BEFORE THE DEPARTMENT OF REVENUE

OF THE STATE OF MONTANA

TO: All Concerned Persons

1. On March 15, 2007, at 9:00 a.m., a public hearing will be held in the Director's Office (Fourth Floor) Conference Room of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment and repeal of the above-stated rules.

Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.

2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., March 5, 2007, to advise us of the nature of the accommodation that you need. Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail canderson@mt.gov.

3. The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined:

42.2.621 FINAL AGENCY DECISION AND APPEAL (1) The hearing examiner shall submit a Proposed Agency Decision to the director for consideration. The Final Agency Decision shall be issued by the Director of Revenue In accordance with the authority of the director as provided in 2-15-112, MCA, the director delegates the authority to issue Final Agency Decisions (FAD) to the Office of Dispute Resolution (ODR) for all matters except liquor license violations, revocations, and lapses.

(2) The delegation to issue a FAD applies only to matters referred to ODR and not excepted in (1).

(3) A liquor FAD issued by the director or the hearing examiner may be appealed to the appropriate district court for the state of Montana as provided in 16-4-411, MCA.

(4) A tax FAD issued by the hearing examiner shall be appealed to the State Tax Appeal Board (STAB) as provided in 15-2-302, MCA.

(2) and (3) remain the same but are renumbered (5) and (6).

AUTH: 15-1-201, 15-1-211, 15-1-217, 16-1-303, MCA

IMP: 2-4-621, 2-4-623, 2-4-631, 2-15-112, 2-15-1302, 15-1-211, 15-2-302, 16-1-302, 16-4-411, MCA

REASONABLE NECESSITY: The department has two rules that address the issuance of Final Agency Decisions and it is necessary to repeal ARM 42.2.115 and amend ARM 42.2.621 to clarify that the director has delegated authority to the hearing examiner for certain matters. Final Agency Decisions for all tax matters and some liquor matters have been delegated to the hearings examiner for the department’s Office of Dispute Resolution. The director retains the authority to issue Final Agency Decisions pertaining to liquor license violations, revocations, and lapses.

4. The department proposes to repeal the following rule:

42.2.115 FINAL AGENCY DECISIONS which can be found on page 42-69 of the Administrative Rules of Montana.

AUTH: 15-1-217, 16-1-303, MCA

IMP: 2-4-621, 2-4-623, 2-4-631, 2-15-112, 2-15-1302, 15-2-302, 16-1-302, 16-4-411, MCA

REASONABLE NECESSITY: The department is proposing to repeal ARM 42.2.115 because the language in this rule was redundant to the language contained in ARM 42.2.621 and it was confusing to the taxpayers.

5. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail canderson@mt.gov and must be received no later than March 23, 2007.

6. Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.

7. An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes." The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

8. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters. Such written request may be mailed or delivered to the person in 5 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.

9. The bill sponsor notice requirements of 2-4-302, MCA, do not apply.

/s/ Cleo Anderson                                                           /s/ Dan R. Bucks

CLEO ANDERSON                                                       DAN R. BUCKS

Rule Reviewer                                                                 Director of Revenue

Certified to Secretary of State February 12, 2007