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LC 4156

Constitutional amendment to revise investment restrictions of coal trust fund

2025 Regular Session

Montana proposes constitutional amendment to revise coal trust fund investment restrictions, potentially reshaping how the state manages severance-based resources.

(LC) Draft Delivered to Requester
#constitutionalamendmentproposals #statefinance(seealso:appropriations;taxationsubjects) #taxation(generally) #taxation--coal(seealso:appropriations #coaltaxfundprincipal)
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Bill Summary · LC 4156

Legislative bill overview

LC 4156 proposes a constitutional amendment to modify the investment restrictions governing Montana's coal trust fund. The bill is currently in early draft stages and has not yet been formally introduced in the legislature. The specific provisions of the amendment are not yet publicly available, as the document remains in the drafting process.

Why is this important

Montana's coal trust fund represents significant state resources derived from coal severance taxes and royalties. Changes to investment restrictions could affect how the state manages these funds, potentially influencing returns, risk exposure, and alignment with broader energy policy goals. Constitutional amendments carry substantial weight and typically reflect significant shifts in state fiscal or policy priorities.

Potential points of contention

  • Divestment vs. investment flexibility: Clarification needed on whether amendments would allow or restrict coal-related investments, touching on energy independence and ESG concerns
  • Fiduciary duty and returns: Questions about whether revised restrictions prioritize financial performance, social/environmental objectives, or both
  • Stakeholder impact: Effects on beneficiaries of the trust fund (schools, permanent fund distributions, etc.) and affected industries

Compiled from official sources — confirm details with the bill’s official record.

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