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Bill would let Oregon school districts apply for exemption from workers’ comp security rules
Summary
A House Committee on Commerce public hearing considered Senate Bill 904 on May 1, which would add school districts to the list of public entities that may apply to the Department of Consumer and Business Services (DCBS) for an exemption from rules requiring proof of financial ability for self-insured workers’ compensation programs.
The House Committee on Commerce held a public hearing May 1 on Senate Bill 904, which would allow school districts to apply to the Department of Consumer and Business Services for an exemption from rules that require self‑insured employers to establish proof of financial ability for workers’ compensation.
Senator Kathleen Taylor, state senator for District 21, told the committee the bill would “streamline administrative processes and remove unnecessary barriers,” saying it would allow districts more flexibility in allocating resources to students and staff.
The measure would add school districts to the entities — currently cities, counties and certain employer groups — that may apply for the exemption. Joe Krelier, director of risk management for Portland Public Schools, said Portland Public Schools and other large Oregon districts already self‑insure and that the bill “merely adds school districts as entities that may qualify.”
Krelier described current practice as including either purchasing a commercial line of credit or posting a surety instrument to meet perceived security needs: “In the case of PPS, we buy a line of credit from a commercial bank. This cost is about $10,000 to $12,000 a year for Portland Public Schools,” he said, adding that over a decade that cost “easily” can exceed $100,000 per district and that exempting districts from posting that security could yield savings.
Both Taylor and Krelier emphasized that the bill would not remove regulatory oversight. Krelier said DCBS retains its statutory process, including requirements such as dedicated protective reserves and third‑party actuarial reports, and that the director of DCBS retains discretion to impose any other requirements necessary to protect the public.
Committee staff reported the bill had a minimal fiscal impact and no revenue impact and that it passed the Senate 24–5. The hearing included no committee vote; witnesses concluded their testimony and the committee closed the public hearing on the bill.
No formal committee action was taken at the hearing; any next steps would be determined by the committee leadership.
