AN ACT ENCOURAGING ECONOMIC DEVELOPMENT THROUGH INVESTMENT IN RESEARCH AND COMMERCIALIZATION PROJECTS; ESTABLISHING A RESEARCH AND COMMERCIALIZATION EXPENDABLE TRUST FUND; ESTABLISHING A COAL PRODUCER'S LICENSE TAX; ALLOCATING COAL PRODUCER'S LICENSE TAX REVENUE; PROVIDING FOR A CREDIT AGAINST COAL SEVERANCE TAXES FOR COAL PRODUCER'S LICENSE TAXES PAID; STATUTORILY APPROPRIATING COAL PRODUCER'S LICENSE TAXES TO SUPPORT RESEARCH AND COMMERCIALIZATION CENTERS AND TO BE USED AS MATCHING FUNDS; AMENDING SECTIONS 17-5-703, 17-5-709, AND 17-7-502, MCA; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, dedication to ongoing research and commercialization funding provides Montana with the opportunity to effectively compete in a rapidly changing global economy; and

WHEREAS, nonstate funding sources, including federal research and commercialization funding entities, seek a lasting commitment from the state to ensure that research and commercialization efforts are a funding priority in Montana; and

WHEREAS, the intention behind the coal severance tax and the coal tax permanent fund was to invest in the future of Montana and its citizens by strengthening the state's economic foundations; and

WHEREAS, productive economic possibilities, access to frontline research, and quality educational opportunities require an active and competitive research and commercialization base in Montana; and

WHEREAS, the development of a stable and diversified research and commercialization effort will help provide for a vibrant and diversified Montana economy.

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

Section 1. Purpose -- definition. (1) The purpose of establishing a research and commercialization expendable trust fund in [sections 2 and 3] is to:

(a) provide a predictable and stable source of funding for research and commercialization projects conducted in the state that demonstrates to both private and public sources, including federal research granting agencies, that Montana recognizes the important contributions that research and commercialization endeavors offer to the state's basic industries;

(b) expand and strengthen research efforts for the state's basic industries to increase their economic impact on the state's economy; and

(c) expand research efforts into areas beyond the scope of the state's basic industries to diversify and strengthen the state's economic security through the creation of technology-based operations and long-term quality jobs.

(2) As used in [sections 2 and 3], "research and commercialization center" means the campuses of the university of Montana or Montana state university, tribal colleges, colleges of technology, community colleges, agricultural research centers, or a private, nonprofit laboratory or research center.

Section 2. Research and commercialization expendable trust. (1) There is a research and commercialization expendable trust fund within the state treasury. The purpose of the fund is to establish a permanent source of funding for research and commercialization projects to be conducted at research and commercialization centers in the state.

(2) The research and commercialization expendable trust fund must be invested by the board of investments. Earnings on the expendable trust fund must be deposited in the fund for distribution pursuant to [section 3(3) and (5)].

Section 3. Research and commercialization expendable trust -- use. (1) The research and commercialization expendable trust fund provided for in [section 2] is statutorily appropriated, as provided in 17-7-502, to the board of research and commercialization technology, provided for in [section 9], for the purposes provided in this section.

(2) The establishment of the expendable trust fund in [section 2] is intended to enhance the economic growth opportunities for Montana and constitute a public purpose.

(3) The expendable trust fund may be used only for loans or for matching funds for grants from nonstate sources that are to be used for research and commercialization projects to be conducted at research and commercialization centers located in Montana. At least 20% of the investments made must be directed toward projects that enhance production agriculture. An amount allocated for matching funds must be matched by at least a 1-to-1 ratio.

(4) The board shall establish policies, procedures, and criteria that achieve the objectives in their research and commercialization strategic plan for the awarding of grants and loans. The criteria must include:

(a) the project's potential to diversify or add value to a traditional basic industry of the state's economy;

(b) whether the project shows promise for enhancing technology-based sectors of Montana's economy or promise for commercial development of discoveries;

(c) whether the project employs or otherwise takes advantage of existing research and commercialization strengths within the state's public university and private research establishment;

(d) whether the project involves a realistic and achievable research project design;

(e) whether the project develops or employs an innovative technology;

(f) verification that the project activity is located within the state;

(g) whether the project's research team possesses sufficient expertise in the appropriate technology area to complete the research objective of the project;

(h) verification that the project was awarded based on its scientific merits, following review by a recognized federal agency, philanthropic foundation, or other private funding source; and

(i) whether the project includes research opportunities for students.

(5) The board shall direct the state treasurer to distribute funds for approved projects. Unallocated interest and earnings from the expendable trust fund must be retained in the fund. Repayments of loans and any agreements authorizing the board to take a financial right to licensing or royalty fees paid in connection with the transfer of technology from a research and commercialization center to another nonstate organization or ownership of corporate stock in a private sector organization must be deposited in the fund.

(6) The board shall refer grant applications to external peer review groups. The board shall compile a list of persons willing to serve on peer review groups for purposes of this section. The peer review group shall review the application and make a recommendation to the board as to whether the application for a grant should be approved. The board shall review the recommendation of the peer review group and either approve or deny a grant application.

(7) The board shall identify whether a grant or loan is to be used for basic research, applied research, or some combination of both. For the purposes of this section, "applied research" means research that is conducted to attain a specific benefit or solve a practical problem and "basic research" means research that is conducted to uncover the basic function or mechanism of a scientific question.

Section 4. Section 17-5-703, MCA, is amended to read:

"17-5-703. Coal severance tax trust funds. (1) The trust established under Article IX, section 5, of the Montana constitution is composed of the following funds:

(a) a coal severance tax bond fund into which the constitutionally dedicated receipts from the coal severance tax must be deposited;

(b) a treasure state endowment fund;

(c) a coal severance tax permanent fund;

(d) a coal severance tax income fund; and

(e) a coal severance tax school bond contingency loan fund.

(2) (a) The state treasurer shall determine, on July 1 of each year, the amount necessary to meet all principal and interest payments on bonds payable from the coal severance tax bond fund during the next 12 months and retain that amount in the coal severance tax bond fund.

(b) The amount in the coal severance tax bond fund in excess of the amount required in subsection (2)(a) must be transferred from that fund as provided in subsections (3) through (5).

(3) (a) As long as any school district bonds secured by state loans under 20-9-466 are outstanding, the state treasurer shall from time to time and as provided in subsection (3)(b) transfer from the coal severance tax bond fund to the coal severance tax school bond contingency loan fund any amount in the coal severance tax bond fund in excess of the amount that is specified in subsection (2) to be retained in the fund.

(b) The state treasurer shall transfer the amount referred to in subsection (3)(a) until and unless the balance in the coal severance tax school bond contingency loan fund is equal to the amount due as principal of and interest on the school district bonds secured by state loans under 20-9-466 during the next following 12 months.

(4) (a) Beginning July 1, 1993, and ending June 30, 2023, the state treasurer shall quarterly transfer to the treasure state endowment fund 100% of the amount in the coal severance tax bond fund in excess of the amount that is specified in subsection (2) to be retained in the fund and in excess of amounts that are transferred pursuant to subsection (3).

(b) The state treasurer shall monthly transfer from the treasure state endowment fund to the treasure state endowment special revenue account the amount of earnings required to meet the obligations of the state that are payable from the account in accordance with 90-6-710. Earnings not transferred to the treasure state endowment special revenue account must be retained in the treasure state endowment fund.

(5) Any amount in the coal severance tax bond fund in excess of the amount that is specified in subsection (2)(a) to be retained in the fund and that is not otherwise allocated under this section must be deposited in the coal severance tax permanent fund."

Section 5. Section 17-5-709, MCA, is amended to read:

"17-5-709. Continued tax deposit limit on additional bonds. (1) (a) The legislature shall provide for the continued assessment, levy, collection, and deposit into the coal severance tax bond fund of the coal severance tax that, together with other revenue, assets, and money that may be deposited to one or more special bond funds pledged for the benefit of coal severance tax bonds, will be sufficient to produce an amount that is at least the amount necessary to pay, when due, the annual debt service charges on all outstanding coal severance tax bonds.

(b) The legislature shall provide for the continued assessment, levy, collection, and deposit into the coal producer's license tax bond account established in [section 17] of the coal producer's license taxes that, together with other revenue, assets, and money that may be deposited to one or more special bond funds pledged for the benefit of coal severance tax bonds, will be sufficient to produce an amount that when combined with the deposits in subsection (1)(a) is at least the amount necessary to pay, when due, the annual debt service charges on all outstanding coal severance tax bonds.

(2) The board of examiners may issue no coal severance tax bonds unless the aggregate amount of coal severance tax bonds outstanding, including the proposed issue and any other coal severance tax bonds authorized but not yet issued, can be serviced with no more than two-thirds of the annual deposits into the coal severance tax bond fund and coal producer's license tax bond account established in [section 17], as determined by the average of the deposits during the preceding 3 fiscal years, together with the average of the aggregate amount of revenue, assets, or money deposited in one or more special bond funds used to pay debt service on outstanding coal severance tax bonds during the preceding 3 fiscal years.

(3) The provisions of this section may not be modified so as to reduce the security for any coal severance tax bonds while the bonds are outstanding."

Section 6. Section 17-7-502, MCA, is amended to read:

"17-7-502. (Temporary) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.

(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:

(a) The law containing the statutory authority must be listed in subsection (3).

(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.

(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-1-111; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-406; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 53-6-703; 53-24-206; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-11-313; 77-1-131; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-161; 85-20-402; 87-1-513; 90-3-301; [sections 3 and 16]; 90-4-215; 90-6-331; and 90-9-306.

(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; pursuant to sec. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001; pursuant to sec. 5, Ch. 461, L. 1997, the inclusion of 77-1-131 terminates October 1, 2003; and pursuant to secs. 13, 16(1), Ch. 549, L. 1997, the inclusion of 90-3-301 terminates July 1, 1999.)

17-7-502. (Effective July 1, 2008) Statutory appropriations -- definition -- requisites for validity. (1) A statutory appropriation is an appropriation made by permanent law that authorizes spending by a state agency without the need for a biennial legislative appropriation or budget amendment.

(2) Except as provided in subsection (4), to be effective, a statutory appropriation must comply with both of the following provisions:

(a) The law containing the statutory authority must be listed in subsection (3).

(b) The law or portion of the law making a statutory appropriation must specifically state that a statutory appropriation is made as provided in this section.

(3) The following laws are the only laws containing statutory appropriations: 2-17-105; 3-5-901; 5-13-403; 10-3-203; 10-3-310; 10-3-312; 10-3-314; 10-4-301; 15-23-706; 15-30-195; 15-31-702; 15-36-324; 15-36-325; 15-37-117; 15-38-202; 15-65-121; 15-70-101; 16-1-404; [16-1-406;] 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-3-222; 17-5-404; 17-5-804; 17-6-101; 17-7-304; 18-11-112; 19-3-319; 19-6-709; 19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-9-361; 20-26-1503; 22-3-1004; 23-5-136; 23-5-306; 23-5-409; 23-5-610; 23-5-612; 23-5-631; 23-7-301; 23-7-402; 32-1-537; 37-43-204; 37-51-501; 39-71-503; 39-71-907; 39-71-2321; 42-2-105; 44-12-206; 44-13-102; 50-4-623; 50-5-232; 50-40-206; 53-6-150; 53-6-703; 53-24-206; 60-2-220; 67-3-205; 75-1-1101; 75-5-1108; 75-6-214; 75-5-1108; 75-6-214; 75-11-313; 77-1-505; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161; 85-1-220; 85-20-402; 87-1-513; [sections 3 and 16]; 90-4-215; 90-6-331; 90-7-220; 90-7-221; and 90-9-306.

(4) There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing, paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 7, Ch. 567, L. 1991, the inclusion of 19-6-709 terminates upon death of last recipient eligible for supplemental benefit; and pursuant to sec. 68(2), Ch. 422, L. 1997, this version becomes effective July 1, 2008.)"

Section 7. Credit against severance tax. A coal mine operator is entitled to a credit against the tax imposed under 15-35-103 in an amount equal to 101.5% of the amount of license tax paid under [section 8]. The credit may not be claimed for coal produced prior to July 1, 1999.

Section 8. Coal producer's license tax -- definition. (1) There is imposed on each coal mine operator that is subject to the tax imposed under 15-35-103 a tax in an amount equal to 9.17% of the value of coal produced in the state.

(2) The proceeds of the tax must be allocated as provided for in [section 16].

(3) For purposes of this section, "value" has the meaning provided in 15-35-103.

Section 9. Quarterly statement and payment of tax. Each coal mine operator shall compute the license tax due on each quarter-year's worth of coal production on forms prescribed by the department. The statement must indicate the tonnage produced, the average Btu value of the production, the contract sales price received for the production, and other information that the department may require. Each coal mine operator shall provide a statement of the tons of coal sold to each purchaser for the quarter. The completed form in duplicate, with the tax payment, must be delivered to the department not later than 30 days following the close of the quarter. The form must be signed by the coal mine operator if the operator is an individual or by an officer of the operator if the operator is a business entity. A person operating more than one coal mine in this state may include all of the operator's mines in one statement. The department may grant a reasonable extension of time for filing statements and payment of taxes due upon good cause shown.

Section 10. Penalty for delinquent tax. The department shall add to the amount of all delinquent taxes a penalty as provided in [section 1 of House Bill No. 132]. The penalty amount may be waived by the department if reasonable cause for the failure or neglect to file the quarterly statement is provided to the department.

Section 11. Deficiency assessment -- review -- interest. (1) When the department determines that the amount of tax due is greater than the amount disclosed by a return, it shall mail to the taxpayer a notice, pursuant to 15-1-211, of the additional tax proposed to be assessed. The taxpayer may seek review of the determination pursuant to 15-1-211.

(2) A deficiency assessment bears interest until paid as provided in [section 1 of House Bill No. 132].

Section 12. Credit for overpayment -- interest on overpayment. (1) If the department determines that the amount of tax, penalty, or interest due for any year is less than the amount paid, the amount of the overpayment must be credited against any tax, penalty, or interest then due from the taxpayer and the balance refunded to the taxpayer or its successor through reorganization, merger, or consolidation or to its shareholders upon dissolution.

(2) Except as provided in subsection (3), interest must be allowed on overpayments at the same rate that is charged on deficiency assessments provided in 15-35-112 due from the due date of the return or from the date of overpayment, whichever date is later, to the date the department approves refunding or crediting of the overpayment.

(3) (a) Interest may not accrue during any period that the processing of a claim for refund is delayed more than 30 days by reason of failure of the taxpayer to furnish information requested by the department for the purpose of verifying the amount of the overpayment.

(b) Interest is not allowed:

(i) if the overpayment is refunded within 6 months from the date the return is due or from the date the return is filed, whichever is later; or

(ii) if the amount of the interest is less than $1.

(c) A payment not made incident to a bona fide and orderly discharge of an actual tax liability or one reasonably assumed to be imposed by the coal producer's license tax may not be considered an overpayment with respect to which interest is allowable.

Section 13. Statute of limitations. (1) Except as otherwise provided in this section, a deficiency may not be assessed or collected with respect to the year for which a return is filed unless the notice of additional tax proposed to be assessed is mailed within 5 years from the date the return was filed. For the purposes of this section, a return filed before the last day prescribed for filing is considered as filed on the last day. If the taxpayer, before the expiration of the period prescribed for assessment of the tax, consents in writing to an assessment after that time, the tax may be assessed at any time prior to the expiration of the period agreed upon.

(2) A refund or credit may not be allowed or paid with respect to the year for which a return is filed after 5 years from the last day prescribed for filing the return or after 1 year from the date of the overpayment, whichever period expires later, unless before the expiration of the period the taxpayer files a claim for the refund or credit or the department has determined the existence of the overpayment and has approved the refund or credit. If the taxpayer has agreed in writing under the provisions of subsection (1) to extend the time within which the department may propose an additional assessment, the period within which a claim for refund or credit may be filed or a credit or refund allowed if a claim is not filed is automatically extended.

(3) If a return is required to be filed and the taxpayer fails to file the return, the tax may be assessed or an action to collect the tax may be brought at any time. If a return is required to be filed and the taxpayer files a fraudulent return, the 5-year period provided for in subsection (1) does not begin until discovery of the fraud by the department.

Section 14. Procedure on failure to file statement. (1) If any person fails, neglects, or refuses to file any statement required by [sections 7 through 16] within the time required or fails to pay the tax required by [sections 7 through 16] on or before the date the payment is due, the department shall immediately after the time has expired proceed to inform itself as best it may regarding the amount of coal produced by the person within this state during the quarter and during each month of the quarter and shall determine and fix the amount of the license taxes due to the state from that person for the quarter.

(2) The department shall add to the amount of all delinquent coal producer's license taxes a penalty as provided in [section 1 of House Bill No. 132].

Section 15. Rulemaking authority. The department may adopt rules necessary for the tax administration under [sections 7 through 16].

Section 16. Coal producer's license tax allocation. Coal producer's license taxes collected pursuant to [section 8] must be deposited in the coal producer's license tax bond account established in [section 17] to pay debt service on outstanding bonds issued pursuant to Title 17, chapter 5, part 7. The state treasurer shall determine, on July 1 of each year, the amount necessary to meet all principal and interest payments on outstanding coal severance tax bonds and on outstanding coal severance tax school bond contingency loan bonds. If coal severance tax receipts retained in the coal severance tax bond fund and in the coal severance tax school bond contingency loan fund are insufficient to meet all principal and interest payments in that year, then the amount that is deficient must be retained in the coal producer's license tax bond account. At no time may the total amount retained in the coal severance tax bond fund, the coal severance tax school bond contingency loan fund, and the coal producer's license tax bond account exceed the amount necessary to make annual debt service payments for coal severance tax bonds and coal severance tax school bond contingency loan bonds. All coal producer's license tax revenue in excess of the amount retained for payment of annual debt service on outstanding coal severance tax bonds and coal severance tax school contingency loan bonds must be allocated as follows:

(1) for the fiscal year beginning July 1, 1999, and until June 30, 2001, $2.3 million each fiscal year is allocated to the treasure state endowment special revenue account provided for in 17-5-703(4)(b), and beginning July 1, 2001, $600,000 is allocated to that account each fiscal year;

(2) $2.5 million is allocated to the agriculture seed capital account, provided for in 90-9-301, to be used for purposes of Title 90, chapter 1, part 1, and Title 90, chapter 9, part 2;

(3) for fiscal year 2000, there is $450,000 allocated to the secretary of state for the Montana presidential preference primary election to be conducted in accordance with [House Bill No. 490];

(4) for fiscal year 2000, there is $150,000 and for fiscal year 2001 and future years, there is $600,000 allocated to the department of administration for tax increment financing industrial districts; and

(5) the amount remaining after the allocation in subsections (1) and (2) is allocated as follows:

(a) 33.33% is allocated to the research and commercialization expendable trust fund established in [section 2];

(b) 16.99% is allocated to the long-range building program account established in 17-7-205;

(c) 11.15% is allocated to the account in the state special revenue fund provided for in 15-35-108(3) to be used as provided in that subsection;

(d) 1.70% is allocated to the nonexpendable trust for parks acquisition or management to be used as provided in Title 23, chapter 1, part 1;

(e) 1.27% is allocated to the debt service fund type to the credit of the renewable resource loan debt service fund;

(f) 0.86% is allocated to the cultural and aesthetic trust fund provided for in 15-35-108(6);

(g) beginning July 1, 1999, and ending June 30, 2007, 1.74% is allocated to the long-range building program fund in the debt service fund type to fund the bonds issued for the purchase of Virginia City and Nevada City property; and

(h) the remainder is allocated to the state general fund.

Section 17. Coal producer's license tax bond special revenue account -- pledge. There is a coal producer's license tax bond account in the state special revenue fund. Money must be deposited in the account as provided in [section 16]. Money in the account is pledged to the payment of principal and interest on all coal severance tax bonds and on all coal severance tax school bond contingency loan bonds issued pursuant to Title 17, chapter 5, part 7. Money in the account that is not needed for the annual payment of debt service on outstanding bonds must be allocated as provided in [section 16].

Section 18. Board of research and commercialization technology. (1) There is a Montana board of research and commercialization technology.

(2) The board consists of six members. One member must be appointed by the president of the senate, one member must be appointed by the minority leader of the senate, one member must be appointed by the speaker of the house, one member must be appointed by the minority leader of the house, and two members must be appointed by the governor. One of the members appointed by the governor must be an enrolled member of a Montana tribal government.

(3) A member who ceases to live in the state is disqualified from membership, and the position becomes vacant. If a vacancy occurs, the position must be filled in the manner of the original appointment.

(4) The board shall hire an executive director and shall prescribe the executive director's salary and duties.

(5) (a) The board is a quasi-judicial entity subject to the provisions of 2-15-124, except that none of the members are required to be licensed to practice law in the state.

(b) The board shall elect a presiding officer from among its members at an annual election. The presiding officer may be reelected.

(c) Except for the original appointments, members shall serve 2-year terms.

(6) The board is attached to the department of commerce for administrative purposes only.

Section 19. Meetings -- compensation. (1) The Montana board of research and commercialization technology may determine the time and place of its meetings but shall meet at least once each quarter.

(2) Each member of the board, except legislative members, is entitled to receive compensation of $50 a day plus travel expenses, pursuant to 2-18-501 through 2-18-503, for each day spent conducting official board business.

Section 20. Executive director -- qualifications. (1) The Montana board of research and commercialization technology shall hire an executive director who is responsible for:

(a) managing staff;

(b) documenting and monitoring grants approved by the board according to performance benchmarks established by the board;

(c) reporting to the legislature and governor about investments made in research and commercialization activities and developments and opportunities in diversified research arenas;

(d) monitoring and promoting activities that increase the presence of Montana products in new and expanding markets;

(e) promoting and facilitating program strategies that add value to Montana products; and

(f) any additional responsibilities determined necessary and appropriate by the board.

(2) The executive director may hire additional staff as necessary within budgetary limitations as prescribed by the board.

Section 21. Initial board appointments. In order to implement staggered terms, the original appointments to the Montana board of research and commercialization technology must be for the following terms:

(1) the appointees of the president of the senate and minority leader of the house, 1 year;

(2) the appointees of the speaker of the house and the minority leader of the senate, 2 years; and

(3) the appointees of the governor to 1-year and 2-year terms respectively.

Section 22. Coordination instruction. If Senate Bill No. 220 is passed and approved, then [section 16 of this act] must read as follows:

"Section 16. Coal producer's license tax allocation. Coal producer's license taxes collected pursuant to [section 8] must be deposited in the coal producer's license tax bond account established in [section 17] to pay debt service on outstanding bonds issued pursuant to Title 17, chapter 5, part 7. The state treasurer shall determine, on July 1 of each year, the amount necessary to meet all principal and interest payments on outstanding coal severance tax bonds and on outstanding coal severance tax school bond contingency loan bonds. If coal severance tax receipts retained in the coal severance tax bond fund and in the coal severance tax school bond contingency loan fund are insufficient to meet all principal and interest payments in that year, then the amount that is deficient must be retained in the coal producer's license tax bond account. At no time may the total amount retained in the coal severance tax bond fund, the coal severance tax school bond contingency loan fund, and the coal producer's license tax bond account exceed the amount necessary to make annual debt service payments for coal severance tax bonds and coal severance tax school bond contingency loan bonds. All coal producer's license tax revenue in excess of the amount retained for payment of annual debt service on outstanding coal severance tax bonds and coal severance tax school contingency loan bonds must be allocated as follows:

(1) for the fiscal year beginning July 1, 1999, and until June 30, 2001, $2.3 million each fiscal year is allocated to the treasure state endowment special revenue account provided for in 17-5-703(4)(b), and beginning July 1, 2001, $600,000 is allocated to that account each fiscal year;

(2) $2.5 million is allocated to the agriculture seed capital account, provided for in 90-9-301, to be used for purposes of Title 90, chapter 1, part 1, and Title 90, chapter 9, part 2;

(3) beginning July 1, 2001, $1.7 million each year is allocated to the treasure state endowment regional water system special revenue account provided for in [section 2 of Senate Bill No. 220];

(4) for fiscal year 2000, there is $450,000 allocated to the secretary of state for the Montana presidential preference primary election to be conducted in accordance with [House Bill No. 490];

(5) for fiscal year 2000, there is $150,000 and for fiscal year 2001 and future years, there is $600,000 allocated to the department of administration for tax increment financing industrial districts; and

(6) the amount remaining after the allocation in subsections (1) through (3) is allocated as follows:

(a) 33.33% is allocated to the research and commercialization expendable trust fund established in [section 2];

(b) 16.99% is allocated to the long-range building program account established in 17-7-205;

(c) 11.15% is allocated to the account in the state special revenue fund provided for in 15-35-108(3) to be used as provided in that subsection;

(d) 1.70% is allocated to the nonexpendable trust for parks acquisition or management to be used as provided in Title 23, chapter 1, part 1;

(e) 1.27% is allocated to the debt service fund type to the credit of the renewable resource loan debt service fund;

(f) 0.86% is allocated to the cultural and aesthetic trust fund provided for in 15-35-108(6);

(g) beginning July 1, 1999, and ending June 30, 2007, 1.74% is allocated to the long-range building program fund in the debt service fund type to fund the bonds issued for the purchase of Virginia City and Nevada City property; and

(h) the remainder is allocated to the state general fund."

Section 23. Codification instructions. (1) [Sections 1 through 3, 17, 19, and 20] are intended to be codified as an integral part of Title 90, chapter 3, and the provisions of Title 90, chapter 3, apply to [sections 1 through 3, 17, 19, and 20].

(2) [Sections 7 through 16] are intended to be codified as an integral part of Title 15, and the provisions of Title 15 apply to [sections 7 through 16].

(3) [Section 18] is intended to be codified as an integral part of Title 2, chapter 15, part 18, and the provisions of Title 2, chapter 15, part 18, apply to [section 18].

Section 24. Coordination instruction. If House Bill No. 490 is not passed and approved, then:

(1) [section 16(3) and section 22(4)] are void; and

(2) [section 16(4) and section 22(5)] must read as follows:

"for fiscal year 2000 and future years, there is $600,000 allocated to the department of administration for tax increment financing industrial districts."

Section 25. Effective date. [This act] is effective July 1, 1999.

- END -

I hereby certify that the within bill,

HB 0260, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 260

INTRODUCED BY D. MOOD, L. GROSFIELD, K. OHS, R. DEPRATU

BY REQUEST OF THE JOINT SELECT COMMITTEE ON JOBS AND INCOME

AN ACT ENCOURAGING ECONOMIC DEVELOPMENT THROUGH INVESTMENT IN RESEARCH AND COMMERCIALIZATION PROJECTS; ESTABLISHING A RESEARCH AND COMMERCIALIZATION EXPENDABLE TRUST FUND; ESTABLISHING A COAL PRODUCER'S LICENSE TAX; ALLOCATING COAL PRODUCER'S LICENSE TAX REVENUE; PROVIDING FOR A CREDIT AGAINST COAL SEVERANCE TAXES FOR COAL PRODUCER'S LICENSE TAXES PAID; STATUTORILY APPROPRIATING COAL PRODUCER'S LICENSE TAXES TO SUPPORT RESEARCH AND COMMERCIALIZATION CENTERS AND TO BE USED AS MATCHING FUNDS; AMENDING SECTIONS 17-5-703, 17-5-709, AND 17-7-502, MCA; AND PROVIDING AN EFFECTIVE DATE.