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MONTANA SELF INSURERS' ASSOCIATION

MSIA Update / Leg. Week 14

  • Senate Issues Continue – Why Should We Be Surprised?
  • Another Transmittal Deadline – Lots of Action

Senate Issues Continue – Why Should We Be Surprised?

Soon after we sent out last week’s UPDATE, word came out that the Montana Republican Central Committee (the Republican Party apparatus for all intents and purposes) had ex-communicated/censured/punished/banned all nine members of the Senate Nine. We have been asking, about since the start of the session back in January, who really was in charge - - because it surely did not seem to be Senate leadership. ‘The Nine’ have consistently teamed up with the Dems in the Senate to create the rules, make committee assignments and decide what bills would pass or fail. Kind of what you would expect Leadership to do. But, Leadership has not been able to do it, since ‘the Nine’ and the Dems started working together and that teaming has determined the fate of some legislation. 

Now the Republican Party has stepped in and taken action. Members of ‘the Nine’ will not get party support for the election, fundraising nor coordination support from the Party when they run for office. And they will likely face a primary if they do run. Based on my back-of-the-napkin estimate, five of them will be up for election next year - Loge -St. Regis, McKamey – GTF, Gillespie – Ethridge, Vance – Belgrade and Ellsworth – Hamilton. Primaries are interesting things – when they work, it’s great for those who support the challenger. When they fail, it can be H – E - Double Hockey Sticks for those who support the challenger. That may be why we’re here in the first place. 

The Governor supported primary challengers for a number of seats last year, including those seats won by the people who became House Speaker (Brandon Ler – Savage)and Senate President (Matt Regier – Kalispell). They likely remembered the event less than fondly. The Governor was kind of successful in his support for primary opponents for both House and Senate seats. However when you do that, kind of successful, is kind of not good enough. 

So, we get back to “Who is in charge in the Senate?” Depends on the issue and how ‘the Nine’ personally feel about it. It has created some crazy coalitions and results. I am pretty comfortable with the idea that bills we opposed in Senate Business & Labor passed that committee because of the relationship ‘the Nine’ have with the Dems. SB 295 – the Employee Choice of Physicians, SB 308 – Eliminate the Cap on Benefits should never have been released from that committee, but the members of ‘the Nine’ swung the votes. Some of them reversed course on the Senate floor for SB 295 and others in Senate Finance and Claims voted against SB 308 there. However…

As well, there are rumors running around the building that the Senate may not come back from Easter break (4/19 – 21). Last session, the Senate Dems called for a Sine Die (end of session) motion, early and surprised everyone when it passed. The budget seems to be getting wrapped up, so, there is a legitimate question about whether the Dems will go out early again – particularly now that they have a more formal coalition to move rules, assignments and some motions.  

Churchill said something along the lines of, Democracy is the world’s worst form of governement….Until you compare it to all the others. 

I also accept the idea that “No man’s life, liberty or property are safe while the legislature is in session.” (I Tucker 248. N.Y. Surr.18).

Another Transmittal Deadline – Lots of Action

Tomorrow (Saturday 4/12) is Transmittal Day for amendments made in the second chamber. For example, if a Senate bill passes the Senate, and the House makes an amendment to that bill, it has to be through the House and transmitted to the Senate by COB tomorrow, or else it will die (kind of). We have talked about bills dying and being resurrected and that happens. However, with each transmittal date that goes by, it gets more and more difficult for that to happen. 

As a result of this week’s transmittal deadline – all sorts of bills saw all sorts of amendments by Wednesday, so they could be printed and acted on by Saturday in both House and Senate Committees. And, legislators accept that not all amendments done in haste like this are perfect – and accept that a Conference Committee will be appointed to ultimately figure out the language they think will pass. 

A Conference Committee is appointed by leadership (there we go again!) when the Senate and House cannot agree on specific language for a bill. Using the above example, lets say the House adopts amended language to the Senate bill. The Senate then has to either concur in that language or reject it – no further amendments are permitted at this stage – it is an up or down vote. If they accept, they then have passed the bill and it will be sent to the Governor. If they reject, a Conference Committee is appointed to hammer out the details. Conference Committees can take any language they want – as long as it fits within the Title of the Bill (another reason to have “Generally Revise Workers’ Compensation Laws” as your title). They do not have to deal with the individual issue presented in the original or amended versions. However, they do have to reach agreement and present their language to both floors – and again, no amendments are permitted. It is a straight up or down vote. 

Only two bills we are tracking fell into this category where an amendment had to be adopted this week to be passed by transmittal deadline, HB 516 and HB 740. HB 516 – moving the WC Court to the Judiciary needed an amendment to make sure the funding from the Administrative Assessment we all pay continued to pay for the Court’s operation. HB 740 – the Family Pharmacy bill needed to be amended to eliminate its’ affecting the WC law. Both amendments were completed and the bills are in process. HB 516 should not have a problem passing. HB 740 is a much more controversial bill and will cost the state some money as it will increase costs for providing prescription drugs through the state health care coverage programs. I am not taking bets on whether HB 740 passes or not – on the other hand, if it does not pass, WC is not impacted. 

Our SB 345 was impacted in that, since it does not need an amendment in the House, it has been put on hold to get other bills through. We expect House Business & Labor Committee action on this bill on Wednesday or later this coming week. That still gives us time to have it pass the House and be sent to the Governor – even if the Senate adjourns after Easter break. 


SB 345 / Hertz (R-Polson)

This is a MSIA requested bill to end the deference to treating physicians in litigated cases and ask the Judge to provide credibility on testimony and experience, make it easier to secure an IME and provide some ancillary benefits to support an IME when travel is involved. The bill was heard in House Bus & Labor on 3/31 with MSIA as the lead proponent joined by the Plan 2 carriers, businesses, as well as MSIA members MCCF and MSGIA and MSF. This bill is the subject of significant grass-roots efforts by MSIA, business groups, as well as labor and plaintiff attorneys. At this point, the bill is well known to the Committee members, and we think we will be successful. However, based on timing, the bill may not be called for a committee vote until next Wednesday, 4/16. Thank you for your support of our efforts to get this bill passed. MSIA members made a significant difference in moving commitments from individual legislators. 


SB 394 / Neumann (D-BZN)

This bill provides for PTSD claim opportunities for law enforcement and first responders. Rather than provide a presumption, the language requires claims to go through the WC process for compensability determination. However, it provides a carve out from the existing prohibition on ‘mental-mental’ claims. There are only 12 states which continue to exclude mental-mental claims in their WC systems. And the trend across the country has been to provide presumptive PTSD coverage for first responders. MSIA was the lead opponent to the bill, as was MSIA members MCCF and MSGIA. MSIA offered what may be a unique program in Georgia, which may be a better approach to addressing the issue by creating a special program within municipalities’ health care programs for PTSD for first responders. The bill passed Finance & Claims 12-10, with all members of the nine voting with the Democrats. The bill then moved to the Senate floor for its first vote. MSIA organized businesses and authored a letter in opposition from a broader business community, including MSIA members MDDC. MSBGIA, MT Electric Co-Ops’ Assoc, MMIA, the Plan 2 carriers, APCIA, the MT Chamber of Commerce, the MCA and the Helena Chamber of Commerce and distributed the letter to each Senate desk and handed them out in the hall. The bill passed the Senate 29-20 on 4/4. We will continue to try to defeat this bill, or find an alternative solution, rather than pushing all these costs onto employers. The bill is up for hearing in the House Bus & Labor Committee on Monday 4/14. The Governor’s office does not oppose this bill.  MSIA will be the lead opponent to this bill. 

 

HB 367 / Buttrey (R-GTF)

This bill is an MSIA requested bill to strengthen the language to limit coverage application when the employer provides a vehicle or payment for travel. Over the years, the Supreme Court has expanded the going and coming rule to include situations where any travel where the employer provided a vehicle or some kind of payment for travel to remote locations to be covered. The bill will be heard on Tuesday 2/11 in House Bus & Labor Committee. A large group of businesses supported the bill in the hearing held on 2/13 in House Bus & Labor. MSIA members MCCF and MSBGIA testified in favor of the bill. The MSIA and supporting testimony focused on clarification of the legislative intent and that nothing is being taken away from injured workers. Only the plaintiffs attorneys opposed the bill and their main point was there was no Court decision needed to be overturned. Our response is the pipe has some leaks, we don’t have to wait until the pipe breaks to fix it. A technical amendment will be offered with the support of MSIA and the sponsor. The bill, with the amendment, passed the House 98 – 0 on 2/21 and was heard in Sen Bus & Labor on 3/18 and passed 12-0 on 3/20. The bill passed the Senate 47-1 and will now go to the Governor for his decision. MSIA was the lead proponent of this bill and MSIA member MCCF testified in favor as did MSGIA.


HB 740 / Bertoligio (R-Clancy)

This bill is aimed at providing more control over PBM relationships by independent pharmacies. While an initial amendment eliminated the reference to application to the workers’ compensation statutes, there remained a reference to the PBM statutory language which would have increased pharmacy costs to WC carriers (including self insurers). MSIA is working with others to make a final amendment to eliminate that reference so there is no impact to WC coverage. First, WC is a minimal payer to pharmacies, in comparison to health coverage and there is already a WC pharmacy fee schedule. At the least, not making this change would result in a conflict within the statutory language. The bill has passed the House 98-1 on 3/7. MSIA is working on an amendment to this language to eliminate reference to the WC statutory language. The bill was heard on 4/1 in the Senate Judiciary Committee and passed out, with our amendment 5-3 on 4/8. It was referred to Senate Finance & Claims and has been heard and passed that Committee, 12-10 on 4/11. 


HB 516 / Walsh (R-Twin Bridges)

This bill would move the WC Court from the Department of Labor to the Judiciary. The bill was heard in House Bus & Labor on 2/25 and passed 20-0. The bill passed the House 95-2 on 3/3 and was heard in Sen Bus & Labor on 3/20 where it passed 8-4 on the same day. There is a clarification needed on this bill to continue the funding through the DOLI Administrative assessment to workers’ compensation insurers (including Plan 1, self-insurers). That amendment was adopted by the Senate Bus & Labor Committee and passed. The Senate Finance & Claims Committee heard the bill on 4/10 and passed it 19-0 on 4/11. MSIA supports this bill.

 

HB 428 / Thiel (R-Sidney)

This is the DOLI clean up bill. It clarifies the definintion of "employer" in a borrowed employee situation, provide for annual reporting, rather than quarterly reporting of medical benefits paid for the WC Administration Fund and a clean-up of the medical status form, so there is only one form, versus two (one for employer, one for all others). The bill passed the House 100-0 on 2/25. MSIA supports this bill. The bill was heard in Sen Bus & Labor on 3/18 and passed that committee 12-0 on 3/20. The bill passed the Senate 47-1 today and will be sent to the Governor. MSIA Supports this bill.


For a full list of legislation we are following – and the bills that are currently dead, see the attached spreadsheet for more details and access to links to the language, fiscal notes or amendments.