2023 Legislative Wrap Up

Lawmakers Tout Childcare, Tax Cuts and Housing Reform as Major Victories

HELENA – Lawmakers have left the Capitol in Helena after a chaotic end to the 68th Montana Legislature. Republicans, who held a supermajority this session, celebrated legislation passed on education, tax relief and protecting children and parental rights, while Democrats said they were disappointed with a lack of long-term tax relief and immediate solutions for the state's housing crisis.

The Legislative session came to a close on May 2. Lawmakers passed 748 bills this session, out of almost 1,700 introduced, according to the statistics from the legislative branch. All that policy was made in the midst of a historic Republican supermajority and unrest over social issues, with the Republican-backed censure of Democratic Rep. Zooey Zephyr from Missoula grabbing national attention in the final two weeks of the session.

The call to sine die, or adjourn, came first, unexpectedly, in the Senate on Tuesday afternoon. When the Senate adjourned, the House had yet to pass the budget, which is the only bill the Legislature is constitutionally required to pass. The House worked long into the night to pass all the bills they could before adjourning at 9:15 p.m. In the end, the House passed the more than $14 billion budget in House Bill 2 with Senate amendments on a vote of 88-8.

"It did disrupt. It threw us for a little bit of a curve ball, but I think we still kept our eyes on the ball. Maybe we didn't hit the home run, but we still got a triple out of the deal," Speaker of the House Matt Regier, R-Kalispell, said Wednesday about the Senate's early adjournment. "We came into this session unified behind a set of policy principles, which I'm proud to say that we have accomplished. Our historic Republican supermajority coalesced around the foundation that defines the Republican brand, which is liberty and respect for the people of Montana."

While Zephyr's censure and expulsion, first over comments she made about a bill that would ban gender-affirming care and then for what Republicans said was encouragement of a protest in the House chambers, dominated national headlines, the bulk of the session focused on issues like housing access, health care, education, red-tape relief for businesses, childcare and mental health. Social issue bills restricting abortion and gender-affirming care drew the hottest debates this session. Policy watchers said the 68th session was highlighted by the unusual tensions and extreme reactions about some of that legislation, most of which passed.

In the end, Republicans said they were proud and pleased with the work they were able to do.

"Last session, the first with a Republican governor in 16 years, we passed a lot of bills, but a lot of those were relatively simple and easy policies that Republicans had just been waiting for a conservative governor to sign," Senate Majority Leader Steve Fitzpatrick, R-Great Falls said. "This session was different. We had dozens and dozens of really serious, dense policy bills across a huge variety of subjects. It was a lot of work, but I think we got to a good place in the end."

Democratic leadership said they were disappointed with the way Republicans participated in the legislative process this session, citing hyper-partisanship and a lack of cooperation. In a post-session press conference on Wednesday, party leadership said progress on healthcare and childcare were big Democratic successes this session. But, they said policy addressing issues like housing, education and reproductive health fell short.

House Minority Leader Kim Abbott, D-Helena, said her caucus spent the majority of the session pushing back against GOP policy.

"The main thing I think that I want to say is that every day Republicans showed up to attack the rights and freedoms of Montana's families, parents, kids, and really prioritized out-of-state corporations and the wealthy over the working people," Abbott said. "But as you know, Representative (Laurie) Bishop said yesterday on the floor, we punched above our weight and every day when we showed up, we fought to defend the rights and freedoms of Montanans -- the right to privacy, the rights of health care."

Lawmakers Pass $14.3 Billion State Budget, Cut Taxes, Fund Infrastructure Projects

This session's House Bill 2, the major budget bill, appropriates $14.3 billion to five different areas of state government: general government, health and human services, natural resources and transportation, education and public safety. The budget is spread over two years with $7 billion being spent in fiscal year 2024 and $7.3 billion in 2025.

The two-year budget is $1.66 billion more than the 2022-2023 budget, which sat at $12.7 billion. The most notable parts of the budget include increases to Medicaid provider rates, tax cuts and spending on infrastructure like roads, bridges and water systems.

Coming into the session, Gov. Greg Gianforte laid out tax cuts for Montanans as a central priority for lawmakers to tackle.

Senate Bill 121, sponsored by Sen. Becky Beard, R-Elliston, reduces the top-income tax rate from 6.5 percent down to 5.9 percent, and expands the Earned Income Tax Credit, which will send $11 million annually to lower-income families. The bill will cost the state about $150 million every year by not collecting the additional income tax from Montana's top earners.

SB 121 was a part of the governor's original budget proposal, and passed through the Legislature on party-line votes. The bill made its final stop on March 1 when the House passed it 68-30, with every Republican voting for it and every Democrat against it. The governor signed SB 121 on March 13.

House Bill 192, sponsored by Rep. Bill Mercer, R-Billings, will spend $480 million on income tax rebates that total up to $1,250 per taxpayer or $2,500 for spouses who file jointly.

Gov. Ginaforte also signed House Bill 212, sponsored by Rep. Josh Kassmier, R-Fort Benton, and Senate Bill 124, sponsored by Sen. Greg Hertz, R-Polson, on March 13, both of which aim to mitigate business taxes in Montana and remove "unnecessary restrictions" from Montana code through the governor's so-called "red-tape relief" initiative. HB 212 increases the business equipment tax exemption from $300,000 to $1 million, and will cost the state about $9 million per year. SB 124 adjusts the state's corporate income tax from companies that mainly operate in Montana, and puts more of the burden onto larger e-commerce companies like Amazon. The bill is expected to increase state revenue by around $16 million per year.

Lawmakers also passed legislation to give short-term relief on increasing property taxes across the state. House Bill 222, sponsored by Rep. Tom Welch, R-Dillon, spends $284 million on property tax rebates for primary residences of up to $1,000 per homeowner – a $500 split between tax years 2022 and 2023.

"Most Montanans will be receiving thousands of dollars apiece in tax rebates and paying lower taxes going forward into the future, with $1 billion in total tax relief on its way to the citizens and businesses of our state," Speaker Pro Tempore Kenneth Bogner, R-Miles City said. "We've also invested hundreds of millions in road, bridge, and water infrastructure projects across the state. More money in Montanans' pockets and better infrastructure are tangible benefits we're bringing home to our constituents."

Legislature's Plan for Marijuana Tax Revenue In Limbo

The tax revenue from sales of recreational marijuana is a new stream of state revenue the Legislature debated extensively this session. The pot sits at $53 million for the 2024 fiscal year, and is expected to jump to $57 million by 2027.

Senate Bill 442, sponsored by Sen. Mike Lang, R-Malta, was viewed as a bipartisan compromise for where the tax revenue would go.

The bill would have appropriated the pool of money into six different accounts:

4 percent to parks, trails and non-game wildlife efforts.

20 percent to county road maintenance and creation.

20 percent to the newly established habitat legacy account.

5 percent funds tax relief for veterans and surviving spouses.

11 percent to the Healing and Ending Addiction through Recovery and Treatment (HEART) fund.

The remaining 38 percent goes to Montana's general fund, which essentially is the state's checkbook.

The bill passed the Senate on a 48-1 margin on May 1. But, Gov. Greg Gianforte vetoed the bill, writing in a letter to the Legislature that he has several objections to the bill, including the way it funds county roads, which he called a "slippery slope." Because the veto happened before the Senate adjourned but lawmakers were not officially notified about it until after, the fate of the bill under legislative rules remains unclear.

Senate Bill 538, sponsored by Sen. Chris Friedel, R-Billings, started off as a simple marijuana policy bill to license dispensaries, but was amended to add an appropriation for the marijuana tax revenue. It completely removed everything outside of 11 percent to the Habitat Montana program and the rest would have been allocated to the state general fund.

SB 538 was gaining some traction as the governor's preferred choice between the two bills, but was ultimately killed 38-62 on May 1.

Lawmakers Strike Compromise on Housing Legislation

Housing in Montana has been one of the main battlegrounds for debate this legislative session. Lawmakers from both parties made promises to their constituents and while Democrats and Republicans came in with vastly different ideas on how to manage the housing crisis, they settled on a compromise in the form of House Bill 819.

HB 819 is essentially a conglomeration of all the housing policies debated this session. It would split Montana up into 16 districts that would each be managed by a federally certified non-profit called a "community reinvestment organization," or CRO. There are all sorts of grants, loans and resources offered to the CROs, and it would be an organization's job to figure out how to best use them for their district.

Rep. Paul Green, R-Hardin was the sponsor of the bill. He said housing is an issue that affects everyone in the state and he was proud to have pushed forward a solution to the state's housing crisis.

Legislature Fully Funds Medicaid Reimbursement Rates

Provider rates, or the rates at which the state Medicaid program reimburses health care providers, was another big issue this session. Before the 68th session, provider rates didn't pay enough to cover the full cost of care and providers, patients and health care advocates of all kinds have begged lawmakers to increase the rates to keep facilities open and services available. With full coffers this session, the Legislature was able to increase provider rates in the state to cover almost the whole cost of care.

Gov. Gianforte addressed behavioral health and addiction treatment expansion in his State of the State address in January. Since then, lawmakers have passed bills loosening licensing for behavioral health professionals and establishing a free addiction treatment program in the state through the HEART fund. House Bill 310, sponsored by Republican Representative Jennifer Carlson, would require the Department of Health and Human Services to write a written report on the HEART fund spending to the Children's, Family, Health and Human Services Interim Committee.

Another bill that passed would provide large investment in Montana's mental health resources and infrastructure. House Bill 872 would study the needs of and invest $300 million dollars into Montana's behavioral health system. It would also establish an interim committee that would advise the Department of Health and Human Services on how to best spend the money.

Legislature Expands Childcare Funding, Loosens Licensing to Address Access

Childcare supply in Montana covers only less than half of estimated need, and a few bills like House Bill 648 and House Bill 918 were signed into law to help address the growing shortage. Rep. Alice Buckley, D-Bozeman, is the sponsor of both bills. HB 648 would expand the Best Beginnings scholarship program to more Montana parents. Under the bill, parents would only pay up to 9 percent of their income on daycare. Families need to make 185 percent the national poverty line to qualify for the scholarship program, which would amount to $55,500 dollars per year for a family of four.

The second bill that would help address Montana's childcare needs is HB 918. Under the bill, daycares with a minimum of two adults and 15 children would be able to run without a license. Buckely said the bill was designed to expand the number of daycare options Montana families are offered. She said the new childcare landscape will likely have both licensed and unlicensed daycare centers operating in the same cities.

Lawmakers Pass Two Bills Opening Door for Charter Schools

Charter schools and giving parents more rights in their child's education were major focuses in the education debate throughout the session.

The implementation of charter schools in Montana was heavily debated from the beginning of the legislative session all the way to the end.

Two bills, House Bill 549 and House Bill 562, were the two charter school bills locked in a philosophical battle of the best way to implement the schools into the state. Several policy makers and groups questioned if the state is ready to implement them at all.

HB 549, sponsored by Rep. Fred Anderson, R-Great Falls, creates a public charter school account to fund the building and operations of the schools. The bill also designates that charter school board members will be elected by the community at large, and follow similar guidelines to public schools across the state. HB 549 gives power to the State Board of Public Education to approve or deny the opening of charter schools, and establishes that the board must oversee and monitor the school's performance.

HB 549 was reconsidered on a 27-19 vote on April 27, and passed the Senate on a tight 27-21 vote on April 28.

HB 562, sponsored by Rep. Sue Vinton, R-Billings, provides a more privatized oversight of charter schools in the state. The bill establishes that tax money will be used to create and operate the charter schools, but they are not overseen by the state or the public at large.

The bill also exempts the schools from requiring educators to meet the state's certification requirements for teachers. The board that oversees the schools would be elected by parents and faculty involved directly with the private school.

HB 562 was the more controversial of the two, and passed the Senate 27-21 on April 28.

Some opponents of HB 562 said the bill is essentially "taxation without representation."

Senate Majority Leader Steve Fitzpatrick, R-Great Falls, addressed those concerns on April 28, and said both bills should be passed, and the courts will figure out whether they're constitutional or not.

The ability to give parents more rights when it comes to their child's education was also heavily discussed during the Legislative Session.

Senate Bill 518, sponsored by Sen. Theresa Manzella, R-Hamilton, requires school districts to provide information on educational opportunities and would allow parents to opt children out of certain school instruction.

SB 518 passed a final vote in the Senate 39-11 on May 2, and awaits the governor's signature before becoming law.

Transgender Legislation, Abortion Dominated Debates at Montana Legislature

Abortion has been one of the most highly debated issues this legislative session.

Under House Bill 544, Medicad would not be able to pay for an abortion unless the pregnancy would be fatal to the mother, is medically necessary or is the result of rape or incest. According to Planned Parenthood, the cost of an abortion can run anywhere from $600 to $2,000.

The second way abortion could be restricted in the state is through criminalization. House Bill 575 would ban the abortion of a "viable fetus" or a fetus that could survive outside the womb. Anyone who would like to get any abortion would need to undergo a "determination of viability," to make sure the fetus cannot survive outside the womb. Viability is assumed after 24 weeks of pregnancy. There is no exception for rape or incest in the bill. Doctors who ignore the law could face felony charges.

Right now, abortion is included in Montanans' right to privacy under the 1999 Montana Supreme Court ruling Armstrong v. State, but Senate Bill 154 changes that. Sen. Keith Regier, R-Kalispell, is the sponsor of the bill. He said the right to privacy only extends to "individual acts" or acts that only affect oneself. Regier said since an abortion does not only affect the mother's body, but the fetus as well, it should not be included in Montanans' right to privacy.

Gov. Gianforte signed all three bills into law Wednesday, May 3..

Gender-affirming care in Montana was another big issue during the 68th Legislative Session. Gender-affirming care is one of the treatments for gender dysphoria, which is a condition in which one's gender assigned at birth does not correspond with their gender identity. The condition can cause symptoms like anxiety, depression and negative self-image that studies show in some cases, can escalate to self-harm or suicidal ideation.

In Montana, the discussion was primarily over Senate Bill 99, which would bar children from receiving gender-affirming care in the state. Sen. John Fuller, R-Kalispell was the sponsor of the bill, and throughout the session he said this policy needed to be in place to protect children from themselves and potential symptoms that can come with gender-affirming care. The debate over the bill was extensive and heated, eventually leading to Rep. Zooey Zephyr's censure. Zephyr is the first transgender woman elected to office in the state and was censured after she refused to apologize for her comments on SB 99.

Corrections Bills Increase State's Payments to Prisons, Set Up Dog-Training Program

Corrections policy in Montana this session mostly had to do with investment. House Bill 174 would require the state to pay prisons for the actual cost of housing an inmate. The Department of Corrections would have to pay $82 per inmate per day to correctional facilities housing inmates.

House Bill 941 will set up a dog training program in the Montana State Prison in Deer Lodge. The program would allow inmates to train rowdy or nervous dogs who need a little extra help before they're adopted. Republican Rep. Gregory Frazer was the sponsor of the bill. He said the program could help reduce tensions between staff and inmates in the prison as well as reduce recidivism rates.

Huckleberry On Its Way to Becoming Montana's State Fruit

Rep. Lola Sheldon-Galloway, R-Great Falls, sponsored House Bill 880, which will give Montana its first official state fruit in the huckleberry. Students from the fourth and fifth grade classes of Vaughn School were tasked with doing a research project on huckleberries during this school year, and that led to a bill draft to make the huckleberry the state's official fruit.

The bill passed the House with heavy bi-partisan support 90-9 on April 3, and passed the Senate 38-11 on April 28.

Even with some bi-partisan wins like the state fruit however, and although lawmakers hugged on Tuesday and told each other how much they respected each other, political watchers worry the taste the last few weeks of the session has left in Montana's collective mouth will be long lasting.

Carroll College and Montana State University professor Jessi Bennion said this session has been unlike any other and Zephyr's censure in April is one extreme example that highlights how national tensions are filtering to state politics. She said she's worried this type of reaction could set a precedent for sessions to come.

"I think that you really need to try to like come to either some sort of conclusion, let cooler heads prevail, come back another day, try it again, deliberate as a body. Now I'm worried that if someone says something that maybe the person up at the podium doesn't like that, it's like, 'oh, you're out and this is going to become the precedent now.' Like, 'we're going to expel you," Bennion said. "Now, I'm worried about that for not just Montana, like we saw that in Tennessee. So I'm worried that that's going to be the new thing now, because once something starts and they see that it can be done, then it exists."

Caven Wade and Elinor Smith are student reporters with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. They can be reached at [email protected] and [email protected].