Jim Guthrie — The chair opens with approval of the minutes and procedural business.
Jim Guthrie — Addressed in procedural follow-up during the exchange.
Jim Guthrie — Recognized the question from Representative Nicholson and managed the exchange.
Jim Guthrie — Explained committee procedure and recognized the motion.
Jim Guthrie — Recognized discussion on the motion.
Jim Guthrie — Recognized the witness and the question from the committee.
Jim Guthrie — Recognized the follow-up question.
Kelly Anthon — Representative Monks noted that Superintendent Critchfield could not be present because she is traveling.
Kelly Anthon — Representative Anthon raises a question about the bill’s language on non-citizens and legal residents, asking whether it would prevent foreign nationals or family members from buying homes in Idaho. He compares it to Americans buying property in foreign countries, where they may not be citizens but are still allowed to purchase homes. Representative Crane responds to the concern, indicating that the bill would indeed apply in that way.
Rick Cheatham — Introduces himself as representing District 28, Power County, Franklin County, and most of Bannock County.
Mark Dahlquist — Mayor Mark Dahlquist of Pocatello testifies in support of House Bill 725, explaining that rising health insurance costs are a concern for the city and that a carrier allowing the city to spread risk would help reduce cost volatility.
Mayor of Pocatello — Responds to a question about taxpayer impact and explains the proposed city contribution structure.
Joe Palmer — Representative Palmer questions the mayor about the proposed opt-in structure, asking whether taxpayers statewide would share the cost and whether allowing only higher-risk cities to opt in would drive up costs for the state. He follows up to clarify his concern about adverse selection and reiterates that if only cities getting a better deal participate, it seems likely to raise statewide costs.
Joe Palmer — Said he found the answer in the bill and began asking about the actuarial review process.
Joe Palmer — Asked whether the agency can deny a city entry into the state plan and what criteria would apply.
Joe Palmer — Raised a question about why the state does not charge added groups an administrative fee.
Joe Palmer — Suggested charging an additional fee to added groups to recapture administrative costs and asked about the city of Pocatello's savings.
Joe Palmer — Asked whether charging different amounts would be possible and reacted favorably to the idea.
Joe Palmer — Argued that state employees should receive a benefit and that joining the plan should cost a little extra.
Joe Palmer — Recorded as voting no on the motion.
Mayor Mark Dahlquist of Pocatello — Mayor Mark Dahlquist explained that Pocatello’s insurance risk can vary from year to year, but the city does not consider itself a generally high-risk client. He said the city is concerned about unpredictability in its insurance costs and therefore works through a broker to shop coverage annually, regularly seeking proposals and the lowest available price rather than staying with one carrier for convenience.
Mayor of the city of Stark — The mayor answered a question about how often the city shops its insurance.
Chase Mills — Chase Mills testified as a captain with the Idaho Falls Fire Department and a representative of Idaho Falls Firefighters Local 1565. He explained that firefighter recruitment and retention are difficult because training is expensive and compensation and benefits matter greatly. He said insurance costs have risen over the 12 years he has been with the department and that better benefits, insurance, retirement, and wages help cities keep firefighters. He concluded that the bill could help retain employees and improve public safety, and the committee then thanked him and moved on without questions.
Mayor Burton Shaw — Mayor Burton Shaw is scheduled, introduced as the next virtual witness after Chase Mills, welcomed to the committee, and then begins testimony before the audio connection is lost.
Jason — Likely a transcription error for the speaker's name in the time warning.
Mayor Burton Shaw of Idaho Falls — Mayor Burton Shaw of Idaho Falls thanked the committee for the opportunity to testify and urged support for allowing cities to join the state insurance plan. He said Idaho Falls is prepared to cover any extra costs and has long struggled to become self-insured. He argued the proposal would not hurt the state general fund, could save local taxpayers money, and would help stabilize the wild swings in insurance rates by creating a larger pool, which would also aid recruitment and retention.
Faith Dalton / Faith Knowlton — Identified as the administrator of group insurance in the Department of Administration and asked to respond to questions about the bill.
Faith Dalton / Faith Knowlton — Stated that cities would pay 100% of premiums and administrative costs, so general fund dollars should not be needed.
Faith Knowlton — Faith Knowlton explained that the cited cities are not necessarily high-risk, but because they are small, large claims can have a much bigger effect on their plans than on a larger state plan. She said the state can absorb a few large claims without the same impact, and that when new groups join the plan, an actuarial review is performed to ensure they are financially sound and will not negatively affect the plan on a mass basis. She also noted that the state already has similar exposures through ISP, IDOC, and law enforcement, and that law enforcement and firefighter populations may actually have better claims experience than the general population.
Joe Alfieri — Asked about the effect the proposal might have on smaller cities joining the plan.
Joe Alfieri — Says the bill is overly broad and suggests limiting it to countries with an adversarial relationship.
Ms. Knowlton — Ms. Knowlton explained that smaller cities would be treated similarly to small school districts, with any addition to the plan reviewed actuarially to ensure soundness. She noted that the statute is permissive, meaning the agency may allow a group to join but is not required to do so, and said the agency has not had to deny any group because prior groups had adequate experience and no serious high-claims history. She added that the state has not previously charged added groups extra amounts, instead charging all groups equally, though different charging metrics could be considered in the future. She also said such a change would be possible but would create additional administrative burden for a small staff.
Heather Scott — Explained that cities have varied needs and that pooling them into one plan would be complicated; said the bill makes participation optional.
Heather Scott — Explained that cities can apply individually and decide based on budget, current premiums, and projected increases.
Heather Scott — Recorded as voting no on the motion.
Stephanie Mickelsen — Stephanie Mickelsen argued that smaller cities could save money by moving to a self-insured model because it avoids insurer profit margins. She added that allowing smaller cities to join a larger self-funded group creates efficiencies for cities that are too small to manage their own plans, and emphasized that the bill is permissive rather than mandatory, making it a good option for cities.
Stephanie Mickelsen — Representative Stephanie Mickelsen asks for clarification on whether the bill is intended to prevent REITs from owning property in Idaho and whether it also affects foreign corporations in other sectors, such as mining, or is limited to housing-related ownership.
Monica Church — Spoke in favor of the motion, emphasizing rural communities and the importance of cities to the state.
Monica Church — Monica Church raises a sustained concern about the bill’s definition and use of 'foreign adversary,' questioning how the state will determine who qualifies over time if federal designations change. She asks what happens to people whose country is later added to that list, worrying that they could be left in limbo regarding residency or immigration status and could even be forced to divest or be displaced from their homes based on shifting federal policy.
Monica Church — Representative Monica Church follows up on concerns about temporary workers, using athletes as an example and then focusing on H-1B visa holders tied to Micron. She questions the broader implications of these workers for Idaho, including whether they should be able to buy homes and remain in the state, and references related institutions such as INL.
Jaron Crane — Representative Jaron Crane introduces RS 33618, explaining that it would restrict certain foreign persons, foreign-backed corporations, and institutional investors from purchasing single-family homes in Idaho. He argues that such investment purchases drive up home prices, turn neighborhoods into rental portfolios, and disadvantage Idaho families, citing a new subdivision in his district where homes are being rented out. He notes a clerical correction on page 2, line 13, changing "and" to "or," and clarifies that the bill addresses REITs when majority shareholders are restricted persons. Crane further explains that the bill is specifically aimed at foreign-owned companies and foreign governments, such as China, buying single-family homes, distinguishes the bill’s language from existing statute after page 2, line 37, and responds to questions by asking for clarification, declining to comment at one point, and offering to seek a legal opinion on a hypothetical citizenship issue.
James Holtzclaw — Moves to introduce RS 33618 with a clerical change on page 2, line 13.
Shawn Dygert — Shawn Dygert questions whether the bill would prevent people connected to a mine in Hawaii County, including Canadian or other foreign but non-adversarial interests, from buying a nearby home. He further clarifies the hypothetical by describing individuals who would be in the area temporarily to participate or compete and then return home.
Ben Adams — Representative Crane responds to questions about the bill’s home-purchase restrictions, explaining that it is intended to prioritize Idaho homes for Idaho residents and limit purchases by foreign money, corporations, REITs, and SEC-related companies. He points to subsection eight on page two as the relevant enforcement language and rejects adding language for H-1B workers, emphasizing that District 12’s housing concerns are about Idaho residents competing with national conglomerates for scarce homes.
Erin Bingham — Representative Bingham asks how the bill would be enforced and whether it would require title companies, real estate agents, or banks to verify a buyer’s legal resident status and state residency before a home purchase.
Judy Boyle — Jokes about 'cows' meaning California, Oregon, and Washington, suggesting a bill restricting them.