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Cities warn bill to prohibit local licensing could sweep beyond intended scope
Summary
HB 5 94 would clarify that if the state issues a license, cities may not require another permit or authorization for the same activity. Supporters called it a fix to duplicative local requirements; city and county officials warned the language may preempt zoning, subdivision review and stormwater permitting and urged narrow carve‑outs.
A bill to clarify the ‘powers denied’ section of state law drew a broad turnout to the Local Government Committee. The sponsor and business proponents argued the measure prevents local governments from circumventing state licensing by re‑labeling duplicate requirements as permits or authorizations. "If the state issues a license, cities and towns can't require additional permits or authorizations and vice versa," said a sponsor.
Supporters included attorney Stephanie Baucus and business owners who described examples of municipalities requiring additional approvals that duplicate state licensing (for example, short‑term rental and electrician licensing practices in some cities). The Montana Association of Counties and small‑business witnesses urged a due pass.
Municipal officials, the League of Cities and Towns, and city public‑works leaders warned that the bill’s phrasing is broad enough to reach zoning and subdivision permitting, stormwater authorizations and other local regulatory tools that city governments use to protect public health and infrastructure. Kelly Lynch of the League said the 2023 law had targeted professional and occupational licensing; broadening the definition of permit or authorization risks unintended consequences. "The implications of this is extremely broad," she said, listing subdivision and stormwater examples.
Committee members pressed sponsors about whether targeted language or explicit carve‑outs (for subdivisions, stormwater, zoning) would reduce risk. The sponsor said they would be willing to narrow the bill if that made sense, and suggested specifying categories of activities rather than a blanket rule.
No final amendment was adopted; committee discussion highlighted the trade‑off between reducing duplicative fees and preserving local permitting authority and public‑health safeguards.
