Legislators Scrambling to Meet April 3 Deadline on Money Bills

Two bills put elimination of the State Fund in their crosshairs

State Director Ronda Wiggers reports from Helena on the small-business agenda for the legislative and political week ending March 24

Last week the Legislature spent about equal time on bills that had transmitted from the other chamber as they did on revenue bills. Looking at next week’s hearing schedule, it appears that they realized that April 3 is the transmittal deadline for all money bills to have passed their chamber of origination. Thus, the focus this week will be on those bills.

House Bill 2, the proposed state budget, passed in a very short House floor session. It did not set the record for shortest debate, but it came very close. The Senate is not expected to make a lot of changes, but there are a few items where there is apparent disagreement between the two chambers. If previous calendars are any indication, they are on track to be finished about the third week of April.

What Happened Last Week

HB 245, revising the tax credit for trades education and training, was heard in the Senate Education Committee. This is extending and growing a fairly popular program for Montana businesses. The $2,000 tax credit for skilled trade employee training was set to expire in 2026. This bill would extend that to 2028 and adds a large number of other trades to the list that can use the credit. The committee has not yet acted on this bill.

SB 270, prohibiting employee termination for legal social media posts, was heard in the House Business & Labor Committee. The sponsor accepted amendments from the business community that made this bill better for small business owners. The committee voted to concur on the bill, and it will now head to the full House floor for debate.

SB 22. generally revising independent contractor laws, was heard in the House Business & Labor Committee and promptly passed. It now heads to the House floor. This bill is attempting to protect a small business that properly hires an IC on an on-going basis (think snow removal) and the IC license lapses without the knowledge of the business owner. It also addresses those situations where the IC gives fraudulent documentation of their license to a business owner. NFIB has participated in the amendments and passage of the bill.

SB 95, generally revising theft laws, passed the House Judiciary Committee with an amendment to partially fund it with marijuana tax revenue. The measure repeals the changes that passed in 2017 that decriminalized petty theft, which increased shoplifting and bad check writing because there is no real punishment. NFIB strongly supports this bill. Although the amendment addresses some of the cost of the Public Defender and Corrections, a $1.5 million estimate, it may also jeopardize the success of the bill. Everyone seems to want a bit of this new revenue and those that currently have it appropriated don’t want to lose it, and there really is not as much money in this fund as some think.

SB 216, revising laws related to litigation and products, had its hearing pop up quickly on the schedule for Friday. This bill is an attempt to make Montana’s product liability laws a bit more balanced. They currently favor the litigant by not allowing a number of issues to be brought to the jury. The bill would also eliminate product liability lawsuits against a retailer that did nothing other than bring the product in the back door and sell it out the front door. These businesses are currently often dragged into lawsuits. NFIB is working to pass this legislation.

This Week

Monday, March 27, 8 a.m. House Business & Labor Committee, HB 836 revising insurance laws relating to regulatory waivers. This bill creates a regulatory sandbox in Montana. The bill would allow an insurer to test new safety and return-to-work programs within the oversight of the Insurance Commissioner’s Office to see what programs make a difference. Presently, insurers must treat similarly situated policyholders the same, not allowing them to test new ideas. To improve safety and return-to-work outcomes, we need to try new approaches with small groups, see what works, and then expand to all customers once solutions are found, improving the safety of workers and reducing costs for employers. (explanation borrowed, with permission, from the State Fund)

Wednesday, March 29, 3 p.m. House Health & Human Services Committee, SB 364 establish limits on hospital-related charges. As insurance costs continue to rise, Sen. Greg Hertz asked if NFIB would support his bill to limit hospital charges to 250% of Medicare reimbursement rates. A study he shared indicated that private pay insurance, carried by most small business owners, is often billed at the highest rates in a hospital setting. These additional costs affect everyone’s premium prices.

Other Bills of Interest

HB 896, generally revising workers’ compensation laws, has not yet been scheduled but will need to be heard prior to March 30. This bill appears to be going in two directions. First, it would add a 2.75% premium tax on all State Fund policies. However, then it appears to eliminate State Fund entirely and create an assigned (high) risk pool for those businesses that cannot find other coverage.

LC 3945, generally revising workers’ compensation laws, has not yet been introduced, but we have been told that Sen. Carl Glimm is planning to do so early next week. It will also need to be heard by March 30 in order to meet transmittal deadlines. This bill proposes to eliminate the State Fund and create an assigned/high risk pool for the thousands of Montana small and high hazard businesses. Assigned risk pool rates in other states are an average of 50% higher than State Fund. It would take all of the assets currently held in the State Fund, paid by policy holders in order to cover claims, and use them to make the state retirement system fully funded.

Both the House and Senate are likely to spend most of Friday and Saturday on the floor in order to get revenue bills across before next Monday’s third reading deadline. After Tuesday, there will be very limited options for any new bills to be introduced this session.

In case you have lost it, this link will take you to the NFIB Legislative Preference list and allow you to track bills in real time.

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