Montana Senate roundup: pension funding package clears; video gambling increase defeated; multiple budget, MEPA and tax bills advance

The Montana Senate on April 3 considered a long agenda of bills and resolutions, approving a wide-ranging finance measure that directs $300 million to a pension reserve and advancing multiple bills on taxation, environmental review and local levies while rejecting a proposal to raise video gambling bet limits.

The most contested item was Senate Bill 287, a state finance package that reallocates investment earnings and makes a one-time $300,000,000 transfer into a newly established pension state special revenue account to shore up public pensions and authorize targeted transfers if pension returns fall below actuarial assumptions. After multiple hours of floor debate and a series of failed amendments that would have tightened legislative control over how money from the state’s debt-and-liability account may be used, the Senate approved SB 287 on second reading, 27-23.

Also on second reading the Senate defeated Senate Bill 153, which would have raised the maximum bet on video gambling machines from $2 to $4 and increased certain payout limits. The bill failed on second reading, 20-29, and then the Senate voted to indefinitely postpone it by voice and recorded vote 37-10.

Lawmakers advanced several other bills on second reading or by concurrence with the House: House Bill 285 and House Bill 270 — both revising aspects of the Montana Environmental Policy Act (MEPA) and the remedies or venue for MEPA challenges — were concurred in by the Senate after floor debate; senators also concurred in House Bill 291 limiting state and local authority to adopt air-quality standards more stringent than federal requirements (32-18). The Senate adopted the free-conference report on House Bill 201 (disclosure rules for paid signature gatherers) 32-18 after extended debate over privacy, safety and voters’ rights.

Smaller measures that were advanced or recommended do-pass by the committee include Senate Joint Resolution 20 (recognizing the 80th anniversary of the end of World War II), Senate Bill 238 (establishing a voluntary donation account to modify archery equipment for hunters with disabilities), Senate Bill 322 (raising a business equipment tax exemption), and Senate Bill 550 (reclassifying certain telecommunications property). Those bills passed on second reading as recorded by the clerk.

Votes at a glance (action, mover if recorded, second-reading or concurrence vote as recorded): - Senate Joint Resolution 20 (recognizing the 80th anniversary of the end of World War II). Sponsor: Senator Cuff. Committee recommendation: do pass. Second-reading result: 49 aye, 0 nay (passed on second reading). - Senate Bill 153 (raise video gambling maximum bet from $2 to $4; raise payout limits). Sponsor: Senator Galt. Committee recommendation: recommend do pass. Second-reading result: 20 aye, 29 nay (failed to pass on second reading). Subsequent motion: Majority Leader McGillivray moved to indefinitely postpone SB 153; recorded vote 37 aye, 10 nay (motion carries; SB 153 indefinitely postponed). - Senate Bill 238 (Supporting Bow Hunters with Disabilities program; optional donation on hunting licenses; new account). Sponsor: Senator Ellis. Committee recommendation: recommend do pass. Second-reading result: 38 aye, 12 nay (passed on second reading). - Senate Bill 322 (increase business equipment tax exemption; reimbursement to local governments/TIF). Sponsor: Senator Casimir. Committee recommendation: recommend do pass. Second-reading result: 37 aye, 13 nay (passed on second reading). - Senate Bill 550 (revise classified property to include certain telecommunications property; immediate effective/retroactive dates). Sponsor: Senator Fern. Committee recommendation: recommend do pass. Second-reading result: 45 aye, 5 nay (passed on second reading). - House Bill 156 (changes to school funding: replace district guaranteed tax base aid with countywide levy/aid structures). House sponsor(s): BD and Jones; Senate carrier: Senator Fuller. Committee motion: concur. Second-reading concurrence result: 45 aye, 4 nay (concurred in). - House Bill 162 (allow resort tax levy for certain housing projects; revise definition of infrastructure). Senate carrier: Senator Fern. Concurrence result: 33 aye, 16 nay (concurred in). - House Bill 270 (MEPA remedies/clarify remand, vacatur, and injunction procedures). Senate carrier: Senator Galt. Concurrence result: 47 aye, 2 nay (concurred in). - House Bill 285 (MEPA policy, intent, venue; clarify procedural nature; venue limited to county where activity will occur). Senate carrier: Senator Galt. Concurrence result: 31 aye, 19 nay (concurred in). - House Bill 291 (limit ability of DEQ and local programs to adopt air-quality standards more stringent than federal requirements; includes grandfather language for Missoula/Libby areas). Sponsor: Representative Oplander (House); Senate carrier: Senator Galt. Concurrence result: 32 aye, 18 nay (concurred in). - Free-conference committee report on House Bill 201 (paid signature gatherer disclosure: require disclosure of paid status and state of legal residence). Conference sponsor in Senate: Senator Manzella. Second-reading result: 32 aye, 18 nay (free conference committee amendments concurred in; report adopted). - Senate Bill 287 (state finance and pension-related transfers; $300,000,000 initial transfer to pension state special revenue account; change treasurer’s fund distributions; allow certain transfers from debt-and-liability account; employer contribution schedule adjustments). Sponsor: Senator McKamey. Committee recommendation: do pass. Second-reading result: 27 aye, 23 nay (passed on second reading).

Context and key points from floor debate: - Supporters of SB 287 framed the package as a fiscally conservative way to use investment earnings and one-time transfers to shore up public pension funding without relying on additional general-tax appropriations. The bill instructs that $300,000,000 be deposited to a pension state special revenue account; that account may retain interest earnings and make transfers to PERS and TRS if market returns fall short of assumptions. The bill also changes how the treasurer’s fund investment earnings are split (50% to general fund, 50% to the debt-and-liability account) and allows the debt-and-liability account to purchase or fund certain low-interest loans or obligations under conditions set in statute. - Opponents raised process and policy concerns. Several senators objected to late or broad amendments, worried that the bill created an executive-level “slush” or “rat hole” with insufficient legislative appropriation oversight over the debt-and-liability account, and urged more time for vetting a complex proposal involving hundreds of millions of dollars. Multiple amendment attempts to constrain uses of debt-and-liability funds or redirect amounts toward property-tax relief or other priorities were offered on the floor and failed or were tied votes. - Debate on SB 153 focused on gambling addiction and community impacts versus economic pressures on small businesses. Sponsor arguments described the change as an inflationary update to keep small bars competitive; opponents raised addiction and social-cost concerns, noted opposition from parts of the tavern industry, and urged caution. - On MEPA-related bills (HB 270 and HB 285), supporters said language clarifies MEPA’s procedural purpose and aligns state practice with the recent Held decision (court precedent referenced in floor debate). Opponents said the bills risked restricting judicial review and limiting environmental protections, cited constitutional concerns about the state’s clean-and-healthful-environment provision, and warned the drafting could prompt litigation. - Free-conference House Bill 201 prompted extended debate over disclosure, privacy and the practical effect on citizen ballot drives; supporters said disclosure of paid status and state of legal residence for paid signature gatherers improves transparency and accountability; opponents said it could chill volunteer-driven petition efforts and raise safety/privacy concerns.

Clarifying details recorded on the floor: - SB 287 sets a $300,000,000 initial transfer to the pension state special revenue account; the bill directs a 50/50 split of treasurer’s fund investment earnings between the general fund and the debt-and-liability account. The transcript records an employer contribution increase of 0.2 percentage points for PERS and TRS in certain fiscal years (detailed in the bill language). - SB 153 would have raised the maximum machine bet from $2 to $4 and raised the cap on awarding free games or credits from $800 to $1,199 (as described by the sponsor). - SB 238 estimated example costs for modifying equipment: the sponsor gave an example range from about $5,400 to over $26,000 annually for modifying a small number of bows, noting per-bow costs vary by tailoring needs.

What’s next: Bills that passed second reading will proceed to further consideration under Senate rules (additional readings and conference as required); bills that were concurred in will proceed toward final engrossment and enrollment. SB 153 was indefinitely postponed. The Senate adjourned to reconvene the following day at 1 p.m.

Ending: The clerk recorded the committee report and the Senate voted to adopt the committee report before adjourning; the session included further committee announcements and plans for the next legislative day.