**** 69th Legislature 2025 SB 34 - 1 - Authorized Print Version – SB 34 ENROLLED BILL AN ACT GENERALLY REVISING LAWS RELATED TO K-12 SCHOOL DISTRICTS; REMOVING OBSOLETE LANGUAGE REGARDING TUITION CALCULATIONS; CLARIFYING THE BUDGET LIMIT CALCULATIONS FOR A NEW K-12 SCHOOL DISTRICT; AMENDING SECTIONS 20-6-702 AND 20-6-703, MCA; AND PROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA: Section 1. Section 20-6-702, MCA, is amended to read: "20-6-702. (1) Notwithstanding the provisions of subsections (2) through (6), a K-12 school district formed under the provisions of 20-6-701 is subject to the provisions of law for high school districts. (2) The number of elected trustees of the K-12 school district must be based on the classification of the attached elementary district under the provisions of 20-3-341 and 20-3-351. (3) Calculations for the following must be made separately for the elementary school program and the high school program of a K-12 school district: (a) the calculation of ANB for purposes of determining the total per-ANB entitlements must be in accordance with the provisions of 20-9-311; (b) the basic county tax for elementary equalization and revenue for the elementary BASE funding program for the district must be determined in accordance with the provisions of 20-9-331, and the basic county tax for high school equalization and revenue for the high school BASE funding program for the district must be determined in accordance with 20-9-333; (c) the guaranteed tax base aid for BASE funding program purposes for a K-12 school district must be calculated separately, using each district's guaranteed tax base ratio, as defined in 20-9-366. The BASE budget levy to be levied for the K-12 school district must be prorated based on the ratio of the BASE funding **** 69th Legislature 2025 SB 34 - 2 - Authorized Print Version – SB 34 ENROLLED BILL program amounts for elementary school programs to the BASE funding program amounts for high school programs. (d) the levy authority limits under 20-9-502(3) and the corresponding state school major maintenance aid under 20-9-525(3) for a K-12 school district must be calculated separately for the K-12 school district's elementary and high school programs in the same manner as those limits and aid would be calculated if the K-12 school district consisted of a separate elementary and high school district. (4) The retirement obligation and eligibility for retirement guaranteed tax base aid for a K-12 school district must be calculated and funded as a high school district retirement obligation under the provisions of 20- 9-501. (5) For the purposes of budgeting for a K-12 school district, the trustees shall adopt a single fund for any of the budgeted or nonbudgeted funds described in 20-9-201 for the costs of operating all grades and programs of the district. (6) Tuition for attendance in the K-12 school district must be determined separately for high school pupils and for elementary pupils under the provisions of 20-5-320 through 20-5-324, except that the actual expenditures used for calculations in 20-5-323 must be based on an amount prorated between the elementary and high school programs in the appropriate funds of each district in the year prior to the attachment of the districts." Section 2. Section 20-6-703, MCA, is amended to read: "20-6-703. (1) When an attachment order for a K-12 school district becomes effective on July 1 under the provisions of 20-6-701: (a) the county superintendent shall order the trustees to execute all necessary and appropriate deeds, bills of sale, or other instruments for the conveyance of title to all real and personal property of the elementary district to the high school district; (b) the trustees of the elementary district shall entrust the minutes of the board of trustees, the elementary district documents, and other records to the high school district to which it is attached; and (c) the county treasurer shall transfer all end-of-the-year warrants and fund balances of the attached elementary district to the similar funds established for the K-12 school district in the high school **** 69th Legislature 2025 SB 34 - 3 - Authorized Print Version – SB 34 ENROLLED BILL district. (2) All taxes levied by and revenue due from a previous school fiscal year to an elementary district attached to a high school district must be payable to the appropriate fund of the high school district. (3) The previous year's general fund budget amounts for the elementary district and the high school district that form a K-12 school district must be combined used to determine the budget limitation for the ensuing school fiscal year pursuant to the calculations described in 20-9-308(1)(b)." Section 3. [This act] is effective July 1, 2025. - END - I hereby certify that the within bill, SB 34, originated in the Senate. ___________________________________________ Secretary of the Senate ___________________________________________ President of the Senate Signed this _______________________________day of____________________________________, 2025. ___________________________________________ Speaker of the House Signed this _______________________________day of____________________________________, 2025. SENATE BILL NO. 34 INTRODUCED BY D. EMRICH BY REQUEST OF THE EDUCATION INTERIM COMMITTEE AN ACT GENERALLY REVISING LAWS RELATED TO K-12 SCHOOL DISTRICTS; REMOVING OBSOLETE LANGUAGE REGARDING TUITION CALCULATIONS; CLARIFYING THE BUDGET LIMIT CALCULATIONS FOR A NEW K-12 SCHOOL DISTRICT; AMENDING SECTIONS 20-6-702 AND 20-6-703, MCA; AND PROVIDING AN EFFECTIVE DATE.