House Bill No. [insert bill number] introduces the crime of human smuggling in Montana, defining it as knowingly transporting or harboring individuals who have unlawfully entered the U.S. The bill establishes severe penalties for those convicted, including imprisonment ranging from 2 to 20 years and fines up to $400,000. Additionally, entities found guilty of human smuggling will lose their eligibility for tax exemptions, as outlined in amendments to Sections 15-6-201 and 15-31-102 of the Montana Code Annotated (MCA). These amendments clarify that purely public charities must not have been convicted under the new human smuggling law to maintain their tax-exempt status, thereby reinforcing the legal framework against human smuggling.

The bill also addresses the taxation of certain entities, particularly domestic international sales corporations (DISC) and other exempt organizations. It mandates that any income derived from an entity convicted of human smuggling must be taxed like other corporate income. Furthermore, unrelated business taxable income earned by exempt corporations that incurs a federal tax liability exceeding $100 will be taxed under the same regulations as other corporate income. The bill includes a codification instruction for integration into Title 45, chapter 5, part 7 of the law, and sets an effective date of July 1, 2025, to ensure accountability and fairness in the taxation system for entities with legal convictions.

Statutes affected:
LC Text: 15-6-201, 15-31-102
HB0709_1(1): 15-6-201, 15-31-102
HB0709_1(2): 15-6-201, 15-31-102
HB0709_1(3): 15-6-201, 15-31-102
HB0709_1(4): 15-6-201, 15-31-102
HB0709_1: 15-6-201, 15-31-102