Senate Bill No. 185
Introduced By _______________________________________________________________________________
A Bill for an Act entitled: "An Act eliminating as of January 1, 1998, the workers' compensation old fund liability tax on employers and employees; providing for a transfer of the fund balance in the workers' compensation bond repayment fund to the state fund; amending sections 15-30-207, 17-7-502, 39-71-406, and 39-71-2321, MCA; repealing sections 39-71-2351, 39-71-2352, 39-71-2354, 39-71-2355, 39-71-2501, 39-71-2502, 39-71-2503, 39-71-2504, 39-71-2505, and 39-71-2506, MCA; and providing a delayed effective date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 15-30-207, MCA, is amended to read:
"15-30-207. Annual statement by employer. (1)
Every Each employer shall, on or before February 28 in each year, file
with the department a wage and tax statement for each employee in such the form and summarizing such the information as
that the department requires, including the total wages paid to the employee during the preceding calendar year or any part
thereof of the preceding calendar year and showing the total amount of the federal income tax deducted and withheld from
such wages and the total amount of the tax deducted and withheld therefrom under the provisions of 15-30-201 through
15-30-209 and 39-71-2503.
(2) The annual statement filed by an employer with respect to the wage payments reported constitutes full compliance with
the requirements of 15-30-301 relating to the duties of information agents, and
no additional information return is not
required with respect to such the wage payments.
(3) In addition to any other penalty provided by law, the failure of an employer to furnish a statement, as required by
subsection (1), subjects the employer to a penalty of $5 for each failure
, provided that; however, the minimum penalty for
failure to file the statements required on or before February 28 of each year shall be is $50. This penalty may be abated by
the department upon a showing of good cause by the employer. The penalty may be collected in the same manner as are
other tax debts."
Section 2. Section 17-7-502, MCA, is amended to read:
"17-7-502. 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: 2-9-202; 2-17-105; 2-18-812; 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; 15-37-117;
15-38-202; 15-65-121; 15-70-101; 16-1-404; 16-1-410; 16-1-411; 16-11-308; 17-3-106; 17-3-212; 17-5-404; 17-5-424;
17-5-804; 17-6-101; 17-6-201; 17-7-304; 18-11-112; 19-2-502; 19-6-709; 19-9-1007; 19-17-301; 19-18-512; 19-18-513;
19-18-606; 19-19-205; 19-19-305; 19-19-506; 20-8-107; 20-8-111; 20-9-361; 20-26-1503; 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;
39-71-2504; 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; 75-11-313; 76-12-123; 80-2-103; 80-2-222; 80-4-416; 81-5-111; 82-11-136; 82-11-161;
85-1-220; 85-20-402; 90-3-301; 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. 7(2), Ch. 29, L. 1995, the inclusion of 15-30-195 terminates July 1, 2001.)"
Section 3. Section 39-71-406, MCA, is amended to read:
"39-71-406. Deduction from wages of any part of premium a misdemeanor. It is unlawful for the employer to deduct
or obtain any part of any premium required to be paid by this chapter from the wages or earnings of the employer's workers,
and the making or attempt to make
any such the deduction is a misdemeanor. The workers' compensation old fund liability
tax under 39-71-2503 is not a premium for the purpose of this section."
Section 4. Section 39-71-2321, MCA, is amended to read:
"39-71-2321. What to be deposited in state fund. (1)
(a) All premiums, penalties, recoveries by subrogation, interest
earned upon money belonging to the state fund, and securities acquired by or through use of money must be deposited in
the state fund. They The money must be separated into two accounts based upon whether they relate it relates to claims for
injuries resulting from accidents that occurred before July 1, 1990, or claims for injuries resulting from accidents that occur
on or after that date. (b)(2) All funds deposited in the state fund are statutorily appropriated as provided in 17-7-502. (2) The proceeds of bonds issued and loans given to the state fund under 39-71-2354 and 39-71-2355 must be deposited in
the account for claims for injuries resulting from accidents that occurred before July 1, 1990."
NEW SECTION. Section 5. Repealer. Sections 39-71-2351, 39-71-2352, 39-71-2354, 39-71-2355, 39-71-2501, 39-71-2502, 39-71-2503, 39-71-2504, 39-71-2505, and 39-71-2506, MCA, are repealed.
NEW SECTION. Section 6. Transfer of funds. Any balance remaining in the workers' compensation bond repayment fund as of June 30, 1997, must be transferred on [the effective date of this act] to the accounts established for the state fund in 39-71-2321 to pay claims for injuries resulting from accidents that occurred before July 1, 1990, or to pay claims for injuries resulting from accidents that occur on or after that date.
NEW SECTION. Section 7. Effective date. [This act] is effective January 1, 1998.