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Council hears report on House Bill 368 and Colstrip coal‑tax funding

Colstrip City Council · October 28, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Michelle Sullivan briefed the council on House Bill 368, which would direct part of a coal‑tax settlement toward Colstrip’s water system; she said the bill changed in committee, raises constitutional "special legislation" concerns, and will be reworked and codified before the next session.

Michelle Sullivan briefed the Colstrip City Council on House Bill 368, saying the measure would direct a portion of the coal‑tax settlement to Colstrip’s water system and that the bill has a complicated legislative history.

"House Bill 368 ... provided for a chunk of the coal tax settlement to go to the city of Colstrip's water," Sullivan said, noting the bill left committee in a substantially different form than when it began and later faced executive action.

Why it matters: The proposal aims to channel funds to a community that the presenter said is energy‑dependent and faces water‑supply questions as owners of local coal‑fired generating units change operations. Sullivan told the council the measure must avoid language that would single out one community in violation of the Montana Constitution’s ban on special legislation.

Details and council exchange: Sullivan said committee amendments left the bill without a clear codified citation in the Montana Code Annotated and that legislative staff, the governor’s office and Representative Perry have been involved in work to refine language. "It was a totally different bill when it came back out," she said, adding that lawmakers will spend time reworking the bill so it can be codified and withstand constitutional review.

Mayor (speaker 1) noted that funds already being set aside for the purpose are "not at risk," and that additional statutory language is needed to clarify the handling of those funds. Sullivan told the council the work will continue after the session and that a formal presentation to the city may occur after the start of the new year.

Context and next steps: Sullivan described the fix as an iterative process involving the Montana League of Cities and Towns and legislative staff; she urged care in drafting so the funding language is constitutionally sound. The council received the report and asked no formal action; Sullivan and the mayor said they will keep the council informed as the bill is revised ahead of the next legislative session.