Senate committee advances bill recognizing collective-share programs as proof of liability coverage

An unnamed senator told the Senate Transportation, Technology & Legislative Affairs Committee that Senate Bill 574 corrects a drafting error and restores the ability for certain groups to be treated as exempt under existing law. "So the amendment is is actually a correction," the senator said, describing the amendment as restoring language unintentionally removed in earlier drafting.

The senator said the bill is intended to help religious communities, including Mennonite drivers who object to insurance on religious grounds, by recognizing collective-share liability programs offered through church organizations. "What this does is just recognize that collective share program through their church as liability insurance for the purposes of transportation," the senator said, adding most in those communities use a collective program sometimes called "Mennonite Motorist Aid."

Committee members raised questions about whether the state requires a minimum amount of funds held in escrow for self-insured entities. The chair asked that the Department of Finance and Administration be consulted for clarity. Paul Gehring of DFA responded to the committee that "There is not a dollar amount that we require" for DFA to grant a certificate of self-insurance.

The committee heard no registered public opposition. After debate and clarification, the committee adopted the amendment (motion by Senator Eads; second by Senator Tucker) and later passed the bill as amended (motion by Senator Hill; second by Senator Pitsch). The committee voiced its approval with an affirmative vote.

The bill's sponsor said the change does not create a new exemption but allows members of recognized collective-share programs to demonstrate coverage to Department of Transportation personnel without repeatedly filing exemption paperwork. The committee did not set specific escrow or financial-backing conditions in committee; the sponsor and members said they would follow up with insurance regulators and DFA if needed.

The Senate committee approved the bill and advanced it for further consideration.