NFIB Members Help Stop Bills Aimed at Eliminating the State Fund

Measure protecting small-business owners who properly hire independent contractors on its way to governor’s desk

State Director Ronda Wiggers reports from Helena on the small-business agenda for the legislative and political week ending March 31

The Legislature took a look at its calendar, realized it was nearing Revenue Transmittal, and both chambers focused primarily on their own bills this week. The Senate does appear to be a bit ahead and took time to deal with a few House bills as well.

Any bill that spends or brings in more than $50,000 must also pass through Appropriations. That included a lot of the revenue bills that needed to meet transmittal deadlines this week. Because the Appropriations Committee needed more time to hear all of those bills, it decided to not hold floor session on Saturday. This pushed the legislative calendar forward a day, so transmittal will not be until Tuesday, April 4. Appropriations met after floor session on Friday – about 4:00 p.m. – until nearly 9:30 p.m., and then for another hour on Saturday, in order to get caught up on the list of bills needing to transmit to the Senate by Tuesday.

We have finally reached the end of bill introductions! We came just short of setting a record that has been held since 1973 when the MCA needed massive changes to comply with the new constitution — 970 House bills and 566 Senate bills were introduced by close of business on Tuesday, March 28. The last day to introduce bills this session.

Of course, we can still have committee bills introduced and some that appear finished may rise from the dead with all new language, but for the most part, they are out of good ideas for this session.

What Happened Last Week

NFIB members made their voices heard and the two bills to eliminate the State Fund – HB 896 and SB 556 (LC 3945) — were both heard and TABLED by their respective Business & Labor committees.

On other legislation

HB 836 to revise insurance laws relating to regulatory waivers has passed the House and will now head to the Senate for its approval. 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)

HB 245 would revise the tax credit for trades education and training. The Senate Education Committee made slight amendments to this bill and passed it. It will now go to the full Senate floor later this week and then the House will need to approve the Senate amendments. The amendments were to correct the terminology of some of the professions allowed to use this training credit. 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 and this bill would extend that to 2028 and add a large number of other trades to the list that can use the credit.

SB 22, which would generally revise independent contractor laws, has passed the House and will now begin its journey to the governor’s desk. 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 passage of the bill.

The Week Ahead

Tuesday, April 4, 8 a.m., Senate Business & Labor Committee – HB 652 to revise unemployment insurance law relating to benefit duration. This bill would decrease the maximum payable weeks of unemployment benefits from 28 weeks to 20 weeks. It is estimated that it would save about $8 million a year.

Thursday, April 6, 3 p.m., House Health & Human Services – SB 364 to 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. This hearing was originally scheduled for last week but was postponed so that the committee could focus on revenue bills.

Other Bills of Interest

SB 270 would prohibit employee termination for legal social media posts. The sponsor accepted amendments from the business community in the Senate, which 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 95 would generally revise theft laws. This repeals the changes that passed in 2017 which decriminalized petty theft. This increased shoplifting and bad check writing, as there is no real punishment. NFIB strongly supports this bill. I incorrectly reported, last week, that this bill was amended in the House Judiciary Committee. It was not. It passed out in the same form that it arrived in from the Senate and is now awaiting House floor debate.

SB 216, which would revise laws related to litigation and products, was heard in the House Judiciary Committee and is awaiting their executive action. 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 who did nothing other than bring the product in the back door and sell it out the front door. These businesses are often dragged into lawsuits. NFIB is working to pass this legislation.

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.

Previous Weekly Reports and Related Information