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Department of Administration State Accounting Division Local Government Services Bureau Legislative Update

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Title: Department of Administration State Accounting Division Local Government Services Bureau Legislative Update


1
Department of AdministrationState Accounting
DivisionLocal Government Services
BureauLegislative Update
  • June 2009
  • Presented by
  • Paul Christofferson,CPA, State Accounting
    Division Administrator
  • Kay Gray, Bureau Chief
  • Darla Erickson, Fiscal Accounting Manager
  • Accounting Fiscal Officers
  • Magda Nelson Kalispell
  • Linda Willett - Billings
  • Christy Hovious Glendive
  • Jamie Cain - Helena

2
Local Government Services Bureau
  • Technical resource for government accounting
  • Phone, email or on-site assistance with
    preparation of
  • Annual financial report
  • Year-end closing entries
  • Mill levy calculations
  • Budgets
  • Maintains and assists with BARS Chart of
    Accounts
  • Revenue/expenditure coding questions
  • Assignment of fund numbers
  • Records retention and disposal requests and
    questions please call Beth Ritano 841-2912
  • Administrator of Section 218 Social Security
    Agreements (Beth Ritano 841-2912)


3
Local Government Services Bureau Assistance
resources
  • Resources forms provided by LGSB
  • BARS Chart of Accounts updates
  • Accounting Policy and Procedures Manual
  • Annual Financial Report
  • Major Fund Calculator
  • Budget Document
  • Mill Levy Determination Form
  • Permissive Medical Mill Levy Form
  • Above items are available on the website
    http//doa.mt.gov/lgsb/

4
GASB Statement 54, SAS 112/115 and OPEB
Overview
  • Presented By
  • Paul Christofferson, CPA
  • State Accounting Division Administrator

5
GASB Statement No. 54Fund Balance Reporting and
Governmental Fund Type Definitions
  • Effective for financial statements for periods
    beginning after June 15, 2010 (State - FY 2011)

6
What is Fund Balance?
  • Most used information
  • (GASB research)
  • Goal Report governments available liquid
    resources
  • Problem Inconsistent reporting among governments

7
GASB Determined
  • Governmental funds - substantial difference in
    fund balance reported by governments
  • Governments - lack understanding of fund balance
    reporting requirements under GAAP
  • Users
  • variation in interpretation of fund balance
    information
  • confusion about nature of info GAAP reporting
    requirements

8
Improved Financial Reporting
  • Providing more understandable fund balance
    categories classifications
  • Now restricted component of fund balance
    Eliminated reserved component
  • Enhance consistency between information reported
    in government-wide statements information in
    governmental fund financial statements
  • Avoid confusion about relationship between
    reserved fund balance restricted net assets.

9
Fund Balance Reclassifications
  • Apply retroactively by restating fund balance
    for all prior periods presented

10
Fund Balances Classifications
  • Nonspendable Inventories, Endowment principal
  • Restricted specific purpose
  • external providers (grants) or legislation
  • Committed specific purpose
  • formal action of governments highest authority
  • Assigned amount not restricted/limited in funds
    other than general fund
  • Unassigned any purpose in general fund

11
Governmental Fund Clarification
  • Still Government Choice Concerning Funds (Which
    to Use or Not Use)
  • Continue to use any funds government believes
    needed to provide useful info
  • If government laws differ from standard (No
    Change)
  • Financial reporting under GAAP
  • Legal requirements may be included in
    supplemental schedules

12
More Fund Clarifications
  • General Fund Used for any purpose
  • Only fund with unassigned balance
  • Other funds unassigned balance if a deficit
    i.e. overspending for specific purposes (amounts
    were restricted, committed, or assigned)
  • Debt Service Fund required only if legally
    required or amounts accumulated for future
    payment of principal interest

13
More Fund Clarifications
  • Special Revenue Funds only revenue source
    restricted/limited to certain purpose
  • Capital Projects capital outlays in general

14
Encumbrances
  • Encumbrance was not limited (specific) purpose
  • Not reported as separate line on face of balance
    sheet
  • Encumbering does not further limit purposes for
    use
  • If encumbering process meets definition
    criteria for committed fund balance
  • Can report as committed (if assigned/unassigned
    amount)
  • Reported with other amounts committed to same
    purposes
  • Not as committed for encumbrances
  • If government has significant encumbrances
  • Disclose under standards for significant
    commitments

15
Additional Note Disclosures
  • Accounting policies order of spending when
    multiple resources available (restricted/limited/a
    ssigned/unassigned)
  • Processes that impose limitations on fund
    balances
  • Purpose for major special revenue funds

16
Default Policy For Order of Use
  • Restricted
  • Committed
  • Assigned
  • Unassigned

17
Economic Stabilization Amounts
  • Rainy-day/contingencies (emergencies)
  • GASB treats as special purpose
  • Restricted/limited fund balances in general fund
  • Identify circumstances (should not recur) in
    notes authority, provisions for additions, when
    spend

18
Formal Minimum Fund Balance
  • If this exists explain in footnotes (not a
    separate fund)

19
SAS 112/115
  • Originally issued as SAS 112 Communicating
    Internal Control Related Matters Identified in an
    Audit
  • Superseded by SAS 115 (Same Title)

20
Effect of the SAS 112/115 Definitions
  • Old Definitions
  • Material Weakness
  • Reportable Condition
  • Management Letter
  • Comment
  • New Definitions
  • Material Weakness
  • Significant Deficiency
  • Other Control
  • Deficiency

21
AICPA Issues SAS 115
  • Communicating Internal Control Related Matters
    Identified in an Audit
  • Conforms to Standards for Attestation Engagements
    (SSAAE)
  • Aligns definitions to PCAOB (Public Accounting
    Oversight Board) and International Standards
  • Supersedes SAS 112
  • Effective for periods ending on or after December
    15, 2009. Early implementation is permitted

22
SAS 115 DefinitionControl Deficiency
  • Deficiency when the design or operation of a
    control does not allow management or employees,
    in the normal course of performing their assigned
    functions, to prevent, or detect and correct
    misstatements on a timely basis
  • Material weakness
  • Significant deficiency

23
Types of Deficiencies
  • Deficiency in design
  • Control is missing
  • Not properly designed, so that if control
    operates as designed, the control objective would
    not be met
  • Deficiency in operation
  • Control does not operate as designed
  • Person performing the control does not possess
    the authority or competence to the perform the
    control effectively

24
Deficiencies in theDesign of Controls
  • Inadequate design over preparation of financial
    statements
  • Inadequate design over a significant amount or
    process
  • Inadequate documentation of internal control
    components

25
Deficiencies in theDesign of Controls (Continued)
  • Insufficient control consciousness
  • Absent or inadequate segregation of duties
  • Absent or inadequate controls over safeguarding
    of assets
  • Inadequate design of IT general and application
    controls
  • Employees or management who lack qualifications
    and training to fulfill assigned functions

26
Deficiencies in theDesign of Controls (Continued)
  • Inadequate design of monitoring controls to
    assess design and operating effectiveness of
    internal controls over time
  • Absence of internal process to report internal
    control deficiencies to management timely

27
Failures in the OperationOf Internal Control
  • Failure in operation of effectively designed
    controls
  • Failure on information and communication I/C
    component to provide complete and accurate output
  • Failure of controls designed to safeguard assets
    from loss, damage, or misappropriation

28
Failures in the OperationOf Internal Control
(Continued)
  • Failure to perform reconciliations
  • Undue bias or lack of objectivity by those
    responsible for accounting decisions
  • Misrepresentation by entity personnel to the
    auditor

29
Failures in the OperationOf Internal Control
(Continued)
  • Management override of controls
  • Failure of an application control caused by a
    deficiency in the design or operation of an IT
    general control
  • Observed deviation rate that exceeds the
    auditors expected deviation in testing the
    operating effectiveness of a control

30
SAS 115 DefinitionMaterial Weakness
  • Material Weakness deficiency, or
  • combination of deficiencies, in internal
  • control, such that there is a reasonable
  • possibility that a material misstatement of
  • the financial statements will not be
  • prevented or detected and corrected on a
  • timely basis

31
SAS 115 DefinitionSignificant Deficiency
  • Significant Deficiency deficiency, or
  • combination of deficiencies, in internal
  • control that, in the auditors professional
  • judgment, is less severe than a material
  • weakness, yet important enough to merit
  • attention by those charged with
  • governance

32
Severity of a Deficiency
  • Depends on
  • The magnitude of the potential misstatement
  • and
  • Whether there is a reasonable possibility that
    the controls will fail to prevent, or detect and
    correct a misstatement.
  • Does not depend on
  • Whether a misstatement actually occurred.

33
Factors that Affect the Magnitudeof a
Misstatement
  • Financial statement amounts or total of
    transactions exposed to the deficiency
  • Volume of activity in the account balance or
    class of transactions exposed to the deficiency

34
Risk Factors
  • Risk factors affect the possibility that a
    deficiency will result in a misstatement
  • Nature of accounts, transactions, disclosures,
    and assertions involved
  • Susceptibility of asset or liability to loss
    or fraud
  • Susceptibility, complexity, or extent of
    judgment
  • Interaction of control with other controls
  • Interaction among the deficiencies
  • Possible future consequences

35
Compensating Controls
  • Can limit the severity of a deficiency
  • Can mitigate the effects, but does not eliminate
    the deficiency
  • Auditor is not required to consider the effects
    of compensating controls when communicating
    significant deficiencies or material weaknesses,
    but if (s)he does
  • Evaluate the design of compensating controls
  • Determine whether the compensating controls
    are implemented

36
Questions?
37
GASB 43 45OPEB Plans
  • Stmt 43 ? trustee/administrator of plan
    (trust/agency fund) reporting requirements
  • Stmt 45 ? measurement of liability
    expense/expenditure for employer

38
Defined Benefit OPEB Defined Contribution Plans
  • Defined benefit Specify benefits to be provided
    at/after employment
  • Specified in or type/level of coverage
  • Defined contribution
  • Provide individual account for each member
  • Specify contribution to each members account
  • May be both defined benefit defined
    contribution (account as defined benefit)

39
OPEB Plans
  • Postemployment healthcare benefits, either
    separately or through a defined benefit pension
    plan (medical, dental, vision, etc.)
  • If provided through a defined pension plan
    considered OPEB not part of pension
  • Other forms of postemployment benefits, when
    provided separately from a defined benefit
    pension plan (life insurance, disability,
    long-term care, etc.)
  • Considered pensions if provided through a defined
    benefit pension plan

40
GASB Statement No. 43
  • Financial Reporting for Postemployment Benefit
    Plans Other Than Pension Plans
  • Applies to trust, agency fund,
  • fiduciary component unit,
  • separately reported plan of
  • public employee retirement system (PERS)
  • Effective for all governments after 12-15-07

41
GASB Statement 43 Applicability to GASB 45 Plans
  • Plan Definition
  • Plan Accounting - Not administered as Trust
  • Required State to report underlying activity
    in an agency fund for implied rate subsidy.

42
OPEB Plans (Not Administered as Trusts)
  • Cost-sharing multiple-employer plan (Agencies
    considered separate employers)
  • Pooling (cost-sharing) for all employers single
    actuarial valuation same contribution rate for
    all employers
  • Report fund as agency fund
  • Assets liabilities (No net assets)
  • Assets gt Liabilities Liabilities to
    participating employers

43
GASB Statement No. 45
  • Accounting and Financial Reporting by Employers
    for Postemployment Benefits Other Than Pensions
  • Effective Date After 12-15-07
  • Phase 3 Governments After 12-15-08

44
Purpose of Statement
  • Currently use pay-as-you go method for OPEB
    financial reporting
  • Change to recognize cost of OPEB in periods
    employees provide service
  • Recognize unfunded obligations
  • Consistent terms/requirements with Statement
    43

45
GASB Member Dissent
  • Dissent (Paul Reilly GASB member)
  • Requirement account for health insurance
    premium rate differentials (implied rate subsidy)
    as OPEB (even if employer provides no other OPEB
    benefits)
  • Note An implied rate subsidy exists whenever a
    plan participant does not pay his/her full cost.
    This exists for the State as a result of allowing
    retirees to participate at a rate that does not
    fund all of their costs (subsidized by current
    employees and the State).

46
Mr. Reillys Concerns
  • Reflects What-if situation (charging different
    premium for retirees)
  • Governments will carry net OPEB obligation that
    will never be liquidated
  • Negative impact on reliability usefulness of FS

47
State Dissent
  • State of Texas passed Legislation allowing
    governments to choose not to follow Statement 45
  • Montana memo to GASB requesting reconsideration
  • Issue Paper

48
Other Issues Discussed Include
  • Normally not a legal liability
  • Establishment of a trust to fund an implied rate
    subsidy may create a legal liability
  • Funding an implied rate subsidy does not make
    sense. The government would be setting aside
    moneys that would never be spent on a pay as you
    go basis.
  • Equity issues The retirees paid additional
    premiums to fund retiree costs while they were
    directly employed.

49
Employer Reporting Requirements for OPEB
(Overview)
  • All state local governments
  • Employer reporting for defined benefit and
    defined contribution plans (whether stand-alone
    reporting (separately issued) or included in FS
    of another governmental entity)
  • OPEB expense/expenditures OPEB
    liabilities/assets
  • Note disclosures Required supplementary
    information
  • See Statement 43 for trust/agency funds of
    employer reporting

50
Defined Contribution Plans Required Annual
Contribution
  • Governmental Funds expenditures (modified
    accrual basis)
  • Proprietary fiduciary funds expenses (accrual
    basis)
  • Government-wide statements accrual basis
  • OPEB liability/asset results from difference in
    required contribution payment
  • Do not offset OPEB liabilities/assets to
    different plans in financial statements

51
Defined Contribution PlansNote Disclosures
  • Name of plan, entity that administers plan
  • Description of plan authority
  • Contribution requirements of plan members,
    employer, other entities authority to change
    requirements
  • Contributions made by plan members employer

52
Measurement of Annual OPEB Cost Sole Agent
Employers
  • Employers annual required contribution (ARC)
  • If net OPEB obligation ? ARC 1 year interest on
    net OPEB obligation adjustment to ARC
  • Interest calculated at beginning of year using
    investment return rate for ARC for that year
  • Adjustment discounted present value of balance
    of the net OPEB obligation at beginning of year
    (new calculations each year level or level
    of payroll actuarial assumptions amortization
    period)
  • Deduct from ARC if beginning OPEB positive Add
    if beginning OPEB negative

53
Contributions to More Than One Fund or From More
Than One Fund to a Plan
  • Employer contributes to gt 1 fund ? recognition
    requirements applied separately to each fund
  • Determine portion of ARC for each fund when
    employer contributes to same plan from gt 1 fund

54
  • Reporting
  • Governmental Funds ? modified accrual basis
    OPEB expenditures amount contributed to plan or
    expected to be liquidated with expendable
    available financial resources
  • Proprietary fiduciary Funds ? OPEB expenses
    accrual basis recognize liability if not fully
    funded
  • Do not offset OPEB liability assets to
    different funds
  • Government-wide statements ? accrual basis
    recognize liability if not fully funded

55
Cost-sharing Multiple-employer Plans
  • Plan formal trust all following conditions
  • Irrevocable employer contributions
  • Plan assets are dedicated to providing benefits
  • Plan assets legally protected from employer/plan
    administrator creditors
  • Recognize OPEB expense/expenditures for
    contractually required contributions
  • Difference between contributions required
    payments liabilities/assets
  • Do not offset liabilities/assets to different
    plans

56
Financial Statement Notes
  • Plan description ? name, identification of
    PERS/entity that administers plan brief
    description of types of benefits authority to
    change plan stand-alone report or included in
    PERS/other entity
  • Funding policy ? authority required contribution
    of members employers how rate determined

57
Sole Agent Employer Disclosures
  • Current 2 preceding years? OPEB cost,
    contributed, contributed each year, end of year
    net OPEB obligation
  • Current ? components of OPEB, increase/decrease
    in net OPEB obligation
  • Most recent valuation date funded status of plan
    ? actuarial value of assets, actuarial accrued
    liability, total unfunded actuarial
    liability/excess, funded ratio, annual covered
    payroll, ratio of unfunded to payroll

58
Sole Agent Employer DisclosuresActuarial
Methods Assumptions
  • Estimates assumptions about events occurring
    (not exact)
  • Required schedule of funding progress uses
    multiyear trends
  • Calculations base upon cost sharing/benefits in
    effect at time of valuation
  • Actuarial calculations reflect long-term
    perspective
  • Actuarial cost method, method to determine
    actuarial value of assets, inflation rate
    investment return assumptions, postretirement
    benefit increases, projected salary increases (if
    effect benefits)
  • Amortization method period

59
Required Supplemental Information
  • Funding progress of plan actuarial
    asset/liability info
  • Trend factors (changes in plan population, plan
    benefits, actuarial methods)
  • Current period two preceding valuations
  • Do not restate prior periods

60
Eliminate Implied Rate Subsidy By
  • Employer account separately for healthcare
    benefits for active employees retirees
  • No distinction between implicit employer
    contributions (implicit rate subsidy) explicit
    employer contributions for OPEB
  • Retirees separate group from active employees
    (retiree group is experience rated) No OPEB

61
Implied Rate SubsidyExperience-Rated Healthcare
Plan(Both Active Employees Retirees)
  • Blended premium rates for all plan members
  • Contributions ? employer, active employees,
    retires
  • Employers share of retiree cost difference
    between claims cost or age-adjusted premiums
    approximating retirees claims costs amounts
    required to be contributed by retirees

62
Montana CAFR Disclosure
  • Transmittal Letter
  • Other Post Employment Benefits - Implied Rate
    Subsidy Liability
  • The State of Montana reported the implied rate
    subsidy liability, required under the
    Governmental Accounting Standards Board (GASB)
    Statement No. 45, in this financial report and
    the related financial statements. Although the
    State reported this liability, and related
    expenses and expenditures, the State does not
    agree that this represents a legal liability and
    further believes that the presentation of this
    activity in the financial statements will
    eventually be misleading to the users of the
    statements. In this, the first year of
    implementation, the unfunded liability is 40.5
    million for the state system, and 17.3 million
    for the Montana University System, plans. Because
    this is spread across all of the funds within the
    State and MUS reporting entities, this did not
    yet have a material impact.

63
Montana CAFR Disclosure Continued
  • Transmittal Letter Continued
  • The State plans to continue funding the employee
    health insurance plan on a pay as you go basis,
    and does not plan to fund this liability. Because
    the State will not be funding this liability, it
    will increase exponentially, and within a few
    years, the financial statements will reflect the
    impact of a very large implied rate subsidy
    liability that does not have legal substance. The
    State submitted a request to have GASB reconsider
    the requirement to report the implied rate
    subsidy. To date, GASB has refused to revisit
    this issue. A copy of the letter to GASB
    providing the State concerns with the implied
    rate subsidy reporting, required under GASB
    Statement No. 45, is available upon request.

64
Montana CAFR OPEB Footnote Disclosure
  • Both of these plans allow retirees to
    participate, as a group, at a rate that does not
    cover all of the related costs. This results in
    the reporting of an implied rate subsidy in the
    related financial statements and footnotes. While
    this liability is disclosed for financial
    statement purposes, it does not represent a legal
    liability of the State or any of its component
    units.
  • Both plans are reported as agency funds. There
    are no assets or liabilities as only
    contributions collected and distributions made
    are reflected in these funds. See the funding
    policy that follows.

65
Copy of Montanas Footnote
  • Can provide electronically.

66
Questions
67
HB 645 American Recovery and Reinvestment Act
(ARRA)
  • Montana website recovery.mt.gov
  • BARS Chart of Account fund and account numbers
    assigned
  • HB 645 Fund 2990
  • Open funds for stimulus funds Fund 2991 2999
  • Capital projects funds for stimulus projects
    Funds 4990 4999
  • Revenue account number for stimulus 331990 HB
    645 Recovery Act (P)
  • Open revenue accounts for stimulus 331991
    331999 to be assigned as needed. These will be
    program revenues
  • If using existing BARS numbers, you need to keep
    ARRA funds separate for tracking purposes
    (example TSEP grants subsidized with ARRA) Could
    use Fund 2991 TSEP w/ARRA )
  • NOTE There will be additional reporting
  • requirements

68
HB 645 American Recovery and Reinvestment Act
(ARRA) (cont.)
  • Distribution to local governments, tribal
    governments and schools will total 45 million
  • 10 million to counties
  • 10 million to cities and towns
  • 5 million to tribal governments
  • Each county will receive 100,000 plus
    proportional share (less 1.13 for admin
    purposes)
  • Each city or town will receive 5,000 plus
    proportional share (less 1.13 for admin
    purposes)
  • These funds may be used for projects approved in
    HB645 including
  • Buildings, sewers, storm sewers, sewage plants,
    bridges, docks, roads, streets, gutters,
    sidewalks, curbs, parks and recreation
    facilities, street lighting, etc.

69
HB 645 American Recovery and Reinvestment Act
(ARRA) (cont.)
  • Additional grants and loans available
  • Department of Commerce received additional funds
    for projects including CDBG, Historic
    Preservation Grants, TSEP. TSEP funded all
    projects applied for Stimulus funds added over
    20 million to the funding of projects,
  • Renewable Resource Grant and loan program
    stimulus funds added 3,500,000
  • Reclamation and Development Grants stimulus
    funds added 1 million in funding
  • Montana Board of Crime Control stimulus funds
    will add additional funds for Justice Assistance
    Grant (JAG), Victims of Crime Act (VOCA) and
    Violence Against Women Act (VAWA)
  • Department of Environmental Quality received over
    77 million for energy programs, water and
    environmental cleanup projects

70
HB 645 American Recovery and Reinvestment Act
(ARRA) (cont.)
  • REPORTING REQUIREMENTS
  • Q Do reporting requirements of the Recovery Act
    apply to existing, non-Recovery funded activities
    or contracts when a Federal agency supplements
    those activities with Recovery funds? A The
    Recovery Act reporting requirements apply to
    Recovery funds only and do not extend to
    existing, non-Recovery funded activities or
    contracts. In instances where a Federal or State
    agency chooses to supplement existing activities
    or contracts with Recovery funds, only the
    Recovery funds are reported.
  • from OMB website http//www.whitehouse.gov/omb/re
    covery
  • OMB Circular A-133 ARRA funds will impose new
    transparency and accountability requirements on
    ARRA recipients.
  • The single audit process will be a key factor in
    achievement of the following accountability
    objectives
  • The recipients and uses of all funds are
    transparent to the public, and the public
    benefits of these funds are reported clearly,
    accurately and in a timely manner.
  • Funds are used for authorized purposes and
    instances of fraud, waste, error and abuse are
    mitigated
  • The effects of ARRA on audits will increase
    significantly

71
HB 245 - County Compensated Absences Liability
Fund
  • Fund 3200 County Compensated Absences Fund
  • Cash Account 102130 Compensated Absences Cash
  • Reserve Account 250930 Reserve for Compensated
    Absences Fund
  • Fund can include
  • The sick leave an employee is entitled to upon
    termination (1/4)
  • The vacation leave an employee is entitled to
    upon termination
  • Fund can receive money from any source, including
    funds that were allocated but not expended or
    encumbered by the end of the fiscal year
  • Maximum in the fund may not exceed the amount
    necessary to pay accumulated sick and vacation
    leave of employees on June 30 of the prior fiscal
    year
  • The bill did not include comp/holiday time in
    what can be included in this fund
  • Effective immediately

72
HB 658 - Reappraisal mitigation
  • Residential property values increased
    approximately 55 from 2002 to 2008.
  • Reappraisal happens every six years
  • Values are based on economic factors
  • Reappraisal assessment notices will be mailed to
    taxpayers
  • Phase in new property values over 6 years
  • Adjusts tax rates and exemptions
  • Local Governments will see no
  • fiscal impact from reappraisal

73
HB 623 - Real property sale or donation for low
income housing
  • 7-8-2219 and 7-8-4201 are amended to read
  • Exchange or donation of county land if after one
    year county-owned land has not sold the
    commissioners may make trades or exchanges of
    real estate owned by the County for any land of
    equal value.
  • Can include tax deed property
  • The commissioners may donate the land or sell at
    a reduced price to a corporation for the purpose
    of permanently providing low-income housing.
  • Low income housing can be multi- or single-family
    developments
  • A city or town, with a 2/3 council vote, may
    donate land or sell at a reduced price to a
    corporation for the purpose of permanently
    providing low-income housing.
  • The transfer of property may include a
    reversionary clause.
  • A provision in a transfer deed under which the
    transferred property reverts to the grantor if
    any deed condition is violated.
  • Effective July 1, 2009

74
House Bill 608 Local Government may attach lien
for debris removal
  • Section 27-18-101 MCA amended to read
  • A local government for the purpose of ensuring
    debris removal may execute a lien against a
    property if it is determined that the property is
    worth less than the cost of debris removal
  • If the local government believes the owner of the
    property may leave the state, taking money or
    other effects that might be used for the purpose
    of removing debris or defrauding the local
    government or is about to dispose of the property
  • A plaintiffs affidavit must be made by the local
    government or by someone on the plaintiffs
    behalf
  • Effective immediately

75
SB 208 Health insurance coverage for employees
of hospital, clinic
  • 2-18-702 MCA is amended to read
  • A county, city or town may consider the employees
    of
  • Non-profit hospitals, health centers or nursing
    homes
  • As employees of the county city or town solely
    for the purpose of participating in group
    hospitalization insurance plans
  • The plans can include
  • Group hospitalization, medical, health,
    long-term disability, accident and group life
    plans
  • The county, city or town may require an employee
    of the health center to pay the actual cost of
    coverage.
  • Effective Date July 1, 2009

76
SB57
AN ACT REVISING THE LAWS RELATING TO SPECIAL
DISTRICTS ESTABLISHING UNIFORM STANDARDS FOR THE
CREATION, ADMINISTRATION, AND OPERATION OF
SPECIAL DISTRICTS BY GOVERNING BODIES AND ELECTED
OR APPOINTED BOARDS ELIMINATING SPECIFIC
PROVISIONS
AMENDING 17 EXISTING SECTIONS OF CODE REPEALING
238 EXISTING SECTIONS OF CODE
EFFECTIVE DATE JULY 1, 2009
77
SB57, (cont.)
DISTRICTS AFFECTED CEMETERY DISTRICTS, COUNTY
MUSEUMS, FACILITIES FOR THE ARTS, MUSEUM
DISTRICTS, COUNTY PARK DISTRICTS, COUNTY FAIR
COMMISSIONS, COUNTY FAIR DISTRICTS, MULTICOUNTY
FAIR DISTRICTS, JOINT SOLID WASTE MANAGEMENT
DISTRICTS, LOCAL IMPROVEMENT DISTRICTS, MOSQUITO
CONTROL DISTRICTS, MULTIJURISDICTIONAL SERVICE
DISTRICTS, PARK MAINTENANCE DISTRICTS, ROAD
IMPROVEMENT DISTRICTS, RODENT CONTROL DISTRICTS,
SOLID WASTE MANAGEMENT DISTRICTS, TELEVISION
DISTRICTS, DISTRICTS CREATED FOR ANY PUBLIC OR
GOVERNMENTAL PURPOSE NOT SPECIFICALLY PROHIBITED
BY LAW, DISTRICTS OR OTHER ENTITY FORMED TO
PERFORM A SINGLE OR LIMITED NUMBER OF FUNCTIONS
BY INTERLOCAL AGREEMENT.
78
SB57, (cont.)
DISTRICTS THAT ARE EXEMPT BUSINESS IMPROVEMENT
DISTRICTS, CATTLE PROTECTIVE DISTRICTS,
CONSERVANCY DISTRICTS, CONSERVATION DISTRICTS,
WATER AND SEWER DISTRICTS, PLANNING AND ZONING
DISTRICTS, DRAINAGE DISTRICTS, GRAZING DISTRICTS,
HOSPITAL DISTRICTS, IRRIGATION DISTRICTS, LIBRARY
DISTRICTS, LIVESTOCK PROTECTIVE COMMITTEES,
PARKING DISTRICTS, RESORT AREA DISTRICTS, RURAL
IMPROVEMENT DISTRICTS, SPECIAL IMPROVEMENT
DISTRICTS, LIGHTING DISTRICTS, RURAL FIRE
DISTRICTS, STREET MAINTENANCE DISTRICTS, TAX
INCREMENT FINANCING DISTRICTS, URBAN
TRANSPORTATION DISTRICTS, WATER CONSERVATION AND
FLOOD CONTROL PROJECTS, AND WEED MANAGEMENT
DISTRICTS
79
SB57, (cont.)
SAVINGS CLAUSE (GRANDFATHER CLAUSE)
  • NEW LAW DOES NOT APPLY TO AFFECTED DISTRICTS IN
    EXISTENCE PRIOR TO JULY 1, 2009 UNLESS A
    DISTRICT
  • DISOLVES - SUBJECT TO SECTION 20
  • ALTERS ITS BOUNDARIES WITH NO CHANGE IN AMOUNT
    OR
    METHOD OF ASSESSMENT - SUBJECT TO SECTION 10
  • CHANGES ITS AMOUNT OR METHOD OF ASSESSMENT -
    SUBJECT TO SECTIONS 1 THROUGH 20
  • ALTERS ITS BOUNDARIES WHICH RESULTS IN A CHANGE
    TO ITS AMOUNT OR METHOD OF ASSESSMENT - SUBJECT
    TO SECTIONS 1 THROUGH 20

80
SB57, (cont.)
44 SECTIONS OF LAW TO ALLOW FOR THE CREATION AND
GOVERNANCE OF AFFECTED SPECIAL DISTRICTS
SECTIONS AND SECTION HIGHLIGHTS INCLUDE
  • SECTION 3
  • AUTHORIZATION TO CREATE SPECIAL DISTRICTS
  • GOVERNING BODY
  • MAY PRESCRIBE THE FORM OF THE PETITIONS TO
    CREATE
  • DESIGNATES WHAT MUST BE ON THE PETITION
  • SETS GUIDELINES FOR PROCEDURES UPON RECEIPT OF
    PETITION
  • SECTION 4
  • DETERMINING SPECIAL DISTRICT BOUNDARIES

81
SB57, (cont.)
  • SECTION 5
  • PUBLIC HEARING(S)
  • DECISION TO CREATE BASED UPON DECISION OF
    GOVERNING BODY OR UPON VALID PETITION
  • OUTLINES REQUIRED INFORMATION TO BE DISCLOSED
    IN RESOLUTION
  • PUBLICATION REQUIREMENTS
  • SECTION 6
  • RIGHT TO PROTEST PROCEDURES AND HEARING
  • 30 DAYS FROM DATE OF 1ST PUBLICATION OF NOTICE
    OF PASSAGE. MUST BE IN WRITING.
  • PROTEST MADE BY "OWNERS" OF PROPERTY OF MORE
    THAN 50 OF THE COST OF PROPOSED PROGRAM OR
    IMPROVEMENTS NO ACTION BY GOVERNING BODY FOR AT
    LEAST 12 MONTHS

82
SB57, (cont.)
  • SECTION 6
  • RIGHT TO PROTEST PROCEDURES AND HEARING (cont.)
  • PROPERTY OWNED BY A GOVERNMENTAL ENTITY MUST BE
    CONSIDERED THE SAME AS ANY OTHER PROPERTY IN
    DISTRICT
  • DECISION OF GOVERNING BODY IS FINAL
  • SECTION 7
  • REFERENDUM--ELECTION
  • GOVERNING BODY MAY ORDER A REFERENDUM
  • WHAT THE REFERENDUM MUST STATE
  • MUST BE HELD IN CONJUCTION WITH REGULAR OR
    PRIMARY ELECTION OR BY MAIL BALLOT ELECTION
  • DESCRIBES WHO IS ENTITLED TO VOTE ON REFERENDUM

83
SB57, (cont.)
  • SECTION 8
  • CERTIFICATE OF ESTABLISHMENT FROM SECRETARY OF
    STATE
  • WITHIN 10 DAYS UPON RECEIPT OF APPROVED
    REFERENDUM
  • SECTION 9
  • ORDER CREATING DISTRICT
  • GOVERNING BODY SHALL ISSUE ORDER, PASS AN
    ORDINANCE OR RESOLUTION WITHIN 30 DAYS OF END OF
    PROTEST PERIOD OR APPROVAL OF REFERENDUM
  • SECTION 10
  • ADDITIONAL REPORTING PROCEDURES
  • REQUIRED TO PROVIDE STATED INFORMATION TO
    DEPARTMENT OF REVENUE WITHIN 60 DAYS AFTER
    CREATION OR BY JANUARY 1 OF EFFECTIVE TAX YEAR

84
SB57, (cont.)
  • SECTION 11
  • LIMITATION ON LAW SUITS
  • SECTION 12
  • GOVERNANCE - POWERS AND DUTIES
  • SPECIFIC POWERS AND DUTIES GRANTED TO THE BOARD
    AND THOSE SPECIFICALLY WITHHELD MUST BE STATED
  • THE GOVERNING BODY HAS ULTIMATE AUTHORITY TO
    DECIDE
  • DECSCRIBES WHAT POWERS THE ENTITY CHOSEN TO
    ADMINISTER MAY BE GRANTED BY THE GOVERNING BODY
  • CHANGES PROVISIONS TO ISSUE GENERAL OBLIGATION
    BONDS OR REVENUE BONDS PURSUANT TO MUNICIPAL
    AND/OR COUNTY LAWS
  • SECTION 13
  • MULTIPLE JURISDICTIONS

85
SB57, (cont.)
  • SECTION 14
  • ALTERATION OF SPECIAL DISTRICTS
  • GOVERNING BODY MAY CHANGE BOUNDARIES
  • BOUNDARIES MAY BE ALTERED BY PETITION
  • SECTION 15
  • FINANCING FOR SPECIAL DISTRICT
  • ASSESSMENT OR FEES
  • DESCRIBES METHOD(S) OF APPLYING ASSESSMENTS OR
    FEES
  • SECTION 16
  • NOTICE OF RESOLUTION FOR ASSESSMENT
  • 2ND WEEK IN AUGUST OR 45 DAYS AFTER RECEIPT OF
    TAXABLE VALUATIONS

86
SB57, (cont.)
  • SECTION 17
  • COLLECTION OF SPECIAL DISTRICT ASSESSMENTS
  • SECTION 18
  • PAYMENT OF ASSESSMENTS UNDER PROTEST-ACTION TO
    RECOVER
  • CLARIFIES OWNER OF PROPERTY CREATED AS A
    CONDOMUNIUM
  • SECTION 19
  • ASSESSMENTS AS LIENS
  • SECTION 20
  • DISSOLUTION OF SPECIAL DISTRICT
  • 40 OF REGISTERED VOTERS OR 40 OF THE OWNERS OF
    REAL PROPERTY

87
SB57, (cont.)
  • SECTION 21
  • MULTIJURISDICTIONAL PUBLIC LIBRARY DISTRICTS
  • MUST BE ADMINISTERED ACCORDING TO PROVISION OF
    22-1-305 AND 22-1-317, MCA'S
  • SECTION 22-AMENDS 7-1-203, MCA
  • BOARDS
  • ADMINISTRATIVE BOARD ESTABLISHED BY BOARD OF
    COUNTY COMMISSIONERS OR MUNICIPALITY
  • MAY NOT PLEDGE THE CREDIT OF THE COUNTY OR
    MUNICIPALITY, OR IMPOSE TAX UNLESS AUTHORIZED BY
    LAW
  • BOARD MEMBERS MAY BE REMOVED BY COMMISSIONERS FOR
    CAUSE

88
SB57, (cont.)
  • SECTION 22-AMENDS 7-1-203, MCA, (cont.)
  • BOARDS
  • ADDED LANGUAGE
  • IF A MUNICIPALITY CREATES A SPECIAL DISTRICT IN
    ACCORDANCE WITH SECTIONS 1 THROUGH 20, THE
    GOVERNING BODY OF THE MUNICIPALITY SHALL COMPLY
    WITH THIS SECTION IF THE GOVERNING BODY CHOOSES
    TO HAVE THE SPECIAL DISTRICT GOVERNED BY A
    SEPARATE BOARD."
  • SECTION 23-AMENDS 7-1-202, MCA
  • CREATION OF NEW BOARDS
  • ADDED ROAD DISTRICTS

89
SB57, (cont.)
  • SECTION 24-AMENDS 7-6-2527, MCA
  • TAXATION PUBLIC AND GOVERNMENTAL PURPOSES
  • SECTION 25-AMENDS 7-7-2101, MCA
  • LIMITATIONS ON AMOUNT OF COUNTY INDEBTEDNESS
  • SECTION 26-AMENDS 7-11-1102, MCA
  • SERVICES THAT MAY BE PROVIDED
  • SECTION 27-AMENDS 7-11-1112, MCA
  • FINANCING
  • MULTIJURSIDICTIONAL SERVICE DISTRICTS

90
SB57, (cont.)
  • SECTION 28-AMENDS 7-13-2511, MCA
  • PROHIBITION ON OPERATION OF CABLE TV SYSTEMS
  • SECTION 29-AMENDS 7-13-2512, MCA
  • AUTHORIZATION FOR FM TRANSLATOR
  • SECTION 30-AMENDS 7-14-2138, MCA
  • PROSECUTION BY COUNTY ATTORNEY
  • SECTION 31-AMENDS 7-16-2105, MCA
  • ACQUISITION OF LAND BY COUNTY FOR PUBLIC
    RECREATIONAL OR CULTURAL PURPOSES

91
SB57, (cont.)
  • SECTION 32-AMENDS 7-16-2109, MCA
  • SINGLE ASSESSMENT FOR COUNTY FAIR ACTIVITIES,
    COUNTY PARKS, AND CERTAIN CULTURAL SOCIAL, AND
    RECREATIONAL FACITLITIES RESTRICTION
  • SECTION 33-AMENDS 7-21-3411, MCA
  • RESTRICTION ON USE OF APPROPRIATION OR TAX MONEY
  • NO HORSERACING
  • SECTION 34-AMENDS 7-22-2512, MCA
  • FINANCING OF VERTEBRATE PEST MANAGEMENT PROGRAM
  • SECTION 35-AMENDS 15-6-201, MCA
  • GOVERNMENTAL, CHARITABLE EDUCATIONAL
    CATEGORIES-EXEMPT PROPERTY

92
SB57, (cont.)
  • SECTION 36-AMENDS 20-15-403, MCA
  • APPLICATIONS OF OTHER SCHOOL DISTRICT PROVISIONS
  • SECTION 37-AMENDS 53-30-503, MCA
  • DEFINITIIONS
  • SECTION 38-AMENDS 70-30-102, MCA
  • PUBLIC USES ENUMERATED
  • SECTION 39
  • REPEALER SECTION
  • REPEALS 238 EXISTING SECTIONS OF CODE

93
SB57, (cont.)
  • SECTIONS 40 41
  • CODIFICATION INSTRUCTIONS
  • SECTIONS 42 43
  • SAVINGS CLAUSE
  • TRANSITION
  • SECTION 44
  • EFFECTIVE DATE

94
SB58
AN ACT GENERALLY REVISING THE LAWS RELATING TO
LOCAL GOVERNMENTS ALLOWING CONTRACTING WITH
PRIVATE INSTITUTIONS FOR THE SALE OF BONDS
RELATED TO RURAL IMPROVEMENT DISTRICTS AND
SPECIAL IMPROVEMENT DISTRICTS
AMENDS SECTIONS 7-12-2172 AND 7-12-4204,
MCA EFFECTIVE DATE JULY 1, 2009
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 12 -
IMPROVEMENT DISTRICTS PART 21 - RURAL
IMPROVEMENT DISTRICTS PART 42 -
SPECIAL IMPROVEMENT DISTRICTS
95
SB58, (cont.)
  • 7-12-2172 7-12-4204, MCAS - PROCEDURE TO
    ISSUE BONDS WARRANTS (COUNTY AND CITY/TOWN)
  • AMENDED TO ALLOW
  • BONDS UP TO 1 MILLION MAY BE SOLD THROUGH
    PRIVATE NEGOTIATED SALE TO A FINANCIAL
    INSTITUTION REFERRED TO IN 32-1-102 THAT IS
    AUTHORIZED TO CONDUCT BUSINESS IN THE STATE OF
    MONTANA

96
SB74
AN ACT REVISING THE DUTIES OF A GOVERNMENTAL FIRE
AGENCY REVISING REQUIREMENTS FOR PROVISION AND
MANAGEMENT OF EMERGENCY SERVICES BY A FIRE CHIEF
REVISING THE ENTITY UNDER WHICH A FIRE CHIEF
SERVES.
AMENDS SECTION 7-33-2001, MCA
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 33 -
FIRE PROTECTION PART 20 - FIRE CHIEF
97
SB74, (cont.)
7-33-2001, MCA - FIRE CHIEF -POWERS AND
DUTIES AMENDED TO READ THE FIRE CHIEF SERVES
UNDER THE TRUSTEES, IF TRUSTEES HAVE BEEN
DESIGNATED TO MANAGE THE FIRE AGENCY UNDER THE
PROVISIONS OF THIS CHAPTER. IF THE GOVERNING BODY
RETAINS MANAGEMENT, THEN THE FIRE CHIEF SERVES
UNDER THE DIRECTION OF THE GOVERNING BODY.
PRIOR TO AMENDMENT THE FIRE CHIEF WAS DIRECTED
TO SERVE UNTER THE GOVERNING BODY THAT CREATED
THE FIRE AGENCY. OTHER MINOR CHANGES IN LANGUAGE
98
SB78
AN ACT CLARIFYING THE MILL LEVY LIMIT FOR SOIL
CONSERVATION DISTRICTS
AMENDS SECTION 76-15-515, MCA EFFECTIVE DATE
IMMEDIATE
TITLE 76 - LAND RESOURCE AND USE CHAPTER 15
- CONSERVATION DISTRICTS PART 5 -
FINANCIAL ASPECTS OF
CONSERVATION DISTRICTS LOAN
PROGRAM
99
SB78, (cont.)
76-15-515, MCA IS AMENDED TO REGULAR
ASSESSMENT AMENDED TO READ EXCEPT AS PROVIDED
IN 76-15-531 AND 76-15-532, THE REGULAR
ASSESSMENT IS SUBJECT TO 15-10-420. THE VALUATION
MUST BE DETERMINED ACCORDING TO THE LAST
ASSESSMENT ROLL."
  • PRIOR TO AMENDMENT
  • THE REGULAR ASSESSMENT IN ANY ONE 1 YEAR COULD
    NOT EXCEED 1 1/2 MILLS ON THE DOLLAR OF TOTAL
    TAXABLE VALUATION OF REAL PROPERTY WITHIN THE
    DISTRICT

100
SB98
AN ACT ADDING CERTAIN FOREST OR GRASSLAND
HAZARDOUS FUELS REDUCTION PROJECTS AS AN ALLOWED
PURPOSE FOR IMPOSING A PROPERTY TAX LEVY
AMENDS SECTION 7-6-2527, MCA EFFECTIVE DATE
IMMEDIATE
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 6 -
FINANCIAL ADMINISTRATION AND
TAXATION PART 25 - COUNTY TAXATION
101
SB98, (cont.)
7-6-2527, MCA TAXATION--PUBLIC AND GOVERNMENTAL
PURPOSES READS A COUNTY MAY IMPOSE A
PROPERTY TAX LEVY FOR ANY PUBLIC OR GOVERNMENTAL
PURPOSE NOT SPECIFICALLY PROHIBITED BY LAW.
PUBLIC AND GOVERNMENTAL PURPOSES INCLUDE BUT ARE
NOT LIMITED TO ADDS SUBSECTION (26) FOREST
OR GRASSLAND HAZARDOUS FUELS REDUCTION PROJECTS
IN AREAS NEAR HOMES AND COMMUNITIES WHERE
WILDLAND FIRE IS A THREAT."
102
SB255
AN ACT REVISING RESPONSIBILITY FOR DEBT LIABILITY
WHEN RURAL FIRE DISTRICT PROPERTY IS ANNEXED BY A
MUNICIPALITY
AMENDS SECTION 7-33-2129, MCA
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 33 -
FIRE PROTECTION PART 21 - RURAL FIRE
DISTRICTS
103
SB255, (cont.)
  • 7-33-2129, MCA ANNEXATION OF RURAL FIRE
    DISTRICT PROPERTY BY MUNICIPALITY--RESPONSIBI
    LITY FOR DEBT
  • READS
  • IF A MUNICIPALITY ANNEXES PROPERTY FROM A RURAL
    FIRE DISTRICT, THE ANNEXED PROPERTY IS LIABLE FOR
    ANY BONDED DEBT OF THE RURAL FIRE DISTRICT OR FOR
    SECURED DEBT INCURRED BY THE DISTRICT FOR THE
    PURCHASE OF REAL OR PERSONAL PROPERTY EXISTING AS
    OF THE DATE THE ANNEXATION PROCEEDING WAS
    COMMENCED TO THE SAME EXTENT AS IT WOULD HAVE
    BEEN LIABLE IF NOT WITHDRAWN.
  • ADDS, REMOVES REPLACES
  • REMOVES INDEBTEDNESS AND REPLACES WITH DEBT
  • ADDS OR FOR SECURED DEBT INCURRED BY THE
    DISTRICT FOR THE PURCHASE OF REAL OR PERSONAL
    PROPERTY
  • REMOVES DATE OF ANNEXATION AND REPLACES WITH
    DATE THE ANNEXATION PROCEEDING WAS COMMENCED
  • OTHER MINOR CHANGES IN LANGUAGE

104
SB262
AN ACT ALLOWING COUNTY WATER AND SEWER DISTRICTS
TO ASSESS THE COST OF SERVICES AND IMPROVEMENTS
BY DWELLING UNIT
AMENDS SECTION 7-13-2303, MCA
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 13 -
UTILITY SERVICES PART 23 - COUNTY
WATER AND/OR SEWER DISTRICTS
105
SB262, (cont.)
  • 7-13-2303, MCA METHOD OF ASSESSMENT
  • READS
  • (1) WHEN THE AMOUNT OF MONEY REQUIRED FOR ANY
    PURPOSE ENUMERATED IN 7-13-2302 HAS BEEN
    DETERMINED, THE COUNTY COMMISSIONERS OR BOARD OF
    DIRECTORS MAY USE ONE OF THE FOLLOWING METHODS OF
    ASSESSMENT .
  • ADDS
  • ADDS THE COUNTY COMMISSIONERS OR BOARD OF
    DIRECTORS MAY USE ONE OF THE FOLLOWING METHODS OF
    ASSESSMENT
  • ADDS SUBSECTION (1)(C) EACH DWELLING UNIT MAY BE
    ASSESSED A FLAT FEE. FOR PURPOSES OF THIS
    SUBSECTION (1)(C), "DWELLING UNIT" HAS THE
    MEANING PROVIDED FOR IN 70-24-103.
  • 70-24-103 (4) "DWELLING UNIT" MEANS A STRUCTURE
    OR THE PART OF A STRUCTURE THAT IS USED AS A
    HOME, RESIDENCE, OR SLEEPING PLACE BY A PERSON
    WHO MAINTAINS A HOUSEHOLD OR BY TWO OR MORE
    PERSONS WHO MAINTAIN A COMMON HOUSEHOLD. DWELLING
    UNIT, IN THE CASE OF A PERSON WHO RENTS SPACE IN
    A MOBILE HOME PARK AND RENTS THE MOBILE HOME,
    MEANS THE MOBILE HOME ITSELF.

106
SB390
AN ACT AUTHORIZING CITIES AND TOWNS TO ENTER INTO
LOAN AGREEMENTS WITH THE STATE OF MONTANA TO FUND
IMPROVEMENTS WITHIN STREET MAINTENANCE DISTRICTS
AND USE THE DISTRICT ASSESSMENTS TO SERVICE THE
LOAN.
AMENDS SECTION 7-12-4429, MCA
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 12 -
IMPROVEMENT DISTRICTS PART 44 -
SPECIAL PROVISIONS FOR STREET MAINTENANCE
DISTRICTS
107
SB390, (cont.)
  • 7-12-4429, MCA FINANCIAL ASSISTANCE FROM THE
    UNITED STATES AND STATE OF MONTANA
  • ADDS
  • ADDS AND STATE OF MONTANA
  • AUTHORIZES CITIES AND TOWNS TO ENTER INTO
    SUITABLE AGREEMENTS WITH THE STATE OF MONTANA FOR
    LOANS AND FINANCIAL ASSISTANCE TO DO WORK AND
    IMPROVEMENTS CONTEMPLATED BY 7-12-4405
  • 7-12-4405, MCA - IMPROVEMENTS WITHIN MAINTENANCE
    DISTRICTS--ORDINANCE REQUIRED
  • DEBT NOT TO EXCEED 20 YEARS

108
SB491
AN ACT REVISING THE METHOD FOR DETERMINING THE
PORTION OF THE PROPERTY TAX LEVY BY POLITICAL
SUBDIVISIONS FOR GROUP BENEFIT INSURANCE
CONTRIBUTIONS THAT ARE NOT SUBJECT TO THE
PROPERTY TAX LIMITATION LAW
AMENDS SECTIONS 2-9-212, 2-18-703 AND 15-10-420,
MCA EFFECTIVE DATE JULY 1, 2009
TITLE 2 - GOVERNMENT STRUCTURE AND
ADMINISTRATION CHAPTER 9 - LIABILITY
EXPOSURE AND INSURANCE COVERAGE PART 2 -
COMPREHENSIVE STATE INSURANCE PLAN
109
SB491, (cont.)
AMENDS SECTIONS 2-9-212, 2-18-703 AND 15-10-420,
MCA
TITLE 2 - GOVERNMENT STRUCTURE AND
ADMINISTRATION CHAPTER 18 - STATE
EMPLOYEE
CLASSIFICATION, COMPENSATION, AND
BENEFITS PART 7 - GROUP INSURANCE
GENERALLY
TITLE 15 - TAXATION CHAPTER 10 - PROPERTY
TAX LEVIES PART 4 - LIMITATION ON
PROPERTY TAXES
110
SB491, (cont.)
CHANGES AND DEFINES THE METHOD FOR CALCULATING
PERMISSIVE MILLS FOR GROUP BENEFITS, NOT SUBJUST
TO 15-10-420, MCA
  • ADDS, REMOVES REPLACES
  • ADDS LANGUAGE TO 2-9-212(2)(a)(i) THAT EXCLUDES
    CONTRIBUTIONS FOR GROUP BENEFITS PAID WHOLLY OR
    IN PART FROM USER CHARGES GENERATED BY
    PROPRIETARY FUNDS FROM THE PERMISSIVE MILL
    CALCULATION.
  • REMOVES ALL REFERENCE TO PREMIUMS AND REPLACES
    WITH CONTRIBUTIONS
  • REMOVES FROM 2-9-212, MCA, LANGUAGE REFERRING TO
    "INCREASE" FOR "PREMIUMS" AND REPLACES WITH
    "AMOUNT IN EXCESS" OF THE BASE "CONTRIBUTION" AS
    DETERMINED IN 2-18-703 (4)(C)

111
SB491, (cont.)
  • ADDS, REMOVES REPLACES, (cont.)
  • ADDS LANGUAGE TO 2-9-212(2)(a)(i) THAT EXCLUDES
    CONTRIBUTIONS FOR GROUP BENEFITS PAID WHOLLY OR
    IN PART FROM USER CHARGES GENERATED BY
    PROPRIETARY FUNDS FROM THE PERMISSIVE MILL
    CALCULATION.
  • ADDS LANGUAGE TO 2-9-212(3)(a) THAT DEFINES THE
    TERM "GROUP BENEFITS
  • ADDS LANGUAGE TO 2-9-212(3)(b) THAT DESCRIBES
    WHAT IS NOT INCLUDED IN THE TERM "GROUP BENEFITS
  • REMOVES FROM 2-9-212(2)(a) ON OR BEFORE JULY 1,
    2001, THE INCREASE IN THE POLITICAL SUBDIVISION'S
    PROPERTY TAX LEVY FOR THE POLITICAL SUBDIVISION'S
    PREMIUM CONTRIBUTIONS
  • AND
  • ADDS NEW LANGUAGE TO 2-18-703(4), MCA THAT GIVES
    CLEAR DEFINITIONS TO DETERMINE THE BASE YEAR AND
    THE CALCULATION OF THE BASE CONTRIBUTION.

112
SB491, (cont.)
  • ADDS, REMOVES REPLACES, (cont.)
  • AMOUNT OF EMPLOYER CONTRIBUTIONS FOR GROUP
    BENEFITS IN THE FISCAL YEAR BEING BUDGETED THAT
    ARE IN EXCESS OF THE CALCULATED BASE CONTRIBUTION
    ARE ALLOWED TO BE PERMISSIVELY LEVIED, NOT
    SUBJECT TO 15-10-420.
  • 15-10-420, MCA - IN GENERAL, REMOVES LANGUAGE
    THAT REFERS TO "PREMIUMS" AND ADDED LANGUAGE THAT
    REFERS TO THE PORTION THAT IS THE AMOUNT IN
    EXCESS OF THE BASE CONTRIBUTION OF A GOVERNMENTAL
    ENTITY'S PROPERTY TAX LEVY CONTRIBUTIONS FOR
    GROUP BENEFITS EXCLUDED UNDER 2-9-212 OR
    2-18-703, MCAS.
  • SPREADSHEET WILL BE AVAILABLE ON THE LGSB
    WEBSITE http//doa.mt.gov/lgsb/

113
SB491, (cont.)
ADDS, REMOVES REPLACES, (cont.) ADDED SECTION
TO 15-10-420 (4), MCA - TRANSITION. (1) EXCEPT
AS PROVIDED IN SUBSECTION (2), A POLITICAL
SUBDIVISION THAT LEVIED MILLS FOR GROUP
CONTRIBUTIONS PURSUANT TO 2-18-703 IN FISCAL YEAR
2009 MAY FOR THE FISCAL YEARS 2010 THROUGH 2014
LEVY THE GREATER OF (a) THE DOLLAR AMOUNT LEVIED
IN 2009 OR (b) THE AMOUNT DETERMINED IN
2-18-703. (2) THE ACTUAL DOLLAR AMOUNT UNDER
SUBSECTION (1)(a) MAY NOT INCLUDE AN AMOUNT FOR
GROUP BENEFITS PAID FROM USER CHARGES DESCRIBED
IN 2-9-212(2)(A)(I).
114
HB181
AN ACT AUTHORIZING COUNTY WATER OR SEWER
DISTRICTS TO USE ALTERNATIVE PROJECT DELIVERY
CONTRACTS
AMENDS SECTION 18-2-501, MCA EFFECTIVE DATE
IMMEDIATE
TITLE 18 - PUBLIC CONTRACTS CHAPTER 2 -
CONSTRUCTION CONTRACTS PART 5 -
ALTERNATIVE PROJECT DELIVERY CONTRACTS
115
HB181, (cont.)
18-2-501 DEFINITIONS - AS USED IN THIS PART,
UNLESS THE CONTEXT CLEARLY REQUIRES OTHERWISE,
THE FOLLOWING DEFINITIONS APPLY
ADDS ADDED TO 18-2-501(6) "GOVERNING BODY"
MEANS (b) "THE BOARD OF
DIRECTORS OF A COUNTY WATER OR SEWER DISTRICT
ESTABLISHED PURSUANT TO TITLE 7, CHAPTER 13,
PARTS 22 AND 23."
116
HB630
AN ACT REVISING LAWS RELATED TO REVOLVING FUNDS
FOR RURAL IMPROVEMENT DISTRICTS AND SPECIAL
IMPROVEMENT DISTRICTS INCREASING THE AMOUNT OF
MONEY THAT MAY BE REQUIRED FOR DEPOSIT IN
REVOLVING FUNDS WHEN USED TO SECURE BONDS OR
WARRANTS FOR IMPROVEMENTS MAKING THE PURPOSES
FOR WHICH EXCESS FUNDS IN RURAL IMPROVEMENT
DISTRICT REVOLVING FUNDS MAY BE USED COMPARABLE
TO THOSE OF SPECIAL IMPROVEMENT DISTRICT
REVOLVING FUNDS
AMENDS SECTIONS 7-12-2153, 7-12-2182, 7-12-2185,
7-12-2186, 7-12-4169, 7-12-4222, 7-12-4225, AND
7-12-4227, MCAS
EFFECTIVE DATE IMMEDIATE
117
HB630, (cont.)
TITLE 7 - LOCAL GOVERNMENTS CHAPTER 12 -
IMPROVEMENT DISTRICTS PART 21 -
RURAL IMPROVEMENT DISTRICTS
PARTS 41 42 - SPECIAL IMPROVEMENT
DISTRICTS
REMOVED WORD "SPECIAL" AND REPLACED WITH "RURAL"
IMPROVEMENT DISTRICT ON ALL 7-12-21XX MCA'S FOR
CONSISTENCY.
7-12-2153, MCA - INCIDENTAL EXPENSES CONSIDERED
AS COST OF IMPROVEMENTS --COSTS FOR BONDS OR
WARRANTS SECURED BY REVOLVING FUND ---DISTRICT
RESERVE ACCOUNT BONDS OR WARRANTS SECURED BY
REVOLVING FUND SUBSECTION (2) DELETED WORDS
"EQUALTO" AND REPLACED WITH " OF AT LEAST 5 AND
NOT MORE THAN 10" OF PRINCIPAL AMOUNT OF ANY
BOND OR WARRANTS TO BE ISSUED, WHICH MUST BE
DEPOSITED IN THE REVOLVING FUND.
118
HB630, (cont.)
7-12-2182, MCA - SOURCES OF MONEY FOR REVOLVING
FUND SUBSECTION (1)(a) READS SHALL, IF THE
BONDS OR WARRANTS ARE SECURED BY THE REVOLVING
FUND PURSUANT TO 7-12-2185, INCLUDE IN THE COST
OF THE IMPROVEMENTS TO BE PAID FROM THE PROCEEDS
OF THE BONDS OR WARRANTS AN AMOUNT OF AT LEAST 5
AND NOT MORE THAN 10 OF THE PRINCIPAL AMOUNT OF
THE BONDS OR WARRANTS TO BE ISSUED AS PROVIDED IN
7-12-2153(2) REMOVED WORD DEFRAYED AND ADDED
PAID REMOVED WORD EQUAL TO AND REPLACED WITH
OF AT LEAST 5 AND NOT MORE THAN 10
119
HB630, (cont.)
7-12-2185, MCA - COVENANTS TO USE REVOLVING
FUND--DURATION OF REVOLVING FUND
OBLIGATION--FACTORS TO BE CONSIDERED ADDED
(1)(c) TO RETAIN IN THE REVOLVING FUND A BALANCE
UP TO 10 OF THE THEN-OUTSTANDING RURAL
IMPROVEMENT DISTRICT BONDS AND WARRANTS SECURED
BY THE REVOLVING FUND
120
HB630, (cont.)
  • 7-12-2186, MCA - UTILIZATION OF EXCESS MONEY IN
    REVOLVING FUND
  • READS WHENEVER THERE IS IN THE REVOLVING FUND AN
    AMOUNT IN EXCESS OF THE AMOUNT DEPOSITED PURSUANT
    TO 7-12-2153(2) AND IN EXCESS OF 10 OF THE
    THEN-OUTSTANDING RURAL IMPROVEMENT DISTRICT BONDS
    AND WARRANTS SECURED BY THE REVOLVING FUND
  • REMOVED 5 AND ADDED THE AMOUNT DEPOSITED
    PURSUANT TO 7-12-2153(2) AND IN EXCESS OF 10
  • ADDED
  • SUBSECTION (2) USED FOR THE PURCHASE OF PROPERTY
    AT SALES FOR DELINQUENT TAXES, ASSESSMENTS, OR
    BOTH OR
  • SUBSECTION (3) USED FOR THE PURCHASE OF PROPERTY
    THAT MAY HAVE BEEN STRUCK OFF OR SOLD TO THE
    COUNTY FOR DELINQUENT TAXES, ASSESSMENTS, OR BOTH
    AND AGAINST WHICH THERE IS AN UNPAID ASSESSMENT
    FOR SPECIAL IMPROVEMENTS AND THERE ARE
    OUTSTANDING SPECIAL IMPROVEMENT DISTRICT BONDS OR
    WARRANTS OF THE CITY OR TOWN."

121
HB630, (cont.)
7-12-4169, MCA - INCIDENTAL EXPENSES CONSIDERED
AS COST OF IMPROVEMENTS--COSTS FOR BONDS OR
WARRANTS SECURED BY REVOLVING FUND--DISTRICT
RESERVE ACCOUNT CHANGED LANGUAGE SUBSECTION (2)
.THE COSTS OF ANY IMPROVEMENT MUST INCLUDE AN
AMOUNT OF AT LEAST 5 AND NOT MORE THAN 10 OF
THE PRINCIPAL AMOUNT..MUST BE DEPOSITED IN THE
REVOLVING FUND REMOVED WORD EQUAL TO AND
REPLACED WITH OF AT LEAST 5 AND NOT MORE THAN
10 7-12-4222, MCA - SOURCES OF MONEY FOR
REVOLVING FUND REMOVED WORD IN SUBSECTION (b)
EQUAL TO AND REPL
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