Revise allocations of coal trust revenue

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69th Legislature 2025 HB 615.1
- 1 - Authorized Print Version – HB 615
1 HOUSE BILL NO. 615
2 INTRODUCED BY J. SCHILLINGER, S. GIST, F. NAVE, T. FALK
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING DISTRIBUTIONS AND ALLOCATIONS OF INTEREST
5 FROM THE COAL SEVERANCE TAX PERMANENT FUND; APPROPRIATING A PORTION OF INTEREST
6 TO HIGHWAY-RELATED ACCOUNTS; EXTENDING TERMINATION DATES FOR APPROPRIATIONS FROM
7 THE INTEREST FROM THE COAL SEVERANCE TAX PERMANENT FUND; AMENDING SECTION 15-35-
8 108, MCA; AMENDING SECTION 6, CHAPTER 481, LAWS OF 2003, SECTION 3, CHAPTER 459, LAWS OF
9 2009, AND SECTIONS 13, 15, AND 18, CHAPTER 343, LAWS OF 2019; AND PROVIDING AN EFFECTIVE
10 DATE.”
11
12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
13
14Section 1. Section 15-35-108, MCA, is amended to read:
15 "15-35-108. (Temporary) Disposal of severance taxes. Severance taxes collected under this
16 chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
17 (1) Fifty percent of total coal severance tax collections is allocated to the trust fund created by
18 Article IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund
19 established under 17-6-203(6) and invested by the board of investments as provided by law.
20 (2) The amount of 12% of coal severance tax collections is allocated to the major repair long-range
21 building program account established in 17-7-221.
22 (3) The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
23 thereafter must be allocated for provision of basic library services for the residents of all counties through library
24 federations and for payment of the costs of participating in regional and national networking and must be
25 deposited in the basic library services account established in 22-1-202.
26 (4) The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
27 thereafter must be allocated to the department of natural resources and conservation for conservation districts
28 and deposited in the conservation district account established in 76-15-106.
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69th Legislature 2025 HB 615.1
- 2 - Authorized Print Version – HB 615
1 (5) The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
2 thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
3 through agriculture account established in 90-9-104.
4 (6) The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
5 acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
6 must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
7 described in 23-1-102.
8 (7) The amount of 0.95% must be allocated to the debt service fund type to the credit of the
9 renewable resource loan debt service fund.
10 (8) The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of
11 art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
12 unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
13 cultural and aesthetic projects.
14 (9) The amount of 5.8% must be credited to the coal natural resource account established in 90-6-
15 1001(2).
16 (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year
17 must be credited to the coal and uranium mine permitting and reclamation program account established in 82-
18 4-244.
19 (11) (a) Subject to subsection (11)(b), all other revenue from severance taxes collected under the
20 provisions of this chapter must be credited to the general fund of the state.
21 (b) The interest income of the coal severance tax permanent fund that is deposited in the general
22 fund is statutorily appropriated, as provided in 17-7-502, on July 1 each year as follows:
23 (i) $2 million to the department of justice for the same purposes of the state special revenue
24 account to partially fund highway patrol officers' salaries established in 44-1-504;
25 (i)(ii) to the department of agriculture:
26 (A) $65,000 for the cooperative development center;
27 (B) $900,000 for the growth through agriculture program provided for in Title 90, chapter 9;
28 (C) $600,000 for the Montana food and agricultural development program provided for in Title 80,
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69th Legislature 2025 HB 615.1
- 3 - Authorized Print Version – HB 615
1 chapter 11;
2 (ii)(iii) to the department of commerce:
3 (A) $325,000 for a small business development center;
4 (B) $50,000 for a small business innovative research program;
5 (C) $625,000 for certified regional development corporations;
6 (D) $500,000 for the Montana manufacturing extension center at Montana state university-
7 Bozeman; and
8 (E) $300,000 for export trade enhancement;
9 (iv) the remainder to the department of transportation for the same purposes of the highway
10 restricted account established in 15-70-126. (Terminates June 30, 2027 2029--secs. 13, 15, 18, Ch. 343, L.
11 2019.)
1215-35-108. (Effective July 1, 2027 2029) Disposal of severance taxes. Severance taxes collected
13 under this chapter must, in accordance with the provisions of 17-2-124, be allocated as follows:
14 (1) Fifty percent of total coal severance tax collections is allocated to the trust fund created by
15 Article IX, section 5, of the Montana constitution. The trust fund money must be deposited in the fund
16 established under 17-6-203(6) and invested by the board of investments as provided by law.
17 (2) The amount of 12% of coal severance tax collections is allocated to the major repair long-range
18 building program account established in 17-7-221.
19 (3) The amount of 0.90% in fiscal year 2020 and 0.93% in fiscal year 2021 and in each fiscal year
20 thereafter must be allocated for provision of basic library services for the residents of all counties through library
21 federations and for payment of the costs of participating in regional and national networking and must be
22 deposited in the basic library services account established in 22-1-202.
23 (4) The amount of 3.77% in fiscal year 2020 and 3.71% in fiscal year 2021 and in each fiscal year
24 thereafter must be allocated to the department of natural resources and conservation for conservation districts
25 and deposited in the conservation district account established in 76-15-106.
26 (5) The amount of 0.79% in fiscal year 2020 and 0.82% in fiscal year 2021 and in each fiscal year
27 thereafter must be allocated to the Montana Growth Through Agriculture Act and deposited in the growth
28 through agriculture account established in 90-9-104.
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69th Legislature 2025 HB 615.1
- 4 - Authorized Print Version – HB 615
1 (6) The amount of 1.27% must be allocated to a permanent fund account for the purpose of parks
2 acquisition or management. Income from this permanent fund account, excluding unrealized gains and losses,
3 must be appropriated for the acquisition, development, operation, and maintenance of any sites and areas
4 described in 23-1-102.
5 (7) The amount of 0.95% must be allocated to the debt service fund type to the credit of the
6 renewable resource loan debt service fund.
7 (8) The amount of 0.63% must be allocated to a trust fund for the purpose of protection of works of
8 art in the capitol and for other cultural and aesthetic projects. Income from this trust fund account, excluding
9 unrealized gains and losses, must be appropriated for protection of works of art in the state capitol and for other
10 cultural and aesthetic projects.
11 (9) The amount of 5.8% must be credited to the coal natural resource account established in 90-6-
12 1001(2).
13 (10) After the allocations are made under subsections (2) through (9), $250,000 for the fiscal year
14 must be credited to the coal and uranium mine permitting and reclamation program account established in 82-
15 4-244.
16 (11) (a) All other revenue from severance taxes collected under the provisions of this chapter must
17 be credited to the general fund of the stateSubject to subsection (11)(b), all other revenue from severance
18 taxes collected under the provisions of this chapter must be credited to the general fund of the state.
19 (b) The interest income of the coal severance tax permanent fund is transferred as follows:
20 (i) $2 million each fiscal year to the department of justice for the same purposes of the state
21 special revenue account to partially fund highway patrol officers' salaries established in 44-1-504; and
22 (ii) the remainder to the department of transportation for the same purposes of the highway
23 restricted account established in 15-70-126."
24
25Section 2. Section 6, Chapter 481, Laws of 2003, is amended to read:
26 "Section 6. Termination. [Section 1] terminates June 30, 2010 2029."
27
28Section 3. Section 3, Chapter 459, Laws of 2009, is amended to read:
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69th Legislature 2025 HB 615.1
- 5 - Authorized Print Version – HB 615
1 "Section 3. Section 6, Chapter 481, Laws of 2003, is amended to read:
2 "Section 6. Termination. [Section 1] terminates June 30, 2010 2019 2029.""
3
4Section 4. Section 13, Chapter 343, Laws of 2019, is amended to read:
5 "Section 13. Section 6, Chapter 481, Laws of 2003, is amended to read:
6 "Section 6. Termination. [Section 1] terminates June 30, 2010 2027 2029.""
7
8Section 5. Section 15, Chapter 343, Laws of 2019, is amended to read:
9 "Section 15. Section 3, Chapter 459, Laws of 2009, is amended to read:
10 "Section 3. Section 6, Chapter 481, Laws of 2003, is amended to read:
11 "Section 6. Termination. [Section 1] terminates June 30, 2010 2019 2027 2029."""
12
13Section 6. Section 18, Chapter 343, Laws of 2019, is amended to read:
14 "Section 18. Termination. [Sections 5 and 10] terminate June 30, 2027 2029."
15
16 NEW SECTION. Section 7. Effective date. [This act] is effective July 1, 2025.
17 - END -