Proposal Notice: MAR Notice No. 2026-98.1

Notice of Proposed Rulemaking

MAR Notice No. 2026-98.1

Summary

Adoption of NEW RULE 1 to Implement House Bill 91 (2025)(HB 91) Regarding Electronic Communications From the Department in Lieu of Traditional Mail

No Hearing Scheduled

If the agency receives requests for a public hearing on the proposed rulemaking from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed rulemaking; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date. Notice of the hearing will be published in the Montana Administrative Register.

The estimated number of persons directly affected by the proposed rulemaking is 196,910 based on the number of account holders in the department's online transaction portal that could opt in to receive electronic communications authorized under HB 91.  The number of hearing requests necessary for the department to conduct a public hearing shall be 25, which is less than ten percent of the number of persons affected.

Hearing Requests

If the persons directly affected by the proposed rulemaking wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request to the department using the contact information below.  Hearing requests must be received by Monday, August 24, 2026, at 5:00 p.m.

Comments

Comments may be submitted using the contact information below.  Comments must be received by Monday, August 24, 2026, at 5:00 p.m.

Accommodations

The agency will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  Requests must be made by Friday, July 31, 2026, at 5:00 p.m.

Contact

Todd Olson, Rule Reviewer - Department of Revenue, Legal Services Office

(406) 444-7905

todd.olson@mt.gov

Rulemaking Actions

Adopt

The rule proposed to be adopted is as follows:

New Rule 1 Electronic Communications from the Department

1. Except where the law requires the department to correspond with a person by traditional mail, any person who has an account with the department (account holder) may elect to receive certain electronic communications from the department in lieu of traditional mail.  To receive electronic communications, the account holder must access their account through the department’s secure online portal, verify the account, and select the correspondence option to receive electronic correspondence.
2. An account holder may discontinue electronic communications at any time by updating their communications preference in the online portal.
3. For purposes of this rule, “electronic communications” means communications transmitted and received through the department's secure online portal that allows the department and an account holder to retain, retrieve, and reproduce the communication.  Non-exhaustive examples of electronic communications include general correspondence, electronic documents, forms, letters, notices (legal and nonlegal), and statements of account.
4. It is the responsibility of an account holder to ensure accuracy of account information and the ability to receive electronic communications from the department.
5. In its discretion, the department may continue traditional mail communications even if the account holder has elected to receive electronic communications.  The department may unilaterally revert to traditional mail with an account holder if the department reasonably determines that electronic communications have failed or are otherwise undeliverable.
   1. An account holder may request to resume electronic communications with the department if the reason for any prior communication failure has been resolved.
   2. The department may attempt to resolve an account holder’s inability to receive electronic communications, the results of which will be communicated to the account holder through the most reliable means.
6. If the department sends a communication to an account holder by both traditional mail and electronic means, service occurs upon the earlier of when the communication is posted to the account holder’s account or the date of mailing.
7. An authorized representative who has been granted account access through the online portal may view electronic versions of an account holder’s communications but cannot opt out of receiving traditional mail copies of communication sent to the account holder.
8. Opting in to receive electronic communications from the department does not change, limit, or extend any responsibility, obligation, or deadline imposed upon an account holder under the law.

Authorizing statute(s): 15-1-201, 15-1-233, MCA

Implementing statute(s): 15-1-201, 15-1-233, MCA

Reasonable Necessity Statement

The 2025 Montana Legislature enacted HB 91, codified as 15‑1‑233, MCA, which authorizes the department to send correspondence, letters, notices, and other communications electronically to a person (i.e., account holder) when they elect to receive electronic communications from the department (opt-in).  Section 15‑1‑233(2), MCA, directs the department to adopt rules necessary to administer this section, but it does not specify the procedure for making an election, the kinds of electronic systems that may be used, or how electronic communications interact with existing statutory and rule‑based notice requirements.  The department finds it necessary to adopt NEW RULE 1 to establish a clear, uniform framework for account holder elections to receive electronic communications and for the administration of those communications, so that 15‑1‑233, MCA, can be applied consistently across all applicable tax programs and department accounts.

Section (1) proposes to provide that, except as otherwise provided by law, a person with an account with the department (account holder) may elect to receive electronic communications in lieu of receiving them by traditional mail.  Since 15‑1‑233(1), MCA, does not identify who is eligible or how this process integrates with the department’s existing account‑based systems, it is necessary to limit the initial election to registered account holders and to clarify that electronic communications may be a substitute for traditional mail, where permitted.  Section (1) also proposes the account holder to select that option in the department’s online portal.

Section (2) proposes for an account holder to discontinue electronic communications (opt out) at any time by the same means used to opt in.

Section (3) proposes a definition for “electronic communications” because 15‑1‑233, MCA, uses the term without defining it, leaving potential ambiguity about what technologies, formats, and types of communications are covered.  A definition tailored to existing systems and identifying examples creates a common understanding of which communications may be delivered electronically under 15‑1‑233, MCA, and ensures that electronic communications are created and maintained in a form that satisfies records‑retention, audit, and evidentiary needs.

Section (4) proposes to clarify that account holders are responsible for ensuring accuracy of information and the ability to receive electronic communications.  This is necessary as 15‑1‑233, MCA, does not address technical limitations or allocate responsibility for maintaining accurate electronic information so that the department can implement the law.  So setting minimal requirements on an account holder reduces the risk of misdirected or undeliverable communications.

Section (5) proposes to provide discretion for the department to continue to send communications by paper‑based mail if electronic communications fail or are undeliverable.  Section 15‑1‑233, MCA, authorizes but does not require the department to send communications electronically and does not address what occurs if an electronic address becomes invalid, delivery fails, or security concerns arise.  The department also proposes account holder options if prior electronic communications failures have been resolved.

Section (6) proposes a statement of when an electronic communication is considered sent or served for purposes of calculating statutory deadlines for account holder responses, assessments, appeals, and other time‑sensitive actions.  This is necessary when both electronic and paper communications are used; to promote consistent administration of time limits across accounts; to avoid disputes about which date controls; and to harmonize electronic communications under 15‑1‑233, MCA, with existing deadlines that depend on the date of mailing.

Section (7) provides that an authorized representative cannot opt out of paper‑based mail for the account holders they represent.  Instead, they will receive paper copies for each account they represent and, if granted account access, may view electronic versions of communications while still receiving paper copies.  This is necessary because 15‑1‑233, MCA, does not address the separate role of authorized representatives or whether their receipt of copies may be limited to electronic channels.  Requiring continued paper delivery to authorized representatives ensures that representatives receive complete and reliable notice of account holder communications regardless of the account holder’s electronic election and it preserves a consistent method of service for representatives across all client accounts.

Finally, proposed (8) clarifies that the election to receive electronic communications does not change an account holder’s legal duties, timelines, or statutory requirements under the law.

Small Business Impact

With regard to the small business impact analysis requirements of 2-4-111, MCA, as amended by HB 592 (2025), the department has analyzed the proposed rulemaking and the groups or class of businesses directly affected by this rulemaking if they meet the definition of a small business under 2-4-102(13), MCA.

The department contends that any direct small business impact does not arise from the proposed rulemaking but from the legislature’s enactment of HB 91 as NEW RULE 1 implements the bill with minimal procedural requirements that are not burdensome for account holders.

Documentation of the small business impact analysis is available upon request.

Bill Sponsor Notification

The primary bill sponsor of House Bill 91 was contacted by electronic mail on May 20, 2026, and again on June 30, 2026.  The department received no comments from the bill sponsor to incorporate into the proposal notice.

Interested Persons

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 e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notice regarding particular subject matter or matters.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  A written request may be mailed or delivered to the contact person in this notice or may be made by completing a request form at any rules hearing held by the Department of Revenue.

Rule Reviewer

Todd Olson

Approval

Brendan Beatty, Director of Revenue