Economic Affairs Interim Committee

Montana State Fund Legislation Stalls in Economic Affairs Committee

Committee: Economic Affairs Interim Committee
Author: Pat Murdo
Posted on September 14, 2018


Interor of the Montana State Capitol

The Economic Affairs Interim Committee ended its yearlong study of Montana State Fund, the state’s guaranteed provider of workers’ compensation insurance, by adopting a final report and recommendations but advancing no related legislation.

Also at its last meeting Sept. 6, the EAIC approved final reports and recommendations for two other studies that had been part of the EAIC’s 2017-2018 work plan, one on unemployment in high-poverty areas and one on emergency care, especially related to veterans.

In July, the EAIC had decided to consider three bill drafts that each represented a slight modification to how Montana State Fund operates. The three drafts prepared for the EAIC’s last meeting, and the vote on each, were:

  • LCMSF1, which would have allowed Montana State Fund to be exempt from the procurement and information technology services generally required of state agencies (failed 0-8, with proxies voted for Sen. Ed Buttrey and Sen. Tom Facey, who were absent.)
  • LCMSF2, which would have allowed the state to determine whether to obtain workers’ compensation insurance for state employees either by self-insuring, by contracting with private insurers, or by continuing with Montana State Fund. The vote on that draft tied 4-4.
  • LCMSF3, which would have allowed Montana State Fund policyholders to appoint three of the seven members of the Montana State Fund Board of Directors. That option failed on a 3-5 vote.

In other business, the EAIC named sponsors to two bills previously accepted as committee bills: one to repeal the Rail Service Competition Council (to be carried by Rep. Ryan Lynch) and one to revise the definition of “high-poverty county” to match the poverty rate determined by the Bureau of Labor Statistics. The bill revising the poverty definition, LCbsd1, was part of the Senate Joint Resolution 20 study on unemployment in high-poverty counties. Rep. Sharon Stewart-Peregoy will carry that bill. A third bill adopted on a unanimous vote related to fixes requested for Senate Bill 5, which passed in the 2017 Special Session. That bill, LCDOR1, related to auctions for liquor licenses, beer and wine licenses, and restaurant beer and wine licenses.

The EAIC also moved forward on behalf of the state agencies monitored by the committee the following bill draft requests: 14 proposals from the State Auditor’s Office, 7 from the Department of Agriculture, 2 from the Department of Commerce, 10 on behalf of the Department of Labor and Industry, 8 from the Department of Livestock, 3 from the Banking and Financial Institutions Division of the Department of Administration, and 3 from the Alcoholic Beverage Control Division of the Department of Revenue.

Committee-approved legislation, reports, and meeting materials are available on the EAIC website or by contacting committee staff.

Committee website:  http://leg.mt.gov/eaic
Committee staff: Pat Murdo, pmurdo@mt.gov, or 406-444-3594