NorthwestJanuary 26, 1996

Associated Press

BOISE Gov. Phil Batt's proposed compromise to end Idaho's distinction as one of just 14 states without mandatory workers compensation coverage for farm laborers was introduced on Thursday in the state Senate.

The unanimous action by the Commerce and Human Resources Committee set the stage for full scale hearings on the issue, probably next Thursday, and a campaign the governor and his allies believe will build enough pressure to push the measure through a reluctant House.

The committee also introduced two other workers compensation bills similar to the one that was rejected by a two-to-one margin in the House last year. Democrats had introduced their own version of last year's proposal a week ago.

Chairman Dean Cameron, R-Rupert, said there was also the possibility that the agricultural industry may still submit its own proposal, and it would be considered along with the others during next week's hearing. Cameron anticipated committee action on the question on Feb. 6.

"We cannot continue to exclude farm workers," Batt said in making the legislation one of his top priorities as the 1996 session opened. "They are the backbone of one of Idaho's most productive economic assets. We must stop ignoring this glaring deficiency in our society."

Senate Republican Floor Leader David Kerrick of Caldwell managed the governor's proposal that attempts to rally the support of Idaho's relatively influential small-business community to offset simmering opposition among farm interests.

"This would make workers comp more affordable for all businessmen," Kerrick told the panel.

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The key provision of the Batt bill cuts the minimum premium for workers compensation coverage from $300 to $150 from $600 to $300 for the most dangerous jobs in an attempt to mute farm and ranch contentions that the additional cost of coverage would force many operators out of business. It also reduces by more than half a key factor in the premium calculation for sole proprietors and partnerships.

Supporters of ending the agricultural exemption have pointed to the numerous tax breaks farmers and ranchers receive as enough financial assistance to offset taking on the same insurance requirements nearly every other businessman in Idaho must. Tax-free fuel, equipment, supplies and materials for their operations, farm property assessments at production rather than market value and income tax credits for investments in new equipment translate into millions of dollars a year in savings for the industry.

But while the State Insurance Fund has not objected to the premium reductions, the bill slaps a five-year expiration on them in case the new minimum is not sufficient to maintain the financial soundness of workers compensation underwriters.

That prompted Republican Sen. Mel Richardson of Idaho Falls to suggest the reduced minimum premium might be just bait to bring farmers under workers compensation coverage and that the rates will be increased at the end of five years. But Kerrick assured him that the administration's intention is to hold the line on the minimum premiums except in the face of extraordinary circumstances.

Although none of the major farm organizations have directly attacked the governor's initiative, some industry spokesmen have raised questions about the approach and its details, and a number of lawmakers have acknowledged being urged by some farming and ranching constituents to vote against the bill.

Those same lawmakers have also said, however, that they are being contacted by as many, if not more, small businessmen, who strongly support the bill not because it finally extends coverage to farm workers but because it reduces their premiums.

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