AMESTOY CONSULTING, LLC
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2007
LEGISLATIVE SESSION
WEEK
FOURTEEN
(April 1,
2007 – April 7, 2007)
During Week Fourteen of the 2007 Legislative Session,
I followed the proposed legislation listed below:
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
SB 42: "AN ACT REPEALING THE TERMINATION DATE FOR
FUNDING OF THE COOPERATIVE DEVELOPMENT CENTER, THE GROWTH THROUGH AGRICULTURE
PROGRAM, THE RESEARCH AND COMMERCIALIZATION PROGRAM, THE SMALL BUSINESS
DEVELOPMENT CENTER, THE SMALL BUSINESS INNOVATIVE RESEARCH PROGRAM, THE
CERTIFIED REGIONAL DEVELOPMENT CORPORATIONS, THE MONTANA MANUFACTURING
EXTENSION CENTER AT MONTANA STATE UNIVERSITY-BOZEMAN, AND THE EXPORT TRADE
ENHANCEMENT PROGRAM; RETAINING THE STATUTORY APPROPRIATION FOR ECONOMIC DEVELOPMENT
PROGRAMS; AMENDING SECTION 10, CHAPTER 10, SPECIAL LAWS OF MAY 2000, AND
SECTION 3, CHAPTER 481, LAWS OF 2003; AND REPEALING SECTION 6, CHAPTER 481,
LAWS OF 2003."
The purpose of this proposed
legislation is to eliminate the termination date for the programs outlined in
the title of the bill. These programs
have proven to be very valuable tools for economic development in
HB 553: "AN ACT INCREASING THE COAL SEVERANCE TAX
ALLOCATION TO THE OIL, GAS, AND COAL NATURAL RESOURCE ACCOUNT; AMENDING SECTION
15-35-108, MCA; AND PROVIDING AN EFFECTIVE DATE."
This proposed legislation would increase the funding
to the Oil, Gas, and Coal Natural Resource Account from 2.9% to 19.0%. These funds originate from the Coal Severance
Tax and are to be used to offset coal mining and coal development related
impacts to the coal impacted counties.
This would increase the amount of funding available for grants from
approximately $1.6 million per year to $7.5 million per year. These funds are made available through grants
through the Coal Board. The difference
between the proposed 19.0% and the existing rate of 2.9%, 16.1%, is now
allocated to the General Fund. Please
note that 50% of the taxes collected by the Coal Severance Tax are allocated to
the Coal Tax Trust Fund. The other 50%
are allocated to other accounts/programs.
The Oil, Gas, and Coal Natural Resource Account is one of those
accounts. Other accounts are: the
Long-Range Building Program; basic library services and the Growth Through
Agriculture Program; parks acquisition or management; renewable resource loan
debt service fund; and the protection of works of art in the capitol and for
other cultural or aesthetic projects. I provided testimony in support of this
proposed legislation.
SB 140: "AN ACT REVISING SMALL BUSINESS HEALTH
INSURANCE POOL LAWS; ELIMINATING THE ELIGIBILITY OF QUALIFIED ASSOCIATION
HEALTH PLANS FOR PREMIUM ASSISTANCE AND PREMIUM INCENTIVE PAYMENTS; CHANGING
THE GROUP SIZE LIMITATIONS FOR SMALL EMPLOYERS POTENTIALLY ELIGIBLE FOR PREMIUM
INCENTIVE AND PREMIUM ASSISTANCE PAYMENTS; AUTHORIZING THE BOARD OF DIRECTORS
OF THE SMALL BUSINESS HEALTH INSURANCE POOL TO ACCEPT CERTAIN SOLE
PROPRIETORSHIPS THAT HAVE NOT BEEN REGISTERED BY THE COMMISSIONER OF INSURANCE;
AUTHORIZING THE BOARD TO DESIGN, IMPLEMENT, AND ALLOCATE AVAILABLE FUNDING FOR
A WELLNESS BENEFIT FOR ELIGIBLE EMPLOYEES AND DEPENDENTS COVERED UNDER
PURCHASING POOL COVERAGE; DEDICATING SPECIFIC APPROPRIATION FUNDS; AMENDING
SECTIONS 33-22-1815, 33-22-1816, 33-22-2001, 33-22-2002, 33-22-2004,
33-22-2005, 33-22-2006, 33-22-2007, AND 33-22-2008, MCA; AND PROVIDING AN
IMMEDIATE EFFECTIVE DATE."
This proposed legislation would
expand the eligibility for refundable income or corporation tax credit for
providing health insurance for small businesses with 3 to 9 employees and sole
proprietors. I testified in support of
this proposed legislation.
SB 549: "AN ACT REVISING THE METHOD FOR CLASSIFYING LAND
AS AGRICULTURAL FOR PROPERTY TAX PURPOSES; REQUIRING A MINIMUM DOLLAR AMOUNT OF
GROSS INCOME FROM AGRICULTURAL PRODUCTION TO QUALIFY AS CLASS THREE
AGRICULTURAL LAND; PROVIDING THAT THE MINIMUM DOLLAR AMOUNT FOR GRAZING LAND BE
DETERMINED BY AN ANIMAL UNIT MONTH COMPUTATION DETERMINED BY MONTANA STATE
UNIVERSITY-BOZEMAN; AMENDING SECTION 15-7-202, MCA; AND PROVIDING AN IMMEDIATE
EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE."
The purpose of this proposed
legislation is self-explanatory. I monitored this proposed legislation.
HB 304: "AN ACT CREATING THE WATER POLICY INTERIM
COMMITTEE; PROVIDING FOR RESEARCH AND STUDY ON WATER-RELATED ISSUES FOR CERTAIN
AGENCIES; REQUIRING THAT CERTAIN WATER RIGHT REPORTS AND UPDATES BE PROVIDED TO
THE WATER POLICY INTERIM COMMITTEE; PROVIDING AN APPROPRIATION; AND PROVIDING
AN IMMEDIATE EFFECTIVE DATE AND A TERMINATION DATE."
This proposed legislation creates a Water Policy
Interim Committee. The Water Policy Interim Committee has administrative rule
review, draft legislation review, program evaluation, and monitoring functions
on water-related issues for the Department of Environmental Quality, the
Department of Fish, Wildlife, and Parks, the Department of Natural Resources
and Conservation, and the entities attached to the departments for
administrative purposes.
The Water Policy Interim Committee is subject to the
provisions of 5-5-211 and the Committee members appointed must be selected from
the following standing committees:
(a)
Senate Natural Resources and Energy;
(b)
House Natural Resources;
(c)
Senate Agriculture, Livestock, and Irrigation;
(d)
House Agriculture;
(c)
Senate Local Government; and
(d)
House Local Government.
(2)
The Water Policy Interim Committee shall conduct a detailed analysis and study
of issues related to water quantity, water quality, and water use in Montana.
The study must include the following issues at a minimum:
(a)
Surface water and ground water in closed basins and mitigation, augmentation,
or aquifer recharge, including:
(i)
Review and summary of current
(ii)
Analysis of other states' laws and rules related to mitigation, augmentation,
or aquifer recharge and the other states' experiences with applying and using
mitigation, augmentation, and aquifer recharge;
(iii)
Comparison of mitigation, augmentation, and aquifer recharge options and
alternatives for applying the concepts in
(iv)
Analysis and determination of water quality testing requirements to ensure that
the use of mitigation, augmentation, or aquifer recharge does not adversely
affect ground water quality;
(v)
Analysis of data developed to determine the type and amount of research, data,
and analysis necessary to develop a scientifically defensible hydrogeologic
assessment to be used in making informed decisions with regard to mitigation,
augmentation, or aquifer recharge activity in Montana;
(vi)
Appropriate monitoring requirements to determine the effectiveness of
mitigation, augmentation, or aquifer recharge plans; and
(vii)
Other issues related to mitigation, augmentation, or aquifer recharge in
Montana to facilitate continued economic development and growth while providing
reasonable protections to senior appropriators and water quality of surface and
ground water resources;
(b)
Methods for the management of water, particularly in closed basins, to ensure
compliance with closed basin law, including:
(i)
Artificial recharge of ground water, including but not limited to alternatives
such as aquifer storage and recovery;
(ii)
Identifying research necessary, if any, to determine alternatives and options
for conducting water management through artificial recharge of ground water;
and
(iii)
Conducting a water quality analysis associated with storage or introduction of
surface water to ground water resources;
(c)
Determining an appropriate, accurate, and time- efficient process for
coordinating water quality requirements with the water appropriations process
by:
(i)
Determining how the department of environmental quality and the department of
natural resources and conservation are issuing permits that affect ground water
or surface water quality and whether or not the water appropriation process and
the water quality process are coordinated;
(ii)
Ensuring that a detailed process is outlined that provides potential applicants
with a clear process that must be followed to ensure that prior appropriators
and water quality in both surface water and ground water are protected while
allowing development in Montana; and
(iii)
Identifying the extent to which cumulative impacts are analyzed from a water
quantity and a water quality perspective and whether or not the two findings
are assessed jointly and determining the appropriate level of coordination;
(d)
Wells that are exempt from the permitting process pursuant to 85-2-306,
including:
(i)
A detailed reporting of the number of exempt wells currently in Montana and an
estimate of the number of exempt wells expected to be developed by 2020;
(ii)
A determination and summary of the types of beneficial uses to which water from
exempt wells is applied;
(iii)
A determination of the hydrogeologic analysis necessary to determine
consumptive use on a per-acre or fraction of an acre basis and on a per-use
basis;
(iv)
An analysis of the amount of water reasonably necessary for the various
beneficial uses and a comparison of this reasonable use standard with current
statutory limits, including volume, flow rate, and other criteria that the
committee determines are necessary to provide for accurate and adequate
measurement of water use through exempt wells;
(v)
Options and alternatives for enforcing statutory limitations regarding exempt
well usage; and
(vi)
A determination of the necessity and reasons for providing a process that is
exempt from the permitting process;
(e)
An analysis of water marketing and water reallocation options available in
(i)
Leasing water rights, water banking, water trading, and water sales;
(ii)
The lease-to-sale ratio of water rights in
(iii)
The number of market purchases that have been completed in
(iv)
The purposes for which water trades or sales have taken place;
(v)
The feasibility of creating and operating a water bank in
(vi)
The administrative procedures and costs that would be necessary to establish
and operate water bank in
(3)
The committee shall gather appropriate information that the committee
determines is necessary to make sound and well-reasoned policy decisions to
guide the management and use of
(a)
Identifying gaps in data necessary to determine appropriate locations to
conduct artificial recharge of ground water; and
(b)
Presenting long-term goals and policy proposals for water management related to
ground water resources.
(4)
The committee shall prepare a report to submit to the 61st legislature that
provides clear policy direction and necessary legislation to guide
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