HELENA — On a party-line vote, a Senate committee on Monday endorsed a proposed constitutional amendment to change the distribution of the coal severance tax and use some of the money as a permanent source of infrastructure.

Shortly after hearing the bills, the Senate Natural Resources Committee passed and sent to the floor Senate Bill 353, by Sen. Rick Ripley, R-Wolf Creek. His companion measure, SB 353, also was sent to the Senate.

Both bills passed by identical 7-5 votes, with all of the committee’s Republicans voting for the two bills, while all of the Democrats opposed them.

If SB353 obtains the votes of 100 of the 150 members of the Legislature, it will go directly to the November 2016 ballot for a vote. As a proposed constitutional amendment, it does not have to go to Gov. Steve Bullock for his signature or veto.

If the constitutional amendment passes, it would change how coal tax funds are distributed, once the principal of the state’s coal severance tax trust fund reaches $1 billion. The balance was at $953 million as of mid-2014 , now and is expected to reach $1 billion in July.

Ripley said the proposed changes would set aside $27 million annually for use to build and repair roads, bridges, water system, sewage system and other public works projects. That would amount to 756 new sustainable jobs annually, he said.

The bills drew support from representatives of trade associations representing contractors, engineers, architects, retailers, equipment dealers, small businesses and the Montana Chamber of Commerce. All of them said Montana needs a reliable source of funds for infrastructure.

“During the past several legislative sessions, contractors have watched infrastructure funding measures like a political football,” said Cary Hegreberg, executive director of the Montana Contractors Association. “Let bond. No, let’s pay cash. No, let’s use both cash and bonds. Let’s construct new state buildings. No, let’s build water/sewer plants. What about roads and highways?”

He said the nearly $1 billion in the coal tax trust fund from past coal taxes is invested in a mix of corporate and government bonds, many of them out of state. He asked what was wrong in seeing more of this money invested in Montana and its infrastructure.

Jerry Bowser, environmental manager for two Montana construction companies that are part of Oldcastle materials, spoke in favor of the bills.

“We would like to have, as a company, and as managers of the company, a reliable source of funding,” he said. “If we fail to plan, we’re planning to fail.”

Riley Johnson of the National Federation of Independent Business, which represents 5,800 main street businesses in Montana, said, “This is an ongoing source, not a one-time shot.”

Opposing it were some legislators who served in the Legislature in 1975 when the coal tax trust fund measure was put on the ballot. State Budget Director Dan Villa also spoke against it on behalf of Gov. Steve Bullock. A MEA-MFT union representative also testified against the bill.

“This is like an endowment for future generations,” said former House Speaker Hal Harper, D-Helena. “What this proposal does is pretty much cut the head off the trust fund and deprive it of $20 million to $30 million a year.”

Harper said the coal tax trust fund, with some of the interest going to fund economic development programs, already has created hundreds and hundreds of jobs over the years.

He said the coal tax interest money had been used to shore up state pension funds in 2013 after their investments plunged after the 2008-2009 recession.

“The permanent trust fund is the gold goose that lays the gold eggs, unless you kill it,” Harper said.

Former Rep. Verner Bertelsen, age 96, who voted for the constitutional amendment in 1975, called it “one of the best votes I made as a Republican state representative.”

“The coal trust has done a wonderful job for Montana,” said Bertelsen, who later served as secretary of state. “Don’t mess with the constitutional trust. Don’t cap the trust. Don’t try to steal from future generations.”

Budget Director Villa said other states are following Montana’s lead by setting up trust funds with natural resources revenues.

“We use it to be one of the most fiscally responsible states in the nation,” he said.

Villa said there would be less money to fund some economic development programs under the Big Sky Trust.

“There are numerous, numerous problems with this,” Villa said.

Erik Burke, representing MEA-MFT, said, “We believe the coal tax is a legacy for future generations so let’s give future generations the whole banana, not just a slice of the pie.”