Senate Commerce & Human Resources Committee

2003 Minutes

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

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: 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. Owner and operator of Hyde Water Conditioning, designer and supplier of water treatment equipment for commercial and residential applications throughout Idaho, Montana and Wyoming. Owner and operator of Hyde Outfitters with permits on six major rivers and reservoirs in southeastern Idaho. Owner and operator of Last Chance Lodge and Restaurant in Island Park, Idaho. 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: Conflict of interest with other business entities; Recreational water resources; Maintaining Idaho's lower dams; Economic impacts and fiscal actions; Future direction planned for the Department of Commerce; Fiscal management and budget impacts, and, 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.