Committee Requests Legislation on State Fund
Committee: Economic Affairs Interim Committee
Author: Pat Murdo
Posted on July 17, 2018
The Economic Affairs Interim Committee, which has been studying the future of Montana’s guaranteed provider of workers’ compensation insurance, asked July 9 for three committee bills to slightly alter how Montana State Fund (State Fund) functions. Also requested were bills on an economic development grant program, the rail service advisory council, and liquor quota auctions.
Members discussed but did not vote on a proposal that incorporated each State Fund topic plus the imposition of a 2.75% tax on State Fund premiums. The votes were 5-3 for each separate bill but 2-6 against the tax option.
The proposed State Fund bills would allow:
- State Fund policyholders to appoint three of the seven-member board of directors. Currently the governor appoints all directors.
- State government to choose among options for workers’ compensation coverage: self-insuring, insuring in the private market, or insuring through State Fund. Currently the state must use State Fund for workers’ compensation insurance. Under this option State Fund, as an entity of state government, could insure itself if the state obtains workers’ compensation insurance elsewhere.
- State Fund to opt out of the state’s procurement and information technology requirements.
Also under the Senate Joint Resolution 27 study the committee looked at potential impacts if State Fund were disbanded or allowed to be a private insurer. While recognizing that individual legislators might pursue these paths when the legislature convenes in January, the committee opted for narrow changes.
In finishing action on two other studies, the committee:
- Proposed to revise the definition of “high-poverty county” in the Big Sky Economic Development Program to reflect the U.S. Census Bureau rate rather than the 14% used now. The action came under its SJR 20 study of unemployment in Montana. Applicants from counties or reservations that qualify as high poverty can get $2,500 added to the regular $5,000 for each job proposed for a grant. The 2015-2016 U.S. Census Bureau statewide averages showed Montana’s poverty rate at 11.8%, lower than the 12.7% national average.
- Opted not to propose legislation for its SJR 32 study of ways to revise emergency medical services laws to improve community and veterans’ medical services but accepted the remainder of the draft report.
The committee also:
- Moved forward a draft revising Senate Bill 5 from the 2017 Special Session to adjust use of auctions in liquor quota areas, including where quota areas overlap. One change in the proposed draft is to remove sunset dates in SB 5 so that future openings for an all-beverage, beer, or restaurant beer and wine license in a quota area would be auctioned.
- Moved forward a bill to repeal the Rail Service Competition Council as a statutory entity.
- Heard a report on the limited local impact of the U.S. Supreme Court’s decision on states’ sports gambling regulations.
The Economic Affairs Interim Committee’s last meeting this year will be Sept. 6. For more information, visit the committee website at leg.mt.gov/eaic or contact staff, Pat Murdo, at 406-444-3594 or by email, pmurdo@mt.gov.
