Helena, Montana Senate Chambers

April 23, 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 Senators Bartlett, Nelson, Eck, Cole, Mohl and Doherty, excused. Quorum present.

BILLS AND JOURNAL (Miller, Chairman): 4/23/97

April 22, 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 316 sponsored by Senator Bartlett on April 16, 1997, and Senate Bill 84 sponsored by Senator Jergeson, and Senate Bill 269 sponsored by Senator Bartlett on April 22, 1997.

Sincerely,

MARC RACICOT

Governor

SB 367 - Senator Harp moved the Senate dissolve the Conference Committee on SB 367 and the President be authorized to appoint a Free Conference Committee to meet with a like committee from the House to confer on SB 367. Motion carried unanimously.

The President appointed the following members:

Senator Mesaros, Chairman

Senator Thomas

Senator Brooke

Committee meetings were announced by committee chairmen.

Senator Harp moved the Senate recess until 1:00 p.m. Motion carried.

Senate recessed at 10:16 a.m.

Senate reconvened at 1:09 p.m. President Aklestad presiding.

Roll Call. Quorum present.

Senator Harp moved the Senate recess until 2:15 p.m Motion carried.

Senate recessed at 1:13 p.m.

Senate reconvened at 4:26 p.m. President Aklestad presiding.

Roll Call. Quorum present.

Senator Bartlett present at this time.

FREE CONFERENCE COMMITTEE

on House Bill 2

Report No. 1, April 23, 1997

Mr. Speaker and Mr. President:

We, your Free Conference Committee on House Bill 2, met and considered House Bill 2 (reference copy - salmon) and recommend that House Bill 2 be amended as follows:

Renumber: subsequent sections

2. Page A-1, line 4.

Strike:"2,853,734 973,770 3,388,661 437,240"

Insert:"2,842,268 969,036 3,376,976 437,698"

3. Page A-1, following line 10.

Insert: "b. SB 21 -- Joint Committee on Postsecondary Education Policy and Budget (Restricted/Biennial)

20,110" [general fund, fiscal 1998]

4. Page A-1, following line 19.

Insert: "Of the amount appropriated in section 15, legislative council, item 2, Chapter 593, Laws of 1995, any unexpended funds up to $415,000 are reappropriated to the legislative services program within the legislative services division. The funds reappropriated to the legislative services program are appropriated for the 1997 biennium for expenses associated with legislative branch information technology.

Item 1 includes a 10% reduction in equipment totaling $16,200 in fiscal year 1998 and $14,900 in fiscal year 1999. The agency may allocate this reduction among programs."

5. Page A-1, line 22.

Strike: "1,028,992" [State Special Revenue Fiscal 1999]

Insert: "1,029,735" [State Special Revenue Fiscal 1999]

6. Page A-2, line 3.

Strike: "2,362,634 994,608 2,323,585 994,565"

Insert: "2,526,802 993,552 2,493,147 995,676"

77. Page A-2, line 17.

8. Page A-2, following line 22.

Insert: "If House Bill No. 170 is not passed and approved, the appropriation in item 1 is reduced by $175,012 in fiscal year 1998 and $174,981 in fiscal year 1999.

Item 1 includes a 10% reduction in equipment totaling $11,900 in fiscal year 1998 and $6,700 in fiscal year 1999. The supreme court may allocate this reduction among programs."

8a. Page B-10, lines 4 and 5.

Strike: lines 4 and 5 in their entirety (to reflect amendment #57)

9. Page A-3, following line 2.

Insert: "Because House Bill No. 169 requires that the state's contribution to the judges' pension trust fund for the chief water court judge be budgeted, item 5 has been increased by $25,102 in state special revenue in each fiscal year. If House Bill No. 169 is not passed and approved in a form that requires the contribution to be budgeted, then the state special revenue amounts in item 5 are reduced by $25,102 in each fiscal year. If House Bill No. 169 is passed and approved and if House Bill No. 170 is passed and approved in a form decreasing the percentage contribution to the pension of the chief water court judge to 25.81%, then the state special revenue appropriations in item 5 are reduced by $6,436 in each fiscal year."

10. Page A-3, line 5.

Strike: "14,000" [State Special Revenue Fiscal 1999]

Insert: "14,010" [State Special Revenue Fiscal 1999]

11. Page A-3, line 11.

13. Page A-4, line 18.

Strike: "4D"

Insert: "4c"

14. Page A-7, line 4.

Strike: "25,940" [State Special Revenue Fiscal 1999]

Insert: "27,177" [State Special Revenue Fiscal 1999]

16. Page A-7, following line 11.

Insert: "b. SB 112 -- Viatical Settlements

10,000 [State Special Revenue Fiscal 1998]

10,000 [State Special Revenue Fiscal 1999]

c. SB 79 -- Montana Living Trust Act

42,715 [State Special Revenue Fiscal 1998]

47,740 [State Special Revenue Fiscal 1999]

d. HB 166 -- Actuarial Valuation (Restricted/Biennial)

6,000 [general fund, fiscal 1998]

e. SB 378 -- Implementation of Kennedy/Kassebaum Federal Changes

63,920 [State Special Revenue Fiscal 1998]

88,485" [State Special Revenue Fiscal 1999]

Insert: "Item 2 includes a 10% reduction in equipment totaling $9,500 in fiscal year 1998 and $7,100 in fiscal year 1999. The department may allocate this reduction among programs.

Because of the elimination of the statutory appropriation for actuarial valuation of the police retirement fund by House Bill No. 166, item 2d appropriates $6,000 in general fund money in fiscal year 1998 as a restricted and biennial appropriation. If House Bill No. 166 is not passed and approved in a form that eliminates the statutory appropriation, then item 2d is eliminated."

18. Page A-8, line 1.

Strike: "12,079,357" [State Special Revenue Fiscal 1999]

Insert: "12,266,172" [State Special Revenue Fiscal 1999]

19. Page A-8, line 9.

Strike: "78,646,714 177,275,710 80,958,609 158,350,379"

Insert: "79,615,694 176,825,030 80,721,189 157,898,099"

Insert: "Item 2 includes a 10% reduction in equipment totaling $290,000 in fiscal year 1998 and $180,000 in fiscal year 1999. The department may allocate this reduction among programs.

It is the intent of the legislature that $1,318,000 in state special revenue funds augment the department's budgeted funding level for the secondary road system program in the 1999 biennium."

110,849 111,186" [general fund, fiscal 1998 & 1999]

25. Page A-11, following line 22.

Insert: "a. SB 354 -- Restaurant Beer and Wine Licensing

33,868 [State Special Revenue Fiscal 1998]

13,124" [State Special Revenue Fiscal 1999]

27. Page A-11, following line 24.

Strike: line 25 in its entirety

28. Page A-12, line 1.

Strike: line 1 in its entirety

Renumber: subsequent subsection

380,412 379,639" [general fund, fiscal 1998 & 1999]

Insert: "Because of de-earmarking of cigarette tax administration by House Bill No. 166, item 1a has been reduced by $386 in state special revenue in fiscal year 1998 and the general fund amount has been increased by the same amount. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amount in item 1a is reduced by $386 in fiscal year 1998 and the state special revenue amount is increased by the same amount.

Because of de-earmarking of payroll tax administration by House Bill No. 166, item 1a has been reduced by $2,215 in state special revenue in fiscal year 1998 and the general fund amount has been increased by the same amount. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amount in item 1a is reduced by $2,215 in fiscal year 1998 and the state special revenue amount is increased by the same amount."

Insert: "Because of de-earmarking of payroll tax administration by House Bill No. 166, item 1c has been reduced by $194,600 in state special revenue in fiscal year 1998 and by $71,800 in state special revenue in fiscal year 1999 and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 1c are reduced by $194,600 in fiscal year 1998 and by $71,800 in fiscal year 1999 and the state special revenue amounts are increased by the same amounts.

Because of de-earmarking of payroll tax administration by House Bill No. 166, item 2 has been reduced by $110,849 in state special revenue in fiscal year 1998 and by $111,186 in state special revenue in fiscal year 1999 and general fund amounts in item 2b have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 2b are eliminated and the state special revenue amounts in item 2 are increased by the same amounts.

Items 2, 4, and 6 include a 10% reduction in equipment totaling $64,000 in fiscal year 1998 and $42,000 in fiscal year 1999. The department may allocate this reduction among programs.

If House Bill No. 166 is passed and approved in a form that de-earmarks the payroll tax administration, the legislature will have appropriated $688,075 in general fund money in fiscal year 1998 and $562,625 in general fund money in fiscal year 1999 to collect the payroll tax. In addition to the amounts identified for this purpose in items 2b and 4b, item 1a contains $2,215 in general fund money in fiscal year 1998 and item 1c contains $194,600 in general fund money in fiscal year 1998 and $71,800 in general fund money in fiscal year 1999 appropriated for that purpose. It is the intent of the legislature that further legislatures line item and restrict any appropriations to the department for collection of the payroll tax.

Item 3a is contingent upon passage and approval of Senate Bill No. 354.

Because of de-earmarking of cigarette tax administration by House Bill No. 166, item 4 has been reduced by $133,350 in state special revenue in fiscal year 1998 and by $133,110 in state special revenue in fiscal year 1999 and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 4 are reduced by $133,350 in fiscal year 1998 and by $133,110 in fiscal year 1999 and the state special revenue amounts are increased by the same amounts.

Because of de-earmarking of tax checkoff administration by House Bill No. 166, item 4 has been reduced by $8,400 in state special revenue in each fiscal year and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 4 are reduced by $8,400 in each fiscal year and the state special revenue amounts are increased by the same amounts.

Because of de-earmarking of 9-1-1 emergency telephone tax administration by House Bill No. 166, item 4 has been reduced by $7,716 in state special revenue in each fiscal year and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 4 are reduced by $7,716 in each fiscal year and the state special revenue amounts are increased by the same amounts.

Because of de-earmarking of payroll tax administration by House Bill No. 166, item 4 has been reduced by $380,412 in state special revenue in fiscal year 1998 and by $379,639 in state special revenue in fiscal year 1999 and general fund and state special revenue amounts in item 4c have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 4c are eliminated and the state special revenue amounts in item 4 are increased by the same amounts."

33. Page A-12, line 17.

34. Page A-14, line 20.

Strike: "7,102" [State Special Revenue Fiscal 1999]

"36,523" [Proprietary Fiscal 1999]

Insert: "19,161" [State Special Revenue Fiscal 1999]

"10,621" [Federal Special Revenue Fiscal 1999]

36. Page A-14, following line 24.

500,000" [General Fund, fiscal 1998]

112,636 112,636 [general fund, fiscal 1998 & 1999]

b. Public Safety Radio (Biennial)

40,000" [General Fund, fiscal 1998]

40. Page A-15, lines 11 and 12.

Insert: "Items 2 and 6 include a 10% reduction in equipment totaling $4,800 in fiscal year 1998 and $3,800 in fiscal year 1999. The department may allocate this reduction among programs.

The appropriation in item 2a may be used to match the federal special revenue appropriated in House Bill No. 5 for the construction of one regional correctional facility. If the appropriation is not expected to be expended by the end of the 1999 biennium, it may be reappropriated by the 1999 legislature.

If House Bill No. 14 is passed and approved, the appropriation in item 2a is void.

If House Bill No. 14 is not passed and approved, of the 1.3% of coal severance taxes allocated to the long-range building program fund in the debt service fund type, as provided in House Bill No. 5, 0.5% must be transferred to the general fund and 0.8% must be transferred to an account in the state special revenue fund for the purpose of the protection of works of art in the state capitol and for other cultural and aesthetic projects.

Because of the de-earmarking of emergency telecommunications administrative costs by House Bill No. 166, item 4a appropriates $112,636 in general fund money in each fiscal year as a restricted appropriation. If House Bill No. 166 is not passed and approved in a form that de-earmarks the administrative costs, then the general fund amounts in item 4a are reduced by $112,636 in each fiscal year and the state special revenue amounts are increased by the same amounts."

45. Page A-17, following line 15.

Insert: "c. HB 170 -- Guaranteed Annual Benefit Adjustment

78,500" [Nonexpendable Trust Fund Fiscal 1998]

Insert: "If House Bill No. 169 is not passed and approved in a form that classifies the pension fund type as not part of the state treasury for appropriation purposes, then the pension funds appropriated in item 1 are increased by $1,321,851 in fiscal year 1998 and by $1,304,799 in fiscal year 1999, the pension funds appropriated in item 1a are increased by $55,074 in fiscal year 1998 and designated as restricted and biennial, and the pension funds appropriated in item 1b are increased by $12,500 in each fiscal year and designated as biennial and one-time only."

47. Page A-17, following line 19.

Insert: "Item 1c is contingent upon passage and approval of House Bill No. 170.

If House Bill No. 169 is passed and approved, the item appropriating $78,500 in pension trust money and the language making the appropriation contingent upon passage and approval of House Bill No. 170 are void."

Insert: "If House Bill No. 169 is not passed and approved in a form that classifies the pension fund type as not part of the state treasury for appropriation purposes, then the pension funds appropriated in item 1 are increased by $956,081 in fiscal year 1998 and by $772,361 in fiscal year 1999, the pension funds appropriated in item 1a are increased by $31,415 in fiscal year 1998 and designated as restricted and biennial, and the pension funds appropriated in item 1b are increased by $7,500 in each fiscal year and designated as biennial and one-time only."

52. Page B-1, line 5.

53. Page B-1, lines 11 and 12.

Renumber: subsequent subsections

Strike: "(Restricted)"

56. Page B-1, following line 22.

126,600 [fiscal 1998 state special revenue]

126,600 [fiscal 1999 state special revenue]

g. SB 48 -- Youth Court Act

89,197 [fiscal 1998 general fund]

24,249 [fiscal 1998 federal special revenue]

94,769 [fiscal 1999 general fund]

23,692" [fiscal 1999 federal special revenue]

57. Page B-2, lines 13 and 14.

58. Page B-2, following line 14.

131,536 341,041" [State Special, Federal Special, Fiscal 1999]

Renumber: subsequent subsection

7,297,484 3,223,860 11,408,934 0"

7,272,493 3,276,831 11,577,951 240"

64. Page B-3, line 25 through page B-4, line 1.

Insert: "c. Legal Costs (Restricted/Biennial/OTO)"

67. Page B-4, line 11.

Strike: "21,826,562 21,974,467" [state special revenue]

Insert: "21,777,564 21,925,428" [state special revenue]

Insert: "Item 1 includes $438,867 in general fund money each year of the 1999 biennium and is contingent upon passage and approval of House Bill No. 104."

Insert: "If House Bill No. 538 is not passed and approved, the general fund appropriation contained in item 4 is reduced by $50,000 in fiscal year 1998 and $2,101 in fiscal year 1999 and the federal fund appropriation is reduced by $50,000 in fiscal year 1998 and increased by $13,107 in fiscal year 1999."

Insert: "Item 6 includes a 10% reduction in equipment totaling $120,000 in fiscal year 1998 and $76,000 in fiscal year 1999. The department may allocate this reduction among programs."

77. Page B-12, lines 15 through 18.

Insert: "Item 7c is a restricted, biennial appropriation to be used for legal costs associated with a lawsuit to move certain individuals at the Eastmont human services center and the Montana developmental center to community living/services."

Insert: "It is the intent of the legislature that the department shall provide semiannual reports to the office of budget and program planning and the legislative fiscal division on the status of the mental health access plan contract, including but not limited to implementation status, progress of contract expectations, results of evaluation reports,

and any negotiated changes to the mental health access plan contract. The legislative finance committee shall review each report."

80. Page C-1, line 4.

Strike: "3,589,913" [State Special Revenue Fiscal 1999]

Insert: "3,685,406" [State Special Revenue Fiscal 1999]

Insert: "Item 6 includes a 10% reduction in equipment totaling $93,000 in fiscal year 1998 and $68,000 in fiscal year 1999. The department may allocate this reduction among programs."

84. Page C-6, line 1.

Strike: "0" [State Special Revenue Fiscal 1999]

"0" [Proprietary Fiscal 1999]

Insert: "21,427" [State Special Revenue Fiscal 1999]

"15,960" [Proprietary Fiscal 1999]

Insert: "b. HB 546 -- Water Quality Total Maximum Daily Load Program (Biennial)

444,832 503,934" [general fund, fiscal 1998 & 1999]

88. Page C-6, line 12.

Strike: lines 2 and 3 in their entirety

Insert: "The amount of $507,600 over the biennium in federal funding provided under 33 U.S.C. 1329 must be used to directly address total maximum daily loads."

Insert: "If House Bill No. 483 is not passed and approved, the amounts appropriated in item 3 are reduced by $123,442 in state special revenue and $842,258 in federal funds in fiscal year 1998 and by $113,482 in state special revenue and $792,478 in federal funds in fiscal year 1999.

Item 3 includes a 10% reduction in equipment totaling $38,001 in fiscal year 1998 and $17,000 in fiscal year 1999. The department may allocate this reduction among programs.

If House Bill No. 546 is not passed and approved, item 3b is void.

If Senate Bill No. 377 is not passed and approved, the state special revenue appropriations in item 5 are reduced by $76,688 in fiscal year 1998 and by $71,688 in fiscal year 1999."

Insert: "69,611 685,787 38,243 71,792 710,376 39,675"

Insert: "Item 1 includes a 10% reduction in equipment totaling $33,000 in fiscal year 1998 and $35,000 in fiscal year 1999. The department may allocate this reduction among programs."

93. Page C-8, line 11.

95. Page C-8, line 17.

Following: line 16.

Insert: "c. Swan Boot Camp Maintenance (Restricted/OTO)

d. Water Rights Claims (Restricted/OTO)

e. Environmental Liability Inventories (Restricted/OTO)

96. Page C-8, line 18.

Strike: "0" [Proprietary Fiscal 1999]

Insert: "959" [Proprietary Fiscal 1999]

97. Page C-8, line 20.

Strike: "1,775,080 58,449 1,814,251 604,379 48,259"

Insert: "1,203,963 91,856 1,213,665 636,046 83,016"

Strike: "117,927"

Insert: "1,405,471"

Strike: "122,928"

Insert: "1,411,932"

16,000" [state special, fiscal 1998]

Insert: "Because of de-earmarking of cabin site sales fees by House Bill No. 166, item 1 has been reduced by $25,000 in state special revenue in each fiscal year and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 1 are reduced by $25,000 in each fiscal year and the state special revenue amounts are increased by the same amounts.

If House Bill No. 156 is not passed and approved, items 1c through 1e are void.

Because of the addition of the state lands equalization statutory appropriation by House Bill No. 166, item 2 has been reduced by $571,117 in general fund money in fiscal year 1998 and by $600,586 in general fund money in fiscal year 1999. If House Bill No. 166 is not passed and approved in a form that adds the statutory appropriation, then the general fund amounts in item 2 are increased by $571,117 in fiscal year 1998 and by $600,586 in fiscal year 1999."

Insert: "Because of the elimination of the statutory appropriation for water well contractor administrative costs by House Bill No. 166, item 5d appropriates $16,000 in state special revenue in fiscal year 1998 as a restricted and biennial appropriation. If House Bill No. 166 is not passed and approved in a form that eliminates the statutory appropriation for administrative costs, then item 5d is eliminated."

Insert: "Because of de-earmarking of forest resources stewardship fines by House Bill No. 166, item 7 has been reduced by $9,443 in state special revenue in each fiscal year and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 7 are reduced by $9,443 in each fiscal year and the state special revenue amounts are increased by the same amounts.

Item 7 includes a 10% reduction in equipment totaling $102,000 in fiscal year 1998 and $93,000 in fiscal year 1999. The department may allocate this reduction among programs."

Insert: "Federal funding provided to the department under 33 U.S.C. 1329 must be used to address water quality impaired streams."

107. Page C-11, line 10.

Strike: "273,575" [State Special Revenue Fiscal 1999]

"7,687" [Other Fiscal 1999]

Insert: "287,803" [State Special Revenue Fiscal 1999]

"7,902" [Other Fiscal 1999]

108. Page C-11, line 18.

Strike: "6,628" [Fiscal 1998 General Fund]

Insert: "0"

109. Page C-11, line 20.

210,230 3,105,070 75,000 208,447 62,164"

208,227 3,077,163 72,062 207,561 61,898"

112. Page C-12, line 24.

Strike: "4,097,680 4,075,910" [state special revenue]

Insert: "4,146,678 4,136,621" [state special revenue]

113. Page C-12, following line 24.

Insert: "a. SB 56 -- Private Cemetery Care and Maintenance

2,112 2,112 [state special revenue]

c. HB 266 -- Plumber/Electrician Licensure Compliance

51,854 47,881" [state special revenue, fiscal 1998 & 1999]

114. Page C-13, line 1.

Insert: "3,632,036" [Federal Special Revenue Fiscal 1999]

115. Page C-13, line 2.

116. Page C-13, line 8.

Strike:"332,414 663,765 6,870,804 330,931 660,177 6,867,401

Insert:"330,706 652,251 6,841,026 329,805 653,828 6,846,876"

117. Page C-13, line 10.

Strike: "2,551,603 544,750" [state special revenue]

Insert: "1,051,603 44,750" [state special revenue]

118. Page C-13, line 14.

Strike: "2,222,263" [State Special Revenue Fiscal 1999]

Insert: "2,233,936" [State Special Revenue Fiscal 1999]

119. Page C-13, following line 14.

Insert: "a. HB 388 -- Elimination of City Building Codes Extended Jurisdiction

120. Page C-14, following line 1.

Insert: "a. HB 63 -- Motor Vehicle Warranty Act

41,338 38,588" [state special revenue]

121. Page C-14, following line 10.

Insert: "The department is appropriated in each of the fiscal years 1998 and 1999 up to $1 million of state special revenue that is deposited in the account established in [section 17] of Senate Bill No. 83 for the purpose of processing charter applications and for the chartering, examination, and regulation of each foreign capital depository that obtains a charter under the provisions of Senate Bill No. 83.

The department is appropriated up to $471,449 in fiscal year 1998 and $474,943 in fiscal year 1999 in either state special revenue or federal special revenue authority for the purpose of funding the state's share of the certified communities program authorized in 90-1-116 (2). These appropriations are contingent upon the department receiving either private or federal grant funds to be used as matching funds for local economic development efforts.

Item 3b is contingent upon passage and approval of Senate Bill No. 259.

Item 3c is contingent upon passage and approval of House Bill No. 266."

122. Page C-14, line 11.

Strike: "$2"

Insert: "$1"

123. Page C-14, following line 15.

Insert: "Item 8a is contingent upon passage and approval of House Bill No. 388.

Item 8b is contingent upon passage and approval of Senate Bill No. 286."

Insert: "Item 6 includes a 10% reduction in equipment totaling $43,000 in fiscal year 1998 and $28,000 in fiscal year 1999. The department may allocate this reduction among programs."

126. Page D-1, line 5.

Strike: "394,289" [Federal Special Revenue Fiscal 1999]

Insert: "396,604" [Federal Special Revenue Fiscal 1999]

128. Page D-2, line 16.

Strike: "1,778,299" [General Fund Fiscal 1998]

Insert: "1,773,949" [General Fund Fiscal 1998]

Following "HB 222 IMPLEMENTATION"

131. Page D-2, following line 23.

Insert: "d. Bankruptcy Unit

124,344 124,483" [Proprietary Fiscal 1998 and 1999]

132. Page D-3, following line 3.

Insert: "b. SB 354 -- Restaurant Beer and Wine Licensing

91,870 [State Special Revenue Fiscal 1998]

78,370" [State Special Revenue Fiscal 1999]

133. Page D-3, line 5.

Strike: "7,340,076 398,303 7,139,641 346,496"

Insert: 7,273,429 385,801 7,096,139 331,145"

135. Page D-3, following line 7.

Insert: "a. SB 57 -- Motor Vehicle Tax

80,000 30,000" [General Fund Fiscal 1998 and 1999]

136. Page D-3, line 11.

Strike: "1,158,689" [Federal Special Revenue Fiscal 1999]

Insert: "1,159,326" [Federal Special Revenue Fiscal 1999]

137. Page D-3, line 17.

Strike: "255,093" [State Special Revenue Fiscal 1999]

"9,448" [Proprietary Fiscal 1999]

Insert: "293,923" [State Special Revenue Fiscal 1999]

"11,023" [Proprietary Fiscal 1999]

139. Page D-4, following line 19.

Insert: "The amount of $20,000 in general fund money is appropriated to the department each year from the unexpended portion of House Bill No. 1, following adjournment of the 55th legislature. The funds are to be used to implement House Bill No. 222, habeas corpus reforms."

140. Page D-4, following line 20.

Insert: "The bankruptcy unit funded in item 1d is directed to charge fees commensurate with cost.

Item 2b is contingent upon passage and approval of Senate Bill No. 354.

Item 3 includes a 10% reduction in equipment totaling $79,149 in fiscal year 1998 and $58,853 in fiscal year 1999. The department may allocate this reduction among programs. None of the reduction is to be allocated to the highway patrol division."

141. Page D-4, line 23.

Strike: "2,169,776 2,176,524 26,250"

Insert: "2,166,776 2,178,282 26,372"

142. Page D-5, following line 2.

Insert: "c. SB 89 -- Interim Universal Access Program

Insert: "Item 1 includes a 10% reduction in equipment totaling $3,000 in fiscal year 1998 and $3,000 in fiscal year 1999. The department may allocate this reduction among programs."

144. Page D-5, line 8.

Strike: "1,330" [State Special Revenue Fiscal 1999]

Insert: "3,094" [State Special Revenue Fiscal 1999]

Strike: "18,136,071 [general fund fiscal 1998]

18,651,459" [general fund fiscal 1999]

Insert: "24,521,533 [general fund fiscal 1998]

26,549,830" [general fund fiscal 1999]

Strike: lines 19 and 20 in their entirety

151. Page D-5, line 24.

Insert: "The legislature has not appropriated funds to house inmates in a private correctional facility in accordance with House Bill No. 83. However, it is the intent of the legislature that the department issue a request for proposals and enter into a contract with a private vendor during the 1999 biennium for the construction of a correctional facility of approximately 500 beds and the housing of inmates in the facility.

If House Bill No. 14 is not passed and approved, the department may issue a request for proposals and enter into a contract with a private vendor during the 1999 biennium for the construction of a correctional facility of approximately 700 beds and the housing of inmates in the facility."

Insert: "Item 2 includes $494,892 in general fund money each year of the 1999 biennium and is contingent upon passage and approval of House Bill No. 104.

Item 3 includes a 10% reduction in equipment totaling $146,000 in fiscal year 1998 and $120,000 in fiscal year 1999. The department may allocate this reduction among programs."

158. Page D-7, lines 8 and 9.

Strike: 600,509" [State Special Revenue Fiscal 1999]

Insert: " 698,674" [State Special Revenue Fiscal 1999]

159. Page D-7, line 13.

84,583 57,760 [Proprietary Funds Fiscal 1998 and 1999]

c. SB 62 -- Vocational Rehabilitation (Restricted)

100,000 100,000 [State Special Revenue Fiscal 1998 and 1999]

d. SB 290 -- Workers' Compensation Regulation Advisory Council

21,600 21,600" [State Special Revenue Fiscal 1998 and 1999]

103,419 38,251 [General Fund Federal Special Fiscal 1998]

77,994 28,847" [General Fund Federal Special Fiscal 1999]

Insert: "Item 2 includes a 10% reduction in equipment totaling $56,000 in fiscal year 1998 and $53,000 in fiscal year 1999. The department may allocate this reduction among programs.

If Senate Bill No. 349 is not passed and approved, the appropriation in item 4 is decreased by $184,859 in state special revenue and $1,738 in proprietary funds in fiscal year 1998 and increased by $6,346 in state special revenue in fiscal year 1999.

The appropriation in item 4b is contingent upon passage and approval of Senate Bill No. 67.

The appropriation in item 4d is contingent upon passage and approval of Senate Bill No. 290."

164. Page D-9, line 17.

Strike: "0" [State Special Revenue Fiscal 1999]

Insert: "620" [State Special Revenue Fiscal 1999]

"35,938" [Federal Special Revenue Fiscal 1999]

165. Page D-9, line 21.

Strike:"911,706 25,316 2,681,531 918,090 49,170 2,717,176"

Insert:"910,844 25,271 2,679,438 917,245 49,103 2,715,088"

166. Page D-10, following line 18.

3,763,192" [General Fund Fiscal 1999]

3,560,384" [General Fund Fiscal 1999]

184,183 [General Fund Fiscal 1998]

178,333 [General Fund Fiscal 1999]

d. Improving Montana Schools (Restricted/Biennial)

350,000" [general fund fiscal 1998]

Insert: "Because of de-earmarking of resources and assessments by House Bill No. 166, item 1 has been reduced by $525 in state special revenue in each fiscal year and general fund amounts have been increased by the same amounts. If House Bill No. 166 is not passed and approved in a form that de-earmarks the state special revenue, then the general fund amounts in item 1 are reduced by $525 in each fiscal year and the state special revenue amounts are increased by the same amounts."

Insert: "Item 1c is for the lease and occupation costs associated with the office of public instruction's building located at 1227 11th avenue.

The office of public instruction shall prepare and submit to the office of budget and program planning and legislative fiscal division revised goals and objectives for the improving Montana schools program commensurate with the amount appropriated. The appropriation provided for in item 1d is contingent upon funds being used to achieve program performance targets as outlined in the budget for the 1999 biennium. The office of public instruction shall provide semiannual reports to the office of budget and program planning and the legislative fiscal division on progress toward achievement of these performance targets, with explanations for any significant variances.

Goal I: Promote challenging academic standards and effective delivery systems for teaching and learning for K-12 education to meet the challenges of today and tomorrow.

Objective 1: By October 1, 1998, with assistance and advice from educators, parents, and the public, the office of public instruction will review the 1989 program area standards and will recommend revisions to the model learner goals associated with the Montana accreditation standards. Model learner goals to integrate instructional technology across the curriculum will be recommended. Technology will be used as the primary tool to maintain effective communication with educators and the public across Montana.

Objective 2: By January 1999, an increased number of Montana schools will link their educational reform efforts with workforce development and economic development by engaging community members, business, labor, parents, and schools in designing a comprehensive, integrated system of education and workforce preparation that reflects local needs and that is available to all students.

Performance Measures:

• Revised learner goals are integrated into locally developed curriculum models in all program areas over the 4 years, fiscal years 1998 through 2001.

• Long term - Local assessments are developed to measure student performance and district progress toward achieving model learner goals. Assessment data will assist in the establishment of indicators and benchmarks for the Montana education profile.

• Long term - Effectiveness will be measured by the number of schools demonstrating an increased number of students who are proficient in core academic subjects.

• The number of sustained, intensive professional development opportunities for educators is increased by 30% by fiscal year 2001. Baseline data will be collected for the 1997-98 school year.

• By fiscal year 2001, 30% of the school districts in Montana will have adopted state-of-the-art models for the improvement of curriculum, assessment, instruction, and integrated technology. Baseline data will be collected for the 1997-98 school year.

• The number of schools that integrate school-to-work opportunities into existing educational reform initiatives and existing vocational education programs is increased by 30% by fiscal year 2001. Baseline data will be collected in the 1997-98 school year.

• The number of students with significant involvement in school-to-work programs is increased. Baseline data will be collected in the 1997-98 school year.

• The office of public instruction will identify model curricula and training in applied academics and work-based learning and will increase access to these models to improve its programs and increase workplace experiences linked to the classroom.

• The number of students who have opportunities to integrate academic and occupational learning through school-to-work, applied learning opportunities, vocational education, or work-based learning will increase by 30% by fiscal year 2001. Baseline data will be collected in the 1997-98 school year.

Goal II: Provide the public with a means of assessing the quality and achievements of the K-12 education system in Montana.

Objective 1: By February 1999, the office of public instruction will develop and disseminate a Montana education profile to the Montana public. The profile will be developed with assistance and advice from educators, parents, and the public and will contain indicators and measures of the effectiveness of Montana's K-12 system in the areas of students, staff, academic achievement, finance, and educational programs. Technology will be used as the primary tool to maintain effective communication with educators and the public across Montana.

Objective 2: During fiscal years 1999 and 2000, the office of public instruction will provide technical assistance to districts and communities to assist with the development of local profiles of school and program effectiveness. Technology will provide the primary means of communication.

Performance Measures:

• The first Montana educational profile will be completed by February 1999. The profile will report the status and achievements of schools or districts in peer groupings and provide a state and national context for comparison.

• By July 2000, 20% of Montana's 469 school districts will voluntarily participate in a pilot project to develop, publish, and distribute local school profiles. All districts will complete, publish, and distribute local profiles by July 2001.

• A survey of state and local policymakers, educators, and community members will indicate that the education profile is accessible, meaningful, and valuable as a tool for school improvement at the local level.

• A survey will indicate that the public is able to identify and draw conclusions from the indicators of educational quality and perceive that it can be actively engaged in the school improvement process.

Goal III: Promote the effective use of technology resources for expanding K-12 educational opportunities.

Objective 1: By July 1, 1999, the office of public instruction will have increased the use of electronic communication technologies to disseminate information on school improvement, professional development opportunities, and education-related data.

Performance Measures:

• By July 1997, the office of public instruction will add two additional toll-free lines to the METNET bulletin board system. By October 1997, user logins via the toll-free lines will increase by 600 calls each day, thereby doubling the number of logins to the bulletin board system.

• In the 1997-98 school year, baseline survey data will be gathered to measure the integration of technology into the classroom. In subsequent years, survey data will measure the advances in this area.

• By January 1999, user participation in educational conferences on METNET will increase by 50%. The 1996-97 school year will provide baseline data.

Goal IV: Improve access to and management of information and data related to K-12 education.

Objective 1: By October 1998, the office of public instruction will expand and improve data collection and management, electronic transmission of data, analysis procedures, and dissemination processes. Improved data collection and management procedures will ensure the accuracy and timeliness of data necessary for reporting indicators and measures to the Montana public.

Objective 2: By January 1999, the data identified for the first statewide Montana education profile will be produced by the office of public instruction in a timely, accurate, comparable, and cost-effective manner.

Objective 3: The process developed by the office of public instruction for gathering and managing education data will decrease processing time and increase access to elementary and secondary school data for educational decisionmaking.

Performance Measures:

• By July 1998, common definitions, standards, and procedures will be identified and disseminated to ensure accuracy of data collections and cost-effective data-gathering decisions.

• Processing time will improve for data currently collected by districts and the office of public instruction. The 1996-97 school year will serve as a baseline for comparison.

• Education-related data and information will be available to the public in a variety of standard formats (both electronic and printed) and in a variety of locations, including the METNET bulletin board system, libraries, and schools.

• Surveys will indicate that policymakers, educators, and the general public recognize that the data provided assists in public decisions."

177. Page E-3, following line 4.

179. Page E-3, line 9.

Strike: "10,036" [State Special Revenue Fiscal 1999]

Insert: "10,379" [State Special Revenue Fiscal 1999]

180. Page E-3, line 21.

Strike: "0" [State Special Revenue Fiscal 1999]

Insert: "387" [State Special Revenue Fiscal 1999]

181. Page E-4, line 14.

Strike: "120,241" [State Special Revenue Fiscal 1999]

Insert: "121,391" [State Special Revenue Fiscal 1999]

182. Page E-4, line 18

Strike: "436,900" [Federal Special Revenue Fiscal 1999]

Insert: "437,955" [Federal Special Revenue Fiscal 1999]

1,473,264 174,616 410,084"

1,466,032 172,779 417,348"

583,301 170,795 52,626 5,408"

580,796 172,005 53,503 6,130"

186. Page E-8, following line 5.

3,837,500 [FY 1998 Cultural and Aesthetics Trust Fund]"

Insert: "Item 1 includes a 10% reduction in equipment totaling $7,800 in fiscal year 1998 and $5,300 in fiscal year 1999. The agency may allocate this reduction among programs.

Item 5b is contingent upon the failure of House Bill No. 14. The amount of $3,837,500 in cultural and aesthetics trust fund money is appropriated to the Montana historical society for the acquisition, renovation, and preservation of real and personal property owned by Bovey restorations, inc., and the historic landmark society of Montana in the communities known as Virginia City and Nevada City. If House Bill No. 14 is passed and approved, item 5b is void."

188. Page E-8, lines 16 and 18.

Strike: "126,449,213" [State Special Revenue Fiscal 1999]

"9,380,739" [Federal Special Revenue Fiscal 1999]

Insert: "126,449,262" [State Special Revenue Fiscal 1999]

"9,390,552" [Federal Special Revenue Fiscal 1999]

12,750 12,750" [general fund fiscal years 1998 and 1999]

191. Page E-9, line 6.

Strike: "300,000"

192. Page E-9, line 19.

1,000,000 1,000,000" [state special revenue fiscal 1998 and 1999]

193. Page E-11, line 10.

Insert: "The general fund appropriation in item 1 includes $929,300 from a reduction in GABA, $398,700 resulting from legislative action on House Bill No. 561, and $672,000 from the ending fund balance."

Insert: "Total summitnet costs are estimated to be $25,000 each year for the community colleges. The general fund appropriation for the community colleges provides 51% of the total summitnet costs. The remaining 49% of these costs must be paid from funds other than those appropriated in item 3b. Summitnet costs for each year may not exceed $8,000 each for Dawson and Miles community colleges and $9,000 for Flathead Valley community college."

195. Page E-11, line 19.

Insert: "The appropriation in item 10 is state special revenue from interest and income repaid from investments administered by the board of science and technology development in research and development projects at Montana public universities. This appropriation is contingent upon passage and approval of House Bill No. 578."

196. Page R-4, line 20.

Strike: "12%" [Proprietary Fiscal 1999]

Insert: "15%" [Proprietary Fiscal 1999]

197. Page R-4, line 24.

Strike: "0.5309" [Proprietary Fiscal 1999]

Insert: "0.5928" [Proprietary Fiscal 1999]

198. Page R-4, line 25.

Strike: "0.2149" [Proprietary Fiscal 1999]

Insert: "0.2768" [Proprietary Fiscal 1999]

199. Page R-4, line 26.

Strike: "0.1928" [Proprietary Fiscal 1999]

Insert: "0.2547" [Proprietary Fiscal 1999]

200. Page R-4, line 27.

Strike: "0.1769" [Proprietary Fiscal 1999]

Insert: "0.2388" [Proprietary Fiscal 1999]

201. Page R-4, line 28.

Strike: "0.1714" [Proprietary Fiscal 1999]

Insert: "0.2333" [Proprietary Fiscal 1999]

202. Page R-5, line 1.

Strike: "3.2829" [Proprietary Fiscal 1999]

Insert: "3.3447" [Proprietary Fiscal 1999]

203. Page R-5, line 2.

Strike: "8.9169" [Proprietary Fiscal 1999]

Insert: "8.9788" [Proprietary Fiscal 1999]

204. Page R-5, line 3.

Strike: "0.1251" [Proprietary Fiscal 1999]

Insert: "0.1870" [Proprietary Fiscal 1999]

206. Page R-6, line 11.

Strike: "$611,548" [Proprietary Fiscal 1999]

Insert: "$987,107" [Proprietary Fiscal 1999]

Insert: "7. Because state employee benefit plans require a large number of individual premiums for a variety of benefit options, because the portion of these premiums paid by the state is statutorily established in 2-18-703, and because the employee-paid portion of these premiums must be adjusted from time to time to meet the requirements of 2-18-812(1) to maintain state employee group benefit plans on an actuarially sound basis, the legislature defines "rates and fees" for state employee benefit programs to mean the state contribution toward employee group benefits defined in 2-18-703 and the employee contribution toward employee group benefits necessary to meet the requirements of 2-18-812(1)."

208. Page R-9, line 25.

Following: line 24

Insert: "c. HB 188 -- Proprietary Funds 26,420" [Fiscal 1999]

Insert: "MONTANA UNIVERSITY SYSTEM (5100)

1. Because certain programs or functions are enterprise-like in nature, must maintain a business approach in their operations, and may have large numbers of individual rates for the various products sold or services provided for the following programs or functions, the legislature defines "rates and fees" to mean those rates or fees necessary to maintain a fiscal year ending fund balance in the defined range.

And this FREE Conference Committee report be adopted.

For the House: For the Senate:

Zook, Chairman Swysgood, Chairman

Bergsagel Mohl

Barnhart Nelson (unsigned)

SB 367 - The House acceded to the request of the Senate and dissolved the Conference Committee on SB 367 and authorized the Speaker to appoint a Free Conference Committee to confer on SB 367. The Speaker appointed the following members:

Representative Grinde, Chairman

Representative Denny

Representative Harper

HB 2 - Senator Harp moved that consideration of the Free Conference Committee Report No. 1 to HB 2 be placed on second reading this legislative day, April 23, 1997. Motion carried unanimously.

SECOND READING OF BILLS

4:26 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 Foster in the Chair.

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

HB 2-Free Conference Committee Report No.1 - Senator Swysgood moved the Free Conference Committee to HB 2 be adopted. Motion carried as follows:

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

Total 34

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

Total 14

Absent or not voting: None.

Total 0

Excused: Doherty, Eck.

Total 2

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 Foster moved that the Committee of the Whole report be adopted. Report adopted.

SB 374-Free Conference Committee Report No. 2 - Senator Hargrove moved the Senate reconsider its action in adopting the Free Conference Committee Report No.2 to SB 374 taken on second reading the previous legislative day. Motion carried unanimously.

FREE CONFERENCE COMMITTEE

on Senate Bill 374

Report No. 3, April 23, 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."

Insert: "NEW SECTION. Section 11.  Automated access to financial 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 used for purposes of subtitle VI of Title 49 of the U.S.C. or as otherwise permitted by state law administered by the department and 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, 10, 25, 45, and 89] terminate"

Insert: "and"

Insert: "(2) [Sections 9, 11, 22 through 24, 93, and 95] and the bracketed language in [sections 1 through 3, 10, 25, 45, 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:

(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:

(5)(a) 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).

(b) Because section 395(c) of the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) allows a grace period for states to amend their constitutions in order to comply with PRWORA and because the Montana legislature believes that the section of PRWORA prohibiting a jury trial in a paternity proceeding violates Article II, section 26, of the Montana Constitution and is therefore rejected, the department of public health and human services shall seek a federal government exemption from the jury trial prohibition in PRWORA as the first exemption it seeks under subsection (5)(a).

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

(7) If the bracketed language in [section 1 through 3, 10, 25, 45, 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 McGee, Chairman

Toews Boharski (unsigned)

Waterman Wyatt

SB 374-Free Conference Committee Report No. 3 - Senator Harp moved that SB 374-Free Conference Committee Report No. 3 be placed on second reading this legislative day, April 23, 1997. Motion carried.

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

HB 2-Free Conference Committee Report No.1, concurred in as follows:

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

Total 34

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

Total 16

Paired: Grosfield, Toews, Aye; Doherty, Eck, No.

Absent or not voting: None.

Total 0

Excused: None.

Total 0

Senator Harp moved the Senate recess until 6:15 p.m. Motion carried.

Senate recessed at 5:40 p.m.

Senate reconvened at 6:12 p.m. President Aklestad presiding.

Roll Call. Quorum present.

LEGISLATIVE ADMINISTRATION (Foster, Chairman): 4/23/97

MR. PRESIDENT:

We, your committee on Legislative Administration recommend that employment of the following attaches of the Senate be terminated as of 8:00 p.m., Wednesday, April 23, 1997:

TITLE NAME

Pages: Michelle Schmitz

John Iverson

Jennifer Murray

Erin McGowan

Nick Diehl

And that this report be adopted.

FREE CONFERENCE COMMITTEE

on House Bill 578

Report No. 1, April 23, 1997

Mr. Speaker and Mr. President:

We, your Free Conference Committee on House Bill 578, met and considered House Bill 578 (reference copy - salmon) and recommend that House Bill 578 be amended as follows:

Insert: "REVISING THE CONDITIONS FOR MEMBERSHIP ON THE BOARD; TRANSFERRING A PORTION OF THE INTEREST EARNINGS TO THE SUPREME COURT TO FUND JUDGES' RETIREMENT; AUTHORIZING A GRANT OF INTEREST EARNINGS TO THE UNIVERSITY SYSTEM;"

"2-15-1818.   Montana board of science and technology development -- allocation -- composition -- quasi-judicial powers. (1) There is a Montana board of science and technology development. The board is allocated to the department of commerce. The department shall select, prescribe the duties for, and supervise staff to administer board activities.

(2)  The board consists of nine members appointed by the governor as prescribed in 2-15-124.

(3)  In making appointments to the board, the governor shall consider people with extensive interest and experience in science and technology and the application of such interest and experience to economic development in Montana.

(4)  The membership of the board must include:

(a)  at least three members with knowledge of early stage financing of private businesses;

(b)  at least one member with expertise in applied technology development; and

(c)  at least five members from the private sector.

(5)  The board is designated a quasi-judicial board for purposes of 2-15-124.

(6) A member of the board appointed after [the effective date of this section] may not be an officer or an employee of an entity that has received funding from the board.""

Insert: "The department shall establish an appropriate repayment schedule for all outstanding research and development loans made to the university system. The department shall report the schedule to the 56th legislature. The department shall develop a business investment strategy for investing in Montana business and shall present the proposal to the 56th legislature."

Insert: "(5) Beginning July 1, 1999, all repayments proceeds in excess of $4.395 million must be deposited in the coal severance tax permanent fund. In the fiscal year ending June 30, 1998, the department shall transfer $250,000 from the interest and earnings from job investment loans to the Montana supreme court to be used to fund the judges' retirement system."

Insert: "[The board may grant up to $2 million of interest and income from investments to research and development projects at Montana public universities. The research and development projects may include grant matching fund purposes.]"

Insert: "Except for $915,000, all uncommitted seed capital funds must revert to the coal severance tax permanent fund. The department may use up to $75,000 each year of the seed capital funds for administrative purposes. The board of science and technology development, with the concurrence of the director of the department, may extend an additional loan to an existing seed capital portfolio company by up to $700,000. In the fiscal year ending June 30, 1998, the department shall transfer $250,000 of interest and earnings to the Montana Supreme Court to be used to fund the judges' retirement system."

Insert: "the proceeds of the seed capital portion of the Montana board of science and technology development loans must be deposited in the coal severance tax permanent fund until all loans have been repaid plus the amount of 7% simple interest for the years that the loans have been outstanding. The board shall calculate the amount of the interest charge. The board may use up to $25,000 of the repayments for administrative costs in the fiscal year ending June 30, 1997"

Insert: "NEW SECTION. Section 15. Coordination instruction.  (1) If House Bill No. 2 is vetoed, then the bracketed language in [section 7] is void.

(2) If the bracketed language in [section 7] is effective, then the $1 million for each fiscal year appropriated from the state special revenue account for university system research contained in House Bill No. 2 is void."

Insert: ", and [section 7] applies retroactively, within the meaning of 1-2-109, to investment payments received on or after April 1, 1997"

And this FREE Conference Committee report be adopted.

For the House: For the Senate:

Grinde, Chairman Devlin, Chairman

R. Johnson Taylor

Raney (unsigned) Jergeson

HB 578-Free Conference Committee Report No.1 - Senator Harp moved that consideration of HB 578-Free Conference Committee Report No. 1 be placed on second reading this legislative day, April 23, 1997. Motion carried.

April 23, 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 124 sponsored by Senator Christiaens, Senate Bill 181 sponsored by Senator Hargrove, Senate Bill 315 sponsored by Senator McCarthy, Senate Bill 332 sponsored by Senator Miller and Senate Bill 379 sponsored by Senator Lynch on April 23, 1997.

Sincerely,

MARC RACICOT

Governor

Senate bill concurred in and returned to the Senate: 4/23/97

SB 187, introduced by Crippen

Free Conference Committee report #1 adopted on each of the following bills: 4/23/97

HB 2, introduced by Zook

HB 14, introduced by R.Johnson

HB 578, introduced by R.Johnson

Free Conference Committee report #3 adopted on the following bill: 4/23/97

SB 374, introduced by Hargrove

Senate amendments to House bill concurred in: 4/23/97

HB 212, introduced by Raney

6:12 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 Foster in the Chair.

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

SB 374-Free Conference Committee Report No.3 - Senator Hargrove moved that the Free Conference Committee Report to SB 374 be adopted. Motion carried as follows:

Yeas: Beck, Bishop, Brooke, Cole, Crippen, Crismore, Devlin, Foster, Franklin, Gage, Glaser, Halligan, Hargrove, Hertel, Holden, Jabs, Jergeson, Keating, Lynch, Mahlum, McCarthy, McNutt, Mesaros, Nelson, Shea, Sprague, Stang, Swysgood, Taylor, Toews, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 34

Nays: Baer, Bartlett, Benedict, Burnett, Christiaens, DePratu, Emerson, Estrada, Grosfield, Harp, Jenkins, Miller, Mohl, Thomas.

Total 14

Absent or not voting: None.

Total 0

Excused: Doherty, Eck.

Total 2

HB 578-Free Conference Committee Report No. 1 - Senator Devlin moved that the Free Conference Committee Report to HB 578 be adopted. Motion carried as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, 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 48

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: Doherty, Eck.

Total 2

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

SB 367-House Amendments - Senator Bartlett moved that the Free Conference Committee on SB 367 be dissolved. Motion carried unanimously.

SB 367-House Amendments - Senator Bartlett moved that the Senate reconsider its action in rejecting the House Amendments to SB 367. Motion failed as follows:

Yeas: Bartlett, Bishop, Brooke, Burnett, Christiaens, Doherty, Eck, Franklin, Halligan, Jergeson, Lynch, McCarthy, Miller, Nelson, Shea, Stang, Van Valkenburg, Waterman, Wilson.

Total 19

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

Total 31

Paired: Doherty, Eck, Aye; Holden, Thomas, No.

Absent or not voting: None.

Total 0

Excused: None.

Total 0

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

SB 374-Free Conference Committee Report No.3, passed as follows:

Yeas: Bartlett, Beck, Bishop, Brooke, Cole, Crippen, Crismore, Devlin, Doherty, Eck, Foster, Franklin, Gage, Glaser, Halligan, Hargrove, Hertel, Holden, Jabs, Jergeson, Keating, Mahlum, McCarthy, McNutt, Mesaros, Nelson, Shea, Sprague, Swysgood, Van Valkenburg, Waterman, Wilson, Mr. President.

Total 33

Nays: Baer, Benedict, Burnett, Christiaens, DePratu, Emerson, Estrada, Grosfield, Harp, Jenkins, Lynch, Miller, Mohl, Stang, Taylor, Thomas, Toews.

Total 17

Paired: Doherty, Eck, Aye; Baer, Stang, No.

Absent or not voting: None.

Total 0

Excused: None.

Total 0

HB 578-Free Conference Committee Report No. 1, concurred in as follows:

Yeas: Baer, Bartlett, Beck, Benedict, Bishop, Brooke, Burnett, Christiaens, Cole, Crippen, Crismore, DePratu, Devlin, 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 48

Nays: None.

Total 0

Absent or not voting: None.

Total 0

Excused: Doherty, Eck.

Total 2

MESSAGES FROM THE OTHER HOUSE

Return of Senate Bill to the House requested on the following bill: 4/23/97

SB 367, introduced by Bartlett

SB 367-House Amendments - Senator Halligan moved to accede to the request of the House to send SB 367 back to the House. Motion passed as follows:

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

Total 27

Nays: Baer, Beck, Cole, Crippen, Crismore, DePratu, Devlin, Foster, Grosfield, Harp, Hertel, Holden, Keating, Mahlum, Mohl, Sprague, Swysgood, Thomas, Toews, Mr. President.

Total 20

Paired: Doherty, Eck, Aye; Holden, Toews, No.

Absent or not voting: Emerson, Estrada, Gage.

Total 3

Excused: None.

Total 0

Majority Leader Harp moved that the President be authorized to appoint a committee of three to notify his excellency, the Governor, that the Senate of the 55th Legislative Session is ready to adjourn sine die. Motion carried.

The President appointed Senators Crismore (Chairman), Mahlum and McCarthy.

Majority Leader Harp moved that the President be authorized to appoint a committee of three to notify the House of Representatives that the Senate of the 55th Legislative Session is ready to adjourn sine die. Motion carried.

The President appointed Senators Thomas (Chairman), McNutt and Shea.

Majority Leader Harp moved that the President be authorized to appoint a committee of three to notify the Chief Justice and the Justices of the Montana Supreme Court that the Senate of the 55th Legislative Session is ready to adjourn sine die.

The President appointed Senators Holden (Chairman), Jabs and Nelson.

The President dismissed the committees to perform their assigned duties.

Majority Leader Harp moved that the Senate stand at ease subject to the call of the chair. Motion carried.

Sgt-at-Arms Cramer announced the return of the committees and escorted them into the Senate.

The committee appointed to notify the House of Representatives reported that the House wished the Senate well and expressed their appreciation for cooperation of the Senate. The President discharged the committee.

The committee appointed to notify the Governor reported that the Governor expressed his best wishes to the Senate. The President discharged the committee.

The committee appointed to notify the Chief Justice and Justices of the Supreme Court reported that the Chief Justices wished the Senate well. The President discharged the committee.

Senator Foster recognized the Senate pages for the week and thanked them for all their good work during this last week of the 55th Legislature.

Majority Leader Harp moved that the Senate adjourn sine die. Motion carried.

ROSANA SKELTON GARY AKLESTAD

Secretary of Senate President of the Senate