Bill Summary – FastDemocracy

Unofficial Draft Copy
67th Legislature                                                                                                      LC 1234
                                         _____________ BILL NO. _____________
                      INTRODUCED BY _________________________________________________
                                               (Primary Sponsor)
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   A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING FUNDING FOR MENTAL HEALTH CRISIS
   SERVICES; USING A PORTION OF THE TAX ON RECREATIONAL MARIJUANA PRODUCTS FOR MENTAL
   HEALTH CRISIS SERVICES; REMOVING THE TERMINATION DATE ON MOBILE CRISIS UNITS;
   PROVIDING A STATUTORY APPROPRIATION; AMENDING SECTIONS 16-12-111, 16-12-401, 17-7-502, 53-
   21-1202, 53-21-1207, AND 53-21-1209, MCA; REPEALING SECTION 9, CHAPTER 416, LAWS OF 2019;
   AND PROVIDING AN EFFECTIVE DATE.”
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   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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              Section 1. Section 16-12-111, MCA, is amended to read:
              "16-12-111. (Effective October 1, 2021) Marijuana compensation special revenue account. (1)
   There is a dedicated marijuana compensation state special revenue account within the state special revenue
   fund established in 17-2-102, to be administered by the department.
              (2)   Marijuana sales taxes collected under the provisions of part 4 of this chapter must, in accordance
   with the provisions of 17-2-124, be deposited into the account along with any interest and income earned on the
   account.
              (3)   Funds deposited into the account must be transferred in the following amounts to provide funding
   as set out below:
              (a)   4.125% of the funds to be deposited into the nongame wildlife account established in 87-5-121;
              (b)   4.125% of the funds to be deposited into the state park account established in 23-1-105(1);
              (c)   4.125% of the funds to be deposited into the trails and recreational facilities account established in
   23-2-108;
              (d)   37.125% of the funds to be deposited to the credit of the department of fish, wildlife, and parks to
   be used solely as funding for wildlife habitat in the same manner as funding generated under 87-1-242(3) and
   used pursuant to 87-1-209;
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              (e)   10.5% to the state general fund mental health services special revenue account provided for in 53-
   21-1207; and
              (f)   the remainder in the subaccounts provided for in this subsection (3)(f). There are subaccounts in
   the marijuana compensation special revenue account established by subsection (1). Funding deposited into this
   account under subsection (2) is further deposited into subaccounts to be used only as follows:
              (i)   10% of the funds to be deposited into a subaccount to be administered by the department of public
   health and human services to provide grants to existing agencies and not-for-profit organizations, whether
   government or community-based, to increase access to evidence-based low-barrier drug addiction treatment,
   prioritizing medically proven treatment and overdose prevention and reversal methods and public or private
   treatment options with an emphasis on reintegrating recipients into their local communities, to support overdose
   prevention education, and to support job placement, housing, and counseling for those with substance use
   disorders;
              (ii) 10% of the funds to be deposited into a subaccount to be administered by the department of
   commerce for distribution to the local government representing the locality where the retail sales occurred;
              (iii) 10% of the funds to be deposited into a subaccount to be administered by the veterans' affairs
   division of the department of military affairs to provide services and assistance for all Montana veterans and
   surviving spouses and dependents; and
              (iv) 10% of the funds to be deposited into a subaccount to be administered by the Montana department
   of public health and human services to administer medicaid rate increases that provide for a wage increase to
   health care workers who provide direct medicaid-funded home and community health services for elderly and
   disabled persons.
              (4)   (a) Funds transferred from the accounts and subaccounts provided in subsection (3) may be used
   only to increase revenue for the purposes specified and may not be used to supplant other sources of revenue
   used for these purposes.
              (b)   Funds deposited into the account provided in subsection (1) may be used only to increase
   revenue to each special revenue account or subaccount set forth in subsection (3) and may not be used to
   supplant other sources of revenue for these purposes."
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67th Legislature                                                                                                         LC 1234
              Section 2. Section 16-12-401, MCA, is amended to read:
              "16-12-401. (Effective October 1, 2021) Tax on marijuana sales. (1) A tax on the purchase of
   marijuana and marijuana-infused products for consumption, use, or any purpose other than for use for a
   debilitating medical condition as provided in Title 50, chapter 46, part 3, or for resale in the regular course of
   business under the provisions of this chapter is imposed on the purchaser and must be collected at the time of
   the sale and paid by the seller to the department for deposit in the marijuana compensation state special
   revenue account provided for in 16-12-111. The tax is imposed at a rate of 20% of the retail price.
              (2)   Adult-use marijuana providers and adult-use marijuana-infused products providers shall submit
   quarterly reports to the department listing the total dollar amount of sales to consumers from any registered
   premises, as defined in 16-12-102, operated by the adult-use marijuana providers or adult-use marijuana-
   infused products providers, including dispensaries. The report must be:
              (a)   made on forms prescribed by the department; and
              (b)   submitted within 15 days of the end of each calendar quarter.
              (3)   At the time the report is filed, the licensee shall submit a payment equal to the percentage
   provided in subsection (1) of the total dollar amount of sales.
              (4)   The department shall deposit the taxes paid under this section in the dedicated marijuana
   compensation state special revenue account established in 16-12-111 within the state special revenue fund
   established in 17-2-102.
              (5)   The tax imposed by this part and related interest and penalties are a personal debt of the person
   required to file a return from the time that the liability arises, regardless of when the time for payment of the
   liability occurs.
              (6)   For the purpose of determining liability for the filing of statements and the payment of taxes,
   penalties, and interest owed under 16-12-402 through 16-12-405:
              (a)   the officer of a corporation whose responsibility it is to truthfully account for and pay to the state
   taxes provided for in 16-12-402 through 16-12-405 and who fails to pay the taxes is liable to the state for the
   taxes and the penalty and interest due on the amounts;
              (b)   each officer of the corporation, to the extent that the officer has access to the requisite records, is
   individually liable along with the corporation for filing statements and for unpaid taxes, penalties, and interest
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   upon a determination that the officer:
              (i)   possessed the responsibility to file statements and pay taxes on behalf of the corporation; and
              (ii) possessed the responsibility on behalf of the corporation for directing the filing of statements or the
   payment of other corporate obligations and exercised that responsibility, resulting in the corporation's failure to
   file statements required by this part or pay taxes due as required by this part;
              (c)   each partner of a partnership is jointly and severally liable, along with the partnership, for any
   statements, taxes, penalties, and interest due while a partner;
              (d)   each member of a limited liability company that is treated as a partnership or as a corporation for
   income tax purposes is jointly and severally liable, along with the limited liability company, for any statements,
   taxes, penalties, and interest due while a member;
              (e)   the member of a single-member limited liability company that is disregarded for income tax
   purposes is jointly and severally liable, along with the limited liability company, for any statements, taxes,
   penalties, and interest due while a member; and
              (f)   each manager of a manager-managed limited liability company is jointly and severally liable, along
   with the limited liability company, for any statements, taxes, penalties, and interest due while a manager.
              (7)   In determining which corporate officer is liable, the department is not limited to considering the
   elements set forth in subsection (6)(a) to establish individual liability and may consider any other available
   information.
              (8)   In the case of a bankruptcy, the liability of the individual remains unaffected by the discharge of
   penalty and interest against the corporation. The individual remains liable for any statements and the amount of
   taxes, penalties, and interest unpaid by the entity.
              (9)   The tax levied pursuant to this section is separate from and in addition to any general state and
   local sales and use taxes that apply to retail sales, which must continue to be collected and distributed as
   provided by law.
              (10) The tax levied under this section must be used, as designated in 16-12-111, for purposes that
   provide compensation for the economic and social costs of past and current marijuana cultivation, processing,
   and use, including funding of conservation programs to offset the use of water and soil in marijuana cultivation,
   funding to offset costs of provisions of health care associated with prior uses and health impacts of unregulated
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   marijuana, funding for substance abuse treatment and prevention, funding for mental health crisis services,
   funding of veterans' programs to offset prior uses of unregulated marijuana in ways that harmed veterans,
   funding to localities where marijuana is sold to offset the costs associated with marijuana regulation, and
   funding for the general fund to account for any costs to the state from marijuana use and regulation."
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              Section 3. Section 17-7-502, MCA, is amended to read:
              "17-7-502.    Statutory appropriations -- definition -- requisites for validity. (1) A statutory
   appropriation is an appropriation made by permanent law that authorizes spending by a state agency without
   the need for a biennial legislative appropriation or budget amendment.
              (2)   Except as provided in subsection (4), to be effective, a statutory appropriation must comply with
   both of the following provisions:
              (a)   The law containing the statutory authority must be listed in subsection (3).
              (b)   The law or portion of the law making a statutory appropriation must specifically state that a
   statutory appropriation is made as provided in this section.
              (3)   The following laws are the only laws containing statutory appropriations: 2-17-105; 5-11-120; 5-11-
   407; 5-13-403; 5-13-404; 7-4-2502; 10-1-108; 10-1-1202; 10-1-1303; 10-2-603; 10-2-807; 10-3-203; 10-3-310;
   10-3-312; 10-3-314; 10-3-802; 10-3-1304; 10-4-304; 15-1-121; 15-1-218; 15-31-1004; 15-31-1005; 15-35-108;
   15-36-332; 15-37-117; 15-39-110; 15-65-121; 15-70-101; 15-70-130; 15-70-433; 16-11-119; 16-11-509; 17-3-
   106; 17-3-212; 17-3-222; 17-3-241; 17-6-101; 17-7-215; 18-11-112; 19-3-319; 19-3-320; 19-6-404; 19-6-410;
   19-9-702; 19-13-604; 19-17-301; 19-18-512; 19-19-305; 19-19-506; 19-20-604; 19-20-607; 19-21-203; 20-8-
   107; 20-9-534; 20-9-622; 20-9-905; 20-26-617; 20-26-1503; 22-1-327; 22-3-116; 22-3-117; 22-3-1004; 23-4-
   105; 23-5-306; 23-5-409; 23-5-612; 23-7-301; 23-7-402; 30-10-1004; 37-43-204; 37-50-209; 37-54-113; 39-71-
   503; 41-5-2011; 42-2-105; 44-4-1101; 44-12-213; 44-13-102; 50-1-115; 53-1-109; 53-6-148; 53-9-113; 53-21-
   1207; 53-24-108; 53-24-206; 60-11-115; 61-3-321; 61-3-415; 67-1-309; 69-3-870; 69-4-527; 75-1-1101; 75-5-
   1108; 75-6-214; 75-11-313; 75-26-308; 76-13-151; 76-13-150; 76-17-103; 76-22-109; 77-1-108; 77-2-362; 80-
   2-222; 80-4-416; 80-11-518; 80-11-1006; 81-1-112; 81-1-113; 81-7-106; 81-7-123; 81-10-103; 82-11-161; 85-2-
   526; 85-20-1504; 85-20-1505; [85-25-102]; 87-1-603; 90-1-115; 90-1-205; 90-1-504; 90-6-331; and 90-9-306.
              (4)   There is a statutory appropriation to pay the principal, interest, premiums, and costs of issuing,
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   paying, and securing all bonds, notes, or other obligations, as due, that have been authorized and issued
   pursuant to the laws of Montana. Agencies that have entered into agreements authorized by the laws of
   Montana to pay the state treasurer, for deposit in accordance with 17-2-101 through 17-2-107, as determined
   by the state treasurer, an amount sufficient to pay the principal and interest as due on the bonds or notes have
   statutory appropriation authority for the payments. (In subsection (3): pursuant to sec. 10, Ch. 360, L. 1999, the
   inclusion of 19-20-604 terminates contingently when the amortization period for the teachers' retirement
   system's unfunded liability is 10 years or less; pursuant to sec. 73, Ch. 44, L. 2007, the inclusion of 19-6-410
   terminates contingently upon the death of the last recipient eligible under 19-6-709(2) for the supplemental
   benefit provided by 19-6-709; pursuant to sec. 27, Ch. 285, L. 2015, and sec. 1, Ch. 292, L. 2015, the inclusion
   of 53-9-113 terminates June 30, 2021; pursuant to sec. 6, Ch. 291, L. 2015, the inclusion of 50-1-115
   terminates June 30, 2021; pursuant to sec. 5, Ch. 383, L. 2015, the inclusion of 85-25-102 is effective on
   occurrence of contingency; pursuant to sec. 6, Ch. 423, L. 2015, the inclusion of 22-3-116 and 22-3-117
   terminates June 30, 2025; pursuant to sec. 33, Ch. 457, L. 2015, the inclusion of 20-9-905 terminates
   December 31, 2023; pursuant to sec. 12, Ch. 55, L. 2017, the inclusion of 37-54-113 terminates June 30, 2023;
   pursuant to sec. 4, Ch. 122, L. 2017, the inclusion of 10-3-1304 terminates September 30, 2025; pursuant to
   sec. 55, Ch. 151, L. 2017, the inclusion of 30-10-1004 terminates June 30, 2021; pursuant to sec. 1, Ch. 213, L.
   2017, the inclusion of 90-6-331 terminates June 30, 2027; pursuant to secs. 5, 8, Ch. 284, L. 2017, the
   inclusion of 81-1-112, 81-1-113, and 81-7-106 terminates June 30, 2023; pursuant to sec. 1, Ch. 340, L. 2017,
   the inclusion of 22-1-327 terminates July 1, 2023; pursuant to sec. 10, Ch. 374, L. 2017, the inclusion of 76-17-
   103 terminates June 30, 2027; pursuant to sec. 5, Ch, 50, L. 2019, the inclusion of 37-50-209 terminates
   September 30, 2023; pursuant to sec. 1, Ch. 408, L. 2019, the inclusion of 17-7-215 terminates June 30, 2029;
   pursuant to secs. 11, 12, and 14, Ch. 343, L. 2019, the inclusion of 15-35-108 terminates June 30, 2027;
   pursuant to sec. 7, Ch. 465, L. 2019, the inclusion of 85-2-526 terminates July 1, 2023; and pursuant to sec. 5,
   Ch. 477, L. 2019, the inclusion of 10-3-802 terminates June 30, 2023.)"
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              Section 4. Section 53-21-1202, MCA, is amended to read:
              "53-21-1202.   Crisis intervention programs -- rulemaking authority. (1) The department shall,
   subject to available appropriations for the purposes of this part, establish crisis intervention programs. The
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   programs must be designed to provide 24-hour emergency admission and care of persons suffering from a
   mental disorder and requiring commitment in a temporary, safe environment in the community as an alternative
   to placement in jail.
              (2)   The department shall provide information and technical assistance regarding needed services and
   assist counties and federally recognized tribal g