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MontanaSB 26069th Legislature, Regular Session (2025)SenateWALLET

Provide for alteration of service district boundaries

Sponsored By: Greg Hertz (Republican)

Signed by Governor

TaxationHealth Care ServicesLocal FinanceLocal GovernmentEducation - School FinanceEducation - K-12Revenue, State

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Eight-year taxes after hospital district split

If a hospital district splits, both resulting districts must levy the same voted mills, and the new district must do so for eight years. Each year, the new district must pay part of its tax collections back to the old district: 70% in year 1; 60% in years 2–4; 40% in years 5–6; and 20% in years 7–8. If your property leaves a district, it still pays taxes for bonds that existed when the petition was filed.

New path to change hospital districts

The law lets eligible property owners ask to move into a hospital district that can reach them. Ambulance travel over 60 minutes counts as no access. After a petition is certified, the district must give public notice and hold a local hearing within 30 days. Only voters who live in the land being moved may vote; a simple majority approves the change. New lines take effect July 1 after the election, and property is placed in a district that can serve it. You cannot use this process while your land is under an active withdrawal petition. Counties must notify state agencies so taxable values and records are updated.

School transfers change taxes and payments

Beginning July 1, 2025, for three years after a granted transfer, the transferred land’s taxable value is split 50/50 between the old and new districts. If the receiving district had paid a reconciliation payment, it must levy for three years to raise the most recent payment amount and send at least half by December 31 and the rest by June 15 each year. A district qualifies for an isolated‑pupil reconciliation when the pupil’s resident, bordering district has at least $100,000,000 in taxable value and a per‑student taxable value over 1.5 times the attendance district; there is a $100 filing fee and a June 1 deadline. The annual payment equals approved FTE isolated pupils multiplied by the mill value per student (set from last year’s data) and by the attendance district’s budgeted mills; the attendance district reports its mills by the first Tuesday in September. Districts with isolated pupils at 5% or more of enrollment must form an advisory council with a parent majority. The county superintendent must tell the Department of Revenue when a transfer is approved so tax records reflect the change.

Stricter rules to move school boundaries

Beginning July 1, 2025, to move land between school districts, 60% of registered voters in the area must sign. The land must touch the new district, include taxable property, have school‑age children, and be at least 3 miles from an operating school in the giving district. K‑12 petitions must cover both elementary and high school and must include a legal description, reasons, and the count of school‑age children. The receiving board must approve by majority vote at a noticed meeting; if both boards approve in writing, the county superintendent must grant the transfer. You generally cannot refile for one full fiscal year unless county superintendents agree; joint‑district cases are decided by multiple superintendents with a tie‑breaker if needed. The superintendent must hold a hearing within 40 days with posted notices and must weigh transport safety, cost, and time, whether there are isolated pupils, and the likely taxpayer burden on each district, including the past eight years of transfers.

Sponsors & Cosponsors

Sponsor

  • Greg Hertz

    Republican • Senate

Cosponsors

  • Cora Neumann

    Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 443 • No: 53

Senate vote • 4/29/2025

Do Pass

Yes: 48 • No: 2

Senate vote • 4/28/2025

Do Pass

Yes: 50 • No: 0

House vote • 4/24/2025

Do Concur

Yes: 98 • No: 0

House vote • 4/22/2025

AMD-SB0260.003.001 Walsh DO PASS

Yes: 100 • No: 0

House vote • 4/22/2025

Do Concur As Amended

Yes: 96 • No: 4

Senate vote • 4/5/2025

Do Pass

Yes: 25 • No: 23

Senate vote • 4/4/2025

Do Pass

Yes: 26 • No: 24

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 House Amendments

    4/29/2025Senate

  9. 2nd Reading House Amendments

    4/28/2025Senate

  10. Returned to Senate with Amendments

    4/24/2025House

  11. 3rd Reading

    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

    4/22/2025House

  16. 2nd Reading Motion to Amend

    4/22/2025House

  17. Fiscal Note Received

    4/22/2025Senate

  18. Revised Fiscal Note Requested

    4/16/2025Senate

  19. Committee Report

    4/16/2025House

  20. Committee Executive Action

    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. 1st Reading

    4/7/2025House

Bill Text

  • Enrolled

    4/29/2025

    PDF

  • As Amended (Version 4)

    4/22/2025

    PDF

  • As Amended (Version 3)

    4/16/2025

    PDF

  • As Amended (Version 2)

    3/28/2025

    PDF

  • Introduced

    2/3/2025

    PDF

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