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Panel weighs restoring tougher theft penalties; fiscal trade-offs and jail impacts debated
Summary
Sen. Barry Usher and supporters urged restoring theft penalties under $1,500 with proponents saying retailers and small businesses bear the cost; opponents and budget analysts warned the fiscal note projects rising state and county costs including required 30-day jail holds and larger correctional expenditures over time.
Senator Barry Usher opened testimony on Senate Bill 19 saying the bill would reverse post-2017 changes and “make crime crime again,” arguing earlier reforms reduced accountability for low-value thefts. “We’re just changing that again, bringing it back to the way it was before ’17,” Usher said.
Business and law-enforcement groups — including the Montana Retail Association, Montana Petroleum Marketers & Convenience Store Association, Enterprise Holdings and the Montana Sheriffs and Peace Officers Association — testified in favor, telling the committee the bill would help protect small businesses and that the fiscal-note cost is outweighed by social and retail losses. “It costs my members many multiples of whatever this fiscal note is,” Brad Griffin of the Montana Retail Association said.
Opponents and fiscal analysts raised budgetary and operational concerns. Heather O’Loughlin of the Montana Budget and Policy Center cited the fiscal note’s projected growth in costs from roughly $800,000 in FY26 to nearly $3 million by FY29, owing to required 30-day jail holds and higher maximum sentences in some provisions. The Office of Public Defender and Department of Corrections portions of the fiscal note reflect anticipated increases in caseloads and custody time.
Committee members pressed the Office of State Public Defender on practical effects. In response to whether a third or subsequent misdemeanor theft conviction could result in a 30-day county jail stay even for a small-dollar incident, OPD director Bridal Shandelson said yes: “That that would be true.” The committee also asked about where county and state fiscal responsibilities would fall and whether revenue offsets (fines) materially change net state costs; the fiscal-note authors said most expenditures would be borne by state corrections and county jails, while a small additional fine revenue figure was noted.
Sponsor Senator Usher closed by saying the bill restores accountability and that supporters — including local sheriffs and county attorneys — are willing to accept related county workload increases.
What happens next: The hearing record includes robust testimony and cross-examination of the fiscal note; follow-up on county cost-sharing and the projected multi-year fiscal impact was requested by senators.
