2023 Montana Code Annotated › Title 17. State Finance › Chapter 1. General Administration › Part 5. Dedication of Revenue to State Special Revenue Fund › 17-1-505. Review of dedicated revenue provisions

17-1-505. Review of dedicated revenue provisions.
(1) The legislature recognizes that dedicated revenue provisions are subject to review by:
(a) the office of budget and program planning in the development and implementation of the executive budget and analysis of legislation;
(b) the legislative fiscal division in analyzing the executive budget;
(c) the legislative services division in drafting legislation;
(d) the legislative auditor in auditing agencies;
(e) the department of administration in performing the functions provided for in 17-2-106; and
(f) the department of revenue in reviewing revenue sources and determining distributions to local governments.
(2) To avoid unnecessary and unjustified use of dedicated revenue provisions, the entities listed in subsection (1) shall, in the course of current duties, consider the principles in 17-1-507 and the criteria listed in this subsection for each new or existing dedicated revenue provision. If an entity referred to in subsection (1) determines that the use of a dedicated revenue provision is not justified, the use or proposed use must be reported to the legislative fiscal analyst. A dedicated revenue provision should not give a program or activity an unfair advantage for funding. The expenditures from a dedicated revenue provision must be based on requirements for meeting a legislatively established outcome. Statutorily mandated programs or activities funded through dedicated revenue provisions from general revenue sources must be reviewed to the same extent as programs or activities funded from the general fund. The use of a dedicated revenue provision may be justified if it satisfies one or more of the following:
(a) The program or activity funded provides direct benefits for those who pay the dedicated tax, fee, or assessment, and the tax, fee, or assessment is commensurate with the costs of the program or activity.
(b) The use of the dedicated revenue provision provides special information or other advantages that could not be obtained if the revenue were allocated to the general fund.
(c) The dedicated revenue provision provides program funding at a level equivalent to the expenditures established by the legislature.
(d) The dedicated revenue provision involves collection and allocation formulas that are appropriate to the present circumstances and current priorities in state government.
(e) The dedicated revenue provision does not impair the legislature's ability to scrutinize budgets, control expenditures, and establish priorities for state spending.
(f) The dedicated revenue provision results in an appropriate projected ending fund balance.
(g) The dedicated revenue provision fulfills a continuing, legislatively recognized need.
(h) The dedicated revenue provision does not result in accounting or auditing inefficiency.
(3) A local government dedicated revenue provision may be justified if it satisfies any of the following:
(a) The program or activity funded provides direct benefits or services for those who pay the dedicated tax, fee, or assessment, and the tax, fee, or assessment is commensurate with the costs of the program or activity.
(b) The provision provides necessary information or other advantages that could not be obtained if the revenue were allocated to the state general fund.
(c) The provision involves collection and allocation formulas that are appropriate to the present circumstances and current priorities of state and local government.
(d) The provision does not impair the ability of the legislature to scrutinize budgets, control expenditures, and establish state spending priorities.
(e) The provision fulfills a legislatively recognized continuing need.
(f) The provision does not result in accounting or auditing inefficiency or unnecessary complexity and instability of local government funding structures.
History: En. Sec. 5, Ch. 593, L. 1993; amd. Sec. 18, Ch. 509, L. 1995; amd. Sec. 3, Ch. 8, L. 1999; amd. Sec. 43, Ch. 51, L. 1999; amd. Sec. 1, Ch. 554, L. 2001; amd. Sec. 3, Ch. 41, L. 2003; amd. Sec. 5, Ch. 120, L. 2013.