Severance Tax Operational Fund Distribution Methodology

Severance tax operational fund - distribution - core departmental programs - natural resources and energy grant programs - reserve requirement - cap - transfer to the severance tax perpetual base fund. The act makes the following changes related to the distribution of the money in the severance tax operational fund (operational fund):

• Defines programs for the department of natural resources that are funded from the operational fund and that were known as "tier-one programs" as "core departmental programs";
• Defines transfers that are made after the core departmental programs and a reserve requirement are funded and were known as "tier-two programs" as "transfers to the natural resources and energy grant programs";
• Separates an existing reserve into 2 separate reserves, the core reserve and the grant program reserve, while maintaining the overall purpose of each reserve;
• Establishes a cap on the grant program reserve equal to the maximum transfers to the natural resources and energy grant programs required by law;
• Requires the state treasurer to make the transfers to the natural resources and energy grant programs on August 15 after a fiscal year and to base the transfers on actual revenue as opposed to estimated revenue;
• Permits money from the grant program reserve to be used for the transfers to the natural resources and energy grant programs; and
• If all of the appropriations and transfers have been made and both reserves are full, then requires the state treasurer to transfer any money remaining in the operational fund to the severance tax perpetual base fund.
  (Note: This summary applies to this bill as enacted.)