Montana Senate Local Government committee passes four bills; debate centers on voter approval for large judgments and impact-fee index

The Montana Senate Local Government Committee on an executive-action day approved four bills after amendments and debate, voting in favor of Senate Bill 108, Senate Bill 133 (as amended), Senate Bill 143, and Senate Bill 175 (as amended).

The most contested measure, Senate Bill 108 as amended, would require voter approval before property tax levies or bond issuances may be used to satisfy judgments, settlements, or taxes paid under protest when the judgment exceeds limits contained in statute 29-1-08. Committee discussion focused on the size of the statutory liability limits and the risk that sending large judgments to a public vote could hamper local governments’ ability to resolve litigation.

Senator Hertz moved the amendment to SB 108 that restored language tying judgment levies above the statutory liability caps to voter approval. Committee staff described statute 29-1-08 as placing a cap on government tort liability of "$750,000 for each claim and $1,500,000 for each occurrence." Committee debate included an example referenced by Senator Hertz of a federal suit in Lake County and concerns that very large federal judgments or settlements could exceed existing insurance or statutory caps.

Senator Hertz argued the change would give local officials leverage in settlement talks: "I just see it as another tool in the toolbox, giving them back to the table, and let's be reasonable about this settlement…