Helena, Montana Senate Chambers

January 22, 1997 State Capitol

Senate convened at 3:00 p.m. President Aklestad presiding. Invocation by Reverend Tom Banks. Pledge of Allegiance to the Flag.

Roll call. All members present. Quorum present.

BILLS AND JOURNAL (Miller, Chairman): 1/22/97

SB 107, SB 117, SB 132, SB 157, SB 158, SB 160, SB 161, SB 205, SB 206, SB 207, SJR 4, HB 30,

HB 57.

Signed by the Speaker of the House at 3:09 p.m., January 22, 1997: SB 18.

HIGHWAYS & TRANSPORTATION (Mohl, Chairman): 1/21/97

SB 29, introduced bill, be amended as follows:

And, as amended, do pass. Report adopted.

JUDICIARY (Crippen, Chairman): 1/22/97

SB 31, introduced bill, be amended as follows:

And, as amended, do pass. Report adopted.

SB 167, introduced bill, do pass. Report adopted.

LOCAL GOVERNMENT (Beck, Chairman): 1/22/97

SB 130, introduced bill, do pass. Report adopted.

STATE ADMINISTRATION (Hargrove, Chairman): 1/22/97

SB 131, introduced bill, be amended as follows:

(a)

(b) 50 acres to be used as a site in the district for a high school"

And, as amended, do pass. Report adopted.

TAXATION (Devlin, Chairman): 1/22/97

SB 7, introduced bill, do pass. Report adopted.

SB 100, introduced bill, be amended as follows:

"15-44-103.   Legislative intent -- value of forest lands -- valuation zones. (1) In order to encourage landowners of private forest lands to retain and improve their holdings of forest lands, to promote better forest practices, and to encourage the investment of capital in reforestation, forest lands must be classified and assessed under the provisions of this section.

(2)  The forest productivity value of forest land must be determined by:

(a)  capitalizing the value of the mean annual net wood production at the culmination of mean annual increment plus other agriculture-related income, if any; less

(b)  annualized expenses, including but not limited to the establishment, protection, maintenance, improvement, and management of the crop over the rotation period.

(3)  To determine the forest productivity value of forest lands, the department shall:

(a)  divide the state into appropriate forest valuation zones, with each zone designated so as to recognize the uniqueness of marketing areas, timber types, growth rates, access, operability, and other pertinent factors of that zone; and

(b)  establish a uniform system of forest land classification that takes into consideration the productive capacity of the site to grow forest products and furnish other associated agricultural uses.

(4)  In computing the forest land valuation schedules for each forest valuation zone to take effect on January 1, 1994, the department shall determine the productive capacity value of all forest lands in each forest valuation zone using the formula V = I/R, where:

(a)  V is the per-acre forest productivity value of the forest land;

(b)  I is the per-acre net income of forest lands in each valuation zone and is determined by the department using the formula I = (M x SV) + AI - C, where:

(i)  I is the per-acre net income;

(ii) M is the mean annual net wood production;

(iii) SV is the stumpage value;

(iv) AI is the per-acre agriculture-related income; and

(v)  C is the per-unit cost of the forest product and agricultural product produced, if any; and

(c)  R is the capitalization rate determined by the department as provided in subsection (6).

(5)  Net income must:

(a)  be calculated for each year of a base period, which is the most recent 5-year period for which data is available;

(b)  be based on a rolling average of stumpage value of timber harvested within the forest valuation zone and on the associated production cost data for the base period from sources considered appropriate by the department; and

(c)  include agriculture-related net income for the same time period as the period used to determine average stumpage values.

(6)  The capitalization rate must be calculated for each year of the base period and is the annual average interest rate on agricultural loans as reported by the federal land bank Northwest farm credit services, agricultural credit association of Spokane, Washington, plus the effective tax rate.

(7)  The effective tax rate must be calculated for each year of the base period by dividing the total estimated tax due on forest lands subject to the provisions of this section by the total forest value of those lands.

(8)  For the purposes of this section, if forest service sales are used in the determination of stumpage values, the department shall take into account purchaser road credits.

(9)  In determining the forest productivity value of forest lands and in computing the forest land valuation schedules, the department shall use information and data provided by the university of Montana-Missoula.""

And, as amended, do pass. Report adopted.

House bills passed and transmitted to the Senate for concurrence: 1/21/97

HB 77, introduced by Simpkins

HB 123, introduced by Simpkins

HB 151, introduced by Marshall

SB 191 - Senator Hargrove moved SB 191 be taken from the Committee on Taxation and rereferred to the Committee on Local Government. Motion carried with Senator Stang voting nay.

SB 96 - Senator Grosfield moved that Waterman, Ewer, Arnott, Bartlett, Harper, Crippen, Sands, Swanson and Hibbard, be added as a sponsors to SB 96. Motion carried.

SB 4 - Senator Emerson moved the Senate reconsider its action in adopting the adverse committee report on SB 4 on the fourteenth legislative day. Motion failed as follows:

Yeas: Baer, Benedict, Burnett, Crippen, Crismore, DePratu, Devlin, Emerson, Estrada, Foster, Grosfield, Harp, Holden, Jenkins, Keating, Mahlum, McNutt, Mesaros, Miller, Sprague, Taylor, Thomas, Mr. President.

Total 23

Nays: Bartlett, Beck, Bishop, Brooke, Christiaens, Cole, Doherty, Eck, Franklin, Gage, Glaser, Halligan, Hargrove, Hertel, Jabs, Jergeson, Lynch, McCarthy, Mohl, Nelson, Shea, Stang, Swysgood, Toews, Van Valkenburg, Waterman, Wilson.

Total 27

Absent or not voting: None.

Total 0

Excused: None.

Total 0

The following bills were introduced, read first time, and referred to committees:

SB 189, introduced by Jabs, Knox, Holden, Toews, Barnett, Halligan, Thomas, Christiaens, Cole, McNutt, Rose, Clark, Ryan, Mesaros, Anderson, Wilson, and Jenkins, referred to Committee on Taxation.

SB 208, introduced by Estrada, Ahner, Thomas, Benedict, Christiaens, DePratu, Harp, Eck, Jenkins, Lynch, Shea, Mahlum, Quilici, Ohs, Waterman, Galvin, Pavlovich, Kottel, and Cocchiarella, referred to Committee on Public Health, Welfare, & Safety.

SB 209, introduced by Gage, Mills, Story, Hertel, Mahlum, and Hibbard, referred to Committee on Taxation.

SB 210, introduced by Cole, Mohl, DePratu, McNutt, Keating, Hargrove, and Bishop, referred to Committee on Judiciary.

SB 212, introduced by McNutt, Mahlum, DePratu, and Holden, referred to Committee on Judiciary.

SR 3, introduced by Hargrove, (by request of the Senate State Administration Committee) referred to Committee on State Administration.

SR 4, introduced by Hargrove, (by request of the Senate State Administration Committee) referred to Committee on State Administration.

SR 5, introduced by Hargrove, (by request of the Senate State Administration Committee) referred to Committee on State Administration.

SR 6, introduced by Hargrove, (by request of the Committee on State Administration) referred to Committee on State Administration.

HB 77, introduced by Simpkins, referred to Committee on Education & Cultural Resources.

HB 123, introduced by Simpkins, (by request of the Department of Administration) referred to Committee on State Administration.

HB 151, introduced by Marshall, (by request of the Department of Fish, Wildlife, and Parks) referred to Committee on Fish & Game.

Majority Leader Harp moved that the Senate resolve itself into the Committee of the Whole for consideration of business on second reading. Motion carried. Senator Bishop in the Chair.

Mr. President: We, your Committee of the Whole, having had under consideration business on second reading, recommend as follows:

SB 44 - Senator Holden moved SB 44 do pass. Motion carried as follows:

Yeas: Baer, Beck, Benedict, Bishop, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Eck, Emerson, Foster, Gage, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Keating, Lynch, McCarthy, McNutt, Mesaros, Miller, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Toews, Wilson, Mr. President.

Total 42

Nays: Bartlett, Brooke, Doherty, Estrada, Franklin, Mahlum, Van Valkenburg, Waterman.

Total 8

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 50 - Senator Keating moved SB 50 do pass. Motion carried unanimously.

SB 59 - Senator Swysgood moved SB 59 do pass. Motion carried unanimously.

SB 70 - Senator Gage moved SB 70, second reading copy, be amended as follows:

Amendment adopted unanimously.

Senator Gage moved SB 70, as amended, do pass. Motion carried unanimously.

SB 72 - Senator Mesaros moved SB 72 do pass. Motion carried unanimously.

SB 132 - Senator Mesaros moved SB 132 do pass.

Senator Christiaens assumed the chair.

Motion carried as follows:

Yeas: Baer, Beck, Benedict, Burnett, Cole, Crismore, DePratu, Devlin, Emerson, Estrada, Foster, Gage, Glaser, Grosfield, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Keating, Mahlum, McNutt, Mesaros, Mohl, Nelson, Swysgood, Taylor, Thomas, Mr. President.

Total 31

Nays: Bartlett, Bishop, Brooke, Christiaens, Crippen, Doherty, Eck, Franklin, Halligan, Lynch, McCarthy, Miller, Shea, Sprague, Stang, Toews, Van Valkenburg, Waterman, Wilson.

Total 19

Absent or not voting: None.

Total 0

Excused: None.

Total 0

Senator Bishop resumed the chair.

SB 157 - Senator Grosfield moved SB 152 do pass. Motion carried as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Burnett, Cole, Crippen, Crismore, DePratu, Devlin, Eck, Emerson, Estrada, Foster, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Keating, Mahlum, McNutt, Mesaros, Miller, Mohl, Sprague, Swysgood, Taylor, Waterman, Mr. President.

Total 34

Nays: Brooke, Christiaens, Doherty, Franklin, Gage, Jenkins, Jergeson, Lynch, McCarthy, Nelson, Shea, Stang, Thomas, Toews, Van Valkenburg, Wilson.

Total 16

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 161 - Senator Bartlett moved SB 161 do pass. Motion carried unanimously.

HB 30 - Senator Gage moved HB 30 be concurred in. Motion carried unanimously.

HB 57 - Senator Holden moved HB 57 be concurred in. Motion carried unanimously.

Senator Harp moved the committee rise and report. Motion carried. Committee arose. Senate resumed. President Aklestad in the Chair. Chairman Bishop moved that the Committee of the Whole report be adopted. Report adopted.

The following bills having been read three several times, title and history agreed to, were disposed of in the following manner:

SB 15 passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Doherty, Eck, Emerson, Estrada, Foster, Franklin, Gage, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 50

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 21 passed as follows:

Yeas: Bartlett, Beck, Benedict, Bishop, Brooke, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Doherty, Eck, Estrada, Foster, Franklin, Gage, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 47

Nays: Baer, Burnett, Emerson.

Total 3

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 28 passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Doherty, Eck, Emerson, Estrada, Foster, Franklin, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 47

Nays: Gage, Keating, Thomas.

Total 3

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 71 passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Doherty, Eck, Emerson, Estrada, Foster, Franklin, Gage, Glaser, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 50

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 84 passed as follows:

Yeas: Bartlett, Bishop, Brooke, Burnett, Christiaens, Cole, DePratu, Doherty, Eck, Franklin, Gage, Glaser, Halligan, Jabs, Jenkins, Jergeson, Lynch, McCarthy, McNutt, Miller, Nelson, Shea, Stang, Taylor, Toews, Van Valkenburg, Waterman, Wilson.

Total 28

Nays: Baer, Beck, Benedict, Crippen, Crismore, Devlin, Emerson, Estrada, Foster, Grosfield, Hargrove, Harp, Hertel, Holden, Keating, Mahlum, Mesaros, Mohl, Sprague, Swysgood, Thomas, Mr. President.

Total 22

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 117 passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Doherty, Eck, Emerson, Estrada, Foster, Franklin, Gage, Glaser, Grosfield, Halligan, Harp, Hertel, Jabs, Jenkins, Jergeson, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Mohl, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Van Valkenburg, Waterman, Wilson.

Total 44

Nays: Devlin, Hargrove, Holden, Miller, Toews, Mr. President.

Total 6

Absent or not voting: None.

Total 0

Excused: None.

Total 0

ANNOUNCEMENTS

Committee meetings were announced by committee chairmen.

Majority Leader Harp moved that the Senate adjourn until 3:00 p.m., Thursday, January 23, 1997. Motion carried.

Senate adjourned at 5:28 p.m.

ROSANA SKELTON GARY AKLESTAD

Secretary of Senate President of the Senate