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AMESTOY CONSULTING, LLC

10 Reeders Village Drive

Helena, Montana 59601

Phone/Fax 406-443-2370

 

March 11, 2007

LOBBYIST ACTIVITY REPORT

2007 LEGISLATIVE SESSION

WEEK TEN

(March 4, 2007 – March 10, 2007)

 

 

During Week Ten of the 2007 Legislative Session, I provided testimony on the following proposed legislation:

 

HB 137: "AN ACT REVISING CONDITIONS UNDER THE MICROBUSINESS DEVELOPMENT ACT TO INCREASE ACCESS TO DEVELOPMENT LOANS; REVISING THE DEFINITION OF "QUALIFIED MICROBUSINESS"; AMENDING SECTIONS 17-6-402, 17-6-403, AND 17-6-407, MCA; AND PROVIDING AN EFFECTIVE DATE."

This bill basically revised the definition of “Qualified Microbusiness” to allow businesses that have fewer than 10 full-time equivalent employees and gross revenue of less than $1 million dollars to qualify for the program.  At the present time, to qualify, a business must have fewer than 10 employees and have gross revenue of less than $500,000.  Therefore, passage of this bill would allow the program to be available to more businesses. I provided testimony in support of this bill.

 

HB 369: "AN ACT INCREASING THE AMOUNTS THAT A COUNTY MAY BORROW WITHOUT A VOTE OF THE ELECTORATE; AND AMENDING SECTION 7-7-2402, MCA; AND PROVIDING AN EFFECTIVE DATE."

            This would allow the County Commissioners to exercise more discretion in determining the amount that a county may borrow without a vote of the electorate, due to the rapid increases in the costs of materials, equipment and construction costs. It is important to note that this legislation does not increase taxes or the debt limit of the County. I provided testimony in support of this bill.

 

            I monitored the following proposed legislation:

 

SB 464: "AN ACT AUTHORIZING LOCAL GOVERNMENTS TO IMPOSE A LOCAL OPTION REALTY TRANSFER TAX IF AUTHORIZED BY THE ELECTORS OF THE LOCAL GOVERNMENT; REQUIRING THAT AT LEAST 10 PERCENT OF THE PROCEEDS OF THE TAX ARE TO BE USED FOR PROPERTY TAX RELIEF; LIMITING THE TAX TO 1 PERCENT OF THE CURRENT MARKET VALUE OF THE PROPERTY TRANSFERRED; ESTABLISHING THAT A PERCENTAGE OF THE VALUE IS EXEMPTED AND ALLOWING A MAXIMUM MARKET VALUE SUBJECT TO THE EXEMPTION; PROVIDING THAT IF THE TAX IS IMPOSED BY A MUNICIPALITY, ONLY TRANSACTIONS WITHIN THE MUNICIPALITY ARE TAXED AND THAT IF IT IS IMPOSED BY A COUNTY, ONLY THE TRANSACTIONS IN THE COUNTY BUT NOT WITHIN A MUNICIPALITY ARE TAXED; AMENDING SECTIONS 7-6-4034, 15-7-302, 15-7-307, 15-7-308, AND 15-10-420, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

            The purpose of this bill is self-explanatory.  It was supported by a number of cities and counties in western Montana that are experiencing rapid growth and the resulting adverse impacts on their ability to provide adequate city and county infrastructures. I monitored this proposed legislation.

 

SB 19: "AN ACT REVISING LAWS GOVERNING OIL AND GAS OPERATIONS; REQUIRING A SEISMIC ACTIVITY PERMITHOLDER TO FURNISH INFORMATION TO A SURFACE OWNER; REQUIRING AN OIL OR GAS DEVELOPER OR OPERATOR TO PROVIDE INFORMATION TO A SURFACE OWNER; REQUIRING THE SURFACE OWNER TO PROVIDE INFORMATION; INCREASING THE TIME PERIODS FOR NOTICE OF DRILLING OPERATIONS; CLARIFYING THAT A SURFACE OWNER AND OIL AND GAS DEVELOPER OR OPERATOR MAY USE DISPUTE RESOLUTION PROCESSES; CLARIFYING THE PENALTY FOR VIOLATING NOTICE REQUIREMENTS; AMENDING SECTIONS 82-1-107, 82-10-503, 82-10-504, AND 82-10-505, MCA; AND PROVIDING AN APPLICABILITY DATE."

SB 19 is the result of an interim study group that was authorized by the 2005 Legislature to address concerns that were raised by SB 258 in the 2005 Legislature.  The interim study group met throughout the interim with the goal of crafting a bill for the 2007 Legislature that would be address the concerns of both the landowners and the petroleum industry.  Although SB 19 was the best compromise that could be reached between the two opposing positions, the testimony presented at the hearing indicated that neither side was in total agreement with the provisions of the bill. I monitored this bill.

 

SB 69: "AN ACT INCREASING THE ALLOCATION OF COAL SEVERANCE TAX TRUST FUNDS AVAILABLE FOR THE VALUE-ADDED LOAN PROGRAM AND THE INFRASTRUCTURE LOAN PROGRAM; AMENDING SECTION 17-6-311, MCA; AND PROVIDING AN EFFECTIVE DATE."

            This proposed legislation has a number of limiting factors that make it difficult to apply to very many businesses in smaller Montana communities.  For example, this bill only applies to “Basic Sector Businesses” which are defined as businesses that create at least 50% of their business from out of state. In addition, a minimum of 15 new jobs must be created to qualify for value-added loans and 15 new jobs must be created to qualify for an infrastructure loan. I monitored this proposed legislation.

 

SB 88: "AN ACT EXTENDING INDEFINITELY THE ALLOCATION OF LODGING FACILITY USE TAX TO THE MONTANA HERITAGE PRESERVATION AND DEVELOPMENT ACCOUNT; AMENDING REPEALING SECTION 3, CHAPTER 469, LAWS OF 2001; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

This proposed legislation extends the sunset from July 30, 2007 to June 30, 2011 for $400,000 statutory annual lodging facility use tax funding to the Montana Heritage Preservation Commission. I monitored this proposed legislation

 

HB334: "AN ACT REMOVING THE TIME RESTRICTIONS ON THE DESIGN-BUILD HIGHWAY CONTRACT PROCESS FOR HIGHWAY CONSTRUCTION PROJECTS; AMENDING SECTIONS 18-8-204, 18-8-205, 60-2-111, 60-2-112, 60-2-134, AND 60-2-137, MCA; REPEALING SECTIONS 60-2-135 AND 60-2-136, MCA; AND PROVIDING AN EFFECTIVE DATE."

This bill was introduced at the request of the Montana Department of Transportation in an effort to reduce the amount of time that it takes to design and build certain highway construction projects. I monitored this proposed legislation.

 

HB 196: "AN ACT CREATING A COAL DEVELOPMENT IMPACT ACCOUNT; ALLOCATING COAL SEVERANCE TAX MONEY TO THE COAL DEVELOPMENT IMPACT ACCOUNT; AUTHORIZING THE COAL BOARD TO ALLOCATE FUNDS FOR GOVERNMENT FACILITIES ADVERSELY IMPACTED BY THE DEVELOPMENT OF COAL RESOURCES; AUTHORIZING ALLOCATIONS TO STATE AGENCIES FOR OTHER IMPACTS; REQUIRING THE COAL BOARD TO PROVIDE A REPORT TO THE LEGISLATURE; AMENDING SECTIONS 15-35-108, 90-6-205, 90-6-207, AND 90-6-209, MCA; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE."

            The purpose of this proposed legislation is self-explanatory. I monitored this proposed legislation.