MontanaSB 26069th Legislature, Regular Session (2025)SenateWALLET

Provide for alteration of service district boundaries

Sponsored By: Greg Hertz (Republican)

Became Law

Taxation (Generally)Health Care ServicesLocal FinanceLocal GovernmentSchool FinanceSchools and EducationRevenue, State

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Change hospital districts with voter approval

Property owners can petition to move into a different hospital service district or create a new one for better access. After a petition is certified, officials post notice and hold a local hearing within 30 days, then order an election. Only voters in the area vote. If a majority approves, the change takes effect July 1 after the election. When a district is split, the new district must levy the same voted mills and pay the old district for eight years: 70% in year 1; 60% in years 2–4; 40% in years 5–6; 20% in years 7–8. Property that leaves still pays taxes for any bonds the old district had when the petition was filed. Clerks must notify state agencies, and the revenue department certifies taxable values after the change.

Reconciliation payments for isolated pupils

Beginning July 1, 2025, a district that enrolls an isolated pupil can seek a reconciliation payment if the pupil’s home district is next door, has at least $100,000,000 in taxable value, and its taxable value per student is over 1.5 times the attending district’s. The attending district must file by June 1 with a $100 fee; the county superintendent decides within 30 days. The Office of Public Instruction reports the mill value per student by May 1. The resident district must levy to pay: prior‑year isolated FTE × mill value per student × the mills the attending district reports. At least half is due by December 31 and the rest by June 15. Money is kept in tuition funds and used only for these payments.

Three-year payments after school transfers

Beginning July 1, 2025, when territory that generated a reconciliation payment is moved to another school district, the receiving district must levy and raise the same dollar amount for three straight years. It must pay at least half by December 31 and the rest by June 15 each year. The revenue goes through tuition funds and is remitted to the district that lost the territory.

Parent councils in isolated-pupil districts

Beginning July 1, 2025, any district where isolated pupils are 5% or more of budgeted enrollment must create an advisory council. Most members must be parents or guardians of isolated pupils. The council can request a standing agenda item at regular school board meetings.

Stricter filings for K-12 boundary moves

A petition to move territory to or from a K‑12 district cannot be sent to the county superintendent unless both school boards and the county superintendents agree in writing. This bars one‑sided filings and puts control with the boards first.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

  • Cora Neumann

    Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 442 • No: 52

Senate vote 4/29/2025

Do Pass

Yes: 48 • No: 2

Senate vote 4/28/2025

Do Pass

Yes: 49 • No: 0

Senate vote 4/24/2025

Do Concur

Yes: 98 • No: 0

Senate vote 4/22/2025

Do Concur As Amended

Yes: 96 • No: 4

Senate vote 4/22/2025

AMD-SB0260.003.001 Walsh DO PASS

Yes: 100 • No: 0

Senate vote 4/5/2025

Do Pass

Yes: 25 • No: 23

Senate vote 4/4/2025

Do Pass

Yes: 26 • No: 23

Actions Timeline

  1. Chapter Number Assigned

    5/16/2025Senate
  2. Signed by Governor

    5/13/2025Senate
  3. Transmitted to Governor

    5/5/2025Senate
  4. Signed by Speaker

    5/5/2025House
  5. Signed by President

    5/2/2025Senate
  6. Returned from Enrolling

    4/30/2025Senate
  7. Sent to Enrolling

    4/29/2025Senate
  8. 3rd Reading Passed as Amended by House

    4/29/2025Senate
  9. 2nd Reading House Amendments Concurred

    4/28/2025Senate
  10. Returned to Senate with Amendments

    4/24/2025House
  11. 3rd Reading Concurred

    4/24/2025House
  12. Revised Fiscal Note Printed

    4/22/2025Senate
  13. Fiscal Note Unsigned

    4/22/2025Senate
  14. Revised Fiscal Note Requested

    4/22/2025Senate
  15. 2nd Reading Concurred as Amended

    4/22/2025House
  16. 2nd Reading Motion to Amend Carried

    4/22/2025House
  17. Fiscal Note Received

    4/22/2025Senate
  18. Revised Fiscal Note Requested

    4/16/2025Senate
  19. Committee Report--Bill Concurred as Amended

    4/16/2025House
  20. Committee Executive Action--Bill Concurred as Amended

    4/15/2025House
  21. Revised Fiscal Note Printed

    4/9/2025Senate
  22. Fiscal Note Unsigned

    4/8/2025Senate
  23. Revised Fiscal Note Received

    4/8/2025Senate
  24. Hearing

    4/7/2025House
  25. First Reading

    4/7/2025House

Bill Text

  • Enrolled

    4/29/2025

  • As Amended (Version 4)

    4/22/2025

  • As Amended (Version 3)

    4/16/2025

  • As Amended (Version 2)

    3/28/2025

  • Introduced

    2/3/2025

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