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Full text of "2000 Voter information pamphlet : / every vote counts"

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 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 


2 








County election administrators 


5 


Vote on Novembi 


,1 Vl;... 




The political parties in Montana 


6-8 










Arguments 


Text 


Arguments 


Text 


Constitutional Amendment 34 


9 


29 Legislative Referendum 1 16 


21 


61 


Constitutional Amendment 35 


13 


30 Initiative 143 


25 


77 


Legislative Referendum 1 1 5 


17 


31 







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. 



10 



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. 



11 



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. 



12 



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 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 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. 



13 



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! 



14 



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 



15 



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 

16 



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 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 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 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. 

17 



ARGUMENT FOR 

NO ARGUMENT SUBMITTED 



IS 



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. 



19 



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 



20 



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. 



21 



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. 



22 



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. 



23 



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. 

24 



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 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 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. 



25 



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 

26 



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. 



27 



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 

28 



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 

(c) Such other safe investments bearing a 



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. 



29 



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. 

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 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. 



30 



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. 



31 



(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 - 50 4 , 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; 

(c) third class— all counties having a 
taxable valuation of $20 million or more and less 
than $30 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; 



32 



(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 



33 



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 



34 



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 

(c) property which comes to rest and that 
becomes a part of the general property of the state. 

(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 



35 



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 re gistration 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. 

(c) The quarterly taxes fees are due the 
first day of the quarter. 

(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 
re gistration 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 

(C) a spouse who is unable to provide 
self-care because of physical or mental illness; 

(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 



36 



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 



37 



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 
re gistration 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. Be gimiing 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 



38 



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. 

(c) The amount of $10,389,000 must be 
divided among the incorporated cities and towns in 
the following manner: 

(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 



39 



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, 6 1 ■ 3 - 50 4 , 61-3-521, 
61-3-527, 61-3-529, 61-3-537, [sections 1 through 
31. [section 381. and 67-3-204; 

(C) oil and natural gas production taxes; 

(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. 



40 



(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 



41 



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, 6 1 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. 

(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 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; 

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

(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, 
6 1 - 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 



42 



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 



43 



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 

(c) any estimated costs for supervised 



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 



44 



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; 

(c) anticipated payments from a parent or 
guardian for providing school bus transportation 
services for a child; 

(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 



45 



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; 

(c) the manufacturer of the vehicle; 

(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^ 



46 



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; 

(c) numerically under make and 
identifying number of the vehicle; and 

(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. 



47 



(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 again s t 

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 vehicle s 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 



48 



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 

(c) March 1 through March 3 1 3rd 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 



49 



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 
re gistered 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 



50 



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. 



51 



(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 



52 



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. " 



53 



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 

(c) any of the fees provided in part 5 of 
this chapter. " 

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% 


100% 


100% 


100% 





90 


96 


93 


98 


1 


80 


91 


86 


94 


2 


69 


86 


78 


90 


3 


58 


80 


69 


84 


4 


49 


73 


60 


76 


5 


41 


66 


52 


67 


6 


33 


57 


45 


57 


7 


26 


49 


38 


48 


8 


21 


43 


32 


39 


9 


17 


37 


27 


33 


10 


14 


31 


22 


29 


11 


12 


26 


18 


25 


12 


10 


22 


15 


22 


13 


09 


18 


13 


21 


14 


09 


15 


11 


19 


15 


09 


13 


09 


17 


16 


09 


12 


09 


15 



(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 



54 



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 an d, 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 
hi gh 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 



55 



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. Tax e s 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 as s essment 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 re gistration fee or fee in lieu of 
tax must be prorated as provided in subsection (2). 

(2) (ai The taxes a s sessed 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 le s s than 5 years old, 

irnA. 

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



56 



(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 
a pplication 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 



57 



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 - 50 4 
[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 mu s t 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 



58 



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 
re gistration 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 
purpo s e 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. " 



59 



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]. 



60 



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. . 



61 



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; 

(c) a description of the property; 

(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 purs uant 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 



62 



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 

(c) establish procedures for reviewing and 
approving disputes resolved by an employee or the 
dispute resolution office. 

(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 



63 



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 
e s tate 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 ; 

(c) oil and naniral gas production taxes 
allocated under I5-36-324(8)(a) and (10)(a); 

(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 



64 



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; 

(c) income from partnerships and other 
fiduciaries; 

(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; 



65 



(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 estat e, 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, estat e, 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 estat e, and gift 
taxes. The board is not required to pay recording 
or transfer fees or taxes on instruments recorded 
by it." 



66 



I 



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; 

(c) a beneficiary of a beneficiary 
designation, refers to a beneficiary of: 

(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: 



67 



(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. 



68 



(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. 



69 



(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 

(c) was affected by the decedent's death 
for the purpose of inheritance or estate taxes. 

(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. 



70 



(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 



71 



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; 

(c) federal estate and Montana state estate 
and inheritance taxes; 

(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 estat e, 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 



72 



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 representativ e — 
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 

(c) was the owner of any other interest in 

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 



73 



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 a s 



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 stat e, less the inheritance taxes, if any, 
due this state it bein g . 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 



74 



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, 



75 



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. 



76 



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 
8 7 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 



77 



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 

(c) the transfer is not proposed as a means 
to evade a requirement imposed on the licensee ." 

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; 

(c) has an emblem owned and registered 
by the department of livestock that is embossed on 
each identification tag; and 

(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 



78 



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. 



79 



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) 



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□ FOR 


□ AGAINST 




□ FOR 


□ AGAINST 




□ FOR 


□ AGAINST 




□ FOR 


□ AGAINSI 





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