UNAPPROVED DRAFT BILL -- Subject to Change Without Notice!
BILL NO.
INTRODUCED BY
(Primary Sponsor)
A BILL FOR AN ACT ENTITLED: "AN ACT APPROPRIATING $250 MILLION FROM THE COAL SEVERANCE TAX PERMANENT FUND TO THE DEPARTMENT OF COMMERCE TO BE USED FOR MATCHING FUNDS FOR GRANTS TO LOCAL GOVERNMENTS FOR ROAD, WATER, AND SEWER PROJECTS; PROVIDING FOR THE USE OF UP TO $50 MILLION OF THE APPROPRIATION EACH YEAR; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Appropriation of coal trust permanent fund. There is appropriated $250 million from the coal severance tax permanent fund to the department of commerce to be used as provided in [section 2]. The proceeds of the appropriation must be placed in a state special revenue account until projects are approved pursuant to [section 3].
NEW SECTION. Section 2. Special revenue account -- interest and income. There is an account in the state special revenue fund to be known as the 21st century account. The proceeds of the appropriation contained in [section 1] must be placed in the 21st century account. Until a grant is made pursuant to [section 3], the board of investments shall invest the 21st century account. The interest and earnings on the 21st century account must be deposited in the state general fund.
NEW SECTION. Section 3. Matching grants for road, water, and sewer projects. (1) The department shall use up to $50 million of the money in the 21st century account, provided for in [section 2], each year for matching funds for grants to local governments for road, water, and sewer projects. A local government shall provide matching funds in an amount equal to the amount of a grant. A grant for a specific project may not exceed $1 million. Matching funds may include treasure state endowment funds.
(2) A proposal for a grant must be submitted to the department as provided in 90-6-710. The department shall review proposals and prioritize the proposed projects based on the criteria contained in 90-6-710(2). The department shall award grants based on the department's review and priority rankings and make recommendations for grants to the legislature.
(3) The department may adopt rules to implement this section, including rules governing the form of a proposal, timelines for submitting proposals, and the process for reviewing and prioritizing proposals. The department shall base the rules on the existing rules for the treasure state endowment program to the extent feasible. The department may adopt rules providing criteria for matching funds. The rules must provide flexibility for local governments to meet matching fund requirements.
NEW SECTION. Section 4. Codification instruction. [Sections 2 and 3] are intended to be codified as an integral part of Title 90, chapter 6, part 7, and the provisions of Title 90, chapter 6, part 7, apply to [sections 2 and 3].
NEW SECTION. Section 5. Three-fourths vote required. Because [section 1] appropriates money from the coal severance tax trust fund, Article IX, section 5, of the Montana constitution requires a vote of three-fourths of the members of each house of the legislature for passage.
NEW SECTION. Section 6. Effective date. [This act] is effective July 1, 2001.
- END -
Latest Version of LC 458 (LC0458.01)
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