How new legislation hits home

The great school funding debate dominated the 2005 Legislature, but there was plenty of other legislative action that will have direct or indirect effects on the Flathead Valley.

Local legislators cite a laundry list of bills that will make a difference in the Flathead, covering everything from business equipment taxes to new insurance programs aimed at helping businesses and higher fees for hunting and fishing licenses.

Most of the pending changes are considered beneficial, but some will be met with resistance.

How did the Flathead fare in the 2005 Legislature? Here are the highlights:

Rep. Mike Jopek, D-Whitefish, cites a series of bills related to land-use planning and state lands.

One bill settled questions surrounding the development of gravel pits that arose from an interpretation from the Flathead County zoning administrator that the county cannot impose conditions on gravel pits in nonresidential zoning districts.

The bill, signed by Gov. Brian Schweitzer last week, made it clear that local governments can prohibit or put conditions on gravel operations in residentially zoned areas and "reasonably condition" them in all other zoned areas.

It left it up to local governments to define residential areas. The legislation met with agreement from contractors, local government officials and the public, Jopek said.

A major improvement for land-use planning, Jopek said, is the approval of a bill that allows local governments to levy impact fees for roads, other public infrastructure and fire and police protection that result from developments.

"It's enabling language," Jopek said. "If local governments want to use the tool, they have it in place."

He added that it has the potential to end "years of warfare between Realtors, developers, local governments and taxpayers."

Another change in state law will allow fees for street and other infrastructure maintenance to be based on the use of a particular property rather than solely on the size of the property. Fees can differ depending on whether the land is used for residential, commercial or industrial use.

A bill was passed that requires the State Land Board to recognize local planning regulations in a formal review process when the board is considering converting state lands from traditional uses to other uses, such as commercial development.

That law would apply to school trust lands in the Whitefish area that have potential for producing greater financial returns through development rather than traditional uses, such as timber production.

Methamphetamine

Flathead County has for years been one of the state's most active areas for illegal activity related to methamphetamine production and use.

Two new state laws are aimed at the meth problem.

One requires people who are purchasing powdered forms of the drug pseudoephedrine - a key ingredient in meth manufacturing - to provide pharmacies with photo identification.

"Other states that have done this have shown a drastic reduction in the production of meth" because it makes the main raw product less accessible, Jopek said.

Another bill provides judges more discretion when sentencing a person for a second felony offense involving meth. Judges now have the latitude to sentence those offenders to treatment programs rather than the sole option of sending them to prison.

Small businesses

Small businesses make up the vast number of businesses in the Flathead Valley, and new legislation gives them the ability to pool together for purchasing health insurance. Participating businesses with fewer than 10 employees will also qualify for tax credits.

It may take a couple of years for the results to show up, but Jopek predicts those changes will improve the local business climate, making local businesses more attractive places to work, while reducing costs local health-care providers incur for uninsured patients.

Republican legislators, however, are unhappy about the costs local businesses will pay from legislation that effectively froze a statewide business equipment tax at 3 percent. That tax had been slated to be phased out entirely if the state's economy reached certain "triggers."

"The trigger was eliminated and the tax was effectively frozen at 3 percent," said Rep. Verdell Jackson, R-Columbia Falls.

Flathead County is the state's largest manufacturing county, and Montana is surrounded by states with smaller or no equipment taxes at all, Jackson noted.

"To me, it is the worst kind of tax, because it's a tax you have to pay even if you're making no profit," he said.

Jackson said businesses across the state have for years been led to believe that the tax would be phased out.

Taxes and fees

There was considerable support in the Flathead for a local-option sales tax that would have to be approved by voters.

But several local-option sales tax proposals were defeated in the Legislature, just as they have been in previous sessions. As in the past, the proposals were resisted by legislators concerned about impacts on Montana's rural residents.

Sen. Greg Barkus, R-Kalispell, said he was concerned that Kalispell voters could approve a local-option sales tax when most of Flathead County's residents live outside the city but do their shopping within city limits.

From her position on the House Fish, Wildlife and Parks Committee, Rep. Dee Brown, R-Hungry Horse, staunchly opposed increases in hunting and fishing license fees.

But the fee increases were approved the Legislature, largely at the urging of department officials who contended that Montana Fish, Wildlife and Parks has been operating for more than a decade without any increases in license fees.

Brown argues that the department's employee roster has grown by roughly 15 percent during the same period. Rather than having Montana hunters and anglers paying substantial fee increases to cover that growth, the department should have been required to make cuts.

,Starting in March 2006, resident fishing licenses will go from $13 to $18, mandatory conservation licenses increase from $6.25 to $8; upland game-bird licenses will increase from $6 to $7.50; a "sportsman's" license with a bear tag will increase from $66.25 to $85; an elk license will increase from $16 to $18; and a deer license will go up $13 to $16.

Other fee increases for moose, sheep and goat for permits that are drawn.

Other issues

. One of the most dramatic pieces of legislation to be approved was a ban on smoking that will take effect in all buildings and offices open to the public on Oct. 1.

The bill provides an exception for bars and casinos, where smoking can continue until 2009.

Sponsored by Rep. Tim Dowell, D-Kalispell, the legislation's success involved the tenuous and somewhat surprising support of organizations representing Montana's bars and casinos.

. At one point during the legislative session, it appeared that regular funding to support long-term water quality monitoring on Flathead Lake was in jeopardy.

That funding was saved at the 11th hour, however, through a joint effort by Sen. Bob Keenan, R-Bigfork, and Sen. Dan Weinberg, D-Whitefish.

. The Legislature also approved $1 million in funding for the Montana Department of Environmental Quality to develop a cleanup plan for a site on Kalispell's west side that had been contaminated by refinery and wood treatment operations since the 1920s.

. Jackson noted that funding for ongoing improvements to U.S. 93 between Missoula and Kalispell is still on track. Those improvements will provide long-lasting benefits to Flathead residents, he said.

. Barkus said the Flathead benefited from the defeat of a proposed gross receipts tax on "box stores." That legislation failed, Barkus said, largely because Costco announced that it was suspending plans to build a new store north of Kalispell.

Despite efforts to amend the bill so Costco would not be affected by it, the company still opposed it. Since the bill died in the Senate, Costco has resumed plans for its new Kalispell store.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com