2001 Montana Legislature

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SENATE BILL NO. 391

INTRODUCED BY L. GROSFIELD



A BILL FOR AN ACT ENTITLED: "AN ACT CLARIFYING THAT ACADEMIC FREEDOM APPLIES TO UNIVERSITY TOURISM RESEARCH; REMOVING THE AUTHORITY OF THE TOURISM ADVISORY COUNCIL OVER TRAVEL RESEARCH; CLARIFYING THE PURPOSE OF RESEARCH TO BE PERFORMED BY THE TRAVEL RESEARCH PROGRAM AT THE UNIVERSITY OF MONTANA-MISSOULA; AMENDING SECTIONS 2-15-1816 AND 15-65-121, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."



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



     Section 1.  Section 2-15-1816, MCA, is amended to read:

     "2-15-1816.  Tourism advisory council. (1) There is created a tourism advisory council.

     (2)  The council is composed of not less than 12 members appointed by the governor from Montana's private sector travel industry and includes at least one member from Indian tribal governments, with representation from each tourism region initially established by executive order of the governor and as may be modified by the council under subsection (5).

     (3)  Members of the council shall serve staggered 3-year terms, subject to replacement at the discretion of the governor. The governor shall designate four of the initial members to serve 1-year terms and four of the initial members to serve 2-year terms.

     (4)  The council shall:

     (a)  oversee distribution of funds to regional nonprofit tourism corporations for tourism promotion and to nonprofit convention and visitors bureaus in accordance with Title 15, chapter 65, part 1, and this section;

     (b)  advise the department of commerce relative to tourism promotion;

     (c)  advise the governor on significant matters relative to Montana's travel industry;

     (d)  prescribe allowable administrative expenses for which accommodation tax proceeds may be used by regional nonprofit tourism corporations and nonprofit convention and visitors bureaus;

     (e)  direct the university system regarding Montana travel research;

     (f)  approve all travel research programs prior to their being undertaken; and

     (g)(e)  encourage regional nonprofit tourism corporations to promote tourist activities on Indian reservations in their regions.

     (5)  The council may modify the tourism regions established by executive order of the governor.

     (6)  The department of commerce shall adopt such rules as that may be necessary to implement and administer Title 15, chapter 65, part 1, and this section."



     Section 2.  Section 15-65-121, MCA, is amended to read:

     "15-65-121.  (Temporary) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The amount of $400,000 each year must be deposited in the Montana heritage preservation and development account provided for in 22-3-1004. On July 1, 1997, the amount of $45,000 is transferred to the department of commerce for purposes of a grant to the Fort Peck interpretive center. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies or in the Montana heritage preservation and development account 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 commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:

     (a)  1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;

     (b)  2.5% to the university system for the establishment and maintenance of a Montana travel research program that conducts:

     (i) research for the purpose of assisting the recreation and tourism industry relative to planning, marketing, and management; and

     (ii) research for the purpose of assisting policymakers relative to proposals and decisionmaking on recreation and tourism policy;

     (c)  6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;

     (d)  67.5% to be used directly by the department of commerce; and

     (e)  (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and

     (ii) if 22.5% of the proceeds collected annually within the limits of a city or consolidated city-county exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city or consolidated city-county is located, to be distributed to the nonprofit convention and visitors bureau in that city or consolidated city-county.

     (2)  If a city or consolidated city-county qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city or consolidated city-county is located.

     (3)  If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials.

     (4) At least once each year, the university of Montana-Missoula shall consult with policymakers and private and governmental groups involved with or interested in tourism, heritage tourism, recreation, and the travel industry in Montana for the purpose of soliciting recommendations concerning research needs relative to assisting policymakers and the recreation and tourism industry with:

     (a) planning, marketing, and management information; and

     (b) information relative to the status, needs, and social and economic impacts of Montana recreation and tourism, including heritage tourism. (Terminates July 1, 2001--sec. 23(3), Ch. 469, L. 1997.)

     15-65-121.  (Effective July 1, 2001) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 15-1-501, be deposited in an account in the state special revenue fund to the credit of the department. The department may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 15-1-501 and as provided in subsections (1)(a) through (1)(e) of this section, the department shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The amount deducted must be deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies. The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or deposited in the fund or funds from which in-state lodging expenditures were paid by state agencies 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 commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials, to the Montana historical society, to the university system, and to the department of fish, wildlife, and parks, as follows:

     (a)  1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;

     (b)  2.5% to the university system for the establishment and maintenance of a Montana travel research program that conducts:

     (i) research for the purpose of assisting the recreation and tourism industry relative to planning, marketing, and management; and

     (ii) research for the purpose of assisting policymakers relative to proposals and decisionmaking on recreation and tourism policy;

     (c)  6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;

     (d)  67.5% to be used directly by the department of commerce; and

     (e)  (i) except as provided in subsection (1)(e)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and

     (ii) if 22.5% of the proceeds collected annually within the limits of a city or consolidated city-county exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city or consolidated city-county is located, to be distributed to the nonprofit convention and visitors bureau in that city or consolidated city-county.

     (2)  If a city or consolidated city-county qualifies under this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city or consolidated city-county is located.

     (3)  If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials.

     (4) At least once each year, the university of Montana-Missoula shall consult with policymakers and private and governmental groups involved with or interested in tourism, heritage tourism, recreation, and the travel industry in Montana for the purpose of soliciting recommendations concerning research needs relative to assisting policymakers and the recreation and tourism industry with:

     (a) planning, marketing, and management information; and

     (b) information relative to the status, needs, and social and economic impacts of Montana recreation and tourism, including heritage tourism."



     NEW SECTION.  Section 3.  Effective date. [This act] is effective on passage and approval.

- END -




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