Week two finished with as much turmoil as week one began. As there was no action taken to deal with the events disclosed on Friday, I am assuming the Senate will be in a bit of disarray this week as well.  For those that did not keep up on the Helena news:   GOP leaders probing senator’s use of state money 

Unemployment Insurance 

In other news, NFIB testified in favor of an unemployment insurance bill in the House Business Committee.  Sponsored by Rep. Kerri Seekins-Crowe, House Bill 131 would lower the number of weeks that a person can collect unemployment to 20 weeks from 24 weeks.  

There is a separate bill that will create a lower bracket for UI rates, allowing the cost of UI to drop for most Montana businesses. The committee has not yet voted on the bill, but it had a fairly positive hearing. The Contractors’ Association may bring an amendment to allow seasonally employed, employer attached workers to remain at 24 weeks. 

Clean Air Act 

The Montana Department of Environmental Quality has a process in place to assist small businesses that must comply with the Clean Air Act. Rep. Julie Darling is bringing a bill to make that process a bit more user friendly and to assign a staff person at DEQ to assist small business directly, rather than the current advisory council. The hearing for House Bill 64 was moved. The Department explained the change, there were no opponents or proponents, so NFIB just monitored the hearing. The bill passed the committee unanimously. 

Containers 

On Thursday, January 16, in the House Local Government Committee, NFIB opposed House Bill 160, which would repeal the uniform auxiliary container regulation that prohibits local governments from regulating containers. Sponsored by Rep. Ed Stafman, the bill set off a chain of events where the state law forbidding local regulation was challenged. The Montana Supreme Court ruled in favor of the state law.  NFIB testified against the repeal.  Statewide conformity is best, and small business does not need regulation on what type of containers they are allowed to use. 

A Look Ahead 

Taxes 

The House Taxation Committee will consider House Bill 155, which proposes to exempt from taxation the first $200,000 of value of both residential and commercial property. It then has a graduating tax on residential property as the value of the property increases. Commercial property remains at its current taxable rate of 1.89%.  This is an alternative to the governor’s and GOP’s proposals. NFIB will monitor this hearing. 

House Bill 213, a revision of residential and commercial tax rates, will also be examined. HB 213, sponsored by Rep. Ed Byrne, proposes to adjust for inflating values, in the manner that was done for the last 20 years, by changing the taxable percentage.  A number of different legislators, from both sides of the aisle, have similar bills and NFIB expects that it will stay in committee until the governor’s proposal has gone through the process. The measjure would reduce the taxable percentage on commercial property from 1.89% to 1.8225%. NFIB actually likes one of the other proposals better, because it takes commercial down to 1.51%. NFIB will monitor HB 213. 

The committee will also take up House Bill 231, by Rep. Llew Jones, which is the governor’s property tax proposal. It would lower the taxable rate on owner occupied homes and monthly rental property that are less than four times the median residential value from 1.35% to 1.1% (non-owner occupied homes, short-term rentals and vacant property would increase from 1.35% to 1.9%);  commercial property would have their tax rate on the value that is less than six times the average commercial value from 1.89% to 1.5%.  The value in excess would see their tax rate increase from 1.89% to 2.1%.  According to the fiscal note, the “break even” point for commercial property would be about $6 million.  Everyone valued less than that amount would see a decrease in tax and everyone with a value higher would see an increase in their taxes. NFIB was asked to participate in the governor’s task force and worked hard to have the small commercial tax break included, we will speak in favor of this proposal. 

UI/WC Programs 

The House Business and Labor Committee will look at two bills NFIB is tracking. 

— House Bill 210, sponsored by Rep. Steve Fitzpatrick, would create a lower tier of UI premiums. Currently Montana is in the lowest schedule allowed by law and the fund is actuarily sound. Just reducing what is paid out does not reduce premiums. This bill will allow premiums to go down. NFIB supports HB 210.  

— Sponsored by Rep. Anthony Nicastro and supported by NFIB, House Bill 197 will speed up the time between when an injured worker is released to go back to work and when they can actually go back to work. 

Items we are tracking 

Minimum Wage 

A proposal that would increase the state minimum wage to $12.06 an hour and continue the COLA going forward. This bill draft by Rep. Kelly Kortum is ready to be introduced. NFIB will continue to oppose this. 

Polystyrene Food Containers 

A proposal to phase out polystyrene single use food containers. This bill draft has been ready to introduce for some time. NFIB will oppose the proposal if it’s introduced. 

Tort Reform 

NFIB is tracking Senate Bill 143, which would reduce the statute of limitations for work done on improvements to real property from eight and 10 years to six years, and another proposal to limit punitive damages. The first bill has been referred to the Local Government Committee, but no hearing date has been set. The second bill is ready to be introduced. 

Paid Sick Leave 

NFIB is currently watching a proposal that would require all businesses with more than 10 employees to offer paid sick leave. The sponsor has let NFIB know that she will introduce this bill next week. NFIB has opposed this proposal as unnecessary government regulation of small business. 

Workers Compensation 

State Fund and the private work comp insurers have indicated that they would appreciate support of a proposal to clarify who can be a benefits custodian to receive payments on behalf of a child or incompetent person. This is something that was done in the past, but a court ruling has upset the apple cart and needs to be put into statute. 

Retail Theft/Bad Checks 

Senator Barry Usher is bringing Senate Bill 19 to increase the penalties for theft and bad checks to cut down on the amount of retail theft many are experiencing.  NFIB supported this effort last session, but it did not make it thru the process in 2023. The bill has been referred to the Senate Judiciary Committee, and the sponsor indicated that he will be holding a hearing the last week of January for anyone interested in commenting.   

Prior Weekly Reports 

January 12—Chaotic Start to the 2023 Legislative Session 

January 6—Montana Legislature Starts its 2025 Session