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House adopts substitute to allow state flexibility in workers— compensation purchasing after court ruling

Utah House of Representatives · February 7, 2006
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Summary

Lawmakers substituted H.B. 72 to let the state seek workers' compensation coverage outside the Workers' Compensation Fund after a recent Utah Supreme Court ruling clarified fund ownership; floor debate centered on statutory wording and potential long-term ramifications.

The Utah House on the floor adopted a substitute for H.B. 72 aimed at giving the state flexibility to obtain workers' compensation coverage from sources other than the Workers' Compensation Fund (WCF) following a Supreme Court ruling about ownership.

Representative Gordon Snow, sponsor, said the original intent was to reflect the court's finding that policyholders, not the state, own the fund and to restore the state's ability to seek the best available coverage. He described the substitute as restoring the original committee intent by removing committee amendments that complicated the sponsor's purpose.

Several floor members, including Representative Adams and Representative Bigelow, urged caution and warned that inserting language addressing the court—s reasoning into statute could have unintended operational and tax consequences for the fund. Representative Urquhart, who disclosed his practice defending matters for the WCF, said the court ruling was the driving point and argued for explicitly stating the court—s holding in statute. Representative Snow said the broader structural questions deserved separate legislation and that including them would derail his bill.

After protracted questioning and debate over drafting, the House substituted the bill on a recorded vote and later advanced the substitute. The motion to substitute received 37 yes and 36 no votes on the record and the substitute was adopted; the bill was then passed by the House and referred to the Senate for consideration.