) expendable trust fund type;
(ii) nonexpendable trust fund type;
(iii) pension trust fund type; and
(iv) agency fund type.
(d) the higher education funds, which include:
(i) the current fund, which accounts for money deposited in the state treasury that is used to pay current operating costs relating to instruction, research, public service, and allied support operations and programs conducted within the Montana university system. The financial activities of the current fund are subdivided, for operational purposes, into the four following subfunds to serve the purpose indicated:
(A) The unrestricted subfund segregates that portion of the current fund's financial resources that can be expended for general operations and is free of externally imposed restrictions, except those imposed by the legislature.
(B) The restricted subfund segregates that portion of the current fund's financial resources that can be expended for general operations but only for purposes imposed by sources external to the board of regents and the legislature.
(C) The designated subfund segregates that portion of the current fund's financial resources that is associated with general
operations but is separately classified in order to accumulate costs that are to be recharged as allocated to other funds or
subfunds;, identifies financial activities related to special organized activities of educational departments in which the
activity is fully supported by supplemental assessments;, and identifies special supply and facility fees that are approved for
collections beyond normal course fees and their disposition.
(D) The auxiliary subfund segregates that portion of the current fund's financial resources that is devoted to providing essential on-campus services primarily to students, faculty, or staff wherein a fee, which is directly related to but does not necessarily equal the cost of the service provided, is charged to the consumer.
(ii) the student loan fund, which accounts for money deposited in the state treasury that may be loaned to students, faculty, or staff for purposes related to education, organized research, or public services by the Montana university system;
(iii) the endowment fund, which accounts for money deposited in the state treasury by the Montana university system wherein the principal portion of the amount received is nonexpendable but is available for investment, thus producing consumable income. Expendable earnings on endowment funds are to be transferred to appropriate operating funds pursuant to prevailing administrative requirements.
(iv) the annuity and life income fund, which accounts for money deposited in the state treasury by the Montana university system under an agreement whereby the money is made available on condition that the receiving unit of the Montana university system binds itself to pay stipulated amounts periodically to the donor or others designated by the donor over a specified period of time;
(v) the plant fund, which accounts for those financial resources allocated to or received by the Montana university system for capital outlay purposes or to retire long-term debts associated with construction or acquisition of fixed assets and the net accumulative results of these activities; and
(vi) the agency fund, which accounts for money deposited in the state treasury wherein the Montana university system acts in the capacity of a custodian or fiscal agent for individual students, faculty, staff, and qualified organizations.
(2) In addition to the funds provided for in subsection (1), there are in the state treasury the following account groups:
(a) the fixed assets account group, which is a self-balancing group of accounts set up to establish accounting control and accountability for the state's general fixed assets, except those accounted for in proprietary funds, trust funds, and the higher education funds designated in subsections (1)(d)(i)(D), (1)(d)(iii), and (1)(d)(v); and
(b) the long-term debt account group, which is a self-balancing group of accounts set up to establish accounting control and accountability for the state's unmatured general long-term liabilities, except those accounted for in proprietary funds, trust funds, and the higher education funds designated in subsections (1)(d)(i)(D), (1)(d)(iii), and (1)(d)(v)."
Section 8. Section 17-2-103, MCA, is amended to read:
"17-2-103. Previous definitions of funds -- identification or segregation of moneys money and funds. (1) It is the
intent of the legislature that the definitions in 17-2-102 supersede all previous definitions of public funds which that are
inconsistent with the definitions found in this part.
(2) Any laws enacted in the future or any contracts entered into in the future in pursuance of law that require the
segregation of moneys money in the state treasury by means of a separate treasury fund shall must be interpreted as
permitting the segregation of such moneys the money by means of a subfund or account within one of the funds created by
17-2-102.
(3) Each federal grant or other federal money within any subfund or account of one of the funds created by 17-2-102(1)(a) through (1)(c) must be identifiable as a separate accounting entity, reporting center, responsibility center, or revenue identification code, and an account must be made of each such grant or other money by income and expenditure for each federal grant year or fiscal year as may be applicable.
(4) Unless otherwise specifically provided in the statutes pertaining to the tax, the portion of taxes collected by the state
that, pursuant to a statute, are to be allocated or distributed to units of local government, school districts, authorities, or
other local governmental entities shall must be accounted for in a fiduciary state special revenue fund, established in
17-2-102, as prescribed by the department in accordance with generally accepted accounting principles."
Section 9. Section 17-2-121, MCA, is amended to read:
"17-2-121. Deposits by insurance commissioner. All Except as provided in 33-2-708, all fees, miscellaneous and
examination charges, fines, penalties, and those amounts received pursuant to 33-2-311, 33-2-705, or 33-2-706, or 50-3-109
collected by the insurance commissioner pursuant to Title 33 and the rules adopted thereunder to implement Title 33 must
be deposited in the general fund."
Section 10. Section 17-3-221, MCA, is amended to read:
"17-3-221. State treasurer to be custodian of moneys money received under Taylor Grazing Act. The state treasurer
shall be is the custodian of all moneys money that the treasurer of the United States may transfer transfers to the state of
Montana under the terms of section 10 of the Taylor Grazing Act approved June 28, 1934, (Public No. 482), which
provides that the secretary of the United States treasury pay one-half of the moneys money received from each grazing
district each year to the state where collected, to be expended as the legislature may prescribe. The money must be
deposited in the federal special revenue fund."
Section 11. Section 17-3-222, MCA, is amended to read:
"17-3-222. Apportionment of moneys to counties. (1) It shall be is the duty of the state treasurer to properly apportion
and allocate these moneys the money received pursuant to 17-3-221 to the county treasurers, who will shall allocate and
pay all such moneys the money as follows:
(a) 50% to the county general fund; and
(b) 50% to the common school fund of the county.
(2) The payments from the state to the county treasurers provided for in subsection (1) are statutorily appropriated as provided in 17-7-502."
Section 12. Section 17-6-201, MCA, is amended to read:
"17-6-201. Unified investment program -- general provisions. (1) The unified investment program directed by Article VIII, section 13, of the Montana constitution to be provided for public funds must be administered by the board of investments in accordance with the prudent expert principle, which requires any investment manager to:
(a) discharge the duties with the care, skill, prudence, and diligence, under the circumstances then prevailing, that a prudent person acting in a like capacity with the same resources and familiar with like matters exercises in the conduct of an enterprise of a like character with like aims;
(b) diversify the holdings of each fund within the unified investment program to minimize the risk of loss and to maximize the rate of return unless, under the circumstances, it is clearly prudent not to do so; and
(c) discharge the duties solely in the interest of and for the benefit of the funds forming the unified investment program.
(2) (a) Retirement funds may be invested in common stocks of any corporation, except that an investment may not be made at any time that would cause the book value of the investments in any retirement fund to exceed 50% of the book value of the fund or would cause the stock of one corporation to exceed 2% of the book value of the retirement fund.
(b) Other public funds may not be invested in private corporate capital stock. "Private corporate capital stock" means only the common stock of a corporation.
(3) (a) This section does not prevent investment in any business activity in Montana, including activities that continue existing jobs or create new jobs in Montana.
(b) The board is urged under the prudent expert principle to invest up to 3% of retirement funds in venture capital companies. Whenever possible, preference should be given to investments in those venture capital companies that demonstrate an interest in making investments in Montana.
(c) In discharging its duties, the board shall consider the preservation of purchasing power of capital during periods of high monetary inflation.
(d) The board may not make a direct loan to an individual borrower. The purchase of a loan or a portion of a loan originated by a financial institution is not considered a direct loan.
(4) The board has the primary authority to invest state funds. Another agency may not invest state funds unless otherwise provided by law. The board shall direct the investment of state funds in accordance with the laws and constitution of this state. The board has the power to veto any investments made under its general supervision.
(5) The board shall:
(a) assist agencies with public money to determine if, when, and how much surplus cash is available for investment;
(b) determine the amount of surplus treasury cash to be invested;
(c) determine the type of investment to be made;
(d) prepare the claim to pay for the investment; and
(e) keep an account of the total of each investment fund and of all the investments belonging to the fund and a record of the participation of each treasury fund account in each investment fund.
(6) The board may:
(a) execute deeds of conveyance transferring all real property obtained through foreclosure of any investments purchased under the provisions of 17-6-211 when full payment has been received for the property;
(b) direct the withdrawal of any funds deposited by or for the state treasurer pursuant to 17-6-101 and 17-6-105;
(c) direct the sale of any securities in the program at their full and true value when found necessary to raise money for payments due from the treasury funds for which the securities have been purchased;
(d) expend funds needed to cover costs of necessary repairs to property owned by the board as an investment. The
expenditures may be made directly by the board and are statutorily appropriated, as provided in 17-7-502. Repairs that cost
in excess of $2,500 must be bid, and the bid must be awarded in compliance with existing state law and regulations.
Emergency repairs may be made by the board without bid if approved by the state architect.
(7) The cost of administering and accounting for each investment fund must be deducted from the income from each fund.
(8) At the beginning of each fiscal year, the board shall, from the appropriate fund, reimburse the department of commerce for the costs of administering programs established under Title 90, chapter 3, that are not covered by payback funds available from the account established in 90-3-305."
Section 13. Section 17-7-402, MCA, is amended to read:
"17-7-402. Budget amendment requirements. (1) Except as provided in subsection (6), a budget amendment may not be approved:
(a) by the approving authority, except a budget amendment to spend:
(i) additional federal revenue;
(ii) additional tuition collected by the Montana university system;
(iii) additional revenue deposited in the internal service funds within the department or the office of the commissioner of higher education as a result of increased service demands by state agencies;
(iv) Montana historical society enterprise revenue resulting from sales to the public;
(v) additional revenue that is deposited in funds other than the general fund and that is from the sale of fuel for those agencies participating in the Montana public vehicle fueling program established by Executive Order 22-91; or
(vi) revenue resulting from the sale of goods produced or manufactured by the industries program of an institution within the department of corrections;
(b) by the approving authority if the budget amendment contains any significant ascertainable commitment for any present or future increased general fund support;
(c) by the approving authority for the expenditure of money in the state special revenue fund unless an emergency justifies the expenditure or the expenditure is exempt under subsection (4);
(d) by the approving authority unless it will provide additional services;
(e) by the approving authority for any matter of which the requesting agency had knowledge at a time when the proposal could have been presented to an appropriation subcommittee, the house appropriations committee, or the senate finance and claims committee of the most recent legislative session open to that matter, except when the legislative finance committee is given specific notice by the approving authority that significant identifiable events, specific to Montana and pursuant to provisions or requirements of Montana state law, have occurred since the matter was raised with or presented for consideration by the legislature; or
(f) to extend beyond June 30 of the last year of any biennium.
(2) All budget amendments must itemize planned expenditures by fiscal year.
(3) Each budget amendment must be submitted by the approving authority to the budget director and the legislative fiscal analyst. The proposed expenditure of money from nonstate or nonfederal sources that is restricted by law must be submitted to the legislative fiscal analyst.
(4) Money from nonstate or nonfederal sources that would be deposited in the state special revenue fund and that is restricted by law or by the terms of a written agreement, such as a contract, trust agreement, or donation, is exempt from the requirements of this part.
(5) An appropriation that would usually be the subject of a budget amendment that is submitted to the legislature for approval during a legislative session may not include authority to spend money beyond the first fiscal year of the next biennium.
(6) A budget amendment to spend state funds, other than from the general fund, required for matching funds in order to receive a grant is exempt from the provisions of subsection (1)."
Section 14. Section 17-7-502, MCA, is amended to read:
"17-7-502. Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.
(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:
(a) The law containing the statutory authority must be listed in subsection (3).
(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.
(3) The following laws are the only laws containing statutory appropriations: 2-9-202; 2-17-105; 2-18-812; 3-5-901;
5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325, 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-410; 16-1-411; 16-11-308; 17-3-106; 17-3-212;
17-3-222; 17-5-404; 17-5-424; 17-5-804; 17-6-101; 17-6-201; 17-7-304; 18-11-112; 19-2-502; 19-5-404; 19-6-709;
19-8-504; 19-9-702; 19-9-1007; 19-13-604; 19-13-1006; 19-17-301; 19-18-512; 19-18-513; 19-18-606; 19-19-205;
19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-9-361; 20-26-1503; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612;
23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 39-71-2504;
44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101;
75-5-1108; 75-6-214; 75-11-313; 76-12-123; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220;
85-20-402; 90-3-301; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.
(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001.)"
Section 15. Section 17-8-101, MCA, is amended to read:
"17-8-101. Appropriation and disbursement of money from treasury. (1) Except as provided in subsection (5) For
purposes of complying with Article VIII, section 14, of the Montana constitution, money deposited in the general fund, the
special revenue fund type (except money deposited in the treasury from nonstate and nonfederal sources restricted by law
or by the terms of an agreement, such as a contract, trust agreement, or donation), the enterprise fund type, the debt service
fund type, and the capital projects fund type, with the exception of refunds authorized in subsection (3) (4), must be paid
out of the treasury only on appropriation made by law.
(2) Money deposited in the enterprise fund type, internal service fund type, debt service fund type, expendable trust fund
type, nonexpendable trust fund type, pension trust fund type, agency fund type, and state special revenue fund from
nonstate and nonfederal sources restricted by law or by the terms of an agreement, such as a contract, trust agreement, or
donation, and agency fund type may be paid out of the treasury:
(a) by appropriation; or
(b) under general laws, or contracts entered into in pursuance of law, permitting the disbursement.
(3) The pension trust fund type is not considered a part of the state treasury for appropriation purposes. Money deposited in the pension trust fund type may be paid out of the treasury pursuant to general laws, trust agreement, or contract.
(3)(4) Subject to the provisions of subsection (8), money Money paid into the state treasury through error or under
circumstances, such that the state is not legally entitled to retain it and a refund procedure is not otherwise provided by law,
may be refunded upon the submission of a verified claim approved by the department of administration.
(4)(5) Authority to expend appropriated money may be transferred from one state agency to another, provided that the
original purpose of the appropriation is maintained. The office of budget and program planning shall report semiannually to
the legislative finance committee concerning all appropriations transferred under the provisions of this section.
(5)(6) Fees and charges for services deposited in the internal service fund type must be based upon commensurate costs.
The legislative auditor, during regularly scheduled audits of state agencies, shall audit and report on the reasonableness of
internal service fund type fees and charges and on the fund equity balances.
(6)(7) The office of budget and program planning shall include in the budget submitted to the legislature a report on:
(a) enterprise funds, including retained earnings and contributed capital, projected operations and charges, and projected fund balances; and
(b) internal service fund type fees and charges, including changes in the level of fees and charges, projected use of the fees and charges, and projected fund balances. Internal service fund type fees and charges must be approved by the legislature in the general appropriations act. Fees and charges in any biennium may not exceed the level approved by the legislature in the general appropriations act effective for that biennium.
(7)(8) Any The creation of accounts in the enterprise fund or the internal service fund created after July 1, 1995, must be
approved by the department, using conformity with generally accepted accounting principles as the primary approval
criteria. The department shall report annually to the office of budget and program planning and the legislative finance
committee on the nature, status, and justification for all new accounts in the enterprise fund and the internal service fund.
(8)(9) Enterprise and internal service funds must be appropriated if they are used as a part of a program that is not an
enterprise or internal service function and otherwise requires an appropriation paid out of the state treasury. The payment
of funds into an internal service fund must be authorized by law."
Section 16. Section 19-2-404, MCA, is amended to read:
"19-2-404. Appointment and compensation of administrative staff. The department board shall appoint hire and fix
the compensation of an administrator and other necessary employees to assist the board in administering the retirement
systems. The compensation of the administrator and employees must be established in accordance with Title 2, chapter
18."
Section 17. Section 19-2-408, MCA, is amended to read:
"19-2-408. Administrative expenses. (1) The legislature finds that proper administration of the pension trust funds benefits both employers and members and continues to benefit members after retirement.
(2) The administrative expenses of the retirement systems administered by the board must be paid from the investment earnings on the pension trust fund of the public employees' retirement system, except as provided in subsection (3). Before the fiscal yearend closing, the board shall compute the administrative expenses attributable to each retirement system administered by the board for the immediately preceding fiscal year and transfer that amount from each retirement system's pension trust fund to the pension trust fund of the public employees' retirement system. The total administrative expenses of the board, including the administration of the volunteer firefighters' pension plan, may not exceed 1.5% of the total retirement benefits paid.
(3) On January 1 of each year, each employer under the public employees' retirement system shall contribute on behalf of
each member then in its service a membership fee of $1 in addition to other required contributions. The appropriation of
these fees, together with other money appropriated for that purpose, must be used for the purpose of defraying the
administrative expense of chapters 2, 3, 5 through 9, and 13, and this chapter.
(4) Any request for an increase in spending authority for administrative expenses requires a budget amendment and is
subject to Title 17, chapter 7, part 4.
(5) The board may assess and the division may collect a fee from the department of fish, wildlife, and parks for the purpose
of defraying the expenses of administering chapter 8 of this title."
Section 18. Section 19-2-502, MCA, is amended to read:
"19-2-502. Statutory appropriation of payments Payments from pension trust funds. (1) Assets The board shall
administer the assets of the pension trust funds are statutorily appropriated, as provided in 17-7-502, to the division for
payment of benefits and refunds to eligible recipients and for paying the necessary administrative and investment expenses
of the retirement systems as provided in Article VIII, section 15, of the Montana constitution, subject to the specific
provisions of chapters 2, 3, 5 through 9, and 13 of this title.
(2) Benefits and refunds to eligible recipients are payable pursuant to a contract as contained in statute. The contract is entered into on the first day of a member's covered employment and may be enhanced by the legislature. Unless specifically provided for by statute, the contract does not contain revisions to statutes after the time of retirement or termination."
Section 19. Section 19-5-404, MCA, is amended to read:
"19-5-404. Contributions by state. (1) The state of Montana shall contribute monthly to the pension trust fund a sum equal to 6% of the compensation of each member. In addition, the clerk of each district court shall transmit 68% of certain filing fees as required under 25-1-201(2) and that portion of the fee for filing a petition for dissolution of marriage and a motion for substitution of a judge specified in 25-1-201(4) and (6) to the state, which shall first deposit in the pension trust fund an amount equal to 34.71% of the total compensation paid to district judges and supreme court justices who are covered by the judges' retirement system and then deposit the balance in the state general fund. The clerk of the supreme court shall pay one-fourth of the fees collected under 3-2-403 to the division to be credited to the pension trust fund.
(2) The state of Montana shall contribute monthly from the renewable resource grant and loan program account in the state special revenue fund to the judges' pension trust fund an amount equal to 34.71% of the compensation paid to the chief water court judge. The state contributions in this section are statutorily appropriated as provided in 17-7-502."
Section 20. Section 19-6-709, MCA, is amended to read:
"19-6-709. (Temporary) Supplemental benefits for certain retirees. (1) In addition to any retirement benefit payable under this chapter, a retired member or a survivor determined by the board to be eligible under subsection (2) must receive an annual lump-sum benefit payment beginning in September 1991 and each succeeding year as long as the member remains eligible.
(2) To be eligible for the benefits under this section, a person must be receiving a monthly benefit before July 1, 1991, and must be:
(a) a retired member who is 55 years of age or older and who has been receiving a service retirement benefit for at least 5 years prior to the date of distribution;
(b) a survivor of a member who would have been eligible under subsection (2)(a); or
(c) a recipient of a disability or survivorship benefit under 19-6-601 or 19-6-901.
(3) A retired member otherwise qualified under this section who is employed in a position covered by a retirement system under Title 19 is ineligible to receive any lump-sum benefit payments provided for in this section until the member's service in the covered position is terminated. Upon termination of the member's covered service, the retired member becomes eligible in the next fiscal year succeeding the member's termination.
(4) (a) Twenty-five An amount equal to 25 cents of each motor vehicle registration fee provided for in 61-3-321(5) must be
deposited in paid from the general fund to the pension trust fund at the end of each fiscal year. The fee payment is
statutorily appropriated, as provided in 17-7-502, to the pension fund for payment of benefits to eligible recipients. The
total funds must be distributed by the division in lump-sum payments to eligible recipients along with their normal
retirement benefit payment.
(b) The lump-sum payment must be distributed proportionally to all eligible recipients based on service credit at the time of retirement, subject to the following:
(i) a recipient under subsection (2)(c) is considered to have 20 years of service for the purposes of the distributions;
(ii) any recipient of a service retirement benefit exceeding the maximum monthly benefit under 19-6-707(2)(a) must have the recipient's service credit reduced 25% for the purposes of the distributions;
(iii) the maximum annual increase in the amount of supplemental benefits paid to each individual under this section after August 31, 1993, is the percentage increase for the previous calendar year in the annual average consumer price index for urban wage earners and workers, compiled by the bureau of labor statistics of the United States department of labor or its successor agency.
(c) Any amount deposited in the pension trust fund under subsection (4)(a) for the payment of supplemental benefits under this section that exceeds the limitation of subsection (4)(b)(iii) must be used to amortize unfunded liabilities of the retirement system.
(5) Every 10 years following July 1, 1991, the division shall review the size of the additional fee collected under
61-3-321(5) and deposited in the account paid to the pension trust fund in accordance with subsection (4)(a) and
recommend to each legislature following the division's review any legislation necessary to reduce the fee to the minimum
amount necessary to provide the supplemental benefits provided by this section."
Section 21. Section 19-8-504, MCA, is amended to read:
"19-8-504. State's contribution. Each month, the state treasurer shall pay to the pension trust fund out of the department of fish, wildlife, and parks funds, a sum equal to 8.15% of all members' salaries. The payment is statutorily appropriated as provided in 17-7-502."
Section 22. Section 19-9-702, MCA, is amended to read:
"19-9-702. State contribution. The state of Montana shall make its contributions through the state auditor out of from the
general fund the premium tax on motor vehicle property and casualty insurance policies. The payments general fund
contributions must be made annually after the end of each fiscal year but no later than November 1 from the gross premium
tax after deduction for cancellations and returned premiums. The division shall notify the state auditor by September 1 of
each fiscal year of the annual compensation paid to all active members during the preceding fiscal year. The state's
contribution is 15.66% of compensation paid to members. The contributions are statutorily appropriated as provided in
17-7-502."
Section 23. Section 19-9-1007, MCA, is amended to read:
"19-9-1007. Supplement to certain benefits. (1) The benefits paid in each fiscal year to a retired member or the member's survivors may not be less than one-half of the compensation that will be paid in the current fiscal year in the appropriate city or town to newly confirmed police officers.
(2) On or before October 1 of each year, the division shall make a report including the following information:
(a) the names of all retired members who are receiving benefits from the retirement system as of the date of the report;
(b) the names of all surviving spouses or dependent children who are receiving benefits from the retirement system because of the death of an active or retired member of this or a prior plan;
(c) for the purpose of determining the base retirement, disability, or survivorship benefits for the computations set forth in subsection (3), the following information relating to the base fiscal year commencing July 1, 1976:
(i) the amount of the benefits paid in the base fiscal year to each retired member described in subsection (2)(a);
(ii) the amount of the benefits paid in the base fiscal year to each surviving spouse or dependent child described in subsection (2)(b);
(iii) upon the death after the base fiscal year of any retired member who was receiving benefits, the amount of benefits that would have been paid to an eligible surviving spouse of the retired member if the surviving spouse had been receiving benefits in the base fiscal year;
(d) the original amount of retirement, disability, or survivorship benefits paid to retired members or their eligible survivors as of the original retirement dates after July 1, 1975;
(e) the compensation that will be paid during the current fiscal year to a newly confirmed police officer of each city or town participating in the retirement system.
(3) The division shall compute the difference between each amount reported under subsections (2)(c) through (2)(e) and
one-half the compensation to be paid during the current fiscal year to a newly confirmed police officer of the appropriate
city or town. The difference must be reported to the state auditor, who shall pay the difference from the general fund to the
pension trust fund out of the premium tax collected on insurance sold in this state to insure against the risks enumerated in
19-18-512(3) no later than November 1. If the compensation of a newly confirmed police officer has not been set for the
current fiscal year in time to be included in the October 1 report to the state auditor, the division shall make any retroactive
adjustments necessary to individual supplemental benefits after the current compensation has been determined and shall
include these amounts in the next year's report for reimbursement at that time.
(4) The premium tax amount paid by the state auditor is statutorily appropriated, as provided in 17-7-502, for the payment
of supplemental retirement benefits to eligible retired members and their survivors. This payment amount is in addition to
the payment to be made by the state auditor under 19-9-702.
(5) If more than one dependent child is entitled to supplementary benefits under this section by virtue of the death of a common parent, the minimum benefit paid to the dependent children under this section must be determined as if there were one dependent child and the supplementary benefits must be paid to the dependent children collectively."
Section 24. Section 19-13-604, MCA, is amended to read:
"19-13-604. State contribution. The state shall make its contributions through the state auditor from the premium taxes
on the insurance risks enumerated in 19-18-512 general fund. These payments Payments must be made annually from the
general fund to the pension trust fund after the end of each fiscal year but no later than November 1 from the gross
premium taxes after deduction for cancellations and returned premiums. The division shall notify the state auditor of the
annual compensation, excluding overtime, holiday payments, shift differential payments, compensatory time payments, and
payments in lieu of sick leave, paid to all active members during the preceding year. The state's contribution is 24.21% of
this total compensation. As soon as practicable after receipt of the state contribution, the division shall deposit it in the
pension trust fund. The contributions are statutorily appropriated as provided in 17-7-502."
Section 25. Section 19-13-1006, MCA, is amended to read:
"19-13-1006. Supplement to retirement benefits for persons retiring before July 1, 1973. (1) The retirement system
shall pay to each member retired before July 1, 1973, or the member's surviving spouse or dependent children a monthly
retirement benefit of not less than one-half the regular monthly compensation paid to a confirmed active firefighter of the
city that last employed the member as a firefighter, as provided each year in the budget of that city. If the city that last
employed the member as a firefighter no longer employs a full-paid firefighter, the member's or survivor's benefit may not
be less than one-half the average regular monthly compensation paid to all newly confirmed full-paid firefighters, as
provided each year in the budgets of those cities that participate in the retirement system and employ a full-paid firefighter.
In the case of volunteer firefighters, the retirement benefit may not exceed $75 per month. Distribution of the money
provided for this purpose under 19-18-606(1) subsection (2) must be made according to subsection (2) (3).
(2) The state auditor shall deposit the proceeds of the tax collected pursuant to 50-3-109(1)(b) in the general fund. The state auditor shall pay an amount equal to the proceeds of the tax from the general fund to the pension trust fund to be used to pay claims as provided in subsection (3). The payment is statutorily appropriated as provided in 17-7-502. If the amount paid is in excess of the amount necessary for the payment of claims as provided in subsection (3), the excess must be used to pay the supplementary benefits provided for in 19-13-1009.
(2)(3) (a) At the beginning of each fiscal year, the division shall request and, except as provided in subsection (2)(b) (3)(b),
the state auditor shall issue pay from the state special revenue general fund and deliver to the division pension trust fund an
amount certified to be equal to the total annual dollar difference between the total retirement benefits paid to all retirees or
their surviving spouses or dependent children in the previous fiscal year and the total benefits payable on June 30, 1973.
The division shall deposit this money into the pension trust fund.
(b) If the amount of insufficient money is contained in the state special revenue fund to pay the amount requested paid in
subsection (2)(a) (3)(a) is insufficient, the auditor shall pay to the division the balance contained in the state special revenue
fund. The division shall continue to request the payment of any portion of the amount requested under subsection (2)(a)
(3)(a) that was not paid in previous fiscal years plus sufficient interest to reimburse the pension trust fund,. which The
amounts must be paid to the division pension trust fund prior to determining whether sufficient cash remains in the special
revenue fund taxes have been collected to make any amount available for payments into the account established in
19-13-615 of supplementary benefits provided for in 19-13-1009. The state auditor shall pay the requests amounts as
premium tax money in the state special revenue general fund becomes available."
Section 26. Section 19-13-1009, MCA, is amended to read:
"19-13-1009. Supplement to retirement benefits for persons hired on or after July 1, 1981. (1) The division shall pay
a supplemental benefit from the account provided for in 19-13-615 to each member hired on or after July 1, 1981, who has
earned 20 years of membership service as an active firefighter or to the member's surviving spouse or dependent children.
Except as provided in subsection (2), the supplemental benefit, when added to the service retirement benefit, must equal
one-half the regular monthly compensation paid to a newly confirmed full-paid active firefighter of the city that last
employed the member as a firefighter as provided each year in the budget of that city. If after a member retires, the city that
last employed the member no longer employs a full-paid firefighter, the member's supplemental benefit must be calculated
on the basis of the average monthly compensation paid to all newly confirmed full-paid firefighters, as provided each year
in the budgets of those cities that participate in the retirement system and employ a full-paid firefighter.
(2) If the amount available to the account is insufficient to fully fund the supplemental benefit provided for in subsection
(1), the supplemental benefit for each eligible member or survivor must be reduced by an equal percentage so that the
amount contained in the account available for this purpose is not exceeded."
Section 27. Section 19-17-301, MCA, is amended to read:
"19-17-301. Fire insurance premium tax to be paid into pension trust fund. The state auditor and ex officio
commissioner of insurance shall annually deposit in pay from the general fund to the pension trust fund a sum equivalent to
5% of the premium taxes collected from insurers authorized to effect insurance against risks enumerated in 19-18-512
50-3-109. The sum must be computed before the amounts provided for by 19-13-604, 19-13-1006, and 19-18-512 are
deducted. The money must be used for the payment of claims, benefits, and administrative costs as provided in this chapter.
The money is statutorily appropriated as provided in 17-7-502."
Section 28. Section 19-18-512, MCA, is amended to read:
"19-18-512. State auditor to pay -- payment to association out of insurance premium taxes. (1) After the end of the
fiscal year, the state auditor shall issue and deliver the warrant described in this subsection to the treasurer of every each
city or town which that has a fire department relief association entitled by law to receive payments. The warrant shall must
be for the use and benefit of the association. It shall The warrant must be for an amount equal to 1 1/2 mills of the total
taxable value of the city or town and shall must be paid out of the premium taxes on insurance risks enumerated in
subsection (3) collected by the state auditor general fund. The payment is statutorily appropriated as provided in 17-7-502.
(2) If the The payment provided for in subsection (1) is less than $100, an additional payment shall be made from the same
tax moneys so that the total amount received is must be for at least $100.
(3) The risks referred to in subsection (1) are:
(a) insurance of houses, buildings, and all other kinds of property against loss or damage by fire or other casualty;
(b) all kinds of insurance on goods, merchandise, or other property in the course of transportation, whether by land, water,
or air;
(c) insurance against loss or damage to motor vehicles resulting from accident, collision, or marine and inland navigation
and transportation perils;
(d) insurance of growing crops against loss or damage resulting from hail or the elements;
(e) insurance against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers,
pumps, or other apparatus;
(f) insurance against loss or legal liability for loss because of damage to property caused by the use of teams or vehicles,
whether by accident or collision or by explosion of any engine, tank, boiler, pipe, or tire of any vehicle; and
(g) insurance against theft of the whole or any part of any vehicle."
Section 29. Section 19-19-205, MCA, is amended to read:
"19-19-205. Actuarial valuation of police retirement fund. (1) The city treasurer shall submit to the department of
administration before October 1 of each odd-numbered year all information requested by the department necessary to
complete an actuarial valuation of the city's police retirement fund. The valuation shall must consider the actuarial
soundness of the police retirement fund for the 2 preceding fiscal years.
(2) The valuation is to must be prepared by a qualified actuary selected by the department. A qualified actuary is a member
of the American academy of actuaries or of any organization considered by the department to have similar standards.
(3) In each fiscal year in which an actuarial valuation is prepared, the department shall submit to the state auditor a request
for payment of the expense incurred in securing the actuarial valuation. The expense may not exceed $6,000 in any fiscal
year. The state auditor shall make payment to the actuary designated in the request from the general fund. The payment is
statutorily appropriated as provided in 17-7-502."
Section 30. Section 19-19-305, MCA, is amended to read:
"19-19-305. Annual state payments to municipality with police department. (1) After the end of each fiscal year, the
state auditor shall issue and deliver to the treasurer of each city and town in Montana which that has a police department
and which that is not a participant in the municipal police officers' retirement system his a warrant for an amount computed
in the same manner as the amount paid (or that would be paid if an existing relief association met the legal requirements for
payment) to cities and towns for fire department relief associations pursuant to 19-18-512. The payment from the general
fund is statutorily appropriated as provided in 17-7-502.
(2) The payments provided for by 19-19-205 and subsection (1) of this section shall be paid from the premium tax
collected on insurance sold in this state to insure against the risks enumerated in 19-18-512. Such payments may only be
made after deductions have been made from the gross premium tax for cancellations and returned premiums.
(3) Each city or town which that has a police retirement fund shall deposit the payment to the credit of its police retirement
fund.
(4)(3) Payments provided for in 19-19-205 and subsection (1) of this section are in addition to those provided for in
19-19-301."
Section 31. Section 19-19-506, MCA, is amended to read:
"19-19-506. Supplement to certain pensions. (1) The payment for each fiscal year to the police officers, spouses, or
minor children described in subsections (2)(a) through (2)(c) may be not be less than one-half of the salary paid in that
fiscal year in the appropriate city or town to newly confirmed police officers.
(2) On or before April 1 of each year, the board of trustees shall make a report to the state auditor including the following information:
(a) the names of all police officers who are receiving payments from the police retirement fund of the city or town as of the
date of the report and who were receiving such the payments prior to July 1, 1975;
(b) the names of all spouses or minor children who are receiving payments from the police retirement fund because of the
death of a police officer who was receiving such payments prior to July 1, 1975;
(c) the names of all spouses or minor children who are receiving payments from the police retirement fund and who were
receiving such payments prior to July 1, 1975, or in the case of minor children, whose parent, the spouse of a police officer,
was receiving such payments prior to July 1, 1975;
(d) for the purpose of determining the base figure for the computations set forth in subsection (4), the following information relating to the base fiscal year commencing July 1, 1976:
(i) the amount of the payments made in the base fiscal year to each police officer described in subsection (2)(a);
(ii) the amount of the payments made in the base fiscal year to each spouse or minor child (or children) described in
subsection (2)(b) or (2)(c);
(iii) upon the death after April 18, 1977, of any police officer on the retired list who was receiving payments from the
police retirement fund prior to July 1, 1975, and who is survived by a spouse or minor children child entitled to receive
payments therefrom from the police retirement fund, the amount which that would have been paid to an eligible spouse of
such the police officer had if that spouse had been receiving payments in the base fiscal year.
(3) Each fiscal year immediately after the adoption by a city or town having a police retirement fund of its budget for that
fiscal year, each such the city or town shall report to the state auditor the salary for that fiscal year of a newly confirmed
police officer of that city or town.
(4) The state auditor shall, upon receipt of the reports referred to in subsections (2) and (3), compute the difference
between each amount reported under subsections (2)(d)(i) through (2)(d)(iii) and one-half the salary for the current fiscal
year of a newly confirmed police officer of the appropriate city or town. The difference shall must be paid by the state
auditor out of the premium tax collected on insurance, as provided in 19-19-305(2), general fund to the treasurer of the
appropriate city or town at the same time as and in addition to the payment to be made by the state auditor under
19-19-305(1). The payment is statutorily appropriated as provided in 17-7-502.
(5) The treasurer of each city or town receiving funds under subsection (4) shall immediately deposit them to the credit of the city or town's police retirement fund. The board of trustees of the fund shall use the funds to supplement the monthly payments to persons described in subsections (2)(a) through (2)(c) so that the requirements of subsection (1) are met.
(6) If more than one minor child is entitled to supplementary payments under this section by virtue of the death of a
common parent police officer, the minimum payment to such the minor children under this section shall must be
determined as if there were one such minor child and the supplementary payment shall must be made to the minor children
collectively."
Section 32. Section 19-20-203, MCA, is amended to read:
"19-20-203. Officers and employees of retirement board. (1) It is the duty of the retirement board to:
(a) elect a presiding officer from its membership;
(b) appoint a secretary, who may be one of its members;
(c) employ technical or administrative employees who are necessary for the transaction of the business of the retirement system and establish their compensation pursuant to Title 2, chapter 18; and
(d) designate an actuary who meets the qualifications established by the retirement board to assist the retirement board with the technical actuarial aspects of the operation of the retirement system, which includes establishing mortality and service tables and making an actuarial investigation at least once every 5 years into the mortality, service, and compensation experience of the members and beneficiaries of the retirement system.
(2) A quorum of the board is three members."
Section 33. Section 19-20-501, MCA, is amended to read:
"19-20-501. Financial administration of money. The members of the retirement board are the trustees of all money collected for the retirement system, and as trustees, they shall provide for the financial administration of the money as provided in Article VIII, section 15, of the Montana constitution in the following manner:
(1) The money must be invested and reinvested by the state board of investments.
(2) The retirement board annually shall establish the rate of regular interest.
(3) The retirement board annually shall divide among the several reserves of the retirement system an amount equal to the
average balance of the reserves during the preceding fiscal year multiplied by the rate of regular interest. In accordance
with the provisions of 19-20-605(5), the amount to be credited to each reserve must be allocated from the interest and other
earnings on the money of the retirement system actually realized during the preceding fiscal year, less the amount allocated
to the expense fund under the provisions of 19-20-606 administrative expenses. The administrative expenses of the
retirement system may not exceed 1.5% of retirement benefits paid.
(4) The state treasurer is the custodian of the collected retirement system money and of the securities in which the money is invested.
(5) All For purposes of Article VIII, section 12, of the Montana constitution, all the reserves established by part 6 of this
chapter must be accounts in the pension trust fund type of the treasury fund structure of the state.
(6) Benefits and refunds to eligible recipients are payable pursuant to a contract as contained in statute. Unless specifically provided for by statute, the contract does not contain revisions to statutes after the time of retirement or termination."
Section 34. Section 19-20-605, MCA, is amended to read:
"19-20-605. Pension accumulation fund -- employer's contribution. The pension accumulation fund is the fund in which the reserves for payment of pensions and annuities must be accumulated and from which pensions, annuities, and benefits must be paid to or on account of beneficiaries credited with prior service. Contributions to and payments from the pension accumulation fund must be made as follows:
(1) Each employer shall pay into the pension accumulation fund an amount equal to 7.47% of the earned compensation of each member employed during the whole or part of the preceding payroll period.
(2) If the employer is a district or community college district, the trustees shall budget and pay for the employer's contribution under the provisions of 20-9-501.
(3) If the employer is the superintendent of public instruction, a public institution of the state of Montana, a unit of the Montana university system, or the Montana state school for the deaf and blind, the legislature shall appropriate to the employer an adequate amount to allow the payment of the employer's contribution.
(4) If the employer is a county, the county commissioners shall budget and pay for the employer's contribution in the manner provided by law for the adoption of a county budget and for payments under the budget.
(5) All interest and other earnings realized on the money of the retirement system shall must be credited to the pension
accumulation fund, and the amount required to allow regular interest on the annuity savings fund shall must be transferred
to that fund from the pension accumulation fund.
(6) All pensions, annuities, and benefits must be paid from the pension accumulation fund.
(7) The retirement board may, in its discretion, transfer from the pension accumulation fund to the expense fund an amount
necessary to cover expenses of administration."
Section 35. Section 50-3-109, MCA, is amended to read:
"50-3-109. Tax on fire insurance premiums for maintenance of state fire prevention and investigation activities of
department of justice. (1) Each insurer authorized to effect insurance on risks enumerated in 19-18-512 subsection (2)
doing business in this state shall pay to the state auditor and commissioner of insurance ex officio during the month of
February or March in each year, in addition to the taxes on premiums required by law to be paid by it, a tax of 1% taxes on
the fire portion of the direct premiums on such the enumerated risks received during the calendar year next preceding after
deducting cancellations and return premiums. The taxes are:
(a) 1% to be deposited as provided in 17-2-121; and
(b) 1 1/2% to be used for purposes of 19-13-1006.
(2) The risks referred to in subsection (1) are:
(a) insurance of houses, buildings, and all other kinds of property against loss or damage by fire or other casualty;
(b) all kinds of insurance on goods, merchandise, or other property in the course of transportation, whether by land, water, or air;
(c) insurance against loss or damage to motor vehicles resulting from accident, collision, or marine and inland navigation and transportation perils;
(d) insurance of growing crops against loss or damage resulting from hail or the elements;
(e) insurance against loss or damage by water to any goods or premises arising from the breakage or leakage of sprinklers, pumps, or other apparatus;
(f) insurance against loss or legal liability for loss because of damage to property caused by the use of teams or vehicles, whether by accident or collision or by explosion of any engine, tank, boiler, pipe, or tire of any vehicle; and
(g) insurance against theft of the whole or any part of a vehicle."
Section 36. Section 61-3-321, MCA, is amended to read:
"61-3-321. Registration fees of vehicles -- public-owned vehicles exempt from license or registration fees -- disposition of fees. (1) Registration or license fees must be paid upon registration or reregistration of motor vehicles, trailers, housetrailers, and semitrailers, in accordance with this chapter, as follows:
(a) motor vehicles weighing 2,850 pounds or under (other than motortrucks), $5;
(b) motor vehicles weighing over 2,850 pounds (other than motortrucks), $10;
(c) electrically driven passenger vehicles, $10;
(d) all motorcycles and quadricycles, $2;
(e) tractors or trucks, $10;
(f) buses, which are classed as motortrucks, licensed accordingly;
(g) trailers and semitrailers less than 2,500 pounds declared weight and housetrailers of all weights, $2;
(h) trailers and semitrailers over 2,500 up to 6,000 pounds declared weight (except housetrailers), $5;
(i) trailers and semitrailers over 6,000 pounds declared weight, $10, except trailers and semitrailers registered in other jurisdictions and registered through a proportional registration agreement;
(j) trailers used exclusively in the transportation of logs in the forest or in the transportation of oil and gas well machinery, road machinery, or bridge materials, new and secondhand, $15 annually, regardless of size or capacity.
(2) All rates are 25% higher for motor vehicles, trailers, and semitrailers that are not equipped with pneumatic tires.
(3) "Tractor", as specified in this section, means any motor vehicle, except a passenger car, that is used for towing a trailer or semitrailer.
(4) If any motor vehicle, housetrailer, trailer, or semitrailer is originally registered 6 months after the time of registration as set by law, the registration or license fee for the remainder of the year is one-half of the regular fee.
(5) An additional fee of $5.25 a year for each registration of a vehicle, except trailers and semitrailers registered in other
jurisdictions and registered through a proportional registration agreement, must be collected as a registration fee. Revenue
from this fee must be forwarded by the respective county treasurers to the state treasurer for deposit in the general fund.
The department shall distribute pay an amount equal to 25 cents from the each motor vehicle registration fee from the
general fund to the pension trust fund for payment of supplemental benefits provided for in 19-6-709.
(6) A fee of $2 for each set of new number plates must be collected when number plates provided for under 61-3-332(3) are issued. Revenue from this fee must be deposited as provided in subsection (5).
(7) The provisions of this part with respect to the payment of registration fees do not apply to and are not binding upon motor vehicles, trailers, semitrailers, or tractors owned or controlled by the United States of America or any state, county, city, or special district, as defined in 18-8-202.
(8) The provisions of this section relating to the payment of registration fees or new number plate fees do not apply when number plates are transferred to a replacement vehicle under 61-3-317, 61-3-332, or 61-3-335. (See compiler's comments for contingent termination of certain text.)"
Section 37. Section 76-13-114, MCA, is amended to read:
"76-13-114. Disposition of fines. Fines collected in a court of the state under this part or part 2, except those collected in
a justice's court, shall must be transferred to the state treasurer for deposit in the agency state special revenue fund.
Whenever a person is convicted in any court of a violation of this part or part 2, the court may levy and collect as costs in
the case the amount necessary to compensate the county for the expenditures made in and for the prosecution of the
offender. These costs when collected, except those collected in a justice's court, shall must be deposited by the court with
the proper county treasurer for the benefit of the county."
NEW SECTION. Section 38. Repealer. Sections 19-9-208, 19-13-615, 19-18-513, 19-18-606, and 19-20-606, MCA, are repealed.
NEW SECTION. Section 39. Effective date. [This act] is effective July 1, 1997.
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