A Direct Line Blog

By Karen Smith, MCU SVP & Chief Advocacy Officer

As the Montana Legislature nears the halfway point, lawmakers are focused on fulfilling their primary constitutional responsibility: producing a balanced budget. This requirement dictates that spending cannot exceed projected income, plus any reserves carried over from previous years. To meet this goal, the joint subcommittees of the House Appropriations and Senate Finance Committee have been holding hearings to review executive agency budgets and proposed new programs, ensuring that the state stays within its financial limits. These subcommittees are working diligently to shape the budget, which will ultimately dictate the priorities for the remainder of the session.

Despite some continued tensions in the Senate, bills are beginning to make their way through committees and are now being heard on the floor for debate. While the Senate’s internal struggles have slowed things down, there’s a growing sense of urgency as the transmittal date rapidly approaches. For those unfamiliar with the legislative calendar, the transmittal date is the deadline by which bills must pass their chamber of origin. For this session, that date is March 7. To meet the cut-off, bills need to be in legal review by February 27. If they don’t make the deadline, they are effectively dead, though some may be resurrected under certain circumstances.

At Montana’s Credit Unions, we’re closely monitoring several pieces of legislation that could significantly impact our industry, with key proposals expected for consideration in the next week or two. So far, we’ve issued two calls to action urging Advocacy Champions to testify on important bills like SB 176 and SB 240, and we’ve also sent out inquiries to assess how certain bills may affect our credit unions.

Key Bills

Montana’s Credit Unions generally take no position on firearms unless business operations are at risk. However, two proposed bills — SB 176 and SB 240 — present significant threats.

• SB 176 aims to prevent discrimination against firearm owners and related businesses in financial services, requiring credit unions to submit a “certificate of nondiscrimination” when applying for licenses. Noncompliance could lead to fines, lawsuits, and reputational damage. Additionally, policies like “no firearms allowed” signage could be viewed as discriminatory, exposing credit unions to legal risks and penalties.
• SB 240, the “Equality in Financial Services Act,” imposes excessive regulatory burdens, attempting to dictate core business decisions based on societal values. It mandates clear explanations for service denials, prohibits discrimination based on social credit scores, and allows individuals to seek damages for violations. This bill, effective July 1, 2025, also includes penalties for non-compliance and ensures that any invalidated parts do not affect the rest of the law.

We’re in the thick of things, and while there’s still plenty to be done, we continue to ensure credit unions’ voices are heard loud and clear as the session progresses. For real-time updates on the legislative bills that impact our industry, check our current bill tracking list.

Stay tuned for more updates, and as always, feel free to reach out to me with any questions you may have about the legislative landscape, and be sure to listen to the transmittal update podcast episode. Your engagement is more important than ever as we head into the final stretch before the transmittal date.

Looking Ahead: America’s Credit Unions GAC 2025

We are excited to have a fantastic group representing Montana’s credit unions at GAC 2025 in Washington, DC next week! It’s shaping up to be an incredible week filled with informative sessions, networking opportunities, impactful Hill visits, and of course, plenty of fun. We can’t wait to connect with fellow credit union advocates from across the country as we continue to amplify our voices and advocate for the movement. Stay tuned for more details as the event approaches!