HOUSE BILL NO. 273
INTRODUCED BY B. RANEY, L. GROSFIELD, B. BARNHART, G. BECK, J. BOHLINGER,
C. CHRISTIAENS, J. COBB, B. CRIPPEN, S. DOHERTY, D. EWER, S. GALLUS, K. GALVIN-HALCRO,
M. GUGGENHEIM, J. HURDLE, R. JOHNSON, M. MCCANN, R. PECK, B. SIMON, E. SWANSON,
C. SWYSGOOD, C. TUSS
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE ALLOCATION AND USE OF THE
LODGING FACILITY USE TAX; REPLACING PERCENTAGE ALLOCATIONS WITH SPECIFIC
AMOUNTS; ELIMINATING ALLOCATIONS TO THE UNIVERSITY SYSTEM AND TO
REGIONAL NONPROFIT TOURISM CORPORATIONS; PROVIDING ALLOCATIONS TO
LOCAL GOVERNMENTS TO BE USED FOR TOURISM-RELATED PROMOTIONS,
INFRASTRUCTURE, AND SERVICES, AND PLANNING AND ZONING COSTS; PROVIDING
FOR THE CREATION OF COMMITTEES TO RECOMMEND PROJECTS; PROVIDING FOR
GRANTS TO CERTAIN LOCAL GOVERNMENTS; AMENDING SECTIONS 2-15-1816,
15-65-101, AND 15-65-121, MCA; REPEALING SECTION 15-65-122, MCA; AND PROVIDING
AN 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)(a) advise the department of commerce relative to tourism promotion;
(c)(b) advise the governor on significant matters relative to Montana's travel industry; and
(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)(c) encourage regional nonprofit tourism corporations to promote tourist activities on Indian
reservations in their regions administer the grant program provided for in [section 6].
(5) The council may modify the tourism regions established by executive order of the governor.
(6)(5) 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 15-65-101, MCA, is amended to read:
"15-65-101. Definitions. For purposes of this part, the following definitions apply:
(1) "Accommodation charge" means the fee charged by the owner or operator of a facility for use of the facility for lodging, including bath house facilities, but excluding charges for meals, transportation, entertainment, or any other similar charges.
(2) "Campground" means a place, publicly or privately owned, used for public camping where persons may camp, secure tents, or park individual recreational vehicles for camping and sleeping purposes. The term does not include that portion of a trailer court, trailer park, or mobile home park intended for occupancy by trailers or mobile homes for resident dwelling purposes for periods of 30 consecutive days or more.
(3) "Council" means the tourism advisory council established in 2-15-1816.
(4)(3) "Facility" means a building containing individual sleeping rooms or suites, providing
overnight lodging facilities for periods of less than 30 days to the general public for compensation. The
term includes a facility represented to the public as a hotel, motel, campground, resort, dormitory,
condominium inn, dude ranch, guest ranch, hostel, public lodginghouse, or bed and breakfast facility.
The term does not include any health care facility, as defined in 50-5-101, any facility owned by a
corporation organized under Title 35, chapter 2 or 3, that is used primarily by persons under the age of
18 years for camping purposes, any hotel, motel, hostel, public lodginghouse, or bed and breakfast
facility whose average daily accommodation charge for single occupancy does not exceed 60% of the
amount authorized under 2-18-501 for the actual cost of lodging for travel within the state of Montana,
or any other facility that is rented solely on a monthly basis or for a period of 30 days or more.
(5) "Nonprofit convention and visitors bureau" means a nonprofit corporation organized under
Montana law and recognized by a majority of the governing body in the city or consolidated
city-county in which the bureau is located.
(6) "Regional nonprofit tourism corporation" means a nonprofit corporation organized under
Montana law and recognized by the council as the entity for promoting tourism within one of several
regions established by executive order of the governor.
(4) "TOURISM-RELATED INFRASTRUCTURE" INCLUDES VISITOR CENTERS, REST AREAS, RESTROOMS, PARKING FACILITIES, SIGNS, MUSEUMS, TRAILS, ZOOS, PARKS, AND OTHER FACILITIES AND INFRASTRUCTURE USED BY TRAVELERS OR THAT ATTRACT TRAVELERS TO AN AREA."
Section 3. Section 15-65-121, MCA, is amended to read:
"15-65-121. (Temporary) Distribution of tax proceeds -- general fund loan authority. (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 of revenue. 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. The
appropriation for collecting and disbursing the proceeds of the tax may not exceed $300,000 $150,000.
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) (1)(d) (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 general fund. The For fiscal years ending June 30, 2000, and June 30, 2001, 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 Montana heritage preservation and development account or the
general fund 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, TO THE
UNIVERSITY SYSTEM, and to the department of fish, wildlife, and parks, as follows:
(a) 1% $700,000 $150,000 to the Montana historical society to be used for the
installation or maintenance of roadside historical signs and historic sites and for the
protection, preservation, curation, and interpretation of state park historical and
cultural resources and other state-owned historic property;
(b) 2.5% to the university system for the establishment and maintenance of a Montana
travel research program;
(B) $250,000 TO THE INSTITUTE FOR TRAVEL RESEARCH AT THE UNIVERSITY OF MONTANA-MISSOULA FOR THE ESTABLISHMENT AND MAINTENANCE OF A MONTANA TRAVEL RESEARCH PROGRAM;
(c)(b)(C) 6.5% $1 million to the department of fish, wildlife, and parks for the
maintenance of facilities in state parks and fishing access sites that have both do not
charge resident and nonresident use fees;
(d)(c)(D) 67.5% $4 million to be used directly 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; and
(e)(d)(E) (i) except as provided in subsection (1)(e)(ii), 22.5% the remainder 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 to local governments as provided in subsections (2) and (3)
(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. THE ALLOCATION IN
SUBSECTIONS (2) AND (3) MAY BE MADE ONLY IF THE COUNTY, INCLUDING CITIES AND
TOWNS WITHIN THE COUNTY, HAS GENERATED AT LEAST $15,000 IN LODGING FACILITY
USE TAX REVENUE IN THE PREVIOUS CALENDAR YEAR. THE FUNDS THAT ARE NOT
ALLOCATED TO A COUNTY, CITY, OR TOWN BECAUSE THE LOCAL GOVERNMENTS DID
NOT GENERATE THE REQUIRED AMOUNT OF LODGING FACILITY USE TAX MUST BE
ALLOCATED TO AN ACCOUNT IN THE STATE SPECIAL REVENUE FUND TO BE USED AS
PROVIDED IN [SECTION 6].
(2) If the tax provided for in this part is collected within the incorporated boundaries
of 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, town, 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 the department shall determine the ratio that
the funds collected within the city or town bears to the total amount of funds available
for distribution to local government and shall allocate that amount of funds to each
city or town.
(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 the funds provided for in this part are
collected outside of the boundaries of an incorporated city or town or in a consolidated
government, then the department shall determine the ratio that the funds collected
outside of the city or town bears to the total amount of funds available for distribution
to local government and shall allocate that amount of funds to each county or
consolidated government.
(4) (a) Subject to subsection (4)(b), funds FUNDS received by a local government
pursuant to subsection (2) or (3) must be used for tourism promotion, tourism-related
infrastructure, and tourism-related local government services. A local government
may use the funds for grants to nonprofit organizations for purposes that qualify under
this subsection.
(b) A local government may use up to 30% of the funds received pursuant to subsection
(2) or (3) for planning and zoning-related costs. (Terminates July 1, 2001--sec. 23(3), Ch.
469, L. 1997.)
15-65-121. (Effective July 1, 2001) Distribution of tax proceeds -- general fund loan
authority. (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 of revenue. 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. The appropriation for
collecting and disbursing the proceeds of the tax may not exceed $300,000 $150,000.
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) (1)(d) (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 general fund. The balance
of the tax proceeds received each reporting period and not deducted pursuant to the
expenditure appropriation or deposited in the general fund 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, TO THE
UNIVERSITY SYSTEM, and to the department of fish, wildlife, and parks, as follows:
(a) 1% $700,000 $150,000 to the Montana historical society to be used for the installation or
maintenance of roadside historical signs and historic sites and for the protection, preservation, curation,
and interpretation of state park historical and cultural resources and other state-owned historic
property;
(b) 2.5% to the university system for the establishment and maintenance of a Montana travel
research program;
(B) $250,000 TO THE INSTITUTE FOR TRAVEL RESEARCH AT THE UNIVERSITY OF MONTANA-MISSOULA FOR THE ESTABLISHMENT AND MAINTENANCE OF A MONTANA TRAVEL RESEARCH PROGRAM;
(c)(b)(C) 6.5% $1 million to the department of fish, wildlife, and parks for the maintenance of
facilities in state parks and fishing access sites that have both do not charge resident and nonresident
use fees;
(d)(c)(D) 67.5% $4 million to be used directly 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; and
(e)(d)(E) (i) except as provided in subsection (1)(e)(ii), 22.5% the remainder 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 local governments as provided in subsections
(2) and (3); 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. THE ALLOCATION
IN SUBSECTIONS (2) AND (3) MAY BE MADE ONLY IF THE COUNTY, INCLUDING CITIES
AND TOWNS WITHIN THE COUNTY, HAS GENERATED AT LEAST $15,000 IN LODGING
FACILITY USE TAX REVENUE IN THE PREVIOUS CALENDAR YEAR. THE FUNDS THAT
ARE NOT ALLOCATED TO A COUNTY, CITY, OR TOWN BECAUSE THE LOCAL
GOVERNMENTS DID NOT GENERATE THE REQUIRED AMOUNT OF LODGING FACILITY
USE TAX MUST BE ALLOCATED TO AN ACCOUNT IN THE STATE SPECIAL REVENUE
FUND TO BE USED AS PROVIDED IN [SECTION 6].
(2) If the tax provided for in this part is collected within the incorporated boundaries of 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 town, 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 the department shall determine the ratio
that the funds collected within the city or town bears to the total amount of funds available for
distribution to local government and shall allocate that amount of funds to each city or town.
(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 the funds
provided for in this part are collected outside of the boundaries of an incorporated city or town or in a
consolidated government, then the department shall determine the ratio that the funds collected outside
of the city or town bears to the total amount of funds available for distribution to local government and
shall allocate that amount of funds to each county or consolidated government.
(4) (a) Subject to subsection (4)(b), funds FUNDS received by a local government pursuant to
subsection (2) or (3) must be used for tourism promotion, tourism-related infrastructure, and
tourism-related local government services. A local government may use the funds for grants to
nonprofit organizations for purposes that qualify under this subsection.
(b) A local government may use up to 30% of the funds received pursuant to subsection (2) or (3)
for planning and zoning-related costs."
NEW SECTION. SECTION 4. LOCAL TOURISM RESOURCE PANEL -- MEMBERSHIP -- FUNCTIONS. (1)(A) A LOCAL GOVERNMENT RECEIVING FUNDS UNDER 15-65-121 SHALL CREATE A LOCAL TOURISM RESOURCE PANEL. THE PANEL MUST CONSIST OF FIVE MEMBERS APPOINTED BY THE GOVERNING BODY AND MUST INCLUDE THE FOLLOWING:
(I) A MEMBER REPRESENTING THE LODGING INDUSTRY IN THAT JURISDICTION;
(II) A NONELECTED EMPLOYEE OF THE LOCAL GOVERNMENT FAMILIAR WITH LOCAL TOURISM-RELATED INFRASTRUCTURE NEEDS;
(III) A LOCAL RETAIL BUSINESS PERSON;
(IV) A PERSON FAMILIAR WITH AREA ATTRACTIONS AND THE INFRASTRUCTURE AND SERVICE NEEDS OF THOSE ATTRACTIONS; AND
(V) A PERSON FAMILIAR WITH LOCAL PROMOTIONAL NEEDS.
(B) ONLY ONE LOCAL GOVERNMENT EMPLOYEE MAY SERVE ON THE PANEL.
(2) THE PANEL SHALL ACCEPT APPLICATIONS FOR GRANTS TO FUND REQUESTS UNDER THIS PART FROM ANY PERSON OR NONPROFIT ENTITY OR THE LOCAL GOVERNMENT. THE PANEL SHALL EVALUATE APPLICATIONS TO DETERMINE THOSE THAT MEET THE INTENT OF THIS PART, PRIORITIZE THE APPLICATIONS, AND FORWARD THE APPLICATIONS TO THE LOCAL GOVERNMENT FOR REVIEW, APPROVAL, AND THE GRANTING OF MONEY. THE PANEL MAY NOT SUBMIT AN APPLICATION FOR APPROVAL UNLESS IT IS APPROVED BY AT LEAST THREE MEMBERS OF THE PANEL.
(3) THE LOCAL GOVERNMENT MAY NOT AWARD A GRANT UNLESS THE APPLICATION HAS BEEN REVIEWED AND APPROVED BY THE PANEL. HOWEVER, THE LOCAL GOVERNMENT IS NOT REQUIRED TO APPROVE GRANTS RECOMMENDED BY THE PANEL.
NEW SECTION. SECTION 5. INSTITUTE FOR TRAVEL RESEARCH -- COMMITTEE. (1) THERE IS AN INSTITUTE FOR TRAVEL RESEARCH AT THE UNIVERSITY OF MONTANA-MISSOULA.
(2) THE COMMISSIONER OF HIGHER EDUCATION SHALL APPOINT A NINE-MEMBER COMMITTEE TO RECOMMEND TRAVEL RESEARCH PROJECTS TO THE INSTITUTE. THE COMMITTEE MUST CONSIST OF REPRESENTATIVES OF:
(A) THE TOURISM ADVISORY COUNCIL;
(B) THE DEPARTMENT OF FISH, WILDLIFE, AND PARKS;
(C) THE MONTANA HISTORICAL SOCIETY;
(D) THE COOPERATIVE EXTENSION SERVICE;
(E) THE BUREAU OF BUSINESS AND ECONOMIC RESEARCH;
(F) THE LODGING INDUSTRY;
(G) THE ENVIRONMENTAL STUDIES GRADUATE PROGRAM AT THE UNIVERSITY OF MONTANA-MISSOULA;
(H) MONTANA RESIDENT RECREATIONISTS; AND
(I) RESIDENT LANDOWNERS WHOSE PROPERTY IS IMPACTED BY TOURISM.
NEW SECTION. SECTION 6. VISITOR CENTER AND PRIMITIVE CAMPING GRANTS. (1) THE TOURISM ADVISORY COUNCIL SHALL USE THE FUNDS ALLOCATED UNDER 15-65-121(2) FOR THE PURPOSE OF MAKING GRANTS TO COUNTIES, CITIES, AND TOWNS THAT DO NOT RECEIVE AN ALLOCATION OF LODGING FACILITY USE TAXES.
(2) GRANTS MUST BE USED FOR VISITOR INFORMATION CENTERS OR FOR THE DEVELOPMENT AND OPERATION OF PRIMITIVE CAMPGROUNDS. PRIMITIVE CAMPGROUNDS ARE SUBJECT TO THE LIMITS ON DEVELOPMENT PROVIDED FOR PRIMITIVE PARKS IN 23-1-117.
(3) THE TOURISM ADVISORY COUNCIL SHALL DEVELOP PROCEDURES FOR THE APPLICATION FOR AND AWARDING OF GRANTS.
NEW SECTION. Section 7. Repealer. Section 15-65-122, MCA, is repealed.
NEW SECTION. SECTION 8. CODIFICATION INSTRUCTION. [SECTIONS 4 THROUGH 6] ARE INTENDED TO BE CODIFIED AS AN INTEGRAL PART OF TITLE 15, CHAPTER 65, PART 1, AND THE PROVISIONS OF TITLE 15, CHAPTER 65, PART 1, APPLY TO [SECTIONS 4 THROUGH 6].
NEW SECTION. Section 9. Effective date. [This act] is effective July 1, 1999.
- END -
Latest Version of HB 273 (HB0273.02)
Processed for the Web on February 19, 1999 (2:26PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of the bill for the bill's primary sponsor.
Status of this Bill | 1999 Session | Leg. Branch Home
This bill in WP 5.1 | All versions of all bills in WP 5.1
Prepared by Montana Legislative Services
(406)444-3064