House Bill No. 171
Introduced By raney
By Request of the Legislative Finance Committee
A Bill for an Act entitled: An Act generally revising and clarifying the allocation of resource indemnity and ground water assessment taxes; revising the time for allocating certain portions of the resource indemnity trust fund earnings; amending sections 15-38-201, 15-38-202, 15-38-203, 75-1-1101, 85-1-604, 85-2-905, and 90-2-1104, MCA; and providing an effective date.
Be it enacted by the Legislature of the State of Montana:
Section
Section 15-38-201, MCA, is amended to read:
"15-38-201. Creation of resource indemnity trust fund. For the purpose of carrying out this chapter, there is a resource
indemnity trust fund in the nonexpendable trust fund type. The resource indemnity trust fund shall must be credited with all
moneys money received as herein provided in this chapter."
Section
Section 15-38-202, MCA, is amended to read:
"15-38-202. Investment of resource indemnity trust fund -- expenditure -- minimum balance. (1) All money paid into the resource indemnity trust fund, including money payable into the fund under the provisions of 15-36-324 and 15-37-117, must be invested at the discretion of the board of investments. All the net earnings accruing to the resource indemnity trust fund must annually be added to the trust fund until it has reached the sum of $10 million. Thereafter, only the net earnings may be appropriated and expended until the fund reaches $100 million. Thereafter, all net earnings and all receipts must be appropriated by the legislature and expended, provided that the balance in the fund may never be less than $100 million.
(2) (a) At the beginning of each fiscal year, there is allocated from the interest income of the resource indemnity trust fund:
(i) $240,000, which is statutorily appropriated, as provided in 17-7-502, from the renewable resource grant and loan
program state special revenue account to support the operations of the environmental science-water quality instructional
programs at Montana state university-northern, to be used for support costs, for matching funds necessary to attract
additional funds to further expand statewide impact, and for enhancement of the facilities related to the programs.;
(ii) $1 million to be deposited into the renewable resource grant and loan program state special revenue account, created by 85-1-604, for the purpose of making grants; and
(iii) $1.5 million to be deposited into the reclamation and development grants special revenue account, created by 90-2-1104, for the purpose of making grants.
(b) At the beginning of each biennium, there is allocated from the interest income of the resource indemnity trust fund:
(i) an amount not to exceed $175,000 to the environmental contingency account pursuant to the conditions of 75-1-1101;
(ii) an amount not to exceed $50,000 to the oil and gas production damage mitigation account pursuant to the conditions of
82-11-161;; and
(iii) beginning in fiscal year 1996, $500,000 to be deposited into the water storage state special revenue account created by 85-1-631
(iii) beginning in fiscal year 1996, $2 million to be deposited into the renewable resource grant and loan program state
special revenue account, created by 85-1-604, for the purpose of making grants;
(iv) beginning in fiscal year 1996, $3 million to be deposited into the reclamation and development grants state special
revenue account, created by 90-2-1104, for the purpose of making grants; and
(v) beginning in fiscal year 1996, $500,000 to be deposited into the water storage state special revenue account created by
85-1-631.
(c) The remainder of the interest income is allocated as follows:
(i) Thirty-six percent of the interest income of the resource indemnity trust fund must be allocated to the renewable resource grant and loan program state special revenue account created by 85-1-604.
(ii) Eighteen percent of the interest income of the resource indemnity trust fund must be allocated to the hazardous waste/CERCLA special revenue account provided for in 75-10-621.
(iii) Forty percent of the interest income from the resource indemnity trust fund must be allocated to the reclamation and development grants account provided for in 90-2-1104.
(iv) Six percent of the interest income of the resource indemnity trust fund must be allocated to the environmental quality protection fund provided for in 75-10-704.
(3) Any formal budget document prepared by the legislature or the executive branch that proposes to appropriate funds
from the resource indemnity trust interest account other than as provided for by the allocations in subsection (2) must
specify the amount of money from each allocation that is proposed to be diverted and the proposed use of the diverted
funds. A formal budget document includes a printed and publicly distributed budget proposal or recommendation, an
introduced bill, or a bill developed during the legislative appropriation process or otherwise during a legislative session."
Section
Section 15-38-203, MCA, is amended to read:
"15-38-203. Purpose of fund usage -- limitation on future use. (1) Any funds made available under this chapter shall
must be used and expended to improve the total environment and rectify damage thereto to the environment.
(2) It is the intent of the legislature that future appropriations from the resource indemnity trust interest account not be
made to fund general operating expenses of state agencies."
Section
Section 75-1-1101, MCA, is amended to read:
"75-1-1101. Environmental contingency account objectives. (1) There is created an environmental contingency account
within the state special revenue fund established in 17-2-102. The environmental contingency account is controlled by the
governor.
(2) At the beginning of each biennium, $175,000 must be allocated to the environmental contingency account from the interest income of the resource indemnity trust fund with the following exceptions:
(a) if at the beginning of any biennium the unobligated cash balance in the environmental contingency account equals or
exceeds $750,000, allocation will may not be made; and
(b) if at the beginning of any biennium the unobligated cash balance in the environmental contingency account is less than $750,000, then an amount less than or equal to the difference between the unobligated cash balance and $750,000, but not to exceed $175,000, must be allocated to the environmental contingency account from the interest income of the resource indemnity trust fund.
(3) Funds are statutorily appropriated, as provided in 17-7-502, from the environmental contingency account upon the authorization of the governor to meet unanticipated public needs consistent with the following objectives:
(a) to support renewable resource development projects in communities that face an emergency or imminent need for the services or to prevent the physical failure of a project;
(b) to preserve vegetation, water, soil, fish, wildlife, or other renewable resources from an imminent physical threat or during an emergency, not including:
(i) natural disasters adequately covered by other funding sources; or
(ii) fire;
(c) to respond to an emergency or imminent threat to persons, property, or the environment caused by mineral development;
(d) to respond to an emergency or imminent threat to persons, property, or the environment caused by a hazardous material; and
(e) to fund the environmental quality protection fund provided for in 75-10-704 or to take other necessary actions, including the construction of facilities, to respond to actual or potential threats to persons, property, or the environment caused by hazardous wastes or other hazardous materials.
(4) Interest from funds in the environmental contingency account accrues to the resource indemnity trust interest account
general fund.
(5) The governor shall submit, as a part of the information required by 17-7-111, a complete financial report on the environmental contingency account, including a description of all expenditures made since the preceding report."
Section
Section 85-1-604, MCA, is amended to read:
"85-1-604. Renewable resource grant and loan program state special revenue account created -- revenue allocated
-- limitations on appropriations from account. (1) There is created a renewable resource grant and loan program state
special revenue account within the state special revenue fund established in 17-2-102.
(2) Except to the extent that they are required to be credited to the renewable resource loan debt service fund pursuant to 85-1-603, there must be paid into the renewable resource grant and loan program state special revenue account:
(a) all revenue of the works and other money as provided in 85-1-332;
(b) the interest income of the resource indemnity trust fund as provided in and subject to the conditions of 15-38-202;
(c) the excess of the coal severance tax proceeds allocated by 85-1-603 to the renewable resource loan debt service fund above debt service requirements as provided in and subject to the conditions of 85-1-619;
(d) any fees or charges collected by the department pursuant to 85-1-616 for the servicing of loans, including arrangements for obtaining security interests; and
(e) the resource indemnity and ground water assessment tax proceeds as provided in 15-38-106(2)(b).
(3) Appropriations may be made from the renewable resource grant and loan program state special revenue account for the following purposes and subject to the following conditions:
(a) The amount of resource indemnity trust fund interest earnings allocated under 15-38-202(2)(b)(iii) to the special
revenue account under 15-38-202(2)(a)(ii) must be used for renewable resource grants.
(b) An amount less than or equal to that paid into the account under 85-1-332 and only that amount may be appropriated for the operation and maintenance of state-owned projects and works. If the amount of money available for appropriation under this subsection (3)(b) is greater than that necessary for operation and maintenance expenses, the excess may be appropriated as provided in subsection (3)(c).
(c) An amount less than or equal to that paid into the account from the resource indemnity trust account plus any excess from subsection (3)(b) and only that amount may be appropriated from the account for expenditures that meet the policies and objectives of the renewable resource grant and loan program. If the amount of money available for appropriation under this subsection (3)(c) is greater than that necessary for operation and maintenance expenses, the excess may be appropriated as provided in subsection (3)(d).
(d) An amount less than or equal to that paid into the account from the sources provided for in subsections (2)(c) and (2)(d) and any excess from subsection (3)(c) and only that amount may be appropriated from the account for loans and grants for renewable resource projects; for purchase of liens and operation of property as provided in 85-1-615; for administrative expenses, including but not limited to the salaries and expenses of personnel, equipment, and office space; for the servicing of loans, including arrangements for obtaining security interests; and for other necessities incurred in administering the loans and grants."
Section
Section 85-2-905, MCA, is amended to read:
"85-2-905. Ground water assessment account. (1) There is a ground water assessment account within the state special revenue fund established in 17-2-102. The Montana bureau of mines and geology is authorized to expend amounts from the account necessary to carry out the purposes of this part.
(2) The account may be used by the Montana bureau of mines and geology only to carry out the provisions of this part.
(3) Subject to the direction of the ground water assessment steering committee, the Montana bureau of mines and geology shall investigate opportunities for the participation and financial contribution of agencies of federal and local governments to accomplish the purposes of this part.
(4) There must be deposited in the account:
(a) at the beginning of each fiscal year, 14.1% of the proceeds from the resource indemnity and ground water assessment tax, as authorized by 15-38-106, and 2.2% of the proceeds from the metalliferous mines license taxes, as authorized by 15-37-117, unless at the beginning of the fiscal year the unobligated cash balance in the ground water assessment account:
(i) equals or exceeds $666,000, in which case no an allocation will may not be made and the funds proceeds must be
deposited in the resource indemnity trust fund established by 15-38-201; or
(ii) is less than $666,000, in which case an amount equal to the difference between the unobligated cash balance and $666,000 must be allocated to the ground water assessment account and any remaining amount must be deposited in the resource indemnity trust fund established by 15-38-201;
(b) funds provided by federal or state government agencies and by local governments to carry out the purposes of this part;
and
(c) proceeds allocated to the account as provided in 15-36-324 and 15-38-106; and
(c)(d) funds provided by any other public or private sector organization or person in the form of gifts, grants, or contracts
specifically designated to carry out the purposes of this part."
Section
Section 90-2-1104, MCA, is amended to read:
"90-2-1104. Reclamation and development grants account. (1) There is a reclamation and development grants special revenue account within the state special revenue fund established in 17-2-102.
(2) There must be paid into the reclamation and development grants account money allocated from:
(a) the interest income of the resource indemnity trust fund under the provisions of 15-38-202;
(b) the resource indemnity trust and ground water assessment tax under the provisions of 15-38-106; and
(c) the metal mines license tax proceeds as provided in 15-37-117(1)(e) the metal mines license tax proceeds as provided in
15-37-117(1)(e); and
(d) the oil and gas production tax as provided in 15-36-324 and 15-38-106.
(3) Appropriations may be made from the reclamation and development grants account for the following purposes:
(a) grants for designated projects; and
(b) administrative expenses, including the salaries and expenses of personnel, equipment, office space, and other expenses
necessarily incurred in the administration of the grants program. These expenses may be funded prior to before funding of
projects."
Section
[This act] is effective July 1, 1997.
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