HOUSE BILL NO. 110
INTRODUCED BY M. NOENNIG, BIXBY, ELLIS, FACEY, GALVIN-HALCRO, GILLAN, HAINES, HARRIS, HEDGES, LAWSON, LEE, MAHLUM, MASOLO, MCKENNEY, MUSGROVE, NELSON, OLSON, A. PETERSON, RIPLEY, RYAN, WALTERS, WOLERY, C. YOUNKIN
AN ACT AUTHORIZING A SCHOOL DISTRICT TO INVEST ENDOWMENTS ACCORDING TO THE PROVISIONS OF THE UNIFORM MANAGEMENT OF INSTITUTIONAL FUNDS ACT; AMENDING SECTION 20-9-604, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-9-604, MCA, is amended to read:
"20-9-604. Gifts, legacies, devises, and administration of endowment fund. (1) The trustees of any a district may
accept gifts, legacies, and devises, subject to the conditions imposed by the deed of the donor or the will of the testator or
without any conditions imposed. Unless otherwise specified by the donor, devisor, or testator, when a district receives a
gift, legacy, or devise, the trustees shall deposit such the gift, legacy, devise, or the proceeds therefrom in an endowment
fund. The trustees shall administer the endowment fund so as to preserve the principal from loss, and only the income from
the fund shall may be appropriated for any purpose.
(2) Unless the conditions of the endowment instrument require an immediate disbursement of the money, the money
deposited in the endowment fund shall must be invested by the trustees, notwithstanding the provisions of any other state
law, in:
(a) school district bonds of the district;
(b) bonds of other school districts within the state;
(c) first mortgage bonds, debentures, notes, and other evidences of indebtedness issued, assumed, or guaranteed by any
solvent and operating public utility corporation existing under the laws of the United States of America or any state thereof,
which bonds, debentures, notes, and other evidences of indebtedness are, at the time of such investment, within the three
highest quality grades for the rating of such bonds, debentures, notes, and other evidences of indebtedness by any nationally
recognized investment rating agency;
(d) certificates of deposit of Montana banks insured by the federal deposit insurance corporation; or
(e) direct obligations of the United States government according to the provisions of the Uniform Management of
Institutional Funds Act, Title 72, chapter 30.
(3) All interest collected on the deposits or investments shall must be credited to the endowment fund. No portion of the
endowment fund may be loaned to the district, nor may any money of the fund be invested in warrants of the district.
(4) Whenever any a district has been abandoned, the endowment fund of the abandoned district shall must be
transferred and placed in the endowment fund in the district to which the territory is attached.
(5) As the custodian of the endowment fund, the county treasurer is liable on his the treasurer's official bond for the
endowment fund of any district of the county. No later than July 1 each school fiscal year, the county treasurer shall
account report to the trustees of each district on the condition of its endowment fund, including the status of the
investments that have been made with the money of the fund. The county treasurer shall also include the endowment fund
in his the treasurer's reports to the board of county commissioners.
(6) The trustees of any district having an endowment fund shall provide suitable memorials for all persons or
associations of persons making gifts to the district which that become a part of the endowment fund."
Section 2. Effective date -- applicability. [This act] is effective July 1, 2001, and applies to investment of school district endowments on or after July 1, 2001.
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Latest Version of HB 110 (HB0110.ENR)
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