1999 Montana Legislature

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HOUSE BILL NO. 69

INTRODUCED BY M. MCCANN

BY REQUEST OF THE LEGISLATIVE FINANCE COMMITTEE

Montana State Seal

AN ACT GENERALLY REVISING THE LAWS GOVERNING STATUTORY APPROPRIATIONS AND DEDICATED REVENUE; AMENDING SECTIONS 3-7-204, 3-7-222, 3-7-302, 10-3-203, 10-4-301, 10-4-311, 15-30-195, 15-35-108, 16-1-404, 16-11-308, 17-3-212, 17-7-502, 18-2-407, 20-26-1501, 20-26-1502, 20-26-1503, 39-71-502, 39-71-503, 39-71-901, 39-71-907, 39-71-2321, 44-12-206, 61-10-148, 77-1-131, 80-2-103, 85-2-123, 85-2-213, 85-2-225, 85-2-232, 85-20-402, 87-1-601, 90-4-103, 90-4-106, 90-4-109, 90-4-215, 90-6-304, AND 90-6-331, MCA; REPEALING SECTION 85-2-241, MCA; AND PROVIDING AN EFFECTIVE DATE.



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



     Section 1.  Section 3-7-204, MCA, is amended to read:

     "3-7-204.  Supervision and administration by supreme court. (1) The Montana supreme court shall supervise the activities of the water judges, water masters, and associated personnel in implementing this chapter and Title 85, chapter 2, part 2.

     (2)  The supreme court shall pay the expenses of the water judges and the salaries and expenses of the water judges' staffs and the salaries and expenses of the water masters and the water masters' staffs, from the water right adjudication account established by 85-2-241 appropriations made for that purpose. "Salaries and expenses" as used in this section include but are not limited to the salaries and expenses of personnel, the cost of office equipment and office space, and such other necessary expenses as that may be incurred in the administration of this chapter and Title 85, chapter 2, part 2."



     Section 2.  Section 3-7-222, MCA, is amended to read:

     "3-7-222.  Salary -- office space. (1) The chief water judge is entitled to receive the same salary and expense allowance as provided for district judges in 3-5-211.

     (2)  The office of the chief water judge shall must be at the location that the chief justice of the Montana supreme court shall designate. The Montana supreme court shall provide in its budget for the salary, expenses, and office and staff requirements of the chief water judge, which money may be appropriated by the legislature from the water right adjudication account general fund."



     Section 3.  Section 3-7-302, MCA, is amended to read:

     "3-7-302.  Salary, expenses, and retirement of water masters. (1) The water judges shall set a uniform salary for water masters. Water masters shall must receive expenses as provided in 2-18-501 through 2-18-503.

     (2)  A water master shall participate in the Montana Public Employees' Retirement System established in Title 19, chapter 3.

     (3)  The salary and expenses of a water master shall be paid from the water right adjudication account established in 85-2-241."



     Section 4.  Section 10-3-203, MCA, is amended to read:

     "10-3-203.  Acceptance of services, gifts, grants, and loans. (1) Whenever the federal government or any agency or officer thereof of the federal government or any person, firm, or corporation shall offer offers to the state, or through the state to any political subdivision thereof of the state, services, equipment, supplies, materials, or funds by way of gift, grant, or loan for purposes of emergency or disaster services, the state, acting through the governor, or the political subdivision, acting through its executive officer or governing body, may accept the offer. and upon Upon the acceptance, the governor of the state or the executive officer or governing body of the political subdivision may authorize any officer of the state or of the political subdivision, as the case may be, to receive the services, equipment, supplies, materials, or funds on behalf of the state or such political subdivision and subject to the terms of the offer and the rules, if any, of the agency making the offer.

     (2)  The funds, items, and services set forth in subsection (1) are statutorily appropriated, as provided in 17-7-502, to the governor for the purposes set forth in subsection (1)."



     Section 5.  Section 10-4-301, MCA, is amended to read:

     "10-4-301.  Establishment of emergency telecommunications accounts. (1) There are established in the state special revenue fund in the state treasury:

     (a)  an account for all fees collected for basic 9-1-1 services pursuant to 10-4-201(1)(a); and

     (b)  an account for all fees collected for enhanced 9-1-1 services pursuant to 10-4-201(1)(b).

     (2)  All money received by the department of revenue pursuant to 10-4-201 must be paid to the state treasurer for deposit in the appropriate account. An amount equal to 7.48% 3.74% of the money received pursuant to 10-4-201 must be deposited in the state general fund.

     (3)  After payment of refunds pursuant to 10-4-205, the balance of the respective accounts must be used for the purposes described in part 1 of this chapter.

     (4)  The distribution of funds in the 9-1-1 emergency telecommunications accounts described in subsection (1), as required by 10-4-302 and 10-4-311, is statutorily appropriated, as provided in 17-7-502, to the department of administration.

     (5)  Expenditures for actual and necessary expenses required for the efficient administration of the plan must be made from appropriations made for that purpose."



     Section 6.  Section 10-4-311, MCA, is amended to read:

     "10-4-311.  Distribution of enhanced 9-1-1 account by department. (1) The department shall make quarterly distributions of the entire enhanced 9-1-1 account as follows:

     (a)  administrative costs incurred during the preceding calendar quarter by the department of revenue in carrying out this chapter. The amount paid may not exceed 0.5% of the account on the date of distribution or actual expenses incurred, whichever is less.

     (b)  administrative costs incurred during the preceding calendar quarter by the department in carrying out its duties under this chapter. The department's annual recovery of costs may not exceed 3.5% of the amount deposited in the account during the fiscal year or actual expenses incurred, whichever is less.

     (c) for costs incurred during the preceding calendar quarter by each provider of telephone service in the state for:

     (i)(a)  collection of the fee imposed by 10-4-201(1)(b); and

     (ii)(b) modification of central office switching and trunking equipment necessary to provide service for an enhanced 9-1-1 system only.

     (2)  Payments under subsection (1)(c) may be made only after application by the provider to the department for costs described in subsection (1)(c). The department shall review all applications relevant to subsection (1)(c) for appropriateness of costs claimed by the provider. If the provider contests the review, payment may not be made until the amount owed the provider is made certain.

     (3)  After all amounts under subsections (1) and (2) have been paid:

     (a)  for each fiscal year through the fiscal year ending June 30, 2007:

     (i)  84% of the balance of the account must be allocated to cities and counties on a per capita basis. However, each county must be allocated a minimum of 1% of the balance of the counties' share of the account.

     (ii) the remaining 16% of the balance of the account must be distributed evenly to the counties with 1% or less than 1% of the total population of the state; and

     (b)  for fiscal years beginning after June 30, 2007, 100% of the balance of the account must be allocated to cities and counties on a per capita basis. However, each county must be allocated a minimum of 1% of the balance of the counties' share of the account.

     (4)  An enhanced 9-1-1 jurisdiction whose enhanced 9-1-1 service area includes more than one city or county is eligible to receive operating funds from the allocation for each city or county involved. The department shall distribute to the accounting entity designated by an enhanced 9-1-1 jurisdiction with an approved final plan for enhanced 9-1-1 service the proportional amount for each city or county served by the enhanced 9-1-1 jurisdiction. The department shall, upon request, provide a report indicating the proportional share derived from the individual city's or county's allocation with each distribution to a 9-1-1 jurisdiction.

     (5)  If the department determines that an enhanced 9-1-1 jurisdiction is not adhering to an approved plan for enhanced 9-1-1 service or is not using funds in the manner prescribed in 10-4-312, the department may, after giving notice to the jurisdiction and providing an opportunity for a representative of the jurisdiction to comment on the department's determination, suspend payment from the enhanced 9-1-1 account to the 9-1-1 jurisdiction. The jurisdiction is not eligible to receive funds from the enhanced 9-1-1 account until the department determines that the jurisdiction is complying with the approved plan for enhanced 9-1-1 and fund usage limitations."



     Section 7.  Section 15-30-195, MCA, is amended to read:

     "15-30-195.  (Temporary) Excess tax refund agreement (EXTRA) -- process -- requirements -- limitations. (1) This section may be referred to as the "Excess Tax Refund Agreement" or "EXTRA".

     (2)  On or before October 15, 1995, the department of administration shall determine and certify to the governor the combined total of the unreserved ending fund balances in the general fund, described in 17-2-102(1)(a)(i), and the school equalization aid account, described in 20-9-343, for the fiscal year ending June 30, 1995.

     (3)  If the amount of the unreserved ending fund balances described in subsection (2) exceeds $24.4 million, the amount in excess of $24.4 million, subject to the limitation provided in subsection (9), is the amount available for refund under this section.

     (4)  The amount determined under subsection (3) to be available for refund must be refunded on a pro rata basis to each taxpayer who filed a state income tax return, pursuant to 15-30-103, for tax year 1994.

     (5)  For the purposes of this section:

     (a)  the term "taxpayer" does not include a fiduciary or a beneficiary of an estate or trust who was required to file an income tax return pursuant to 15-30-135 unless a 1994 return was filed on behalf of a decedent;

     (b)  a return filed using the filing status married filing jointly is considered to have been filed by a single taxpayer; and

     (c)  the 1994 tax year is the 12-month period beginning January 1, 1994, and ending December 31, 1994, except that for fiscal year taxpayers, the 1994 tax year is a 12-month period ending between January 1, 1994, and December 31, 1994.

     (6)  (a) The pro rata distribution of the amount available for refund must be calculated by the department by dividing the amount available for refund described in subsection (3) by the total individual income tax liability as determined by the department from all 1994 tax year returns that were filed by October 15, 1995.

     (b)  The percentage determined in subsection (6)(a), adjusted to take into account the limitations contained in subsection (8), must be used as the adjusted percentage multiplier described in subsection (6)(c) to determine the amount of each taxpayer's refund. The department may not alter or change the adjusted percentage multiplier.

     (c)  The department shall calculate the amount of each taxpayer's refund by multiplying the amount of tax shown on the taxpayer's return on line 40 of the 1994 Montana Individual Income Tax Return, Form 2, or line 27 of the 1994 Montana Individual Income Tax Return, Short Form 2S, depending on the form used by the taxpayer for tax year 1994, by the adjusted percentage multiplier determined in subsection (6)(b).

     (7)  (a) The department shall calculate the amount of each taxpayer's refund based on the taxpayer's 1994 tax year return on file with the department by October 15, 1995. A taxpayer filing a delinquent return for the 1994 tax year after October 15, 1995, is not eligible for a refund under this section.

     (b)  (i) If a taxpayer files an amended return or if the department reviews a taxpayer's return and recalculates the tax due to the state, the department shall recalculate the refund due to the taxpayer under this section.

     (ii)  If the department's recalculation determines that the taxpayer has an increased tax liability for tax year 1994 and should receive an additional refund under this section as a result of increased 1994 liability, the department shall credit the additional amount of refund under this section to the amount of additional tax due from the taxpayer.

     (iii) If the amount of the recalculated refund due to the taxpayer exceeds the amount of additional tax due from the taxpayer, the department shall pay the excess amount to the taxpayer, but only if the amount of the refund exceeds $10.

     (iv) If, as the result of the taxpayer filing an amended return or of a review by the department, a taxpayer's original 1994 tax liability is decreased, any overpayment of the refund calculated by the department based on the original tax liability must be credited against any refund due to the taxpayer.

     (8)  A refund paid to a taxpayer pursuant to this section may not exceed $1,000. The department may not issue a refund under this section if the amount of the refund is $10 or less.

     (9)  Refunds may not be made under this section if the total amount available for refund as determined in subsection (3) is less than $10 million.

     (10) Beginning in November 1995, the department shall calculate and issue refunds due to taxpayers under this section.

     (11) (a) Notwithstanding the provisions of 15-1-211, any objection concerning the determination of the amount of refund or any other issue relating to the refunds provided in this section must be raised by the taxpayer with the department no later than 30 days after the refund is mailed to the taxpayer.

     (b)  A district court has no jurisdiction to entertain or consider any issue relating to the determination or payment of a refund made under this section unless the issue was first presented to the department and the taxpayer exhausted all administrative remedies.

     (12) The amount determined to be available for refund as provided in subsection (3), limited as provided in subsection (9), for the Excess Tax Refund Agreement and such additional funds required to do any subsequently required acts necessary as a result of the approval of this section, including the filing of amended returns or audit adjusted returns, is statutorily appropriated, as provided in 17-7-502, from the general fund to the department of revenue. (Terminates July 1, 2001--sec. 7, Ch. 29, L. 1995.)"



     Section 8.  Section 15-35-108, MCA, is amended to read:

     "15-35-108.  Disposal of severance taxes. Severance taxes collected under this chapter must, in accordance with the provisions of 15-1-501, be allocated as follows:

     (1)  Fifty percent of total coal severance tax collections is allocated to the trust fund created by Article IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund established under 17-6-203(6) and invested by the board of investments as provided by law.

     (2)  Twelve percent of coal severance tax collections is allocated to the long-range building program account established in 17-7-205.

     (3)  The amount of 8.36% must be credited to an account in the state special revenue fund to be allocated by the legislature for local impacts, county land planning, provision of basic library services for the residents of all counties through library federations and for payment of the costs of participating in regional and national networking, conservation districts, and the Montana Growth Through Agriculture Act. Expenditures of the allocation may be made only from this account. Money may not be transferred from this account to another account other than the general fund. Any unreserved fund balance at the end of each fiscal year must be deposited in the general fund.

     (4)  The amount of 1.27% must be allocated to a nonexpendable trust fund for the purpose of parks acquisition or management. Income from this trust fund must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas described in 23-1-102.

     (5)  The amount of 0.95% must be allocated to the debt service fund type to the credit of the renewable resource loan debt service fund.

     (6)  Beginning July 1, 1997, and ending June 30, 1999, the amount of 0.87% must be allocated to an account in the state special revenue fund for the purpose of protection of works of art in the state capitol and for other cultural and aesthetic projects. Beginning July 1, 1999, the amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of art in the capitol and for other cultural and aesthetic projects. Income from this trust fund must be appropriated for protection of works of art in the state capitol and for other cultural and aesthetic projects.

     (7)  Beginning July 1, 1997, and ending June 30, 2007, the amount of 1.3% must be allocated to the long-range building program fund in the debt service fund type to fund the bonds issued for the purchase of the Virginia City and Nevada City property.

     (8)(7)  All other revenue from severance taxes collected under the provisions of this chapter must be credited to the general fund of the state."



     Section 9.  Section 16-1-404, MCA, is amended to read:

     "16-1-404.  License tax on liquor -- amount -- distribution of proceeds. (1) The department shall collect at the time of sale and delivery of any liquor under any provisions of the laws of the state of Montana a license tax of:

     (a)  10% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed and that sold more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section;

     (b)  8.6% of the retail selling price on all liquor sold and delivered in the state by a company that manufactured, distilled, rectified, bottled, or processed and that sold not more than 200,000 proof gallons of liquor nationwide in the calendar year preceding imposition of the tax pursuant to this section.

     (2)  The license tax must be charged and collected on all liquor brought into the state and taxed by the department. The retail selling price must be computed by adding to the cost of the liquor the state markup as designated by the department. The license tax must be figured in the same manner as the state excise tax and is in addition to the state excise tax. The department shall retain in a separate account the amount of the license tax received. The revenue is statutorily appropriated, as provided in 17-7-502, to the department and must, in accordance with the provisions of 15-1-501, be disbursed shall allocate the revenue as follows:

     (a)  Thirty percent is allocated to the counties according to the amount of liquor purchased in each county to be distributed to the incorporated cities and towns, as provided in subsection (3) (4).

     (b)  Four and one-half percent is allocated to the counties according to the amount of liquor purchased in each county, and this money may be used for county purposes.

     (c)  Sixty-five and one-half percent must be deposited in the state special revenue fund to the credit of the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism.

     (3) (a) In the case of purchases of liquor by a retail liquor licensee for use in the licensee's business, the department shall make regulations necessary to apportion that proportion of license tax so generated to the county where the licensed establishment is located, for use as provided in 16-1-405.

     (b) The department shall pay quarterly to each county treasurer the proportion of the license tax due each county, in accordance with the provisions of 15-1-501, to be allocated to the incorporated cities and towns of the county. The payments to counties under this section are statutorily appropriated, as provided in 17-7-502.

     (3)(4)  The license tax proceeds allocated to the county under subsection (2) for use by cities and towns must be distributed by the county treasurer to the incorporated cities and towns within 30 days of receipt from the department. The distribution of funds to the cities and towns must be based on the proportion that the gross sale of liquor in each city or town is to the gross sale of liquor in all of the cities and towns of the county.

     (4)(5)  The license tax proceeds that are allocated to the department of public health and human services for the treatment, rehabilitation, and prevention of alcoholism must be credited quarterly to the department of public health and human services. The legislature may appropriate a portion of the license tax proceeds to support alcohol programs. The remainder must be distributed as provided in 53-24-206."



     Section 10.  Section 16-11-308, MCA, is amended to read:

     "16-11-308.  Tobacco education fee. (1) Failure to obtain a license, as required by 16-11-303, or to post signs, as provided in 16-11-304, is punishable by a civil penalty of $100. The department may collect the penalty in the manner provided for the collection of other debts.

     (2)  A person who violates 16-11-305(1) or 16-11-307 at any one location within a 3-year period shall be punished as follows:

     (a)  A first through third offense is punishable by a verbal notification of violation.

     (b)  A fourth offense is punishable by a written notice of violation to be sent by the department of public health and human services to the owner of the establishment.

     (c)  A fifth offense is punishable by assessment against the owner of the establishment of a tobacco education fee of $500. The employee or other person who sold the tobacco product, the establishment manager, and the establishment owner, if the owner is a sole proprietor or partner, shall read and view the tobacco education material.

     (d)  A sixth offense is punishable by suspension of the licenses required by 16-11-120 and 16-11-303 for 3 months.

     (e)  A seventh and subsequent offense is punishable by suspension of the licenses required by 16-11-120 and 16-11-303 for 1 year.

     (3)  After 2 years from the first violation, if a person has not received notice of any further violations, a second violation is considered a first violation for the purposes of subsection (2).

     (4)  A license may not be reissued after suspension under subsection (2)(d) or (2)(e) unless tobacco education fees are paid in full.

     (5)  Tobacco education fees must be assessed and collected by the department of public health and human services. Notice of an assessment pursuant to subsection (2) and this subsection must be made by the department of public health and human services within 30 days of the alleged violation by certified letter addressed to the establishment owner or manager. The notice of assessment against the owner of the establishment must provide an opportunity for a hearing. The hearing may be conducted using electronic equipment and must comply with the provisions of the Montana Administrative Procedure Act. Within 30 days from the date on which the notice of assessment was mailed, the owner or manager shall notify the department of public health and human services that the owner or manager objects to the assessment and request a hearing pursuant to this subsection.

     (6)  In addition to the penalty provided for in subsection (2), a first and subsequent violation of 16-11-305(1) or 16-11-307 is punishable by an assessment of a tobacco education fee of $25 against the employee who sold the tobacco product if the employee is not the owner of the establishment. The tobacco education fee must be assessed and collected by the department of public health and human services. Within 30 days of the alleged violation, notice of assessment pursuant to this subsection must be made by the department of public health and human services by certified letter addressed to the employee. The notice of assessment must provide an opportunity for a hearing. The hearing may be conducted using electronic equipment and must comply with the provisions of the Montana Administrative Procedure Act. Within 30 days from the date on which the notice of assessment was mailed, the employee shall notify the department of public health and human services that the employee objects to the assessment and requests a hearing pursuant to this subsection.

     (7)  The tobacco education material referred to in this section must be provided by the department of public health and human services in the form of written and video self-teaching materials. The education materials may be used only for the purposes provided in this section. Upon completion of the self-teaching materials, the establishment owner or manager shall execute a written statement on a form provided by the department of public health and human services verifying that the employee, owner, or manager, as appropriate, has read and viewed the self-teaching material and shall return the statement and the self-teaching video to the department of public health and human services.

     (8)  Upon the sixth and subsequent violation of this section, the department of public health and human services shall notify the department of revenue in writing to initiate suspension of the licenses required by 16-11-120 and 16-11-303 and shall notify the licensee in writing of the alleged violation and of the referral of the licensee's record of violations to the department of revenue for suspension of the licenses pursuant to 16-11-144 and this section. The department of revenue shall review the record of violations and may initiate license suspension proceedings in accordance with 16-11-144. If, upon a review of the record of violations, the department of revenue declines to initiate suspension proceedings, the violation may not be charged against the licensee for the purposes of this section.

     (9)  Fees assessed pursuant to this section must be deposited in an account in the state special revenue general fund. One-half of the money in the account is statutorily appropriated, as provided in 17-7-502, to the department of public health and human services to defray the costs of the tobacco education program. One-half of the money in the account is statutorily appropriated, as provided in 17-7-502, to the department of revenue to defray the department's costs of implementing its duties pursuant to 16-11-144 and this section."



     Section 11.  Section 17-3-212, MCA, is amended to read:

     "17-3-212.  Apportionment of forest reserve funds among counties. (1)  The forest reserve funds and earned interest are statutorily appropriated, as provided in 17-7-502, from the federal special revenue fund to the state auditor,. who The state auditor shall apportion said all forest reserve funds and earned interest for allocation between the several counties as follows: all funds received from each forest reserve shall be apportioned between among the counties in which such the forest reserve is situated in proportion to the acreage of such the forest reserve in each county, and.

     (2) the The state treasurer shall pay the several apportioned amounts so apportioned plus interest thereon, as provided in 17-3-211, to the respective counties."



     Section 12.  Section 17-7-502, MCA, is amended to read:

     "17-7-502.  (Temporary) 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; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-36-325;15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 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; 20-8-107; 20-8-111; 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; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 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; 77-1-131; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; 90-4-215; 90-6-331; 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 sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)

     17-7-502.  (Effective July 1, 2008) 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; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 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; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 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; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; 90-4-215; 90-6-331; 90-7-220; 90-7-221; 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; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"



     Section 13.  Section 18-2-407, MCA, is amended to read:

     "18-2-407.  Forfeiture for failure to pay standard prevailing wage. (1) Any contractor, subcontractor, or employer who pays workers or employees at less than the standard prevailing wage as established under the public works contract shall forfeit to the department a penalty at a rate of up to 20% of the delinquent wages plus fringe benefits, attorney fees, audit fees, and court costs. Money collected by the department under this section must be deposited in the employment security account, as provided in 39-51-409, and must be used for enforcement general fund. A contractor, subcontractor, or employer shall also forfeit to the employee the amount of wages owed plus $25 a day for each day that the employee was underpaid.

     (2)  Whenever it appears to the contracting agency or to the Montana commissioner of labor and industry that there is insufficient money due to the contractor or the employer under the terms of the contract to cover penalties, the Montana commissioner of labor and industry may, within 90 days after the filing of notice of completion of the project and its acceptance by the contracting agency, maintain an action in district court to recover all penalties and forfeitures due. This part does not prevent the individual worker who has been underpaid or the commissioner of labor and industry on behalf of all the underpaid workers from maintaining an action for recovery of the wages due under the contract as provided in Title 39, chapter 3, part 2, except that appeal of the hearing hearings officer's decision is made directly to district court rather than to the board of personnel appeals."



     Section 14.  Section 20-26-1501, MCA, is amended to read:

     "20-26-1501.  Rural physician incentive trust fund state special revenue account. There is a rural physician incentive expendable trust fund state special revenue account in the state treasury. Money is payable into the fund account as provided in 20-26-1502. Income and earnings on the fund account must be redeposited in the fund account. The fund account must be administered by the board of regents of higher education as provided in this part."



     Section 15.  Section 20-26-1502, MCA, is amended to read:

     "20-26-1502.  Fee assessments -- deposits. The board of regents of higher education may assess a fee to students preparing to be physicians in the fields of medicine or osteopathic medicine who are supported by the state pursuant to an interstate compact for a professional education program in those fields, as those fields are defined by the compact. The fee may not exceed an amount equal to 8% of the annual individual medicine support fee paid by the state pursuant to 20-25-804. The fee must be assessed by the board of regents and deposited in the rural physician incentive trust fund state special revenue account established in 20-26-1501."



     Section 16.  Section 20-26-1503, MCA, is amended to read:

     "20-26-1503.  Use of rural physician incentive trust fund state special revenue account. (1) The rural physician incentive trust fund state special revenue account is statutorily appropriated, as provided in 17-7-502, to the board of regents of higher education to be used to pay:

     (a)  the educational debts of rural physicians who practice in medically underserved areas of the state that demonstrate a need for assistance in physician recruitment; and

     (b)  the expenses of administering the rural physician incentive program. The expenses of administering the program may not exceed 10% of the annual fees assessed pursuant to 20-26-1502.

     (2)  The board of regents shall establish procedures for determining the areas of the state that qualify for assistance in physician recruitment. An eligible area must demonstrate that a physician shortage exists or that the area has been unsuccessful in recruiting physicians by other mechanisms.

     (3)  A physician from an area determined to be eligible under subsection (2) may apply to the board of regents for payment of an educational debt directly related to a professional school, as provided in subsection (4). Physicians who have paid the fee authorized in 20-26-1502 must be given a preference over other applicants. To receive the educational debt payments, the physician shall sign an annual contract with the board of regents. The contract must provide that the physician is liable for the payments if the physician ceases to practice in the eligible area during the contract period.

     (4)  The maximum amount of educational debt payment that a rural physician may receive is $45,000 over a 5-year period or a proportionally reduced amount for a shorter period.

     (5)  The amount contractually committed in a year may not exceed the annual amount deposited in the rural physician incentive trust fund state special revenue account."



     Section 17.  Section 39-71-502, MCA, is amended to read:

     "39-71-502.  Creation and purpose of uninsured employers' fund. (1) There is created an uninsured employers' fund in the state special revenue fund type. The purpose of the fund is to pay:

     (a) to an injured employee of an uninsured employer the same benefits the employee would have received if the employer had been properly enrolled under compensation plan No. 1, 2, or 3, except as provided in 39-71-503(2); and

     (b)  the costs of investigating and prosecuting workers' compensation fraud under 2-15-2015.

     (2)  The department may refer to the workers' compensation fraud office established in 2-15-2015 cases involving:

     (a)  false or fraudulent claims for benefits; or

     (b)  criminal violations of 45-7-501."



     Section 18.  Section 39-71-503, MCA, is amended to read:

     "39-71-503.  Administration of fund -- appropriation. (1) The department shall administer the uninsured employers' fund and shall pay from it all expenses of administering the fund, all loss adjustment expenses for claims of injured employees of uninsured employers, and all proper benefits to injured employees of underinsured and uninsured employers.

     (2)  Surpluses and reserves may not be kept for the fund. The department shall make payments that it considers appropriate as funds become available from time to time. The payment of weekly disability benefits takes precedence over the payment of medical benefits. Lump-sum payments of future projected benefits, including impairment awards, may not be made from the fund. The board of investments shall invest the money of the fund, and the investment income must be deposited in the fund.

     (3)  The amounts necessary for the payment of benefits from this fund are statutorily appropriated, as provided in 17-7-502, from this fund."



     Section 19.  Section 39-71-901, MCA, is amended to read:

     "39-71-901.  Definitions. As used in this part, the following definitions apply:

     (1)  "Certificate" means documentation issued by the department to an individual who is a person with a disability.

     (2)  "Fund" means the subsequent injury fund in the proprietary fund category.

     (3)  "Person with a disability" means a person who has a medically certifiable permanent impairment that is a substantial obstacle to obtaining employment or to obtaining reemployment if the employee should become unemployed, considering such factors as the person's age, education, training, experience, and employment rejection."



     Section 20.  Section 39-71-907, MCA, is amended to read:

     "39-71-907.  Certified person with a disability to be compensated for injury as provided by chapter -- insurer liability for compensation limited -- appropriation. (1) A person certified as having a physical or mental disability that constitutes or results in a substantial impediment to employment who receives an injury, as defined in 39-71-119, that results in death or disability must be paid compensation in the manner and to the extent provided in this chapter or, in case of death resulting from the injury, the compensation must be paid to the person's beneficiaries or dependents. The liability of the insurer for payment of medical and burial benefits as provided in this chapter is limited to those benefits arising from services rendered during the period of 104 weeks after the date of injury. The liability of the insurer for payment of benefits as provided in this chapter is limited to 104 weeks of compensation benefits actually paid. Thereafter, all compensation and the cost of all medical care and burial are the liability of the fund.

     (2)  The amounts necessary for the payment of benefits from this fund are statutorily appropriated, as provided in 17-7-502, from this fund."



     Section 21.  Section 39-71-2321, MCA, is amended to read:

     "39-71-2321.  What to be deposited in state fund. (1) All premiums, penalties, recoveries by subrogation, interest earned upon money belonging to the state fund, and securities acquired by or through use of money, taxes collected under 39-71-2503 and 39-71-2505, and the interest and penalties on the taxes in accordance with 15-1-501 must be deposited in the state fund. They must be separated into two accounts based upon whether they relate to claims for injuries resulting from accidents that occurred before July 1, 1990, or claims for injuries resulting from accidents that occur on or after that date.

     (2)  All funds deposited in the state fund are statutorily appropriated as provided in 17-7-502 may be spent as provided in 17-8-101(2)(b)."



     Section 22.  Section 44-12-206, MCA, is amended to read:

     "44-12-206.  Disposition of proceeds of sale. (1) Whenever property is seized, forfeited, and sold under the provisions of this chapter, the net proceeds of the sale must be distributed as follows:

     (a)  to the holders of security interests who have presented proper proof of their claims, if any, up to the amount of their interests in the property;

     (b)  the remainder, if any, to the county treasurer of the county in which the property was seized, who shall establish and maintain a drug forfeiture account and deposit the remainder into the account, except as provided in subsections (1)(c) through (1)(e);

     (c)  if the property was seized within the corporate limits of a city or town by a law enforcement agency of that city or town, the remainder, if any, to the city or town treasurer, who shall establish and maintain a drug forfeiture account and deposit the remainder into the account, except as provided in subsections (1)(d) and (1)(e);

     (d)  if the property was seized by an employee of the state, the remainder, if any, to the account established is allocated as provided in subsection (3), except as provided in subsection (1)(e); and

     (e)  if the property was seized as a result of the efforts of more than one law enforcement agency, the remainder, if any, to the accounts required by this subsection (1), pro rata in the proportions represented by the agencies' expenses of investigation, as determined by the attorney general.

     (2)  All proceeds from any source that are deposited into a county, city, or town drug forfeiture account must in each fiscal year be appropriated to and remain available until expended by the confiscating agency for drug laws enforcement and education concerning drugs.

     (3)  (a)  Net Each year, the first $125,000 of net proceeds received by the state under subsections (1)(d) and (1)(e) must be deposited in an account in the state special revenue fund to the credit of the department of justice. The department may expend the money in the account only for purposes of enforcement of drug laws. An amount up to $125,000 each year is statutorily appropriated, as provided in 17-7-502, to the attorney general for enforcement of drug laws. Any expenditure in excess of $125,000 each fiscal year requires approval through budget amendment, as provided in Title 17, chapter 7, part 4.

     (b) Each year, net proceeds in excess of $125,000 that are received by the state under subsections (1)(d) and (1)(e) must be deposited equally between the state special revenue account and the general fund."



     Section 23.  Section 61-10-148, MCA, is amended to read:

     "61-10-148.  Disposition of fines and forfeited bonds. (1) Except as provided in 61-12-701 and subsection (2) of this section, one-half of all the money collected as fines and forfeited bonds for violations of Title 61, chapter 10, must be remitted monthly by the county treasurer to the state treasurer for deposit in the highway nonrestricted account in the state special revenue state general fund. The remaining half, less the deductions required by law, must be deposited in the county road fund. This subsection does not apply to fines and forfeited bonds paid to justices' courts.

     (2)  If the apprehension or arrest was for a violation of Title 61, chapter 10, and if the offense occurred on a road or highway not included under the provisions of 60-2-128 and 60-2-203, all money collected as fines and forfeited bonds must be distributed to the county treasurer for deposit in the county road fund."



     Section 24.  Section 77-1-131, MCA, is amended to read:

     "77-1-131.  (Temporary) State lands historic right-of-way account -- statutory appropriation. There is a state lands historic right-of-way account in the state special revenue fund. The application fee collected by the department pursuant to 77-1-130(1)(a) must be deposited in the account. Money in the account is statutorily appropriated to the department, as provided in 17-7-502, must be used for the expenses of the department in administering 77-1-130. Money in the account on the termination date of the account must be deposited in the general fund. (Terminates October 1, 2003--sec. 5, Ch. 461, L. 1997.)"



     Section 25.  Section 80-2-103, MCA, is amended to read:

     "80-2-103.  Administration of trust assets. Funds and the proceeds of the trust assets which that are not authorized to be administered by the secretary of agriculture under 80-2-102 must be received by the department and paid by it to the state treasurer for deposit in the expendable trust fund and are statutorily appropriated, as provided in 17-7-502, to be used for expenditure or obligation by the department for the purposes of 80-2-102 or for the rural rehabilitation purposes permissible under the charter of the now dissolved Montana rural rehabilitation corporation as may be agreed upon between the department and the secretary of agriculture, subject to Public Law 499. Expenditures for actual and necessary expenses required for the efficient administration of this part must be made from temporary appropriations, as described in 17-7-501(1) or (2), made for that purpose."



     Section 26.  Section 85-2-123, MCA, is amended to read:

     "85-2-123.  Deposit of fees and penalties. Except as provided in 85-2-124 and 85-2-241, all fees and penalties collected under this chapter shall must be deposited in the water right appropriation account established in 85-2-318. Except for fines collected by a district court under 85-2-122, all penalties or fines imposed by any court other than a justice's court for a violation of this chapter shall must be deposited in the general fund of the county where the court presides and shall must be disposed of in the same manner as any other penalty or fine."



     Section 27.  Section 85-2-213, MCA, is amended to read:

     "85-2-213.  Notice of order -- additional filing period. (1) To assure ensure that all persons who may claim an existing water right are notified of the requirement to file a claim of that right, the Montana supreme court shall give notice of the order as follows:

     (a)(1)  It shall cause the order, printed in not less than 10-point type, to be placed in a prominent and conspicuous place in all daily newspapers of the state and in at least one newspaper published in each county of the state within 30 days after the Montana supreme court order as provided in 85-2-212 and in April of 1980, 1981, 1982, and 1983.

     (b)(2)  It shall cause the order, in writing, to be placed in a prominent and conspicuous location in each county courthouse in the state within 30 days after the Montana supreme court order as provided in 85-2-212.

     (c)  It shall provide a sufficient number of copies of the order to the county treasurers before October 15, 1979, 1980, 1981, and 1982, and the county treasurers shall enclose a copy of the order with each statement of property taxes mailed in 1979, 1980, 1981, and 1982. In the implementation of this subsection, the department shall provide reimbursement to each county treasurer for the reasonable additional costs incurred by the treasurer arising from the inclusion of the order required by this section. The department shall be reimbursed for such costs from the water right adjudication account created by 85-2-241.

     (d)(3)  It shall provide copies of the order, in writing, to the press services with offices located in Helena within 30 days after the Montana supreme court order as provided in 85-2-212, and in April of 1980, 1981, 1982, and 1983.

     (e)(4)  It shall, under authority granted to the states by 43 U.S.C. 666, provide for service of the petition and order upon the United States attorney general or his the attorney general's designated representative.

     (f)(5)  It may also in its discretion give notice of the order in any other manner that will carry out the purposes of this section.

     (g)(6)  It may also in its discretion order that the department or the water judge assist the Montana supreme court in the carrying out of this section.

     (2)  (a) To ensure that all persons who failed to file a claim of existing right under 85-2-221(1) are provided notice of the opportunity to file a claim on or before July 1, 1996, as provided in 85-2-221(3), the department shall provide notice as follows:

     (i)  It shall, in October 1993, April and October 1994, April and October 1995, and April 1996, cause a notice of the right to file a claim in accordance with 85-2-221(3) to be published in all daily newspapers in the state and in at least one newspaper in each county in the state.

     (ii) It shall, in October 1993, April and October 1994, April and October 1995, and April 1996, provide copies of the notice, in writing, to the press services with offices located in Helena.

     (iii) It shall, by October 1993, provide copies of the notice to the United States attorney general and to all Indian tribes in Montana.

     (iv) It shall cause copies of the notice to be posted in a conspicuous location in each county courthouse and department field office in the state and to be maintained in that location through July 1, 1996.

     (v)  It may also, in its discretion, provide notice in any other manner that will effectuate the purposes of 85-2-221(3).

     (b)  The water court shall include notice of 85-2-221(3) in all notices, decrees, or orders issued pursuant to 85-2-231 or 85-2-232 after July 1, 1993, until July 1, 1996.

     (3)  Notice given in accordance with subsection (2) must at a minimum indicate that any claim of existing right not filed with the department before April 30, 1982, may be filed by physically filing it with the department on or before July 1, 1996, or sending it by United States mail, postmarked on or before July 1, 1996. Additionally, the notice must indicate that under 85-2-226, a failure to file or mail the claim results in the forfeiture for all time of any existing rights to the use of water that are not claimed in accordance with the provisions of 85-2-221."



     Section 28.  Section 85-2-225, MCA, is amended to read:

     "85-2-225.  Filing fee -- processing fee for remitted claims. (1) Each claim filed under 85-2-221 or 85-2-222 must be accompanied by a filing fee in the amount of $40, subject to the following exceptions:

     (a)  the total filing fees for all claims filed by one person in any one water court division may not exceed $480; and

     (b)  no a filing fee is not required accompanying a claim of an existing right that is included in a decree of a court in the state of Montana and that is accompanied by a copy of that decree or pertinent portion thereof of the decree.

     (2)  A claim that is exempt from the filing requirements of 85-2-221(1) but that is voluntarily filed must be accompanied by a filing fee in the amount of $40. Exempt claims for a single development with several uses if filed simultaneously may be accompanied by a filing fee in the amount of $40.

     (3)  (a) Except as provided in subsection (3)(c), in addition to the filing fee set forth in subsection (1), each statement of claim filed under 85-2-221(3) must be accompanied by a processing fee in the amount of $150, which must be deposited in the water rights adjudication account for the examination of late claims by the department and for the publication of notices by the department as required under 85-2-213(2) general fund.

     (b)  The water judge shall assess against the late claimant all reasonable administrative costs and expenses that may be incurred by the court due to the filing of the late claim and the consideration of the objection, which assessment must be deposited in the water rights adjudication account general fund.

     (c)  For a statement of claim that was filed after April 30, 1982, but prior to July 1, 1993, or for a statement of claim filed by a state agency, the processing fee provided for in subsection (3)(a) must be paid on or before a date to be established by the department by rule, but no later than July 1, 1999."



     Section 29.  Section 85-2-232, MCA, is amended to read:

     "85-2-232.  Availability of temporary preliminary or preliminary decree. (1) (a) The water judge shall send to the department a copy of a temporary preliminary decree or preliminary decree issued for a basin.

     (b)  The water judge shall serve by mail a notice of availability of the temporary preliminary decree or preliminary decree to each person who has filed a claim of existing right within the decreed basin or to that person's successor as documented in the department's records.

     (c)  The water judge shall also serve by mail a notice of availability of the temporary preliminary decree or preliminary decree to the purchaser under contract for deed, as defined in 70-20-115, of property in connection with which a claim of existing right has been filed within the decreed basin.

     (d)  In the Powder River basin, the water judge shall serve by mail a notice of availability of the temporary preliminary decree or preliminary decree to each person or to that person's successor as documented in the department's records, who has filed a declaration of an existing right.

     (e)  The water judge shall enclose with a notice required under subsections (1)(b) through (1)(d) an abstract of the disposition of the claimed or declared existing right of a person identified in this section or that person's successor as documented in the department's records.

     (f)  The notice of availability required under this section must also be served upon:

     (i)  those issued or having applied for and not having been denied a permit to beneficially use water within the decreed basin pursuant to Title 85, chapter 2, part 3;

     (ii) those granted a reservation within the decreed basin pursuant to 85-2-316; or

     (iii) other interested persons who request service of the notice from the water judge.

     (2)  The clerk or person designated by the water judge to mail the notice shall make a general certificate of mailing certifying that a copy of the notice has been placed in the United States mail, postage prepaid, addressed to each party required to be served notice of the temporary preliminary decree or preliminary decree. The certificate is conclusive evidence of legal notice of entry of decree.

     (3)  Notice of the availability of a preliminary decree must also be published at least once each week for 3 consecutive weeks in at least three newspapers of general circulation that cover the water division or divisions in which the decreed basin is located. This notice must be provided before the final decree for the basin is issued.

     (4)  A person may obtain a copy of the temporary preliminary decree or preliminary decree upon payment of a fee of $20 or the cost of printing, whichever is greater, to the water judge. The fee must be deposited in the state general fund."



     Section 30.  Section 85-20-402, MCA, is amended to read:

     "85-20-402.  Statutory appropriation of Accounting for federal funds. (1) There must be created those accounts that are necessary within the federal special revenue fund established under 17-2-102 for the purposes of this part.

     (2)  Federal funds deposited in the accounts and interest and earnings on the accounts are statutorily appropriated, as provided in 17-7-502, and must be used for the following purposes or to reimburse the state for expenditures incurred for the following purposes:

     (a)  establishment, administration, and enforcement of the Yellowstone controlled ground water area;

     (b)  inventory, sampling, reporting, and database management;

     (c)  provision for administrative costs and the cost of any study or any other necessary activity by the technical oversight committee; and

     (d)  any other necessary activity pursuant to this part."



     Section 31.  Section 87-1-601, MCA, is amended to read:

     "87-1-601.  Use of fish and game money. (1) (a) Except as provided in subsection (7), all money collected or received from the sale of hunting and fishing licenses or permits, from the sale of seized game or hides, from damages collected for violations of the fish and game laws of this state, or from appropriations, or received by the department from any other state source must be turned over to the state treasurer and placed in the state special revenue fund to the credit of the department.

     (b)  Any money received from federal sources must be deposited in the federal special revenue fund to the credit of the department.

     (c)  All interest earned on money from the following sources must be placed in the state special revenue fund to the credit of the department:

     (i)  the general license account;

     (ii)  the license drawing account;

     (iii)  accounts established to administer the provisions of 87-1-246, 87-1-258, 87-1-605, 87-2-412, 87-2-722, and 87-2-724; and

     (iv)  money received from the sale of any other hunting and fishing license.

     (2)  The money described in subsection (1) must be exclusively set apart and made available for the payment of all salaries, per diem, fees, expenses, and expenditures authorized to be made by the department under the terms of this title. The money described in subsection (1) must be spent for those purposes by the department, subject to appropriation by the legislature.

     (3)  Any reference to the fish and game fund in this code means fish and game money in the state special revenue fund and the federal special revenue fund.

     (4)  Except as provided in subsections (7) and (8), all money collected or received from fines and forfeited bonds, except money collected or received by a justice's court, that relates to violations of state fish and game laws under Title 87 must be deposited by the state treasurer and credited to the department in a state special revenue fund account for this purpose. Out of any fine imposed by a court for the violation of the fish and game laws, the costs of prosecution must be paid to the county where the trial was held in any case in which the fine is not imposed in addition to the costs of prosecution.

     (5)  Money received by the department from the sale of surplus real property; from exploration or development of oil, gas, or mineral deposits from lands acquired by the department except royalties or other compensation based on production; and from leases of interests in department real property not contemplated at the time of acquisition must be deposited in an account within the nonexpendable trust fund of the state treasury. The interest derived from the fund, but not the principal, may be used only for the purpose of operation, development, and maintenance of real property of the department, and only upon appropriation by the legislature. If the use of money as set forth in this section would result in violation of applicable federal laws or state statutes specifically naming the department or money received by the department, then the use of this money must be limited in the manner, method, and amount to those uses that do not result in a violation.

     (6)  Money received from the collection of license drawing applications is not subject to the deposit requirements of 17-6-105. The department shall deposit license drawing application money within a reasonable time after receipt.

     (7)  Money collected or received from fines or forfeited bonds for the violation of 77-1-801, 77-1-806, or rules adopted under 77-1-804 must be deposited as follows:

     (a)  50% in an account for use by the department for the enforcement of 77-1-801, 77-1-806, and rules adopted under 77-1-804; and

     (b)  50% in the state lands recreational use account established by 77-1-808 for use by the department of natural resources and conservation in the management of state lands in the state general fund.

     (8)  After July 1, 1995, the The state treasurer shall deposit in the state general fund one-half of the money received from the fines pursuant to 87-1-102."



     Section 32.  Section 90-4-103, MCA, is amended to read:

     "90-4-103.  Alternative energy and energy conservation research development and demonstration account established program -- allocation of funds. (1) There is within the state special revenue fund an alternative energy and energy conservation research development and demonstration account program. Money is paid into this account from repayments of grants and loans previously awarded from this account must be deposited in the general fund. The state treasurer shall draw warrants payable from this account appropriations provided for the program upon order of the department.

     (2)  Each fiscal year the department shall allocate the funds appropriated from for the alternative energy and energy conservation research development and demonstration account program for the following:

     (a)  grants under 90-4-104 and 90-4-106;

     (b)  loans under 90-4-104 and 90-4-106;

     (c)  grants to state governmental units under 90-4-109;

     (d)  program administration; and

     (e)  matching federal energy programs and petroleum violation escrow account money if consistent with the purposes of this chapter.

     (3)  To assure ensure that the program offers the greatest possible benefits during the fiscal year, the department may reallocate funds among the categories specified in this section based on the availability of funds or the applications it receives and the department's evaluation of the relative merits of each project."



     Section 33.  Section 90-4-106, MCA, is amended to read:

     "90-4-106.  Criteria for grant or loan awards. The department may award grants or loans to applicants under 90-4-105 in accordance with the following criteria:

     (1)  A grant may cover a period exceeding 1 year, provided that all funds for the grant must be encumbered or accrued from the program appropriation for the year the grant is authorized.

     (2)  The department may give preference to projects which that are also supported by funding from the federal government or other persons, provided the projects are consistent with the other objectives of the department. The purpose of this preference is to use the alternative energy and energy conservation research development and demonstration account appropriations for matching moneys funds in order to support more substantial research or commercialization.

     (3)  The department may give preference to research centers unattached to existing educational institutions where several investigators can share supporting services. However, this shall may not be interpreted to prohibit the department from awarding grants or loans to existing educational institutions.

     (4)  The department may give preference to research centers which that make information available to individuals, small businesses, and small communities seeking the use of renewable energy sources and energy conservation in their homes, plants, places of business, and small communities.

     (5)  All information resulting from such research shall must be made available to the public.

     (6)  The department may expend or commit available alternative energy and energy conservation research development and demonstration funds. The department may commit funds for demonstration purposes only when in its judgment such the expenditures or commitments have good potential for producing savings of nonrenewable energy sources. The department may not commit funds for demonstration purposes when any of the following conditions are present:

     (a)  previous commitments of a similar nature were not productive;

     (b)  a similar demonstration has been conducted within close geographic proximity of the geographic location of the proposed demonstration project, other than a project proposed for funding under 90-4-109;

     (c)  the proposed demonstration project would not further the purpose of this part."



     Section 34.  Section 90-4-109, MCA, is amended to read:

     "90-4-109.  State governmental unit grants. (1) (a) The department may award grants from the alternative energy and energy conservation research development and demonstration account appropriations to state governmental units. These grants must be used to further the purposes of this part by providing money for state governmental units for energy conservation measures.

     (b)  State governmental units must shall apply to the department for grants.

     (c)  The department shall prescribe the form for applications and develop criteria for awarding grants under this section, including provisions requiring matching funds or repayment of grant funds to the alternative energy and energy conservation research development and demonstration account general fund.

     (d)  Each agency awarded a grant shall either repay the grant or reduce its budget commensurate with the documented energy savings resulting from the grant.

     (2)  All grants awarded under this section must be administered by the department of administration according to Title 18, chapter 2."



     Section 35.  Section 90-4-215, MCA, is amended to read:

     "90-4-215.  Account established -- use. (1) There is created an energy conservation and energy assistance account within the federal special revenue fund established in 17-2-102.

     (2)  The amounts deposited in the account and interest and earnings on the account are statutorily appropriated, as provided in 17-7-502, to may be used by the department of public health and human services to fund its low-income energy assistance and home weatherization programs created in 90-4-201. However, the department may use the principal of the account only if the federal grants for either of those programs is are reduced below the federal fiscal year 1987 level. The department may not use the principal to increase expenditures to either program above the level of the federal grant for that program for federal fiscal year 1987."



     Section 36.  Section 90-6-304, MCA, is amended to read:

     "90-6-304.  Accounts established. (1) There is within the state agency fund type a hard-rock mining impact account. Money is payable into this account from payments made by a mining developer in compliance with the written guarantee from the developer to meet the increased costs of public services and facilities as specified in the impact plan provided for in 90-6-307. The state treasurer shall draw warrants from this account upon order of the board.

     (2)  There is within the state special revenue fund a hard-rock mining impact trust account. Within this trust account, there is established a reserve account not to exceed $100,000.

     (a)  Money within the hard-rock mining impact trust account may be used:

     (i)  for the administrative and operating expenses of the board, as provided by 90-6-303(4);

     (ii) to establish and maintain the reserve account; and

     (iii) for distribution to the counties of origin, as provided by 90-6-331(1) and this section.

     (b)  Money within the hard-rock mining impact trust reserve account may be used for the administrative and operating expenses of the board if:

     (i)  the revenue provided under 15-37-117(1)(b) is less than the amount appropriated for the administrative and operating expenses of the board; or

     (ii) the use of the reserve account revenue is necessary to allow the board to meet its quasi-judicial responsibilities under 90-6-307, 90-6-311, or 90-6-403(3).

     (3)  Money is payable into the hard-rock mining impact trust account under the provisions of 15-37-117. After first deducting the administrative and operating expenses of the board, as provided in 90-6-303, and then establishing and maintaining the reserve account in the amount of $100,000, as provided in subsection (2) of this section, the remaining money must be segregated within the account by county of origin. The state treasurer shall draw warrants from this account upon order of the board."



     Section 37.  Section 90-6-331, MCA, is amended to read:

     "90-6-331.  Fund transfer. (1) On July 1, 1990, and prior Prior to each October 1 thereafter, all money segregated by county in the hard-rock mining impact trust account following allocation to the hard-rock mining impact trust reserve account established in 90-6-304(2) as of September 1 immediately preceding must be transferred to the county for which the funds have been held in deposit. The funds so transferred must be deposited in the county hard-rock mine trust reserve account established in 7-6-2225.

     (2)  The transfer of funds required by this section is a statutory appropriation pursuant to 17-7-502."



     Section 38.  Repealer. Section 85-2-241, MCA, is repealed.



     Section 39.  Effective date. [This act] is effective July 1, 1999.

- END -




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