Representative Mark Thane opened the hearing on House Bill 18 before the House Taxation Committee, describing the measure as statutory cleanup that moves specified non-levy revenue from the state general fund into the School Equalization and Property Tax Reduction Account (SEPTA).

Thane, reading from the bill text, said the measure does not alter the overall distribution but replaces references to deposit in the state general fund with deposit to the SEPTA account and removes outdated, date-based language. He told the committee: "House Bill 18 does not change the distribution. Renumbers sections, and it changes reference to deposit in the general fund to deposit in the Scepter account." (Representative Mark Thane, sponsor.)

Why it matters: the bill clarifies where non-levy revenue collected from specified sources — including revenues tied to bentonite mining and other non-levy taxes — will be held and used. That revenue supports the state share of K–12 financing through the equalization formula and, when there is excess, may be applied as property tax relief at the county level.

Details and context: Thane directed the committee to portions of the bill that preserve the current percentage distributions: he noted that 1.3 percent of the revenue collected is appropriated to the Montana University System, that roughly 20.75 percent previously flowed to the state general fund (the portion now redirected), and that about 77.95 percent continues to be distributed to the county where production occurred. Thane said some statutory references to oil and natural gas production taxes are being removed as cleanup because earlier statutory changes had already redirected those revenues.

Bob Story of the Montana Taxpayers Association testified as a proponent, saying the bill "really doesn't change taxes. It doesn't change the amount of money people pay. And it really doesn't change where it goes." Story described the measure as clarifying the flow of non‑levy revenue into the same school funding streams that already finance the state share of K–12 education; he also said a fiscal note would likely show roughly $13 million a year shifting out of the general fund and into SEPTA (described as a flow change rather than a net revenue increase).

Procedure and outcome: There were no opponents, no informational witnesses, and no substantive committee questions recorded beyond clarification requests. Thane asked the committee for a "due pass" to advance the bill to the House floor.

Ending: The hearing closed with the committee scheduling executive action at a later date after coordination with the sponsor.