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Lawmakers hear competing views on bill to raise theft thresholds; fiscal note projects rising prison and jail costs

2263415 · February 11, 2025
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Summary

Senate Bill 19—s proposal to raise the theft threshold and increase penalties drew support from retailers and law-enforcement organizations and sharp questions from corrections and defense witnesses about growing fiscal and operational costs.

Senator Barry Usher opened the hearing on Senate Bill 19 by arguing that raising the theft threshold to $1,500 and enhancing penalties would deter repeat offenders and reduce long-term costs to retailers and communities. "We're just changing that again, bringing it back to the way it was before '17," Usher said, arguing retailers and consumers bear costs when theft goes unchecked.

Proponents included retail and convenience-store trade groups and law-enforcement associations. "This seems like a nominal investment for our state to endeavor," said a Montana Retail Association representative, who urged the committee to "do pass." The Montana Petroleum Marketers and Convenience Store Association, Enterprise Holdings and the Montana Police Protective Association also testified in favor, saying businesses and small communities are harmed when misdemeanor theft is treated as low-consequence conduct.

Opponents questioned the fiscal and operational consequences. Department of Corrections testimony noted the bill's fiscal cost would grow over time: the fiscal note showed roughly $817,000 in state costs in the first affected year rising to $2.85 million by FY29. The public defender's office said enhanced misdemeanor jail time would increase workload and could affect indigent defense obligations; the defender's witness noted the fiscal estimate specifically anticipated increased misdemeanor jail time and that a wide range of misdemeanor thefts could be affected.

Committee members pressed on concrete impacts. One member summarized the consequences: if theft statutes are "stackable," a repeat offender could face 30 days in county jail for a low-value third offense; an OPD witness confirmed that could happen. Committee exchanges also covered revenue from increased citations (the fiscal note estimated a state share of $15,000 in new fine revenue) and whether counties would bear additional costs for jail beds and enforcement.

Why it matters: proponents said the move would hold repeat offenders accountable and protect small businesses; opponents and fiscal witnesses warned the state and counties could face steadily rising incarceration costs and additional defense and judicial workloads.

The committee did not take final action on SB 19 during this session.