House Bill 938, introduced by Representative N. Nicol on March 31, 2025, aims to revise Montana's lobbying laws by imposing new disclosure requirements on lobbyists. The bill seeks to enhance transparency regarding the financial sources of lobbying efforts, particularly in relation to federal funding.

The primary provisions of House Bill 938 require lobbyists to disclose whether the state or local government entities, or non-governmental organizations they represent, receive federal money. Additionally, lobbyists must verify that their compensation does not come from federal funds. The bill also introduces a filing fee for these disclosures and amends existing sections of the Montana Code Annotated related to lobbying.

The motivation behind this legislation stems from concerns about the lack of oversight regarding compliance with the Anti-Lobbying Act, which prohibits the use of federal funds for lobbying activities. The bill's proponents argue that it will ensure accountability and transparency in lobbying practices, particularly as many state and local agencies rely on federal funding.

Debate surrounding House Bill 938 has highlighted differing opinions on the necessity and potential impact of the proposed changes. Supporters assert that increased transparency will protect public interests and ensure that taxpayer dollars are not misused. Conversely, opponents raise concerns about the additional burden on lobbyists and organizations, suggesting that the requirements may deter legitimate advocacy efforts.

The implications of this bill could be significant, as it may reshape the landscape of lobbying in Montana. Experts suggest that if passed, it could lead to a more informed public and greater scrutiny of lobbying activities, potentially influencing future legislative decisions. However, the bill's success will depend on the support it garners in the legislature and the response from various stakeholders in the lobbying community.

As House Bill 938 moves through the legislative process, its outcomes will be closely monitored, with potential ramifications for how lobbying is conducted in Montana and the relationship between state entities and federal funding.