SENATE BILL NO. 268
INTRODUCED BY D. HARGROVE, VICK, BERRY, BOOKOUT-REINICKE, ELLIOTT, GROSFIELD, HALLIGAN, MAHLUM, STAPLETON, STONINGTON, TASH, WANZENRIED, J. WELLS, C. YOUNKIN
AN ACT ALLOWING A NONPROFIT CONVENTION AND VISITORS BUREAU LOCATED IN A RESORT AREA OR RESORT AREA DISTRICT TO RECEIVE A PORTION OF LODGING FACILITY USE TAX FUNDS IN THE SAME MANNER THAT A NONPROFIT CONVENTION AND VISITORS BUREAU LOCATED IN A CITY OR CONSOLIDATED CITY-COUNTY MAY RECEIVE FUNDS; AMENDING SECTIONS 15-65-101, 15-65-121, AND 15-65-122, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-65-101, MCA, is amended to read:
"15-65-101. Definitions. For purposes of this part, the following definitions apply:
(1) "Accommodation charge" means the fee charged by the owner or operator of a facility for use of the facility for lodging, including bath house facilities, but excluding charges for meals, transportation, entertainment, or any other similar charges.
(2) (a) "Campground" means a place, publicly or privately owned, used for public camping where persons may camp, secure tents, or park individual recreational vehicles for camping and sleeping purposes.
(b) The term does not include that portion of a trailer court, trailer park, or mobile home park intended for occupancy by trailers or mobile homes for resident dwelling purposes for periods of 30 consecutive days or more.
(3) "Council" means the tourism advisory council established in 2-15-1816.
(4) (a) "Facility" means a building containing individual sleeping rooms or suites, providing overnight lodging facilities for periods of less than 30 days to the general public for compensation. The term includes a facility represented to the public as a hotel, motel, campground, resort, dormitory, condominium inn, dude ranch, guest ranch, hostel, public lodginghouse, or bed and breakfast facility.
(b) The term does not include any health care facility, as defined in 50-5-101, any facility owned by a corporation organized under Title 35, chapter 2 or 3, that is used primarily by persons under the age of 18 years for camping purposes, any hotel, motel, hostel, public lodginghouse, or bed and breakfast facility whose average daily accommodation charge for single occupancy does not exceed 60% of the amount authorized under 2-18-501 for the actual cost of lodging for travel within the state of Montana, or any other facility that is rented solely on a monthly basis or for a period of 30 days or more.
(5) "Nonprofit convention and visitors bureau" means a nonprofit corporation organized under Montana law and
recognized by a majority of the governing body in the city, or consolidated city-county, resort area, or resort area district in
which the bureau is located.
(6) "Regional nonprofit tourism corporation" means a nonprofit corporation organized under Montana law and recognized by the council as the entity for promoting tourism within one of several regions established by executive order of the governor.
(7) "Resort area" means an area established pursuant to 7-6-1508.
(8) "Resort area district" has the meaning provided in 7-6-1531."
Section 2. Section 15-65-121, MCA, is amended to read:
"15-65-121. (Temporary) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The amount of $400,000 each year must be deposited in the Montana heritage preservation and development account provided for in 22-3-1004. On July 1, 1997, the amount of $45,000 is transferred to the department of commerce for purposes of a grant to the Fort Peck interpretive center. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies or in the Montana heritage preservation and development account is statutorily appropriated, as provided in 17-7-502, and must be transferred to an account in the state special revenue fund to the credit of the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:
(a) 1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;
(b) 2.5% to the university system for the establishment and maintenance of a Montana travel research program;
(c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;
(d) 67.5% to be used directly by the department of commerce; and
(e) (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and
(ii) if 22.5% of the proceeds collected annually within the limits of a city, or consolidated city-county, resort area, or
resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism
corporation in the region where the city, or consolidated city-county, resort area, or resort area district is located, to be
distributed to the nonprofit convention and visitors bureau in that city, or consolidated city-county, resort area, or resort
area district.
(2) If a city, or consolidated city-county, resort area, or resort area district qualifies under this section for funds but fails
to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as
required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in
which the city, or consolidated city-county, resort area, or resort area district is located.
(3) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials. (Terminates July 1, 2001--sec. 23(3), Ch. 469, L. 1997.)
15-65-121. (Effective July 1, 2001) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies is statutorily appropriated, as provided in 17-7-502, and must be transferred to an account in the state special revenue fund to the credit of the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:
(a) 1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;
(b) 2.5% to the university system for the establishment and maintenance of a Montana travel research program;
(c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;
(d) 67.5% to be used directly by the department of commerce; and
(e) (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and
(ii) if 22.5% of the proceeds collected annually within the limits of a city, or consolidated city-county, resort area, or
resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism
corporation in the region where the city, or consolidated city-county, resort area, or resort area district is located, to be
distributed to the nonprofit convention and visitors bureau in that city, or consolidated city-county, resort area, or resort
area district.
(2) If a city, or consolidated city-county, resort area, or resort area district qualifies under this section for funds but fails
to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as
required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in
which the city, or consolidated city-county, resort area, or resort area district is located.
(3) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials."
Section 3. Section 15-65-122, MCA, is amended to read:
"15-65-122. Qualification of nonprofit entities for receipt of funds -- limitation on administrative costs. (1) The
department of revenue shall provide the council with quarterly reports of regional tax proceeds and tax proceeds of cities,
and consolidated city-counties, resort areas, and resort area districts that qualify for disbursement of funds under 15-65-121.
(2) No funds Funds may not be disbursed to a regional nonprofit tourism corporation or nonprofit convention and
visitors bureau until that entity has submitted an annual marketing plan to the council and that plan has been approved by
the council.
(3) A maximum of 20% of the funds received by a regional nonprofit tourism corporation or nonprofit convention and visitors bureau may be used for administrative purposes as defined by the council."
Section 4. Effective date. [This act] is effective July 1, 2001.
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