Bill Calling for a State Sales Tax up for Hearing, Wednesday

Date: February 03, 2019

Styrofoam Ban Bill Tabled; Plastic Straw Measures Await Fiscal Note

State Director Riley Johnson reports from Helena on the legislative week ending February 1

It was another slow week for major bills and activity on bills important to NFIB and small-business owners across the state. As of February 1, there have been only 541 bills introduced in both houses.

Also as of February 1, the 66th Montana Legislature passed the first quarter of its 90-day term, and there are only 25 days left until the transmittal deadline, which is the date that all bills need to be through one house and into the second house, or they are dead. It looks to be a busy 25 days.

Bill Raising Voting Threshold on Taxes Passes

One success for NFIB was the 11-to-8 passage of House Bill 148 out of the House Tax Committee, January 29. It is now headed for the floor of the House next week. HB 148 requires a two-thirds majority in both houses to pass a new tax or fee, or to raise a tax or fee. This means it would take 67 votes in the House and 34 votes in the Senate for passage, almost guaranteeing a bipartisan majority to pass any new tax or fee, or any increase in tax or fee. This bill is sponsored by Rep. Forrest Mandeville (R) of Columbus. NFIB was only one of the two proponents to support the bill.

Workers’ Compensation Insurance

A second bill of some interest to NFIB was passed out of the House Business Committee on an 11-8 vote. It is House Bill 214 by Rep. Vince Ricci (R) of Laurel. It involves the Montana State Fund (MSF), which is the state’s department for writing workers’ compensation insurance for some 60 percent of the businesses in Montana. NFIB is always interested in any legislation affecting the MSF because the majority of NFIB members write their workers’ compensation insurance through the state fund.

As explained in last week’s legislative update, the private sector workers’ compensation insurance companies do not like the advantages the MSF has over the private sector, such as not paying the 2.5 percent premium tax that private companies pay. This advantage is given to the MSF because it has to underwrite all businesses. The private companies can select who they write and don’t write. HB 214 would allow the state to shop its state employee business among the private companies as well as the MSF. It would also allow three of the seven-member board of directors to be elected by the policyholders. Currently, all seven members are appointed by the governor. HB 214 is now going to the floor of the House this coming week for second and third readings.

Styrofoam Containers

A bill NFIB vigorously opposed, which would have banned the use of Styrofoam in food-related stores. was tabled in the House Business Committee. This was House Bill 165 by Rep. Marilyn Marler (D) of Missoula. NFIB is awaiting fiscal notes on two other bills that would limit the use of plastic straws in food-related businesses, and another that would charge four cents for each disposable carryout bags used in stores.

Local Option Tax

Another tabled bill was House Bill 195 by Rep. Dave Fern (D) of Missoula that would have allowed local governments to enact a local option sales tax on luxury items for the use of building and repairing local infrastructures like water systems, roads, and sewer systems. A second local option tax bill, HB 194, was rescheduled from this week to February 12. NFIB opposes all local option legislation.

State Sales Tax

The big bill coming next week is HB 300. This is a statewide sales tax bill by Rep. Kerry White (R) of Bozeman. It will be heard in the House Tax Committee at 8 a.m. Wednesday, February 6, in Room 152 of the Capitol Building. This is a similar bill to one Rep. White brought to the Legislature in 2017.

Injured Workers

Another hearing on House Bill 313 will be on Friday, February 8, in House Business Committee in Room 172 of the Capitol Building. This bill would allow an injured worker to select his or her own physician. Currently, the insurance companies select the treating physician. NFIB will be opposing HB 313.

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 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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