From Oil Patch Hotline

The North Dakota State Supreme Court last week backed up the contention of mineral owners along the edge of Missouri River near Williston that the state wrongly grabbed their mineral ownership and the result could be a huge payout.

The State does not have any claim or hold title as sovereign lands to any minerals above the Ordinary High Water Mark of the historical Missouri riverbed channel, the court said about the  William S. Wilkinson case brought against the ND Dept. of Trust Lands, Statoil, Brigham Oil and Gas and others.

“I t’s a historic win for North Dakota mineral owners/landowners against the State, said attorney Josh Swanson.  “The Supreme Court categorically rejected all of the State’s arguments, affirmed the fact that the Wilkinsons own the minerals, and is allowing the Wilkinsons to go back to the district court to pursue money damages against the State.”

As much as $1 million could be distributed to 14 mineral owners on 286 acres on the edge of Missouri River.

Protect Our Care Montana was joined by Reps. Debo Powers and Dave Fern, Executive Director of Flathead Community Health Center, Mary Sterhan, and Kalispell City Councilman Kyle Watermen on an a call to discuss the new healthcare navigator grant program during a meeting that recognized the third anniversary of Senator John McCain’s thumbs-down vote to that would have repealed Affordable Care Act. 

 Speakers spoke with elected leaders supporting ongoing efforts to eliminate the Affordable Care Act in court. They said that the stakes have never been higher to protect the Affordable Care Act and Montana’s Medicaid, given the current concerns about COVID-19. 

 Waterman, councilman for Ward 3 in Kalispell, called upon his experiences working with Montanans facing health challenges, “Medicaid expansion has allowed us to expand services in our community and move care upstream for issues like mental health.”

Discussing Montana’s Medicaid program and the change it’s brought to the Flathead area, Sterhan emphasized the impact Medicaid expansion has had on the state. She pointed out that programs like Montana’s Medicaid allow healthcare providers, like her, to approach health holistically and begin working with patients early instead of having to provide emergency or critical care later. 

 Sterhan also applauded Governor Steve Bullock’s announcement of $1 million health coverage Navigator grant program in the state. She confirmed Flathead Community Health currently has two navigators working with the public and the patients and will be applying for grant funds to increase that outreach. 

 Reps. Powers and Fern lauded the impact the ACA has had in their community and stressed what they believe would be the unintended impacts of repeal, including economic hardship for nearly 90,000 as they struggle to find healthcare.

The following Montana Bank Board appointments have been announced.

* Bill Davies, Billings. Qualification: Active officer of a national bank doing business in Montana. Davies is the Regional President for the Montana Northwest Wyoming Region for U.S. Bank.

* Tony Ennenga, Bozeman. Qualification: Member of the public who is not an officer, director or shareholder of a bank. Ennenga is a Certified Public Accountant in private practice.

* Tom Swenson, Missoula. Qualification: Active officer in state bank of Montana. Swenson is the Founder, Director and CEO of Bank of Montana and Bancorp of Montana Holding Company.

The Center Square

On June 30, the U.S. Supreme Court ruled in a 5-4 opinion that the application of Article X, Section 6, of Montana’s Constitution (Montana’s Blaine Amendment) violated the free exercise clause of the U.S. Constitution. The majority held that the application of the state’s Blaine Amendment was unconstitutional because it barred religious schools and parents who wished to send their children to those schools from receiving public benefits because of the religious character of the school.

Blaine Amendments refer to language in state constitutions that prohibit public funding for schools or educational institutions run by religious organizations. The language in each state constitution varies. Blaine Amendments are named after an amendment to the U.S. Constitution—sponsored by James Gillespie Blaine—that was proposed but never passed.

Thirty-seven states have Blaine Amendments in their constitutions as of 2020. Louisiana’s Blaine Amendment was repealed by voters in 1974.

In 31 states, the existing versions of Blaine Amendments were included when the state’s most recent constitution or constitutional revision was ratified by voters, which means voters did not vote specifically on the Blaine Amendment but rather considered an entirely new constitution or a larger set of revisions that contained the Blaine Amendment language. In six states, Blaine Amendments were added through specific constitutional amendments, at least three of which were referred to the ballot by constitutional revision commissions.

In Utah and South Carolina, the states’ Blaine Amendments were amended to remove the prohibition against indirect public funding of religious schools, leaving a prohibition against direct public funding.

By Dan Nordberg and Brent Donnelly

As leaders within the U.S. Small Business Administration (SBA), we have the privilege to partner with businesses and entrepreneurs pursuing their American Dream – even amidst extreme challenges. Last week, we visited Bozeman, Butte, and Belgrade to learn how local businesses are weathering the pandemic, and we were encouraged to hear about the ways so many not only kept their businesses viable but went above and beyond to support their community.

Take Bridger Brewing Company, for example. Known in the area for locally sourced pizza and brews, Bridger has made community partnerships a central component of their business model. When the coronavirus pandemic impaired their ability to continue business-as-usual, Bridger applied for a Paycheck Protection Program (PPP) loan through the SBA to supplement their income and keep their employees on payroll. Because of the financial flexibility provided by this loan, the restaurant committed to serving their community in one of the ways they know best: they delivered free pizza to fire stations, non-profits, and other first responders.

Mountain Hot Tub was also impacted by the economic challenges of recent months. An integral part of local tourism efforts, Mountain Hot Tubs experienced challenges based on the supply chains of national manufacturers. Though business was uncertain and they weren’t getting the inventory they needed, the hot tub retailer was able to bring back their entire staff through the help of a PPP loan. Kelly King, Mountain Hot Tubs’ co-owner and president, said the PPP allowed them to change their mindset from insecurity to innovation, and they utilized the time of reduced sales to dig into business strategy and consider opportunities for forward advancement.

These stories are just a few that demonstrate the incredible actions of your business community, and the SBA is honored to play a part in making them possible. In recent months, more than 30,000 Montana businesses have received over $2.2 billion in SBA loans. These dollars fueled local economies, made sure families continued to receive paychecks, and kept hometown businesses afloat.

Visiting your region, we were reminded that so much good is happening despite the challenges around us. People are giving back to the community. Neighbors are helping neighbors. Companies are going the extra mile. Yes, times are tough, but by investing in local businesses, we’re truly building a foundation for a stronger tomorrow.

We are profoundly grateful to your local business community for hosting us last week. Together, we’ll continue empowering Montana entrepreneurs to serve their hometowns and pursue their American Dream. To learn more about the PPP or other SBA programs, visit sba.gov/mt.

Dan Nordberg serves as the National Director for Rural Affairs for the U.S. Small Business Administration, and Brent Donnelly serves as Director for the SBA Montana District Office.

Following recommendations from the Northwest Commission on Colleges and Universities’  Seven Year Mission Fulfillment and Sustainability Evaluation of MSU Billings which occurred in 2018, MSU Billings received a glowing report from the NWCCU’s virtual visit this past April, commending the university for turning the ship around in such a short amount of time.

President Trump issued an executive order to expand access to telehealth services for millions of Americans—especially those living in rural communities.

“The Trump Administration has cut red tape allowing telehealth services for seniors and for other Americans,” Press Secretary Kayleigh McEnany said at a news briefing. “Thirty-five percent of Medicare beneficiaries took advantage of the President’s reform.”

The executive order calls for more investments into Rural America’s communications infrastructure to better support telehealth. As a result, more Americans would have access to the kind of affordable, personalized care that puts the patient in control. President Trump issued an executive order to expand access to telehealth services for millions of Americans—especially those living in rural communities.

“The Trump Administration has cut red tape allowing telehealth services for seniors and for other Americans,” Press Secretary Kayleigh McEnany said at a news briefing. “Thirty-five percent of Medicare beneficiaries took advantage of the President’s reform.”

The executive order calls for more investments into Rural America’s communications infrastructure to better support telehealth. As a result, more Americans would have access to the kind of affordable, personalized care that puts the patient in control.

In a state-by-state breakdown of positivity rates, in testing for the COVID -19 virus in nursing homes, Montana is in the lowest category – those states with less than a five percent positive rate.

The study was released by American Health Care Association and National Center for Assisted Living. With 71 nursing homes, Montana’s positivity rate is 4.2 percent.

The agencies are concerned about the 33 states that have positivity rates higher than 5 percent- – ranging from Arizona with 22.7 percent to Oregon with 5.1 percent. Maine and Vermont have the lowest rates at 0.7 percent.

Since July 26, there are 33 states with a positive test rate of over five percent, underscoring the need for increased testing and PPE to keep the virus from spreading.  Many states still have a significant percentage of facilities without vital PPE, including N95 masks, surgical masks, and gowns, according to the Centers for Medicare & Medicaid Services (CMS)

 On July 22, 2020, the CMS announced that, “[they] will begin requiring, rather than recommending, that all nursing homes in states with a 5% positivity rate or greater test all nursing home staff each week.” If implemented today, 11,640 nursing homes would be required to conduct such weekly testing.

 AHCA/NCAL represents more than 14,000 nursing homes and assisted living facilities. 

District Court Judge Rod Souza rejected a request by the Montana Race Horse Owners and Breeders Coalition, (MRHOBC), to place an injunction against Yellowstone County to halt the demolition of the Grandstands at Metra Park.

The MRHOBC claimed that the County Commissioners did not attempt to explore the potential of placing the Grandstands on the National Register of Historic Places and that the demolition would irreparably harm horse racers and breeders.

The county rebutted that commissioners followed proper legal procedures over many months, in deciding to demolish the Grandstands. They also pointed out that the decision to demolish them was made over four months ago, during which time there was no response by MRHOBC. And, also that the county commissioners were not obligated to pursue the historical status.

Jeana Lervick, Chief In-House Counsel for the County Attorney’s office, said in the county’s rebuttal, “Plaintiff is not irreparably harmed and there is no emergency warranting the Court’s intervention.” She pointed out that Dan Fuchs, President of MRHOBC, had several times spoken to commissioners and others at public meetings about his organization’s interests and concerns. The county encouraged them to participate in an on-going planning process for the future.

On behalf of the county, Lervick asked that the court make a decision without holding a hearing.

After explaining that the court is not allowed to skip a hearing process, Judge Souza held a hearing on Friday after which he concluded that the county was acting within its authority to demolish the grandstands. He said, “…the Coalition’s interests may be met by participating in the public planning process.” Also, he stated, “As the County argued at hearing, disagreement with the Commissioners’ decision does not create a legal basis for the extraordinary remedy of injunction.”

Souza also pointed out that the Coalition was making arguments “that are not appropriate for the judiciary. . . judiciary action cannot be based on disagreement with policy decisions…Commissioners’ decision to demolish the Grandstands is a political question.”

MRHOBC is anticipating being able to finance horseracing in the future through Historical Horseracing gambling proceeds and the group hopes to resume horseracing at the Grandstands next year. It’s been nine years since there has been horseracing in Yellowstone County.

Fuchs said, after hearing the court’s decision, that the commissioners have yet to justify to taxpayers about a failure to take advantage of potential grants that are available through the historical registration process that could help refurbish the grandstands.

Lervick commented about the decision, “The Commissioners are glad to proceed with their plans and are hopeful that the Association and community will voice their hopes for what the future of MetraPark will hold.”

Newly taxable property – largely comprised of new construction—amounted to $6,955,867 in Yellowstone County, helping to boost total taxable value in the county to $396,628,206, based upon a total market value of all real property in the county of $21.8 billion. (Taxable value is a modified sum,  different than market value.)

The new taxable property compensated for a slight decline in total taxable value this year for the county due mostly to adjustments to centrally assessed properties that resulted in a slight contraction, according to Yellowstone County Finance Director Kevan Bryan.

Bryan compared that to Gallatin County, which grew five times more and “continues to lead the state in valuation.”

Because of the newly taxable property the total taxable value for Yellowstone County increased 1.8 percent, including adjustment for inflation of just over one percent.

Last year, the total taxable value — based on $21.6 billion in market value of property in the county — was $391,347,690.  

Given the taxable property value, taxpayers will see a levy of 96.45 mills on their tax bills, up just a bit from 95.18 mills last year. Bryan said that that amounts to an increase of about $1.35 on a $100,000 house.

County revenue will increase about $1 million, which gets disbursed to dozens of department budgets from the General Fund and the Bridge fund to Weed, Seniors, Extension Service, Sheriff’s Department, etc.

Total County Budget is $56 million.