House Bill No. 391

Introduced By rose, wiseman, peck, bohlinger, walters, hayne, grinde, denny, marshall



A Bill for an Act entitled: An Act implementing the one-stop business licensing pilot project; providing that certain licensee renewal dates be an anniversary date established by rule; granting authority to the board of review to adopt rules governing the use of electronic means of verifying information required for licensure; allowing certain licensees to pay fees by credit card and allowing relevant licensing agencies to discount fees accordingly; designating the department of revenue as the agency responsible for administering the licensing pilot project; and amending sections 16-11-120, 16-11-122, 30-12-203, 30-13-203, 30-13-206, 30-13-210, 30-13-217, 50-50-201, 50-50-203, 50-50-205, 50-50-207, 50-50-214, 80-7-106, 81-9-201, 81-20-201, and 82-15-105, MCA.



STATEMENT OF INTENT

A statement of intent is required for this bill because [section 1] grants rulemaking authority to the board of review established in 30-16-302 for the purpose of implementing a one-stop business licensing pilot project required by the 54th Legislature.



Be it enacted by the Legislature of the State of Montana:



Section 1.  Rulemaking. The board of review established in 30-16-302:

(1) shall adopt rules governing the identification and use of electronic forms of signature to fulfill licensing requirements for licensees included in this part;

(2) may adopt rules to establish the anniversary date for the renewal of licenses issued to licensees included in this part; and

(3) shall consult with the pertinent licensing agency before issuing rules concerning license renewal dates.



Section 2.  Section 16-11-120, MCA, is amended to read:

"16-11-120.  Cigarette licenses. Every wholesaler, subjobber, retailer, or cigarette vendor shall obtain a license from the department before engaging in the business of wholesaler, subjobber, retailer, or cigarette vendor. A separate application and a separate license shall be is required for each place of business owned, controlled, or operated by such the wholesaler, subjobber, retailer, or cigarette vendor within the state of Montana. Application forms shall require must include the type and general description of applicant organizations, names of all known owners, and such other pertinent information as the department may require in regularly promulgated regulations rules. The department shall comply with rules issued by the board of review established in 30-16-302 with respect to the form of electronic verification of information required or acceptable for licensing purposes."



Section 3.  Section 16-11-122, MCA, is amended to read:

"16-11-122.  License fees -- renewal. (1) Each application for a wholesaler's license shall must be accompanied by a fee of $50.

(2)  Each application for a subjobber's license shall must be accompanied by a fee of $50.

(3)  Each application for a retailer's license shall must be accompanied by a fee of $5.

(4)  The fees for the licenses in subsections (2) and (3) may be paid by credit card and may be discounted for payment processing charges paid by the department to a third party.

(5) These licenses shall must be renewed annually on or before the anniversary date established by rule by the board of review established in 30-16-302 and upon payment of the annual fee in the amount set forth above and shall be are effective for 1 year, without proration, and are not transferable."



Section 4.  Section 30-12-203, MCA, is amended to read:

"30-12-203.  Licensing of weighing devices. (1) A person may not knowingly operate or use an unlicensed weighing device in trade or commerce for ascertaining the weight of any commodity.

(2)  A license must be obtained by making application to the department upon blank forms to be provided by the division of weights and measures. Each license must require at least one inspection per year.

(3)  An application must be accompanied by the proper fee as established by this section except that fees may be paid by credit card and may be discounted for payment processing charges paid by the department to a third party.

WEIGHING DEVICES

Capacity Fees

499 pounds or less $ 12.00

500 pounds through 1,999 pounds 20.00

2,000 pounds through 7,999 pounds 40.00

8,000 pounds through 60,000 pounds 100.00

60,001 pounds or more 175.00

(4)  The capacity of a weighing device must be determined by the manufacturer's rated capacity.

(5)  All licenses must be annual and expire on December 31 the anniversary date established by rule by the board of review established in 30-16-302.

(6)  A late renewal fee equal to 50% of the renewal license fee established in subsection (3) must be assessed if the fee is not paid before July 1 the first day of the sixth month of the year in which the license fee is due. A person failing to pay the renewal license fee before July 1 the first day of the sixth month of the year in which the license fee is due forfeits the right to use the weighing device, and it must be taken out of service by the division of weights and measures until the renewal fee and late renewal fee are paid.

(7)  The fees must be deposited to the state special revenue fund of the department for use in the administration and enforcement of this part."



Section 5.  Section 30-13-203, MCA, is amended to read:

"30-13-203.  Application for registration of assumed business name. All persons A person transacting business in this state under an assumed business name shall execute and file with the register with the secretary of state, on forms furnished by the secretary of state or by electronic means established by the board of review established in 30-16-302, an application for registration of the assumed business name, including but not limited to the following information:

(1)  the name and address, including the street name and number, of applicant;

(2)  the complete name of the proposed assumed business name;

(3)  date of first use, in commerce, of the proposed assumed business name;

(4)  description of business transacted under the proposed assumed such name; and

(5)  the name of county or counties in which business is being transacted."



Section 6.  Section 30-13-206, MCA, is amended to read:

"30-13-206.  Term and renewal of assumed business name registration. (1) Registration of an assumed business name is effective for a term of 5 years from the date of registration. Upon application for renewal of registration on forms furnished by the secretary of state or by electronic means established by rule by the board of review established in 30-16-302, the registration may be renewed for another 5-year term.

(2)  Not less than 90 days before the expiration date of registration of an assumed business name, the secretary of state shall notify the applicant of record of the pending expiration by addressing a notice to the last-known address of the applicant.

(3)  (a) Subject to subsection (3)(b), if the applicant or person in whose name an assumed business name is registered fails to file an application for renewal with the secretary of state within a 90-day period prior to the expiration date of the registration, the secretary of state shall cancel the registration.

(b)  If a limited liability partnership fails to file an application for renewal with the secretary of state within a 90-day period prior to the expiration date of the registration, the secretary of state shall again notify the limited liability partnership of the pending expiration and give the limited liability partnership an additional 90 days within which to renew its registration. If the limited liability partnership fails to renew its registration within the second 90-day period, the secretary of state shall cancel the registration and the partnership is no longer a limited liability partnership."



Section 7.  Section 30-13-210, MCA, is amended to read:

"30-13-210.  Filing amendment to registration of assumed business name -- issuance of certificate thereon. (1) One original and one copy of an amendment to the registration of an assumed business name, executed and verified on forms furnished by the secretary of state, shall must be delivered to the secretary of state. The application for amended registration of an assumed business name shall must include but not be is not limited to the following information:

(a)  complete assumed business name prior to adoption of amendment;

(b)  complete new assumed business name, if applicable;

(c)  name and address of the registrant, including street name and number of the business office;

(d)  if the name of any person having an interest in the business with a registered assumed business name is to be changed, the new name of the person having an interest in the business with such the registered assumed business name;

(e)  the name of the county or counties in which the name is being used;

(f)  if there is a change in the identity of the county or counties or addition of a county or counties in which the assumed business name is being used or is to be used, the name(s) of the new county or counties;

(g)  if a person or persons having an interest in a business with a registered assumed name withdraws or dies, a statement of such that fact; and

(h)  a statement that the amended registration of assumed business name supersedes the original registration and all amendments thereto to the original registration.

(2)  If the secretary of state finds that the application for amended registration of the assumed business name complies with this part, he the secretary of state shall, when all fees have been paid as provided in this part:

(a)  endorse on the original and the copy the word "filed" and the month, day, and year of the filing thereof;

(b)  file the original in his the secretary of state's office; and

(c)  issue a certificate of amendment, to which he the secretary of state shall affix the copy.

(3)  The certificate of amendment, together with the copy of the amendment affixed thereto by the secretary of state required in subsection (1), shall must be returned to the registrant.

(4)  The failure of the registrant of an assumed business name to comply with the requirements of this section shall result results in the cancellation by the secretary of state of the registration."



Section 8.  Section 30-13-217, MCA, is amended to read:

"30-13-217.  Fees and charges to be established and collected by secretary of state. (1) The secretary of state shall by administrative rule establish, charge, and collect in accordance with the provisions of this part and commensurate with costs:

(a)  fees for filing documents and issuing certificates; and

(b)  miscellaneous charges.

(2)  The secretary of state shall maintain records sufficient to support the fees and miscellaneous charges established under this section.

(3)  In addition to the fees and charges in subsection (1), the secretary of state shall charge and collect from each limited liability partnership a license fee of:

(a)  $50 at the time of registration under 30-13-203; and

(b)  $50 at the time of each renewal of registration under 30-13-206 through 30-13-208.

(4) Fees and charges established under this section may be paid by credit card and may be discounted for payment processing charges paid by the secretary of state to a third party."



Section 9.  Section 30-16-103, MCA, is amended to read:

"30-16-103.  Definitions. As used in this chapter, the following definitions apply:

(1)  "Board of review" means the body established to provide policy direction to the department of revenue in designing and recommending to the legislature the implementation of a plan for a business registration and licensing system.

(2)  "Department" means the department of commerce established in 2-15-1801.

(3)  (a) "License" means the whole or part of any agency permit, license, certificate, approval, registration, or charter or any form or permission required by law or administrative rule to engage in any retail, wholesale, consumer service, manufacturing, or distributing activity.

(b)  License does not include licenses, permits, or registrations issued under Title 30, chapter 10, parts 1 through 3, Title 33, Title 37, and Title 75, which are excluded from the coverage of this chapter.

(4)  "Person" means an individual, sole proprietorship, partnership, association, cooperative, limited liability company, corporation, nonprofit organization, state or local government agency, or any other organization required to register with the state to do business in Montana and to obtain one or more licenses from the state or any of its agencies.

(5)  "Plan" means the business registration and licensing system document, and the procedures developed by the board of review which is that are under the administrative control of the department of revenue."



Section 10.  Section 30-16-301, MCA, is amended to read:

"30-16-301.  Business registration and licensing plan -- duties administration. (1) Before January 1, 1997, the department shall develop a plan:

(a)  to establish an information service detailing all state licenses that are required in order to engage in business in Montana and the locations for applying for those licenses; and

(b)  for a uniform method by which all state agencies may identify businesses.

(2)  The method developed under subsection (1)(b) must include a phased approach to:

(a)  complete a requirements analysis and specification document, including an overview systems design;

(b)  complete a detailed requirements analysis, including a general systems design;

(c)  establish interagency procedures for effectuating the plan;

(d)  select those licenses that will be included in the initial implementation of the plan and the date and manner in which the licenses will be integrated into the plan; and

(e)  complete a cost-benefit analysis of the final implementation of the plan.

(3)  The department shall  on January 2, 1997, recommend to the legislature any statutory or budgetary changes for implementing the plan.

(4)  Each state agency shall review its licenses and recommend to the legislature on January 2, 1997, those licenses that should be eliminated or consolidated and justify those that should be retained.

(5)(1) The provisions of [section 1], 16-11-120, 16-11-122, 30-12-203, 30-13-203, 30-13-206, 30-13-210, 30-13-217, 50-50-201, 50-50-203, 50-50-205, 50-50-207, 50-50-214, 80-7-106, 81-9-201, 81-20-201, and 82-15-105 constitute a means of implementing a preliminary plan for streamlined registration and licensing procedures. [Section 1], 16-11-120, 16-11-122, 30-12-203, 30-13-203, 30-13-206, 30-13-210, 30-13-217, 50-50-201, 50-50-203, 50-50-205, 50-50-207, 50-50-214, 80-7-106, 81-9-201, 81-20-201, and 82-15-105 provide that certain licenses selected by the board of review must allow for:

(a) an anniversary date for license renewal that is set by the board of review;

(b) an electronic means of verifying the information required in the license application; and

(c) credit card discounts in relation to fees required for licensure.

(2) The department of revenue shall designate a deputy director in charge of administering the plan whose duties include those of executive secretary of the board of review."



Section 11.  Section 30-16-302, MCA, is amended to read:

"30-16-302.  Board of review. (1) There is a board of review. The board of review's duty is to provide policy direction to the department of revenue in the establishment and operation of the system. The board of review includes the directors of the departments of agriculture, commerce, environmental quality, revenue, justice, and public health and human services, the secretary of state, the director of the office of budget and program planning, the commissioner of labor and industry, the president of the senate or a designee, and the speaker of the house or a designee.

(2)  The governor shall appoint a presiding officer from among the members of the board of review.

(3)  The board of review shall meet at the call of the presiding officer at least once each calendar quarter to:

(a)  establish interagency policy and guidelines for the plan;

(b)  review the findings, status, and problems of system operations and recommend courses of action;

(c)  receive reports from industry and agency task forces that the board of review may request to inquire into particular issues; and

(d)  recommend, in questionable cases, whether a particular license falls within the scope of this chapter.

(4)  In developing a recommended plan for streamlined registration and licensing procedures, the board of review shall consider the experience gained from the consolidated employer registration process implemented by the department of revenue and the department of labor and industry."



Section 12.  Section 50-50-201, MCA, is amended to read:

"50-50-201.  License required. (1) Except as provided in 50-50-202, a person operating an establishment shall procure an annual license from the department.

(2)  A separate license is required for each establishment, but if more than one type of establishment is operated on the same premises and under the same management, only one license is required.

(3)  Only one license is required for a person owning and operating one or more vending machines.

(4)  Before a license may be issued by the department it must be validated by the local health officer, or if there is no local health officer the sanitarian, in the county where the establishment is located A license issued by the department is not valid unless signed in accordance with 50-50-214."



Section 13.  Section 50-50-203, MCA, is amended to read:

"50-50-203.  Application for license. An application for a license is made to the department on forms and contains information required by the department or is an application for a license that is in compliance with rules established by the board of review established in 30-16-302."



Section 14.  Section 50-50-205, MCA, is amended to read:

"50-50-205.  License fee -- late fee -- preemption of local authority -- exception. (1) For each license issued, the department shall collect a fee of $60. It shall deposit 85% of the fees collected under this section into the local board inspection fund account created in 50-2-108, 7.5% of the fees into the general fund, and 7.5% of the fees into the account provided for in 50-50-216.

(2)  In addition to the license fee required under subsection (1), the department shall collect a late fee from any licensee who has failed to submit a license renewal fee prior to the expiration of his the licensee's current license and who operates an establishment governed by this part in the next licensing year. The late fee is $25 and must be deposited in the account provided for in 50-50-216.

(3)  A county or other local government may not impose an inspection fee or charge in addition to the fee provided for in subsection (1) unless a violation of this chapter or rule persists and is not corrected after two visits to the establishment.

(4) The fees in subsections (1) and (2) may be paid by credit card and may be discounted for payment processing charges paid by the department to a third party. However, the discounting of license fees may not reduce the fees paid into the local board inspection fund account established in 50-2-108."



Section 15.  Section 50-50-207, MCA, is amended to read:

"50-50-207.  Expiration date of license. (1) Except as provided in subsection (2), Licenses licenses expire on December 31 following the date of issue unless canceled for cause.

(2) License renewals provided for in 16-11-122, 30-12-203, 50-50-207, 80-7-106, and 82-15-105 expire on the anniversary date established by rule by the board of review established in 30-16-302."



Section 16.  Section 50-50-214, MCA, is amended to read:

"50-50-214.  Notification of and validation by local health officer. (1) A license issued by the department under this chapter is not valid until signed by the local health officer in the county where the establishment is located or until the license is otherwise validated by the local health officer and is in accordance with rules established by the board of review established in 30-16-302.

(2)  The local health officer shall, within 15 days after the department has notified the local health officer of its decision to issue a license under this chapter, make a final decision on whether the license will be validated.

(3)  Failure of the local health officer to validate the license within 15 days after its receipt is a refusal."



Section 17.  Section 80-7-106, MCA, is amended to read:

"80-7-106.  License required -- application and payment of license fee. (1) A firm engaging in the business of selling or distributing nursery stock in this state shall obtain a license for each nursery from the department.

(2)  The license must be in the name of the firm seeking the license and expires on December 31 the anniversary date established by rule by the board of review established in 30-16-302 following the date of issue. The applicant shall provide information that the department finds necessary to carry out the provisions and purposes of this chapter and in the form determined by rule by the board of review established in 30-16-302.

(3)  (a) A nursery that earns less than $1,000 in gross annual sales of nursery stock and that submits a notarized affidavit to that effect to the department is exempt from licensing.

(b)  A nursery that earns $1,000 but less than $3,000 in gross annual sales of nursery stock and that submits a notarized affidavit to that effect to the department shall pay a license fee of $30.

(c)  A nursery that earns $3,000 or more in gross annual sales of nursery stock shall pay a license fee of $95.

(4)  A new applicant or a firm failing to renew a license by January 1 of each year on or before the annual anniversary date provided for in subsection (2) shall pay an additional nonrefundable application fee of $25 for each license.

(5)  An out-of-state firm that imports nursery stock into Montana for resale by a licensed Montana nursery is not required to obtain a license if the firm is licensed in the state of origin of the nursery stock and if that state extends a similar exemption to Montana firms.

(6)  If the department determines that the revenue from the license fee is inadequate to accomplish the purposes of this chapter, the department may by rule increase the fee.

(7) The fees required by the provisions of this section may be paid by credit card and may be discounted for payment processing charges paid by the department to a third party."



Section 18.  Section 81-9-201, MCA, is amended to read:

"81-9-201.  Meat establishment license -- fees and renewals. (1) It is unlawful for a person, firm, or corporation to engage in the business of slaughtering livestock or poultry or processing, storing, or wholesaling the meat products of either without having a license issued by the department. The department shall establish an annual fee for a license issued under this section, to be paid into the state special revenue fund for the use of the department.

(2)  All licenses expire each year on December 31 of the year the anniversary date established by rule by the board of review established in 30-16-302 in which they are issued and shall must be renewed by the department on request of the licensee. However, when the department finds that the establishment for which the license is issued is not conducted in accordance with the rules and orders of the board made under 81-2-102, the department shall revoke the license and may not renew it until the establishment is in a sanitary condition in accordance with department rules.

(3)  A person, firm, or corporation violating this section or any rule or order promulgated by authority of 81-2-102 is guilty of a misdemeanor and upon conviction shall be fined not to exceed more than $500."



Section 19.  Section 81-20-201, MCA, is amended to read:

"81-20-201.  Egg dealer's and egg grader's licenses -- fee. (1) No A person may not buy, sell, or deal in eggs without first obtaining a license from the department of livestock for each establishment at which business is conducted. A licensee shall send to the department the reports which that are requested by the department. The department shall establish a license fee for dealers buying eggs for sale at retail and for dealers buying eggs for resale at wholesale. All licenses shall must be posted in a conspicuous place in each place of business. Licenses expire March 31 each year on the anniversary date established by rule by the board of review established in 30-16-302 each year after the date of issuance.

(2)  A person buying, selling, or dealing in eggs, a major portion of which are produced by his the person's own fowl, or in amounts less than an average of 25 cases per month, is exempt from the requirements of this section.

(3)  Wholesale and retail dealers who handle more than 25 cases of eggs per month supplying eggs to consumers must, when selling candled eggs, sell only eggs candled by or under the supervision of experienced and licensed graders. The department shall establish a fee for a grader's license. All candlers and graders must pass an examination required by the department. The license expires March 31 each year on the anniversary date established by rule by the board of review established in 30-16-302 each year after the date of issuance."



Section 20.  Section 82-15-105, MCA, is amended to read:

"82-15-105.  Licenses and fees -- status of license on transfer of ownership. (1) A petroleum dealer or liquefied petroleum dealer may not do business in this state until licensed by the department. The license must be obtained by the dealer by making application to the department upon blank forms provided by the department. A dealer who has not been issued a license and who is found selling, offering for sale, delivering, or distributing petroleum products shall upon conviction be punished as provided by this part.

(2)  The department shall adopt rules establishing license fees based upon the measuring devices used by the dealer. The fees may be paid by credit card and may be discounted for payment processing charges paid by the department to a third party. The fees must be deposited in the state special revenue fund of the department for use in administrating and enforcing this part.

(3)  All licenses are annual and expire on December 31 the anniversary date established by rule by the board of review established in 30-16-302 of each year. There is an additional charge of 50% on all license fees that are not paid before March 1 of each year in which the vehicle tank, meter, or measuring device is in use. If the fee is not paid, the equipment must be sealed and removed from service by the department. It is unlawful for anyone to use a device removed from service or to break the seal until all fees have been paid.

(4)  If ownership of a measuring device changes and the device:

(a)  remains at the same location, the license transfers to the new owner and remains in effect until December 31 of that year;

(b)  is moved to a new location, the license is void, and the new owner shall:

(i)  apply for a new license that will expire on December 31 the anniversary date of that year, as provided in subsection (3); and

(ii) pay the applicable fees."



Section 21.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 30, chapter 16, part 1, and the provisions of Title 30, chapter 16, part 1, apply to [section 1].



Section 22.  Coordination instruction. If Senate Bill No. 61 and [this act] are both passed and approved, then the language in 50-50-207 must read as follows:

"50-50-207.   Expiration date of license. (1) Except as provided in subsections (2) and (3), each Licenses expire license expires on December 31 following the date of issue unless canceled for cause.

(2) Except as provided in subsections (1) and (3), the department may amend or issue licenses to provide for staggered license expiration dates. The department may provide for initial license terms of greater than 12 months but not more than 23 months in adopting staggered license expiration dates, and the license fee must be prorated accordingly. Upon expiration of a license that has been amended or issued to provide a term of greater than 12 months and subsequent payment of the required license fee, the license must be renewed for a period of 12 months commencing on the day following the expiration date of the amended or issued license.

(3) License renewals provided for in 16-11-122, 30-12-203, 50-50-207, 80-7-106, 81-9-201, and 82-15-105 expire on the anniversary date established by rule by the board of review established in 30-16-302."

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