AMESTOY CONSULTING, LLC
2007 LEGISLATIVE SESSION
WEEK TWELVE
(March 18, 2007 – March 24, 2007)
During Week Twelve of the
2007 Legislative Session, I provided testimony on the following proposed
legislation:
SB 554: "AN ACT GENERALLY
REVISING TAXATION AND SCHOOL FUNDING BY SUBMITTING TO THE QUALIFIED ELECTORS A
4 PERCENT SALES TAX AND USE TAX THAT EXEMPTS CERTAIN GOODS; PROVIDING FOR THE
DISTRIBUTION OF THE SALES AND USE TAXES FOR SCHOOL FUNDING AND TO LOCAL
GOVERNMENTS; PROVIDING A REFUNDABLE INCOME TAX CREDIT TO TAXPAYERS; PROVIDING
FOR A STATE EARNED INCOME TAX CREDIT; EXEMPTING THE FIRST $150,000 OF MARKET
VALUE OF CLASS EIGHT PROPERTY; ELIMINATING THE STATEWIDE 95-MILL LEVY FOR
SCHOOL FUNDING AND THE 6-MILL LEVY FOR THE UNIVERSITY SYSTEM; AMENDING SECTIONS
7-1-2111, 15-1-111, 15-1-402, 15-6-138, 15-8-301, 15-10-420, 15-23-703,
15-24-1402, 15-24-1703, 15-24-1802, 15-24-1902, 15-24-2002, 15-36-331,
15-36-332, 15-39-110, 15-68-101, 15-68-102, 15-68-110, 15-68-201, 15-68-202,
15-68-206, 15-68-207, 15-68-401, 15-68-402, 15-68-405, 15-68-501, 15-68-502,
15-68-505, 15-68-510, 15-68-801, 15-68-820, 17-3-213, 20-3-106, 20-3-205,
20-3-209, 20-6-702, 20-9-141, 20-9-212, 20-9-306, 20-9-308, 20-9-332, 20-9-343,
20-9-344, 20-9-346, 20-9-347, 20-9-351, 20-9-370, 20-9-371, 20-9-406, 20-9-439,
20-9-501, 20-9-620, 20-10-104, 20-10-141, 20-10-142, 20-10-144, 90-6-309, AND
90-6-403, MCA; REPEALING SECTIONS 15-10-107, 20-9-331, 20-9-333, 20-9-360,
20-9-361, 20-9-366, 20-9-367, 20-9-368, 20-9-369, 20-9-630, 20-9-631, 20-9-632,
20-10-146, AND 20-25-439, MCA; AND PROVIDING EFFECTIVE AND APPLICABILITY
DATES."
This
proposed legislation is very complicated.
As outlined in the title, this bill would: 1. Revise taxation and school
funding; 2. Submit to the qualified electors a 4% sales tax; 3. Providing for
the distribution of the sales and use taxes for school funding and to local
governments; 4 Provide a refundable income tax credit to taxpayers; 5. Provide
for a state earned income tax credit; 6. Exempt the first $150,000 of market
value of Class Eight property; and, 7. Eliminate the statewide 95-mill levy for
school funding and the 6-mill levy for the university systems.
One
of the most obvious adverse impacts to the residents and schools of
HB 529: "AN ACT REDUCING THE
TAX RATE FOR CLASS EIGHT BUSINESS EQUIPMENT; REVISING THE EXEMPTION AMOUNT OF
CLASS EIGHT PROPERTY; PROVIDING A REIMBURSEMENT TO LOCAL TAXING JURISDICTIONS
FOR THE LOSS OF CLASS EIGHT PROPERTY TAX REVENUE; PROVIDING THAT THE
REIMBURSEMENT BE CONSIDERED PROPERTY TAXES ACTUALLY ASSESSED IN CALCULATING THE
MILL LEVY FOR FISCAL YEAR 2009; AMENDING SECTIONS 7-1-2111, 15-6-138, 15-6-219,
15-8-301, 15-10-420, 17-7-502, AND 20-9-406, MCA; AND PROVIDING A DELAYED
EFFECTIVE DATE AND AN APPLICABILITY DATE."
This proposed legislation
would basically reduce the tax on Class Eight property from 3% to 4%. Class Eight property includes:
(a) All agricultural implements and equipment that are not exempt under 15-6-207 or 15-6-220;
(b) All mining machinery, fixtures, equipment, tools
that are not exempt under 15-6-219, and supplies except those included in class
five 15-6-135;
(c) All oil and gas production machinery, fixtures,
equipment, including pumping units, oil field storage tanks, water storage
tanks, water disposal injection pumps, gas compressor and dehydrator units,
communication towers, gas metering shacks, treaters,
gas separators, water flood units, gas boosters, and similar equipment that is skidable, portable, or movable, tools that are not exempt
under 15-6-219, and supplies except those included in class five 15-6-135;
(d) All manufacturing machinery, fixtures, equipment,
tools, except a certain value of hand-held tools and personal property related
to space vehicles, ethanol manufacturing, and industrial dairies and milk
processors as provided in 15-6-220, and supplies except those included in class
five 15-6-135;
(e) All goods and equipment that are intended for
rent or lease, except goods and equipment that are specifically included and
taxed in another class;
(f) Special mobile equipment as defined in 61-1-101;
(g) Furniture, fixtures, and equipment, except that
specifically included in another class, used in commercial establishments as
defined in this section;
(h) X-ray and medical and dental equipment;
(i) Citizens’ band radios
and mobile telephones;
(j) Radio and television broadcasting and
transmitting equipment;
(k) Cable television systems;
(l) Coal and ore haulers;
(m) Theater projectors and sound equipment; and
(n) All other property that is not included in any
other class in this part, except that property that is subject to a fee in lieu
of a property tax.
As proposed, this bill
would not reduce the amount of taxes collected by the county because there is a
provision that would reimburse the counties, from the State General Fund. I
supported HB 529.
HB 253: "AN ACT REMOVING THE
REQUIREMENT THAT A BOARD OF COUNTY COMMISSIONERS HOLD AN ELECTION IF THE COST
OF CONSTRUCTION OF A BRIDGE IN A MUNICIPALITY EXCEEDS $10,000; AND REPEALING
SECTION 7-14-2205, MCA."
The
purpose of this proposed legislation is self-explanatory. I monitored this
proposed legislation.
HB 634: "AN ACT INCREASING
THE AMOUNT OF BONDS AND NOTES THAT THE FACILITY FINANCE AUTHORITY MAY ISSUE;
AMENDING SECTION 90-7-302, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE
DATE."
This
proposed legislation would increase the amount of bonds and notes that the
Facility Finance Authority could issue. This would provide additional funding
opportunities for business development.
I supported this proposed legislation
SB 308: "AN ACT ALLOWING
CERTAIN PROPERTY OWNERS TO VOTE IN A ROAD LEVY ELECTION; AND PROVIDING AN
IMMEDIATE EFFECTIVE DATE."
The purpose of this
proposed legislation is to allow certain property owners to vote in road levy
elections if they possess all of the qualifications required of electors under
the general election laws of the state and meet other specific requirements
that are outlined in the proposed legislation. I monitored this proposed
legislation.
SB
328: "AN ACT
ESTABLISHING AN OPTIONAL PROCUREMENT EXCEPTION APPLICABLE TO THE PURCHASE OF
MONTANA-PRODUCED FOOD PRODUCTS BY PUBLIC AGENCIES; . . .."
This bill
provides an optional procurement exception for
SJ 13: A JOINT RESOLUTION OF THE
SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REQUESTING AN
INTERIM STUDY TO EVALUATE METHODS AND RECOMMEND WAYS TO ADD VALUE TO MONTANA
AGRICULTURAL PRODUCTS THROUGH REDEVELOPMENT OF A FOOD PROCESSING INDUSTRY; AND
REQUIRING THAT THE FINAL RESULTS OF THE STUDY BE REPORTED TO THE 61ST
LEGISLATURE.
The purpose of this Senate Joint
Resolution is self-explanatory. I
provided testimony is support of this proposed legislation.
SB 245: "AN ACT INCREASING THE
DEBT LIMITS FOR COUNTIES, CONSOLIDATED MUNICIPALITIES, AND CITIES OR TOWNS;
AMENDING SECTIONS 7-3-1321, 7-7-2101, 7-7-4201, 7-14-2524, AND 7-14-2525, MCA;
AND PROVIDING AN EFFECTIVE DATE."
The
purpose of this proposed legislation is self-explanatory. I monitored this proposed legislation.
HB 798: "AN ACT REVISING
ENERGY DEVELOPMENT IMPACT LAWS; CHANGING THE NAME OF THE COAL BOARD TO THE
COAL, OIL, AND GAS IMPACT BOARD; REVISING THE BOARD'S MEMBERSHIP; ALLOCATING
FUNDS FROM FEDERAL LEASING FUNDS; AUTHORIZING THE COAL, OIL, AND GAS IMPACT
BOARD TO ISSUE GRANTS TO ASSIST LOCAL GOVERNMENTS WITH ENERGY DEVELOPMENT
IMPACTS; PROVIDING A STATUTORY APPROPRIATION; CLARIFYING THE BASIS AND
PRIORITIES FOR AWARDING GRANTS; CREATING THE OIL, GAS, AND ENERGY GENERATION
LOCAL GOVERNMENT INFRASTRUCTURE IMPACT ASSISTANCE ACT; PROVIDING THE BOARD WITH
RULEMAKING AUTHORITY; AMENDING SECTIONS 2-15-1821, 17-3-240, 17-7-502,
90-6-203, 90-6-204, 90-6-205, 90-6-206, 90-6-207, AND 90-6-1001, MCA; AND
PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."
This proposed legislation
would benefit
HB 823: "AN ACT DIRECTING OIL
AND NATURAL GAS PRODUCTION TAX REVENUE TO THE OIL, GAS, AND COAL NATURAL
RESOURCE ACCOUNT; ALLOCATING FUNDS FROM THE ACCOUNT TO COUNTIES FOR THE
MAINTENANCE OF ROADS AND BRIDGES; CLARIFYING THE USE OF COAL SEVERANCE TAX
FUNDS DEPOSITED IN THE ACCOUNT; AMENDING SECTIONS 15-36-331 AND 90-6-1001, MCA;
AND PROVIDING A RETROACTIVE APPLICABILITY DATE."
This
proposed legislation would provide specific funds the construction, maintenance
and repair of roads and bridges in the oil, gas and coal producing counties. I
provided testimony in support of this proposed legislation.
SJ R 5: “A JOINT RESOLUTION OF THE SENATE AND THE
HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REQUESTING AN INTERIM STUDY TO
IDENTIFY THE ISSUES AND CHALLENGES INVOLVED IN PROVIDING EMERGENCY CARE AND TO
REPORT ON STRATEGIES THAT CAN STRENGTHEN MONTANA'S EMERGENCY MEDICAL SERVICES
SYSTEM.”
This proposed legislation,
in the form of a Senate Joint Resolution, would require that the Legislative
Council be requested to designate an appropriate interim committee, to gather
information from stakeholders and customers of the state’s emergency care
system, including but not limited to local emergency service providers,
emergency medical services systems, hospitals, physicians and other health care
providers, . . . to conduct a statewide assessment of issues that communities
face relating to emergency medical services.
This interim study would be particularly useful to rural areas of
HB 222: "AN ACT PROVIDING FUNDING TO THE
DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION TO CONTRACT WITH AN ENTITY TO
CONDUCT AN ECONOMIC ANALYSIS OF THE VALUE OF IRRIGATED AGRICULTURE IN MONTANA;
REQUIRING A REPORT; PROVIDING AN APPROPRIATION; AND PROVIDING AN EFFECTIVE
DATE."
This bill would
provide $200,000.00 of General Fund money to the Department of Natural Resources
and Conservation for the completion of a statewide economic assessment of the
value of irrigated agriculture to the economy of
HB 756: "AN ACT ELIMINATING
THE REQUIREMENT THAT AN APPLICANT MUST CREATE 10 NEW JOBS IN ORDER TO BE
ELIGIBLE FOR A GRANT UNDER THE PRIMARY SECTOR BUSINESS WORKFORCE TRAINING ACT;
AMENDING SECTION 39-11-202, MCA; AND PROVIDING AN EFFECTIVE DATE."
This
proposed legislation would eliminate the requirement that an applicant must
create at least 10 new jobs in order to be eligible for a grant under the
Primary Sector Workforce Training Act.
In smaller communities in
HB 235: "AN ACT EXPANDING
BUSINESS IMPROVEMENT DISTRICT PURPOSES TO INCLUDE TOURISM, PROMOTION, AND
MARKETING, AND SALES; REVISING OPTIONS FOR ASSESSMENT OF COSTS TO INCLUDE
FLAT-FEE OPTIONS; PROVIDING FOR DISTRICTS COMPOSED OF NONCONTINGUOUS AREAS IF
PROPERTY IS RELATED BY PURPOSE; ALLOWING CLASSIFICATION CRITERIA TO BE USED IN
ASSESSING COSTS; AND AMENDING SECTIONS 7-12-1102, 7-12-1111, 7-12-1121,
7-12-1132, AND 7-12-1133, MCA."
I
monitored this proposed legislation.
HB 6: "AN ACT REVISING AND
IMPLEMENTING THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM; APPROPRIATING MONEY
TO THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FOR GRANTS UNDER THE
RENEWABLE RESOURCE GRANT AND LOAN PROGRAM; PRIORITIZING GRANTS AND AMOUNTS;
ESTABLISHING CONDITIONS FOR GRANTS; PROVIDING FOR A TRANSFER OF FUNDS FROM THE
STATE GENERAL FUND TO THE RENEWABLE RESOURCE STATE SPECIAL REVENUE ACCOUNT;
MAKING PERMANENT REVISIONS TO THE USE OF THE RENEWABLE RESOURCE GRANT AND LOAN
STATE SPECIAL REVENUE ACCOUNT; AMENDING SECTION 85-1-604, MCA; REPEALING
SECTION 11, CHAPTER 307, LAWS OF 2005; AND PROVIDING EFFECTIVE DATES."
This program provides
grants to individuals and businesses for the development of irrigation
projects. Several
HB 830: "AN ACT APPROPRIATING
MONEY FOR CAPITAL PROJECTS AND INFORMATION TECHNOLOGY CAPITAL PROJECTS FOR THE
BIENNIUM ENDING JUNE 30, 2009; PROVIDING FOR OTHER MATTERS RELATING TO THE
APPROPRIATIONS; PROVIDING FOR A TRANSFER OF FUNDS TO THE LONG-RANGE BUILDING
PROGRAM ACCOUNT; PROVIDING FOR A TRANSFER OF FUNDS TO THE FISH, WILDLIFE, AND
PARKS CAPITAL PROJECTS ACCOUNT; PROVIDING FOR A TRANSFER OF FUNDS FROM THE
GENERAL FUND TO THE LONG-RANGE INFORMATION TECHNOLOGY PROGRAM ACCOUNT;
PROVIDING FOR THE DEVELOPMENT AND ACQUISITION OF NEW INFORMATION TECHNOLOGY
SYSTEMS FOR THE DEPARTMENT OF PUBLIC HEALTH AND HUMAN SERVICES, THE DEPARTMENT
OF ADMINISTRATION, AND THE JUDICIAL BRANCH; PROVIDING FOR THE REAPPROPRIATION
OF LONG-RANGE INFORMATION TECHNOLOGY CAPITAL PROJECT FUNDS; REQUIRING APPROVAL
OF PROJECT AND SECURITY PLANS FOR CERTAIN PROJECTS; REVISING CAPITAL PROJECTS
AUTHORIZED FOR THE BIENNIUM ENDING JUNE 30, 2007; AMENDING SECTION 2, CHAPTER
560, LAWS OF 2005; REPEALING SECTION 8, CHAPTER 560, LAWS OF 2005; AND
PROVIDING AN IMMEDIATE EFFECTIVE DATE."
Among
many other expenditures, this proposed legislation
included $1.6 million in Long Range Building Program funds and $400,000.00 in
additional spending authority for the Eastern Agricultural Experiment Station
in