Representative Thain, sponsor of House Bill 18, summarized the bill and its fiscal effect to the committee. "What this bill contemplates is taking the non levy revenue, which is already dedicated to education, that currently flows to the general fund, and also move it to the Scepter account," Thain said. He told members the major revenue sources covered by the bill are proceeds from tax interest and penalties associated with bentonite mines and other non-levy receipts such as Taylor Grazing Act fees.

Thain and fiscal staff said the change redirects those dedicated education revenues from the general fund into the School Equalization and Property Tax Reduction account (SCEPTA) established by House Bill 587, and does not change total school funding obligations. Thain said the fiscal note shows a roughly $11,000,000 reduction to the state general fund because the revenue would no longer be booked there, but that the amount would instead flow through SCEPTA for education support and property tax reduction at the county level.

Bob Story, representing the Montana Taxpayers Association, testified in support. "We support this bill," Story said, explaining that non-levy revenue is revenue collected in lieu of ad valorem (property) taxes and that redirecting it into SCEPTA aligns the accounting with preexisting obligations for school funding.

Dylan Cole of the Department of Revenue appeared as informational on the fiscal note; Julia Patton of the Legislative Fiscal Division also identified herself as informational. Committee members asked clarifying questions about whether the bill changes total collections (it does not), how percentages in the flow are preserved (the bill retains current percentage distributions to universities and counties), and why an amended fiscal note was published (a date reference in an earlier draft had to be corrected, producing a second fiscal note but no change to the dollar amounts).

After the hearing and informational testimony, the committee moved to executive action. A committee member moved a "do pass" recommendation on House Bill 18. There was no recorded no vote; the chair called the question and the motion "passes unanimous with all the folks here." The committee recorded a do-pass recommendation and sent the bill forward with unanimous support among members present.