Taxes, 'dark money' and drug tests for welfare applicants

• A bill that would reduce state income taxes by 0.2 percent in each of the state’s seven income tax brackets was passed by the Montana Senate by 29-21 on a third reading on Feb. 25.

Sponsored by House Minority Leader Rep. Keith Regier, R-Kalispell, House Bill 166 was passed by the Montana House by 56-41 on a third reading on Feb. 5. It was returned to the House with amendments and is scheduled for a second reading in the House on Feb. 26.

The Montana Department of Revenue and the Montana Governor’s Office of Budget estimate that HB 166 will reduce state revenue by $26 million in fiscal year 2016, by $53 million in 2017, by $41.7 million in 2018 and by $43.6 million in 2019.

“It is the bill you heard a week ago,” Sen. Bruce Tutvedt, R-Kalispell, the chairman of the Senate Finance Committee said. “You heard and debated it. I will ask you for a do-pass vote.”

House Minority Leader Jon Sesso, D-Butte, opposed the bill. He cited a status sheet from the Montana Legislative Fiscal Division showing the impact of various spending and tax bills on the state’s general fund. Sesso questioned the wisdom of a across-the-board tax cut.

“We have gone from a very effective balanced budget to one $85 million under water,” he said.

A spokesman for the Montana Governor's Office said HB 166 is fiscally irresponsible and that Gov. Steve Bullock would not support it.

"Republican legislators have proposed legislation that would leave our state deep in debt, forcing cuts in education, public safety and health care," communications director Dave Parker said.

Bullock vetoed two bills in 2013 that would have lowered individual and corporate income taxes and another bill that would have lowered property taxes for certain pollution control equipment.

• A bill that would require public reporting for all money used for political campaigning in Montana was approved by the Senate State Administration Committee by a 4-3 vote on Feb. 24.

Senate Bill 289, sponsored by Sen. Duane Ankney, R-Colstrip, was scheduled for a second reading in the Senate on Feb. 26. The bill was aimed to so-called “dark money” that has received so much media attention in the past decade.

Sen. Dee Brown, R-Hungry Horse, the committee chairwoman, joined three Democrats on the committee to endorse SB 289 and send it to the full Senate. While she wasn’t sure if she would support the bill in the Senate, she felt the bill was important enough to be debated by the full Senate.

“Sometimes we need the discussion, for policy’s sake, on the Senate floor,” she said.

Sen. Sue Malek, D-Missoula, supported the bill and said an overwhelming majority of Montanans wanted to know who was spending money on elections in Montana.

“I don’t think there is any more important campaign-finance bill than this one,” she said. “We want to know who’s playing in Montana. Our voters are pleading with us to do something.”

• The Senate Natural Resources Committee approved a constitutional referendum bill would allow some of Montana’s coal severance tax fund to be used as a permanent source for infrastructure improvements.

Senate Bill 353, sponsored by Sen. Rick Ripley, R-Wolf Creek, was passed by 7-5 on Feb. 23. If the bill receives 100 votes from the legislature’s 150 members, it will be presented to the voters in the November 2016 general election.

According to the proposed constitutional amendment, once the coal severance tax fund reaches a principal of $1 billion, about $27 million per year would be set aside for work on roads, bridges, water and sewer systems, and other public projects. The fund reached $953 million in mid-2014.

SB 353 drew support from representatives from building trade, engineering, architect and retail associations along with the Montana Chamber of Commerce.

• A bill that would require welfare applicants in Montana to take drug tests was passed by the House by 55-45 on a third reading on Feb. 20.

House Bill 200, sponsored by Rep. Randall Pinocci, R-Sun River, was referred to the Senate Public Health, Welfare and Safety Committee on Feb. 25.

According to the bill, welfare applicants would be asked to take a drug test depending on their responses on questionnaire about drug use. Refusal to fill out the questionnaire would result in no welfare assistance. People who tested positive for drug use would not receive benefits unless they agreed to complete a 30-day treatment program. A third party could accept welfare payments on behalf of children whose parents were found to be ineligible due to the drug screening.

Bills that would reduce income taxes by a smidgen, address “dark money” in elections, divert coal severance tax revenue for infrastructure work and require welfare applicants to pass drug tests were some of the bills heard by the Montana Legislature recently.

• A bill that would reduce state income taxes by 0.2 percent in each of the state’s seven income tax brackets was passed by the Montana Senate by 29-21 on a third reading on Feb. 25.

Sponsored by House Minority Leader Rep. Keith Regier, R-Kalispell, House Bill 166 was passed by the Montana House by 56-41 on a third reading on Feb. 5. It was returned to the House with amendments and is scheduled for a second reading in the House on Feb. 26.

The Montana Department of Revenue and the Montana Governor’s Office of Budget estimate that HB 166 will reduce state revenue by $26 million in fiscal year 2016, by $53 million in 2017, by $41.7 million in 2018 and by $43.6 million in 2019.

“It is the bill you heard a week ago,” Sen. Bruce Tutvedt, R-Kalispell, the chairman of the Senate Finance Committee said. “You heard and debated it. I will ask you for a do-pass vote.”

House Minority Leader Jon Sesso, D-Butte, opposed the bill. He cited a status sheet from the Montana Legislative Fiscal Division showing the impact of various spending and tax bills on the state’s general fund. Sesso questioned the wisdom of a across-the-board tax cut.

“We have gone from a very effective balanced budget to one $85 million under water,” he said.

A spokesman for the Montana Governor's Office said HB 166 is fiscally irresponsible and that Gov. Steve Bullock would not support it.

"Republican legislators have proposed legislation that would leave our state deep in debt, forcing cuts in education, public safety and health care," communications director Dave Parker said.

Bullock vetoed two bills in 2013 that would have lowered individual and corporate income taxes and another bill that would have lowered property taxes for certain pollution control equipment.

• A bill that would require public reporting for all money used for political campaigning in Montana was approved by the Senate State Administration Committee by a 4-3 vote on Feb. 24.

Senate Bill 289, sponsored by Sen. Duane Ankney, R-Colstrip, was scheduled for a second reading in the Senate on Feb. 26. The bill was aimed to so-called “dark money” that has received so much media attention in the past decade.

Sen. Dee Brown, R-Hungry Horse, the committee chairwoman, joined three Democrats on the committee to endorse SB 289 and send it to the full Senate. While she wasn’t sure if she would support the bill in the Senate, she felt the bill was important enough to be debated by the full Senate.

“Sometimes we need the discussion, for policy’s sake, on the Senate floor,” she said.

Sen. Sue Malek, D-Missoula, supported the bill and said an overwhelming majority of Montanans wanted to know who was spending money on elections in Montana.

“I don’t think there is any more important campaign-finance bill than this one,” she said. “We want to know who’s playing in Montana. Our voters are pleading with us to do something.”

• The Senate Natural Resources Committee approved a constitutional referendum bill would allow some of Montana’s coal severance tax fund to be used as a permanent source for infrastructure improvements.

Senate Bill 353, sponsored by Sen. Rick Ripley, R-Wolf Creek, was passed by 7-5 on Feb. 23. If the bill receives 100 votes from the legislature’s 150 members, it will be presented to the voters in the November 2016 general election.

According to the proposed constitutional amendment, once the coal severance tax fund reaches a principal of $1 billion, about $27 million per year would be set aside for work on roads, bridges, water and sewer systems, and other public projects. The fund reached $953 million in mid-2014.

SB 353 drew support from representatives from building trade, engineering, architect and retail associations along with the Montana Chamber of Commerce.

• A bill that would require welfare applicants in Montana to take drug tests was passed by the House by 55-45 on a third reading on Feb. 20.

House Bill 200, sponsored by Rep. Randall Pinocci, R-Sun River, was referred to the Senate Public Health, Welfare and Safety Committee on Feb. 25.

According to the bill, welfare applicants would be asked to take a drug test depending on their responses on questionnaire about drug use. Refusal to fill out the questionnaire would result in no welfare assistance. People who tested positive for drug use would not receive benefits unless they agreed to complete a 30-day treatment program. A third party could accept welfare payments on behalf of children whose parents were found to be ineligible due to the drug screening.