Changes to the Montana State Fund also proposed
State Director Riley Johnson reports from Helena on the legislative week ending January 25
This has been one of the slowest legislative weeks in memory. NFIB had only four bills of interest up for hearings, and none of them could be called bills of major interest to the 5,300 Montana members of NFIB.
Two-Thirds Vote Requirement on Taxes
On January 22, House Bill 148 by Rep. Forrest Manderville (R) was heard in the House Tax Committee. This measure would require a two-thirds vote of either house of the Legislature to pass a new tax or fee or to raise any tax or fee in the Legislature. This means it would take 67 votes in the House and 34 votes in the Senate. By all memory, there never has been a two-thirds majority of either party in either house. Thus, to pass or raise taxes or fees it would take a bipartisan vote in either house. NFIB supports HB 148, but the House Tax Committee has not yet voted whether or not to move this bill out of committee and on to the floor of the House of Representatives.
Montana State Fund
On January 24, a hearing was held on House Bill 214 by Rep. Vince Ricci (R) of Laurel in the House Business Committee. This bill was studied over the interim between the 2017 session and the current 2019 session and sponsored by the Economic Affairs Interim Committee. It involves the Montana State Fund (MSF), which is the state’s department for writing workers’ compensation insurance for around 60 percent of the businesses in Montana.
The private sector insurance companies think the MSF has the advantage over them because it has certain things that the private sector does not have, such as not paying the 2.5 percent premium tax on its book of business, and that it has a monopoly on writing all the State of Montana employees except the university system. This was the major portion of HB 214 that lawmakers believed would help level the playing field between the two insurance industries. The other part of the bill addressed the board of directors of the MSF. Currently, the board of seven is appointed by the governor. HB 214 would have four board members appointed by the governor and the other three elected by the MSF workers’ compensation policyholders statewide. NFIB supported this bill as it is consistent with the NFIB policy position of not having government to unfairly compete with private enterprise. This bill has not yet been voted upon by the House committee.
Plastic Straws/Carry-Out Bags
On January 25, the Senate Business Committee heard two bills: Senate Bill 120 and Senate Bill 121 both by Sen. Sue Malek (D) of Missoula.
SB 120 is a proposed act limiting retail food establishments from distributing plastic straws, or only upon request. This bill of course is aimed at the environment of plastic waste in waters of the world, including the rivers of Montana. NFIB opposed this legislation because it does not believe government should constantly be regulating small businesses for social issues. The bill also allowed cities and counties to implement an ordinance that further restricts a retail food establishment from providing a single-use plastic straw to a consumer. Any regulatory authority may impose a fine of $25 for each notice of violation after the two notices, not to exceed $300 in fines in one calendar year.
SB 121 calls for charging a fee when any consumer uses a non-recyclable, disposable carry-out bag from retail establishments. The bill would charge four cents per bag to the customer, keeping three cents itself and one cent to the Department of Revenue to be utilized for recycling education and waste reduction grants. The fiscal note says this would rise between $5 million and $6 million per year. Businesses would have to establish accounting programs to keep track of each bag and report to the state the bags used and the money raised. Once again, NFIB opposed SB 121 because it does not believe government should be regulating small businesses for social issues; and it was a cost issue to small businesses.
The Week Ahead
Looking ahead to next week, NFIB will be working five proposed bills in the Senate and the House.
- On January 28, the House Business Committee will hear House Bill 165 by Rep. Marilyn Marler (D) of Missoula that proposes to phase out Styrofoam boxes in food establishments. The hearing will be at 10 am in room 172 of the Capitol Building. NFIB opposes this bill.
- On January 27 comes House Bill 194 in the House Tax Committee at 9 am in Room 152 of the Capitol Building. This bill would allow local governments to impose a voter-approved, local-option sales tax on accommodations and campgrounds, and on the base rental charge for rental vehicles. The money raised could be used for property tax relief, affordable housing, emergency services, public health and safety, and any costs resulting from the imposition of the tax. This bill comes from Rep. Mary Ann Dunwell (D) of Helena. NFIB will oppose HB 194 because its members have consistently voted down any local option sales tax on NFIB Montana State Ballots over the years.
- Also on January 29, the House Tax Committee will hear House Bill 216 by Rep. Kimberly Dudik (D) of Missoula. The measure calls for giving employers an income tax deduction for contributions they contribute to an employee student loan program. At this point NFIB is not taking a stand on HB 216. It will wait to hear the details of the bill in the meeting before deciding its position.
- Then on January 29 comes Senate Bill 102 by Rep. Roger Webb (R) of Billings that would revise the fee persons can pay when registering their vehicles for campgrounds, fishing access sites, and state-owned properties. It raises the fee from $6 per year to $25, and the motorist has to opt in, not opt out, of paying the fee. Again, NFIB is awaiting the hearing to access its position and relevance to NFIB interests.
On January 30 comes House Bill 195 by Rep. Dave Fern (D) of Whitefish that would allow local governments to impose a local-option infrastructure tax district by a vote of the electorate. A tax would be levied on luxury goods and luxury services. Such goods and services would include sit-down restaurants, rental car vehicles, any entertainment, gift items, accommodations, and bars. The money received from this tax would go to local infrastructure programs within the local district. NFIB will oppose HB 195 again because its members are against any local-option taxes for any reason.
Get Involved
Getting involved with the 2019 Legislature is easy. The best way to have your voice heard quickly is to phone 406-444-4800. Operators are on hand in the Capitol Building to take messages to up to five legislators on each call, and delivery is within a half hour.
For more information, go to www.leg.mt.gov where you can:
- locate legislators
- get their e-mail addresses
- read bills
- view committee meetings and floor sessions on television or over computers
- review all hearings.
Previous Reports From the Capitol
January 23—Poll Result Show Support for Teaching Trades, Technology
January 18—Second Week of Session Draws Small Businesses’ Attention to 10 Bills
