Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                             SB 522.1
                                                SENATE BILL NO. 522
                                           INTRODUCED BY D. ZOLNIKOV
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  A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FOR THE DISTRIBUTION OF REVENUE FROM THE
  LODGING AND FACILITIES USE TAX TO PROVIDE GRANTS TO LODGING ESTABLISHMENTS THAT
  PROVIDE VICTIMS OF DOMESTIC VIOLENCE OR HUMAN TRAFFICKING WITH SHORT-TERM LODGING;
  CREATING AN EMERGENCY LODGING PROGRAM TO ASSIST VICTIMS OF DOMESTIC VIOLENCE OR
  HUMAN TRAFFICKING THAT IS ADMINISTERED BY THE DEPARTMENT OF PUBLIC HEALTH AND
  HUMAN SERVICES; PROVIDING THAT A GRANT IS NOT SUBJECT TO STATE ACCOMMODATION
  TAXES; CREATING A STATE SPECIAL REVENUE ACCOUNT; PROVIDING DEFINITIONS; PROVIDING
  RULEMAKING AUTHORITY; AMENDING SECTIONS 15-65-121, 15-68-101, AND 90-1-135, MCA; AND
  PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          NEW SECTION. Section 1.         Emergency lodging program for victims of domestic violence or
  human trafficking -- grants -- rulemaking -- definitions. (1) There is an emergency lodging program for
  licensed establishments located in the state to assist designated charitable organizations in providing short-
  term lodging in the state to individuals and families that are victims of domestic violence or human trafficking.
          (2)      (a) Subject to the provisions of this section, participating establishments may submit a grant
  application to the department for providing emergency lodging to an individual or family who is in immediate
  need of shelter based on being a victim of domestic violence or human trafficking.
          (b)      In order to be eligible for the grant, the individual or family must be referred to the
  establishment by a designated charitable organization.
          (3)      Grant funds for the program are provided from funding in the emergency lodging for victims of
  domestic violence or human trafficking state special revenue account provided for in [section 2]. The grant:
          (a)      is equal to the lesser of the average daily rate or the state rate for each night lodging was
  provided at no cost to the individual or the referring organization;
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68th Legislature 2023                                                                                            SB 522.1
          (b)      is limited to a maximum of 5 nights' lodging for each individual or family for each calendar year;
          (c)      may be claimed only for lodging provided in the state; and
          (d)      is exempt from the lodging and facility use tax imposed by 15-65-111 or the sales tax and use
  tax on accommodations imposed by 15-68-102.
          (4)      Participating establishments may offer lodging based on availability of rooms.
          (5)      The department shall maintain a registry of designated charitable organizations and shall
  provide a list of approved organizations to establishments on request. The department shall seek comment
  from appropriate statewide nonprofit organizations when developing and updating the registry.
          (6)      The grants provided in this section are subject to available funding and are not guaranteed.
  The grant does not apply to the costs of providing lodging to an individual who is displaced by a major disaster
  declared by the president under 42 U.S.C. 5170 or 5191 and who receives financial assistance for temporary
  housing under 42 U.S.C. 5174.
          (7)      The department may adopt rules, prepare forms, and maintain records that are necessary to
  implement and administer this section.
          (8)      As used in this section, the following definitions apply:
          (a)      (i) "Average daily rate" means the total amount of lodging receipts received by the
  establishment during the night of the emergency stay without regard to local and state taxes received divided
  by the number of rooms the establishment received compensation for during the night of the emergency stay.
          (ii)     The term does not include grant money received pursuant to this section.
          (b)      "Designated charitable organization" has the meaning provided in 50-51-114.
          (c)      "Establishment" means a person or entity that makes sales of accommodations as defined in
  15-68-101.
          (d)      "State rate" means the rate the state pays for state employees in travel status that is adopted
  by the department of administration.
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          NEW SECTION. Section 2.         Emergency lodging for victims of domestic violence or human
  trafficking account. (1) There is an emergency lodging for victims of domestic violence or human trafficking
  account in the state special revenue fund. The account is administered by the department.
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68th Legislature 2023                                                                                               SB 522.1
          (2)      The revenue allocated to the account as provided in 15-65-121(2)(f) must be deposited in the
  account and distributed as provided in [section 1].
          (3)      Money in the account is subject to legislative appropriation and must be used to provide grants
  to licensed establishments that provide short-term lodging in the state to individuals and families that are
  victims of domestic violence or human trafficking pursuant to [section 1].
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          Section 3. Section 15-65-121, MCA, is amended to read:
          "15-65-121. (Temporary) Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-
  65-111 must, in accordance with the provisions of 17-2-124, be deposited in an account in the state special
  revenue fund to the credit of the department. The department may spend from that account in accordance with
  an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing
  the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of
  17-2-124 and as provided in subsections (2)(a) through (2)(i) (2)(j) of this section, the department shall
  determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of
  that amount from the tax proceeds received each reporting period. The department shall distribute the portion
  of the 4% that was paid with federal funds to the agency that made the in-state lodging expenditure and deposit
  30% of the amount deducted less the portion paid with federal funds in the state general fund.
          (2)      The balance of the tax proceeds received each reporting period and not deducted pursuant to
  the expenditure appropriation, deposited in the state general fund, distributed to agencies that paid the tax with
  federal funds, or deposited in the heritage preservation and development account must be transferred to an
  account in the state special revenue fund to the credit of the department of commerce for tourism promotion
  and promotion of the state as a location for the production of motion pictures and television commercials, to the
  emergency lodging for victims of domestic violence or human trafficking account, to the Montana historical
  interpretation state special revenue account, to the Montana historical society, to the university system, to the
  state-tribal economic development commission, and to the department of fish, wildlife, and parks, as follows:
          (a)      1% to the Montana historical society to be used for the installation or maintenance of roadside
  historical signs and historic sites;
          (b)      2.5% to the university system for the establishment and maintenance of a Montana travel
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68th Legislature 2023                                                                                                SB 522.1
  research program;
          (c)      6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks
  that have both resident and nonresident use;
          (d)      1.4% to the invasive species state special revenue account established in 80-7-1004;
          (e)      60.3%60.2% to be used directly by the department of commerce;
          (f)      0.1% to the emergency lodging for victims of domestic violence or human trafficking account
  established in [section 2];
          (f)(g)   (i) except as provided in subsection (2)(f)(ii) (2)(g)(ii), 22.5% to be distributed by the department
  to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the
  total proceeds collected statewide; and
          (ii)     if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county,
  resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional
  nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area
  district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-
  county, resort area, or resort area district;
          (g)(h)   0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal
  economic development commission established in 90-1-131 for activities in the Indian tourism region;
          (h)(i)   2.6% to the Montana historical interpretation state special revenue account established in 22-3-
  115; and
          (i)(j)   2.7% or $1 million, whichever is less, to the Montana heritage preservation and development
  account provided for in 22-3-1004. The Montana heritage preservation and development commission shall
  report on the use of funds received pursuant to this subsection (2)(i) (2)(j) to the legislative finance committee
  on a semiannual basis, in accordance with 5-11-210.
          (3)      If a city, consolidated city-county, resort area, or resort area district qualifies under 15-68-
  820(5)(b)(iii) or this section for funds but fails to either recognize a nonprofit convention and visitors bureau or
  submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be
  allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county,
  resort area, or resort area district is located.
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68th Legislature 2023                                                                                               SB 522.1
          (4)      If a regional nonprofit tourism corporation fails to submit and gain approval for an annual
  marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism
  corporation may be used by the department of commerce for tourism promotion and promotion of the state as a
  location for the production of motion pictures and television commercials.
          (5)      The tax proceeds received that are transferred to a state special revenue account pursuant to
  subsections (2)(a) through (2)(c), (2)(e), and (2)(f) (2)(g) are statutorily appropriated to the entities as provided
  in 17-7-502.
          (6)      The tax proceeds received that are transferred to the invasive species state special revenue
  account pursuant to subsection (2)(d), to the Montana historical interpretation state special revenue account
  pursuant to subsection (2)(h) (2)(i), and to the Montana heritage preservation and development account
  pursuant to subsection (2)(i) (2)(j) are subject to appropriation by the legislature. (Terminates June 30, 2027--
  sec. 12, Ch. 563, L. 2021.)
          15-65-121.    (Effective July 1, 2027) Distribution of tax proceeds. (1) The proceeds of the tax
  imposed by 15-65-111 must, in accordance with the provisions of 17-2-124, be deposited in an account in the
  state special revenue fund to the credit of the department. The department may spend from that account in
  accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting
  and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with
  the provisions of 17-2-124 and as provided in subsections (2)(a) through (2)(h) (2)(i) of this section, the
  department shall determine the expenditures by state agencies for in-state lodging for each reporting period
  and deduct 4% of that amount from the tax proceeds received each reporting period. The department shall
  distribute the portion of the 4% that was paid with federal funds to the agency that made the in-state lodging
  expenditure and deposit 30% of the amount deducted less the portion paid with federal funds in the state
  general fund. The amount of $400,000 each year must be deposited in the Montana heritage preservation and
  development account provided for in 22-3-1004.
          (2)      The balance of the tax proceeds received each reporting period and not deducted pursuant to
  the expenditure appropriation, deposited in the state general fund, distributed to agencies that paid the tax with
  federal funds, or deposited in the heritage preservation and development account must be transferred to an
  account in the state special revenue fund to the credit of the department of commerce for tourism promotion
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68th Legislature 2023                                                                                                SB 522.1
  and promotion of the state as a location for the production of motion pictures and television commercials, to the
  emergency lodging for victims of domestic violence or human trafficking account, to the Montana historical
  interpretation state special revenue account, to the Montana historical society, to the university system, to the
  state-tribal economic development commission, and to the department of fish, wildlife, and parks, as follows:
          (a)      1% to the Montana historical society to be used for the installation or maintenance of roadside
  historical signs and historic sites;
          (b)      2.5% to the university system for the establishment and maintenance of a Montana travel
  research program;
          (c)      6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks
  that have both resident and nonresident use;
          (d)      1.4% to the invasive species state special revenue account established in 80-7-1004;
          (e)      63%62.9% to be used directly by the department of commerce;
          (f)      0.1% to the emergency lodging for victims of domestic violence or human trafficking account
  established in [section 2].
          (f)(g)   (i) except as provided in subsection (2)(f)(ii) (2)(g)(ii), 22.5% to be distributed by the department
  to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the
  total proceeds collected statewide; and
          (ii)     if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county,
  resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional
  nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area
  district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-
  county, resort area, or resort area district;
          (g)(h)   0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal
  economic development commission established in 90-1-131 for activities in the Indian tourism region; and
          (h)(i)   2.6% to the Montana historical interpretation state special revenue account established in 22-3-
  115.
          (3)      If a city, consolidated city-county, resort area, or resort area district qualifies under 15-68-
  820(5)(b)(iii) or this section for funds but fails to either recognize a nonprofit convention and visitors bureau or
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68th Legislature 2023                                                                                               SB 522.1
  submit and gain approval for an annual marketing plan as required in 15-65-122, then those funds must be
  allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county,
  resort area, or resort area district is located.
          (4)        If a regional nonprofit tourism corporation fails to submit and gain approval for an annual
  marketing plan as required in 15-65-122, then those funds otherwise allocated to the regional nonprofit tourism
  corporation may be used by the department of commerce for tourism promotion and promotion of the state as a
  location for the production of motion pictures and television commercials.
          (5)        The tax proceeds received that are transferred to a state special revenue account pursuant to
  subsections