The legislation will make it clear that only specific types of settlement funds can be diverted from the general fund. It establishes new reporting requirements that the governor must follow if exceptions to fund allocation are used. This aspect of the bill aims to ensure transparency in how settlement funds are used, which advocates argue is necessary for responsible state financial management. The requirement for deposits into the general fund may also provide additional funds for state financial operations.
Summary
House Bill 921 aims to revise existing laws regarding the management of state settlement proceeds. It mandates that any settlement funds resulting from claims or litigations handled by the state be deposited into the state general fund. However, the bill provides exceptions for certain types of money, such as those allocated for the Montana tobacco settlement trust fund, restitution to victims, and specific recoveries made by natural resource programs. This shift to the general fund reflects a significant change in how these funds are typically handled, moving towards a more centralized financial structure.
Contention
One of the principal areas of contention surrounding HB 921 is the restriction on using settlement proceeds for purposes outside the general fund unless granted by the governor. Critics may view this as a centralization of power that potentially undermines the autonomy of specific state departments or agencies, which previously used these funds for more tailored purposes. Proponents, however, argue that consolidating these funds will simplify state finances and ensure a more equitable distribution of settlement proceeds across state needs.