Committee sends House Bill 160 to the floor after debate on state insurance fund opt-outs

BOISE — The Idaho House Commerce and Human Resources Committee voted to send House Bill 160 to the House floor with a "do pass" recommendation after hearing testimony about whether specialty public districts should be allowed to obtain workers' compensation coverage outside the State Insurance Fund.

Representative Josh Tanner, a state representative from District 14, told the committee the bill creates a limited, five-year pilot allowing smaller specialty districts — excluding school districts — to purchase workers' compensation coverage on the open market rather than remain in the State Insurance Fund. "Yes, before you is House Bill 160. This deals with workers' compensation and the state insurance fund," Tanner said in opening remarks.

The bill, Tanner said, responds to changes in the private market and to specialized providers that can offer competitive rates for narrow subsectors such as fire and emergency medical services. He described past concerns that motivated the creation of the State Insurance Fund, saying some early private insurers lacked reserves and left public employers exposed if they failed. Tanner said the bill is a cautious step, limited to smaller specialty districts and vetted with a five-year sunset: "Now we did put a 5 year term on this. So, again, it gives the legislature a chance to come back and review this thing and look at this and see the success, or not within this program." He also said districts would retain the option to remain in the State Insurance Fund if they prefer.

Committee members asked questions about pooling and rate advantages. One member raised the common insurance principle that larger pools typically get better rates and asked how single districts could secure better pricing on their own. Tanner replied that some private firms form large, sector-specific pools across states — for example, firms that specialize in fire districts — and that those firms had proposed rates that, in his account, would cost less than remaining in the State Insurance Fund. He said the cost savings were not large but existed.

Representative Weber, who declared a conflict under Rule 80 because he serves on the State Insurance Fund board, thanked Tanner and moved the committee send House Bill 160 to the floor with a "do pass" recommendation. "First, I need to declare rule 80 as I sit on the State Insurance Fund board," Weber said before making the motion. The committee chair called for any testimony; none was offered. Members then voted verbally. The chair announced the motion passed.

The committee also approved acceptance of the Feb. 5 meeting minutes earlier in the session. That motion was made and approved without recorded objections.

No formal fiscal details, specific vote tallies, or public testimony opposing or supporting the bill were recorded in the committee transcript. Tanner said school districts were left out of the pilot and that, prior to the bill, a district choosing to leave the State Insurance Fund had to arrange a bond with the state treasurer to pay liabilities. The bill, as described to the committee, would remove that barrier for the specified specialty districts on a trial basis so the Legislature can evaluate outcomes before considering broader changes.

The committee recessed briefly to recognize page Lincoln Hendricks and then adjourned; members noted additional bills and a presentation on the cost-of-living adjustment are scheduled in coming committee meetings.