HOUSE BILL NO. 409
INTRODUCED BY A. PETERSON
AN ACT EXEMPTING INCREASES IN A LOCAL GOVERNMENT'S PROPERTY TAX LEVY FOR THE EMPLOYER'S PREMIUM CONTRIBUTIONS FOR GROUP HEALTH INSURANCE BENEFITS FROM THE MILL LEVY CALCULATION LIMITATION; REQUIRING THAT A PUBLIC HEARING BE HELD PRIOR TO IMPLEMENTING A LEVY; AMENDING SECTIONS 2-9-212, 2-18-703, AND 15-10-420, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 2-9-212, MCA, is amended to read:
"2-9-212. Political subdivision tax levy to pay premiums. (1) Subject to 15-10-420 and subsection (2) of this section, a political subdivision, except for a school district, may levy an annual property tax in the amount necessary to fund the premium for insurance, deductible reserve fund, and self-insurance reserve fund as authorized in this section and to pay the principal and interest on bonds or notes issued pursuant to 2-9-211(5).
(2) (a) The increase in a political subdivision's property tax levy for the political subdivision's premium contributions for group benefits under 2-18-703 beyond the amount of contributions in effect on July 1, 1999, is not subject to the mill levy calculation limitation provided for in 15-10-420.
(b) Prior to implementing a levy under subsection (2)(a), a public hearing must be held regarding any proposed increases."
Section 2. Section 2-18-703, MCA, is amended to read:
"2-18-703. Contributions. (1) Each agency, as defined in 2-18-601, shall contribute the amount specified in this section towards the group benefits cost.
(2) For employees defined in 2-18-701 and for members of the legislature,
the employer contribution for group benefits is $270 a month for the period
from July 1999 through December 1999, $285 a month for the period from
January 2000 through December 2000, and $295 a month for January 2001
and for each succeeding month. For employees of the Montana university
system, the employer contribution for group benefits is $285 a month for the
period from July 1999 through June 2000 and $295 a month for the period
from July 2000 through June 2001 and for each succeeding month. When a
state employee is terminated to achieve a reduction in force, the continuation
of contributions for group benefits beyond the termination date is subject to
negotiation under 39-31-305. Permanent part-time, seasonal part-time, and
temporary part-time employees who are regularly scheduled to work less than
20 hours a week are not eligible for the group benefit contribution. An
employee who elects not to be covered by a state-sponsored group benefit
plan may not receive the state contribution. A portion of the employer
contribution for group benefits may be applied to an employee's costs for
participation in Part B of medicare under Title XVIII of the Social Security
Act, as amended, if the state group benefit plan is the secondary payer and
medicare the primary payer.
(3) For employees of elementary and high school districts and of local government units, the employer's premium contributions may exceed but may not be less than $10 a month. Subject to the public hearing requirement provided in 2-9-212(2)(b), the increase in a local government's property tax levy for premium contributions for group benefits beyond the amount of contributions in effect on July 1, 1999, is not subject to the mill levy calculation limitation provided for in 15-10-420.
(4) Unused employer contributions for any state employee must be transferred to an account established for this purpose by the department of administration and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member.
(5) Unused employer contributions for any government employee may be transferred to an account established for this purpose by a self-insured government and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member or to increase the reserves of the group.
(6) The laws prohibiting discrimination on the basis of marital status in Title 49 do not prohibit bona fide group insurance plans from providing greater or additional contributions for insurance benefits to employees with dependents than to employees without dependents or with fewer dependents."
Section 3. Section 15-10-420, MCA, is amended to read:
"15-10-420. Procedure for calculating levy. (1) A governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount of property taxes actually assessed in the prior year, even if that levy is greater than the levy established by law. The maximum number of mills that a governmental entity may impose is established by calculating the number of mills required to generate the amount of property tax actually assessed in the governmental unit in the prior year based on the current year taxable value, less the value of newly taxable property.
(2) A governmental entity may apply the levy calculated pursuant to subsection (1) plus any additional levies authorized by the voters to all property in the governmental unit, including newly taxable property.
(3) For purposes of this section, newly taxable property includes:
(a) annexation of real property and improvements into a taxing unit;
(b) construction, expansion, or remodeling of improvements;
(c) transfer of property into a taxing unit;
(d) subdivision of real property;
(e) reclassification of property;
(f) transfer of property from tax-exempt to taxable status; and
(g) revaluations caused by expansion, addition, replacement, or remodeling of improvements.
(4) Subsection (1) does not apply to:
(a) school district general fund levies and the school district levy for tuition obligations established in 20-5-324(5); or
(b) the portion of a governmental entity's property tax levy for premium contributions for group benefits excluded under 2-9-212 or 2-18-703.
(5) For purposes of subsection (1), taxes imposed:
(a) include registration fees imposed on light vehicles under 61-3-561 and distributed under 61-3-509(2); and
(b) do not include net or gross proceeds taxes received under 15-6-131 and 15-6-132.
(6) In determining the maximum number of mills in subsection (1), the governmental entity shall take into account any change from the prior year in the amount of statutory reimbursements for changes in the property tax laws. The amount of motor vehicle disposition under 61-3-509(2), as that section read on December 31, 2000, is an increased statutory reimbursement. It may increase the number of mills to account for a decrease in reimbursements and shall decrease the number of mills to fully account for any increase in reimbursements.
(7) The department shall calculate the number of mills to be imposed for purposes of 15-10-107, 20-9-331, 20-9-333, 20-9-360, 20-25-423, 20-25-439, and 53-2-813. However, the number of mills calculated by the department may not exceed the mill levy limits established in those sections.
(8) The department may adopt rules to implement this section. The rules may include a method for calculating the percentage of change in valuation for purposes of determining the elimination of property, new improvements, or newly taxable property in a governmental unit."
Section 4. Effective date. [This act] is effective July 1, 2001.
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