MontanaHB 25069th Legislature, Regular Session (2025)HouseWALLET

Generally revise education laws related to out-of-district attendance.

Sponsored By: David Bedey (Republican)

Signed by Governor

Education - K-12Taxation--PropertyEducation - School Finance

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

How much districts pay for tuition

Your home district pays the attending district regular tuition, prorated for the student’s actual days enrolled. If a nonresident student turns 18 and becomes a resident during the year, tuition stays paid for the rest of that school year. The payment amount equals the smaller of the two districts’ BASE and over‑BASE levy shares of their general fund, capped at 35.3% of the tuition per‑ANB. If the home district is nonoperating, use the attending district’s share, also capped at 35.3%. If House Bill 156 also becomes law, nonoperating‑district tuition is tied to the attending district’s over‑BASE share and may not exceed 20% of the tuition per‑ANB.

New rules to enroll across districts

Schools must enroll resident students first and give set priority to some nonresident students. Trustees can set application timelines. Within 10 days of your application, the district tells you the expected decision date. Within 10 days of the decision, you get the approval or a specific denial reason with proof; approved agreements go to both county superintendents. Districts must deny if adding a student would break class‑size or teacher contact‑hour limits. They may also deny for past truancy, any expulsion, or suspensions in the last three school years (the suspension rule does not apply to students eligible for special education).

Remote classes across districts, with limits

Starting July 1, 2025, students may take a remote class from another district if their home district does not offer an equivalent course. Districts that offer remote classes must accept these students unless adding them would break accreditation class‑size rules. Students taught remotely count in the teaching district’s enrollment for state funding. Regular out‑of‑district tuition rules do not apply to remote instruction unless the student is enrolled and physically attends under an attendance agreement. The Superintendent will set rules to run and enforce this program.

Special and high‑cost placement tuition rules

When a child with a disability attends in another district, the home district pays regular tuition plus a special‑education tuition set under state rules. The receiving district must reduce that tuition by any funding it already gets for the student and may base it on the actual cost to provide a free appropriate public education. For Montana students without disabilities who need higher‑cost programs placed under law, the state pays extra only after subtracting 120% of the tuition per‑ANB and will pay no more than $2,500 per student. Starting July 1, 2025, the law confirms these tuition and transportation duties follow the student’s IEP placement decisions.

Who pays student transportation costs

If a parent requests the transfer, the parent pays for transportation, and the child is not an eligible transportee. If the child’s IEP includes transportation, the home district must pay for it. For transfers under 20‑5‑321(1)(a) or (1)(b), the home district must provide transportation. For placements under 20‑5‑321(1)(d) or (1)(e), the receiving district must provide transportation under federal rules. A district may not charge more than the home district’s average per‑student transport cost from the prior year. Every out‑of‑district agreement must state any transportation costs and who pays.

Lower levies from tuition accounting changes

Districts must count expected tuition receipts against their general‑fund levy and deposit tuition and transportation receipts in the correct funds. Extra tuition for students with disabilities or high‑cost programs goes to the miscellaneous programs fund. Certain reimbursements must go to the tuition fund and be used for out‑of‑state public school or day‑treatment tuition. These rules can slightly lower local property tax levies. Starting July 1, 2025, a district that is not operating a school uses a nonoperating fund to pay tuition to other districts, pupil transportation, and property upkeep.

Deadlines to bill and report tuition

By July 15 after the attendance year, the attending district must tell the home district what tuition is owed. The home district must pay at least 50% by December 31 of the next school fiscal year and the rest by June 15, using the tuition fund, transportation fund, general fund, or other legal funds; nonoperating districts use the nonoperating fund. To receive state reimbursement, trustees must file a report to the Superintendent by June 30 with required student and cost details.

Sponsors & Cosponsors

Sponsor

  • David Bedey

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 493 • No: 2

House vote • 4/11/2025

Do Concur

Yes: 100 • No: 0

House vote • 4/11/2025

Do Concur

Yes: 98 • No: 1

Senate vote • 4/2/2025

Do Concur

Yes: 49 • No: 1

Senate vote • 4/1/2025

Do Concur

Yes: 47 • No: 0

House vote • 2/7/2025

Do Pass

Yes: 99 • No: 0

House vote • 2/6/2025

Do Pass

Yes: 100 • No: 0

Actions Timeline

  1. Chapter Number Assigned

    5/8/2025House
  2. Signed by Governor

    5/5/2025House
  3. Transmitted to Governor

    4/25/2025House
  4. Signed by President

    4/25/2025Senate
  5. Signed by Speaker

    4/23/2025House
  6. Returned from Enrolling

    4/14/2025House
  7. Sent to Enrolling

    4/11/2025House
  8. 3rd Reading Senate Amendments

    4/11/2025House
  9. 2nd Reading Senate Amendments

    4/11/2025House
  10. Returned to House with Amendments

    4/2/2025Senate
  11. 3rd Reading

    4/2/2025Senate
  12. 2nd Reading

    4/1/2025Senate
  13. Committee Report

    3/28/2025Senate
  14. Committee Executive Action

    3/27/2025Senate
  15. Hearing

    3/19/2025Senate
  16. Hearing Canceled

    3/17/2025Senate
  17. Referred to Committee

    2/20/2025Senate
  18. 1st Reading

    2/10/2025Senate
  19. Transmitted to Senate

    2/7/2025House
  20. 3rd Reading

    2/7/2025House
  21. 2nd Reading

    2/6/2025House
  22. Committee Report

    2/4/2025House
  23. Committee Executive Action

    2/3/2025House
  24. Committee Executive Action

    2/3/2025House
  25. Hearing

    1/22/2025House

Bill Text

  • Enrolled

    4/15/2025

  • As Amended (Version 2)

    3/28/2025

  • Introduced

    1/17/2025

Related Bills

Back to State Legislation