Senate committee hears hours of testimony on SB260 allowing petitions to move Big Sky properties out of Ennis school and hospital districts

Helena — Senators heard more than four hours of testimony on Senate Bill 260 on Wednesday, as residents of Big Sky, Ennis and Madison County gave sharply divided evidence about a proposal that would let property owners in a school or hospital service district petition to transfer territory if they cannot practically access the district’s services.

Sen. Greg Hertz, R‑District 7, the bill sponsor, told the Senate Taxation Committee that “Senate bill 260 provides a process for property owners in a service district, either in a school district or a hospital district, to petition to transfer to another service district if the service is offered by the district that they're in is geographically inaccessible to the property owners. What this bill does not allow is for a reduction of taxes. So if you're gonna move from 1 district to another, your taxes are gonna be the same.”

Supporters, who primarily represented Big Sky entities and residents, said the measure would correct legacy boundaries that send large property‑tax dollars out of their community while delivering few local services. Kevin Germain, chair of the Big Sky Resort Area District, told senators: “This bill merely provides a process for our community to transition out of districts that we no longer receive benefits from or never have.” Economist Jackie Haines said Big Sky’s year‑round population grew from about 2,400 in 2010 to about 3,800 today and that the area now accounts for a disproportionate share of taxable value and regional economic activity; Haines presented those figures to argue the current service maps no longer match where people live and receive services.

Big Sky health and safety officials focused on emergency access. Kelly Reynolds, administrator and director of nursing at Big Sky Medical Center, described the hospital’s local capacity — “a 24/7, 365, 6‑bed emergency department with a heli stop” — and said that, in a family emergency, short transport times mattered: “it was at that moment that I truly understood the meaning of having a hospital with trained medical professionals available 24/7.” Tom Butler, who oversees security for several Big Sky resort properties and chairs a local fire district, told the committee: “I can't imagine a situation where either department would transport someone from the Big Sky area to the Madison Valley Medical Center in Ennis.” Butler described private Jack Creek Road (a narrow, largely unimproved route) as an impractical ambulance corridor and said the usual ambulance transports from Big Sky go to Big Sky Medical Center or Bozeman.

Proponents also cited local governance concerns: Big Sky residents said they cannot vote in or run for Ennis school‑district offices that affect children who live in Big Sky but are assigned to a different district. Dustin Shipman, superintendent of Big Sky School District, said the bill would allow those residents to “meaningfully participate fully in the community of their local school.” Several business and nonprofit witnesses — including the Big Sky Chamber of Commerce, Big Sky Owners Association and Wellness in Action — urged passage to align taxes with services local residents actually use.

Opponents — including Ennis residents, local officials, and district leaders — warned that the bill as written would sharply shift tax burdens and could destabilize a small rural hospital and the local school district. Alan Rohrbach, CEO of Madison Valley Medical Center, told the committee the hospital is “a 10‑bed critical access hospital” and argued that losing tax revenue would imperil services and staff. Jared Moretti, superintendent of Ennis School District, said the district already pays tuition and other funds to Big Sky schools and that removing the Big Sky tax base would create dramatic mill increases for remaining Ennis taxpayers; Moretti presented numerical examples of the tax impacts for typical house values in each community.

Legal and procedural objections were also raised. Lance Melton, representing the Montana School Boards Association and allied organizations, told senators that “SB260 as introduced violates the constitution in several ways,” arguing the bill would improperly delegate legislative authority, impair bonded obligations, and change established processes for territory transfers. Attorney Justin Cole, representing Madison Valley Medical Center, warned the measure could allow nonresident corporate owners and very small petitioner groups to trigger transfers and called for preserving local government roles in any boundary change.

Committee questions explored the practical and legal limits of the measure. Witnesses and county leaders described two prior efforts by Big Sky property owners to withdraw territory from the Madison Valley Hospital District that failed at the county level and referenced ongoing litigation. Committee members and witnesses discussed possible amendments — including narrowing who may petition, clarifying bonded‑debt responsibilities, and tightening the definition of “geographically inaccessible” — and Sen. Hertz said he would work with stakeholders on revisions.

No committee vote was taken. The hearing record closed after sponsor remarks in which Hertz reiterated the bill’s stated limits and the need to find a balanced solution for both communities. He said he anticipated further drafting and stakeholder negotiation before the measure would be advanced.

The hearing collected dozens of written exhibits and maps, several witnesses asked the committee to consider alternative local tools such as resort taxes or multi‑district agreements, and many speakers urged the panel to weigh both the fairness to taxpayers and the potential fiscal impacts on rural services.

Looking ahead, the sponsor and multiple stakeholders said they will attempt to craft amendments addressing constitutional and fiscal concerns; committee members signaled interest in those changes before any formal vote.