MEMBERSHIP 2011 ANNUAL MEETING LEGISLATIVE OUTCOMES Evan Barrett, Andy Poole and Rick Edwards

2011 Legislative Session and Economic Development

Pulling JOBS from the Tea Leaves Governor Brian Schweitzer & 2011 Legislature Bill #Title/Purpose Constructi on Jobs Permanent Jobs Investment Triggered Annual Property Taxes JOBS Bills SB 198Eminent Domain $3.54 Billion$105 Million HB 351Treasure State Endowment Projects1200 $ 49,925,488 HB 2Federal Dollars - Jobs Related 1138 HB 2Primary Sector Workforce Training 400 HB 2 HB 140Big Sky Economic Development 1240 HB 439Bonding Bill2400 $100 Million TOTAL $3.7 Billion$105 Million

Pulling JOBS from the Tea Leaves Governor Brian Schweitzer & 2011 Legislature Bill #Title/Purpose Constructi on Jobs Permanent Jobs Investment Triggered Annual Property Taxes JOBS Bills SB 198Eminent Domain $3.54 Billion$105 Million HB 351Treasure State Endowment Projects1200 $ 49,925,488 HB 2Federal Dollars - Jobs Related 1138 HB 2Primary Sector Workforce Training 400 HB 2 HB 140Big Sky Economic Development 1240 HB 439Bonding Bill TOTAL $3.6 Billion$105 Million

House Bill 2 (Main Budget Bill) Primary Business Sector Training OTO $1 million/yr. Funded since 2005 Current biennium funding is over $5 million Indian Country Economic Development OTO $800,000/yr. Funded since 2005 Main Street Program OTO $125,000/yr. Funded since 2005 Energy Promotion and Development Division (Base) $455,000/year Primary Business Sector Training OTO $1 million/yr. Funded since 2005 Current biennium funding is over $5 million Indian Country Economic Development OTO $800,000/yr. Funded since 2005 Main Street Program OTO $125,000/yr. Funded since 2005 Energy Promotion and Development Division (Base) $455,000/year

House Bill 140 (Rep. Hiner) - ?? Big Sky Economic Development Trust Fund Would have reduced interest flow to the Trust Fund for from 2 to 4 years $1.5 million/yr. Interest earnings diversion to GF Over $50 million in current trust fund Current funding is over $2.5 million per year House Bill 198 (Rep. Ken Peterson) - Generally Revise Eminent Domain Laws Section 1. Power of eminent domain. A public utility as defined in may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to provide service to the customers of its regulated service. Section 1. Power of eminent domain. A public utility as defined in may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to provide service to the customers of its regulated service. Section 2. Power to exercise eminent domain. A person issued a certificate pursuant to this chapter may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to construct a facility in accordance with the certificate Section 2. Power to exercise eminent domain. A person issued a certificate pursuant to this chapter may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to construct a facility in accordance with the certificate House Bill 140 (Rep. Hiner) - ?? Big Sky Economic Development Trust Fund Would have reduced interest flow to the Trust Fund for from 2 to 4 years $1.5 million/yr. Interest earnings diversion to GF Over $50 million in current trust fund Current funding is over $2.5 million per year House Bill 198 (Rep. Ken Peterson) - Generally Revise Eminent Domain Laws Section 1. Power of eminent domain. A public utility as defined in may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to provide service to the customers of its regulated service. Section 1. Power of eminent domain. A public utility as defined in may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to provide service to the customers of its regulated service. Section 2. Power to exercise eminent domain. A person issued a certificate pursuant to this chapter may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to construct a facility in accordance with the certificate Section 2. Power to exercise eminent domain. A person issued a certificate pursuant to this chapter may acquire by eminent domain any interest in property, as provided in Title 70, chapter 30, for a public use authorized by law to construct a facility in accordance with the certificate

House Bill 316 (Rep. Cook) – 10% reduction of statutory appropriations As introduced would have reduced support for each 2019 ED program by 10%. (4 year sunset) As passed, all are whole except R&C which takes all of the cut Reduces BSEDTF corpus by 10% ($5 million - one-time) Reduces TSEP corpus by 10% ($19 million - one-time) Reduces +10% of the Bed Tax (3 year sunset) House Bill 317 (Rep. Cook) – Veto ?? sunset for statutory appropriations Sunsets Bed Tax on June 30, 2014 Sunset Statutory ED program on June 30, 2019 (same as now) Sunsets Big Sky Trust Fund on June 30, 2020 House Bill 316 (Rep. Cook) – 10% reduction of statutory appropriations As introduced would have reduced support for each 2019 ED program by 10%. (4 year sunset) As passed, all are whole except R&C which takes all of the cut Reduces BSEDTF corpus by 10% ($5 million - one-time) Reduces TSEP corpus by 10% ($19 million - one-time) Reduces +10% of the Bed Tax (3 year sunset) House Bill 317 (Rep. Cook) – Veto ?? sunset for statutory appropriations Sunsets Bed Tax on June 30, 2014 Sunset Statutory ED program on June 30, 2019 (same as now) Sunsets Big Sky Trust Fund on June 30, 2020

House Bill 334 (Rep. Reichner) - Generally Revise Workers Compensation Creates a significant net reduction in the cost of Montana workers compensation system. Creates a significant net reduction in the cost of Montana workers compensation system. 1. Expands certain benefits while reducing other benefits 1. Expands certain benefits while reducing other benefits 2. Allows insurers to approve or designate the treating physician 2. Allows insurers to approve or designate the treating physician 3. Alters fee schedule rates for treating physicians and health care providers 3. Alters fee schedule rates for treating physicians and health care providers 4. Creates a Stay at Work / Return to Work assistance policy, fund, and policyholder assessment 4. Creates a Stay at Work / Return to Work assistance policy, fund, and policyholder assessment 5. Accepted medical benefits may be settled upon agreement of the insurer and the claimant, and the approval of the Department of Labor. This provision applies to any date of injury. 5. Accepted medical benefits may be settled upon agreement of the insurer and the claimant, and the approval of the Department of Labor. This provision applies to any date of injury. 6. Terminates medical benefits, except for PPD’s and prosthetics, after 60 months with provisions for re-opening. 6. Terminates medical benefits, except for PPD’s and prosthetics, after 60 months with provisions for re-opening. House Bill 334 (Rep. Reichner) - Generally Revise Workers Compensation Creates a significant net reduction in the cost of Montana workers compensation system. Creates a significant net reduction in the cost of Montana workers compensation system. 1. Expands certain benefits while reducing other benefits 1. Expands certain benefits while reducing other benefits 2. Allows insurers to approve or designate the treating physician 2. Allows insurers to approve or designate the treating physician 3. Alters fee schedule rates for treating physicians and health care providers 3. Alters fee schedule rates for treating physicians and health care providers 4. Creates a Stay at Work / Return to Work assistance policy, fund, and policyholder assessment 4. Creates a Stay at Work / Return to Work assistance policy, fund, and policyholder assessment 5. Accepted medical benefits may be settled upon agreement of the insurer and the claimant, and the approval of the Department of Labor. This provision applies to any date of injury. 5. Accepted medical benefits may be settled upon agreement of the insurer and the claimant, and the approval of the Department of Labor. This provision applies to any date of injury. 6. Terminates medical benefits, except for PPD’s and prosthetics, after 60 months with provisions for re-opening. 6. Terminates medical benefits, except for PPD’s and prosthetics, after 60 months with provisions for re-opening.

House Bill 351 (Rep. Cook) - Treasure State Endowment Project Funding $13,753,578 Funds 30 projects with $13,753,578 6 additional projects if money left over $100,000 for emergency grants $900,000 for infrastructure planning grants 1. Hardin, City of (water) $500, Hardin, City of (water) $500, Park County (bridge) 555, Park County (bridge) 555, Sheridan, Town of (wastewater) 750, Sheridan, Town of (wastewater) 750, Yellowstone County (bridge) 157, Yellowstone County (bridge) 157, Madison County (bridge) 699, Madison County (bridge) 699, Brady County Water & Sewer District (water) 750, Brady County Water & Sewer District (water) 750, Carter Chouteau County Water /Sewer District (water) 750, Carter Chouteau County Water /Sewer District (water) 750, Sun Prairie Village County Water /Sewer District (water) 625, Sun Prairie Village County Water /Sewer District (water) 625, Sweet Grass County (bridge) 156, Sweet Grass County (bridge) 156, Beaverhead County (bridge) 426, Beaverhead County (bridge) 426, Carbon County (bridge) 406, Carbon County (bridge) 406, Jefferson County (bridge) 218, Jefferson County (bridge) 218, Hebgen Lake Estates County Water & Sewer District (wastewater) 720, Hebgen Lake Estates County Water & Sewer District (wastewater) 720, Augusta Water & Sewer District (wastewater) 295, Augusta Water & Sewer District (wastewater) 295,000 $13,753,578 Funds 30 projects with $13,753,578 6 additional projects if money left over $100,000 for emergency grants $900,000 for infrastructure planning grants 1. Hardin, City of (water) $500, Hardin, City of (water) $500, Park County (bridge) 555, Park County (bridge) 555, Sheridan, Town of (wastewater) 750, Sheridan, Town of (wastewater) 750, Yellowstone County (bridge) 157, Yellowstone County (bridge) 157, Madison County (bridge) 699, Madison County (bridge) 699, Brady County Water & Sewer District (water) 750, Brady County Water & Sewer District (water) 750, Carter Chouteau County Water /Sewer District (water) 750, Carter Chouteau County Water /Sewer District (water) 750, Sun Prairie Village County Water /Sewer District (water) 625, Sun Prairie Village County Water /Sewer District (water) 625, Sweet Grass County (bridge) 156, Sweet Grass County (bridge) 156, Beaverhead County (bridge) 426, Beaverhead County (bridge) 426, Carbon County (bridge) 406, Carbon County (bridge) 406, Jefferson County (bridge) 218, Jefferson County (bridge) 218, Hebgen Lake Estates County Water & Sewer District (wastewater) 720, Hebgen Lake Estates County Water & Sewer District (wastewater) 720, Augusta Water & Sewer District (wastewater) 295, Augusta Water & Sewer District (wastewater) 295,000

HB351 – TSEP Cont. 15. Gallatin Gateway County Water & Sewer District (wastewater) 750, Gallatin Gateway County Water & Sewer District (wastewater) 750, Fergus County (bridge) 276, Fergus County (bridge) 276, Melrose Water & Sewer District (wastewater) 162, Melrose Water & Sewer District (wastewater) 162, Blaine County (bridge) 434, Blaine County (bridge) 434, Deer Lodge, City of (wastewater) 500, Deer Lodge, City of (wastewater) 500, Lincoln County (bridge) 287, Lincoln County (bridge) 287, West Yellowstone-Hebgen Basin Refuse Disposal District (solid waste) 246, West Yellowstone-Hebgen Basin Refuse Disposal District (solid waste) 246, Eureka, Town of (wastewater) 625, Eureka, Town of (wastewater) 625, Fairfield, Town of (water) 500, Fairfield, Town of (water) 500, Ravalli County (bridge) 142, Ravalli County (bridge) 142, Granite County (bridge) 276, Granite County (bridge) 276, Roundup, City of (water) 500, Roundup, City of (water) 500, Roberts Carbon County Water & Sewer District (wastewater) 500, Roberts Carbon County Water & Sewer District (wastewater) 500, Lockwood Water & Sewer District (wastewater) 750, Lockwood Water & Sewer District (wastewater) 750, North Havre County Water District (water) 590, North Havre County Water District (water) 590, Sand Coulee Water District (water) 200, Sand Coulee Water District (water) 200,966 If $$ Left Over 31. East Helena, City of (wastewater) 750, East Helena, City of (wastewater) 750, Bigfork Water & Sewer District (water) 750, Bigfork Water & Sewer District (water) 750, Custer County (wastewater) 750, Custer County (wastewater) 750, Crow Tribe for Crow Agency (water) 750, Crow Tribe for Crow Agency (water) 750, Hill County (bridge) 174, Hill County (bridge) 174, Polson, City of (water) 625, Polson, City of (water) 625,000 HB351 – TSEP Cont. 15. Gallatin Gateway County Water & Sewer District (wastewater) 750, Gallatin Gateway County Water & Sewer District (wastewater) 750, Fergus County (bridge) 276, Fergus County (bridge) 276, Melrose Water & Sewer District (wastewater) 162, Melrose Water & Sewer District (wastewater) 162, Blaine County (bridge) 434, Blaine County (bridge) 434, Deer Lodge, City of (wastewater) 500, Deer Lodge, City of (wastewater) 500, Lincoln County (bridge) 287, Lincoln County (bridge) 287, West Yellowstone-Hebgen Basin Refuse Disposal District (solid waste) 246, West Yellowstone-Hebgen Basin Refuse Disposal District (solid waste) 246, Eureka, Town of (wastewater) 625, Eureka, Town of (wastewater) 625, Fairfield, Town of (water) 500, Fairfield, Town of (water) 500, Ravalli County (bridge) 142, Ravalli County (bridge) 142, Granite County (bridge) 276, Granite County (bridge) 276, Roundup, City of (water) 500, Roundup, City of (water) 500, Roberts Carbon County Water & Sewer District (wastewater) 500, Roberts Carbon County Water & Sewer District (wastewater) 500, Lockwood Water & Sewer District (wastewater) 750, Lockwood Water & Sewer District (wastewater) 750, North Havre County Water District (water) 590, North Havre County Water District (water) 590, Sand Coulee Water District (water) 200, Sand Coulee Water District (water) 200,966 If $$ Left Over 31. East Helena, City of (wastewater) 750, East Helena, City of (wastewater) 750, Bigfork Water & Sewer District (water) 750, Bigfork Water & Sewer District (water) 750, Custer County (wastewater) 750, Custer County (wastewater) 750, Crow Tribe for Crow Agency (water) 750, Crow Tribe for Crow Agency (water) 750, Hill County (bridge) 174, Hill County (bridge) 174, Polson, City of (water) 625, Polson, City of (water) 625,000

House Bill 611(Rep. Cook) - Revise accounts to implement House Bill 2 Funds the Ag Development Centers for the next biennium at $195,000 per year. Funds come from the Research and Commercialization Account which is now down to a little more than $800,000 for the next two years House Bill 611(Rep. Cook) - Revise accounts to implement House Bill 2 Funds the Ag Development Centers for the next biennium at $195,000 per year. Funds come from the Research and Commercialization Account which is now down to a little more than $800,000 for the next two years

Senate Bill 294 (Sen. Buttrey) - Modifications to Primary Sector Workforce Training Program Lowers the wage threshold from the lower of the County or State average wage including benefits to; 170% of the minimum wage or the County average wage, whichever is lower Allows for part-time workers in primary sector companies to be eligible. 25 to 35 hours per week can apply for up to $2,500 Eliminates the Primary Sector Workforce Training Grant Review Committee – MDOC will make decisions with internal LRC. Senate Bill 294 (Sen. Buttrey) - Modifications to Primary Sector Workforce Training Program Lowers the wage threshold from the lower of the County or State average wage including benefits to; 170% of the minimum wage or the County average wage, whichever is lower Allows for part-time workers in primary sector companies to be eligible. 25 to 35 hours per week can apply for up to $2,500 Eliminates the Primary Sector Workforce Training Grant Review Committee – MDOC will make decisions with internal LRC.

ADDITIONAL BILLS LIST One Time Only Food & Ag Development Centers Previously funded at $250,000/year Funded through HB611; companion bill to HB2 Takes funding from Research and Commercialization Incumbent Worker Training Grant Program Utilized by BEAR, SBDC, MMEC Previously funded at $590,000/year One Time Only Food & Ag Development Centers Previously funded at $250,000/year Funded through HB611; companion bill to HB2 Takes funding from Research and Commercialization Incumbent Worker Training Grant Program Utilized by BEAR, SBDC, MMEC Previously funded at $590,000/year

ADDITIONAL BILLS LIST HB439: Bonding bill MEDA supported; sent letters, testified, alerted membership SB253: Eliminate certain tax credits MEDA opposed as first written; passed with amendments TIF BILLS HB439: Bonding bill MEDA supported; sent letters, testified, alerted membership SB253: Eliminate certain tax credits MEDA opposed as first written; passed with amendments TIF BILLS

Thanks to MEDA Legislative Committee: Rick Edwards, Chair; Dore Schwinden, Evan Barrett, Larry Mires, Brian Gion, Brett Doney, Terry Myhre, Paul Tuss, Jim Smitham, Jim Davison, Steve Arveschoug, Dick King, Tracy McIntyre, Sarah Converse, Philip Fletcher, Andy Poole, Tony Preite, Jim Atchison, Marie Fisher, Marcy Allen and Pam Lemer Thanks to MEDA Legislative Committee: Rick Edwards, Chair; Dore Schwinden, Evan Barrett, Larry Mires, Brian Gion, Brett Doney, Terry Myhre, Paul Tuss, Jim Smitham, Jim Davison, Steve Arveschoug, Dick King, Tracy McIntyre, Sarah Converse, Philip Fletcher, Andy Poole, Tony Preite, Jim Atchison, Marie Fisher, Marcy Allen and Pam Lemer