Will Senate Follow House Passage of Two-Thirds Vote Requirement on Taxes?

Date: February 09, 2019

Bills raising the minimum wage, banning plastic straws effectively dead for the session

State Director Riley Johnson reports from Helena on the legislative week ending February 8

There are only 13 days left to introduce general bills and resolutions. The deadline is February 25. Lawmakers have until March 26 to introduce revenue bills, budget bills, and bills calling for referenda.

There are still a number of bills of interest to NFIB still to come out, such as one more local-option sales tax bill, another minimum wage bill, and several bills aimed at hiring and employment issues.

Sales Tax

The biggest issue this week was House Bill 300. This is the sales tax proposal by Rep. Kerry White (R) of Bozeman. It would impose a 2.5 percent general sales tax and would eliminate the personal and business property taxes. Because of its impact on small businesses, NFIB polled its members by email last weekend.

HB was heard on February 6 in the House Tax Committee. NFIB did not weigh in on the bill because our ballot came back almost tied when you combined both the support votes and the undecided votes.

Opposed 52.67 percent
Support 35.88 percent
Undecided 11.45 percent

SB 300 is sitting in committee. No executive action has been taken.

Minimum Wage

Another bill of interest to NFIB was HB 345 by Rep. Mary Ann Dunwell (D) of Helena. This was an attempt to set the minimum wage at $12 an hour and then increase it to $15 an hour by 2020. It would have eliminated the $4 minimum wage for businesses making $110,000 or less annually. It also continued the annual increase in the minimum wage by the annual rate of inflation. This bill was tabled February 6 in the House Business Committee.

Environment

Also tabled were Senate Bill 120 and Senate Bill 121. These bills were part of a trio of measures aimed at environmental reforms. The first of the bills, HB 165, was tabled last week by the House Business Committee. It would have phased out the use of Styrofoam in food establishments. Then came SB 120 and SB 121, which would have limited the use of plastic straws and implemented a fee for disposable bags in any business. These two bills were tabled in the Senate Business Committee February 6.

Workers’ Compensation

A bill NFIB supported last week in a committee hearing was HB 214. This measure by Rep. Vince Ricci (R) of Laurel made changes to the Montana State Fund (MSF), which is the state’s department of workers’ compensation. It provided for three members of the MSF board of directors to be elected by the policyholders. It also allows the state of Montana to not have the MSF be the only writer of workers’ compensation insurance. NFIB supported HB 214. It was heard on the floor of the House February 8 and passed second reading 55-45. It now goes to the House Appropriations Committee for further action by the revenue lawmakers. If it gets a clearance in appropriations, it comes back to the House floor for a third reading in two or three weeks.

On another workers’ compensation proposal, NFIB made its opposition known on House Bill 313. This measure by Rep. Andrea Olsen (D) of Missoula would change worker’s compensation law to allow the injured worker to select his or her own treating physician for a workplace injury. NFIB opposes this bill because of the cost to the system and the possibility of raised rates to businesses. The law was changed in 2011 to allow the insurer to pick the treating physician to prevent fraud and misuse of the law by selected health care providers and injured workers.

Criminal History

Another bill of interest to NFIB is SB 168 by Sen. Brian Hoven (R) of Great Falls. This measure would put restrictions on an early employment application not having any questions about a criminal history or incarceration of the applicant, unless the job involved criminal activity such as police officers. Such questioning would be allowed later in the hiring process. It was passed out of the Senate Business Committee 6-4 on February 8.

Coming Up

House Bill 208 will be heard February 11 by the House Business Committee in Room 172 in the Capitol Building. This bill would establish a medical family leave program within state government that would be run by state government and paid for with contributions from both employers and employees. NFIB will oppose HB 208.

On February 12 House Bill 194 by Rep. Mary Ann Dunwell (D) of Helena will be considered, which would allow cities and counties to invoke a local-option sales and use tax on lodging and leasing of rental cars. The money would be used to support affordable housing, public safety, a reduction in property taxes, and could be used to repay bonding for such projects. NFIB opposes all local-option sales taxes and will oppose HB 194 on Tuesday.

A major hearing will be held on one of NFIB’s “Key Votes”in the Senate Tax Committee at 8 am Thursday, February 14, in Room 405 of the Capitol Building. This is the bill that has passed the House and now rests in the Senate. It would require a two-thirds majority vote of both houses to pass any new tax or fee, or raise any existing tax or fee. That would be 67 votes in the House and 34 votes in the Senate. NFIB is a strong opponent of new or raised taxes. This measure would almost certainly require a bipartisan vote of both parties to raise any taxes. NFIB urges readers of the Montana Legislative Update to contact their senators to support HB 148.

Get Involved

Getting involved in 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 for up to five legislators on each call, and delivery is within a half hour. For those wanting more information on locating legislators, getting a personal e-mail address, looking to view committee meetings and floor sessions on television or over computers, and just to review all hearings and reading of the actual bills, go to www.leg.mt.gov and access everything electronically.

Previous Reports From the Capitol

February 1—Bill Calling for a State Sales Tax up for a Hearing, Wednesday

January 25—Plastic Straws, Styrofoam Containers, Carry-Out Bags in Legislative Crosshairs

January 23—Poll Result Show Support for Teaching Trades, Technology

January 18—Second Week of Session Draws Small Businesses’ Attention to 10 Bills

January 13—Montana State Legislature Opens its 2019 Session

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