MLA Legislative Representation – Jason Todhunter

This series of articles focus on the MLA’s origins and the continued commitment to the industry since 1976.

MLA Legislative Representation When Montana loggers formed the Montana Logging Association (MLA) in 1976, one of the most pressing challenges facing the industry was the state’s workers’ compensation system.  Although there were many other issues going on at the time – including a new state forest practices act being discussed and the rise of radical anti-logging activist groups, the instability of the workers’ compensation program was a primary catalyst for creating the MLA.

  According to some knowledgeable sources, these problems started with the Burton Commission under the Nixon administration. States were directed to modernize their work comp systems and follow the directions from the feds or risk federal takeover.  Many states like Montana adopted these recommendations which greatly increased claim costs and worker benefits. At the time, however, the Old State Fund was run by the Department of Labor and Industry (DLI).  The DLI set the rates which were greatly influenced by the legislature and or the Governor’s office.  This meant the that an unfunded liability was being created with artificially lower rates than the cost of the benefits. The other result from this was most private carriers were running away from Montana which meant more to the old fund and more liabilities for Montana.

By 1981, the system had reached a full crisis. The newly appointed MLA Executive, Keith Olson, was directed to closely monitor the Senate and House Business and Labor Committees. As Keith recalled, “I went to the Capitol as a forester, and with the help of some key folks like George Wood, by the end of the ’81 session, I was a lobbyist.”

Olson also noted the urgent need for improved industry safety. “It was hard to stand in a committee and complain about comp rates when another article in the newspaper reported a logger being killed,” he explained. “We knew we had to address the safety side of the issue as well.”  This led to the creation of the MLA Safety Program in the mid-1980s. Through the commitment of the industry and its professional loggers, safety improved dramatically. Today’s safety culture—whether in line operations or conventional logging—is vastly stronger than it was during that earlier era.

More Than Just Work Comp While workers’ comp was a huge focus, it wasn’t the only issue. Health insurance was another major challenge. The MLA eventually developed a strong association health plan for its members — and then had to fight to protect it.

From what?  Well, there are always legislators that were pushing health mandates which means you can’t buy a health insurance plan unless it covered this or that, or someone’s latest pet project. Each new mandate drove up costs and the MLA would regularly oppose them.  I remember one session where if all the mandates would have passed, health insurance would have went up over 30%! 

We were successful until the Affordable Care Act (Obamacare) passed in 2010. By 2014 the MLA Association Health plan became a thing of the past.  Some people may have benefited, but the data I’ve seen shows individual policy costs more than doubled by 2019, and they’ve continued climbing ever since.

Forest Practices, BMPs, and the SMZ Law By 1987 work comp was still a major issue, but a new fight was heating up over forest practices.  Many legislators who were introducing California-style forest practices rules where you almost had to hire an attorney to log your own property!  There also were some bad actors out there who made our industry look bad and there needed to be some guidance. 

That same year, Congress amended the Clean Water Act and added Section 319 to address non-point sources of pollution (this includes things like logging!).  That same year the Montana Legislature passed with a lot of work HJR 49 which directed the Environmental Quality Council to study “how current forest management practices are affecting watersheds in Montana”. 

The EQC established a BMP tech committee, by 1989, released the revised Forestry Best Management Practices (BMP’s).  Key contributors included Keith Olson and Bud Clinch with the MLA.  These BMPs have been revised very little since then and have proven to be arguably one of the most successful voluntary laws ever implemented.  They have been copied by other states and even Russia!

The BMPs were successful but there was still concern about damage to streams from timber harvest.  This was addressed by the SMZ law to protect water quality and provide a buffer adjacent to a stream for fish and wildlife habitat.  This law also was contentious at the time with certainly not everyone on the forestry/logging side agreeing.  This law however was passed in 1991 and went into effect in 1993 after the administrative rules were passed. 

Once again, the MLA was deeply involved with the entire process making it workable and simple that it is easy to follow and still allows management adjacent to the stream.  The passage and success of this law put to bed the talk of a forest practices act which with the political makeup of the time certainly would have eventually passed.  Considering how those laws have played out in other states, we can be grateful for the foresight shown by MLA leadership at the time.

Business Equipment Tax (BET)Another long-running issue was Montana’s regressive Business Equipment Tax (BET).  This tax was once as high as 12%.  Think about that with the cost of today’s logging equipment!  If you had 2 million dollars’ worth of business equipment that tax bill every year would be $240,000 at that rate! 

Thankfully over the years it has kept coming down.  During my first session in 2005 the BET was frozen at 3% for any business that had over $20k in business equipment.  This meant most all loggers were still paying as it even then didn’t take much iron to get to $20k.  By the 2023 session your equipment is exempt for the first $1 million of equipment, 1.5 percent for values up to $6 million, and 3 percent thereafter.  The only reason this tax is still here is trying to keep some pressure off the homeowner’s property tax. 

Workers’ Comp Reform — OngoingWork comp meanwhile went through a lot of changes with the forming of the New Fund in 1990 which was actuarily controlled; a new tax named OFLT on your check to pay off the old fund liabilities.  Some Montana loggers formed the MLE, which was their own insurance plan to deal with still high rates.  Several companies from that group, which dissolved, are still active and are now insured with the Associated Loggers Exchange, a very successful work comp carrier based in Idaho.  

In 2009 an interim study was authorized to examine workers’ compensation reform.  It was represented by labor groups, and businesses, insurance companies, medical folks and was run by the Department of Labor and Industry.  The work from this group produced HB 334 which is the biggest work comp reform since 1990.  This has resulted in a 20-30% reduction in comp rates for Montana businesses with little reduction of benefits for injured workers.  Since it passed there has been a constant effort to undo these reforms so the battle goes on.  Bottom line comp is down to about a third of what it was at its high. One common factor throughout this legislative history is the MLA has been at the table helping guide policy toward outcomes that protect our industry and try to keep work comp affordable for our industry. 

MEPA and Ongoing BattlesThe MLA has tackled other key legislative victories critical to the industry.  One was MEPA (Montana Environmental Policy Act) reform.  This law was designed to be a look before you leap law and is procedural rather than substantive law.   This took some reform to the language and both Keith and Patrick Heffernan were involved with this.  In my early lobbying time, there were several bills we worked hard to kill that would have undone this past fix.  If my memory is correct, the last one was 2007 session. If this had not been fixed, or the fix would have been undone, State timber sales would be as easy to litigate as the Fed ones are!  Think about that!

The MLA is also currently actively engaged in efforts to clarify the 310 Law and SMZ statute, as some conservation districts are not thinking the SMZ law is adequate and they want to have conservation districts involved in timber harvest decisions.  In the time I have been involved with the legislature for the MLA, the MLA members have been involved providing input on issues and even coming to Helena to testify on bills; together we have made a meaningful difference in shaping the policies that affect Montana’s logging industry.

Representation Over the years, MLA members have stepped up to participate in state government.  A few include MLA past presidents; Clyde Smith, Bill Crismore and Sherm Anderson. Most recently, MLA Kootenai Chapter member Chas Vincent representing Lincoln County.  Kelly Gebhardt, out of Roundup, Jerry Bennett of Libby and Pat Connell from Hamilton also served terms in Helena. The MLA has been represented by only a few registered lobbyists, Keith Olson, Bud Clinch, Patrick Heffernan, Julia Altemus and currently, me, Jason Todhunter.

Looking Back When you look at the last 50 years, it’s remarkable that one issue — workers’ compensation — brought Montana loggers together and helped build an association capable of taking on so many challenges. Because of that early leadership and the willingness of loggers to stand together, the MLA has spent five decades protecting, strengthening, and advancing this profession we proudly call logging.

Some pictures of the MLA's past and present lobbyist and MLA members that were elected to represent their respective districts.