The Montana Supreme Court has upheld the constitutionality of the Governor making appointments to the Supreme Court and District Courts.

The decision is in response to a challenge to SB140, a recently enacted law that abolished the Judicial Nomination Commission. The commission that was responsible for screening applicants for vacancies on the Supreme Court and District Courts and forwarding nominees to the Governor for appointment to those vacancies.

SB 140 replaced the Commission with a process that allows the Governor to consider any applicant who received a letter of support from at least three adult Montana residents during a prescribed public comment period. The Judicial Nomination Commission was created by the 1973 Legislature in response to the enactment of Article VII, Section 8(2) of the 1972 Montana Constitution, which provides that “[f]or any vacancy in the office of supreme court justice or district court judge, the governor shall appoint a replacement from nominees selected in the manner provided by law.”

The Petitioners contended that Article VII, Section 8(2) required the creation of a separate commission or committee to screen applicants for judicial vacancies. The Petitioners argued that the purpose of Article VII, Section 8(2) was to ensure the appointment of quality judges who were free of political influence, and that the abolishment of the Commission violated that purpose by giving unfettered discretion to the Governor for appointing justices and judges.

Respondents argued that the plain language of Article VII, Section 8(2) gave the Legislature the discretion to prescribe the manner in which justices and judges are appointed and did not require an independent commission to screen applicants. The Court agreed with Petitioners that the purpose of Article VII, Section 8(2) was to ensure the appointment of good judges, and that the intent of the Framers of the Constitution had to be properly considered in determining a provision’s constitutionality.

After reviewing the transcripts from the Constitutional Convention, however, the Court concluded that neither the plain language of Article VII, Section 8(2), nor the Framers’ intent indicated that Article VII, Section 8(2) required an independent commission to screen applicants. Rather, the language of Article VII, Section 8(2) was a compromise among some Constitutional Convention Delegates who wanted a commission, and others who wanted to give more discretion to the Governor. The compromise delegated the process for making judicial appointments to the Legislature. Although the Court acknowledged that the Commission created by the 1973 Legislature had honored the constitutional objective of recruiting good judges to serve the citizens of Montana for the past forty-eight years, it was not the Court’s function to determine whether the Commission was a better process than SB 140 for making judicial appointments—it was to determine whether SB 140 complied with the language and constitutional intent of Article VII, Section 8(2).

The Court held that it does.

Justice Rice wrote a separate concurring opinion to condemn “the extraordinary, indeed, extraconstitutional, actions taken by the Legislature and the Department of Justice.

Justice Rice addressed at length the failure of the Legislature and the Department of Justice to “demonstrate a proper understanding of the Judiciary’s constitutional authority.” He addressed the historical importance to our constitutional system of government that requires each branch of government to respect the other branches’ constitutional authority, and the perils to our democracy when one branch of government ignores the constitutional separation of powers. Justice Rice also addressed the “duplicitous actions” engaged in by the Legislature’s attorneys in their filings with this Court.

Despite finding this conduct “dishonest and contemptuous,” Justice Rice assessed the merits of the issue before the Court and concurred with the Court’s decision that SB 140 is constitutional.

Justice McKinnon dissented from the Court’s decision. She concluded that SB 140 violated the plain language of Article VII, Section 8(2), which requires that “nominees [be] selected.” Justice McKinnon would hold that SB 140 establishes only an application process that is not a merit-based selection process as required by Article VII, Section 8(2). Noting that when interpreting constitutional provisions, the intent of the Framers is controlling, Justice McKinnon discussed Montana’s history of political corruption, executive overreach into the courts, and the constitutional provision itself, and would hold that applying well-established rules of construction for determining the Framers’ intent in reviewing Constitutional Convention Notes, prior legislative determinations regarding the Framers’ intent, and this Court’s precedent lead to a conclusion that SB 140 is unconstitutional.

Justice McKinnon concluded that the Framers of the 1972 Constitution intended to limit the Governor’s plenary power to make judicial appointments which existed under the 1889 Constitution. Justice McKinnon noted that at the core of the Framers’ convictions was an intent to preserve the integrity and independence of Montana’s judiciary, and to ensure that power was not disproportionately placed in one branch of government. Justice McKinnon concluded that SB 140, because it gives plenary power to the Governor to appoint judges from self-nominated applicants without an independent merit-based vetting process, is inconsistent with the Framers’ intent, and violates Montana’s Constitution

The Billings Breakfast Exchange Club and Anderson Management have been selected to serve alcohol at the First Interstate Arena at MetraPark. After a competitive bidding process, they were selected as the preferred vendors.

“We’re happy to welcome back Breakfast Exchange and excited to begin our relationship with Anderson Management,” said Tim Goodridge, MetraPark Assistant General Manager. “Working with these two organizations ensures great customer service and preserves the charitable capacity so important to our community.”

Interested vendors were invited to tour the First Interstate Arena and submit RFPs (request for proposals) to serve alcohol in the arena. The submitted RFPs were then evaluated by a selection committee and their recommendation was made to the county.

“The decision to bid out the alcohol sales contract, or any MetraPark contract, is not a critique of a partnership,” said Goodridge, “but an ongoing obligation, on behalf of the County, to regularly bid out contracts. This is standard business practice and state law that vendor contracts need to be revisited every so often as a matter of good government. As we start to think about the future of MetraPark and investing in new infrastructure, now is a good time to improve the way we do business overall.”

Has Billings Mayor Bill Cole Forgotten 1000 Workers in Yellowstone County?

By Alan Olson, Montana Petroleum Association

It was reported recently in the Billings Gazette that Mayor Cole was enthusiastically doing the obligatory political ribbon cutting thing to celebrate a new business venture in Billings. The new venture is in the business of selling electricity to fuel electric vehicles (EVs). This new business venture is on city owned property and paid for with public dollars. While I am not ideologically opposed to EVs, – I believe everyone has a market choice – but this ceremony was a little out of the ordinary. 

The Mayor definitely put his own spin on things. Rather than simply cutting a ribbon for this new public venture, Mayor Cole cut a gasoline hose with an electric saw while telling the crowd; “Today marks the beginning of a new era.”  “A small step forward on what I’m sure is going to be a long journey of electrifying personal transportation … in Montana and, yes, even in Billings.”

The Big Sky Business Journal’s Hot Sheet remarked Mayor Cole’s “ribbon cutting” was more a demonstration of “cutting of ties to carbon-based fuels, rather than a ribbon cutting.”

I hope Mayor Cole recognizes the contributions the three Yellowstone County refineries add to the Billings economy and the hard-working people that keep those refineries operating to supply fuel to his other constituents. I hope Mayor Cole recognizes that when those ties to carbon-based fuels are gone so will the jobs at the refineries be gone. Has Billings Mayor Bill Cole forgotten those 1000 workers in Yellowstone County? Surely, with the Biden Administration announcing plans to source metals from abroad, Mayor Cole does not believe refinery workers will find new employment in the EV business – does he?

Chase has named veteran banker Claudius Duncan as its market director of banking in Montana and Wyoming where the bank recently announced its market expansion.

Duncan and his family recently relocated to Cheyenne from Buena Park, where he led a team of bankers serving Chase customers in California. He brings nearly 15 years of banking leadership to his new role, and has been with Chase since 2007.

A graduate of Johnson & Wales University, Duncan earned his associate degree in Science Business Administration in 2004. He also holds a Bachelor of Science degree in Business Operations Management.

“Claudius’s experience working as a New Build & In-Store Sales & Strategy Support Manager, coupled with his proven leadership skills, position him well to lead our market expansion teams in Montana and Wyoming,” said Dan Deegan,  head of market expansion for JPMorgan Chase.

Duncan is an active member of the community. He currently enjoys serving on the Boys and Girls Club of America, Diversity & Inclusion Council and the JPMorgan Chase Black Organization for Leadership Development. Most recently, while still in CA, he also coached his children’s soccer and basketball teams at the local YMCA.

By Michael A Vondra, Certified Financial Planner Practitioner Edward Jones

If you’re a dad, you may be in line to get some nice gifts on Father’s Day. But your greatest gift may be your ability to help your children. One way of doing that is to get them started in the world of investing – and making a few investments on their behalf.

Here are three possibilities:

— 529 plan – If you invest in a 529 education savings plan, your earnings can grow federally tax-free, provided the money is used for qualified educational expenses. (Withdrawals not used for these expenses will generally incur taxes and penalties on investment earnings.) If you invest in your own state’s 529 plan, you might receive some state tax benefits, too, depending on how your state’s tax laws apply to 529 plans. State-by-state tax treatment may vary, so you’ll need to consult with your tax professional about your situation.

Provided you stay within certain limits, you can also use a 529 plan to pay for qualified K-12 expenses and registered apprenticeship programs. And you can even use it to repay certain qualified student loans, within limits.

A 529 plan can affect financial aid, but its effect is generally lower than that of other assets. And as the account owner, you have control of your 529, so, if one child decides not to go to college or pursue further education, you can switch beneficiaries. 

—UGMA/ UTMA account – When you establish a special type of custodial account known as either UGMA (Uniform Gift to Minors Act) or UTMA (Uniform Transfers to Minors Act), you are providing financial resources that can be used for education or another purpose that benefits your child, such as summer programs.

One potential benefit of an UGMA or UTMA is that some of the earnings will be taxed at the child’s rate, which is likely lower than your own. Plus, UGMA/UTMA accounts typically allow a wide range of investment choices. However, once children reach the age of majority (typically 18 or 21) they gain complete access to the money and can do whatever they want with it. 

— IRA – A child with any taxable compensation, such as money from an after-school job, is eligible to fund an IRA. You may want to open one on your child’s behalf – and you can “sweeten” the offer by matching some of their contributions. You can’t directly invest in the IRA, but you can give your child money for that purpose. Keep in mind, though, that the total amount contributed can’t exceed your child’s taxable compensation for the year.

An IRA is a great introduction to the world of investing. For one thing, your child can make small contributions throughout the year, so investing in an IRA doesn’t seem burdensome. Also, since an IRA can be invested in different types of securities, your child can learn about various investment vehicles – stocks, bonds, mutual funds and so on. Plus, you can point out that, with a traditional IRA, taxes won’t be due on the earnings until your child starts taking withdrawals decades from now. (And with a Roth IRA, withdrawals are tax-free, provided certain conditions are met.)

On Father’s Day, you can show your appreciation for whatever gifts you receive from your children. But by investing in their future, you can gain some longer-term contentment.  

The Center Square

Republican-led states and Vermont reported the lowest unemployment rates in April, according to a new report by the U.S. Commerce Department. States led by Democratic governors recorded the highest jobless rates, according to the report.

Unemployment rates were lower in April in 12 states and the District of Columbia and stable in 38 states, according to the U.S. Bureau of Labor Statistics.

States with the highest unemployment rates in April were Hawaii (8.5%), California (8.3%), New Mexico and New York (both at 8.2%), and Connecticut (8.1%). All five states with the highest unemployment are run by Democratic trifectas, meaning Democrats control the governor’s office and both houses of the state legislature.

The four states with the lowest jobless rates in April were all run by Republican trifectas: Nebraska, New Hampshire, South Dakota and Utah, with 2.8% each. Vermont, with a Republican governor and a Democratic-controlled state House and Senate, ranked fifth-best with an unemployment rate of 2.9%.

Overall, 31 states had unemployment rates lower than the U.S. national average of 6.1%. The majority – 26 – are Republican-led states. Of the 19 states and the District of Columbia with jobless rates higher than the national average, 14 are led by Democrats.

However, the three largest unemployment rate decreases year-over-year from April 2020 to April 2021 occurred in blue states: Nevada, (down 21.5%), Michigan (down 18.7%), and Hawaii (down 13.4%). Ten other states also saw declines of 10% or more.

The report came out as the Dallas Federal Reserve reported lowered expectations for May job growth.

Dallas Federal Reserve President Robert Kaplan said that hiring difficulties have continued through May and will likely lead to another weak jobs report following the lower-than-expected 266,000 positions added in April. The next jobs report is expected to be published June 4.

According to a Dallas Fed survey, weakening job growth is attributed to several factors, including extended additional federal unemployment payments and a lack of childcare options for working parents.

“These structural issues, which we saw in the report for April … all those tensions are not going to go away” immediately, Kaplan said at a Dallas Fed conference on technology. “We think you are going to see another odd or unusual report. … Businesses are telling us they got plenty of demand, but they cannot find workers either skilled or unskilled.”

Republican governors in at least 22 states moved to drop the additional federal payment in response to businesses having difficulty finding people to hire because they were making more or enough money receiving unemployment checks than working. Texas was among the last to do so last week.

A Montanan, Tracy Stone-Manning of Missoula has been nominated by President Biden to be Director of the Bureau of Land Management (BLM). The appointment has stirred concern by the Montana Petroleum Association (MPA) which points to Stone-Manning’s recent testimony before a natural resources committee about the way the BLM manages public lands regarding oil and gas leasing.

She erroneously told the committee that BLM-managed lands leased for oil and gas development, force the Interior Department to manage those lands predominantly for oil and gas development rather than addressing the needs of people and wildlife, claims Alan Olson, Executive Director of the MPA, in a recent release.

Only 3.7% of the 700 million acres of BLM managed Federal minerals are under lease. Lands under active production amounted to only 1.8% at the end of FY 2018. Even the lands that are under lease are not managed predominantly for oil and gas development in Montana, stated Olson. As a matter of fact, these lands are still open for recreation as well as grazing and timber unless those activities too are tied up in litigation. As for wildlife issues, many Federal oil and gas leases contain stipulations to accommodate wildlife from seasonal use restrictions to going as far as to prohibit surface occupancy. So, there is management outside and over the mineral lease itself for recreation and wildlife, said Olson.

Stone-Manning is Senior Advisor for Conservation Policy and the National Wildlife Federation. She has been described as a “longtime environmental advocate and Democratic aide”, having served as chief of staff for former Gov. Steve Bullock and as an aide to Democratic Sen. Jon Tester. She was also formerly a  spokesperson for the environmental group Earth First.

The BLM functions within the Interior Department and has jurisdiction over about a quarter-billion acres and one-third of the nation’s underground minerals, including oil, natural gas and coal reserves. The agency regulates drilling, mining, grazing and other activities.

In her testimony, Stone-Manning lamented that there are already 7,600 unused drilling permits issued, why lease more federal minerals? Olson responded, “Many of those permits are sitting in suspension. Some are suspended due to litigation by organizations such as the National Wildlife Federation and other environmental groups. Other permits are sitting due to the current economics of the industry. But at the end of the day those permits still brought in over $82 million in just permit fees not counting lease bonus fees and annual rental payments. In contrast, BLM permit fees are 72 to 400 times the cost of a comparable State of Montana permit for the same depth of well on State or private minerals.”

Prior to the COVID pandemic, in 2018 BLM lease sales generated over $1.1 billion in revenue from oil and gas lease bonus bids, first-year rental fees, and administrative fees while costing the BLM about $165 million appropriated from Congress in FY 2018 for a return of 85%. In 2020 the royalty payments to the Federal Government brought in $4.6 billion additionally over leasing and permitting revenue. Annual revenues provided to the U.S. Treasury through Federal mineral development is second only to that provided by the Internal Revenue Service, pointed out Olson.

Lands managed by the BLM are for the most part, to be managed for multiple use. Multiple use means just that, multiple, many, numerous, various, uses. Not just for one segment of the population but within reason, all uses. Oil and gas leases on less than 4% of the Federal mineral estate do not prevent other uses for the same lands. We are hoping Ms. Stone-Manning will see the positive impacts from the BLM’s minerals management.

The Center Square

Recent experiences in three states provide an insight into how problematic President Joe Biden’s push for renewable energy could be for electric customers nationwide, according to a new report from Power the Future.

The report, titled “Lights Out: How Green Mandates are Undermining the Affordability and Reliability of Electricity,” was written by Larry Behrens, western states director for Power the Future, a nonprofit trade group that speaks for oil and gas workers.

“One thing is clear. The Biden Administration is misleading the American people to impose the Green Agenda,” Behrens said. “Biden can’t achieve his pledge with stifling bureaucratic manipulation in every sector of the market.”

To examine the impact Biden’s policies could have on the country, Behrens looked at scenarios in Texas, California and New Mexico, where more dependence on renewable energy has failed customers.

Texas in mid-February experienced winter storms and record low temperatures that left millions without power and claimed more than 100 lives.

“One factor stood out among the rest,” Behrens said. “The state’s heavy reliance on and subsidization of wind power came up empty at a critical time.”

According to data from the Electric Reliability Corporation of Texas, wind provided 42% of the state’s electricity on Feb. 7. By Feb. 11, when the storms first hit, that fell to 8% as turbines froze. Coal and natural gas plants increased output by 47% and 450%, respectively, to meet increased demand.

In California, state law requires utilities to purchase 50% of their electricity from renewables by 2026. As a result, over the past decade electric bills there increased 30%, seven times more than the national average.

New Mexico’s Energy Transition Act, signed in 2019, required utilities to have 20% of all electricity sales from renewables by 2020. The Public Service Company of New Mexico, the state’s largest utility, missed the mark, and plans to close the state’s largest coal plant next year, costing the local economy hundreds of jobs and millions of dollars in tax revenue.

PNM has also said 75% of customers’ electricity needs will come from renewables by 2025.

“This claim strains credulity coming from a company that failed to meet the state’s 2020 renewable target,” Behrens said.

According to the Associated Press, last August, days after New Mexico Gov. Michelle Lujan Grisham stood by a solar panel installation in Albuquerque praising renewables, PNM took to social media to ask customers to cut back on air conditioning while temperatures increased due to concerns about cloud cover leading to reduced solar generation.

“The lessons learned from these states’ experiences with renewable energy should be pushing policymakers across the country to reject top-down green central planning of the electrical grid,” Behrens said. “But that doesn’t appear to be happening.”

After 100 years serving the families and businesses of North Dakota and Montana with a full range of banking, trust, investment and insurance services, Beartooth Bank, a division of American Bank Center, is changing its name to Bravera Bank. The new name, along with a new logo, tagline and visual identity, will launch this Fall. The change in brand does not reflect a change in ownership, as Bravera Bank is still employee- and director-owned. 

 In recent years, American Bank Center has grown, expanding its network of branches across North Dakota and Montana. Its growth represents a continued investment in the region’s strong future, competitively positioning the bank to serve customers with more resources, a greater geographic reach and a broader promise to new people moving into the area. The new name unifies the current network and creates a consistent banking experience all under one brand: Bravera Bank.

 “We are so proud to unite our banks under a new name and brand experience that reflects our bank’s strong future,” says Cill Skabo, American’s Chief Marketing Officer. “Bravera is a distinct and unforgettable name that captures our spirit and helps us stand out and connect with our customers and communities.”

 The word Bravera combines “Bravery” and “Truth” for a new name with strong ties to the pioneer spirit and honest values that define the northern plains. The new name will be accompanied by a new logo, look and feel that will touch every part of the bank’s experience, from signage in the branches and the bank’s website to brand communications and advertising.

 “The move to the Bravera Bank name is exciting and delivers on our mission of embodying a financial institution that supports the growth of the region’s future. From Bismarck to Billings, Dickinson to Devils Lake, we see tremendous opportunity in helping our customers forge success, under a single, powerful brand name,” says David Ehlis, American Bancor President and CEO.

John Vogel recently joined Stockman Wealth Management as a Junior Portfolio Manager in Billings. His responsibilities include financial planning, investment account management, economic analysis, and business development.

Vogel brings over three years of financial industry experience to the position, which includes portfolio management and analysis. He holds his Series 7, Series 66 and Life and Health Insurance licenses and will be working towards the designation of Certified Financial Planner certification as well.

Vogel earned his Bachelor of Science degree in finance from Montana State University in Bozeman in the fall of 2018. He is located at 402 N Broadway and can be reached at 406-896-4853.

 Stockman Wealth Management is a SEC Registered Investment Adviser and a wholly owned subsidiary of Stockman Financial Corp., a family owned bank holding company serving the banking and investment needs of customers throughout the region.