HomeMy WebLinkAboutLegislative Bulletin #2001-3MONTANA LEAGUE OF CITIES AND TOWNS
P. O. Box 1704, Helena, Montana 59624
(406) 442-8768 (406) 442-9231 FAX
website: mlct.org
00,-3
A Change of Season
Survival is at the top of the list of what is important during a northern winter or a session of the
Montana Legislature. Now, with the darkest months off the calendar and the Legislature home for the
transmittal break, it is time to think less of predicaments and more of possibilities.
Cities stood up to a dangerous sequence of bills in the first 45 days of the Legislature. These measures,
singularly or in various combinations, would have diminished local authority and added unnecessary
costs and complications to the business of mtmicipal government. The following is a list of bills cities
opposed or worked to amend h~ the first halfofthe Legislature~ -
Accounting
The Senate passed SB-138, a general revision of local government accounting laws.
recommended by the Local Government Funding and Structure Committee.
The bill was
Annexation
HB-289
HB-356
FiB -404
HB-453
eliminated distance restrictions on the organization of a municipality.
eliminated petition to disapprove annexation and require a vote on the question.
allowed vote on annexation of wholly surrounded land.
imposed a temporary moratorium on annexation.
The House Local Government Committee tabled these four bills in a single meeting on February 23.
The House did pass a resolution calling for a study of annexation laws. The Senate approved a bill (SB-
359) that will allow cities to establish annexation districts where it will be possible to phase in services,
taxes and fees for a period of up to 10 years.
Arbitration
House Bill 339, a measure that would have mandated binding arbitration of labor disputes between
cities and the police unions was tabled in the Business and Labor Committee.
Bonding and Debt
The House and Senate approved measures to revise the bonding and debt requirements for city
governments.
HB-23 bases limits for general obligation bonds on the market value of property.
SB-400 authorizes revenue bonds backed by gas tax allocations.
Building Code Jurisdiction
The House and Senate each passed measures that will limit extended jurisdiction of municipal code
enforceme;rt programs.
HB-457 requires a vote of residents in the extended area to authorize municipal code
enforcement.
SB-242 allows counties to enforce codes in selected areas as an alternative to city
jurisdiction.
The League ~upported amendments to SB-242 to encourage county enforcement in areas surrounding
cities. The bill, as amended, at least gives counties the authority to set up enforcement programs or
contract with cities to provide inspections in areas where lite safety should be an important public
purpose.
Contracts
House Bill 518 would have required cities to contract for any maintenance or construction project
costing more than $50,000. This bill was tabled at the request of the sponsor in the State
Administration Committee.
Electricity Pricing
The Legislature has considered a flood of measures intended to protect businesses, consumers and
public agencies from sharp increases in electricity rates when Montana moves to full customer choice
in about 15 months. Prices for electricity are currently radically higher than the regulated rates in
Montana. The Legislative leadership agreed last week to extend the deadline for the transmittal of bills
to address this problem. The suggested fixes include an excess profit tax, expedited review of
generation projects and possible state condemnation of dams and power plants.
Franchise Fees
A Kalispell Representative introduced and subsequently withdrew a measure to restrict local
govermnent authority to assess fees and otherwise regulate the use of the public rights-of-way. HB-285
missed the transmittal deadline.
Garbage
Private garbage haulers had a very aggressive agenda for this session of the Legislature. They arranged
for the introduction of a bill to prohibit municipal regulation of solid waste contractors and promoted
another measure that would have subjected city garbage operations to a goofy set of full cost
accounting requirements. The Senate killed these bills on the floor last week. The House approved
HB-334 that will allow landfills to qualify for low interest loans from the Department of Natural
Resources.
Land Use
The House rejected a measure that would have severely restricted the authority of local governments to
assess developers for the costs of public facilities and services required for new subdivisions.
Representatives killed]-IB-5$? bya 4~-58 margin after ~long floor debate lastWceek. - ....
Lobbying
Senate Bill 435 would have required Mayors, Council Members and other city officers and employees,
to register as lobbyists if they spent more than 20 hours promoting legislation. The Senate Local
Government Committee tabled the bill.
Mineral Royalties
House Bill 226 would distribute federal mineral royalties to local governments to fund impact
mitigation projects. The bill is in the Appropriations Committee and it may be difficult to persuade
members to shift money out of the precariously balanced state budget.
Public Notice
Senate Bill 187 revises public notice, standardizing the different requirements of the numerous statutes
that apply to local governments. The Senate passed this bill.
Rental Property
House Bill 382 limits local government powers in the general area of landlord tenant law. The sponsor
introduced this bill to prohibit cities from using licensing authority to regulate rental property. As
amended, the bill applies primarily to rent control.
Sidewalks
House Bill 371 would have allowed sidewalks to be included in street maintenance districts.
House rejected the bill on a close vote.
The
Taxation
The transmittal deadline for revenue bills is the 71st day of the Legislature, which means that most tax
measures are still technically alive. Cities are concentrating on option tax authority and the proposed
revisions in the financial relationship between state and local governments that are included in the so-
called "Big Bill". The following is a list of the tax measures that are most significant for cities and
towns: ..........
HB-124
HB-367
HB-409
SB-127
SB-155
SB-213
revises local government funding. This is the "Big Bill", and a select committee
has been working since early in January to attach amendments and make other
changes suggested by cities, counties, schools and other interests.
phases in taxes on new construction beginning with the date of occupation.
exempts local government health insurance plans from mill levy caps.
would have increased the bed tax from 4% to 6% and shared the additional
revenue with local governments. The Senate Taxation Committee tabled the bill.
authorizes cities and counties to impose a 4% tax on tourist related goods and
services with the approval of local voters. The bill also provides for the
distribution of 25% of the revenue collected by larger cities to counties and
smaller towns in the general trade area.
is similar to the local option tax bill the House rejected in the final days of the
1999 Legislature. Ttxree members of the Senate Taxation Committee have been
working with local government representatives since early January to write an
option bill that answers many of the questions that have complicated discussion
of this issue in the Legislature.
Conclusion
The House and Senate killed most of the bills that would have restricted the power of cities and towns
to decide important issues at the local level where govermnent is most fair and effective. The first half
of the Legislature was a defensive slugfest. The League had a lot of help kilhng a strange assortment of
bad bills, but now the seasons and the tides are changing and we have a chance to make some long
delayed and desperately needed improvements in municipal tax and revenue laws.
The letters from home did the job in the first 45 days of the Legislature, and as we get close to
decisions on the big issues we will be asking again for your help.
HOUSE BILLS - '!'=
W=Watch S=Support O=Oppose A=Amend
HB 23 S- Debt Limits- Generally revise local government debt limits and certain bonding provisions. (Erfckson) Transmitted
tn Governor 2/20/01
HB 37 W- Mill Levy- Revise mill levy certification. (Wilt) Transmitted to Governor 2/20/01
HB 56 S- Ambulance Service- Ambulance Service exception to insurance code. (Lawson) Chapter Nuraber Assigned
2/14/01
HB 61 W- Enuipment Tax- Eliminate phase out of business equipment tax. (Erickson) Hearing 1/12/01 (I{) Taxation
HB 124 S- Revise local government funding, (Story) Hearing 2/13/01 (H) Local Government Funding Select
HB 188 W- Video Gaming- Transfer portion of video gaming revenue to horse racing counties. (Clark) Referred to Committee-
(It) Appropriations 1/5/01
HB 226 W- Mineral Royalty_- Allocate portion of federal mineral royalty funds to counties. (Bales) Hearing 1/17/01 (H)
Appropriations;
HB 231 W- Monthly Pension- Revise monthly pension for volunteer flrefighters. (Lawson) Committee Report - Bill Concurred--
(S) State Administration 2/7/01
HB 266 W- Revise governmental accountability_ act. (Clancy) Hearing 3/6/01 (S) Judiciary
HB 298 S- State Building codes- Allow local government adoption of state building codes by administrative action. (Facey)
Referred to Committee- (S) Local Government 2/6/01
HB 357 W- Video gaming tax- Allocate % of video gaming tax to horse racing breeder purses and other purposes.
(Fuchs) Hearing 3/2/01 (It) Business and Labor
HB 367
S' Newly Constructed Improvements_- Revise assessment and taxation of newly constructed improvements.
(Facey) Hearing 1/31/01 (It) Taxation
HB 382 O- Landlord-T_enant law- Limit local government powers in area of landlord-tenant law. (Whit~ker) Referred to
Committee-- (S) Local Government 2/9/01
HB 392 W- Rural Technical Assistance- increase funding for rural technical assistance program. (Muscle) Hearing 3/8/01 (S)
Highways and Transportation
HB 409 S- Local Government Health Plan- Exempt local government health benefit plans from levy cap.
(Paterson) Transmitted to Senate 2/21/01
HB 430 W- Gr_ant~- Provide Grants for airport courtesy cars. (Clancy) Hearing 3/8/01 {S) Highways and Transportation
HB 445 W- Electricity_- Extend consumer rote moratorium for electricity. (Gallik) Hearing 2/6/01 (It) Federal Relations, Energy,
and Telecommunications
HB 452 W- --Retirement option- Deferred retirement option plan for municipal police. (Whitakor) Transmitted to Senate 2/23/01
HB 457 O- Building Codes- Building code enforcement in extended jurisdictional area. (Haines) Transmitted to Senate 2/21/01
HB 474 W- Enerey Laws- Revise energy laws pertaining to large customers. (Sliter) Hearing 3/1/01 (H) Federal Relations,
- - Energy, and Telecommunications _ _
HB 498 W- Landfills- Revise laws governing landfills, (Branae) Transmitted to Senate 2/21/01
HB 523 W- Retired Volunteer Firefighter- Monthly pension increase for retired volunteer firefighter. (Whitaker) Transmitted to
Senate 2/21/01
HB 580 W- Gambling Permits- Allowing local control of some aspects of gambling-- permits. (Erickson) Hearing 2/19/01 (H)
Taxation
HB 610 W- ZSEP- Reduce allocation to TSEP- increase allocation to ~ermanent fund. (Kasten) Referred to Committee--O{)
Appropriations 2/16/01
I, SENATE BILLS, I
SB 19 W- Electricity Suop¥- Delay the implementation of full customer choice in electricity supply. (Ha/ingan) Trausmitted to
House 2/21/01
SB 32 A- Safety Culture Act- Citations for safety culture act violations. (Shea) Committee Report-- Bill Concurred (ti)
Business and Labor 2/6/01
SB 37 W- Retiree Hours- Increase retiree hours of public emoloyment limit. (Mahlum) Committee Report-- Bill Concurred (H)
State Administration 2/9/01
SB 41 W- Public Safety Officers- Require certification of public safety communications officers. (Roush) Hearing 3/1/01 (H)
Local Government
SB 50 W- Modif)/Universal System benefits credits. (McNutt) Hearing 2/13/01 (H) Federal Relations, Energy, and
Telecommunications
SB 57 W- Extend universal system benefits charge (Johnson) Hearing 2/13/01 (It) Federal Relations, Energy, and
Telecommunications
SB 61 S- Revise volume can bono law. (Johnson) Committee Report-Bill Concurred (II) Taxation 2/8/01
SB 73 W- Motor Vehicle R~ventje_- Generally revise distribution of motor vehicle revenue. (Glaser) Transmitted to House
2/22/01
SB 138 S- Accounting Laws-- Revise local government accounting law. (Nelson) Transmitted to House 2/21/01
SB 151 A- Sale of Fitness Services_- Prohibit government sale of fitness services. (Mahlum) Transmitted to House 2/21/01
SB 15S S- Local Option Sa!rs T_a.X- Allow all cities and counties to adopt local option sales tax. (Halligan) Hearing 1/19/01 (S)
Taxation
SB 162 W- Local Government Revenue- Review of local government revenue dedication laws. (Crosfield) Referred to
Committee-- (H) Taxation 2/6/01
SB 175 W- Motor Vehicle Laws- Revise light vehicle registration fees and other motor vehicle laws. (Glaser) Referred to
Committee-- 0t) Local Government 2/1/01
SB 18'/' S- Local Government Notice- Revise and standardize local government notice provisions. (Cobb) Trausmitted to
House 2/14/01
SB 198 W- Treasure State Endowmen_2t- Treasure state endowment set aside for business infrastructure. (Taylor) Transmitted
toElouse 2/13/01 ...........
SB 213 S- Sales Tax- Local option sales taxes and fees. (Glaser) Hearing 1/19/01 (S) Taxation
SB 242 O- Prohibit extraterritorial building codes. (O'Noil) Transmitted to House 2/9/01
SB 243 W- Provide stability for electric rates. (Johnson) Transmitted to House 2/20/01
SB 244 W- Treasure State Endowment- Revise treasure state endowment to include affordable housing criteria.
(Halligan) Transmitted to House 2/13/01
SB 263 W- Continue Bed T_a.x- Continue bed tax funding for heritage preservation and development program. (Mahlum)
Transmitted to House 2/14/01
SB 317 W- Beer Produced in Montana- Reduce taxes on beer produced in Montana by Montana brewers. (Ellis) Transmitted
to House 2/16/01
SB 323 W- Worker's Comoensation- Revise exclusive remedy for worker's compensation. (McNutt) Transmitted to House
2/20/01
SB 327 W- Interact Service Providers- Restrict government competition with private internet service providers. (Doherty)
Transmitted to }louse 2/21/01
SB 346 W- Properly Tax- Proper~y tax penalty and interest amnesty. (Cobb) Transmitted to House 2/171/01
SB 348 S- Railroad Cross_inns- Authorize quiet zone railroad crossings. (Elliott) Transmitted to House 2/22/01
SB 350 S- Annexation district- Allow city or town to create annexation district outside the city or town. (Halligan)
Transmitted to House 2/22/01
SB 374 W- Class Four Property_- Change rates on certain class four property - recreational and inflated value. (Taylor)
Hearing 316/01 (S) Taxation
SB 396 W- Voter Particioation- Increase voter participation in constitutional initiative process. (Crosfield) Transmitted to
House 2/23/01
SB 400 W- Gas Tax Reveq_ue- Authorize local government revenue bands -- gas tax revenue. (Jergeson) Transmitted to
House 2/22/01
SB 407 W- Physical Plant Onerations- Allow city contract renewals for physical plant operations for water, power. (Berry)
Transmitted to House 2/22/01
SB 424 W- Electricity SuDply Costs- Clarify recoverable electricity supply costs; require reasonable return rate. (Glaser)
Transmitted to House 2/21/01
SB 435 A- Lobbyist Reoistration- Revise limit for lobbyist registration. (Borry) Hearing 2/13/01 (S) State Administration
SB 439 W- Revise lodging facility tjs__e tax. (Crosfield) Referred to Committee--(S) Taxation 2/9/01
SB W- Extraterritorial Zonino- Prohibit extraterritorial zoning and subdivision regulation. (O'Neil) Transmitted to House
470 2/22/01
SR W- Prohibit unfair electricity profits. (Doherty) Taken from Committee; Placed on 2nd Reading--(S) Energy and
475 Telecommunications 2/21/01