2001 Montana Legislature

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SENATE BILL NO. 322

INTRODUCED BY D. SHEA, MASOLO, BECK, CHRISTIAENS, COCCHIARELLA, COLE, CRISMORE, DALE, DOHERTY, ELLINGSON, ERICKSON, FACEY, GALLUS, GOLIE, GRIMES, HALLIGAN, HARRINGTON, LASLOVICH, LAWSON, MAHLUM, MATTHEWS, MCCARTHY, MCKENNEY, MCNUTT,  MOOD, ROUSH, SPRAGUE, TASH, TESTER, F. THOMAS, WATERMAN

Montana State Seal

AN ACT CREATING THE NATURAL RESOURCE WORKERS' EDUCATION PROGRAM; PROVIDING TUITION SCHOLARSHIPS FOR NATURAL RESOURCE WORKERS UNEMPLOYED DUE TO A CLOSURE OR A PERMANENT REDUCTION IN FORCE ON OR AFTER JANUARY 1, 1998, TO OBTAIN AN EDUCATIONAL DEVELOPMENT EQUIVALENCY DIPLOMA OR TO RECEIVE EDUCATION OR RETRAINING IN A TRAINING, CERTIFICATE, OR DEGREE PROGRAM FOR A MAXIMUM OF TWO YEARS AT A COMMUNITY COLLEGE, TRIBAL COLLEGE, OR UNIT OF THE MONTANA UNIVERSITY SYSTEM; PROVIDING FOR ELIGIBILITY CRITERIA FOR A TUITION SCHOLARSHIP; AUTHORIZING THE DEPARTMENT OF LABOR AND INDUSTRY TO ACCEPT PRIVATE DONATIONS AND GRANTS FOR SUPPORT OF THE PROGRAM; DEPOSITING A PORTION OF THE RESOURCE INDEMNITY AND GROUND WATER ASSESSMENT TAXES IN THE NATURAL RESOURCE WORKERS' TUITION SCHOLARSHIP ACCOUNT; REQUIRING EXPENDITURE OF PRIVATE DONATIONS AND GRANTS PRIOR TO USE OF RESOURCE INDEMNITY AND GROUND WATER ASSESSMENT TAXES; AMENDING SECTION15-38-106, MCA; AND PROVIDING EFFECTIVE DATES AND A TERMINATION DATE.



     WHEREAS, the economy of Montana is in transition to a new economy that will necessitate a workforce trained for the new economy; and

     WHEREAS, since 1995, the closure of timber mills, such as American Timber, JD Timber, Darby Lumber, Crown Pacific, Louisiana Pacific, Missoula White Pine, and others, has resulted in the loss of approximately 1,500 jobs in the timber industry; and

     WHEREAS, since 1995, an estimated 200 jobs have been lost in the oil and gas industry with the closure of Equitable Resources and JN Oil and Gas; and

     WHEREAS, another estimated 1,175 jobs have been lost since 1995 in the mining industry as a result of reductions at Montana Resources International, Mineral Hill Mine, Zortman-Landusky Mine, Basin Creek Mine, Beal Mountain Mine, and Diamond Hill Mine; and

     WHEREAS, the shift has left many hard-working Montanans, who are the state's greatest asset, without employment and unqualified to fill positions created in the new economy.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:



     Section 1.  Short title. [Sections 1 through 6] may be cited as the "Natural Resource Workers' Education Program".



     Section 2.  Purpose. It is the intent of the legislature to:

     (1)  provide the natural resource workers in Montana who have lost their jobs in the natural resource industry an opportunity to obtain the education and training necessary to find employment in the state that will allow the workers to support their families, save and invest for retirement, and enjoy the recreational opportunities that Montana offers; and

     (2)  help retain a workforce that has made valuable contributions to the state and that will continue to be a valuable asset as Montana moves into the new economy.



     Section 3.  Definitions. As used in [sections 1 through 6], the following definitions apply:

     (1)  "Book allowance" means a payment of $150 a semester for an eligible student who is enrolled at least half-time or $75 a semester for a student who is enrolled less than half-time that must be used to purchase books or supplies for the student's course of study.

     (2) "Full-time, permanent employee" means a person who worked at least an average of 32 hours each week during the traditional work season.

     (3)  "Natural resource industry" means the fields of oil and gas development, mining, smelting, or timber harvester processing or industries directly related to oil and gas development, mining, smelting, or timber harvester processing.

     (4) "Tuition scholarship" means tuition and mandatory fees, excluding room and board, rounded up to the nearest dollar, and a book allowance that are not covered by the federal Pell grant program, federal supplemental educational grant program, or Workforce Investment Act of 1998.



     Section 4.  Program administration. (1) The department of labor and industry shall administer the natural resource workers' education program and shall adopt rules to implement the requirements of [sections 1 through 6], including but not limited to:

     (a)  procedures regarding the application process for eligible individuals to obtain tuition and notification of the office of public instruction, the board of regents, community colleges, tribal colleges, and the state job service of all criteria, procedures, and timelines;

     (b)  procedures for disbursement of tuition scholarships and for developing a formula for proration of scholarships from the natural resource workers' tuition scholarship account established in [section 6] to the office of public instruction, community colleges, tribal colleges, or the board of regents to pay for tuition scholarships awarded to eligible individuals; and

     (c) procedures to limit the training available to each eligible individual to a maximum of 2 years.

     (2)  Before the registration period each semester, the department of labor and industry shall:

     (a)  submit to the office of public instruction, community colleges, tribal colleges, and the board of regents the names of those who have applied for the program and have met the eligibility requirements prescribed in [section 5]; and

     (b)  transmit from the natural resource workers' tuition scholarship account to the office of public instruction, community colleges, tribal colleges, or the board of regents the total amount necessary for payment of all tuition scholarships. The office of public instruction or the board of regents shall transmit the payment for each scholarship to the financial officer of the school district or the unit of the university system in which the eligible student is enrolled.

     (c) enter into a contract or state-tribal cooperative agreement, pursuant to Title 18, chapter 11, with tribal governments to provide the department with information required under this section for participation in the program.

     (3)  Within 30 days after the end of registration each semester, the school district, community college, tribal college, or unit of the university system shall certify to the superintendent of public instruction, the board of regents, or the department, as applicable, the eligibility status of each individual who receives a tuition scholarship. After the end of the drop and add period, the school district, community college, tribal college, or unit of the university system is not required to reevaluate or revise an individual's eligibility status, but shall make a refund to the department of labor and industry if a student who receives a scholarship terminates enrollment for any reason during an academic term.

     (4)  A school district, community college, tribal college, or unit of the university system that receives a tuition scholarship payment shall prepare and submit to the department of labor and industry by March 1 of each year a report that includes an audit of the district's, college's, or unit's administration of the tuition scholarships and a complete accounting of the tuition funds.

     (5)  If a tuition scholarship recipient transfers from one school district, community college, tribal college, or unit of the university system to another and continues to meet eligibility requirements, the tuition scholarship must be transferred with the recipient.     

     (6)  A tuition scholarship recipient may apply the tuition scholarship to any training, certificate, or degree program offered at a community college, tribal college, or unit of the university system.

     (7) By June 30 of each even-numbered year, the department of labor and industry shall report the following to the legislative finance committee:

     (a) the number of persons participating in the program;

     (b) the training, certificate, or degree program in which each participant is enrolled or that each participant has completed and the location of the program;

     (c) the number of job placements and the average salary received; and

     (d)  the agency costs associated with administering the program.



     Section 5.  Eligibility requirements. (1) To be eligible to receive a tuition scholarship through the natural resource workers' education program, an individual seeking a general educational development equivalency diploma through a program approved for funding by the superintendent of public instruction or enrolled in a training, certificate, or degree program offered at a community college or tribal college located in Montana or a unit of the Montana university system, as identified in 20-25-201, must:

     (a)  be classified as a Montana resident for in-state tuition at the time of application;

     (b)  have proof of employment through pay stubs, W-2 records, or records of the department of labor and industry that the individual was employed as a full-time, permanent employee for a minimum of 3 years in succession in a natural resource industry located in Montana; and

     (c)  have been unemployed in a natural resource industry due to a closure or a permanent reduction in force occurring on or after January 1, 1998, by an employer in a natural resource industry located in Montana. A worker who has been affected only by a temporary or seasonal layoff is not eligible for a tuition scholarship.

     (2)  An individual who meets the requirements of subsection (1) and who is seeking a general educational development equivalency diploma shall enroll in a program that has been approved for funding by the office of public instruction.

     (3) An individual who meets the requirements of subsection (1) and who is seeking a scholarship for a training or certificate program shall enroll in a program that has been approved by a community college, tribal college, or unit of the university system.

     (4)  A freshman student who meets the requirements of subsection (1) and has been admitted, enrolled, or classified as an undergraduate student in a matriculated status is eligible to receive a retroactive scholarship to be paid at the end of the freshman year if the student earns a cumulative grade point average of at least 2.0 at the end of the school term in which the student attempted 30 semester hours.

     (5)  To be eligible to receive a scholarship, a sophomore student seeking an associate or baccalaureate degree at a postsecondary institution must meet the requirements of subsection (1) and:

     (a)  must have attempted a minimum of 30 semester hours at a postsecondary school;

     (b)  must have earned a cumulative grade point average of at least 2.0 at the end of the school term in which the student attempted 30 semester hours;

     (c)  must have maintained satisfactory academic progress in a course of study pursuant to the standards and practices used for federal Title IV programs by the postsecondary institution in which the student is enrolled; and

     (d)  must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status.

     (6)  To be eligible to receive a scholarship, a junior student seeking a baccalaureate degree at a postsecondary institution must meet the requirements of subsection (1) and:

     (a)  must have earned a cumulative grade point average of at least 2.0 at the end of the school term in which the student attempted 60 semester hours;

     (b)  must have maintained satisfactory academic progress in a course of study pursuant to standards and practices used for federal Title IV programs by the postsecondary institution in which the student is enrolled; and

     (c)  must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status.

     (7)  To be eligible to receive a scholarship, a senior student seeking a baccalaureate degree at a postsecondary institution must meet the requirements of subsection (1) and:

     (a)  must have earned a cumulative grade point average of at least 2.0 at the end of the school term in which the student attempted 90 semester hours;

     (b)  must have maintained satisfactory academic progress in a course of study pursuant to the standards and practices used for federal Title IV programs by the postsecondary institution in which the student is enrolled; and

     (c)  must meet enrollment standards by being admitted, enrolled, and classified as an undergraduate student in a matriculated status.

     (8)  If a student fails to maintain a cumulative grade point average of at least 2.0 at the end of the school term in which the student attempted 30 semester hours, the scholarship is terminated.

     (9)  An otherwise eligible student who regains a cumulative grade point average of at least 2.0 at the end of a school term in which the student attempted 60 semester hours may requalify for a scholarship.

     (10) A student is ineligible to receive a scholarship if the student:

     (a)  if a male, failed to meet the federal Title IV selective service system registration requirements;

     (b)  is in default on a federal Title IV or state of Montana educational loan or owes a refund on a federal Title IV or state of Montana student financial aid program;

     (c)  has been convicted for committing certain felony offenses involving marijuana, controlled substances, or dangerous drugs; or

     (d)  is incarcerated. Upon release, the student may begin receiving scholarship payments if the student meets all other eligibility requirements. If approved by the board of regents, credits earned during incarceration may be counted toward eligibility.



     Section 6.  Natural resource workers' tuition scholarship account -- proration of tuition scholarships. (1) There is a natural resource workers' tuition scholarship account in the state special revenue fund provided for in 17-2-102.

     (2) Money received by the department of labor and industry from private donations or grants must be deposited into the account and expended to fund tuition scholarships and to pay costs associated with administering the program prior to expenditure of money allocated and deposited in the account from the resource indemnity and ground water assessment taxes pursuant to subsection (3).

     (3)  Money allocated from the resource indemnity and ground water assessment taxes under 15-38-106 must be deposited into the account to the credit of the department of labor and industry to fund tuition scholarships awarded pursuant to [sections 1 through 6]. The department shall transfer funds to the adult education account in the office of public instruction, to the appropriate fund in a community college or tribal college located in Montana, or to the appropriate tuition fund in the appropriate unit of the university system.

     (4)  Money on deposit in the account may not revert to the general fund at the close of any fiscal year. After the initial allocation of money from 15-38-106 in the first year following [the effective date of this section], the amount of money allocated under 15-38-106 at the beginning of each succeeding fiscal year may be only the amount necessary to restore the balance of the scholarship to $150,000, including any private donations or grants.

     (5)  If funds appropriated are not adequate to provide the maximum allowable tuition scholarships to each eligible individual, the tuition scholarships must be prorated for all eligible individuals, using a percentage reduction adopted by the department of labor and industry.



     Section 7.  Section 15-38-106, MCA, is amended to read:

     "15-38-106.  (Temporary) Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before March 31, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

     (2)  The department shall, in accordance with the provisions of 15-1-501, deposit in the following order:

     (a)  50% of the proceeds of the tax in the resource indemnity trust fund of the nonexpendable trust fund type;

     (b)  $300,000 of the remaining proceeds of the resource indemnity and ground water assessment taxes in the ground water assessment account established by 85-2-905;

     (c)  50% of the remaining proceeds in the reclamation and development grants account established by 90-2-1104; and

     (d)  all remaining proceeds in the orphan share account established in 75-10-743.

     (3)  Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

     (4)  The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer.

     15-38-106.  (Effective on occurrence of contingency) Payment of tax -- records -- collection of taxes -- refunds. (1) The tax imposed by this chapter must be paid by each person to which the tax applies, on or before March 31, on the value of product in the year preceding January 1 of the year in which the tax is paid. The tax must be paid to the department at the time that the statement of yield for the preceding calendar year is filed with the department.

     (2)  The department shall, in accordance with the provisions of 15-1-501, deposit in the following order:

     (a)  $366,000 of the proceeds of the resource indemnity and ground water assessment taxes in the ground water assessment account established by 85-2-905;

     (b) 50% of the remaining proceeds in the reclamation and development grants account established by 90-2-1104, for the purpose of making grants to be used for mineral development reclamation projects;

     (c) $150,000 of the remaining proceeds of the resource indemnity and ground water assessment taxes in the natural resource workers' tuition scholarship account established in [section 6] for the first fiscal year following [the effective date of this section] and for succeeding fiscal years, the amount required under [section 6(4)];

     (b)(d)  50% of the all remaining proceeds in the orphan share account established in 75-10-743; and

     (c)  all remaining proceeds in the reclamation and development grants account established by 90-2-1104, for the purpose of making grants to be used for mineral development reclamation projects.

     (3)  Each person to whom the tax applies shall keep records in accordance with 15-38-105, and the records are subject to inspection by the department upon reasonable notice during normal business hours.

     (4)  The department shall examine the statement and compute the taxes to be imposed, and the amount computed by the department is the tax imposed, assessed against, and payable by the taxpayer. If the tax found to be due is greater than the amount paid, the excess must be paid by the taxpayer to the department within 30 days after written notice of the amount of deficiency is mailed by the department to the taxpayer. If the tax imposed is less than the amount paid, the difference must be applied as a tax credit against tax liability for subsequent years or refunded if requested by the taxpayer."



     Section 8.  Codification instruction. [Sections 1 through 6] are intended to be codified as an integral part of Title 39, and the provisions of Title 39 apply to [sections 1 through 6].



     Section 9.  Effective dates -- contingency. (1) Except as provided in subsections (2) and (3), [this act] is effective on July 1, 2001.

     (2) [Section 7] is effective on July 1 immediately following the date that the governor by executive order certifies to the secretary of state that the resource indemnity trust fund balance has reached $100 million and applies to the then-current academic year. The secretary of state shall forward a copy of the executive order to the code commissioner.

     (3) [Section 4(1) and this section] are effective on passage and approval.



     Section 10.  Termination. [This act] terminates on June 30, 5 years after [the effective date provided in section 9(2)].

- END -




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