Helena, Montana Senate Chambers

April 18, 1997 State Capitol

Senate convened at 10:00 a.m. President Aklestad presiding. Invocation by Reverend Tom Banks. Pledge of Allegiance to the Flag.

Roll call. All members present except Senator Burnett, excused. Quorum present.

Mr. President: We, your committee on Bills and Journal, having examined the daily journal for the seventy-eighth legislative day, find the same to be correct.

Miller, Chairman

Senator Harp moved the Senate recess until 11:00 a.m. Motion carried.

Senate recessed at 10:06 a.m.

Senate reconvened at 11:16 a.m. President Aklestad presiding.

Roll call. All members present except Senator Burnett, excused. Quorum present.

BILLS AND JOURNAL (Miller, Chairman): 4/18/97

SB 377, SB 378, SB 382, SR 18.

Signed by the President at 7:30 a.m., April 18, 1997: SB 83, SR 17.

Signed by the President at 8:30 a.m., April 18, 1997: SB 84, SB 173, SB 269, SB 315, SB 332, SB 338, SJR 16.

Signed by the President at 2:00 p.m., April 18, 1997: SB 19, SB 336, SB 378, SB 382, SR 18.

Delivered to the Secretary of State at 2:15 p.m., April 18, 1997: SR 17, SR 18.

FREE CONFERENCE COMMITTEE

on Senate Bill 44

Report No. 3, April 18, 1997

Mr. President and Mr. Speaker:

We, your Free Conference Committee on Senate Bill 44, met and considered the Conference Committee Report No. 1 amendments to Senate Bill 44 dated April 16, 1997 and recommend that Senate Bill 44 (reference copy - salmon) be amended as follows:

1. Page 1, line 14.

And that this Free Conference Committee report be adopted.

For the Senate: For the House:

Holden, Chairman Anderson, Chairman

Halligan Ellingson

Crippen McGee

CONFERENCE COMMITTEE

on Senate Bill 57

Report No. 1, April 18, 1997

Mr. President and Mr. Speaker:

We, your Conference Committee on Senate Bill 57, met and considered the House floor amendments to Senate Bill 57 dated April 11, 1997, and the House floor amendments to Senate Bill 57 dated April 14, 1997 and recommend that the April 11 House floor amendments be accepted and the April 14 amendments be rejected on Senate Bill 57 (reference copy - salmon) and a Free Conference Committee be appointed.

And that this Conference Committee report be adopted.

For the Senate: For the House:

Devlin, Chairman Story, Chairman

DePratu Rose

Waterman Ream

CONFERENCE COMMITTEE

on Senate Bill 272

Report No. 1, April 17, 1997

Mr. President and Mr. Speaker:

We, your Conference Committee on Senate Bill 272, met and considered the House amendments to SB 272 dated April 9, 1997 and recommend that the House amendments to Senate Bill 272 (reference copy - salmon) be rejected.

And that this Conference Committee report be adopted.

For the Senate: For the House:

Aklestad, Chairman Rose, Chairman

Glaser Bohlinger

Van Valkenburg McCulloch

CONFERENCE COMMITTEE

on Senate Bill 339

Report No. 1, April 18, 1997

Mr. President and Mr. Speaker:

We, your Conference Committee on Senate Bill 339, met and considered the House Committee of the Whole amendments dated April 4, 1997, and recommend that Senate Bill 339 (reference copy - salmon) be amended further as follows:

Section 2.  Section 76-3-201, MCA, is amended to read:

"76-3-201.   Exemption for certain divisions of land. (1) Unless the method of disposition is adopted for the purpose of evading this chapter, the requirements of this chapter shall may not apply to any division of land which that:

(1)(a)  is created by order of any court of record in this state or by operation of law or which that, in the absence of agreement between the parties to the sale, could be created by an order of any court in this state pursuant to the law of eminent domain, (Title 70, chapter 30);

(2)(b)  is created to provide security for construction mortgages, liens, or trust indentures;

(3)(c)  creates an interest in oil, gas, minerals, or water which that is now or hereafter severed from the surface ownership of real property;

(4)(d)  creates cemetery lots;

(5)(e)  is created by the reservation of a life estate;

(6)(f)  is created by lease or rental for farming and agricultural purposes.

(2) Before a court of record orders a division of land under subsection (1)(a), the court shall notify the governing body of the pending division and allow the governing body to present written comment on the division.""

And that this Conference Committee report be adopted.

For the Senate: For the House:

Beck, Chairman Stovall, Chairman

Grosfield Trexler (unsigned)

Eck Swanson

FREE CONFERENCE COMMITTEE

on House Bill 17

Report No. 1, April 17, 1997

Mr. Speaker and Mr. President:

We, your Free Conference Committee on House Bill 17, met and considered House Bill 17 (reference copy - salmon) and recommend that House Bill 17 be amended as follows:

Insert: "."

(a)"

9. Page 4, lines 10 through 14.

And this FREE Conference Committee report be adopted.

For the House: For the Senate:

Kitzenberg, Chairman Toews, Chairman

Wiseman Hargrove

Pavlovich Stang

CONFERENCE COMMITTEE

on House Bill 584

Report No. 1, April 18, 1997

Mr. Speaker and Mr. President:

We, your Conference Committee on House Bill 584, met and considered House Bill 584 (reference copy - salmon) and recommend that House Bill 584 be amended as follows:

And this Conference Committee report be adopted.

For the House: For the Senate:

Knox, Chairman (unsigned-ill) Grosfield, Chairman

Beaudry Mahlum

Quilici Franklin

April 17, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena, Montana 59620

Dear Senator Aklestad:

Please be informed that I have signed Senate Bill 49 sponsored by Senator Gage, Senate Bill 100 sponsored by Senator Beck, Senate Bill 112 sponsored by Senator Van Valkenburg, Senate Bill 127 sponsored by Senator Cole, Senate Bill 134 sponsored by Senator Nelson, Senate Bill 213 sponsored by Senator Mahlum, Senate Bill 216 sponsored by Senator Van Valkenburg, Senate Bill 219 sponsored by Senator Franklin, Senate Bill 234 sponsored by Senator Brooke, Senate Bill 344 sponsored by Senator Harp, and Senate Bill 349 sponsored by Senator Keating on April 17, 1997 and Senate Bill 55 sponsored by Senator Benedict on April 18, 1997.

Sincerely,

MARC RACICOT

Governor

Senate amendments to House bills concurred in: 4/17/97

HB 101, introduced by Bergsagel

HB 136, introduced by Wiseman

HB 166, introduced by Zook

HB 210, introduced by Hayne

HB 599, introduced by Bankhead

HB 610, introduced by Grady

SB 57 - The House acceded to the request of the Senate and authorized the Speaker to appoint the following Conference Committee to meet with a like committee from the Senate on SB 57:

Representative Story, Chairman

Representative Rose

Representative Ream

SB 272 - The House acceded to the request of the Senate and authorized the Speaker to appoint the following Conference Committee to meet with a like committee from the Senate on SB 272:

Representative Rose, Chairman

Representative Bohlinger

Representative McCulloch

SB 44 - The House acceded to the request of the Senate and dissolved the Conference Committee on SB 44 and the Speaker was authorized to appoint the following Free Conference Committee to confer on SB 44.

The Speaker appointed the following members:

Representative Anderson, Chairman

Representative Ellingson

Representative McGee

Conference Committee report #1 adopted on the following bill:

SB 296, introduced by Jergeson

Free Conference Committee report #1 adopted on the following bills:

SB 85, introduced by Jergeson

SB 99, introduced by Thomas

HB 298, introduced by R. Johnson

SB 374-House Amendments - Senator Hargrove moved consideration of House Amendments to SB 374 be placed at the top of the second reading board this legislative day, April 18, 1997. Motion carried.

HB 499 - Senator Thomas moved HB 499 be taken from the table in the Committee on State Administration, printed, and placed on second reading this legislative day. Motion failed as follows:

Yeas: Crippen, Doherty, Eck, Estrada, Halligan, Jenkins, Keating, Lynch, Nelson, Shea, Stang, Taylor, Thomas, Van Valkenburg, Wilson.

Total 15

Nays: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Christiaens, Cole, Crismore, DePratu, Devlin, Emerson, Foster, Franklin, Gage, Glaser, Grosfield, Hargrove, Harp, Hertel, Holden, Jabs, Jergeson, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Sprague, Swysgood, Toews, Waterman, Mr. President.

Total 34

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 57 - Senator Harp moved the Senate dissolve the Conference Committee on SB 57 and the President be authorized to appoint a Free conference committee to meet with a like committee from the House to confer on SB 57. Motion carried unanimously.

The President appointed the following members:

Senator Devlin, Chairman

Senator DePratu

Senator Waterman

HB 462 - Senator Emerson moved HB 463 be taken from the table in the Committee on Highways & Transportation, printed, and placed on second reading this legislative day.

Senator Stang expressed a conflict of interest in HB 462.

Motion failed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Christiaens, Crippen, Emerson, Estrada, Foster, Gage, Grosfield, Halligan, Hargrove, Harp, Keating, Lynch, McNutt, Mesaros, Miller, Sprague, Taylor, Thomas, Waterman.

Total 24

Nays: Brooke, Cole, Crismore, DePratu, Devlin, Doherty, Eck, Franklin, Glaser, Hertel, Holden, Jabs, Jenkins, Jergeson, Mahlum, McCarthy, Mohl, Nelson, Shea, Stang, Swysgood, Toews, Van Valkenburg, Wilson, Mr. President.

Total 25

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

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

SB 71-Conference Committee Report No.1, passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, Doherty, Eck, Emerson, Estrada, Foster, 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 48

Nays: Franklin.

Total 1

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 85-Free Conference Committee Report No. 2, passed as follows:

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

Total 43

Nays: Benedict, Foster, Grosfield, Miller, Swysgood, Toews.

Total 6

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 207-Conference Committee Report No.1, passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, 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, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 48

Nays: Swysgood.

Total 1

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 251-Conference Committee Report No.1, passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, 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 49

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 354, as amended by the House, passed as follows:

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

Total 43

Nays: Baer, Beck, Benedict, Gage, Holden, Jenkins.

Total 6

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 372, as amended by the House, passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Christiaens, 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, Swysgood, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 47

Nays: Cole, Stang.

Total 2

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 381-Conference Committee Report No.1, passed as follows:

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

Total 33

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

Total 16

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 386, as amended by the House, passed as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, 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, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 48

Nays: Toews.

Total 1

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SB 390, as amended by the House, passed as follows:

Yeas: Baer, Beck, Benedict, Burnett, Cole, Crippen, Crismore, DePratu, Devlin, Emerson, Estrada, Foster, Glaser, Grosfield, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Miller, Mohl, Shea, Sprague, Swysgood, Thomas, Toews, Wilson, Mr. President.

Total 35

Nays: Bartlett, Bishop, Brooke, Christiaens, Doherty, Eck, Franklin, Gage, Halligan, Jergeson, Nelson, Stang, Taylor, Van Valkenburg, Waterman.

Total 15

Paired: Burnett, Aye; Brooke, No.

Absent or not voting: None.

Total 0

Excused: None.

Total 0

SB 396, as amended by the House, passed as follows:

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

Total 46

Nays: Bishop, Gage, Jergeson.

Total 3

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 102-Free Conference Committee Report No.1, concurred in as follows:

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

Total 35

Nays: Bartlett, Beck, Brooke, Christiaens, Doherty, Franklin, Gage, Jergeson, Mahlum, Mohl, Nelson, Swysgood, Van Valkenburg, Waterman.

Total 14

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 164-Free Conference Committee Report No.1, concurred in as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, 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, Taylor, Thomas, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 48

Nays: Swysgood.

Total 1

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 298-Free Conference Committee Report No.1, concurred in as follows:

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

Total 42

Nays: Baer, Beck, Devlin, Gage, Swysgood, Toews, Mr. President.

Total 7

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 339-Free Conference Committee Report No.1, concurred in as follows:

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

Total 40

Nays: Devlin, Franklin, Jenkins, Lynch, Mohl, Nelson, Shea, Swysgood, Wilson.

Total 9

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 346-Free Conference Committee Report No.1, concurred in as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, 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 49

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

HB 388-Free Conference Committee Report No.1, concurred in as follows:

Yeas: Baer, Bartlett, Benedict, Brooke, 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, Wilson, Mr. President.

Total 45

Nays: Beck, Bishop, Van Valkenburg, Waterman.

Total 4

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

SECOND READING OF BILLS

10:00 a.m. session

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 Thomas in the Chair.

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

SB 374-House Amendments - Senator Hargrove moved the House Amendments to SB 374 be not adopted. Motion carried as follows:

Yeas: Bartlett, Benedict, Bishop, Brooke, Christiaens, Cole, Crippen, Crismore, Devlin, Eck, Emerson, Foster, Gage, Grosfield, Halligan, Hargrove, Hertel, Holden, Jabs, Jergeson, McNutt, Mesaros, Nelson, Sprague, Swysgood, Thomas, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 30

Nays: Baer, DePratu, Doherty, Estrada, Franklin, Glaser, Harp, Jenkins, Keating, Lynch, Mahlum, McCarthy, Miller, Mohl, Shea, Stang, Taylor, Toews.

Total 18

Absent or not voting: Beck.

Total 1

Excused: Burnett.

Total 1

SB 195-Free Conference Committee Report No.1 - Senator Harp moved the Free Conference Committee report to SB 195 be adopted. Motion carried as follows:

Yeas: Beck, Benedict, Christiaens, Crippen, Crismore, DePratu, Devlin, Foster, Franklin, Grosfield, Halligan, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Lynch, Mahlum, McNutt, Mesaros, Mohl, Shea, Sprague, Stang, Swysgood, Taylor, Thomas, Wilson, Mr. President.

Total 30

Nays: Baer, Bartlett, Bishop, Brooke, Cole, Doherty, Eck, Emerson, Estrada, Gage, Glaser, Jergeson, Keating, McCarthy, Miller, Nelson, Toews, Van Valkenburg, Waterman.

Total 19

Absent or not voting: None.

Total 0

Excused: Burnett.

Total 1

Senator Harp moved the committee rise, report progress, and beg leave to sit again. Motion carried. Committee arose. Senate resumed. President Aklestad in the Chair. Chairman Thomas moved that the Committee of the Whole report be adopted. Report adopted.

SB 374 - Senator Harp moved the President be authorized to appoint a Free Conference Committee and requests the House appoint a like committee to confer on SB 374. Motion carried unanimously.

President Aklestad appointed the following members:

Senator Hargrove, Chairman

Senator Holden

Senator Waterman

Majority Leader Harp moved that the Senate recess until 2:15 p.m. Motion carried unanimously.

Senate recessed at 1:39 p.m.

Senate reconvened at 2:20 p.m. Quorum present. President Aklestad presiding.

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena, Montana 59620

Dear Senator Aklestad:

Please be informed that I have signed Senate Bill 201 sponsored by Senator Glaser, Senate Bill 259 sponsored by Senator Shea, Senate Bill 284 sponsored by Senator Halligan, Senate Bill 325 sponsored by Senator Crismore, and Senate Bill 331 sponsored by Senator Thomas on April 18, 1997.

Sincerely,

MARC RACICOT

Governor

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena MT 59620

The Honorable John Mercer

Speaker of the House

State Capitol

Helena MT 59620

Dear President Aklestad and Speaker Mercer:

In accordance with the power vested in me as Governor by the Constitution and laws of the State of Montana, I hereby return Senate Bill 87, "AN ACT ELIMINATING THE REQUIREMENT THAT THE SECRETARY OF STATE TRANSFER PROPRIETARY FUNDS TO THE GENERAL FUND AT THE END OF A FISCAL YEAR; REQUIRING THAT FEES FOR FILING AND COPYING SERVICES BE COMMENSURATE WITH COSTS; PROVIDING THAT THE FEES BE DEPOSITED INTO AN INTERNAL SERVICE FUND; AMENDING SECTION 2-6-103, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE" for the following reasons.

Senate Bill 87 addresses the deposit of filing and copying fees collected by the Secretary of State. It provides that fees that are collected must be deposited into an internal service fund.

The Department of Administration has brought to my attention that the result of Senate Bill 87 is that the entire operation of the Secretary of State’s Office would become an internal service fund, a result that is not appropriate from the perspective of generally accepted accounting principles and that would create problems when the State’s financial statements are prepared.

This result was apparently inadvertent, and I am proposing a correction to the bill that would require that fees collected by deposited into a proprietary fund, rather than an internal service fund.

It is my understanding that Senator Jergeson, the sponsor of Senate Bill 87, understands the need for this amendment.

Sincerely,

MARC RACICOT

Governor

GOVERNOR’S AMENDMENT TO

Senate Bill No. 87

(Reference Copy)

April 18, 1997

Strike: "AN INTERNAL SERVICE FUND"

Insert: "A PROPRIETARY FUND"

2. Page 2, line 9.

Strike: "AN INTERNAL SERVICE FUND"

Insert: "a proprietary fund"

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena MT 59620

The Honorable John Mercer

Speaker of the House

State Capitol

Helena MT 59620

Dear President Aklestad and Speaker Mercer:

In accordance with the power vested in me as Governor by the Constitution and laws of the State of Montana, I hereby return Senate Bill 308, "AN ACT REQUIRING STATE AND LOCAL GOVERNMENT ENTITIES TO PREPARE A WRITTEN STATEMENT OF LEGAL AUTHORITY BEFORE TAKING CERTAIN ACTION; PROVIDING DEFINITIONS AND EXCEPTIONS; PROVIDING FOR CIVIL ACTIONS AND A CIVIL PENALTY; AMENDING SECTION 7-1-106, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE" for the following reasons.

Senate Bill 308 gives state and local government fifteen days in which to provide an applicant a written statement of authority any time it either denies or issues with conditions a permit, certificate, or license. The statement must include the reason for the act, a citation to the applicable legal authority, the governmental entity’s interpretation of the legal authority, and information about how to appeal the decision. While I understand the intent of the bill, I believe it goes too far.

First of all, Senate Bill 308 will create new responsibilities and associated costs for state and local government, without any funds for carrying out those responsibilities having been provided to date.

With respect to the state government, Senate Bill 308 will apply to the over 65,000 hunting permits denied each year by the Department of Fish, Wildlife, and Parks as a result of permit drawings. It will apply to the 1500 driver’s licenses that the Motor Vehicle Division of the Department of Justice denies each year because the applicants fail the written or driving test. At a time when government funding is tight, the expense of notifying these applicants in writing of the factual basis for the act, the legal authority for the act, the relevant legal interpretation, and information about appealing the act seems unjustifiable.

Senate Bill 308 also applies to state liquor and gambling licenses, and to the 70,000 motor carrier permits that are issued with restrictions each year. Assuming that a written explanation is warranted, requiring that it be sent out within fifteen days is no small problem for agencies who are given no additional funding to provide this service. The most recent fiscal note indicates an impact of over $100,000 per year to state agencies. The fiscal impact on local government has not been quantified.

I am also opposed to the bill’s creation of yet another cause of action against governmental entities. Current law already allows individuals to collect costs and reasonable attorneys’ fees when government acts in bad faith. By establishing yet another category of litigation, section 5 invites additional lawsuits by citizens against government, at a time when government is spending too much of its resources for costs of litigation.

Finally, section 6 of the bill amends current law in a manner that is inconsistent with the Montana Constitution. Article XI, section 4 of the Montana Constitution requires that the powers of incorporated cities and towns and counties shall be liberally construed. Section 7-1-106, MCA, tracks that language by providing that every reasonable doubt as to the existence of a local government power or authority shall be resolved in favor of the existence of that power or authority. Senate Bill 308, however, adds a qualification to section 7-1-1-06, which results in resolving doubts in favor of the existence of local government power "except for a power or authority to deny or issue with conditions a permit, certificate, license, or similar or equivalent right or privilege." The Legislature may not, be statute, add a qualification to an unqualified constitutional requirement.

I am proposing amendments to Senate Bill 308 that would limit the fiscal impact of the bill and still address the perceived abuses. The amendments will require that state and local government provide upon request an applicant with a statement of legal authority for any permit, certificate or license denied or issued with conditions. Putting this requirement in the law will result in government’s ability to take adverse personnel action where appropriate if a government employee does not comply with the requirement.

Sincerely,

MARC RACICOT

Governor

GOVERNOR’S AMENDMENTS TO

Senate Bill No. 308

(Reference Copy)

April 18, 1997

1. Title, line 5.

Strike: "PREPARE"

Insert: "PROVIDE UPON REQUEST"

Following: "AND"

Insert: "THE"

Following: "AUTHORITY"

Insert: "UPON WHICH"

Strike: "BEFORE TAKING"

2. Title, line 6.

Following: "ACTION"

Insert: "IS BASED"

Strike: "PROVIDING FOR CIVIL ACTIONS"

3. Title, line 7.

Strike: "AND A CIVIL PENALTY;"

Strike: "AMENDING SECTION 7-1-106,"

4. Title, line 8.

Strike: "MCA;"

5. Statement of intent, page 1, lines 13 through 16.

Strike: "IN" on line 13 through "ACTION." on line 16

6. Statement of intent, page 1, line 17.

Following: "IS"

Insert: "therefore"

Following: "SHOULD"

Insert: "upon request"

Strike: "NOT"

7. Statement of intent, page 1, lines 18 through 20.

Strike: "ACT" on line 18 through the first "KNOWN" on line 20

Insert: "provide"

8. Statement of intent, line 20.

Strike: "UNDER"

Insert: "upon"

Following: "WHICH"

Insert: "certain action is based"

9. Statement of intent, page 1, lines 20 and 21.

Strike: "THEY" on line 20 through "WELL" on line 21

10. Page 2, line 7.

Strike: "their"

Insert: "the"

11. Page 2, line 8.

Strike: "and the factual basis for their actions"

Insert: "upon which certain action is based"

12. Page 2, line 9.

Following: "will"

Insert: "articulate and"

13. Page 2, line 12.

Strike: "at a lower level"

14. Page 2, line 14.

Strike: "For" through "construed."

15. Page 2, line 22.

Strike: "SIMILAR OR EQUIVALENT RIGHT OR PRIVILEGE"

Insert: "the equivalent of a permit, certificate, or license"

16. Page 3, line 17.

Strike: "ISSUE"

Insert: "provide upon request"

17. Page 3, line 18.

Strike: "government"

Insert: "legal"

Following: "authority"

Insert: "upon which the action is based"

18. Page 3, lines 18 and 19.

Strike: "prepared" on line 18 through "section" on line 19

19. Page 3, line 19.

Strike: "ISSUED"

Insert: "provided"

Strike: "15"

Insert: "30"

20. Page 3, line 20.

Strike: ":"

21. Page 3, line 21.

Strike: line 21 in its entirety

22. Page 3, line 22.

Strike: "(b)"

Following: "act"

Insert: "."

23. Page 3, line 23 through page 4, line 23.

Strike: page 3, line 23 through page 4, line 23 in their entirety

Renumber: subsequent sections

24. Page 1, line 25.

Page 2, line 7.

Page 2, line 16.

Strike: "5"

Insert: "4" (to reflect amendment #23)

2:20 p.m. session

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 Thomas in the Chair.

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

SB 283-Conference Committee Report No.1 - Senator Holden moved the Conference Committee report to SB 283 be adopted. Motion carried unanimously.

Senator Halligan and Swysgood excused at this time.

SJR 20 - Senator Eck moved SJR 20 be adopted. Motion carried as follows:

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

Total 40

Nays: Crismore, Devlin, Hertel, Holden, Keating, Mohl, Toews.

Total 7

Absent or not voting: None.

Total 0

Excused: Burnett, Halligan, Swysgood.

Total 3

HB 99-Conference Committee Report No.1 - Senator Mohl moved the Conference Committee report to HB 99 be adopted. Motion carried unanimously.

HB 122-Free Conference Committee Report No.1 - Senator Grosfield moved the Free Conference Committee report to HB 122 be adopted. Motion carried with Senators Christiaens and Brooke voting nay.

HB 135-Free Conference Committee Report No.1 - Senator Bishop moved the Free Conference Committee report to HB 135 be adopted. Motion carried unanimously.

HB 142 - Senator Hertel moved HB 142 be concurred in.

After discussion, Senator Lynch made a substitute motion that consideration of HB 142 be indefinitely postponed. Motion carried as follows:

Yeas: Bartlett, Beck, Bishop, Christiaens, DePratu, Devlin, Doherty, Eck, Estrada, Franklin, Gage, Glaser, Grosfield, Harp, Jenkins, Lynch, Mahlum, McCarthy, McNutt, Nelson, Shea, Sprague, Stang, Toews, Waterman, Wilson.

Total 26

Nays: Baer, Benedict, Brooke, Cole, Crippen, Crismore, Emerson, Foster, Hargrove, Hertel, Holden, Jabs, Jergeson, Keating, Mesaros, Miller, Mohl, Taylor, Thomas, Van Valkenburg, Mr. President.

Total 21

Absent or not voting: None.

Total 0

Excused: Burnett, Halligan, Swysgood.

Total 3

HB 83-Free Conference Committee Report No.1 - Senator Beck moved the Free Conference Committee report to HB 83 be adopted. Motion carried unanimously.

HB 188-Free Conference Committee Report No.1 - Senator Keating moved the Free Conference Committee report to HB 188 be adopted. Motion carried with Senators Stang, Baer and Glaser voting nay.

HB 345-Free Conference Committee, Report No.3 - Senator Keating moved the Free Conference Committee report #3 to HB 345 be adopted. Motion carried unanimously.

HB 369-Free Conference Committee Report No.1 - Senator Sprague moved the Free Conference Committee Report to HB 369 be adopted. Motion carried unanimously.

HB 389-Free Conference Committee Report No.1 - Senator Gage moved the Free Conference Committee report to HB 389 be adopted. Motion carried unanimously.

Senator Halligan present at this time.

HB 398-Free Conference Committee Report No.1 - Senator Taylor moved the Free Conference Committee report to HB 398 be adopted. Motion carried unanimously.

Senator Devlin assumed the chair.

HB 517-Free Conference Committee Report No.1 - Senator Foster moved the Free Conference Committee report to HB 517 be adopted. Motion carried as follows:

Yeas: Baer, Beck, Benedict, Cole, Crismore, DePratu, Devlin, Emerson, Estrada, Foster, Grosfield, Hargrove, Harp, Hertel, Holden, Jenkins, Keating, Mahlum, McNutt, Mesaros, Miller, Mohl, Sprague, Taylor, Thomas, Toews, Mr. President.

Total 27

Nays: Bartlett, Bishop, Brooke, Christiaens, Crippen, Doherty, Eck, Franklin, Gage, Glaser, Halligan, Jabs, Jergeson, Lynch, McCarthy, Nelson, Shea, Stang, Van Valkenburg, Waterman, Wilson.

Total 21

Absent or not voting: None.

Total 0

Excused: Burnett, Swysgood.

Total 2

Senator Thomas resumed the chair.

Senator Mohl excused at this time.

HB 547-Free Conference Committee Report No.1 - Senator Grosfield moved the Free Conference Committee report to HB 547 be adopted. Motion carried as follows:

Yeas: Baer, Beck, Benedict, Cole, Crippen, Crismore, DePratu, Devlin, Emerson, Estrada, Foster, Gage, Grosfield, Hargrove, Harp, Hertel, Holden, Jabs, Jenkins, Jergeson, Mahlum, McNutt, Mesaros, Nelson, Sprague, Taylor, Thomas, Toews, Waterman, Wilson, Mr. President.

Total 31

Nays: Bartlett, Bishop, Brooke, Christiaens, Doherty, Eck, Franklin, Halligan, Keating, Lynch, McCarthy, Miller, Shea, Stang, Van Valkenburg.

Total 15

Absent or not voting: Glaser.

Total 1

Excused: Burnett, Mohl, Swysgood.

Total 3

HB 616 - Senator Hertel moved HB 616 be concurred in. Motion carried unanimously.

HJR 33 - Senator Bartlett moved HJR 33 be adopted. Motion adopted as follows:

Yeas: Bartlett, Benedict, Bishop, Brooke, Christiaens, Cole, Crippen, DePratu, Devlin, Doherty, Eck, Emerson, Foster, Franklin, Gage, Grosfield, Halligan, Harp, Holden, Jabs, Jenkins, Jergeson, Lynch, McCarthy, McNutt, Nelson, Shea, Stang, Thomas, Van Valkenburg, Waterman, Wilson.

Total 32

Nays: Baer, Beck, Crismore, Estrada, Glaser, Hargrove, Hertel, Keating, Mahlum, Mesaros, Miller, Sprague, Taylor, Toews, Mr. President.

Total 15

Absent or not voting: None.

Total 0

Excused: Burnett, Mohl, Swysgood.

Total 3

Senator Harp moved the committee rise, report progress, and beg leave to sit again. Motion carried. Committee arose. Senate resumed. President Aklestad in the Chair. Chairman Thomas moved that the Committee of the Whole report be adopted. Report adopted.

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena MT 59620

The Honorable John Mercer

Speaker of the House

State Capitol

Helena MT 59620

Dear President Aklestad and Speaker Mercer:

In accordance with the power vested in me as Governor by the Constitution and laws of the State of Montana, I hereby veto Senate Bill 31, "AN ACT PROVIDING FOR CHEMICAL TREATMENT OF CERTAIN SEX OFFENDERS; AND PROVIDING APPLICABILITY DATES" for the following reasons.

Senate Bill 31 provides for chemical treatment of certain sex offenders, the costs of which treatment would be paid for by the Department of Corrections.

On March 31, 1997, I returned the bill with a proposed amendment that would make the act void if funding was not provided in House Bill 2 to cover corresponding costs. The amendment was not adopted, leaving the

Department of Corrections facing estimated costs amounting to $77,126 for fiscal year 1998 and $319,028 for fiscal year 1999.

The legislative and executive branches have worked very hard to provide sufficient funding for the Department of Corrections, an agency that has historically been underfunded. I cannot agree to add this unfunded responsibility to a department, the resources of which are strained to a filament.

Sincerely,

MARC RACICOT

Governor

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena MT 59620

The Honorable John Mercer

Speaker of the House

State Capitol

Helena MT 59620

Dear President Aklestad and Speaker Mercer:

In accordance with the power vested in me as Governor by the Constitution and laws of the State of Montana, I hereby veto House Bill 195, "A BILL FOR AN ACT REQUIRING STATE AGENCIES TO PAY A $45 FEE TO FILE A WARRANT FOR DISTRAINT, CERTIFICATE OF LIEN, OR ABSTRACT OF ADMINISTRATIVE ORDER OR OF FINAL ADMINISTRATIVE ORDER; CLARIFYING THE AMOUNT OF THE DISTRICT COURT FEE FOR APPEALS FROM COURTS OF LIMITED JURISDICTION AND FOR APPEARING AS A LITIGANT IN A CONTESTED ESTATE PROCEEDING; AND AMENDING SECTIONS 25-1-201 AND 25-10-405, MCA" for the following reasons.

House Bill 195 requires, among other things, that state agencies pay $45 each time they file with the clerk of court a warrant for distraint, a certificate of lien, or an abstract of an administrative order.

I do not disagree with the substance of the bill. However, its operation will result in projected additional costs to agency budgets of over $280,000 for the biennium. This is a sum that current agency budgets cannot absorb, and, since there is no funding provided in the bill, I offered an amendment to the bill on April 11, 1997, which would have prevented the law from becoming effective unless there is an appropriation for adequate funding.

My proposed amendment was not adopted.

The difficult task of carefully and thoughtfully funding essential government services can be resolved, but not without making choices among competing priorities. In my view, there are higher priorities than House Bill 195 to which the State must dedicate its limited resources.

Sincerely,

MARC RACICOT

Governor

April 18, 1997

The Honorable Gary Aklestad

President of the Senate

State Capitol

Helena MT 59620

The Honorable John Mercer

Speaker of the House

State Capitol

Helena MT 59620

Dear President Aklestad and Speaker Mercer:

In accordance with the power vested in me as Governor by the Constitution and laws of the State of Montana, I hereby veto Senate Bill 271, "AN ACT PROVIDING THAT AN ADMINISTRATIVE RULE OBJECTED TO BY A MAJORITY OF THE MEMBERS OF THE ADMINISTRATIVE CODE COMMITTEE MAY NOT BE ADOPTED UNTIL THE END OF THE 6-MONTH PERIOD DURING WHICH THE RULE MUST BE ADOPTED, UNLESS PRIOR TO THAT TIME, THE COMMITTEE MEETS AND DOES NOT MAKE THE SAME OBJECTION; PROVIDING THAT AN ADMINISTRATIVE RULE OBJECTED TO BY THE ADMINISTRATIVE CODE COMMITTEE BEFORE THE RULE IS ADOPTED IS IN SOME CIRCUMSTANCES NOT EFFECTIVE UNTIL AFTER ADJOURNMENT OF THE NEXT REGULAR SESSION OF THE LEGISLATURE; AMENDING SECTIONS 2-4-305 AND 2-4-306, MCA; AND PROVIDING AN APPLICABILITY DATE" for the following reasons.

Senate Bill 271 is similar to a bill vetoed during the 1995 legislative session. It would allow a majority of members of the Administrative Code Committee to hold up the implementation of a law passed by both houses of the Legislature and signed by the Governor until after the next regular session of the Legislature adjourned. Using the worst case scenario, five members of the Legislature could delay the effect of a duly-adopted law for two years.

I believe, as I did in 1995, that this proposal is unconstitutional. Administrative rules are extensions of the law, restricted delegations of authority from the legislative branch to the executive branch of government. Giving five members of the Legislature the power to control the executive branch's ability to carry out its responsibilities is a violation of the principle of separation of powers, Article III, section 1 of the Montana Constitution. It infringes upon the executive's duty to faithfully execute the laws, as required by Article VI, section 4 (1).

Moreover, allowing five members of a legislative committee to suspend implementation of an administrative rule amounts to giving those five members the power to repeal any law that delegates rulemaking powers to the executive branch. Any act which authorizes five legislators to repeal a law is a violation of Article V, section 11 (1) of the Montana Constitution, which requires the action of a majority of the members of the body present and voting before adoption or repeal of a law. In other words, Senate Bill 271 unconstitutionally gives law-making authority to a legislative committee.

There has always been a general concern about agency rulemaking, and, although it has been difficult to ascertain actual examples of rules that are not in conformity with the statute they implement, that concern is understandable. I submit, however, that there are adequate checks and balances already in existence to curb any over-zealous rulemakers. They include the protections afforded the public by the rulemaking process itself, judicial review, additional clarifying legislation, repeal of a rule by the Legislature, supervision by oversight committees, legislative appropriations, control by the executive, and lawful objections by the Administrative Code Committee. In addition, this administration has directed agencies to contact sponsors of legislation when they prepare to issue rules that implement that legislation, a practice which will now become law if House Bill 199 is approve.

Unlike the provisions of Senate Bill 271, the above-mentioned controls limit agency options while keeping the constitutional separation of powers doctrine intact.

Sincerely,

MARC RACICOT

Governor

Majority Leader Harp moved that the Senate recess until 5 p.m. Motion carried unanimously.

Senate recessed at 4:18 p.m.

Senate reconvened at 5:10 p.m. Quorum present.

FREE CONFERENCE COMMITTEE

on Senate Bill 57

Report No. 1, April 18, 1997

Mr. President and Mr. Speaker:

We, your Free Conference Committee on Senate Bill 57, met and considered Senate Bill 57 in its entirety and recommend that Senate Bill 57 (reference copy - salmon) be amended as follows:

Insert: "TAXING AUTOMOBILES, TRUCKS HAVING A MANUFACTURER'S RATED CAPACITY OF 1 TON OR LESS, VANS, AND SPORT UTILITY VEHICLES AT 2 PERCENT OF THE DEPRECIATED VALUE OF THE MANUFACTURER'S SUGGESTED RETAIL PRICE;"

Insert: "the manufacturer's suggested retail price, an alternative valuation when the manufacturer's suggested retail price is unavailable, the date of manufacture for vehicles not commercially manufactured for consumer purchase, and"

Insert: "(3) the methods for determining the manufacturer's suggested retail price for the valuation of motor vehicles;

(4) the procedures for establishing an equitable alternative value for vehicles that do not have a published manufacturer's suggested retail price; and"

"7-1-2111.   Classification of counties. (1) For the purpose of regulating the compensation and salaries of all county officers, not otherwise provided for, and for fixing the penalties of officers' bonds, the counties of this state must be classified according to the taxable valuation of the property in the counties upon which the tax levy is made, except for vehicles subject to taxation under 61-3-504(2), as follows:

(a)  first class--all counties having a taxable valuation of $50 million or over more;

(b)  second class--all counties having a taxable valuation of more than $30 million or more and less than $50 million;

(c)  third class--all counties having a taxable valuation of more than $20 million or more and less than $30 million;

(d)  fourth class--all counties having a taxable valuation of more than $15 million or more and less than $20 million;

(e)  fifth class--all counties having a taxable valuation of more than $10 million or more and less than $15 million;

(f)  sixth class--all counties having a taxable valuation of more than $5 million or more and less than $10 million;

(g)  seventh class--all counties having a taxable valuation of less than $5 million.

(2)  As used in this section, taxable valuation means the taxable value of taxable property in the county as of the time of determination plus:

(a)  that portion of the taxable value of the county on December 31, 1981, attributable to automobiles and trucks having a rated capacity of three-quarters of a ton or less;

(b)  that portion of the taxable value of the county on December 31, 1989, attributable to automobiles and trucks having a manufacturer's rated capacity of more than three-quarters of a ton but less than or equal to 1 ton;

(c)  that portion of the taxable value of the county on December 31, 1997, attributable to buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors;

(d) the value provided by the department of revenue under 15-36-324(10); and

(d)(e)  6% of the taxable value of the county on January 1 of each tax year."

Section 2.  Section 15-6-138, MCA, is amended to read:

"15-6-138.   Class eight property -- description -- taxable percentage. (1) Class eight property includes:

(a)  all agricultural implements and equipment;

(b)  all mining machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;

(c)  all manufacturing machinery, fixtures, equipment, tools that are not exempt under 15-6-201(1)(r), and supplies except those included in class five;

(d)  all trailers and semitrailers, including those prorated under 15-24-102, except those subject to taxation under 61-3-504(2) or exempt under 15-6-201(1)(v);

(e)  all goods and equipment intended for rent or lease, except goods and equipment specifically included and taxed in another class;

(f)  buses and trucks having a rated capacity of more than 1 ton, including those prorated under 15-24-102;

(g)  truck toppers weighing more than 300 pounds;

(g) special mobile equipment as defined in 61-1-104;

(h)  furniture, fixtures, and equipment, except that specifically included in another class, used in commercial establishments as defined in this section;

(i)  x-ray and medical and dental equipment;

(j)  citizens' band radios and mobile telephones;

(k)  radio and television broadcasting and transmitting equipment;

(l)  cable television systems;

(m)  coal and ore haulers;

(n)  theater projectors and sound equipment; and

(o)  all other property not included in any other class in this part, except that property subject to a fee in lieu of a property tax.

(2)  As used in this section, "coal and ore haulers" means nonhighway vehicles that exceed 18,000 pounds per axle and that are primarily designed and used to transport coal, ore, or other earthen material in a mining or quarrying environment.

(3)  "Commercial establishment" includes any hotel; motel; office; petroleum marketing station; or service, wholesale, retail, or food-handling business.

(4)  Class eight property is taxed at:

(a)  9% of its market value for tax years ending on or before December 31, 1995;

(b)  8% of its market value for tax year 1996;

(c)  7% of its market value for tax year 1997; and

(d)  6% of its market value for tax years beginning after December 31, 1997."

Section 3.  Section 15-6-201, MCA, is amended to read:

"15-6-201.   Exempt categories. (1) The following categories of property are exempt from taxation:

(a)  except as provided in 15-24-1203, the property of:

(i)  the United States, except:

(A)  if congress passes legislation that allows the state to tax property owned by the federal government or an agency created by congress; or

(B)  as provided in 15-24-1103;

(ii) the state, counties, cities, towns, and school districts;

(iii) irrigation districts organized under the laws of Montana and not operating for profit;

(iv) municipal corporations;

(v)  public libraries; and

(vi) rural fire districts and other entities providing fire protection under Title 7, chapter 33;

(b)  buildings, with land they occupy and furnishings in the buildings, owned by a church and used for actual religious worship or for residences of the clergy, together with adjacent land reasonably necessary for convenient use of the buildings;

(c)  property used exclusively for agricultural and horticultural societies, for educational purposes, and for nonprofit health care facilities, as defined in 50-5-101, licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3. A health care facility that is not licensed by the department of public health and human services and organized under Title 35, chapter 2 or 3, is not exempt.

(d)  property that is:

(i)  owned and held by an association or corporation organized under Title 35, chapter 2, 3, 20, or 21;

(ii) devoted exclusively to use in connection with a cemetery or cemeteries for which a permanent care and improvement fund has been established as provided for in Title 35, chapter 20, part 3; and

(iii) not maintained and operated for private or corporate profit;

(e)  property owned or property that is leased from a federal, state, or local governmental entity by institutions of purely public charity if the property is directly used for purely public charitable purposes;

(f)  evidence of debt secured by mortgages of record upon real or personal property in the state of Montana;

(g)  public museums, art galleries, zoos, and observatories not used or held for private or corporate profit;

(h)  all household goods and furniture, including but not limited to clocks, musical instruments, sewing machines, and wearing apparel of members of the family, used by the owner for personal and domestic purposes or for furnishing or equipping the family residence;

(i)  a truck canopy cover or topper weighing less than 300 pounds and having no accommodations attached. This property is also exempt from taxation under 61-3-504(2) and 61-3-537.

(j)  a bicycle, as defined in 61-1-123, used by the owner for personal transportation purposes;

(k)  motor homes, travel trailers, and campers;

(l)  all watercraft;

(m)  motor vehicles, land, fixtures, buildings, and improvements owned by a cooperative association or nonprofit corporation organized to furnish potable water to its members or customers for uses other than the irrigation of agricultural land;

(n)  the right of entry that is a property right reserved in land or received by mesne conveyance (exclusive of leasehold interests), devise, or succession to enter land with a surface title that is held by another to explore, prospect, or dig for oil, gas, coal, or minerals;

(o)  property that is owned and used by a corporation or association organized and operated exclusively for the care of persons with developmental disabilities, the mentally ill, or the vocationally handicapped as defined in 18-5-101 and that is not operated for gain or profit and property owned and used by an organization owning and operating facilities that are for the care of the retired, aged, or chronically ill and that are not operated for gain or profit;

(p)  all farm buildings with a market value of less than $500 and all agricultural implements and machinery with a market value of less than $100;

(q)  property owned by a nonprofit corporation that is organized to provide facilities primarily for training and practice for or competition in international sports and athletic events and not held or used for private or corporate gain or profit. For purposes of this subsection (1)(q), "nonprofit corporation" means an organization exempt from taxation under section 501(c) of the Internal Revenue Code and incorporated and admitted under the Montana Nonprofit Corporation Act.

(r)  the first $15,000 or less of market value of tools owned by the taxpayer that are customarily hand-held and that are used to:

(i)  construct, repair, and maintain improvements to real property; or

(ii) repair and maintain machinery, equipment, appliances, or other personal property;

(s)  harness, saddlery, and other tack equipment;

(t)  a title plant owned by a title insurer or a title insurance producer, as those terms are defined in 33-25-105;

(u)  timber as defined in 15-44-102;

(v)  all trailers and semitrailers that have a licensed gross weight of 26,000 pounds or more or that are registered through a proportional registration agreement under 61-3-721. For purposes of this subsection (1)(v), the terms "trailer" and "semitrailer" mean a vehicle with or without motive power that is:

(i)  designed and used only for carrying property;

(ii) designed and used to be drawn by a motor vehicle; and

(iii) either constructed so that no part of its weight rests upon the towing vehicle or constructed so that some part of its weight and the weight of its load rests upon or is carried by another vehicle.

(w)  all vehicles registered under 61-3-456;

(x) (i) buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including buses, trucks, and truck tractors apportioned under Title 61, chapter 3, part 7; and

(y) motorcycles and quadricycles.

(2)  (a) For the purposes of subsection (1)(e), the term "institutions of purely public charity" includes any organization that meets the following requirements:

(i)  The organization qualifies as a tax-exempt organization under the provisions of section 501(c)(3), Internal Revenue Code, as amended.

(ii) The organization accomplishes its activities through absolute gratuity or grants. However, the organization may solicit or raise funds by the sale of merchandise, memberships, or tickets to public performances or entertainment or by other similar types of fundraising activities.

(b)  For the purposes of subsection (1)(g), the term "public museums, art galleries, zoos, and observatories" means governmental entities or nonprofit organizations whose principal purpose is to hold property for public display or for use as a museum, art gallery, zoo, or observatory. The exempt property includes all real and personal property reasonably necessary for use in connection with the public display or observatory use. Unless the property is leased for a profit to a governmental entity or nonprofit organization by an individual or for-profit organization, real and personal property owned by other persons is exempt if it is:

(i)  actually used by the governmental entity or nonprofit organization as a part of its public display;

(ii) held for future display; or

(iii) used to house or store a public display.

(3)  The following portions of the appraised value of a capital investment in a recognized nonfossil form of energy generation or low emission wood or biomass combustion devices, as defined in 15-32-102, are exempt from taxation for a period of 10 years following installation of the property:

(a)  $20,000 in the case of a single-family residential dwelling;

(b)  $100,000 in the case of a multifamily residential dwelling or a nonresidential structure."

Section 4.  Section 15-8-111, MCA, is amended to read:

"15-8-111.   Assessment -- market value standard -- exceptions. (1) All taxable property must be assessed at 100% of its market value except as otherwise provided.

(2)  (a) Market value is the value at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.

(b)  If the department uses construction cost as one approximation of market value, the department shall fully consider reduction in value caused by depreciation, whether through physical depreciation, functional obsolescence, or economic obsolescence.

(c)  Except as provided in subsection (3), the market value of all motor trucks; special mobile equipment and agricultural tools, implements, and machinery; and vehicles of all kinds is the average wholesale value shown in national appraisal guides and manuals or the value of the vehicle before reconditioning and profit margin. The department shall prepare valuation schedules showing the average wholesale value when a national appraisal guide does not exist.

(3)  The department may not adopt a lower or different standard of value from market value in making the official assessment and appraisal of the value of property, except:

(a)  the wholesale value for agricultural implements and machinery is the loan value as shown in the Official Guide, Tractor and Farm Equipment, published by the national farm and power equipment dealers association, St. Louis, Missouri;

(b)  for agricultural implements and machinery not listed in the official guide, the department shall prepare a supplemental manual in which the values reflect the same depreciation as those found in the official guide; and

(c)  as otherwise authorized in Title 15 and Title 61.

(4)  For purposes of taxation, assessed value is the same as appraised value.

(5)  The taxable value for all property is the percentage of market or assessed value established for each class of property.

(6)  The assessed value of properties in 15-6-131 through 15-6-133 is as follows:

(a)  Properties in 15-6-131, under class one, are assessed at 100% of the annual net proceeds after deducting the expenses specified and allowed by 15-23-503 or, if applicable, as provided in 15-23-515, 15-23-516, 15-23-517, or 15-23-518.

(b)  Properties in 15-6-132, under class two, are assessed at 100% of the annual gross proceeds.

(c)  Properties in 15-6-133, under class three, are assessed at 100% of the productive capacity of the lands when valued for agricultural purposes. All lands that meet the qualifications of 15-7-202 are valued as agricultural lands for tax purposes.

(d)  Properties in 15-6-143, under class ten, are assessed at 100% of the forest productivity value of the land when valued as forest land.

(7)  Land and the improvements on the land are separately assessed when any of the following conditions occur:

(a)  ownership of the improvements is different from ownership of the land;

(b)  the taxpayer makes a written request; or

(c)  the land is outside an incorporated city or town."

Section 5.  Section 15-8-201, MCA, is amended to read:

"15-8-201.   General assessment day. (1) The department shall, between January 1 and the second Monday of July in each year, ascertain the names of all taxable inhabitants and assess all property subject to taxation in each county. The department shall assess property to the person by whom it was owned or claimed or in whose possession or control it was at midnight of the preceding January 1. The department shall also ascertain and assess all mobile homes arriving in the county after midnight of the preceding January 1. A mistake in the name of the owner or supposed owner of real property does not invalidate the assessment.

(2)  The procedure provided by this section does not apply to:

(a)  motor vehicles that are required by 15-8-202 to be assessed on January 1 or upon their anniversary registration date;

(b)  motor homes, travel trailers, and campers;

(c)  watercraft;

(d)  livestock;

(e)  property defined in 61-1-104 as "special mobile equipment" that is subject to assessment for personal property taxes on the date that application is made for a special mobile equipment plate;

(f)  mobile homes held by a distributor or dealer of mobile homes as stock in trade; and

(g)  property subject to the provisions of 15-16-203.

(3)  Credits must be assessed as provided in 15-1-101(1)(f)."

Section 6.  Section 15-8-202, MCA, is amended to read:

"15-8-202.   Motor vehicle assessment by department of justice. (1) (a) The department shall, in each year, ascertain and assess all motor vehicles, other than motor homes, travel trailers, and campers or mobile homes, in each county subject to taxation as of January 1 or as of the anniversary registration date of those vehicles as provided by law, subject to 61-3-313 through 61-3-316 and 61-3-501. The assessment for department of justice shall assess all motor light vehicles, must be made subject to 61-3-313 through 61-3-316 and 61-3-501, for taxation in accordance with 61-3-503.

(b) The department of justice shall determine the fee in lieu of tax for all buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors in accordance with [sections 32 and 33].

(c) The motor vehicles Taxes or fees in lieu of tax on motor vehicles under this subsection (1) must be assessed or imposed in each year to on the persons by whom who owned or claimed the motor vehicles or in whose possession or control they were at midnight of January 1 or the motor vehicle was on the anniversary registration date, whichever is applicable.

(2)  A tax or fee in lieu of tax may not be assessed or imposed against motor vehicles subject to taxation or to a fee in lieu of tax that constitute inventory of motor vehicle dealers as of January 1. These vehicles and all other motor vehicles subject to taxation or a fee in lieu of tax that are brought into the state subsequent to after January 1 as motor vehicle dealers' inventories must be assessed to their respective purchasers as of the dates the vehicles are registered by the purchasers.

(3)  "Purchasers" includes dealers who apply for registration or reregistration of motor vehicles, except as otherwise provided by 61-3-502.

(4)  Goods, wares, and merchandise of motor vehicle dealers, other than new motor vehicles and new mobile homes, must be assessed at market value as of January 1."

Section 7.  Section 15-16-202, MCA, is amended to read:

"15-16-202.   Boats, snowmobiles, and motor vehicles -- payment of current and back taxes and fees. (1) The fee in lieu of personal property taxes assessed against a boat for the year in which application for decals is made and the immediately previous year must be paid before license decals may be issued pursuant to 23-2-515.

(2)  The fee in lieu of tax imposed on a snowmobile for the year in which application for registration is made and the immediately previous year must be paid before a snowmobile may be registered pursuant to 23-2-616.

(3)  Except for mobile homes as defined in 15-1-101, the new motor vehicle sales tax and the personal property motor vehicle tax or fee in lieu of tax imposed or assessed against a motor vehicle for the current year and the immediately previous year must be paid before a motor vehicle may be registered or reregistered pursuant to 61-3-303.

(4)  The provisions of subsections (1) through (3) do not require payment of the immediately previous year's taxes or fees if such the taxes or fees have already been paid."

Section 8.  Section 15-50-207, MCA, is amended to read:

"15-50-207.   Credit against other taxes -- credit for personal property taxes and certain fees. (1) The additional license fees withheld or otherwise paid as provided herein in this chapter may be used as a credit on the contractor's corporation license tax provided for in chapter 31 of this title or on the contractor's income tax provided for in chapter 30, depending upon the type of tax the contractor is required to pay under the laws of the state.

(2)  Personal property taxes and the fee in lieu of tax on buses, trucks having a manufacturer's rated capacity of more than 1 ton, or truck tractors as provided in [section 33] paid in Montana on any personal property or vehicle of the contractor which that is used in the business of the contractor and is located within this state may be credited against the license fees required under this chapter. However, in computing the tax credit allowed by this section against the contractor's corporation license tax or income tax, the personal property tax credit against the license fees herein required shall under this chapter may not be considered as license fees paid for the purpose of such the income tax or corporation license tax credit."

Section 9.  Section 20-9-141, MCA, is amended to read:

"20-9-141.   Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:

(a)  Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:

(i)  the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and

(ii)  any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.

(b)  Determine the money available for the reduction of the property tax on the district for the general fund by totaling:

(i)  the general fund balance reappropriated, as established under the provisions of 20-9-104;

(ii)  amounts received in the last fiscal year for which revenue reporting was required for each of the following:

(A)  tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323;

(B)  revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204;

(C)  oil and natural gas production taxes;

(D)  interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4);

(E)  revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and

(F)  any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid; and

(iii)  pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703.

(c)  Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.

(d)  Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.

(2)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:

(a)  the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and

(b)  the taxable valuation of the district divided by 1,000.

(3)  The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.

(4)  For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703."

Section 10.  Section 20-9-331, MCA, is amended to read:

"20-9-331.   Basic county tax and other revenues for county equalization of the elementary district BASE funding program. (1) The county commissioners of each county shall levy an annual basic tax of 33 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the elementary BASE funding programs of the school districts in the county and to the state general fund in the following manner:

(a)  In order to determine the amount of revenue raised by this levy that is retained by the county, the sum of the estimated revenue identified in subsection (2) must be subtracted from the total of the BASE funding programs of all elementary districts of the county.

(b)  If the basic levy and other revenue prescribed by this section produce more revenue than is required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to the state treasurer for deposit to the state general fund immediately upon occurrence of a surplus balance and each subsequent month thereafter, with any final remittance due no later than June 20 of the fiscal year for which the levy has been set.

(2)  The revenue realized from the county's portion of the levy prescribed by this section and the revenue from the following sources must be used for the equalization of the elementary BASE funding program of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county treasurer in accordance with 20-9-212(1):

(a)  the portion of the federal Taylor Grazing Act funds distributed to a county and designated for the common school fund under the provisions of 17-3-222;

(b)  the portion of the federal flood control act funds distributed to a county and designated for expenditure for the benefit of the county common schools under the provisions of 17-3-232;

(c)  all money paid into the county treasury as a result of fines for violations of law, except money paid to a justice's court, and the use of which is not otherwise specified by law;

(d)  any money remaining at the end of the immediately preceding school fiscal year in the county treasurer's accounts for the various sources of revenue established or referred to in this section;

(e)  any federal or state money distributed to the county as payment in lieu of property taxation, including federal forest reserve funds allocated under the provisions of 17-3-213;

(f)  gross proceeds taxes from coal under 15-23-703;

(g)  oil and natural gas production taxes;

(h)  anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325; and

(i)  anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204."

Section 11.  Section 20-9-333, MCA, is amended to read:

"20-9-333.   Basic special levy and other revenue for county equalization of high school district BASE funding program. (1) The county commissioners of each county shall levy an annual basic special tax for high schools of 22 mills on the dollar of the taxable value of all taxable property within the county, except for property subject to a tax or fee under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204, for the purposes of local and state BASE funding program support. The revenue collected from this levy must be apportioned to the support of the BASE funding programs of high school districts in the county and to the state general fund in the following manner:

(a)  In order to determine the amount of revenue raised by this levy that is retained by the county, the sum of the estimated revenue identified in subsection (2) must be subtracted from the sum of the county's high school tuition obligation and the total of the BASE funding programs of all high school districts of the county.

(b)  If the basic levy and other revenue prescribed by this section produce more revenue than is required to repay a state advance for county equalization, the county treasurer shall remit the surplus funds to the state treasurer for deposit to the state general fund immediately upon occurrence of a surplus balance and each subsequent month thereafter, with any final remittance due no later than June 20 of the fiscal year for which the levy has been set.

(2)  The revenue realized from the county's portion of the levy prescribed in this section and the revenue from the following sources must be used for the equalization of the high school BASE funding program of the county as prescribed in 20-9-335, and a separate accounting must be kept of the revenue by the county treasurer in accordance with 20-9-212(1):

(a)  any money remaining at the end of the immediately preceding school fiscal year in the county treasurer's accounts for the various sources of revenue established in this section;

(b)  any federal or state money distributed to the county as payment in lieu of property taxation, including federal forest reserve funds allocated under the provisions of 17-3-213;

(c)  gross proceeds taxes from coal under 15-23-703;

(d)  oil and natural gas production taxes;

(e)  anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325; and

(f)  anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204."

Section 12.  Section 20-9-360, MCA, is amended to read:

"20-9-360.   State equalization aid levy. (1) There is a levy of 40 mills imposed by the county commissioners of each county on all taxable property within the state, except property for which a tax or fee is required under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204. Except as provided in subsection (2), proceeds of the levy must be remitted to the state treasurer and must be deposited to the credit of the state general fund for state equalization aid to the public schools of Montana.

(2)  For the benefit of each municipality that created an urban renewal area and adopted a tax increment financing provision for the urban renewal area prior to July 1, 1990, the state treasurer shall distribute each fiscal year from the state equalization aid levy to the municipality the amount, if any, equal to the product of the incremental taxable value of the urban renewal area times the reduced school levy for the area, each calculated for the fiscal year. The reduced school levy for a fiscal year is the difference between the aggregate amount of all property tax levies for school purposes in the urban renewal area, expressed in mills, in the fiscal year ended June 30, 1989, and the aggregate amount of all property tax levies for school purposes in the area or the district, expressed in mills, in the fiscal year, including the state equalization aid levy. The state treasurer shall distribute the amounts to municipalities in two equal installments on December 31 and June 30 of the fiscal year."

Section 13.  Section 20-9-501, MCA, is amended to read:

"20-9-501.   Retirement fund. (1) The trustees of a district employing personnel who are members of the teachers' retirement system or the public employees' retirement system or who are covered by unemployment insurance or who are covered by any federal social security system requiring employer contributions shall establish a retirement fund for the purposes of budgeting and paying the employer's contributions to the systems. The district's contribution for each employee who is a member of the teachers' retirement system must be calculated in accordance with Title 19, chapter 20, part 6. The district's contribution for each employee who is a member of the public employees' retirement system must be calculated in accordance with 19-3-316. The district's contributions for each employee covered by any federal social security system must be paid in accordance with federal law and regulation. The district's contribution for each employee who is covered by unemployment insurance must be paid in accordance with Title 39, chapter 51, part 11.

(2)  The trustees of a district required to make a contribution to a system referred to in subsection (1) shall include in the retirement fund of the preliminary budget the estimated amount of the employer's contribution. After the final retirement fund budget has been adopted, the trustees shall pay the employer contributions to the systems in accordance with the financial administration provisions of this title.

(3)  When the final retirement fund budget has been adopted, the county superintendent shall establish the levy requirement by:

(a)  determining the sum of the money available to reduce the retirement fund levy requirement by adding:

(i)  any anticipated money that may be realized in the retirement fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204;

(ii)  oil and natural gas production taxes;

(iii) anticipated local government severance tax payments for calendar year 1995 production as provided in 15-36-325;

(iv) coal gross proceeds taxes under 15-23-703;

(v)  any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the retirement fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the retirement fund. The retirement fund operating reserve may not be more than 35% of the final retirement fund budget for the ensuing school fiscal year and must be used for the purpose of paying retirement fund warrants issued by the district under the final retirement fund budget.

(vi) any other revenue anticipated that may be realized in the retirement fund during the ensuing school fiscal year, excluding any guaranteed tax base aid.

(b)  notwithstanding the provisions of subsection (8), subtracting the money available for reduction of the levy requirement, as determined in subsection (3)(a), from the budgeted amount for expenditures in the final retirement fund budget.

(4)  The county superintendent shall:

(a)  total the net retirement fund levy requirements separately for all elementary school districts, all high school districts, and all community college districts of the county, including any prorated joint district or special education cooperative agreement levy requirements; and

(b)  report each levy requirement to the county commissioners on the fourth Monday of August as the respective county levy requirements for elementary district, high school district, and community college district retirement funds.

(5)  The county commissioners shall fix and set the county levy in accordance with 20-9-142.

(6)  The net retirement fund levy requirement for a joint elementary district or a joint high school district must be prorated to each county in which a part of the district is located in the same proportion as the district ANB of the joint district is distributed by pupil residence in each county. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county as provided in 20-9-151.

(7)  The net retirement fund levy requirement for districts that are members of special education cooperative agreements must be prorated to each county in which the district is located in the same proportion as the special education cooperative budget is prorated to the member school districts. The county superintendents of the counties affected shall jointly determine the net retirement fund levy requirement for each county in the same manner as provided in 20-9-151, and the county commissioners shall fix and levy the net retirement fund levy for each county in the same manner as provided in 20-9-152.

(8)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the county to finance the retirement fund net levy requirement by dividing the amount determined in subsection (4)(a) by the sum of:

(a)  the amount of guaranteed tax base aid that the county will receive for each mill levied, as certified by the superintendent of public instruction; and

(b)  the taxable valuation of the district divided by 1,000."

Section 14.  Section 20-10-144, MCA, is amended to read:

"20-10-144.   Computation of revenue and net tax levy requirements for district transportation fund budget. Before the fourth Monday of July and in accordance with 20-9-123, the county superintendent shall compute the revenue available to finance the transportation fund budget of each district. The county superintendent shall compute the revenue for each district on the following basis:

(1)  The "schedule amount" of the preliminary budget expenditures that is derived from the rate schedules in 20-10-141 and 20-10-142 must be determined by adding the following amounts:

(a)  the sum of the maximum reimbursable expenditures for all approved school bus routes maintained by the district (to determine the maximum reimbursable expenditure, multiply the applicable rate per bus mile by the total number of miles to be traveled during the ensuing school fiscal year on each bus route approved by the county transportation committee and maintained by the district); plus

(b)  the total of all individual transportation per diem reimbursement rates for the district as determined from the contracts submitted by the district multiplied by the number of pupil-instruction days scheduled for the ensuing school attendance year; plus

(c)  any estimated costs for supervised home study or supervised correspondence study for the ensuing school fiscal year; plus

(d)  the amount budgeted on the preliminary budget for the contingency amount permitted in 20-10-143, except if the amount exceeds 10% of the total of subsections (1)(a), (1)(b), and (1)(c) or $100, whichever is larger, the contingency amount on the preliminary budget must be reduced to the limitation amount and used in this determination of the schedule amount; plus

(e)  any estimated costs for transporting a child out of district when the child has mandatory approval to attend school in a district outside the district of residence.

(2)  (a) The schedule amount determined in subsection (1) or the total preliminary transportation fund budget, whichever is smaller, is divided by 2 and is used to determine the available state and county revenue to be budgeted on the following basis:

(i)  one-half is the budgeted state transportation reimbursement, except that the state transportation reimbursement for the transportation of special education pupils under the provisions of 20-7-442 must be 50% of the schedule amount attributed to the transportation of special education pupils; and

(ii) one-half is the budgeted county transportation fund reimbursement and must be financed in the manner provided in 20-10-146.

(b)  When the district has a sufficient amount of cash for reappropriation and other sources of district revenue, as determined in subsection (3), to reduce the total district obligation for financing to zero, any remaining amount of district revenue and cash reappropriated must be used to reduce the county financing obligation in subsection (2)(a)(ii) and, if the county financing obligations are reduced to zero, to reduce the state financial obligation in subsection (2)(a)(i).

(c)  The county revenue requirement for a joint district, after the application of any district money under subsection (2)(b), must be prorated to each county incorporated by the joint district in the same proportion as the ANB of the joint district is distributed by pupil residence in each county.

(3)  The total of the money available for the reduction of property tax on the district for the transportation fund must be determined by totaling:

(a)  anticipated federal money received under the provisions of Title I of Public Law 81-874 or other anticipated federal money received in lieu of that federal act;

(b)  anticipated payments from other districts for providing school bus transportation services for the district;

(c)  anticipated payments from a parent or guardian for providing school bus transportation services for a child;

(d)  anticipated or reappropriated interest to be earned by the investment of transportation fund cash in accordance with the provisions of 20-9-213(4);

(e)  anticipated or reappropriated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204;

(f)  anticipated revenue from coal gross proceeds under 15-23-703;

(g)  anticipated oil and natural gas production taxes;

(h)  anticipated local government severance tax payments for calendar year 1995 production;

(i)  anticipated transportation payments for out-of-district pupils under the provisions of 20-5-320 through 20-5-324;

(j)  any other revenue anticipated by the trustees to be earned during the ensuing school fiscal year that may be used to finance the transportation fund; and

(k)  any fund balance available for reappropriation as determined by subtracting the amount of the end-of-the-year fund balance earmarked as the transportation fund operating reserve for the ensuing school fiscal year by the trustees from the end-of-the-year fund balance in the transportation fund. The operating reserve may not be more than 20% of the final transportation fund budget for the ensuing school fiscal year and is for the purpose of paying transportation fund warrants issued by the district under the final transportation fund budget.

(4)  The district levy requirement for each district's transportation fund must be computed by:

(a)  subtracting the schedule amount calculated in subsection (1) from the total preliminary transportation budget amount; and

(b)  subtracting the amount of money available to reduce the property tax on the district, as determined in subsection (3), from the amount determined in subsection (4)(a).

(5)  The transportation fund levy requirements determined in subsection (4) for each district must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the transportation fund levy requirements for the district, and the levy must be made by the county commissioners in accordance with 20-9-142."

Section 15.  Section 20-10-146, MCA, is amended to read:

"20-10-146.   County transportation reimbursement. (1) The apportionment of the county transportation reimbursement by the county superintendent for school bus transportation or individual transportation that is actually rendered by a district in accordance with this title, board of public education transportation policy, and the transportation rules of the superintendent of public instruction must be the same as the state transportation reimbursement payment, except that:

(a)  if any cash was used to reduce the budgeted county transportation reimbursement under the provisions of 20-10-144(2)(b), the annual apportionment is limited to the budget amount;

(b)  when the county transportation reimbursement for a school bus has been prorated between two or more counties because the school bus is conveying pupils of more than one district located in the counties, the apportionment of the county transportation reimbursement must be adjusted to pay the amount computed under the proration; and

(c)  when county transportation reimbursement is required under the mandatory attendance agreement provisions of 20-5-321.

(2)  The county transportation net levy requirement for the financing of the county transportation fund reimbursements to districts is computed by:

(a)  totaling the net requirement for all districts of the county, including reimbursements to a special education cooperative or prorated reimbursements to joint districts or reimbursements under the mandatory attendance agreement provisions of 20-5-321;

(b)  determining the sum of the money available to reduce the county transportation net levy requirement by adding:

(i)  anticipated money that may be realized in the county transportation fund during the ensuing school fiscal year, including anticipated revenue from property taxes and fees imposed under 23-2-517, 23-2-803, 61-3-504(2), 61-3-521, 61-3-527, 61-3-537, [section 33], and 67-3-204;

(ii) oil and natural gas production taxes;

(iii) anticipated local government severance tax payments for calendar year 1995 production;

(iv) coal gross proceeds taxes under 15-23-703;

(v)  any fund balance available for reappropriation from the end-of-the-year fund balance in the county transportation fund;

(vi) federal forest reserve funds allocated under the provisions of 17-3-213; and

(vii) other revenue anticipated that may be realized in the county transportation fund during the ensuing school fiscal year; and

(c)  subtracting the money available, as determined in subsection (2)(b), to reduce the levy requirement from the county transportation net levy requirement.

(3)  The net levy requirement determined in subsection (2)(c) must be reported to the county commissioners on the fourth Monday of August by the county superintendent, and a levy must be set by the county commissioners in accordance with 20-9-142.

(4)  The county superintendent shall apportion the county transportation reimbursement from the proceeds of the county transportation fund. The county superintendent shall order the county treasurer to make the apportionments in accordance with 20-9-212(2) and after the receipt of the semiannual state transportation reimbursement payments."

NEW SECTION. Section 16.  Light vehicle. "Light vehicle" means a motor vehicle commonly referred to as an automobile, van, sport utility vehicle, or truck having a manufacturer's rated capacity of 1 ton or less.

NEW SECTION. Section 17.  Sport utility vehicle. "Sport utility vehicle" means a light vehicle designed to transport 10 or fewer persons that is constructed on a truck chassis or that has special features for occasional off-road use. The term does not include trucks having a manufacturer's rated capacity of 1 ton or less.

Section 18.  Section 61-3-101, MCA, is amended to read:

"61-3-101.   Duties of department -- records. (1) The department shall keep a record as specified in this section of all motor vehicles, trailers, and semitrailers of every kind, and of certificates of registration and ownership of those vehicles, and of all manufacturers and dealers in motor vehicles.

(2)  The record must show the following:

(a)  name of owner, residence address by street or rural route, town, and county, and mailing address if different than residence address;

(b)  name and address of conditional sales vendor, mortgagee, or other lienholder and amount due under contract or lien;

(c)  manufacturer of vehicle;

(d)  manufacturer's designation of style of vehicle;

(e)  identifying number;

(f)  year of manufacture;

(g)  character of motive power and shipping weight of vehicle as shown by the manufacturer;

(h)  the distinctive license number assigned to the vehicle, if any;

(i)  if a truck or trailer, the number of tons' capacity or GVW if imprinted on manufacturer's identification plate;

(j)  except as provided in 61-3-103, the name and complete address of any holder of a perfected security interest in the vehicle; and

(k)  other information that may from time to time be found desirable.

(3)  The department shall file applications for registration received by it from the county treasurers of the state and register the vehicles and the vehicle owners as follows:

(a)  under the distinctive license number assigned to the vehicle by the county treasurer;

(b)  alphabetically under the name of the owner;

(c)  numerically under make and identifying number of the vehicle; and

(d)  other another index of registration as the department considers expedient.

(4) The department shall determine the amount of motor vehicle taxes and fees to be collected at the time of registration for each light vehicle subject to tax under 61-3-503 and for each bus, truck having a manufacturer's rated capacity of more than 1 ton, and truck tractor subject to a fee in lieu of tax under [sections 32 and 33]. The county treasurer shall collect the taxes and fees on each motor vehicle at the time of its registration.

(5)  Vehicle registration records and indexes and driver's license records and indexes may be maintained by electronic recording and storage media.

(5)(6)  In the case of dealers, the records must show the information contained in the application for a dealer's license as required by 61-4-101 through 61-4-105, as well as the distinctive license number assigned to the dealer.

(6)(7)  In order to prevent an accumulation of unneeded records and files, regardless of any other statutory requirements, the department may destroy all records and files that relate to vehicles that have not been registered within the preceding 4 years and that do not have an active lien.

(7)(8)  All records must be open to inspection during all reasonable business hours, and the department shall furnish any information from the records upon payment by the applicant of the cost of the information requested. Prior to providing the information, the department may require the applicant to provide identification. However, the department may, by rule, reasonably restrict disclosure of information on an owner or the owner's vehicle if the owner has requested in writing that the department not disclose the information."

Section 19.  Section 61-3-208, MCA, is amended to read:

"61-3-208.   Affidavit and bond for certificate. (1) If an applicant for a motor vehicle certificate of title cannot provide the department with a certificate of title transferred to the applicant, the department may issue a certificate of title for the vehicle if the applicant furnishes an affidavit in a form prescribed by the department.

(2)  The affidavit must be signed and sworn to before an officer authorized to administer oaths and affirmations. The affidavit must accompany the application for the certificate of title and include:

(a)  the facts and circumstances through which the applicant acquired ownership and possession of the motor vehicle;

(b)  information as required by the department to enable it to determine what security interests, liens, and encumbrances against the motor vehicle, if any, are outstanding against the motor vehicle;

(c)  the date and the amount secured by the security interests, liens, and encumbrances, if any; and

(d)  a statement that the applicant has the right to have a certificate of title issued.

(3)  If after examination of the application, affidavit, and any other evidence the department determines that a certificate of title for the motor vehicle should be issued to the applicant, the department shall require the applicant to file with the department a good and sufficient bond before issuing the certificate of title. The bond must be:

(a)  in an amount equal to the average trade-in or wholesale value of the motor vehicle as determined under the provisions of 61-3-503(1)(c) by the applicable national appraisal guide for the vehicle as of January 1 for the year in which the application for certificate of title is made;. When a national appraisal guide is not available for a vehicle, the department shall determine an alternative value for the vehicle.

(b)  conditioned to indemnify a prior owner, lienholder, subsequent purchaser, secured creditor, or encumbrancer of the motor vehicle, and any respective successors in interest, against expenses, losses, or damages caused by the issuance of the certificate or by a defect in or undisclosed security interest upon the right, title, and interest of the applicant in the motor vehicle; and

(c)  issued by a surety company authorized to do business in the state.

(4)  Any interested person has a right of action to recover on the bond for a breach of its conditions, but the aggregate liability of the surety to all persons may not exceed the amount of the bond.

(5)  Unless the department has been notified of a pending action to recover the bond, the department shall return the bond at the earlier of:

(a)  3 years from the date of issuance of the certificate of title; or

(b)  the date of surrender of the valid certificate of title to the department if the vehicle is no longer registered in this state."

Section 20.  Section 61-3-303, MCA, is amended to read:

"61-3-303.   Application for registration. (1) Each owner of a motor vehicle operated or driven upon the public highways of this state shall for each motor vehicle owned, except as otherwise provided in this section, file or cause to be filed in the office of the county treasurer where the owner permanently resides at the time of making the application or, if the vehicle is owned by a corporation or used primarily for commercial purposes, in the taxing jurisdiction of the county where the vehicle is permanently assigned, an application for registration or reregistration upon a blank on a form to be prepared and furnished prescribed by the department. The application must contain:

(a)  the name and address of the owner, giving the county, school district, and town or city within whose corporate limits the motor vehicle is taxable, if taxable, or within whose corporate limits the owner's residence is located if the motor vehicle is not taxable;

(b)  the name and address of the holder of any security interest in the motor vehicle;

(c)  a description of the motor vehicle, including make, year model, engine or serial number, manufacturer's model or letter, gross weight, declared weight on all trucks for which the manufacturer's rated capacity is 1 ton or less, and type of body and, if a truck, the manufacturer's rated capacity;

(d)  the declared weight on all trailers operating intrastate, except travel trailers or trailers and semitrailers registered as provided in 61-3-711 through 61-3-733; and

(e)  other information that the department may require.

(2)  A person who files an application for registration or reregistration of a motor vehicle, except of a mobile home as defined in 15-1-101(1), shall upon the filing of the application pay to the county treasurer:

(a)  the registration fee, as provided in 61-3-311 and 61-3-321 or 61-3-456; and

(b)  except as provided in 61-3-456 or unless it has been previously paid:

(i)  the personal property motor vehicle taxes or fees in lieu of tax assessed or imposed against the vehicle for the current year of registration and the immediately previous year; or

(ii) the new motor vehicle sales tax against the vehicle for the current year of registration.

(3)  The application may not be accepted by the county treasurer unless the payments required by subsection (2) accompany the application. The department of revenue may not assess or impose and the county treasurer may not collect taxes or fees for a period other than:

(a)  the current year; and

(b)  the immediately previous year if the vehicle was not registered or operated on the highways of the state, regardless of the period of time since the vehicle was previously registered or operated.

(4)  The department of revenue may make full and complete investigation of the tax status of the vehicle. An applicant for registration or reregistration shall submit proof from the tax or other appropriate records of the proper county at the request of the department of revenue."

Section 21.  Section 61-3-456, MCA, is amended to read:

"61-3-456.   Registration of motor vehicle owned and operated by Montana resident on active military duty stationed outside Montana. (1) An owner of a motor vehicle who is a Montana resident on active military duty and stationed outside Montana may file with the department an application for the registration of the motor vehicle. The application must be sworn to before an officer authorized to administer oaths. The application must state:

(a)  the name and address of the owner;

(b)  the make, the gross weight, the year and number of the model, and the manufacturer's identification number and serial number of the motor vehicle; and

(c)  that the vehicle is owned and operated by a Montana resident who is on active military duty and stationed outside Montana.

(2)  The registration fee for a motor vehicle registered under subsection (1) is as provided in 61-3-311 and 61-3-321.

(3)  A vehicle registered under this section is not subject to:

(a)  the taxes described in 61-3-303(2)(b);

(b)  assessment under 15-8-202 or 61-3-503 or the fee in lieu of tax under [section 33]; or

(c)  any of the fees provided in part 5 of this chapter."

Section 22.  Section 61-3-501, MCA, is amended to read:

"61-3-501.   When vehicle taxes and fees are due. (1) Property Motor vehicle taxes, fees in lieu of tax, new car taxes, and fees must be paid on the date of registration or reregistration of the vehicle.

(2)  If the anniversary date for reregistration of a vehicle passes while the vehicle is owned and held for sale by a licensed new or used car dealer, property motor vehicle taxes or fees in lieu of tax abate on such the vehicle properly reported with the department of revenue county treasurer until the vehicle is sold and thereafter. After the sale, the purchaser shall pay the pro rata balance of the taxes or fees in lieu of tax due and owing on the vehicle.

(3)  In the event that a vehicle's registration period is changed under 61-3-315, all taxes or fees in lieu of tax and other fees due thereon shall must be prorated and paid from the last day of the old period until the first day of the new period in which the vehicle shall be is registered. Thereafter The taxes or fees in lieu of tax and other fees must be paid from the first day of the new period for a minimum period of 1 year. When the change is to a later registration period, taxes and fees shall must be prorated and paid based on the same tax year as the original registration period. Thereafter, during the appropriate anniversary registration period, each vehicle shall must again register or reregister be registered or reregistered and shall pay all taxes and fees due thereon must be paid for a 12-month period."

Section 23.  Section 61-3-503, MCA, is amended to read:

"61-3-503.   Assessment. (1) Except as provided in 61-3-520 and subsection (2)(4) of this section, the following apply to the taxation of motor vehicles:

(a)  Except as provided in subsections (1)(c) through (1)(e), a person who files an application for registration or reregistration of a motor vehicle shall before filing the application with the county treasurer submit the application to the department of revenue. The department of revenue shall enter on the application in a space to be provided for that purpose the market value and taxable value of the vehicle as of January 1 of the year for which the application for registration is made.

(b)  Except as provided in subsection (1)(c), motor vehicles are assessed for taxes on January 1 in each year irrespective of the time fixed by law for the assessment of other classes of personal property and irrespective of whether the levy and tax may be a lien upon real property within the state. A motor vehicle is not subject to assessment, levy, and taxation more than once in each year.

(c)(a)  Vehicles subject to the provisions of 61-3-313 through 61-3-316 must be assessed as of the first day of the registration period, using the average trade-in or wholesale value as of January 1 of the year of assessment of the vehicle as contained in the most recent volume of the Mountain States Edition of the National Automobile Dealers Association (N.A.D.A.) Official Used Car Guide, the National Edition of N.A.D.A. Appraisal Guides Official Older Used Car Guide, or another nationally published used vehicle or appraisal guide approved by the department of revenue or, for a vehicle that was never listed in any edition of the preceding guides, the retail value of the vehicle as determined by the department of revenue, and depreciated 10% a year until a value of $500 is reached, not including additions or deductions for options and mileage but including additions or deductions, whether or not one of the preceding guides is used, for diesel engines; and a depreciated value of the manufacturer's suggested retail price as determined in subsection (2).

(b) A lien for taxes and fees due on the vehicle occurs on the anniversary date of the registration and continues until the fees and taxes have been paid. If the depreciated value shown in any of the appraisal guides listed in this section is less than $500, the department shall value the vehicle at $500.

(d)  Quadricycles must be assessed, using the greater of the following:

(e)  If a vehicle assessed under subsection (1)(c) or (1)(d) is not originally listed in the applicable N.A.D.A. guide or other approved guide, the department of revenue shall depreciate the original f.o.b. factory list price, f.o.b. port-of-entry list price, or the manufacturer's suggested list price, using the following methods:

(2) (a) Except as provided in subsections (2)(c) and (2)(d), the depreciated value for the taxation of light vehicles is computed by multiplying the manufacturer's suggested retail price by a percentage multiplier based on the type and age of the vehicle determined from the following table:

(b) The age for the light vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the tax is due.

(c) If the value of the vehicle determined under subsection (2)(a) is $500 or less, the value of the vehicle is $500 and the value must remain at that amount as long as the vehicle is registered.

(d) The depreciated value of a light vehicle that is 17 years old or older is computed by depreciating the value obtained for the vehicle at 16 years old as determined under subsection (2)(a) by 10% a year until a minimum value of $500 is attained. The value must remain at that amount as long as the vehicle is registered.

(3) (a) For the purposes of this section, "manufacturer's suggested retail price" means the price suggested by the manufacturer for each given type, style, or model of light vehicle produced and first made available for retail sale by the manufacturer.

(2)(4)  The provisions of subsections (1)(a) (1) through (1)(g) (3) do not apply to buses, trucks having a manufacturer's rated capacity of more than 1 ton, truck tractors, motorcycles, motor homes, quadricycles, travel trailers, campers, or mobile homes as defined in 15-1-101(1)."

Section 24.  Section 61-3-504, MCA, is amended to read:

"61-3-504.   Computation of tax. (1) The amount of taxes on a motor light vehicle, other than an automobile, truck having a rated capacity of 1 ton or less, motorcycle, quadricycle, motor home, travel trailer, camper, or mobile home, is computed and determined by the county treasurer on the basis of the levy of the year preceding the current year of application for registration or reregistration.

(2)  The amount of tax on an automobile or truck having a rated capacity of 1 ton or less, except for vehicles registered under 61-3-456 or owned by disabled veterans qualifying for special license plates under 61-3-332(10)(c)(i)(A) or 61-3-426(2), and on a quadricycle is 2% of the value determined under 61-3-503.

(3)(2)  The amount of tax on fleet vehicles subject to the provisions of 61-3-318 is 1% of the value determined under 61-3-503.

(4)  For all taxable motor vehicles, the amount of tax is entered on the application form in a space provided for that purpose."

Section 25.  Section 61-3-506, MCA, is amended to read:

"61-3-506.   Rules. (1) The department of revenue shall adopt rules for the payment of property taxes and the department of transportation shall adopt rules for the payment of new car taxes under the provisions of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520. The department of revenue may adopt rules for the proration of taxes for the implementation and administration of 61-3-313 through 61-3-316, 61-3-501, and 61-3-520, but shall specifically provide that new car taxes shall be for a 12-month period

(2) The department of justice may adopt rules:

(b) for the imposition and collection of fees in lieu of tax, including the proration of fees in lieu of tax under 61-3-520, on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, including criteria for determining the vehicle's age and manufacturer's rated capacity."

Section 26.  Section 61-3-507, MCA, is amended to read:

"61-3-507.   Exemption. (1) A motor vehicle subject to anniversary date registration as provided in 61-3-313 through 61-3-316 is exempt from the provisions of 61-3-503(1)(b).

(2)  A vehicle that is exempt from taxation under 15-6-215 or subject to the provisions of 61-3-520 is exempt from all other taxes and fees generally imposed on a vehicle by this part."

Section 27.  Section 61-3-509, MCA, is amended to read:

"61-3-509.   Disposition of taxes. (1) Except as provided in subsection (2), the county treasurer shall, after deducting the district court fee, credit all taxes on motor vehicles and fees in lieu of tax on motorcycles, quadricycles, motor homes, travel trailers, and campers, buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors collected under 61-3-504, 61-3-521, 61-3-527, and 61-3-537, and [section 33] to a motor vehicle suspense fund, and at. At some time between March 1 and March 10 of each year and every 60 days after that date, the county treasurer shall distribute the money in the motor vehicle suspense fund in the relative proportions required by the levies for state, county, school district, and municipal purposes in the same manner as personal property taxes are distributed.

(2)  The county treasurer shall deduct as a district court fee 7% of the amount of the 2% tax collected on an automobile or truck having a rated capacity of 1 ton or less light vehicles. The county treasurer shall credit the fee for district courts to a separate suspense account and shall forward the amount in the account to the state treasurer at the time that the county treasurer distributes money from the motor vehicle suspense fund. The state treasurer shall credit amounts received under this subsection to the general fund to be used for purposes of state funding of the district court expenses as provided in 3-5-901."

Section 28.  Section 61-3-520, MCA, is amended to read:

"61-3-520.   Taxation of Taxes and fees on vehicles used exclusively in filming motion pictures or television commercials. (1) A vehicle used exclusively in the filming of motion pictures or television commercials that has been in the state for a period exceeding 180 consecutive days in a calendar year must be assessed is subject to assessment or a fee in lieu of tax as if the vehicle were not used exclusively for filming motion pictures or television commercials, but the assessment or fee in lieu of tax must be prorated as provided in subsection (2).

(2)  The taxes assessed or the fees in lieu of tax imposed under subsection (1) must be prorated by dividing the number of days in excess of 180 consecutive days in the calendar year by 365.

(3) (a) Taxes on a vehicle imposed pursuant to this section must be collected as provided in Title 15, chapter 16, part 1, for the collection of personal property taxes generally.

(b) Fees on a vehicle imposed pursuant to this section must be collected as provided in this chapter."

Section 29.  Section 61-3-527, MCA, is amended to read:

"61-3-527.   Fee in lieu of tax for motorcycles and quadricycles -- schedule of fees. (1) (a) There is a fee in lieu of property tax imposed on motorcycles and quadricycles. The fee is in addition to annual registration fees.

(b)  The fee imposed by subsection (1)(a) need is not required to be paid by a dealer for motorcycles or quadricycles that constitute inventory of the dealership.

(2)  The owner of a motorcycle or quadricycle shall pay a fee based on the age of the motorcycle or quadricycle and the size of the engine, as follows:

(a)  The fee schedule for a motorcycle or quadricycle with an engine that measures from 1 cubic centimeter to 600 cubic centimeters is as follows:

(i)  less than 2 years old, $30;

(ii) 2 years old and less than 5 years old, $25;

(iii) 5 years old and less than 11 years old, $15; and

(iv) 11 years old and older, $10.

(b)  The fee schedule for a motorcycle or quadricycle with an engine that measures from 601 cubic centimeters to 1,000 cubic centimeters is as follows:

(i)  less than 2 years old, $70;

(ii) 2 years old and less than 5 years old, $55;

(iii) 5 years old and less than 11 years old, $40; and

(iv) 11 years old and older, $30.

(c)  The fee schedule for a motorcycle or quadricycle with an engine that measures 1,001 cubic centimeters and larger is as follows:

(i)  less than 2 years old, $110;

(ii) 2 years old and less than 5 years old, $90;

(iii) 5 years old and less than 11 years old, $65; and

(iv) 11 years old and older, $40.

(d)  The age of a motorcycle or quadricycle is determined by subtracting the manufacturer's designated model year from the current calendar year."

Section 30.  Section 61-3-535, MCA, is amended to read:

"61-3-535.   Vehicle reregistration by mail -- renewal cards reminder notice and reregistration notice by mail. (1) Except as provided in subsection (2), an owner of the following types of motor vehicles may reregister by mail:

(2)  The option to reregister by mail need only be made available for vehicles, motor homes, and travel trailers registered at the close of the expiring registration period in the name of the applicant for reregistration and only if The department may allow the owner of a motor vehicle to renew the registration of a vehicle by mail when the value, age, length, weight, or other criteria used to determine the tax or fee for a particular type of vehicle is available to the department by electronic means.

(3)(2)  The department shall develop a procedure to facilitate the reregistration by mail of the vehicles listed in subsection (1). The Any mail reregistration procedure developed by the department must include a procedure to facilitate automated handling of mail reregistration or recertification.

(4)  The procedure implemented by the department to permit reregistration or camper decal application by mail must and must provide for a written reminder notice by mail to a vehicle owner of the requirement to reregister the owner's vehicle with the county treasurer or to apply for the annual camper decal.

(5)(3)  The department shall adopt rules to implement the mail reregistration and decal application procedure."

Section 31.  Section 61-3-537, MCA, is amended to read:

"61-3-537.   (Temporary) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2). The first priority of the local vehicle tax is for district court funding, and the tax is distributed as follows:

(a)  50% to the county; and

(b)  the remaining 50% to the county and the incorporated cities and towns within the county, apportioned on the basis of population. The distribution to a city or town is determined by multiplying the amount of money available by the ratio of the population of the city or town to the total county population. The distribution to the county is determined by multiplying the amount of money available by the ratio of the population of unincorporated areas within the county to the total county population.

(3)  The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution. The resolution may provide for the distribution of the local vehicle tax. (Terminates June 30, 2005--sec. 2, 3, Ch. 217, L. 1995.)

61-3-537.   (Effective July 1, 2005) Local option vehicle tax. (1) A county may impose a local vehicle tax on vehicles subject to a property tax under 61-3-504(2) at a rate of up to 0.5% of the value determined under 61-3-503, in addition to the tax imposed under 61-3-504(2).

(2)  A local vehicle tax is payable at the same time and in the same manner as the tax imposed under 61-3-504(2) and is distributed in the same manner, based on the registration address of the owner of the motor vehicle.

(3)  The governing body of a county may impose, revise, or revoke a local vehicle tax by adopting a resolution before July 1, after conducting a public hearing on the proposed resolution."

NEW SECTION. Section 32.  Definitions. As used in [section 33] and this section, unless the context requires otherwise, the following definitions apply:

(1) "Bus" has the same meaning as provided in 61-1-115.

(2) "Manufacturer's rated gross combined weight" means the manufacturer's published weight of the allowable load for a truck tractor and trailer combined and includes the weight of the truck tractor and the trailer.

(3) "Manufacturer's rated gross vehicle weight" means the manufacturer's published weight of the allowable load for a truck and includes the weight of the truck.

(4) "Truck" means a motor vehicle designed to carry an entire load. The truck may consist of a chassis and body or a chassis-cab and body or it may be of unitized construction so that the body and cab appear to be a single unit.

(5) "Truck tractor" has the same meaning as provided in 61-1-108.

NEW SECTION. Section 33.  Schedule of fees for buses, motor vehicles having rated capacity of more than 1 ton, and truck tractors -- proration -- exemption. (1) (a) There is a fee in lieu of property tax imposed on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors. The fee is in addition to annual registration fees.

(b) The fee imposed by subsection (1)(a) is not required to be paid by a dealer of buses, trucks, or truck tractors that constitute inventory of the dealership.

(2) Subject to the conditions of subsection (4), the owner of a bus, truck with a manufacturer's rated capacity of more than 1 ton, or truck tractor shall pay a fee in lieu of tax based on the age and manufacturer's rated capacity of the vehicle according to the following schedule:

Age of Vehicle Rated Capacity (in pounds)

(in years) 16,999 or less 17,000-26,999 27,000-54,999 55,000 or more

1 or less $234 $334 $568 $750

2 218 300 500 600

3 200 268 440 532

4 184 234 368 484

5 166 218 320 390

6 150 200 268 334

7 132 182 234 294

8 116 166 200 250

9 100 150 184 218

10 82 116 158 184

11-12 66 100 134 152

13-14 56 74 104 122

15-16 50 60 76 94

17-18 36 52 58 72

19-20 26 38 44 52

21 or more 20 24 32 40

(3) The age of the vehicle is determined by subtracting the manufacturer's model year of the vehicle from the calendar year for which the fee in lieu of tax is due.

(4) (a) The manufacturer's rated capacity for a bus or truck with a manufacturer's rated capacity of more than 1 ton is the manufacturer's rated gross vehicle weight.

(b) The manufacturer's rated capacity for a truck tractor is the manufacturer's rated gross combined weight.

(5) A motor vehicle brought into the state or otherwise used for the exclusive purpose of filming motion pictures or television commercials is exempt from the fee in lieu of tax if the vehicle does not remain in the state for a period in excess of 180 consecutive days in a calendar year.

(6) Except as provided in 61-3-520, the fee in lieu of tax on a vehicle subject to this section that is brought or driven into this state by a nonresident person for hire, compensation, or profit must be prorated according to the ratio that the remaining number of months in the year bears to the total number of months in the year.

(7) (a) The fee in lieu of tax on a vehicle subject to this section that is registered in the state for the first time must be prorated as provided in subsection (6).

(b) The fee in lieu of tax on a vehicle subject to this section that is reregistered in the state is for a full year.

(8) The fee in lieu of tax may not be refunded.

NEW SECTION. Section 34.  Assessment of proportionally registered interstate motor vehicle fleets -- payment of tax or fee in lieu of tax required for registration. (1) (a) Except as provided in subsection (2), the department of transportation shall determine the fee for the purpose of imposing the fee in lieu of tax as provided in [sections 32 and 33] on buses, trucks having a manufacturer's rated capacity of more than 1 ton, and truck tractors, in interstate motor vehicle fleets that are proportionally registered under the provisions of 61-3-711 through 61-3-733. The fee must be apportioned on the ratio of total miles traveled to in-state miles traveled as prescribed by 61-3-721. The fee in lieu of tax on interstate motor vehicle fleets is imposed upon application for proportional registration and must be paid by the persons who own or claim the fleet or in whose possession or control the fleet is at the time of the application.

(b)  With respect to an original application for a fleet that has a situs in Montana for the purpose of the fee in lieu of tax under this part or any other provision of the laws of Montana, the fee in lieu of tax on fleet vehicles must be prorated according to the ratio that the remaining number of months in the year bears to the total

number of months in the year.

(2)  For the purpose of taxation, the department of transportation shall assess light vehicles, as defined in [section 16], that are part of an interstate motor vehicle fleet as follows:

(a) The value of each vehicle is determined in the same manner as provided in 61-3-503.

(b) The value determined under subsection (2)(a) multiplied by the percent of miles traveled in Montana, as prescribed by 61-3-721, is the market value.

(c) The sum of the market value of all vehicles subject to tax under this subsection (2) multiplied by 2% is the tax for the entire fleet.

(d)  With respect to an original application for a fleet that has a situs in Montana for the purpose of taxation under this part or any other provision of the laws of Montana, the taxes on taxable vehicles are determined as provided in subsection (2)(b).

(e) Vehicles taxed as part of a fleet under this subsection (2) are not subject to the local option tax imposed under 61-3-537.

(3)  With respect to a renewal application for a fleet, taxable vehicles are assessed and taxed for a full year and for all other vehicles the fee in lieu of tax is imposed for a full year.

(4)  Vehicles contained in a fleet for which current taxes or fees, or both, have been assessed and paid may not be assessed or charged fees under this section upon presentation to the department of proof of payment of taxes, fees, or both for the current registration year. The payment of fleet vehicle taxes, fees in lieu of tax, and license fees is a condition precedent to proportional registration or reregistration of an interstate motor vehicle fleet.

(5) All taxes and fees collected on motor vehicle fleets under this chapter must be deposited and distributed as provided in [section 36].

NEW SECTION. Section 35.  Situs in state of proportionally registered fleets -- collection of taxes and fees. (1) For the purposes of this part, any vehicle previously registered or that has had application for registration made under the provisions of 61-3-711 through 61-3-733 has a situs in Montana for the purposes of taxation or the fee in lieu of tax.

(2)  The department of transportation shall collect the fleet vehicle taxes, the fees in lieu of tax, and license fees prescribed in this part.

NEW SECTION. Section 36.  Deposit and distribution of taxes and fees on proportionally registered fleets. The taxes, fees in lieu of tax, and license fees collected under this part must be deposited with the state treasurer for distribution to the general fund of each county on the following basis:

(1)  for fleet vehicle taxes and fees in lieu of tax, according to the ratio of the taxable valuation of each county to the total state taxable valuation; and

(2)  for fleet vehicle license fees, according to the ratio of vehicle license fees, other than fees derived from interstate motor vehicle fleets, collected in each county to the sum of all fleet vehicle fees collected in all the counties.

Section 37.  Section 61-3-701, MCA, is amended to read:

"61-3-701.   Foreign vehicles used in gainful occupation to be registered -- reciprocity. (1) Before any a foreign licensed motor vehicle may be operated on the highways of this state for hire, compensation, or profit or before the owner and/or or user thereof of the vehicle uses the vehicle if such the owner and/or or user is engaged in gainful occupation or business enterprise in the state, including highway work, the owner of the vehicle shall make application apply to a county treasurer for registration upon an application form furnished by the department. Upon satisfactory evidence of ownership submitted to the county treasurer and the payment of property motor vehicle taxes or fees in lieu of taxes, if appropriate, as required by 15-8-201, 15-8-202, 15-24-301, 61-3-504, or 61-3-537, or [section 33], the treasurer shall accept the application for registration and shall collect the regular license fee required for the vehicle.

(2)  The Upon payment of the fees or taxes, the treasurer shall thereupon issue to the applicant a copy of the certificate entitled "Owner's Certificate of Registration and Payment Receipt" and forward a duplicate copy of the certificate to the department. The treasurer shall at the same time issue to the applicant the proper license plates or other identification markers, which shall must at all times be displayed upon the vehicle when operated or driven upon roads and highways of this state during the effective period of the life of the license.

(3)  The registration receipt shall does not constitute evidence of ownership but shall must be used only for registration purposes. No A Montana certificate of ownership shall may not be issued for this type of registration.

(4)  This section is not applicable to any a vehicle covered by a valid and existing reciprocal agreement or declaration entered into under the provisions of the laws of Montana."

Section 38.  Section 61-12-402, MCA, is amended to read:

"61-12-402.   Notice to owner. (1) Within 72 hours after any a vehicle is removed and held by or at the direction of the Montana highway patrol, the highway patrol shall notify the sheriff of the county in which the vehicle was located at the time it was taken into custody and of the place where the vehicle is being held. In addition, the Montana highway patrol shall furnish the sheriff:

(a)  a complete description of the vehicle, including year, make, model, serial number, and license number if available;

(b)  any costs incurred to that date in the removal, storage, and custody of the vehicle; and

(c)  any available information concerning its ownership.

(2)  The sheriff or the city police shall make reasonable efforts to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle taken into custody under 61-12-401. If a name and address are ascertained, the sheriff or the city police shall notify the owner, and lienholder, or person of the location of the vehicle.

(3)  If the vehicle is registered in the office of the department, notice is considered to have been given when a registered or certified letter addressed to the registered owner of the vehicle and lienholder, if any, at the latest address shown by the records in the office of the department, return receipt requested and postage prepaid, is mailed at least 30 days before the vehicle is sold.

(4)  If the identity of the last-registered owner cannot be determined, if the registration does not contain an address for the owner, or if it is impossible to determine with reasonable certainty the identity and addresses of all lienholders, notice by one publication in one newspaper of general circulation in the county where the motor vehicle was abandoned is sufficient to meet all requirements of notice pursuant to this part. The notice by publication can may contain multiple listings of abandoned vehicles. The notice must be provided in the same manner as prescribed in 25-13-701(1)(b).

(5)  If the abandoned vehicle is in the possession of a motor vehicle wrecking facility licensed under 75-10-511, the wrecking facility may make the required search to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle and shall give the notices required in subsections (2) through (4). The wrecking facility shall deliver to the sheriff or the city police a certificate describing the efforts made to ascertain the name and address of the owner, lienholder, or person entitled to possession of the vehicle and shall deliver to the sheriff or the city police proof of the notice given.

(6)  A vehicle found by law enforcement officials to be a "junk vehicle", as defined by 75-10-501, and certified as having an appraised that has a value of $500 or less, as determined by the department of revenue, may be directly submitted for disposal in accordance with the provisions of part 5 of chapter 10, Title 75, chapter 10, part 5, upon a release given by the sheriff or the city police. In the release, the sheriff or the city police shall include a description of the vehicle, including year, make, model, serial number, and license number if available. A release provided by the sheriff or the city police under this section must be transmitted to the motor vehicle wrecking facility and must be considered by that facility to meet the requirements for records under 75-10-512 and 75-10-513. Vehicles described in this section may be submitted for disposal without notice and without a required holding period."

NEW SECTION. Section 39. Legislative audit committee analysis. (1) The legislative audit committee shall conduct or have conducted an analysis of alternative methods of classification, valuation, and taxation of automobiles and trucks having a manufacturer's rated capacity of 1 ton or less. The analysis must include:

(a) alternative methods of valuation and taxation;

(b) imposition of a flat tax or fees in lieu of taxes;

(c) multiyear licensing;

(d) cost-effectiveness and public convenience of alternative methods of classifying motor vehicles and of collecting motor vehicle taxes or fees;

(e) anticipated costs and revenue of alternative systems compared with the present system of classifying, valuing, and taxing motor vehicles; and

(f) alternative methods for formulas based on revenue allocations to counties.

(2) The committee shall report the results of its analysis to the 56th legislature.

NEW SECTION. Section 40.  Codification instruction. (1) [Sections 16 and 17] are intended to be codified as an integral part of Title 61, chapter 1, part 1, and the provisions of Title 61, chapter 1, part 1, apply to [sections 16 and 17].

(2) [Sections 32 and 33] are intended to be codified as an integral part of Title 61, chapter 3, part 5, and the provisions of Title 61, chapter 3, part 5, apply to [sections 32 and 33].

(3) [Sections 34 through 36] are intended to be codified as an integral part of Title 61, chapter 3, part 7, and the provisions of Title 61, chapter 3, part 7, apply to [sections 34 through 36].

NEW SECTION. Section 41.  Repealer. Sections 15-24-101, 15-24-102, 15-24-103, 15-24-104, 15-24-105, and 15-24-2501, MCA, are repealed.

NEW SECTION. Section 42.  Effective dates -- applicability -- rulemaking. (1) Except for the purposes of subsection (2), [this act] is effective January 1, 1998, and applies to tax years beginning after December 31, 1997.

(2) For the purposes of promulgating administrative rules under 61-3-506 and conducting the analysis required by [section 39], [sections 25 and 39 and this section] are effective on passage and approval."

And that this FREE Conference Committee report be adopted.

For the Senate: For the House:

Devlin, Chairman Story, Chairman

DePratu Rose

Waterman Ream

FREE CONFERENCE COMMITTEE

on Senate Bill 374

Report No. 1, April 18, 1997

Mr. President and Mr. Speaker:

We, your Free Conference Committee on Senate Bill 374, met and considered Senate Bill 374 in its entirety and recommend that Senate Bill 374 (reference copy - salmon) be amended as follows:

Insert: ", AND A DIRECTORY OF NEW HIRES"

Insert: "[(1) "Date of hire" means the first day that an employee starts work for which the employee is owed compensation by the payor of income.]"

Insert: "[(3) (a) "Employee" means a person 18 years of age or older who performs labor in this state for an employer in this state for compensation and for whom the employer withholds federal or state tax liabilities from the employee's compensation.

(b) The term does not include an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of the agency has determined that reporting pursuant to [section 9] with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.]"

Insert: "[(12) "Rehire" means the first day, following a termination of employment, that an employee begins to again perform work or provide services for a payor. Termination of employment does not include temporary separations from employment, such as unpaid medical leave, an unpaid leave of absence, or a temporary or seasonal layoff.]"

Insert: "[(8) An employer or labor organization shall report a newly hired or rehired employee. Information reported by an employer must be electronically compared to the information data base to align an obligor who owes a duty of support with a source of income. When a match is revealed in a IV-D case, a notice will, if appropriate to the case, be promptly transmitted to the employer directing the employer to commence withholding for the payment of the obligor's support obligation.]"

Insert: "NEW SECTION. Section 9.  Directory of new hires -- employer reporting requirements. (1) (a) An employer doing business in the state shall report to the department the hiring or rehiring of an employee to whom the employer anticipates paying income.

(b) An employer shall report the hiring or rehiring of an employee by submitting a copy of the employee's completed W-4 form or, at the option of the employer, its informational equivalent or any other format agreed to by the department. The report must include the employee's name, date of hire, social security number, and residential and mailing addresses, and the name, address, and federal identification number of the employer. The report may include the employee's date of birth.

(c) If an employer provides health or medical insurance coverage for an employee and the coverage may be extended to the employee's children, the employer may, along with the date the employee becomes eligible for coverage, provide that information as part of the new hire report under subsection (1)(b).

(2) Transmission of the reports must be by first-class mail, electronic or magnetic transmission, including facsimile transmission, or any other format agreed to by the department. Written reports must be submitted within 20 days of the employee's date of hire or rehire. Reports transmitted electronically or magnetically may be made by two transmissions monthly, if necessary, not less than 12 or more than 16 days apart.

(3) An employer who has employees in two or more states and who transmits new hire reports electronically or magnetically may comply with this section by designating one of the states in which there is an employee and transmitting the report of new hires to that state. A multistate employer who elects to report to only one state shall give written notice of the state to which the employer will transmit new reports. As required by 42 U.S.C. 653a(b)(1)(B), this notice must be transmitted to the secretary of the federal department of health and human services.

(4) An employer providing reports is not liable to the employee for the disclosure or any subsequent use by the processing center of the information."

records -- confidentiality -- no liability -- definitions. (1) For the purposes of this section, unless the context otherwise indicates, the following definitions apply:

(a) "Account" means a savings, checking, deposit and withdrawal, demand deposit, money market, profit and loss, or time deposit account opened by a depositor in a financial institution.

(b) "Depositor" means a person, share account holder, sole proprietor, or joint owner of an account in a financial institution in this state.

(c) "Financial institution" means:

(i) a depository institution, as defined in section 3(c) of the Federal Deposit Insurance Act, 12 U.S.C. 1813(c);

(ii) an institution-affiliated party, as defined in the Federal Deposit Insurance Act, 12 U.S.C. 1813(u);

(iii) any state credit union, as defined in 32-3-102, or federal credit union, as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. 1752, including an institution-affiliated party of such a credit union, as defined in section 206(r) of the act, 12 U.S.C. 1786(r); and

(iv) any benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in the state.

(d) "Obligor" means a person who owes a debt for child, spousal, or medical support as determined by the department or as specified by order of a tribunal of competent jurisdiction, the amount of which exceeds $500 or a total of 3 months debt, whichever is less.

(2) (a) Upon written request from the department, a financial institution shall run a data match of the department's list of obligors with the financial institution's depositors and provide the information in a computer or other reasonable format accessible by the financial institution. The department may not request the information referred to in this subsection from a financial institution more than once in each calendar quarter.

(b) The information on an obligor found to be a depositor at a financial institution must include the obligor's full name, social security number or other taxpayer identification number, and account number. If normally kept by the financial institution, the information must also include the mailing address, employment address, and any other information that identifies the obligor

(c) The financial institution shall provide the requested information within 30 days of the request from the department.

(3) The department shall run a computer match of all obligors with the information from the financial institution required in subsection (2). If there is a match between an obligor and a depositor, the financial institution shall, upon request of the department, provide additional information within 30 days, including but not limited to:

(a) verification of the obligor's full name and social security number;

(b) the financial institution's account number;

(c) the nature of the account or accounts held by the obligor;

(d) the funds available in the account less any preexisting encumbrance held by the financial institution; and

(e) any taxes, penalties, interest, or other costs to be legally imposed on the account if the account is accessed prior to a maturity date.

(4) The amounts available in an obligor's account do not include amounts available pursuant to overdraft coverage offered by the financial institution.

(5) The financial institution shall honor a subsequent appropriate lien from the department sent to the financial institution.

(6) (a) A financial institution receiving a data request, data match, or lien from the department may not provide notice to an obligor identified in the information submitted to the department. Failure to provide notice does not constitute a violation of the financial institution's duty of good faith to its customers.

(b) A notice given by a financial institution to an obligor identified by the department subjects the financial institution to the contempt authority of the department under 40-5-226.

(7) The department shall pay a financial institution a reasonable fee for providing the information required in subsection (2), not to exceed the actual documented costs incurred by the financial institution.

(8) Information requested by the department and provided by a financial institution under this section is confidential and may be used only for IV-D purposes. Use of information for any other purpose without the authorization of the department subjects the user to a civil penalty of not more than $500 per name per use.

(9) A financial institution is not liable to a person for:

(a) a disclosure of information to the department under this section;

(b) encumbering or surrendering assets held by the financial institution in response to a notice of lien or levy issued by the department; or

(c) any other action under this section taken in good faith to comply with the requirements of this section as long as the action is reasonable."

"37-1-307.   Board authority. (1) A board may:

(a)  hold hearings as provided in this part;

(b)  issue subpoenas and administer oaths in connection with investigations and disciplinary proceedings under this part. Subpoenas must be relevant to the complaint, issued by a majority vote of board members not serving on the screening panel described in subsection (1)(e), and signed by the presiding officer of the board. Subpoenas may be enforced as provided in 2-4-104.

(c)  authorize depositions and other discovery procedures under the Montana Rules of Civil Procedure in connection with an investigation, hearing, or proceeding held under this part;

(d)  compel attendance of witnesses and the production of documents. Subpoenas may be enforced as provided in 2-4-104.

(e)  establish a screening panel that determines whether there is reasonable cause to believe that a licensee has violated a statute or rule justifying disciplinary proceedings. The assigned board members may not subsequently participate in a hearing of the case. The final decision on the case must be made by a majority of the board members who did not serve on the screening panel for the case.

(f)  grant or deny a license and, upon a finding of unprofessional conduct by an applicant or license holder, impose a sanction provided by this chapter.

(2)  Each board is designated as a criminal justice agency within the meaning of 44-5-103 for the purpose of obtaining confidential criminal justice information regarding its licensees and license applicants.

(3) Each board shall require a license applicant to provide the applicant's social security number as a part of the application. Each board shall keep the social security number from this source confidential, except that a board may provide the number to the department of public health and human services for use in administering Title IV-D of the Social Security Act."

Section 23.  Section 40-1-107, MCA, is amended to read:

"40-1-107.   Form of application, license, marriage certificate, and consent. (1) The director of the department of public health and human services shall prescribe the form for an application for a marriage license, which must include the following information:

(a)  name, sex, address, social security number, and date and place of birth of each party to the proposed marriage;

(b)  if either party was previously married, the party's name, and the date, place, and court in which the marriage was dissolved or declared invalid or the date and place of death of the former spouse;

(c)  name and address of the parents or guardian of each party;

(d)  whether the parties are related to each other and, if so, their relationship; and

(e)  the name and date of birth of any child of whom both parties are parents born prior to the making of the application, unless their parental rights and the parent and child relationship with respect to the child have been terminated.

(2)  The director of the department of public health and human services shall prescribe the forms for the marriage license, the marriage certificate, and the consent to marriage."

(3) The license, certificate, or consent may not contain the social security number, and the department shall keep the number from this source confidential, except that the department may use the number in administering Title IV-D of the Social Security Act.

Section 24.  Section 40-4-105, MCA, is amended to read:

"40-4-105.   Procedure -- commencement -- pleadings -- abolition of existing defenses. (1) The verified petition in a proceeding for dissolution of marriage or legal separation shall must allege that the marriage is irretrievably broken and shall must set forth:

(a)  the age, occupation, and residence of each party and his the party's length of residence in this state;

(b)  the date of the marriage and the place at which it was registered;

(c)  that the jurisdictional requirements of 40-4-104 exist and that the marriage is irretrievably broken in that either:

(i)  the parties have lived separate and apart for a period of more than 180 days next preceding the commencement of this proceeding; or

(ii) there is serious marital discord which adversely affects the attitude of one or both of the parties towards the marriage, and there is no reasonable prospect of reconciliation;

(d)  the names, ages, and addresses of all living children of the marriage and whether the wife is pregnant;

(e)  any arrangements as to support, custody, and visitation of the children and maintenance of a spouse; and

(f)  the relief sought.

(2)  Either or both parties to the marriage may initiate the proceeding.

(3)  If a proceeding is commenced by one of the parties, the other party must be served in the manner provided by the Montana Rules of Civil Procedure and may within 20 days after the date of service file a verified response. No A decree may not be entered until 20 days after the date of service.

(4)  Previously existing defenses to divorce and legal separation, including but not limited to condonation, connivance, collusion, recrimination, insanity, and lapse of time, are abolished.

(5)  The court may join additional parties proper for the exercise of its authority to implement this chapter.

(6) The social security number, if known, of a person subject to a decree of dissolution or a support order must be recorded in the records relating to the matter. The recordkeeper shall keep the social security number from this source confidential, except that the number may be provided to the department of public health and human services for use in administering Title IV-D of the Social Security Act.""

Insert: "[(h) a financial institution uses information provided by the department pursuant to [section 11] for any other purpose without the authorization of the department]

Strike: "or"

Insert: "[(11) The social security number of a person subject to a paternity determination under this part must be recorded in the records relating to the matter. The recordkeeper shall keep the social security number from this source confidential, except that the number may be provided to the department of public health and human services for use in administering Title IV-D of the Social Security Act.]"

"50-15-403.   Preparation and filing of death or fetal death certificate. (1) A person in charge of disposition of a dead body or fetus that weighs at least 350 grams at death or, if the weight is unknown, has reached 20 completed weeks of gestation at death shall obtain personal data on the deceased, including the deceased's social security number, if any, or, in the case of a fetal death, on the parents that is required by the department from persons best qualified to supply the data and enter it on the death or fetal death certificate.

(2)  The person in charge of disposition of the dead body or fetus shall present the death certificate to the certifying physician or the coroner having jurisdiction for medical certification of the cause of death. The person in charge of disposition shall obtain the completed certification of the cause of death from the physician or coroner and shall, within the time that the department may by rule prescribe, file the death or fetal death certificate with the local registrar in the registration area where the death occurred.""

"61-5-107.   Application for license, instruction permit, or motorcycle endorsement. (1) Each application for an instruction permit, driver's license, or motorcycle endorsement must be made upon a form furnished by the department. A motorcycle endorsement is required for the operation of a quadricycle. Each application must be accompanied by the proper fee, and payment of the fee entitles the applicant to not more than three attempts to pass the examination within a period of 6 months from the date of application. A voter registration form for mail registration as prescribed by the secretary of state must be attached to each driver's license application. If the applicant wishes to register to vote, the department shall accept the registration and forward the form to the election administrator.

(2)  Each application must state the full name, date of birth, sex, and residence address of the applicant, and if the application is for a commercial vehicle operator's license, social security number, must briefly describe the applicant, and must state whether:

(a)  the applicant has previously been licensed as a driver or commercial vehicle operator, and, if so, when and by what state or country;

(b)  any commercial operator license has ever been suspended or revoked; or

(c)  an application has ever been refused, and, if so, the date of and reason for suspension, revocation, or refusal.

(3) The department shall keep the applicant's social security number from this source confidential, except that the number may be provided to the department of public health and human services for use in administering Title IV-D of the Social Security Act.

(3)(4)  When application is received from an applicant previously licensed by another jurisdiction, the department shall request a copy of the applicant's driving record from the previous licensing jurisdiction. The driving record may be transmitted manually or by electronic medium. When received, the driving records become a part of the driver's record in this state with the same force and effect as though entered on the driver's record in this state in the original instance.""

Insert: "(1) [Sections 9, 11, 22 through 24, 93, and 95] and the bracketed language in [sections 1 through 3, 9, 20, 40, 45, 88, and 89] terminate"

Insert: "and"

Insert: "program relating to temporary assistance to needy families"

68. Page 119, line 24.

Insert: "(2) [Sections 9, 11, 22 through 24, 93, and 95] and the bracketed language in [sections 1 through 3, 10, 25, 45, 50, 88, and 89] terminate on the date that a final decision is rendered in federal court invalidating the child support provisions of the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

(3) If the director of the department of public health and human services certifies to the governor and the secretary of state in writing that one of the following provisions is no longer required by federal law because of repeal of or amendment to federal statutes that require that provision, the provision terminates on the date the certification takes effect:

(a) [section 9];

(b) [section 11];

(c) [sections 22 through 24];

(d) [section 93];

(e) [section 95];

(f) [the bracketed provisions in sections 1 through 3, 10, 25, 45, 50, 88, and 89].

(4) If the director of the department of public health and human services certifies to the governor and the secretary of state in writing that the federal government has granted this state an exemption from one of the following provisions, the provision terminates on the date the exemption takes effect:

(a) [section 9];

(b) [section 11];

(c) [sections 22 through 24];

(d) [section 93];

(e) [section 95];

(f) [the bracketed provisions in sections 1 through 3, 10, 25, 45, 50, 88, and 89].

(5) The department of public health and human services shall do everything reasonably within its power to obtain, as soon as possible, federal government exemptions from the provisions listed in subsection (4).

(6) [Sections 9, 11, 22 through 24, 93, and 95] and the bracketed language in [sections 1 through 3, 10, 25, 45, 50, 88, and 89] terminate July 1, 1999.

(7) If the bracketed language in [section 1 through 3, 10, 25, 45, 50, 88, and 89] terminates, the code commissioner is instructed to renumber subsections, adjust internal references, and correct grammar and arrangement."

And that this FREE Conference Committee report be adopted.

For the Senate: For the House:

Hargrove, Chairman Soft, Chairman

Waterman, Sands

Keating, (unsigned) Boharski (unsigned)

Conference Committee report #1 not adopted on the following bill: 4/18/97

SB 381, introduced by Benedict

Conference Committee report #1 adopted on the following bills: 4/18/97

SB 71, introduced by Toews

SB 381, introduced by Benedict (reconsidered)

HB 99, introduced by Trexler

Free Conference Committee report #1 adopted on the following bills: 4/18/97

HB 83, introduced by Bergsagel

HB 102, introduced by Beaudry

HB 135, introduced by Smith

HB 164, introduced by Tuss

HB 188, introduced by Denny

HB 339, introduced by Carey

HB 345, introduced by Masolo

HB 346, introduced by Tropila

HB 369, introduced by Brainard

HB 388, introduced by Simon

HB 389, introduced by Simon

HB 398, introduced by R.Johnson

Free Conference Committee report #2 adopted on the following bill: 4/18/97

SB 85, introduced by Jergeson

SB 207 - The House acceded to the request of the Senate and dissolved the Conference Committee on SB 207 and authorized the Speaker to appoint the following Free Conference Committee to meet with a like committee from the Senate on SB 207:

Representative Arnott, Chairman

Representative Stovall

Representative Peck

SB 374 - The House acceded to the request of the Senate and authorized the Speaker to appoint the following Free Conference Committee to meet with a like committee from the Senate on SB 374:

Representative Soft, Chairman

Representative Boharski

Representative Sands

SB 44-Free Conference Committee - Senator Mohl moved consideration of Senate Bill 44-Free Conference Committee report be placed below SB 87 and that consideration of Senate Bill 374-Free Conference Committee report be placed below SB 44 on the second reading board this legislative day. Motion carried.

5:10 session

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 Thomas in the Chair.

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

SB 57-Free Conference Committee Report No.1 - Senator Waterman moved the Free Conference Committee report to SB 57 be adopted. Motion carried with Senator Van Valkenburg voting nay.

SB 272-Conference Committee Report No.1 - Senator Aklestad moved the Conference Committee report to SB 272 be adopted. Motion carried unanimously.

SB 339-Conference Committee Report No.1 - Senator Grosfield moved the Conference Committee report to SB 339 be adopted. Motion carried unanimously.

HB 17-Free Conference Committee Report No.1 - Senator Toews moved the Free Conference Committee report to HB 17 be adopted. Motion carried unanimously.

HB 584-Conference Committee Report No.1 - Senator Grosfield moved the Conference Committee report to HB 584 be adopted. Motion carried unanimously.

SB 87-Governor's Amendment - Senator Jergeson moved the Governor's Amendment to SB 87 be adopted. Motion carried unanimously.

The Senate stood at ease for 15 minutes to allow printed copies of bills to be distributed in the Senate.

Senators Beck, Christiaens, Jenkins, Mohl, Nelson and Swysgood excused at this time.

Senator Lynch assumed the chair.

SB 44-Free Conference Committee Report No.3 - Senator Holden moved the Free Conference Committee report No. 3 to SB 44 be adopted. Motion carried unanimously.

Senators Franklin, Shea, Swysgood, Mohl, Beck, present at this time.

SB 374-Free Conference Committee Report No.1 - Senator Hargrove moved the Free Conference Committee report to SB 374 be adopted. Motion carried as follows:

Yeas: Bartlett, Beck, Bishop, Brooke, Cole, Crippen, Crismore, Doherty, Eck, Foster, Franklin, Halligan, Hargrove, Hertel, Jabs, Jenkins, Jergeson, McNutt, Mesaros, Shea, Sprague, Swysgood, Van Valkenburg, Waterman, Mr. President.

Total 25

Nays: Baer, Benedict, Christiaens, DePratu, Devlin, Emerson, Estrada, Gage, Glaser, Grosfield, Harp, Keating, Lynch, Mahlum, McCarthy, Miller, Mohl, Nelson, Stang, Toews, Wilson.

Total 21

Absent or not voting: Holden, Thomas.

Total 2

Excused: Burnett, Taylor.

Total 2

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

ANNOUNCEMENTS

Committee meetings were announced by committee chairmen.

Majority Leader Harp moved that the Senate adjourn until 9:00 a.m., Saturday, April 19, 1997. Motion carried.

Senate adjourned at 6:07 p.m.

ROSANA SKELTON GARY AKLESTAD

Secretary of Senate President of the Senate