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Committee concurs with HB 210 to add lower unemployment tax rate and authorize DMV data match for fraud detection
Summary
The Senate Finance and Claims Committee on March 5 concurred with House Bill 210, a measure that would add a lower unemployment insurance tax rate and authorize a privacy‑preserving verification with motor vehicle records to detect fraudulent claims.
The Senate Finance and Claims Committee on March 5 concurred with House Bill 210, a measure that would add a lower unemployment insurance tax rate for Montana employers, permit a cross‑agency, privacy‑preserving verification of claimants against motor vehicle records, and allow the unemployment program to use limited overpayments across fiscal years to fund operations.
Proponents said the change responds to an unusually strong unemployment trust and would lower employer rates while preserving the annual tax‑setting system. "We could probably lower unemployment insurance rates for our employers without impacting the system," said Sarah Swanson, commissioner of the Montana Department of Labor and Industry. Swanson and fiscal documents told the committee the change would create estimated employer tax savings of about $12,000,452 in the first year and more than $25,000,000 annually by 2027 if economic conditions remain strong.
The bill also authorizes a technical, "red/green" verification between the unemployment system and motor vehicle records to speed identity checks and reduce staff work on suspected fraudulent claims. "There is no data being exchanged between our agencies," Swanson told the committee, adding the match is a pass/fail check implemented in a clean‑room process. Alex Sturhan, director of external affairs at the Montana Department of Justice, described the DOJ as a co‑participant and asked the committee to support the bill.
Officials described other, smaller provisions: a one‑time motor vehicle division cost of roughly $18,000 for the verification work and permission to use approximately $18,000 per year of overpayment collections across fiscal years to support division operations rather than immediately returning those sums to the unemployment insurance trust.
Committee members asked how the new verification would change current practice. Swanson said first‑time claimants now receive mailed fraud‑verification letters that must be returned to the agency, a process that can delay benefits; the DMV check would be a first‑step, not a prohibition, so applicants who fail the automated match could still complete the existing verification process.
At executive action the committee recorded concurrence with the House on HB 210. Senator Wendy Boyle moved concurrence; senators answered the call for the ayes and the motion carried.
What remains: the bill was concurred by Senate Finance and Claims and will proceed to the next steps in the legislative process. The Department of Labor and Industry will implement the verification in coordination with the motor vehicle division and the Department of Justice if the bill becomes law.
