SENATE BILL NO. 288
INTRODUCED BY L. NELSON
AN ACT REVISING THE DISPOSITION OF CASH WHEN A SCHOOL DISTRICT CEASES TO EXIST TO REQUIRE THAT WHEN THE TERRITORY IS ASSUMED BY MORE THAN ONE DISTRICT, THE CASH REMAINING, AFTER PAYMENT OF DEBTS, MUST BE PRORATED BETWEEN THE DISTRICTS ON THE BASIS OF THE TAXABLE VALUE OF THE TERRITORY ASSUMED BY EACH DISTRICT; AMENDING SECTION 20-6-413, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-6-413, MCA, is amended to read:
"20-6-413. Cash disposition when district ceases to exist -- special levy for tuition debt. Whenever a district shall
cease ceases to exist in any manner prescribed in this title, except when districts are consolidated, the cash on hand to the
credit of the funds of the district and the debts of such the former district shall must be allocated in the following manner:
(1) Any cash to the credit of the district shall must be used to pay any debts of the district, including bonded
indebtedness, except that any cash available in the debt service fund shall must be used first to pay bond interest and all
outstanding bonds.
(2) If any cash remains to the credit of the district after paying its debts, the cash shall must be transferred by the county
treasurer to the credit of the district or districts assuming its territory. When the territory is assumed by more than one
district, the remaining cash shall must be prorated between the districts on the basis of the number of children attending
school and residing within the taxable value of the territory assumed by each district as determined by the county
superintendent.
(3) If any tuition debt remains as an obligation of the district, the tuition debt shall be is the obligation of the taxable
property of the discontinued district, except when the tuition debt has been assumed by the consolidated or annexing district.
The tuition debt shall must be financed by a mill levy on the property of the discontinued district and paid from these
proceeds by the county superintendent.
(4) If any debts, other than bonded indebtedness and tuition, remain as an obligation of the district after the cash has
been utilized under the provisions of subsection (1) above, the debts shall must be assigned in the same manner prescribed
for the transfer of cash under subsection (2) above."
Section 2. Effective date. [This act] is effective on passage and approval.
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Latest Version of SB 288 (SB0288.ENR)
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