Helena, Montana 59601

Phone/Fax 406-443-2370

February 11, 2007

LOBBYIST ACTIVITY REPORT

2007 LEGISLATIVE SESSION

WEEK SIX

(February 4, 2007 – February 10, 2007)

During Week Six of the 2007 Legislative Session, provided testimony on the following bills:

HB 2: “AN ACT APPROPRIATING MONEY TO VARIOUS STATE AGENCIES FOR THE BIENNIUM ENDING, JUNE 30, 2009; AND PROVIDING AND EFFECTIVE DATE.” This legislative hearing was on the Department of Agriculture’s budget for the 2009 Biennium. I provided testimony in support of the Department of Agriculture’s budget. The programs that I specifically identified are the Growth Through Agriculture Program; an increase in the Noxious Weed Trust Fund in the amount of $5 million from the General Fund; and the overall budget for the continuation of their proposed budget and staffing levels. A $5 million increase in the Noxious Weed Trust Fund would bring the total amount of the Fund to $10 million. Only the interest on these funds can be spent for noxious week control. Therefore, if the Trust Fund interest income in 5% per year, approximately $500,000.00 annually would be available for weed control through the Department of Agriculture.

HB 269: "AN ACT REVISING LAWS RELATING TO WEEDS; REMOVING THE REQUIREMENT THAT AN OWNER SELLING PROPERTY PROVIDE NOTICE THAT THERE IS THE POTENTIAL EXISTENCE OF NOXIOUS WEEDS; PROVIDING THAT A COUNTY WEED BOARD MAY ESTABLISH EMBARGOES; CLARIFYING STATUTES REGARDING THE CREATION OF A NOXIOUS WEED FUND IN EACH COUNTY; REMOVING THE REQUIREMENT THAT AN INTEGRATED NOXIOUS WEED MANAGEMENT PLAN WITH STATE AGENCIES BE FOR 6 YEARS; REMOVING THE REDUNDANT STATUTE REGARDING RESPONSIBILITY FOR ASSESSMENTS AND TAXES FOR THE WEED DISTRICT; PROVIDING A TRANSFER OF FUNDS; AMENDING SECTIONS 7-22-2116, 7-22-2126, 7-22-2142, AND 7-22-2151, MCA; AND REPEALING SECTIONS 7-22-2149 AND 77-6-114, MCA; AND PROVIDING EFFECTIVE DATES." This proposed legislation provided for some clarifications to eliminate redundancies in the above outlined sections of the statute. In addition, an amendment was offered to this proposed legislation to include the $5 million increase of General Funds to the Noxious Week Trust Fund. An amendment was offer to this legislation because it was determined that a General Fund Transfer could not be authorized in HB 2. The authorization for the General Fund Transfer needed to be included in separate legislation. I provided testimony in support of this proposed legislation.

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.

HB 447: "AN ACT APPROPRIATING GENERAL FUND MONEY TO THE DEPARTMENT OF COMMERCE TO BE USED FOR GRANTS TO ASSIST COUNTIES IN INFRASTRUCTURE DEVELOPMENT; AND PROVIDING AN EFFECTIVE DATE." This proposed legislation would appropriate a minimum of $250,000.00 to each county, and an additional amount based on approximately $16.00 for each resident in the county, as determined by the 2000 federal census or the 2005 federal census estimates, whichever is greater, for infrastructure development. The source of these funds would be General Funds. If these funds become available, they could be used to repair/replace failing infrastructures in counties throughout the state. This would also provide for additional jobs and economic development opportunities. I provided testimony in support of this proposed legislation.

HB 512: "AN ACT APPROPRIATING GENERAL FUND MONEY TO THE DEPARTMENT OF COMMERCE FOR FINANCIAL ASSISTANCE TO LOCAL GOVERNMENT INFRASTRUCTURE PROJECTS THROUGH THE TREASURE STATE ENDOWMENT PROGRAM; AUTHORIZING GRANTS FROM THE TREASURE STATE ENDOWMENT STATE SPECIAL REVENUE ACCOUNT; PLACING CONDITIONS UPON GRANTS AND FUNDS; AND PROVIDING AN EFFECTIVE DATE." This proposed legislation would appropriate approximately $15.7 million of General Funds to finance the remainder the infrastructure grant applications through the Treasure State Endowment Program (TSEP) that are not included in the initial funding in HB 11 (Treasure State Endowment Appropriations) through the Long-range Planning Committee. The Richland County area does not have any requests for TSEP funding before the 2007 Legislature. I monitored this proposed legislation.

HB 499: "AN ACT AUTHORIZING THE CREATION OF TECHNOLOGY DISTRICTS FOR A BUSINESS THAT IS MONTANA-BASED AND FOR WHICH AT LEAST 50 PERCENT OF ITS SALES ARE TO CUSTOMERS WHO ARE ALSO MONTANA-BASED BUT WHO WOULD HAVE OTHERWISE PURCHASED THE PRODUCT, PROCESS, OR SERVICE FROM A BUSINESS OR ORGANIZATION BASED OUTSIDE MONTANA; AND AMENDING SECTION 7-15-4295, MCA."

I monitored this proposed legislation.

SB 321: "AN ACT PROVIDING FOR THE CREATION AND FUNCTIONS OF BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS." This proposed legislation is quite complicated and, would, among other things, possibly allow the State of Montana to invest in business and industrial development corporations. The Senate Committee on Business, Labor and Economic Affairs had numerous questions about how this program would work, and if it is really a program that Montana would want to initiate and participate in. I monitored this proposed legislation.

HB 371: "AN ACT PROVIDING THE MONTANA MANUFACTURING EXTENSION CENTER AT MONTANA STATE UNIVERSITY-BOZEMAN WITH APPROPRIATIONS FOR A DEMONSTRATION CONSTRUCTION PROJECT REGARDING ECONOMIC DEVELOPMENT CLUSTERING AND FOR AN EXTENSION OF COVERAGE AND APPLICATION OF THE FEDERALLY FUNDED WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT (WIRED) PROPOSAL; AND PROVIDING AN EFFECTIVE DATE." This proposed legislation would appropriate $1.0 million from the General Fund to construct a “demonstration construction project regarding economic development clustering . . .” and; $500,000 for an extension of the coverage and application of the federally funded workforce innovation in regional economic development (WIRED). I monitored this proposed legislation. (In simpler terms, this means that a yet to be selected community in Montana would get a $1milion from the State General Fund to construct/renovate a building that would house all of the economic development organizations/programs in the specific area, i.e. “economic development clustering.” I monitored this proposed legislation.