90-1-122. Lodging facility use tax allocation -- allowable uses -- unspent fund redistribution -- rulemaking -- fees. (1) On an annual basis, the tax proceeds that are transferred to the department's state special revenue account pursuant to 15-65-121 must be used as follows:

(a) 43% for tourism media, advertising film programs, made-in-Montana promotions and main street programs, wayfinding and signage, and support to trade offices;

(b) 22.5% for rural tourism, under-visited area attraction projects, and tribal tourism, including infrastructure, tourism-related emergency services, marketing, and promotional activities;

(c) 23% for tourism grants, including agritourism grants and Montana-based film grants;

(d) subject to subsection (5), 6.5% for revolving loan programs and regional tourism assistance; and

(e) 5% to use in collaboration with the office of economic development established in 2-15-218 for new tourism attractions, other state business development programs, and support for the activities in subsections (1)(a) through (1)(d) of this section.

(2) The department shall pay personal costs, operating costs, and any costs associated with a program or project provided for in subsections (1)(a) through (1)(e) at its discretion.

(3) The department may redistribute the unencumbered funds in subsection (1)(a) to each applicable program at its discretion by December 31 of each year.

(4) The department may adopt rules to:

(a) determine criteria for a rural area, an under-visited area, and qualifications for funds for attraction projects under subsection (1)(b); and

(b) implement the tourism grant program, the regional tourism assistance program, and the revolving loan program under subsections (1)(c) and (1)(d) and charge a fee commensurate with the cost of the program.

(5) If the tax proceeds designated for revolving loan programs and regional tourism assistance pursuant to subsection (1)(d) exceed $35 million, the tax proceeds that exceed $35 million must be redistributed for the purposes and in the proportions provided for in subsections (1)(a) through (1)(e).