Legislative Roundup - Week 4

Gov. Greg Gianforte Touts Tax Relief, Eliminating "Red Tape" in Second State of the State Address

HELENA – Gov. Greg Gianforte told the Montana Legislature in his second State of the State speech that he expects lawmakers to address issues like childcare, tax relief, and affordable housing.

"We laid out an ambitious agenda with our sights set on building a place where more Montanans are realizing the American dream," Gianforte said. "We know our journey is far from over. We still face challenges, but with each challenge comes an opportunity; an opportunity to grow together and grow stronger."

He touted his plan to give a large portion of the state's more than $2 billion budget surplus back to Montanans in the form of lower income taxes and property tax breaks. He also lauded Lt. Gov. Kristen Juras for leading his "Red-Tape Relief" initiative. The package contains more than 160 bills in the 2023 session that would remove what he and his supporters call burdensome or unnecessary government regulations.

In a rebuttal from the Democratic Caucus following the governor's speech, Sen. Shannon O'Brien, D-Missoula, said Gianforte's proposals do not do enough to support lower and middle-class Montanans.

"I'd like to share with you what it's really like to be a Montanan, not the multi-millionaires who come here to buy a fifth or sixth house, but those hardworking Montana families who drive our state forward," O'Brien said. "Honestly, and no offense to him, the governor is out of touch."

The governor said he recognizes the burden that finding childcare has put on Montana families in the last several years and outlined proposals like House Bill 268, which would give $1,200 to families for each child under the age of five.

He also praised Kalispell Republican Rep. Courtenay Sprunger's bill to give adoption tax credits. House Bill 225 would provide $5,000 to Montana families who adopt children, which would increase to $7,500 for adopted children in the state foster-care system.

"Our kids, and Montana's future, depend on strong families, and we must help them prosper," Gianforte said.

O'Brien said the governor's childcare plan does not address the crisis that the state is facing. She said the tax credit is too small and that good childcare can cost $1,000 a month.

Democrats said they are focused on establishing scholarships and putting caps on co-pays so that Montanans can pay for childcare.

"We Montana Democrats know that the issue of child care affects our families, the businesses who cannot find workers because parents are staying at home due to lack of care, and the childcare businesses who, every day, care for our little ones," O'Brien said.

When talking about his tax program, which would provide about $1 million in tax breaks for Montanans, the governor said residents must keep more of their income, especially with the increased inflation.

The tax package includes House Bill 212, which increases equipment tax exemptions, House Bill 222, which would give $500 million in property tax rebates over the next two years, Senate Bill 15, which provides tax credits to renters and homeowners and Senate Bill 121, which lowers the top income tax rate from 6.5 percent to 5.9 percent for married couples making more than $41,000 and for individuals making more than $20,500.

"Ultimately, it isn't the government's money. It's the money of hardworking Montanans who earn it," Gianforte said.

Democrats say the governor has no real solution to tax burdens and instead is using the "old Republican playbook" by giving relief to the wealthiest Montanans and not moving the needle for the working class.

They believe that the $2 billion surplus should lay out long-term tax relief instead of giving one-time cash payments to Montanans.

"We should be looking for consistency, so your taxes don't skyrocket, and fairness for working people. The administration is failing at both," O'Brien said.

The affordable housing crisis was also in the spotlight for both parties. The governor created a bipartisan task force last year to find ways to make renting and housing costs more affordable.

The task force came up with the HOMES Program, which would spend $200 million on expanding water and sewer infrastructure to supply more housing capacity throughout the state.

Democrats and O'Brien said that the "red-tape initiative" doesn't address the housing shortage and that Montana businesses can't grow if workers can't afford to live in the state.

The Democratic plan, O'Brien said, would use $500 million of the surplus to help landlords keep rent at a reasonable price, reduce regulations that make it hard to build and help working Montanans avoid taxation that would force them out of their homes.

"The rising cost of rent, being able to afford a mortgage or pay your property taxes, it is all out of your control, and it's simply not fair," O'Brien said.

The governor also addressed the fentanyl epidemic and used the issue to call out the Biden administration on the United States' southern border security.

"I have a message for President Biden and members of Congress: Secure our southern border now. Stop neglecting it. Secure it. The safety of our communities, our families, and our people depends on it," Gianforte said.

He said that drug addictions and violent crime threaten the Montana way of life and that the fentanyl crisis is a consequence of an unsecured southern border.

Bill Would Combine Montana's Two Largest Conservation Commissions

The Senate Natural Resource committee heard testimony on Monday, Jan. 23, on a bill that would form one conservation commission in northwest Montana to protect the area's water resources.

Sen. Mike Cuffe, R-Eureka, is sponsoring Senate Bill 83 on behalf of the Department of Natural Resources and Conservation. The bill combines the Flathead Basin Commission and the Upper Columbia Conservation Commission, or UC3, into the Western Montana Conservation Commission.

The new commission would consist of 16 members who vote on ideas to handle aquatic resources. The governor would appoint nine of the voting members on the commission.

"In the beginning, Flathead Basin Commission had wanted to be a bigger part of UC3, and for various reasons, at that time, they were kept separate," Cuffe said.

The Upper Columbia Conservation Commission deals with aquatic invasive species because zebra mussels were increasingly beginning to make their way from British Columbia, Canada, down into northwestern Montana waters. The influx of invasive species created an ecological concern for the area.

Cuffe said that UC3 eliminated the mussels in the area and has served its purpose. He added that it's the perfect time to combine the commissions because they share similar issues.

"It seemed very common sense that this would be the proper time, the proper action to make a consolidation of the two commissions," Cuffe said.

Cuffe also said there is a "guarantee" that the combination wouldn't have a negative impact on invasive species protection in the area.

The Governor's Office supports SB 83 and helped create the plan to combine the commissions as part of their "red-tape relief initiative."

Lt. Gov. Kristen Juras said that they are two of the largest commissions in the state, and joining the staff together would make them more productive.

"That would allow the staff, which would remain the same, to spend more time on the mission, and the grant writing, and the boots on the ground implementation work of the excellent ideas and concepts that these commissions bring to the table," Juras said.

There were no opponents at the bill's hearing.

Lawmakers Discuss Bill That Would Remove Criminal Penalties on Selling Alcohol to Minors in Sting Operations

Supporters of a bill that aims to remove criminal implications for employees serving minors alcohol in a contrived event, or a sting, say it should be a learning lesson instead of a punishment.

Rep. Scot Kerns, R-Great Falls, is sponsoring House Bill 272, which would align protections of alcohol license holders and their employees when a "sting" occurs in which minors attempt to purchase alcohol.

"Stings are a useful tool for most of law enforcement, in this case, a contrived event, which has no actual crime that has occurred, should be an educational opportunity for the employees," Kerns said.

Contrived events or stings are planned operations from law enforcement agencies that use deception to catch a committed crime.

The Legislature passed Senate Bill 192 in 2021, which protected license holders and business owners from criminal charges when a contrived event resulted in a crime. The bill did not include protecting employees from criminal charges.

Under current law, employees can be charged with a misdemeanor, "unlawful conduct with a minor," and fined up to $1,500.

HB 272 would extend the same protections employers get to employees by not allowing criminal charges to be filed when alcohol is sold to a minor in a pre-planned event by law enforcement.

"I've watched people get caught in these sting operations and absolutely change their lives. We got people that are trying to work part-time in the tavern business, and then all of a sudden they become criminals," John Hayes, an insurance agent for taverns and bars in Great Falls, said.

Supporters of the bill said that employees that serve alcohol could often have their lives changed in a moment because deceptive techniques are used against them.

Kerns said the bill would not make it easier for people under 21 to purchase alcohol and infractions would still be punishable.

"Underage drinking and overservice of patrons are two big no-nos and should be punished. This bill only makes a provision for employees of licensees or concessionaires not to be saddled with a criminal record," Kerns said.

John Iverson, representing the Montana Tavern Association, said that most minors get alcohol from others giving or buying it for them and not from establishments themselves.

Iverson also said that organizations across the state get federal grant money to run contrived events and often pick underage individuals that look older than they are in an attempt to trick the employees.

"If you have minors that look like minors and they're trying to buy alcohol and people are selling it to them, they should get in trouble for that," Iverson said. "They hire these minors that oftentimes look quite old, they bring them in all around town, and they start trying to hit each place and see if they can trick a bartender into serving them."

Supporters of the bill made it clear that contrived events are valuable in certain situations, but instead of using them to criminalize employees, make them educational.

There were no opponents at the bill's hearing.

Supporters Say Bill Would Bring More Local, Fresh Produce to Montana Food Banks

The House Agriculture Community listened to overwhelming support from 25 individuals on a bill that would encourage the availability of fresh produce for Montana families through the Montana Food Bank.

Rep. Marty Malone, R-Pray, introduced House Bill 276, which would create a grant program for Montana food banks and pantries so they can adequately pay local farmers for fresh produce.

"Farmers and ranchers are subject to market strains around the world, and sometimes we don't get paid for what we do," Malone said.

The bill takes $1 million from the agriculture section of the state budget to create grants that would be allocated by the Department of Agriculture to food hubs across Montana to build collaboration with smaller food pantries across the state.

The grants require that local organizations and food banks show that they're including rural communities and creating markets for producers.

Supporters of the bill said that it would give more Montanans access to healthy food options. They said food waste in Montana is a problem, and that by the time food banks receive food from producers or grocery stores, the shelf life is way too limited.

"The food available through Montana's food pantries must be nutritious and high quality in order to support the health and well-being of our Montana neighbors, and we know that the highest quality food comes from the producers right here in our state," Lorianne Burhop, chief policy officer at the Montana Food Bank Network, said

Supporters said farmers want to help their communities, but they have margins to meet in a tough industry and the bill would mean that food banks can pay local farmers a fair price. They also said it would reduce the amount of produce food pantries buy from large scale grocery stores, putting more support into local producers.

There were no opponents at the bill's hearing.

Caven Wade is a student reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. He can be reached at [email protected].