1999 Montana Legislature

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HOUSE BILL NO. 38

INTRODUCED BY R. PECK

BY REQUEST OF THE CODE COMMISSIONER

AN ACT GENERALLY REVISING AND CLARIFYING THE MONTANA CODE ANNOTATED; DIRECTING THE CODE COMMISSIONER TO CORRECT ERRONEOUS REFERENCES CONTAINED IN MATERIAL ENACTED BY THE 56TH LEGISLATURE; AMENDING SECTIONS 2-11-103, 2-16-403, 2-16-405, 2-16-619, 2-17-803, 3-5-211, 5-4-301, 5-12-302, 7-4-2506, 7-4-2512, 7-6-2317, 7-7-2203, 7-22-2144, 10-2-601, 13-1-112, 13-2-122, 13-2-221, 13-27-204, 13-27-206, 13-27-207, 13-27-302, 13-27-307, 13-36-203, 13-37-250, 15-1-112, 15-6-135, 15-17-323, 15-24-602, 15-24-1401, 15-24-2402, 15-31-121, 15-31-124, 15-31-702, 15-35-103, 15-36-314, 15-36-315, 15-50-101, 15-61-102, 15-62-204, 16-4-202, 16-4-207, 16-10-403, 17-1-505, 17-1-508, 17-3-222, 17-7-502, 18-3-110, 18-4-242, 18-8-202, 19-3-316, 19-3-412, 19-3-509, 19-6-802, 19-7-802, 19-8-105, 20-15-203, 25-13-701, 25-31-119, 25-35-508, 25-35-602, 25-35-606, 27-1-306, 27-1-704, 30-10-115, 30-10-209, 30-16-201, 32-1-440, 32-8-314, 32-8-403, 35-2-429, 37-13-316, 39-71-116, 40-5-225, 40-5-273, 40-5-413, 41-5-347, 42-2-608, 46-23-302, 50-3-109, 50-78-102, 61-3-448, 61-3-506, 61-3-721, 61-4-101, 61-8-404, 69-14-112, 70-1-301, 70-20-103, 70-21-203, 70-28-207, 71-1-306, 72-2-524, 72-3-104, 72-31-201, 75-10-743, 81-4-307, AND 81-4-510, MCA; REPEALING SECTIONS 7-2-2301, 7-2-2302, 7-2-2303, 7-2-2311, 7-2-2312, 7-2-2313, 7-2-2314, 7-2-2315, 7-2-2316, 7-2-2317, 7-2-2318, 7-2-2319, 15-35-201, 15-35-202, 15-35-203, 15-35-204, AND 15-35-205, MCA; AND PROVIDING EFFECTIVE DATES AND A RETROACTIVE APPLICABILITY DATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

     Section 1.  Section 2-11-103, MCA, is amended to read:

     "2-11-103.  Definitions. As used in this part, the following definitions apply:

     (1)  "Aggrieved" means that a person can demonstrate a specific personal and legal interest, as distinguished from a general interest, that has been adversely affected.

     (2)(1)  (a) "Government act" means the denial or issuance with conditions of a permit, certificate, license, or the equivalent of a permit, certificate, or license issued by a government entity.

     (b)  The term does not mean:

     (i)  litigation in which a government entity or other person litigates the authority of the government entity to take an act provided in subsection (2)(a) (1)(a);

     (ii) an act provided in subsection (2)(a) (1)(a) for which a citation or warning is issued, other than the statement required by 2-11-104, on which a reference clearly appears to the legal authority for the government action; or

     (iii) a legislative act by the state of Montana.

     (3)(2)  "Government entity" means a state agency or a local government unit.

     (4)(3)  "Local government unit" means a city, county, town, unincorporated municipality or village, or special taxing unit or district and any commission, board, bureau, or other office of the unit.

     (5)(4)  "Rule" has the meaning provided in 2-4-102.

     (6)(5)  "State agency" has the meaning provided in 2-4-102(2)(a).

     (7)(6)  "Statement of government authority" or "statement" means the statement required by 2-11-104."

     Section 2.  Section 2-16-403, MCA, is amended to read:

     "2-16-403.  Salaries of supreme court justices. (1) Subject to subsection (3), the salary of the chief justice of the supreme court is as follows:

     (a)  $67,595 beginning July 1, 1995;

     (b)  $70,231 beginning January 1, 1996.

     (2)  Subject to subsection (3), the salary of a justice of the supreme court is as follows:

     (a)  $66,289 beginning July 1, 1995;

     (b)  $68,874 beginning January 1, 1996.

     (3)  Prior to June 30, 1996, and prior to June 30 of each even-numbered year thereafter, the department of administration shall conduct a salary survey of justices and chief justices of the highest appellate courts similar to the Montana supreme court for the states of North Dakota, South Dakota, Wyoming, and Idaho. The department shall include the salary for a Montana supreme court justice or the chief justice in determining the average salary for a justice and the average salary for the chief justice. If the average salaries are greater than the salaries for a supreme court justice or the chief justice in Montana, then beginning July 1, 1997 of the year following the year in which the survey is conducted, the average salaries are the new salaries for a supreme court justice or the chief justice. In each year following the year in which a survey is conducted, the average salary is the new salary for the position. A justice's salary or the chief justice's salary may not be reduced."

     Section 3.  Section 2-16-405, MCA, is amended to read:

     "2-16-405.  Salaries of certain elected state officials. (1) Subject to subsection (2), the The salaries paid to certain the following elected officials of the state of Montana are determined as provided in subsection (2):

     (a)  Governor, $59,310. governor;

     (b)  Lieutenant lieutenant governor;, $43,242.

     (c)  Attorney attorney general;, $54,329.

     (d)  State state auditor;, $40,101.

     (e)  Superintendent superintendent of public instruction;, $47,208.

     (f)  Public public service commission presiding officer;, $44,615.

     (g)  Public public service commissioners, other than presiding officer;, $43,242.

     (h)  Secretary secretary of state;, $40,101.

     (i)  Clerk clerk of the supreme court, $39,044.

     (2)  Before June 30 of each even-numbered year, the department of administration shall conduct a salary survey of executive branch officials with similar titles to the Montana officials listed in subsection (1) for the states of North Dakota, South Dakota, Wyoming, and Idaho. The department shall include the salary for the Montana official in determining the average salary for the officials with similar titles. If the average salary is greater than the salary for the official in Montana, then beginning July 1, in each of the year following the year in which a the survey is conducted, the average salary is the new salary for the official."

     Section 4.  Section 2-16-619, MCA, is amended to read:

     "2-16-619.  Submission of circulation sheets -- certification of signatures. (1) Signed circulation sheets or sections of a petition for recall must be submitted to the officer responsible for registration of electors in the county in which the signatures were obtained within 3 months of the date the form of the petition was approved under 2-16-617.

     (2)  An affidavit, in substantially the following form, shall must be attached to each circulation sheet or section submitted to the county officer:

     (Name of person circulating petition), being first sworn, deposes and says: I circulated or assisted in circulating the petition to which this affidavit is attached, and I believe that the signatures thereon on the petition are genuine, and are the signatures of the persons whose names they purport to be, and that the signers knew the contents of the petition before signing the same petition.

     .................. (Signature)

Subscribed and sworn before me this .... day of ......, 19... 20...

............ (Person authorized to take oaths)

     Seal ................. (Title or notarial information)"

     Section 5.  Section 2-17-803, MCA, is amended to read:

     "2-17-803.  Capitol complex advisory council established -- membership -- staff services -- compensation. (1) There is a capitol complex advisory council.

     (2)  The council consists of nine members as follows:

     (a)  two members of the house of representatives appointed by the speaker on a bipartisan basis;

     (b)  two members of the senate appointed by the committee on committees on a bipartisan basis;

     (c)  a public representative appointed by the governor; and

     (d)  the director or the director's designee of each of the following agencies:

     (i)  the Montana historical society established in 22-3-101;

     (ii) the Montana arts council established in 2-15-1513;

     (iii) the department of administration established in 2-15-1001; and

     (iv) the department of fish, wildlife, and parks established in 2-15-3401.

     (3)  The council shall select a presiding officer, who may call meetings to conduct council business. The departments of administration and fish, wildlife, and parks shall provide staff services to the council.

     (4)  (a) The council member appointed under subsection (2)(c) is entitled to compensation not to exceed the amount daily allowance provided for in 5-2-301(3) for compensation of legislators for each day in which the member is actually and necessarily engaged in performing council duties and to travel expense reimbursement as provided in 2-18-501 through 2-18-503.

     (b)  A council member designated under subsection (2)(d) is not entitled to compensation for services as a member of the council.

     (c)  A council member appointed under subsections subsection (2)(a) or (2)(b) is entitled to compensation and expenses as provided in 5-2-302."

     Section 6.  Section 3-5-211, MCA, is amended to read:

     "3-5-211.  Salaries and expenses of district court judges. (1) Subject to subsection (2), the annual salary of each district judge is as follows:

     (a)    $63,178;

     (b)  $64,979 beginning July 1, 1995;

     (c)  $67,513 beginning January 1, 1996.

     (2)(1)  Prior to June 30, 1996, and prior to June 30 of each even-numbered year thereafter, the department of administration shall conduct a salary survey of judges of courts of general jurisdiction similar to the Montana district courts for the states of North Dakota, South Dakota, Wyoming, and Idaho. The department shall include the salary for a Montana district court judge in determining the average salary. If the average salary is greater than the salary for a district court judge in Montana, then beginning July 1, 1997 of the year following the year in which the survey is conducted, the average salary is the new salary for that position. In each year following the year in which a survey is conducted, the average salary is the new salary for the position. A district court judge's salary may not be reduced.

     (3)(2)  Actual and necessary expenses for each district court judge shall be are the travel expenses, as defined and provided in 2-18-501 through 2-18-503, incurred in the performance of his the district court judge's official duties."

     Section 7.  Section 5-4-301, MCA, is amended to read:

     "5-4-301.  Bills received by the governor -- how endorsed. Each bill passed by the legislature, except bills proposing amendments to the Montana constitution, bills ratifying proposed amendments to the United States constitution, resolutions, and initiative and referendum measures, shall must be submitted to the governor for his the governor's signature. Each bill must, as soon as it is delivered to the governor, be endorsed as follows: "This bill was received by the governor this .... day of ...., 19.. 20...". The endorsement must be signed by the governor or by an assistant authorized by the governor or by the governor himself."

     Section 8.  Section 5-12-302, MCA, is amended to read:

     "5-12-302.  Fiscal analyst's duties. The legislative fiscal analyst shall:

     (1)  provide for fiscal analysis of state government and accumulate, compile, analyze, and furnish information bearing upon the financial matters of the state that is relevant to issues of policy and questions of statewide importance, including but not limited to investigation and study of the possibilities of effecting economy and efficiency in state government;

     (2)  estimate revenue from existing and proposed taxes;

     (3)  analyze the executive budget and budget requests of selected state agencies and institutions, including proposals for the construction of capital improvements;

     (4)  for the legislative session convening in January 1997, following receipt of the information required in 17-7-122 from the governor and in 17-7-123 from the budget director in a mutually prescribed format, publish the governor's budget and incorporate the information required by 17-7-123 in a combined governor's budget and legislative fiscal analyst's budget analysis presentation. The combined budget and budget analysis presentation must be made available to the legislature prior to the convening date set for a regular session of the legislature. The cost of printing the combined budget and budget analysis presentation must be shared proportionally by the office of budget and program planning and the legislative finance division. This section does not prohibit the legislative fiscal analyst from including any analysis and comments on any portion of the executive budget in the combined budget and budget analysis presentation.

     (5)(4)  make the reports and recommendations that the legislative fiscal analyst considers desirable to the legislature and make reports and recommendations as requested by the legislative finance committee and the legislature;

     (6)(5)  assist committees of the legislature and individual legislators in compiling and analyzing financial information; and

     (7)(6)  assist the revenue oversight committee in performing its revenue estimating duties under 5-18-107(5)."

     Section 9.  Section 7-4-2506, MCA, is amended to read:

     "7-4-2506.  Affidavit required for deputy to receive salary. The board must may not order the payment of the compensation of any a deputy until he the deputy has signed and filed with the county clerk the following affidavit:

     State of Montana

     County of ..........

     I do swear that I have rendered services as deputy .... for the month of ...., 19.. 20..., and that I am entitled to receive the full sum of my compensation for the same those services for my own use and benefit, and that I have not paid, deposited, or assigned or contracted to pay, deposit, or assign any part of such my compensation for the use of any other person or in any way, directly or indirectly, paid or given or contracted to pay or give any reward or compensation for my appointment to office or the emoluments thereof to my principal or to any other person.

............

     Subscribed and sworn to before me this .... day of ...., 19... 20...

............"

     Section 10.  Section 7-4-2512, MCA, is amended to read:

     "7-4-2512.  Statement and affidavit of fees collected. (1) The fees and compensation collected and chargeable for the use of the county in each month must be paid to the county treasurer by the 10th day of the following month and must be accompanied by a statement and copy of the fee book for the preceding month, duly verified by the officer making the payment.

     (2)  The affidavit must be in the following form:

     State of Montana

     County of ..........

     I, ........., of the county of .........., do swear that the fee book in my office contains a true statement in detail of all fees and compensations of every kind and nature for official services rendered by me, paid or chargeable, or by my deputies or assistants for the month of .........., 19.., 20..., and that this fee book shows the full amount received or chargeable in said that month and since my last monthly payment; and that neither myself nor, to my knowledge or belief, any of my deputies or assistants have rendered any official service, except for the county or state, which that is not fully set out in this fee book; and that the foregoing statement is a full, true, and correct copy thereof of the statement.

......................... (Signature)

     Subscribed and sworn to before me this ..... day of .........., 19... 20...

     Seal ........... (Person authorized to take oaths)

.............. (Title or notarial information)"

     Section 11.  Section 7-6-2317, MCA, is amended to read:

     "7-6-2317.  Hearing on county proposed budget -- exception. (1) At least 3 days prior to the adoption of the final budget, the county commissioners shall meet at the time and place designated in the notice provided for in 7-6-2316, at which time any taxpayer or resident of the county may appear and be heard for or against any part of the budget.

     (2)  The hearing must be continued from day to day and must be concluded and the budget approved and adopted on or before the second Monday in August, before the fixing of the tax mill levies by the board.

     (3)  This section does not apply to a county that has adopted the alternative accounting method provided for in Title 7, chapter 6, part 6."

     Section 12.  Section 7-7-2203, MCA, is amended to read:

     "7-7-2203.  Limitation on amount of bonded indebtedness. (1) Except as provided in subsections (2) through (4) and (3), a county may not issue general obligation bonds for any purpose that, with all outstanding bonds and warrants except emergency bonds, will exceed 11.25% of the total of the taxable value of the property in the county, plus the value provided by the department of revenue under 15-36-324(13), to be ascertained by the last assessment for state and county taxes prior to the proposed issuance of bonds, plus, for general obligation bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight property within the county for tax year 1995, for general obligation bonds to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property within the county for tax year 1995, and for general obligation bonds to be issued during fiscal years 1999 through 2008, an additional 33% of the taxable value of class eight property within the county for tax year 1995, in each case of class eight property, multiplied by 11.25%.

     (2)  In addition to the bonds allowed by subsection (1), a county may issue bonds that, with all outstanding bonds and warrants, will not exceed 27.75% of the total of the taxable value of the property in the county subject to taxation, plus the value provided by the department of revenue under 15-36-324(13), when necessary to do so, to be ascertained by the last assessment for state and county taxes, plus, for bonds to be issued during fiscal year 1997, an additional 11% of the taxable value of class eight property within the county for tax year 1995, and for bonds to be issued during fiscal year 1998, an additional 22% of the taxable value of class eight property within the county for tax year 1995.

     (3)(2)  In addition to the bonds allowed by subsections (1) and (2) subsection (1), a county may issue bonds for the construction or improvement of a jail that will not exceed 12.5% of the taxable value of the property in the county subject to taxation, plus the adjustments permitted by 7-7-2101.

     (4)(3)  The limitation in subsection (1) does not apply to refunding bonds issued for the purpose of paying or retiring county bonds lawfully issued prior to January 1, 1932, or to bonds issued for the repayment of tax protests lost by the county."

     Section 13.  Section 7-22-2144, MCA, is amended to read:

     "7-22-2144.  Payment of cost of weed control program. The total cost of such weed control shall within the district must be paid from the noxious weed fund. The cost of controlling such weeds growing along the right-of-way of a state or federal highway shall must, upon the presentation by the board of a verified account of the expenses incurred, be paid from the state highway fund in compliance with 7-14-2132 and any agreement between the board and the department of transportation. Costs attributed to other lands within the district shall must be assessed to and collected from the responsible person as set forth in 7-22-2116 7-22-2124."

     Section 14.  Section 10-2-601, MCA, is amended to read:

     "10-2-601.  State veterans' cemeteries. The department of military affairs shall establish state veterans' cemeteries. A cemetery must be located at Fort William Henry Harrison, Lewis and Clark County, Montana, and at the location chosen pursuant to sections 1 through 6, Chapter 109, Laws of 1997 Miles City."

     Section 15.  Section 13-1-112, MCA, is amended to read:

     "13-1-112.  Rules for determining residence. For registration, voting, or seeking election to the legislature, the residence of any an individual must be determined by the following rules as far as they are applicable:

     (1)  The residence of an individual is where the individual's habitation is fixed and to which, whenever the individual is absent, the individual has the intention of returning.

     (2)  An individual may not gain or lose a residence while kept involuntarily at any public institution, not necessarily at public expense; as a result of being confined in any public prison; or solely as a result of residing on a military reservation.

     (3)  An individual in the armed forces of the United States may not become a resident solely as a result of being stationed at a military facility in the state. An individual may not acquire a residence solely as a result of being employed or stationed at a training or other transient camp maintained by the United States within the state.

     (4)  An individual does not lose residence if the individual goes into another state or other district of this state for temporary purposes with the intention of returning, unless the individual exercises the election franchise in the other state or district.

     (5)  An individual may not gain a residence in a county if the individual comes in for temporary purposes without the intention of making that county the individual's home.

     (6)  If an individual moves to another state with the intention of making it the individual's residence, the individual loses residence in this state.

     (7)  The place where an individual's family resides is presumed to be that individual's place of residence. However, an individual who takes up or continues a residence at a place other than where the individual's family resides with the intention of remaining is a resident of the place where the individual resides.

     (8)  A change of residence may be made only by the act of removal joined with intent to remain in another place."

     Section 16.  Section 13-2-122, MCA, is amended to read:

     "13-2-122.  Charges for registers, elector lists, and mailing labels made available to public. (1) Except as provided in subsections (2) and (3), upon written request, the registrar shall furnish to any elector, for noncommercial use, a copy of the official precinct registers, a current list of registered electors, or mailing labels for registered electors. Upon delivery, the registrar may collect a charge not to exceed the actual cost of the register, list, or mailing labels.

     (2)  If the registrar receives in writing from a law enforcement officer or reserve officer, as defined in 7-32-201, a request that, for security reasons, the officer's and the officer's spouse's residential address, if the same as the officer's, not be disclosed, the registrar may not include the address on any register, list, or mailing labels disseminated pursuant to subsection (1).

     (3)  An election administrator may not include an individual's residential address on any register, list, or mailing labels but shall list only the name or names if the individual requests that the individual's address not be used and the individual proves to the election administrator those matters described in 13-2-115(6)(a)(i) or (6)(a)(ii)(7)(a)(i) or (7)(a)(ii)."

     Section 17.  Section 13-2-221, MCA, is amended to read:

     "13-2-221.  Agency-based registration. (1) Qualified individuals must be given the opportunity to register to vote when applying for or receiving services or assistance:

     (a)  at an agency that provides public assistance;

     (b)  at or through an agency that provides state-funded programs primarily engaged in providing services to persons with disabilities; or

     (c)  at another agency designated by the secretary of state with the consent of the agency.

     (2)  Agency-based registration sites must:

     (a)  distribute application for voter registration forms with each application for services or assistance; and

     (b)  assist an applicant in completing an application for voter registration form, unless the applicant refuses assistance.

     (3)  The completed application for voter registration form must be transmitted by the agency to the election administrator of the county of the elector's residence within the time period specified by 42 U.S.C. 1973gg, et seq.

     (4)  As used in this section, the following definitions apply:

     (a)  "Agency" means a state agency as defined in 2-4-102(1)(a)(2)(a) or an office of a political subdivision.

     (b)  "Political subdivision" means a city, county, consolidated city-county government, or a town."

     Section 18.  Section 13-27-204, MCA, is amended to read:

     "13-27-204.  Petition for the initiative. (1) The following is substantially the form for a petition calling for a vote to enact a law by the initiative:

PETITION TO PLACE INITIATIVE NO.____

ON THE ELECTION BALLOT

     (a)  If 5% of the voters in each of 34 legislative representative districts sign this petition and the total number of voters signing this petition is ....., this measure will appear on the next general election ballot. If a majority of voters vote for this measure at that election, it will become law.

     (b)  We, the undersigned Montana voters, propose that the secretary of state place the following measure on the ........, 19... 20..., general election ballot:

(Title of measure written pursuant to 13-27-312)

(Statement of implication written pursuant to 13-27-312)

     (c)  Voters are urged to read the complete text of the measure, which appears (on the reverse side of, attached to, etc., as applicable) on this sheet. A signature on this petition is only to put the measure on the ballot and does not necessarily mean the signer agrees with the measure.

     (d)

WARNING

     A person who purposefully signs a name other than his/her the person's own to this petition, or who signs more than once for the same issue at one election, or who signs when not a legally registered Montana voter is subject to a $500 fine, 6 months in jail, or both.

     (e)  Each person must is required to sign his/her the person's name and address in substantially the same manner as on his/her the person's voter registry registration card or the signature will not be counted.

     (2)  Numbered lines shall must follow the above heading. Each numbered line shall must contain spaces for the signature, post-office address, legislative representative district number, and printed last name of the signer."

     Section 19.  Section 13-27-206, MCA, is amended to read:

     "13-27-206.  Petition for initiative for constitutional convention. (1) The following is substantially the form for a petition to direct the secretary of state to submit to the qualified voters the question of whether there shall will be a constitutional convention:

PETITION TO PLACE

INITIATIVE NO.____, CALLING FOR

A CONSTITUTIONAL CONVENTION, ON

THE ELECTION BALLOT

     (a)  If 10% of the voters in each of 40 legislative districts sign this petition and the total number of voters signing this petition is ....., the question of whether to have a constitutional convention will appear on the next general election ballot. If a majority of voters vote for the constitutional convention, the legislature will shall call for a constitutional convention at its next session.

     (b)  We, the undersigned Montana voters, propose that the secretary of state place the question of whether to hold a constitutional convention on the ........, 19... 20..., general election ballot:

(Title of the initiative written pursuant to 13-27-312)

(Statement of implication written pursuant to 13-27-312)

     (c)  A signature on this petition is only to put the call for a constitutional convention on the ballot and does not necessarily mean the signer is in favor of calling a constitutional convention.

     (d)

WARNING

     A person who purposefully signs a name other than his/her the person's own to this petition, or who signs more than once for the same issue at one election, or who signs when not a legally registered Montana voter is subject to a $500 fine or 6 months in jail, or both.

     (e)  Each person must is required to sign his/her the person's name and address in substantially the same manner as on his/her the person's voter registry registration card, or the signature will not be counted.

     (2)  Numbered lines shall must follow the above heading. Each numbered line shall must also contain spaces for the signature, post-office address, legislative representative district number, and printed last name of the signer."

     Section 20.  Section 13-27-207, MCA, is amended to read:

     "13-27-207.  Petition for initiative for constitutional amendment. (1) The following is substantially the form for a petition for the an initiative to amend the constitution:

PETITION TO PLACE CONSTITUTIONAL

AMENDMENT NO.____ ON

THE ELECTION BALLOT

     (a)  If 10% of the voters in each of 40 legislative districts sign this petition and the total number of voters signing the petition is ....., this constitutional amendment will appear on the next general election ballot. If a majority of voters vote for this amendment at that election, it will become part of the constitution.

     (b)  We, the undersigned Montana voters, propose that the secretary of state place the following constitutional amendment on the ........, 19... 20..., general election ballot:

(Title of the proposed constitutional amendment

written pursuant to 13-27-312)

(Statement of implication written pursuant to 13-27-312)

     (c)  Voters are urged to read the complete text of the measure, which appears (on the reverse side of, attached to, etc., as applicable) on this sheet. A signature on this petition is only to put the constitutional amendment on the ballot and does not necessarily mean the signer agrees with the amendment.

     (d)

WARNING

     A person who purposefully signs a name other than his/her the person's own to this petition, or who signs more than once for the same issue at one election, or who signs when not a legally registered Montana voter is subject to a $500 fine, 6 months in jail, or both.

     (e)  Each person must is required to sign his/her the person's name and address in substantially the same manner as on his/her the person's voter registry registration card or the signature will not be counted.

     (2)  Numbered lines shall must follow the above heading. Each numbered line shall must contain spaces for the signature, post-office address, legislative representative district number, and printed last name of the signer."

     Section 21.  Section 13-27-302, MCA, is amended to read:

     "13-27-302.  Certification of signatures. An affidavit, in substantially the following form, shall must be attached to each sheet or section submitted to the county official:

     I, (Name name of person who circulated this petition), affirm, or being first sworn, depose and say: swear that I circulated or assisted in circulating the petition to which this affidavit is attached, and that I believe the signatures thereon on the petition are genuine, are the signatures of the persons whose names they purport to be, and are the signatures of Montana electors who are registered at the address following their signature, and that the signers knew the contents of the petition before signing the same petition.

.....

(Signature of petition circulator)

.....

(Address of petition circulator)

Subscribed and sworn to before me this ... day of ....., 19... 20...

.....

Seal (Person authorized to take oaths)

.....

(Title or notarial information)"

     Section 22.  Section 13-27-307, MCA, is amended to read:

     "13-27-307.  Consideration and tabulation of signatures by secretary of state. (1) The secretary of state shall consider and tabulate only such the signatures on petitions as that are certified by the proper county official, and each such certificate is prima facie evidence of the facts stated therein in the certificate. However, the secretary of state may consider and tabulate any signature not certified by the county official that is certified by a notary public of the county in which the signer resides to be the genuine signature of an elector legally qualified to sign the petition.

     (2)  The official certificate of the notary public for any signature not certified as valid by the county official shall must be in substantially the following form:

State of Montana     )

               )     ss.

County of.....      )

     I, ...... (name), a duly qualified and acting notary public in and for the above-named county and state, do hereby certify that I am personally acquainted with each all of the following-named electors whose signatures are affixed to the annexed attached (petition) (copy of a petition) and I know of my own knowledge that they are registered electors of the state of Montana and of the county and legislative district written after their names in the petition and that their post-office addresses are correctly stated therein in the petition.

..... (Names of such electors)

     In testimony whereof, I have hereunto set my hand and official seal this.... day of......, 19... 20...

..... (Signature)

     Seal ..... (Notarial information)"

     Section 23.  Section 13-36-203, MCA, is amended to read:

     "13-36-203.  Form of complaint. (1) A petition or complaint filed under the provisions of this chapter shall be is sufficient if it is in substantially in the following form:

In the District Court of the

.... Judicial District,

for the County of ...., State of Montana.

     A B (or A B and C D), Contestants,

          vs.

     E F, Contestee.

     The petition of the contestant (or contestants) above named above alleges:

     That an election was held (in the state, district, county, or city of ....), on the .... day of ...., A. D. 19.. 20..., for the (nomination of a candidate for) (or election of a) (state the office).

     That .... and .... were candidates at said the election, and the board of canvassers has returned the said .... as being duly nominated (or elected) at said the election.

     That contestant A B voted (or had a right to vote, as the case may be) at said the election (or claims to have had a right to be returned as the nominee or officer elected or nominated at said the election, or was a candidate at said the election, as the case may be), and said that contestant C D (here state in like a similar manner the right of each contestant).

     And said The contestant (or contestants) further allege (here state the facts and grounds on which the contestants rely).

     Wherefore, your The contestants pray ask that it may be determined by the court that said.... was not duly nominated (or elected), and that said the election was void or that said A B or C D, as the case may be, was duly nominated (or elected), and ask for such other and further relief as to that the court may seem just and legal in the premises find appropriate.

     (2)  Said The complaint shall must be verified by the affidavit of one of the petitioners in the manner required by law for the verification of complaints in civil cases."

     Section 24.  Section 13-37-250, MCA, is amended to read:

     "13-37-250.  Voluntary spending limits. (1) (a) The following statement may be used in printed matter and in broadcast advertisements and may appear in the voter information pamphlet prepared by the secretary of state: "According to the Office of the Commissioner of Political Practices, ....... is in compliance with the voluntary expenditure limits established under Montana law."

     (b)  The treasurer of each political committee, as defined in 13-1-101(12)(b)(18)(b), who files a certification on a ballot issue pursuant to 13-37-201 may also file with the commissioner a sworn statement that the committee will not exceed the voluntary expenditure limits of this section. If a sworn statement is made, it must be filed with the commissioner within 30 days of the certification of the political committee.

     (c)  A political committee that has not filed a sworn statement with the commissioner may not distribute any printed matter or pay for any broadcast claiming to be in compliance with the voluntary expenditure limits of this section.

     (d)  A political committee may not use evidence of compliance with the voluntary expenditure limits of this section to imply to the public that the committee has received endorsement or approval by the state of Montana.

     (2)  For the purposes of this section, the expenditures made by a political committee consist of the aggregate total of the following during the calendar year:

     (a)  all committee loans or expenditures made by check or cash; and

     (b)  the dollar value of all in-kind contributions made or received by the committee.

     (3)  In order to be identified as a political committee in compliance with the voluntary expenditure limits of this section, the committee's expenditures, as described in subsection (2), may not exceed $150,000.

     (4)  A political committee that files with the commissioner a sworn statement to abide by the voluntary expenditure limits of this section but that exceeds those limits shall pay a fine of $5,000 to the commissioner. This money must be deposited in a separate fund to be used to support the enforcement programs of the office of the commissioner."

     Section 25.  Section 15-1-112, MCA, is amended to read:

     "15-1-112.  Business equipment tax rate reduction reimbursement to local government taxing jurisdictions. (1) On or before January 1, 1996, for the reduction in payment under subsection (4) and by June 1 of 1996, 1997, and 1998, for all other reimbursements in this section, the department of revenue shall determine a reimbursement amount associated with reducing the tax rate in 15-6-138 and provide that information to each county treasurer. The reimbursement amount must be determined for each local government taxing jurisdiction that levied mills on the taxable value of property described in 15-6-138 in the corresponding tax year. However, the reimbursement does not apply to property described in 15-6-138 that has a reduced tax rate under 15-24-1402.

     (2)  (a) The reimbursement amount to be used as the basis for the payment reduction under subsection (4) is the product of multiplying the tax year 1995 taxable value of property described in 15-6-138 for each local government taxing jurisdiction by the tax year 1995 mill levy for the jurisdiction and then multiplying by 1/9th.

     (b)  (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1996 is the amount determined under subsection (2)(a) unless the tax year 1996 market value of property described in 15-6-138, for the particular local government taxing jurisdiction, is more than the tax year 1995 market value for property described in 15-6-138 in the same jurisdiction.

     (ii) If the tax year 1996 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the reimbursement amount for tax year 1996 is the result of subtracting the simulated 1996 tax from the 1995 tax. The 1995 tax is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in 15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1996 tax for the particular jurisdiction is the actual tax year 1996 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill levy for the particular jurisdiction. If the simulated 1996 tax is greater than the 1995 tax, the reimbursement amount is zero.

     (c)  (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1997 is the amount determined under subsection (2)(a) multiplied by two unless the tax year 1997 market value of property described in 15-6-138, for the particular local government taxing jurisdiction, is more than the tax year 1995 market value for property described in 15-6-138 in the same jurisdiction.

     (ii) If the tax year 1997 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the reimbursement amount for tax year 1997 is the result of subtracting the simulated 1997 tax from the 1995 tax. The 1995 tax is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in 15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1997 tax for the particular jurisdiction is the actual tax year 1997 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill levy for the particular jurisdiction. If the simulated 1997 tax is greater than the 1995 tax, the reimbursement amount is zero.

     (d)  (i) The reimbursement amount for each local government taxing jurisdiction for tax year 1998 is the amount determined under subsection (2)(a) multiplied by three unless the tax year 1998 market value of property described in 15-6-138, for the particular local government taxing jurisdiction, is more than the tax year 1995 market value for property described in 15-6-138 in the same jurisdiction.

     (ii) If the tax year 1998 market value is greater than the tax year 1995 market value for a particular jurisdiction, then the reimbursement amount for tax year 1998 is the result of subtracting the simulated 1998 tax from the 1995 tax. The 1995 tax is the tax for the particular jurisdiction, determined by multiplying the actual taxable valuation of property described in 15-6-138, for tax year 1995, by the tax year 1995 mill levy for the jurisdiction. The simulated 1998 tax for the particular jurisdiction is the actual tax year 1998 taxable value of property described in 15-6-138 multiplied by the tax year 1995 mill levy for the particular jurisdiction. If the simulated 1998 tax is greater than the 1995 tax, the reimbursement amount is zero.

     (3)  (a) For purposes of this section, "local government taxing jurisdiction" means a local government rather than a state taxing jurisdiction that levied mills against property described in 15-6-138, including county governments, incorporated city and town governments, consolidated county and city governments, tax increment financing districts, local elementary and high school districts, local community college districts, miscellaneous districts, and special districts. The term includes countywide mills levied for equalization of school retirement or transportation.

     (b)  The term does not include county or state school equalization levies provided for in 20-9-331, 20-9-333, and 20-9-360 or the university levy provided for in 15-10-106. It also does not include any state levy for welfare programs provided for in 53-2-813.

     (c)  Each tax increment financing district must receive the benefit of the state mill on the incremental taxable value of the district.

     (4)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1996 by an amount equal to 38% of the reimbursement amount determined under subsection (2)(a) for all of the local government taxing jurisdictions in the county.

     (5)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of 1996 by an amount equal to 31% of the reimbursement amount for tax year 1996 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (6)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1997 by an amount equal to 31% of the reimbursement amount for tax year 1996 for all of the local government taxing jurisdictions in the county and by an amount equal to 38% of the reimbursement amount for tax year 1997 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (7)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of 1997 by an amount equal to 31% of the reimbursement amount for tax year 1997 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (8)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1998 by an amount equal to 31% of the reimbursement amount for tax year 1997 for all of the local government taxing jurisdictions in the county and by an amount equal to 38% of the reimbursement amount for tax year 1998 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (9)  County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of 1998 by an amount equal to 31% of the reimbursement amount for tax year 1998 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (10) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of 1999 by an amount equal to 69% of the reimbursement amount for tax year 1998 for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (11) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in December of the years 1999 through 2007 by an amount equal to 31% of the reimbursement amount determined in subsection (13) for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (12) County treasurers shall reduce the county payment to the state for the levy imposed under 20-9-360 in June of the years 2000 through 2008 by an amount equal to 69% of the reimbursement amount determined in subsection (13) for all of the local government taxing jurisdictions in the county, as determined by the department under subsection (2).

     (13)  (a) The reimbursement amount for tax year 1999 and each subsequent tax year for 9 years must be progressively reduced each year by 10% of the reimbursement amount for tax year 1999, according to the following schedule:

     Tax Year Percentage of 1999

Reimbursement Amount

     1999 90

     2000 80

     2001 70

     2002 60

     2003 50

     2004 40

     2005 30

     2006 20

     2007 10

     2008 and following years 0

     (b)  The reimbursement amount for each tax year must be the basis for reducing the amount remitted to the state for the levy imposed under 20-9-360 in December of the same year and June of the following year.

     (14) The county treasurer shall use the funds from the reduced payment to the state for the levy imposed under 20-9-360 to reimburse each local government taxing jurisdiction in the amount determined by the department under subsection (2). The reimbursement must be distributed to funds within local government taxing jurisdictions in the same manner as taxes on property described in 15-6-138 are distributed. The reimbursement in June must be distributed based on the prior year's mill levy, and the reimbursement in December must be based on the current year's mill levy.

     (15) Each local government taxing jurisdiction receiving reimbursements shall consider the amount of reimbursement that will be received and lower the mill levy otherwise necessary to fund the budget by the amount that would otherwise have to be raised by the mill levy.

     (16) A local government taxing jurisdiction that ceases to exist after October 1, 1995, will no longer be considered for revenue loss or reimbursement purposes. A local government taxing jurisdiction that is created after January 1, 1996, will not be considered for revenue loss or reimbursement purposes. If a local government taxing jurisdiction that existed prior to January of 1996 is split between two or more taxing jurisdictions or is annexed to or is consolidated with another taxing jurisdiction, the department shall determine how much of the revenue loss and reimbursement is attributed to the new jurisdictions."

     Section 26.  Section 15-6-135, MCA, is amended to read:

     "15-6-135.  Class five property -- description -- taxable percentage. (1) Class five property includes:

     (a)  all property used and owned by cooperative rural electrical and cooperative rural telephone associations organized under the laws of Montana, except property owned by cooperative organizations described in 15-6-137(1)(b);

     (b)  air and water pollution control equipment as defined in this section;

     (c)  new industrial property as defined in this section;

     (d)  any personal or real property used primarily in the production of gasohol during construction and for the first 3 years of its operation;

     (e)  all land and improvements and all personal property owned by a research and development firm, provided that the property is actively devoted to research and development;

     (f)  machinery and equipment used in electrolytic reduction facilities.

     (2)  (a) "Air and water pollution control equipment" means that portion of identifiable property, facilities, machinery, devices, or equipment designed, constructed, under construction, or operated for removing, disposing, abating, treating, eliminating, destroying, neutralizing, stabilizing, rendering inert, storing, or preventing the creation of air or water pollutants that, except for the use of the item, would be released to the environment. Reduction in pollutants obtained through operational techniques without specific facilities, machinery, devices, or equipment is not eligible for certification under this section.

     (b)  Requests for certification must be made on forms available from the department of revenue. Certification may not be granted unless the applicant is in substantial compliance with all applicable rules, laws, orders, or permit conditions. Certification remains in effect only as long as substantial compliance continues.

     (c)  The department of environmental quality shall promulgate rules specifying procedures, including timeframes for certification application, and definitions necessary to identify air and water pollution control equipment for certification and compliance. The department of revenue shall promulgate rules pertaining to the valuation of qualifying air and water pollution control equipment. The department of environmental quality shall identify and track compliance in the use of certified air and water pollution control equipment and report continuous acts or patterns of noncompliance at a facility to the department of revenue. Casual or isolated incidents of noncompliance at a facility do not affect certification.

     (d)  A person may appeal the certification, classification, and valuation of the property to the state tax appeal board. Appeals on the property certification must name the department of environmental quality as the respondent, and appeals on the classification or valuation of the equipment must name the department of revenue as the respondent.

     (3)  (a) "New industrial property" means any new industrial plant, including land, buildings, machinery, and fixtures, used by new industries during the first 3 years of their operation. The property may not have been assessed within the state of Montana prior to July 1, 1961.

     (b)  New industrial property does not include:

     (i)  property used by retail or wholesale merchants, commercial services of any type, agriculture, trades, or professions unless the business or profession meets the requirements of subsection (4)(b)(v);

     (ii)  a plant that will create adverse impact on existing state, county, or municipal services; or

     (iii)  property used or employed in an industrial plant that has been in operation in this state for 3 years or longer.

     (4)  (a) "New industry" means any person, corporation, firm, partnership, association, or other group that establishes a new plant in Montana for the operation of a new industrial endeavor, as distinguished from a mere expansion, reorganization, or merger of an existing industry.

     (b)  New industry includes only those industries that:

     (i)  manufacture, mill, mine, produce, process, or fabricate materials;

     (ii) do similar work, employing capital and labor, in which materials unserviceable in their natural state are extracted, processed, or made fit for use or are substantially altered or treated so as to create commercial products or materials;

     (iii) engage in the mechanical or chemical transformation of materials or substances into new products in the manner defined as manufacturing in the 1987 Standard Industrial North American Industry Classification System Manual prepared by the United States office of management and budget;

     (iv) engage in the transportation, warehousing, or distribution of commercial products or materials if 50% or more of an industry's gross sales or receipts are earned from outside the state; or

     (v)  earn 50% or more of their annual gross income from out-of-state sales.

     (5)  Class five property is taxed at 3% of its market value."

     Section 27.  Section 15-17-323, MCA, is amended to read:

     "15-17-323.  Assignment of rights -- form. (1) Any A tax sale certificate or other official record in which the county is listed as the purchaser must be assigned by the county treasurer to any person who pays to the county the amount of the delinquent taxes, including penalties, interest, and costs, accruing from the date of delinquency.

     (2)  The assignment made under subsection (1) must be in the form of an assignment certificate in substantially the following form:

     I, .........., the treasurer of .......... County, state of Montana, hereby certify that a tax sale for tax year 19.. 20..., in the county of .........., was held on .......... (date), for the purpose of liquidating delinquent assessments, and I further certify that a property tax lien for delinquent taxes in the following property .......... (insert property description) was offered for sale and that there was no purchaser of the property tax lien. Accordingly, the county was listed as the purchaser as required by 15-17-214, MCA. As of the date of this certificate, the delinquency, including penalties, interest, and costs amounting to $.........., has not been liquidated by the person to whom the property was assessed, nor has the delinquency been otherwise redeemed.

     There having been Because there has been no liquidation of the delinquency or other redemption, I hereby assign all rights, title, and interest of the county of .........., state of Montana, acquired in such property by virtue of the sale to .......... (name and address of assignee) to proceed to obtain a tax deed to the property or receive payment in case of redemption as provided by law.

     Witness my hand and official seal of office this .......... day of .........., 19... 20...

..... County Treasurer

..... County

     (3)  An assignment made by a purchaser other than the county, by an assignee of the county, or by a previous assignee may be made for any consideration whatsoever. An assignment so made is legal and binding only upon filing with the county treasurer a statement that the purchaser's or other assignee's interest in the property has been assigned. The statement must contain:

     (a)  the name and address of the new assignee;

     (b)  the name and address of the original purchaser of the tax sale certificate;

     (c)  the name and address of each previous assignee, if any;

     (d)  a description of the property upon which the property tax lien was issued, which description must contain the same information as contained in the tax sale certificate or assignment certificate, as appropriate;

     (e)  the signature of the party, be it purchaser or assignee, making the assignment;

     (f)  the signature of the new assignee; and

     (g)  the date on which the statement was signed.

     (4)  If the certificate described in subsection (1) or the statement described in subsection (3) is lost or destroyed, the county treasurer shall, upon adequate proof and signed affidavit by the assignee that loss or destruction has occurred, issue a duplicate certificate to the assignee.

     (5)  The provisions of this section apply to any sale of land for which a treasurer's deed was not issued on or before March 5, 1917, or for which a tax deed was not issued on or before April 23, 1987, and the holder of any certificate described in subsection (1) has the same rights, powers, and privileges with regard to securing a deed as any purchaser of land at a tax sale may now have."

     Section 28.  Section 15-24-602, MCA, is amended to read:

     "15-24-602.  Determining insurance company taxable property. In computing the taxable property of insurance companies organized under the laws of Montana, there must be deducted therefrom:

     (1)  the value of the real property on which the company pays taxes, if the real estate is assessed to the company as other real estate;

     (2)  the legal reserve required by the laws of Montana or by the insurance department of Montana for the protection of policyholders;

     (3)  all assets not admitted as such by the state or by the insurance department of Montana;

     (4)  debts and liabilities as may be that are due or owing by the company; and

     (5)  the value of a title plant owned by a title insurer or a title agent insurance producer, as those terms are defined in 33-25-105."

     Section 29.  Section 15-24-1401, MCA, is amended to read:

     "15-24-1401.  Definitions. The following definitions apply to 15-24-1402 unless the context requires otherwise:

     (1)  "Expansion" means that the industry has added after July 1, 1987, at least $50,000 worth of qualifying improvements or modernized processes to its property within the same jurisdiction either in the first tax year in which the benefits provided for in 15-24-1402 are to be received or in the preceding tax year.

     (2)  "Industry" includes but is not limited to a firm that:

     (a)  engages in the mechanical or chemical transformation of materials or substances into products in the manner defined as manufacturing in the 1972 Standard Industrial North American Industry Classification System Manual prepared by the United States office of management and budget;

     (b)  engages in the extraction or harvesting of minerals, ore, or forestry products;

     (c)  engages in the processing of Montana raw materials such as minerals, ore, agricultural products, and forestry products;

     (d)  engages in the transportation, warehousing, or distribution of commercial products or materials if 50% or more of the industry's gross sales or receipts are earned from outside the state; or

     (e)  earns 50% or more of its annual gross income from out-of-state sales.

     (3)  "New" means that the firm is new to the jurisdiction approving the resolution provided for in 15-24-1402(2) and has invested after July 1, 1987, at least $125,000 worth of qualifying improvements or modernized processes in the jurisdiction either in the first tax year in which the benefits provided for in 15-24-1402 are to be received or in the preceding tax year. New industry does not include property treated as new industrial property under 15-6-135.

     (4)  "Qualifying" means meeting all the terms, conditions, and requirements for a reduction in taxable value under 15-24-1401 and 15-24-1402 and this section."

     Section 30.  Section 15-24-2402, MCA, is amended to read:

     "15-24-2402.  Definitions. Unless the context requires otherwise, in this part, the following definitions apply:

     (1)  "Expansion" means that after December 31, 1991, the industry has added qualifying property within the jurisdiction either in the first tax year in which the taxable value decrease provided for in 15-24-2403 is to be received or in the preceding tax year. Expansion does not include property that:

     (a)  has qualified for the tax exemption under 15-24-1402; or

     (b)  will create an adverse impact on existing state, county, or municipal services.

     (2)  "Industry" is a firm that engages in the mechanical or chemical transformation of materials or substances into new products in the manner defined as manufacturing in the 1987 Standard Industrial North American Industry Classification System Manual prepared by the United States office of management and budget and that engages in the:

     (a)  processing of Montana raw materials, such as minerals, ore, oil, gas, coal, agricultural products, and forestry products; or

     (b)  processing of semifinished products produced in Montana that are used by the industry as a raw material in further manufacturing.

     (3)  "Qualifying employee" means a person:

     (a)  whose job was created as a result of expansion; and

     (b)  whose position pays not less than three-quarters of the amount of the average wage as determined by the quarterly statistical report published by the department of labor and industry.

     (4)  "Qualifying property" means machinery and equipment that result in the hiring of qualifying employees used for the manufacture or processing of products described in subsection (2)."

     Section 31.  Section 15-31-121, MCA, is amended to read:

     "15-31-121.  Rate of tax -- minimum tax -- surtax. (1) Except as provided in subsection (2), the percentage of net income to be paid under 15-31-101 shall be is 6 3/4% of all net income for the taxable period. The rate set forth in this subsection (1) shall be effective for all taxable years ending on or after February 28, 1971. This rate is retroactive to and effective for all taxable years ending on or after February 28, 1971.

     (2)  For a taxpayer making a water's-edge election, the percentage of net income to be paid under 15-31-101 shall be is 7% of all taxable net income for the taxable period.

     (3)  Every Each corporation subject to taxation under this part shall, in any event, pay a minimum tax of not less than $50.

     (4)  After the amount of tax liability has been computed under subsections (1) through (3), each corporation subject to taxation under this part shall add, as a surtax for tax year 1988, 4% of the tax liability, and the amount so derived is the amount due the state."

     Section 32.  Section 15-31-124, MCA, is amended to read:

     "15-31-124.  New or expanded industry credit -- definitions. As used in 15-31-124 through 15-31-127, the following definitions apply:

     (1)  "Department" means the department of revenue.

     (2)  "Expanding" means to expand or diversify a present operation to increase total full-time jobs by 30% or more.

     (3)  "Manufacturing" means the process of mechanical or chemical transformation of materials or substances into new products, as described in the standard industrial classification manual of 1972 North American Industry Classification System Manual prepared by the United States office of management and budget of the United States.

     (4)  (a) "New corporation" means a corporation engaging in manufacturing for the first time in this state. A new corporation includes:

     (i)  a manufacturing corporation existing outside of Montana that enters into manufacturing in the state;

     (ii) a nonmanufacturing corporation within the state that enters into manufacturing in the state; or

     (iii) a corporation newly formed in Montana and entering into manufacturing operations in the state.

     (b)  A new corporation does not include:

     (i)  a corporation reorganized from a previously existing corporation that has been engaged in manufacturing in this state; or

     (ii) a corporation created as a parent, subsidiary, or affiliate of an existing corporation that has been engaged in manufacturing in this state of which 20% or more of the ownership is held by the corporation or by the stockholders of the corporation."

     Section 33.  Section 15-31-702, MCA, is amended to read:

     "15-31-702.  Distribution of corporation license taxes collected from banks or savings and loan associations. (1) All corporation license taxes, interest, and penalties collected from banks and savings and loan associations must, in accordance with the provisions of 15-1-501, be distributed in the following manner:

     (a)  Twenty percent must be allocated as provided in 15-1-501(3)(1)(b).

     (b)  Eighty percent is statutorily appropriated, as provided in 17-7-502, for allocation to the various taxing jurisdictions within the county in which a bank or savings and loan association is located.

     (2)  The corporation license taxes, interest, and penalties distributed under subsection (1)(b) must be allocated to each taxing jurisdiction in the proportion that its mill levy for that fiscal year bears to the total mill levy of the taxing authorities of the district in which the bank or savings and loan association is located.

     (3)  "Taxing jurisdictions" means, for the purposes of this section, all taxing authorities within a county permitted under state law to levy mills against the taxable value of property in the taxing district in which the bank or savings and loan association is located.

     (4)  If a return filed by a bank or savings and loan association involves branches or offices in more than one taxing jurisdiction, the department shall provide a method by rule for equitable distribution among those taxing jurisdictions.

     (5)  All corporation license taxes paid from consolidated returns in which 50% or more of the income is from banks or savings and loan associations must be distributed as provided in subsection (1).

     (6)  (a) The department shall annually distribute to each county having a bank or savings and loan association a percentage of the total amount collected pursuant to subsection (1), including penalties, interest, or additional taxes from assessments and less any refunds, from July 1 of the previous year through June 30 of the current year. The distribution must be sent to each county treasurer for distribution to the taxing jurisdictions in each district on or before August 1 of each year.

     (b)  The percentage for distribution must be calculated by taking an average of the ratios of total bank tax liability within a school district to total bank tax liability for all school districts in which a bank or savings and loan association is located in each of the 5 years preceding the current year. The total tax liability must be computed for each year by including all returns filed during that year and all amended returns and adjustments to tax filings made by the department during that year, no matter to which tax year the amended return actually applied."

     Section 34.  Section 15-35-103, MCA, is amended to read:

     "15-35-103.  (Temporary) Severance tax -- rates imposed. (1) Subject to the provisions of 15-35-202 allowing a new coal production incentive tax credit, a A severance tax is imposed on each ton of coal produced in the state in accordance with the following schedule:

Heating quality     Surface     Underground

(Btu per pound     Mining     Mining

of coal):

Under 7,000 10% of value     3% of value

7,000 and over     15% of value     4% of value

     (2)  "Value" means the contract sales price.

     (3)  The formula that yields the greater amount of tax in a particular case must be used at each point on the schedule.

     (4)  A person is not liable for any severance tax upon 50,000 tons of the coal that the person produces in a calendar year, except that if more than 50,000 tons of coal are produced in a calendar year, the producer is liable for severance tax upon all coal produced in excess of the first 20,000 tons.

     (5)  In addition to the exemption described in subsection (4), a person is not liable for any severance tax upon up to 2 million tons of coal that the person produces as feedstock for coal enhancement facilities in a calendar year, except if more than 2 million tons of coal are produced as feedstock for coal enhancement facilities in a calendar year, the producer is liable for severance tax on all coal produced as feedstock for these facilities in excess of the first 2 million tons.

     (6)  A new coal production incentive tax credit may be claimed on certain coal as provided in 15-35-202. (Terminates December 31, 2005--sec. 5, Ch. 318, L. 1995.)

     15-35-103.  (Effective January 1, 2006) Severance tax -- rates imposed. (1) Subject to the provisions of 15-35-202 allowing a new coal production incentive tax credit, a A severance tax is imposed on each ton of coal produced in the state in accordance with the following schedule:

     (a)  After June 30, 1988, and before July 1, 1990:

Heating quality     Surface     Underground

(Btu per pound     Mining     Mining

   of coal):

Under 7,000     17% of value     3% of value

7,000 and over     25% of value     4% of value

     (b)  After June 30, 1990, and before July 1, 1991:

Heating quality     Surface     Underground

(Btu per pound     Mining     Mining

   of coal):

Under 7,000     13% of value     3% of value

7,000 and over     20% of value     4% of value

     (c)  After June 30, 1991:

Heating quality     Surface     Underground

(Btu per pound     Mining     Mining

   of coal):

Under 7,000     10% of value     3% of value

7,000 and over     15% of value     4% of value

     (2)  "Value" means the contract sales price.

     (3)  The formula which that yields the greater amount of tax in a particular case shall must be used at each point on these schedules the schedule.

     (4)  A person is not liable for any severance tax upon 50,000 tons of the coal he that the person produces in a calendar year, except that if he produces more than 50,000 tons of coal are produced in a calendar year, he will be the producer is liable for severance tax upon all coal produced in excess of the first 20,000 tons.

     (5)  A new coal production incentive tax credit may be claimed on certain coal as provided in 15-35-202."

     Section 35.  Section 15-36-314, MCA, is amended to read:

     "15-36-314.  Deficiency assessment -- local government severance tax deficiency assessment -- review -- interest. (1) When the department determines that the amount of the tax due, including the amount due for the local government severance tax, is greater than the amount disclosed by a return, it shall mail to the taxpayer a notice, pursuant to 15-1-211, of the additional tax proposed to be assessed. The notice must contain a statement that if payment is not made, a warrant for distraint may be filed. The taxpayer may seek review of the determination pursuant to 15-1-211.

     (2)  (a) The department shall collect deficiency assessments of the local government severance tax in the same manner as it collects oil and natural gas production tax deficiency assessments.

     (b)  Any local government severance taxes that are collected on oil and natural gas production occurring after December 31, 1988, and before January 1, 1995, must be treated as current revenue for the purposes of distribution and must be distributed pursuant to 15-36-324(8)(a)(11)(a).

     (3)  A deficiency assessment must bear interest until paid at the rate of 1% a month or fraction of a month, computed from the original due date of the return."

     Section 36.  Section 15-36-315, MCA, is amended to read:

     "15-36-315.  Credit or refund for overpayment -- refund from county -- interest on overpayment. (1) If the department determines that the amount of tax, penalty, or interest due for any taxable period is less than the amount paid, the amount of the overpayment must be credited against any tax, penalty, or interest then due from the taxpayer and the balance refunded to the taxpayer or its successor through reorganization, merger, or consolidation or to its shareholders upon dissolution.

     (2)  (a) The amount of an overpayment credited against any tax, penalty, or interest due for any tax period or any refund or portion of a refund, which has not been distributed pursuant to 15-36-324, must be withheld from the current distribution made pursuant to 15-36-324.

     (b)  If the amount of the refund reduces the amount of tax previously distributed pursuant to 15-36-324 and if the current distribution, if any, is insufficient to offset the refund, then the department shall demand the amount of the refund from the county to which the tax was originally distributed. The county treasurer shall remit the amount demanded within 30 days of the receipt of notice from the department.

     (3)  A refund that is paid by the department for an overpayment of the local government severance tax for oil or natural gas production occurring after December 31, 1988, and before January 1, 1995, must be treated as issued for the current distribution period for distribution purposes, and the refund must be apportioned in the same manner as taxes are distributed pursuant to 15-36-324(8)(a)(11)(a).

     (4)  Except as provided in subsection (5), interest must be allowed on overpayments at the same rate as is charged on deficiency assessments provided in 15-36-314 beginning from the due date of the return or from the date of overpayment, whichever date is later, to the date on which the department approves refunding or crediting of the overpayment.

     (5)  (a) Interest may not accrue during any period in which the processing of a claim for refund is delayed more than 30 days by reason of failure of the taxpayer to furnish information requested by the department for the purpose of verifying the amount of the overpayment.

     (b)  Interest is not allowed:

     (i)  if the overpayment is refunded within 6 months from the date on which the return is due or from the date on which the return is filed, whichever is later; or

     (ii) if the amount of interest is less than $1."

     Section 37.  Section 15-50-101, MCA, is amended to read:

     "15-50-101.  Definitions. As used in this chapter, the following definitions apply:

     (1)  "Department" means the department of revenue as provided in 2-15-1301.

     (2)  "Gross receipts" means all receipts from sources within the state, whether in the form of money, credits, or other valuable consideration, received from, engaging in, or conducting a business, without deduction on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid, taxes, losses, or any other expense whatsoever. However, gross receipts does not include cash discounts allowed and taken on sales and sales refunds, either in cash or by credit, uncollectible accounts written off from time to time, or payments received in final liquidation of accounts included in the gross receipts of any previous return made by the person.

     (3)  (a) "Public contractor" means any person who submits a proposal to perform or enters into a contract for performing public construction work in the state with the federal government or state of Montana; with any board, commission, or department of the state; with any board of county commissioners, any city or town council, or any agency of any of them; or with any other public board, body, commission, or agency authorized to let or award contracts for any public work when the contract cost, value, or price of which exceeds the sum of $5,000.

     (b)  The term public contractor includes subcontractors undertaking to perform work within their field of contracting and within the limits of their class of license covered by the original contract or any part of the contract when the contract cost, value, or price of which exceeds the sum of $5,000."

     Section 38.  Section 15-61-102, MCA, is amended to read:

     "15-61-102.  Definitions. As used in this chapter, unless it clearly appears otherwise, the following definitions apply:

     (1)  "Account administrator" means:

     (a)  a state or federally chartered bank, savings and loan association, credit union, or trust company;

     (b)  a health care insurer as defined in 33-22-125;

     (c)  a certified public accountant licensed to practice in this state pursuant to Title 37, chapter 50;

     (d)  an employer if the employer has a self-insured health plan under ERISA;

     (e)  the account holder of or an employee for whose benefit the account in question is established;

     (f)  a broker, insurance producer, or investment adviser regulated by the commissioner of insurance;

     (g)  an attorney licensed to practice law in this state;

     (h)  a licensed public accountant or a person who is an enrolled agent allowed to practice before the United States internal revenue service.

     (2)  "Account holder" means an individual who is a resident of this state and who establishes a medical care savings account or for whose benefit the account is established.

     (3)  "Dependent" means the spouse of the employee or account holder or a child of the employee or account holder if the child is:

     (a)  under 23 years of age and enrolled as a full-time student at an accredited college or university or is under 19 years of age;

     (b)  legally entitled to the provision of proper or necessary subsistence, education, medical care, or other care necessary for the health, guidance, or well-being of the child and is not otherwise emancipated, self-supporting, married, or a member of the armed forces of the United States; or

     (c)  mentally or physically incapacitated to the extent that the child is not self-sufficient.

     (4)  "Eligible medical expense" means an expense paid by the employee or account holder for medical care defined by 26 U.S.C. 213(d) for the employee or account holder or a dependent of the employee or account holder.

     (5)  "Employee" means an employed individual for whose benefit or for the benefit of whose dependents a medical care savings account is established. The term includes a self-employed individual.

     (6)  "ERISA" means the Employee Retirement Income Security Act of 1974, Public Law 93-406.

     (7)  "Medical care savings account" or "account" means an account established with an account administrator in this state pursuant to 15-61-201."

     Section 39.  Section 15-62-204, MCA, is amended to read:

     "15-62-204.  Higher education expenses -- exemption from taxable income. A person may in any year deposit into an individual trust or savings account up to $3,000 that is deductible for tax purposes under 15-30-111(2)(k)(2)(l) to pay the qualified higher education expenses for the benefit of a designated beneficiary."

     Section 40.  Section 16-4-202, MCA, is amended to read:

     "16-4-202.  Resort retail all-beverages licenses. (1) It is the intent and purpose of this section to encourage the growth of quality recreational resort facilities in undeveloped areas of the state and to provide for the orderly growth of existing recreational sites by the establishment of resort areas within which retail all-beverages licenses may be issued by the department under the terms of this section. In addition to the licenses set forth in this code, the department may issue resort retail all-beverages licenses in a resort area.

     (2)  (a) For the purposes of this section, "resort area" means a recreational facility meeting the qualifications determined by the department and as otherwise provided in this section.

     (b)  The term does not include any land or improvements that lie wholly within the boundaries of an incorporated city or town.

     (3)  The department shall determine that the area for which licenses are to be issued is a resort area pursuant to rules.

     (4)  (a) In addition to the other requirements of this code, a resort area, for the purposes of qualification for the issuance of a resort retail all-beverages license, must:

     (i) have a current actual valuation of resort or recreational facilities, including land and improvements, of not less than $500,000, at least half of which valuation must be for a structure or structures within the resort area;

     (ii) be under the sole ownership or control of one person or entity at the time of the filing of the resort area plat referred to in subsection (5); and

     (iii) contain a minimum of 50 acres of land.

     (b)  For the purposes of this section, "control" means land or improvements that are owned or that are held under contract, lease, option, or permit.

     (5)  The resort area must be determined by the resort area developer or landowner by a plat setting forth the resort area boundaries and designating the ownership of the lands within the resort area. The plat must be verified by the resort area developer or landowner and must be filed with the department prior to the filing of any applications for resort retail all-beverages licenses within the resort area. The plat must show the location and general design of the buildings and other improvements existing or to be built in the resort area. A master plan for the development of the resort area may be filed by the resort area developer in satisfaction of this section.

     (6)  Within 7 days after the plat is filed, the department shall schedule a public hearing to be held in the proposed area to determine whether the facility proposed by the resort area developer or landowner is a resort area. At least 30 days prior to the date of the hearing, the department shall publish notice of the hearing in a newspaper published in the county or counties in which the resort area is located, once a week for 4 consecutive weeks. The notice must include a description of the proposed resort area. Each resort area developer or landowner shall, at the time of filing an application, pay to the department an amount sufficient to cover the costs of publication.

     (7)  Any person may present, in person or in writing, a statement to the department at the hearing in opposition to or support of the plat.

     (8)  Within 30 days after the hearing, the department shall accept or reject the plat. If the plat is rejected, the department shall state its reasons and set forth the conditions, if any, under which the plat will be accepted. The decision of the department may be reviewed pursuant to the review procedure set forth in 16-4-406.

     (9)  Once filed with the department, the boundaries of a resort area may not be changed without:

     (a)  a hearing, noticed and conducted in the same manner as provided in subsections (6) and (7); and

     (b)  the prior approval of the department, determined according to public convenience and necessity.

     (10) (a) When the department has accepted a plat and a given resort area has been determined, applications may be filed with the department for the issuance of resort retail all-beverages licenses within the resort area.

     (b)  Each applicant shall submit plans showing the location, appearance, and floor plan of the premises for which application for a resort retail all-beverages license is made.

     (c)  If an applicant otherwise qualifies for a resort retail all-beverages license but the premises to be licensed are still in construction or are otherwise incomplete at the time that application is made, the department shall issue a letter stating that the license will be issued at the time that the qualifications for a licensed premises have been met. The letter must set forth specific time limitations and requirements that the department may establish.

     (11) In addition to the restrictions on sale or transfer of a license as provided in 16-4-204 and 16-4-404, a resort retail all-beverages license may not be sold or transferred for operation at a location outside of the boundaries of the resort area.

     (12) A resort retail all-beverages license is [not] not subject to the quota limitations set forth in 16-4-201, and if the requirements of this section have been met, a resort retail all-beverages license must be issued by the department on the basis that the department has determined that the license is justified by public convenience and necessity, in accordance with the procedure required in 16-4-207."

     Section 41.  Section 16-4-207, MCA, is amended to read:

     "16-4-207.  Notice of application -- investigation -- publication -- protest. (1) When an application has been filed with the department for a license to sell alcoholic beverages at retail or to transfer the location of a retail license, the department shall review the application for completeness and, based upon review of the application and any other information supplied to the department, determine whether the applicant or the premises to be licensed meets criteria provided by law. The department may make one request for additional information necessary to complete the application. The application is considered complete when the applicant furnishes the application information requested by the department. If the applicant does not provide the additional application information within 60 days of the department's request, the department shall terminate the application and return it to the applicant with an explanation of why the application was terminated. The terminated application is not a denial, and the premises identified in the application is are not subject to the provisions of 16-4-413. An applicant whose application is terminated may subsequently submit a new application. When the application is complete, the department shall request that the department of justice investigate the application as provided in 16-4-402. If the department does not discover a basis to deny the application within 30 days after the department requests the investigation by the department of justice, the department shall publish in a newspaper of general circulation in the city, town, or county from which the application comes a notice that the applicant has made application for a retail on-premises license or a transfer of location and that protests may be made against the approval of the application by a person who has extended credit to the transferor or by residents of the county from which the application comes or adjoining Montana counties. Protests may be mailed to a named administrator in the department of revenue within 10 days after the final notice is published. Notice of application for a new license must be published once a week for 4 consecutive weeks. Notice of application for transfer of ownership or location of a license must be published once a week for 2 consecutive weeks. Notice may be substantially in the following form:

NOTICE OF APPLICATION FOR RETAIL

ALL-BEVERAGES LICENSE

     Notice is given that on the .... day of ...., 19.. 20..., one (name of applicant) filed an application for a retail all-beverages license with the Montana department of revenue, to be used at (describe location of premises where beverages are to be sold). A person who has extended credit to the transferor and residents of ...... counties may protest against the approval of the application. Each protestor is required to mail a letter that contains in legible print the protestor's full name, mailing address, and street address. Each letter must be signed by the protestor. A protest petition bearing the names and signatures of persons opposing the approval of an application may not be considered as a protest. Protests may be mailed to ...., department of revenue, Helena, Montana, on or before the .... day of ...., 19... 20...

     Dated ..................     

Signed

.................

ADMINISTRATOR

     (2)  Each applicant shall, at the time of filing an application, pay to the department an amount sufficient to cover the costs of publishing the notice.

     (3)  (a) If the administrator receives no written protests, the department may approve the application without holding a public hearing.

     (b)  A response to a notice of opportunity to protest an application may not be considered unless the response is a letter satisfying all the requirements contained in the notice in subsection (1).

     (c) If the department receives sufficient written protests that satisfy the requirements in subsection (1) against the approval of the application, the department shall hold a public hearing as provided in subsection (4).

     (4)  (a) If the department receives at least one protest but less than the number of protests required for a public convenience and necessity determination as specified in subsection (4)(c), the department shall schedule a public hearing to be held in Helena, Montana, to determine whether the protest presents sufficient cause to deny the application based on the qualifications of the applicant as provided in 16-4-401 or on the grounds for denial of an application provided for in 16-4-405, exclusive of public convenience and necessity. The hearing must be governed by the provisions of Title 2, chapter 4, part 6.

     (b)  If the department receives the number of protests required for a public convenience and necessity determination as specified in subsection (4)(c) and the application is for an original license or for a transfer of location, the department shall schedule a public hearing to be held in the county of the proposed location of the license to determine whether the protest presents sufficient cause to deny the application based on the qualifications of the applicant as provided in 16-4-401 or on the grounds for denial of an application provided for in 16-4-405 including public convenience and necessity. The hearing must be governed by the provisions of Title 2, chapter 4, part 6.

     (c)  The minimum number of protests necessary to initiate a public hearing to determine whether an application satisfies the requirements for public convenience and necessity, as specified in 16-4-203, for the proposed premises located within a quota area described in 16-4-201 must be 25% of the quota for all-beverages licenses determined for that quota area according to 16-4-201(1), (2), and (5) but in no case less than two. The minimum number of protests determined in this manner will apply only to applications for either on-premises consumption beer or all-beverages licenses."

     Section 42.  Section 16-10-403, MCA, is amended to read:

     "16-10-403.  Revocation or suspension of license -- civil penalty. (1) The department may revoke or suspend the license of, impose a civil penalty not to exceed $500 on, or order any combination of revocation, suspension, and penalty to be imposed on any licensed wholesaler or retailer upon sufficient cause appearing of the violation of this chapter or upon the failure of the licensee to comply with any of the provisions of this chapter.

     (2)  A license may not be suspended or revoked except upon notice to the licensee and after a hearing prescribed by the department at its principal office. The department, upon a finding by it that the licensee has failed to comply with any provisions of this chapter or any rule promulgated under this chapter, shall, in the case of a first offender, suspend the license of the licensee for a period of not less than 5 or more than 20 consecutive business days, impose a civil penalty in an amount not to exceed $500, or order both the suspension and the penalty. In the case of a second or plural offender, the department shall suspend the license for a period of not less than 20 consecutive business days or more than 12 months, impose a civil penalty in an amount not to exceed $500, or order both the suspension and the penalty. In the event the department finds the offender has been guilty of willful and persistent violations, it may revoke the licensee's license and, in its discretion, may impose a civil penalty in an amount not to exceed $500.

     (3)  Any person whose license has been revoked may apply to the department at the expiration of 1 year for a reinstatement of the license. The license may be reinstated by the department if it appears to the satisfaction of the department that the licensee will comply with the provisions of this chapter and the rules promulgated under this chapter.

     (4)  A person whose license has been suspended or revoked may not sell cigarettes or permit cigarettes to be sold during the period of the suspension or revocation on the premises occupied by the person or upon other premises controlled by the person or others or in any other manner or form whatever. A disciplinary proceedings proceeding or action is not barred or abated by the expiration, transfer, surrender, continuance, renewal, or extension of any license issued under the provisions of the cigarette tax law, as provided in [articles of chapter 11 of the Revised Codes of Montana, 1947].

     (5)  Any determination by the department and any order of suspension or revocation of a license or refusal to reinstate a license after revocation is reviewable by the court in a proper case and in proceedings as provided by the procedural law of this jurisdiction."

     Section 43.  Section 17-1-505, MCA, is amended to read:

     "17-1-505.  Review of dedicated revenue provisions. (1) Each interim, the legislative finance committee shall review each dedicated revenue provision not exempted under subsection (4) and the principles of revenue dedication set forth in 17-1-507 to ensure that legislative policy is clearly stated. The committee shall also carry out the review prescribed by subsection (4).

     (2)  The legislature recognizes that dedicated revenue provisions are subject to review by:

     (a)  the office of budget and program planning in the development and implementation of the executive budget and analysis of legislation;

     (b)  the legislative finance fiscal division in analyzing the executive budget;

     (c)  the legislative services division in drafting legislation;

     (d)  the legislative auditor in auditing agencies; and

     (e)  the department of administration in performing the functions provided for in 17-2-106 and 17-2-111.

     (3)  To avoid unnecessary use of dedicated revenue provisions, the entities listed in subsection (2) shall, in the course of current duties, consider the principles in 17-1-507 and the criteria listed in this subsection for each new or existing dedicated revenue provision. A dedicated revenue provision should not give a program or activity an unfair advantage for funding. The expenditures from a dedicated revenue provision must be based on requirements for meeting a legislatively established outcome. Statutorily mandated programs or activities funded through dedicated revenue provisions from general revenue sources must be reviewed to the same extent as programs or activities funded from the general fund. The use of a dedicated revenue provision may be justified if it satisfies one or more of the following:

     (a)  The program or activity funded provides direct benefits for those who pay the dedicated tax, fee, or assessment, and the tax, fee, or assessment is commensurate with the costs of the program or activity.

     (b)  The use of the dedicated revenue provision provides special information or other advantages that could not be obtained if the revenue were allocated to the general fund.

     (c)  The dedicated revenue provision provides program funding at a level equivalent to the expenditures established by the legislature.

     (d)  The dedicated revenue provision involves collection and allocation formulas that are appropriate to the present circumstances and current priorities in state government.

     (e)  The dedicated revenue provision does not impair the legislature's ability to scrutinize budgets, control expenditures, and establish priorities for state spending.

     (f)  The dedicated revenue provision results in an appropriate projected ending fund balance.

     (g)  The dedicated revenue provision fulfills a continuing, legislatively recognized need.

     (h)  The dedicated revenue provision does not result in accounting or auditing inefficiency.

     (4)  The committee shall establish procedures to facilitate a biennial review and evaluation of dedicated revenue provisions. If the review determines that the revenue dedication is constitutionally mandated, is for debt service, funds emergency services, or is a user fee that is designed to provide direct benefits for those who pay the dedicated tax, fee, or assessment in an amount commensurate with the benefits provided, the revenue dedication may be exempt from future review.

     (5)  Upon completion of the review, the committee shall report a summary of its findings to the legislature, including its recommendation of termination or extension, with or without modification, of the dedicated revenue provision. The summary must include the purpose of the revenue dedication, the source of funding, the activity funded, the number of personnel associated with the activity, and any balance in the dedicated revenue fund. The summary must state the reason why the revenue dedication is exempt from future review."

     Section 44.  Section 17-1-508, MCA, is amended to read:

     "17-1-508.  Review of statutory appropriations. (1) Each interim, the legislative finance committee shall review each statutory appropriation that is contained in a section listed in 17-7-502 and that is not exempted under subsection (6) of this section and shall review the guidelines set forth in subsection (4) to eliminate statutory appropriations that no longer fulfill a legislative need and to ensure that legislative policy is clearly stated concerning the use of statutory appropriations.

     (2)  Each biennium, the office of budget and program planning shall, in development of the executive budget, identify instances in which statutory appropriations in current law do not appear consistent with the guidelines set forth in subsection (4).

     (3)  As part of each agency audit, the legislative auditor shall review statutory appropriations to the agency and report instances in which they do not appear consistent with the guidelines set forth in subsection (4).

     (4)  The review of statutory appropriations must determine whether a statutory appropriation meets the requirements of 17-7-501 17-7-502. A statutory appropriation from a continuing and reliable source of revenue may not be used to fund administrative costs. In reviewing and establishing statutory appropriations, the legislature shall consider the following guidelines. A statutory appropriation may be considered appropriate if:

     (a)  the fund or use requires an appropriation;

     (b)  the money is not from a continuing, reliable, and estimable source;

     (c)  the use of the appropriation or the expenditure occurrence