IdahoState agencies would follow new steps for large property insurance claims
Starting July 1, 2026, Idaho agencies would need added reviews, approvals, and public reporting before accepting large private-insurance payments for damaged state property.
What it does
For state property claims above $100,000, officials would document losses, check all possible coverage, and secure agency approval before accepting an insurer's payment.
State officials would publish proposed insurance settlements before accepting them, and agencies would hear public comments before making related moves or property sales.
The claim review report would remain confidential while the insurance settlement is pending, although legislators could review it.
Argument forDetailed damage and coverage reviews could help agencies recover more money to restore state property after a loss.
Argument againstKeeping claim reports confidential until closure could limit the public's ability to examine how agencies handle large insurance settlements.
More detail
The state insurance director must complete several reviews before accepting a private-insurance settlement or payment for covered property damage above $100,000. This applies when state property is damaged or lost and the state files a formal claim with a private insurer. The reviews must address possible third-party responsibility, repair costs, building-code upgrades, policy limits, exclusions, and other available insurance or bonds. The director must seek the maximum recovery available under applicable policies. The affected agency may obtain its own appraisal or engineering review. The agency's responsible director, administrator, board, or commission must agree in writing that the payout is the maximum amount available; unresolved disagreements go to the state board of examiners. These requirements apply on and after July 1, 2026, before the state accepts the covered settlement or payment.
The director must report proposed final insurance settlements to the state controller at least 14 days before acceptance, and the agency must hold a public hearing if the settlement would cause operational changes. The hearing rule covers changes such as selling damaged property or moving state activities, and the reporting rule covers settlements handled under Section 67-5775A. The agency must present proposed operational changes and accept public comments at the hearing. The agency must notify the legislature within seven days after adopting operational changes. The director must report any difference between the proposed and accepted settlement to the state controller. The reporting and hearing requirements apply on and after July 1, 2026; the settlement report must be made at least 14 days before acceptance, and legislative notice is due within seven days after the agency's decision.
The director's report about the insurance claim would be kept from public disclosure until the settlement is reached or the claim is closed. This applies to the report required for a state property insurance claim under Section 67-5775A. Legislators may review a copy, with the expectation that it remains confidential during the claim. The exemption applies from preparation of the report until the settlement is reached or the claim is otherwise closed, beginning July 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 2Reported Signed by Governor Brad Little on April 2, 2026 Session Law Chapter 282 Effective: 07/01/2026Became Law
- Apr 1Delivered to Governor at 12:50 p.m. on April 1, 2026To Governor
- Apr 1Returned Signed by the President; Ordered Transmitted to GovernorMinor
- Mar 31Signed by President; returned to HouseMajor
- Mar 31Received from the House enrolled/signed by SpeakerMajor
- Mar 31Reported Enrolled; Signed by Speaker; Transmitted to SenateMajor
- Mar 31Returned from Senate Passed; to JRA for EnrollingMinor
- Mar 30Read third time in full – PASSED - 34-1-0AYES – Adams, Anthon, Bernt, Bjerke(Bjerke), Blaylock, Burtenshaw, Carlson, Cook, Den Hartog, Foreman, Galloway, Grow, Guthrie, Harris, Hart, Keyser, Kohl, Lakey, Lent, Nichols, Okuniewicz, Rabe, Ricks, Ruchti, Semmelroth, Shippy, Taylor, Toews, VanOrden, Ward-Engelking, Wintrow, Woodward, Zito, ZuiderveldNAYS – LenneyAbsent and excused – NoneFloor Sponsor - CookTitle apvd - to HousePassed 2nd Chamber
- Vote recorded Read third time in full –. Result: pass.Upper
- Mar 26Read second time; filed for Third ReadingMinor
- Mar 25Reported out of Committee with Do Pass Recommendation; Filed for second readingMinor
- Mar 23Introduced, read first time; referred to: State AffairsMinor
- Mar 23Received from the House passed; filed for first reading
- Mar 20Read Third Time in Full – PASSED - 69-0-1AYES – Alfieri, Barbieri, Beiswenger, Berch, Bingham, Boyle, Bruce, Burgoyne, Cannon, Cayler, Cheatum, Church, Cornilles, Crane(12), Crane(13), Dygert, Egbert, Ehardt, Ehlers, Erickson, Fuhriman, Furniss, Galaviz, Gannon, Garner, Green, Hall(Stone), Handy, Harris, Hawkins, Haws, Healey, Hill, Holtzclaw, Hostetler, Leavitt, Manwaring, Marmon, Mathias, McCann, Mendive, Mickelsen, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Pohanka, Price, Rasor, Raybould, Raymond, Redman, Rubel, Sauter, Scott, Shepherd, Shirts, Skaug, Tanner(13), Thompson, Vander Woude, Veile, Weber, Wheeler, Wisniewski, Mr. SpeakerNAYS – NoneAbsent – Tanner(14)Floor Sponsor - RaybouldTitle apvd - to SenatePassed 1st Chamber
- Vote recorded Read Third Time in Full –. Result: pass.Lower
- Mar 19Read second time; Filed for Third ReadingMinor
- Mar 18Reported out of Committee with Do Pass Recommendation, Filed for Second ReadingMinor
- Mar 16Reported Printed and Referred to State Affairs
- Mar 16Introduced, read first time, referred to JRA for PrintingIntroduced
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