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HOUSE BILL NO. 365
INTRODUCED BY K. DUDIK
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR AN AGRITOURISM PILOT PROGRAM; REVISING THE DISTRIBUTION OF THE LODGING FACILITY USE TAX TO PROVIDE FUNDING FOR THE AGRITOURISM PILOT PROGRAM, INCLUDING GRANTS, LOANS, AND PROGRAM ADMINISTRATION; PROVIDING THAT THE AGRITOURISM PILOT PROGRAM IS ADMINISTERED BY THE AGRICULTURE DEVELOPMENT COUNCIL; EXPANDING A STATUTORY APPROPRIATION; AMENDING SECTIONS 15-65-121, 90-9-202, 90-9-301, AND 90-9-306, MCA; AND PROVIDING AN EFFECTIVE DATE AND A TERMINATION DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-65-121, MCA, is amended to read:
"15-65-121. Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 17-2-124, 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 17-2-124 and as provided in subsections (2)(a) through (2)(g) 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 department shall distribute the portion of the 4% that was paid with federal funds to the agency that made the in-state lodging expenditure and deposit 30% of the amount deducted less the portion paid with federal funds in the state general fund. The amount of $400,000 each year must be deposited in the Montana heritage preservation and development account provided for in 22-3-1004. The amount of $500,000 each year must be deposited in the agriculture seed capital account provided for in 90-9-301 and used for the agritourism pilot program.
(2) The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation, deposited in the state general fund, distributed to agencies that paid the tax with federal funds, or deposited in the heritage preservation and development account 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 interpretation state special revenue account, 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;
(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) 64.4% to be used directly by the department of commerce;
(e) (i) except as provided in subsection (2)(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, consolidated city-county, resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-county, resort area, or resort area district;
(f) 0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal economic development commission established in 90-1-131 for activities in the Indian tourism region; and
(g) 2.6% to the Montana historical interpretation state special revenue account established in 22-3-115.
(3) If a city, consolidated city-county, resort area, or resort area district 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, consolidated city-county, resort area, or resort area district is located.
(4) 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.
(5) The tax proceeds received that are transferred to a state special revenue account pursuant to subsections (2)(a) through (2)(e) are statutorily appropriated to the entities as provided in 17-7-502.
(6) The tax proceeds received that are transferred to the Montana historical interpretation state special revenue account pursuant to subsection (2)(g) are subject to appropriation by the legislature."
Section 2. Section 90-9-202, MCA, is amended to read:
"90-9-202. Powers and duties of council. (1) The council shall:
(a) establish policies and priorities to enhance the future development of agriculture in Montana, including the Indian reservations in the state;
(b) make loans or grants, pursuant to the provisions of Title 90, chapter 9, part 3,:
(i) that have a short-term or long-term ability to stimulate agriculture development and diversification in rural, urban, and tribal settings in Montana; and
(ii) for a pilot program to promote agritourism operations that bring visitors to farm and ranch operations; and
(c) accept grants or receive devises of money or property for use in making the loans or grants authorized by this chapter.
(2) The council may:
(a) defer or forgive any loan in whole or in part; and
(b) forgive any accrued interest in whole or in part."
Section 3. Section 90-9-301, MCA, is amended to read:
"90-9-301. Agriculture seed capital account -- matching funds. (1) There is an agriculture seed capital account administered by the council. Money received by the council under 15-65-121 and 90-9-306 must be deposited in this account.
(2) The council may loan or grant money from the agriculture seed capital account, pursuant to the provisions of 90-9-308 through 90-9-311.
(3) The amount deposited pursuant to 15-65-121(1) must be accounted for separately within the account and used for grants, loans, and program administration for the agritourism pilot program."
Section 4. Section 90-9-306, MCA, is amended to read:
"90-9-306. Appropriation authority and funding -- prohibitions. (1) The council may accept and expend the funds that it receives from 15-65-121(1), grants, donations, or other private or public income, including amounts repaid as principal and interest on loans made by the council. These funds are statutorily appropriated to the council, as provided in 17-7-502, for the purposes of this chapter, except that expenditures for actual and necessary expenses required for the efficient administration of this chapter must be made from temporary appropriations, as described in 17-7-501(1) or (2), made for that purpose.
(2) Council members may not personally apply for or receive council funds. If an organization with which a member is affiliated applies for council funds, the member shall disclose the nature of the affiliation and, if the council member is a board member or officer of the organization, may not participate in the decision of the council regarding the application."
NEW SECTION. Section 5. Effective date. [This act] is effective July 1, 2019.
NEW SECTION. Section 6. Termination. [This act] terminates June 30, 2028.
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Latest Version of HB 365 (HB0365.01)
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