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69th Legislature 2025 SB0409.3
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1 SENATE BILL NO. 409
2 INTRODUCED BY D. ZOLNIKOV
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING LAWS RELATED TO THE
5 DEPARTMENT OF COMMERCE; REVISING LAWS RELATED TO LODGING FACILITY USE TAX
6 REVENUES; REQUIRING THE DEPARTMENT OF COMMERCE TO USE THE LODGING FACILITY USE
7 TAX REVENUE FOR SPECIFIC PURPOSES; EXPANDING THE SCOPE OF THE EMERGENCY LODGING
8 FOR VICTIMS OF DOMESTIC VIOLENCE OR HUMAN TRAFFICKING PROGRAM AND MAKING IT
9 PERMANENT; AMENDING SECTIONS 15-65-121, 44-4-1505, AND 44-4-1506, MCA; AMENDING SECTION
10 12, CHAPTER 563, LAWS OF 2021, AND SECTION 10, CHAPTER 758, LAWS OF 2023; REPEALING
11 SECTION 90-1-122, MCA; AND PROVIDING EFFECTIVE DATES.”
12
13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
14
15 Section 15-65-121, MCA, is amended to read:
16 "15-65-121. (Temporary) Distribution of tax proceeds
17 65-111 must, in accordance with the provisions of 17-2-124, be deposited in an account in the state special
18 revenue fund to the credit of the department. The department may spend from that account in accordance with
19 an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing
20 the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of
21 17-2-124 and as provided in subsections (2)(a) through (2)(j) of this section, the department shall determine the
22 expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from
23 the tax proceeds received each reporting period. The department shall distribute the portion of the 4% that was
24 paid with federal funds to the department of administration for return to the federal government and deposit
25 30% of the amount deducted less the portion paid with federal funds in the state general fund.
26 (2) The balance of the tax proceeds received each reporting period and not deducted pursuant to
27 the expenditure appropriation, deposited in the state general fund, distributed to agencies that paid the tax with
28 federal funds, or deposited in the heritage preservation and development account must be transferred to an - 2025
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1 account in the state special revenue fund to the credit of the department of commerce for the purposes
2 designated under 90-1-122, to the emergency lodging for victims of domestic violence or human trafficking
3 account, to the Montana historical interpretation state special revenue account, to the Montana historical
4 society, to the university system, to the state-tribal economic development commission, and to the department
5 of fish, wildlife, and parks, as follows:
6 (a) 1% to the Montana historical society to be used for the installation or maintenance of roadside
7 historical signs and historic sites;
8 (b) 2.5% to the university system for the establishment and maintenance of a Montana travel
9 research program;
10 (c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks
11 that have both resident and nonresident use;
12 (d) 1.4% to the invasive species state special revenue account established in 80-7-1004;
13 (e) 60.2% to be used directly by the department of commerce as provided in 90-1-122[, and in part
14 to renovate the Miles City train depot];
15 (f) 0.1% to the emergency lodging for victims of domestic violence or human trafficking account
16 established in 44-4-1506;
17 (g) (i) except as provided in subsection (2)(g)(ii), 22.5% to be distributed by the department to
18 regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total
19 proceeds collected statewide; and
20 (ii) if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county,
21 resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional
22 nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area
23 district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-
24 county, resort area, or resort area district;
25 (h) 0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal
26 economic development commission established in 90-1-131 for activities in the Indian tourism region;
27 (i) 2.6% to the Montana historical interpretation state special revenue account established in 22-3-
28 115; and - 2025
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1 (j) 2.7% or $1 million, whichever is less, to the Montana heritage preservation and development
2 account provided for in 22-3-1004. The Montana heritage preservation and development commission shall
3 report on the use of funds received pursuant to this subsection (2)(j) to the legislative finance committee on a
4 semiannual basis, in accordance with 5-11-210.
5 (3) If a city, consolidated city-county, resort area, or resort area district qualifies under 15-68-
6 820(5)(b)(iii) or this section for funds but fails to either recognize a nonprofit convention and visitors bureau or
7 submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be
8 allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county,
9 resort area, or resort area district is located.
10 (4) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual
11 marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism
12 corporation may be used by the department of commerce for tourism promotion and promotion of the state as a
13 location for the production of motion pictures and television commercials.
14 (5) The tax proceeds received that are transferred to a state special revenue account pursuant to
15 subsections (2)(a) through (2)(c), (2)(e), and (2)(g) are statutorily appropriated to the entities as provided in 17-
16 7-502. The tax proceeds received that are transferred to the emergency lodging for victims of domestic violence
17 or human trafficking account pursuant to subsection (2)(f) are subject to the appropriation provisions in 44-4-
18 1506.
19 (6) The tax proceeds received that are transferred to the invasive species state special revenue
20 account pursuant to subsection (2)(d), to the Montana historical interpretation state special revenue account
21 pursuant to subsection (2)(i), and to the Montana heritage preservation and development account pursuant to
22 subsection (2)(j) are subject to appropriation by the legislature. (Terminates June 30, 2027--sec. 12, Ch. 563, L.
23 2021; sec. 10, Ch. 758, L. 2023; bracketed language in subsection (1)(e) terminates June 30, 2025--sec. 34,
24 Ch. 763, L. 2023.)
25 (1) The proceeds of the tax
26 imposed by 15-65-111 must, in accordance with the provisions of 17-2-124, be deposited in an account in the
27 state special revenue fund to the credit of the department of revenue. The department of revenue may spend
28 from that account in accordance with an expenditure appropriation by the legislature based on an estimate of - 2025
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1 the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds
2 in accordance with the provisions of 17-2-124 and as provided in subsections (2)(a) through (2)(h) subsection
3 (2) of this section, the department of revenue shall determine the expenditures by state agencies for in-state
4 lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting
5 period. The department of revenue shall distribute the portion of the 4% deducted from the state agencies in-
6 state lodging calculation that was paid with federal funds to the department of administration for return to the
7 federal government and deposit 30% of the amount deducted less the portion paid with federal funds in the
8 state general fund. The amount of $400,000 each year must be deposited in the Montana heritage preservation
9 and development account provided for in 22-3-1004.
10 (2) The balance of the tax proceeds received each reporting period and not deducted pursuant to
11 the expenditure appropriation, deposited in the state general fund, or distributed to agencies that paid the tax
12 with federal funds, or deposited in the heritage preservation and development account must be transferred to
13 an account individual accounts in the state special revenue fund to the credit of the department of commerce
14 for the purposes designated under 90-1-122, to the Montana historical interpretation state special revenue
15 account, to the Montana historical society, to the university system, to the state-tribal economic development
16 commission, and to the department of fish, wildlife, and parks, as follows:
17 (a) 1% to the Montana historical society to be used for the installation or maintenance of roadside
18 historical signs and historic sites;
19 (A) 1% TO THE MONTANA HISTORICAL SOCIETY TO BE USED FOR THE INSTALLATION OR MAINTENANCE OF
20;
21 (b)(a)(B) 2.5% 2% to the university system for the establishment and maintenance of a Montana
22 travel research program;
23 (c)(b)() 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in
24 state parks that have both resident and nonresident use;
25 (d)(c)() 1.4% 1.5% to the invasive species state special revenue account established in 80-7-
26 1004;
27 (e) 63% to be used directly by the department of commerce as provided in 90-1-122;
28 (d)() 24.5% to be used by the department of commerce for tourism media, advertising film programs, - 2025
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1 made-in-Montana promotions and main street programs, wayfinding and signage, and support to trade offices;
2 (e)(F) 17% 16.5% to be used by the department of commerce for rural tourism, under-visited area
3 attraction projects, and tribal tourism, including infrastructure, marketing, and promotional activities;
4 (f)(G) 16% 15.5% to be used by the department of commerce for tourism-related emergency services
5 and tourism grants, including agritourism grants and Montana-based film grants;
6 (g)(H) 2.5% to be used by the department of commerce in collaboration with the office of economic
7 development established in 2-15-218 for regional tourism assistance, new tourism attractions, and other state
8 business development programs;
9 (f)(h)(I) (i) except as provided in subsection (2)(f)(ii) (2)(h)(ii) (2)(I)(II), 22.5% to be distributed by the
10 department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism
11 region to the total proceeds collected statewide; and
12 (ii) if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county,
13 resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional
14 nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area
15 district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-
16 county, resort area, or resort area district;
17 (g)(i)(J) 0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal
18 economic development commission established in 90-1-131 for activities in the Indian tourism region; and
19 (h)(j)(K) 2.6% 2.5% to the Montana historical interpretation state special revenue account established in
20 22-3-115. ;
21 (k)(L) 2.5% to the emergency lodging and recovery for victims of domestic violence or human
22 trafficking account established in 44-4-1506;
23 (l)() 2% to the Montana heritage preservation and development account provided for in 22-3-1004;
24 and
25 (m)(N) any unspent funds from the accounts in subsections (2)(d) (2)(E) through (2)(g) (2)(H) must be
26 deposited into the account of subsection (2)(d) (2)(E) BY O1 OF EACH YEAR.
27 (3) If a city, consolidated city-county, resort area, or resort area district qualifies under 15-68-
28 820(5)(b)(iii) or this section for funds but fails to either recognize a nonprofit convention and visitors bureau or - 2025
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1 submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be
2 allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county,
3 resort area, or resort area district is located.
4 (4) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual
5 marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism
6 corporation may be used by the department of commerce for tourism promotion and promotion of the state as a
7 location for the production of motion pictures and television commercials.
8 (5) The tax proceeds received that are transferred to a state special revenue account pursuant to
9 subsections (2)(a) through (2)(c), (2)(e), and (2)(f) (2)(a), (2)(b), and (2)(d) through (2)(h) (2)(A) THROUGH (2)()
10 (2)(E) (2)(I) are statutorily appropriated to the entities as provided in 17-7-502.
11 (6) The tax proceeds received that are transferred to the invasive species state special revenue
12 account state special revenue accounts pursuant to subsection (2)(d) and to the Montana historical
13 interpretation state special revenue account pursuant to subsection (2)(h) (2) are subject to appropriation by the
14 legislature."
15
16 Section 44-4-1505, MCA, is amended to read:
17 "44-4-1505.
18REIMBURSEMENT -- rulemaking -- definitions. (1) There is an
19 emergency lodging and recovery program for licensed establishments located in the state to assist designated
20 organizations in providing short-term lodging and recovery assistance in the state to individuals and families
21 that are victims of domestic violence or human trafficking.
22 (2) (a) Subject to the provisions of this section, participating establishments may submit a grant
23 application to ENROLL IN THE EMERGENCY LODGING AND RECOVERY PROGRAM. PARTICIPATING ESTABLISHMENTS MAY
24 the department of justice for providing emergency lodging and recovery assistance
25 to an individual or family who is in immediate need of shelter based on being a victim of domestic violence or
26 human trafficking.
27 (b) In order to be eligible for the grant REIMBURSEMENT, the individual or family must be referred to
28 the establishment by a designated organization. - 2025
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1 (3) Grant funds FUNDS for the program are provided from funding in the emergency lodging and
2 recovery for victims of domestic violence or human trafficking state special revenue account provided for in 44-
3 4-1506. The grant REIMBURSEMENT FOR SHORT-TERM LODGING AND RECOVERY ASSISTANCE:
4 (a) is equal to the lesser of the average daily rate or the state rate for each night lodging was
5 provided at no cost to the individual or the referring organization;
6 (b) is limited to a maximum of 5 nights' lodging AND ASSOCIATED COSTS for each individual or family
7 for each calendar year;
8 (c) may be claimed only for lodging, RECOVERY ASSISTANCE, provided in the
9 state; and
10 (d) is exempt from the lodging and facility use tax imposed by 15-65-111 or the sales tax and use
11 tax on accommodations imposed by 15-68-102.
12 (4) Participating establishments may offer lodging based on availability of rooms.
13 (5) The department of justice shall maintain a registry of designated organizations and shall
14 provide a list of approved organizations to establishments on request. The department of justice shall seek
15 comment from appropriate statewide nonprofit organizations when developing and updating the registry.
16 (6) The grants FUNDS provided in this section are subject to available funding and are not
17 guaranteed. The grant does FUNDS MAY not apply to the costs of providing lodging to an individual who is
18 displaced by a major disaster declared by the president under 42 U.S.C. 5170 or 5191 and who receives
19 financial assistance for temporary housing under 42 U.S.C. 5174.
20 (7) The department of justice may adopt rules, prepare forms, and maintain records that are
21 necessary to implement and administer this section.
22 (8) As used in this section, the following definitions apply:
23 (a) (i) "Average daily rate" means the total amount of lodging receipts received by the
24 establishment during the night of the emergency stay without regard to local and state taxes received divided
25 by the number of rooms the establishment received compensation for during the night of the emergency stay.
26 (ii) The term does not include grant money received pursuant to this section.
27 (b) "Designated organization" means a charitable organization or government entity approved by
28 the department of justice to make referrals for emergency lodging. - 2025
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1 (c) "Establishment" means a person or entity that makes sales of accommodations as defined in
2 15-68-101.
3 (D) "RECOVERY ASSISTANCE" MEANS SERVICES DESIGNED TO ASSIST VICTIMS OF CRIME BY PROVIDING
4, INCLUDING EMOTIONAL AND PSYCHOLOGICAL COUNSELING, CRISIS INTERVENTION
5,' LIVES AND HELPING THEM NAVIGATE THE CRIMINAL JUSTICE SYSTEM.
6 (d)(E) "State rate" means the rate the state pays for state employees in travel status that is adopted
7 by the department of administration. (Terminates June 30, 2027--sec. 10, Ch. 758, L. 2023.)"
8
9 Section 44-4-1506, MCA, is amended to read:
10 "44-4-1506.
11
12 or human trafficking account in the state special revenue fund. The account is administered by the department
13 of justice.
14 (2) The revenue allocated to the account as provided in 15-65-121(2)(f)(2)(k)(2)(L) must be
15 deposited in the account and distributed as provided in 44-4-1505.
16 (3) Money in the account is statutorily appropriated, as provided in 17-7-502, to the department of
17 justice to provide grants to licensed establishments that provide short-term lodging and recovery assistance in
18 the state to individuals and families that are victims of domestic violence or human trafficking pursuant to 44-4-
19 1505. (Terminates June 30, 2027--sec. 10, Ch. 758, L. 2023.)"
20
21 Section 12, Chapter 563, Laws of 2021, is amended to read:
22 "Section 12. (1) [Sections 4 through 5 and 6] terminate June 30, 2027.
23 (2) [Section 4] terminates June 30, 2025."
24
25 Section 10, Chapter 758, Laws of 2023, is amended to read:
26 "Section 10. (1) [Sections 1 through Section 6] terminate terminates June 30, 2027.
27 (2) [Section 3] terminates June 30, 2025."
28 - 2025
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1 NEW SECTION. Repealer.
2 repealed:
3 90-1-122. Lodging facility use tax allocation -- allowable uses -- unspent fund redistribution -- rulemaking -
4 - fees.
5
6 NEW SECTION. Section 7. (1) Except as provided in subsection (2), [this act] is
7 effective upon passage and approval.
8 (2) [Sections 1 through 3 and 6] are effective July 1, 2025.
9 - END -