State Director Ronda Wiggers reports from Helena on the small business agenda for the legislative and political week ending March 29

As you may have read in the press, the Senate had another week of controversy as they voted on the reports from the ethics committee. This slowed down the number of bills that got debated and passed through the Senate floor. You will notice a number of bills in this report are at the same status they were last week—waiting for a Senate floor debate.

The House will take up HB 2 – the state budget – this week. The Appropriations Committee has held hearings for over two months and worked through all the details. Now, the full House floor will put its touch on it before sending it over to the Senate. It does not take as long to get through the process in the Senate, as the committees that met the first two months to go through every detail were a combination of Senate and House members. They will not repeat all of those hearings in the Senate.

Saturday, April 5. is the deadline for all revenue (taxing) bills to pass from their originating chamber, and Tuesday, April 8, is the deadline for appropriation (spending) bills. This means that after next Tuesday, barring any exception to the rules, there will be no more bills introduced. It also means that every bill has had at least one hearing and many of the bills have failed to make the cut.

So, let’s take a look at the status of the bills that NFIB is watching.

Tax Reductions

SB 322 Increase the business equipment tax exemption
Sponsored by Sen. Josh Kassmier, this is Gov. Greg Gianforte’s proposal to increase the amount of business equipment exempt from taxation from $1 million to $3 million. The Senate Tax committee passed this on Friday (March 28), and it will be debated on the Senate floor this week. Please take a minute and reach out to your Senator and let them know that Montana small businesses support this tax reduction!

HB 844 Revise taxation of class 8 Business Equipment
Sponsored by Rep. Mike Vinton, this was a second option if the governor’s proposal is too expensive for the budget. It removes any item that costs less than $250 from the business equipment reporting and increases the exempt amount from $1 million to $1.75 million. The House Tax committee chose to TABLE this bill.

Workers’ Compensation

The following bills have successfully worked their way through the process and are headed to the governor’s desk.

HB 143 Revise definition of treating physician for Worker’s Compensation to include PA without regards to proximity of other providers
Sponsored by Rep. Jodee Etchart, physician assistants (PAs) are often less expensive and quicker to get in to see. NFIB supports

HB 197 Revising WC laws relating to when the employee is released to return to work
Sponsored by Rep. Anthony Nicastro, this eliminates some of the paperwork that slows down the return-to-work process when the employee is able to work with no restrictions. NFIB supports

SB 109 Revise WC definition of treating physician to include Physical Therapists
Sponsored by Sen. Greg Hertz, NFIB monitored the measure.

Workers’ compensation bills awaiting Senate floor vote after passing the House and the Senate Business & Labor Committee:

HB 367 Revise WC laws relating to travel and reimbursement
Sponsored by Rep. Ed Buttrey.  As many employers now pay mileage or a base amount for mileage to their employees for travel, this would clarify that by doing this, the employee is not automatically covered by workers’ compensation any time they are in that vehicle. NFIB supports

HB 428 Revising provisions related to workers compensation
Sponsored by Rep. Morgan Theil, this attempts to further define when an employer is not responsible for workers’ compensation when using sub-contractors.

HB 516 Move worker’s compensation court to judicial branch
NFIB monitored this bill, which is sponsored by Rep. Ken Walsh.

Unemployment Insurance

HB 210 Revise laws relating to UI program collection rates and uses
Sponsored by Rep. Steve Fitzpatrick, this bill will create one lower tier for unemployment insurance (UI) rates, allowing for many businesses rates to be reduced. It has successfully made it through the process and is on its way to the governor’s desk for a signature. NFIB supported this bill.

Tort Reform

HB 302 Revising punitive damage laws and procedures
Sponsored by Rep. Anthony Nicastro, HB 302 was TABLED in the Senate Judiciary Committee. This bill would have required more evidence presentation in order to claim punitive damages. NFIB supported

SB 143 Generally revise civil liability laws relating to statutes of limitations for certain actions
Sponsored by Sen. Greg Hertz, SB 143 has made it through the legislative process and is headed to the governor’s desk. This reduces the statute of limitations for the contractor’s liability for work done on real property from 8 and 10 years to 6 years. NFIB supports

Other Issues

The following bills have passed the House, been heard in a Senate committee and passed. They now await debate on the Senate floor.

HB 443 Repeal county licensing of transient retail businesses
NFIB monitored this measure sponsored by Rep. Braxton Michell.

HB 463 Revise business laws relating to conversion of certain business entities
Sponsored by Rep. Steve Fitzpatrick, this attempts to make it easier for a small business to convert from one tax filing status to another.  NFIB monitoring

HB 530 Generally revise business laws
Sponsored by Rep. Steve Fitzpatrick, this attempts to make it easier to move a business into Montana. Remember, that when referring to a “foreign” business at the Secretary of State, it is any business that is filed outside of Montana. NFIB is monitoring

And in the House:

SB 19 Revise sentencing laws related to theft
Sponsored by Sen. Barry Usher, SB 19 had a very short but positive hearing in the House Judiciary Committee. This makes shoplifting and writing bad checks a punishable crime again.  The committee has not yet acted.  NFIB supports

SB 528 Revising laws related to credit card transaction fees
Sponsored by Sen. Jeremy Trebas. While making credit card transaction fees statutorily allowed, SB 528 would also limit them to 3% and require that they be fully disclosed prior to the completion of the transaction. This bill has passed the Senate and had its first hearing in the House Business & Labor. The committee has not yet voted on the bill.  NFIB is monitoring the measure.

SB 329 Require employers to use e-verify for employment eligibility
Sponsored by Sen. Forrest Mandeville. NFIB opposed this bill as over burdensome for small business. The Senate floor amended the bill to only apply to those businesses that employee 50 or more employees. However, it still contains the highest fines in the nation for non-compliance. The House Judiciary Committee heard the bill this week and is now discussing removing the exemption for small businesses.  We are working to keep the exemption and lower the fines as it appears this may pass.

HB 226 Provide for a legal employment and government accountability law
NFIB supports this better option to SB 329. It would grant the state Department of Labor the ability to examine I-9 forms if there is a complaint or reason to believe that a business is hiring people not legally allowed to work in Montana. The state currently cannot request to examine these forms because they are only a federal requirement. This bill has passed the House and had its first hearing in the Senate Business & Labor Committee, where it sits waiting for a committee vote.

On a negative note:

HB 477 Phase out polystyrene single use food containers

Sponsored by Rep. Marilyn Marler, HB 477 passed the House and is scheduled for a Senate hearing in the Senate Natural Resources Committee on April 7.  NFIB opposes it as an unnecessary government regulation of private business.

The Week Ahead

Thursday, April 3
House Local Government Committee, 3 p.m.
SB 418 Generally revise laws related to home based businesses
Sponsored by Sen. Ellie Boldman, this would prohibit local governments from passing ordinances that prohibit  home-based businesses while still allowing for reasonable regulations. NFIB supports

Prior Legislative Reports 

— March 22: NFIB-Backed Workers’ Compensation Bill on Governor’s Desk

— March 15: Legislature at Midway Point of 2025 Session

— March 1: Montana Legislature Shifts into Overdrive

— February 14, 22: Weekly Legislative Update

— February 7: NFIB Tracking Nearly 30 Measures Important to Small Business for Support, Opposition, or Tracking

— February 2: NFIB-Supported Unemployment Insurance, Workers’ Comp Bills Advance

— January 26: Legislature Simmers Down, Settles into Normal Pace

— January 20: Governor’s Property Tax Proposal Starts Legislative Run

— January 12: Chaotic Start to the 2025 Legislative Session

— January 6: Montana Legislature Starts its 2025 Session