Montana State Fund Justice Coalition
50389 U.S. Hwy 93
Polson, MT 59860
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Press Release
For Immediate Release

January 22, 2018
For More Information, Contact:
Greg Hertz
Montana State Fund Justice Coalition
406-253-9505

MSF Policyholders Sue State of Montana
Policyholders of Montana State Fund Sue State of Montana for Breach of Contract
Polson, MT — The Montana State Fund Justice Coalition, representing Montana State Fund (MSF)
policyholders and injured workers, has filed suit against the State of Montana for breach of contract and
violation of the U.S. and Montana Constitution.

Senate Bill 4 was proposed by Governor Steve Bullock and passed during the November 2017 special session
of the Montana Legislature. The bill imposes a “management fee” on MSF assets, resulting in the taking of
$30 million dollars from policyholders and injured workers. The lawsuit challenges Montana’s taking of $30
million dollars of MSF monies for purposes other than worker’s compensation and is asking the court to
declare the statute “authorizing” this taking of private assets unconstitutional.

The coalition is led by business owner and state representative Greg Hertz (R-Polson).
“This money is collected as insurance payments from policyholders to be used for the benefit of
injured workers. These funds are private assets and it is unconstitutional for the government to
disguise this taking as a “fee” and use the money for purposes that are not related to workers
compensation.” said Hertz.

MSF policyholder and former MSF board member, Wayne Dykstra, is a plaintiff in the lawsuit.
“When there are excess dollars in the State Fund, they have, by law, been returned to policyholders
to reduce premiums and the cost of doing business in Montana. This is an outright seizure of private
assets that would set a precedent and put our workers compensation system in jeopardy.” said
Dykstra.

MSF was set up as a public corporation that competes with private insurance companies and gives employers
a guaranteed market to purchase workers compensation insurance. By law, MSF assets are held in trust both
for injured workers and employers and are not to be used for any other purposes. The Montana Chamber of
Commerce, Montana Roofing Contractors, Montana Building Industry Association, National Federation of
Independent Business, Montana Motor Carriers Association, Professional Insurance Agents, the Independent
Insurance Agents Association, and other employer groups opposed the legislation.

More than 30 Montana businesses and associations have contributed to help fund the lawsuit. For more
information, contact Greg Hertz, at 406-253-9505