Helena, Montana 59601

Phone/Fax 406-443-2370

January 16, 2007

LOBBYIST ACTIVITY REPORT

2007 LEGISLATIVE SESSION

WEEK TWO

(January 7 – January 13, 2007)

During Week Two of the 2007 Legislative Session, I provided testimony on a portion of the Montana Department of Commerce’s budget as outlined in HB 2 (“AN ACT APPROPRIATING MONEY TO VARIOUS STATE AGENCIES FOR THE BIENNIUM ENDING JUNE 30, 2009 . . .”); and, HB 36 (“AN ACT REPEALING THE TERMINATION DATE FOR INCREASING THE LIMIT TO $3 MILLION FOR A LOAN TO A WATER USERS' ASSOCIATION OR DITCH COMPANY FROM THE RENEWABLE RESOURCE GRANT AND LOAN PROGRAM STATE SPECIAL REVENUE ACCOUNT OR THE RENEWABLE RESOURCE LOAN PROCEEDS ACCOUNT . . .")

HB 2: My testimony on the Department of Commerce’s budget as outlined in HB 2 supported increasing the amount funding to the Montana Coal Board from approximately $1.7 million for the 2007 Biennium (July 1, 2005 through June 30, 2007) to approximately $2.0 million for the 2009 Biennium (July 1, 2007 through June 30, 2009). The Coal Board Grants are used to offset impacts to communities that are related to coal mining and coal development. The increase in the availability of approximately $300,000 is due to additional coal production in Montana. Funding for the Coal Board is generated from revenues from the Coal Severance Tax.

I also provided testimony is support of the Department of Commerce’s proposal to reinstate the Community Technical Assistance Program that was eliminated by the 2003 Legislature. Through the Community Technical Assistance Program, the Department of Commerce provides technical and legal assistance to cities, towns and counties for their planning efforts. This program is especially important to those cities, towns and counties that do not have their own full time planning staffs. The cost of this program IS estimated to be approximately $166,000.00 per year.

HB 36: I provided testimony in support of HB 36. The purpose of this bill was to extend the termination date of the authorization of a limit of $3 million for loans to water users’ associations or ditch companies from the Renewable Resource Grant and Loan Program from June 30, 2007 until June 30, 2011. Specific program requirements must be met before an applicant is eligible for a loan. In the 2003 Legislature, the loan amount was increased from $300,000 to $3 million with a termination date of June 30, 2007. The loan amount was increased to more accurately reflect the actual cost of completing these types of projects. While this loan program has never been used, it is an important tool that would be available to water users’ associations or ditch companies if the need arises. This program is administered by the Department of Natural Resources and Conservation, Conservation and Resource Development Division.

Other activity for the week included talking to legislators, legislative staff and agency staff to understand and clarify issues relating to the proposed legislation.