Montana Senate advances property-tax measures, defeats bill to restore injured workers' choice of treating physician

HELENA — The Montana Senate on Wednesday advanced several measures addressing property taxes and local levies, approved a measure to change how some judicial candidates run, and indefinitely postponed legislation that would have restored injured workers’ ability to choose their treating physician.

The chamber passed Senate Bill 90 as amended to create a property-tax credit for primary residences funded from lodging and rental-car tax receipts, advanced Senate Bill 32 — a wide-ranging property tax revision — on second reading, and concurred in House Bill 20 to require voted levies be stated in dollars rather than mills. The Senate also voted 37-13 on second reading to advance SB 32 and later moved the bill to the Senate Finance and Claims Committee for additional work. In a separate contested debate, the Senate defeated a motion to pass Senate Bill 295, which sought to restore worker choice of treating physician for workers’ compensation claims, and then voted 37-13 to indefinitely postpone the bill.

Why it matters: The measures the Senate moved forward this week would change how property tax levies are calculated and could produce direct credits on homeowner bills, while the workers’ compensation vote preserves the current system that allows insurers to designate treating providers in some cases. The judiciary measure would allow judicial candidates to run with party labels and accept party contributions — a shift proponents say increases voter information and opponents say risks politicizing the bench.

What the Senate did

- Senate Bill 90 (property-tax credit): Sponsor Senator Glenn said the bill uses lodging and rental-car tax revenue to create a credit delivered on property tax bills. An amendment (sponsored by President Regier) that capped eligibility for the credit to primary residences valued at $1 million or less passed 45-5. The bill, as amended, passed the Senate on second reading with all 50 senators recorded as voting aye.

- Senate Bill 32 (property-tax reform): Sponsor Senator Trevis described SB 32 as ‘‘the culmination of 2 years of thought’’ by interim committees and said it would lower owner-occupied residential rates to 1.25% and set a 1.65% rate for many other classes of property. Trevis also cited Department of Revenue estimates showing significant but highly uneven county impacts; he said the bill pairs rate changes with an inflation adjustment to levy authority. The Senate passed SB 32 on second reading, 37-13, then later voted to re-refer the measure to the Senate Finance and Claims Committee for further work.

- House Bill 20 (voted levies in dollars): Sponsor Senator Hertz said the bill requires voted levies to be stated as dollar amounts rather than mills to prevent automatic growth as property values rise. The Senate concurred in the House measure on second reading, 35-15.

- Senate Bill 295 (workers’ compensation — treating physician): Sponsor Senator Olson described the bill as ‘‘a very simple bill’’ that would ‘‘restore the right of all of us . . . to choose our own doctor’’ after workplace injury. Opponents, including senators who served through the 2011 reforms, argued those earlier reforms lowered Montana’s workers’ compensation costs and warned reversing provider-designation authority could raise rates. A motion to recommend SB 295 failed on a 22-28 vote; a subsequent motion to indefinitely postpone the bill passed, 37-13.

- Senate Bill 42 (partisan judicial elections): Senator Emmerich, sponsor of SB 42, said allowing party labels and party support would increase transparency and voter information. Opponents, including members of the judiciary and many senators, said the change risks politicizing the courts and undermines judicial independence. The Senate advanced the bill on second reading, 29-21.

Other actions: The Senate passed Senate Bill 305 (funeral trust law revisions) unanimously (50-0); passed SB 214 (zoning/clarifying nonconforming uses), 34-15; passed SB 279 (the dietitian licensure compact), 46-4; and passed SB 289 (Department of Revenue notification for large valuation adjustments). Several bills were also read and passed on third reading later in the day, as reflected in the chamber’s record of roll calls.

Votes at a glance (selected)

- SB 90 — Property-tax credit from lodging/rental-car taxes (as amended): Passed (50-0) — amendment to cap eligibility at $1,000,000 passed (45-5). - SB 32 — Property-tax reform (second reading): Passed (37-13); later re-referred to Senate Finance and Claims for further work. - HB 20 — Voted levies stated in dollars (concurrence): Passed (35-15). - SB 295 — Restore injured worker designation of treating physician: Recommendation to pass failed (22-28); motion to indefinitely postpone approved (37-13). - SB 42 — Partisan judicial elections (second reading): Passed (29-21). - SB 305 — Funeral trust revisions: Passed (50-0). - SB 214 — Zoning; nonconforming uses: Passed (34-15). - SB 279 — Dietitian licensure compact: Passed (46-4). - SB 289 — Dept. of Revenue notification of large valuation adjustments: Passed (vote recorded; result announced on the floor).

Debate highlights

On workers’ compensation, Senator Olson said the measure ‘‘restore[s] the right of all of us . . . to choose our own doctor’’ and recounted testimony the sponsor described as cases where insurer direction delayed needed care. Opponents repeatedly cited the 2011 reforms (House Bill 334) that, they said, brought Montana’s workers’ compensation costs down; several speakers warned reversing parts of those reforms could increase premiums for employers.

On property tax measures, sponsors emphasized homeowner relief and relief for ratepayers via reduced utility taxes resulting from changes to centrally assessed property treatment. Senator Trevis acknowledged the fiscal-note modeling shows widely varying county impacts and said the measure pairs rate adjustments with new inflation indexing ‘‘so local governments could collect the dollars they collected in the prior year plus the full rate of inflation.’’

On the judicial bill, proponents argued party labels give voters useful information in low-information races. Opponents, including several senators who read constituent surveys during debate, said bipartisan surveys show strong public opposition to partisan judicial elections and warned the change would erode public confidence in impartial judging.

What’s next

Several bills advanced to committee or further floor consideration. The Senate moved to re-refer SB 32 to the Senate Finance and Claims Committee and sent SB 90 forward after amendment. Committees scheduled continued hearings and the Senate adjourned to reconvene on Thursday, Feb. 27, with additional committee work planned.

Ending note: The chamber’s record shows active committee and floor debate spanning wide policy areas — property-tax structure and credits, workers’ compensation medical authority, judicial election rules and several administrative changes — each with fiscal and practical implications the Legislature will continue to weigh in the coming weeks.