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Housekeeping bill updates auditor and insurance rules, sponsor says net revenue gain
Summary
Representative Ed Buttry and the state auditor’s office presented House Bill 60 as a routine cleanup that updates securities and insurance statutes, extends a 340B pharmacy reporting sunset and allows Montana-domiciled surplus-lines insurers to be taxed, producing a net positive fiscal note, proponents told the Senate Business and Labor Committee.
Representative Ed Buttry, sponsor of House Bill 60, told the Senate Business and Labor Committee the measure is a housekeeping bill requested by the state auditor and commissioner of securities and insurance that revises definitions, filing requirements, producer training, surplus lines insurance rules and consumer protections.
"House Bill 60 is a bill brought to the committee at the request of the state auditor," Buttry said, noting the bill also "establishes a 1 year statute of limitations for security related actions upon discovery of a violation" and clarifies eligibility for the "securities restitution fund."
Frank Cote, deputy insurance commissioner, said the bill was developed in consultation with industry and agency stakeholders and that the changes are intended to remove outdated provisions, reduce regulatory burdens and improve administrative efficiencies.
Cote explained one revenue change in the fiscal note: allowing Montana-domiciled surplus lines insurers to sell in-state subjects those premiums to the state premium tax. "Because they're now selling that product in Montana, they're subject to the premium tax," he said, describing that premium tax collection as the primary reason the bill shows a positive fiscal impact.
Buttry also described other adjustments: the bill modernizes rules on insurance disclosures, medically necessary examinations, telehealth and privacy protections; it revises securities registration steps; and it removes a $50 filing fee for a charitable-offering exemption (which the bill rescinds and which was shown in the fiscal note as a revenue loss offset by the surplus-lines tax gain).
The sponsor and committee clarified policy matters removed from the housekeeping vehicle: training-hour reductions for surety bail-bond licensees were taken out of HB 60 after disagreement in the House, and the 340B pharmacy reporting exemption sunset was extended to four years at the request of stakeholders to allow more time to develop feasible reporting protocols.
No formal action or vote was recorded in committee during the hearing; committee members thanked the sponsor and agency representatives and were directed to the department for follow-up questions about specific sections.
The hearing record shows agencies and industry proponents present to answer committee questions; no opponents offered testimony on the bill during the hearing.
