Revise state finance laws related to the debt free account and the coal trust fund
Summary
HB 926 would require the state treasurer to move all unobligated and unexpended money from Montana’s debt and liability free account into the coal severance tax permanent fund within 10 days after the act takes effect. The bill also includes a small general fund appropriation of $100 to the Department of Revenue for implementation. In effect, it redirects a dormant balance from one state account into a constitutionally established permanent fund tied to coal severance tax revenues.
The bill contains a coordination clause that changes the destination of the transfer if Senate Bill No. 90 does not pass. Under that contingency, the same money would instead be transferred into the Montana school facilities fund. The act would take effect immediately upon passage and approval, and it would amend state finance administration only through this one-time transfer rather than creating an ongoing program or tax change.
Impact
HB 926 would alter state finance law by directing the disposition of remaining funds in the debt and liability free account, a statutory account in 17-6-214. Depending on the status of Senate Bill No. 90, the transferred funds would either be deposited into the coal severance tax permanent fund under 17-5-703 or, alternatively, into the Montana school facilities fund. The bill does not change tax rates or eligibility rules, but it does affect how state-held balances are allocated among public funds and therefore impacts the long-term investment corpus available for state purposes.
Sentiment
The available voting history suggests the bill did not generate recorded opposition at the committee stage, as the referenced House Taxation motion to table passed 21-0. However, the bill ultimately died in process, indicating it did not advance through the full legislative process despite the unanimous committee vote. With no committee transcript available, the overall sentiment appears procedural and limited rather than highly contentious, with the main interest likely centered on where the money should be redirected.
Contention
The primary point of contention is the destination of the transferred funds. The bill’s default path sends the money to the coal severance tax permanent fund, while the coordination clause redirects it to the Montana school facilities fund if Senate Bill No. 90 fails. That makes the measure dependent on the fate of another bill and suggests competing priorities between strengthening a permanent trust fund and supporting school facilities. Because the bill concerns the use of unexpended public funds rather than new revenue, any disagreement would likely focus on fiscal policy and fund allocation rather than on the size of the transfer itself.