HOUSE BILL NO. 239

INTRODUCED BY C. TUSS, J. TESTER, B. DEPRATU, L. GROSFIELD, D. MOOD, K. OHS, E. SWANSON, M. WATERMAN

BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING THAT 50 PERCENT, UP TO A MAXIMUM OF $8,250,000, OF THE REVENUE GENERATED FROM THE FOREIGN CAPITAL DEPOSITORY SEMIANNUAL ASSESSMENT FEE BE DEPOSITED INTO AN ACCOUNT IN THE SPECIAL REVENUE FUND; PROVIDING THAT THE LEGISLATURE MAY APPROPRIATE THE FUNDS IN THE ACCOUNT TO THE DEPARTMENT OF COMMERCE FOR ECONOMIC DEVELOPMENT ACTIVITIES; AMENDING SECTIONS 15-1-501 AND 15-31-803, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

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

Section 1. Section 15-1-501, MCA, is amended to read:

"15-1-501. Disposition of money from certain designated license and other taxes. (1) The state treasurer shall deposit to the credit of the state general fund in accordance with the provisions of subsection (3) all money received from the collection of:

(a) income taxes, interest, and penalties collected under chapter 30;

(b) except as provided in 15-31-702, all taxes, interest, and penalties collected under chapter 31;

(c) oil and natural gas production taxes allocated under 15-36-324(8)(a) and (10)(a);

(d) electrical energy producer's license taxes under chapter 51;

(e) telephone company license taxes under chapter 53;

(f) liquor license taxes under Title 16;

(g) fees from driver's licenses, motorcycle endorsements, and duplicate driver's licenses as provided in 61-5-121;

(h) inheritance and estate taxes under Title 72, chapter 16; and

(i) except as provided in 15-31-803, fees based on the value of currency on deposit and tangible personal property held for safekeeping by a foreign capital depository as provided in 15-31-803.

(2) The department of revenue shall also deposit to the credit of the state general fund all money received from the collection of license taxes and fees and all net revenue and receipts from all other sources under the operation of the Montana Alcoholic Beverage Code.

(3) Notwithstanding any other provision of law, the distribution of tax revenue must be made according to the provisions of the law governing allocation of the tax that were in effect for the period in which the tax revenue was recorded for accounting purposes. Tax revenue must be recorded as prescribed by the department of administration, pursuant to 17-1-102(2) and (4), in accordance with generally accepted accounting principles.

(4) All refunds of taxes must be attributed to the funds in which the taxes are currently being recorded. All refunds of interest and penalties must be attributed to the funds in which the interest and penalties are currently being recorded."

Section 2. Section 15-31-803, MCA, is amended to read:

"15-31-803. (Temporary) State revenue -- assessment -- collection -- distribution. (1) A foreign capital depository shall pay to the department on June 15 and December 15 of each year a fee that is equal to 0.75% of the total value of assets on deposit or in a safe deposit box. The total annual rate of assessment is 1.5%.

(2) The basis of the value ascribed to each asset is:

(a) the U.S. dollar exchange value of the currency on deposit on the date of assessment;

(b) the spot market price of the platinum, palladium, gold, or silver held in precious metals accounts, as defined in 32-8-402, as published in The Wall Street Journal on the date of assessment; or

(c) the market value of other tangible personal property held in safe deposit boxes or other accounts at the time of the assessment, as determined by the depository using a method approved by the department. The depository shall submit to the department within 60 days of the appraisal a report that documents the method and calculations of the appraisal.

(3) The semiannual assessment fee must be deposited as follows:

(a) An amount equal to 50%, up to a maximum amount of $8,250,000, must be deposited into the account in the state special revenue fund established in [section 3].

(b) The remaining amount must be deposited into the general fund. (Terminates September 30, 2012--sec. 90, Ch. 382, L. 1997.)"

NEW SECTION. Section 3. Account -- special revenue fund -- economic development. (1) There is an account in the special revenue fund.

(2) Of the money in the account:

(a) 90%, up to a maximum of $8 million, may be appropriated to the department of commerce for economic development programs pursuant to recommendations from the Montana jobs and income commission provided for in [section 6 of House Bill No. 238]; and

(b) the amount remaining after the appropriation under subsection (2)(a), up to a maximum of $250,000, may be appropriated to the department of commerce to administer the foreign capital depository.

(3) The amount of money in the account that is not appropriated reverts to the general fund.

NEW SECTION. Section 4. Codification instruction. [Section 3] is intended to be codified as an integral part of Title 15, chapter 31, part 8, and the provisions of Title 15, chapter 31, part 8, apply to [section 3].

NEW SECTION. Section 5. Coordination instruction. (1) If House Bill No. 238 is not passed and approved, then [section 3] must read as follows:

"NEW SECTION. Section 3. Account -- special revenue fund -- economic development. (1) There is an account in the special revenue fund.

(2) Of the money in the account:

(a) 90%, up to a maximum of $8 million, may be appropriated to the department of commerce for economic development programs; and

(b) the amount remaining after the appropriation under subsection (2)(a), up to a maximum of $250,000, may be appropriated to the department of commerce to administer the foreign capital depository.

(3) The amount of money in the account that is not appropriated reverts to the general fund."

NEW SECTION. Section 6. Effective date. [This act] is effective on passage and approval.

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