2003 Commerce & Human Resources
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January 9, 2003
January 14, 2003
January 16, 2003
January 23, 2003
January 28, 2003
January 30, 2003

February 4, 2003
February 6, 2003
February 13, 2003
February 18, 2003
February 20, 2003
February 25, 2003
February 27, 2003

March 4, 2003
March 6, 2003
March 11, 2003
March 13, 2003
March 20, 2003
March 25, 2003
March 27, 2003

April 3, 2003
April 8, 2003
April 15, 2003
April 25, 2003

DATE: January 9, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Werk, Malepeai
MEMBERS
ABSENT/EXCUSED:
Senator Noble

CONVENED Vice Chairman Goedde called the meeting to order at 1:35 P.M.



MINUTES Vice Chairman Goedde asked that the committee members introduce
themselves and give their perspective of future accomplishments for the
commerce committee.



Chairman Andreason announced the Briefing next Monday with
representatives from the National Conference of State Legislators
regarding The Streamlined Sales & Use Tax Interstate Agreement.

Chairman Andreason announced that the Commerce Committee

Meetings begin at 1:29p.m.



ADJOURNMENT There being no further business, the committee adjourned at 4:45P.M.






DATE: January 14, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/EXCUSED:
CONVENED Chairman Andreason called the meeting to order at 1:35 P.M.
MINUTES Discussion of PERSI rate increase, presented by Alan winkle

(see attached)



Discussion of State Employee Benefits, presented by Pam Ahrens

(see attached)



Discussion of the role/goals of the Idaho Public Employees Association

Presented by Vicki Patterson

(see attached)



Chairman Andreason introduced Jody Olson, President, PERSI, as
Gubernatorial Appointee. Mr. Olson provided the committee with
information regarding his role in PERSI and his interest in being re-appointed . The committee will take action at our next meeting.



Vice Chairman Goedde assigned docket numbers of the Administrative
Rules Review to committee members

(see attached)

ADJOURNMENT There being no further business, the committee adjourned at 3:00 P.M.






DATE: January 16, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/EXCUSED:
CONVENED: Chairman Andreason called the meeting to order at 1:29 p.m.
MINUTES: Chairman Andreason introduced Gubernatorial Appointee Tom Kealey,

Idaho Endowment Fund Investment Board. Mr. Kealey reviewed his work
history and investment experience. The committee will take action at our
next meeting.

Discussion and review of the following Administrative Rules:
IDAPA 07 Division of Building Safety Dave Monroe presenting
07-0103-0201 Electrical Licensing and Registration
07-0104-0201 Electrical Specialty Licensing
07-0106-0201 Use of Electrical Code
07-0204-0201 Plumbing Safety Inspections
07-0206-0201 Uniform Plumbing Code
07-0301-0201 Building Safety – General
07-0302-0201 Advisory Board
07-0303-0201 Manufactured Buildings
07-0305-0201 Manufactured Homes
07-0306-0201 Use of Uniform Building Code
07-0307-0201 Certification
07-0307-0202 Use of International Energy Conservation Code
07-0308-0201 Commercial Coaches (Fee Rule)
IDAPA 09 Idaho Department of Labor Dwight Johnson presenting
09-0106-0201 Appeals Bureau
09-0130-0201 Benefits Bureau
IDAPA 10 Idaho Board of Registration of Professional Engineers and
Professional Land Surveyors David Curtis presenting
10-0101-0201 Rules of Procedure
10-0102-0201 Rules of Professional Responsibility
IDAPA 59 Public Employee Retirement System of Idaho presented by Alan
Winkle
59-0105-0201 Separation from Service Rules of PERSI
59-0106-0201 Retirement Rules of PERSI
No significant concerns/issues were voiced by the committee; the committee
will vote on the aforementioned rules during the Commerce Committee meeting
on January 28.
ADJOURNMENT: There being no further business, the meeting adjourned at 3:00 p.m.






DATE: January 23, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

CONVENED: Co-Chairman Goedde called the meeting to order at 1:35 P.M.
MINUTES: Senator Compton made a motion that the minutes of January 21, 2001
be approved as written. Senator Werk seconded the motion. The motion
carried by a Voice Vote.
RS12652 Amendment to Broker Law IC 54-2086, 54-2087, 54-2093 to allow real
estate licensees the ability to rely on information provided to them by
clients.
MOTION Senator Cameron made a motion to send RS12652 to print. Senator
Stegner
seconded the motion.
Review and discussion of the following administrative rules:

Department of Commerce (Karl Tueller and Renea Nelson)

Industrial Commission (Tom Lindbaugh)

Idaho Board of Accountancy (Barbara Porter)

Department of Insurance (Chad Priest)

ADJOURNMENT There being no further business the committee adjourned at 2:50 P.M.






DATE: January 28, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

RS12593C2 Jack Lyman requests that the RS be removed from the agenda
indefinitely.
S1026 Alex LaBeau introduces Peggy Sewicki, Mark Dunham, Executive
Officer, and Jeremy Pisca, Corporate Counsel. Mr. LaBeau states that
this legislation removes some of the language that they have found to be
problematic in a variety of ways and cleans up some of the on-going
concerns the industry has had with the broker code. If you look to page 1
lines 33 and 35, it will remove some language which states “or which
reasonably should have been known”. This is a standard that we in the
industry have a hard time trying to define. Even with the passing of this
legislation, all adverse material or facts that are actually known by a real
estate licensee will be required to be disclosed.



If you look to page 2 lines 14, 20-22 we again clarify the responsibility of
the brokers that more accurately the state of the industry. It removes
some troubled language regarding adverse material facts. Please note
that we are not removing the requirement that agents disclose adverse
material facts that they actually know about. Also on the page, remove
the requirement for an agent to conduct a reasonable investigation of the
property. We are not removing the requirement that they advise the client
to obtain professional services.



Senator Stegner refers back to lines 20-22 and asked if we strike that are
we basically saying that it is no longer a condition that a broker even visit
the property? Alex Labeau states that other places in the code do
require what is called for a seller property condition disclosure report.
That report is required to be given to a buyer. What we want is for the
agent to be able to rely on the representation, unless they know for a fact
otherwise.



Senator Malapai asked if it is a standard practice that when an agent is
going to list a house to consult with the owners if there are any items in
the home as far as defects. Alex Labeau replied that there is a Sellers
Property Condition Disclosure Report that is required on all transactions.
There are minimum standards that are set-up within the law. Our forms
that we provide to our membership are a little more detailed, in fact it is
about three pages. It does contain the states minimum requirements, but
we go over and above that and ask a variety of questions about the
condition of that property that been transmitted to any potential buyer.
Alex Labeau offers to provide the committee a copy of the minimum
requirements that are in the state law with Sellers Property Disclosure
Report as well as a copy of the form that we provide to our membership.



Senator Compton made a motion to send the RS to print. Senator
Goedde
seconded the motion.



Senator Stegner refers to page 3 lines 16 and 17 and is wondering if by
enacting this exact language we are allowing a defense by saying that I
didn’t know and therefore I’ve no culpability. For instance, if you had a
client that was making a false representation and the broker suspected
that, but didn’t know it for sure; the former language would have made
that broker somewhat liable. This language removes any liability for him
at all. Alex Labeau states that you can take entire section code vicarious
liability abolished I think that you are somewhat accurate in your
representation about the former language. It was difficult for somebody to
bring a suit as a result of an agent. The problem within in the industry is
that we can’t define what we “reasonably should have known”.



Senator Stegner states that he agrees with the analysis on pages 1 and
2, but I am wondering why it is necessary in this particular case, or why
some other language might not be inserted if your organization is very
unhappy with “reasonably should have known”. Whenever the legislature
starts looking at law that says “shall not be liable for wrongful acts, errors,
admissions and misrepresentations, and then we add to that that the
general reason they wouldn’t be liable is if they didn’t have any knowledge
of it. I still wonder if you are making too tight a standard in this section.
Alex Labeau I suppose that could be the case, maybe we are creating
the standard that some people may view as too tight. But what we are
looking at from our perspective is that “what reasonably should have been
known” we are relying on the representations of our clients unless we
have knowledge to the contrary.



Senator Davis asked Jeremy Pisca whether or not that as he described
the current standard it creates the impression in my mind that you believe
there is strict liability for realtors that with the language as it current
drafted that no matter what happens they are likely to be liable. Am I
misreading your representation to the committee? Jeremy Pisca states
that he did not mean to give that impression and thinks the language, as it
exists in code, invites more lawsuits.



Senator Stegner states he thinks this statement over reaches by giving a
blanket immunity for liability for just the lack of knowledge is much too
favorable a standard given to any industry. At least I would like to think
about it and discuss it a little further. Also we got an offer from Mr.
Labeau
to provide some documentation that might be helpful in this
situation. So I offer a substitute motion that this bill be held to a time
certain, one week from today, February 4th. Senator Davis seconded the
motion. Senator Davis requested a roll call vote, the vote was six in
favor, three opposed.

S1026 Senator Davis made a motion that S1026 be sent to the Senate with a do
pass recommendation. Senator Stegner seconded the motion. The
motion carried by a Voice Vote. Senator Goedde will sponsor the bill in
the Senate.
Committee
Action of the
Rules of
Administration
Senator Davis made a motion to approve the rules, Senator Stegner
seconded the motion. The motion carried by a Voice Vote.
Adjournment There being no further business, the committee adjourned at 2:45 p.m.






DATE: January 30, 2003
TIME: 1:35 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

Senator Compton motioned that the minutes from January 28th and
January 23rd, Senator Cameron seconded the motion. The motion
carried by a Voice Vote.
RS12346C1 Donna Jones, Idaho Real Estate Commission, states that the purpose of
RS12346C1 is to make a series of minor adjustments to the License Law.
Senator Davis motioned to send RS12346C1 to print, Senator Stegner
seconded the motion. The motioned carried by a Voice Vote.
RS12347 Donna Jones, Idaho Real Estate Commission, states that at present their
license law allows that after a 5 year waiting period a convicted felon can
qualify for a license. Senator Davis asked how is this legislation
difference than the one we laid to rest last year. Donna Jones states that
the first steps that we took is to extend it to all convicted felons and last
year you said that we had no criteria to determine this, we have included
those with this legislation.



Senator Cameron states if I understand what the Bill does that it does
give the Board the opportunity to review the situation before a person is
convicted. If they are a sexual offender it gives you the right to deny them
the ability to have a license even after five (5) years. If they are convicted
of a felony, you might overlook that. Donna Jones states “yes” that
would give them some discretion obviously as concern over some crimes
as others.



Senator Werk states that the language you have here provides for a lot of
latitude for the determination of whether or not somebody should or
should not be eligible for a license. Will there be a Board that sets policy?
You could decide one day that this crime of check kiting is equivalent to
this first degree murder charge. Donna Jones states that the real estate
agency is governed four (4) commission members who are practicing
brokers. They do have some degree of experience through the years.
Kim Coster, Counsel for the Real Estate Commission states the
particular language referred to comes from Health and Welfare’s criteria
for determining whether a Social Worker worth giving a license to work
with the public. The way the law is written is that someone who is
convicted of a felony is not entitled to a license; provided that after a
period of five (5) years they can petition and make an affirmative showing
that within the criteria they know where they are going. They are not
trying to prove a negative. Senator Davis motions to sent RS12347 to
print, Senator Cameron seconds. Motion passes with a Voice Vote with
one descending vote from Senator Werk.

RS12347 Senator Sorenson introduces Jill Chestnut, Executive Director of Drug
Free Idaho. Senator Sorenson states that basically what this Bill does is
to open the Drug Free Workplace Act to include public employers. This
will also allow employers to have a 5% discount on workers
compensation. Jill Chestnut states that what has happened is that
public employers are not clear if they fall under “private” or “public”
employers. What this Bill will do is change the language to include all
Idaho Employers and then also to add a piece at the end of the act that
talks about public entity can do all testing that they are constitutionally
allowed to do. Senator Goedde states before supporting the Bill he
wants to know acturarily whether there is any correlation between workers
compensation claims and the Drug Free Program. If there isn’t some kind
of statistical balance there, then all we are doing is giving those people
that sign up for a drug free workplace a premium break at the expense of
those that have it. Jill Chestnut states that what she can say to that is
that the post accident rate for positive drug testing is huge. Senator
Stegner
motioned to move RS12347 to print, Senator Davis seconded.
The motion carried by a Voice Vote.
RS12727 Mike Kane this Bill addresses an issue that has been lingering for two
years. What we have today is a way to move the payment of the police
officer death benefit and we are now adding professionally paid fire
fighters out of the general fund and into the PERSI system. Senator
Davis
motioned to send RS12727 to print, Senator Stegner seconded
the motion. The motion carried by a Voice Vote.
RS12439C1 Ed Lodge reports that recently new regulations issued under the Health
Insurance Affordability and Accountability Act or HIPA had caused a great
deal of concern within the Idaho ski industry and other recreational
circles. Specifically, language adopted under HIPA would allow group
health plans to deny medical insurance benefits to individuals injured
while skiing, snow boarding or participating in similar activities. As a
result of this misguided language the Idaho skiing industry is asking the
Idaho Legislature that as matter of public policy the state of Idaho adopt
the language to prohibit exclusions based on a citizens non-professional
recreational activity. Senator Davis motioned to send RS12439C1 to
print, Senator Stegner seconded the motion. The motion carried by a
Voice Vote.
HB31 Barbara Porter states that the legislation that the Idaho State Board of
Accountancy is proposing clarifies intent and corrects technical
inconsistencies and references. Some changes have been made based
upon input from the Legislative Services Office. The primary changes
consist of the following: A consistent use of the phrase “issuing
compilation reports” instead of “obsolete references to compilation
services.” Another change applies requirements to all types of reciprocal
licenses whether they be active, inactive or retired.

Senator Werk asked about section three (3) pertaining to applicants and
licensees notifying the board in writing and regarding charges or
convictions. From what I can see charges isn’t what it use to be because
the charges are much different than conviction. What is the procedure
that I get in touch with tell you that I have been charged with felon X?
Barbara Porter states that there is formal procedure for the filing of
complaints allowing the licensee to respond to a complaint. The Board
would not take action against a licensee if a fraudulent charge was
brought against them and dropped. Senator Cameron asked that if a
person was charged but not yet proven guilty, what circumstances would
you revoke a license on a simple felony charge? Barbara Porter
answered that the reason why it is in the accountancy act is that it is a
requirement of the licensee to provide the Board notification if this charge
has occurred. Senator Davis motions to send HB31 to the floor with a
Do Pass Recommendation, Senator Werk seconded the motion. The
motion passed with a Voice Vote.

HB53 David Curtis, Board of Engineering & Land Surveyors, states that HB53
consists primarily of technical questions. Under the current law applicant
who do not have a degree in a related science are required to
demonstrate that they possess the equivalent knowledge of having
obtained an engineering degree, yet are required to have twice as much
experience as one who has a degree. Senator Davis motions to send
HB53 to the floor with a Do Pass Recommendation, Senator Compton
seconded the motion. The motion passed with a Voice Vote.
CONVENE Meeting is adjourned at 2:35 p.m.






DATE: February 4, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

James Kile, Industrial Commission, Gubernatorial Reappointee reviewed
his work history and gave an update of the Industrial Commission. The
committee will vote at the next meeting.
RS12698 Pat Collins states that RS12698 would amend the garnishment process
in a couple of technical ways to make it clearer how a judgement creditor
would serve their garnishment process on a bank that has more than one
branch in Idaho. Senator Goedde moved, seconded by Senator
Compton
to send RS12698 to print.
RS12754 Bob Corbell, Northwest HVAC Association, states that within the Division
of Building Safety there is an Electrical Bureau and a Plumbing Bureau.
The HVAC people really don’t fit into either one of those specific bureau’s.
Currently HVAC has to have specialty license in Plumbing and Electrical
safety. In this legislation we have built a two (2) year period for this
legislation to come into effect. The reason is that it will take us some time
to become a self supporting agency without any outside funds. The
plumbing bureau has agreed and offered to host it. Senator Noble asked
how the Bureau would fund itself after the first couple of years? Bob
Corbell
replied that the funding would come from the same manner as
the other two (2) Bureaus: through inspections, installations, certificate of
competency for the company registration, registration of the apprentices
and journeyman. Senator Noble moved, seconded by Senator Goedde
to send RS12754 to print.
H33 Rayola Jacobsen, Idaho Bureau of Occupational Licensing, states that
the purpose of this bill is to amend existing law to revise the renewal date
for licenses for those professions licensed by IBOL from once a year to
the birth date of the licensee or the original date of application for an
establishment. The IBOL at this time renews licenses twice a year. For
about eight (8) weeks prior and three (3) weeks after the deadline that is
all the Bureau can handle. We have on-line renewal this year, it worked
very well for the Cosmetology and Nursing Home renewal. We had in
excess of 700 applicants that went on-line and renewed. This legislation
also allows us to have revenue coming in every month instead of once a
year in a large chunk. Senator Goedde asked that anytime you start
collecting twice a year and then you spread it over 12 months, could you
possibly find yourselves short or long temporarily in a fiscal year? Rayola
Jacobsen
replied that one of the things we looked at was to make sure
that we finished the year in good financial shape. We have the ability to
budget and have funding to draw from in reserve. Senator Goedde
moved, seconded by Senator Stegner that H33 be sent to the floor with a
do pass recommendation.
S1027 Alex LaBeau, Idaho Realtors Association, requested that S1027 be
pulled from today’s agenda.






DATE: February 6, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

RS12905 Senator Bunderson reported that there were excess funds in PERSI of
$150 million dollars appropriately distributed. Since that time the
economy went south, and the asset value of PERSI went south where it is
today. Now we have an unfunded liability where as before we had assets,
even after the $150 million distribution, we still had about $700 million of
cushion. The legislation before you is that we must have gain sharing
again before this will happen again. The prospect of us having gain
sharing is into the future quite some time. It will be measured in years
and less than a decade, but clearly we need to recover a long way. Steve
Purvis
, Director of Special Projects for the City of Boise, stated that from
the employer share of gain share, what we want to do is if we have gain
share and PERSI chooses to distribute it, we want to put a part of that
gain share as a supplemental contribution into the fund as planned.
Senator Davis moved, seconded by Senator Compton to send
RS12905 to print. Motion carried by a Voice Vote, with one descending
vote from Senator Cameron.
Committee Vote on Gubernatorial Reappointment Mr. James Kile to the
Idaho Industrial Commission. Senator Davis moved, seconded by
Senator Compton. Motion carried by a Voice Vote. Senator
Andreason
will sponsor the appointment in the Senate.
RS12816 Mike Brassey, on behalf of TIAA-CREFF. The essence of this proposal
is to allow the Board of Education to create a deferred compensation plan
available to persons who are participants in the Optional Retirement Plan
(ORP). Unlike other state employees, faculty at the colleges and
universities participate in separate retirements. Senator Davis moved,
seconded by Senator Cameron to send RS12816 to print. Motion carried
by a Voice Vote.
RS12838 Senator Andreason removed RS12838 from the agenda and will present
it to the CEC committee.
RS12738C1 Woody Richards, representing Old Standard Life Insurance Company.
Senator Davis asked Woody Richards to explain to please explain
RS12738C1. Senator Davis moved, seconded by Senator Cameron to
send RS12738C1 to print. Motion carried by Voice Vote.
RS12712 Senator Marley stated that the legislation basically goes back to the law
that was in place in 1985. In looking at reinstating this, our one big
concern is that since 1985 our wages in the construction industry have
dropped from 13th place in the nation to 31st place in the nation, as late as
1997. Dave Whaley, AFL-CIO stated if we keep going in the other
direction we are on the down spiral of not supporting our communities and
I think that the Prevailing Wage law is one way to take care of keeping our
people working in Idaho with good paying jobs. Senator Malepeai
moved, seconded by Senator Compton that RS12712 be sent to print.
Motion carried by Voice Vote with one descending vote by Senator
Davis.
RS12939 Dawn Justice, Idaho Association of Commerce and Industry (IACI),
stated that the only benefit that this particular proposal deals with is
disability income replacement. What this proposal specifically intends to
do is: if an employee is injured prior to their 40th birthday, they would
receive a disability income benefit for life. If the injury occurred between
the ages 40 and 50 they would receive 75% of that benefit for life at the
time they reach eligibility for full social security retirement benefits. If you
are injured between ages 50 and 60 you receive 50% of that benefit until
you reach social security eligibility. After the age of 60 that benefit would
be 25% for life. Senator Davis moved, seconded by Senator Stegner
that RS12939 be sent to print. Motion carried by Voice Vote.
RS12844 In the interest of time, Senator Davis moved, seconded by Senator
Cameron
that RS12844 be sent to print. Motion carried by Voice Vote.
Senator Malepeai moved, seconded by Senator Compton that the
minutes of January 30, 2002 be approved as written. The motion carried
by a Voice Vote.






DATE: February 13, 2003
TIME: 1:30 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES Senator Compton moved, seconded by Senator Noble that the minutes
of February 6, 2003 be approved as written. Senator Werk moved,
seconded by Senator Compten that the minutes of February 4, 2003 be
approved as written. Motions carried by a Voice Vote.
S1047 Donna Jones, Idaho Real Estate Commission. S1047 is a cleanup-housekeeping Bill and includes the following amendments: 1) Adding
back into law the requirement that brokerages transacting in mobile
homes, motor homes or floating homes comply with the License Law. 2)
Allow for self certification of compliance with insurance requirement. 3)
Clarifies that a licensee will not receive a refund if license is terminated.
4) Clarify that the licensee will not receive continuing education credit for
taking same course in same license period. 5) Authorize direct payment
of fee or commission by sales associate to his licensed sales assistants.
6) require that active licensees conduct personal real estate transactions
through the broker with whom they are licensed. Senator Compton
asked if the Bill the support of the industry. Donna Jones stated that in
fact this was developed with the association. Senator Werk inquires
about page nine starting on line five talk about “if authorized by the broker
a sales associate may pay all or a portion of any accepted commission
competition fee with any other sales associate whose licensed with the
same broker”. What is this change all about? Donna Jones stated that
basically it is for the licensed or unlicensed personal assistants. Senator
Compton
moved, seconded by Senator Werk that S1047 be sent to the
Senate with a do pass recommendation.
S1048 Donna Jones, Idaho Real Estate Commission, stated that S1048 will give
statutory authority to review the applications of persons convicted of a
felony, prior to granting a real estate license. Presently real estate license
law provides a five year waiting period before a convicted felon can apply
for a license. Once this five (5) year period has elapsed, the commission
has no authority to deny anyone a license. Senator Stegner stated that
no where in the Bill is the language that grants the commission
permission to grant a license based on the results of their review.
Senator Compton moved, seconded by Senator Noble that S1048 be
sent to the Senate with a Do Pass recommendation.
Senator Werk expressed his concern in that the Commission could
“selectively” decide who may and may not practice real estate in the state
and asked for a step by step explanation of the review process. Senator
Cameron
asked what if an applicant does not report that they have been
charged and/or convicted of a felon? Kim Coster, Attorney for the Idaho
Real Estate Commission, stated that all applicants have to go through a
back ground check and be fingerprinted.
Senator Stegner debates against the motion to send S1048 to the
Senate. The motion passes by Voice Vote. Senator Compton will
sponsor S1048.
S1051 Ed Lodge, Idaho Ski Areas Association stated that S1051 would
establish that denial of insurance coverage and benefits, based solely on
an Idaho’s citizens non-professional recreational activity, would be
contrary to public policy in the state of Idaho. Blue Cross and Regence
Blue Shield do not oppose this legislation. Senator Stegner asked that if
an insurance company wanted to come to the state of Idaho and offer a
policy to people who didn’t participate in these activities at a considerably
lower rate, why would we want to deny the citizens in Idaho the availability
of that insurance? Ed Lodge stated that the attraction to get insurance at
a lower rate would attract more folks than just the individuals the
insurance is designed for. If a family got this insurance and someone
injures themselves while skiing or horseback riding they could face a
financial situation that is going to burden for them rest of their lives.
Senator Andreason stated that it would seem that there would be a very
large number of people who participate in outdoor recreational activities
that wouldn’t realize they do not have coverage in doing some of these
activities.



Clint Ensign, Lobbyist for Sun Valley, Mike Shirley, Resort Manager at
Bogus Basin, and Phil Britain, manager of the Idaho Coalition For
Motorcycle Safety testified in favor of S1051.



Due to time constraints S1051 is held in committee and will be heard
again during the February 18 committee meeting.






DATE: February 18, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES: Senator Malepeai moved, seconded by Senator Compton, that the
minutes of February 13, 2003 be approved as written.
S1083 Senator Bunderson stated the purpose of S1083 is to have retirement
funds divert the unfunded fire fighters retirement fund. One vehicle that
would accomplish this is; should gain sharing become available, then part
of the employers portion of gain sharing could be diverted to this fund.
Senator Stegner stated that he is very reluctant to start adding into code
uses for gain sharing. Senator Stegner asked Steve Purvis,
representing the City of Boise and Association of Idaho Cities, if the city
has the option to use gain sharing for any purpose they want? Steve
Purvis
replied that the city could use gain sharing to make their 17% fixed
contribution. Senator Cameron stated that one of the more contentious
points in the interim committee that looked at gain sharing was whether to
restrict how the employers could utilize those funds. The Legislators, in
the end, decided we should not restrict those individual employers from
determining how they use the gain share money. Why should we restrict
that freedom from current employer units now? Steve Purvis replied that
the process is upside down now. We are here today to tell you that we 22
state employers would like to extend a portion of ours back to pay the
liability. Bruce Allcott, Fire Chief for the City of Caldwell, stated that he
firmly believes S1083 is the right thing to do. Senator Stegner moved,
seconded by Senator Cameron, that S1083 be held in committee.
Senator Malepeai moved, seconded by Senator Werk, that S1083 be
sent to the Senate with a Do Pass Recommendation. Senator Cameron
debated to hold the bill in committee.



Senator Werk stated that the reality is that S1083 would pay off the debt
quicker and result in lower taxes, better services, and more flexibility in
the fire fighting community. To vote against S1083 is very short sighted.



Senator Compton requested a Roll Call Vote for the substitute motion to
send S1083 to the Senate with a Do Pass Recommendation. Senators
Davis, Werk, and Malepeai
voted AYE. Senators Andreason, Goedde,
Cameron, Stegner, Compton, and Noble
voted NAY resulting in a vote
of three in favor and six opposed.



Senator Stegner requested a Roll Call Vote for the motion to hold S1083
in Committee. Senators Goedde, Cameron, Stegner, Compton, and
Noble
vote AYE. Senators Andreason, Davis, Werk, and Malepeai
vote NAY. S1083 was held in Committee.

S1051 Ed Lodge, Idaho Ski Areas Association, stated that the purpose of S1051
is to make public policy the current practice of insurance companies, by
not allowing the denial of insurance coverage and benefits to Idahoans
who may be injured while participating in recreational activities. This Bill
is in response to a rule recently adopted at the Federal level that would
make it permissible to deny insurance benefits to individuals injured while
participating in a variety of recreational activities. Steve Tobiason,
representing the Idaho Association of Health Plans (IAHP). The IAHP
Board just met this morning and voted to oppose the bill. Our association
has taken a consistent position about language that mandates how
insurance policies are written or what benefits are provided. Unless there
is a problem that is not identified we ask the Legislators to not impose
anticipatory mandates.



Steve Tobiason stated that S1051 has taken two different sections of the
code and merged them together.



The following individuals testified in favor of S1051: Mike Shirly, General
Manager of Bogus Basin Ski Report, Charles Coulter, Idaho Coalition of
Motor Cycle Safety.



Senator Davis moved, seconded by Senator Werk, that S1051 be sent
to the Senate with a Do Pass Recommendation. Motion was carried by a
Voice Vote. Senator Cameron debated against the Motion stating that
the committee in the past has been strongly opposed to mandates.

Senator Goedde will sponsor S1051.

S1066 Will be heard at the committee meeting on February 20, 2003
S1050 Will be heard at the committee meeting on February 20, 2003
S1084 Will be heard at the committee meeting on February 27, 2003
S1085 Woody Richards, Old Standard Life Insurance Company stated the first
section of the Bill authorizes participation interests. Section 2 of the bill
specifies certain investment restrictions with certain limited mortgage-based exceptions. Section 3 will permit insurance companies to issue
stock other than one class of common stock. Section four eliminates the
requirement that each corporate director of a stock insurance company
own at least one share of the companies stock. Senator Cameron
moved, seconded by Senator Goedde, that S1085 be sent to the Senate
with a Do Pass Recommendation. Motion was passed by a Voice Vote.

Senator Goedde will sponsor the bill.

ADJOURNMENT Meeting was adjourned at 3:30 p.m.






DATE: February 20, 2003
TIME: 1:15 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk,
MEMBERS
ABSENT/

EXCUSED:

Senator Malepeai
MINUTES:
S1050 Micheal Kane, Idaho Sheriff’s Association, stated that not only does
S1050 shift a gigantic bulk of the general fund into the PERSI system, but
it also tightens up a lot of the language that is currently in the law.
Senator Stegner
stated that we inadvertently established an unfunded
liability for the state, every year, and this makes that eventually go away
in terms of placing that benefit in PERSI. Senator Noble questioned why
fire fighter volunteers aren’t included in S1050. Micheal Kane replied that
PERSI does not have the money to pay for both the professional fire
fighters and volunteer fire fighters. Ken Harwood, Association of Idaho
Cities, stated that the Association of Idaho Cities is opposed to the Bill for
the following reasons: 1) The Bill has a fiscal impact of over $90,000 to
Idaho’s cities. 2) The provision of benefits is a decision usually left to
local officials as they make budget decisions and engage in negotiations
with employees. 3) Several cities already provide a death benefit
insurance policy for employees. 4) The death benefit applies to two
groups of city employees, police and firefighters, leaving out the other
employees. Senator Stegner moved, seconded by Senator Werk, that
S1050 be sent to the Senate with a Do Pass Recommendation. Motion
carried by Voice Vote with Senator Noble voting NAY.
S1066 Patrick Collins, Hawley Troxell Ennis & Hawley LLP, stated that the
purpose of S1066 is to clarify the procedure of garnishment, particularly
where the garnishee is a banking or trust corporation with more than one
office in Idaho. Under current law, banks can designate a particular office
to accept all garnishments on the bank, but the law does not specify how
banks are suppose to make that designation. This Bill would provide for
designation by notice to the Department of Finance. Senator Goedde
moved, seconded by Senator Compton that S1066 be sent to the Senate
with a Do Pass Recommendation. Motion carried by a Voice Vote.
ADJOURNMENT Meeting adjourned at 2:05 p.m.






DATE: February 25, 2003
TIME: 1:15 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators, Stegner, Davis,
Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

Senator Cameron
MINUTES: Senator Werk moved, seconded by Senator Malepeai, that the minutes
of February 18, 2003 and February 20, 2003 be passed. Motion carried
by a Voice Vote.
S1125 Senator Stegner stated that S1125 will simply appoint the Health Care
Task Force as the office joint committee to monitor the High Risk Pool,
thereby preventing the need for appointing a separate committee.
Senator Stegner moved, seconded by Senator Compton that S1125 be
sent to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote.
S1119 Senator Sorensen stated that S1119 has to do with the Drug Free Work
Place law that was put into place a few years ago. This Bill will
significantly provide an opportunity for public employers to also have a
Drug Free Work Program. After reviewing the 4th Amendment restrictions,
we have talked with the Attorney General and various people and what
they have said is that we can do what is called a “post conditional” drug
testing. In other words if someone comes in the employer could say “yes,
I would like for you to work with me, but you will have to be tested for
drugs.” Also, they can be tested with reasonable suspicion. If someone
is out of work and returns, they can be tested. There would also be
testing for post-accident testing. With this, there is enough testing so that
employers/agencies can get some relief on there workers’ compensation
premium. Jill Chestnut, Executive Director, Drug Free Idaho, testified
in favor S1119. Senator Stegner moved, seconded by Senator Werk,
that S1119 be sent to the Senate with a Do Pass Recommendation.
Motion was carried by a Voice Vote.
S1097 Alex Labeau, Idaho Association of Realtors, stated that one of the
arguments with S1097 that clarifies the role of a real estate broker, is that
there have been some statements that this Bill reduces the role of a real
estate broker in an agency situation to something that is similar to a
customer relationship, or lower standard. I would like to point some of the
language that is still in the legislation. On point 3, “we are still required to
promote the best interest of the client in good faith, honest and fair
dealing, including but not limited to, disclosing all the adverse material
facts and seeking a buyer to purchase the sellers property under terms
and conditions acceptable to a seller…” Also, when appropriate,”we will
be required to advise the client to obtain professional inspection of the
property…” David Kerrick, Idaho Trial Lawyers Association, stated
that they are concerned that what the realtors are requesting is that part
of their duty would be eliminated with respect to their clients. In the
statute there a number of duties you can give to a client or customer.
When the client has a higher level of duties, and as a buyer you want to
be represented well, you tend to want to be treated as a client rather than
a lesser degree of a customer. What we see particularly troubling is that
the higher level of duty contained in the client relationship is being
reduced to where it is similar to the customer. T.J. Angstman, stated that
the broker should have to do his professional duties without the buyer
asking for it in writing. The consumer expects the broker to go out and
inspect to ensure that the property is right. The issue is what comes
down to a reasonable investigation. Senator Davis asked that if a realtor
could satisfy the duty by having the client check off the box that reads “we
are encouraging you to have somebody else inspect the property”, how
does that satisfy your concern? T.J. Angstman replied that would satisfy
their concern. Senator Goedde moved, seconded by Senator Compton
that S1097 be sent to the Senate with a Do Pass Recommendation.

Senator Davis stated he will be voting in favor of S1097 because we are
striking language in lines 32-34. I look at sub part 2 on 22 of the Bill and it
says that they still have the duty to exercise reasonable skill and care,
and I believe that is some pretty broad language. Counsel indicated that
on sub part B that if we use the phrase “a reasonable inspection of the
property” that might be something he would feel more peaceful with. As I
look at certain language on page 2 line 25 it says that “owe no duty to a
client to conduct an independent inspection of the property.” Because
there is the language on reasonable skill and care, and it specifically talks
in sub part 6 as being inserted, that it only applies to the inspection of a
property, not an investigation of the property. I will be supporting S1097.

Motion was passed unanimously by a Roll Call Vote. S1097 will be sent
to the Senate with a Do Pass Recommendation. Senator Goedde will
sponsor the Bill.
S1086 Dave Whaley, AFL-CIO, stated that S1086 would reinstate the minimum
wage. This Law would protect Idaho workers by decreeing that workers
must be Idaho citizens to work on public works projects. Secondly, this
Law would prevent out-of-state contractors from wage cutting public
works jobs by bringing out-of-state work force. This is not a union vs.
non-union Bill. Senator Davis stated that it seems that what S1086 is
doing is compelling the contractor to hire a 100% of Idaho residents.
Dave Whaley replied that the Bill does say 100% with that stricken. The
preference deals with the 100% and 10%. It does deal with occasions
that we won’t have enough Idaho residents for the workforce. Senator
Malepeai
asked if the prevailing wage can be different from county to
county? Dave Whaley replied YES. Wages are determined by either
Idaho Department of Labor survey standards or the Federal Department
of Labor standards which are, or has been, the practice in the past.

Senator Noble asked what determines Davis Bacon Wages. Dave
Whaley
, stated it is an average of the county wages including benefits.
Senator Werk asked why is S1086 defining an eight hour work day.
Dave Whaley replied that every bit of the language in S1086 is the same
as the existing legislation before 1985 when it was taken out and
repealed. AFL-CIO put back the language that was there prior to 1985.



Brad Cederblom, AFL-CIO in Rathdrum, testifies in favor of S1086.

Steve Ahrens, President, Idaho Association of Commerce and Industry
(IACI), stated that in S1086 there is concern with the removal of the
requirement to hire 95% of Idaho workers. The business community and
public entities do not believe it would be a good idea to reimplement that
piece of legislation that was in effect prior to 1985.

Jerry Peterson, Idaho Building & Construction Trades, testified in favor of
S1086.

Pete Skamser, National Federation of Independent Businesses (NFIB),
represents 7000 Idaho members. He stated that another problem with
S1086 is the eight hour definition. There is always flexibility where one
can work four 10 hour days, three 12 hour days, etc. Why do we have all
this tremendous definition of an eight hour day? In 1985 when this was
repealed, that language in the legislation was for when you start getting
paid overtime. You worked four 10 hour days, you got paid two hours
overtime each day. Our membership does not like this type of legislation
and many members would not even consider bidding on a Davis Bacon
project because they can’t pay those types of wages.

Bob Corbell, represents HVAC and several general contractors, stated
that they do oppose the Bill.

Senator Marley stated we will have 32 states in the union that have
prevailing wage. It is worth while to stop and take a look at this, and not
just go back and revisit arguments that are 15 or 20 years old. There is
enough evidence out there to suggest that what we thought was going to
happen (in 1986) and what we thought world work, has not necessarily
taken place. It would do us well to take a look at this again and debate it
on the floor.

Senator Noble moved, seconded by Senator Davis, to hold S1086 in
Committee.

Senator Malepeai stated that he will vote NO on holding S1086 in
committee, he is not convinced that prevailing wage is going to have a
negative impact on some of the things that were talked about.

Senator Malepeai moved for a substitute motion, seconded by Senator
Werk
, that S1086 be sent to the Senate with a Do Pass
Recommendation. Chairman Andreason requested a Roll Call Vote.
Senators Andreason, Goedde, Stegner, Davis, Compton, and Noble
voted NAY. Senators Malepeai and Werk voted AYE resulting in a vote
of two in favor and six opposed. The Motion to send S1086 to the Senate
with a Do Pass Recommendation does not pass.

Senator Andreason requested a Roll Call Vote for the motion to hold
S1086 in committee. Senators Andreason, Goedde, Stegner, Davis,
Compton, Noble, Werk and Malepeai
voted AYE resulting in a
unanimous vote. S1086 was held in committee.

H29 Gavin Gee, Director, Department of Finance, stated that H29 is a
housekeeping Bill. It is an amendment to the Idaho Credit Code that
would simply incorporate as Idaho law all amendments to the Federal
Consumer Credit Protection Act. Senator Werk moved, seconded by
Senator Stegner, that H29 be sent to the Senate with a Do Pass
Recommendation. Motion carried by a Voice Vote.
H28 Gavin Gee, Director, Department of Finance, stated that H28 is an
amendment to the Idaho Residential Mortgage practices that the law
administers by our department. Some of the more important provisions
are: 1) It does provide enforcement authority to the Department violations
of Federal Mortgage Laws. The Bill makes denial of a mortgage broker or
mortgage banker license discretionary instead of mandatory. It will allow
the Department to name individual wrong doers in our enforcement
actions instead of only being able to name the company. 2) It eliminates
the trust account requirements which can be a regulatory burden. 3) It
contains a provision which was enacted last year in the Idaho Credit Code
which deals with mortgage laws. That provision would prohibit Idaho
Cities and Counties from enacting laws regarding lending activities of
companies that are otherwise under the jurisdiction of our department.
Senator Goedde moved, seconded by Senator Stegner, that H28 be
sent to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote.
ADJOURNMENT Meeting is adjourned at 3:50 P.M.






DATE: February 27, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner,
Davis, Compton, Noble, Werk, Malepeai
MINUTES: There were no minutes to approve today.
S1127 Bob Aldridge presented this amendment. Since 1961, life insurance and
disability insurance and annuities have had exemption, in whole or in part, from
the debts of a deceased insured, in Code Sections 41-1833, 1834, 1835 and
1836. Idaho Code 15-6-107 provides for procedures that creditors can take
when the probate assets of a deceased are insufficient to pay the debts of the
deceased. Senate Bill 1034 which adopts the 1998 amendments by the
Uniform Laws Commissioners to this section of Idaho Code is currently on the
floor of the House with a do pass recommendation. This bill simply adds to
each of the Chapter 41 sections in the language, “This section shall not be
affected by the terms of section 15-6-107”, which eliminates any possible doubt
about any effect on Chapter 41 exemptions.
MOTION: Motion was made by Senator Goedde to send S1127 to the floor with a do
pass. Second was by Senator Stegner and the motion carried by a voice
vote.
S1090 Senator Compton presented this bill that amends existing law to provide for
land-based port district authorization; to provide for the formation of land-based
port districts; to provide for the formation of regional land-based port districts; to
provide for annexation of land to land-based port districts; to provide for
commissioners and commissioner districts; to provide for the revision of
commissioner districts; to provide for the application of designated law relating
to port districts; and to provide for dis-incorporation of land-based port districts.
This bill is patterned after the Lewiston Port Authority, and neighboring states
are now implementing the procedures that asked for with this legislation. It’s
purpose is to expand the opportunity of creating port districts to areas that are
not adjacent to continuous waterways and to allow the creation of port districts
in multiple county situations.



Nancy Eschief Murillo, representing the Shoshone Bannock tribes in Ft. Hall,
Idaho spoke in opposition to the bill. She said the airport is located near the
reservation in Fort Hall, Idaho, where they have 544,000 people living. The
tribe is trying to buy back land with taxes, and she felt that the Shoshone
Bannock tribe has the right of first refusal.



Dale Aldridge, President, Port of Lewiston commission, spoke in favor of the
bill saying that the port is very involved in international trade. The cargo is
almost 100% outbound as opposed to inbound. Most importantly, is the
economic development and job creation.



Vicki Meadows, Power County Commissioner spoke in Opposition to the bill.

Paul Lage, prosecuting attorney for Kootenai county spoke in opposition to the
bill saying they are ini favor of economic development, but have some
questions as to what this bill will do. He felt that there is no reason why a port
authority needs to cross county lines, and that this legislation is unclear as to
where you would vote.



Ray Bursted, President, Idaho Economic Development Assn. spoke in favor of
the bill, saying that the Assn. sees that this could be a great economic
development opportunity and passing of this bill would attract more industry to
the state.

Steve Ahrens spoke in opposition to this legislation on behalf of the Idaho
Association of Commerce and Industry (IACI) There are members who are in
support, but as IACI is a broad based association and they make decisions
based on what the members consider to be in the best interest of the state
business community as a whole. He said attempts had been made more than
once to broaden the port authority, and IACI was opposed to those as well.
They appreciate all the efforts put into this, but they have reservations, and no
argument about two areas. The desire of the sponsors to accomplish economic
development, and the eagerness to do it, is appropriate, Also, the success of
the Lewiston Port has been a star in Idaho’s economy for a number of years.
Whichever way the debate of this goes, it is not reflective of the Lewiston Port.



The Association feels they don’t have answers to the following issues.

1. There is concern about creation of addition taxing districts in the State of
Idaho, as 60 new ones have been created in the last year. There are now 1066
in Idaho, all with the ability to levy taxes.

2. The members have said they are not convinced that it is necessary to make
this change in order to carry on economic development activities.

3. The tax that would be levied, which would be 1/10th of 1%, as Senator
Compton said, but ten years ago, the tax proposal was a small thing as well,
and with the addition of tax districts, and we are all paying more taxes. It does
add up as you multiply it by the number of taxing districts. The big things can
get out of hand when you don’t pay attention to the small things.

4. The existing port authority statues are designed for a specific purpose, that
of a seaport and there is no question about the existing port’s authority. The
question is if the statutes are applicable to a totally different thing, which is a
land-locked facility. There are questions to be answered before deciding
whether to take a seaport statute and magically transform it by adding an “or”
and make it into a land-locked statute. In Section 70-15-05, the language is
very broad in authority, yet powerful.



IACI members want to be sure that when the purpose of this statute is
transformed, that it is still okay in its new application where you are going to
contemplate a new port district in Blaine or Elmore County. He asked that the
bill be held in committee.



Senator Goedde asked if the port districts have ever been challenged
according to constitutionality, and was told by Mr. Ahrens that as a
Statesman/Reporter he covered the story when the port was established at
Lewiston and to his knowledge it hadn’t ever been challenged.

Senator Werk asked if he had the picture correct, as he felt he had heard two
different things from Mr. Ahrens. One being an aversion to a proliferation of
taxing districts, no matter what they are for. The other is that there is a level of
discomfort with some of the language in the bill which was written for something
else, and with some changes could work for this issue. Could the language be
altered so that IACI would be comfortable with it, even though it would create
taxing districts? Mr. Ahrens responded that members of IACI are interesting in
economic development and making Idaho a better place to do business, but
they are concerned about more taxing districts. Whether that means that the
proposal, after being weighed, and with all the elements might lead them to
support it, he wouldn’t say. He did say they are very concerned about the
proliferation of taxing districts in the last 10 years and would like to hold them
as low as possible.



Senator Compton commented that IACI is viewed as an organization that
promotes programs that would enhance the economic conditions and the
atmosphere by where Idaho could do business, and he can see this legislation
as something that can move us in that direction. Sometimes there aren’t laws
that enable us to do these things, and the local communities have to find ways
to rebuild their communities, given the atmosphere as with Astaris and Micron
and those kinds of business. Little communities are desperate for these kinds
of things and if we can come up with things where they have local input
whether they are taxing themselves for something of benefit of the community,
would Mr. Ahrens still be opposed. Mr. Ahrens responded that he wanted to
make sure that the statutory language that is written specifically to apply to one
narrow project will apply equally to all 43 other counties under different kinds of
operations, and concerns. The members are not comfortable right now as to
how that relates.



Charles Clark, representing Union Pacific Railroad spoke in support of S1090.
He felt uncomfortable following the Pres. Of IACI, as he has been a member of
that organization for 26 years.

He feels he understands transportation in our state quite well, and he is
learning more about economic development. He also was asked by Governor
Kempthorne to look at the situation in Bannock County. From a transportation
angle, Pocatello ought to be a transportation hub, maybe not a major one like
Portland or Seattle, but there are things that can be done in Southeastern Idaho
to make this a hub. There are major Interstate highways, 84 and I-15 and the
railroad rolling through there, and, the airport and the infrastr5ucture lends
itself to this type of transportation hub. My company would prefer to do this, but
even then they don’t have enough spaces to fill the needs of the hub that is
being looked at. Looking at the members of the committee, he could make a
case for a port district for transportation needs in each of their areas. There
are two possibilities in Treasure Valley, one at Orchard, and one at Nampa.
Going farther north, from a railroad point of view they are two class one
railroads, UPRR and Burlington Northern that run through Kootenai county.
This could capture some of the NAPA business that is running through Canada
and moving across. UPRR is not a great fan of paying additional taxes and
there would be more taxes if this port district were put in place, but the
conclusion the company’s tax department has come to is that the benefits
would probably outweigh the tax. UPRR serves the port of Montana out of
Butte, and Montana’s economy is similar to Pocatello, which has survived some
tough economic times. The credit for the success of that port is the excellent
manager there. That port has provided jobs and alternative transportation
modes dealing with grain, fertilizer, aggregates, and if it weren’t for the port of
Montana, he questions whether the UPRR line would survive from Pocatello to
Butte.



General Motors approached UPRR and asked for a distribution carrier for their
products to serve the Dakotas, part of Minnesota, Wyoming and Montana, and
a need a place to bring the automobiles. One phone call was made to the port
of Montana, and they built a fence, asphalted some ground, had the personnel
and now all the vehicles from General Motors are distributed out of Montana.



Ken Estep, Power County Commissioner spoke in opposition of the bill, as
they feel it is unclear as far as economic development. FMC (Food Machinery
and Chemical Corporation) in Pocatello is 11% of their tax base and they are not
opposed to the economic development in anyway. He said the Commissioners felt that
if it is going to be voted in by the county, it should be a super majority or at least 60%,
and not a simple majority and if it involves two counties, this should pass both counties
by this percent.



Neil Coldwell representing Avista Corporation, a gas and electric utility that
operates in northern Idaho, previously known as Washington Water Power.
They are headquartered in Spokane, but do have about 30,000 customers in
Idaho. One of those customers is the Port of Lewiston, and they are in favor of
the economic aspects of this proposal. Avista is a member of IACI, and some
friends are in favor and some are opposed. Whenever the Legislature grants
authority to an area to create taxing districts it is always a tough decision as to
whether the benefits are going to outweigh the costs and risks associated.
With the caps on property tax that goes with this, is felt to be a fairly reasonable
restriction. A lot of the discussion seems to apply around the Pocatello area,
but it can apply to other areas of the state. With the situation that the state
finds itself in, it may be time to go ahead and expand these districts, and let
those locals decide to take that risk. He encouraged the committee if they
weren’t going to pass the legislation in its current form, to not let the issue die,
but address the specifics to solve the concerns.



Senator Marley told the committee that this was the first baby step, and if this
legislation passed, nothing would happen until it goes to the local level and
starts working. They tried to find a simple solution and put in and “and’s” and
“or’s” to make it both river and land based, but it got the legislation headed in
the area it needs to go. A trailer bill can come back with the election issues, if
that is a concern, because nothing is going to happen in the communities until
they have the idea of the concept of a port authority . There is a lot of interest
in port authority in Southeastern Idaho, and he felt that one in Bannock County
should be considered in McCammon, where there are two railroads coming
from Wyoming and Utah, and !-15 joins Highway 30, which would be a perfect
place for economic development and a port authority. There are those who
would like to look in the direction of the airport. It will create some much
needed infrastructure to attract businesses to this area. He admitted that this
isn’t a perfect bill but hopes it will be sent to the floor for debate.



Senator Compton responded to the issues raised in discussion. Before
anyone can be annexed in a voting district, the voters have to give approval.
Establishing a free trade zone, has nothing to do with port authority. In lieu of
taxes, if the port authority owns the building and they have a tenant who is
normally a tax paying entity, they pay the rent and the taxes on top of that.
That goes to the treasurer and is distributed to the taxing districts. The port
authority has the qualification that they can get snow plows or other materials
through the federal government, and have that ability. The people that drafted
this have worked very well with the Lewiston port authority and feel that it will
operate well off the Navajo river. Looking at what other states have done, it will
work in Idaho and is a great tool for economic development. Nothing is easy,
our forefathers would not have come here and built schools, etc. if it they took
the easy road. This will help the schools and he feels it should go forward.

MOTION: Senator Stegner made a motion to send S1090 to 14th order for
amendment. Second was by Senator Davis and a Roll call vote was taken
with all Senators voting aye. Motion carried.
S1110 Senator Clint Stennett and Senator Bert Marley co-sponsored this bill
relating to political cyberfraud, to provide that it is unlawful for a person to
commit an act of political cyberfraud with the intent to mislead, deceive or
defraud.

There is a proliferation of “political cybersquatting” which is the practice of co-opting the website domain name or address of a competitor for political office in
order to keep the public away from the competitor s website. This violates the
basic principles of free speech and denies the voter s access to information
necessary to making informed decisions in the election process. This bill makes
it illegal to engage in such practice and provides penalties.

MOTION: Motion was made by Senator Davis to send S1110 to the floor with a do
pass. Second was by Senator Stegner. Motion carried by a voice vote.
Senator Davis and Senator Stennett will carry the bill on the Senate floor.
H 175 John Mackey, Idaho Association of Insurance Providers presented this bill
relating to life insurance trade practices, amending Idaho Code, to require
payment of the proceeds of benefits under a life insurance policy within a
specified time period, to provide for the payment of interest on death benefits if
timely payment is not made and to provide that the requirement of the payment
of interest applies only to lump sum payments. Life insurers are not currently
required to pay interest on death proceeds to Idaho residents. This act provides
that a life insurer must pay interest on death proceeds if payment of the
proceeds is not made to the beneficiary within thirty days after satisfactory
proof of death is received by the insurer. (See attached #1) Mr. Mackey said
that to the best of his knowledge, there was no opposition to the bill.
MOTION: Senator Cameron made a motion to send H175 to the floor with a do pass.
Second was by Senator Werk and the motion carried by a voice vote.
Senator Cameron will carry the bill on the Senate floor.
H 176 John Mackey presented this bill on behalf of American Council of Life Insurers
and United Heritage Financial Group will reduce the minimum non-forfeiture
rate for individual deferred annuities from 3% to 1 1/2% until July, 2005. The
3% minimum rate, which was established in the mid-1970’s, has become
incompatible with the current low interest rate environment. Without this
change, insurers will be forced to discontinue offering these very popular
products. The Sunset provision allows time to develop a more permanent
solution, such as indexing while providing insurers the relief they need in order
to continue offering these products to Idaho residents. Eighteen other states
have already dealt with this issue and have enacted the new lower rate. Other
states, as we are here in Idaho, are also being asked to make this change.

The current low interest rate environment, combined with a minimum annuity
nonforfeiture rate of three percent that was set nearly thirty years ago, has
contributed to a lack of availability of short-term fixed annuities for consumers.
This legislation would reduce the minimum nonforfeiture interest rate for
individual deferred annuities to one and one half percent until July of 2005.
Such a change is beneficial to Idaho’s consumers as well as domestic life
insurers. There has been no opposition to the bill, and the National Association
of Insurance Commissioners voted in support of this change in 2002.

MOTION: Senator Cameron made a motion to send H176 to the floor with a do pass.
Second was by Senator Stegner and the motion carried by a voice vote.
Senator Cameron will carry this bill on the Senator floor.






DATE: March 4, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES: Senator Compton moved, seconded by Senator Goedde that the
minutes of February 25, 2003 be accepted. Motion carried by a Voice
Vote.
H132 Susanne Budge, Convenient Store Association, stated that H132 is a
product of a joint effort with the State Insurance Fund (SIF) and our
organization over the last year or so. We are asking in brief to modify
Title 41, Chapter 49 of the IC, The Petroleum Clean Water Trust Fund
Act, to provide for an independent board of individuals knowledgeable
and experienced in the industry. Page three, 132, creates a seven
member board appointed by the Governor. Senator Cameron moved,
seconded by Senator Werk, that H132 be sent to the Senate with a Do
Pass Recommendation. Motion carried by a Voice Vote. Senator
Cameron
will sponsor the Bill.
H179 Pam Eaton, Idaho Retailers Association, stated that H179 eliminates the
licensing, bonding, and trust account requirements for affiliates of
creditors that service creditors account, but do not hold themselves out as
collection agencies. The language adds the subsection into the
exemption section under collection agencies. This exemption is for those
whose principle business is not collecting debt. The Department of
Finance is fine with this language. Senator Cameron asked that if a
corporation with their private credit card, and is also affiliated with a
collection agency, would in any way allow that affiliate to the collection
agency avoid going through the normal licensing and bonding
requirement? Pam Eaton replied NO, it would not exempt them.
Senator Goedde stated that his concern is that we are allowing an
affiliate to act outside licensor of collection agencies based on the good
will of the parent company. If someone does cancel his/her credit card I
don’t think there is anything to stop the debt collector from using
inappropriate/illegal activities to try bring that debt back. Pam Eaton
replied that their principle business is not collecting debt, they are not
debt collectors. Senator Goedde addressed line 31 – 33 which talks
about people “acting as debt collectors.” Pam Eaton responded YES and
NO, we wrote this language with the help of the Department of Finance in
that we do recognize that our affiliates who service the entire credit card
account from beginning to end. The end part technically is “debt
collection” because they are asking for payment on the credit card. It is
not traditional third party collection agency type of debt collection.
Senator Cameron moved, seconded by Senator Stegner that H179 be
sent to the Senate with a Do Pass Recommendation.

Senator Goedde moved, seconded by Senator Compton, that H179 be
held in committee.

Chairman Andreason requested a Roll Call Vote. Senators Goedde
and Compton
voted AYE, and Senators Andreason, Stegner, Davis,
Cameron, Werk and Malepeai
voted NAY resulting in a vote of two in
favor and six opposed. H179 will not be held in committee.

Chairman Andreason requested a Roll Call Vote to send H179 to the
Senate with a Do Pass Recommendation. Senators Goedde, Cameron,
Stegner, Davis, Compton, Werk, Malepeai and Andreason
vote AYE
resulting in a unanimous vote in favor of sending H179 to the Senate with
a Do Pass Recommendation. Senator Malepeai will sponsor the Bill.

H32 Rayola Jacobsen, Occupational License Bureau, stated that H32 is a
fairly simple statute change to allow the adoption of rules requiring annual
continuing education as a condition for the renewal of licenses. Senator
Cameron
moved, seconded by Senator Werk that H32 be sent to the
Senate with a Do Pass Recommendation. Motion carried by a Voice
Vote. Senator Werk will sponsor the Bill.
H7 Rayola Jacobsen, Occupational License Bureau, stated that as we were
asked to change the renewal date, we took the privilege of deleting the
language and striking some language. What we did is change
certification and registration for licensor, updated a chapter. Basically we
are asking that we be allowed to license in the Athletic Agents profession.
Senator Davis stated that he would respectfully disagree that this is
nothing more than a cleanup. This is a fundamental policy change the
Bureau is asking the Legislature to make. That is to shift away from
requesting these individuals to register and instead inquire that they apply
for a license. If they register then they pay the fee and comply with the
statute. If a license is issued than that seems to suggest to me that the
Bureau has to write to deny them a license. Rayola Jacobsen
responded by saying that the provisions in the application act do not allow
us to refuse to issue or renew. We have brought several pieces of
Legislation in the House and Senate asking for that inclusion in a couple
of professions. Unless that is specifically stated in a statute, we do not
the ability to refuse to issue. Senator Werk moved, seconded by
Senator Davis to hold H7 in committee. Motion carried by a Voice Vote.
H32 will be held in committee. Senator Stegner opposed the motion.
H62a Shad Priest, Director, Department of Insurance, stated that many states
have special laws that apply only to bail agents and at present time Idaho
does not have any laws that specifically address the unique nature of bail
agents. This past year the Department of Insurance worked with
representatives from the Idaho Bail Bonds Association to develop some
standards and guidelines applicable to bail agents in Idaho. H62a is a
result of those efforts. H62a amends IC sections that address differences
between insurance producers and bail agents including the collection and
accounting of collateral, record keeping requirements, and allowable
charges and fees.

Woody Richards, Old Standard Life Insurance Company, testified in
favor of H62a. Senator Goedde moved, seconded by Senator Noble
that H62a be sent to the Senate with a Do Pass Recommendation.
Motion carried by a Voice Vote. Senator Goedde will sponsor the Bill.

H30 Shad Priest, Director, Department of Insurance, stated that H30 clarifies
language so as to acknowledge that some of the examiners in the
Department are contractors. Senator Stegner moved, seconded by
Senator Stegner that H30 be sent to the Senate with a Do Pass
Recommendation. Motion carried by a Voice Vote. Senator Noble will
sponsor the Bill.
H58 Shad Priest, Director, Department of Insurance, stated H58 amends IC
which previously sanctioned the confidential treatment of information
received from the National Association of Insurance Companies. This will
allow State and Federal regulators to exchange confidential information
about the entities they are regulating. Senator Goedde moved,
seconded by Senator Compton that H58 be sent to the Senate with a Do
Pass Recommendation. Motion carried by a Voice Vote. Senator
Goedde
will sponsor the Bill.
H59 Shad Priest, Director Department of Insurance, stated that H59 amends
some important parts of the State Insurance Code and places restrictions
on types of assets these companies may invest in. The idea underlining
these laws is that insurer should only invest in a high quality asset that
can be liquidated into paid claims if necessary. Senator Davis asked if
they would have a problem with the concept of including the term default
in the Bill. Shad Priest replied that he would not. Senator Davis moved,
seconded by Senator Cameron that H59 be sent to the 14th order.
Motion carried by a Voice Vote. Senator Cameron will sponsor the Bill.
H60 Shad Priest, Director, Department of Insurance, stated that H60 will
repeal and amend IC which requires insurers and holding companies to
obtain a solicitation permit from the Department of Insurance before
offering securities. Senator Cameron moved, seconded by Senator
Goedde
that H60 be sent to the Senate with a Do Pass
Recommendation. Motion carried by a Voice Vote. Senator Compton
will sponsor the Bill.
ADJOURNMENT Meeting was adjourned by 2:50 p.m.






DATE: March 6, 2003
TIME: 1:15 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES:
S1133 Bob Corbell, stated that this legislation deals with HVAC contractors.
HVAC is the only organization of trade that does not have their own
bureau inside the Building Safety Division. Right now we do not have
anything that identifies HVAC apprentices nor do we have anything that
identifies HVAC journeyman. Board members would come from boards
that are already in existence. Regarding certification, everybody that is in
business now, until July 2004, will be grand fathered in. There will be four
classifications for rules of competency: 1) Apprentice 2) Journeyman 3)
Contractor 4) Specialty Contractors. Dennis Davis, representing the
majority of the building officials across the State, stated that if they had
been involved with the drafting of this Legislation they would not be
opposed to it. Some specific issues they have are: while the Board is
charged with adopting promulgating rules relevant to building safety
codes, building safety professionals are by far the minority representation
on that Board. Also, the funding for this legislation is an issue because
under this Bill counties won’t be allowed to do their own inspection
program, therefore the State won’t have the benefit of the fees generated
in the larger areas.

Paul Aston, Idaho Association of Building Officials, Jennifer Gilliland,
Building Division Manager, City of Boise, Darrell Mayes, representing the
City of Caldwell testified in opposition of S1133. Ben Kohler, Idaho
Mechanical Contractors, Pat Minegar, HVAC Association, Jim Bledsoe,
HVAC Association, Jerry Peterson, Idaho Building Trades Council, John
Eaton
, Building Contractors Association, and Neal Colwell, VISTA
CORP. that serves about 100,000 customers in central and northern
Idaho, testified in favor of S1133.

Bob Corbell stated that they tried to address the code. We have cities
and counties using the International Building code. We also have people
using the Uniform Mechanical Code. I don’t think it is up to us with this
Legislation to tell everybody they are going to use a specific type of code
when Ada County is using Uniform Mechanical Code and the City of
Boise is using the International Code.

Senator Cameron stated that he is having trouble with the fiscal note on
the Bill. Under Joint Rule 18, the fiscal note doesn’t properly address the
fiscal impact, I would like to know what the impact would be to the
plumbing board. Bob Corbell replied that the fiscal impact has no impact
on the General Fund. Senator Davis stated that he agrees with Senator
Cameron
in challenging Joint Rule 18, and recommends holding the Bill
in committee to a time certain so that an amended Statement of Purpose
can be prepared. Chairman Andreason decided to hold the Bill in
committee for one week.

H143 Bob Corbell, Independent Electrical Contractors, stated they have an
apprenticeship training program in all the Colleges and Universities, plus
TVCC and NNU in Nampa. The loop hole in the existing law which is
contrary to what we do with the contractors is: after a person has been an
apprentice for many years, he/she has had no continuation training. What
this Bill does is that if an apprentice has been out of school for more two
years or more, that person is required for continued apprenticeship
training. Senator Davis moved, seconded by Senator Compton, that
H143 be sent to the Senate with a Do Pass Recommendation. Senator
Compton
will sponsor the Bill.
H133 John Eaton, Government Affairs Director, Building Contractors
Association, stated that this Bill allows the contractors to examine a
construction defect and make an attempt to fix the problem prior to the
lawsuit being filed. We believe that the net effect of H133 will be positive
and help reduce the amount of litigation that is filed. One contractor here
builds around 30 houses a year, and was paying $8000 in liability
insurance. Last year he paid $25,000 and this year it was renewed at
$75,000.

Most construction defects are settled without having to go through
litigation. We believe that this legislation applies to someone who is
ready to go to court.

Alex Labeau, Idaho Association of Realtors, testified in favor of H133.

Lynn Luker, Idaho Trial Lawyers Association testified in opposition of
H133. Most homeowners wouldn’t know that this procedure is out there.

Representative Gagner stated that he is in the contracting business and
testified in opposition of H133 and has just finished his 700th home in an
18 year period. The language that takes place under “right to cure” is
taken from a 210 warranty program that has been available on the market
for about 15 years. I have used it on all the homes I have built and have
yet to go to court.

David Kerrick, Idaho Trial Lawyers Association, testified in opposition of
H133. This piece of Legislation is very confusing and there is already
procedure in place for dispute resolution and this adds a superstructure of
more complexity.

Jeremy Pisca, Idaho Homebuilders Association, stated that this
Legislation is not a notice period that you have to give your contractor
before he comes out to fix something. It is a notice provision before you
sue. Brad Dixon, BMC West testified in favor of H133. Senator Goedde
moved, seconded by Senator Compton, that H133 be sent to the Senate
with a Do Pass Recommendation. Motion carried by a Roll Call Vote,
eight AYE’S and one NAY by Senator Stegner.

H134 Alan Cameron, President, Idaho Credit Union League stated that every
industry that has to do with e-commerce has to deal with identity theft.
What this Bill does is to require merchants who accept payment cards to
print on the receipt no more than the last five digits of the account number
and to not print the expiration date. It doesn’t apply to receipts that were
created by a mechanical imprint, only to electronic receipts. This does
not become effective until January 1, 2004 for new equipment and
January 1, 2005 for all other equipment. Senator Cameron moved,
seconded by Senator Werk, that H134 be sent to the Senate with a Do
Pass Recommendation. Motion carried by a Voice Vote. Senators
Goedde
and Werk will sponsor the Bill.
H177 Jack Lyman, Manufactured Housing Association, stated that H177 is an
Oregon statute that would allow an existing manufacture community to be
subdivided so that the lot could be sold to the individual on it. I worked
with the Association of Cities over the interim, they made changes to the
Bill. Subdivision law is primarily directed at undeveloped unimproved raw
ground. When you go through the subdivision process, local Planning
and Developing sets the parameters under which you can develop the
land. What I am asking for is special treatment because we have special
circumstances. We have an existing park, I have water and sewer hook-ups in specific places. Kerry Ellen Elliott, Idaho Association of Counties,
stated that there is a policy issue at stake. That is, should any land
owner, whether a mobile home park owner or not, decide to subdivide and
develop property, be exempt from subdivision procedures provided for in
the local Land Use Planning Act. Senator Compton moved, seconded
by Senator Stegner, that H177 be held in committee. Senator Davis
moved for a substitute motion, seconded by Senator Cameron to adjourn
and finish hearing testimony on H177 next Tuesday, March 11, 2003.
ADJOURNMENT Meeting was adjourned at 4:00 p.m.






DATE: March 11, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES: Senator Compton moved, seconded by Senator Goedde that the
minutes from March 4, 2003 be accepted. Motion carried by a Voice Vote.
H9a Representative Black stated that this Bill is supported unanimously by all
the various factions within the Funeral Directors and Morticians. H9a has
come around primarily because of some change in culture and customs in
reference to cremation. The Funeral Director will be allowed to make
funeral arrangements with the family under the direction of the Mortician.
Roger Hales, representing the Bureau of Occupational Licenses and the
Board of Morticians testified in favor of H9a. Senator Andreason clarified
that morticians are licensed, and funeral directors are not. This Bill would
license the directors. Steve Gordon, Mortician, Co-Owner Alden Wagner
testified in favor of the Bill. Senator Goedde, seconded by Senator
Compton
, moved to send H9a to the 14th order with the amendment.
Motion carried by a Voice Vote. Senator Compton will sponsor the Bill.
H11 Representative Black stated that H11 simply repeals existing crematory
law which replaces H9a. Senator Compton moved, seconded by Senator
Noble
that H11 be sent to the Senate with a Do Pass Recommendation.
Motion carried by a Voice Vote. Senator Compton will sponsor the Bill.
H177 Jack Lyman, Idaho Manufactured Housing, stated that the concern he has
heard from most of the committee members is: does the state have a role
in telling local governments what to do in this area. Current state law does
prohibit the discrimination against manufactured housing and sub-divisions. State law prohibits the requiring of a garage to be included with
a manufactured house unless a similar restriction is placed on a site built
house. I want to emphasize again that no park can enter this process
unless it meets the criteria established in the Bill. Senator Goedde stated
that this Law gives the manufactured homeowner’s an automatic home
free. Jack Lyman, stated that the reason the Bill is needed is that the
counties will tell you they can go through the existing process. We have
been through the process to get cited even as a park, and we know that
the answer is always NO. Senator Stegner stated that if the park fails to
meet the county standard today, I fail to see the reason that the State of
Idaho ought to mandate to the county that they allow it to become a
permanent installation. Jack Lyman, replied that we MUST meet the
current standards for a manufactured housing park. What we may not be
able to meet is the standard imposed on a sub-division.

Senator Cameron moved, seconded by Senator Noble, that H177 be
sent to the Senate with a Do Pass Recommendation. Senator Compton
moved for a substitute motion, seconded by Senator Goedde, to amend
H177 and send to the 14th order changing the word in line 12 from “shall” to
“may approve”, and delete “mobile home park” and change to
“manufactured home park”. The Substitute Motion does not pass with a
Roll Call Vote. Six NAY’s and three AYE’s.

Motion to send H177 to the Senate with a Do Pass Recommendation
passes with a Voice Vote. Senator Goedde will sponsor the Bill.

S1084 Mike Brassey, TIAA-CREFF, stated that S1084 is a straight forward piece
of legislation and simply authorizes the State Board of Education to create
a differed compensation available to those folks who participate in the
retirement system run by the Board of Education. David High, Deputy
Attorney General wanted to bring up the point of the effective date of
contract. Senator Goedde asked Mike Brassey that in light of testimony
of Mr. High would they have a problem sending S1084 to the 14th order
and attaching an effective date? Mike Brassey stated we are all
proceeding under the assumption that it will run its course be in effect at
the end of 2005. Jane Buser, HR director testified in support of the Bill.
Senator Cameron moved, seconded by Senator Werk, that S1084 be
sent to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote. Senator Cameron will sponsor the Bill.
H206a Dennis Basford, President, Money Tree Inc., stated that the Bill prohibits
the threat of criminal prosecution on a defaulted loan. It mandates that the
fees that are allowed to be collected in the default process follow the loan
to third party collectors. It also gives borrowers a 24 hour right to rescind
the transaction with no fee imposed, and prohibits the acceptance of
collateral for a pay day loan making a clear distinction between a pay day
loan and other forms of collateral based lending like title loans and pawn.
Senator Goedde asked how the customers are notified of their rights?
Dennis Basford stated that they have a contract that everyone signs that
has the ATR boxes that has the payment amount and due date as well as
additional disclosures, so certainly their rights are within the contract.
Senator Davis moved, seconded by Senator Cameron, that H206a be
sent to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote. Senator Davis will sponsor the Bill.
H180 Phil Barber, stated that H180 addresses a unique set of circumstances
that became highlighted on December 31st last year. It relates to the
application of a very old statute in insurance code 41-1849 which was last
revisited in 1961. It relates to two kinds of insurance coverage first party
insurance coverage that didn’t even exist in 1961, uninsured and under
insured motorist coverage. A big deal has been made about the word
“tender” as S1839 currently reads and “offer” as H180 reads and it is a
distinction without differences. What H180 does is provide for the
provision of information which is a pre-condition to recovery under the
terms of the policy. Thirty days will be extended to 60 days because the
evaluation of issues of liability takes time and involvement. The Bill
requires that, in order to avoid attorneys fees the insurance company ought
to make an offer, it doesn’t mandate that anybody make an offer and puts
no obligation on the insured side at all. Senator Cameron asked about
the 60 from the receipt of notice that the insured is making a claim, the
current law is that you have 30 days from “proof” of the claim, why are we
making that adjustment to the law? Phil Barber replied that what the
existing law says is “30 days after proof of loss”, what that has turned into
is a one or maximum two page letter containing no, or virtually no
information necessary to evaluate the claim. Senator Cameron stated
that “I’m buying the uninsured/under insured insurance to protect myself. It
appears that we are jumping through hoops as if it were the other parties
insurance, why the 20%? Phil Barber stated that we want people to a
place where they are negotiating in good faith.

Lt. Governor Risch stated that this Bill talks about attorneys fees, it has
very little to do with attorneys fees. The attorney is always going to get
paid. What this Bill does do is make a very basic change in relationship
between the first party insured and the insurance company. If a guys place
burned down and he had business interruption insurance, he was in
financial trouble. The company has to investigate, evaluate and at the first
part of the case they have to pay. That is exactly what the law says today.
H180’s SOP says that “this Bill provides an orderly process for the
resolution process.” We already have that in IC 41-1839.

Rod Seatrum, Lawyer, Farm Bureau, testified in favor of H180.

Senator Cameron motioned, seconded by Senator Stegner that we
adjourn and continue hearing H180 3/13/03.

ADJOURNMENT Meeting is adjourned at 3:40 P.M.






DATE: March 13, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

Senator Noble, Senator Andreason
MINUTES:
S1133 Bob Corbell, HVAC stated that at the committee hearing of March 6th
Senator Cameron requested an explanation of the fiscal impact. There
is no fiscal impact to the general fund. The posting that the plumbing
board would contribute would be $6500.00. We do not see a negative
impact to the cities and counties because the two gas companies,
Intermountain Gas and VISTA, are going to get out of the inspection
business and so the cities and counties are going to have to take that
over. There would be a generation of funds based on the inspection fees
that would go to cities and counties. Senator Cameron asked how many
employees (inspectors) would the city of Coeur d’ Alene have to hire.
Bob Corbell replied he does not know because he does not know what
their inspector load is right now. Senator Davis asked for clarification,
from a safety point of view, why this particular board would be necessary
in comparison to the electrical and the plumbing. Bob Corbell stated that
we feel there is every bit as much safety involved in HVAC. We just feel
there needs to be more of an individual safety emphasis in the heating
and ventilation plus in the energy portion of that too.

Jerry Peterson, Building Trades Council, testified in favor of S1133.

Derrell Mayes, Idaho Association of Building Officials in the City of
Caldwell stated his concern of S1133 is its impact on cities and counties
that are currently employing building and mechanical inspectors. If the
Bill is passed, these people could loose their jobs.

Senator Stegner moved, seconded by Senator Compton that S1133 be
sent to the 14th Order. Senator Cameron moved that S1133 be held in
committee, there is no second. Motion to send S1133 to the 14th Order is
carried by Voice Vote.

H180 Brad Dixon, National Association of Interim Insurers, which is a trade
association of over 70 property and casualty insurers testified in favor of
H180 which adds to existing law to provide an allowance of attorney’s
fees in disputed uninsured and underinsured motorist claims. It also
extends the number of days to provide necessary paperwork for your
claim from 30 to 60 days. Senator Cameron asked who gets to make the
determination of whether or not the insured is in compliance, under this
proposed Bill. Brad Dixon replied that it is the insured, insurance
company and if those two parties break down it’s the boards. Just like a
bad faith case.

John Bush, Idaho Trial Lawyers Association testified in opposition of
H180.

Ron Tucker, Claim Fee Manager, State Farm Insurance testified in
opposition of H180. Senator Cameron moved, seconded by Senator
Stegner
, that H180 be held in committee. Senator Noble moved to send
H180 to the 14th order, there is no second. Motion to held H180 in
committee was carried by a Voice Vote.






DATE: March 20, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk,
MEMBERS
ABSENT/

EXCUSED:

Senator Malepeai
MINUTES: Senator Werk moved, seconded by Senator Compton, that the minutes
of March 6, 2003 be passed. Motion carried by a Voice Vote.
H248 Teri Ottens, Deputy Director, Idaho Association of Mortgage Brokers,
stated that currently there are three groups that are exempted from the
existing law; accountants, attorneys and realtors. It is our position that
anyone dealing with a broker in mortgage loans should be licensed and
knowledgeable of federal regulations as well as using the best practices
as possible. The Bill before you seeks to remove the exemption for
realtors. Senator Goedde moved, seconded by Senator Werk that H248
be sent to the Senate with a Do Pass Recommendation. Motion carried
by a Voice Vote.
H313 Chuck Goodenough, Deputy Secretary of State, Commercial Division
stated that H313 revises the statute dealing with the filing of assumed
business names. It deletes the requirement that assumed business name
filings be renewed every five years and adds $5.00 to the initial filing fee
of $20.00 to make up for any lost revenue. Senator Andreason asked
what if a business goes out of business using their assumed name and
they haven’t filed, and another business wants to use that name. Chuck
Goodenough
replied that both businesses would be using the same
name because the statute does not afford any name protection to anyone
using an assumed name. Senator Noble moved, seconded by Senator
Compton
that H313 be sent to the Senate with a Do Pass
Recommendation. Motion carried by a Voice Vote.
H331 Rayola Jacobson, Bureau Chief, Bureau of Occupational Licensing,
stated that H331 deals with landscape architects. This is a compromise
Bill that has been worked out between the Landscape Architects Board,
Consulting Engineers Association, and the Building Contractors
Association. This Bill clarifies that landscape architects are given a
license rather than a certificate. In order to qualify for a license an
architect must have a degree in landscape architecture or have eight
years experience rather than four. Senator Noble stated that if they are
taking the exam which is going to cover things that someone has not
studied, and he has to pass or he is not given his title, I still don’t think he
needs eight years if he has to go through the examination period. That
takes the opportunity out of the hands of many people. Senator Goedde
moved, seconded by Senator Stegner to send to the Senate with a Do
Pass Recommendation.

Senator Noble made a substitute motion, seconded by Senator
Cameron
to hold H133 in committee.

Senator’s Stegner and Goedde spoke in opposition of the substitute
motion. Senator Noble spoke in opposition of sending H133 to the
Senate with a Do Pass Recommendation.

The substitute motion to hold H133 in committee failed by a Roll Call
Vote; six NAY’S and two AYE’S.

The motion to send H133 to the Senate was carried by a Roll Call Vote;
two NAY’S and six AYE’S.

ADJOURNMENT Committee meeting adjourned at 2:40 p.m.






DATE: March 25, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES: Senator Malepeai moved, seconded by Senator Compton moved that
the minutes of March 11, 2003 and March 13, 2003 be passed. Motion
carried by a Voice Vote.
H306 Bart Harwood, Attorney, stated that within H306 there are two sets of
changes to the existing law. First, is the clean-up adjustments and
definitions of carrier. Second, is a single change where we clarify beyond
any doubt the reinsurance aspect of that program (high risk) is mandatory.
Senator Cameron moved, seconded by Senator Stegner that H306 be
sent to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote.
S1148 Rick Smith, representing Advantage Workers Compensation Insurance
(AWCIC) Company and Workcare Northwest stated that we have been
involved in representing AWCIC and Workcare in connection with
Department of Insurance litigation that has been on-going for a year and a
half and concerns section 41-309 IC which is that statute that would be
amended with this Bill. The specific question is whether AWCIC should
be prohibited from conducting insurance business in this state because it
is owned by Workers Compensation Fund (WCF), a company that once
was, but is no longer, a State Agency associated with the state of Utah.
The above mentioned code prohibits the conduct of the insurance
businesses in Idaho by any company that is owned or controlled by an
insurance company. Judge Key, the Hearing Officer in this case reached
a decision last September. His decision is that WCF is not a state agency
and is not a part of the Government. He also ruled, however, that 41-309
DID apply.

Senator Goedde asked Mr. Smith if he is familiar with a letter dated
March 4, 2003 to our Governor from the Governor of Utah. Mr. Smith
replied that he is not. Senator Goedde pointed out that in the letter,
second paragraph, he asks for a 100 days to complete their process in
privatizing the Utah Workers Compensation Fund. To me this is a real
free admission of what we are with is a part of the Utah State
Government.

Ryan Moose, WorkCare, Dan Stephens, Claims Manager, Pinnacle Risk
Management, Rick Roberson, WorkCare, Mike Shirley General
Manager, Bogus Basin, Torey McAlvain, President, McAlvain
Construction, Dean Summers, and Pete McDonald, Owner, McDonald
Insurance testified in favor of S1148.

Phil Barber, American Insurance Association, George Tway, Freemont
Employers and Mike Brassey testified against S1148.

Senator Stegner moved, seconded by Senator Goedde, that S1148 be
held in committee.

Senator Davis made a substitute motion, seconded by Senator Noble to
move S1148 to the 14th order to attach a one year sunset clause.

Senator’s Cameron, Stegner, and Goedde debate against the
substitute motion.

Senator’s Davis and Werk debate in favor of substitution.

The substitute motion to send S1148 to the 14th order passed by Roll Call
Vote. Five AYE’S and four NAY’S.

ADJOURNMENT Committee meeting was adjourned at 4:45 p.m.






DATE: March 27, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

Senator’s Noble and Werk
MINUTES: Senator Malepeai moved, seconded by Senator Goedde that the
minutes of March 20, 2003 and march 25, 2003 be passed. Motioned
carried by a Voice Vote.
H144a Representative Clark stated that H144 is a simple Bill that pertains to the
uniform gift act to minors. What happens now in code is that if there is a
child, for example, five years old and I go into a long term investment act
and put some money in that child’s name as a gift and then that child is
18 – 21 years old the money would be turned over to them. Some
children at the age of 21 might not be able to manage this money, so I
would like to take it from the age of 21 to the age of 25. Bradley
Diugdala, Jr.
, Financial Advisor, testified in favor of H144a stating that
this Bill gives opportunity to make better financial decisions when the child
is of financial maturity. Senator Davis asked Bradley Diugdala if he
would be able to, under the language that is before us, petition the court
for judicial review if I could demonstrate to the court that the custodian
has abused his discretion in failing to make distribution. Bradley
Diugdala
replied that all custodians are regulated under the prudent man
law and my understanding is that you are acting as fiduciary and there are
implications if you do not act as such and you start to create a personal
liability.

Senator Goedde moved, seconded by Senator Davis that H144 be sent
to the Senate with a Do Pass Recommendation. Motion carried by a
Voice Vote.

ADJOURNMENT Committee meeting adjourned at 1:55 p.m.






DATE: April 3, 2003
TIME: 3:00 p.m.
PLACE: Room 426
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

MINUTES: Chairman Andreason called the meeting to order at 1:35 p.m. A silent
roll was taken.
H 376 Senator Cameron presented H 376 that gives families of children eligible
for the Children’s Health Insurance Program (CHIP) a choice of enrolling
their children in CHIP or a new Health Insurance Access Card program.
The Health Insurance Access Card program is a premium assistance
program that would supply support for purchase of commercial insurance
either employer sponsored or individual plans. The bill would create a
capped expansion of CHIP from 150% of federal poverty to 185% of
federal poverty. The expanded CHIP program would be called CHIP plan
B and would have fewer benefits and some beneficiary cost sharing
compared to the current CHIP. The Health Insurance Access Card would
be a program choice for current and expanded people eligible for CHIP.
The bill also creates a capped pilot program for adults enrolled in small
businesses in which employees and /or their spouses up to the 185%
poverty level could enroll in the Health Insurance Access program.



The Access Card is a prepaid credit card where a qualified individual can
purchase health insurance or use it to participate in their employers group
plan. Each year the Department of Health and Welfare (DHW) would
evaluate the need and recharge the card for a 12-month period.



The children’s program will provide up to $100 per month per child in the
185% poverty level down to where a child would qualify for Medicaid.



The adult program would provide $100 per month for an individual adult.
The $100 amount would be shared between two qualifying adults in the
same family. There is a cap of one thousand (1000) adults for the
program.



Small businesses that have 2-50 employees can participate in this
program to help cover workers who qualify. If a small business offers a
health plan to their employees, they may have an employee who qualifies
for the Access Card. The business would have to pay at least 50% of the
costs for that employee. The Access Card is tied to the individual and not
the business.



The Health Insurance Access Card Program would be funded with money
from the insurance premium tax. Twenty five percent of the money from
this tax over $55 million would go to the children’s program. Twenty
percent over $55 million would go to the adult program. The Access Card
program and CHIP plan B would begin July 1, 2004. The adult plan would
begin in 2005.



Senator Cameron reported that medicaid Health Insurance and
Accountability Act (HIPAA) waivers fit right into this plan. Medicaid is
open and flexible in allowing choice.



The Health Insurance Access Card children and adult programs, have no
sunset clauses because they both have caps. The adult program is
capped at 1000 adults that are screened and qualified by DHW. It is first
come first served. The children’s program has a dollar cap. If the
program is as successful as anticipated, future legislatures would decide
if it should be expanded.



Senator Cameron reported that Idaho has 220,000 uninsured citizens.
He also reported to the committee what income would qualify a person at
the 185% of poverty level. It is based on the number in a family. One
person=$16,600 income, two people= $22,000 income, three people=
$28,000 income, four people= $34,000 income.



The Department of Health and Welfare will administer the program with
the help of the Department of Insurance. Costs would be covered by the
percentage of money over $55 million from the premium tax. The state
would pay the insurance company for the qualified individual

Motion Senator Goedde motioned to send H 376 to the floor with a “Do Pass”
recommendation
. Senator Werk seconded the motion.
Vote By unanimous voice vote H 376 passed.
Meeting adjourned at 2:40 p.m.






DATE: April 8, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Davis, Compton, Werk,
Kumm (Malepeai)
MEMBERS
ABSENT/

EXCUSED:

Senators Stegner, and Noble
MINUTES: Senator Compton moved, seconded by Senator Goedde that the
minutes of March 27, 2003 and April 3, 2003 be approved. Motion was
carried by Voice Vote.
The Governor’s
Facilities
Bonding
Proposal
Chuck Winder, Business Owner, briefed the committee on The
Governor’s Facilities Bonding Proposal. There are eight projects spread
throughout the State of Idaho:



Coeur d’Alene North Idaho College – Allied Health, Nursing & Life
Sciences Building ($10,994,000 state bond funds)



Moscow University of Idaho – Teaching and Learning Center
($11,729,000 state bond funds)



Lewiston Lewis Clark State College – Campus Classroom and Activity
Center ($10,868,000 state bond funds & $3,500,000 student & local
funds)



Nampa Boise State University – West Campus Academic Building
($8,655,000 state bond funds)



Meridian Idaho State Police – Training Facility ($2,286,000 state bond
funds)



Twin Falls College of Southern Idaho – Fine Arts Addition ($5,402,000
state bond funds & $1,857,000 in other funds)



Pocatello Idaho State University – Classroom Building and Multi-Use
Facility ($12,177,000 state bond funds & $22,250,000 in student fees)



Idaho Falls Eastern Idaho Technical College ($6,360,000 state bond
funds & $3,500,000 in federal funds)



No general fund dollars will be used for bond payments. HCR30 provides
the following:

  • Legislative approval to enter into agreements with State Building
    Authority to bond for 8 projects.
  • Lists each individual project.
  • Provides assurance that agreements will comply with state laws.
  • Fiscal note provides list of bonding amounts for each individual
    project
  • Fiscal note provides range of annual debt service of $5.25 – $5.75
    million for 20 years.


Two trailer Bills will accompany HCR30: H396 will authorize State Building
Authority to bond for Community College projects, and H397 will prohibit
future use of Permanent Building Fund Revenues to pay debt services on
new bond issues.



The immediate economic impact is expected to be $188,219,279
statewide and create 2,468 jobs statewide, including 1,233 construction
jobs.

ADJOURNMENT Meeting was adjourned at 2:15 p.m.






DATE: April 15, 2003
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Vice Chairman Goedde, Senators Cameron,
Stegner, Davis, Compton, Werk, Malepeai
MEMBERS
ABSENT/

EXCUSED:

Senator Noble
MINUTES: Senator Werk moved, seconded by Senator Cameron, that the minutes of
April 8, 2003 be approved. Motion carried by a Voice Vote.
H383 Representative Black stated that IC 29-110 statute gives Idaho residents
the right to bring suit in Idaho courts if another party to the contract is not
living up to their side of the bargain. However, there is a potential
loophole around the statute if the franchise agreement states that it is
governed by the law of another state. In that situation an Idaho court
might be prevented from hearing the law unless the law of the other state
would permit it. H383 closes this loophole and levels the playing field.
The Bill makes sure the Idaho resident has the same right to sue here.
Senator Davis stated he understands the intent of the Bill but will not vote
for the Bill until he knows it really does what he thinks it “says” it does.

Pam Eaton, Idaho Retailers Association testified in opposition of H383.
There are two primary reasons: 1) The Bill is confusing and can’t
understand the language in the Bill. They sent it to a couple of attorneys
and they even didn’t understand the language in the legislation. 2) This
piece of legislation is government inserting itself in independent decision.
The franchise law is very heavily regulated by the Federal Trade
Commission (FTC) and part of those regulations is that it spells out choice
of law, venue of law, etc. in those contracts. Senator Compton stated
that he cannot understand why the small businessmen or the franchisees
in the state of Idaho would not want protection from gigantic corporations
just because it is a government law. Pam Eaton replied that they are
afraid that franchiser will not want to come to our state. Iowa had a
similar law passed and it has hurt their franchise business. Franchisers
refused to do business in Iowa after that Law was passed. Robert
Rodriguez,
Executive, Mrs. Fields Cookies, Matt Lathrop, Government
Affairs, International Franchise Association testified against H383. Con
Paulos
, Franchisee, Dick Hand, Idaho Lodging Association, Chuck
Everett
, Hotelier, Association of Inn Keepers, Alex Labeau, Idaho
Association of Realtors, Dennis Brennen, Auto Dealers Association, Jim
Mowbry
, President, TCBY, Representative Lee Gayner, Remax Realty,
testified in favor of H383.

Senator Cameron moved, seconded by Senator Compton that H383 be
sent to the Senate with a Do Pass Recommendation.

Senator Davis made a substitute motion, seconded by Senator Stegner
that H383 be sent to the 14th Order for amendment. The substitute motion
to send H383 to the 14th Order passed by Roll Call Vote. Senators
Davis, Stegner, Goedde, Cameron, Compton, Werk and Malepeai
voted AYE. Chairman Andreason voted NAY.






DATE: Friday, April 25, 2003
TIME: 9:40 a.m.
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Andreason, Senators Cameron, Stegner, Davis, Compton,
Werk, and Malepeai
MEMBERS
ABSENT/

EXCUSED:

Vice Chairman Goedde and Senator Noble
GUESTS: See the attached sign-in sheet
Chairman Andreason opened the meeting at 9:40 a.m. to discuss a
gubernatorial appointment to the Department of Commerce.
Gubernatorial
Appointment
Gubernatorial appointment of LaMoyne Hyde of Idaho Falls, Idaho,
to be the Director of the Department of Commerce.



LaMoyne Hyde was appointed as Director of the Department of
Commerce on April 24, 2003, by Idaho Governor Dirk Kempthorn.



Mr. Hyde is a self-employed businessman from Idaho Falls, owning and
operating businesses dealing with water conditioning, sportsmen
outfitting, sales, marketing, and farming. He has been involved in all
aspects of the outdoor sportsmen and farming industries. He is well
experienced working with businessmen, sportsman, lodge owners, and
the farming industry. He has traveled extensively throughout Alaska to
South America and the United States.



He has changed the structure of his businesses; therefore, he does not
expect any business conflict while serving as director of the Department
of Commerce.



Mr. Hyde explained his many years dealing with farming and other
business interests have given him the opportunity to become very familiar
with problems relating to farming and the business industry. He has a
broad understanding of Idaho’s fish and game, farming, outfitting, waters,
and other business entities. He is aware of the challenges and the
economic needs for developing business opportunities as well as
encouraging and promoting tourism in Idaho. He understands the
industrial and tourism challenges facing Idaho’s small rural communities.
He is confident he has the political knowledge to be the director, and to
promote rural economic development



His business achievements include:

  1. Owner, operator, developer, and designer of Hyde Drift Boats
    which does business in Canada, Argentina, Norway, Chile, as well
    as throughout the United States. Hyde Boats has grown into a
    multimillion dollar business, headquartered in Idaho Falls. Hyde
    Boats has worked closely with spin-off companies from the
    INEEL’s downsizing to develop many parts used in the
    manufacture of its drift boat.


  2. Owner and operator of Hyde Water Conditioning, designer and
    supplier of water treatment equipment for commercial and
    residential applications throughout Idaho, Montana and Wyoming.


  3. Owner and operator of Hyde Outfitters with permits on six major
    rivers and reservoirs in southeastern Idaho.


  4. Owner and operator of Last Chance Lodge and Restaurant in
    Island Park, Idaho.


  5. Owner and operator of fly fisherman shops in Idaho Falls and
    Island Park.


Mr. Hyde is the first emergency medical technician in Idaho, and served
12 years with the Bonneville County Search and Rescue. He has also
served on the Governor’s Economic Advisory Council, Zions Bank
Advisory Board, Idaho Travel Council, Idaho Falls Chamber of
Commerce, and the Board of the Eastern Idaho Economic Council.



Committee members held a general discussion pertinent to numerous
areas such as:



  1. Conflict of interest with other business entities;
  2. Recreational water resources;
  3. Maintaining Idaho’s lower dams;
  4. Economic impacts and fiscal actions;
  5. Future direction planned for the Department of Commerce;
  6. Fiscal management and budget impacts, and,
  7. The importance and value of efficient usage of budget dollars.

MOTION:

A motion was made by Senator Davis that the Commerce Committee
recommends to the whole Senate that Mr. LaMoyne Hyde be confirmed
as director of the Department of Commerce. Motion was seconded by
Senator Stegner, and motion was carried by a voice vote.
ADJOURNMENT The meeting adjourned at 10:18 a.m.