HOUSE BILL NO. 166

INTRODUCED BY KASTEN B

BY REQUEST OF THE DEPARTMENT OF REVENUE

A BILL FOR AN ACT ENTITLED: "AN ACT UNIFYING AND STANDARDIZING THE COLLECTION OF TAXES AND OTHER DEBTS COLLECTED BY THE DEPARTMENT OF REVENUE; AUTHORIZING THE DEPARTMENT OF REVENUE TO SUSPEND OCCUPATION OR BUSINESS LICENSES FOR THE FAILURE TO PAY STATE TAXES OR FILE STATE TAX RETURNS; AUTHORIZING THE DEPARTMENT OF REVENUE TO COLLECT DEBTS OWED TO THE STATE OF MONTANA BY FILING WARRANTS FOR DISTRAINT; PROVIDING THAT A WARRANT FOR DISTRAINT MAY BE USED FOR MONEY OWED THE STATE; PROVIDING THAT WARRANTS FOR DISTRAINT ARE TO BE FILED IN THE FIRST JUDICIAL DISTRICT; PROVIDING THAT A NOTICE OF LEVY HAS THE SAME FORCE AND EFFECT AS A WRIT OF EXECUTION; PROVIDING THAT A NOTICE OF LEVY REMAINS IN EFFECT FOR 10 YEARS UNLESS EARLIER SATISFIED; INCREASING THE TIME THAT JUDGMENT LIENS CONTINUE FROM 6 YEARS TO 10 YEARS; AND AMENDING SECTIONS 15-1-211, 15-1-701, 15-1-702, 15-1-703, 15-1-704, 15-1-705, 15-1-706, 15-1-707, 15-1-708, 25-9-301, 25-9-302, 25-13-102, 39-51-1304, AND 61-6-123, MCA."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Definitions. In [sections 1 through 8], the following definitions apply:

(1) "Agency" includes:

(a) all state offices, departments, divisions, boards, commissions, councils, committees, institutions, university units, and other entities, instrumentalities, or political subdivisions of this state or any other state government;

(b) with respect to delinquent taxes that the department is requested to collect, state and local entities whose personal property taxes are collected by the county treasurer; and

(c) the United States internal revenue service.

(2) "Delinquent" means overdue or in default in the payment of any state tax.

(3) "License" means a license, certificate, registration, permit, or authorization issued by an agency of the state of Montana granting a person a right or privilege to engage in a business, occupation, or profession or any other privilege that is subject to suspension, revocation, forfeiture, or termination by the licensing authority prior to the date of expiration of the license.

(4) "Licensing authority" means any department, division, board, agency, or instrumentality of this state that issues a license.

(5) "Order suspending a license" means an order issued by the department to suspend a license. The order must contain the name of the taxpayer, the type of license, and the social security number of the taxpayer.

(6) "Payment plan" includes but is not limited to a plan approved by the department that provides sufficient security by the taxpayer to guarantee the payment of the state tax owed to the state and that incorporates a voluntary or involuntary assignment of wages or other similar plan for the periodic payment of the outstanding state tax.

NEW SECTION. Section 2. Notice of intent to suspend license. (1) The department may issue a notice of intent to suspend a license upon the determination of the existence of a delinquency in the payment of any state tax or for the failure to file any state tax return, report, or other statement.

(2) The notice must:

(a) be served upon the delinquent taxpayer personally or by certified mail with return receipt requested; and

(b) state that the taxpayer's license will be suspended 60 days after service unless within that time the taxpayer:

(i) pays the entire amount of tax plus any penalty and interest stated in the notice or files the delinquent return statement or statement as specified in the notice;

(ii) enters into a payment plan approved by the department; or

(iii) requests a review and the department determines that suspension of a license is not appropriate.

NEW SECTION. Section 3. Review -- order suspending license. (1) To show why suspension of a license would not be appropriate, the taxpayer shall request a review pursuant to the provisions of 15-1-211. The request must be made within 30 days of the date of service of the notice of the intent to suspend the license.

(2) The department shall conduct the review pursuant to the provisions of 15-1-211. The department shall stay suspension of the license pending the outcome of the review.

(3) The only issues that may be determined by the department during the review procedure under this section are:

(a) the amount of the delinquent state tax;

(b) whether the state tax is delinquent;

(c) whether the taxpayer has failed to file a required return, report, or obligation.

(4) If the taxpayer fails to respond to a notice of intent to suspend a license, fails to timely request a review, or fails to appear or participate in the review procedure, the taxpayer's defenses, objections, or request for a payment plan must be considered to be without merit and the department shall enter a final decision and order accordingly.

(5) If the department determines that the state tax is delinquent or that the taxpayer has failed to file a return, report, or other statement, the department shall issue an order suspending the taxpayer's license and ordering the taxpayer to refrain from engaging in the licensed activity. The department shall send a copy of the order suspending a license to the taxpayer and shall notify the licensing authority in writing of the suspension. Notification to the licensing authority is not required if the department has previously suspended the license of the taxpayer and the suspension is still in effect.

(6) The determinations of the department under this section are a final agency decision and are subject to review by the state tax appeal board. An order to suspend the license must be stayed during the time of appeal.

(7) A determination made by the department under [sections 1 through 8] is independent of any proceeding of the licensing authority to suspend, revoke, deny, terminate, or renew a license.

NEW SECTION. Section 4. Suspension, denial, and nonrenewal of licenses. (1) Upon receipt of the notice of suspension of the license under [section 3(5)], a licensing authority shall implement the suspension of the license by:

(a) determining if it has issued a license to the person whose name appears on the notice;

(b) entering the suspension on the appropriate records;

(c) reporting the suspension as appropriate; and

(d) if required by law, demanding that the taxpayer surrender the suspended license to the licensing authority.

(2) An order issued by the department under [section 3] suspending a license and the notice of suspension given under [section 3(5)] must be processed by the licensing authority without an additional review or hearing involving the licensing authority concerning suspension of the license.

(3) Notwithstanding the provisions of any other law setting terms of suspension, revocation, denial, termination, or renewal of a license, an order issued by the department suspending a license must be implemented by the licensing authority and continues until the department, the state tax appeal board, or a court advises the licensing authority that the suspension has been stayed or terminated.

(4) If a license is suspended, any funds paid by the taxpayer to the licensing authority for costs related to issuance, renewal, or maintenance of the license may not be refunded to the taxpayer.

(5) Unless an order staying suspension of a license is in effect, a taxpayer who continues to engage in the business, occupation, profession, or other licensed activity while the taxpayer's license is suspended under this section is guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than $250 or more than $500 or by imprisonment in the county jail for a term not to exceed 6 months, or both. Upon conviction of a second or subsequent violation, the taxpayer shall be punished by a fine of not less than $500 or more than $2,000 or by imprisonment in the county jail for a term not to exceed 1 year, or both. The department or the licensing authority may elect the remedy under this section, by referring the matter to the appropriate county attorney for prosecution, or may elect to pursue any other remedy provided for engaging in a licensed activity without a license or while the license is suspended.

(6) The licensing authority has no jurisdiction to modify, remand, reverse, vacate, or stay the order of the department suspending a license. The suspension must be nondisciplinary for professional or occupational licenses, and the provisions of 2-4-631 do not apply.

(7) To the extent that inconsistencies exist between [sections 1 through 8] and the procedural requirements for suspension of a license issued by the licensing agency, [sections 1 through 8] supersede those requirements.

NEW SECTION. Section 5. Election of remedy. The department has the authority to suspend a license under [sections 1 through 8] without first resorting to any other remedy provided by law for the collection of state taxes or any other provision enforcing the requirement that a tax return, report, or statement be filed.

NEW SECTION. Section 6. Stay of suspension of license -- payment plan -- hardship. (1) A taxpayer may at the time of the review proceeding conducted under [section 3] or at any time after the review, petition the department for an order staying suspension of the license.

(2) The department shall consider the taxpayer's petition for a stay separately from any determination on whether suspension of a license is appropriate.

(3) The department may stay suspension of a license upon a showing that suspension or continued suspension of a license would create a significant hardship to the taxpayer, to the taxpayer's employees, to legal dependents residing in the taxpayer's household, or to persons, businesses, or other entities served by the taxpayer.

(4) A stay terminates upon:

(a) termination of the circumstances upon which a hardship is based;

(b) failure by the taxpayer to abide by the terms and conditions of a payment plan; or

(c) the date of termination, if any, provided in the order staying suspension of the license.

(5) If the licensing authority has been notified of an order suspending a license, the department shall notify the licensing authority of any stay or reinstatement. The department shall send a copy of any order staying or reinstating suspension of the license to the taxpayer.

(6) (a) Upon receipt of a notice staying or reinstating suspension of the license, the licensing authority shall:

(i) enter the information on appropriate records;

(ii) report the action as appropriate; and

(iii) demand return of the reinstated license.

(b) Further action by the licensing authority is not necessary to implement the stay or reinstatement of suspension of the license.

NEW SECTION. Section 7. Termination of order to suspend license. (1) When the department determines that the tax is paid in full or the return, report, or statement has been filed, the department shall send a copy of the order terminating the suspension of the license to the taxpayer.

(2) Entry of an order terminating suspension of a license does not limit the ability of the department to issue a new order suspending the license of the same taxpayer in the event of another delinquency.

NEW SECTION. Section 8. Penalty and interest. The department shall calculate and collect upon any debt transferred to it for collection the amount of interest provided for in [section 1 of LC 255] in addition to any penalty and interest previously imposed by the department.

Section 9. Section 15-1-211, MCA, is amended to read:

"15-1-211. Uniform review procedure -- notice -- appeal. (1) The department shall provide a uniform review procedure for all persons or other entities, except as provided in subsection (1)(a).

(a) The review procedure described in this section applies to all taxes administered by the department and to all issues arising from the administration of taxes, except inheritance taxes, estate taxes, property taxes, and the issue of whether an employer-employee relationship existed between the person or other entity and individuals subjecting the person or other entity to the requirements of chapter 30, part 2, or whether the employment relationship was that of an independent contractor. The procedure applies to any revised assessment of centrally assessed property taxed pursuant to chapter 23. This review procedure also applies to debts transferred to the department for collection pursuant to Title 17, chapter 4, part 1, if the person or other entity has not been accorded any type of administrative procedure to contest the debt prior to the time that the debt was transferred to the department.

(b) (i) The term "other entity", as used in this section, includes all businesses, corporations, or like enterprises.

(ii) The term "person", as used in this section, includes all individuals.

(2) (a) If the department determines that a request for a refund should be denied in whole or part, it shall notify the person or other entity of the determination. If the department determines that a person or other entity has failed to pay a sufficient tax, interest, or penalty or is delinquent in the payment of a debt owed to the state, it shall provide that person or other entity with notice. The notice stops the running of any applicable statute of limitations regarding the assessment of the tax.

(b) A notice under this section must clearly state:

(i) the reasons for the department's determination that a refund is not due or that tax plus interest and penalty, if any, are due or that the person or other entity is delinquent in payment of the debt;

(ii) the person's or other entity's right to a review by the department, the person's or other entity's right to appeal after a final department decision, and the person's or other entity's right to a review of determinations by the department of labor and industry and board of labor appeals of whether an employer-employee relationship existed between the person or other entity and certain individuals or whether the employment relationship was that of an independent contractor;

(iii) that failure to notify the department within 30 days will result in a forfeiture of the person's or other entity's right to contest the department's determination under this section or to file an appeal with the state tax appeal board;

(iv) that the person or other entity has 30 days to either notify the department in writing that the person or other entity does not agree with an assessment or pay the amount assessed;

(v) that a warrant for distraint placing a lien on the person's or other entity's property may be issued unless the person or other entity notifies the department that the person or other entity disagrees with an assessment or pays within 30 days; and

(vi) that the notice stops the running of the statute of limitations regarding the assessment of the tax.

(3) (a) A person or other entity shall notify the department, in writing, that the person or other entity objects to the determination within 30 days from the date that the notice is mailed. The notification by the person or other entity is not required to specify the reasons for the disagreement or be in any particular form unless the person or other entity is objecting to a determination that an employer-employee relationship existed between the person or other entity and individuals, subjecting the person or other entity to the requirements of chapter 30, part 2. If the person or other entity does not notify the department within 30 days:

(i) an assessment becomes final and the assessed tax, plus any interest and penalty, must be paid;

(ii) the person or other entity waives any further right to review under this section or to appeal to the state tax appeal board; and

(iii) a warrant for distraint may be issued without further opportunity to be heard on the assessment of the tax, penalty, or interest or the collection of the debt.

(b) (i) A person or other entity who notifies the department pursuant to subsection (3)(a) that the person or other entity disagrees with a tax assessment or notice that the person or other entity owes a debt to the state shall present the objections, the reasons for the objections, and any other information to the administrator of the division that administers the tax or to the administrator's designee within 60 days after the notice referred to in subsection (3)(a) is mailed. The reasons for objections may be provided in writing, by telephone, or, if requested by the person or other entity, at an informal conference. An informal conference is not subject to the Montana Administrative Procedure Act.

(ii) An objection received by the department pursuant to subsection (3)(a) stating that the person or other entity disagrees with the department's determination that an employer-employee relationship existed between the person or other entity and certain individuals, subjecting the person or other entity to the requirements of chapter 30, part 2, must be referred to the department of labor and industry for appeal procedures pursuant to 39-51-2402 and 39-51-2410.

(c) Within 60 days after the person or other entity has presented the person's or other entity's objections, as provided in subsection (3)(b), the administrator or a designee shall issue a written decision addressing the person's or other entity's objections and describing the reasons for the determination. The administrator's decision must also clearly set forth the person's or other entity's review rights. The administrator's decision must be provided to the person or other entity and the director of revenue.

(4) (a) A person or other entity shall notify the department in writing that the person or other entity objects to the administrator's decision within 30 days from the date that the decision is mailed, or the person or other entity may appeal to the state tax appeal board as provided in subsection (6). If an objection is not made within 30 days, the administrator's decision and any assessment become final. By failing to object, the person or other entity waives any further right to review or appeal and a warrant for distraint may be issued without further opportunity to be heard on the assessment or payment of the debt.

(b) Except as provided in subsection (6), a person or other entity who objects to the decision pursuant to subsection (4)(a) shall present the person's or other entity's objections, the reasons for the objections, and any other information to the director of revenue or the director's designee within 60 days after the notice referred to in subsection (4)(a) is mailed. The director or the designee may consider written information, hold a telephone conference, or conduct an informal conference, none of which are subject to the Montana Administrative Procedure Act.

(c) Within 60 days after the person or other entity has presented the objections, the director or the designee shall issue a written decision addressing the objections and describing the reasons for the decision. The director's decision is the final decision and assessment of the department.

(5) The person or other entity shall pay the assessment within 30 days after being mailed a copy of the final decision and assessment unless an appeal is filed with the state tax appeal board. If an appeal with the board is filed within 30 days after the final decision is mailed, payment is not due until final resolution by the board or, if further appeals are filed, by the appropriate court. However, any interest required by law must continue to accrue.

(6) (a) A person or other entity who validly objects to the administrator's decision may elect to file an appeal with the state tax appeal board. The appeal must be filed within 30 days after mailing an objection to the administrator's decision. If an appeal is filed, the administrator's decision is the final decision of the department.

(b) If the director notifies the board within 30 days after an appeal is filed that the director has not had an opportunity to review the administrator's decision and the director believes that a review may be helpful in resolving the controversy, the board shall stay the appeal for a time that the board considers reasonable, not to exceed 90 days except by the mutual consent of both parties. The person or other entity shall provide the person's or other entity's objections and reasons for the objections to the director so that the director or the director's designee may review the controversy and issue a decision within the period of the stay granted by the board. If the person or other entity is dissatisfied with the director's decision, the stay must be lifted and the appeal resumed.

(7) The time limits in this section must be applied and interpreted as provided in Rule 6 of the Montana Rules of Civil Procedure, including additional time for mailing. Any time limit may be extended by mutual consent of the department and the person or other entity. The department shall consent to all reasonable requests for extension of deadlines.

(8) (a) The director of revenue or the director's designee is authorized to enter into an agreement with any person or other entity relating to the person's or other entity's liability with respect to a tax administered by the department for any taxable period or for a debt owed to the state.

(b) An agreement under the provisions of subsection (8)(a) is final and conclusive, and, except upon a showing of fraud, malfeasance, or misrepresentation of a material fact:

(i) the agreement may not be reopened as to matters agreed upon or be modified by any officer, employee, or agent of this state; and

(ii) in any suit, action, or proceeding under the agreement or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance with the agreement, the agreement may not be annulled, modified, set aside, or disregarded."

Section 10. Section 15-1-701, MCA, is amended to read:

"15-1-701. Warrant for distraint. (1) A warrant for distraint is an order, under the official seal of the department of revenue or of the department of transportation, directed to a sheriff of a county of Montana or to an agent authorized by law to collect a tax or any other debt owed the state that is subject to collection by the department of revenue. The order commands the recipient to levy upon and sell the real and personal property of a delinquent taxpayer or debtor.

(2) Upon filing the warrant as provided in 15-1-704, there is a lien against all real and personal property of the delinquent taxpayer or debtor located in any county of the state. The resulting lien is treated in the same manner as a properly docketed judgment lien, the department is a judgment lien creditor, and the department may collect delinquent taxes or other money owed the state and enforce the lien in the same manner as a judgment is enforced, except that the department may enforce the judgment lien at any time within 10 years of its creation or effective date, whichever is later.

(3) A warrant may be issued for the amount of unpaid tax or other money owed the state plus penalty, if any, and accumulated interest. The lien is for the amount indicated on the warrant plus accrued interest from the date of the warrant. The priority date of the lien created by filing the warrant for distraint is the date on which the tax or other debt was due as indicated on the warrant for distraint.

(4) The accelerated priority date provided for in (3) is not valid against purchasers, holders of security interests, judgment lien creditors, and those lienholders identified in Title 71, chapter 3, parts 3 through 15, whose interest is recorded prior to the filing of the warrant for distraint."

Section 11. Section 15-1-702, MCA, is amended to read:

"15-1-702. Issuance of warrant. (1) If a tax administered and collected by the department is not paid within 30 days of the due date or if any other debt owed the state that is subject to collection by the department has not been collected, the department may issue a notice to the taxpayer or debtor notifying the taxpayer or debtor that unless payment is received within 30 days of the date of the notice, a warrant for distraint may be issued. Thirty days after the date of the notice, the department may issue a warrant if payment is not received.

(2) Use of the procedure to issue a warrant under this section does not preclude use of the procedure under 15-1-703 if the department determines that it is appropriate to use 15-1-703."

Section 12. Section 15-1-703, MCA, is amended to read:

"15-1-703. Emergency issuance of warrant. (1) The department may issue a warrant for distraint without waiting for the expiration of either 30-day period provided for in 15-1-702 if:

(a) the department determines that the collection of the tax or any other debt owed the state that is subject to collection by the department is or may be jeopardized because of the delay imposed by the waiting period; or

(b) the tax involved is a tax considered to be held in trust by the taxpayer under state law.

(2) Whenever the provisions of this section are used, the department shall notify the taxpayer or debtor that warrants have been issued."

Section 13. Section 15-1-704, MCA, is amended to read:

"15-1-704. Filing with district court. (1) After issuing a warrant for distraint, the department may file the warrant for distraint with the clerk of the first judicial district . The clerk shall file the warrant for distraint in the judgment docket, with the name of the taxpayer or debtor listed as the judgment debtor.

(2) A copy of the filed warrant for distraint may be sent by the department to the sheriff or agent authorized to collect the tax or any other debt owed the state that is subject to collection by the department.

(3) A judgment lien filed pursuant to this section may be renewed for another 10-year period pursuant to the methods provided in 25-13-102."

Section 14. Section 15-1-705, MCA, is amended to read:

"15-1-705. Review. (1) Except as provided in 15-1-707, a taxpayer or debtor has the right to a review of the tax liability, whether money is owed to the state or whether the person has a claim or exemption to the property levied upon by the department, pursuant to 15-1-211 prior to execution on a filed warrant for distraint.

(2) The department shall provide notice of the right to review to the taxpayer or debtor. This notice may be given prior to the notice referred to in 15-1-702. If the taxpayer or debtor notifies the department that the taxpayer or debtor disagrees with an assessment or the amount of money owed to the state as provided in 15-1-211, the warrant for distraint may not be executed upon until after the review process and any appeals are completed."

Section 15. Section 15-1-706, MCA, is amended to read:

"15-1-706. Execution upon warrant for distraint. (1) Upon receipt of a copy of the filed warrant for distraint and notice from the department that the applicable hearing provisions have been complied with, the sheriff or agent authorized to collect the tax or any other debt owed the state that is subject to collection by the department shall proceed to execute upon the warrant for distraint in the same manner as prescribed for execution upon a judgment.

(2) (a) A notice of levy may be made by means of a certified letter by an agent authorized to collect the tax or other money owed the state. An agent is not entitled to any fee or compensation in excess of actual expenses incurred in enforcing the warrant for distraint.

(b) A notice of levy must be served upon the taxpayer or debtor, at the taxpayer's or debtor's last-known address, at the time of seizure of property or, if that is not possible, shortly after the time of seizure. The notice of levy must include:

(i) the existence of exemptions from execution;

(ii) the procedure by which an exemption may be claimed; and

(iii) the right to request a review to determine any exemption claim.

(3) When issued, a notice of levy has the same force and effect as a writ of execution and is continuous until satisfied, but not longer than 10 years.

(4) A sheriff or agent shall return a warrant for distraint, along with any funds collected, within 90 days of the date of the warrant for distraint.

(5) If the warrant for distraint is returned not satisfied in full, the department has the same remedies to collect the deficiency as are available for any civil judgment."

Section 16. Section 15-1-707, MCA, is amended to read:

"15-1-707. Emergency execution upon warrant for distraint. (1) The department may execute upon a filed warrant for distraint without providing an opportunity for a hearing prior to execution if the department determines that the collection of the tax or any other debt owed the state that is subject to collection by the department is jeopardized because of the delay imposed by the hearing requirement.

(2) When the provisions of this section are used, the department shall notify the taxpayer or debtor and inform the taxpayer or debtor of the right to request a hearing to be held subsequent to execution. A hearing, if desired, must be requested in writing within 30 days of the date of the notice and, if requested, must be held as soon as possible. The commencement of a proceeding under 15-1-705 does not preclude the use of the provisions of this section if the department determines that the action is appropriate."

Section 17. Section 15-1-708, MCA, is amended to read:

"15-1-708. Release of lien. (1) Upon payment in full of the unpaid tax or the unpaid debt owed the state that is subject to collection by the department plus penalty, if any, and accumulated interest, the department shall release the lien acquired by filing the warrant for distraint.

(2) Upon partial payment or whenever the department determines that a release or partial release of the lien will facilitate the collection of the unpaid tax or debt, penalty, and interest, the department may release or may partially release the lien acquired by filing the warrant for distraint. The department may release the lien if it determines that the lien is unenforceable.

(3) After making all reasonable efforts to collect unpaid taxes or debts, penalties, and interest on the taxes and penalties, the department may determine a debt to be uncollectible.

"

Section 18. Section 25-9-301, MCA, is amended to read:

"25-9-301. Docketing of judgment -- lien -- expiration. (1) Immediately after the entry of the judgment in the judgment book, the clerk shall make entries of the judgment under appropriate headings in the docket kept by the clerk.

(2) From the time the judgment is docketed, it becomes a lien upon all real property of the judgment debtor that is not exempt from execution in the county and that is either owned by the judgment debtor at the time or afterward acquired by the judgment debtor before the lien ceases. Except as provided in subsection (3), the lien continues for 10 years unless the judgment is previously satisfied.

(3) When the judgment is for the payment of child support, the lien continues for 10 years from the termination of the support obligation or 10 years from entry of a lump-sum judgment or order for support arrears, whichever is later, unless the judgment is previously satisfied.

(4) When the judgment is for the payment of money owed the state, the lien continues for 10 years unless the judgment is previously satisfied."

Section 19. Section 25-9-302, MCA, is amended to read:

"25-9-302. Filing of transcript of docket in another county -- lien -- expiration. (1) A transcript of the original docket, certified by the clerk, may be filed with the district court clerk of any other county. From the time of the filing, the judgment becomes a lien upon all real property of the judgment debtor that is not exempt from execution in that county and that is either owned by the judgment debtor at the time or afterward acquired by the judgment debtor before the lien expires. Except as provided in subsection (2), the lien continues for 10 years unless the judgment is previously satisfied.

(2) When the judgment is for the payment of child support, the lien continues for 10 years from the termination of the support obligation or 10 years from entry of a lump-sum judgment or order for support arrears, whichever is later, unless the judgment is previously satisfied.

(3) When the judgment is for the payment of money owed the state, the lien continues for 10 years unless the judgment is previously satisfied."

Section 20. Section 25-13-102, MCA, is amended to read:

"25-13-102. Execution after ten years. In all cases, the judgment may be enforced or carried into execution after the lapse of the term of the lien from the date of its entry by leave of the court, upon motion, or by judgment for that purpose founded upon supplemental pleadings."

Section 21. Section 39-51-1304, MCA, is amended to read:

"39-51-1304. Lien for payment of unpaid taxes or other money owed state -- levy and execution. (1) Unpaid taxes, including penalties and interest assessed on unpaid taxes and any other debt owed the state that is subject to collection by the department of revenue, have the effect of a judgment against the employer or against the liable corporate officer or liable member or manager of a limited liability company referred to in 39-51-1105, or a partner in a limited liability partnership, arising at the time that the payments are due. The department may issue a warrant for distraint stating the amount of payments due and directing the clerk of the district court of any county of the state to enter the warrant for distraint as a judgment in the docket pursuant to 25-9-301. From the time that the judgment is docketed, it becomes a lien upon all real and personal property of the employer. After the due process requirements of 39-51-1109 and 39-51-2403 have been satisfied, the department may enforce the judgment through the sheriff or agent authorized to collect the money in the same manner as prescribed for execution upon a judgment. When issued, a notice of levy has the same force and effect as a writ of execution and is continuous until satisfied, but not longer than 10 years. A notice of levy may be made by means of a certified letter by an agent authorized to collect the tax or other money owed the state. The department may enforce the judgment at any time within 10 years of the creation of the lien or the effective date of the lien, whichever is later.

(2) A judgment lien filed pursuant to this section may be renewed for another 10-year period pursuant to the methods provided in 25-13-102.

(3) The lien provided for in subsection (1) is not valid against any third party owning an interest in real or personal property against which the judgment is enforced if:

(a) the third party's interest is recorded prior to the entrance of the certificate as a judgment; and

(b) the third party receives from the most recent grantor of the interest a signed affidavit stating that all taxes or other money, penalties, and interest due from the grantor have been paid.

(4) A grantor who signs and delivers an affidavit is subject to the penalties imposed by 39-51-3204 if any part of it is untrue. Notwithstanding the provisions of 39-51-3204, the department may proceed under 39-51-1303, this section, or both, to collect the delinquent taxes or other money owed the state, penalties, and interest from the:

(a) employer;

(b) liable corporate officer;

(c) liable member or manager of a limited liability company referred to in 39-51-1105; or

(d) partner in a limited liability partnership.

(5) The lien provided for in subsection (1) must be released upon payment in full of the unpaid taxes or other money owed the state, penalties, and accumulated interest. The department may release or may partially release the lien upon partial payment or whenever the department determines that the release or partial release of the lien will facilitate the collection of unpaid taxes or other money owed the state, penalties, or interest. The department may release the lien if it determines that the lien is unenforceable."

Section 22. Section 61-6-123, MCA, is amended to read:

"61-6-123. Suspension to continue until judgments paid and proof given -- maximum period of suspension. The driver's license and nonresident's operating privilege must remain suspended and may not be renewed, nor may a license be issued in the name of the person, including a person not previously licensed, unless and until each judgment is stayed, satisfied in full, or satisfied to the extent provided in this part and until the person gives proof of financial responsibility subject to the exemptions stated in 61-6-122 and 61-6-125 or 10 years have passed from the date on which judgment was first entered as provided in 25-9-301 and the person has complied with 61-6-301 and 61-6-302."

NEW SECTION. Section 23. Coordination instruction. (1) If [LC 128] is passed and approved, then [section 9 of this act], amending 15-1-211, is void.

(2) If [LC 255] is not passed and approved, then [section 8 of this act] is void.

NEW SECTION. Section 24. Codification instruction. [Sections 1 through 8] are intended to be codified as an integral part of Title 15, chapter 1, part 2, and the provisions of Title 15, chapter 1, part 2, apply to [sections 1 through 8].

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