1999 Montana Legislature

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SENATE BILL NO. 422

INTRODUCED BY D. TOEWS, R. PECK



A BILL FOR AN ACT ENTITLED: "AN ACT REVISING LAWS RELATED TO TUITION AND SPECIAL EDUCATION; ELIMINATING ALL TUITION AGREEMENTS EXCEPT THOSE NEGOTIATED WITH OTHER STATES OR PROVINCES; PROVIDING THAT A DISTRICT THAT SERVES AN OUT-OF-DISTRICT CHILD WITH DISABILITIES RECEIVE FUNDS TO PAY FOR ALLOWABLE COSTS OF SERVING THE CHILD; PROVIDING FOR A TRANSFER OF FUNDS; AUTHORIZING DISTRICTS TO ENTER INTO INTERLOCAL AGREEMENTS FOR TUITION CONTRACTS TO PAY FOR EDUCATIONAL SERVICES FOR OUT-OF-DISTRICT STUDENTS; ESTABLISHING THE FORMULA TO DETERMINE THE AMOUNT THAT A RECEIVING DISTRICT MAY CHARGE A SENDING DISTRICT FOR PROVIDING EDUCATIONAL SERVICES FOR CERTAIN OUT-OF-DISTRICT STUDENTS; AMENDING SECTIONS 20-3-205, 20-3-324, 20-5-101, 20-5-102, 20-5-320, 20-5-321, 20-5-323, 20-5-324, 20-6-702, 20-7-419, 20-7-420, 20-7-421, 20-7-424, 20-9-141, 20-9-212, 20-9-321, 20-9-335, 20-9-334, AND 20-9-406, AND 20-9-505, MCA; REPEALING SECTION 20-9-334, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."



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



     NEW SECTION.  Section 1.  Payments to districts serving nonresident students with disabilities. (1) The superintendent of public instruction shall provide to each district serving an out-of-district student with disabilities an amount that is equal to the allowable costs of serving each child with disabilities described in 20-9-321.

     (2) Each payment must be based on the annual December 1 child count of children with disabilities and must be made within the same fiscal year that the nonresident student count is reported.

     (3) The district shall deposit the funds received under this section in an account in the district's miscellaneous programs fund established in 20-9-507 and shall use the funds to pay the allowable costs of students with disabilities under 20-7-431.

     (4) The superintendent of public instruction shall adopt rules necessary to implement procedures for distribution of funds and accounting under this section.



     Section 1.  Section 20-3-205, MCA, is amended to read:

     "20-3-205.  Powers and duties. The county superintendent has general supervision of the schools of the county within the limitations prescribed by this title and shall perform the following duties or acts:

     (1)  determine, establish, and reestablish trustee nominating districts in accordance with the provisions of 20-3-352, 20-3-353, and through 20-3-354;

     (2)  administer and file the oaths of members of the boards of trustees of the districts in the county in accordance with the provisions of 20-3-307;

     (3)  register the teacher or specialist certificates or emergency authorization of employment of any person employed in the county as a teacher, specialist, principal, or district superintendent in accordance with the provisions of 20-4-202;

     (4)  act on each tuition agreement with an adjoining state or province CONTRACT and transportation obligation submitted in accordance with the provisions of 20-5-323 and 20-5-324;

     (5)  file a copy of the audit report for a district in accordance with the provisions of 20-9-203;

     (6)  classify districts in accordance with the provisions of 20-6-201 and 20-6-301;

     (7)  keep a transcript and reconcile the district boundaries of the county in accordance with the provisions of 20-6-103;

     (8)  fulfill all responsibilities assigned under the provisions of this title regulating the organization, alteration, or abandonment of districts;

     (9)  act on any unification proposition and, if approved, establish additional trustee nominating districts in accordance with 20-6-312 and 20-6-313;

     (10) estimate the average number belonging (ANB) of an opening school in accordance with the provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-506;

     (11) process and, when required, act on school isolation applications in accordance with the provisions of 20-9-302;

     (12) complete the budgets, compute the budgeted revenues revenue and tax levies, file final budgets and budget amendments, and fulfill other responsibilities assigned under the provisions of this title regulating school budgeting systems;

     (13) submit an annual financial report to the superintendent of public instruction in accordance with the provisions of 20-9-211;

     (14) monthly, unless otherwise provided by law, order the county treasurer to apportion state money, county school money, and any other school money subject to apportionment in accordance with the provisions of 20-9-212, 20-9-335, 20-9-347, 20-10-145, or 20-10-146;

     (15) act on any request to transfer average number belonging (ANB) in accordance with the provisions of 20-9-313(3);

     (16) calculate the estimated budgeted general fund sources of revenue in accordance with the general fund revenue provisions of the general fund part of this title;

     (17) compute the revenues revenue and the district and county levy requirements for each fund included in each district's final budget and report the computations to the board of county commissioners in accordance with the provisions of the general fund, transportation, bonds, and other school funds parts of this title;

     (18) file and forward bus driver certifications, transportation contracts, and state transportation reimbursement claims in accordance with the provisions of 20-10-103, 20-10-143, or 20-10-145;

     (19) for districts that do not employ a district superintendent or principal, recommend library book and textbook selections in accordance with the provisions of 20-7-204 or 20-7-602;

     (20) notify the superintendent of public instruction of a textbook dealer's activities when required under the provisions of 20-7-605 and otherwise comply with the textbook dealer provisions of this title;

     (21) act on district requests to allocate federal money for indigent children for school food services in accordance with the provisions of 20-10-205;

     (22) perform any other duty prescribed from time to time by this title, any other act of the legislature, the policies of the board of public education, the policies of the board of regents relating to community college districts, or the rules of the superintendent of public instruction;

     (23) administer the oath of office to trustees without the receipt of pay for administering the oath;

     (24) keep a record of official acts, preserve all reports submitted to the superintendent under the provisions of this title, preserve all books and instructional equipment or supplies, keep all documents applicable to the administration of the office, and surrender all records, books, supplies, and equipment to the next superintendent;

     (25) within 90 days after the close of the school fiscal year, publish an annual report in the county newspaper stating the following financial information for the school fiscal year just ended for each district of the county:

     (a)  the total of the cash balances of all funds maintained by the district at the beginning of the year;

     (b)  the total receipts that were realized in each fund maintained by the district;

     (c)  the total expenditures that were made from each fund maintained by the district; and

     (d)  the total of the cash balances of all funds maintained by the district at the end of the school fiscal year; and

     (26) hold meetings for the members of the trustees from time to time at which matters for the good of the districts must be discussed."



     Section 3.  Section 20-3-324, MCA, is amended to read:

     "20-3-324.  Powers and duties. As prescribed elsewhere in this title, the trustees of each district shall:

     (1)  employ or dismiss a teacher, principal, or other assistant upon the recommendation of the district superintendent, the county high school principal, or other principal as the board considers necessary, accepting or rejecting any recommendation as the trustees in their sole discretion determine, in accordance with the provisions of Title 20, chapter 4;

     (2)  employ and dismiss administrative personnel, clerks, secretaries, teacher aides, custodians, maintenance personnel, school bus drivers, food service personnel, nurses, and any other personnel considered necessary to carry out the various services of the district;

     (3)  administer the attendance provisions and tuition provisions with an adjoining state or province and govern the pupils of the district in accordance with the provisions of the pupils chapter of this title;

     (4)  call, conduct, and certify the elections of the district in accordance with the provisions of the school elections chapter of this title;

     (5)  participate in the teachers' retirement system of the state of Montana in accordance with the provisions of the teachers' retirement system chapter of Title 19;

     (6)  participate in district boundary change actions in accordance with the provisions of the districts chapter of this title;

     (7)  organize, open, close, or acquire isolation status for the schools of the district in accordance with the provisions of the school organization part of this title;

     (8)  adopt and administer the annual budget or a budget amendment of the district in accordance with the provisions of the school budget system part of this title;

     (9)  conduct the fiscal business of the district in accordance with the provisions of the school financial administration part of this title;

     (10) establish the ANB, BASE budget levy, over-BASE budget levy, additional levy, operating reserve, and state impact aid amounts for the general fund of the district in accordance with the provisions of the general fund part of this title;

     (11) establish, maintain, budget, and finance the transportation program of the district in accordance with the provisions of the transportation parts of this title;

     (12) issue, refund, sell, budget, and redeem the bonds of the district in accordance with the provisions of the bonds parts of this title;

     (13) when applicable, establish, financially administer, and budget for the tuition fund, retirement fund, building reserve fund, adult education fund, nonoperating fund, school food services fund, miscellaneous programs fund, building fund, lease or rental agreement fund, traffic education fund, impact aid fund, interlocal cooperative agreement fund, and other funds as authorized by the state superintendent of public instruction in accordance with the provisions of the other school funds parts of this title;

     (14) when applicable, administer any interlocal cooperative agreement, gifts, legacies, or devises in accordance with the provisions of the miscellaneous financial parts of this title;

     (15) hold in trust, acquire, and dispose of the real and personal property of the district in accordance with the provisions of the school sites and facilities part of this title;

     (16) operate the schools of the district in accordance with the provisions of the school calendar part of this title;

     (17) establish and maintain the instructional services of the schools of the district in accordance with the provisions of the instructional services, textbooks, vocational education, and special education parts of this title;

     (18) establish and maintain the school food services of the district in accordance with the provisions of the school food services parts of this title;

     (19) make reports from time to time as the county superintendent, superintendent of public instruction, and board of public education may require;

     (20) retain, when considered advisable, a physician or registered nurse to inspect the sanitary conditions of the school or the general health conditions of each pupil and, upon request, make available to any parent or guardian any medical reports or health records maintained by the district pertaining to the child;

     (21) for each member of the trustees, visit each school of the district not less than once each school fiscal year to examine its management, conditions, and needs, except trustees from a first-class school district may share the responsibility for visiting each school in the district;

     (22) procure and display outside daily in suitable weather on school days at each school of the district an American flag that measures not less than 4 feet by 6 feet;

     (23) provide that an American flag that measures approximately 12 inches by 18 inches be prominently displayed in each classroom in each school of the district, except in a classroom in which the flag may get soiled. This requirement is waived if the flags are not provided by a local civic group.

     (24) adopt and administer a district policy on assessment for placement of any child who enrolls in a school of the district from a nonpublic school that is not accredited, as required in 20-5-110;

     (25) upon request and in compliance with confidentiality requirements of state and federal law, disclose to interested parties school district student assessment data for any test required by the board of public education; and

     (26) perform any other duty and enforce any other requirements for the government of the schools prescribed by this title, the policies of the board of public education, or the rules of the superintendent of public instruction."



     Section 2.  Section 20-5-101, MCA, is amended to read:

     "20-5-101.  Admittance of child to school. (1) The trustees shall assign and admit a child to a school in the district when the child is:

     (a)  6 years of age or older on or before September 10 of the year in which the child is to enroll but is not yet 19 years of age;

     (b)  a resident of or resides in the district; and

     (c)  otherwise qualified under the provisions of this title to be admitted to the school.

     (2)  The trustees of a district may assign and admit any nonresident child from an adjoining state or province FOR PAYMENT UNDER A NEGOTIATED TUITION CONTRACT to a school in the district under the tuition provisions of this title.

     (3)  The trustees may at their discretion assign and admit a child to a school in the district who is under 6 years of age or an adult who is 19 years of age or older if there are exceptional circumstances that merit waiving the age provision of this section.

     (4)  The trustees shall assign and admit a child who is homeless, as defined in the Stewart B. McKinney Homeless Assistance Act (Public Law 100-77), to a school in the district regardless of residence. The trustees may not require an out-of-district attendance agreement or tuition for a homeless child.

     (5)  Except for the provisions of subsection (4), tuition for a nonresident child must be paid in accordance with the tuition provisions of this title."



     Section 3.  Section 20-5-102, MCA, is amended to read:

     "20-5-102.  Compulsory enrollment and excuses. (1) Except as provided in subsection (2), any parent, guardian, or other person who is responsible for the care of any child who is 7 years of age or older prior to the first day of school in any school fiscal year shall cause the child to be instructed in the program prescribed by the board of public education pursuant to 20-7-111 until the later of the following dates:

     (a)  the child's 16th birthday;

     (b)  the date of completion of the work of the 8th grade.

     (2)  A parent, guardian, or other person shall enroll the child in the school assigned by the trustees of the district within the first week of the school term or when he the child establishes residence in the district unless the child is:

     (a)  enrolled in a school of another district or DISTRICT OR state under any of the tuition provisions of this title;

     (b)  provided with supervised correspondence study or supervised home study under the transportation provisions of this title;

     (c)  excused from compulsory school attendance upon a determination by a district judge that attendance is not in the best interest of the child;

     (d)  excused by the board of trustees upon a determination that attendance by a child who has attained the age of 16 is not in the best interest of the child and the school; or

     (e)  enrolled in a nonpublic or home school that complies with the provisions of 20-5-109. For the purposes of this subsection (2)(e), a home school is the instruction by a parent of his the parent's child, stepchild, or ward in his the parent's residence and a nonpublic school includes a parochial, church, religious, or private school."



     Section 2.  Section 20-5-320, MCA, is amended to read:

     "20-5-320.  Attendance with discretionary approval. (1) A child may be enrolled in and attend a school in a Montana school district that is outside of the child's district of residence or a public school in a district of another state or province that is adjacent to the county of the child's residence, subject to discretionary approval by the trustees of the resident district and the district of choice. If the trustees grant discretionary approval of the child's attendance in a school of the district, the parent or guardian of the child from another state or province may be charged tuition and all children from out of the district or from an adjoining state or province may be charged for transportation.

     (2)  (a) Whenever a parent or guardian of a child wishes to have the child attend a school under the provisions of this section, the parent or guardian shall apply to the trustees of the district where the child wishes to attend. The application must be made on an out-of-district attendance agreement form supplied by the district and developed by the superintendent of public instruction.

     (b)  The attendance agreement must set forth the financial obligations, if any, for tuition for a child from another state or province and for costs incurred for transporting the a child from out of the district or from another state or province under Title 20, chapter 10.

     (c)  The trustees of the district of choice may waive any or all of the tuition rate, but any waiver must be applied equally to all students.

     (3)  An out-of-district attendance agreement approved under this section requires that the parent or guardian initiate the request for an out-of-district attendance agreement and that the trustees of both the district of residence and the district of choice approve the TRANSPORTATION PROVISIONS OF THE agreement.

     (4)  If the trustees of the district of choice waive tuition, approval of the resident district trustees is not required.

     (5)(4)  The trustees of a school district may approve or disapprove the out-of-district attendance agreement consistent with this part and the policy adopted by the local board of trustees for out-of-district attendance agreements.

     (6)(5)  The approval of an out-of-district attendance agreement by the applicable approval agents or as the result of an appeal must authorize the child named in the agreement to enroll in and attend the school named in the agreement for the designated school year.

     (7)(6)  The trustees of the district where the child wishes to attend have the discretion to approve any attendance agreement and may deny an attendance agreement PERMISSION FOR A NONRESIDENT STUDENT TO ATTEND if they determine that the transferee poses a disciplinary problem or, that the transfer will result in insufficient room and overcrowding to a degree that the accreditation of the school would be adversely affected by acceptance of the child, OR THAT THE TRANSFER WILL RESULT IN ADDITIONAL COSTS TO THE RECEIVING DISTRICT THAT WILL NOT BE COMPENSATED UNDER 20-5-323.

     (8)(7)  This section does not preclude the trustees of a district from approving an attendance agreement for educational program offerings not provided by the resident district, such as the kindergarten or grades 7 and 8 programs, if the trustees of both districts agree to the terms and conditions for attendance and any tuition and TUITION AND transportation requirement. For purposes of this subsection, the trustees of the resident district shall initiate the out-of-district agreement.

     (9)(8)  (a) A provision of this title may not be construed to deny a parent the right to send a child, at personal expense, to any school of a district other than the resident district when the trustees of the district of choice have approved an out-of-district attendance agreement and the parent has agreed to pay the tuition as prescribed by 20-5-323. However, under this subsection (9), the tuition rate must be reduced by the amount the parent or guardian of the child paid in district and county property taxes during the immediately preceding school fiscal year for the benefit and support of the district in which the child will attend school.

     (b)  For the purposes of this section, "parent or guardian" includes an individual shareholder of a domestic corporation, as defined in 35-1-113, whose shares are 95% held by related family members to the sixth degree of consanguinity or by marriage to the sixth degree of affinity.

     (c)  The tax amount to be credited to reduce any tuition charge to a parent or guardian under subsection (9)(a) is determined in the following manner:

     (i)  determine the percentage of the total shares of the corporation held by the shareholder parent or parents or guardian;

     (ii) determine the portion of property taxes paid in the preceding school fiscal year by the corporation, parent, or guardian for the benefit and support of the district in which the child will attend school.

     (d)  The percentage of total shares as determined in subsection (9)(c)(i) is the percentage of taxes paid as determined in subsection (9)(c)(ii) that is to be credited to reduce the tuition charge.

     (10)(9)  As used in 20-5-320 through 20-5-324, the term "guardian" means the guardian of a minor as provided in Title 72, chapter 5, part 2."



     Section 3.  Section 20-5-321, MCA, is amended to read:

     "20-5-321.  Attendance with mandatory approval -- tuition and TUITION AND transportation. (1) An out-of-district attendance agreement that allows a child to enroll in and attend a school in a Montana school district that is outside of the child's district of residence or in a public school district of a state or province that is adjacent to the county of the child's residence is mandatory whenever:

     (a)  the child resides closer to the school that the child wishes to attend and more than 3 miles from the school that the child would attend in the resident district and:

     (i)  the resident district does not provide transportation; or

     (ii) the district of residence provides transportation and is not within the same county as the child's school district of choice;

     (b)  the child resides in a location where, due to road or geographic conditions, it is impractical to attend the school nearest the child's residence;

     (c)  the child is a member of a family that is required to send another child outside of the elementary district to attend high school and the child of elementary age may more conveniently attend an elementary school where the high school is located, provided that the child resides more than 3 miles from an elementary school in the resident district or that the parent is required to move to the elementary district where the high school is located to enroll another child in high school;

     (d)(A)  the child is under the protective care of a state agency or has been adjudicated to be a youth in need of intervention or a delinquent youth, as defined in 41-5-103; or

     (e)(B)  the child is required to attend school outside of the district of residence as the result of a placement in foster care or a group home licensed by the state.

     (2)  (a) Whenever a parent or guardian of a child, an agency of the state, or a court wishes to have a child attend a school under the provisions of this section, the parent or guardian, agency, or court shall complete an out-of-district attendance agreement in consultation with an appropriate official of the district the child will attend AND PROVIDE A COPY OF THE ATTENDANCE AGREEMENT TO THE OFFICE OF PUBLIC INSTRUCTION.

     (b)  The attendance agreement must set forth the financial obligations, if any, for costs incurred for tuition and A TUITION CONTRACT AND transportation as provided in 20-5-323 and Title 20, chapter 10. A TUITION CONTRACT ENTERED INTO UNDER THIS SECTION MAY NOT EXCEED THE ACTUAL COSTS OF THE SERVICES PROVIDED BY THE ATTENDED DISTRICT LESS THE STATE PORTION OF THE TOTAL PER-ANB PAYMENT ENTITLEMENT PROVIDED IN 20-9-306.

     (c)  The trustees of the district of choice may waive any or all of the tuition rate, but any waiver must be applied equally to all students.

     (3)  Except as provided in subsection (4), the The trustees of the resident district STATE AGENCY, THE COURT, and the trustees of the district of choice shall approve the out-of-district attendance agreement and notify the county superintendent of schools of the county of the child's residence of the approval of the agreement within 10 days. The county superintendent shall approve the agreement for payment under 20-5-324(5). THE COUNTY SUPERINTENDENT SHALL APPROVE THE AGREEMENT FOR PAYMENT UNDER 20-5-324.

     (4)  Unless the child is a child with disabilities who resides in the district, the trustees of the district where the school to be attended is located may disapprove an out-of-district attendance agreement whenever they find that, due to insufficient room and overcrowding, the accreditation of the school would be adversely affected by the acceptance of the child."



     Section 4.  Section 20-5-323, MCA, is amended to read:

     "20-5-323.  Tuition and transportation rates. (1) Except as provided in subsections (3) (2) through (5) (4) (3) AND (4), whenever a child from an adjacent state or province has approval to attend a school outside of the child's district of residence under the provisions of 20-5-320 or 20-5-321 OR 20-5-321, the basis of the rate of tuition is a flat rate for each of the 15 district-size groupings determined by rule by the superintendent of public instruction by March 15 of each year, using statewide district expenditure and revenue data for the general fund, debt service fund, and retirement fund to determine the average district contribution FOR A TUITION CONTRACT MUST MAY BE NEGOTIATED MAY BE CHARGED BY THE DISTRICT AND MUST APPLY UNIFORMLY EXCEPT OF RESIDENCE AND THE DISTRICT OF ATTENDANCE FOR:

     (A) THE PLACEMENT OF A CHILD WITH A DISABILITY OR SPECIAL NEEDS PURSUANT TO TITLE 20, CHAPTER 7, PART 4;

     (B) AN ORDER UNDER TITLE 40, CHAPTER 4, PART 2;

     (C) AN OUT-OF-STATE PLACEMENT BY A STATE AGENCY IN FOSTER CARE OR A GROUP HOME LICENSED BY THE STATE;

     (D) AN OUT-OF-DISTRICT PLACEMENT BY A RESIDENT DISTRICT OF A CHILD WHO RESIDES IN A LOCATION WHERE, DUE TO ROAD OR GEOGRAPHIC CONDITIONS, IT IS IMPRACTICAL FOR THE CHILD TO ATTEND A SCHOOL IN THE RESIDENT DISTRICT;

     (E) AN OUT-OF-DISTRICT PLACEMENT BY A NONOPERATING DISTRICT OR BY A RESIDENT DISTRICT THAT DOES NOT OFFER AN EDUCATIONAL PROGRAM SUCH AS KINDERGARTEN OR GRADES 7 AND 8;

     (F) WHEN THE CHILD IS A RESIDENT OF ANOTHER STATE OR PROVINCE; OR

     (G) WHENEVER THE TRUSTEES OF THE DISTRICT OF ATTENDANCE DETERMINE THAT THE NUMBER OF STUDENTS ATTENDING THE DISTRICT FROM AN ADJACENT DISTRICT IS SO SIGNIFICANT AS TO UNFAIRLY IMPACT TAXES PAID BY RESIDENTS OF THE ATTENDED DISTRICT.

     (2) UNDER THE CIRCUMSTANCES DESCRIBED IN SUBSECTION (1)(A) AND (1)(D) THROUGH (1)(G), THE RECEIVING DISTRICT MAY ENTER INTO NEGOTIATIONS WITH CHARGE THE SENDING DISTRICT TUITION TO REQUIRE THAT THE SENDING DISTRICT PAY FOR THE COSTS OF EDUCATIONAL SERVICES BASED ON THE RATE DETERMINED BY THE RECEIVING DISTRICT. THE RATE THAT A RECEIVING DISTRICT MAY CHARGE FOR TUITION UNDER SUBSECTIONS (1)(D) THROUGH (1)(G) UNDER A TUITION AGREEMENT FOR EDUCATIONAL SERVICES IS THE ADOPTED OVER-BASE BUDGET OF THE RECEIVING DISTRICT DIVIDED BY THE DISTRICT'S TOTAL ANB FOR THE ELEMENTARY OR HIGH SCHOOL PROGRAM.

     (2)  The tuition for children with disabilities must be determined under rules adopted by the superintendent of public instruction for the calculation of tuition for special education pupils.

     (3)  The tuition rate for out-of-district placement pursuant to 20-5-321(1)(d) and (1)(e) for a student without disabilities who requires a program with costs that exceed the average district costs must be determined as the actual individual costs of providing that program according to the following:

     (a)  the district of attendance and the district, person, or entity responsible for the tuition payments shall approve an agreement with the district of attendance for the tuition cost; and

     (b)  for a Montana resident student, the average district per-ANB foundation payment amount received in the year for which the tuition charges are calculated must be subtracted from the per-student program costs for a Montana resident student.

     (4)(2)  When a child attends a public school of another state or province, the amount of daily tuition may not be greater than the average annual cost per student in the child's district of residence. This calculation for tuition purposes is determined by totaling all of the expenditures for all of the district budgeted funds for the preceding school fiscal year and dividing that amount by the October 1 enrollment in the preceding school fiscal year. For the purposes of this subsection, the following do not apply:

     (a)  placement of a child with disabilities pursuant to Title 20, chapter 7, part 4;

     (b)  placement made in a state or province with a reciprocal tuition agreement pursuant to 20-5-314;

     (c)  an order issued under Title 40, chapter 4, part 2; or

     (d)  out-of-state placement by a state agency.

     (5)(3)  When a child is placed by a state agency in an out-of-state residential facility OR WHEN A CHILD WITH A DISABILITY OR SPECIAL NEEDS IS PLACED PURSUANT TO TITLE 20, CHAPTER 7, PART 4, the state agency OR THE DISTRICT making the placement is responsible for the education costs resulting from the placement PURSUANT TO THE RATE PROVIDED IN 20-5-321(2)(B).

     (6)(4)  The amount, if any, charged for transportation may not exceed the lesser of the average transportation cost per student, LESS THE ON-SCHEDULE AMOUNT, in the child's district of residence or 21.25 cents per a mile. The average expenditures for the district transportation fund for the preceding school fiscal year must be calculated by dividing the transportation fund expenditures by the October 1 enrollment for the preceding fiscal year ATTENDANCE."



     Section 5.  Section 20-5-324, MCA, is amended to read:

     "20-5-324.  Tuition report and payment provisions -- exemption. (1) At the close of the school term of each school fiscal year and before July 15, the trustees of a district shall report to the county superintendent:

     (a)  the name and district of residence of each child who is attending a school of the district under an approved mandatory out-of-district attendance agreement;

     (b)  the number of days of enrollment for each child reported under the provisions of subsection (1)(a);

     (c)  the annual tuition rate for each child's tuition payment, as determined under the provisions of 20-5-323, and the tuition cost for each reported child; and

     (d)  the names, districts of attendance, and amount of tuition to be paid by the district for resident students attending public schools out of state.

     (2)  The county superintendent shall send, as soon as practicable, the reported information to the county superintendent of the county state or province in which a reported child resides.

     (3)(2)  Before July 30, the county superintendent shall report the information in subsection (1)(d) this section SUBSECTION (1) to the superintendent of public instruction, who shall determine the STATE'S SHARE OF THE total per-ANB entitlement for which the district would be eligible if the student were enrolled in the resident district. The reimbursement amount is the difference between the actual amount paid and the amount calculated in this subsection. THE SUPERINTENDENT OF PUBLIC INSTRUCTION SHALL REIMBURSE THE DISTRICT OF RESIDENCE FOR THE TOTAL PER-ANB ENTITLEMENT DETERMINED IN SUBSECTION (2).

     (4)  Notwithstanding the requirements of subsection (5), tuition payment provisions for out-of-district placement of students with disabilities must be determined pursuant to Title 20, chapter 7, part 4.

     (5)  Except as provided in subsection (6), when a child has approval to attend a school outside the child's district of residence under the provisions of 20-5-320 or 20-5-321, the district of residence shall finance the tuition amount from the district tuition fund and any transportation amount from the transportation fund.

     (3) EXCEPT AS PROVIDED IN SUBSECTION (4), WHEN A CHILD HAS APPROVAL TO ATTEND A SCHOOL OUTSIDE THE CHILD'S DISTRICT OF RESIDENCE UNDER THE PROVISIONS OF 20-5-320 OR 20-5-321, THE DISTRICT OF RESIDENCE SHALL FINANCE THE TUITION AMOUNT FROM THE DISTRICT TUITION FUND AND ANY TRANSPORTATION AMOUNT FROM THE TRANSPORTATION FUND.

     (6)(4)(3)(4)  When a child has mandatory approval under the provisions of 20-5-321, the tuition and TUITION AND transportation obligation for an elementary school child attending a school outside of the child's county of residence must be financed by the basic county tax for elementary equalization, as provided in 20-9-331, for the child's county of residence or for a high school child attending a school outside the county of residence by the basic county tax for high school equalization, as provided in 20-9-333, for the child's county of residence.

     (7)(5)  By December 31 of the school fiscal year, the county superintendent or the trustees shall pay at least one-half of any tuition and transportation obligation established under this section out of the money realized to date from the appropriate elementary or high school county equalization fund provided for in 20-9-335 or from the district tuition or transportation fund. The remaining tuition and transportation obligation must be paid by June 15 of the school fiscal year. The payments must be made to the county treasurer in each county with a school district that is entitled to tuition and transportation. Except as provided in subsection (9), the The county treasurer shall credit tuition receipts to the general fund of a school district entitled to a tuition payment. The tuition receipts must be used in accordance with the provisions of 20-9-141. The county treasurer shall credit transportation receipts to the transportation fund of a school district entitled to a transportation payment.

     (5) BY DECEMBER 31 OF THE SCHOOL FISCAL YEAR, THE COUNTY SUPERINTENDENT OR THE TRUSTEES SHALL PAY AT LEAST ONE-HALF OF ANY TUITION AND TRANSPORTATION OBLIGATION ESTABLISHED UNDER THIS SECTION OUT OF THE MONEY REALIZED TO DATE FROM THE APPROPRIATE ELEMENTARY OR HIGH SCHOOL EQUALIZATION FUND PROVIDED FOR IN 20-5-335 OR FROM THE DISTRICT TUITION OR TRANSPORTATION FUND. THE REMAINING TUITION AND TRANSPORTATION OBLIGATION MUST BE PAID BY JUNE 15 OF THE SCHOOL FISCAL YEAR. THE PAYMENTS MUST BE MADE TO THE COUNTY TREASURER IN EACH COUNTY WITH A SCHOOL DISTRICT THAT IS ENTITLED TO TUITION AND TRANSPORTATION. EXCEPT AS PROVIDED IN SUBSECTION (6)(B), THE COUNTY TREASURER SHALL CREDIT TUITION RECEIPTS TO THE GENERAL FUND OF A SCHOOL DISTRICT ENTITLED TO A TUITION PAYMENT. THE TUITION RECEIPTS MUST BE USED IN ACCORDANCE WITH THE PROVISIONS OF 20-9-141. THE COUNTY TREASURER SHALL CREDIT TRANSPORTATION RECEIPTS TO THE TRANSPORTATION FUND OF A SCHOOL DISTRICT ENTITLED TO A TRANSPORTATION PAYMENT.

     (8)(6)(4)(6)  The superintendent of public instruction shall reimburse the district of residence for the per-ANB entitlement determined in subsection (3) (2). (A) THE RECEIVING DISTRICT SHALL DEPOSIT THE TUITION CONTRACT PAYMENTS IN THE DISTRICT'S GENERAL FUND AND USE THE AMOUNT RECEIVED TO REDUCE THE DISTRICT'S OVER-BASE MILLS. ANY INCREASE IN THE LOCAL LEVY IS SUBJECT TO APPROVAL BY THE ELECTORS OF THE DISTRICT AT THE TAX ELECTION.

     (B) ANY TUITION RECEIPTS RECEIVED FOR THE CURRENT SCHOOL FISCAL YEAR FOR A PUPIL WHO IS A CHILD WITH DISABILITIES THAT EXCEED THE TUITION AMOUNT RECEIVED FOR A PUPIL WITHOUT DISABILITIES MAY BE DEPOSITED IN THE DISTRICT MISCELLANEOUS PROGRAMS FUND AND MUST BE USED FOR THAT YEAR IN THE MANNER PROVIDED FOR IN 20-9-507 TO SUPPORT THE COSTS OF THE PROGRAM FOR WHICH THE TUITION WAS RECEIVED.

     (9)  (a) Any tuition receipts received under the provisions of 20-5-323(3) for the current school fiscal year that exceed the tuition receipts of the prior year may be deposited in the district miscellaneous programs fund and must be used for that year in the manner provided for in 20-9-507 to support the costs of the program for which the tuition was received.

     (b)  Any tuition receipts received for the current school fiscal year for a pupil who is a child with disabilities that exceed the tuition amount received for a pupil without disabilities may be deposited in the district miscellaneous programs fund and must be used for that year in the manner provided for in 20-9-507 to support the costs of the program for which the tuition was received.

     (c) Any other tuition receipts received for the current school fiscal year that exceed the tuition receipts of the prior year may be deposited in the district miscellaneous programs fund and may be used for that year in the manner provided for in that fund. For the ensuing school fiscal year, the receipts must be credited to the district general fund budget.

     (10)(7)(5)(7) The provisions of this section do not apply to out-of-state placements made by a state agency pursuant to 20-7-422."



     Section 6.  Section 20-6-702, MCA, is amended to read:

     "20-6-702.  Funding for K-12 school districts. (1) Notwithstanding the provisions of subsections (2) through (6), a K-12 school district formed under the provisions of 20-6-701 is subject to the provisions of law for high school districts.

     (2)  The number of elected trustees of the K-12 school district must be based on the classification of the attached elementary district under the provisions of 20-3-341 and 20-3-351.

     (3)  Calculations for the following must be made separately for the elementary school program and the high school program of a K-12 school district:

     (a)  the calculation of ANB for purposes of determining the total per-ANB entitlements must be in accordance with the provisions of 20-9-311;

     (b)  the basic county tax for elementary equalization and revenue for the elementary BASE funding program for the district must be determined in accordance with the provisions of 20-9-331, and the basic county tax for high school equalization and revenue for the high school BASE funding program for the district must be determined in accordance with 20-9-333; and

     (c)  the guaranteed tax base aid for BASE funding program purposes for a K-12 school district must be calculated separately, using each district's guaranteed tax base ratio, as defined in 20-9-366. The BASE budget levy to be levied for the K-12 school district must be prorated based on the ratio of the BASE funding program amounts for elementary school programs to the BASE funding program amounts for high school programs.

     (4)  The retirement obligation and eligibility for retirement guaranteed tax base aid for a K-12 school district must be calculated and funded as a high school district retirement obligation under the provisions of 20-9-501.

     (5)  For the purposes of budgeting for a K-12 school district, the trustees shall adopt a single fund for any of the budgeted or nonbudgeted funds described in 20-9-201 for the costs of operating all grades and programs of the district.

     (6)  Tuition for attendance by a child from an adjoining state or province in the K-12 school district must be determined separately for high school pupils and for elementary pupils under the provisions of 20-5-320 through 20-5-324, except that the actual expenditures used for calculations in 20-5-323 must be based on an amount prorated between the elementary and high school programs in the appropriate funds of each district in the year prior to the attachment of the districts."



     Section 9.  Section 20-7-419, MCA, is amended to read:

     "20-7-419.  Rules. The superintendent of public instruction shall adopt rules for the implementation of 20-7-420, 20-7-421, through 20-7-422, 20-7-435, and 20-7-436, including but not limited to:

     (1)  the calculation of tuition under 20-7-420;

     (2)(1)  the calculation and distribution of funds under 20-7-435; and

     (3)(2)  the determination of responsibilities of children's psychiatric hospitals, residential treatment facilities, and public schools."



     Section 7.  Section 20-7-420, MCA, is amended to read:

     "20-7-420.  Residency requirements -- financial responsibility for special education. (1) In accordance with the provisions of 1-1-215, a child's district of residence for special education purposes is the residence of the child's parents or of the child's guardian if the parents are deceased, unless otherwise determined by the court. This applies to a child living at home, in an institution, or under foster care. If the parent has left the state, the parent's last-known district of residence is the child's district of residence.

     (2)  The county DISTRICT of residence is financially responsible for tuition and TUITION AND transportation, as established under 20-5-323 20-7-421, for a child with disabilities, as defined in 20-7-401, including. THE COUNTY OF RESIDENCE IS RESPONSIBLE FOR TUITION AND TRANSPORTATION FOR a child who has been placed by a state agency in a foster care or group home licensed by the state. The county of residence is not financially responsible for tuition and transportation for a child WITH DISABILITIES who is placed by a state agency in an out-of-state public school or an out-of-state private residential facility.

     (3)  If an eligible child, as defined in 20-7-436, is receiving inpatient treatment in an in-state residential treatment facility or children's psychiatric hospital, as defined in 20-7-436, and the educational services are provided by a public school district under the provisions of 20-7-411 or 20-7-435, the superintendent of public instruction shall reimburse the district providing the services for the negotiated amount, as established pursuant to 20-7-435(5), that represents the district's costs of providing education and related services. Payments must be made from funds appropriated for this purpose. If the negotiated amount exceeds the daily membership rate under 20-7-435(3) and any per-ANB amount of direct state aid, the superintendent of public instruction shall pay the remaining balance from available funds. However, the amount spent from available funds for this purpose may not exceed $500,000 during any biennium.

     (4)  A state agency that makes a placement of a child with disabilities is responsible for the financial costs of room and board and the treatment of the child. The state agency that makes an out-of-state placement of a child with disabilities is responsible for the education fees required to provide a free appropriate public education that complies with the requirements of Title 20, chapter 7, part 4."



     Section 11.  Section 20-7-421, MCA, is amended to read:

     "20-7-421.  Arranging attendance in another district in lieu of a special education program -- tuition. (1) In accordance with a placement decision made by persons determining an individualized education program for a child with disabilities, the trustees may arrange for the attendance of a child in need of special education and related services in another district within the state of Montana.

     (2)  Tuition and transportation Transportation as required under 20-5-323 may be charged as provided in 20-7-420."



     Section 8.  Section 20-7-424, MCA, is amended to read:

     "20-7-424.  No tuition when attending state institution. Whenever a child is attending a state-funded institution in Montana, the resident district or county is not required to pay tuition to the state institution for the child, but whenever at the recommendation of institution officials the child attends classes conducted by a school within a local district, the district or county where the parents or guardian of the child maintains legal residence shall pay tuition to the district operating the school in accordance with the provisions of 20-5-321 or 20-7-421, whichever section applies to the circumstances of the child, BUT WHENEVER AT THE RECOMMENDATION OF INSTITUTION OFFICIALS THE CHILD ATTENDS CLASSES CONDUCTED BY A SCHOOL WITHIN A LOCAL DISTRICT, THE DISTRICT OR COUNTY WHERE THE PARENTS OR GUARDIAN OF THE CHILD MAINTAINS LEGAL RESIDENCE MAY BE REQUIRED TO PAY TUITION TO THE DISTRICT OPERATING THE SCHOOL IN ACCORDANCE WITH THE PROVISIONS OF 20-5-321 OR 20-7-421, WHICHEVER SECTION APPLIES TO THE CIRCUMSTANCES OF THE CHILD. Transportation payments must be made for students enrolled in any school district classes or receiving training, including summer sessions, at the state institution. The schedule of transportation payments must be approved in accordance with existing transportation payment schedules and must be approved by the county transportation committee and the superintendent of public instruction."



     Section 9.  Section 20-9-141, MCA, is amended to read:

     "20-9-141.  Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:

     (a)  Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:

     (i)  the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and

     (ii)  any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.

     (b)  Determine the money available for the reduction of the property tax on the district for the general fund by totaling:

     (i)  the general fund balance reappropriated, as established under the provisions of 20-9-104;

     (ii)  amounts received in the last fiscal year for which revenue reporting was required for each of the following:

     (A)  tuition payments for out-of-district pupils from an adjoining state or province under the provisions of 20-5-321 through 20-5-323, except the amount of tuition received for a pupil who is a child with disabilities in excess of the amount received for a pupil without disabilities, as calculated under 20-5-323(2);

     (B)(A)  revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504, 61-3-521, 61-3-527, 61-3-529, 61-3-537, and 67-3-204;

     (C)(B)  oil and natural gas production taxes;

     (D)(C)  interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);

     (E)(D)  revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and

     (F)(E)  any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid; and

     (iii)  pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703.

     (c)  Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.

     (d)  Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing, as provided in 20-9-353, to determine any additional general fund levy requirements.

     (2)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:

     (a)  the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and

     (b)  the taxable valuation of the district divided by 1,000.

     (3)  The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.

     (4)  For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."



     Section 14.  Section 20-9-212, MCA, is amended to read:

     "20-9-212.  Duties of county treasurer. The county treasurer of each county shall:

     (1)  must receive and shall hold all school money subject to apportionment and keep a separate accounting of its apportionment to the several districts that are entitled to a portion of the money according to the apportionments ordered by the county superintendent or by the superintendent of public instruction. A separate accounting must be maintained for each county fund supported by a countywide levy for a specific, authorized purpose, including:

     (a)  the basic county tax for elementary equalization;

     (b)  the basic county tax for high school equalization;

     (c)  the county tax in support of the transportation schedules;

     (d)  the county tax in support of the elementary and high school district retirement obligations; and

     (e)  any other county tax for schools, including the community colleges, that may be authorized by law and levied by the county commissioners.

     (2)  whenever requested, shall notify the county superintendent and the superintendent of public instruction of the amount of county school money on deposit in each of the funds enumerated in subsection (1) and the amount of any other school money subject to apportionment and apportion the county and other school money to the districts in accordance with the apportionment ordered by the county superintendent or the superintendent of public instruction;

     (3)  shall keep a separate accounting of the receipts, expenditures, and cash balances for each fund;

     (4)  except as otherwise limited by law, shall pay all warrants properly drawn on the county or district school money;

     (5)  must receive all revenue collected by and for each district and shall deposit these receipts in the fund designated by law or by the district if a fund is not designated by law. Interest and penalties on delinquent school taxes must be credited to the same fund and district for which the original taxes were levied.

     (6)  shall send all revenue received for a joint district, part of which is situated in the county, to the county treasurer designated as the custodian of the revenue, no later than December 15 of each year and every 3 months after that date until the end of the school fiscal year;

     (7)  at the direction of the trustees of a district, shall assist the district in the issuance and sale of tax and revenue anticipation notes as provided in Title 7, chapter 6, part 11;

     (8)  shall register district warrants drawn on a budgeted fund in accordance with 7-6-2604 when there is insufficient money available in all funds of the district to make payment of the warrant. Redemption of registered warrants must be made in accordance with 7-6-2116, 7-6-2605, and 7-6-2606.

     (9)  shall invest the money of any district as directed by the trustees of the district within 3 working days of the direction;

     (10) each month, shall give to the trustees of each district an itemized report for each fund maintained by the district, showing the paid warrants, registered warrants, interest distribution, amounts and types of revenue received, and the cash balance;

     (11) shall remit promptly to the state treasurer receipts for the county tax for a vocational-technical program within a unit of the university system when levied by the board of county commissioners under the provisions of 20-25-439;

     (12) shall invest the money received from the basic county taxes for elementary and high school equalization, the county levy in support of the elementary and high school district retirement obligations, and the county levy in support of the transportation schedules within 3 working days of receipt. The money must be invested until the working day before it is required to be distributed to school districts within the county or remitted to the state. Permissible investments are specified in 20-9-213(4). All investment income must be deposited, and credited proportionately, in the funds established to account for the taxes received for the purposes specified in subsections (1)(a) through (1)(d).

     (13) shall remit on a monthly basis to the state treasurer, in accordance with the provisions of 15-1-504, all county equalization revenue received under the provisions of 20-9-331 and 20-9-333, including all interest earned and excluding any amount required for high school out-of-county tuition under the provisions of 20-9-334, in repayment of the state advance for county equalization prescribed in 20-9-347. Any funds in excess of a state advance must be used as required in 20-9-331(1)(b) and 20-9-333(1)(b)."



     Section 17.  Section 20-9-321, MCA, is amended to read:

     "20-9-321.  Allowable cost payment for special education. (1) For the purpose of establishing the allowable cost payment for a current year special education program for a school district, the superintendent of public instruction shall determine the total special education payment to a school district, cooperative, or joint board for special education services formed under 20-3-361 prior to July 1, 1992, using the following factors:

     (a)  the district ANB student count as established pursuant to 20-9-311 and 20-9-313;

     (b)  a per-ANB amount for the special education instructional block grant;

     (c)  a per-ANB amount for the special education related services block grant;

     (d)  weighted cost factors for cooperatives or joint boards meeting the requirements of 20-7-457, to compensate for the additional costs of operations and maintenance, travel, supportive services, recruitment, and administration;

     (e)  district and cooperative expenditure reports; and

     (f)  any other data required by the superintendent of public instruction to administer the provisions of this section.

     (2)  Special education allowable cost payments must be granted to each school district and cooperative with a special education program as follows:

     (a)  An instructional block grant must be awarded to each school district, based on the district ANB and the per-ANB special education instructional amount.

     (b)  A special education related services block grant must be awarded to each school district that is not a cooperative member, based on the district ANB and the per-ANB special education related services amount. The special education related services block grant amount for districts that are members of approved cooperatives or a joint board must be awarded to the cooperatives or joint board. If a cooperative or joint board meets the requirements of 20-7-457, the special education related services block grant must be weighted for the factors in subsection (1)(d).

     (3)  The superintendent of public instruction shall annually determine the per-ANB special education instructional and special education related services block grant amounts based on the prior years' trustees' expenditure data for special education instruction and related services.

     (4)  The superintendent of public instruction shall adopt rules necessary to implement this section.

     (5)  A district shall provide a 25% local contribution for special education, matching every $3 of state special education instructional and special education related services block grants with at least one local dollar. A district that is a cooperative member is required to provide the 25% match of the special education related services grant amount to the special education cooperative, but the district is not required to match the weighted funding factors.

     (6)  The superintendent of public instruction shall determine the actual district match based on the trustees' reports. Any unmatched portion reverts to the state and must be subtracted from the district's ensuing year's special education allowable cost payment.

     (7)  If a district's allowable costs of special education, as verified by the trustees' reports, exceed by at least 10% the total of the special education instructional and special education related services block grant plus the required district match, the district is eligible for a 65% reimbursement of the costs that exceed the additional 10%. A district that demonstrates severe economic hardship because of exceptional special education costs may apply to the superintendent of public instruction for an advance on the reimbursement for the year in which the actual costs will be incurred.

     (8) A district serving an out-of-district child with disabilities must receive:

     (a) $2,500 for each child with speech, language impairment, or learning disabilities to pay the allowable cost pursuant to 20-7-431; and

     (b) $5,000 for each child with a disability, as defined in 20-7-401, to pay the allowable costs pursuant to 20-7-431."



     Section 15.  Section 20-9-335, MCA, is amended to read:

     "20-9-335.  Formula for apportionment of county equalization money. (1) The superintendent of public instruction shall calculate the apportionment of revenue available in the elementary and high school county equalization funds in accordance with the following procedure:

     (a)  determine the percentage that the county equalization money available for the support of the elementary direct state aid of the districts in the county is of the total elementary direct state aid of all districts in the county;

     (b)  multiply the elementary direct state aid amount of each district by the percentage determined in subsection (1)(a) to determine the portion of the county equalization money available to each school district.

     (2)  The procedure in subsection (1) must also be applied for the high school direct state aid after the deduction of the county's obligation for high school out-of-county tuition.

     (2) THE FORMULA IN SUBSECTION (1) MUST ALSO BE APPLIED FOR THE HIGH SCHOOL DIRECT STATE AID.

     (3)(2)(3)  Territory situated within a county may not be excluded from the calculations of the county equalization money under this section solely because the territory lies within the boundaries of a joint district. Cash balances to the credit of any district at the end of a school fiscal year may not be considered in the apportionment procedure prescribed in this section.

     (4)(3)(4)  The county equalization money reported under these procedures is the first source of revenue for financing the elementary and high school direct state aid payments."



     SECTION 10.  SECTION 20-9-334, MCA, IS AMENDED TO READ:

     "20-9-334.  Out-of-county tuition obligations. The county superintendent shall direct the county treasurer to deduct from the revenue available in the elementary and high school county equalization funds, prior to remittance of the funds to the state treasurer under the provisions of 15-1-504 and 20-9-212, the amount required for the month to pay the county's obligation for elementary and high school out-of-county tuition under 20-5-324 20-5-321."



     Section 11.  Section 20-9-406, MCA, is amended to read:

     "20-9-406.  Limitations on amount of bond issue. (1) (a) Except as provided in subsection (1)(c), the maximum amount for which an elementary district or a high school district may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds of previous issues and registered warrants, is 45% of the taxable value of the property subject to taxation to be ascertained by the last-completed assessment for state, county, and school taxes previous to the incurring of the indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight property within the district for tax year 1995, for bonds to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property within the district for tax year 1995, and for bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the district for tax year 1995, in each case of class eight property, multiplied by 45%.

     (b)  Except as provided in subsection (1)(c), the maximum amount for which a K-12 school district, as formed pursuant to 20-6-701, may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds of previous issues and registered warrants, is up to 90% of the taxable value of the property subject to taxation to be ascertained by the last-completed assessment for state, county, and school taxes previous to the incurring of the indebtedness, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight property within the district for tax year 1995, for bonds to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property within the district for tax year 1995, and for bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the district for tax year 1995, in each case of class eight property, multiplied by 90%. The total indebtedness of the high school district with an attached elementary district must be limited to the sum of 45% of the taxable value of the property for elementary school program purposes and 45% of the taxable value of the property for high school program purposes, adjusted as provided in this section.

     (c)  (i) The maximum amount for which an elementary district or a high school district with a district mill value per elementary ANB or per high school ANB that is less than the corresponding statewide mill value per elementary ANB or per high school ANB may become indebted by the issuance of bonds, including all indebtedness represented by outstanding bonds of previous issues and registered warrants, is 45% of the corresponding statewide mill value per ANB times 1,000 times the ANB of the district. For a K-12 district, the maximum amount for which the district may become indebted is 45% of the sum of the statewide mill value per elementary ANB times 1,000 times the elementary ANB of the district and the statewide mill value per high school ANB times 1,000 times the high school ANB of the district.

     (ii) If mutually agreed upon by the affected districts, for the purpose of calculating its maximum bonded indebtedness under this subsection (1)(c), a district may include the ANB of the district plus the number of students residing within the district for which the district or county pays tuition for attendance at a school in an adjacent district PLUS THE NUMBER OF STUDENTS RESIDING WITHIN THE DISTRICT WHO ATTEND A SCHOOL IN AN ADJACENT DISTRICT. The receiving district may not use out-of-district ANB for the purpose of calculating its maximum indebtedness if the out-of-district ANB has been included in the ANB of the sending district pursuant to the mutual agreement.

     (2)  The maximum amounts determined in subsection (1), however, may not pertain to indebtedness imposed by special improvement district obligations or assessments against the school district or to bonds issued for the repayment of tax protests lost by the district. All bonds issued in excess of the amount are void, except as provided in this section.

     (3)  When the total indebtedness of a school district has reached the limitations prescribed in this section, the school district may pay all reasonable and necessary expenses of the school district on a cash basis in accordance with the financial administration provisions of this chapter.

     (4)  Whenever bonds are issued for the purpose of refunding bonds, any money to the credit of the debt service fund for the payment of the bonds to be refunded is applied toward the payment of the bonds and the refunding bond issue is decreased accordingly."



     Section 17.  Section 20-9-505, MCA, is amended to read:

     "20-9-505.  Purpose and establishment of nonoperating fund. (1) The trustees of a district that will not operate a school during the ensuing school fiscal year shall establish a nonoperating fund on the first day of the school fiscal year. In establishing the nonoperating fund, the trustees shall cause the transfer of the end-of-the-year fund balance of each fund maintained by the district during the immediately preceding school fiscal year to the nonoperating fund. However, fund balances of the debt service fund and the miscellaneous programs fund, if any, must be maintained in their individual funds.

     (2)  The trustees of a district establishing a nonoperating fund for the first year of nonoperation may earmark a portion of the nonoperating fund balance as a nonoperating fund operating reserve when they anticipate the reopening of a school in the following school fiscal year. The operating reserve may not be more than the general fund operating reserve designated for the immediately preceding school fiscal year. If a school is not operated in the following school fiscal year, the authority of the trustees to earmark a nonoperating fund operating reserve terminates and the money earmarked as an operating reserve must be used to reduce the levy requirement of the nonoperating fund. If the trustees acquire approval to reopen a school in the following school fiscal year under the provisions of 20-6-502 or 20-6-503 and operate the school, the nonoperating fund operating reserve must be restored as the general fund operating reserve.

     (3)  The purpose of the nonoperating fund is to centralize the financing and budgeting for the limited functions of a district not operating a school. The functions include:

     (a)  elementary tuition obligations to other districts;

     (b)(a)  transportation of the resident pupils;

     (c)(b)  maintenance of district-owned property; and

     (d)(c)  any other nonoperating school function of the district considered necessary by the trustees or required by law.

     (4)  Any expenditure of nonoperating fund money must be made in accordance with the financial administration provisions of this title for a budgeted fund."



     NEW SECTION.  Section 18.  Repealer. Section 20-9-334, MCA, is repealed.



     NEW SECTION.  Section 22.  Transfer of funds. On [the effective date of this act], there is transferred from the general fund to a state special revenue account $1.2 million for each of the fiscal years 2000 and 2001 to be used by the superintendent of public instruction to pay the allowable costs incurred by districts serving children with disabilities as provided in [this act].



     NEW SECTION.  Section 23.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 20, chapter 9, part 3, and the provisions of Title 20, chapter 9, part 3, apply to [section 1].



     NEW SECTION.  Section 12.  Effective date -- applicability. [This act] is effective July 1, 1999, and applies to OUT-OF-DISTRICT AGREEMENTS FOR school fiscal years beginning on or after July 1, 1999.

- END -




Latest Version of SB 422 (SB0422.03)
Processed for the Web on February 23, 1999 (7:08PM)

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