Generally revise state finance laws

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AN ACT GENERALLY REVISING STATE FINANCE LAWS; CREATING THE MONTANA GROWTH AND
OPPORTUNITY TRUST; PROVIDING FOR TRANSFERS OF VOLATILE REVENUES TO THE TRUST;
PROVIDING FOR ANNUAL DISTRIBUTIONS OF INTEREST INCOME TO STATE SPECIAL REVENUE
ACCOUNTS; PROVIDING FOR REINVESTMENT OF A PORTION OF THE TRUST FOR PENSIONS AND
HOUSING; PROVIDING FOR CALCULATIONS RELATED TO VOLATILE REVENUE; ESTABLISHING A
STATE PROPERTY RELIEF ACCOUNT; ESTABLISHING A MONTANA WATER DEVELOPMENT STATE
SPECIAL REVENUE ACCOUNT; ESTABLISHING A BETTER LOCAL BRIDGE ACCOUNT; ESTABLISHING A
MONTANA EARLY CHILDHOOD ACCOUNT, BOARD, AND FUNDING; PROVIDING PROPERTY TAX
ASSISTANCE THAT IS DISTRIBUTED TO COUNTIES TO BE DISTRIBUTED AS A CREDIT TO CERTAIN
PRIMARY RESIDENCES; REQUIRING THE DEPARTMENT OF REVENUE TO CERTIFY PRIMARY
RESIDENCES; PROVIDING A PENALTY FOR FALSE OR FRAUDULENT PRIMARY RESIDENCE
APPLICATIONS; PROVIDING AN APPEALS PROCESS FOR CERTIFICATION OF A PRIMARY RESIDENCE;
PROVIDING A DEFINITION; TRANSFERRING AUTHORITY FOR CERTAIN HOUSING LOANS FROM THE
COAL TAX TRUST FUND TO THE MONTANA GROWTH AND OPPORTUNITY TRUST; ESTABLISHING A
PENSION FUND; ESTABLISHING THE MONTANA HOUSING TRUST; ALLOWING FOR ADDITIONAL USES
OF THE DEBT AND LIABILITY FREE FUND; LIMITING THE TRANSFER OF VOLATILE REVENUE WHEN
GENERAL FUND DEFICIT IS CERTIFIED OR OPERATING RESERVE IS ESTIMATED AT A CERTAIN
AMOUNT; PROVIDING FOR TRANSFERS FROM THE PENSION FUND TO THE TEACHERS' RETIREMENT
SYSTEM OR THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM ON CERTIFICATION OF THE
RETIREMENT SYSTEM BOARD; PROVIDING FOR AN INCREASE TO THE EMPLOYER SUPPLEMENTAL
CONTRIBUTION RATE; PROVIDING FOR FUND TRANSFERS; PROVIDING APPROPRIATIONS;
ESTABLISHING REPORTING REQUIREMENTS; PROVIDING RULEMAKING AUTHORITY; AMENDING
SECTIONS 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-38-302, 17-6-
214, 17-6-308, 17-6-317, 17-7-130, 17-7-140, 19-3-316, 19-20-609, 85-1-631, 90-6-137, AND 90-6-603, MCA;
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AMENDING SECTION 5, CHAPTER 48, LAWS OF 2023; REPEALING SECTION 17-7-134, MCA; AND
PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Montana growth and opportunity trust. (1) There is a Montana growth and opportunity
trust in the permanent fund type funded by annual transfers of volatile revenues as provided for in [section 5].
The trust is administered by the department of revenue.
(2) Transfers into the trust are deposited as follows:
(a) one-half into the distribution portion of the trust; and
(b) one-half into the reinvestment portion of the trust.
(3) (a) Money deposited in the account established in this section must be invested by the board of
investments as provided by law.
(b) If allowed by law, the board of investments may invest funds in the trust in higher-yielding
investments.
(4) A bill appropriating funds from the corpus of the trust must be treated in the same manner as a
bill creating state debt and requires a vote of two-thirds of the members of each house of the legislature for
passage.
Section 2. Distributions from Montana growth and opportunity trust. (1) Except as provided in
subsection (3), interest earnings from the transfers into the distribution portion of the Montana growth and
opportunity trust established in [section 1] are allocated as follows:
(a) 40% to the state property tax assistance account established in [section 14], up to $20 million a
year;
(b) 20% to the Montana water development state special revenue account established in [section
15], up to $10 million a year;
(c) 20% to the better local bridge state special revenue account established in [section 16], up to
$10 million a year; and
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(d) 20% to the Montana early childhood state special revenue account established in [section 17],
up to $10 million a year.
(2) Any remaining interest earnings after the distribution in subsection (1) must be transferred into
the Montana growth and opportunity trust established in [section 1].
(3) (a) By August 15 of each year, the state treasurer shall determine whether the previous fiscal
year ending fund balance of an account referenced in subsection (1) is greater than the appropriation to the
same account for the current year. If the account's ending fund balance exceeds the appropriation, the
difference remains in the distribution portion of the trust and is not transferred into that account.
(b) This subsection (3) does not apply to transfers into the state property tax assistance account.
Section 3. Reinvestment of growth and opportunity trust. Transfers into the reinvestment portion
of the Montana growth and opportunity trust established in [section 1] are allocated as follows:
(1) 80% to the pension fund provided for in [section 18] until the balance in the fund equals $1
billion; and
(2) 20% to a Montana housing trust provided for in [section 26] until the balance in the Montana
housing trust equals $500 million.
(3) Any remaining transfer amount must remain in the reinvestment portion of the trust and is not
allocated to any purpose.
Section 4. Interest earnings. Interest earnings from the distribution portion and the pension fund
within the growth and opportunity trust are combined for purposes of calculating the total amount of interest
earnings and are distributed as follows:
(1) 50% pursuant to the accounts which comprise the distribution portion of the trust in the
percentages set forth in [section 2]; and
(2) 50% to the pension fund established in [section 18].
Section 5. Volatile revenue -- transfer to Montana growth and opportunity trust. (1) Except as
provided in subsection (6), in the fiscal year beginning July 1, 2027, and in each subsequent fiscal year until
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June 30, 2035, by November 1, the state treasurer shall calculate the amount of volatile revenue from the
general fund for that fiscal year. The state treasurer shall transfer 17.5% of the amount of volatile revenue by
November 1 and 17.5% of the amount of volatile revenue by May 1 to the Montana growth and opportunity trust
established in [section 1].
(2) Except as provided in subsection (6), starting in the fiscal year beginning July 1, 2035, the state
treasurer shall transfer 10% of the amount of volatile revenue by November 1 and 10% of the amount of volatile
revenue by May 1 to the Montana growth and opportunity trust established in [section 1].
(3) The amount of volatile revenue is an amount equal to:
(a) the sum of capital gains volatile revenue and partnership volatile revenue; and
(b) a portion of interest earnings from the treasury cash account in 17-6-202 as defined pursuant
to subsection (4).
(4) The amount of interest earnings from the treasury cash account in 17-6-202 defined as volatile
revenue pursuant to subsection (3) is the difference between:
(a) the estimate of interest earnings on the treasury cash account in 17-6-202 as provided in the
most recent official revenue estimate provided for in 5-5-227; and
(b) the lowest actual amount of interest earnings on the treasury cash account in 17-6-202 within
the most recent 7 years of available data as certified to the legislative fiscal analyst and the budget director by
the department of administration and adjusted for inflation pursuant to subsection (7).
(5) For the purposes of this section, the following calculations apply:
(a) "Capital gains increment" is the difference between:
(i) the current calendar year's capital gains estimate as described in the most recent official
revenue estimate provided for in 5-5-227; and
(ii) the lowest reported capital gains income from any year within the most recent 7 years of
available data, as published in the department of revenue's biennial report provided for in 15-1-205 and
adjusted for inflation pursuant to subsection (7).
(b) "Capital gains volatile revenue" is calculated by multiplying the capital gains increment by the
rate established in 15-30-2103(2)(a)(ii).
(c) "Partnership increment" is the difference between:
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(i) the current calendar year's rents, royalty, and partnership estimate as described in the most
recent official revenue estimate provided for in 5-5-227; and
(ii) the lowest reported rents, royalty, and partnership income from any year within the most recent
7 years of available data, as published in the department of revenue's biennial report provided for in 15-1-205
and adjusted for inflation pursuant to subsection (7).
(d) "Partnership volatile revenue" is calculated by multiplying the partnership increment by the rate
established in 15-30-2103(1)(a)(ii).
(6) (a) By August 1 of each year, the department of administration shall certify to the legislative
fiscal analyst and the budget director the unaudited, unassigned ending fund balances for the most recently
completed fiscal year of:
(i) the general fund; and
(ii) the budget stabilization reserve fund provided for in 17-7-130.
(b) If the sum of the ending fund balances for the general fund and budget stabilization reserve
fund equal an amount less than 20% of all general revenue appropriations in the second year of the biennium,
then the amount of the transfers in subsection (1) is reduced by 50% for the fiscal year.
(7) For the purpose of adjusting for inflation, inflation is based on the consumer price index as
defined in 20-9-326, and as published by the bureau of labor statistics of the United States department of labor
for the most recently completed calendar year.
Section 6. Section 15-7-102, MCA, is amended to read:
"15-7-102. Notice of classification, market value, and taxable value to owners -- appeals. (1) (a)
Except as provided in 15-7-138, the department shall mail or provide electronically to each owner or purchaser
under contract for deed a notice that includes the land classification, market value, and taxable value of the
land and improvements owned or being purchased. A notice must be mailed or, with property owner consent,
provided electronically to the owner only if one or more of the following changes pertaining to the land or
improvements have been made since the last notice:
(i) change in ownership;
(ii) change in classification;
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(iii) change in valuation; or
(iv) addition or subtraction of personal property affixed to the land.
(b) The notice must include the following for the taxpayer's informational and informal classification
and appraisal review purposes:
(i) a notice of the availability of all the property tax assistance programs available to property
taxpayers, including the state property tax assistance provided for in [section 35], the intangible land value
assistance program provided for in 15-6-240, the property tax assistance programs provided for in Title 15,
chapter 6, part 3, and the residential property tax credit for the elderly provided for in 15-30-2337 through 15-
30-2341;
(ii) the total amount of mills levied against the property in the prior year;
(iii) the market value for the prior reappraisal cycle;
(iv) if the market value has increased by more than 10%, an explanation for the increase in
valuation;
(v) a statement that the notice is not a tax bill; and
(vi) a taxpayer option to request an informal classification and appraisal review by checking a box
on the notice and returning it to the department.
(c) When the department uses an appraisal method that values land and improvements as a unit,
including the sales comparison approach for residential condominiums or the income approach for commercial
property, the notice must contain a combined appraised value of land and improvements.
(d) Any misinformation provided in the information required by subsection (1)(b) does not affect the
validity of the notice and may not be used as a basis for a challenge of the legality of the notice.
(2) (a) Except as provided in subsection (2)(c), the department shall assign each classification and
appraisal to the correct owner or purchaser under contract for deed and mail or provide electronically the notice
in written or electronic form, adopted by the department, containing sufficient information in a comprehensible
manner designed to fully inform the taxpayer as to the classification and appraisal of the property and of
changes over the prior tax year.
(b) The notice must advise the taxpayer that in order to be eligible for a refund of taxes from an
appeal of the classification or appraisal, the taxpayer is required to pay the taxes under protest as provided in
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15-1-402.
(c) The department is not required to mail or provide electronically the notice to a new owner or
purchaser under contract for deed unless the department has received the realty transfer certificate from the
clerk and recorder as provided in 15-7-304 and has processed the certificate before the notices required by
subsection (2)(a) are mailed or provided electronically. The department shall notify the county tax appeal board
of the date of the mailing or the date when the taxpayer is informed the information is available electronically.
(3) (a) If the owner of any land and improvements is dissatisfied with the appraisal as it reflects the
market value of the property as determined by the department or with the classification of the land or
improvements, the owner may request an informal classification and appraisal review by submitting an
objection on written or electronic forms provided by the department for that purpose or by checking a box on the
notice and returning it to the department in a manner prescribed by the department.
(i) For property other than class three property described in 15-6-133, class four property
described in 15-6-134, class ten property described in 15-6-143, and centrally assessed property described in
15-23-101, the objection must be submitted within 30 days from the date on the notice.
(ii) For class three property described in 15-6-133, class four property described in 15-6-134, and
class ten property described in 15-6-143, the objection may be made only once each valuation cycle. An
objection must be made in writing or by checking a box on the notice within 30 days from the date on the
classification and appraisal notice for a reduction in the appraised value to be considered for both years of the
2-year valuation cycle. An objection made more than 30 days from the date of the classification and appraisal
notice will be applicable only for the second year of the 2-year valuation cycle. For an objection to apply to the
second year of the valuation cycle, the taxpayer shall make the objection in writing or by checking a box on the
notice no later than June 1 of the second year of the valuation cycle or, if a classification and appraisal notice is
received in the second year of the valuation cycle, within 30 days from the date on the notice.
(iii) For centrally assessed property described in 15-23-101(2)(a), the objection must be submitted
within 20 days from the date on the notice. A taxpayer may submit an objection up to 10 days after this deadline
on request to the department.
(iv) (A) For centrally assessed property described in 15-23-101(2)(b) and (2)(c), an objection to the
valuation or classification may be made only once each valuation cycle. An objection must be made in writing
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within the time period specified in subsection (3)(a)(iii) for a reduction in the appraised value to be considered
for both years of the 2-year valuation cycle. An objection made after the deadline specified in subsection
(3)(a)(iii) will be applicable only for the second year of the 2-year valuation cycle. For an objection to apply to
the second year of the valuation cycle, the taxpayer shall make the objection in writing no later than June 1 of
the second year of the valuation cycle or, if a classification and appraisal notice is received in the second year
of the valuation cycle, within the time period specified in subsection (3)(a)(iii).
(B) If a property owner has exhausted the right to object to a valuation, as provided for in
subsection (3)(a)(iv)(A), the property owner may ask the department to consider extenuating circumstances to
adjust the value of property described in 15-23-101(2)(b) or (2)(c). Occurrences that may result in an
adjustment to the value include but are not limited to extraordinary, unusual, or infrequent events that are
material in nature and of a character different from the typical or customary business operations, that are not
expected to recur frequently, and that are not normally considered in the evaluation of the operating results of a
business, including bankruptcies, acquisitions, sales of assets, or mergers.
(b) If the objection relates to residential or commercial property and the objector agrees to the
confidentiality requirements, the department shall provide to the objector, by posted mail or electronically, within
8 weeks of submission of the objection, the following information:
(i) the methodology and sources of data used by the department in the valuation of the property;
and
(ii) if the department uses a blend of evaluations developed from various sources, the reasons that
the methodology was used.
(c) At the request of the objector or a representative of the objector, and only if the objector or
representative signs a written or electronic confidentiality agreement, the department shall provide in written or
electronic form:
(i) comparable sales data used by the department to value the property;
(ii) sales data used by the department to value residential property in the property taxpayer's
market model area; and
(iii) if the cost approach was used by the department to value residential property, the
documentation required in 15-8-111(3) regarding why the comparable sales approach was not reliable.
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(d) For properties valued using the income approach as one approximation of market value, notice
must be provided that the taxpayer will be given a form to acknowledge confidentiality requirements for the
receipt of all aggregate model output that the department used in the valuation model for the property.
(e) The review must be conducted informally and is not subject to the contested case procedures
of the Montana Administrative Procedure Act. As a part of the review, the department may consider the actual
selling price of the property and other relevant information presented by the taxpayer in support of the
taxpayer's opinion as to the market value of the property. The department shall consider an independent
appraisal provided by the taxpayer if the appraisal meets standards set by the Montana board of real estate
appraisers and the appraisal was completed within 6 months of the valuation date pursuant to 15-8-201. If the
department does not use the appraisal provided by the taxpayer in conducting the appeal, the department shall
provide to the taxpayer the reason for not using the appraisal. The department shall give reasonable notice to
the taxpayer of the time and place of the review.
(f) After the review, the department shall determine the correct appraisal and classification of the
land or improvements and notify the taxpayer of its determination by mail or electronically. The department may
not determine an appraised value that is higher than the value that was the subject of the objection unless the
reason for an increase was the result of a physical change in the property or caused by an error in the
description of the property or data available for the property that is kept by the department and used for
calculating the appraised value. In the notification, the department shall state its reasons for revising the
classification or appraisal. When the proper appraisal and classification have been determined, the land must
be classified and the improvements appraised in the manner ordered by the department.
(4) Whether a review as provided in subsection (3) is held or not, the department may not adjust
an appraisal or classification upon the taxpayer's objection unless:
(a) the taxpayer has submitted an objection on written or electronic forms provided by the
department or by checking a box on the notice; and
(b) the department has provided to the objector by mail or electronically its stated reason in writing
for making the adjustment.
(5) A taxpayer's written objection or objection made by checking a box on the notice and
supplemental information provided by a taxpayer that elects to check a box on the notice to a classification or
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appraisal and the department's notification to the taxpayer of its determination and the reason for that
determination are public records. The department shall make the records available for inspection during regular
office hours.
(6) Except as provided in 15-2-302 and 15-23-102, if a property owner feels aggrieved by the
classification or appraisal made by the department after the review provided for in subsection (3), the property
owner has the right to first appeal to the county tax appeal board and then to the Montana tax appeal board,
whose findings are final subject to the right of review in the courts. The appeal to the county tax appeal board,
pursuant to 15-15-102, must be filed within 30 days from the date on the notice of the department's
determination. A county tax appeal board or the Montana tax appeal board may consider the actual selling price
of the property, independent appraisals of the property, negative property features that differentiate the subject
property from the department's comparable sales, and other relevant information presented by the taxpayer as
evidence of the market value of the property. If the county tax appeal board or the Montana tax appeal board
determines that an adjustment should be made, the department shall adjust the base value of the property in
accordance with the board's order."
Section 7. Section 15-10-420, MCA, is amended to read:
"15-10-420. Procedure for calculating levy. (1) (a) Subject to the provisions of this section, a
governmental entity that is authorized to impose mills may impose a mill levy sufficient to generate the amount
of property taxes actually assessed in the prior year plus one-half of the average rate of inflation for the prior 3
years. The maximum number of mills that a governmental entity may impose is established by calculating the
number of mills required to generate the amount of property tax actually assessed in the governmental unit in
the prior year based on the current year taxable value, less the current year's newly taxable value, plus one-half
of the average rate of inflation for the prior 3 years.
(b) A governmental entity that does not impose the maximum number of mills authorized under
subsection (1)(a) may carry forward the authority to impose the number of mills equal to the difference between
the actual number of mills imposed and the maximum number of mills authorized to be imposed. The mill
authority carried forward may be imposed in a subsequent tax year.
(c) For the purposes of subsection (1)(a), the department shall calculate one-half of the average
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rate of inflation for the prior 3 years by using the consumer price index, U.S. city average, all urban consumers,
using the 1982-84 base of 100, as published by the bureau of labor statistics of the United States department of
labor.
(2) A governmental entity may apply the levy calculated pursuant to subsection (1)(a) plus any
additional levies authorized by the voters, as provided in 15-10-425, to all property in the governmental unit,
including newly taxable property.
(3) (a) For purposes of this section, newly taxable property includes:
(i) annexation of real property and improvements into a taxing unit;
(ii) construction, expansion, or remodeling of improvements;
(iii) transfer of property into a taxing unit;
(iv) subdivision of real property; and
(v) transfer of property from tax-exempt to taxable status.
(b) Newly taxable property does not include an increase in value that arises because of an
increase in the incremental value within a tax increment financing district.
(4) (a) For the purposes of subsection (1), the taxable value of newly taxable property includes the
release of taxable value from the incremental taxable value of a tax increment financing district because of:
(i) a change in the boundary of a tax increment financing district;
(ii) an increase in the base value of the tax increment financing district pursuant to 7-15-4287; or
(iii) the termination of a tax increment financing district.
(b) If a tax increment financing district terminates prior to the certification of taxable values as
required in 15-10-202, the increment value is reported as newly taxable property in the year in which the tax
increment financing district terminates. If a tax increment financing district terminates after the certification of
taxable values as required in 15-10-202, the increment value is reported as newly taxable property in the
following tax year.
(c) For the purpose of subsection (3)(a)(ii), the value of newly taxable class four property that was
constructed, expanded, or remodeled property since the completion of the last reappraisal cycle is the current
year market value of that property less the previous year market value of that property.
(d) For the purpose of subsection (3)(a)(iv), the subdivision of real property includes the first sale
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of real property that results in the property being taxable as class four property under 15-6-134 or as
nonqualified agricultural land as described in 15-6-133(1)(c).
(5) Subject to subsection (8), subsection (1)(a) does not apply to:
(a) school district levies established in Title 20; or
(b) a mill levy imposed for a newly created regional resource authority.
(6) For purposes of subsection (1)(a), taxes imposed do not include net or gross proceeds taxes
received under 15-6-131 and 15-6-132.
(7) In determining the maximum number of mills in subsection (1)(a), the governmental entity:
(a) may increase the number of mills to account for a decrease in reimbursements; and
(b) may not increase the number of mills to account for a loss of tax base because of legislative
action that is reimbursed under the provisions of 15-1-121(7); and
(c) may not include revenue distributed to a county to provide state property tax assistance
pursuant to [section 35].
(8) The department shall calculate, on a statewide basis, the number of mills to be imposed for
purposes of 15-10-109, 20-9-331, 20-9-333, 20-9-360, and 20-25-439. However, the number of mills calculated
by the department may not exceed the mill levy limits established in those sections. The mill calculation must
be established in tenths of mills. If the mill levy calculation does not result in an even tenth of a mill, then the
calculation must be rounded up to the nearest tenth of a mill.
(9) (a) The provisions of subsection (1) do not prevent or restrict:
(i) a judgment levy under 2-9-316, 7-6-4015, or 7-7-2202;
(ii) a levy to repay taxes paid under protest as provided in 15-1-402;
(iii) an emergency levy authorized under 10-3-405, 20-9-168, or 20-15-326;
(iv) a levy for the support of a study commission under 7-3-184;
(v) a levy for the support of a newly established regional resource authority;
(vi) the portion that is the amount in excess of the base contribution of a governmental entity's
property tax levy for contributions for group benefits excluded under 2-9-212 or 2-18-703;
(vii) a levy for reimbursing a county for costs incurred in transferring property records to an
adjoining county under 7-2-2807 upon relocation of a county boundary;
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(viii) a levy used to fund the sheriffs' retirement system under 19-7-404(3)(b); or
(ix) a governmental entity from levying mills for the support of an airport authority in existence prior
to May 7, 2019, regardless of the amount of the levy imposed for the support of the airport authority in the past.
The levy under this subsection (9)(a)(ix) is limited to the amount in the resolution creating the authority.
(b) A levy authorized under subsection (9)(a) may not be included in the amount of property taxes
actually assessed in a subsequent year.
(10) A governmental entity may levy mills for the support of airports as authorized in 67-10-402, 67-
11-301, or 67-11-302 even though the governmental entity has not imposed a levy for the airport or the airport
authority in either of the previous 2 years and the airport or airport authority has not been appropriated
operating funds by a county or municipality during that time.
(11) The department may adopt rules to implement this section. The rules may include a method for
calculating the percentage of change in valuation for purposes of determining the elimination of property, new
improvements, or newly taxable value in a governmental unit."
Section 8. Section 15-15-101, MCA, is amended to read:
"15-15-101. County tax appeal board -- meetings and compensation. (1) The board of county
commissioners of each county shall appoint a county tax appeal board, with a minimum of three members and
with the members to serve staggered terms of 3 years each. The members of each county tax appeal board
must be residents of the county in which they serve. A person may not be a member of a county tax appeal
board if the person was an employee of the department less than 36 months before the date of appointment.
(2) (a) The members receive compensation as provided in subsection (2)(b) and travel expenses,
as provided for in 2-18-501 through 2-18-503, only when the county tax appeal board meets to hear taxpayers'
appeals from property tax assessments or when they are attending meetings called by the Montana tax appeal
board. Travel expenses and compensation must be paid from the appropriation to the Montana tax appeal
board.
(b) (i) The daily compensation for a member is as follows:
(A) $45 for 4 hours of work or less; and
(B) $90 for more than 4 hours of work.
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(ii) For the purpose of calculating work hours in this subsection (2)(b), work includes hearing tax
appeals, deliberating with other board members, and attending meetings called by the Montana tax appeal
board.
(3) Office space and equipment for the county tax appeal boards must be furnished by the county.
All other incidental expenses must be paid from the appropriation of the Montana tax appeal board.
(4) The county tax appeal board shall hold an organizational meeting each year on the date of its
first scheduled hearing, immediately before conducting the business for which the hearing was otherwise
scheduled. At the organizational meeting, the members shall choose one member as the presiding officer of the
board. The county tax appeal board shall continue in session from July 1 of the current tax year until December
31 of the current tax year to hear protests concerning assessments made by the department until the business
of hearing protests is disposed of and may meet after December 31 to hear an appeal at the discretion of the
county tax appeal board.
(5) In counties that have appointed more than three members to the county tax appeal board, only
three members shall hear each appeal. The presiding officer shall select the three members hearing each
appeal.
(6) In connection with an appeal, the county tax appeal board may change any assessment or fix
the assessment at some other level or determine eligibility as a primary residence pursuant to [section 36].
Upon notification by the county tax appeal board, the county clerk and recorder shall publish a notice to
taxpayers, giving the time the county tax appeal board will be in session to hear scheduled protests concerning
assessments and the latest date the county tax appeal board may take applications for the hearings. The notice
must be published in a newspaper if any is printed in the county or, if none, then in the manner that the county
tax appeal board directs. The notice must be published by May 15 of the current tax year.
(7) Challenges to a department rule governing the assessment of property or to an assessment
procedure apply only to the taxpayer bringing the challenge and may not apply to all similarly situated taxpayers
unless an action is brought in the district court as provided in 15-1-406."
Section 9. Section 15-15-102, MCA, is amended to read:
"15-15-102. Application for reduction in valuation -- certification as primary residence. (1) The
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county tax appeal board may not reduce the valuation of property may not be reduced by the county tax appeal
board or review eligibility as a primary residence under [section 36] unless either the taxpayer or the taxpayer's
agent makes and files a written application for reduction with the county tax appeal board.
(2) The application for reduction may be obtained at the local appraisal office or from the county
tax appeal board. The completed application must be submitted to the county clerk and recorder. The date of
receipt is the date stamped on the appeal form by the county clerk and recorder upon receipt of the form. The
county tax appeal board is responsible for obtaining the applications from the county clerk and recorder.
(3) One application for reduction may be submitted during each valuation cycle. The application
must be submitted within the time periods provided for in 15-7-102(3)(a) or [section 38].
(4) A taxpayer who receives an informal review by the department of revenue as provided in 15-7-
102(3)(a)(i) and (3)(a)(ii) or [section 38] may appeal the decision of the department of revenue to the county tax
appeal board as provided in [section 38(2)] and 15-7-102(6). The taxpayer may not file a subsequent
application for reduction for the same property with the county tax appeal board during the same valuation
cycle.
(5) If the department's determination after review is not made in time to allow the county tax appeal
board to review the matter during the current tax year, the appeal must be reviewed during the next tax year,
but the decision by the county tax appeal board is effective for the year in which the request for review was filed
with the department. The application must state the post-office address of the applicant, specifically describe
the property involved, and state the facts upon which it is claimed the reduction should be made or the property
should be certified as a primary residence."
Section 10. Section 15-15-103, MCA, is amended to read:
"15-15-103. Examination of applicant -- failure to hear application. (1) Before the county tax
appeal board grants any application or makes any reduction applied for, it shall examine on oath the person or
agent making the application with regard to the value of the property of the person or eligibility as a primary
residence pursuant to [section 36]. A reduction may not be made or a property certified as a primary residence
unless the applicant makes an application, as provided in 15-15-102, and attends the county board hearing. An
appeal of the county board's decision may not be made to the Montana tax appeal board unless the person or
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the person's agent has exhausted the remedies available through the county board. In order to exhaust the
remedies, the person or the person's agent shall attend the county board hearing. On written request by the
person or the person's agent and on the written concurrence of the department, the county board may waive
the requirement that the person or the person's agent attend the hearing. The testimony of all witnesses at the
hearing and the deliberation of the county tax appeal board in rendering a decision must be electronically
recorded and preserved for 1 year. If the decision of the county board is appealed, the record of the
proceedings, including the electronic recording of all testimony and the deliberation of the county tax appeal
board, must be forwarded, together with all exhibits, to the Montana board. The date of the hearing, the
proceedings before the county board, and the decision must be entered upon the minutes of the county board,
and the county board shall notify the applicant of its decision by mail within 3 days. A copy of the minutes of the
county board must be transmitted to the Montana board no later than 3 days after the county board holds its
final hearing of the year.
(2) (a) Except as provided in 15-15-201, if a county board refuses or fails to hear a taxpayer's
timely application for a reduction in valuation of property or eligibility as a primary residence, the taxpayer's
application is considered to be granted on the day following the county board's final meeting for that year. The
department shall enter the appraisal, or classification, or eligibility as a primary residence sought in the
application in the property tax record. An application is not automatically granted for the following appeals:
(i) those listed in 15-2-302(1); and
(ii) if a taxpayer's appeal from the department's determination of classification or appraisal made
pursuant to 15-7-102 was not received in time, as provided for in 15-15-102, to be considered by the county
board during its current session.
(b) The county board shall provide written notification of each application that was automatically
granted pursuant to subsection (2)(a) to the department, the Montana board, and any affected municipal
corporation. The notice must include the name of the taxpayer and a description of the subject property.
(3) The county tax appeal board shall consider an independent appraisal provided by the taxpayer
if the appraisal meets standards set by the Montana board of real estate appraisers and the appraisal was
conducted within 6 months of the valuation date. If the county tax appeal board does not use the appraisal
provided by the taxpayer in conducting the appeal, the county board shall provide to the taxpayer the reason for
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not using the appraisal."
Section 11. Section 15-16-101, MCA, is amended to read:
"15-16-101. Treasurer to publish notice -- manner of publication. (1) Within 10 days after the
receipt of the property tax record, the county treasurer shall publish a notice specifying:
(a) that one-half of all taxes levied and assessed will be due and payable before 5 p.m. on the next
November 30 or within 30 days after the notice is postmarked and that unless paid prior to that time the amount
then due will be delinquent and will draw interest at the rate of 5/6 of 1% a month from the time of delinquency
until paid and 2% will be added to the delinquent taxes as a penalty;
(b) that one-half of all taxes levied and assessed will be due and payable on or before 5 p.m. on
the next May 31 and that unless paid prior to that time the taxes will be delinquent and will draw interest at the
rate of 5/6 of 1% a month from the time of delinquency until paid and 2% will be added to the delinquent taxes
as a penalty; and
(c) the time and place at which payment of taxes may be made.
(2) (a) The county treasurer shall send to the last-known address of each taxpayer a written notice,
postage prepaid, showing the amount of taxes and assessments due for the current year and the amount due
and delinquent for other years. The written notice must include:
(i) the taxable value of the property;
(ii) the total mill levy applied to that taxable value;
(iii) itemized city services and special improvement district assessments collected by the county;
(iv) the number of the school district in which the property is located;
(v) the amount of the total tax due itemized by mill levy that is levied as city tax, county tax, state
tax, school district tax, and other tax and, for a primary residence, the total amount of state property tax
assistance received under [section 35];
(vi) an indication of which mill levies are voted levies, including voted levies to impose a new mill
levy, to increase a mill levy that is required to be submitted to the electors, or to exceed the mill levy limit
provided for in 15-10-420;
(vii) except as provided in subsection (2)(c), an itemization of the taxes due for each mill levy and a
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comparison to the amount due for each mill levy in the prior year; and
(viii) a notice of the availability of all the property tax assistance programs available to property
taxpayers, including the state property tax assistance provided for in [section 35], the intangible land value
assistance program provided for in 15-6-240, the property tax assistance programs under Title 15, chapter 6,
part 3, and the residential property tax credit for the elderly under 15-30-2337 through 15-30-2341.
(b) If a tax lien is attached to the property, the notice must also include, in a manner calculated to
draw attention, a statement that a tax lien is attached to the property, that failure to respond will result in loss of
property, and that the taxpayer may contact the county treasurer for complete information.
(c) The information required in subsection (2)(a)(vii) may be posted on the county treasurer's
website instead of being included on the written notice.
(3) The municipality shall, upon request of the county treasurer, provide the information to be
included under subsection (2)(a)(iii) ready for mailing.
(4) The notice in every case must be given as provided in 7-1-2121. Failure to publish or post
notices does not relieve the taxpayer from any tax liability. Any failure to give notice of the tax due for the
current year or of delinquent tax will not affect the legality of the tax.
(5) If the department revises an assessment that results in an additional tax of $5 or less, an
additional tax is not owed and a new tax bill does not need to be prepared."
Section 12. Section 15-17-125, MCA, is amended to read:
"15-17-125. Attachment of tax lien and preparation of tax lien certificate. (1) (a) The county
treasurer shall attach a tax lien no later than the first working day in August to properties on which the taxes are
delinquent and for which proper notification was given as provided in 15-17-122 and subsection (4) of this
section. Upon attachment of a tax lien, the county is the possessor of the tax lien unless the tax lien is assigned
pursuant to 15-17-323.
(b) The county treasurer may not attach a tax lien to a property on which taxes are delinquent but
for which proper notice was not given.
(2) After attaching a tax lien, the county treasurer shall prepare a tax lien certificate that must
contain:
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(a) the date on which the property taxes became delinquent;
(b) the date on which a property tax lien was attached to the property;
(c) the name and address of record of the person to whom the taxes were assessed;
(d) a description of the property on which the taxes were assessed;
(e) a separate listing of the amount of the delinquent taxes, penalties, interest, and costs;
(f) a statement that the tax lien certificate represents a lien on the property that may lead to the
issuance of a tax deed for the property;
(g) a statement specifying the date on which the county or an assignee will be entitled to a tax
deed; and
(h) an identification number corresponding to the tax lien certificate.
(3) The tax lien certificate must be signed by the county treasurer. A copy of the tax lien certificate
must be filed by the treasurer in the office of the county clerk. A copy of the tax lien certificate must also be
mailed to the person to whom the taxes were assessed, at the address of record, together with a notice that the
person may contact the county treasurer for further information on property tax liens.
(4) Prior to attaching a tax lien to the property, the county treasurer shall send notice of the
pending attachment of a tax lien to the person to whom the property was assessed. The notice must include the
information listed in subsection (2), state that the tax lien may be assigned to a third party, and provide notice of
the availability of all the property tax assistance programs available to property taxpayers, including the state
property tax assistance provided for in [section 35], the property tax assistance programs under Title 15,
chapter 6, part 3, and the residential property tax credit for the elderly under 15-30-2337 through 15-30-2341.
The notice must have been mailed at least 2 weeks prior to the date on which the county treasurer attaches the
tax lien.
(5) The county treasurer shall file the tax lien certificate with the county clerk and recorder."
Section 13. Section 15-38-302, MCA, is amended to read:
"15-38-302. Natural resources projects state special revenue account created -- revenue
allocated -- limitations on appropriations from account. (1) There is a natural resources projects state
special revenue account within the state special revenue fund established in 17-2-102.
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(2) There must be paid into the natural resources projects state special revenue account money
allocated from:
(a) the interest income of the resource indemnity trust fund under the provisions of 15-38-202;
(b) the resource indemnity and ground water assessment tax under the provisions of 15-38-106;
(c) the oil and natural gas production tax as provided in 15-36-331; and
(d) the excess of the coal severance tax proceeds allocated by 85-1-603 to the renewable
resource loan debt service fund above debt service requirements as provided in and subject to the conditions of
85-1-619; and
(e) 10% of the interest earned from the Montana water development state special revenue account
established in [section 15] to be used for water storage pilot projects and dam inspections required under 85-
15-213.
(3) Appropriations may be made from the natural resources projects state special revenue account
for grants and loans for designated projects and the activities authorized in 85-1-602 and 90-2-1102.
(4) The account retains its own interest."
Section 14. State property tax assistance account. (1) There is a state property tax assistance
account in the state special revenue fund established in 17-2-102. The revenue allocated to the account as
provided in [section 2] must be deposited in the account and distributed as provided in this section.
(2) (a) At the end of each fiscal year, if the balance in the account exceeds $50 million, the
department shall determine the amount of property tax assistance per primary residence by subtracting the
amounts listed in subsection (2)(c) and dividing the remainder by the total number of primary residences
certified pursuant to [section 36].
(b) By August 31 of each year, the department shall distribute to each county the property tax
assistance per primary residence multiplied by the number of primary residences within the county. The county
shall deposit the money in the account in which property tax revenue is held and use the distribution to provide
property tax assistance pursuant to [section 35].
(c) The department may retain 2% of the revenue allocated to the account for administering the
certification of primary residences under [section 36] and shall retain $100,000 for appeals granted under
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[section 38].
(3) The department shall provide each county with a list of property in the county that the
department certifies pursuant to [section 36] qualifies as a primary residence to enable the county treasurer to
administer the property tax assistance.
(4) A payment required pursuant to this section may be withheld if, for more than 90 days, a local
government fails to:
(a) file a financial report required by 15-1-504;
(b) remit any amounts collected on behalf of the state as required by 15-1-504; or
(c) remit any other amounts owed to the state or another taxing jurisdiction.
Section 15. Montana water development state special revenue account. (1) (a) There is a
Montana water development state special revenue fund as provided for in 17-2-102 to the credit of the
department of natural resources and conservation.
(b) The fund retains its own interest.
(c) The account is composed of revenue gifted to the state or transferred to the account by the
legislature and interest generated by the account.
(2) Ninety percent of the earnings from the investment must be distributed to the water storage
state special revenue account established in 85-1-631.
(3) Ten percent of the earnings from the investment must be distributed to the natural resources
projects state special revenue account established in 15-38-302 to be used for water storage pilot projects and
dam inspections required under 85-15-213.
Section 16. Better local bridge state special revenue account -- rulemaking. (1) There is an
account in the state special revenue fund provided for in 17-2-102 to be known as the better local bridge fund
account to the credit of the department of transportation.
(2) There must be deposited in the account money received pursuant to [section 5].
(3) The account may be used for:
(a) grants to local government for the costs associated with engineering and construction of local,
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off-system bridges; and
(b) administrative costs for the department of transportation, not to exceed 5% of revenue
received.
(4) Grants to local governments must include no less than 20% local matching funds.
(5) The department shall enact rules for distribution of annual grants to local governments.
(6) The account retains its own interest.
Section 17. Montana early childhood account -- nonsupplantation of funds. (1) There is a
Montana early childhood account in the state special revenue fund in the state treasury to the credit of the
department of public health and human services.
(2) Funds deposited in the Montana early childhood account may only be used for the programs
and grants authorized in [section 20] and may not be used to pay the expenses of any other program or service
administered in whole or in part by the department of public health and human services or any other state
government entity.
(3) Private contributions to the Montana early childhood account are excluded for purposes of
calculating the account's ending fund balance or limiting transfers into the account pursuant to [section 2].
(4) The account retains its own interest.
Section 18. Pension fund. There is a pension portion of the Montana growth and opportunity trust
established [section 1].
(2) The account is funded by a distribution pursuant to 17-6-214, 17-7-130, and transfers made
pursuant to [section 5].
(3) Funds in the account may only be used to transfer into a state-administered pension fund.
(4) In any 2-year period, no more than $300 million may be transferred from the pension section of
the Montana growth and opportunity trust for the purposes outlined in subsections (5) and (6).
(5) (a) On certification by the teachers' retirement board, the state treasurer shall transfer no more
than 25% of the balance of this fund to the teachers' retirement system to ensure that the system meets its
long-term rate of return assumption if the inception-to-date market rate of return as of June 30 in the previous 2
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consecutive fiscal years is less than the current actuarially assumed rate of return set by the teachers'
retirement board.
(b) The amount of a transfer authorized in subsection (5)(a) is limited to the amount necessary to
bring the inception-to-date market rate of return as of June 30 in the previous fiscal year up to the actuarially
assumed rate of return set by the teachers' retirement board.
(c) When applicable, the teachers' retirement board shall determine and shall certify to the state
treasurer the amount of the transfer required under this section. The state treasurer shall transfer the certified
amount to the pension trust fund within 30 days following receipt of certification from the teachers' retirement
board.
(6) (a) On certification by the public employees' retirement board, the state treasurer shall transfer
no more than 25% of the balance of this fund to the public employees' retirement system to ensure that the
system meets its long-term rate of return assumption if the inception-to-date market rate of return as of June 30
in the previous 2 consecutive fiscal years is less than the current actuarially assumed rate of return set by the
public employees' retirement board.
(b) The amount of a transfer authorized in subsection (6)(a) is limited to the amount necessary to
bring the inception-to-date market rate of return as of June 30 in the previous fiscal year up to the actuarially
assumed rate of return set by the public employees' retirement board.
(c) When applicable, the public employees' retirement board shall determine and shall certify to
the state treasurer the amount of the transfer required under this section. The state treasurer shall transfer the
certified amount to the pension trust fund within 30 days following receipt of certification from the public
employees' retirement board.
Section 19. Montana early childhood account board. (1) There is a Montana early childhood
account board consisting of ten members appointed by the governor as follows:
(a) two members who are employees of the department of public health and human services,
including one employee of the early childhood and family support division and one employee of the division of
the department that oversees American Indian health;
(b) one member who is an employee of the department of labor and industry;
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(c) one member who is an employee of the office of public instruction;
(d) one member who is an employee of the department of commerce;
(e) two members representing state and local community early childhood organizations;
(f) two Montana child-care providers; and
(g) a parent with a child or children under the age of 6 in child care.
(2) A member's term is 3 years. Initial appointments may specify a shorter length of the initial term
to stagger the terms. Vacancies must be filled for the balance of an unexpired term. A member of the board
may be reappointed.
(3) The board is allocated to the department of public health and human services for administrative
purposes only, as provided in 2-15-121. The department may employ staff and adopt rules to carry out the
duties as described in [sections 19 through 22].
(4) Unless otherwise provided by law, each member is entitled to be reimbursed for travel
expenses incurred, as provided in 2-18-501 through 2-18-503, while performing board duties.
Section 20. Eligible uses of Montana early childhood account. (1) The Montana early childhood
account board established in [section 19] shall use the money in the Montana early childhood account provided
for in [section 17] to fund services and activities under the eligibility criteria below approved by the Montana
early childhood account board established in [section 19].
(2) Eligible purposes for which the board may authorize include:
(a) early care and education provider support and workforce development, including:
(i) technical assistance grants that offer funding to start or expand child-care businesses,
community-level partnerships, and program access strategies;
(ii) grants to support early childhood postsecondary education, certifications, apprenticeship,
training, and continuing education to grow the workforce of early childhood professionals; and
(iii) recruitment and retention grants to provide workforce benefits, stipends, or supplements to
retain qualified workers;
(b) quality improvement initiatives, including accreditation support, curriculum development, safety
upgrades, and supports for infants, toddlers, and children with special needs;
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(c) affordability initiatives, including expansion of licensed before-school and after-school care, the
state child care subsidy program, and temporary child care assistance programs for families facing sudden
financial hardship;
(d) innovation initiatives, including community child-care expansion programs and early learning
and early childhood intervention access programs; and
(e) emergency assistance and disaster relief programs for impacted child-care facilities.
(3) In administering funding from the early childhood account, the board shall:
(a) determine funding priorities for services and activities using the department of public health and
human services' early childhood system strategic plan and comprehensive fiscal analysis;
(b) establish further criteria for the receipt of program funds;
(c) monitor the expenditure of funds by organizations receiving funds under this section; and
(d) evaluate the efficacy of services and activities funded under this section.
(4) By September 1 of each year, the department shall report to the education interim committee
and the children, families, health, and human services interim committee in accordance with 5-11-210 on the
services and activities funded under this section
Section 21. Gifts and grants to programs. (1) The Montana early childhood account board may
accept contributions, gifts, and grants, of money or otherwise, to the programs described in [section 20].
Monetary gifts, contributions, and grants earmarked for the Montana early childhood account must be paid into
the account established in [section 17] and expended pursuant to 17-8-101(2).
(2) Funds accepted pursuant to this section may qualify for the Montana endowment tax credit.
Section 22. Program costs -- annual report. (1) The costs incurred by the Montana early childhood
account board in administering the programs described in [section 20] must be paid for with money from the
Montana early childhood account provided for in [section 17]. The board shall keep costs to a minimum and use
existing office space, personnel, equipment, and supplies of the department of public health and human
services to the extent possible.
(2) (a) By September 1 of each year, the department shall provide a written report to the children,
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families, health, and human services interim committee in accordance with 5-11-210.
(b) The report must include the following information for each program or grant:
(i) the project or activity for which it was awarded;
(ii) the amount of the grant;
(iii) proposed and actual uses of grant funds;
(iv) the duration; and
(v) its recipient.
Section 23. Section 17-6-214, MCA, is amended to read:
"17-6-214. Debt and liability free account -- rules for deposits and transfers -- purpose. (1)
There is an account in the state special revenue fund established by 17-2-102 known as the debt and liability
free account.
(2) The purpose of the debt and liability free account is to as follows:
(a) to pay the principal, interest, premiums, and any costs or fees associated with redeeming
outstanding bonds, notes, or other obligations that have been authorized and issued pursuant to the laws of
Montana and that are currently subject to optional redemption;
(b) to pay the principal, interest, premiums, and any costs or fees associated with defeasing
outstanding bonds, notes, or other obligations that have been authorized and issued pursuant to the laws of
Montana that are not currently subject to optional redemption;
(c) to forego or reduce the amount of an issuance of general obligation bonds paid from the
general fund authorized by the legislature but not yet issued by the board of examiners prior to using funds from
the account established in 17-7-209 for the same purpose; and
(d) to pay in whole or in part legally resolved nonpension financial liabilities of the state of
Montana;
(e) to replace federal funding that has been rescinded by the federal government from remaining
funding of the American Rescue Plan Act funds;
(f) to mitigate the need for general fund supplemental appropriations for the general
appropriations act; and
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(g) to replace federal funds that have been reduced or rescinded by the federal government.
(3) For the fiscal year beginning July 1, 2022, through the fiscal year ending June 30, 2025,
interest income received pursuant to 17-6-202(2) is deposited into the account.
(4) Funds in the debt and liability free account are statutorily appropriated, as provided in 17-7-
502, to the governor's office of budget and program planning and must be used in accordance with the
requirements of this section.
(5) Funds expended from the account in this section may not be included in the calculation of
annual transfers in 17-7-208.
(6) The office of budget and program planning shall prioritize the use of funds for the uses outlined
in subsections (1)(a) through (1)(c).
(7) Within 15 days of the close of each fiscal quarter, the office of budget and program planning
shall submit a written report to the legislative finance committee in accordance with 5-11-210 that identifies the
amount and the type of debt payoff or other expenditure from the account established in this section for the
previous fiscal quarter.
(8) If the unobligated ending fund balance of this account is less than $12.5 million, then up to 50%
of the volatile revenue calculated pursuant to [section 5(4)], but no more than $12.5 million per year, may be
transferred by the state treasurer into this account."
Section 24. Section 17-6-308, MCA, is amended to read:
"17-6-308. Authorized investments. (1) Except as provided in subsections (2) through (8) (7) of this
section and subject to the provisions of 17-6-201, the Montana permanent coal tax trust fund must be invested
as authorized by rules adopted by the board.
(2) The board may make loans from the permanent coal tax trust fund to the capital reserve
account created pursuant to 17-5-1515 to establish balances or restore deficiencies in the account. The board
may agree in connection with the issuance of bonds or notes secured by the account or fund to make the loans.
Loans must be on terms and conditions determined by the board and must be repaid from revenue realized
from the exercise of the board's powers under 17-5-1501 through 17-5-1518 and 17-5-1521 through 17-5-1529,
subject to the prior pledge of the revenue to the bonds and notes.
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(3) The board shall manage the seed capital and research and development loan portfolios
created by the former Montana board of science and technology development. The board shall establish an
appropriate repayment schedule for all outstanding research and development loans made to the university
system. The board is the successor in interest to all agreements, contracts, loans, notes, or other instruments
entered into by the Montana board of science and technology development as part of the seed capital and
research and development loan portfolios, except agreements, contracts, loans, notes, or other instruments
funded with coal tax permanent trust funds. The board shall administer the agreements, contracts, loans, notes,
or other instruments funded with coal tax permanent trust funds. As loans made by the former Montana board
of science and technology development are repaid, the board shall deposit the proceeds or loans made from
the coal severance tax trust fund in the coal severance tax permanent fund until all investments are paid back
with 7% interest.
(4) The board shall allow the Montana facility finance authority to administer $15 million of the
permanent coal tax trust fund for capital projects. Until the authority makes a loan pursuant to the provisions of
Title 90, chapter 7, the funds under its administration must be invested by the board pursuant to the provisions
of 17-6-201. As loans for capital projects made pursuant to this subsection are repaid, the principal and interest
payments on the loans must be deposited in the coal severance tax permanent fund until all principal and
interest have been repaid. The board and the authority shall calculate the amount of the interest charge.
Individual loan amounts may not exceed 10% of the amount administered under this subsection.
(5) The board shall allow the board of housing to administer $50 million of the permanent coal tax
trust fund for the purposes of the Montana veterans' home loan mortgage program provided for in Title 90,
chapter 6, part 6.
(6) The board shall allow the board of housing to administer $65 million of the permanent coal tax
trust fund for the purpose of providing loans for the development and preservation of homes and apartments to
assist low-income and moderate-income persons with meeting their basic housing needs pursuant to 90-6-137.
(7)(5) (a) Subject to subsections (7)(b) and (7)(c) (5)(b) and (5)(c), the board may make working
capital loans from the permanent coal tax trust fund to an owner of a coal-fired generating unit.
(b) Loans may be provided in accordance with subsection (7)(a) (5)(a) to an owner to finance:
(i) the everyday operations and required maintenance of a coal-fired generating unit of which an
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owner has a shared interest;
(ii) the purchase of an additional interest in a coal-fired generating unit of which an owner has a
shared interest;
(iii) the purchase of coal to use at a coal-fired generating unit or improvements necessary to utilize
coal from a different source at a coal-fired generating unit. When considering loan requests made under this
subsection (7)(b)(iii) (5)(b)(iii), the board shall give preference to requests that allow for utilization of coal
resources located in Montana or allow for improvements to utilize coal resources located in Montana that are
determined to be economically feasible.
(iv) the purchase of electric transmission lines and associated facilities of a design capacity of 500
kilovolts or more primarily used to transmit electricity generated by a coal-fired resource;
(v) costs related to decommissioning and remediation of a coal-fired generating unit or affected
property to meet applicable legal obligations as defined in 75-8-103; or
(vi) any combination of subsections (7)(b)(i) through (7)(b)(v) (5)(b)(i) through (5)(b)(v).
(c) The board may charge a working capital loan application fee of up to $500.
(8)(6) The board may make loans from the permanent coal tax trust fund to a city, town, county, or
consolidated city-county government impacted by the closure of a coal-fired generating unit to secure and
maintain existing infrastructure.
(9)(7) The board shall adopt rules to allow a nonprofit corporation to apply for economic assistance.
The rules must recognize that different criteria may be needed for nonprofit corporations than for for-profit
corporations.
(10)(8) All repayments of proceeds pursuant to subsection (3) of investments made from the coal
severance tax trust fund must be deposited in the coal severance tax permanent fund All repayments of
proceeds pursuant to subsection (3) of investments made from the coal severance tax trust fund must be
deposited in the coal severance tax permanent fund.
(9) By August 1, 2025, loans administered by funds in the permanent coal tax trust fund pursuant
to 90-6-137 and 90-6-603 must be instead administered by the funds in the Montana housing trust provided for
in [section 26], except that if not all principal of these loans has been paid, all proceeds from payment of
principal of loans from the permanent coal tax trust fund must be deposited in the permanent coal tax trust fund
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until the principal of the loan is repaid."
Section 25. Section 17-6-317, MCA, is amended to read:
"17-6-317. Participation by private financial institutions -- rulemaking. (1) (a) The board may
jointly participate with private financial institutions in making loans to a business enterprise if the loan will:
(i) result in the creation of a business estimated to employ at least 10 people in Montana on a
permanent, full-time basis;
(ii) result in the expansion of a business estimated to employ at least an additional 10 people in
Montana on a permanent, full-time basis; or
(iii) prevent the elimination of the jobs of at least 10 Montana residents who are permanent, full-
time employees of the business.
(b) Loans under this section may be made only to:
(i) business enterprises that are producing or will produce value-added products or commodities;
or
(ii) owners of coal-fired generating units for the purposes established in 17-6-308 (7) 17-6-308(5).
(c) A loan made pursuant to this section does not qualify for a job credit interest rate reduction
under 17-6-318.
(2) A loan made pursuant to this section may not exceed 1% of the coal severance tax permanent
fund and must comply with each of the following requirements:
(a) (i) The business enterprise seeking a loan must have a cash equity position equal to at least
25% of the total loan amount.
(ii) A participating private financial institution may not require the business to have an equity
position greater than 50% of the total loan amount.
(iii) If additional security or guarantees, exclusive of federal guarantees, are required to cover a
participating private financial institution, then the additional security or guarantees must be proportional to the
amount loaned by all participants, including the board of investments.
(b) The board shall provide 75% of the total loan amount.
(c) The term of the loan may not exceed 15 years.
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(d) The board shall charge interest at the following annual rate:
(i) 2% for the first 5 years if 15 or more jobs are created or retained;
(ii) 4% for the first 5 years if 10 to 14 jobs are created or retained;
(iii) 6% for the second 5 years; and
(iv) the board's posted interest rate for the third 5 years, but not to exceed 10% a year.
(e) (i) The interest rates in subsections (2)(d)(i) and (2)(d)(ii) become effective when the board
receives certification that the required number of jobs has been created or as provided in subsection (2)(e)(ii). If
the board disburses loan proceeds prior to creation of the required jobs, the loan must bear interest at the
board's posted rate.
(ii) In establishing interest rates under subsections (2)(d)(i) and (2)(d)(ii) for preventing the
elimination of jobs, the board shall require the submission of financial data that allows the board to determine if
the loan and interest rate will in fact prevent the elimination of jobs.
(f) If a business entitled to the interest rate in subsection (2)(d)(i) or (2)(d)(ii) reduces the number
of required jobs, the board may apply a graduated scale to increase the interest rate, not to exceed the board's
posted rate.
(g) For purposes of calculating job creation or retention requirements, the board shall use the
state's average weekly wage, as defined in 39-71-116, multiplied by the number of jobs required. This
calculated number is the minimum aggregate salary threshold that is required to be eligible for a reduced
interest rate. If individual jobs created pay less than the state's average weekly wage, the borrower shall create
more jobs to meet the minimum aggregate salary threshold. If fewer jobs are created or retained than required
in subsection (2)(d)(i) or (2)(d)(ii) but aggregate salaries meet the minimum aggregate salary threshold, the
borrower is eligible for the reduced interest rate. A job paying less than the minimum wage, provided for in 39-
3-409, may not be included in the required number of jobs.
(h) (i) A participating private financial institution may charge interest in an amount equal to the
national prime interest rate, adjusted on January 1 of each year, but the interest rate may not be less than 6%
or greater than 12%.
(ii) At the borrower's discretion, the borrower may request the lead lender to change this prime
rate to an adjustable or fixed rate on terms acceptable to the borrower and lender.
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(iii) A participating private financial institution, or lead private financial institution if more than one is
participating, may charge a 0.5% annual service fee.
(i) The business enterprise may not be charged a loan prepayment penalty.
(j) The loan agreement must contain provisions providing for pro rata lien priority and pro rata
liquidation provisions based on the loan percentage of the board and each participating private lender.
(3) If a portion of a loan made pursuant to this section is for construction, disbursement of that
portion of the loan must be made based on the percentage of completion to ensure that the construction portion
of the loan is advanced prior to completion of the project.
(4) A private financial institution shall participate in a loan made pursuant to this section to the
extent of 85% of its lending limit or 25% of the loan, whichever is less. However, the board's participation in the
loan must be 75% of the loan amount.
(5) (a) Except as provided in subsections (5)(b) and (5)(c), a business enterprise receiving a loan
under the provisions of this section may not pay bonuses or dividends to investors until the loan has been paid
off, except that incentives may be paid to employees for achieving performance standards or goals.
(b) A business enterprise for the production of ethanol to be used as provided in Title 15, chapter
70, part 5, may pay dividends to investors and bonuses to employees if the business enterprise is current on its
loan payments and has available funds equal to at least 15% of the outstanding principal balance of the loan.
(c) A public utility may pay dividends to investors and bonuses to employees if the public utility is
current on its loan payments and has available funds equal to at least 15% of the outstanding principal balance
of the loan.
(6) The board may adopt rules that it considers necessary to implement this section."
Section 26. Montana housing trust. (1) There is a Montana housing trust in the Montana growth
and opportunity trust.
(2) The Montana housing trust is comprised of three programs:
(a) the housing Montana fund administered by the board of housing;
(b) the Montana veterans' home loan mortgage program administered by the board of housing;
and
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(c) the program providing loans for the development and preservation of homes and apartments to
assist eligible low-income and moderate-income applicants administered by the board of housing.
(3) The board of housing shall administer $50 million or more of the Montana housing trust for the
purposes of the Montana veterans' home loan mortgage program provided for in Title 90, chapter 6, part 6.
(4) The board of housing shall administer $65 million or more of the Montana housing trust for the
purpose of providing loans for the development and preservation of homes and apartments to assist low-
income and moderate-income persons with meeting their basic housing needs pursuant to 90-6-137.
Section 27. Section 17-7-130, MCA, is amended to read:
"17-7-130. Budget stabilization reserve fund -- rules for deposits and transfers -- purpose. (1)
There is an account in the state special revenue fund established by 17-2-102 known as the budget
stabilization reserve fund.
(2) The purpose of the budget stabilization reserve fund is to mitigate budget reductions when
there is a revenue shortfall.
(3) Except as provided in subsection (4), by August 15 following the end of each fiscal year, an
amount equal to the balance of unexpended and unencumbered general fund money appropriated in excess of
0.5% of the total general fund money appropriated for that fiscal year must be transferred by the state treasurer
from the general fund to the budget stabilization reserve fund. General fund appropriations that continue from a
fiscal year to the next fiscal year and any general fund appropriations made pursuant to 10-3-310 or 10-3-312
are excluded from the calculation.
(4) The provisions of subsection (3) do not apply in a fiscal year in which reductions required by
17-7-140 occur or if a transfer pursuant to subsection (3) would require reductions pursuant to 17-7-140.
(5) If the transfer provided for in subsection (3) increases the balance in the budget stabilization
reserve fund to exceed 16% of all general revenue appropriations in the second year of the biennium, the
amount in excess is transferred to the capital developments long-range building program account established in
17-7-209.
(6) By August 1 of each year, the department of administration shall certify to the legislative fiscal
analyst and the budget director the following:
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(a) the unaudited, unassigned ending fund balance of the general fund for the most recently
completed fiscal year; and
(b) the amount of unaudited general fund revenue and transfers into the general fund received in
the prior fiscal year recorded when that fiscal year's statewide accounting, budgeting, and human resource
system records are closed. General fund revenue and transfers into the general fund are those recorded in the
statewide accounting, budgeting, and human resource system using generally accepted accounting principles
in accordance with 17-1-102.
(7) (a) The state treasurer shall calculate the operating reserve level of general fund balance
defined in 17-7-102(12). The treasurer shall first apply the excess revenue to reach the operating reserve level
general fund balance, if necessary.
(b) Once the general fund balance is at the reserve level, 75% of the remaining excess revenue is
transferred as follows:
(i) to the budget stabilization reserve fund, until the amount in the fund is equal to 16% of all
general revenue appropriations in the second year of the biennium; then
(ii) to the account established in 17-7-209, until the amount in the fund in excess of the amount
needed for appropriations from the capital developments long-range building program account in the capital
projects fund type is equal to 12% of all general revenue appropriations in the second year of the biennium.
(c) After the transfers in subsections (7)(b)(i) and (7)(b)(ii) have been made, if the balance of the
budget stabilization reserve fund exceeds an amount equal to 16% of the general revenue appropriations in the
second year of the biennium and the balance of the account established in 17-7-209 in excess of the amount
needed for appropriations from the capital developments long-range building program account in the capital
projects fund type exceeds 12% of all general revenue appropriations in the second year of the biennium, then:
(i) 75% of any funds in excess of that amount must be transferred to the account established in
17-7-134 Montana growth and opportunity trust established in [section 1]; and
(ii) 25% of the funds in excess of that amount remain in the general fund.
(8) For the purposes of this section, the following definitions apply:
(a) "Adjusted compound annual growth rate revenue" means general fund revenue for the fiscal
year prior to the most recently completed fiscal year plus the growth amount.
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(b) "Excess revenue" means the amount of general fund revenue, including transfers in, for the
most recently completed fiscal year minus adjusted compound annual growth rate revenue.
(c) "Growth amount" means general fund revenue for the fiscal year prior to the most recently
completed fiscal year multiplied by the growth rate.
(d) "Growth rate" means the annual compound growth rate of general fund revenue realized over
the period 12 years prior to the most recently completed fiscal year, including the most recently completed fiscal
year."
Section 28. Section 17-7-140, MCA, is amended to read:
"17-7-140. Reduction in spending. (1) (a) As the chief budget officer of the state, the governor shall
ensure that the expenditure of appropriations does not exceed available revenue. Except as provided in
subsection (2), in the event of a projected general fund budget deficit, the governor, taking into account the
criteria provided in subsection (1)(c), shall direct agencies to reduce spending in an amount that ensures that
the projected ending general fund balance for the biennium will be at least:
(i) 4% of the general revenue appropriations for the second fiscal year of the biennium prior to
October of the year preceding a legislative session;
(ii) 3% of the general revenue appropriations for the second fiscal year of the biennium in October
of the year preceding a legislative session;
(iii) 2% of the general revenue appropriations for the second fiscal year of the biennium in January
of the year in which a legislative session is convened; and
(iv) 1% of the general revenue appropriations for the second fiscal year of the biennium in March of
the year in which a legislative session is convened.
(b) An agency may not be required to reduce general fund spending for any program, as defined in
each general appropriations act, by more than 10% during a biennium. A governor may not reduce total agency
spending in the biennium by more than 4% of the second year general revenue appropriations for the agency.
Departments or agencies headed by elected officials or the board of regents may not be required to reduce
general fund spending by a percentage greater than the percentage of general fund spending reductions
required for the weighted average of all other executive branch agencies. The legislature may exempt from a
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reduction an appropriation item within a program or may direct that the appropriation item may not be reduced
by more than 10%.
(c) The governor shall direct agencies to manage their budgets in order to reduce general fund
expenditures. Prior to directing agencies to reduce spending as provided in subsection (1)(a), the governor
shall direct each agency to analyze the nature of each program that receives a general fund appropriation to
determine whether the program is mandatory or permissive and to analyze the impact of the proposed
reduction in spending on the purpose of the program. An agency shall submit its analysis to the office of budget
and program planning and shall at the same time provide a copy of the analysis to the legislative fiscal analyst.
The report must be submitted in an electronic format. The office of budget and program planning shall review
each agency's analysis, and the budget director shall submit to the governor a copy of the office of budget and
program planning's recommendations for reductions in spending. The budget director shall provide a copy of
the recommendations to the legislative fiscal analyst at the time that the recommendations are submitted to the
governor and shall provide the legislative fiscal analyst with any proposed changes to the recommendations.
The recommendations must be provided in an electronic format and entered into the state budgeting software.
The recommendations must be provided to the legislature in accordance with 5-11-210. The legislative finance
committee established in 5-12-201 and the interim budget committees established in 5-12-501 shall meet within
20 30 days of the date that the proposed changes to the recommendations for reductions in spending are
provided to the legislative fiscal analyst. The legislative fiscal analyst shall provide a copy of the legislative fiscal
analyst's review of the proposed reductions in spending to the budget director at least 5 days before the
meeting of the legislative finance committee. The legislative finance committee may make recommendations
concerning the proposed reductions in spending. The governor shall consider each agency's analysis and the
recommendations of the office of budget and program planning and the legislative finance committee in
determining the agency's reduction in spending and may incorporate information from the interim budget
committees in making recommendations. Reductions in spending must be designed to have the least adverse
impact on the provision of services determined to be most integral to the discharge of the agency's statutory
responsibilities.
(2) Reductions in spending for the following may not be directed by the governor:
(a) payment of interest and principal on state debt;
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(b) the legislative branch;
(c) the judicial branch;
(d) the school BASE funding program, including special education;
(e) salaries of elected officials during their terms of office; and
(f) the Montana school for the deaf and blind.
(3) (a) As used in this section, "projected general fund budget deficit" means an amount, certified
by the budget director to the governor, by which the projected ending general fund balance for the biennium is
less than:
(i) 4% of the general revenue appropriations for the second fiscal year of the biennium prior to
October of the year preceding a legislative session;
(ii) 1.875% in October of the year preceding a legislative session;
(iii) 1.25% in January of the year in which a legislative session is convened; and
(iv) 0.625% in March of the year in which a legislative session is convened.
(b) In determining the amount of the projected general fund budget deficit, the budget director shall
take into account revenue, established levels of appropriation, anticipated supplemental appropriations for
school equalization aid and the cost of the state's wildland fire suppression activities exceeding the amount
statutorily appropriated in 10-3-312, and anticipated reversions.
(4) If the budget director determines that an amount of actual or projected receipts will result in an
amount less than the amount projected to be received in the revenue estimate established pursuant to 5-5-227,
the budget director shall notify the revenue interim committee in accordance with 5-11-210 of the estimated
amount. Within 20 days of notification, the revenue interim committee shall provide the budget director with any
recommendations concerning the amount. The budget director shall consider any recommendations of the
revenue interim committee prior to certifying a projected general fund budget deficit to the governor.
(5) If the budget director certifies a projected general fund budget deficit, the governor may
authorize transfers to the general fund from certain accounts as set forth in subsection (6) (7).
(6) If the budget director certifies a projected general fund budget deficit, then the governor may
cancel the remaining transfers of volatile revenue to the Montana growth and opportunity trust established in
[section 1] for the biennium.
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(6)(7) The governor may authorize transfers from the budget stabilization reserve fund provided for in
17-7-130. The governor may authorize $3 of transfers from the fund for each $1 of reductions in spending but
may not authorize a transfer that would cause the balance of the budget stabilization reserve fund to be less
than 6% of all general revenue appropriations in the second year of the biennium."
Section 29. Section 19-3-316, MCA, is amended to read:
"19-3-316. Employer contribution rates. (1) Each employer shall contribute to the system. Except
as provided in subsection (2), the employer shall pay as employer contributions 6.9% of the compensation paid
to all of the employer's employees plus any additional contribution under subsection (3), except for those
employees properly excluded from membership. Of employer contributions made under this subsection for both
defined benefit plan and defined contribution plan members, a portion must be allocated for educational
programs as provided in 19-3-112. Employer contributions for members under the defined contribution plan
must be allocated as provided in 19-3-2117.
(2) Local government and school district employer contributions must be the total employer
contribution rate provided in subsection (1) minus the state contribution rates under 19-3-319.
(3) (a) Subject to subsection (4), each employer shall contribute to the system an additional
employer contribution equal to the percentage specified in subsection (3)(b) of the compensation paid to all of
the employer's employees, except for those employees properly excluded from membership.
(b) The percentage of compensation to be contributed under subsection (3)(a) is 1.27% for fiscal
year 2014 and increases by 0.1% each fiscal year through fiscal year 2024. For fiscal years beginning after
June 30, 2024 2024, the percentage of compensation to be contributed under subsection (3)(a) is 2.27%. For
fiscal years beginning after June 30, 2027, there is a 0.1% increase each fiscal year through the fiscal year
ending June 30, 2047. For fiscal years beginning after June 30, 2047, the percentage of compensation to be
contributed under subsection (3)(a) is 4.27%.
(4) (a) The board shall annually review the additional employer contribution provided for under
subsection (3) and recommend adjustments to the legislature as needed to maintain the amortization schedule
set by the board for payment of the system's unfunded liabilities.
(b) The employer contribution required under subsection (3) terminates on January 1 following the
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board's receipt of the system's actuarial valuation if the actuarial valuation determines that terminating the
additional employer contribution pursuant to this subsection (4)(b) and reducing the employee contribution
pursuant to 19-3-315(2) would not cause the amortization period to exceed 25 years."
Section 30. Section 19-20-609, MCA, is amended to read:
"19-20-609. Employer's supplemental contribution -- actuarially determined adjustments. (1) (a)
Subject to subsections (1)(b) through (1)(d), each employer shall contribute to the retirement system a
supplemental amount equal to the percentage specified in subsection (1)(b) of total earned compensation of
each member employed during the whole or part of the preceding payroll period.
(b) The percentage of compensation to be contributed under subsection (1)(a) is 1% for fiscal year
2014 and increases by 0.1% each fiscal year through fiscal year 2024. For fiscal years beginning after June 30,
2024 after June 30, 2024, the percentage of compensation to be contributed under subsection (1)(a) is 2%. For
fiscal years beginning after June 30, 2027, there is a 0.1% increase each fiscal year through the fiscal year
ending June 30, 2047. For fiscal years beginning after June 30, 2047, the percentage of compensation to be
contributed under subsection (1)(a) is 4%.
(c) The board may decrease the employer's supplemental contribution if:
(i) the average funded ratio of the system based on the last three actuarial valuations is equal to
or greater than 90%;
(ii) the period necessary to amortize all liabilities of the system based on the most recent annual
actuarial valuation is less than 15 years; and
(iii) the guaranteed annual benefit adjustment has been increased to the maximum allowed under
19-20-719.
(d) Following one or more decreases in the supplemental contribution rate pursuant to subsection
(1)(c), the board may increase the supplemental contribution to a rate not to exceed 1% if:
(i) the average funded ratio of the system based on the last three annual actuarial valuations is
equal to or less than 80%; and
(ii) the period necessary to amortize all liabilities of the system based on the most recent annual
actuarial valuation is greater than 20 years.
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(2) After the board has actuarially determined the need to impose, increase, or decrease a
supplemental contribution rate under this section, the imposition, increase, or decrease is effective on the first
day of July following the board's determination."
Section 31. Section 85-1-631, MCA, is amended to read:
"85-1-631. Water storage state special revenue account created -- revenues allocated --
appropriations from account. (1) There is a water storage state special revenue account within the state
special revenue fund established in 17-2-102.
(2) There must be paid into the water storage state special revenue account:
(a) for the biennium beginning July 1, 2007, the proceeds of the resource indemnity and ground
water assessment tax as provided in 15-38-106; and
(b) money allocated from the resource indemnity trust fund interest earnings pursuant to 15-38-202
and all revenue of the works and other money as provided in 85-1-332; and
(c) 90% of the interest earned from the Montana water development state special revenue account
established in [section 15].
(3) All revenue provided from 85-1-332(1)(e) and (1)(f) deposited in the water storage state special
revenue account must be appropriated solely for the construction, operation, rehabilitation, expansion,
maintenance, and modification of state-owned water storage projects.
(4) Money that was not encumbered or expended from the water storage state special revenue
account during the previous biennium must remain in the account.
(5) Deposits to the water storage state special revenue account must be placed in short-term
investments and accrue interest, which must be deposited in the water storage state special revenue account.
(6) The purpose of the water storage state special revenue account is to provide money
exclusively for construction, operation, rehabilitation, expansion, maintenance, and modification of state-owned
water storage projects."
Section 32. Section 90-6-137, MCA, is amended to read:
"90-6-137. Alternate funding source for housing loans -- use of coal tax trust fund money
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Montana housing trust within Montana growth and opportunity trust. (1) The board of investments
housing shall allow the board of housing to administer $65 million or more of the coal tax trust fund of funds
from the Montana housing trust provided for in [section 26] for the purpose of providing loans for the
development and preservation of homes and apartments to assist eligible low-income and moderate-income
applicants. Until the board uses money in the coal tax trust Montana housing fund trust to loan to a qualified
applicant pursuant to this part, the money under the administration of the board must remain invested by the
board of investments.
(2) While a loan made from the coal tax trust fund Montana housing trust pursuant to this section is
repaid, the principal payments on the loan must be deposited in the coal tax trust fund Montana housing trust
until all of the principal of the loan is repaid. Interest received on a loan may be used by the board, in amounts
determined by the board in accordance with 90-6-136, to pay for the servicing of a loan and for reasonable
costs of the board for administering the program. After payment of associated expenses, interest received on
the loan must be deposited into the coal tax trust fund Montana housing trust.
(3) (a) Money from the coal tax trust fund Montana housing trust must be used for the purposes
identified in 90-6-134(3) and (4).
(b) Loans made pursuant to this section must meet the following requirements:
(i) Projects funded with the loans must be multifamily rental housing projects that provide low-
income and moderate-income housing.
(ii) The loan must be in the first lien position and may not exceed 95% of total development costs.
(iii) The minimum interest rate charged on a loan pursuant to this section is no less than 0.5%
below the current coal trust fund investment performance, and all loans combined must at least average the
current coal trust investment performance.
(iv)(iii) The board and the loan recipient shall each pay half of loan servicing fees.
(v)(iv) Projects funded with the loans must be subject to property taxes, except those located on tribal
lands.
(4) Money from the coal tax trust fund Montana housing trust may not be used to replace existing
or available sources of funding for eligible activities.
(5) Funds administered by the board from the coal tax trust fund Montana housing trust may not be
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used to pay the expenses of any other program or service administered by the board.
(6) A multifamily rental housing project eligible to receive a loan under this section may include the
development or preservation of a mobile home park as defined in 70-33-103."
Section 33. Section 90-6-603, MCA, is amended to read:
"90-6-603. Veterans' home loan mortgage program created -- use of coal tax trust Montana
housing fund money trust. (1) There is a Montana veterans' home loan mortgage program under the direction
and management of the board for eligible veterans who are first-time home buyers.
(2) The board of investments housing shall allow the board to administer $50 million or more of the
permanent coal tax trust fund Montana housing trust provided for in [section 26] for the purpose of the program.
Until the board uses money in the trust fund to purchase a mortgage loan from a participating financial
institution pursuant to this part, the money under the administration of the board must remain invested by the
board of investments. As a loan made pursuant to this part is repaid, the principal payments on the loan must
be deposited in the trust fund Montana housing trust until all of the principal of the loan is repaid. Interest
received on the loan may be used by a participating financial institution and the board, in amounts determined
by the board in accordance with 90-6-605, to pay for the origination and servicing of a loan by a participating
financial institution and to pay the reasonable costs of the board for the administration of the program. After
payment of associated expenses, interest received on the loan must be deposited into in the trust fund Montana
housing trust.
(3) Interest on a home mortgage loan made pursuant to this part must be charged at 1% less than
the federal national mortgage association's delivery rate or 1% lower than the lowest interest rate charged by
the board for the purposes of other home loan mortgage programs administered by the board, whichever is
less. If the federal national mortgage association's rate becomes unavailable, the board shall use another
similar rate for the purposes of this subsection. The board may not make a direct loan to an eligible veteran."
Section 34. Reduction of volatile revenue transfer -- report. If the budget director estimates a
projected general fund ending fund balance at the end of the biennium that is less than the operating reserve as
defined in 17-7-102, the budget director shall inform the legislative finance committee and the legislative fiscal
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analyst in writing of the financial forecast and recommended actions by September 15 if a reduction is
considered for the November 1 transfer or March 15, if a reduction is considered for the May transfer. The
legislative finance committee may meet and comment within 30 days of receiving the forecast and
recommendations. Then the governor may reduce the transfer of volatile revenue to the Montana growth and
opportunity trust established in [section 1] by up to 50% of the volatile revenue transfer amount.
Section 35. Property tax assistance for primary residences. (1) A county shall provide property
tax assistance to owners of primary residences certified by the department of revenue pursuant to [section 36].
The assistance is provided with funding from the state property tax assistance account distributed to the county
as provided in [section 14].
(2) (a) Except as provided in subsection (2)(b), the county treasurer shall provide the property tax
assistance distributed pursuant to [section 14] to each primary residence by listing the property tax assistance
amount as a credit on the property tax bill as provided in 15-16-101(2)(a)(v).
(b) If the property tax assistance calculated pursuant to [section 14(2)]. exceeds the property tax
billed for an individual property, the county may retain the revenue that exceeds the property tax billed.
(3) The owner of a primary residence that receives property tax assistance under this section is not
prohibited from receiving property tax assistance under another property tax assistance program.
(4) State property tax assistance provided to counties pursuant to this section may not affect the
maximum mill calculation in 15-10-420.
Section 36. Certification of primary residence for state property tax assistance -- rulemaking --
definition. (1) To receive state property tax assistance pursuant to [section 35], the owner of a primary
residence shall apply to the department for certification of the primary residence.
(2) (a) To receive state property tax assistance for the tax year in which the application is first
made, the owner shall apply electronically or by mail on a form prescribed by the department and postmarked
by March 1. Approved applications received electronically or postmarked after March 1 apply to the following
tax year.
(b) Once approved, the certification remains effective until:
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(i) there is a change in ownership of the property;
(ii) the owner no longer uses the dwelling as a primary residence; or
(iii) the owner applies for state property tax assistance for a different primary residence.
(c) If certification is terminated pursuant to subsection (2)(b), the owner shall submit a new
application to the department to reestablish the certification.
(d) An application for state property tax assistance must be submitted on a form prescribed by the
department and must contain:
(i) a written declaration made under penalty of perjury that the applicant owns and maintains the
land and improvements as the primary residence. The application must state the penalty provided for in [section
37].
(ii) the geocode or other property identifier for the primary residence for which the applicant is
requesting the state property tax assistance;
(iii) the social security number of the applicant; and
(iv) any other information required by the department that is relevant to the applicant’s eligibility.
(3) (a) Except as provided in subsection (3)(b), class four residential property owned by an entity is
not eligible to receive the state property tax assistance.
(b) The trustee of a grantor revocable trust may apply for state property tax assistance for a
primary residence on behalf of the trust if the dwelling meets the definition of a primary residence for the
grantor.
(4) The department may adopt rules, prepare forms, and maintain records that are necessary to
implement this section.
(5) (a) For the purpose of this section and [sections 37 and 38], "primary residence" means a class
four residential property:
(i) that is a single-family dwelling unit, unit of a multiple-unit dwelling, trailer, manufactured home,
or mobile home;
(ii) in which an owner can demonstrate the owner owned and lived for at least 7 months of the
year;
(iii) that is the owner's only primary residence;
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(iv) for which the value of the residential dwelling is $1 million or less; and
(v) for which the owner made payment of the assessed Montana property taxes.
(b) An owner who cannot meet the requirements of subsection (5)(a)(ii) because the owner’s
primary residence changed during the tax year to another primary residence may still qualify if the owner paid
the Montana property taxes while residing in each primary residence for a total of at least 7 consecutive months
of the tax year. The department shall establish rules for determining the property tax assistance when the
primary residences are in different counties.
Section 37. State property tax assistance -- penalty for false or fraudulent application. A person
who files a false or fraudulent certification of primary residence for state property tax assistance under [section
36] is subject to criminal prosecution under the provisions of 45-7-202 and may be prohibited from claiming
state property tax assistance for up to 10 years. If false or fraudulent property tax assistance has been issued
by the county, the amount of assistance granted may be recovered as any other tax owed the county. If
property tax assistance becomes due and owing, the department may issue a warrant for distraint as provided
in Title 15, chapter 1, part 7.
Section 38. Appeal of denial of certification of primary residence. (1) (a) If the department denies
an application for certification of a primary residence, the owner may request an informal review of the denial by
submitting an objection on written or electronic forms provided by the department for that purpose in a manner
prescribed by the department. The objection must be made no later than 30 days after the date of the denial
notification.
(b) The property owner may request that the department consider extenuating circumstances to
grant an application for certification of a primary residence. Extenuating circumstances include but are not
limited to extraordinary, unusual, or infrequent events that are material in nature and of a character different
from the typical or customary, and that are not expected to recur.
(c) After the informal review, the department shall determine the correct status of the application
and notify the taxpayer of its determination by mail or electronically. In the notification, the department shall
state its reasons for accepting or denying the application.
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(2) If a property owner is aggrieved by the determination made by the department after the review
provided for in subsection (1), the property owner has the right to first appeal to the county tax appeal board
and then to the Montana tax appeal board, whose findings are final subject to the right of review in the courts.
An appeal to the county tax appeal board, pursuant to 15-15-102, must be filed within 30 days from the date on
the notice of the department's determination. If the county tax appeal board or the Montana tax appeal board
determines that the residence should qualify as a primary residence, the department shall provide to the
property owner the amount of property tax assistance due from the amount retained pursuant to [section 14].
Section 39. Section 5, Chapter 48, Laws of 2023, is amended to read:
"Section 5. Transfer of funds. (1) By June 30, 2023, the state treasurer shall transfer $125 million
from the general fund to the account provided for in [section 1].
(2) By June 30, 2023, the state treasurer shall transfer $18.6 million from the general fund to the
statewide public safety communications system account provided for in 44-4-1607.
(3) By June 30, 2027, the state treasurer shall transfer any unobligated funds in the account
established in [section 1} as follows:
(a) 50% to the capital developments long-range building program account established in 17-7-209:
and
(b) 50% to the general fund."
Section 40. Repealer. The following section of the Montana Code Annotated is repealed:
17-7-134. Pension state special revenue account.
Section 41. Transfer of funds. (1) For the fiscal year beginning July 1, 2024, the state treasurer
shall make the following transfers from the general fund:
(a) $20 million to the state property tax assistance account;
(b) $10 million to the Montana water development state special revenue account;
(c) $10 million to the better local bridge state special revenue account;
(d) $10 million to the Montana early childhood state special revenue account;
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(e) $250 million to the pension fund established in [section 18];
(f) $50 million for bridges to the distribution portion of the trust of the Montana growth and
opportunity trust provided for in [section 1]; and
(g) $174 million to the distribution portion of the trust of the Montana growth and opportunity trust
provided for in [section 1].
(2) (a) For the fiscal year beginning July 1, 2024, the state treasurer shall make the following
transfers from the debt and liability free account established in 17-6-214:
(i) $26 million to the Montana housing trust, or a different amount based on the balance of
authorized funds committed to eligible applicants by the board of housing but not disbursed as of July 30, 2025,
for programs administered pursuant to 90-6-137 and 90-6-603; and
(ii) $89 million, or a different amount based on the balance of authorized funds disbursed to
eligible applicants by the board of housing as of July 30, 2025, to the permanent coal tax trust.
(b) The transfer amounts for the permanent coal tax trust and for programs administered pursuant
to 90-6-137 and 90-6-603 may not exceed $115 million and may be adjusted in this subsection (2) to:
(i) first transfer an amount into the permanent coal tax trust equal to its outstanding loans; and
(ii) transfer the remainder to programs administered pursuant to 90-6-137 and 90-6-603.
(3) (a) For the fiscal year beginning July 1, 2025, the state treasurer shall make the following
transfers from the general fund :
(i) $30.1 million to the distribution portion of the trust of the Montana growth and opportunity trust
provided for in [section 1] by November 1, 2025, and May 1, 2026;
(ii) $24.1 million to the pension fund established in [section 18] by November 1, 2025, and May 1,
2026; and
(iii) $6 million to the Montana housing trust established in [section 26] by November 1, 2025, and
May 1, 2026.
(b) If the budget director estimates a projected general fund ending fund balance at the end of the
fiscal year that is less than the operating reserve as defined in 17-7-102, the budget director shall inform the
legislative finance committee and the legislative fiscal analyst in writing of the financial forecast and
recommended actions by September 15 if a reduction is considered for the November 1 transfer or March 15, if
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a reduction is considered for the May transfer. The legislative finance committee may meet and comment within
30 days of receiving the forecast and recommendations. Then the governor may reduce the transfers provided
for in this subsection (3) to the Montana growth and opportunity trust established in [section 1] by up to 50%.
(4) For the fiscal year beginning July 1, 2025, the state treasurer shall transfer $10 million from the
capital developments long-range building program established in 17-7-209 into the Montana housing trust.
(5) (a) For the fiscal year beginning July 1, 2026, the state treasurer shall make the following
transfers from the general fund :
(i) $23 million to the distribution portion of the trust of the Montana growth and opportunity trust
provided for in [section 1] by November 1, 2026, and May 1, 2027;
(ii) $18.4 million to the pension fund established in [section 18] by November 1, 2026, and May 1,
2027; and
(iii) $4.6 million to the Montana housing trust established in [section 26] by November 1, 2026, and
May 1, 2027.
(b) If the budget director estimates a projected general fund ending fund balance at the end of the
fiscal year that is less than the operating reserve as defined in 17-7-102, the budget director shall inform the
legislative finance committee and the legislative fiscal analyst in writing of the financial forecast and
recommended actions by September 15 if a reduction is considered for the November 1 transfer or March 15, if
a reduction is considered for the May transfer. The legislative finance committee may meet and comment within
30 days of receiving the forecast and recommendations. Then the governor may reduce the transfers provided
for in this subsection (5) to the Montana growth and opportunity trust established in [section 1] by up to 50%.
Section 42. Appropriations. (1) There is appropriated the following amounts from the following
accounts for the fiscal year beginning July 1, 2025, for the purposes outlined in those accounts:
(a) $7.5 million from the Montana water development state special revenue account to the
department of natural resources and conservation;
(b) $7.5 million from the better local bridge state special revenue account to the department of
transportation; and
(c) $7.5 million from the Montana early childhood state special revenue account to the department
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of public health and human services.
(2) There is appropriated the following amounts from the following accounts for the fiscal year
beginning July 1, 2026, for the purposes outlined in those accounts:
(a) $10 million from the Montana water development state special revenue account to the
department of natural resources and conservation;
(b) $10 million from the local bridge state special revenue account to the department of
transportation; and
(c) $10 million from the Montana early childhood state special revenue account to the department
of public health and human services.
(3) The legislature intends that the appropriations in subsection (2) be considered part of the
ongoing base for the next legislative session.
Section 43. Codification instruction. (1) [Sections 1 through 5 and 34] are intended to be codified
as an integral part of Title 17, and the provisions of Title 17 apply to [sections 1 through 5 and 34].
(2) [Sections 14 and 36 through 38] are intended to be codified as an integral part of Title 15,
chapter 6, and the provisions of Title 15, chapter 6, apply to [sections 14 and 36 through 38].
(3) [Section 15] is intended to be codified as an integral part of Title 85, chapter 1, part 3, and the
provisions of Title 85, chapter 1, part 3, apply to [section 15].
(4) [Section 16] is intended to be codified as an integral part of Title 60, chapter 2, part 2, and the
provisions of Title 60, chapter 2, part 2, apply to [section 16].
(5) [Sections 17 and 19 through 22] are intended to be codified as an integral part of Title 52,
chapter 2, and the provisions of Title 52, chapter 2, apply to [sections 17 and 19 through 22].
(6) [Section 18] is intended to be codified as an integral part of Title 17, chapter 7, and the
provisions of Title 17, chapter 7, apply to [section 18].
(7) [Section 35] is intended to be codified as an integral part of Title 7, chapter 6, part 25, and the
provisions of Title 7, chapter 6, part 25, apply to [section 35].
(8) [Section 26] is intended to be codified as an integral part of Title 90, chapter 6, and the
provisions of Title 90, chapter 6, apply to [section 26].
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Section 44. Coordination instruction. (1) If both Senate Bill No. 56 and [this act] are passed and
approved, and if both contain a section that amends 19-3-316, then the section amending 19-3-316 in Senate
Bill No. 56 is void.
(2) If both Senate Bill No. 287 and [this act] are passed and approved, and if both contain a
section that amends 19-3-316, then the section amending 19-3-316 in [this act] is void.
(3) If both Senate Bill No. 287 and [this act] are passed and approved, and if both contain a
section that amends 19-20-609, then the section amending 19-20-609 in [this act] is void.
Section 45. Coordination instruction. If both Senate Bill No. 324 and [this act] are passed and
approved, and if Senate Bill No. 324 amends 61-3-321 to provide for a transfer or deposit of funds into the
better local bridge fund, then [section 5 of Senate Bill No. 324], establishing the better local bridge fund, is void
and funds instead transfer or deposit into the distribution portion of the Montana growth and opportunity trust
provided for in [section 1].
Section 46. Effective date. [This act] is effective on passage and approval.
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I hereby certify that the within bill,
HB 924, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 924
INTRODUCED BY L. JONES, B. LER, C. COCHRAN, E. ALBUS, B. BARKER, D. BEDEY, M. BERTOGLIO, J.
FITZPATRICK, J. KARLEN, C. KEOGH, G. PARRY, L. REKSTEN, E. TILLEMAN, P. TUSS, K. WALSH
AN ACT GENERALLY REVISING STATE FINANCE LAWS; CREATING THE MONTANA GROWTH AND
OPPORTUNITY TRUST; PROVIDING FOR TRANSFERS OF VOLATILE REVENUES TO THE TRUST;
PROVIDING FOR ANNUAL DISTRIBUTIONS OF INTEREST INCOME TO STATE SPECIAL REVENUE
ACCOUNTS; PROVIDING FOR REINVESTMENT OF A PORTION OF THE TRUST FOR PENSIONS AND
HOUSING; PROVIDING FOR CALCULATIONS RELATED TO VOLATILE REVENUE; ESTABLISHING A
STATE PROPERTY RELIEF ACCOUNT; ESTABLISHING A MONTANA WATER DEVELOPMENT STATE
SPECIAL REVENUE ACCOUNT; ESTABLISHING A BETTER LOCAL BRIDGE ACCOUNT; ESTABLISHING A
MONTANA EARLY CHILDHOOD ACCOUNT, BOARD, AND FUNDING; PROVIDING PROPERTY TAX
ASSISTANCE THAT IS DISTRIBUTED TO COUNTIES TO BE DISTRIBUTED AS A CREDIT TO CERTAIN
PRIMARY RESIDENCES; REQUIRING THE DEPARTMENT OF REVENUE TO CERTIFY PRIMARY
RESIDENCES; PROVIDING A PENALTY FOR FALSE OR FRAUDULENT PRIMARY RESIDENCE
APPLICATIONS; PROVIDING AN APPEALS PROCESS FOR CERTIFICATION OF A PRIMARY RESIDENCE;
PROVIDING A DEFINITION; TRANSFERRING AUTHORITY FOR CERTAIN HOUSING LOANS FROM THE
COAL TAX TRUST FUND TO THE MONTANA GROWTH AND OPPORTUNITY TRUST; ESTABLISHING A
PENSION FUND; ESTABLISHING THE MONTANA HOUSING TRUST; ALLOWING FOR ADDITIONAL USES
OF THE DEBT AND LIABILITY FREE FUND; LIMITING THE TRANSFER OF VOLATILE REVENUE WHEN
GENERAL FUND DEFICIT IS CERTIFIED OR OPERATING RESERVE IS ESTIMATED AT A CERTAIN
AMOUNT; PROVIDING FOR TRANSFERS FROM THE PENSION FUND TO THE TEACHERS' RETIREMENT
SYSTEM OR THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM ON CERTIFICATION OF THE
RETIREMENT SYSTEM BOARD; PROVIDING FOR AN INCREASE TO THE EMPLOYER SUPPLEMENTAL
CONTRIBUTION RATE; PROVIDING FOR FUND TRANSFERS; PROVIDING APPROPRIATIONS;
ESTABLISHING REPORTING REQUIREMENTS; PROVIDING RULEMAKING AUTHORITY; AMENDING
SECTIONS 15-7-102, 15-10-420, 15-15-101, 15-15-102, 15-15-103, 15-16-101, 15-17-125, 15-38-302, 17-6-
214, 17-6-308, 17-6-317, 17-7-130, 17-7-140, 19-3-316, 19-20-609, 85-1-631, 90-6-137, AND 90-6-603, MCA;
AMENDING SECTION 5, CHAPTER 48, LAWS OF 2023; REPEALING SECTION 17-7-134, MCA; AND
PROVIDING AN IMMEDIATE EFFECTIVE DATE.