HOUSE BILL NO. 226
INTRODUCED BY K. BALES, R. HOLDEN, COLE, DEVLIN, HEDGES, KITZENBERG, LENHART, MATTHEWS, MCNUTT
AN ACT PROVIDING FOR THE ALLOCATION OF A PORTION OF FEDERAL MINERAL ROYALTY INCOME TO COUNTIES WHERE THE DEVELOPMENT OF THE FEDERALLY OWNED MINERALS HAS OCCURRED; PROVIDING FOR THE ALLOCATION OF A PORTION OF FEDERAL MINERAL ROYALTY INCOME TO A MINERAL IMPACT ACCOUNT TO BE USED FOR COUNTIES; PROVIDING A STATUTORY APPROPRIATION FOR THE PAYMENT OF ALLOCATIONS OF FEDERAL MINERAL ROYALTY INCOME TO COUNTIES; AMENDING SECTION 17-7-502, MCA; AND PROVIDING EFFECTIVE DATES AND AN APPLICABILITY DATE.
WHEREAS, in Montana, the royalty revenue from federal Bureau of Land Management land currently accrues only to the state, while similar revenue from forest service land is shared between the state and the counties; and
WHEREAS, 30 U.S.C. 191 provides that money paid to any state is to be used by the state as the legislature of the state may direct, giving priority to those subdivisions of the state socially or economically impacted by development of minerals; and
WHEREAS, county governments located within the counties that generate the money derived from federal mineral leasing are impacted by the development of the minerals; and
WHEREAS, the state does not have a mechanism to return federal mineral leasing funds to the impacted counties of the state as federal law requires.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Federal mineral leasing funds. (1) All money paid to the state pursuant to 30 U.S.C. 191 must be deposited in the state general fund and must be distributed as provided in subsections (2) and (3).
(2) At the conclusion of fiscal year 2002, the state treasurer shall distribute all money received in fiscal year 2002 in excess of $21,756,000 pursuant to subsection (3). At the conclusion of fiscal year 2003, the state treasurer shall distribute all money received in fiscal year 2003 in excess of $20,474,000 pursuant to subsection (3). At the conclusion of fiscal year 2004, the state treasurer shall distribute 12.5% of all money received pursuant to subsection (3). At the conclusion of fiscal year 2005 and each fiscal year thereafter, the state treasurer shall distribute 25% of all money received pursuant to subsection (3).
(3) On August 15 following the close of the fiscal year, the state treasurer shall distribute the distributions in subsection (2) to the mineral impact account established in [section 2]. The distribution to the eligible counties must be allocated based on the proportion that the total amount of revenue generated by mineral extraction in an eligible county bears to the total amount of money received by the state.
Section 2. Mineral impact account. There is a mineral impact account. Money must be deposited in the impact account as provided in [section 1]. The money in the impact account must be distributed to counties from which the minerals were produced that resulted in the deposit of the mineral royalty revenue in the impact account. Beginning July 1, 2003, the impact account is statutorily appropriated, as provided in 17-7-502.
Section 3. 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: 2-17-105; 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; 15-31-702; 15-34-115; 15-35-108; 15-36-324; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 17-3-106; 17-3-212; 17-3-222; [section 2]; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 20-8-107; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-222; 80-4-416; 80-11-518; 81-5-111; 82-11-161; 87-1-513; 90-3-1003; 90-6-710; 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; pursuant to Ch. 422, L. 1997, the inclusion of 15-1-111 terminates on July 1, 2008, which is the date that section is repealed; pursuant to sec. 10, Ch. 360, L. 1999, the inclusion of 19-20-604 terminates when the amortization period for the teachers' retirement system's unfunded liability is 10 years or less; pursuant to sec. 4, Ch. 497, L. 1999, the inclusion of 15-38-202 terminates July 1, 2014; and pursuant to sec. 10(2), Ch. 10, Sp. L. May 2000, the inclusion of 15-35-108 and 90-6-710 terminates June 30, 2005.)"
Section 4. Codification instruction. [Sections 1 and 2] are intended to be codified as an integral part of Title 17, chapter 3, part 2, and the provisions of Title 17, chapter 3, part 2, apply to [sections 1 and 2].
Section 5. Effective dates -- applicability. (1) [Section 4 and this section] are effective on passage and approval.
(2) [Sections 1 through 3] are effective January 1, 2002, and apply to mineral royalties received after December 31, 2001.
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