HOUSE BILL NO. 667

INTRODUCED BY C. HIBBARD

A BILL FOR AN ACT ENTITLED: "AN ACT ALLOWING CERTAIN RURAL FOREST LAND CONSISTING OF CONTIGUOUS LAND OF 5 ACRES OR MORE BUT LESS THAN 15 ACRES TO BE CLASSIFIED AND TAXED AS FOREST LAND; PROVIDING A DEFINITION OF "RURAL FOREST LAND"; REQUIRING APPROVAL OF A FOREST MANAGEMENT PLAN BY THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION TO QUALIFY LAND AS RURAL FOREST LAND; REQUIRING THAT A FOREST MANAGEMENT PLAN BE SUBMITTED EVERY 5 YEARS TO QUALIFY LAND AS FOREST LAND; REQUIRING A $125 APPLICATION FEE AT THE TIME THE FOREST MANAGEMENT PLAN IS SUBMITTED; PROVIDING FOR THE DISTRIBUTION OF FEE REVENUE; PROVIDING A STATUTORY APPROPRIATION; AND AMENDING SECTIONS 15-44-102 AND 17-7-502, MCA."

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

Section 1. Section 15-44-102, MCA, is amended to read:

"15-44-102. Definitions. For the purposes of this part, unless the context requires otherwise, the following definitions apply:

(1) "Culmination of mean annual increment" means the point of optimum net wood production on an acre of forest land.

(2) "Cultivated Christmas trees" means Christmas trees that are grown on land prepared by intensive cultivation and tilling, such as by plowing or turning over the soil, and on which all unwanted plant growth is controlled for the exclusive purpose of raising Christmas trees.

(3) "Department" means the department of revenue.

(4) "Forest" means forest land and the timber on the land.

(5) "Forest land" means, except as provided in subsection (10), contiguous land of 15 acres or more in one ownership that is capable of producing timber that can be harvested in commercial quantity and is producing timber unless the trees have been removed through harvest, including clearcuts, or by natural disaster, including but not limited to fire. Forest land includes land:

(a) that has not been converted to another use;

(b) on which the annual net wood production equals or exceeds 25 cubic feet an acre at the culmination of mean annual increment; and

(c) rural forest land as defined in subsection (10), provided that the land satisfies the conditions set forth in [section 2].

(6) "Forest productivity value" means the value of forest land for assessment purposes, which value is determined only on the basis of its potential to produce timber, other forest products, and associated agricultural products through an income approach provided for in 15-44-103.

(7) "Harvest" means an activity related to the cutting or removal of timber for use or sale as a forest product.

(8) "Landowner" means an individual, corporation, association, company, firm, joint venture, syndicate, or trust.

(9) "Mean annual net wood production" means the average net usable volume of wood that 1 acre of forest land will grow in 1 year under average current and actual forest conditions and under current and reasonable management practices for each forest valuation zone established under 15-44-103.

(10) "Rural forest land" means land of 5 acres or more but less than 15 acres in one ownership that would otherwise be considered as forest land if not for the acreage requirement referred to in subsection (5). Rural forest land includes shelterbelts and windbreaks.

(11) "Stumpage value" means the amount that timber would sell for under an arm's-length transaction made in the ordinary course of business, expressed in terms of dollars per unit of measure.

(12) "Timber" means all wood growth on privately owned land, mature or immature, alive or dead, standing or down, that is capable of furnishing raw material used in the manufacture of lumber or other forest products. The term does not include cultivated Christmas trees."

NEW SECTION. Section 2. Eligibility of rural forest land for taxation as forest land. (1) Rural forest land that satisfies the conditions of this section must be classified and assessed as forest land under the provisions of 15-44-103.

(2) To qualify as forest land, rural forest land:

(a) must be maintained in one ownership for at least 1 year;

(b) must have a dedicated use that is evidenced by a 5-year forest management plan that has been developed through an accepted forest management program, including but not limited to the forest stewardship program or tree farm program, or that has been developed by a professional forest consultant. The forest management plan must be approved by the department of natural resources and conservation. The department of natural resources and conservation shall certify in writing to the department that it has approved the forest management plan.

(c) must be located outside the incorporated limits of a city or town;

(d) may not be part of a platted subdivision that is filed with the county clerk and recorder;

(e) may not contain an improvement greater than 500 square feet in area.

(3) (a) A rural forest landowner desiring to have the landowner's land classified as forest land shall pay a $125 application fee to the department of natural resources and conservation at the time the landowner submits the forest management plan. The forest management plan must be made before March 15 of the year that the landowner seeks to qualify the land as forest land.

(b) Rural forest land must be classified and assessed as forest land for the 5-year period covered by the forest management plan, provided that the land has not been converted to another use.

(c) At the end of the 5-year period, the rural forest landowner shall submit a new forest management plan as provided in this section to maintain the classification and assessment of rural forest land as forest land.

NEW SECTION. Section 3. Distribution of fee revenue. Application fee revenue collected under [section 2] 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 natural resources and conservation for distribution as follows:

(1) one-third of the annual fee revenue to the department of natural resources and conservation to administer the evaluation of the forest management plan and to enhance direct service forestry assistance to nonindustrial private forest land owners;

(2) two-thirds of the annual fee revenue to the Montana cooperative extension service of Montana state university-Bozeman to provide forestry training to county extension agents and to provide assistance to landowners of small parcels of land in the development of forest management plans.

Section 4. 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; [section 3]; 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; 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; [section 3]; 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; 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.)"

NEW SECTION. Section 5. Codification instruction. [Section 2 and 3] are intended to be codified as an integral part of Title 15, chapter 44, part 1, and the provisions of Title 15, chapter 44, part 1, apply to [sections 2 and 3].

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