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Committee advances measure allowing counties to initiate urban transportation districts and easing bus service limits

House Local Government Committee · March 4, 2025
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Summary

Lawmakers voted to pass HB 764, which lets counties initiate urban transportation districts (UTDs) and lifts an antiquated 8-mile limit on municipal bus companies so city-run transit can operate beyond city borders if financed. Proponents said the changes reduce the heavy signature burden to create a UTD.

Representative Brian Close presented House Bill 764, saying Montana’s transit statutes are outdated and that the bill would let counties initiate an urban transportation district (UTD) in lieu of the current petition-only path and would allow municipal bus companies to operate beyond an 8-mile limit if they can finance the extension. "As long as they have a way to finance it, they should be able to go more than 8 miles beyond town," Close said in his opening remarks.

Matt Leo, representing the Human Resource Development Council and the Missoula Urban Transportation District, told the committee the petition route to form a UTD is onerous: petition drives for Bozeman’s recent UTD required more than 28,000 signatures because statute requires 20% of registered voters in the proposed district. Leo said that burden, and differences between "registered electors" and "qualified electors," raises the bar and can be impractical for mid-sized communities. "We support this bill because that's a lot of time and money spent in order to qualify for the ballot," Leo told the committee.

The Montana Environmental Information Center also testified in favor, saying the bill provides a practical way for local governments to act to expand services rather than leaving the responsibility to members of the public.

In questions, committee members pressed the sponsor and witnesses on technical distinctions in the bill’s language about voter thresholds and where the petition language remains; proponents said the bill preserves the public vote and petition process while removing the need to gather signatures when a county initiates the measure. Representative Close said he will work with the Senate to clarify statutory language if the bill moves forward.

In executive action, the committee moved and voted to pass HB 764 by voice vote; the chair announced the bill passes committee. The bill will proceed to the next step in the legislative process.

Next steps: HB 764 was recorded as passed by the committee and will be transmitted on to the next legislative stage.