Sine Die?
It was a week of speculation, negotiations, and voting on bills. The only committee action was conference committees working on the last bits and pieces of bills, amending them so they could get a positive vote from both houses of the Legislature.
The word in the halls of the Capitol on Wednesday and Thursday was that the Legislature would adjourn (Sine Die) on Friday. On Friday, the adjournment was figured for Saturday.
But it didn’t happen!
For the second straight day, the Montana House on Saturday failed to muster the necessary two-thirds majority vote to pass a controversial public works bill, delaying the expected adjournment of the session. This is Senate Bill 416, known as the Republicans “Build Montana” infrastructure legislation. It is the only bill left for the lawmakers to consider.
After the two votes failed to pass SB 416 on Saturday morning, the House gave up and recessed until Monday. Monday is the 86th day of the 90-day session.
The bill requires a super-majority of votes – 67 votes in the 100-member chamber – because it would put the state into debt by authorizing bonding for some of the infrastructure projects planned in the bill. The Republican majority has 59 votes, and the Democratic minority has 41 votes. There is almost unanimous agreement among the legislators that an infrastructure bill is desired, but the Republicans want to use cash, not bonding, and have a smaller ending fund balance. The Democrats want to use bonding, some cash, and maintain a $300 million ending fund balance for the next two years.
Senate Bill 416, by Sen. John Brenden (R) of Scoby, would provide at least $150 million in cash, bonding, and borrowing authority for local government infrastructure and state long-range building projects. A percentage is set aside for local governments in eastern Montana feeling the impacts from oil and gas development.
Following the session on Saturday, Gov. Steve Bullock issued a statement: “I’m hopeful that over the weekend legislators will put politics aside, recognize that this bill will create jobs, and come back Monday ready to finish their work.”
Tax Reform Passes
One bill this past week that did make it through both houses of the legislature was Senate Bill 171, by Sen. Bruce Tutvedt (R) of Kalispell. This is the bill that lowers individual taxes, and simplifies the state income tax system. It was endorsed by both the House and the Senate Friday morning after amendments were added in conference committee.
The chief simplification measure in SB 171 would make federal taxable income the base for individual income tax in Montana. It calls for two rates of tax, 4.7 percent and 6.1 percent, instead of the current seven levels and a maximum tax rate of 6.9 percent. It also reduces the capital gains credit rate. It originally dropped the corporate tax rate from 6.75 percent to 6.5 percent, but that was removed in conference committee.
The bad news is that the governor’s office is not high on SB 171, because of its cost to the general fund. Therefore, it is not known whether or not he will sign the bill. He has 10 days upon which to take action on any bill once it reaches his office.
Failed Bills
It might be of interest to the business community what legislation did not make it through the 64th session – some good, and some bad.
Proposals that failed include: income tax relief (HB 166 and SB 200), business equipment tax relief (HB 213), requiring the Montana State Fund to pay for the Old Fund liability (SB 254), property tax relief (HB 167), apprenticeship tax credit for employers (HB 277), tax credit for employers who contribute to employees post-secondary education (HB 637), increasing the minimum wage (SB 2 and HB 384), and the state taking over enforcement of the federal OSHA laws (HB 413).
This will be the last weekly Montana Legislative Update to be issued for this session. NFIB/Montana will be publishing a final legislative report in June or July that will go to all members in Montana.
Thanks for your listening and input over the past four months. It has been a fun and productive session.
Sine Die!
Past Reports
