MOTTO's perception of some winners and losers from the 60th Legislative session. 

Winners

• Governor Schweitzer - The Governor was so clearly the winner this session, its difficult to know where to start.  For openers, a majority of his "square deal" agenda passed.  The budget impasse allowed for fiscal restraint with every veto a media event.  He managed to squeeze a 10lb stream access bill into a 1 mm local government bill.  His demeanor following the Lange tirade will pay dividends throughout the election cycle.  Finally, he took full advantage of the 151st legislative seat provided by the democratic legislative leadership.
• Steve Daines - The Bozeman businessman gained attention for his giveitback.com website and ads critical of the Governor.  Now heralded by some as a candidate for Governor, this gimmick seems to have grown legs.
• Dept of Corrections - The DOC needed a boost and for the most part they received it. 
• Conservatives - the Conservatives in the House managed to gain key leadership posts & committee assignments, do little but pass the buck during the session, can the scapegoat, and stick true to their ideology in the end.  Can they really be proud of that?

Losers

• Mike Lange - You almost (just almost) feel sorry for the guy.  Can sympathy votes win a statewide election?
• Democratic Legislative Leadership - Its called "leadership" for a reason
• Dept of Revenue - Unlike DOC, the DOR had a difficult time promoting their needs and faltered
• Conservatives - the Conservatives in the House managed to gain key leadership posts & committee assignments, do little but pass the buck during the session, can the scapegoat, and stick true to their ideology in the end.  Can they really be proud of that?

One thing legislators hear very little, and likely even less this session is "thank you".  Regardless of ones politics, these fine men and women deserve our thanks.  The sacrifice made on behalf of making Montana a better place is often lost or taken for granted.  4 months away from loved ones, jobs, businesses, their community is a sacrifice made on behalf of all of us. 

To the Legislators & staff, the staff of and the Executive, and the staff of and the Judiciary,

Thank You.

The session has ended much like it started, an election involving Representative Mike Lange.  MOTTO assigned the "twilight zone" label to this session early on, and it certainly had a TZ'esque finale.  After rallying around the embattled majority leader for 90 days, compromise just wasn't the right fit for Lange, or Lange for continued republican party leadership.  While bloggers and media will speculate the reasons for the ouster was really the Governor's & Langes deal and not the famed "you tube" moment, the truth is really found in both, as both led to Lange carrying HB5, the tax bill.   HB5 led to the former majority leaders demise.  

In the grand scheme of things, the meeting of the 13 probably wouldn't have happened without the Lange tirade.  The nationally embarrassing event only strengthened the Governor and weakened the resolve of many in the GOP.  Ultimately, it certainly weakened any opportunity for the success of a stronger GOP influenced tax proposal or budget package.  It was either karma or ego (perhaps a bit of both) that Lange came to sponsor the tax bill.

Among the moderates pushing a compromise, those northcentral Montana republican legislators had little choice, as the tax credits found in the energy bill were vital to the area and the upcoming transmission & energy plans. While Rep's Jones and Clark had some influence with the caucus on energy & the budget (particularly human services), they didn't have the ammo to push an almost completely executive influenced tax bill sponsored by a leader who had lost his faithfuls' support.

Compromise or the meeting of minds does not influence elections.  While looking at the pros and cons of supporting HB5, little political capital would come from support.  While legislators may have wanted the business equipment tax proposal to pass, the politicians of the group certainly didn't.  The latter prevailed.   

A start and an end politically influenced.  Imagine that.  Good night, Gracie.

The coalition of House R's and the executive are struggling with the passage of HB5, or the tax relief compromise.  So much so, Speaker Sales is apparently threatening to pass on the budget and a couple of house tax bills and adjourn.

Then in a different meeting, House Speaker Scott Sales told Senate Democrats it’s possible he may move the Republican version of the budget along with the new tax bills and adjourn as early as the end of the day

Then in a different meeting, House Speaker Scott Sales told Senate Democrats it’s possible he may move the Republican version of the budget along with the new tax bills and adjourn as early as the end of the day

If there is any honor left at all in this body, the 13 House republicans that led the compromise cannot let that happen. They must work together again and stop any of those motions, including a motion to adjourn until the tax issues are agreed upon.  With the way the tax bill seems to be traveling, little if any political cover has been given to those House R's.  Now is the time to do so. 

It certainly looked as if the democrats in the legislature were left out of the compromise discussions prior to the call of the special session.  Now is the time for Legislative leadership.  The entire democratic caucus should reach out to the moderate republicans in both the Senate and the House, as well as the republican leadership (including Sales and Stapleton) and develop a Legislative package on the tax issues.  Provide the cover, develop a tax proposal that looks a bit more like the 3rd floor of the Capital than the 2nd.   

No one is more pleased than MOTTO to have the moderates of both parties work to develop a mutually acceptable agreement on the issues currently facing this divided legislature.  That being said, however, due diligence and thoughtful deliberation should not be set aside to meet an artificial deadline.  The tax, education, and budget issues left for the special session are the largest issues that were to be determined by the regular session.  While the budget discussions reached every legislator, many, if not most, of the tax items did not.  Ultimately, the bills will have to co-exist, money in, money out.

Today, the 2nd day of the special session, the tax bill is being heard by joint committee.  MOTTO made reference to the title below, this bill contains several significant policy revisions.  As of this post, a fiscal note was not yet available, yet a majority of our legislators may be asked to vote on a bill they know very little about.  The REIT bill is itself a defining policy statement.  Do our legislators understand the pro & cons?

Regardless of the party, policy decisions as the ones being decided currently should not be made unless proper review, debate, and deliberation is conducted.  Our legislators must remind themselves they are a body independent of the executive.  Perhaps each and every bill is indeed good legislation.  Please, just take the time to ensure it is. And if it isn't, well, remember, is your honorable body (Legislature) to which blame will be placed.   

This is the title of the tax bill (LC0005) to be acted upon during the 3 day special session

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING LAWS RELATING TO TAXATION; CONFORMING STATE WITHHOLDING PROVISIONS TO FEDERAL WITHHOLDING PROVISIONS FOR PENSIONS, ANNUITIES, AND CERTAIN OTHER DEFERRED INCOME; REQUIRING WITHHOLDING AT 30 PERCENT OF THE AMOUNT WITHHELD FOR FEDERAL TAX PURPOSES; PROVIDING A REFUND OF UP TO A TOTAL OF $400 OF 2006 MONTANA PROPERTY TAXES PAID BY A TAXPAYER OR TAXPAYERS ON THE RESIDENCE THAT THEY OWNED AND OCCUPIED AS THEIR PRINCIPAL RESIDENCE FOR AT LEAST 7 MONTHS DURING 2006 AND OF CERTAIN 2005 AND 2004 MONTANA PROPERTY TAXES PAID ON THE PRINCIPAL RESIDENCE; PROVIDING THE PROCEDURE FOR ESTABLISHING ENTITLEMENT TO THE REFUND AND THE PERIOD WITHIN WHICH THE ENTITLEMENT MUST BE ESTABLISHED; PROVIDING A REFUNDABLE RENTERS' INCOME TAX CREDIT; LIMITING THE CREDIT TO INDIVIDUALS BELOW A CERTAIN INCOME LEVEL; ALLOWING A REFUNDABLE INCOME TAX CREDIT FOR THE AMOUNT OF PROPERTY TAXES PAID ON $20,000 OF MARKET VALUE OF A PRINCIPAL RESIDENCE ATTRIBUTABLE TO THE 95-MILL STATEWIDE LEVIES TO FUND SCHOOLS; ADOPTING PROVISIONS OF THE MULTISTATE TAX COMMISSION MODEL ACT ON REPORTABLE TRANSACTIONS AND THE MODEL ACT FOR A TAX EVASION TRANSACTION VOLUNTARY COMPLIANCE PROGRAM; REQUIRING TAXPAYERS TO DISCLOSE CERTAIN TRANSACTIONS; REQUIRING MATERIAL ADVISERS TO DISCLOSE CERTAIN TRANSACTIONS; REQUIRING TAX SHELTER PROMOTERS TO DISCLOSE CERTAIN TRANSACTIONS; PROVIDING FOR A VOLUNTARY COMPLIANCE PROGRAM; CREATING THE MONTANA REAL ESTATE BACKUP WITHHOLDING ACT; PROVIDING DEFINITIONS; REQUIRING WITHHOLDING FOR INCOME TAX PURPOSES ON THE GAIN FROM THE SALE OR EXCHANGE OF CERTAIN MONTANA REAL ESTATE; ESTABLISHING A WITHHOLDING TAX RATE; PROVIDING EXCEPTIONS TO WITHHOLDING; ESTABLISHING REPORTING AND REMITTANCE REQUIREMENTS; REQUIRING THAT CERTAIN INFORMATION BE SUBMITTED WITH THE REALTY TRANSFER CERTIFICATE; PROHIBITING THE RECORDING OF A TRANSFER OF MONTANA REAL ESTATE OR A CHANGE IN OWNERSHIP RECORDS OF MONTANA REAL ESTATE FOR PROPERTY TAX PURPOSES IF THE REQUIRED INFORMATION IS NOT PROVIDED; PROVIDING RULEMAKING AUTHORITY TO THE DEPARTMENT OF REVENUE; CLARIFYING THE LIABILITY OF CLERKS AND RECORDERS; GRANTING AUTHORITY TO THE DEPARTMENT OF REVENUE TO REQUIRE SOCIAL SECURITY NUMBERS OR TAXPAYER IDENTIFICATION NUMBERS IN TAX MATTERS; CLARIFYING THAT SHERIFFS' FEES ARE ADDED TO THE BALANCE OF A WARRANT FOR DISTRAINT; CONFORMING THE TIME TO MAKE A RETURN OF A WARRANT FOR DISTRAINT TO THE TIME THAT THE NOTICE OF LEVY IS EFFECTIVE; ALLOWING A NOTICE OF LEVY OF A WARRANT FOR DISTRAINT TO BE SERVED ELECTRONICALLY; INCREASING THE SCOPE OF RURAL TELECOMMUNICATIONS PROPERTY CLASSIFIED AS CLASS FIVE PROPERTY BY INCREASING THE POPULATION LIMIT FOR CITIES AND TOWNS SERVED TO 10,000; PROVIDING A 10-YEAR EXEMPTION OF 50 PERCENT OF MARKET VALUE FOR NEW RURAL TELECOMMUNICATIONS PROPERTY; DEFINING "NEW RURAL TELECOMMUNICATIONS PROPERTY"; INCREASING THE BUSINESS EQUIPMENT TAX EXEMPTION TO THE FIRST $65,000 OF MARKET VALUE OF PROPERTY; REQUIRING THAT THE CLASS EIGHT PROPERTY OF RELATED PERSONS BE AGGREGATED IN DETERMINING WHETHER THE $65,000 EXEMPTION THRESHOLD IS EXCEEDED; PROVIDING FOR THE ALLOCATION OF EXEMPT CLASS EIGHT PROPERTY BY LOCATION; PROVIDING A REIMBURSEMENT TO LOCAL GOVERNMENTS AND TAX INCREMENT FINANCING DISTRICTS UNDER THE ENTITLEMENT SHARE PAYMENT AND TO SCHOOL DISTRICTS THROUGH GUARANTEED TAX BASE FUNDING FOR THE LOSS OF CLASS EIGHT PROPERTY TAX REVENUE; EXEMPTING FROM TAXATION ITEMS OF PERSONAL PROPERTY WITH A MARKET VALUE OF LESS THAN $100; CLARIFYING THAT PROPERTY OWNED BY COMMERCIAL MOBILE RADIO SERVICE PROVIDERS IS CENTRALLY ASSESSED FOR PROPERTY TAX PURPOSES; REQUIRING INFORMATION SHARING AMONG STATE AGENCIES; REQUIRING DISCLOSURE OF A PORTION OF THE FEDERAL TAX IDENTIFICATION NUMBER OF A BUSINESS ENTITY ON THE ANNUAL REPORT FILED WITH THE OFFICE OF THE SECRETARY OF STATE; LIMITING DISCLOSURE OF THE FEDERAL TAX IDENTIFICATION NUMBER; AUTHORIZING THE DEPARTMENT OF REVENUE TO DISCLOSE CERTAIN INFORMATION FROM TAX RETURNS AND REPORTS TO THE SECRETARY OF STATE; PROVIDING A 5-YEAR PERIOD OF LIMITATIONS FOR ASSESSMENT, COLLECTION, OR REFUND OF CORPORATION LICENSE TAX; PROVIDING APPROPRIATIONS AND A STATUTORY APPROPRIATION; AMENDING SECTIONS 7-4-2623, 15-1-121, 15-1-201, 15-1-706, 15-6-135, 15-6-138, 15-6-219, 15-8-301, 15-10-420, 15-23-101, 15-30-301, 15-30-303, 15-31-509, 15-31-511, 15-31-603, 16-11-149, 17-7-502, 20-9-366, 35-1-1104, AND 35-8-208, MCA; AND PROVIDING EFFECTIVE DATES, APPLICABILITY DATES, AND TERMINATION DATES."

Sections have their own title! Do you think your Senator & Representative know what this bill does as they vote on it?

Now that the special session has been called, early bill drafts include

Tax incentives for energy development.  Tax reduction and abatement for clean coal, transmission, and biofuels.  Senator Jeff Essman (R-Billings) requester & sponsor

Tax incentives for energy - Rep. Llew Jones (R-Conrad requester

 General appropriations act (AKA HB2).  Requester, Rep. Galen Hollenbaugh (D-Helena)

Education revise - Rep. Hollenbaugh and School Funding Sen. Dan McGee (R-Laurel), Long range planning, Sen. Cooney (D-Helena)

Educational trust fund funded by REIT's  - Rep. Hollenbaugh requester

and funding for session, Rep. Hollenbaugh, requester

It is unclear whether or not these requested drafts are the Governor's preferred bills.  Senator Essman's request looks as if it very well could be, while Jones isn't prepared for public view as of this post.  Neither education bill was ready for viewing.  Will update as bills become available. 

Note - requesting a bill does not necessarily mean they will carry the bill. 

Survivor: Helena. Our own backyard version of Survivor is on hiatus, as the camps await the necessary callback to complete the game.  Strategy will play an important role, as will any breakout camps.  Does the Republican leadership have the immunity idol? Can the teams rebound as complete the difficult budget and tax challenges? Who will be sent to exile island? 

Outwit, outplay, outlast?  This Survivor has been so poorly rated, the contestants have to wonder if they'll be invited back for the next regular session. 

What a minute.  Maybe that the problem.  We have two side who are trying to do just that, win.  While politics may be about winning and losing, governing is not.  Govern. 

Seriously, I considered not discussing the topic at all. There are no winners in any of this, only losers, starting with the people of Montana.  Once all the political points are made (and make it their last political comment), both sides need to roll-up their sleeves and finish the work. 

Unbelievable.  Schweitzer's popularity just rose 5 points.   

 Rep. Michael Lange, R-Billings, told a meeting of fellow Republicans that the Democrats are negotiating like "Communist Russia" and "Red China," and that talks had reached an impasse. Then Lange launched into an attack on the governor, calling Schweitzer an "S.O.B."

Schweitzer, who was not present, was diplomatic in responding, saying he still respects Lange and plans to continue working with him. The governor said Lange was diplomatic during an early morning meeting in which tax legislation was discussed.

There was also a "stick it up ...." comment as well. 

The D's couldn't script this any better.