Bill Summary – FastDemocracy

****
68th Legislature 2023                                                                                               HB 76.1
                                                 HOUSE BILL NO. 76
                                         INTRODUCED BY J. SCHILLINGER
                          BY REQUEST OF THE DEPARTMENT OF TRANSPORTATION
  4
  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING TRANSPORTATION LAWS; PROVIDING
  FOR A LOCAL GOVERNMENT ROAD CONSTRUCTION AND MAINTENANCE RESTRICTED ACCOUNT;
  REPEALING THE BRIDGE AND ROAD SAFETY AND ACCOUNTABILITY RESTRICTED ACCOUNT, AND
  REPEALING AND AMENDING ASSOCIATED STATUTES; REDIRECTING FUNDING INTO THE LOCAL
  GOVERNMENT ROAD CONSTRUCTION MAINTENANCE ACCOUNT; REPEALING THE COUNTY
  COMMISSIONER'S DISCRETION TO AUTHORIZE CERTAIN USES OF COUNTY HIGHWAY OR ROAD
  MACHINERY OR EQUIPMENT; PROVIDING A STATUTORY APPROPRIATION; ELIMINATING STATUTORY
  APPROPRIATIONS; AMENDING SECTIONS 15-70-101, 15-70-403, 15-70-419, 17-5-903, 17-7-502, AND 60-
  3-201, MCA; REPEALING SECTIONS 7-14-102, 15-70-127, 15-70-130, AND 60-2-225, MCA; AND
  PROVIDING AN EFFECTIVE DATE.”
 15
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
 17
          NEW SECTION. Section 1.         Local government road construction and maintenance restricted
  account -- statutory appropriation. (1) There is a local government road construction and maintenance
  restricted account in the state special revenue fund provided for in 17-2-102 to provide funding to cities, towns,
  counties, and consolidated city-county governments for the construction, reconstruction, maintenance, and
  repair of rural roads, city or town streets and alleys, and bridges. The funds in this account are statutorily
  appropriated, as provided in 17-7-502, to the department of transportation for distribution as provided in 15-70-
  101.
          (2)      All interest and income earned on the account must, in accordance with the provisions of 17-2-
  124, be deposited to the credit of the account, and any unexpended balance in the account must remain in the
  account. Revenue from the gasoline and special fuel taxes must be deposited in the account pursuant to 15-70-
  403(2)(c) and (3)(c).
                                                               -1-                       Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                              HB 76.1
          (3)      The money in the account is restricted as provided in Article VIII, section 6, of the Montana
  constitution.
  3
          Section 2. Section 15-70-101, MCA, is amended to read:
          "15-70-101. Disposition of funds. (1) Those funds allocated to cities, towns, counties, and
  consolidated city-county governments in this section must, in accordance with the provisions of 17-2-124, be
  paid by the department from the highway restricted account provided for in 15-70-126 local government road
  construction and maintenance restricted account provided for in [section 1] to the cities, towns, counties, and
  consolidated city-county governments.
          (2)      The amount of $16,816,000 of the taxes collected under this chapter and deposited in the
  highway restricted account in 15-70-126 is statutorily appropriated, as provided in 17-7-502, to the department
  of transportation and must be distributed 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), The allocated funds must be distributed as follows:
          (a)      The amount of $150,000 must be designated for the purposes and functions of the Montana
  local technical assistance transportation program in Bozeman.
          (b)      The amount of $6,306,000 Three-eighths of the remaining amount must be divided among the
  various counties in the 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 $10,360,000 The remaining funds 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
                                                               -2-                       Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                               HB 76.1
  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 unless revised boundaries based on
  the location of the urban area have been approved by the department of transportation 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 7-1-4111, 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. The governing body of a town
                                                               -3-                       Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                               HB 76.1
  or third-class city may place all or a part of the 25% in a restricted asset account within the gas tax
  apportionment fund that is carried forward until there is a need for the expenditure.
          (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
  the amounts provided in 7-5-2301 and 7-5-4302.
          (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 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
          (9)      Unused balances remaining in the former 15-70-127 bridge and road safety and accountability
  restricted account as of June 30, 2023, must be distributed in accordance with subsections (2)(b) and (2)(c) on
  September 1, 2023."
 22
          Section 3. Section 15-70-403, MCA, is amended to read:
          "15-70-403. Gasoline, special fuel, and aviation fuel tax -- incidence -- rates. (1) The incidence of
  the fuel tax is on the distributor for the privilege of engaging in and carrying on business in this state. Each
  distributor shall pay to the department of transportation a tax in an amount equal to:
          (a)      33 cents for each gallon of gasoline distributed by the distributor within the state and upon on
  which the gasoline tax has not been paid by any other distributor: ;
                                                               -4-                        Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                               HB 76.1
          (i)   31.5 cents in fiscal years 2018 and 2019;
          (ii) 32 cents in fiscal years 2020 and 2021;
          (iii) 32.5 cents in fiscal year 2022; and
          (iv) 33 cents in fiscal year 2023 and thereafter;
          (b)      29.75 cents for each gallon of special fuel distributed by the distributor within the state and on
  which the special fuel tax has not been paid by any other distributor:; and
          (i)   29.25 cents in fiscal years 2018 and 2019;
          (ii) 29.45 cents in fiscal years 2020 and 2021;
          (iii) 29.55 cents in fiscal year 2022; and
          (iv) 29.75 cents in fiscal year 2023 and thereafter; and
          (c)      5 cents for each gallon of aviation fuel, other than fuel sold to the federal defense fuel supply
  center, which is allocated to the department as provided by 67-1-301.
          (2)      The gasoline tax provided for in subsection (1)(a) must be deposited as follows:
          (a)      the revenue from 23 22 cents of the tax less the allocations provided for in 60-3-201(1)(a)
  through (1)(d) to the highway restricted account provided for in 15-70-126;
          (b)      the revenue from 4 cents of the tax less the allocations provided for in 60-3-201(1)(a) through
  (1)(d) to the highway patrol administration state special revenue account established in 44-1-110; and
          (c)      the remaining revenue from the tax less the allocations provided for in 60-3-201(1)(a) through
  (1)(d) to the bridge and road safety and accountability local government road construction and maintenance
  restricted account provided for in 15-70-127 [section 1].
          (3)      The special fuel tax provided for in subsection (1)(b) must be deposited as follows:
          (a)      the revenue from 23 3/4 24.6 cents of the tax to the highway restricted account provided for in
  15-70-126;
          (b)      the revenue from 4 cents of the tax to the highway patrol administration state special revenue
  account established in 44-1-110; and
          (c)      the remaining revenue from the tax to the bridge and road safety and accountability local
  government road construction and maintenance restricted account provided for in 15-70-127 [section 1].
          (4)      Gasoline or special fuel may not be included in the measure of the distributor's tax if it is sold
                                                                 -5-                     Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                                HB 76.1
  for export unless the distributor is not licensed and is not paying the tax to the state where the fuel is destined.
            (5)     Special fuel may not be included in the measure of the distributor's tax if it is dyed by injector at
  a refinery or terminal for off-highway use.
            (6)     When no Montana fuel tax has been paid by a distributor or any other person, the department
  shall collect or cause to be collected from the owners or operators of motor vehicles operating on the public
  roads and highways of this state a tax equal to the tax rate provided for in subsection (1)(a) for gasoline and
  subsection (1)(b) for dyed or undyed special fuel. The tax must be paid for each gallon of gasoline or special
  fuel as defined in this part, or other volatile liquid, except liquid petroleum gas, of less than 46 degrees A.P.I.
  (American petroleum institute) gravity test sold or used to produce motor power to operate motor vehicles on
  the public roads and highways of this state.
            (7)     The tax may not be imposed on dyed special fuel delivered into the fuel supply tank of a
  vehicle that is equipped with a feed delivery box if:
            (a)     the feed delivery box is permanently affixed to the vehicle;
            (b)     the vehicle is used exclusively for the feeding of livestock; and
            (c)     the gross vehicle weight of the vehicle, exclusive of any towed units, is greater than 12,000
  pounds.
            (8)     All special fuel or other volatile liquid, except liquid petroleum gas, of less than 46 degrees
  A.P.I. (American petroleum institute) gravity test sold or used in motor vehicles, motorized equipment, and the
  internal combustion of any engines, including stationary engines, and used in connection with any work
  performed under any contracts pertaining to the construction, reconstruction, or improvement of a highway or
  street and its appurtenances awarded by any public agencies, including federal, state, county, municipal, or
  other political subdivisions, must be fuel on which Montana fuel tax has been paid.
            (9)     Material used for construction, reconstruction, or improvement in connection with work
  performed under a contract as provided in subsection (8) must be produced using fuel on which Montana fuel
  tax has been paid."
 26
            Section 4. Section 15-70-419, MCA, is amended to read:
            "15-70-419. Improperly imported fuel -- seizure. (1) As used in this section, the following definitions
                                                                -6-                          Authorized Print Version – HB 76
****
68th Legislature 2023                                                                                                      HB 76.1
  apply:
           (a)      "Conveyance" means a tank car, vehicle, or vessel that is used to transport fuel.
           (b)      "Peace officer" means an employee of the department of transportation designated or
  appointed as a peace officer under 61-10-154 or 61-12-201.
           (2)      Pursuant to 61-12-206(5), a peace officer may:
           (a)      stop and search a conveyance in the state if the peace officer has reasonable cause to believe
  that the conveyance is being used to carry improperly imported fuel and is intentionally avoiding fuel tax
  responsibilities; and
           (b)      seize without a warrant imported fuel for which the distributor or transporter has not obtained a
  valid Montana gasoline or special fuel distributor license as required in 15-70-402.
           (3)      The peace officer shall obtain authorization from the director of the department or the director's
  designee before seizing fuel.
           (4)      Upon seizing the fuel that the peace officer believes to be improperly imported, the peace
  officer may:
           (a)      direct the rerouting or transfer of the fuel to a location designated by the department. The
  department shall reimburse the carrier for