Lawmakers discuss gas and bed taxes, mail ballots, foreign law ban

A bill to raise the state gas tax to pay for infrastructure improvements is in a fragile position and should it pass the Legislature, it will likely do so by a vote or two, state Rep. Jacob Bachmeier, D-Havre, said Tuesday at the state legislative videoconference at Northern Montana Hospital.

The bill has garnered oppositions from members of both parties with some Democrats claiming the increase is too regressive, while some Republicans say it is anti-business, Bachmeier said.

"So what I think we will see is Democrats and Republicans will come together with the bare minimum amount of votes to get it through, that is what I am hearing," he said.

The bill passed the House Committee on Transportation Monday by a 10-3 vote.

House Bill 473 introduced by state Rep. Frank Garner, R-Kalispell, would increase the state's 27 cent gas tax to 35 cents. Aviation fuel would increase by four cents, while farm fuels would be exempt..

The bill says 57 percent, or $35 million, of the revenue would go to the Montana Department of Transportation for bridge and road projects decided on by the Montana Transportation Commission. Another 4 percent or $2.75 million, whichever is less, would go to the Montana Highway Patrol. The remaining funds would go to a road construction and maintenance match program for local governments in Montana.

The latest draft of the bill requires localities applying for the program to provide $1 for every $20 from the state. An earlier version required cities and counties match $1 for every $5.

Bachmeier said further changes might be made to make the bill more palatable to win over more lawmakers.

Hill County Commissioner Diane McLean said that though she hates to pay more at the pump, she strongly supports the bill.

There is no other pending legislation that would provide cities and counties with money and fund the Montana Highway patrol, she said. She added that such an infrastructure plan is needed to improve the safety of Montana's roads and allow the state to leverage federal dollars for highway improvements.

McLean said that, unlike other means of generating revenue, a gas tax increase would allow the state to collect revenue from out-of-state motorists and visitors who also drive on the roads.

If it passes, the legislation would mark the first hike in Montana's gas tax since 1991.

Mail ballot

Legislation to afford counties the option of conducting the May 25 special congressional election by an all-mail ballot is set for a hearing in the House Judiciary Committee Thursday.

Bachmeier said there might be some "other politics that might be happening in the next day, maybe two days" related to the proposal but would not elaborate.

"I'm not going to say too much because I don't want to ruin anything, but keep an eye out on the Judiciary Committee and the State Admin Committee over the next two days. I would pay close attention to both of those committees," he said.

McLean, a Republican, said she does not understand the opposition within her own party to the bill.

"I, quite frankly, can't understand the Republican stance against that bill, it doesn't make a lot of sense to me," she said.

"I have no answer to that either. Nobody has the answer to that one," Sen. Russ Tempel, R-Chester, said.

Senate Bill 305, introduced by state Sen. Steve Kirkpatrick, R-Great Falls, passed the Senate 37-13 Feb. 24. North-central Montana Sens. Tempel, Frank Smith, D-Poplar, and Mike Lang, R-Chester, voted for it.

County clerk and recorders throughout the state have advocated for an all-mail ballot because it would save cash-strapped counties money on an election they have not been able to budget for.

Republicans, though, have been divided on the bill, with some saying they are worried about election fraud, others saying it would reduce votes and others that it would increase the vote, which they said would help Democrats.

Foreign law ban

A bill to prohibit the use of foreign law in state courts when it conflicts with rights guaranteed under the Montana or U.S. Constitution was criticized at the meeting.

Karen Sloan of Havre said the bill was "ridiculous."

"It just makes us look like fools," Sloan said. "I mean, let's face it, it makes Montana look like idiots and I've just had enough of that."

Senate Bill 97, introduced by Sen. Keith Regier, R-Kalispell, passed the House during second reading Monday 56-44. The bill passed the House again late Tuesday 57-42. Bachmeier and state Rep. Jonathan Windy Boy, D-Box Elder, opposed the bill, while state Reps. Casey Knudsen of Malta and Jim O'Hara of Fort Benton supported it on both readings.

Before the third reading took place, Bachmeier acknowledged it was unlikely opponents would be able to switch enough votes to defeat the bill, but said Gov. Steve Bullock would likely veto it.

Bachmeier said the bill is "political theater at best and probably fear based at worst."

He said proponents of the legislation say it is meant to protect the state and federal constitutions but that the supremacy clause of the U.S. Constitution does just that.

Though the bill does not mention Sharia law, critics have said that is just to avoid the proposal becoming the subject of legal trouble, which a proposed constitutional amendment that passed in Oklahoma in 2011 had been.

"I just wish we would drop this bill and move on to some of the more important bills like on infrastructure and the budget," Bachmeier said.

Havreite John Kelleher asked if there had ever been a situation where the courts had found such a bill to be constitutional.

"Everytime I hear judges they say it is unconstitutional," Kelleher said

Bachmeier said that whether it is found to be unconstitutional depends on the intent of the Legislature. State Rep. Ellie Hill Smith, D-Missoula, proposed an amendment to clarify the intentions of the Legislature, by also banning the use of the law of Moses in Montana courtrooms. That amendment was handily defeated.

"That basically clarified the intentions of the Legislature, that it is singling out a single group of people and in that case would be unconstitutional based off of legal precedent," Bachmeier said.

He added that if the governor was to sign the bill into law, it would most likely be struck down by the courts.

Bed tax

Though he did not know many details, Bachmeier said he was interested in hearing arguments both for and against increasing the state's lodging tax.

Bachmeier also said he learned about the proposal in an unspecified newspaper.

House Minority Leader Jenny Eck, D-Helena, is drafting a bill that would pay for improvements to the Montana Historical Society building in Helena through an increase in the state lodging and facilities use tax, also known as the bed tax.

Bachmeier said he believes the proposed increase would be 1 or 2 percent.

The state has a 7 percent lodging tax that consists of a combination of a 4 percent facility use tax and 3 percent sales tax on overnight guests at hotels, motels, campgrounds and dude ranches. The Montana Department of Revenue website says 4 percent of the tax is deposited in the state special revenue fund which is then used by the Montana Department of Commerce to promote tourism. The remaining 3 percent goes to the state general fund.

"I understand both sides of the argument, Bachmeier said. "Some people think it would hurt tourism, others think a 1 percent increase in the bed tax isn't going to kill our tourism market and that it will go towards a good cause."

Havre Area Chamber of Commerce Executive Director Debbie Vandeberg, who also sits on the Havre/Hill County Historic Preservation Commission, said lawmakers should leave the bed tax alone. She said that each session it seems like the Legislature views the tax as "the goose that laid the golden egg."

"They try to siphon that money, they try to add onto it," Vandeberg said.

She added that another proposal would add 2 percent onto the tax.

Vandeberg said that tourism is one of Montana's biggest industries and the more lawmakers "mess around" with the tax, the more of a negative impact it could have on tourism in the state.

Bachmeier said he will look into the issue and wants to view some studies on how it will impact Montana's tourism industry and look at what impact raising such a tax by a similar percentage has had on the tourism industry in other states.

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Information from The Associated Press was used in this story