Montana Code 20-3-368. Dissolution — disqualification
20-3-368. Dissolution — disqualification. (1) If, after being qualified by the state auditor, a district health insurance trust ceases to comply with the conditions under 20-3-366(1) for more than 3 consecutive years, the trust shall immediately notify the state auditor and dissolve the trust no later than the end of the next full fiscal year after the date of notification. A district health insurance trust may also voluntarily dissolve.
Terms Used In Montana Code 20-3-368
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- district: means the territory, regardless of county boundaries, organized under the provisions of this title to provide public educational services under the jurisdiction of the trustees prescribed by this title. See Montana Code 20-6-101
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- fund: means a separate detailed account of receipts and expenditures for a specific purpose as authorized by law or by the superintendent of public instruction under the provisions of subsection (2). See Montana Code 20-9-201
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(2)When dissolving pursuant to this section, the district health insurance trust shall wind up the affairs of the trust in the following order:
(a)impose any assessments on the districts of the trust that are calculated by the trust’s retained actuary as necessary to pay all liabilities of the trust;
(b)pay all remaining claims, including incurred but not reported claims;
(c)pay all remaining liabilities of the trust;
(d)return any reserve balance remaining from the distribution of state funds to the trust under 20-3-369(3) to the state of Montana, after adjustments under subsections (2)(a) through (2)(c), for deposit in the state general fund. The portion of the reserve balance attributable to the distribution of state funds referenced under this subsection (2)(d) must be determined by an actuarial reserve balance analysis conducted by an actuary chosen by the state auditor.
(e)distribute its remaining net assets, if any, proportionately to the districts of the trust pursuant to the contractual terms of coverage and membership in the trust. A district shall deposit funds distributed under this subsection (2)(e) in an internal service account and spend the funds in accordance with 20-3-330 or 20-3-331.