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MONTANA
STATE

This "cover" page added by the Internet Archive for formatting purposes

bXER INFORMATION PAMPHLET

tevERy VOTE

C0^HTSI

:7A7!r DOCUMENTS COLLECTION

JUL 1 0 mi —

MONTANA STATE LIBRARY

1515 E. 6th AVE.
HELENA, MONTANA

The cover's drawing was done by Winston Parker of Rossiter School, Helena,
winner of the Voter Information Pamphlet cover contest.

What's Inside

hiformation on:

Page

The BEST program

County election administrators

Vote on Novembi

,1 Vl;...

The political parties in Montana

6-8

Arguments

Text

Arguments

Text

Constitutional Amendment 34

29 Legislative Referendum 1 16

Constitutional Amendment 35

30 Initiative 143

Legislative Referendum 1 1 5

Published by Secretary of State Mike Cooney

P.O. Box 202801 - Helena, Montana 59620 - Phone: 1-888-884- VOTE (8683)

Web Site: www.state.mt.us/sos/

MONTANA STATE LIBRARY

3 0864 1001 5391 8

Montana's B.E.S.T.

Because Your Vote DOES Count.

Your Vote Oo« Count...

Did you know since the adoption of our State's Constitution in 1972, less than twenty votes
have decided forty-five legislative races? In 1984, one legislative candidate ended up
winning his seat thanks to a coin toss after the election results showed a tie vote. Our
current Speaker of the House in the Montana Legislature won his first election that same
year by a total of five votes. Lee AAetcalf won his party's nomination in 1952 for U.S.
Representative for the First Congressional District by all of fifty-five votes in a hotly
contested five-way primary contest. Each vote is important and does make a difference!

After Montana's low voter turnout in the 1998 primary election, the BEST program, or
Building Excellent Statewide Turnout was started. The program's goal was to increase voter
awareness and voter turnout across the state. Montana's voters were constantly reminded
to vote in the general election every time they went to a fast food restaurant, grocery
store, and even the movies. After the general election in 1998, Montana registered voters
stormed the polls, placing Montana second for the national voter turnout behind Minnesota's
thrilling race with Jesse Ventura.

The BEST program was again implemented this year in hopes of increasing voter turnout for
the General Election on November T'^ . The program worked with businesses, the media, and
organizations who could help get Montanan's excited about going to the polls as well as
focusing on kids, who represent Montana's future.

I would like to thank everyone for their time, their efforts and their dedication. Your
response and willingness to help has been outstanding.

Now it's up to each of us...

Won't you join ui November f and help Montana become the BE5T?

Sincerely,

Secretary of State Mike Cooney

Dear Montana Voter:

Montana voters will be making many important
decisions at the 2000 general elections. From voting for
a new President to deciding whether to amend our
state constitution, there are many significant decisions
to be made in the poll booth.

I have put together the Voter Information Pamphlet
(VIP) to provide you with information you can use to

learn more about the different ballot measures upon

which you will be voting this November 7th. Please feel free to mark up your
copy of the VIP and remember that you may take it into the polls with you when
you go to vote.

For more information on the elections, you can go to my web site at:
http://state.mt.us/sos/. You also may contact my office directly on our toll free
hot-line for information on registering and voting; that number is 1-888-884-
VOTE (8683).

One new item you will find in the VIP is a statement of purpose for each of the
six political parties in Montana. Each party wrote their own statements (which
do not necessarily represent the views of the State of Montana) and provided
contact information for those of you wanting to get more information on any of
the parties.

Every election year I hold a contest among the elementary school students in
Montana to decide what cover will go on the Voter Information Pamphlet. The
winner is chosen by a statewide vote with people voting either over the internet
or in my office. This year's winner is Winston Parker from Rossiter School in
Helena. Winston's winning drawing and slogan appear on the cover. As we saw
from the many close races this primary, Winston is right... every vote does count.

Therefore, I hope that all Montanans take the opportunity to vote on November
7th and participate in one of the most exciting elections we've had in Montana in
a long time.

See you at thepolls!

Mike Cooney
Secretary of State

What is the Voter Information Pamphlet?

The Voter Information Pamphlet (or VIP) is a publication printed by the Secretary of State to
provide Montana voters with information on statewide ballot measures. The Secretary of State
distributes the pamphlets to the county election administrators who mail a VIP to each household
with an active registered voter.

Who writes the information in the VIP?

The Attorney General writes an explanatory statement for each measure. The statement, not to
exceed 100 words, is a true and impartial explanation of the purpose of each measure in easy to
understand language. The Attorney General also prepares the fiscal statement, if necessary, and
for and against statements for each issue.

Pro and con arguments and rebuttals are written by the members of the appropriate committee.
Arguments are limited to one page and rebuttals to a half page. All arguments and rebuttals are
printed exactly as filed by the committees and do not necessarily represent the views of the
Secretary of State or the State of Montana.

Who can vote by absentee ballot?

Thanks to a law change in 1999, any voter can now request an absentee ballot. A reason to vote
absentee, such as expecting to be absent from the county, is no longer required.

An absentee ballot may be requested from your county election administrator no later than noon
the day before the election (or by noon on election day if you have a sudden health emergency).
The request (or application) for a ballot must be in writing.

How can I find out if I am registered?

If you are not sure if you are or where you are registered, you should contact your county
election administrator. (See page five for addresses and phone numbers for all the county election
administrators.) The registration deadline for the general election is October 1 0th.

Who is eligible to register?

Anyone who is a citizen of the U.S.. at least 18 years of age, and a resident of Montana and the
county for 30 days by the date of the election may register to vote.

Can I get the VIP in a different format?

For more information on the elections, you can go to the Secretary of State's web site at:
http://state.mt.us/sos/. You also may contact the office directly on the toll free hot-line set up
to answer questions on registering and voting; that number is 1-888-884-VOTE (8683). Audio
versions of the VIP are available at local libraries throughout the state.

If you would like the VIP in large-print or in an alternative format, please feel free to contact
the Secretary of State's office with your request. The Secretary of State has a
telecommunications device for the deaf (TDD) at (406) 444-9068.

NAME

Rosalee B Richardson
Cyndy R Maxwell
Sandra L Boardman
Elaine Graveley
JoAnn Croft
Pamela Castleberry
Rita Hudak
JoAnn L Johnson
Beth Ann Milligan
Carol Malone
Maurine Lenhardt
Pete Boyce
Marv Lee Dietz
Kathy Fleharty
Susan Haverfield
Shelles Vance
Leslie Guesanburu
Gail Davis
Kathleen Ott
Jo Bayer
Diane E Mellem
Bonnie Ramey
Amanda H Kell>
Kathie Newgard
Paulette DeHart
Maureen Cicon
Coral M Cummings
Peggy Kaatz Stemler
Leanne K Switzer
Joyce S Wofford
Katherine Jasper
Vickie Zeier
Jane E Mang
Denise Nelson
Mary L Brindley
Laurel N Mines
Janice Hoppes
Karen D Amende
Karia M Rydeen
Lisa Kimmet
Betty Lund
Elmina J Cook
Cheryl A Hansen
Geraldine Custer
Pat Ingraham
Milt Hovland
Bill Driscoll
Janet R Parkins
Sherr\ Bjorndal
Stella Plachetka
Marj' Ann Harwood
Ruth L Baker
Lynne Nyquist
Mary E Miller
Marlene J Blome
Duane Winslow

ion Administrators

Area Code 406

COUNTY

ADDRESS

CITY

ZIP

PHONE

Beaverhead

2 South Pacific Street

Dillon

59725

683-2642

Big Horn

PO Box 908

Hardin

59034

665-9730

Blaine

Box 278

Chinook

59523

357-3240

Broadwater

5 1 5 Broadway Street

Townsend

59644

266-3443

Carbon

Box 887

Red Lodge

59068

446-1220

Carter

Box 315

Ekalaka

59324

775-8749

Cascade

Box 2305

Great Falls

59403

454-6803

Chouteau

Box 459

Fort Benton

59442

622-5151

Custer

1010 Main

Miles City

59301

233-3457

Daniels

Box 247

Scobey

59263

487-5561

Dawson

207 West Bell

Glendive

59330

377-3058

Deer Lodge

800 South Main

Anaconda

5971 1

563-4060

Fallon

Box 846

Baker

59313

778-7106

Fergus

712 West Main

Lewistown

59457

538-5242

Flathead

800 South Mam

Kalispell

59901

758-5536

Gallatin

311 WMain, Room 204

Bozeman

, 59715

582-3060

Garfield

Box 7

Jordan

59337

557-2760

Glacier

512 East Main

Cut Bank

59427

873-5063x17

Golden Valley

POBox 10

Ryegate

59074

568-2231

Granite

Box 925

Philipsburg

59858

859-3771

Hill

Courthouse

Havre

59501

265-5481x221

Jefferson

BoxH

Boulder

59632

225-4020

Judith Basin

Box 427

Stanford

59479

566-2277x109

Lake

106 4th Avenue East

Poison

59860

883-7268

Lewis & Clark

Box 1721

Helena

59624

447-8338

Liberty

Box 459

Chester

59522

759-5365

Lincoln

512 California

Libby

59923

293-7781x200

Madison

Box 366

Virginia City

59755

843-4270

McCone

Box 199

Circle

59215

485-3505

Meagher

Box 309

White Sul. Springs

59645

547-3612

Mineral

Box 550

Superior

59872

822-3521

Missoula

Courthouse

Missoula

59801

721-5700x3234

Musselshell

506 Main

Roundup

59072

323-1104

Park

Box 1037

Livingston

59047

222-4110

Petroleum

Box 226 j

Winnett

59087

429-5311

Phillips

Box 360

Malta

59538

654-2423

Pondera

20 4th Avenue SW

Conrad

59425

278-4000

Powder River

Box 270

Broadus

59317

436-2361

Powell

409 Missouri

Deer Lodge

59722

846-3680x28

Prairie

Box 125

TerPi

59349

635-5575x12

Ravalli

Box 5002

Hamilton

59840

375-6213

Richland

201 West main

Sidney

59270

433-1708

Roosevelt

400 2nd Avenue South

Wolf Point

59201

653-6229

Rosebud

Box 47

Forsyth

59327

356-7318

Sanders

Box 519

Thompson Falls

59873

827-6922

Sheridan

100 W Laurel Ave

Plentywood

59254

765-3403

Silver Bow

PO Box 585

Butte

59703

497-6344

Stillwater

Box 149

Columbus

59019

322-8000

Sweet Grass

Box 460

Big Timber

59011

932-5152

Teton

Box 610

Choteau

59422

466-2693

Toole

Courthouse

Shelby

59474

434-2232

Treasure

Box 392

Hysham

59038

342-5547

Valley

501 Court Square. Box 2

Glasgow

59230

228-8221x23

Wheatland

Box 1903

Harlowton

59036

632-4891

Wibaux

POBox 199

Wibaux

59353

796-2481

Yellowstone

Box 35002

Billings

59107

256-2743

STATEMENTS OF PURPOSE

These statements have been prepared by each of the political parties. The opinions expressed do not represent the views
of the State of Montana, but have been included to provide information to the voters on the political parties in Montana.

Constitution Party

The Constitution Party believes the purpose of
government is to protect the individual citizen's right to
life, liberty and property. It is not government's role to
burden citizens with unjust or unneeded laws; or to act
as "nursemaid" by instituting countless social programs.
We further believe that we must:

• Restore this country to "One Nation Under God."

• Return to Constitutional, Limited Government.

• Protect the Inalienable Right to Life of All,
including the Unborn and Infirm.

• Protect the Individual Right to Keep and Bear
Arms.

• Restore National Sovereignty, including
withdrawal from the U.N.

• Maintain a Strong National Defense.

• Repeal the Income Tax and replace it with Tariffs,
Duties & Excise Taxes.

• Abolish the Federal Reserve.

• End Federal Subsidies for and Control of
Education and Welfare.

• Return Control over Elections to the People.

• Abolish Special Interest Entitlements (corporate
welfare).

We oppose the use of Social Security numbers as a
means of personal identification. We oppose the
Children's Health Insurance Plan. It is socialized
medicine on the "installment plan," and will eventually
cost us dearly.

We invite all who love liberty and justice to join with us
in our pursuit of restoring our civil government to our
country's founding principles.

JONATHAN D. MARTIN, State Chairman

Constitution Party of Montana

2212 2nd Avenue S. Great Falls, MT 59405-2804

(406) 727-5924

E-mail: 5martins(5)in-tch.com

Democratic

The Montana Democratic Paily puts people first.
Slipping to 50th in the nation in wages is shamefiil!
We will fight for Montana's working families. We
have consistently and vigorously fought to provide
a basic system of free quality public education. We
have fought for Montana's Main Street businesses.
We have fought to maintain a clean and healthful
environment for all Montanans. We have defended
a woman's right to choose.

Montana Democrats have fought, and will fight, for:
jobs, a livable wage for hard-working Montanans,
and their right to organize.

■ affordable health care, including prescription
drugs.

■ supporting our schools instead of tax breaks for
large corporations and wealthy land owners.

■ giving property tax breaks to homeowners and
small business owners.

Party

■ the basic human rights guaranteed to all by our
Constitution.

■ sustainable agriculture and family farms.

■ the traditional values of hunting and fishing, and
-■ public access to public lands and waters.

The preamble to our platform sums it up - - "As
Montana Democrats, we believe that 'We the
people' are the government and that good
government is the way free people assure justice,
promote economic growth, educate their children
and build communifies."
Please join us. Together, we can build a better
Montana.

Montana Democratic Party

P.O. Box 802, Helena, 59624

Phone: 406-442-9520 Fax: 406-442-9534

Email: mtdemocrats.org

Website: www.mtdemocrats.org

Libertarian Party

The Montana Libertarian Party is the real choice for less
government, lower taxes, and more freedom. The
Libertarian Party believes in economic and personal
freedom. People should be free to make their own
choices, provided they don't infringe on the equal right
of others to do the same. Governments only role should
be to protect people's right to make their own choices in
life, so they can reap the rewards of their successes and
bear personal responsibility for their own mistakes.

The Montana Libertarian Party is dedicated to:

* Living wages for Montana's families by reducing the
tax burden and reducing the size and scope of state
government.

* Improving education by empowering parents not
bureaucrats, to make important decisions for our
children.

* Protecting the right to keep and bear arms, and the
elimination of Victim Disarmament laws.

* Safer neighborhoods by punishing violent criminals
rather that wasting resources prosecuting victimless
crimes.

* A cleaner environment through innovative property
rights solutions.

If you're tired of the promises of the majority, we invite
you to join us as we fight for everyone's liberty on every
issue, all the time.

Mike Fellows Chair

Montana Libertarian Party

P.O. Box 4803 Missoula, MT 59806

(406) -721-9020

E-Mail mfellows@usa.net

Website: www.lp.org/organization/MT

Natural Law

The Natural Law Party was founded to create a new,
mainstream political party to offer voters forward-
looking, prevention-oriented, scientifically proven
solutions to American's problems. Our principles and
programs harness the most up-to-date scientific
knowledge of natural law - the intelligence of nature
that governs our complex universe - and apply it to
public policy.

Currently America's fastest growing political party, the
Natural law Party stands for prevention-oriented
government, conflict-free politics, and proven solutions,
including:

- Natural health care programs shown to prevent disease
and cut costs

- Education that develops students' full potential through
programs that increase intelligence and creativity

- Effective, field-tested crime prevention and
rehabilitation programs

- Lowering taxes through cost-effective solutions, not
reduced services

- Protecting the environment through energy efficiency
and use of nonpolluting energy sources

- Safeguarding America's food supply through
sustainable, organic agriculture practices

- Mandatory labeling and safety testing of genetically
engineered foods

- Ensuring a strong economy by harnessing the
creativity of our citizens and implementing pro-growth
fiscal policies

- Promoting more prosperous, harmonious international
relations by increasing the export of U.S. know-how,
rather than weapons

- Ending special interest control of politics by
eliminating PACs, soft money,

and lobbying by former public servants

NATURAL LAW PARTY OF MONTANA

Phone and fax: (406) 453-0083

Email: prairie@mt.net

Website: http://wwvv.natural-law.org

Reform Party

The quality of a democracy is measured by the quality
of participation by ordinary citizens. Democratic values
and attitudes are learned through participation, and the
highest calling of a citizen is to serve fellow citizens in
office as a position of trust, enjoying the bonds of
affection with the voters for their willingness to
sacrifice through public service. The Reform Party is
committed to every aspect of this participation, whether
inside our party or elsewhere. We are thereby
committed to choice in elections, volunteerism within
the parties, and citizens who are willing to serve us as
elected officials. We are equally committed to honest
debate, the forthright presentation of our
values, and respect for the rights of everyone.

The Reform Party of Montana will work:

-To elevate the voters of Montana to their rightful place

as the sovereign rulers of the state, returning public
office holders to their status as servants of the people, as
was intended;

-To restore fiscally responsible government, wherein the
state budgets and spends only what taxpayers will allow;

-To encourage voter participation and involvement,
within the Reform Party itself, and in the political
process as a whole.

J.R. MYERS, Chairman

Reform Party of Montana

P.O. Box 47 Butte, MT 59703

(406) 782-3066

E-mail: chair@montana.reformparty.org

Website: www.montana.reformparty.org

Republican

Abraham Lincoln, the first Republican President,
fought to protect the freedoms of every American
citizen. Teddy Roosevelt, another great Republican
President, helped our nation recognize and preserve
the vast natural treasures of our state and nation.
President Ronald Reagan brought our nation to
victory in the Cold War and renewed our faith in the .
spirit of freedom.

The Montana Republican Party shares their vision
and spirit of progress. Today, we are working hard to
see that all of Montana's residents are empowered
with the opportunity to enjoy the American dream.

Tax Relief for working men and women of
Montana and an accountable, efficient government
responsive to the people who pay their salaries; and

Economic Development to provide Montanans
well paying, stable, and environmentally sound jobs
now and into the future.

Republicans are working for our state's future and to
ensure that every Montanan has the same
opportunities to succeed. Join us as we work together
to build a better tomorrow for ourselves, our children,
and our communities.

Montana Republicans are working for:

Better Schools for our children. Parents, teachers
and local school boards should decide what's best for
our children. Local control will help ensure our
children receive the high quality education they
rightly deserve;

Matt Denny, Chairman
Montana Republican Party
1419B Helena Ave.
Helena, MT. 59601
(406) 442-6469
E-mail: exec@mtgop.org

CONSTITUTIONAL AMENDMENT 34
AN AMENDMENT TO THE CONSTITUTION PROPOSED BY THE LEGISLATURE

AN ACT SUBMITTING TO THE QUALIFIED ELECTORS OF MONTANA AN AMENDMENT TO
ARTICLE VIIL SECTION 13. OF THE MONTANA CONSTITUTION REGARDING INVESTMENT
OF STATE COMPENSATION INSURANCE FLIND ASSETS; AND PROVIDING AN EFFECTIVE
DATE.

The Legislature submitted this proposal for a vote. It would amend the Montana Constitution to allow
monies in the state workers' compensation insurance fund to be invested in private corporate capital stock.
Up to 25% of the state fund's assets could be invested in the stock market. Currently, the constitution
prohibits such investment of public funds except for monies contributed to retirement funds. Like pension
funds, workers' compensation investments would be managed by the State Board of Investments in
accordance with recognized standards of financial management.

This measure authorizes the Board of Investments to invest no more than 25% of the workers'
compensation fund in the stock market. Average return on investments is expected to be higher over the
long term if the measure is passed.

1— I FOR allowing a maximum of 25% of state compensation insurance fund assets to be invested in
private corporate capital stock.

LJ AGAINST allowing a maximum of 25% of state compensation insurance fund assets to be invested in
.private corporate capital stock.

The language above is the official ballot language. The arguments and rebuttals on the following three pages have
been prepared by the committees appointed to support or oppose the ballot measure. The opinions stated in the
arguments and rebuttals do not necessarily represent the views of the State of Montana. The State also does not
guarantee the truth or accuracy of any statement made in the arguments or rebuttals.

The PROPONENT argument and rebuttal for this measure were prepared by Senator Fred Thomas. Representative
Royal Johnson, and Mike Kadas.

The OPPONENT argument and rebuttal for this measure were prepared by Senator Steve Doherty. Representative
William Rehbein, and Representative Ray Peck.

ARGUMENT FOR

The Montana State Compensation Insurance Fund is a public entity established to
provide a viable option for employers to purchase their mandatory workers
compensation coverage at the lowest prudently possible costs. The State Fund will
always provide insurance and no employer will be refused if their account is in good
standing. Three out of every four businesses in Montana, numbering 23,000,
purchase workers compensation from the State Fund.

As an insurance company, State Fund operates in a market that is entitled to and
demands reasonable and competitive premiums, excellent service to employers and
rapid response to injured workers needs. We the people in the state must respond
to these competitive market requirements and allow the State Fund to operate in a
prudent, business like and competitive manner.

State Fund and other insurance companies derive their revenues in two primary
ways. First, the payment of premiums from their customers and secondly, from
income and total return from their investment portfolios. State Fund's current
premiums and operational costs are satisfactory', but present state law hinders the
opportunity for the fund to keep investment income at a level to keep pace with
increasing costs and reduces the ability to increase injured workers benefits.

The current law allows assets to be invested only in fixed income investments. Over
the past 73 years, large company stocks have returned 1 1.2% annually while
corporate bonds returned 5.8% annually and government bonds 5.3% annually.
Stocks provide almost tw ice the rate of return of bonds. If the State Fund could
have had 20% of it's assets invested in the Montana Common Stock Pool and
managed by the Montana Investment Board and staff during the period starting
January 1995 and ending December 31, 1999, the result would have been an
additional $100 million in the reser\e account. Montana dollars, invested by
Montanans, for the benefit of all Montana citizens.

C-34 would allow up to 25% of the State Fund's invested assets to be invested in
stocks. This w ill allow for diversification, reduce volatility and provide the
opportunit> to yield greater returns over time for the state.

Most Montanans work hard for their money and want their money to work for
them. Let's give the State Fund the opportunity to pass on successful financial
results to their Montana-based customers.

Vote for C-34 in November 2000.

ARGUMENT AGAINST

If you think you've seen C-34 before, its because you have. Just four short years ago the
voters of Montana wisely turned down C-31 by a vote of 214,120 against and 166,752 for.
The failed amendment of four years ago would have allowed the Montana Board of
Investments to invest up to 15% of the State Fund's assets in common stock.

In contrast to the proposal turned down by Montanans four years ago, C-34 would permit
the investment of a staggering 25% of all assets in common stock. We believe that this is
an even more reckless proposal and we urge Montanans to reject it in favor of fiscal
conservatism. Four years ago. the opponents wrote in the voter information pamphlet,
generally and in relevant part, their thoughts which are just as valid today.

The State Compensation Insurance Fund was set up to help those who were injured
or suffered ioss from injury on the job. Since injuries don't happen on an even
schedule, there are highs and lows as far as the need for cash is concerned, and
liquidity is required to pay claims on a day-to-day basis. To meet these varying
needs money has been held in reserve to make payments through high demand
times. The drafters of the Constitution were wise in not allowing these funds to be
put into speculative investments where the principal could be lost as has happened
in Los Angeles, counties in Maryland and Ohio, v

The need to keep insurance rates down increases the use of any reserves; in fact, the
ftind was not set up to "make money." any amount above a reasonable reserve
should be used to reduce rates to businesses. Common stock should be viewed as a
long-term investment, not intended for fiinds that may be needed at any time. A
solid, conservative investment portfolio (returning 10.13% in 1995) should be left
intact.

Who picks up the shortfall when losses occur or stock needs to be sold in a low
market? First the employer pays until he or she starts taking his/her business out of
State; only a few years ago Workers Compensation rates were one of the main
reasons businesses v\ ere leaving the state. When that happens the State is forced to
go to the taxpayer to make up the difference, the Old Fund Liability Tax is a perfect
example. We can learn from our own history and that of other governments. The
funds held in reserve need to be held as a public trust and not be available for
creative speculation as personal funds are.

Recent history has shown us that the stock market is a place where one can make ... or
lose ... a lot of money. The unprecedented growth experienced in the 1990's may not
always be the case. Just look at the recent drops in value for high flying technology stocks.
We believe that investing up to 25% of the Fund's assets in a volatile market is an
unnecessary risk. Vote for cautious, conservative, prudent investment - vote against C-34.

PROPONENTS' rebuttal of those opposing the issue

Interestinci how dif-ficult it is to effect positive change, even in this
fciBt mciving, rapidly charccjing i-iorld. The opponents of C-3'+, pr&sent the
same ( even the wording is copied from their paper of four years ago)
old arciLiniktite of deception and fear.

C-3't would allow the State Fund long term reserve assets to bo invested
in comnujri stock und«?r tice prudtsnt inv&stor rule*. Management of these
assets will reinavr. vjith the Montana Stat& Board of Investments.

ThB opponents use the words "fiscal conservation". Funk and Wagnall's
dictionary definws coiiservat ion : to keep from loss, decay or depletion.
To vot« ayainst C-3k will assure you that over the long term you will
have a loss of purchasing power and your capital will erode in vslue.
Why would anyorie penalize a Montana husinfjsE by restricting their
ability tti obtain proper and qualified management for their account
balarices?

Past Legislatures have required the State Fund to be the insurer of
last resort in workers compensation in Montana. Those Legislators who do
not waiit the State- Fund to operate as an inaurance company should work to
get the State Kund out of the business entirely. Let the private sn-ctor,
who can make the appropiriate changes to stay in business, control this
market .

The opponents firi6l aroument about the stock market is enter ta i nl nq at
best. r-"rudent managers of money do not buy the "stock market", they invest
in companies that have ex record of growth, rising dividend return,
potential for future growth through research and generally increasing
t»coriomic activity. To be cautious, conservative and prudent the past
results of investing dictate the use of equity investments for the
required xtitvrri of this business. Vote for C-3^.

OPPONENTS' rebuttal of those supporting the issue

When you decide how you are going to vote on this issue you have to ask yourself not
how comfortable you personally are with investing risk, but how secure the money kept in
reserve to pay workers comp claims should be. We have all watched as the stock market
climbed and then dropped. Individual stocks rise and fall. As they do, so do the fortunes
of those investors. We believe that investing taxpayers money carries with it high
fiduciary obligations, a responsibility that should not be left wide open.

The proponents argue only on the up side of stock investment. The down side makes us
call for caution, for conservative investments and a prudent, measured policy. The
returns we have previously had with this investment strategy are reasonable. There is no
need to put those returns and Montana's workers and businesses at greater risk, vote
against C-34.

CONSTITUTIONAL AMENDMENT 35
AN AMENDMENT TO THE CONSTITUTION PROPOSED BY THE LEGISLATURE

AN ACT SUBMITTING TO THE QUALIFIED ELECTORS OF MONTANA AN AMENDMENT TO
ARTICLE XII OF THE MONTANA CONSTITUTION REQUIRING THE DEDICATION OF PART
OF THE TOBACCO LITIGATION SETTLEMENT MONEY TO A TRUST FUND; ALLOWING THE
APPROPRIATION OF PART OF THE INCOME FROM THE TRUST FUND FOR PURPOSES OF
TOBACCO DISEASE PREVENTION PROGRAMS AND PROGRAMS RELATED TO HEALTH
CARE NEEDS; PROHIBITING THE APPROPRIATION OF THE INCOME FOR THE PURPOSES OF
REPLACING MONEY USED FOR TOBACCO DISEASE PREVENTION PROGRAMS AND
PROGRAMS THAT EXISTED ON DECEMBER 31, 1999, PROVIDING BENEFITS FOR HEALTH
CARE NEEDS OF MONTANANS; AND PROVIDING AN EFFECTIVE DATE.

This proposal, submitted by the Legislattare, would amend the Montana Constitution to dedicate not less
than 40% of Montana's share of the settlement with major tobacco companies to a permanent trust fund.
Ninety percent of the trust fund's interest would be used for health care benefits, services or coverage and
tobacco disease prevention. The remaining 10% would be deposited in the trust. The trust's principal
could only be spent for these same programs if approved by a 2/3 vote of each house of the legislature.
The trust's interest and principal cannot be used to replace current funding for these programs.

Montana's share of the nationwide settlement with the tobacco companies is expected to average $30
million annually for the next 25 years. Current law places settlement payments in the general fund. This
initiative would reduce tobacco settlement funds going to the general fund by as much as $12 million
annually.

n FOR dedicating not less than 40% of the tobacco settlement to a trust fund for health care benefits,
services, or coverage and tobacco disease prevention.

n AGAINST dedicating not less than 40% of the tobacco settlement to a trust fund for health care
benefits, services, or coverage and tobacco disease prevention.

The PROPONENT argument and rebuttal for this measure were prepared by Senator Bob Keenan, Representative
Cindy Younkin, and Jim Ahrens.

The OPPONENT argument and rebuttal for this measure were prepared by Senator Ken Miller, Representative
Ron Erickson, and Kelly Brester.

ARGUMENT FOR

HELPING TO BUILD A HEALTHIER MONTANA

Here's what C-35 will do for Montana:

• The national tobacco settlement offers a once-in-a-lifetime opportunity to invest in improving
the health of Montanans. C-35 would establish an income-producing trust fund that would enable
Montana to leverage its settlement proceeds to generate a stable source of funding to meet health
care needs.

/ Forty percent (about $12 million) of each of Montana's annual settlement payments would go
to the trust fund. The remainder would go to the state's general fund. Overall, the state is
projected to receive between $800 and $900 million over 25 years from the tobacco settlement.
Under C-35, the trust fund would grow to about $400 million over this period.

y C-35 trust fund money would be used to help pay for health care programs for Montanans.

Ninety percent of the income earned each year by the trust fund could be appropriated by the
Legislature for health care programs. The remaining 10 percent would be reinvested in the trust fund
to offset inflation.

/ The sponsors of the initiative intend that this money be used to fund health care and tobacco
disease prevention programs. The money could not be used to replace current general fund
spending.

y C-35 was developed by a coalition of about 30 organizations. These coalition members have

come together for the betterment of in Montana. A meeting of minds from this broad spectrum of
representation displays a strong concern for the future healthcare of Montanans. This coalition
known as "The Alliance for a Healthy Montana" includes: the American Association of Retired
Persons, American Cancer Society, American Heart Association, American Lung Association, Blue
Cross Blue Shield of Montana, Health Insurance Association of America, Health Mothers Healthy
Babies, MHA..An Association of Montana Health Care Providers, Montana Association of Home
Health Agencies, Montana Campaign for Tobacco-Free Kids, Montana Center for Adolescent
Development, Montana Chapter of the American Academy of Pediatrics, Montana Council for
Maternal & Child Health, Montana Dental Association, Montana League of Women Voters,
Montana Medical Association, Montana Medical Benefit Plan, Montana Nurses' Association,
Montana Primary Care Association, Montana Senior Citizens Association, Montana State
Pharmaceutical Association and other public health agencies.

/ Additionally, C-35 has been endorsed by: Governor Marc Racicot, the Governor's Advisory

Council on Tobacco Prevention and Gubernatorial candidates Judy Martz and Mark O'Keefe. The
Health Care Advisory Council, Lewis & Clark City-County Board of Health, Montana
Comprehensive health Association, Montana Gerontology Society, and the Yellowstone City-County
Board of Health.

/ Voting yes for C-35 is voting yes for the future health of Montanans.

Vote FOR C-35!

ARGUMENT AGAINST

Constitutional Amendment 35 should not be added to Montana's Constitution

C-35, is a Constitutional Amendment, requiring a Trust Fund be established with a minimum of
40% of the tobacco settlement agreement money. The settlement agreement is intended to
reimburse tax payers for the costly and harmful results of tobacco use and to educate society of
the health dangers associated with tobacco use.

Montana's Constitution is a good frame work, that guarantees certain rights and provides a
process for a government by the people. Our Democracy is a government in which the supreme
power is vested in the people and exercised directly by them or by their elected agents under a
free electoral system.

This Constitutional Amendment takes away the flexibility to meet the needs of Montanan's. The
spending of Montana's tobacco settlement agreement money should remain flexible to meet health
cost paid by tax payers, tobacco prevention education and general needs of Montana's as
determined by the government of the people.

The Constitution should remain a structured outline and not become a micro-managing document
of time sensitive ideas.

Vote against C-35

PROPONENTS' rebuttal of those opposing the issue

Rebuttal to Opposition Argument to C-3S

The oppoacnis of C-35 argue that this constitutional amandmcnt would lake away the state's
flexibility in deciding how to spend lis share of the national tobacco settlement. In &ct. just the
opposite is true.

C-35 strikes an appropriate balance between using the settlement money for addressing short-
term and long-term needs, hi doing so, it gives the state more flexibility in using its share of the
tobacco settlement.

C-35 would enable the state to use 60 percent of each year's settlement receipts to meet
immediate health care and other needs. In addition, the initiative would allow lawmakers to use
the principal in the trust fund, in the event of a fiscal emergency.

By dedicating not less than 40 percent of each year's settlement receipts to the trust fund, C-35
also would ensure that long after tlie tobacco receipt have slowed to a trickle, the trust fund will
still be generating a stable source of fimding for health care programs.

C-35 represents a balanced and wise approach for investing our state's share of the tobacco
settlement This ^proach has gained widespread public support, as evidenced in a Lee
Newspapers poll as well as a survey conducted by C-35's supporters. Please support C-35.

OPPONENTS' rebuttal of those supporting the issue

Please vote against C-35

The law suit against the tobacco industry, referred to the costly and harmful results to individuals that were not
aware of the possible hazards associated tobacco use. Those costs have occurred for the past 50+ years and
exist now These consequences should be dealt with now and not held in trust for generations, decades from
now.

Future settlements from lawsuits of industries that will be targeted next, such as the gun manufacturers and
manufacturers of food products that could be harmflil, such as candy bars, will likely follow the direction of
this huge lawsuit settlement, so we need to proceed with caution.

The list of supporters for C-35 is quite long. It's normal for special interest groups to become supporters when
there is a monetary benefit to them.

Interest, income, or principal from the C-35 trust can not be used to replace existing, failing health care and
educational programs (Section 4, par. 3) C-35 trust money must be used for new programs only Under C-35
the old programs are locked in, effective or not

The settlement agreement is intended to reimburse tax payers for the costly and harmful results of
tobacco use and to educate society of the health dangers associated with tobacco use. In addition to the cash
settlement to states, the lawsuit agreement provides $300 million dollars per year to a national foundation for
the educational purpose of informing Americans of the ill effects of tobacco use. C-35 trust fijnd will be
exclusively used for government run health programs and additional dollars to educate society of the harmful
effects of tobacco use Tax payers get nothing back.

Please vote against C-35 Constitutional Amendment 35 should not be added to Montana's Constitution

LEGISLATIVE REFERENDUM 115

AN ACT REFERRED BY THE LEGISLATURE

AN ACT REVISING THE TAXATION OF CERTAIN VEHICLES; REPLACING THE CURRENT SYSTEM OF
TAXATION OF AUTOMOBILES. VANS, SPORT UTILITY VEHICLES, AND LIGHT TRUCKS WITH A
REGISTRATION FEE ON LIGHT VEHICLES; ALLOWING THE OWNER OF A LIGHT VEHICLE TO
REGISTER THE VEHICLE FOR A 24-MONTH PERIOD; ALLOWING VEHICLES, INCLUDING
MOTORCYCLES AND QUADRICYCLES, 1 1 YEARS OLD AND OLDER TO BE PERMANENTLY
REGISTERED; REVISING THE FEE IN LIEU OF TAX ON MOTORCYCLES AND QUADRICYCLES:
PROVIDING FOR DISTRIBUTION OF THE REGISTRATION FEE; REPEALING THE SALES TAX ON NEW
MOTOR VEHICLES; ALLOWING A COUNTY TO IMPOSE A LOCAL OPTION FEE ON MOTOR
VEHICLES WITH VOTER APPROVAL; PROVIDING THAT THE PROPOSED ACT BE SUBMITTED TO
THE QUALIFIED ELECTORS OF MONTANA; AMENDING SECTIONS 7-1-21 11, 15-6-201, 15-6-215, 15-8-
202. 15-24-301, 15-24-302, 15-30-121, 15-50-207. 15-70-101, 15-70-125,20-9-141,20-9-331,20-9-333,20-9-
360, 20-9-501, 20-10-144, 20-10-146, 27-1-306. 61-3-101, 61-3-301, 61-3-303, 61-3-314, 61-3-315, 61-3-316, 61-
3-317, 61-3-332, 61-3-431, 61-3-456, 61-3-503. 61-3-506. 61-3-509. 61-3-520. 61-3-527, 61-3-537, 61-3-701. 61-
3-707, 61-3-736. 61-3-737. 61-3-738. 61-4-1 12. and 61-10-231. MCA; REPEALING SECTIONS 61-3-502, 61-3-
504, AND 61-3-605, MCA; AND PROVIDING EFFECTIVE DATES AND AN APPLICABILITY DATE.

The Legislature submitted this proposal for a vote. It would repeal the sales tax on new motor vehicles and replace
the current light vehicle tax system with a registration fee based on the vehicle's age. In addition to other statutory
fees, such as junk vehicle fees, etc., annual fees would be:

Light vehicle age
$195 4 years old or less
$65 5 to 1 0 years old
$6 1 1 years old or older

Upon payment of specified fees, light vehicles could be registered for a 24-month period and some vehicles 1 1
years old or older could be permanently registered.

It is estimated that replacement of the vehicle tax with a flat fee will generate approximately the same amount of
total revenue. However, elimination of the new car sales tax will result in approximately $5.5 million less revenue
to the state.

D FOR reducing the taxation of light vehicles and eliminating the sales tax on new motor vehicles.

□ AGAINST reducing the taxation of light vehicles and eliminating the sales tax on new motor vehicles.

The PROPONENT argument and rebuttal for this measure were prepared by Senator Bill Glaser and
Representative John Mercer.

The OPPONENT argument and rebuttal for this measure were prepared by Senator Mike Halligan. Representative
Joan Hurdle, and Ann Mary Dussault.

ARGUMENT FOR

NO ARGUMENT SUBMITTED

ARGUMENT AGAINST

Argument Against LR-1 15

Local governments (i.e. cities, towns and counties) and schools are the primary
beneficiaries of motor vehicle revenues. LR-1 15, if adopted, would further erode
revenues to local governments, schools and the state general fiind without providing an
alternative funding source. Since no funding source is provided, it is likely that property
taxes on homes and businesses would have to be raised at the local level and income
taxes at the state level to offset the loss in motor vehicle revenue What LR-1 15
represents is part of a larger attempt to starve local governments of revenue by eroding or
eliminating traditional revenue sources with the larger goal to set the stage for the
adoption of a general sales tax.

LR- 1 1 5 is bad public policy because it abolishes a tax structure whereby
taxpayers pay motor vehicle fees bases on the depreciated value of their vehicle and
replaces it with a fee schedule based on age of the light vehicle. This proposed change
substantially reduces motor vehicle fees on large, sport utility vehicles and other
expensive vehicles and shifts the taxes normally paid by these vehicles onto older
vehicles, and, in some cases, actually increases the motor vehicle fees on passenger cars
and other light vehicles. The primary beneficiaries of LR-1 15 are the owners or
purchasers of expensive vehicles or sport utility vehicles.

LR-1 15-substantially complicates the distribution scheme of revenue from motor
vehicles. Under LR-1 15, each vehicle type would have its own distribution scheme
County treasurers would be required to maintain a distribution mechanism, which is
different for each vehicle category. In addition, each county treasurer would be required
to count newly manufactured light vehicles, motorcycles, quadricycles, buses, heavy
trucks, truck tractors and motor homes County treasurers wall also have to keep track of
vehicles over ten years of age which have been permanently registered, vehicles that have
been registered for two-year periods and those that have been registered for one-year
periods Finally, owners of permanently registered vehicles would be required to replace
their license plates every four years, a status that would have to be tracked by county
treasurers

The bottom line is that LR-1 15 severely erodes local government and school
district revenue and establishes a bureaucracy of its own through the establishment of a
complicated revenue distribution scheme and vehicle tracking requirements. LR-1 1 5
may look good on the surface, but it's a wolf in sheep's clothing that could well end up
costing you more in tax increases on your home or business than you will gain in lower
vehicle fees.

PROPONENTS' rebuttal of those opposing the issue

Vehicle Flat Fee Rebuttal LR-1 15

Simple. Predictable.

LR-1 1 5 is the second step in correciing a tax burden ordinary citizens have been
shouldering for a long time. Ifyou have a nice pickup, a fairly new SUV iind an
average home, the taxes on your vehicles under the existing tax system can be greater
then on your home.

During the past two years the legislature with SB260 and special session HR4
reduced ihe taxes on cars by nearly 30%. At the same time the state no longer took a
share of the auto lux. As a result, local governments as a group have the same income
from autos as they had in 1998. Once the voters decide whether to approve LR-1 15,
the legislature can address the remaining awkwardness by simplifying the distribution
to local governments of the automobile funds.

following I .R- II 5, other changes that earmark tax sources need to be done to the
distribution of tax revenues in such a way that ordinary people can judge how well
each of their government servants are performing.

In summary:

♦ LR-1 15 Simple

♦ LR-1 15 Predictable

♦ LR-l 1 5 Accountable to the public.

OPPONENTS' rebuttal of those supporting the issue

No rebuttal prepared because no argument FOR was submitted

LEGISLATIVE REFERENDUM 1 16

AN ACT REFERRED BY THE LEGISLATURE

AN ACT REPEALING STATE INHERITANCE TAXES; PROVIDING THAT STATE ESTATE AND
GENERATION-SKIPPING TAXES APPLY TO THE EXTENT OF THE APPLICABLE FEDERAL CREDIT FOR
EACH TAX; PROVIDING THAT THE PROPOSED ACT BE SUBMITTED TO THE QUALIFIED ELECTORS OF

MONTANA; AMENDING SECTIONS 7-4-2613. 7-7-4607, 7-14-4654, 15-1-21 1, 15-1-406, 15-1-501, 15-1-503.
15-30-136, 17-5-718, 17-5-930, 17-5-1518, 17-5-1629,35-21-827.60-11-1110,60-11-1210,72-1-103,72-3-607,
72-3-618, 72-3-631, 72-3-807, 72-3-1004, 72-3-1006, 72-3-1 104, 72-16-215, 72-16-502. 72-16-503, 72-16-903.
72-16-904. 72-16-905, 72-16-907. 72-16-909. 72-16-1007. 80-12-305. AND 90-6-125, MCA; REPEALING
SECTIONS 72-4-304. 72-14-303. 72-16-101. 72-16-102. 72-16-201, 72-16-203. 72-16-204, 72-16-205, 72-16-206,
72- 1 6-207, 72- 1 6-208, 72- 1 6-209, 72- 1 6-2 1 0, 72- 16-211, 72- 1 6-2 1 2, 72- 16-213, 72- 1 6-2 1 4, 72- 1 6-2 1 6, 72- 1 6-2 1 8,
72-16-301, 72-16-302, 72-16-303, 72-16-304, 72-16-305, 72-16-306, 72-16-307, 72-16-308, 72-16-31 1, 72-16-312,
72-16-313, 72-16-314, 72-16-315, 72-16-316. 72-16-317, 72-16-318. 72-16-319, 72-16-321, 72-16-322. 72-16-323,
72-16-331, 72-16-332, 72-16-333. 72-16-334, 72-16-335, 72-16-336, 72-16-337, 72-16-338, 72-16-339, 72-16-340.
72-16-341. 72-16-342, 72-16-343, 72-16-344, 72-16-345, 72-16-346, 72-16-347, 72-16-348, 72-16-349, 72-16-401,
72-16-402, 72-16-403. 72-16-41 1, 72-16-412, 72-16-413. 72-16-414. 72-16-415, 72-16-416. 72-16-417. 72-16-418,
72-16-419. 72-16-420. 72-16-421. 72-16-422. 72-16-423. 72-16-424. 72-16-425, 72-16-431. 72-16-432. 72-16-433.
72-16-434. 72-16-435. 72-16-436. 72-16-437. 72-16-438. 72-16-439. 72-16-440. 72-16-441. 72-16-442. 72-16-443,
72-16-445, 72-16-446, 72-16-447, 72-16-448. 72-16-449. 72-16-450. 72-16-451, 72-16-452, 72-16-453, 72-16-454,
72-16-455. 72-16-456. 72-16-457. 72-16-458. 72-16-459. 72-16-460. 72-16-461, 72-16-462, 72-16-463, 72-16-464,
72-16-465, 72-16-471, 72-16-472, 72-16-473, 72-16-474, 72-16-475, 72-16-476, 72-16-477, 72-16-478, 72-16-479,
72-16-480. 72-16-481, 72-16-482, 72-16-491, 72-16-492, 72-16-493. 72-16-504. 72-16-505. 72-16-701. 72-16-702,
72-16-703. 72-16-704. 72-16-705. 72-16-706. 72-16-801. 72-16-802. 72-16-803, 72-16-804, 72-16-805, AND
72-16-902, MCA; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.

This proposal, submitted by the Legislature for a vote, would repeal Montana's inheritance tax. Currently, the
inheritance tax is imposed on the transfer of property when a person dies, except that property passed to a
surviving spouse, children, step-children, and other lineal descendants is exempt. Current law also exempts
family-held business property transferred to most relatives of the deceased, as well as property passed to charitable
or governmental organizations. The inheritance tax affects an estimated 800-900 estates yearly. If passed, this
measure would apply to deaths occurring after December 3 1 . 2000. State and federal estate taxes would not be
affected.

Inheritance taxes are due within 1 8 months of the date of death, so some collections will continue after the
effective date. Therefore, state revenue will be reduced by $6.3 million in 2002 and by $12.7 million in 2003.
Revenue from inheritance tax has been growing at 6.5% per year.

D FOR repealing state inheritance taxes.

n AGAINST repealing state inheritance taxes.

The laiiguage above is the official ballot language. The arguments and rebuttals on the following three pages have been
prepared by the committees appointed to support or oppose the ballot measure. The opinions stated in the arguments and
rebuttals do not necessarily represent the views of the State of Montana. The State also does not guarantee the truth or
accuracy of any statement made in the arguments or rebuttals.

The PROPONENT argument and rebuttal for this measure were prepared by Senator Dale Berry, Representative Roy Brown,

and Representative Matt McCann.

The OPPONENT argument and rebuttal for this measure were prepared by Senator Vicki Cocchiarella and Representative Jon

EUingson.

ARGUMENT FOR

LR-116

The repealing of state inheritance taxes.

THE SPECIAL SESSION OF THE 56^" LEGISLATURE passed HB7, which submits, to the
voters a referendum for the rep>ealing of state inheritance taxes.

THE INHERFTANCE TAX HAS BEEN IN EXISTENCE IN MONTANA since the 1920's and
originaiiy it taxed the entirety of any estate distribution regardless of to whom it was distributed.
Over the years it has been revised so that no distribution to a surviving spouse or lineal
descendent is taxed. Distributions to anyone else are taxed.

THE INHERTTANCE TAX IS UNFAIR FOR THE FOLLOWING REASONS:

$-THE ASSETS HAVE ALREADY BEEN TAXED several times during the lifetime of
the deceased.

$-FAMILY FARMS, RANCHES AND BUSINESSES get broken up to pay the taxes.

$-IT IS A TAXATION ON INFLATION. Many farms and ranches, especially in Western
Montana have increased significantly in value, but income has not kept up with depressed
agricultural prices.

$-DEATH AND TAXES MOST OFTEN BURDEN THE VERY PEOPLE THAT TAX
POLICIES INTEND TO HELP, the elderly and the poor. Since they frequently have
fewer assets, they must liquidate the inheritance to pay the taxes.

$-FARMS AND RANCHES OFTEN TIMES WILL BE SOLD to developers or wealthy
out-of-state buyers who often change the traditional use and restrict access.

$-THE TAX IS DISCRIMINATORY against those who do not have chUdren and direct
descendents or those who have lost their children. Why should persons who have
children not have to pay the tax while those with no direct descendents do have to pay?

$-MANY OLDER MONTANA CITIZENS when planning for their eventual death and
disposition of assets, decide to move to another state where there is no inheritance tax.
This is not the kind of tax policy we need in Montana.

S-THE INHERITANCE TAX IS NOT A GOOD RETURN FOR THE STATE OF

MONTANA. This tax currently brings in about $12 million per year. Left in the hands
of the public, it would retain and create jobs and create more revenue to Montana.

THERE IS A SURPLUS AND NOW IS THE TIME TO REMOVE THIS UNFAIR AND
CUMBERSOME TAX. KEEP MONTANA FARMS, RANCHES AND BUSINESSES IN TACT,
PRODUCTIVE AND PAYING MONTANA EMPLOYEES.

ARGUMENT AGAINST

The Montana inheritance tax is NOT about taxing children or grandchildren who inherit the family
farm or business. It is NOT about taxing a surviving spouse, stepchild or adopted children. It is NOT the
same tax as the Federal estate tax. This tax IS about providing on average more than $ 1 2 million a year to
the state's revenue that is spent on schools. University system, firemen, highway patrol, and other
government programs. It IS a tax that out-of-staters pay, too. If this tax goes away, working Montanans'
will have to pick up the tab from the loss of revenue to the State which was almost $13 million in 1999,
through higher property or income taxes.

The 1923 Legislature enacted this tax. It has withstood the scrutiny of legislative action over the last
76 years. Over time, the Legislature added fairness to the tax so it has no impact on more than 90% of
Montanans. Montana's inheritance tax now exempts spouses and lineal descendants from the payment of
any tax. In other words, if you are a surviving spouse, child, grandchild, great-grandchildren and on down
the line, if you are an adopted child or stepchild of someone who dies you do not pay an inhentance tax. In
closely held businesses even more exemptions are given for aunts, uncles, cousins, and their descendants.
The payment of this tax is only the liability of those who are not direct descendants. And even some people
not exempt have deductions and a limited liability when paying the tax.

The supporters of the repeal try to say that this tax is unfair to farms and small businesses. This is not
the case. No tax is paid by a surviving spouse or child regardless of the value of the farm, ranch, or small
business. The tax is based on the value of the share of the estate that passes to the person's beneficiaries. The
relationship to the person who died is considered. An inheritance tax may be assessed only if a relative is
not a lineal descendant or if the recipient is unrelated to the person who died.

Another concern is the possibility of a tax shift to ordinary Montana middle income people and those
who are on a fixed income which includes many senior citizens. If we were to lose $13,000,000 a year from
the repeal of the inheritance tax then taxes will have to be raised to offset the loss. We believe that
Montana's limited inheritance tax is a fairer method of raising state revenue than increasing our income or
residential property taxes or passing a sales tax. Some senior citizens and many others already face a crisis
when their property taxes increase.

Do not vote for repealing Montana's inheritance tax. You could be voting for a property or income
tax increase on vourself and more than 90% of Montana tax payers.

PROPONENTS' rebuttal of those opposing the issue

TAX is the key word to those opposing this referendum. This is not a proposal to redistribute
this tax to others. There are more than ample revenues and reserves to eliminate this tax and
it's highly questionable if the state will suffer a loss with this repeal. The inheritance tax is
costly to collect and the money left in the hands of those receiving the inheritance will generate
considerable revenues to the State of Montana.

This is a large tax placed on a small portion of our population and it is unfair. Repealing this
tax will not raise income tax, it will not raise property tax and it certainly will not be the
impetuous to pass a sales tax in Montana. We have the opportunity to repeal this unfair
discriminatory tax.

Vote to repeal the inheritance tax.

OPPONENTS' rebuttal of those supporting the issue

THE REPEAL OF THE STATE INHERITANCE TAX WILL EITHER RAISE YOUR
RESIDENTIAL PROPERTY TAXES OR CUT FUNDING FOR PUBLIC EDUCATION.

Are you concerned about the amount you pay in taxes on your home? Do you believe that the level of
funding for our public schools and universities may be inadequate? If your answer to either of these
questions is "yes" then you should vote against the repeal of our state inheritance tax.

Each year this tax contributes thirteen million dollars to the state. Sixty percent of this money is used to
support our educational system. If the inheritance tax is repealed, we will have to cut funding for education
or raise taxes. Do you want to pay higher property taxes? Do you want a State wide sales tax? These are
the choices which the elimination of the inheritance tax will force upon us. VOTE NO!

We cannot rely on a "surplus" to pay for the loss of thirteen million dollars a year. What if the recession now
faced by agriculture spreads to the rest of our economy?. What if unanticipated expenses from the fire season
mushroom out of control? What if utility deregulation puts more of our citizens out of work? Faced with
these many other uncertainties a projected budget surplus is gone and we could be severely short of revenue
for basic public services, especially education.

Our stale inheritance tax is a reasonable part of our taxing structure. It does not tax a surviving spouse or
children. It does not force the sale of a family business that is passed to a spouse or children. It does provide
important revenue to help our public schools and university system. You can read about our inheritance tax
on the Internet at www.montana/edu. at the Montana State University site search on inheritance tax. Scroll
down the page until you find the article, "Montana Inheritance and Estate Taxes". This article gives you a
basic understanding of the tax and examples that are easy to follow.

INITIATIVE NO. 143

A LAW PROPOSED BY INITIATIVE PETITION

This initiative would amend state law to prohibit all new alternative livestock ranches, also known as
game farms. Existing game farms would be allowed to continue operating, but would be prohibited from
transferring their licenses to any other party. They would also be prohibited from allowmg shooting of
game farm animals for any type of fee. The proposal also repeals provisions of the law concerning
applications for expansion of game farms. If approved by the voters, the measure would take effect
immediately. ,

This measure would eliminate $104,000 in annual costs of review of game farm applications and
expansions, as well as $3,850 yearly revenues from application fees. Abolishing fee shooting may force
closure of some game farms, which could result in less revenue to the state and in lower overall regulation
costs.

L- 1 FOR prohibiting new game farms, prohibiting transfer of existing game farm licenses, and prohibiting
shooting of game farm animals for a fee.

LI AGAINST prohibiting new game farms, prohibiting transfer of existing game farm licenses, and
prohibiting shooting of game farm animals for a fee.

The PROPONENT argument and rebuttal for this measure were prepared by Gary R. Holmquist, Stan Frasier, and
Dave Stalling.

The OPPONENT argument and rebuttal for this measure were prepared by Mark R. Taylor, Senator Ken Mesaros,
Representative Larry Grinde, and Kim J. Kafka.

ARGUMENT FOR

1-143, the "Game Farm Reform Initiative," will stop the growth of the game farm industry and stop the
unethical captive shooting of penned big game animals, also known as "canned hunts." Existing game farms
will be allowed to continue all operations, except for canned hunts (which will effect only 15 game farms).

Game Farming threatens Montanan's fair-chase hunting and wildlife heritage, and undermines a unique and
tremendously successful system of public wildlife management and public hunting in North America. These
serious and well-documented threats include disease, hybridization, the creation and expansion of commercial
markets for wildlife, loss of wildlife habitat, and an unacceptable, bankrupt image of hunting portrayed by the
paid shooting of captive animals. Game farms also threaten a strong economy based on the public pursuit and
enjoyment of wild, free-ranging public wildlife.

At the turn of the last century, wildlife in North America had been decimated by commercial markets for the
meat, hides, antlers and other parts of wildlife. Many animals, such as elk and deer, were on the verge of
extinction. Hunter conservationists such as Theodore Roosevelt put an end to the commercial market killing of
wildlife and led an effort to restore America's wildlife. In the words of Roosevelt: ""The professional market
hunter who kills game for the hide or for the feathers or for the meat or to sell antlers and other trophies;
market men who put game in cold storage; and the rich people, who are content to buy what they have not
the skill to get by their own exertions—these are the men who are the real enemies of game. "

Roosevelt and others helped devise a unique system of wildlife management based on four principles: 1)
Wildlife as a public resource; 2) A ban on the commercial markets of vulnerable wildlife; 3) Allocation of
wildlife controlled by law; 4) A ban on the frivolous killing of wildlife. This tremendously successful system
allows all Americans equal access towards wildlife resources and fuels public participation and concern for
wildlife, wildlife research, and habitat protection and conservation education that benefits not just hunted
species, but all other wildlife as well.

Game ranching undermines this system by creating and expanding commercial markets for vulnerable
wildlife, privatizing a public resource, and bringing us closer to a European-like system in which wildlife is
intensely managed to produce products only the wealthy can afford. Game ranching and captive shooting
operations demonstrate a total disregard for our wildlife and hunting heritage, threatens legitimate, fair-chase
hunting, creates and spreads disease that threaten wildlife and traditional livestock, and requires a substantial
subsidy taken from license revenue paid by legitimate hunters.

From 1995-1999, the Montana Department of Fish, Wildlife and Parks spent $1,000,000 of license revenue
generated from hunter and anglers to license and regulate game farms. During that same period game farmers
paid $38,300 in fees.

In 1992 game farm elk shipped from Montana to Alberta caused an outbreak of bovine tuberculosis (TB) that
infected elk, cattle, and 42 people. In addition to $25 million direct cost to the taxpayers it cost the entire
country its TB free status, estimated by Agriculture Canada to be worth $1 billion. Last winter the existence
of Chronic Wasting Disease (CWD) was confirmed on a Montana game farm. There is no live test for CWD;
there is no way to know if infected animals are being moved around the state. The spread of CWD appears to
be associated with the movement of game farm animals.

In short, game ranching poses many serous and well-documented threats to Montana's wildlife and fair-chase
hunting heritage and threatens a strong economy based on the public hunting and enjoyment of public wildlife.
As retired Montana wildlife biologist Jim Posewitz, founder of Orion-The Hunter's Institute, says: "Game
farming commercializes the last remnants of the great wild commons, it seeks to privatize what is held
in trust by all of us, it domesticates the wildness we sought to preserve, and it trivializes what is
exceptional .... The things we value die inside the woven wire of game farms."

For more info go to: www.macow.org

ARGUMENT AGAINST

VOTE AGAINST 1-143

Quoting ihe Region 4 Supervisor for the Montana Depailment of Fish, WildHfe & Parks (FWP), 'THE
WHOLE ALTERNATIVE LIVESTOCK (Game Farm) ISSLFE IS LONG ON OPINION AND SHORT ON
FACTS."

REGLT.ATORY HISTORY: There are currently 92 alternative livestock ranches in Montana. Over the past
ten years, the Montana Legislature and the Game Fann Negotiated Rulemalcing Committee (consisting of
Montana Alternative Livestock Producers, Montana VVildhfe Federation, Montana Stockgrowers Association,
Montana Department of Livestock, and FWP) have worked diligently to draft, adopt, and implement statutes
and rules which allow diversification opportunities for Montana's fanners and ranchers, yet, at the same time,
provide adequate regulatory safeguards to protect Montana's wild populations.

APPLICATION OF I- 1 43: 1-143 undermines the significant work done by the Montana Legislature and the
Negotiated Rulemaking Committee. Three particularly offensive provisions attack the ability of these 92 family
farms and ranches to stay in business.

1 . T-143 replaces the chronic wasting disease (CWD) moratorium (discussed below) placed on new licenses
during the Special Legislative Session, with an absolute ban. This demonstrates the lack of flexibiUty,
reasonableness, and compromise on the part of the 1-143 sponsor ;md its supporters.

2. 1-143 will ultimately eliminate every elk ranch inMontanabynot allowing current licensees to transfer their
licenses before or at tlie time of tlieir death. This prohibition attacks the time-honored tradition of rural
Montana farnier.s and ranchers passing down their ranching operations to their children and grandchildren.

3. 1-143 seeks to prohibit the harvesting of private animals on private property, which is the end product of any
livestock operation or industry. I- 1 43 seeks to dictate what animals Montana's farms and ranches raise and how
tliose animals are managed. Thi.'; year elk ranchers are targeted for elimination. Who will be next - game bird
operations, buffalo producers, people who raise llamas, or even b-aditional livestock producers?

ANIMAL HEALTH: To ensure a high degree of protection for domestic deer and elk, traditional livestock
and Montana's wildlife, Montana has adopted the most stringent herd health regulations in the United States
governing alternative livestock operations. Mandatory testing protocols are in place for Brucellosis and
Tuberculosis each time an animal is bought or sold. Pursuant to the negotiated rules, all domestic elk in
Montana have been tested for elk-red deer hybridization, ensuring that they are pure Rocky Mountain elk.
Every domestic elk or deer that dies in Montana on an alternative livestock ranch (561 to date on 41 ranches),
regardless of the cause of death, is tested for CWD at the producer's expense ($150 - S300). In May of this
year, the Montana Legislature passed Senate Bill 7 which placed a temporary moratorium on new licenses until
a live animal test for CWD is developed and approved by the Department of Livestock. The purpose of Senate
Bill 7 was to develop a regulatory solution which was both reasonable and based on science in order to address
the concerns of the general public.

ECONOMICS IMPACTS: Current alternative livestock operations in Montana contribute between $15 and
$20 million to the Stale's economy on less than 13,000 acres. Alternative livestock are a logical addition to
the traditional resource-based economy of the State. It is an appealing marriage betu'een the frontier heritage
of Montana, its independent spirit, and economic development. At a time when Montana is at the bottom of
the list in average income, it is essential and responsible to expand business opportunities using existing
resources rather than destroying tliem tlirough unnecessary interference with private enterprise. Such tinkenng
will have the additional effect of creating an artificial value for existing operations, similar to liquor licenses
and gambling permits. Market forces and science should dictate policy decisions rather than hysteria and
emotion. 1-143 will instill total government control of a sector of private enterprise in Montana, setting a
dangerous precedent for all Montana businesses.

PROPONENTS' rebuttal of those opposing the issue

The Facts on Game Farming:

REGULATORY HISTORY: There are 82 licensed game farms in Montana. Many conduct "canned hunts."
Montana has rules regulating game farms only because sportsmen have demanded the Legislature and the DOL
establish rules to protect our wildlife & livestock. The industry has consistently resisted measures to safeguard
our wildlife and agricultural heritage. During negotiated rule making, the game farm industry refused to even
discuss the only method to prevent nose-to-nose contact between wild and penned animals- double fencing.
APPLICATION OF 1-143: 1-143 does not prohibit current license holders from operating their businesses nor
does it prevent ranchers from passing on their lands and facilities. It prevents the transfer of a game farm
license. 1-143 does not prevent current owners from breeding, antler harvesting or slaughter of animals. Our
federal and state governments already limit the scope of agriculture to protect humans, wildlife, and livestock.
For example, Montanans cannot legally raise Red Deer or marijuana.

ANIMAL HEALTH: Montana has one of the most valuable wildUfe resources in the United States. The game ,
farm industry has a history of disease problems such as TB and now CWD. There is neither live test nor
prevention for CWT). Game farm animals have escaped from Montana game farms every year on
record. SB 7 does nothing to prevent escape of game farm animals. It's purpose was to stall eflforts to collect
signatures for the initiative in order to prevent a public vote and mislead the public into believing the industry
was doing something that protects our public wildlife.

ECONOMIC IMPACTS: The economic impact of selling fake sex-stimulants and shooting tame animals in
faked hunts is trivial in comparison to the economic impacts of hunting, and wildlife viewing, which generate
$413 million each year to Montana's economy. Game farms create a market for wildlife and wildlife parts
which lead to poaching and theft of wildlife. Montana hunters pay $200,000 each year to regulate game farms.
1-143 is the direct result of the Legislature's failure to deal with the problems of game farming.
Many other states are looking at eliminating game farms completely because of the many problems they cause.
Read " The Money Game" in the June Atlantic Monthly: www theatlantic com/issues/2000/06/herring

For information on disease: www mad-cow.org
Real Hunters Don^t Shoot Pets Keep Elk Wild & Free wwwmacow.org

OPPONENTS' rebuttal of those supporting the issue

BOTTOM LINE: The arguments for 1-143 rely on inflammatory rhetoric, skewed implications, and faulty
statistics. "There is a steady stream of speculations, allegations, inferences, emotional charges, soft science,
innuendo, and plain misinformation." (Region 4 Supervisor for Department offish. Wildlife & Parks - FWP).

QUIT LIVING IN THE PAST: Domestic deer and elk are NOT wildlife. Producers do not steal these anunals
out of the wild; rather, they are purchased from legal entities approved by FWP and are 10-12 generations
removed from wild populations. The 1-143 sponsors need to move beyond the animal theft, hybridization,
disease, and animal escape rhetoric, all of which are NON-ISSUES under the new rules and statutes abeady
implemented by the Department of Livestock and FWP. If the alternative livestock producers truly had an impact
on Montana's hunting heritage, the State would see a significant decline in hunting licenses being sold, which
certainly is NOT the case.

1-143 IS UNCONSTITUTIONAL: Art. II § 3 of the Montana Constitution provides that no person shall be
deprived of his/lier ability to acquire, possess, or protect private property. Because 1-143 effectively "steals" the
business of 92 Montana family farmers and ranchers, 1-143 is a "taking without just compensation." This taking
of private enterprise may cost the State (NOT the 1-143 sponsors) in excess of $50 million dollars.

PROGRAM FUNDING: Elk ranchers have attempted to eliminate use of sportsmen dollars for this industry
on two occasions, both of which were opposed by the 1-143 sponsors. Current funding for the program is based
on license fees and per-animal assessments ($32 for elk vs. $ 1 .20 for cattle). Over the past 5 years, the producers
have spent in excess of $4.4 million on regulatory safeguards for approximately 4,500 animals, hi addition, the
domestic elk industry has spent in excess of $500,000 on research for a live test and cure for CWD, which has
been a proven wildlife disease for more than 30 years. In contrast, I-I43 sponsors and related conservation
groups have spent $0 on CWD research.

For more information on the domestic elk industry go to: www.naelk.org

Secretary of State's note: The following material includes the complete text of each issue, including
deleted (interlined) language and new (underlined) language, as it will affect the Constitution or laws
of the State of Montana.

The Complete Text of Constitutional Amendment No. 34 (C-34)

AN ACT SUBMITTING TO THE QUALIFIED
ELECTORS OF MONTANA AN AMENDMENT
TO ARTICLE VIII, SECTION 13, OF THE
MONTANA CONSTITUTION REGARDING
INVESTMENT OF STATE COMPENSATION
INSURANCE FUND ASSETS; AND
PROVIDING AN EFFECTIVE DATE.

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

Section 1. Article VIII, section 13, of The
Constitution of the State of Montana is amended to
read:

"Section 13. Investment of public funds
and public retirement system and state
compensation insurance fund assets. (1) The
legislature shall provide for a unified investment
program for public funds and public retirement
system and state compensation insurance fund
assets and provide rules therefor, including
supervision of investment of surplus funds of all
counties, cities, towns, and other local
governmental entities. Each fund forming a part of
the unified investment program shall be separately
identified. Except as provided in subsection
subsections (3) and (4). no public funds shall be
invested in private corporate capital stock. The
investment program shall be audited at least
annually and a report thereof submitted to the
governor and legislature.

(2) The public school fund and the
permanent funds of the Montana university system
and all other state institutions of learning shall be
safely and conservatively invested in:

(a) Public securities of the state, its
subdivisions, local government units, and districts
within the state, or

(b) Bonds of the United States or other
securities fully guaranteed as to principal and
interest by the United States, or

fixed rate of interest as may be provided by law.

(3) Investment of public retirement system
assets shall be managed in a fiduciary capacity in
the same manner that a prudent expert acting in a
fiduciary capacity and familiar with the
circumstances would use in the conduct of an
enterprise of a similar character with similar aims.
Public retirement system assets may be invested in
private corporate capital stock.

(4) Investment of state compensation
insurance fund assets shall be managed in a
fiduciary capacity in the same manner that a
prudent expert acting in a fiduciary capacity and
familiar with the circumstances would use in the
conduct of a private insurance organization. State
compensation insurance fund assets may be
invested in private corporate capital stock.
However, the stock investments shall not exceed
25 percent of the book value of the state
compensation insurance fund's total invested
assets."

Section 2. Effective date. If approved by
the electorate, the amendments in section 1 are
effective January 1, 2001.

Section 3. Submission to electorate. This
amendment shall be submitted to the qualified
electors of Montana at the general election to be
held in November 2000 by printing on the ballot
the full title of this act and the following:

[] FOR allowing a maximum of 25 %

of state compensation insurance
fund assets to be invested in private
corporate capital stock.
[] AGAINST allowing a maximum of

25 % of state compensation
insurance fund assets to be invested
in private corporate capital stock.

The Complete Text of Constitutional Amendment No. 35 (C-35)

AN ACT SUBMITTING TO THE QUALIFIED
ELECTORS OF MONTANA AN AMENDMENT
TO ARTICLE XII OF THE MONTANA
CONSTITUTION REQUIRING THE
DEDICATION OF PART OF THE TOBACCO
LITIGATION SETTLEMENT MONEY TO A
TRUST FUND; ALLOWING THE
APPROPRIATION OF PART OF THE INCOME
FROM THE TRUST FUND FOR PURPOSES OF
TOBACCO DISEASE PREVENTION
PROGRAMS AND PROGRAMS RELATED TO
HEALTH CARE NEEDS; PROHIBITING THE
APPROPRIATION OF THE INCOME FOR THE
PURPOSES OF REPLACING MONEY USED
FOR TOBACCO DISEASE PREVENTION
PROGRAMS AND PROGRAMS THAT
EXISTED ON DECEMBER 31, 1999,
PROVIDING BENEFITS FOR HEALTH CARE
NEEDS OF MONTANANS; AND PROVIDING
AN EFFECTIVE DATE.

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

Section 1. Article XII of The Constitution
of the State of Montana is amended by adding a
new section 4 that reads:

Section 4. Montana tobacco settlement
trust fund. (1) The legislature shall dedicate not
less than two-fifths of any tobacco settlement
proceeds received on or after January 1 , 2001 , to a
trust fund, nine-tenths of the interest and income
of which may be appropriated. One-tenth of the
interest and income derived from the trust fund on
or after January 1, 2001, shall be deposited in the
trust fund. The principal of the trust fund and
one-tenth of the interest and income deposited in
the trust fund shall remain forever inviolate unless
appropriated by a vote of two-thirds of the
members of each house of the legislature.

(2) Appropriations of the interest, income,
or principal from the trust fund shall be used only
for tobacco disease prevention programs and state
programs providing benefits, services, or coverage
that are related to the health care needs of the
people of Montana and may not be used for other

purposes.

(3) Appropriations of the interest, income,
or principal from the trust fund shall not be used to
replace state or federal money used to fund
tobacco disease prevention programs and state
programs that existed on December 31, 1999,
providing benefits, services, or coverage of the
health care needs of the people of Montana.

Section 2. Effective date. This act is
effective upon approval by the electorate.

[ ] FOR dedicating not less than 40%
of the tobacco settlement to a trust
fund for health care benefits,
services, or coverage and tobacco
disease prevention.
[ ] AGAINST dedicating not less than
40% of the tobacco settlement to a
trust fund for health care benefits,
services, or coverage and tobacco
disease prevention.

The Complete Text of Legislative Referendum No. 115 (LR-115)

AN ACT REVISING THE TAXATION OF
CERTAIN VEHICLES; REPLACING THE
CURRENT SYSTEM OF TAXATION OF
AUTOMOBILES, VANS, SPORT UTILITY
VEHICLES, AND LIGHT TRUCKS WITH A
REGISTRATION FEE ON LIGHT VEHICLES;
ALLOWING THE OWNER OF A LIGHT
VEHICLE TO REGISTER THE VEHICLE FOR
A 24-MONTH PERIOD; ALLOWING
VEHICLES, INCLUDING MOTORCYCLES
AND QUADRICYCLES. 11 YEARS OLD AND
OLDER TO BE PERMANENTLY
REGISTERED; REVISING THE FEE IN LIEU
OF TAX ON MOTORCYCLES AND
QUADRICYCLES; PROVIDING FOR
DISTRIBUTION OF THE REGISTRATION
FEE; REPEALING THE SALES TAX ON NEW
MOTOR VEHICLES; ALLOWING A COUNTY
TO IMPOSE A LOCAL OPTION FEE ON
MOTOR VEHICLES WITH VOTER
APPROVAL; PROVIDING THAT THE
PROPOSED ACT BE SUBMITTED TO THE
QUALIFIED ELECTORS OF MONTANA;
AMENDING SECTIONS 7-1-2111, 15-6-201,
15-6-215, 15-8-202, 15-24-301, 15-24-302,
15-30-121, 15-50-207, 15-70-101, 15-70-125,
20-9-141, 20-9-331, 20-9-333, 20-9-360,
20-9-501, 20-10-144, 20-10-146, 27-1-306,
61-3-101, 61-3-301, 61-3-303, 61-3-314,
61-3-315, 61-3-316, 61-3-317, 61-3-332,
61-3-431, 61-3-456, 61-3-503, 61-3-506,
61-3-509, 61-3-520, 61-3-527, 61-3-537,
61-3-701, 61-3-707, 61-3-736, 61-3-737,
61-3-738, 61-4-112, AND 61-10-231, MCA;
REPEALING SECTIONS 61-3-502, 61-3-504,
AND 61-3-605, MCA; AND PROVIDING
EFFECTIVE DATES AND AN
APPLICABILITY DATE.

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

Section 1. Light vehicle registration
fee -- exemptions ~ 24-month registration. (1)

Except as provided in subsection (2), there is a
registration fee imposed on light vehicles. The

registration fee is in addition to other annual
registration fees.

(2) (a) Light vehicles that meet the
description of property exempt from taxation under
15-6-20 l(l)(a), (I)(c) through (l)(e), (l)(g),
(l)(m), (l)(o), (l)(q), or(l)(w), 15-6-203, or
15-6-215, except as provided in 61-3-520, are
exempt from the fee imposed in subsection (1).

(b) A motor vehicle owned by a disabled
veteran qualifying for special license plates under
61-3-332(10) or a motor vehicle registered under
61-3-456 is exempt from the fee imposed by this
section.

(c) A dealer for light vehicles is not
required to pay the registration fee for light
vehicles that constitute inventory of the dealership
and that are reported under 61-3-501.

(3) The owner of a motor vehicle subject
to the provisions of 61-3-313 dirough 61-3-316
may register the light vehicle for a period not to
exceed 24 months. The application for registration
or reregistration must be accompanied by the
registration fee and all other fees required in this
chapter for each 12-month period of the 24-month
period. However, the registration fees required
under 61-3-321 (l)(a) or (l)(b) paid at the time of
registration or reregistration apply for the entire
24-month registration period.

Section 2. Schedule of fees for light
vehicles ~ limitation on fee ~ payment of fee
required for operation. ( 1 ) The following
schedule, based on vehicle age, is used to
determine the annual registration fee imposed by
[section 1]:

Vehicle Age (in years) Annual Fee

4 or less $195

5-10 65

1 1 or more 6

(2) A light vehicle subject to the
registration fee imposed by [section 1] may not be
operated unless the fee has been paid and the
vehicle is licensed. A lien for fees due on the
vehicle occurs on the anniversary date of the
registration and continues until the fees have been
paid.

(3) For the purposes of this section,
"vehicle age" means the age of the vehicle
determined by subtracting the manufacturer's
model year of the vehicle from the calendar year
for which the registration fee is due.

Section 3. Permanent registration ~
transfer of vehicle ownership ~ rules. ( 1 ) (a) The

owner of a light vehicle 1 1 years old or older
subject to the registration fee, as provided in
[section 2], may permanently register the vehicle
upon payment of a $50 registration fee, the
applicable registration and license fees under
61-3-321, and an amount equal to five times the
applicable fees imposed for each of the following:

(i) junk vehicle disposal fees under
61-3-508;

(ii) weed control fees under 61-3-510;

(iii) county motor vehicle computer fees
under 61-3-511;

(iv) the local option vehicle tax or flat fee
on vehicles under 61-3-537;

(v) if applicable, license plate fees under
61-3-332 and renewal fees for personalized plates
under 61-3-406;

(vi) if applicable, the amateur radio
operator license plate fee under 61-3-422; and

(vii) if applicable, the annual scholarship
donation fee under 61-3-465.

(b) A person who permanently registers a
vehicle as provided in subsection (l)(a) shall pay
an additional $2 fee at the time of registration for
deposit in the state general fund. The department
shall pay from the general fund an amount equal to
the $2 fee collected under this subsection (l)(b)
from each motor vehicle registration to the pension
trust fund for payment of supplemental benefits
provided for in 19-6-709.

(2) In addition to the fees described in
subsection (1), an owner of a truck with a
manufacturer's rated capacity of 1 ton or less that
is permanently registered shall pay five times the
applicable fees imposed under 61-10-201.

(3) The owner of a vehicle that is
permanently registered under this section is not
subject to additional fees under [section 2] or to
other motor vehicle registration fees described in
this section for as long as the owner owns the

vehicle.

(4) The county treasurer shall:

(a) disburse the $50 registration fee
collected under this section as provided in
61-3-509;

(b) once each month, remit to the state
treasurer the amounts collected under this section
for the purposes of 61-3-121(5), 61-3-508,
61-3-510, 61-3-511, and 61-10-201

(5) (a) The permanent registration of a
vehicle allowed by this section may not be
transferred to a new owner. If the vehicle is
transferred to a new owner, the department shall
cancel the vehicle's permanent registration.

(b) Upon transfer of a vehicle registered
under this section to a new owner, the new owner
shall apply for a certificate of ownership under
61-3-201 and file an application for registration
under 61-3-303.

Section 4. Section 7-1-2111, MCA, is
amended to read:

"7-1-2111. Classification of counties. (1)

For the purpose of regulating the compensation
and salaries of all county officers, not otherwise
provided for, and for fixing the penalties of
officers' bonds, the counties of this state must be
classified according to the taxable valuation of the
property in the counties upon which the tax levy is
made, except for vehicles subject to taxation under
61-3-504, as follows:

(a) first class— all counties having a taxable
valuation of $50 million or more;

(b) second class— all counties having a
taxable valuation of $30 million or more and less
than $50 million;

(d) fourth class-all counties having a
taxable valuation of $15 million or more and less
than $20 JTiillion;

(e) fifth class-all counties having a
taxable valuation of $10 rnillion or more and less
than $15 million:

(f) sixth class— all counties having a
taxable valuation of $5 million or more and less
than $10 million;

(g) seventh class— all counties having a
taxable valuation of less than $5 million.

(2) As used in this section, "taxable
valuation" means the taxable value of taxable
property in the county as of the time of
determination plus:

(a) that portion of the taxable value of the
county on December 31. 1981, attributable to
automobiles and trucks having a rated capacity of
three-quarters of a ton or less;

(b) that portion of the taxable value of the
county on December 31, 1989, attributable to
automobiles and trucks having a manufacturer's
rated capacity of more than three-quarters of a ton
but less than or equal to 1 ton;

(c) that portion of the taxable value of the
county on December 31. 1997, attributable to
buses, trucks having a manufacmrer's rated
capacity of more than 1 ton, and truck tractors;

(d) that portion of the taxable value of the
county on December 31, 1997, attributable to
trailers, pole trailers, and semitrailers with a
declared weight of less than 26,000 pounds;

(e) the value provided by the department
of revenue under 15-36-324(13); and

(f) 6% of the taxable value of the county
on January 1 of each tax year."

Sections. Section 15-6-201, MCA, is
amended to read:

"15-6-201. Exempt categories. (1) The

following categories of property are exempt from
taxation:

(a) except as provided in 15-24-1203, the
property of:

(i) the United States, except:

(A) if congress passes legislation that
allows the state to tax property owned by the
federal government or an agency created by
congress; or

(B) as provided in 15-24-1 103;

(ii) the state, counties, cities, towns, and
school districts;

(iii) irrigation districts organized under the
laws of Montana and not operating for profit;

(iv) municipal corporations;

(v) public libraries; and

(vi) rural fire districts and other entities

providing fire protection under Title 7. chapter 33;

(b) buildings, with land that they occupy
and furnishings in the buildings, that are owned by
a church and used for actual religious worship or
for residences of the clergy, together with adjacent
land reasonably necessary for convenient use of the
buildings;

(c) property used exclusively for
agricultural and horticultural societies, for
educational purposes, and for nonprofit health care
facilities, as defined in 50-5-101, licensed by the
department of public health and human services
and organized under Title 35, chapter 2 or 3. A
health care facility that is not licensed by the
department of public health and human services
and organized under Title 35, chapter 2 or 3, is
not exempt.

(d) property that is:

(i) owned and held by an association or
corporation organized under Title 35, chapter 2,3,
20, or 21;

(ii) devoted exclusively to use in
connection with a cemetery or cemeteries for
which a permanent care and improvement fund has
been established as provided for in Title 35,
chapter 20, part 3; and

(iii) not maintained and operated for
private or corporate profit;

(e) property that is owned or property that
is leased from a federal, state, or local
governmental entity by institutions of purely public
charity if the property is directly used for purely
public charitable purposes;

(f) evidence of debt secured by mortgages
of record upon real or personal property in the
state of Montana;

(g) public museums, art galleries, zoos,
and observatories that are not used or held for
private or corporate profit;

(h) all household goods and furniture,
including but not limited to clocks, musical
instruments, sewing machines, and wearing
apparel of members of the family, used by the
owner for personal and domestic purposes or for
furnishing or equipping the family residence;

(i) truck canopy covers or toppers and
campers;

(j) a bicycle, as defined in 61-1-123, used

by the owner for personal transportation purposes;

(k) motor homes;

(1) all watercraft;

(m) motor vehicles, land, fixtures,
buildings, and improvements owned by a
cooperative association or nonprofit corporation
organized to furnish potable water to its members
or customers for uses other than the irrigation of
agricultural land;

(n) the right of entry that is a property
right reserved in land or received by mesne
conveyance (exclusive of leasehold interests),
devise, or succession to enter land with a surface
title that is held by another to explore, prospect, or
dig for oil, gas, coal, or minerals;

(o) (i) property that is owned and used by
a corporation or association organized and
operated exclusively for the care of persons with
developmental disabilities, persons with mental
illness, or persons with physical or mental
impairments that constitute or result in substantial
impediments to employment and that is not
operated for gain or profit; and

(ii) property that is owned and used by an
organization owning and operating facilities that
are for the care of the retired, aged, or chronically
ill and that are not operated for gain or profit;

(p) all farm buildings with a market value
of less than $500 and all agricultural implements
and machinery with a market value of less than
$100;

(q) property owned by a nonprofit
corporation that is organized to provide facilities
primarily for training and practice for or
competition in international sports and athletic
events and that is not held or used for private or
corporate gain or profit. For purposes of this
subsection (l)(q), "nonprofit corporation" means
an organization that is exempt from taxation under
section 501(c) of the Internal Revenue Code and
incorporated and admitted under the Montana
Nonprofit Corporation Act.

(r) the first $15,000 or less of market
value of tools owned by the taxpayer that are
customarily hand-held and that are used to:

(i) construct, repair, and maintain
improvements to real property; or

(ii) repair and maintain machinery.

equipment, appliances, or other personal property;

(s) harness, saddlery, and other tack
equipment;

(t) a title plant owned by a title insurer or
a title insurance producer, as those terms are
defined in 33-25-105;

(u) timber as defined in 15-44-102;

(v) all trailers as defined in 61-I-1I1,
semitrailers as defined in 61-1-112, pole trailers as
defined in 61-1-1 14, and travel trailers as defined
in61-l-131;

(w) all vehicles registered under 61-3-456;

(x) (i) buses, trucks having a
manufacturer's rated capacity of more than 1 ton,
and truck tractors, mcluding buses, trucks, and
truck tractors apportioned under Title 61, chapter
3, part 7; and

(ii) personal property that is attached to a
bus, truck, or truck tractor that is exempt under
subsection (l)(x)(i); and

(y) motorcycles and quadricycles: and

(z) light vehicles as defined in 61-1-139.

(2) (a) For the purposes of subsection
(l)(e), the term "instimtions of purely public
charity" includes any organization that meets the
following requirements:

(i) The organization qualifies as a
tax-exempt organization under the provisions of
section 501(c)(3), Internal Revenue Code, as
amended.

(ii) The organization accomplishes its
activities through absolute gramity or grants.
However, the organization may solicit or raise
funds by the sale of merchandise, memberships, or
tickets to public performances or entertainment or
by other similar types of fundraising activities.

(b) For the purposes of subsection (l)(g),
the term "public museums, art galleries, zoos, and
observatories" means governmental entities or
nonprofit organizations whose principal purpose is
to hold property for public display or for use as a
museum, art gallery, zoo, or observatory. The
exempt property includes all real and personal
property reasonably necessary for use in
connection with the public display or observatory
use. Unless the property is leased for a profit to a
governmental entity or nonprofit organization by
an individual or for-profit organization, real and

personal property owned by other persons is
exempt if it is:

(i) acoially used by the governmental
entity or nonprofit organization as a part of its
public display;

(ii) held for future display; or

(iii) used to house or store a public display.

(3) The following portions of the
appraised value of a capital investment in a
recognized nonfossil form of energy generation or
low emission wood or biomass combustion
devices, as defined in 15-32-102, are exempt from
taxation for a period of 10 years following
installation of the property:

(a) $20,000 in the case of a single-family
residential dwelling;

(b) $100,000 in the case of a multifamily
residential dwelling or a nonresidential structure."

Section 6. Section 15-6-215, MCA, is
amended to read:

"15-6-215. Exemption for motion
picture and television commercial property.

Except as provided in 15-24-305 and 61-3-520, all
property, including vehicles, brought into the state
or otherwise used for the exclusive purpose of
filming motion pictures or television commercials
is exempt from property taxation and registration
fees under [sections I and 2] . provided that the
property does not remain in the state for a period
in excess of 180 consecutive days in a calendar
year."

Section 7. Section 15-8-202, MCA, is
amended to read:

"15-8-202. Motor vehicle assessment by
department of justice. (1) (a) The department of
justice shall determine the registration fee on light
vehicles in accordance with [sections 1 through 31.

(b) The For the purposes of the local
option vehicle tax under 61-3-537. the department
of justice shall assess all light vehicles, subject to
61-3-313 through 61-3-316 and 61-3-501, for
taxation in accordance witli 61-3-503.

fb)(c} The department of justice shall
determine the fee in lieu of tax for all buses, trucks
having a manufacturer's rated capacity of more
than 1 ton, and truck tractors in accordance with

61-3-528 and 61-3-529.

fe){d} Taxes, registration fees, or fees in
lieu of tax on motor vehicles under this subsection
( 1 ) must be assessed or imposed in each year on
the persons who owned or claimed the motor
vehicles or in whose possession or control the
motor vehicle was on the anniversary registration
date.

(2) A tax or fee in lieu of tax may not be
assessed or imposed against motor vehicles subject
to taxation or to a fee in lieu of tax that constitute
inventory of motor vehicle dealers as of January 1 .
These vehicles and all other motor vehicles subject
to taxation or a fee in lieu of tax that are brought
into the state after January 1 as motor vehicle
dealers' inventories must be assessed to their
respective purchasers as of the dates the vehicles
are registered by the purchasers.

(3) "Purchasers" includes dealers who
apply for registration or reregistration of motor
vehicles, except as otherwise provided by

61 3 502.

(4) Goods, wares, and merchandise of
motor vehicle dealers, other than new motor
vehicles and new mobile homes, must be assessed
at market value as of January 1 . "

Section 8. Section 15-24-301, MCA, is
amended to read:

"15-24-301. Personal property brought
into the state ~ assessment ~ exceptions ~
custom combine equipment. (1) Except as
provided in subsections (2) through (5), property
in the following cases is subject to taxation and
assessment for all taxes levied that year in the
county in which it is located:

(a) any personal property^ (-including
livestock)^ brought, driven, or coming into this
state at any time during the year that is used in the
state for hire, compensation, or profit;

(b) property whose owner or user is
engaged in gainful occupation or business
enterprise in the state; or

(2) The taxes on this property are levied in
the same manner and to the same extent, except as
otherwise provided, as though the property had

been in the county on the regular assessment date,
provided that the property has not been regularly
assessed for the year in some other county of the
state.

(3) Nothing in this This section shaH may
not be construed to levy a tax against a merchant
or dealer within this state on goods, wares, or
merchandise brought into the county to replenish
the stock of the merchant or dealer.

(4) Any A motor vehicle not subject to a
fee in lieu of tax motor vehicle subject to the
registration fee imposed by Isections 1 and 2] that
is brought, driven, or coming into this state by any
a 'nonresident person temporarily employed in
Montana and used exclusively for transportation of
stieh the person is subject to taxation and
assessment for taxes registration fees as follows:

(a) The motor vehicle is taxed fee is
imposed by the county m which it is located.

(b) One-fourth of the annual tax liability
fee of the motor vehicle must be paid for each
quarter or portion of a quarter of the year that the
motor vehicle is located in Montana.

(5) Agricultural harvesting machinery
classified under class eight, licensed in other states
another state, and operated on the lands land of
persons a person other than the owner of the
machinery under contracts a contract for hire shaH
be is subject to a fee in lieu of taxation tax of $35
pef for each machine for the calendar year in
which the fee is collected. The machines
machinery shall be is subject to taxation under
class eight only if they are the machinery is sold in
Montana."

Section 9. Section 15-24-302. MCA, is
amended to read:

"15-24-302. CoUection procedure. All

property mentioned in 15-24-301 is assessed at the
same value as property of like kind and character,
and the assessment, levy, and collection of the tax
are governed by the provisions of 15-8-408,
15-16-115, 15-16-119, 15-16-404, 15-17-91 1, and
15-24-202, as amended, except:

(1) taxation of the imposition of
registration fees on motor vehicles under

15-24-301(4) to the extent that subsection varies
from the general provisions cited in this section;
and

(2) livestock taxation governed by
81-7-104 and Title 81, chapter 7, part 2."

Section 10. Section 15-30-121, MCA, is
amended to read:

"15-30-121. Deductions allowed in
computing net income. (1) In computing net
income, there are allowed as deductions:

(a) the items referred to in sections 161,
including the contributions referred to in
33-15-201(5)(b), and 211 of the Internal Revenue
Code of 1954 (26 U.S.C. 161 and 211), or as
sections 161 and 211 are labeled or amended,
subject to the following exceptions, which are not
deductible:

(i) items provided for in 15-30-123;

(ii) state income tax paid;

(iii) premium payments for medical care as
provided in subsection (l)(g)(i);

(iv) long-term care insurance premium
payments as provided in subsection (l)(g)(ii);

(b) federal income tax paid within the tax
year;

(c) expenses of household and dependent
care services as outlined in subsections (l)(c)(i)
through (l)(c)(iii) and (2) and subject to the
limitations and rules as set out in subsections
(l)(c)(iv) through (l)(c)(vi), as follows:

(i) expenses for household and dependent
care services necessary for gainful employment
incurred for: »

(A) a dependent under 15 years of age for
whom an exemption can be claimed;

(B) a dependent as allowable under
15-30-112(5), except that the limitations for age
and gross income do not apply, who is unable to
provide self-care because of physical or mental
illness; and

(ii) employment-related expenses incurred
for the following services, but only if the expenses
are incurred to enable the taxpayer to be gainfully
employed:

(A) household services that are attributable

to the care of the qualifying individual; and

(B) care of an individual who qualifies
under subsection (l)(c)(i);

(iii) expenses incurred in maintaining a
household if over half of the cost of maintaining
the household is furnished by an individual or, if
the individual is married during the applicable
period, is furnished by the individual and the
individual's spouse;

(iv) the amounts deductible in subsections
(l)(c)(i) through (l)(c)(iii), subject to the
following limitations:

(A) a deduction is allowed under
subsection (l)(c)(i) for employment-related
expenses incurred during the year only to the
extent that the expenses do not exceed $4,800;

(B) expenses for services in the household
are deductible under subsection (l)(c)(i) for
employment-related expenses only if they are
incurred for services in the taxpayer's household,
except that employment-related expenses incurred
for services outside the taxpayer's household are
deductible, but only if incurred for the care of a
qualifying individual described in subsection
(l)(c)(i)(A) and only to the extent that the expenses
incurred during the year do not exceed:

(I) $2,400 in the case of one qualifying
individual;

(II) $3,600 in the case of two qualifying
individuals; and

(III) $4,800 in the case of three or more
qualifying individuals;

(v) if the combined adjusted gross income
of the taxpayers exceeds $18,000 for the tax year
during which the expenses are incurred, the
amount of the employment-related expenses
incurred, to be reduced by one -half of the excess
of the combined adjusted gross income over
$18,000;

(vi) for purposes of this subsection (l)(c):

(A) married couples shall file a joint
return or file separately on the same form;

(B) if the taxpayer is married during any
period of the tax year, employment-related
expenses incurred are deductible only if:

(I) both spouses are gainfully employed, in
which case the expenses are deductible only to the
extent that they are a direct result of the

employment; or

(II) the spouse is a qualifying individual
described in subsection (l)(c)(i)(C);

(C) an individual legally separated from
the mdividual's spouse under a decree of divorce
or of separate maintenance may not be considered
as married;

(D) the deduction for employment-related
expenses must be divided equally between the
spouses when filing separately on the same form;

(E) payment made to a child of the
taxpayer who is under 19 years of age at the close
of the tax year and payments made to an individual
with respect to whom a deduction is allowable
under 15-30-1 12(5) are not deductible as
employment-related expenses;

(d) in the case of an individual, political
contributions determined in accordance with the
provisions of section 218(a) and (b) of the Internal
Revenue Code (now repealed) that were in effect
for the tax year ended December 31, 1978;

(e) that portion of expenses for organic
fertilizer and inorganic fertilizer produced as a
byproduct allowed as a deduction under 15-32-303
that was not otherwise deducted in computing
taxable income;

(f) contributions to the child abuse and
neglect prevention program provided for in
41-3-701, subject to the conditions set forth in
15-30-156;

(g) the entire amount of premium
payments made by the taxpayer, except premiums
deducted in determining Montana adjusted gross
income, or for which a credit was claimed under
15-30-128, for:

(i) insurance for medical care, as defined
in 26 U.S.C. 213(d), for coverage of the taxpayer,
the taxpayer's dependents, and the parents and
grandparents of the taxpayer; and

(ii) long-term care insurance policies or
certificates that provide coverage primarily for any
qualified long-term care services, as defined in 26
U.S.C. 7702B(c), for:

(A) the benefit of the taxpayer for tax
years beginning after December 31, 1994; or

(B) the benefit of the taxpayer, the
taxpayer's dependents, and the parents and
grandparents of the taxpayer for tax years

beginning after December 31, 1996; and

(h) contributions to the Montana drug
abuse resistance education program provided for in
44-2-702, subject to the conditions set forth in
15-30- 159;_and

(i) light vehicle registration fees, as
provided for in [sections 1 through 31. paid during
the tax year.

(2) (a) Subject to the conditions of
subsection (l)(c), a taxpayer who operates a family
day-care home or a group day-care home, as these
terms are defined in 52-2-703, and who cares for
the taxpayer's own child and at least one unrelated
child m the ordinary course of business may
deduct employment-related expenses considered to
have been paid for the care of the child.

(b) The amount of employment-related
expenses considered to have been paid by the
taxpayer is equal to the amount that the taxpayer
charges for the care of a child of tlie same age for
the same number of hours of care. The
employment-related expenses apply regardless of
whether any expenses actually have been paid.
Employment-related expenses may not exceed the
amounts specified in subsection (l)(c)(iv)(B).

(c) Only a day-care operator who is
licensed and registered as required in 52-2-721 is
allowed the deduction under this subsection (2).
(Subsection (l)(h) terminates on occurrence of
contingency-sec. 12, Ch. 808, L. 1991.)"

Section 11. Section 15-50-207, MCA, is
amended to read:

"15-50-207. Credit against other taxes -
credit for personal property taxes and certain
fees. (1) The additional license fees withheld or
otherwise paid as provided in this chapter may be
used as a credit on the contractor's corporation
license tax provided for in chapter 31 of this title
or on the contractor's income tax provided for in
chapter 30, depending upon the type of tax the
contractor is required to pay under the laws of the
state.

(2) Personal property taxes and the fee in
lieu of tax on buses, trucks having a
manufacturer's rated capacity of more than 1 ton,
or truck tractors^ as provided in 61-3-529. and the
registration fee on light vehicles, as provided in

[sections 1 through 31. paid in Montana on any
personal property or vehicle of the contractor that
IS used in the business of the contractor and is
located within this state may be credited against
the license fees required under this chapter.
However, in computing the tax credit allowed by
this section against the contractor's corporation
license tax or income tax, the tax credit against the
license fees required under this chapter may not be
considered as license fees paid for the purpose of
the income tax or corporation license tax credit."

Section 12. Section 15-70-101, MCA, is
amended to read:

"15-70-101. Disposition of funds. (1) All

taxes collected under this chapter must, in
accordance with the provisions of 15-1-501. be
placed in a highway revenue account in the state
special revenue fund to the credit of the
department of transportation. Begimiing July 1 .
2001. all interest and income earned on the
account must be deposited to the credit of the
"account and any unexpended balance in the
account must remain in the account. Those funds
allocated to cities, towns, counties, and
consolidated city-county goverrunents in this
section must, in accordance with the provisions of
15-1-501, be paid by the department of
transportation from the state special revenue fund
to the cities, towns, counties, and consolidated
city -county governments.

(2) Theamountof $16.766.000of the
taxes collected under this chapter is statutorily
appropriated, as provided in 17-7-502, to the
department of transportation and must be allocated
each fiscal year on a monthly basis to the counties,
incorporated cities and towns, and consolidated
city-county governments in Montana for
construction, reconstruction, maintenance, and
repair of rural roads and city or town streets and
alleys, as provided in subsections (2)(a) through
(2)(c):

(a) The amount of $54,000 must be
designated for the purposes and functions of the
Montana local technical assistance transportation
program in Bozeman.

(b) The amount of $6,323,000 must be
divided among the various counties in the

following manner:

(i) 40% in the ratio that the rural road
mileage in each county, exclusive of the national
highway system and the primary system, bears to
the total rural road mileage in the state, exclusive
of the national highway system and the primary
system;

(ii) 40% in the ratio that the rural
population in each county outside incorporated
cities and towns bears to the total rural population
in the state outside incorporated cities and towns;

(iii) 20% in the ratio that the land area of
each county bears to the total land area of the
state.

(i) 50% of the sum in the ratio that the
population within the corporate limits of the city or
town bears to the total population within corporate
limits of all the cities and towns in Montana;

(ii) 50% in the ratio that the city or town
street and alley mileage, exclusive of the national
highway system and the primary system, within
corporate limits bears to the total street and alley
mileage, exclusive of the national highway system
and primary system, within the corporate limits of
all cities and towns in Montana.

(3) (a) For the purpose of allocating the
funds in subsections (2)(b) and (2)(c) to a
consolidated city-county government, each entity
must be considered to have separate city and
county boundaries. The city limit boundaries are
the last official city limit boundaries for the former
city and must be used to determine city and county
populations and road mileages in the following
manner:

(i) Percentage factors must be calculated
to determine separate populations for the city and
rural county by using the last official decennial
federal census population figures that recognized
an incorporated city and the rural county. The
factors must be based on the ratio of the city to the
rural county population, considering the total
population in the county minus the population of
any other incorporated city or town in the county.

(ii) The city and county populations must
be calculated by multiplying the total county

population, as determined by the latest official
decennial census or the latest interim year
population estimates from the Montana department
of commerce as supplied by the United States
bureau of the census, minus the population of any
other incorporated city or town in that county, by
the factors established in subsection (3)(a)(i).

(b) The amount allocated by this method
for the city and the county must be combined, and
single monthly payments must be made to the
consolidated city-county government.

(4) All funds allocated by this section to
counties, cities, towns, and consolidated
city-county governments must be used for the
construction, reconstruction, maintenance, and
repair of rural roads or city or town streets and
alleys or for the share that the city, town, county,
or consolidated city-county government might
otherwise expend for proportionate matching of
federal funds allocated for the construction of
roads or streets that are part of the primary or
secondary highway system or urban extensions to
those systems. The governing body of a town or
third-class city, as defined in 7-1-41 11, may each
year expend no more than 25 % of the funds
allocated to that town or third-class city for the
purchase of capital equipment and supplies to be
used for the maintenance and repair of town or
third-class city streets and alleys.

(5) All funds allocated by this section to
counties, cities, towns, and consolidated
city-county governments must be disbursed to the
lowest responsible bidder according to applicable
bidding procedures followed in all cases in which
the contract for construction, reconstruction,
maintenance, or repair is in excess of $4,000.

(6) For the purposes of this section in
which distribution of funds is made on a basis
related to population, the population must be
determined annually for counties and biennially for
cities according to the latest official decennial
census or the latest interim year population
estimates from the Montana department of
commerce as supplied by the United States bureau
of the census.

(7) For the purposes of this section in
which determination of mileage is necessary for
distribution of funds, it is the responsibility of the

cities, towns, counties, and consolidated
city-county governments to furnish to the
department of transportation a yearly certified
statement indicating the total mileage within their
respective areas applicable to this chapter. All
mileage submitted is subject to review and
approval by the department of transportation.

(8) Except by a town or third-class city as
provided in subsection (4), the funds authorized by
this section may not be used for the purchase of
capital equipment.

(9) Funds authorized by this section must
be used for construction and maintenance
programs."

Section 13. Section 15-70-125, MCA. is
amended to read:

"15-70-125. Highway nonrestricted
account. There is a highway nonrestricted account
in the state special revenue fund. All interest and
penalties collected under this chapter, except those
collected by a justice's court, must, in accordance
with the provisions of 15-1-501, be placed in the
highway nonrestricted account. Beginning July 1.
2001. all interest and income earned on the
account must be deposited to the credit of the
account and any unexpended balance in the
account must remain in the account."

Section 14. Section 20-9-141, MCA, is
amended to read:

"20-9-141. Computation of general fund
net levy requirement by county superintendent.

(1) The county superintendent shall compute the
levy requirement for each district's general fund
on the basis of the following procedure:

(a) Determine the funding required for the
district's final general fund budget less the sum of
direct state aid and the special education allowable
cost payment for the district by totaling:

(i) the district's nonisolated school BASE
budget requirement to be met by a district levy as
provided in 20-9-303; and

(ii) any general fund budget amount
adopted by the trustees of the district under the
provisions of 20-9-308 and 20-9-353. including
any additional funding for a general fund budget
that exceeds the maximum general fund budget.

(b) Determine the money available for the
reduction of the property tax on the district for the
general fund by totaling:

(i) the general fund balance
reappropriated, as established under the provisions
of 20-9-104;

(ii) amounts received in the last fiscal year
for which revenue reporting was required for each
of the following:

(A) tuition payments for out-of-district
pupils under the provisions of 20-5-321 through
20-5-323, except the amount of tuition received for
a pupil who is a child with disabilities in excess of
the amount received for a pupil without
disabilities, as calculated under 20-5-323(2);

(B) revenue from taxes and fees imposed
under 23-2-517, 23-2-803, 61 ■3-504, 61-3-521,
61-3-527, 61-3-529, 61-3-537, [sections 1 through
31. [section 381. and 67-3-204;

(D) interest earned by the investment of
general fund cash in accordance with the
provisions of 20-9-213(4);

(E) revenue from corporation license taxes
collected from financial institutions under the
provisions of 15-31-702; and

(F) any other revenue received during the
school fiscal year that may be used to finance the
general fund, excluding any guaranteed tax base
aid; and

(iii) pursuant to subsection (4), anticipated
revenue from coal gross proceeds under
15-23-703.

(c) Notwithstanding the provisions of
subsection (2), subtract the money available to
reduce the property tax required to finance the
general fund that has been determined in
subsection ( 1 )(b) from any general fund budget
amount adopted by the trustees of the district, up
to the BASE budget amount, to determine the
general fund BASE budget levy requirement.

(d) Subtract any amount remaining after
the determination in subsection ( 1 )(c) from any
additional funding requirement to be met by an
over-BASE budget amount, a district levy as
provided in 20-9-303. and any additional financing
as provided in 20-9-353 to determine any
additional general fund levy requirements.

(2) The county superintendent shall
calculate the number of mills to be levied on the
taxable property in the district to finance the
general fund levy requirement for any amount that
does not exceed the BASE budget amount for the
district by dividing the amount determined in
subsection (l)(c) by the sum of:

(a) the amount of guaranteed tax base aid
that the district will receive for each mill levied, as
certified by the superintendent of public
instruction; and

(b) the taxable valuation of the district
divided by 1,000.

(3) The net general fund levy requirement
determined in subsections (l)(c) and (l)(d) must be
reported to the county commissioners on the fourth
Monday of August by the county superintendent as
the general fund net levy requirement for the
district, and a levy must be set by the county
commissioners in accordance with 20-9-142.

(4) For each school district, the
department of revenue shall calculate and report to
the county superintendent the amount of revenue
anticipated for the ensuing fiscal year from
revenue from coal gross proceeds under
15-23-703."

Section 15. Section 20-9-331, MCA. is
amended to read:

"20-9-331. Basic county tax for
elementary equalization and other revenue for
county equalization of elementary BASE
funding program. (1) The county commissioners
of each county shall levy an annual basic county
tax of 33 mills on the dollar of the taxable value of
all taxable property within the county, except for
property subject to a tax or fee under 23-2-517,
23-2-803. 61-3-504, 61-3-521, 61-3-527,
61-3-529, 61-3-537, [sections 1 through 31.
[section 381. and 67-3-204, for the purposes of
elementary equalization and state BASE funding
program support. The revenue collected from this
levy must be apportioned to the support of the
elementary BASE funding programs of the school
districts in the county and to the state general fund
in the following manner:

(a) In order to determine the amount of
revenue raised by this levy that is retained by the

county, the sum of the estimated revenue identified
in subsection (2) must be subtracted from the total
of the BASE funding programs of all elementary
districts of the county.

(b) If the basic levy and other revenue
prescribed by this section produce more revenue
than is required to repay a state advance for county
equalization, the county treasurer shall remit the
surplus funds to the state treasurer for deposit to
the state general fund immediately upon
occurrence of a surplus balance and each
subsequent month, with any final remittance due
no later than June 20 of the fiscal year for which
the levy has been set.

(2) The revenue realized from the county's
portion of the levy prescribed by this section and
the revenue from the following sources must be
used for the equalization of the elementary BASE
funding program of the county as prescribed in
20-9-335. and a separate accounting must be kept
of the revenue by the county treasurer in
accordance with 20-9-212(1):

(a) the portion of the federal Taylor
Grazing Act funds distributed to a county and
designated for the elementary county equalization
fund under the provisions of 17-3-222;

(b) the portion of the federal flood control
act funds distributed to a county and designated for
expendimre for the benefit of the county common
schools under the provisions of 17-3-232;

(c) all money paid into the county treasury
as a result of fines for violations of law, except
money paid to a justice's court, and the use of
which is not otherwise specified by law;

(d) any money remaining at the end of the
immediately preceding school fiscal year in the
county treasurer's accounts for the various sources
of revenue established or referred to in this
section;

(e) any federal or state money distributed
to the county as payment in lieu of property
taxation, including federal forest reserve funds
allocated under the provisions of 17-3-213;

(f) gross proceeds taxes from coal under
15-23^703;

(g) oil and natural gas production taxes;
(h) anticipated local government severance

tax payments for calendar year 1995 production as

provided in 15-36-325; and

(i) anticipated revenue from property taxes
and fees imposed under 23-2-517, 23-2-803,
61-3-504, 61-3-521, 61 3 527, 61-3-529,
61-3-537, [section 381. and 67-3-204."

Section 16. Section 20-9-333, MCA, is
amended to read:

"20-9-333. Basic county tax for high
school equalization and other revenue for
county equalization of high school BASE
funding program. (1) The county commissioners
of each county shall levy an annual basic county
tax of 22 mills on the dollar of the taxable value of
all taxable property within the county, except for
property subject to a tax or fee under 23-2-517,
23-2-803, 61-3-504, 61-3-521. 61-3-527,
61-3-529, 61-3-537, [sections 1 through 31.
[section 381. and 67-3-204, for the purposes of
high school equalization and state BASE funding
program support. The revenue collected from this
levy must be apportioned to the support of the
BASE funding programs of high school districts in
the county and to the state general fund in the
following manner:

(a) In order to determine the amount of
revenue raised by this levy that is retained by the
county, the sum of the estimated revenue identified
in subsection (2) must be subtracted from the sum
of the county's high school tuition obligation and
the total of the BASE funding programs of all high
school districts of the county.

(2) The revenue realized from the county's
portion of the levy prescribed in this section and
the revenue from the following sources must be
used for the equalization of the high school BASE
funding program of the county as prescribed in
20-9-335, and a separate accounting must be kept

of the revenue by the county treasurer in
accordance with 20-9-212(1):

(a) any money remaining at the end of the
immediately preceding school fiscal year in the
county treasurer's accounts for the various sources
of revenue established in this section;

(b) any federal or state money distributed
to the county as payment in lieu of property
taxation, including federal forest reserve funds
allocated under the provisions of 17-3-213;

(d) oil and namral gas production taxes;

(e) anticipated local government severance
tax payments for calendar year 1995 production as
provided in 15-36-325; and

(f) anticipated revenue from property taxes
and fees imposed under 23-2-517, 23-2-803,
61-3-504, 61-3-521. 61-3-527, 61-3-529,
61-3-537, [section 381. and 67-3-204."

Section 17. Section 20-9-360, MCA, is
amended to read:

"20-9-360. State equalization aid levy.

There is a levy of 40 mills imposed by the county
commissioners of each county on all taxable
property within the state, except property for
which a tax or fee is required under 23-2-517,
23-2-803, ^^-3-5047 61-3-521, 61-3-527,
61-3-529, 61-3-537, [sections 1 dirough 31.
[section 38]. and 67-3-204. Proceeds of the levy
must be remitted to the state treasurer and must be
deposited to the credit of the state general fund for
state equalization aid to the public schools of
Montana. "

Section 18. Section 20-9-501, MCA, is
amended to read:

"20-9-501. Retirement fund. (1) The

trustees of a district employing personnel who are
members of the teachers' retirement system or the
public employees' retirement system or who are
covered by unemployment insurance or who are
covered by any federal social security system
requiring employer contributions shall establish a
retirement fund for the purposes of budgeting and
paying the employer's contributions to the
systems. The district's contribution for each

employee who is a member of the teachers'
retirement system must be calculated in accordance
with Title 19. chapter 20, part 6. The district's
contribution for each employee who is a member
of the public employees' retirement system must
be calculated in accordance with 19-3-316. The
district's contributions for each employee covered
by any federal social security system must be paid
in accordance with federal law and regulation. The
district's contribution for each employee who is
covered by unemployment insurance must be paid
in accordance with Title 39, chapter 51 , part 1 1 .

(2) The trustees of a district required to
make a contribution to a system referred to in
subsection (1) shall include in the retirement fund
of the final budget the estimated amount of the
employer's contribution. After the final retirement
fund budget has been adopted, the trustees shall
pay the employer contributions to the systems in
accordance with the financial administration
provisions of this title.

(3) When the final retirement fund budget
has been adopted, the county superintendent shall
establish the levy requirement by:

(a) determining the sum of the money
available to reduce the retirement fund levy
requirement by adding:

(i) any anticipated money that may be
realized in the retirement fund during the ensuing
school fiscal year, including anticipated revenue
from property taxes and fees imposed under
23-2-517, 23-2-803, 61 ■3-504, 61-3-521,
61-3-527, 61-3-529, 61-3-537, [sections 1 through
31. [section 381. and 67-3-204;

(ii) oil and namral gas production taxes;

(iii) anticipated local government severance
tax payments for calendar year 1995 production as
provided in 15-36-325;

(iv) coal gross proceeds taxes under
15-23-703;

(v) any fund balance available for
reappropriation as determined by subtracting the
amount of the end-of-the-year fund balance
earmarked as the retirement fund operating reserve
for the ensuing school fiscal year by the trustees
from the end-of-the-year fund balance in the
retirement fund. The retirement fund operating
reserve may not be more than 35 % of the final

retirement fund budget for the ensuing school
fiscal year and must be used for the purpose of
paying retirement fund warrants issued by the
district under the final retirement fund budget.

(vi) any other revenue anticipated that may
be realized in the retirement fund during the
ensuing school fiscal year, excluding any
guaranteed tax base aid.

(b) notwithstanding the provisions of
subsection (8), subtracting the money available for
reduction of the levy requirement, as determined in .
subsection (3)(a), from the budgeted amount for
expenditures in the final retirement fund budget.

(4) The county superintendent shall:

(a) total the net retirement fund levy
requirements separately for all elementary school
districts, all high school districts, and all
community college districts of the county,
including any prorated joint district or special
education cooperative agreement levy
requirements; and

(b) report each levy requirement to the
county commissioners on the fourth Monday of
August as the respective county levy requirements
for elementary district, high school district, and
community college district retirement funds.

(5) The county commissioners shall fix
and set the county levy in accordance with
20-9-142.

(6) The net retirement fiind levy
requirement for a joint elementary district or a
joint high school district must be prorated to each
county in which a part of the district is located in
the same proportion as the district ANB of the
joint district is distributed by pupil residence in
each county. The county superintendents of the
counties affected shall jointly determine the net
retirement fund levy requirement for each county
as provided in 20-9-151.

(7) The net retirement fund levy
requirement for districts that are members of
special education cooperative agreements must be
prorated to each county in which the district is
located in the same proportion as the special
education cooperative budget is prorated to the
member school districts. The county
superintendents of the counties affected shall
jointly determine the net retirement fund levy

requirement for each county in the same manner as
provided in 20-9-151, and the county
commissioners shall fix and levy the net retirement
fund levy for each county in the same manner as
provided in 20-9-152.

(8) The county superintendent shall
calculate the number of mills to be levied on the
taxable property in the county to finance the
retirement fund net levy requirement by dividmg
the amount determined in subsection (4)(a) by the
sum of:

(a) the amount of guaranteed tax base aid
that the county will receive for each mill levied, as
certified by the superintendent of public
instruction; and

(b) the taxable valuation of the district
divided by 1,000."

Section 19. Section 20-10-144, MCA, is
amended to read:

"20-10-144. Computation of revenue
and net tax levy requirements for district
transportation fund budget. Before the second
Monday of August, the county superintendent shall
compute the revenue available to finance the
transportation fund budget of each district. The
county superintendent shall compute the revenue
for each district on the following basis:

(1) The "schedule amount" of the budget
expenditures that is derived from the rate schedules
in 20-10-141 and 20-10-142 must be determined
by adding the following amounts:

(a) the sum of the maximum reimbursable
expenditures for all approved school bus routes
maintained by the district (to determine the
maximum reimbursable expenditure, multiply the
applicable rate per for each bus mile by the total
number of miles to be traveled during the ensuing
school fiscal year on each bus route approved by
the county transportation committee and
maintained by the district); plus

(b) the total of all individual transportation
per diem reimbursement rates for the district as
determined from the contracts submitted by the
district multiplied by the number of
pupil-instruction days scheduled for the ensuing
school attendance year; plus

home study or supervised correspondence study
for the ensuing school fiscal year; plus

(d) the amount budgeted in the budget for
the contingency amount permitted m 20-10-143,
except if the amount exceeds 10% of the total of
subsections (l)(a), (l)(b), and (l)(c) or $100,
whichever is larger, the contingency amount on the
budget must be reduced to the limitation amount
and used in this determination of the schedule
amount; plus

(e) any estimated costs for transporting a
child out of district when the child has mandatory
approval to attend school in a district outside the
district of residence.

(2) (a) The schedule amount determined in
subsection (1) or the total transportation fund
budget, whichever is smaller, is divided by 2 and
is used to determine the available state and county
revenue to be budgeted on the following basis:

(i) one-half is the budgeted state
transportation reimbursement, except that the state
transportation reimbursement for the transportation
of special education pupils under the provisions of
20-7-442 must be 50% of the schedule amount
attributed to the transportation of special education
pupils; and

(ii) one-half is the budgeted county
transportation fund reimbursement and must be
financed in the manner provided in 20-10-146.

(b) When the district has a sufficient
amount of fund balance for reappropriation and
other sources of district revenue, as determined in
subsection (3), to reduce the total district
obligation for financing to zero, any remaining
amount of district revenue and fund balance
reappropriated must be used to reduce the county
financing obligation in subsection (2)(a)(ii) and, if
the county financing obligations are reduced to
zero, to reduce the state financial obligation in
subsection (2)(a)(i).

(c) The county revenue requirement for a
joint district, after the application of any district
money under subsection (2)(b), must be prorated
to each county incorporated by the joint district in
the same proportion as the ANB of the joint
district is distributed by pupil residence in each
county.

(3) The total of the money available for

the reduction of property tax on the district for the
transportation fiand must be determined by
totaling:

(a) anticipated federal money received
under the provisions of 20 U.S.C. 7701, et seq.,
or other anticipated federal money received in lieu
of that federal act;

(b) anticipated payments from other
districts for providing school bus transportation
services for the district;

(d) anticipated or reappropriated interest to
be earned by the investment of transportation fund
cash in accordance with the provisions of
20-9-213(4);

(e) anticipated or reappropriated revenue
from property taxes and fees imposed under
23-2-517, 23-2-803, 6i-3-5©47 61-3-521.
61-3-527, 61-3-529, 61-3-537, Isections 1 through
31. [section 381. and 67-3-204;

(f) anticipated revenue from coal gross
proceeds under 15-23-703;

(g) anticipated oil and natural gas
production taxes;

(h) anticipated local government severance
tax payments for calendar year 1995 production;

(i) anticipated transportation payments for
out-of-district pupils under the provisions of
20-5-320 through 20-5-324;

(j) any other revenue anticipated by the
trustees to be earned during the ensuing school
fiscal year that may be used to finance the
transportation fund; and

(k) any fund balance available for
reappropriation as determined by subtracting the
amount of the end-of-the-year fund balance
earmarked as the transportation fund operating
reserve for the ensuing school fiscal year by the
trustees from the end-of-the-year fund balance in
the transportation fund. The operating reserve may
not be more than 20% of the final transportation
fund budget for the ensuing school fiscal year and
is for the purpose of paying transportation fund
warrants issued by the district under the final
transportation fund budget.

(4) The district levy requirement for each

district's transportation fund must be computed by:

(a) subtracting the schedule amount
calculated in subsection (1) from the total
preliminary transportation budget amount; and

(b) subtracting the amount of money
available to reduce the property tax on the district,
as determined in subsection (3), from the amount
determined in subsection (4)(a).

(5) The transportation fund levy
requirements determined in subsection (4) for each
district must be reported to the county
commissioners on the fourth Monday of August by
the county superintendent as the transportation
fund levy requirements for the district, and the
levy must be made by the county commissioners in
accordance with 20-9-142."

Section 20. Section 20-10-146, MCA, is
amended to read:

"20-10-146. County transportation
reimbursement. (1) The apportionment of the
county transportation reimbursement by the county
superintendent for school bus transportation or
individual transportation that is actually rendered
by a district in accordance with this title, board of
public education transportation policy, and the
transportation rules of the superintendent of public
instruction must be the same as the state
transportation reimbursement payment, except
that:

(a) if any cash was used to reduce the
budgeted county transportation reimbursement
under the provisions of 20-10- 144(2)(b), the
annual apportionment is limited to the budget
amount;

(b) when the county transportation
reimbursement for a school bus has been prorated
between two or more counties because the school
bus is conveying pupils of more than one district
located in the counties, the apportionment of the
county transportation reimbursement must be
adjusted to pay the amount computed under the
proration; and

(c) when county transportation
reimbursement is required under the mandatory
attendance agreement provisions of 20-5-32 1 .

(2) The county transportation net levy
requirement for the financing of the county

transportation fund reimbursements to districts is
computed by:

(a) totaling the net requirement for all
districts of the county, including reimbursements
to a special education cooperative or prorated
reimbursements to joint districts or
reimbursements under the mandatory attendance
agreement provisions of 20-5-321 ;

(b) determining the sum of the money
available to reduce the county transportation net
levy requirement by adding:

(i) anticipated money that may be realized
in the county transportation fund during the
ensuing school fiscal year, including anticipated
revenue from property taxes and fees imposed
under 23-2-517, 23-2-803, 61-3-504, 61-3-521,
61-3-527, 61-3-529, 61-3-537, [sections 1 through
31 ■ [section 381. and 67-3-204;

(ii) oil and natural gas production taxes;

(iii) anticipated local govermnent severance
tax payments for calendar year 1995 production;

(iv) coal gross proceeds taxes under
15-23-703;

(v) any fund balance available for
reappropriation from the end-of-the-year fund
balance in the county transportation fund;

(vi) federal forest reserve funds allocated
under the provisions of 17-3-213; and

(vii) other revenue anticipated that may be
realized in the county transportation fund during
the ensuing school fiscal year; and

(c) subtracting the money available, as
determined in subsection (2)(b), to reduce the levy
requirement from the county transportation net
levy requirement.

(3) The net levy requirement determined
in subsection (2)(c) must be reported to the county
commissioners on the fourth Monday of August by
the county superintendent, and a levy must be set
by the county commissioners in accordance with
20-9-142.

(4) The county superintendent shall
apportion the county transportation reimbursement
from the proceeds of the county transportation
fund. The county superintendent shall order the
county treasurer to make the apportionments in
accordance with 20-9-212(2) and after the receipt
of the semiannual state transportation

reimbursement payments."

Section 21. Section 27-1-306, MCA, is
amended to read:

"27-1-306. When replacement value to
be allowed. The measure of damages in a case in
which the cost of repairing a motor vehicle
exceeds its value is the actual replacement value of
the motor vehicle rather than its "book" value
unless, after the damages arise, the parties agree to
use the "book" value. "Book" value must be
determined by referring to the used car national
appraisal guides listed in 61-3-503(l)(c) referred to
in 61-3-208. Acmal replacement value is the actual
cash value of the motor vehicle immediately prior
to the damage. "Book" value may be used to assist
in determining the actual replacement value of the
motor vehicle."

Section 22. Section 61-3-101, MCA, is
amended to read:

"61-3-101. Duties of department ~
records. (1) The department shall keep a record as
specified in this section of all motor vehicles,
trailers, and semitrailers of every kind, of
certificates of registration and ownership of those
vehicles, and of all manufacUirers and dealers in
motor vehicles.

(2) The record must show the following:

(a) the name of the owner, tlie residence
address by street or rural route, the town, and the
countyr and the mailing address if different thtm
from the residence address;

(b) the name and address of the
conditional sales vendor, mortgagee, or other
lienholder and the amount due under Uie contract
or lien;

(d) the manufacmrer's designation of style
of the vehicle;

(e) the identifying number;

(f) the year of manufacture;

(g) the character of motive power and
shipping weight of the vehicle as shown by the
manufacturer;

(h) the distinctive license number assigned
to the vehicle, if any;

(i) if a truck or trailer, the number of tens^

tons capacity or GVW if imprinted on the
manufacturer's identification plate;

(j) except as provided in 61-3-103, the
name and complete address of any holder of a
perfected security interest in the vehicle; and

(k) other information that may from time
to time be found desirable.

(3) The department shall file applications
for registration received by it from county
treasurers and register the vehicles and the vehicle
owners as follows:

(a) under the distinctive license number
assigned to the vehicle by the county treasurer;

(b) alphabetically under the name of the
owner;

(d) another index of registration as the
department considers expedient.

(4) The department shall determine the
amount of motor vehicle taxes and fees, including
local option taxes or fees, to be collected at the
time of registration for each light vehicle subject to
ta* a registration fee under 61-3-503 [sections 1
through 31 and for each bus, truck having a
manufacmrer's rated capacity of more than 1 ton,
and truck tractor subject to a fee in lieu of tax
under 61-3-528 and 61-3-529. The county
treasurer shall collect the taxes and registration
fee, other appropriate fees, and local option taxes
or fees, if applicable, on each motor vehicle at the
time of its registration.

(5) Vehicle registration records and
indexes and driver's license fecords and indexes
may be maintained by electronic recording and
storage media.

(6) In the case of dealers, the records must
show the information contained in the application
for a dealer's license^ as required by 61-4-101
through 61-4-105, as well as the distinctive license
number assigned to the dealer.

(7) In order to prevent an accumulation of
unneeded records and files, regardless of any other
statutory requirements, the department may
destroy all records and files that relate to vehicles
that have not been registered within the preceding
4 years and that do not have an active lien.

(8) All records must be open to inspection

during reasonable business hours, and the
department shall furnish any information from the
records upon payment by the applicant of the cost
of the information requested. Prior to providing
the information, the department may require the
applicant to provide identification. However, the
department may, by rule, reasonably restrict
disclosure of information on an owner or the
owner's vehicle if the owner has requested in
writing that the department not disclose the
information. "

Section 23. Section 61-3-301, MCA, is
amended to read:

"61-3-301. Registration ~ license plate
required ~ display. ( 1 ) Except as otherwise
provided in this chapter, ne a person may not
operate a motor vehicle upon the public highways
of Montana unless the vehicle is properly
registered and has the proper number plates
conspicuously displayed, one on the front and one
on the rear of the vehicle, each securely fastened
to prevent it from swinging and unobstructed from
plain view, except that trailers, semitrailers,
quadricycles, motorcycles, and vehicles authorized
in 61-4-102(6) to display demonstrator plates may
have but one number plate conspicuously displayed
on the rear. N© A person may not display on a
vehicle at the same time a number assigned to it
under any motor vehicle law except as provided in
this chapter. A junk vehicle, as defined in Title 75,
chapter 10, part 5, being driven or towed to an
auto wrecking graveyard for disposal is exempt
from the provisions of this section.

(2) N« A person may not purchase or
display on a vehicle a license plate bearing the
number assigned to any county^ as provided in
61-3-332^ other than the county of his the person's
permanent residence at the time of application for
registration. However, the owner of any a motor
vehicle requiring a license plate on any a motor
vehicle used in the public transportation of persons
or property may make application for the license in
any county through which the motor vehicle passes
in its regularly scheduled route, and the license
plate issued bearing the number assigned to that
county may be displayed on the motor vehicle in
any other county of the state.

(3) It is unlawful to use license plates
issued to one vehicle on any other vehicle, trailer,
or semitrailer unless legally transferred as
provided by statute? or to repaint old license plates
to resemble current license plates.

(4) This section does not apply to a
vehicle exempt from taxation under 15-6-215 or
subject to taxation the registration fee or fee in lieu
of tax under 61-3-520.

(5) T^ny A person violating these
provisions is guilty of a misdemeanor and subject
to the penalty prescribed in 61-3-601."

Section 24. Section 61-3-303, MCA, is
amended to read:

"61-3-303. Application for registration.

(1) Each owner of a motor vehicle operated or
driven upon the public highways of this state shall
for each motor vehicle owned, except as otherwise
provided in this section, file or cause to be filed in
the office of the county treasurer in the county
where the owner permanently resides at the time of
making the application or, if the vehicle is owned
by a corporation or used primarily for commercial
purposes, in the taxing jurisdiction of the county
where the vehicle is permanently assigned an
application for registration or reregistration on a
form prescribed by the department. The
application must contain:

(a) the name and address of the owner,
giving the county, school district, and town or city
within whose corporate limits the motor vehicle is
taxable, if taxable, or within whose corporate
limits the owner's residence is located if the motor
vehicle is not taxable;

(b) the name and address of the holder of
any security interest in the motor vehicle;

(c) a description of the motor vehicle,
including make, year model, engine or serial
number, manufacturer's model or letter, gross
weight, declared weight on all trucks for which the
manufacuirer's rated capacity is 1 ton or less, and
type of body and, if a truck, the manufacturer's
rated capacity;

(d) the declared weight on all trailers
operating intrastate, except travel trailers or
trailers and semitrailers registered as provided in
61-3-711 through 61-3-733; and

(e) other information that the department
may require.

(2) A person who files an application for
registration or reregistration of a motor vehicle,
except of a mobile home or a manufactured home
as those terms are defined in 15-1-101(1), shall
upon the filing of the application pay to the county
treasurer:

(a) the registration fee, as provided in
61-3-311 and 61-3-321 or 61-3-456; and

(b) except as provided in 61-3-456 or
unless it has been previously paidt^

ft) the motor vehicle taxes or fees in lieu
of tax assessed or registration fees under [sections
1 through 31 imposed against the vehicle for the
current year of registration and the immediately
previous yeart-of

(ii) the new motor vehicle sales tax against

the vehicle for the current year of registration.

(3) The application may not be accepted
by the county treasurer unless the payments
required by subsection (2) accompany the
application. The Except as provided in [sections 1
and 31. the department may not assess or impose
and the county treasurer may not collect taxes or
fees for a period other than:

(a) the current year; and

(b) the immediately previous year if the
vehicle was not registered or operated on the
highways of the state, regardless of the period of
time since the vehicle was previously registered or
operated.

(4) The department may make full and
complete investigation of the ta* stams of the
vehicle. An applicant for registration or
reregistration shall submit proof from the tax or
other appropriate records of the proper county at
the request of the department."

Section 25. Section 61-3-314, MCA, is
amended to read:

"61-3-314. Registration period. (1)

Notwithstanding any other provisions of this title
regarding tlic registration of motor vehicles E^tcept
as provided in 61-3-315. each vehicle subject to
the provisions of 61-3-313 through 61-3-316 must
be registered for a 1 2-month period based upon the
date it is first registered in this state pursuant to

61-3-313 through 61-3-316.

(2) There are 12 registration periods, each
of which cominences on the first day of a calendar
month. The periods are:

(a) January 1 through January 3 1 1st period

(b) February 1 through February 28/29 2nd period

(d) April 1 through April 30 4th period

(e) May 1 through May 3 1 5th period

(f) June 1 through June 30 6th period

(g) July 1 through July 3 1 7th period
(h) August 1 through August 3 1 8th period
(i) September 1 through September 30 9th period
(j) October 1 through October 3 1 10th period
(k) November 1 through November 30 1 1th period
(1) December 1 through December 31 12th period"

Section 26. Section 61-3-315. MCA. is
amended to read:

"61-3-315. Reregistration on
anniversary date ~ department to make rules.

(1) A vehicle that has emee been registered for any
of the periods designated in 61-3-314 must
thereafter be reregistered for a like the same period
on or before the anniversary date of the initial
registration unless that period is changed as
provided in this section subsections (2) and (4).
The anniversary date for reregistration is the last
day of the month for the designated registration
period.

(2) (a) The owner of a motor vehicle
subject to the provisions of 61-3-313 through
61-3-316 and subject to the registration fee, as
provided in [sections 1 and 21. may register the
motor vehicle for a period not to exceed 24
months. The registration expires on the last day of
the 24th month commencing from the date of the
designated registration period under 61-3-314 for
which the vehicle is registered.

(b) The owner of a motor vehicle 1 1 years
old or older subject to the provisions of 61-3-313
through 61-3-316 and subject to the registration
fee, as provided in [sections 1 and 21. may
permanently register the motor vehicle as provided
in [section 31. The registration remains in effect
until ownership of the vehicle is transferred to
another person by the registered owner.

£3) The department shall adopt rules for

the implementation and administration of 61-3-313
through 61-3-316 and for the identification of the
registration on the vehicles.

(4) The department shall provide for
simultaneous registration of multiple vehicles that
have common ownership. The rules must provide
for a change of the registration period to coincide
with the date an owner desires to register hts the
vehicles."

Section 27. Section 61-3-316, MCA, is
amended to read:

"61-3-316. New registrations under
staggered registration. Vehicles which are A
vehicle that is registered for the first time in this
state shaH must be assigned a registration period
corresponding to when they are the vehicle is first
registered in this state. The Except as provided in
61-3-315. the registration period for a vehicle shaH
thereafter must remain the same from year to
year."

Section 28. Section 61-3-317, MCA, is
amended to read:

"61-3-317. New registration required for
transferred vehicle ~ grace period ~ penalty ~
display of proof of purchase. Except as otherwise
provided herein in this section, the new owner of a
transferred motor vehicle shall have has a grace
period of 20 calendar days from the date of
purchase to make application and pay the taxes or
registration fees, or both, provided, fees in lieu of
tax and other fees required by part 5 of this
chapter, and local option taxes, if applicable.
unless the tax or fee fees and taxes has have been
paid for the year or for the 24-month period as
provided in 61-3-315. as if the vehicle were being
registered for the first time in that registration
year. If the motor vehicle was not purchased from
a dtriy licensed motor vehicle dealer as provided in
this chapter, it is not a violation of this chapter or
any other law for the purchaser to operate the
vehicle upon the streets and highways of this state
without a certificate of registration during the
20-day period, provided that at all times during
that period^ a vehicle purchase sticker in a form
prescribed and furnished by the department,
obtained from the county treasurer or a law

enforcement officer as authorized by the
department, reciting the date of purchase is clearly
displayed in the rear window of the motor vehicle.
Registration and license fees collected under
61-3-321 are not required to be paid when a
license plate is transferred under this section and
61-3-335 and this section. Failure to make
application within the time provided herein in this
section subjects the purchaser to a penalty of $10.
The penalty shaH must be collected by the county
treasurer at the time of registration and shall be is
in addition to the fees otherwise provided by law."

Section 29. Section 61-3-332, MCA, is
amended to read:

"61-3-332. Number plates. (1) A motor
vehicle that is driven upon the streets or highways
of Montana must display both front and rear
number plates, bearing the distinctive number
assigned to the vehicle. The number plates are in
10 series: one series for owners of motorcars, one
for owners of motor vehicles of the motorcycle or
quadricycle type, one for trailers, one for trucks,
one for dealers in vehicles of the motorcycle or
quadricycle type that beaf bears the distinctive
letters "MCD; or the letters "MC" and the word
"DEALER", one for franchised dealers in new
motorcars (including trucks and trailers) or new
and used motorcars (including trucks and trailers)
that beaf bears the distinctive letter "D" or the
word "DEALER", one for dealers in used
motorcars only (including used trucks and trailers)
that beaf bears the distinctive letters "UD" or the
letter "U" and the word "DEALER", one for
dealers in trailers and/or semitrailers (new or used)
that beaf bears the distinctive letters "DTR" or the
letters "TR" and the word "DEALER", one for
dealers in recreational vehicles that beaf bears the
distinctive letters "RV" or the letter "R" and the
word "DEALER", and one for special license
plates. All markings for the various kinds of
dealers' plates must be placed on the number plates
assigned to the dealer, in the position that the
department designates.

(2) (a} All number plates for motor
vehicles must be issued for a minimum period of 4
years, bear a distinctive marking, and be furnished
by the state. In years when number plates are not

issued, the department shall provide nonremovable
stickers bearing appropriate registration numbers
that must be affixed to the license plates m use.

(b) For light vehicles that are permanently
registered as provided in [section 3] or 61-3-527.
the department shall provide distinctive
nonremovable stickers indicating that the vehicle is
permanently registered. The stickers must be
affixed to the license plates in use.

(3) Subject to the provisions of this
section, the department shall create a new design
for number plates as provided in this section.

(4) In the case of motorcars and trucks,
plates must be of metal 6 inches wide and 12
inches in length. The outline of the state of
Montana must be used as a distinctive border on
the license plates, and the word "Montana" and the
year must be placed across the plates. Registration
plates must be treated with a reflectonzed
background material according to specifications
prescribed by the department.

(5) The distinctive registration numbers
must begin with a number one or with a
letter-number combination, such as "A 1" or "AA
1 " , or any other similar combination of letters and
numbers. The distinctive registration number or
letter-number combination assigned to the vehicle
must appear on the plate preceded by the number
of the county and appearing in horizontal order on
the same horizontal baseline. The county number
must be separated from the distinctive registration
number by a separation mark unless a
letter-number combination is used. The dimensions
of the numerals and letters must be determined by
the department, and all county and registration
numbers must be of equal height.

(6) For the use of tax-exempt exempt
motor vehicles and motor vehicles that are exempt
from the registration fee as provided in [section
l(2)(a)]. in addition to the markings provided in
this section, number plates must bear the following
distinctive markings:

(a) For vehicles owned by the state, the
department may designate the prefix number for
the various state departments. All numbered plates
issued to state departments must bear the words
"State Owned", and a year number may not be
indicated on the plates because these numbered

plates are of a permanent nature and will be
replaced by the department only when the physical
condition of numbered plates requires it.

(b) For vehicles that are owned by the
counties, municipalities, and special districts, as
defined in 18-8-202, organized under the laws of
Montana and not operating for profit, and that are
used and operated by officials and employees in
the line of duty and for vehicles on loan from the
United States government or tlie state of Montana
to, or owned by, the civil air patrol and used and
operated by officials and employees in the line of
duty, there must be placed on the number plates
assigned, in a position that the department may
designate, the letter "X" or the word "EXEMPT".
Distinctive registration numbers for plates assigned
to motor vehicles of each of the counties in the
state and those of the municipalities and special
districts that obtain plates within each county must
begin with number one and be numbered
consecutively. Because these number plates are of
a permanent nature, they are subject to
replacement by the department only when the
physical condition of the number plates requires it
and a year number may not be displayed on the
number plates.

(7) On all number plates assigned to motor
vehicles of the truck and trailer type, other than
tax-exempt trucks and tax-exempt trailers, there
must appear the letter "T" or the word "TRUCK"
on plates assigned to trucks and the letters "TR" or
the word "TRAILER" on plates assigned to trailers
and housetrailers. The letters "MC" or the word
"CYCLE" must appear on plates assigned to
vehicles of the motorcycle or quadricycle type.

(8) Number plates issued to a passenger
car, truck, trailer, or vehicle of the motorcycle or
quadricycle type may be transferred only to a
replacement passenger car, truck, trailer, or
motorcycle- or quadricycle-type vehicle. A
registration or license fee may not be assessed
upon a transfer of a number plate under 61-3-317
and 61-3-335.

(9) For the purpose of this chapter, the
several counties of the state are assigned numbers
as follows: Silver Bow, 1; Cascade, 2;
Yellowstone, 3; Missoula, 4; Lewis and Clark, 5;
Gallatin, 6; Flathead, 7; Fergus, 8; Powder River,

9; Carbon, 10; Phillips, 11; Hill, 12; Ravalli, 13;
Custer, 14; Lake, 15; Dawson, 16; Roosevelt, 17;
Beaverhead, 18; Chouteau, 19; Valley, 20; Toole,
21; Big Horn, 22; Musselshell, 23; Blaine, 24;
Madison, 25; Pondera, 26; Richland, 27; Powell,
28; Rosebud, 29; Deer Lodge, 30; Teton, 31;
Stillwater, 32; Treasure, 33; Sheridan, 34;
Sanders. 35; Judith Basin, 36; Daniels. 37;
Glacier, 38; Fallon, 39; Sweet Grass, 40;
McCone, 41; Carter, 42; Broadwater, 43;
Wheatland, 44; Prairie, 45; Granite, 46; Meagher,
47; Liberty. 48; Park, 49; Garfield, 50; Jefferson,
51; Wibaux, 52; Golden Valley, 53; Mineral. 54;
Petroleum, 55; Lincoln, 56. Any new counties
must be assigned numbers by the department as
they may be formed, beginning with the number
57.

(10) Each type of special license plate
approved by the legislamre, except collegiate
license plates authorized in 61-3-463, must be a
separate series of plates, numbered as provided in
subsection (5), except that the county number must
be replaced by a nonremovable design or decal
designating the group or organization to which the
applicant belongs. Unless otherwise specifically
stated in this section, the special plates are subject
to the same rules and laws as govern the issuance
of regular license plates, must be placed or
mounted on a vehicle owned by the person who is
eligible to receive them, and must be removed
upon sale or other disposition of the vehicle. The
special license plates must be issued to national
guard members, former prisoners of war, persons
with disabilities, reservists, disabled veterans,
survivors of the Pearl Harbor attack, veterans of
the armed services, or veterans of the armed
services who were awarded the purple heart medal,
who comply with the following provisions:

(a) An active member of the Montana
national guard may be issued special license plates
with a design or decal displaying the letters "NG".
The adjutant general shall issue to each active
member of the Montana national guard a certificate
authorizing the department to issue national guard
plates, numbered in sets of two with a different
number on each set, and the member shall
surrender the plates to the department upon
becoming ineligible to use them.

(b) An active member of the reserve
armed forces of the United States of America who
is a resident of this state may be issued special
hcense plates with a design or decal displaying the
following: United States army reserve, AR
(symbol); United States naval reserve, NR
(anchor); United States air force reserve, AFR
(symbol); and United States marine corps reserve,
MCR (globe and anchor). The commanding officer
of each armed forces reserve unit shall issue to
each eligible member of the reserve unit a
certificate authorizing the issuance of special
license plates, numbered in sets of two with a
different number on each set. The member shall
surrender the plates to the department upon
becoming ineligible to use them.

(c) (i) A resident of Montana who is a
veteran of the armed forces of the United States
and who is 100% disabled because of an injury
that has been determined by the department of
veterans affairs to be service-connected may, upon
presentation to the department of proof of the
100% disability, be issued:

(A) a special license plate under this
section with a design or decal displaying the letters
"DV";or

(B) one set of any other military-related
plates that the disabled veteran is eligible to
receive under this section.

(ii) The fee for original or renewal
registration by a 100% disabled veteran for a
passenger vehicle or a truck with a GVW-rated
capacity of 1 ton or less is $5 and is in lieu of all
other fees and taxes for that vehicle under this
chapter.

(iii) Special license plates issued to a
disabled veteran are not transferable to another
person.

(iv) A disabled veteran is not entitled to a
special disabled veteran's license plate for more
than one vehicle.

(v) A vehicle lawfully displaying a
disabled veteran's plate and that is conveying a
100% disabled veteran is entitled to the parking
privileges allowed a person with a disability's
vehicle under this title.

(d) A Montana resident who is a veteran
of the armed forces of the United States and was

captured and held prisoner by a military force of a
foreign nation, documented by the veteran's
service record, may upon application and
presentation of proof be issued special license
plates, numbered in sets of two with a different
number on each set, with a design or decal
displaying the words "ex-prisoner of war" or an
abbreviation that the department considers
appropriate.

(e) Except as provided in subsection
(10)(c), upon payment of all taxes and fees
required by parts 3 and 5 of this chapter and upon
furnishing proof satisfactory to the department that
the applicant meets the requirements of this
subsection (10)(e), the department shall issue to a
Montana resident who is a veteran of the armed
services of the United States special license plates,
numbered in sets of two with a different number
on each set, designed to indicate that the applicant
is a survivor of the Pearl Harbor attack if the
applicant was a member of the United States armed
forces on December 7, 1941, was on station on
December 7, 1941, during the hours of 7:55 a.m.
to 9:45 a.m. (Hawaii time) at Pearl Harbor, the
island of Oahu, or was offshore at a distance of not
more than 3 milesT and received an honorable
discharge from the United States armed forces. If
special license plates issued under this subsection
are lost, stolen, or mutilated, the recipient of the
plates is entitled to replacement plates upon request
and without charge.

(f) A motor vehicle owner and resident of
this state who is a veteran or the surviving spouse
of a veteran of the armed services of the United
States may be issued license plates inscribed as
provided in subsection (10)(f)(i) if the veteran was
separated from the armed services under other than
dishonorable circumstances or was awarded the
purple heart medal:

(i) Upon submission of a department of
defense form 214(DD-214) or its successor or
documents showing an other-than-dishonorable
discharge or a reenlistment, proper identification,
and other relevant documents to show an
applicant's qualification under this subsection,
there must be issued to the applicant, in lieu of the
regular license plates prescribed by law, special
license plates numbered in sets of two with a

different number on each set. The plates must
display:

(A) the word "VETERAN" and a symbol
signifying the United States army. United States
navy, United States air force. United States marine
corps, or United States coast guard, according to
the record of service verified in the application; or

(B) a symbol representing the purple heart
medal.

(ii) Plates must be furnished by the
department to the county treasurer, who shall issue
them to a qualified veteran or to the veteran's
surviving spouse. The plates must be placed or
mounted on the vehicle owned by the veteran or
the veteran's surviving spouse designated in the
application and must be removed upon sale or
other disposition of the vehicle.

(iii) Except as provided in subsection
{10)(c), a veteran or surviving spouse who receives
special license plates under this subsection (10)(f)
is liable for payment of all taxes and fees required
under parts 3 and 4 of this chapter and a special
veteran's or purple heart medal license plate fee of
$10. Upon an original application for a license
under this subsection (10)(f), the county treasurer
shall:

(A) deposit $3 of the special fee in the
county general fund;

(B) remit $1 for deposit in the state
general fund; and

(C) deposit the remainder of the special
fee in the state special revenue account established
in 10-2-603 for administration, construction,
operation, and maintenance of the state veterans'
cemeteries.

(iv) Upon subsequent annual renewal of
registration, the county treasurer shall deposit all
of the special fee as provided in subsection
(10)(f)(iii)(C).

(g) A Montana resident who is eligible to
receive a special parking permit under 49-4-301
may, upon written application on a form
prescribed by the department, be issued a special
license plate with a design or decal bearing a
representation of a wheelchair as the symbol of a
person with a disability.

(11) The provisions of this section do not
apply to a motor vehicle, trailer, or semitrailer that

is registered as part of a fleet, as defined in
61-3-712, and that is subject to the provisions of
61-3-711 through 61-3-733."

Section 30. Section 61-3-431, MCA, is
amended to read:

"61-3-431. Special mobile equipment ~
exemption from registration and payment of
fees and charges ~ identification plate ~
publicly owned special mobile equipment. (1) A
person, firm, partnership, or corporation who
owns, leases, or rents special mobile equipment as
defined in 61-1-104 and occasionally moves that
equipment on, over, or across the highways of the
state is not subject to registration of that equipment
or required to pay the fees and charges provided
for in 61-3-502, 61-4-301 through 61-4-308t or
part 2 of chapter 10. Prior to movement on the
highways, however, each piece of equipment shatt
must display an equipment identification plate or a
dealer's license plate attached to the equipment.

(2) Annual application for the
identification plate shaH must be made to the
county treasurer before any piece of equipment is
moved on the highways. Application shaH must be
made on a form furnished by the department of
justice, together with the payment of a fee of $5.
The equipment for which a special mobile
equipment plate is sought is subject to the
assessment of personal property taxes on the date
application is made for the plate. The personal
property taxes assessed against the special mobile
equipment must be paid before the issuance of a
special mobile equipment plate. The fees collected
under this section belong to the county road fund.

(3) The identification plate expires on
December 31 of each year. If the expired
identification plate is displayed, an owner of
special mobile equipment registered under the
provisions of this section is entitled to operate the
equipment between January 1 and February 1 5
following expiration without displaying tlie
identification plate or receipt of the current year.

(4) Publicly owned special mobile
equipment and implements of husbandry used
exclusively by an owner in the conduct of his own
the owner's farming operations are exempt from
this section. "

Section 31. Section 61-3-456, MCA, is
amended to read:

"61-3-456. Registration of motor vehicle
owned and operated by Montana resident on
active military duty stationed outside Montana.
( 1 ) As an incentive for military service, an owner
of a motor vehicle who is a Montana resident who
entered active military duty from Montana and
who is stationed outside Montana may file with the
department an application for the registration of
the motor vehicle. The application must be sworn
to before an officer authorized to administer oaths.
The application must state;

(a) the name and address of the owner;

(b) the make, the gross weight, the year
and number of the model, and the manufacturer's
identification number and serial number of the
motor vehicle; and

(c) that the vehicle is owned and operated
by a Montana resident who meets the qualifications
of subsection (1) and is on active military duty and
stationed outside Montana.

(2) The registration fee for a motor vehicle
registered under subsection (1) is as provided in
61-3-311 and 61-3-321.

(3) A vehicle registered under this section
is not subject to:

(a) the taxes described in 61-3-303(2)(b);

(b) assessment under 15-8-202 or
61-3-503^ Of the fee in lieu of tax under 61-3-529^
or the registration fee under [sections 1 through 31;
or

Section 32. Section 61-3-503, MCA, is
amended to read:

"61-3-503. Assessment. (1) Except as
provided in 61-3-520 and subsection (4) of this
section, the following apply to the taxation of
motor vehicles:

(a) Vehicles For the purposes of imposing
the local option vehicle tax under 61-3-537. light
vehicles subject to the provisions of 61-3-313
through 61-3-316 must be assessed as of the first
day of the registration period, using the
depreciated value of the manufacmrer's suggested

retail price as determined in subsection (2).

(b) A lien for taxes and fees due on the
vehicle occurs on the anniversary date of the
registration and continues until the fees and taxes
have been paid. If the depreciated value is less
than $500, the department shall value the vehicle
at $500.

(2) (a) Except as provided in subsections
(2)(c) and (2)(d), the depreciated value for the
taxation of light vehicles is computed by
multiplying the manufacmrer's suggested retail
price by a percentage multiplier based on the type
and age of the vehicle determined from the
following table:
Age of Vehicle
(in years) Type of Vehicle

Auto-

Truck

Van

Sport

mobile

Utility

-1

100%

(b) The age for the light vehicle is
determined by subtracting the manufacturer's
model year of the vehicle from the calendar year
for which the tax is due.

(c) If the value of the vehicle determined
under subsection (2)(a) is $500 or less, the value
of the vehicle is $500 and the value must remain at
that amount as long as the vehicle is registered.

(d) The depreciated value of a light
vehicle that is 17 years old or older is computed by
depreciating the value obtained for the vehicle at

16 years old^ as determined under subsection
(2)(a)^ by 10% a year until a minimum value of
$500 is attained. The value must remain at that
amount as long as the vehicle is registered.

(3) (a) For the purposes of this section,
"manufacturer's suggested retail price" means the
price suggested by the manufacturer for each given
type, style, or model of light vehicle produced and
first made available for retail sale by the
manufacturer.

(b) The manufacturer's suggested retail
price is based on standard equipment of a vehicle
and does not contain price additions or deductions
for optional accessories.

(c) When a manufacmrer's suggested retail
price is unavailable for a motor vehicle, the
department shall determine an alternative valuation
for the vehicle.

(4) The provisions of subsections (1)
through (3) do not apply to buses, trucks having a
manufacmrer's rated capacity of more than 1 ton,
truck tractors, motorcycles, motor homes,
quadrjcycles, travel trailers, campers, mobile
homes or manufactured homes as those terms are
defined in 15-1-101(1)."

Section 33. Section 61-3-506, MCA, is
amended to read:

"61-3-506. Rules. ( 1 ) The department of
transportation shall adopt rules for the payment of
new car taxes under the provisions of 61-3-313
through 61 3-316, 61 3 501, and 61 3 520.

fS) The department of justice may adopt

rules:

fftXl) for the assessment and collection of
taxes and registration fees under [sections 1
through 31 ■ including the proration of fees under
61-3-520. on light vehicles, including the proration
of taxes under 61-3-520 criteria for determining
the vehicle's age:

(b)(2) for the imposition and collection of
fees in lieu of tax, including the proration of fees
in lieu of tax under 61-3-520, on buses, trucks
having a manufacturer's rated capacity of more
than 1 ton, and truck tractors, including criteria for
determining the vehicle's age and manufacturer's
rated capacity; and

(e)(3) The department of justice may adopt

rules for the administration of fees for trailers,
pole trailers, and semitrailers, including criteria
for determining a trailer's age and weight."

Section 34. Section 61-3-509, MCA, is
amended to read:

"61-3-509. Disposition of taxes and fees.

(1) All registration fees from vehicles for which an
original application for title or the original
Montana registration is sought must be remitted to
the state treasurer every 30 days. The state
treasurer shall credit the payments to the highway
restricted state special revenue account.

(4)(2) Except as provided in subsection
subsection (^ (3)t. the county treasurer shall, after
deducting the district court fee, credit all taxes on
motor vehicles and, registration fees in lieu of tax
on light vehicles under [sections 1 through 31. and
fees in lieu of tax on motorcycles, quadricycles.
motor homes, travel trailers, campers, trailers,
pole trailers, semitrailers, buses, trucks having a
manufacturer's rated capacity of more than 1 ton,
and truck tractors collected under 61-3-504,
61-3-521, 61-3-527, 61-3-529, and and 61 -3-537t
to a motor vehicle suspense fund. At some time
between March 1 and March 10 of each year and
every 60 days after that date, the county treasurer
shall distribute the money in the motor vehicle
suspense fund. Except for registration fees
collected under [sections 1 through 31. the county
treasurer shall distribute money in the fund in the
relative proportions required by the levies for
state, county, school district, and municipal
purposes in the same manner as personal property
taxes are distributed. For money in the fund
collected under [sections 1 through 31 and
61-3-527. the county treasurer shall disregard the
statewide mills levied for county elementary and
high school equalization under 20-9-331 and
20-9-333. the statewide mills levied for state
equalization aid under 20-9-360. the statewide
mills levied for the university svstem. and mills
levied for state assumption of public assistance
under 53-2-813 in determining distribution
proportions of the money and may not distribute
money from [sections 1 through 31 and 61-3-527 to
the state for these levies. If the distribution of
monev collected under [sections 1 through 31 and

61-3-527 to a school district general fund results in
a lower revenue than the district received in fiscal
year 1999 and the district has, for each year after
fiscal year 1999. received less revenue than fiscal
year 1999. then the district general fund is entitled
to state reimbursement for the amount of the
difference between the fiscal year 1999 revenue
under 61-3-504. as that section read on September
30. 1999. and the current year distributions of
collections under [sections 1 through 31 and
61-3-527.

fS)£3l The county treasurer shall deduct as
a district court fee 9-%- 10% of the amount of the
2% tax registration fee collected on light vehicles.
The county treasurer shall credit the fee for district
courts to a separate suspense account and shall
forward the amount in the account to the state
treasurer at the time that the county treasurer
distributes money from the motor vehicle suspense
fund. The state treasurer shall credit amounts
received under this subsection to the state special
revenue fund to be used for purposes of state
funding of district court expenses as provided in
3-5-901."

Section 35. Section 61-3-520, MCA, is
amended to read:

"61-3-520. Taxes and fees Fees on
vehicles used exclusively in Aiming motion
pictures or television commercials. ( 1 ) A vehicle
used exclusively in the filming of motion pictures
or television commercials that has been in the state
for a period exceeding 180 consecutive days in a
calendar year is subject to assessment a registration
fee under [sections 1 and 2] or a fee in lieu of tax
as if the vehicle were not used exclusively for
filming motion pictures or television commercials,
but the assessment registration fee or fee in lieu of
tax must be prorated as provided in subsection (2).

(2) (ai The taxes assessed registration fees
or the fees in lieu of tax imposed under subsection
(1) must be prorated by dividing the number of
days in excess of 180 consecutive days in the
calendar year by 365.

(3) (a) Taxes on a vehicle imposed
pursuant to this section must be collcctod as
provided in Title 15. chapter 16. part 1. for the
collection of personal property taxes generally.

(b) Fees on a vehicle imposed pursuant to
this section must be collected as provided in this
chapter. "

Section 36. Section 61-3-527, MCA, is
amended to read:

"61-3-527. Fee in lieu of tax for
motorcycles and quadricycles — schedule of fees
- permanent registration. ( 1 ) (a) There is a fee
in lieu of property tax imposed on motorcycles and
quadricycles. The fee is in addition to annual
registration fees.

(b) The fee imposed by subsection (l)(a) is
not required to be paid by a dealer for motorcycles
or quadricycles that constimte inventory of the
dealership.

(2) The owner of a motorcycle or
quadricycle shall pay a fee based on the age of the
motorcycle or quadricycle and the size of the
engine, as follows:

(a) The fee schedule for a motorcycle or
quadricycle with an engine that measures from 1
cubic centimeter to 600 cubic centimeters is as
follows:

(i) less than 3 5 years old, $30;

(ii) 2 years old and less than 5 years old,

(tit) 5 years old and less than 1 1 years old,
$15; and

ftv)£iii) 1 1 years old and older, $W M-

(b) The fee schedule for a motorcycle or
quadricycle with an engine that measures from 601
cubic centimeters to 1 .000 cubic centimeters is as
follows:

(i) less than i 5 years old, $70 $55;
(ii) 2 years old and less than 5 years old,

(Tec.

{m) 5 years old and less than 1 1 years old,
$40 S2Q; and

(tv)£iii) 1 1 years old and older, $30 S6-

(c) The fee schedule for a motorcycle or
quadricycle with an engine that measures 1,001
cubic centimeters and larger is as follows:

(i) less than 3 5 years old, $440 $90;
(ii) 2 years old and less than 5 years old,

irnA.

im) 5 years old and less than 1 1 years old,
$65 MO; and

(fv^liii) 1 1 years old and older, $40 $6-

(3) (a) Except as provided in subsection
(3)(b), the age of a motorcycle or quadricycle is
determined by subtracting the manufacmrer's
designated model year from the current calendar
year.

(b) If the purchase year of a motorcycle or
quadricycle precedes the designated model year of
the motorcycle or quadricycle and the motorcycle
or quadricycle is originally titled in Montana, then
the purchase year is considered the model year for
the purposes of calculating the fee in lieu of tax.

(4) (a) The owner of a motorcycle or
quadricycle 1 1 years old or older subject to the fee
in lieu of tax under this section may permanently
register the motorcycle or quadricycle upon
payment of a $30 fee in lieu of tax, the applicable
registration and license fees under 61-3-321. and
an amount equal to five times the applicable fees
imposed for each of the following:

(i) the motorcycle safetv training fee under
20-7-514:

(ii) weed control fees under 61-3-510:

(iii) county motor vehicle computer fees
under 61-3-511: and

(iv) if applicable, renewal fees for
personalized plates under 61-3-406.

(b) A person who permanently registers a
motorcycle or quadricycle as provided in this
subsection (4) shall pav an additional $2 fee at the
time of registration for deposit in the state general
fund. The department shall pav from the general
fund an amount equal to the $2 fee collected under
this subsection (4')(b) from each vehicle
registration to the pension trust fund for payment
of supplemental benefits provided for in
19-6-709."

Section 37. Section 61-3-537, MCA, is
amended to read:

"61-3-537. (Temporary) Local option
vehicle tax. (1) A county may impose a local
vehicle tax or a flat fee on vehicles subject to a tax
the registration fee under 61-3-504 [sections 1
through 31 as provided in [section 381 or this
section.

(2) A countv may impose a local option
tax at a rate of up to 0.5% of the value determined

under 61-3-503. in addition to the ta* registration
fee imposed under 61-3-504 [sections I through
31.

(3) A countv that imposes a local option
tax in addition to the registration fee imposed
under [sections 1 through 31 shall collect the local
option tax on a vehicle for which an original
application for title or the original Montana
registration is sought.

f2){4) A local vehicle tax or flat fee is
payable at the same time and in the same manner
as the ta* registration fee imposed under 61-3-504
[sections 1 through 31. The first priority of the
local vehicle tax or flat fee is for district court
funding, and the tax or flat fee is distributed as
follows:

(a) 50% to the county; and

(b) the remaining 50% to the county and
the incorporated cities and towns within the
county, apportioned on the basis of population.
The distribution to a city or town is determined by
multiplying the amount of money available by the
ratio of the population of the city or town to the
total county population. The distribution to the
county is determined by multiplying the amount of
money available by the ratio of the population of
unincorporated areas within the county to the total
county population.

(5) The proceeds of the tax collected under
[section 31 must be remitted to the state treasurer
every 30 davs. The state treasurer shall credit the
payments to the highway restricted state special
revenue account.

0)(6) The governing body of a county
may impose, revise, or revoke a local vehicle tax
by adopting a resolution before July 1 , after
conducting a public hearing on the proposed
resolution. The resolution may provide for the
distribution of the local vehicle tax. (Terminates
June 30, 2005-sec. 2, 3. Ch. 217, L. 1995.)

61-3-537. (Effective July 1, 2005) Local
option vehicle tax. (1) A county may impose a
local vehicle tax or a flat fee on vehicles subject to
a-ta* the registration fee under 61-3-504 [sections
1 through 31 as provided in [section 381 or this
section.

(2) A countv may impose a local option
tax at a rate of up to 0.5% of the value determined

under 61-3-503, in addition to the tax registration
fee imposed under 61-3-504 [sections 1 through

31.

C^) A county that imposes a local option

tax in addition to the registration fee imposed

under [sections 1 through 31 shall collect the local

option tax on a vehicle for which an original

application for title or the original Montana

registration is sought.

f^(4) A local vehicle tax or flat fee is
payable at the same time and in the same manner
as the tax registration fee imposed under 61-3-504
[sections 1 through 31 and is distributed in the
same manner, based on the registration address of
the owner of the motor vehicle.

C)) The proceeds of the tax collected under
[section 31 must be remitted to the state treasurer
every 30 days. The state treasurer shall credit the
pavments to the highwav restricted state special
revenue account.

B>(6) The governing body of a county
may impose, revise, or revoke a local vehicle tax
by adopting a resolution before July 1 , after
conducting a public hearing on the proposed
resolution. "

Section 38. Local option flat fee. (1) A
f "ee for each vehicle may be imposed within a
county by the board of county commissioners by
adoption of a resolution and referral to the
electorate. The imposition of the fee must be
approved by the majority of the electorate voting
in the election.

(2) The flat fee is distributed as provided
in 61-3-537.

Section 39. Section 61-3-701, MCA, is
amended to read:

"61-3-701. Foreign vehicles used in
gainful occupation to be registered ~
reciprocity. (1) Before a foreign licensed motor
vehicle may be operated on the highways of this
state for hire, compensation, or profit or before the
owner or user of the vehicle uses the vehicle if the
owner or user is engaged in gainful occupation or
business enterprise in the state, including highway
work, the owner of the vehicle shall apply to a
county treasurer for registration upon an

application form furnished by the department.
Upon satisfactory evidence of ownership submitted
to the county treasurer and the payment of motor
vehicle taxes or fees in lieu of taxes or registration
fees, if appropriate, as required by 15-8-201,
15-8-202, 15-24-301, 6^-3-5047 61-3-529, ©f
61-3-537, or [sections 1 and 21. the treasurer shall
accept the application for registration and shall
collect the regular license fee required for the
vehicle.

(2) Upon payment of the fees or taxes, the
treasurer shall issue to the applicant a copy of the
certificate entitled " Owner s Certificate of
Registration and Payment Receipt" and forward a
duplicate copy of the certificate to the department.
The treasurer shall at the same time issue to the
applicant the proper license plates or other
identification niarkers, which must at all times be
displayed upon the vehicle when operated or
driven upon roads and highways of this state
during the effective period of the license.

(3) The registration receipt does not
constitute evidence of ownership but must be used
only for registration purposes. A Montana
certificate of ownership may not be issued for this
type of registration.

(4) This section is not applicable to a
vehicle covered by a valid and existing reciprocal
agreement or declaration entered into under the
provisions of the laws of Montana."

Section 40. Section 61-3-707, MCA, is
amended to read:

"61-3-707. Foreign vehicles used for
transportation in connection with employment.

(1) Before a motor vehicle taxed assessed a fee
pursuant to 15-24-301(4) may be operated in
Montana for a calendar quarter, the person
responsible for payment of taxes must fees shall
apply for and obtain a window decal.

(2) Decals must be color-coded to
distinguish the four quarterly registration periods
of the year.

(3) An applicant may purchase a decal for
more than one registration quarter at a time by
paying the appropriate amount.

(4) There is a $2 fee for each decal, and
money collected from this fee shaH must be

deposited to the county general fund. The $2 fee is
in addition to the ta» registration fee.

(5) A current window decal must be
displayed on the lower right-hand corner of the
windshield."

Section 41. Section 61-3-736, MCA, is
amended to read:

"61-3-736. Assessment of proportionally
registered interstate motor vehicle fleets —
payment of tax or fee in lieu of tax required for
registration. (1) (a) Except as provided in
subsection (2). the The department of
transportation shall determine the fee for the
purpose of imposing the fee in lieu of tax as
provided in 61-3-528 and 61-3-529 and the
registration fee under [sections 1 and 2] on light
vehicles, buses, trucks having a manufacturer's
rated capacity of more than 1 ton, and truck
tractors, in interstate motor vehicle fleets that are
proportionally registered under the provisions of
61-3-711 through 61-3-733. The fee must be
apportioned on the ratio of total miles traveled to
in-state miles traveled as prescribed by 61-3-721.
The fee in lieu of tax or registration fee on
interstate motor vehicle fleets is imposed upon
application for proportional registration and must
be paid by the persons who own or claim the fleet
or in whose possession or control the fleet is at the
time of the application.

(b) With respect to an original application
for a fleet that has a situs in Montana for the
purpose of the fee in lieu of tax under this part or
any other provision of the laws of Montana, the
fee in lieu of tax or registration fee on fleet
vehicles must be prorated according to the ratio
that the remaining number of months in the year
bears to the total number of months in the year.

(2) For the purpose of taxation, the
department of transportation shall assess light
vehicles, as defined in 61-1-139, that arc part of an
interstate motor vehicle fleet as follows:

(a) The value of each vehicle is

determined in the same manner as provided in
61-3-503.

(b) The value determined under subsection

(2)(a) multiplied by the percent of miles traveled in
Montana, as prescribed by 61-3-721, is the market

value.

(e) The sum of the market value of all

vehicles subject to tax under this subsection (2)
multiplied by 2% is the tax for the entire fleet.

(d) With respect to an original application

for a fleet that has a situs in Montana for the
purpose of taxation under this part or any other
provision of the laws of Montana, the taxes on
taxable vehicles arc determined as provided in
subsection (2)(b).

fe)£c) Vehicles taxed as part of a fleet
under this subsection (2) are not subject to the
local option tax or flat fee imposed under 61-3-537
or [section 381.

i^iZl With respect to a renewal
application for a fleet, taxable vehicles are
assessed and taxed for a full year and for all other
vehicles the fee in lieu of tax is imposed for a full
year.

(4)£3} Vehicles contained in a fleet for
which current taxes or fees, or both, have been
assessed and paid may not be assessed or charged
fees under this section upon presentation to the
department of proof of payment of taxes, feesT-t>f
both for the current registration year. The payment
of fleet vehicle taxes, fees in lieu of taxT and
license fees is a condition precedent to
proportional registration or reregistration of an
interstate motor vehicle fleet.

(5){4) All taxes and fees collected on
motor vehicle fleets under this chapter must be
deposited and distributed as provided in
61-3-738."

Section 42. Section 61-3-737, MCA, is
amended to read:

"61-3-737. Situs in state of
proportionally registered fleets ~ collection of
taxes and fees. (1) For the purposes of this part,
any vehicle previously registered or that has had
application for registration made under the
provisions of 61-3-71 1 through 61-3-733 has a
situs in Montana for the purposes of taxation or the
fee in lieu of tax.

(2) The department of transportation shall
collect the fleet vehicle taxes, the fees in lieu of
taxT and license fees prescribed in this part. "

Section 43. Section 61-3-738, MCA, is
amended to read:

"61-3-738. Deposit and distribution of
taxes and fees on proportionally registered
fleets. The taxes, fees in lieu of taxT and license
fees collected under this part must be deposited
with the state treasurer for distribution to the
general fund of each county on the following basis:

(1) for fleet vehicle taxes and fees m lieu
of tax, according to the ratio of the taxable
valuation of each county to the total state taxable
valuation; and

(2) for fleet vehicle license fees, according
to the ratio of vehicle license fees, other than fees
derived from interstate motor vehicle fleets,
collected in each county to the sum of all fleet
vehicle fees collected in all the counties."

Section 44. Section 61-4-112. MCA. is
amended to read:

"61-4-112. New motor vehicles ~
transfers by dealers. ( 1 ) When a motor vehicle
dealer transfers a new motor vehicle to a purchaser
or other recipient, the dealer shall:

(a) issue and affix a permit as prescribed
in 61-4-1 1 l(2)(a) for transfers of used motor
vehicles and retain a copy of the permit;

(b) within 4 working days following the
date of delivery of the new motor vehicle, forward
to the county treasurer of the county where the
purchaser or recipient resides:

(i) one copy of the permit issued under
subsection (l)(a);

(ii) an application for certificate of title
with a notice of security interest, if any. executed
by the purchaser or recipient; and

(iii) a statement of origin as prescribed in
61-1-S02(S) that shows that the vehicle has not
previously been registered or owned, except as
otherwise provided in this section, by anv person,
firm, corporation, or association other than a new
motor vehicle dealer holding a franchise or
distribution agreement from a new car
manufacmrer. distributor, or importer.

(2) Upon receipt from the county treasurer
of the documents required under subsection (1),
the department shall issue a certificate of
ownership and certificate of registration, together

with a statement of lien as provided in 61-3-202."

Section 45. Section 61-10-231, MCA, is
amended to read:

"61-10-231. Enforcement. The highway
patrol and any designated employee of the
department of transportation shall enforce this part
and 61-3-502(1), and those persons shall examine
and inspect the motor vehicles operating upon the
highways in this state and regulated by this part
and 61-3-502(1) to ascertain whether or not those
laws are being complied with. "

Section 46. Repealer. Sections 61-3-502,
61-3-504, and 61-3-605, MCA, are repealed.

Section 47. Submission to electorate.

The question of whether this act will become
effective shall be submitted to the qualified
electors of Montana at the general election to be
held in November 2000 by printing on the ballot
the full title of this act and the following:

[] FOR reducing the taxation of light

vehicles and eliminating the sales
tax on new motor vehicles.

[] AGAINST reducing the taxation of

light vehicles and eliminating the
sales tax on new motor vehicles.

Section 48. Codification instruction.

[Sections 1, 2, 3, and 38] are intended to be
codified as an integral part of Title 61, chapter 3,
part 5, and the provisions of Title 61 , chapter 3,
part 5, apply to [sections 1, 2, 3, and 38].

Section 49. Coordination instruction. If

this act is approved by the electorate and Senate
Bill No. 260 is passed and approved, then [section
3 of Senate Bill No. 260] terminates on January 1,
2002.

Section 50. Saving clause. [This act] does
not affect rights and duties that mamred, penalties
that were incurred, or proceedings that were begun
before [the effective date of this act].

Section 51. Severability. If a part of [this
act] is invalid, all valid parts that are severable
from the invalid part remain in effect. If a part of
[this act] is invalid in one or more of its
applications, the part remains in effect in all valid
applications that are severable from the invalid
applications.

Section 52. Effective dates ~
applicability. (1) If approved by the electorate,
this act is effective on approval by the electorate,
except as provided in subsection (2), and applies to
motor vehicle registration periods beginning after
December 31, 2000.

(2) [Sections 12, 13, and 46] are effective
January 1, 2001.

The Complete Text of Legislative Referendum No. 116 (LR-116)

AN ACT REPEALING STATE INHERITANCE
TAXES: PROVIDING THAT STATE ESTATE
AND GENERATION-SKIPPING TAXES APPLY
TO THE EXTENT OF THE APPLICABLE
FEDERAL CREDIT FOR EACH TAX;
PROVIDING THAT THE PROPOSED ACT BE
SUBMITTED TO THE QUALIFIED ELECTORS
OF MONTANA; AMENDING SECTIONS
7-4-2613, 7-7-4607, 7-14-4654, 15-1-211,
15-1-406, 15-1-501, 15-1-503, 15-30-136,
17-5-718, 17-5-930, 17-5-1518, 17-5-1629,
35-21-827, 60-11-1110, 60-11-1210, 72-1-103,
72-3-607, 72-3-618, 72-3-631, 72-3-807,
72-3-1004, 72-3-1006, 72-3-1104, 72-16-215,
72-16-502, 72-16-503, 72-16-903. 72-16-904,
72-16-905, 72-16-907, 72-16-909, 72-16-1007,
80-12-305, AND 90-6-125, MCA; REPEALING
SECTIONS 72-4-304, 72-14-303, 72-16-101,
72-16-102, 72-16-201, 72-16-203, 72-16-204,
72-16-205, 72-16-206, 72-16-207, 72-16-208,
72-16-209, 72-16-210, 72-16-211, 72-16-212.
72-16-213, 72-16-214, 72-16-216, 72-16-218,
72-16-301, 72-16-302, 72-16-303, 72-16-304,
72-16-305, 72-16-306, 72-16-307, 72-16-308.
72-16-311, 72-16-312, 72-16-313, 72-16-314.
72-16-315, 72-16-316, 72-16-317, 72-16-318,
72-16-319. 72-16-321, 72-16-322, 72-16-323,
72-16-331, 72-16-332, 72-16-333, 72-16-334.

72-16-335, 72-16-336, 72-16-337, 72-16-338,
72-16-339, 72-16-340, 72-16-341. 72-16-342,
72-16-343, 72-16-344, 72-16-345, 72-16-346,
72-16-347, 72-16-348, 72-16-349, 72-16-401,
72-16-402, 72-16-403, 72-16-411, 72-16-412,
72-16-413, 72-16-414, 72-16-415, 72-16-416,
72-16-417, 72-16-418, 72-16-419, 72-16-420,
72-16-421, 72-16-422, 72-16-423, 72-16-424,
72-16-425, 72-16-431, 72-16-432, 72-16-433,
72-16-434, 72-16-435, 72-16-436, 72-16-437, '
72-16-438, 72-16-439, 72-16-440, 72-16-441,
72-16-442, 72-16-443, 72-16-445, 72-16-446,
72-16-447, 72-16-448, 72-16-449, 72-16-450,
72-16-451, 72-16-452, 72-16-453, 72-16-454,
72-16-455, 72-16-456, 72-16-457, 72-16-458,
72-16-459, 72-16-460, 72-16-461, 72-16-462,
72-16-463, 72-16-464, 72-16-465, 72-16-471,
72-16-472, 72-16-473, 72-16-474, 72-16-475,
72-16-476, 72-16-477, 72-16-478, 72-16-479,
72-16-480, 72-16-481, 72-16-482, 72-16-491,
72-16-492, 72-16-493, 72-16-504, 72-16-505,
72-16-701, 72-16-702, 72-16-703, 72-16-704,
72-16-705, 72-16-706, 72-16-801, 72-16-802,
72-16-803, 72-16-804, 72-16-805, AND
72-16-902, MCA; AND PROVIDING AN
EFFECTIVE DATE AND AN APPLICABILITY
DATE. .

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

Section 1. Section 7-4-2613, MCA, is
amended to read:

"7-4-2613. Documents subject to
recording. The county clerk shall, upon the
payment of the appropriate fees, record by
printing, typewriting, or photographic,
micrographic, or electronic process or by the use
of prepared blank forms:

(1) (a) subject to subsection (l)(b), deeds,
grants, transfers, certified copies of final
judgments or decrees partitioning or affecting the
title or possession of real property any part of
which is situated in the county, contracts to sell or
convey real estate and mortgages of real estate,
releases of mortgages, powers of attorney to
convey real estate, leases that have been
acknowledged or proved, and abstracts of the
instruments that have been acknowledged or
proved;

(b) an instrument or deed evidencing
either a division of real property or a merger of
real property only if the instrument or deed is
accompanied by a certification from the county
treasurer that taxes and special assessments that
have been assessed and levied have been paid;

(2) notices of buyer's interest in real
property, notwithstanding any other requirement of
law or rule relating to eligibility for recording of
the deed, contract for deed, or other document
relating to the notice of buyer's interest. However,
if the instrument of conveyance underlying a notice
of buyer's mterest would be unrecordable, the
clerk and recorder shall notify the buyer by
certified mail that the underlying instrument is
unrecordable and may be void;

(3) except as provided in 72-16-503, a
document on a form provided by the department of
revenue certifying that the holder of a nonprobate
interest in real property is deceased and that the
deceased's interest is terminated. A nonprobate
interest in real property is a joint tenancy interest,
a life estate interest, or any other interest not
requiring probate. The document may be on the
form used by the department of revenue for
responding to the application for determination of

inheritance or estate tax. It must contain:

(a) a statement that the holder of the
nonprobate interest has died and that the holder's
interest in the property is terminated;

(b) a certification by the county treasurer
that the inheritance or estate tax, if any tax was
due, has been paid or that inheritance or estate tax
was not due;

(4) certificates of births and deaths;

(5) wills devising real estate admitted to
probate;

(6) official bonds;

(7) transcripts of judgments that by law
are made liens upon real estate;

(8) instruments describing or relating to
the individual property of married persons;

(9) all orders and decrees made by the
district court in probate matters affecting real
estate and that are required to be recorded;

(10) notice of preemption claims;

(11) notice and declaration of water rights;

(12) assignments for the benefit of
creditors;

(13) affidavits of annual work done on
mining claims;

(14) notices of mining locations and
declaratory statements;

(15) estrays and lost property;

(16) a book containing appraisement of
state lands; and

(17) other writings that are required or
permitted by law to be recorded. "

Section 2. Section 7-7-4607, MCA, is
amended to read:

"7-7-4607. Exemption from certain
taxes for refunding revenue bonds. The

refunding Refunding bonds issued pursuant to this
part and the income therefrom shall be from those
bonds are exempt from taxation^ except
inheritance estate, and transfer taxes."

Section 3. Section 7-14-4654, MCA, is
amended to read:

"7-14-4654. Exemption from certain
state taxes. Ail such revenue Revenue bonds
issued pursuant to this part and the interest or

income therefrom from those bonds are exempt
from all taxation in this state, other than gtftr
inheritance, and estate taxes. "

Section 4. Section 15-1-211, MCA, is
amended to read:

"15-1-211. Uniform dispute review
procedure ~ notice ~ appeal. (1) The department
of revenue shall provide a uniform review
procedure for all persons or other entities, except
as provided in subsection (l)(a).

(a) The department's dispute review
procedure must be adopted by administrative rule
and applies to all matters administered by the
department and to all issues arising from the
administration of the department, except
inheritance taxes, estate taxes, property taxes, and
the issue of whether an employer-employee
relationship existed between the person or other
entity and mdividuals subjecting the person or
other entity to the requirements of chapter 30, part
2, or whether the employment relationship was
that of an independent contractor. The procedure
applies to assessments of centrally assessed
property taxed pursuant to chapter 23.

(b) (i) The term "other entity", as used in
this section, includes all businesses, corporations,
and similar enterprises.

(ii) The term "person" as used in this
section includes all individuals.

(2) (a) Persons or other entities having a
dispute with the department have the right to have
the dispute resolved by appropriate means,
including consideration of alternative dispute
resolution procedures such as mediation.

(b) The department shall establish a
dispute resolution office to resolve disputes
between the department and persons or other
entities.

(c) Disputes must be resolved by a final
department decision within 180 days of the referral
to the dispute resolution office, unless extended by
mutual consent of the parties. If a final department
decision is not issued within the required time
period, the remedy is an appeal to the appropriate
forum as provided by law.

(3) (a) The department shall provide
written notice to a person or other entity advising

them of a dispute over matters administered by the
department.

(b) The person or other entity shall have
the oppormnity to resolve the dispute with the
department employee who is responsible for the
notice, as indicated on the notice.

(c) If the dispute cannot be resolved,
either the department or the other party may refer
the dispute to the dispute resolution office.

(d) The notice must advise the person or
other entity of their opportunity to resolve the
dispute with the person responsible for the notice
and their right to refer the dispute to the dispute
resolution office.

(4) Written notice must be sent to the
persons or other entities involved in a dispute with
the department indicating that the matter has been
referred to the dispute resolution office. The
written notice must include:

(a) a summary of the department's
position regarding the dispute;

(b) an explanation of the right to the
resolution of the dispute with a clear description of
all procedures and options available;

(c) the right to obtain a final department
decision within 1 80 days of the date that the
dispute was referred to the dispute resolution
office;

(d) the right to appeal should the
department fail to meet the required deadline for
issuing a final department decision; and

(e) the right to have the department
consider alternative dispute resolution methods,
including mediation.

(5) The department shall:

(a) develop guidelines that must be
followed by employees of the department in
dispute resolution matters;

(b) develop policies concerning the
authority of an employee to resolve disputes; and

(6) (a) (i) The director of revenue or the
director's designee is authorized to enter into an
agreement with a person or other entity relating to
a matter administered by the department.

(ii) The director or the director's designee

has no authority to bind a future legislature
tlirough the terms of an agreement.

(b) Subject to subsection (6)(a)(ii), an
agreement under the provisions of subsection
(6)(a)(i) is final and conclusive, and, except upon a
showing of fraud, malfeasance, or
misrepresentation of a material fact:

(i) the agreement may not be reopened as
to matters agreed upon or be modified by any
officer, employee, or agent of this state; and

(ii) in any suit, action, or proceeding
under the agreement or any determination,
assessment, collection, payment, abatement,
refund, or credit made in accordance with die
agreement, the agreement may not be annulled,
modified, set aside, or disregarded."

Sections. Section 15-1-406, MCA, is
amended to read:

"15-1-406. Declaratory judgment. (1) An

aggrieved taxpayer may bring a declaratory J
' judgment action in the district court seeking a
declaration that:

(a) an administrative rule or method or
procedure of assessment or imposition of tax
adopted or used by the department of revenue is
illegal or improper; or

(b) a tax authorized by the state or one of
its subdivisions was illegally or unlawfully
imposed or exceeded the taxing authority of the
entity imposing the tax.

(2) The action must be brought within 90
days of the date the notice of the tax due was sent
to the taxpayer or, in the case of an assessment
covered by the uniform dispute review procedure
set forth in 15-1-211, within 90 days of the date of
the department director's final decision. The court
shall consolidate all actions brought under
subsection (1) that challenge the same tax. The
decision of the court applies to all similarly
situated taxpayers, except those taxpayers who are
excluded under 15-1-407.

(3) The taxes that are being challenged
under this section must be paid under protest when
due as a condition of continuing the action.
Property taxes are paid under protest as provided
in 15-1-402. All other taxes administered by the
department, except inheritance and estate taxes,

are paid under protest by filing timely claims for
refund and by following the uniform dispute
review procedures of 1 5- 1-2 II. Inheritance and
estate taxes arc paid under protest by following the
procedures set forth in Title 72. Estate taxes are
paid under protest by following the procedures set
forth in Title 72.

(4) The remedy aulliorized by this section
may not be used to challenge the:

(a) market value of property under a
property tax unless the challenge is to the legality
of a particular methodology that is being applied to
similarly situated taxpayers; or

(b) legality of a tax other than a property
tax. inheritance tax, or estate tax unless the review
pursuant to 15-I-2II has been completed.

(5) The remedy authorized by this section
is the exclusive method of obtaining a declaratory
judgment concerning a tax authorized by the state
or one of its subdivisions. The remedy authorized
by this section supersedes the Uniform Declaratory
Judgments Act established in Title 27, chapter 8.
This section does not affect actions for declaratory
judgments under 2-4-506."

Section 6. Section 15-1-501, MCA, is
amended to read:

"15-1-501. Disposition of money from
certain designated license and other taxes. (1)

The state treasurer shall deposit to the credit of the
state general fund in accordance with the
provisions of subsection (3) all money received
from the collection of:

(a) income taxes, interest, and penalties
collected under chapter 30;

(b) except as provided in 15-31-702. all
taxes, interest, and penalties collected under
chapter 3 1 ;

(d) electrical energy producer's license
taxes under chapter 5 1 ;

(e) [an amount equal to 25 % of] the retail
telecommunications excise tax collected under
Title 15, chapter 53, part 1;

(f) liquor license taxes under Title 16;

(g) fees from driver's licenses, motorcycle
endorsements, and duplicate driver's licenses as

provided in 61-5-121;

(h) inheritance and estate taxes under Title
72, chapter 16; and

(i) fees based on the value of currency on
deposit and tangible personal property held for
safekeeping by a foreign capital depository as
provided in 15-31-803.

(2) The department of revenue shall also
deposit to the credit of the state general fund all
money received from the collection of license taxes
and fees and all net revenue and receipts from all
other sources under the operation of the Montana
Alcoholic Beverage Code.

(3) Notwithstanding any other provision of
law, the distribution of tax revenue must be made
according to the provisions of the law governing
allocation of the tax that were in effect for the
period in which the tax revenue was recorded for
accounting purposes. Tax revenue must be
recorded as prescribed by the department of
administration, pursuant to 17-1-102(2) and (4), in
accordance with generally accepted accounting
principles.

(4) All refunds of taxes must be attributed
to the funds in which the taxes are currently being
recorded. All refunds of interest and penalties must
be attributed to the funds in which the interest and
penalties are currently being recorded."

Section 7. Section 15-1-503, MCA, is
amended to read:

"15-1-503. Refund of overpayment ~
procedure. (1) When there has been an
overpayment of the inheritance estate tax collected
by county treasurers or any other tax collected by
the department of revenue and there is no law
providing for a refund, the department shall refund
the amount of the overpayment to the taxpayer,
plus any interest and penalty due the taxpayer, as
provided in subsection (2) of this section.

(2) N© A refund or payment shall be is not
allowed unless a claim is filed by the taxpayer
before the expiration of 5 years from the time that
the tax was paid. Within 6 months after the claim
is filed, the department shall examine the claim
and either approve or disapprove it. If the claim is
approved, the credit or refund shaH must be made
to the taxpayer within 60 days after the claim is

approvedti if If the claim is disallowed, the
department shall s© notify the taxpayer and shall
grant a hearing on the claim. If the department
disapproves a claim after holding a hearing, the
determination of the department may be reviewed
as provided by 15-30-148."

Section 8. Section 15-30-136, MCA, is
amended to read:

"15-30-136. Computation of income of
estates or trusts ~ exemption. (1) Except as
otherwise provided in this chapter, "gross income"
of estates or trusts means all income from
whatever source derived in the taxable tax year,
including but not limited to the following items:

(a) dividends;

(b) interest received or accrued, including
interest received on obligations of another state or
territory or a county, municipality, district, or
other political subdivision of the state, but
excluding interest income from obligations of:

(i) the United States government or the
state of Montana;

(ii) a school district; or

(iii) a county, municipality, district, or
other political subdivision of the state;

(d) gross rents and royalties;

(e) gain from sale or exchange of
property, including those gains that are excluded
from gross income for federal fiduciary income tax
purposes by section 641(c) of the Internal Revenue
Code of 1954, as amended;

(f) gross profit from trade or business; and

(g) refunds recovered on federal income
tax, to the extent that the deduction of the tax
resulted in a reduction of Montana income tax
liability.

(2) In computing net income, there are
allowed as deductions:

(a) interest expenses deductible for federal
tax purposes according to section 163 of the
Internal Revenue Code of 1954, as amended;

(b) taxes paid or accrued within the
taxable tax year, including but not limited to
federal income tax, but excluding Montana income
tax;

(c) that fiduciary's portion of depreciation
or depletion which that is deductible for federal tax
purposes according to sections 167, 611, and 642
of the Internal Revenue Code of 1954, as
amended;

(d) charitable contributions that are
deductible for federal tax purposes according to
section 642(c) of the Internal Revenue Code of
1954, as amended;

(e) administrative expenses claimed for
federal income tax purposes, according to sections
212 and 642(g) of the Internal Revenue Code of
1954. as amended, if the expenses were not
claimed as a deduction in the determination of
Montana inlicritancc tax;

(f) losses from fire, storm, shipwreck, or
other casualty or from theft, to the extent not
compensated for by insurance or otherwise, that
are deductible for federal tax purposes according
to section 165 of the Internal Revenue Code of
1954, as amended;

(g) net operating loss deductions allowed
for federal income tax under section 642(d) of the
Internal Revenue Code of 1954, as amended,
except estates may not claim losses that are
deductible on the decedent's final return;

(h) Montana income tax refunds or tax
refund credits.

(3) The following additional deductions
are allowed in deriving taxable income of estates
and trusts:

(a) any amount of income for the taxable
tax year currently required to be distributed to
beneficiaries for the year;

(b) any other amounts properly paid or
credited or required to be distributed for the
taxable tax year.

(4) The exemption allowed for estates and
trusts is that exemption provided in

15-30-1 12(2)(a) and (6)."

Section 9. Section 17-5-718, MCA, is
amended to read:

"17-5-718. Tax exemption of bonds ~
legal investments. (1) All bonds or notes issued
under this part, their transfer, and their income,
including any profits made on their sale, are
exempt from taxation by the state or any political

subdivisions subdivision or other instrumentality of
the state, excepting inheritance, except for estatev
and gift taxes.

(2) Bonds or notes issued under this part
are legal investments for any person or board
charged with investment of public funds and are
acceptable as security for any deposit of public
money."

Section 10. Section 17-5-930, MCA, is
amended to read:

"17-5-930. Tax exemption of bonds ~
legal investments. (1) All bonds issued under this
part, their transfer, and their income, including
any profits made on their sale, are exempt from
taxation by the state or any political subdivision or
other instrumentality of the state, excepting
inheritance, except for estate, and gift taxes.

(2) Bonds issued under this part are legal
investments for any person or board charged with
investment of public funds and are acceptable as
security for any deposit of public money. "

Section 11. Section 17-5-1518, MCA, is
amended to read:

"17-5-1518. Tax exemption of bonds.

Bonds, notes, or other obligations issued by the
board under this part and their transfer and income
(including any profits made on their sale) are free
from taxation by the state or any political
subdivision or other instrumentality of the state,
except for inheritance, estate, and gift taxes. The
board is not required to pay recording or transfer
fees or taxes on instruments recorded by it. "

Section 12. Section 17-5-1629, MCA, is
amended to read:

"17-5-1629. Tax exemption of bonds.

Bonds, notes, or other obligations issued by the
board under this part, their transfer, and their
income (including any profits made on their sale)
are free from taxation by the state or any political
subdivision or other instrumentality of the state,
excepting inlicritancc, except for estate, and gift
taxes. The board is not required to pay recording
or transfer fees or taxes on instruments recorded
by it."

Section 13. Section 35-21-827, MCA, is
amended to read:

"35-21-827. Property interests in plot --
inheritance estate tax. (1) All plots conveyed to
individuals are presumed to be the sole and
separate property of the owner named in the
mstrument of conveyance.

(2) The spouse of an owner of a plot
contaming more than one interment space has a
vested right to be interred m tlie plot, and a person
becommg the spouse of the plot owner has a vested
right to be interred in the plot if an interment space
not subject to the vested right of interment for
previous spouses is unoccupied at the time that the
person becomes the spouse of the owner.

(3) A conveyance or other action of the
owner without the written consent or joinder of the
spouse of the owner may not divest the spouse of a
vested right of interment, except that a final decree
of dissolution of marriage between the owner and
the spouse terminates the vested right of interment
unless otherwise provided in the decree.

(4) If an interment is not made in a plot
that has been transferred by deed or certificate of
ownership to an individual owner or if all remains
previously interred in the plot are lawfully
removed, the plot descends upon the death of the
owner to the owner's heirs-at-law, subject to the
rights of interment of the decedent and the owner's
surviving spouse unless the owner has disposed of
the plot either in a will by a specific devise or by a
written declaration filed and recorded in the office
of the mausoleum-columbarium authority.

(5) Mausoleum or columbarium property
passing to an individual by reason of the death of
the owner is exempt from all inheritance estate
taxes."

Section 14. Section 60-1 1-1 1 10, MCA, is
amended to read:

"60-11-1110. Tax exemption. Bonds and
refunding bonds, their transfer, and their income
(including any profits made on their sale) are free
from taxation by the state or any political
subdivision or instrumentality of the state, except
for inheritance and estate taxes. "

Section 15. Section 60-1 1-1210, MCA, is
amended to read:

"60-11-1210. Tax exemption. Bonds and
refunding bonds, their transfer, and their income
(including any profits made on their sale) are free
from taxation by the state or any political
subdivision or instrumentality of the state, except
for inheritance and estate taxes. "

Section 16. Section 72-1-103, MCA, is
amended to read'

"72-1-103. General definitions. Subject
to additional definitions contained in the
subsequent chapters that are applicable to specific
chapters, parts, or sections and unless the context
otherwise requires, in chapters 1 through 5, the
following definitions apply:

(1) "Agent" includes an attorney-in-fact
under a durable or nondurable power of attorney,
an individual authorized to make decisions
concerning another's health care, and an individual
authorized to make decisions for another under a
natural death act.

(2) "Application" means a written request
to the clerk for an order of informal probate or
appointment under chapter 3, part 2.

(3) "Beneficiary", as it relates to:

(a) a trust beneficiary, includes a person
who has any present or fumre interest, vested or
contingent, and also includes the owner of an
interest by assignment br other transfer;

(b) a charitable trust, includes any person
entitled to enforce the trust;

(i) an account with POD designation or a
security registered in beneficiary form (TOD); or

(ii) any other nonprobate transfer at death;
and

(d) a beneficiary designated in a governing
instrument, includes a grantee of a deed; a devisee;
a trust beneficiary; a beneficiary of a beneficiary
designation; a donee; and a person in whose favor
a power of attorney or a power held in any
individual, fiduciary, or representative capacity is
exercised.

(4) "Beneficiary designation" refers to a f.
governing instrument naming a beneficiary of:

(a) an account with POD designation or a
security registered in beneficiary form (TOD); or

(b) any other nonprobate transfer at death.

(5) "Child" includes an individual entitled
to take as a child under chapters 1 through 5 by
intestate succession from the parent whose
relationship is involved and excludes a person who
is only a stepchild, a foster child, a grandchild, or
any more remote descendant.

(6) (a) "Claims", in respect to estates of
decedents and protected persons, includes
liabilities of the decedent or protected person,
whether arising in contract, in tort, or otherwise,
and liabilities of the estate that arise at or after the
death of the decedent or after the appointment of a
conservator, including funeral expenses and
expenses of administration.

(b) The term does not include estate Of
inheritance taxes or demands or disputes regarding
title of a decedent or protected person to specific
assets alleged to be included in the estate.

(7) "Clerk" or "clerk of court" means the
clerk of the district court.

(8) "Conservator" means a person who is
appointed by a court to manage the estate of a
protected person.

(9) "Court" means the district court in this
state having jurisdiction in matters relating to the
affairs of decedents.

(10) "Descendant" of an individual means
all of the individual's descendants of all
generations, with the relationship of parent and
child at each generation being determined by the
definition of child and parent contained in this
section.

(11) "Devise" when used as a noun means
a testamentary disposition of real or personal
property and when used as a verb means to dispose
of real or personal property by will.

(12) "Devisee" means a person designated
in a will to receive a devise. For purposes of
chapter 3, in the case of a devise to an existing
trust or trustee or to a trustee on trust described by
will, the trust or trustee is the devisee and the
beneficiaries are not devisees.

(13) "Disability" means cause for a
protective order as described by 72-5-409.

(14) "Distributee" means any person who

has received property of a decedent from the
decedent's personal representative other than as a
creditor or purchaser. A testamentary trustee is a
distributee only to the extent of distributed assets
or increment thereto to distributed assets remaining
in the trustee's hands. A beneficiary of a
testamentary trust to whom the trustee has
distributed property received from a personal
representative is a distributee of the personal
representative. For purposes of this provision,
"testamentary trustee" includes a trustee to whom
assets are transferred by will, to the extent of the
devised assets.

(15) "Estate" includes the property of the
decedent, trust, or other person whose affairs are
subject to chapters 1 through 5 as originally
constituted and as it exists from time to time
during administration.

(16) "Exempt property" means that
property of a decedent's estate that is described in
72-2-413.

(17) "Fiduciary" includes a personal
representative, guardian, conservator, and trustee.

(18) "Foreign personal representative"
means a personal representative appointed by
another jurisdiction.

(19) "Formal proceedings" means
proceedings conducted before a judge with notice
to interested persons.

(20) "Governing instrument" means a
deed; will; trust; insurance or annuity policy;
account with POD designation; security registered
in beneficiary form (TOD); pension,
profit-sharing, retirement, or similar benefit plan;
instrument creating or exercising a power of
appointment or a power of attorney; or dispositive,
appointive, or nominative instrument of any
similar type.

(21) "Guardian" means a person who has
qualified as a guardian of a minor or incapacitated
person pursuant to testamentary or court
appointment but excludes one who is merely a
guardian ad litem.

(22) "Heirs", except as controlled by
72-2-721, means persons, including the surviving
spouse and the state, who are entitled under the
stamtes of intestate succession to the property of a
decedent.

(23) "Incapacitated person" has the
meaning provided in 72-5-101.

(24) "Informal proceedings" means
proceedings conducted without notice to interested
persons by the clerk of court for probate of a will
or appointment of a personal representative.

(25) "Interested person" includes heirs,
devisees, children, spouses, creditors,
beneficiaries, and any others having a property
right in or claim against a trust estate or the estate
of a decedent, ward, or protected person. The term
also includes persons having priority for
appointment as personal representative and other
fiduciaries representing interested persons. The
meaning as it relates to particular persons may
vary from time to time and must be determined
according to the particular purposes of and matter
involved in any proceeding.

(26) "Issue" of a person means a
descendant as defined in subsection (10).

(27) "Joint tenants with the right of
survivorship" includes co-owners of property held
under circumstances that entitle one or more to the
whole of the property on the death of the other or
others but excludes forms of co-ownership
registration in which the underlying ownership of
each party is in proportion to that party's
contribution.

(28) "Lease" includes an oil, gas, coal, or
other mineral lease.

(29) "Letters" includes letters testamentary,
letters of guardianship, letters of administration,
and letters of conservatorship.

(30) "Minor" means a person who is under
18 years of age.

(31) "Mortgage" means any conveyance,
agreement, or arrangement in which property is
used as security.

(32) "Nonresident decedent" means a
decedent who was domiciled in another jurisdiction
at the time of death.

(33) "Organization" means a corporation,
business trust, estate, trust, partnership, joint
venmre, association, government or governmental
subdivision or agency, or any other legal or
commercial entity.

(34) "Parent" includes any person entitled
to take, or who would be entitled to take if the

child died without a will, as a parent under
chapters 1 through 5 by intestate succession from
the child whose relationship is in question and
excludes any person who is only a stepparent,
foster parent, or grandparent.

(35) "Payor" means a trustee, insurer,
business entity, employer, government,
governmental agency or subdivision, or any other
person authorized or obligated by law or a
governing instrument to make payments.

(36) "Person" means an individual, a
corporation, an organization, or other legal entity.

(37) "Personal representative" includes
executor, administrator, successor personal
representative, special administrator, and persons
who perform substantially the same function under
the law governing their stams. "General personal
representative" excludes special administrator.

(38) "Petition" means a written request to
the court for an order after notice.

(39) "Proceeding" includes action at law
and suit in equity.

(40) "Property" includes both real and
personal property or any interest in that property
and means anything that may be the subject of
ownership.

(41) "Protected person" has the meaning
provided in 72-5-101.

(42) "Protective proceeding" has the
meaning provided in 72-5-101.

(43) "Security" includes any note; stock;
treasury stock; bond; debenture; evidence of
indebtedness; certificate of interest or participation
in an oil, gas, or mining title or lease or in
payments out of production under such a title or
lease; collateral trust certificate; transferable share;
voting trust certificate; in general, any interest or
instrument commonly known as a security; any
certificate of interest or participation; or any
temporary or interim certificate, receipt, or
certificate of deposit for or any warrant or right to
subscribe to or purchase any of the foregoing.

(44) "Settlement", in reference to a
decedent's estate, includes the full process of
administration, distribution, and closing.

(45) "Special administrator" means a
personal representative as described by chapter 3,
part 7.

(46) "State" means a state of the United
States, the District of Columbia, the
Commonwealth of Puerto Rico, or any territory or
insular possession subject to the jurisdiction of the
United States.

(47) "Successor personal representative"
means a personal representative, other than a
special administrator, who is appointed to succeed
a previously appointed personal representative.

(48) "Successors" means persons, other
than creditors, who are entitled to property of a
decedent under the decedent's will or chapters 1
through 5 .

(49) "Supervised administration" refers to
the proceedings described in chapter 3, part 4.

(50) "Survive" means that an individual has
neither predeceased an event, including the death
of another individual, nor is considered to have
predeceased an event under 72-2-1 14 or 72-2-712.
The term includes its derivatives, such as
"survives", "survived", "survivor", and
"surviving".

(51) "Testacy proceeding" means a
proceeding to establish a will or determine
intestacy.

(52) "Testator" includes an individual of

either sex.

(53) "Trust" includes an express trust,
private or charitable, with additions thereto to the
trust, wherever and however created. The term
also includes a trust created or determined by
judgment or decree under which the trust is to be
administered in the manner of an express trust.
The term excludes other constructive trusts and
excludes resulting trusts; conservatorships;
personal representatives; trust accounts as defined
in 72-6-1 1 1 and Title 72, chapter 6, parts 2 and 3;
custodial arrangements pursuant to chapter 26 of
this title; business trusts providing for certificates
to be issued to beneficiaries; common trust funds;
voting trusts; security arrangements; liquidation
trusts; trusts for the primary purpose of paying
debts, dividends, interest, salaries, wages, profits,
pensions, or employee benefits of any kind; and
any arrangement under which a person is nominee
or escrowee for another.

(54) "Trustee" includes an original.
additional, or successor trustee, whether or not

appointed or confirmed by court.

(55) "Ward" means an individual described
in 72-5-101.

(56) "Will" includes codicil and any
testamentary instrument that merely appoints an
executor, revokes or revises another will,
nominates a guardian, or expressly excludes or
limits the right of an individual or class to succeed
to property of the decedent passing by intestate
succession. "

Section 17. Section 72-3-607, MCA, is
amended to read:

"72-3-607. Inventory ~ appraisal ~ copy
to department of revenue. (1) Within If the estate
must file a United States estate tax return, within
die time required for the filing of a the United
States estate tax return plus any extensions granted
by the internal revenue service, a personal
representative, who is not a special administrator
or a successor to another representative who has
previously discharged this duty, shall prepare and
file or mail an inventoryr^ which The inventory
shaH must include a listing of all property which
that:

(a) the decedent owned, had an interest in
or control over, individually, in common, or
jointly, or otherwise had at the time of hts die
decedent's death;

(b) the decedent had possessory or
dispository rights over at the time of hts death or
had disposed of for less than its fair market value
within 3 years nf\vt^ the decedent's death; or

(2) The inventory sh«H must include a
statement of the full and true value of the
decedent's interest in every item listed in stieh die
inventory. In this connection^ the personal
representative shall appoint one or more qualified
and disinterested persons to assist htm the personal
representative in ascertaining the fair market value
as of the date of the decedent's death of all assets
included in die estate. Different persons may be
employed to appraise different kinds of assets
included in the estate. The names and addresses of
any appraiser shaH must be indicated on die
inventory with die item or items he appraised.

(3) The personal representative shall send
a copy of the inventory to interested persons who
request it, or he the personal representative may
file the original of the inventory with the court. In
any event, a copy of the inventory and statement of
value shaH must be mailed to the department of
revenue."

Section 18. Section 72-3-618, MCA, is
amended to read:

"72-3-618. Persons dealing with
personal representative ~ protection. (1) A

person who in good faith and without notice either
assists a personal representative or deals with htm
a personal representative for value is protected as
if the personal representative properly exercised
hts the personal representative's power. The fact
that a person knowingly deals with a personal
representative does not alone require the person to
inquire into the existence of a power or the
propriety of its exercise. Except for restrictions on
powers of supervised personal representatives
which that are endorsed on letters as provided in
72-3-404(3), no a provision in any will or order of
court purporting to limit the power of a personal
representative is not effective except as to persons
with acUial knowledge thereof of the provision.

(2) A person is not bound to see to the
proper application of estate assets paid or delivered
to a personal representative.

(3) The protection hefe expressed in this
section extends to instances in which some
procedural irregularity or jurisdictional defect
occurred in proceedings leading to the issuance of
letters, including a case in which the alleged
decedent is found to be alive. The protection here
expressed in this section is not by a substimtion for
that provided by comparable provisions of the laws
relating to commercial transactions and laws
simplifying transfers of securities by fiduciariesT
nor docs it in any way limit the provisions of

72 16 432 and 72- 16-433."

Section 19. Section 72-3-631, MCA, is
amended to read:

"72-3-631. Compensation of personal
representative. (1) A personal representative is
entitled to reasonable compensation for hts

services. Stieh The compensation shaH may not
exceed 3% of the first $40,000 of the value of the
estate as reported for federal estate tax or state
inheritance tax purposes, whichever is larger, and
2% of the value of the estate in excess of $40,000
as reported for federal estate tax or state
inheritance tax purposes, whichever is larger.
However, a personal representative is entitled to a
minimum compensation of the lesser of $100 or
the value of the gross estate.

(2) In proceedings conducted for the
termination of joint tenancies, the compensation of
the personal representative shaH may not exceed
2% of the interest passing.

(3) In proceedings conducted for the
termination of a life estate, the compensation
allowed the personal representative shaH may not
exceed 2% of die value of the life estate if it is
terminated in connection with a probate or joint
tenancy termination. If a life estate is terminated
separately, the personal representative's
compensation shaH may not exceed 2 % of the
value of the estate, except that it shaH may not be
less than $100.

(4) If there is more than one personal
representative, only one compensation is allowed.

(5) The court may allow additional
compensation for extraordinary services. Such The
additional compensation shaH may not be greater
dian the amount which that is allowed for die
original compensation.

(6) If the will provides for the
compensation of the personal representative and
there is no contract with the decedent regarding
compensation, the personal representative may
renounce the provision before qualifying and be
entitled to compensation under the terms of this
section. A personal representative also may
renounce hts the right to all or any part of the
compensation. A written renunciation of fee may
be filed with the court."

Section 20. Section 72-3-807, MCA. is
amended to read:

"72-3-807. Classification of claims as to
priority of payment. (1) If the applicable assets of
the estate are insufficient to pay all claims in full,
the personal representative shall make payment in

the following order:

(a) costs and expenses of administration;

(b) reasonable funeral expenses and
reasonable and necessary medical and hospital
expenses of the last illness of the decedent,
including compensation of persons attending the
decedent;

(d) debt for a current support obligation
and past-due support for the decedent's children
pursuant to a support order as defined in 40-5-201;

(e) debts with preference under federal and
Montana law;

(f) other federal and Montana state taxes;

(g) all other claims.

(2) A preference may not be given in the
payment of any claim over any other claim of the
same class, and a claim due and payable may not
be entitled to a preference over claims not due."

Section 21. Section 72-3-1004, MCA, is
amended to read:

"72-3-1004. Closing estate by sworn
statement of personal representative. (1) Unless
prohibited by order of the court and except for
estates being administered in supervised
administration proceedings, a personal
representative may close an estate by filing with
the court no earlier than 6 months after the date of
original appointment of a general personal
representative for the estater a verified statement
stating that he the personal representative, or a
prior personal representative whom he has
succeeded, has:

(a) determined that the time limitation for
presentation of creditors' claims has expired;

(b) fully administered the estate of the
decedent by making payment, settlement, or other
disposition of all claims which that were presented,
expenses of administration, and estate, inheritance,
and other death taxes, except as specified in the
statement, and that the assets of the estate have
been distributed to the persons entitled; if any
claims remain undischarged, the statement shaH
must state whether the personal representative has
distributed the estate subject to possible liability
with the agreement of the distributeesT or it shaH

must state in detail other arrangements which tiiat
have been made to accommodate outstanding
liabilities; and

(c) sent a copy thereof of the statement to
all distributees of the estate and to all creditors or
other claimants of whom he the personal
representative is aware whose claims are neither
paid nor barred and has furnished a full account in
writing of his the administration to the distributees
whose interests are affected thereby; and

(d) complied with the provisions of

72-3-1006 by the accounting.

(2) If no proceedings involving the
personal representative are not pending in the court
1 year after the closing statement is filed, the
appointment of the personal representative
terminates."

Section 22. Section 72-3-1006, MCA, is
amended to read:

"72-3-1006. Certificate or receipt
showing taxes paid required to close estate. (1)

In all probate proceedings under this code, before
final distribution to successors is made and before
any petition is granted under 72-3-1001,
72-3-1002, 72-3-1003, or 72-3-1004. there shaH
must have been filed with the clerk:

(a) a certificate from the department of
revenue stating that any inheritance estate tax due
on the assets of the estate has been paid; or

(b) an agreement with the department of
revenue for extension of time for payment of
inheritance estate taxes; or

(c) a receipt from the county treasurer
stating that any inheritance estate tax due on the
assets of the estate has been paid.

(2) This section shaH does not prohibit
stieh a partial distribution as that may become
necessary in the course of administration. "

Section 23. Section 72-3-1 104. MCA. is
amended to read:

"72-3-1104. Small estates ~ closing by
sworn statement of personal representative. (1)

Unless prohibited by order of the court and except
for estates being administered by supervised
personal representatives, a personal representative
may close an estate administered under the

summary procedures of 72-3-1 103 by filing with
the court, at any time after disbursement and
distribution of the estate, a verified statement
stating that:

(a) to the best knowledge of the personal
representative, the value of the entire estate, less
liens and encumbrances, did not exceed homestead
allowance, exempt property, family allowance,
costs and expenses of admmistration, reasonable
funeral expenses, and reasonable, necessary
medical and hospital expenses of the last illness of
the decedent;

(b) the personal representative has fully
administered the estate by payment of inheritance
estate taxes and by disbursing and distributing it to
the persons entitled thereto to it: and

(c) the personal representative has sent a
copy of the closing statement to all distributees of
the estate and to ail creditors or other claimants of
whom he the personal representative is aware
whose claims are neither paid nor barred and has
furnished a full account in writing of his the
administration to the distributees whose interests
are affected.

(2) If no actions or proceedings involving
the personal representative are not pending in the
court 1 year after the closing statement is filed, the
appointment of the personal representative
terminates.

(3) A closing statement filed under this
section has the same effect as one filed under
72-3-1004."

Section 24. Section 72-16-215, MCA, is
amended to read:

"72-16-215. County treasurer ~ monthly
report ~ payment of collections to state
treasurer ~ interest on unpaid amounts.
Between the 1st and 20th days of each month, each
county treasurer shall make a report under oath to
the department of revenue listing all payments
received by him under the inheritance estate tax
laws during the preceding month and stating for
what estate, by whom, and when paid. The form
of stieh the report shaH must be prescribed by the
department. He The county treasurer shall at the
same time pay the state treasurer all the payments
received by him under the inheritance estate tax

laws and not previously paid to the state treasurer^r
and for all such For payments collected by him and
but not paid to the state treasurer within 5 days
from the time herein required, he the county
treasurer shall pay interest at the rate of 10% per
annum a year. "

Section 25. Section 72-16-502, MCA, is
amended to read:

"72-16-502. Determination and payment
of tax when no personal representative —
procedure -- exception Definition of decedent.
{¥} For the purposes of this section part, a
decedent is one who dies leaving no property that
requires the appointment of a personal
representative and who:

(a)£li was the owner of a life estate that
terminated at death; or

(b)t21 was the owner of property with
another or others as a joint tenant with right of
survivorship and not as a tenant in commont-er

property requiring the determination of inheritance
tax because of death.

(2) Except as provided in subsection (6), a
remainderman, surviving joint tenant, or other
interested party shall, upon the death of a
decedent, file with the department of revenue;

(a) a copy of the death certificate;

(b) a verified application, in a form

prescribed by the department, containing
information that the department considers
necessary; and

(e) evidence of the instruments that created

the life estate, joint tenancy, or other interest
requiring determination of inheritance tax, if
required by the department.

(3) Upon receipt of the application, the

department shall:

(a) stamp the filing date upon the

application;

(b) issue a certificate showing the

inheritance tax due, if any;

(e) affix the certificate to a certified copy

of the application and rcmrn the certificate and

copy to the applicant or the applicant's attorney;

and

(d) affix a copy of the certificate to the

original application and keep it on file with the
department.

(4) The applicant shall pay the inheritance

tax determined to the county treasurer for
transmittal to the state treasurer. The county
treasurer shall issue a receipt for the payment of
the tax.

(5) If disputes arise as to tax computation,

they must be resolved as provided under the laws
applicable to tlie determination of inheritance taxes
in estates.

(6) A surviving joint tenant described in

72-16 313(1) or (2) of a decedent whose aggregate
value of the interest in the joint property is less
than the federal estate tax filing requirement is not
required to file under subsection (2)."

Section 26. Section 72-16-503, MCA, is
amended to read:

"72-16-503. Additional filings required
when real property involved and no
representative — release of lien. (1) If an interest
in real property is involved under 72-16-502, the
applicant shall record with the clerk and recorder
of each county in which the real property or any
part of the property is located a document
containing those matters required by 7-4-2613(3).
A surviving joint tenant described in 72-16-313(1)
or (2) is not subject to the recording requirements
under 7-4-2613(3).

(2) A surviving joint tenant described in
72-16-313(1) or (2) with an interest in real
property under 72-16-502 shall record with the
clerk and recorder of each county in which the real
property is located an acknowledged statement that
the holder of the nonprobate interest has died and
that the holder's interest in the property is
terminated. The acknowledged statement must
include a legal description of the real property.

(3) The recording of the documents under
subsection (1) or (2) constitutes release of any lien
for inheritance taxes. "

Section 27. Section 72-16-903, MCA, is
amended to read:

"72-16-903. Taxable situs of property.

For the purpose of thts the estate tax, the following
have taxable situs of property shall be the same as

the taxable sims for inheritance tax purposes mjhis
state:

(1) real property located in tliis state:

(2) tangible personal property located in
this state: and

(3) intangible personal property owned by
a resident regardless of where it is located."

Section 28. Section 72-16-904, MCA, is
amended to read:

"72-16-904. Estate tax imposed, in

addition to the inheritance taxes hereinabove
imposed, an An estate tax is hereby imposed upon
the transfer of the estate of every decedent leaving
an estate which that is subject to the federal estate
tax imposed by the United States of America under
the applicable provisions of the Internal Revenue
Code and which that has, in whole or in part, a
taxable situs in this state."

Section 29. Section 72-16-905, MCA, is
amended to read:

"72-16-905. Estate tax ~ how computed.

The tax hereby imposed upon the transfer of each
stteh estate shall be is equal to the maximum tax
credit allowable for state deatli taxes against tlie
federal estate tax imposed with respect to the
portion of the decedent's estate having a taxable
sims in this state, less the inheritance taxes, if any,
due this state it being. It is the purpose and intent
of this part to impose only stieh those additional
taxes hereunder as that may be necessary to give
this state the full benefit of the maximum tax credit
allowable against the federal estate tax imposed
with respect to a decedent's estate which that has a
taxable situs in this state. If only a portion of a
decedent's estate has a taxable situs in this state,
s«eh the maximum tax credit shaH must be
determined by multiplying the entire amount of the
credit allowable against the federal estate tax for
state death taxes by the percentage which that the
value of the portion of the decedent's estate which
that has a taxable situs in this state bears to the
value of the entire estate.. "

Section 30. Section 72-16-907, MCA, is
amended to read:

"72-16-907. Department to determine

tax ~ rehearing and appeal — rulemaking. ( 1 )

(a) The department of revenue shall enter an order
determining s«eh the state estate tax and the
amount thereof so due and payable.

f2^(b) Any person w with an interest
aggrieved by saeh the department's determination
shall have the same right to apply for may appeal
the determination to district court determination
and of rehearing and appeal as is now provided for
in the dctcrmmation of inheritance taxes.

(2) The department shall adopt rules
necessary for the administration and enforcement
of this part. "

Section 31. Section 72-16-909, MCA, is
amended to read:

"72-16-909. When and where tax
payable ~ interest. UQ The estate tax shall be is
payable to the county treasurer of the county m
which stieh the estate is being probated in the same
manner provided for the payment of inheritance
taxes in 72-16-441.

(2) If the tax is not paid within 18 months
of the death of the decedent, interest must be
charged and collected at the rate of 10% a year
from the time that the tax accrued, unless because
of claims made upon the estate, necessary
litigation, or other unavoidable cause of delay, the
tax is not determined and paid on time. Interest at
the rate of 6% must be charged upon the amount
of tax due from the time of accrual until the cause
of the delay is removed, and after that time,
interest at the rate of 10% must be charged.

(3) Litigation to defeat the payment of the
tax is not necessary litigation.

(4) When permission has been granted to
defer payment of tax under 72-16-910. interest
must be charged at the rate of 6 % after 1 year
from the date of death until the date of payment. "

Section 32. Section 72-16-1007, MCA, is
amended to read:

"72-16-1007. Applicability of other taxes
— rulemaking Rulemaking. The provisions of
Title 72. chapter 16, parts 1 through 8. relating to
the tax on inheritances and transfers, apply to
72-16-1001 through 72-16 1006 unless they arc m

conflict with this part. The department shall adopt
rules necessary for the administration and
enforcement of this part. "

Section 33. Section 80-12-305, MCA, is
amended to read:

"80-12-305. Tax exemption of bonds.

Bonds issued by the authority under this chapter
and their transfer and income, includmg any
profits made on their sale, are exempt from
taxation by the state or any political subdivision or
other instrumentality of the state, except for
inheritance, estate, and gift taxes. The authority is
not required to pay recording or transfer fees or
taxes on instruments recorded by it."

Section 34. Section 90-6-125, MCA, is
amended to read:

"90-6-125. Tax exemption of bonds.

Bonds, notes, or other obligations issued by the
board under this part or by local housing
authorities under Title 7, chapter 15, parts 21. 44,
and 45, their transfer, and their income (including
any profits made on their sale) shall be are free
from taxation by the state or any political
subdivision or other instrumentality of the state,
excepting inheritance, except for estate, and gift
taxes. The board is not required to pay recording
or transfer fees or taxes on instruments recorded
by It. "

Section 35. Code commissioner

instruction. The code commissioner shall
renumber 72-16-217 as an integral part of Title 50,
chapter 15.

Section 36. Repealer. Sections 72-4-304,
72-14-303, 72-16-101, 72-16-102, 72-16-201,
72-16-203, 72-16-204, 72-16-205, 72-16-206,
72-16-207, 72-16-208, 72-16-209, 72-16-210,
72-16-211, 72-16-212, 72-16-213, 72-16-214,
72-16-216, 72-16-218, 72-16-301, 72-16-302,
72-16-303, 72-16-304, 72-16-305, 72-16-306,
72-16-307, 72-16-308, 72-16-311, 72-16-312,
72-16-313, 72-16-314, 72-16-315, 72-16-316,
72-16-317, 72-16-318, 72-16-319, 72-16-321,
72-16-322. 72-16-323, 72-16-331. 72-16-332,
72-16-333, 72-16-334, 72-16-335, 72-16-336,

72-16-337. 72-16-338, 72-16-339, 72-16-340,
72-16-341, 72-16-342, 72-16-343, 72-16-344,
72-16-345, 72-16-346, 72-16-347, 72-16-348,
72-16-349, 72-16-401, 72-16-402, 72-16-403,
72-16-411, 72-16-412, 72-16-413, 72-16-414,
72-16-415, 72-16-416, 72-16-417, 72-16-418,
72-16-419, 72-16-420, 72-16-421, 72-16-422,
72-16-423, 72-16-424, 72-16-425, 72-16-431,
72-16-432, 72-16-433, 72-16-434, 72-16-435,
72-16-436, 72-16-437, 72-16-438, 72-16-439,
72-16-440, 72-16-441, 72-16-442, 72-16-443,
72-16-445, 72-16-446, 72-16-447, 72-16-448.
72-16-449, 72-16-450. 72-16-451, 72-16-452,
72-16-453, 72-16-454, 72-16-455, 72-16-456,
72-16-457, 72-16-458, 72-16-459, 72-16-460,
72-16-461, 72-16-462, 72-16-463, 72-16-464,
72-16-465, 72-16-471, 72-16-472, 72-16-473,
72-16-474, 72-16-475, 72-16-476, 72-16-477.
72-16-478, 72-16-479, 72-16-480, 72-16-481,
72-16-482, 72-16-491, 72-16-492, 72-16-493,
72-16-504, 72-16-505, 72-16-701, 72-16-702,
72-16-703. 72-16-704. 72-16-705. 72-16-706,
72-16-801, 72-16-802, 72-16-803, 72-16-804,
72-16-805, and 72-16-902, MCA, are repealed.

Section 37. Effective date. This act is
effective upon approval by the electorate.

Section 38. Applicability. This act
applies to deaths occurring after December 31,
2000.

Section 39. Submission to electorate.

This act shall be submitted to the qualified electors
of Montana at the genera! election to be held in
November 2000 by printing on the ballot the full
title of this act and the following:

[] FOR repealing state inheritance taxes.

[] AGAINST repealing state inheritance
taxes.

The Complete Text of Initiative No. 143 (1-143)

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

Section 1. Section 87-4-407, MCA, is
amended to read:

"87-4-407. License required ~
moratorium ~ penalty - seizure of illegally
possessed animals. ( 1 ) A person may not operate
an alternative livestock ranch in this state without
having first obtaining obtained an alternative
livestock ranch license from the department prior
to [the effective date of this act1. A person may
not apply for or be granted a license after that
date. The department may not accept any new
applications for an initial alternative livestock
ranch license until a live test for chronic wasting
disease is developed and is approved by the
department of livestock.

(2) A person who operates an alternative
livestock ranch without a license or possesses,
transports, buys, or sells animals whose
importation into the state is restricted pursuant to
87-4-424 is guilty of a misdemeanor and is subject
to the penalties provided in 87-4-427(4).

(3) Any animal held in violation of
subsection (2) or otherwise illegally possessed may
be immediately seized by the department and is
subject to disposal by the department. Costs of
seizure may be charged to the person in possession
of the animal."

Section 2. Section 87-4-408, MCA, is
amended to read:

"87-4-408. Jurisdiction. (1) The

department has primary jurisdiction over
alternative livestock ranches with regard to
licensing, reports, recordkeeping, exterior fencing,
classification of certain species under 87-4-424,
removal of game animals under 87-4-410.
unlawful capture under 87-4-418, inspection under
87-4-413, and enforcement of the functions listed
in this subsection.

(2) The department of livestock has
primary jurisdiction over alternative livestock
ranches with regard to marking, inspection,
transportation, importation, quarantine, hold

orders, interior facilities, health, and enforcement
of the functions listed in this subsection. "

Section 3. Section 87-4-411, MCA, is
amended to read:

"87-4-411. License and renewal fees ~
deposit of fees. ( 1 ) The Except as provided in
87 4 407(1), the department shall charge an initial
annual renewal alternative livestock ranch license
fee and an annual renewal fee based on the
following scale:

(a) an alternative livestock ranch with 1 to
20 alternative livestock, an initial license fee of
$200 and an annual renewal a fee of $100;

(b) an alternative livestock ranch with 21
to 60 alternative livestock, an initial license fee of
$300 and an annual renewal a fee of $200; and

(c) an alternative livestock ranch with
more than 60 alternative livestock, an initial
license fee of $400 and an annual renewal a fee of
$400.

(2) In addition to the fees assessed under
subsection (1). the department shall charge
applicants a fee of $4 an acre based on the total
number of acres indicated in the application for a
license. In cases of an application for a license
modification, the fee applies only if an acreage
expansion is proposed.

B^(2) The department of livestock shall
assess a fee, not to exceed $50. for each alternative
livestock imported into the state.

f4)£3l (a) One-half of the fees collected
pursuant to subsection (1) and all of the fees
collected pursuant to subsection (2) must be
deposited in the state special revenue fund for the
use of the department for purposes of this part.

(b) One-half of the fees collected pursuant
to subsection ( 1 ) and all import fees collected
pursuant to subsection f^ £2} must be deposited in
the state special revenue fund for the use of the
department of livestock for purposes of this part. "

Section 4. Section 87-4-412, MCA, is
amended to read:

"87-4-412. Term of license ~ renewal ~
transferability transfer prohibited. ( 1 ) An

alternative livestock ranch license expires on
March 1 of the year succeeding the year of
issuance. Application for renewal must be made
before a license expires. The department shall
renew the license upon payment of the renewal fee
if the licensee has complied with all recording and
reporting requirements.

(2) An alternative livestock ranch license
for a specific facility is not transferable with the
consent of the department. The department's
consent must be given if:

(a) the transferee meets the requirements
of 87-4-426(l);

(b) the alternative livestock ranch and
facilities arc in compliance with requirements in
place at the time the license was issued;

(e) the alternative livestock ranch is not
under quarantine by the department:

(d) alternative livestock to be transferred
are not prohibited under this part and department
rules; and

Section 5. Section 87-4-413, MCA, is
amended to read:

"87-4-413. Inspection. (1) Upon receipt
of an application for an alternative livestock ranch
license, the department shall inspect the land
proposed to be covered by the license.

(3) The department may inspect the
alternative livestock ranch or the licensee's
alternative livestock ranch records on a scheduled
basis or on another reasonable basis as may be
determined necessary."

Section 6. Section 87-4-414, MCA. is
amended to read:

"87-4-414. Alternative livestock as
private property ~ source ~ marking — fee
shooting prohibited. (1) All alternative livestock
lawfully possessed on a licensed alternative
livestock ranch are private property for which the
licensee is responsible as provided by law.

(2) The licensee may acquire, breed,
grow, keep, pursue, handle, harvest, use, sell, or
dispose of the alternative livestock and their
progeny in any quantity and at any time of year as

long as the licensee complies with the requirements
of this part, except that the licensee may not allow
the shooting of game animals or alternative
livestock, as defined in 87-2-101 or 87-4-406. or
of any exotic big game species for a fee or other
remuneration on an alternative livestock facility.

(3) A licensee shall mark alternative
livestock in a manner approved by the department
of livestock, as required under subsection (4), and
that indicates ownership and provides individual
identification of animals for inspection,
transportation, reporting, and taxation purposes.

(4) The department of livestock is
responsible for the control, tracking, and
distribution of identification tags used for the
marking of alternative livestock. The department
of livestock shall require that all imported
alternative livestock are marked within 30 days of
importation and that all other alternative livestock
are marked prior to January 1 of each year. Each
alternative livestock must be marked with
identification that:

(a) is unique to the animal;

(b) is nontransferable;

(d) allows for the identification of
alternative livestock from a distance.

(5) Upon the request of a licensee, the
department of livestock may grant a temporary
waiver as to the time for identification and to the
manner of identification if necessary to address a
special circumstance.

(6) Alternative livestock must be lawfully
acquired by the licensee. Alternative livestock may
be kept only on a licensed alternative livestock
ranch. A licensee who keeps alternative livestock
owned by, leased to, or leased from anotlier person
shall comply with all of the requirements of this
part as if the animal belonged to the licensee.
Records and reports submitted by the licensee
pursuant to 87-4-417 must identify any alternative
livestock kept by the licensee during the reporting
period and the name and address of the owner or
lessee.

(7) Except as otherwise provided in this
part, laws applicable to game animals do not apply

to alternative livestock raised on a licensed
alternative livestock ranch."

Section 7. Section 87-4-428, MCA, is
amended to read:

"87-4-428. Right to administrative
hearing. (1) An applicant must be given notice and
an opportunity for a hcarmg on a proposed denial
or issuance with stipulations of an alternative
livestock ranch license pursuant to 87-4-426 before
the department may deny a license or grant a
license with stipulations.

(2)111 A licensee must be given notice and
an opportunity for a hearing before the department
may refuse to renew a license, withhold consent to
the transfer of a license, revoke a license, or
discipline a licensee.

f5)(2} The notice and an opportunity for a
hearing and any judicial appeal must be conducted
as provided in Title 2, chapter 4, parts 6 and 7. "

Section 8. Section 87-4-433, MCA, is
amended to read:

"87-4-433. Programmatic environmental

review. (1) The department, in cooperation with
the department of livestock, shall, by July 1, 2001,
conduct a programmatic review of environmental
impacts that may be associated with the granting of
a license to operate an alternative livestock ranch.

(2) In consultation with the department of
livestock, the department shall select a contractor
to prepare the programmatic environmental
review, which must be in the form of an
environmental impact statement.

(3) In addition to the department of
livestock, the department shall seek the assistance
and participation of other governmental agencies
that have special expertise in areas that should be
addressed in the programmatic.

(4) For an alternative livestock ranch
license application that is received after July 1,
2001, the department shall conduct an
environmental review, if required, using the
programmatic and tiering environmental impacts to
the programmatic."

NEW SECTION. Section 9. Repealer.

Sections 87-4-409, 87-4-410, 87-4-426, and
87-4-431, MCA, are repealed.

NEW SECTION. Section 10.
Severability. If a part of this act is invalid, all
valid parts that are severable from the invalid part
remain in effect. If a part of this act is invalid m
one or more of its applications, the part remains in
effect in all valid applications that are severable
from the invalid applications.

NEW SECTION. Section 11. Effective

date. This act is effective upon approval of the
electorate.

Mark your choices and take this with you to the polls on election day, November 7th!

Constitutional Amendment 34 (C 34)
Constitutional Amendment 35 (C 35)
Legislative Referendum 1 15 (LR 115)
Legislative Referendum 1 16 (LR 1 16)
Initiative 143 (I 143)

□ FOR

□ AGAINST

□ FOR

□ AGAINST

□ FOR

□ AGAINST

□ FOR

□ AGAINST

□ FOR

□ AGAINSI

While you may take this with you when you go into the poll booth, please remember to take your copy of
the VIP with you when you leave.

Additional copies of this Voter Information Pamphlet are available upon request from your county election
administrator or the Secretary of State, 1-888-884-8683 (VOTE).

500,000 copies of this public document were pubiisiied at an estimated cost of $0,155 per copy, for a total of $77,500.00 which
includes $77,500.00 for printing. Distribution costs paid for by county governments. This document printed on recycled paper.

Look inside for information on how to become one of Montana's BEST!

COUNTY ELECTION ADMINISTRATOR
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