Senate State Affairs Committee

 

2003 Minutes

 

January 13, 2003
January 15, 2003
January 20, 2003
January 22, 2003
January 27, 2003
January 31, 2003

February 3, 2003
February 5, 2003
February 7, 2003
February 10, 2003
February 12, 2003
February 17, 2003
February 19, 2003
February 21, 2003
February 24, 2003
February 26, 2003

March 3, 2003
March 5, 2003
March 10, 2003
March 12, 2003
March 17, 2003
March 19, 2003
March 24, 2003
March 26, 2003
March 28, 2003
March 31, 2003

April 2, 2003
April 4, 2003
April 7, 2003

DATE: January 13, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Davis
CONVENED: Chairman Sorensen called the meeting to order at 3:05 P.M. She introduced Katie Wiersma who will be the page for State Affairs. Then she asked Senator Richardson to chair the meeting as she is the sponsor for RS 12541.
RS 12541 A Joint Resolution commending Adelia Garro Simplot for industriousness and hard work and for making the dream of the Basque Museum and Cultural Center a reality and for her appointment by the governor of Spain as an Honorary Vice Consul of Spain to Idaho.
Senator Sorensen summarized the resolution and explained that Adelia Simplot had been instrumental in the development of the Basque Cultural Center and Museum and has recently been appointed to be Vice Consul to Spain for Idaho. On January 15, 2003, the Ambassador from Spain will be here to recognize Mrs. Simplot and Senator Sorensen would like this Joint Resolution to be read in the Senate at that time.
Adelia Simplot expressed appreciation for this honor and stated that her father's heritage was Basque and they are in touch with his family that still lives in Spain. She has been proud to work on the development of the Basque Cultural Center and feels it attracts many visitors each year and provides a valuable history lesson.
Senator Little stated that he has great appreciation for all her efforts and that she is an example of private enterprise stepping up to the challenge of meeting community needs.
Senator Sorensen stated that she strongly supports this recognition of achievement but there has been some concern from other parties. Senator Geddes asked what those objections were. Senator Sorensen stated that she was not clear but they related to the controversy in Spain.
VOTE Senator Darrington then made a motion that RS12541 be introduced to print and forwarded to the floor of the Senate. The motion was seconded by Senator Little. The motion carried by a Voice Vote. Senator Sorensen will sponsor this resolution in the Senate.
Gubernatorial Reappointment of Marsha Smith of Meridian, Idaho to the Public Utilities Commission for a term expiring January 13, 2009.
Commissioner Marsha Smith stated that she appreciates the Governors vote of confidence in this reappointment. Senator Sorensen asked her to tell a little about the current Federal Energy Regulatory Commission opening and her candidacy for that position. Commissioner Smith explained that her name is in the hat and that Senator Craig had encouraged her to pursue one of two open democratic seats as the commission currently has no one from the west.
Chairman Sorensen stated that the reappointment would be voted on at the next State Affairs meeting. Chairman Sorensen then explained that Vice Chairman Richardson would be conducting the Administrative Rules Review.
Vice Chairman Richardson introduced Commissioner Paul Kjellander from the Public Utilities Commission.
31.11.01 Safety and Accident Reporting for the Utilities regulated by the PUC
Commissioner Kjellander explained that in these rules the commission seeks to adopt by reference the updated safety codes required by the National Pipeline Safety Regulations.
31.21.01 Customer Relations Rules for Gas, Electric, and Water Public Utilities
Commissioner Kjellander explained that these rules pertain to the allowance of credit checks and customer deposits. They also slightly adjust the hours when a utility can cut service.
Senator Stennett expressed concern about the negative effects these rules might have on people with an adverse financial situation. Vice Chairman Richardson asked if these rules had any impact on the special winter programs for the poor. Commissioner Kjellander stated that the "Winter Moratorium Program" is separate from these rules and none of these changes would effect it.
Senator Stennett asked about possible connect problems for a divorced woman. Commissioner Kjellander stated that historically if you are married within a household you are part of the billing party. These rules develop criteria for when the company may request a deposit but does not say it must.
31.71.02 Railroad Accident Reporting Rules
Commissioner Kjellander stated that these rules adopt the updated code for Federal Regulations. It also changes the threshold for property damage reporting to $6,700.
Senator Stennett asked what the liability is if a railroad car is rolled. Commissioner Kjellander asked Ron Law to respond . Ron Law stated that the total cost caused by the accident would be included.
Senator Little then asked what the real financial impact is of these rule changes. Commissioner Kjellander said that it is very hard to say. He said that with uncollectible, they try to get the utilities to work with the customers to make payments. Senator Stennett asked what is the value of these public policy changes and what will be the savings to the utilities.
Commissioner Kjellander repeated that it is very difficult to calculate the savings. A regulated monopoly has to do business with everyone. In the case of Inter Mountain Gas where their deposit will go from $93 to $147, the increase will help to offset losses.
Vice Chairman Richardson stated that the committee will vote on the PUC Rules at the next meeting.
Adjournment: There being no further business, the committee adjourned at 3:45 P.M.




DATE: January 15, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED: None.
CONVENED: Chairman Sorensen called the meeting to order at 3:05 P.M.
MINUTES: Senator Richardson made a motion that the minutes of January 13, 2003 be approved as written. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS 12433 Relating to independent expenditures: Amending Section 67-6611, Idaho Code, to provide certain reporting requirements for persons making designated independent expenditures
Senator Davis explained that this legislation resulted from the Task Force on Campaign Finance Reform for Judicial Elections and that it was the one formal recommendation with unanimous support. It pertains to third party expenditures and he will provide more details when the bill is presented. He is now asking that it be introduced to print.
MOTION: Senator Stegner made a motion that RS 12433 be introduced to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Stennett then asked if it applied to expenditures of all elections. Senator Davis responded that it did.
VOTE: Gubernatorial Reappointment of Marsha Smith of Meridian, Idaho to the Public Utilities Commission for a term expiring January 13, 2009.
Senator Stegner made a motion that the State Affairs Committee recommend to the full Senate the reappointment of Marsha Smith to the Public Utilities Commission. Senator Stennett seconded the motion . The motion carried by a Voice Vote. Senator Stenett will sponsor this appointment in the Senate.
Chairman Sorensen then turned the meeting over to Vice Chairman Richardson to continue with the Administrative Rules Review.
Vice Chairman Richardson stated that reviewing the rule changes is very important and it is done in the states but not at the federal level. It was mandated by a Supreme Court Decision. He clarified that we had covered the PUC Rules changes last week and we would therefore vote on them today.
MOTION: Senator Darrington made a motion that we approve the three rule changes for the PUC. Senator Stegner seconded the motion.
Senator Calabretta made a substitute motion to approve the rules changes for the PUC one section at a time. Senator Stennett seconded the motion.
VOTE: The substitute motion to vote on the PUC rule changes by section was approved by a Voice Vote.
31.11.01 Safety and Accident Reporting for Utilities regulated by the PUC.
Senator Calabretta made a motion that the committee approve PUC Rules 31.11.01. Senator Sorensen seconded the motion. The motion carried by a Voice Vote.
31.21.01 Customer Relations Rules for Gas, Electric, and Water Public Utilities
Senator Stegner made a motion that the committee approve the PUC rules 31.21.01. Senator Sorensen seconded the motion. Vice Chairman Richardson called for questions.
Senator Stennett stated that he still has unanswered questions about the possible negative effects of these changes and that he is not yet ready to vote on this section. Chairman Sorensen stated that although she had no question about the rule, there is no rush and the committee can wait and get more information.
Senator Calabretta stated that she also had some concerns in two areas. She said it appears rather arbitrary as to who and how the utility determines delinquency and she would like to know what the alternative energy options are when a party does have prohibitive credit. She supports the delay and getting additional information.
Senator Little then asked for unanimous consent that the committee postpone final consideration of PUC rules 31.21.01 until a future time certain.
Vice Chairman Richardson called for objections and since there were none, PUC Rules 31.21.01 will be held until a later date.
31.71.02 Railroad Accident Reporting Rules
Senator Stennett made a motion that PUC Rules 31.71.02 be approved. Chairman Sorensen seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Richardson then introduced Leslie Goddard who is the Director of the Human Rights Commission.
45.0101.0201 Human Rights Commission Rules
Director Goddard explained that since the recent budget shortfalls, they have been searching for ways to reduce expenditures. Historically, there postage expenses have been considerable due to the need to send notices by certified mail at a cost averaging about $5. The Commission in these proposed rule changes seeks to be able to mail complaints by regular mail, personal delivery or fax and thereby reduce expenditures. In the time since they have implemented this change they have reduced the 2002 costs from $877 to $362. She further stated that in that eight month period, there has been no reported failure of delivery. Vice Chairman Richardson asked if that was the extent of their rule changes. Director Goddard said it was. Senator Calabretta expressed concern about the confidentiality and security of sending a fax notice. Director Goddard stated that although the fax may be used for communications, it is not generally used for the complaint notifications. Senator Stennett asked if any discussions with the Attorney General's office had occurred regarding the downside of these changes. Director Goddard said they had worked directly with the Deputy Attorney General on these changes.
Vice Chairman Richardson stated that the vote on the Human Rights Commission Rules would be done at the next meeting. He then introduced Judy Comstock from the State Treasurer's Office.
54.0201.0201 Rules governing the College Savings Program.
Judy Comstock explained that this proposed rulemaking makes technical changes, revises definitions, and eliminates the state ten percent penalty assessed against non-qualified withdrawals. The elimination of the state penalty is because the Federal Act now covers the penalty. Senator Stennett asked what the amount of the penalty is. Ms. Comstock stated it is 10%.
Vice Chairman Richardson advised that the vote on these rules will occur at the next meeting.
ADJOURNMENT There being no further business, Chairman Sorensen adjourned the meeting at 3:25 P.M.




DATE: January 20, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Calabretta
CONVENED: Chairman Sorensen brought the meeting to order at 3:05 P.M.
Vice Chairman Richardson made a motion that the committee approve the minutes for January 15, 2003 as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of James C. Hammond of Post Falls, Idaho to the State Building Authority for a term expiring January 1, 2007.
James Hammond stated that he has enjoyed his past assignment on the State Building Authority which develops building projects around the state and he is particularly interested in serving during these tough economic times. Senator Richardson asked Mr. Hammond about serving on both the Idaho State Board of Education and the State Building Board. Mr Hammond responded that he has been doing this for some years without any difficulty. He further stated that their current project for the Idaho Water Center has been the most complicated and they are currently focused on the financing. Senator Darrington then reviewed Mr. Hammond's work history in the school system prior to starting for the city in 1996. Chairman Sorensen stated that the vote on his reappointment would be held at the next meeting.
RS 12231 Establishing Rates of Compensation for the Senate
Senator Davis explained that this legislation is the annual resolution of compensation for the Idaho Senate. It is necessary to have it introduced to print and then go to the Senate floor in order to be able to maintain the staff after February 1, 2003.
VOTE: Senator Darrington made a motion that RS12231 be introduced to print and forwarded to the Senate. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
RS 12563 Relating to the State Liquor Act; Amending Section 23-404, Idaho Code, to provide for the transfer of funds to the Idaho State Police Alcoholic Beverage Control Fund.
Director Dan Charbonneau of the Idaho State Police explained that this legislation is to create an amendment which would allow the Idaho State Police to receive a 5% share of the balance of the Alcoholic Beverage Control Fund. He further stated that they had worked with the State Liquor Dispensary on this legislation.
VOTE: Senator Stegner made a motion that RS12563 be introduced to print. Senator Geddes seconded the motion. The motion was approved by a Voice Vote.
H 1 Relating to the Idaho Millennium Income Fund; Amending Section 67-1803, Idaho Code, to revise the distribution of funds.
Representative Lake explained that this legislation would change the formula for distributing money from the Idaho Millennium Fund to the Idaho Millennium Income Fund. Currently, appropriations are made based on projected distributions. This legislation would change the distribution formula such that appropriations would be made based on five percent of the Millennium Fund's actual average monthly fair market value for the fiscal year during which the legislature is in session.
Senator Richardson asked for a clarification of "the monthly fair market value." Representative Lake stated that they take each monthly balance per bank records to determine the average. Senator Richardson questioned whether this was anything like some states that were selling future value of their funds. Representative Lake said it was not. Senator Little asked if this change would accelerate cash flow. Representative Lake stated that he did not think so as they do a look back and as long as the fund has a sufficient balance, there should not be a problem. Senator Little asked where the interest accrues. Representative Lake said interest accrues in the Millennium Fund. Senator Davis then asked several questions to clarify the terms of the distribution formula to which Representative Lake replied. Senator Davis asked about the issue of hold backs done by the Governor after session is out. Representative Lake stated that if the Millennium Fund's entire balance is not used to balance the budget, then there is an available balance as of June 30. Senator Davis then asked if line 13 and 14 could then be a zero balance. Representative Lake said it could. However, for this fiscal year it looks like there will be enough balance left to distribute 2.5 million dollars.
Senator Davis asked if this recommendation came from the Millennium Committee. Representative Lake said that it did. Senator Stegner spoke in support of this bill as it will provide a clearer projection.
VOTE: Senator Darrington made a motion that the committee send H 1 to floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion was approved by a Voice Vote.
ADMINISTRATIVE RULES REVIEW
45-0101-0201 Human Rights Commission
54-0201-0201 Rules Governing the College savings Program
Chairman Sorensen then asked Vice Chairman Richardson to continue his directing of the rules reviews.
Vice Chairman Richardson then called for a vote on the rules reviewed at our last committee meeting.
VOTE: Senator Stegner made a motion that the committee approve the rule changes pertaining to the Human Rights Commission and the College Savings program. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Richardson then stated that the remaining rules for the PUC changes, which have not yet been approved, will be discussed and voted on at the next committee meeting.
ADJOURNMENT There being no further business, Chairman Sorensen adjourned the meeting at 3:28 P.M.




DATE: January 22, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
CONVENED: Chairman Sorensen called the meeting to order at 3:05 P.M.
MINUTES: Senator Richardson made a motion that the minutes of January 20, 2003 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of Ruthie Johnson of Hayden Lake, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005
Leslie Goddard, the director of the Idaho Human Rights Commission was present to represent Ruthie Johnson as she was not able to make the trip from Hayden Lake, Idaho. She stated that she has worked with Ms. Johnson for some time and that Ms. Johnson uses Martin Luther King's guideline of considering the contents of one's character rather than the color of his skin. She testified that Ms. Johnson is a fast learner and hard worker and never hesitates to volunteer for assignments. Director Goddard highly recommends the approval of this gubernatorial reappointment.
Chairman Sorensen stated that the committee would vote on this reappointment at the next meeting.
Gubernatorial Reappointment of William A. Swift of Boise, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005
William A. Swift stated that he has a background of twenty years in Human Resources. As a commission member he has had the opportunity to see how problems are addressed in the community which has been a very positive experience. He said that through this experience he has helped effect some changes at the company where he now works in car sales. Senator Richardson asked how this community compares to others that he has lived in. Mr. Swift said that he feels there is great quality of life here and what makes it different is how the community deals with difficult issues in a positive manner. Senator Davis asked what successes Mr Swift thinks the commission is most proud of. Mr. Swift stated that he felt their progress at some of the bigger companies in this area with regard to treatment of employees, particularly women was an important accomplishment.
Chairman Sorensen stated that the vote on this reappointment would occur at the next meeting.
Gubernatorial Reappointment of James C. Hammond of Post Falls, Idaho to the State Building Authority for a term expiring January 1, 2007
Chairman Sorensen called for a vote on the reappointment of James C. Hammond to the State Building Authority.
VOTE: Senator Richardson made a motion that the committee recommend to the Senate the reappointment of William A. Swift to the State Building Authority. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this reappointment in the Senate.
S1009 Relating to independent expenditures: Amending Section 67-6611, Idaho Code, to provide certain reporting requirements for persons making designated independent expenditures
Senator Davis explained that this bill was a result of the task force formed to review expenditures of Judicial Campaigns. It was initially proposed in response to the conduct of one particular group. There was no opposition to this proposal, including none from those in question. Senator Davis then introduced Secretary of State Ben Ysursa.
Mr. Ysursa explained that this amendment moves up the disclosure of expenditures to a more timely manner. It requires any entity that spends over $1,000 within 15 days of an election to file a report with the Secretary of State's office within 48 hours. It does not prohibit advocacy but requires disclosure. This disclosure will then be posted on the internet by the Secretary of State's office.
Chairman Sorensen stated that she feels this bill will help prevent the rather stealth nature in recent campaigns due to the 48 hour required disclosure. Mr. Ysursa said that is correct to a point. However, if the nature of the add is elusive, it may not be required. They are still waiting for a Supreme Court ruling on unregulated advocacy for further clarification. Senator Calabretta then asked that if these expenditures were not linked to the candidates, how would the public know where to access the information.
Mr. Ysursa said that it is a different report than that of the candidates but if expressed advocacy for the candidate is shown, his office may link it to the candidate. Senator Little then asked what would happen if no specific candidate was identified and how their office would then make the decision to link it to a candidate. Mr. Ysursa said that if they were sure who was identified and some of the "magic words" such as vote for; elect; reject; or defeat were used they could link the expenditure to the candidate. However, if the promotion was elusive, this amendment may not apply.
Senator Stegner asked why there was a two day exemption right before the election. Mr. Ysursa explained that the last two days are Sunday and Monday so the public notification would occur after the election. Senator Stennett then asked where the guideline for the "magic words" had come from. Mr. Ysursa referred to Idaho Code 67-6602C which is used as a state guide. Senator Stennett then asked if this part of the code could be amended. Mr. Ysursa said that it could be. Senator Stennett then stated that businesses now are required to file electronically so couldn't they require the election filings to be done electronically. Mr. Ysursa said it has been considered but given the large number of Mom and Pop Treasurers in Idaho at this time, it would have to remain optional. Senator Davis then asked why the focus on expenditures rather than receipts to the candidate. Mr. Ysursa said that third party independent expenditures are done outside the candidates committee so this tracking of expenditure completes the circle.
Senator Davis then stated that he had received some questions from the ACLU about this amendment and a 1995 Supreme Court Ruling on the McIntyre case which has to do with anonymous free speech. Mr. Ysursa said that if the McIntyre decision was applicable in this case, we would need to repeal in it's entirety anything pertaining to an independent expenditure. Senator Davis then gave several case scenarios and asked Mr. Ysursa if the proposed amendment was applicable. Mr. Ysursa clarified that if there is no express advocacy, then no report would be required. Senator Davis then asked about the case of the judicial campaign discussed earlier. Mr. Ysursa said that since none of the "magic words" were used, there would be no required disclosure.
VOTE: Senator Calabretta then made a motion to send S1009 to the Senate floor with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
Chairman Sorensen then turned the meeting over to Vice Chairman Richardson to complete the Administrative Rules Review.
31.21.01 Customer Relations Rules for Gas, Electric, and Water Public Utilities
Vice Chairman Richardson stated that Commissioner Marsha Smith and Mike Huntington from Inter Mountain Gas were present today to answer any further questions the committee might have. Commissioner Smith then stated that these changes would make the customer relations rules of the Gas, Electric, and Water Public Utilities consistent with the ones the phone companies adopted in 1993. The calculation of the deposits was done at the request of the gas company. Senator Calabretta stated that she had further reviewed the minutes and information about this issue which has answered her concerns. She provided each committee member with a copy of a hand out she received from Inter Mountain Gas. Senator Stennett said he agreed with Senator Calabretta but would like to know how Commissioner Smith would characterize the public testimony they received during their hearings. Commissioner Smith stated that she actually did not participate in those proceedings but she had not heard any specific negative feedback from her staff which conducts the informal meetings.
Senator Stenett then asked about the two to one vote and what was the issue of the dissenting vote. Commissioner Smith said that it was her understanding that one of the commissioners was concerned that if the utilities used commercial credit reports for financial purposes, such an inquiry may have a negative impact on the customer. She said that is not the case. Senator Stennett said that it is a difficult review process and his concern is that this change may result in denying a home to the underprivileged . He asked Commissioner Smith if she could see that as a possible effect. Commissioner Smith stated that although she couldn't guess any actual numbers, she didn't think these changes would catch anyone anymore than previously, unless they had very bad credit.
VOTE: Senator Calabretta made a motion that the committee approve the PUC Rules 31.21.01. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Richardson then announced that the State Affairs Committee has completed the Administrative Rules review for 2003.
ADJOURNMENT There being no further business, Chairman Sorensen adjourned the meeting at 3:50 P.M.




DATE: January 27, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Richardson, Senator Little, and Senator Stennett
CONVENED: Chairman Sorensen called the meeting to order at 3:05 P.M.
MINUTES: Senator Calabretta made a motion that the minutes for January 22, 2003 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of Ruthie Johnson of Hayden Lake, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005
VOTE: Senator Calabretta made a motion that the committee recommend to the full Senate the reappointment of Ruthie Johnson to the Idaho Commission on Human Rights. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor Ruthie Johnson in the Senate.
Gubernatorial Reappointment of William A. Swift of Boise, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005
VOTE: Senator Stegner made a motion that the committee recommend the reappointment of William A. Swift to the Idaho Commission on Human Rights. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Stennett will sponsor Mr. Swift in the Senate.
H 54 Relating to Idaho Code Codifier Corrections; Amending Section 9-304C, Idaho Code, to provide correct code citation and to make technical correction
Katharine Gerrity from the Legislative Services Office explained that this was a clean up bill which addresses all sections of the code. Historically, when a bill was being drafted, it was assigned the next available number. When the law is then put into code format, the bills are put in chronological order.
VOTE: Senator Davis then made a motion that H54 be sent to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Davis then asked for unanimous consent that H54 be directed to the Consent Calendar. There was no objection. Chairman Sorensen will sponsor H54 on the Consent Calendar in the Senate.
H 55 Relating to the duties of the State Controller: amending Section 67-1001, Idaho Code, to clarify the duties of the State Controller and to make technical corrections
Keith Johnson, the Idaho State Controller, explained that last fall when it became apparent that there may be a change in that office, they decided to do a review of the statutory duties of the State Controller for clarification and to identify inconsistencies. That review resulted in these changes to Section 67-1001.
Senator Davis asked if Idaho has historically used GAAP (Generally Accepted Accounting Principles) Accounting and what do other states use. Mr. Johnson stated we have used GAAP for at least the last eight years since we adopted that standard. He explained that since counties have adopted GAAP also, they have discontinued the 44 County report since 1990. Senator Davis questioned Sub Section 9 which addresses the controller's ability to deal with tax indebtedness. Mr. Johnson stated that it does give authority to the controller over tax receivables. He further clarified that the controller has concurrent jurisdiction with the State Tax Commission if circumstances necessitated.
Senator Calabretta asked about auditing funds given to school districts and whether Section three gives the controller the authority to look at local accounts and financial reports. Mr. Johnson said that it does. Senator Calabretta further expressed concern about small units of government not following procedures but noted the high expense of audits of all school districts. Mr. Johnson stated that audit rotation continues to be debated with regards to the cost versus benefit. He thinks good internal controls are an important function and they support and defend the ability to audit.
Senator Calabretta asked if audits were occurring now on any level. Mr. Johnson said not currently, but the controller's office is working to build better internal controls. Senator Davis referred to page two, line fifteen and asked Mr. Johnson if he believed that it would be more wise to have statutory change with regard to electronic signatures. Mr. Johnson stated that if it dealt with the Administrative Procedures Act, he would not object to statutory change. Senator Davis commended Mr. Johnson's father who was the Chaplain for the Idaho State Senate last year.
MOTION: Senator Davis made a motion that H55 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the committee adjourned at 3:25 P.M.
Senator Stennett arrived upon adjournment.




DATE: January 31, 2003
TIME: 12:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Geddes, Davis, Stegner, Little, and Stennett
MEMBERS

EXCUSED:

Senator Darrington and Senator Calabretta
MINUTES: Senator Richardson made a motion that the committee approve as written the minutes for January 29, 2003. Senator Davis seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of Hyong K. Pak of Twin Falls, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005.
Hyong K. Pak was born in South Korea and has lived in Idaho since 1972. He has a general legal practice in Twin Falls and has appreciated serving on the Idaho Commission on Human Rights. Serving on this commission has allowed him to learn more about discrimination and the Disability Act. Senator Richardson asked Mr. Pak how Idaho laws compare with his knowledge of other areas. Mr. Pak stated that Idaho law mirrors Federal Laws quite closely. Senator Stennett asked how many cases the commission investigates yearly. Mr. Pak said that it varies but recently they have experienced an increase which has caused them to divide into committees to review the cases. Senator Davis asked what type of law practice Mr. Pak had. Mr. Pak stated that it is a general practice which focuses on family and criminal law. Senator Stennett asked what has caused the recent increase in complaints. Mr. Pak said that he thought people are more upset and therefore want their complaints heard. He said a substantial number of their complaints are invalid.
Chairman Sorensen thanked Mr. Pak for his service and appearance before the committee. She explained that the committee would vote on Mr. Pak's reappointment at the next meeting.
Gubernatorial Reappointment of Jeffrey L. Bowen, of Soda Springs, Idaho to the Bingo-Raffle Advisory Board for a term expiring January 7, 2005
Chairman Sorensen stated that Mr. Bowen had appeared at the last meeting and then she asked the will of the committee.
MOTION: Senator Davis made a motion that the committee recommend to the full Senate the reappointment of Jeffrey L. Bowen, of Soda Springs, Idaho to the Bingo Raffle Advisory Board. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Geddes will sponsor Mr. Bowen in the Senate.
ADJOURNMENT There being no further business, Chairman Sorensen adjourned the meeting at 12:20 P.M.




DATE: February 3, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Chairman Sorensen and Senator Stennett
MINUTES: Senator Davis made a motion that the minutes of January 31, 2003 be approved as written. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Appointment of Roger Simmons as Director of the Idaho State Lottery for a term commencing January 20, 2003 and continuing at the pleasure of the Governor
Mr. Simmons stated that he moved to Idaho in 1976 when he was working as a television news reporter. He had graduated from San Diego State with a degree in journalism. He worked for the Western Idaho Fair from 1987 to 1993. More recently, he has been an Ada County Commissioner since 1993 and he served four years as Chairman. He believes his interest in the Lottery goes back to his days with the Fair as it is a business run inside a government organization.
Chairman Richardson asked Mr. Simmons about his ideas regarding gambling in relationship to the Les Bois Track. Mr. Simmons explained that when he worked with Les Bois they were under direction of the Fair and they were experiencing financial problems. He stated that he believes in horse racing but it is a struggling industry. Mr. Simmons said he believes his experience in working at the Fair will serve him well at the Lottery. Chairman Richardson asked Mr. Simmons what precipitated his interest in the lottery position. Mr. Simmons stated that he has been interested for some time and had applied four years ago when the position was vacant. He said that since Mr. Woodall has been maintaining the commission so efficiently, there has been no rush to replace him. When he joined the county commission they had many problems to address which is not the case at the Lottery. Senator Davis stated that at todays Chamber Luncheon, one of the speakers had referred to the G-Tech contract which after it was chosen, then awarded contracts outside the state of Idaho. He asked Mr. Simmons if he had any comment on that. Mr. Simmons responded that the contract awarded by the Commission to G-Tech was moving their computer operation to Texas, but they will still maintain the local computer operation here in Boise. It is necessary that they have separate back up locations. The other company which offered a bid was from out of state also. Senator Davis stated that the impression that was left at the luncheon was that the minute the Commission re-approved the G-Tech contract, then G-Tech no longer felt the need to maintain ties with Idaho. Mr. Simmons stated that both bids were from out of state and that there are only four companies internationally which provide this type of service. He said that the staff at the Lottery carefully evaluated both offers and determined that G-Tach's extension would provide considerable capital investment which may result in as much as a million dollar savings annually. He further stated that as of this date, he has actually only been directly associated with the Lottery for two weeks.
Senator Davis said that he was not trying to infer that he did not appreciate the Commission's judgement but rather he was trying to confer how it was presented to the community at the Chamber luncheon. Mr. Simmons said that he could appreciate that the correct message needs to get out and he will work to address that problem. Senator Richardson asked Mr. Simmons if he had any indication that Tribal Gaming had a negative impact on growth of the Lottery. Mr. Simmons stated that although it is a good question, it is not an issue that he has had time to research or address yet but he does intend to take a hard look at it. Chairman Richardson explained that the vote on this appointment will be conducted at the next committee meeting.
Gubernatorial Reappointment of Hyong K. Pak of Twin Falls, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2005.
VOTE: Senator Davis made a motion that the committee recommend to the full Senate the reappointment of Hyong K. Pak of Twin Falls, Idaho, to the Idaho Commission on Human Rights. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor Mr. Pak in the Senate.
RS 12682 Relating to the Uniform Electronic Transactions Act: Amending Section 28-50-107, Idaho Code, to provide that any notice or record required to be sent certified mail may be transmitted electronically if the recipient has given consent
Senator Lodge presented this legislation which she said resulted from the work of the Electronic Commerce Interim Committee. She stated that this change will help bring Idaho current with the rapid changes occurring in the world of e-commerce. It provides that in the case where certified mail is required, electronic mail can be used with the recipients previous approval. She stated that this bill has been reviewed by the Department of Administration and the Comptroller's office.
MOTION: Senator Little made a motion that RS12682 be introduced to print. Senator Calabretta seconded the motion. The motion was approved by a Voice Vote.
RS 12683 Relating to the Idaho Electronic Signature and Filing Act; Repealing Sections 67-2351, through 67-2357, Idaho Code
Senator Lodge explained that this legislation came from the Electronic Commerce Interim Committee and intends to repeal sections of the Idaho Electronic Signature and Filing Act as those portions of the law have acted as a barrier to e-commerce rather than as a facilitator as was originally intended. Senator Davis asked if this legislation had been reviewed with any of the Uniform Law Commissioners regarding the repeal. Senator Lodge deferred to Mr. Spangler. Mr. Spangler said he was not aware of any such discussions.
MOTION: Senator Darrington made a motion that RS12683 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
H86 Relating to the Idaho Administrative Procedure Act; Amending Section 67-5226, Idaho Code, to require agencies that adopt a temporary rule to send a copy to the Director of Legislative Services
Caralee Lambert from Legislative Services explained that this legislation had been drafted at the request of their Legislative Counsel. It requires that a copy of any Temporary Rules must be sent to Legislative Services. There have been some instances where some rules have been adopted with no legislative review and they have conflicted with Idaho Statutes. This change will give the attorneys in Legislative Services a chance to review the Temporary Rules.
Senator Davis stated that his recollection of the Administrative Procedures Act required that when they adopt Temporary Rules they must report to the germane Committee Chairman who then has the right to schedule a hearing.
Ms. Lambert stated that in reviewing Section 67-5226, her understanding is that they must publish in the bulletin the Temporary Rules but that reporting to the chairman is not currently a requirement. It is sometimes done as a courtesy.
Senator Darrington stated that the Temporary Rules are frequently done very late in the year after the deadline for Pending Rules. The Pending Rules are referred to the germane Sub-Committees who can call a meeting , the results of which are non-binding. Ms. Lambert stated that some Temporary Rules are adopted the day after session ends and then are effective until the end of the next session. Senator Davis stated that he does not have a problem with H86 and he understands Temporary Rules may be done late in the year but he did think that the germane sub committee chair gets a copy. Senator Darrington stated that Temporary Rules are sometimes implemented while Pending Rules go through the process and he agreed that he thought the sub committee chairs were notified.
Senator Davis then asked what the remedy for failure to comply with this law would be. Ms. Lambert agreed that was a good question. They will track the Temporary Rules closer but there is no provision in the legislation which addresses failure to comply. Senator Davis stated that it is possible then that the courts can find Temporary Rules not enforceable. Ms. Lambert said that she did not know . Senator Davis stated that the issue could go to the courtroom if there is a germane subcommittee with a vested interest. Senator Davis asked that the minutes reflect that he is somewhat conflicted about this legislation and that he wishes there had been some proposed teeth included. Ms. Lambert stated that she was not privy to the Legislative Council's discussions and they may have deliberated on this issue.
Senator Calabretta said that the Temporary Rules are somewhat misused and she asked in what case do they not have to go to the Board of Occupational License. Ms. Lambert stated that the board is not always appraised of Temporary Rules. Senator Stegner asked if all Temporary Rules aren't considered Emergency Rules approved by the Governor. Ms. Lambert agreed but said that recently they have seen a dramatic increase in Temporary Rules recommended by the Department of Financial Management who are using the emergency reasoning and a conferred benefit to justify the rule. Senator Stegner stated that since Administration imposes the rules not the legislature, the Legislature has a narrow opportunity to do anything since they can only hold hearings during the session. Therefore, he sees no legislative remedy. Ms. Lambert agreed that is the case, but said that Legislators are getting calls on these rules and then calling Legislative Services. This change will provide another pair of eyes to review. Senator Stegner agrees with the concept of H86 but he questions that there would be no fiscal impact as it would seem that Legislative Services would spend an increased amount of time. Ms. Lambert said it would not take that much additional time.
Senator Darrington stated that the Rules Review Sub-Committees do not have the authority of a germane committee. He said that in most cases, if a committee has questions , the agency will respond. He urges caution about any changes to the current system.
MOTION: Senator Calabretta made a motion that H86 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion was approved by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the committee adjourned at 3:50 P.M.




DATE: February 5, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, and Stennett
MEMBERS

EXCUSED:

Chairman Sorensen and Senator Calabretta
MINUTES: Senator Davis made a motion that the minutes of February 3, 2003 be approved with one correction to page four, paragraph one. Senator Little seconded the motion. The motion was approved by a Voice Vote.
Vice Chairman Richardson announced that the committee was scheduled to vote on the Gubernatorial Appointment of Roger Simmons as Director of the Idaho State Lottery since the hearing for him was conducted at the last meeting. Senator Geddes made a motion that due to the absence of two of the committee members, including the Chairman, that the committee hold the vote until the next meeting. Senator Davis seconded the motion. Senator Stegner stated that he would be absent on Friday. Senator Geddes then made an amended motion that the committee allow the Chairman to set the future agenda for final vote on this appointment. Senator Davis seconded the motion. The motion was approved by a Voice Vote.
RS12921 Relating to beer and wine restrictions concerning age: Amending Section 23-943, Idaho Code, to provide that persons who are eighteen years of age or older may, on premises licensed for the sale of beer or wine only for consumption off the licensed premises, sell, possess, or deliver beer or wine in the course of their employment
Senator Noble had requested that the original bill S1046 be withdrawn as he was making some corrections which resulted in this new legislation.
MOTION: Senator Davis made a motion that RS12921 be introduced to print. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
H84 Relating to Military Veterans; Amending Section 65-301, Idaho Code, to authorize any veteran to record his or her discharge papers and to provide that the name of the veteran may be redacted
Bill von Tagen, the Deputy Attorney General stated that this legislation deals specifically with the DD-214 military discharge document. The DD-214 is the most common type of proof of military service and is given to soldiers separating from the service with an admonition to protect it. As one of the final orders that many soldiers complied with, the DD-214 is registered at the local county courthouse. Registering it at the courthouse enables Veterans easy access to certified copies of the DD-214 which are required when they apply for Veterans benefits. However, with the rise in identity theft, the information contained within DD-214's appears to be easily accessed. There is no law requiring the DD-214 to be filed and recorded, but rather it was a method of safekeeping for the convenience of the Veteran. Historically, few Veterans realized that the DD-214 would become public record or that there would be an increased risk of identity theft. This legislation provides the veteran with several different choices which include, recording the DD-214 as issued, recording a redacted version, not recording the DD-214 or having a DD-214 that is recorded and reasonably retrievable, removed from the public record.
The legislation clarifies that the DD-214 is not public record and it cannot be accessed without the Veteran's permission. It also provides immunity for the counties if a DD-214 is released in error. Mr. Von Tagen stated that there had been no stated opposition to this bill but that the Press Club has offered some amendments. He said that the Title needs correction on page one, line nine, where the word "not " should be inserted after"shall." However, he feels the remaining amendments offered by the Press Club would essentially gut this bill and destroy necessary protections for the Veterans. Mr. Von Tagen said the state supports this legislation as it has an interest in protecting Veterans and in preventing identity theft.
Senator Stegner asked about the detailed language on page two, line four of the bill. Mr. Von Tagen stated that although it is specific, there is a need to protect Veterans who are unaware of this change. Senator Stegner then questioned lines five and six which referred to additional documents. Mr. Von Tagen stated that historically there have been many varieties of discharge documents. Senator Davis stated he concedes that if redactment of certain information occurred, the protection for the Veteran is principally there, and then he asked the need for sub part F on page three. Mr. Von Tagen explained that there may still be a reason to record the DD-214 with a social security number that has not yet been identified or possibly a Veteran may not redact or realize their risk if they are disabled. He said it is also important to protect merchants who may also be victims.
Pat Teague from the Idaho Division of Veterans Services stated that he supports this legislation. Their office receives about 500 copies of discharges monthly. The DD-214 contains a lot of information that should remain confidential.

Bob Finney, the State Commander of Veterans of Foreign Wars stated that they strongly support this legislation as it protects the privacy rights of Veterans.

Marty Durand who is the legal council for the local American Civil Liberties Union stated that this is a rare occasion when they are in support of an exemption. Although the public's right to know is always an important consideration, this is a different situation. The issue is the right to privacy for Veterans and the public interest is not served to release these documents. They strongly support this bill.

Richard Jones who is an Administrator for the Idaho Division of Veterans stated that the original intent of recording of DD-214's at the local courthouse was safekeeping of the records. In the past year, three Veteran's homes in Idaho were destroyed by fire and they lost all documents. To track documents can be a very difficult and time consuming effort. He supports this legislation.

Michael Grigsby who is the National Vice Commander for Region 3 of the Order of the Purple Heart stated that upon his separation from the military, he followed his final order and had his DD-214 recorded. He did not anticipate the risks that increased technology would present. He supports this legislation.

Jim Adams who is the Senior Vice Commander Post 63 stated that the 1,700 members in their post support this legislation. He said that trying to obtain a lost DD-214 is a very time consuming process. Senator Geddes asked if the military keeps copies of these records in case of loss. Mr. Adams said it depends as some records have been lost in fires. It is his experience that when a Veteran needs these documents, he needs them immediately.

Senator Davis asked if the Association of Counties has spoken yet on this bill and the expense they might have with regard to the fiscal impact. Dan Chadwick, the Executive Secretary for the Idaho Association of Counties stated that they support this legislation. He said it does allow for the future creation of a separate index for DD-214's. They think it is a manageable change with no serious expense. Senator Davis had a question about the language in Section 9-304C. Mr. Chadwick referred to page two, line ten and the phrase "reasonably retrievable."

Mr. Von Tagen stated that this is good legislation and he recommends the one change to Title which requires that on page one, line nine , they insert "not" after the word "shall." The correction to the title can be handled in the Senate.
MOTION: Senator Stegner made a motion the committee send H84 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion was approved by a Voice Vote. Senator Richardson will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:00 P.M.




DATE: February 7, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Little, Calabretta
MEMBERS

EXCUSED:

Senator Stegner and Senator Stennett
MINUTES: Senator Davis made a motion to approve the minutes for February 5, 2003 with corrections. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen stated that Representative Bert Stevenson would present HCR 9 to the committee first.
HCR 9 Stating Legislative Findings and authorizing the Legislative Council to appoint a Committee on Energy
Representative Stevenson stated that the purpose of this legislation is to allow the Legislative Council to appoint a committee to study the subject of energy related issues.
MOTION: Senator Richardson made a motion that the committee send HCR 9 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
RS12833 A Senate Concurrent Resolution Stating findings and Authorizing the Legislative Council to appoint a committee to undertake and complete a study of Taxation Matters regarding the sales and use tax.
Senator Werk stated that this legislation authorizes the Legislative Council to appoint a committee to undertake and complete a study of taxation matters. Chairman Sorensen asked Senator Werk if he was aware of any other committees that were making similar proposals. Senator Werk stated that there was a committee in the House and possibly a proposal from the Speaker.
MOTION: Senator Darrington made a motion that the committee introduce RS 12833 to print and then return it to the State Affairs Committee. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Werk will be the sponsor for this bill.
RS12966 Relating to the Idaho Real Estate Brokerage Representation Act; amending Section 54-2087, Idaho Code, to delete language requiring that brokerages and their licensees conduct certain investigations
Alex La Beau representing the Idaho Association of Realtors stated that a subsequent version of this bill was in Commerce and Human Resources Committee and this new RS was written to address some of the concerns brought up about the previous bill. He is requesting that it be introduced to print and returned to the Commerce and Human Resources Committee.
MOTION: Senator Calabretta made a motion to introduce RS12966 to print. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of Trent Clark of Soda Springs, Idaho to the State Building Authority for a term ending January 1, 2008
Trent Clark reviewed his credentials for the committee. He stated that he has worked on the State Building Board through the initial development of sixteen public buildings. He believes the Building Authority has one job and that is to carry out the wishes of the Legislature. They work to develop the most economic and efficient means to construct each project. The Building Authority watches the bond rate very closely and can construct at less than the cash rate due to Idaho's excellent bond rating. He feels it is very important to preserve the bond rate. Senator Richardson asked if the current budget situation was having an adverse effect on the Building Authority. Mr. Clark stated that the debt service is paid out of the General Fund in the form of Annual Lease Payments. He said that they can build any structure the Legislature refers to them in the form of a resolution.
MOTION: Senator Little made a motion that the committee recommend to the full Senate the Reappointment of Trent Clark to the Idaho State Building Authority. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Geddes will be the sponsor in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:30 P.M.




DATE: February 10, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED: None
MINUTES: Senator Calabretta made a motion that the committee approve as written the minutes of February 7, 2003. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS12619 Relating to Political Cyber-fraud; Amending Title 34, Idaho Code, by addition of a new Chapter 26
Senator Stennett stated that this bill is modeled from the National Conference of State Legislatures and it makes illegal 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.
Senator Richardson asked for further definition of political cyber-squatting. Senator Stennett referred to Section 34-2603, lines 35 to 40 and page two, lines 1-12 of the bill, which give further definition. Chairman Sorensen asked who enforces this legislation. Senator Stennett said that a person would have to seek due process through the courts. Senator Little asked about the site of an opera singer who has his same name. Senator Stennett said as long as he doesn't use Senator Little's title, there would be no guilt.
MOTION: Senator Calabretta made a motion to introduce RS12619 to print. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS12593C2 Relating to the Idaho Building Code Act; Repealing Sect. 39-4009, Relating to certification of Plant Supervisors
Jack Lyman representing the Idaho Manufactured Housing Association explained that this bill would allow the five plants in Idaho that construct manufactured housing to also construct modular buildings if they use journeymen electricians and plumbers to supervise the installation of electrical, plumbing and heating systems. He requests this bill be introduced to print and then returned to the Commerce and Human resources Committee.
MOTION: Senator Stennett made a motion that RS12593C2 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS12968 Relating to the State Militia; Amending Section 46-605, Idaho Code to provide that officers and enlisted personnel in active service of the state may accept, in lieu of certain pay entitlements, greater pay and allowances available from other government departments or agencies
Adjutant General Jack Kane explained that this change to Idaho code will allow personnel to receive increased pay as has been occurring for some time. Agreements with the Department of Interior and the Forest Service have allowed military personnel to assist with wild fires and be compensated accordingly. He stated that this change will bring the code up to date and will save money.
MOTION: Senator Richardson made a motion to introduce to print RS12968. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS12664 Relating to No Telephone Solicitation Contact Lists: to revise the type of subscriber
Senator Keough stated that this legislation was a result of feedback she has received from her constituents who would like to be included on the no call list. The purpose of this bill is to amend the "No Telephone Solicitation Contact" code to allow home-based businesses to access this service.
MOTION: Senator Calabretta made a motion that RS12664 be introduced to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS12863C1 Relating to Marriage; Sect. 32-209, Idaho Code, to clarify the public policy of Idaho regarding relationships intended as substitutes for marriage
Senator Mckenzie stated that this legislation was intended to amend Idaho's Defense of Marriage Act. The purpose of this bill is to clarify that relationships intended as substitutes for, or the equivalent of, marriage are against the public policy of the state. He said that eight other states have now chosen to recognize some of these agreements and he feels Idaho should make their own determination. Clinton Miner of the Attorney General's office drafted this legislation. Senator Calabretta asked if this bill intended to say that you cannot enter into a marriage for financial reasons. Senator McKenzie said that if we want to extend marriage benefits, then Idaho should create their own law.
MOTION: Senator Davis made a motion to introduce to print RS12863C1. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Calabretta and Senator Stennett are recorded as voting no.
Gubernatorial Appointment of Roger Simmons as Director of the Idaho State Lottery for a term commencing January 20, 2003 and continuing at the pleasure of the Governor.
MOTION: Senator Darrington made a motion that the committee recommend to the full Senate the appointment of Roger Simmons as Director of the Idaho State Lottery. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Chairman Sorensen will be the sponsor in the Senate.
H13AA Adoption of policies regarding disposal of surplus personal property of the state
State Controller Keith Johnson stated that as controller he is the Secretary to the Board of Examiners. This legislation proposes to align code with the surplus personal property policy of the State Board of Examiners and to clarify and consolidate authorization for disposal of real and personal surplus property by the board according to Idaho Code. He said that prior code required advertisement in newspapers and auctions which is expensive particularly when the property has no useful life. This change would allow them to dispense with this property more easily through possible use of e-bay or on-line auctions.
Senator Stegner asked if currently the board can make rules without being subject to IDAPA (Idaho Department of Administrative Procedures Act) or legislative oversight. Mr. Johnson stated that Constitutional Boards are not required to go through rulemaking. Senator Stennett asked about the word "personal" in line 29 as it seems the opposite of public property. Mr. Johnson said that in this case, real property refers to land while personal property refers to things such as decks, equipment and computers. Senator Stennett asked about line four of the amendment and the "highest responsible bidder". Mr. Johnson said that means the bidder has met the minimum requirements. Senator Stennett asked if this meant the highest bidder could lose. Mr. Johnson stated that there is a pre-qualification of who can bid but generally the highest bidder would win. Senator Geddes asked if an item is auctioned on e-bay, can a state employee become the owner. Mr. Johnson said that state employees and legislators are prohibited from bidding. Senator Geddes asked how that would be tracked on e-bay. Mr. Johnson said the identification would occur at the time of transfer of title. Senator Calabretta asked if the transfer of used equipment between school districts would still be possible. Mr. Johnson said it would.
Senator Davis questioned some of the language in the amendment and asked about the bidder pre-qualification. Mr. Johnson stated that they have to meet the legal requirement of Idaho Code to bid on state property. Senator Little asked about the reference to surplus real property. Mr. Johnson said this legislation refers to personal property only. Senator Stennett said that 67-2024 is a change to adopting policies and procedures rather than rule changes and it seems it could effect real property. Kathy Ewert, Assistant to Mr. Johnson, said that this is not a change of code but rather a re-affirming of the Boards duties. She said that the Board governs personal property and Constitutional Officers are exempt from IDAPA requirements. Senator Stegner said that he is not familiar with policies and procedures terminology, but he is disturbed since the sale of personal property is a sensitive area that has a history of abuse and the potential for abuse.
Senator Calabretta asked if there is an IDAPA Rule in place on the disposal of personal property. Mr. Johnson said there is not. Senator Stegner said the Board of Examiners has a lot of responsibilities but it is not the intent of the Legislature to exempt them from oversight. If that was the case, it could be the start of a slippery slope and we should pause to look closer. Senator Davis asked if the Board of Examiners is a Constitutional Body or are they Constitutional Officers. Mr. Johnson said they are a Constitutional Body. Senator Davis asked if the Administrative Act applies only to officers or would it apply to the Board members. Mr. Johnson said he was not prepared to address that issue.
MOTION: Senator Stegner made a motion that the committee hold H13AA to provide further opportunity to clarify the bill. Senator Little seconded the motion. The motion carried by a Voice Vote.
S1069 Relating to beer and wine restrictions concerning age: Amending Section 23-943, Idaho Code, to provide that persons who are eighteen years of age or older may, on premises licensed for the sale of beer or wine only for consumption off the licensed premises, sell, possess, or deliver beer or wine in the course of their employment
Senator Noble stated that as the owner of a small business, it is important that he can get and maintain good help. He said it is also important for employees to get jobs with better pay. The objective of this legislation is to change the age by which the employees of retailers may sell beer and wine from the age of nineteen to eighteen. He said that currently there is a year difference for the sale of alcohol versus the sale of tobacco. He also read a letter from Sean Davis who owns Stinker Stations which stated that he supports this legislation.
Senator Geddes asked if kids are currently employed who aren't old enough to sell tobacco, is there adult management required to be on sight. Senator Noble said there must be upper management and there is a penalty process of fines for both the business and the employee with regards to the sale of tobacco products to minors. Senator Calabretta asked if this relates to stocking alcohol. Senator Noble said currently a minor can stock both alcohol and tobacco.
Ryan Davidson, a constituent from Garden City, stated that he supports S1069. He believes that eighteen year olds should be given more choices and this change can increase freedom for Idahoans.
Pam Eaton, President of the Idaho Retailers Association, stated that they support this bill. It will open opportunities for eighteen year olds and college students.
Steve Rutherford from the Boise City Attorney's Office, said he was present on behalf of the Idaho Chiefs of Police. They are concerned that the age for dispensing is going down. This bill could potentially allow an eighteen year old to be manning a store by himself at night when his buddies could come in. They oppose this legislation.
MOTION: Senator Davis made a motion that S1069 be held in committee. Senator Richardson seconded the motion.
Senator Calabretta made a substitute motion that the committee send S1069 to the floor of the Senate without recommendation. Senator Stennett seconded the motion. In a roll call vote, the motion was approved. Senator Noble will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:00P.M.




DATE: February 12, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

NONE
MINUTES: Senator Calabretta made a motion that the minutes for February 10, 2003 be approved as written. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
Gubernatorial Reappointment of Blanch M. Weber of Lewiston, Idaho, to the Bingo- Raffle Advisory Board for a term expiring January 7, 2005.
Chairman Sorensen stated that the reappointment of Blanch Weber had been reviewed at a previous meeting. An inquiry about her political party has now been resolved as she stated when contacted that she is a Democrat.
MOTION: Senator Calabretta made a motion that the committee recommend to the full Senate the reappointment of Blanch M. Weber to the Bingo-Raffle Advisory Board. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will be her sponsor in the Senate.
RS12480C1 Senator Geddes, the sponsor of this legislation, requested that this bill be delayed for further revision. There was no objection.
RS12479 Relating to the Public Utilities Commission; to provide for a public hearing on rate increases prior to the commission receiving the Commission's staff recommendation
Senator Geddes stated that the purpose of this legislation is to provide for a public hearing on rate increases prior to the commission receiving the commission staff's recommendation.
MOTION: Senator Davis made a motion that RS12479 be introduced to print. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS 12928 Relating to the Right to Work; Repealing the "Right to work"
Senator Malepeai introduced Dave Whaley, President of the AFL-CIO (American Federation of Labor and Congress of Industrial Organizations). He stated that this legislation's intent is to repeal the "Right to Work." He said that Federal Law supercedes the vast majority of Idaho Law. He said he believes that historically, the "Right to Work bill' has lead people to believe it would improve economic conditions in this state. He feels this law actually suppresses the wages in Idaho. Senator Stennett stated that he feels Idaho has low wages compared to other states which requires two income households and has a negative effect on the state budget. He would like to have a hearing on this matter.

Senator Calabretta stated that historically labor in her district has had a significant role in providing employees and working families with safety in the work place, health insurance benefits which carry on to retirees, and pension benefits. This does reflect positively on the state budget and our people have been well taken care of by unions at the time they were active.

MOTION: Senator Stennett made a motion that RS12928 be introduced to print. Senator Calabretta seconded the motion. The motion failed in a Roll Call vote. Senators Stegner, Stennett, and Calabretta voted yes. Senators Sorensen, Richardson, Darrington,Geddes, Davis and Little voted no. RS12928 will be returned to it's sponsor.
RS12985 Relating to Pay Grades, Merit Increases, and other Classified State Employees
Senator Burkett stated that this bill amends Idaho Code S67-5309C to change the way in which bonuses are awarded to state employees such that a greater number of qualifying employees could be awarded bonuses within current agency budgets. This bill would limit the amount of bonuses to no more than one thousand dollars over a three year period such that more employees who are eligible for bonuses can be awarded them under budgetary requirements. Senator Davis stated that at the CEC (Change in Employment Compensation) meeting , Anne Heilman made a recommendation for the formation of an Interim Committee to address the inequities in compensation. Senator Burkett said he had not spoken with her.
MOTION: Senator Calabretta made a motion that the committee introduce to print RS12985. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen then asked Vice Chairman Richardson to chair the committee while she presented two bills.
RS12990 Relating to the Idaho Employer Alcohol and Drug-Free Workplace Act; Amending Section 72-1701, Idaho Code to remove language referencing only private employers
Senator Sorensen stated that she had presented previous legislation to the Commerce and Human Resources Committee which after review needed some corrections. This is the corrected bill. The purpose of this legislation is to expand the Idaho Drug-Free Workplace Act to include Public Employers. She is requesting that it be introduced to print. Senator Stennett asked why Public Employers have not been included. Senator Sorensen stated that they have been included in the program but have not been able to participate because they could not comply with the requirements of the program due to constitutional constraints.
MOTION: Senator Davis made a motion that the committee introduce to print RS12990. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS12862 Relating to the creation of Success Scholarships for Idaho Students in Post-Secondary Institutions
Senator Sorensen stated that the purpose of this legislation is to create a Success Scholarship Program for Idaho Students who qualify. This program will provide a level of financial support to Idaho students who have graduated from an Idaho High School or obtained a GED. It will encourage Idaho High School Students to pursue a public college education in Idaho and complete a degree in a timely manner. Senator Sorensen stated that the Success Scholarship Program would be financed with 1/3 of the state lottery proceeds, the Promise Scholarship funds, and possibly 5% of the profits from Tribal gaming. She said that currently many people think that the Lottery Funds go to education, but do not really know where the money goes. Senator Darrington stated that the Building Funds which are directed to his district are critical for their capital improvements and he asked if this bill would be a diversion. Senator Sorensen said that the Lottery Funds would be divided into thirds which could decrease some allocations. Senator Davis asked if it would apply to private schools. Senator Sorensen said it applies to public schools only. Senator Davis asked if it applied to East Idaho Technical College. Senator Sorensen said it would. Senator Stennett said that he has concerns as he represents nine local districts that are very dependant on the Lottery funds.
MOTION: Senator Stegner made a motion that the committee introduce to print RS12862. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen resumed chair of the committee having completed her two bills.
S 1060 Relating to the Uniform Electronic Transactions Act:, to provide that any notice or record required to be sent certified mail may be transmitted electronically if the recipient has given consent
Senator Lodge stated that this legislation was the result of a review by the Attorney General's office which clarifies the law with regards to the alternatives to certified mail. It has been reviewed by the Department of Administration and the Comptroller without objection. Senator Davis asked Senator Lodge if she had reviewed these changes with Dale Higer who is a Commissioner for Uniform State Laws. Senator Lodge said she had not. Senator Davis referred to a recent notice he had received from his bank which disclosed changes in terms and conditions and required no written consent on his part. He expressed concern about not having consent in writing and how it may be interpreted by the courts. Senator Lodge agreed that this issue may need further investigation.

Chairman Sorensen stated that if there was no objection by the committee, S1060 and S1061 could be held until a future date when the sponsor has resolved these concerns. There was no objection.

Chairman Sorensen presented a gift and letter of commendation to Katie Wiersma for service as Page to the senate State Affairs Committee.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:45 P.M.




DATE: February 17, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None.
Minutes for February 12, 2003, were held until the next meeting. Chairman Sorensen introduced Brittany Jensen from Idaho Falls who will be the page to the State Affairs committee for the second half of the session.
RS12961 Relating to the Regional Public Transportation Authority, Amending Sect 40-2104, to clarify it is a political subdivision of the state
Senator Ingram introduced Roy Eiguren to present this legislation. Mr. Eiguren is an attorney with Givens-Pursley and is representing Valley Ride, a regional transportation agency. He stated that this legislation amends Idaho code sections governing a Regional Public Transportation Authority (RPTA). It provides that an RPTA is a political subdivision of the state, thus making it clear that it is a governmental agency for purposes of tort liability. The legislation also amends the posting requirements to provide annual budgets be posted within the boundaries of the counties within the RPTA as well as at the administrative offices of the RPTA.
MOTION: Senator Davis made a motion that the committee introduce to print RS12961. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
S1112 Relating to State Militia: Amending Section 46-605, Idaho Code to provide that officers and enlisted personnel in active service of the state may accept, in lieu of certain pay entitlements, greater pay allowances available from other government departments or agencies
General Kane stated that this proposal modifies existing Idaho Code 46-605, to allow members of the state militia when serving on state active duty to waive pay at the state active duty rate and accept greater pay when available from and provided by other government sources. He stated that this has been done without statutory authority and this change will codify the law to allow the payments. Senator Richardson asked what agencies would be making such payments. General Kane said primarily the Bureau of Land Management and the United States Forest Service.
MOTION: Senator Calabretta made a motion that the committee send S1112 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion was approved by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
S1113 Relating to No Telephone Solicitation Contact Lists; to revise the type of subscriber
Senator Keough stated that this legislation was the result of a request by some of her constituents who have home-based businesses and desire the ability to sign up on the no call list. The purpose of this bill is to amend the "No Telephone Solicitation Contact" code to allow home-based businesses to access service.
Senator Davis stated that he has an office in his house but the phone book doesn't show it. He gets billed at a post office box. He questioned how a solicitor would know this is a residence rather than an office on Main Street. Senator Keough said the calling company would not know but you would know if your name was on the list. This change would allow them to access the no call list. Senator Calabretta said that she did not comprehend why businesses could not be on the list. Senator Keough stated that since she was not on the germane committee when the "No Telephone Solicitation Contact" code was developed, she could not explain. Senator Stegner asked if you have a business in your home, isn't it identified with the phone company and you have a different charge. Senator Keough said she thought that was the case. Senator Stegner asked why all businesses were not allowed on the list. Senator Keough said she would favor such a change but started with the home-based businesses. Senator Little said that his neighbor, who is a commodities broker and makes thousands of dollars, could get on the list but then Ma's Service Station who makes a lot less could not. Senator Keough said they could amend the bill to allow all businesses. Senator Little said his understanding was that the Federal government had adopted a similar model and he asked how they had addressed businesses. Senator Keough said she did not have the details on that. Senator Stennett asked if the constituents Senator Keough was referring to are paying business or residential line rates. Senator Keough said they were paying business rates. Senator Calabretta asked if those phones were also being used for non-business calls. Senator Keough said that was a possibility but the concern was that the solicitation calls can be very disruptive to their business environment.
MOTION: Senator Calabretta made a motion that the committee send S1113 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. Senator Stegner made a substitute motion to send S1113 to the amending order which failed due to the lack of a second. Senator Davis stated that he would be opposing S1113. He said that the "No Telephone Solicitation Contact" code was designed to protect those who are less able to say no. Businesses do not fit into that category. He feels this change could have an icing effect on business. The primary reason for the legislation does not apply to a business and therefore he will not be supporting this legislation. Chairman Sorensen called for a vote on the motion to send S1113 to the Senate with a do pass recommendation. The motion failed by a Voice Vote.
H89A Relating to the powers and the duties of the State Controller
Keith Johnson, the Controller for the state of Idaho, stated that this legislation is a companion bill to H55 which was signed into law last week. This legislation proposes to update the statutes relating to the Idaho State Controller and the state accounting and payroll systems by reflecting current practices and organizational structure of state government more accurately. He said he has met with the auditors regarding this bill and has their approval.
MOTION: Senator Little made a motion that the committee send H89A to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Richardson will sponsor this bill in the Senate.
H13A Relating to the Disposal of Surplus Personal Property of the State of Idaho, Amending Sect. 67-2024
Chairman Sorensen reminded the committee that this bill had been heard previously and was held in order to resolve some issues and get additional information.
Keith Johnson stated that this legislation proposes to align code with the surplus personal property policy of the State Board of Examiners and to clarify and consolidate authorization for disposal of real and personal surplus property by the board according to Idaho Code. They have met with some of the committee members to answer some of the concerns raised by this committee at the last hearing.
Senator Davis stated that he has met with representatives from the Controller's office and done some research and that he now approves of this bill.
MOTION: Senator Davis made a motion that the committee send H13A to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion.
Senator Little said he also had received additional information regarding this bill but still has questions about Policies and Procedures versus Rules. He asked if all surplus property is the sole jurisdiction of the Board of Examiners and therefore the Legislature has no control. Mr. Johnson said that since the Board of Examiners is a Constitutional body, they are exempt from IDAPA. If it is the desire of the Legislature to specify the rules for disposing of surplus personal property then the responsibility for disposal of surplus property would have to be taken away from the Board of Examiners. Senator Little asked if all agency's surplus property were under the Board of Examiners. Mr Johnson said not exactly. He said that as he understands it, the Board has responsibility for real property that is classified as State Administrative Property and surplus personal property such as computers. Senator Stegner asked what is the history and if this was a change. Mr. Johnson stated that this bill brings into code the way the Board has operated for a number of years. Senator Calabretta said she has not received additional information and that this bill is still disturbing to her. Senator Stennett said his question goes back to the Ada County Court House and whether the Board of Examiners has supervision over it. Mr. Johnson was not sure if the Ada County Court House is a State Administrative Property. He read from a hand out regarding the definition of a State Administrative Facility. He said according to his understanding of that definition, the Board would not control the Ada County Court House. Senator Stennett said that he did not necessarily agree with Mr. Johnson's conclusion and he said he remains uncomfortable with the bill.
MOTION: Senator Stennett made a substitute motion that H13A be held in committee. Senator Calabretta seconded the motion.
Senator Davis stated that he is against the substitute motion. He pulled the constitutional provision that addresses the Board of Examiners and also looked at the Idaho Administrative Procedures Act. Since the Administrative Procedures Act does not apply as against Constitutional officers, that to request it to apply against even the other responsibilities numerated for these Constitutional officers while functioning within this Board, goes beyond what was contemplated by the Idaho Administrative Procedures Act. It is his understanding that procedures and policies are available in writing and a copy has been given to committee members today. He said if we were talking about arbitrary standards, he would have substantially more concern, but probably would still feel duty bound to agree with the requests being made. So he opposes the motion to hold. Senator Little said he doesn't have a problem with the examiners responsibilities but he is concerned about asset drift. We may think that they are under IDAPA in one agency and then all of a sudden for convenience of that agency, they move to the Board of Examiners. If an agency wants to circumvent a rule, can it just opt to go under the Board of Examiners jurisdiction instead of the original agency's rules.
Mr. Johnson said he did not think that would happen. If rules apply to a piece of property that would hold and take precedence. If a property did not fall under any IDAPA rules then it may be subject to the State Administrative Properties part of this bill. Senator Stennett said he did not feel well versed in what properties might come under this legislation and that he does not want the legislature to lose it's ability to have a look at a property. Senator Stegner said he has trouble with line 36 on page one where it strikes out "at public sale" and inserts it is up to them to " transfer, recycle, or discard." He feels that it is loose language which he is not comfortable with . Senator Darrington asked if it will cost more to advertise some stuff than it is worth. Mr. Johnson said that very consideration is why they want to get this bill through since some agencies are spending more on advertising, auction and relocation of the property than they are able to recover. He also said in replying to Senator Stegner, they would certainly be willing to accept some kind of a threshold for public sale. Senator Stegner said he thought that was where they might go on this bill in order to establish some control. Senator Davis said he had shared the same concern as Senator Stegner until he referred to page two, the last sentence where it says "the Board of Examiners shall adopt internal management policies and procedures for the disposal of state surplus personal property to efficiently dispose of surplus personal property, to allow conveyance of surplus personal property to other state and local agencies, to offer state surplus personal property for sale to the public at large and to provide for maximum value received by the state of Idaho with attendant benefits to its citizens." Then you pick up the language the House has added on to this bill, that if they don't make the transfer to another government agency and still decide to sell the property, then they still have to satisfy public notice and sell it to the higher responsible bidder. For these reasons he said he felt safe in signing off on this bill. Senator Calabretta said that she felt the intent of IDAPA is to protect the public and she is not satisfied that the Board has a group exemption as Constitutional officers.
MOTION: A roll call vote was taken on the substitute motion to hold H13A in committee. Senators Geddes, Stegner, Stennett, and Calabretta voted yes. Senators Sorensen, Richardson, Darrington, Davis and Little voted no. The substitute motion failed.
A roll call vote was held on the original motion to send H13A to the floor of the Senate with a do pass recommendation. Senators Sorensen, Richardson, Darrington, Davis, and Little voted yes. Senators Geddes, Stegner, Stennett and Calabretta voted no. The motion carried. Senator Davis will sponsor H13A in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:45 P.M.




DATE: February 19, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Calabretta made a motion that the minutes for February 12, 2003 be approved as corrected. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
Senator Richardson made a motion that the minutes for February 17, 2003 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
RS12639 Concurrent Resolution authorizing the legislative council to appoint a committee to undertake and complete a study of Public Transportation Systems
Senator Ingram stated that the request for a study committee on Public Transportation in Idaho has been a top priority communicated from the Chambers of Idaho. He said the fiscal requirements could be covered by the Legislative Council Budget. He said that many people feel it is critical to the improvement of the Treasure Valley Air Shed.
Chairman Sorensen asked about non-legislative members being appointed and the fiscal requirement for their travel and per diem. Senator Ingram stated that as volunteers they would not be paid and there were many interested people. Senator Darrington agreed that using volunteers was consistent with the intent of the study committees.
MOTION: Senator Richardson made a motion that RS12639 be introduced to print. Senator Calabretta seconded the motion. The motion was approved by a Voice Vote. Senator Ingram will sponsor this bill in the Senate.
RS12649 Related to Agricultural Field Burning: to prohibit crop residue burning on the Rathdrum Prairie on certain days
Senator Keough stated that she is requesting this bill be introduced to print and then directed to the Agricultural Affairs Committee which has been approved by that Committee Chairman. The issue of grass burning was being mediated but it has now broken down. The southern cities in her district are recipients of the smoke and they need relief. Senator Stennett asked what the penalty is under Chapter 9. Senator Keough said she would need to refer to the code. Senator Richardson said he thought that their had been some progress in this area and some farmers had transferred out of that area. Senator Keough said there has been some movement but grass seed is still a viable industry there. The farmers have curtailed the length of time for burning but increased the severity. The resulting smoke drifting to the cities is causing increased frustration. Senator Keough, as an asthmatic, has been personally effected by the smoke. Senator Richardson asked how the people in areas like Sandpoint feel. Senator Keough said her mail has tripled since the law suit threat has been removed and the mediation has come apart. They are very upset that they get the burden of the smoke.
MOTION: Senator Calabretta made a motion that RS12649 be introduced to print. Senator Stennett seconded the motion. The motion was approved by a Voice Vote.
RS12993 Relating to Health Insurance; to provide that the Health Care Task Force shall monitor certain health insurance provisions
Senator Stegner stated that several years ago a statute created an oversight committee for high risk insurance pools. Use of the Health Care Task Force Committee will prevent the need to appoint a second committee. Senator Stennett asked if this committee included a specific set aside seat for the minority party and asked that the bill be amended to that effect.
MOTION: Senator Stennett made a motion that RS12993 be held in committee. Senator Calabretta seconded the motion.
Senator Darrington made a substitute motion that the committee introduce to print RS12993. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
Senator Darrington stated that it is common practice for the Pro Tem to appoint committee members. Senator Stennett said that he agrees that the Health care Task Force has minority representation but his intention is to have protection for the future.
RS13029 Relating to Insurance; amending Sect. 41-4003, to provide that no registration is required for any self-funded plan administered for a municipality
Chairman Sorensen asked Senator Pearce to delay presentation of this bill until the next meeting as it is necessary for him to get approval from the Committee Chair to which the bill will be directed. Then the bill can be introduced for print in the State Affairs Committee.
RS13018 Relating to the Idaho Certified Shorthand Reporters Act; Amending Section 54-3108
Andrea Mihm from Sullivan-Reberger and is representing North West Court Reporting. She stated that this bill will provide reciprocity for individuals in the shorthand or court reporting profession. If an individual is certified in any other state they will be able to practice in the state of Idaho without having to take the Idaho exam.
MOTION: Senator Calabretta made a motion that the committee introduce to print RS13018. Senator Stegner seconded the motion. The motion was approved by a Voice Vote.
RS12915 Joint Memorial to Congress to encourage Congress to immediately and permanently repeal the death tax
Senator Davis stated that this Joint Memorial will be directed to the United States Congress to encourage them to repeal the death tax.
MOTION: Senator Richardson made a motion that RS12915 be introduced to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
RS12916 Joint Memorial to encourage Congress to abolish the alternative minimum tax for individuals and corporations
Senator Davis stated that he believes the Alternative Minimum Tax is evil and he asked the committee to join him in demanding it's repeal. Senator Richardson asked for further explanation of the Alternative Minimum Tax. Senator Davis stated that it is a method Congress came up with which strips certain individuals of their right of reductions once they meet certain income levels. He said President Bush is trying to move away from this policy.
MOTION: Senator Geddes made a motion that the committee introduce to print RS12916. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator davis will sponsor this memorial in the Senate.
H111A Relating to the Idaho Tobacco Master Settlement Agreement:
Brett Delange, representing Attorney General Wasden, stated that this is an important piece of legislation that is necessary to complement the Idaho Tobacco Master Settlement Agreement. Under Idaho's Master Settlement Agreement with the tobacco industry, Idaho must diligently enforce the Act. A number of tobacco product manufacturers are not complying with the provisions of the Act. Many of the non-compliant manufacturers are located in foreign countries. Effecting compliance is in some cases quite difficult because of their location. Requiring cigarette distributors to only stamp and distribute cigarettes of tobacco product manufacturers that are in compliance with the Act, and establishing procedures and remedies to ensure that the Act's provisions will be followed will significantly improve compliance under, and assist Idaho with its duty of enforcing, the Act. Currently, non-participating manufacturers refuse to obey the law and they have a competitive advantage. H111A provides a process and procedure to enforce the Act. It will create and post a directory of participating manufacturers. This will prohibit stampers from accepting any products from anyone not on the list.
Senator Little asked about sales on the Internet. Mr. DeLange said they are not directly affected unless they are from within Idaho where they must be stamped and will be bound by the list. Senator Stennett asked how this will interact with Tribal sales. Mr. DeLange said it will not change Tribal sales but it does impact the need for a stamp to be affixed. Senator Stennett referred to line 23 on page two and said it doesn't sound like there is an exclusion for the Tribe. Mr. DeLange said that line refers to units sold in the state that must have the stamp affixed. For cigarettes where the stamp doesn't need to be affixed, the law doesn't apply. Senator Stennett questioned the perjury penalty and asked whether a retailer can be in violation. Mr. DeLange said no and that the penalty applies to the manufacturer not the retailer.
MOTION: Senator Little made a motion that the committee send H111A to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
H147 Relating to the award of costs of Intervention before the Public Utilities Commission
Lynn Tominaga representing the Idaho Irrigation Pumpers Association introduced Randy Budge the attorney for the Idaho Irrigation Pumpers Association. Mr. Budge said he supports this legislation which amends the current Intervenors bill. Intervenors appear at Electric Rate Cases in an effort to keep rates down. The intent of Idaho Code 61-617A is to encourage participation in all cases that appear before the Public Utilities Commission in order that all parties can receive fair representation. This bill proposes to increase the award of intervenor funding on certain cases from $25,000 to $40,000 and it also increases the revenue threshold for utilities before intervenor funding can be awarded. He stated that to appear in a Rate Case is a highly complicated and protracted commitment which usually requires such professionals as a lawyer, electrical engineer, or economist. This funding helps those who rely on the statute to participate in the process. This change does not increase the cost to the utilities nor does it effect the rate payers. The Commission uses very strict criteria in allowing these awards. Mr. Budge referred to the two handouts he provided which identified examples of intervenor cases.
Senator Darrington asked about previous legislation and how it related to this legislation. Senator Geddes stated that Senator Keough had presented a bill last year which had to do with the development of a separate consumer advocate funded from the Intervenor bill.
Senator Geddes stated that he had contacted several law firms who had worked on PUC cases and asked them if they would agree to participate knowing that they would get the fund payment only ($25,000), They all said they would not. Mr Budge said that increasing the limit will enhance the likelihood of participation but it is still probably too low of an amount. Senator Geddes asked Mr. Budge about the Idaho Power case which awarded $6,000 when the billed cost was $139,000. Mr. Budge deferred to Commissioner Kjellander for this question. Commissioner Kjellander stated that the customer must demonstrate financial need. Large corporations can not always demonstrate financial need. Also they require that any cost for studies done are only allowed when the study is specifically relevant to the case. He said the Commission is very frugal and they take their responsibility very seriously.
MOTION: Senator Stegner made a motion that the committee send H147 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:15 P.M.




DATE: February 21, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Davis, Stegner, Little, and Stennett
MEMBERS

EXCUSED:

Senator Geddes and Senator Calabretta.
MINUTES: Senator Richardson made a motion that the committee approve as written the minutes for February 19, 2003. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13039 Relating to the State Militia; Repealing Sect. 46-409, Idaho Code; to provide the Militia Civil Relief Act
Colonel Jim Bevis , the Senior Legal Council for the National Guard, stated that when soldiers are mobilized they go under Title 10 which allows them certain protections. Now there is a greater need to call on the Guard as Under Title 32, Other Duty, when they may be called up for over 30 days. Therefore soldiers need protection on State Active Duty status. Their needs can include re-employment rights, student credit protection and possibly child custody rights. A new section to Idaho Code 46-409, would provide a civil relief act for members of the State National Guard ordered to "state active duty" or for service within the state exceeding 30 days.
Senator Davis said he as no opposition to the intent of this legislation but he does have concerns with regard to Section 4 and the "one subject rule". He said it seems they are talking about multiple subjects and perhaps they should consider two different bills. Senator Stegner asked if they had a legislative sponsor. Colonel Bevis said they did not.
MOTION: Senator Davis made a motion that the committee return RS13039 to the sponsor for further consideration. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS13006 Relating to the Transportation support program for school districts;
Chairman Sorensen stated that she had received a letter from Chairman Schroeder of the Education Committee approving the print of this RS 13006. Senator Goedde was not able to be present today.
MOTION: Senator Richardson made a motion that the committee introduce to print RS13006. Senator Davis seconded the motion. The motion carried by a Voice Vote.
RS13029 Relating to Insurance; to provide that no registration is required for any self-funded plan administered for any municipality
Senator Pearce is asking that this bill be introduced to print and then directed to the Local Government Committee. This legislation will allow municipalities or any other political subdivision of the state to self fund for medical purposes. Heavily populated counties are doing this now and this would allow small counties and other entities the same opportunity to save money.
Senator Stennett pointed out that the fiscal statement on the Statement of Purpose was not complete. Senator Little asked if this applied to any municipality such as a Mosquito District. Senator Pearce said it did. Senator Darrington asked if this change would put the entity outside of state regulation. Senator Pearce said that it would but he had discussed this with Mary Hartung at the Department of Insurance and she indicated those currently self-funding are working well.
MOTION Senator Richardson made a motion that the committee introduce RS13029 to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13031 Relating to the apportionment of funds from the highway distribution account to the state controller or local units of government
Senator Ingram explained that this legislation implements a recommendation of the 1995 Interim Committee on Transportation Resource Management. With this legislation, the State Controller will write a single check to a county specified entity. The amount of the check will aggregate the amounts otherwise allocated to the jurisdictions in the county. Such specified entity has the option of prioritizing the funds to meet countywide economic development objectives through road and street construction and maintenance.
MOTION: Senator Davis made a motion to introduce to print RS13031. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Richardson directed the meeting while Chairman Sorensen presented the next bill.
RS13028 Relating to pay grades, merit increases, and other compensation for classified state employees
Chairman Sorensen stated that Senator Cameron had worked with her to come up with this idea which addresses bonuses. This legislation amends Idaho Code Section 67-5309C to provide bonuses for qualifying state employees not to exceed $1,000 in any given fiscal year based upon suggestions or recommendations made by the employee which resulted in taxpayer savings as a result of cost savings or greater efficiencies to the department or state of Idaho in excess of the amount of the bonus.
MOTION: Senator Stegner made a motion that the committee introduce to print RS13028. Senator Davis seconded the motion. The motion carried by a Voice Vote.
RS13049 Stating Findings of the Legislature and rejecting a certain rule of the State Board of Education relating to rules governing administration of federally funded programs
Senator Davis presented this bill for Senator Geddes. He said that this legislation repeals the current IDAPA (Idaho Administrative Procedures Act) rule regarding money from the federal government. It allows money to funnel through the legislature which allows the legislature to have more impact on appropriations.
MOTION: Senator Little made a motion that the committee introduce to print RS13049. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Geddes will sponsor this concurrent resolution in the Senate.
S1060 Relating to the Uniform Electronic Transaction Act; to provide that any notice or record required to be sent certified mail may be transmitted electronically if the recipient has given consent
Senator Lodge reviewed this bill as it had been before the committee previously. She stated that in response to concerns from the committee, she is asking that Line 20 be amended to place "express" before the word " consent" which should resolve the specific authorization issue.
MOTION: Senator Darrington made a motion that S1060 be sent to the fourteenth order for amendment. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Lodge will sponsor this bill in the Senate.
S1061 Relating to the Idaho Electronic Signature and Filing Act
Senator Lodge stated that this legislation eliminates inconsistencies, overlap, and redundancies in Idaho law between the Idaho Electronic Signature and Filing Act (IESFA) and the Uniform Electronic Transaction Act (UETA) of 2000.
MOTION: Senator Davis made a motion that the committee send S1061 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Lodge will sponsor this bill in the Senate.
S1123 Relating to the Regional Public Transportation Authority Act: to clarify that a Regional Public Transportation Authority is a Political Subdivision
Senator Ingram stated that this legislation amends Idaho Code sections governing a Regional Public Transportation Authority (RPTA). It provides that an RPTA is a political subdivision of the state, thus making it clear that it is a governmental agency for purposes of tort liability. He said that within Idaho six areas have been designated Metropolitan Statistic Areas and they may be eligible for federal dollars. Senator Little asked if Compass would be an a example. Senator Ingram said yes. Senator Davis asked if a regional authority could include more than one county. Senator Ingram said it could. Senator Davis then asked about line 15, and questioned the section about a political subdivision being directly responsible to local governments. He asked if more than one county is involved then who is the responsible authority?. Senator Ingram said that there was some overlap and there would have to be some give and take. Senator Davis stated that there is no RPTA in Idaho Falls. Senator Ingram said that although Idaho Falls may not qualify for an RPTA by itself, if they included the 50 miles surrounding it, they may meet the numbers test. Senator Davis stated that it is his understanding that you cannot have a regional authority across state lines and he still questions an RPTA's line of responsibility.
Chairman Sorensen then stated that the committee could wait until the next meeting so Roy Eiguren could appear before the committee to answer some of these questions. Senator Ingram said he will do the will of the committee.
MOTION: Senator Davis made a motion that the committee hold S1123 until Monday . Senator Stegner seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT: There being no further business, the committee adjourned at 4:00 P.M.




DATE: February 24, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None.
MINUTES: Minutes for February 21, 2003 were held until the next meeting.
S1123 Relating to the Regional Public Transportation Authority Act: to clarify that a Regional Public Transportation Authority is a Political Subdivision
Senator Ingram reviewed this bill as it had been discussed at a previous meeting and then he introduced Roy Eiguren. Mr. Eiguren is an attorney with Givens-Pursley and is representing Valley Ride which is a Regional Public Transportation Authority for Ada and Canyon Counties. He gave a brief history of RPTA's. He said this is actually a technical correction bill. He said this legislation makes it explicit that these types of entities are a political subdivision and it clarifies where notices of annual budget must be posted. He then deferred to Kelli Fairless, Executive Director of Valley Ride. She said they currently follow the public budget process and must post their budget in about twenty different cities, counties and highway districts. This bill will help reduce those requirements.
Members of the committee then asked some questions of clarification. Senator Calabretta asked if this is comparable to health districts. Mr. Eiguren said it is not. The difference is that this legislation is permissive and it requires definitive action by either a city and or a county to create either a county wide district or a regional district. Senator Calabretta asked about the liability issue. Mr. Eiguren said that all the members of the government body are publicly elected officers of either a county or a city so for all purposes it clearly meets the definition of a political subdivision. Senator Stennett asked whether an RPTA has to be within a county. Mr. Eiguren stated it could be either regional or could be within a single county. Senator Stegner questioned line 16 with regard to a political subdivision being supervised by local government and he asked how a conflict between city and county government would be resolved. Mr. Eiguren said there are defined terms in the code for that situation and the representatives from both city and county government would collectively make that decision. Senator Richardson asked if the advantage of protection against tort liability afforded to these entities could be an unfair advantage to competitors. Mr. Eiguren said to his knowledge, there is no current competition. They are seeking the same type of tort protection as placed on state government. Senator Davis asked Mr. Eiguren if there were other limitations that drive his clients desire to seek the tort benefits. Mr. Eiguren said there were not. Senator Davis asked Mr. Eiguren why he thought that "permissive conduct" should be part of the public policy with regard to RPTA's. Mr. Eiguren stated that their rationale is that the entity is no different than the same type of requirement that is placed under statute for cities or counties. He said they believe that this entity at least implicitly, stands in the shoes of a city or county. He said that it was suggested by council that this should be made explicit. Senator Davis asked if he was that council. Mr. Eiguren said he was not. Senator Davis asked that since there are other entities that provide transportation, why should we provide the benefits and protections of modified sovereignty to an RPTA since we don't provide it for private business. Mr. Eiguren stated that it has been the governmental policy of the state that governmental entities that act in a sovereign capacity are afforded limitation of tort liability. They are using public moneys in the pursuit of the activities of the entity. And so they think it is appropriate that since public moneys are being utilized in some substantial way, that the provisions that would apply to a city or county relative to tort limitation should also apply to public transportation agencies. He admits that there is a certain degree of competitiveness relative to riders on other buses. But in that case, there is a payment made by the rider. In this particular case, a substantial portion of the cost of the program to run the bus comes from state, federal or public funds. Senator Davis questioned whether 40-206, Publication Notice, clearly applies to more than one county. Mr. Eiguren said he thought it did but they could make it more explicit if necessary.
MOTION: Senator Stegner made a motion that S1123 be sent to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Ingram will sponsor this bill in the Senate.
H181 Relating to the Division of Veterans Services; to authorize charges related to interment, disinterment, and re-interment in the State Veterans Cemetery
Senator Bailey stated that this is a simple but important bill which will allow the charging of a fee for interment, disinterment and re-interment at the new Veterans Cemetery. This will transfer the cost from the state to the recipient and assist the cemetery in becoming self supporting. It allows families to be buried there also and sets a fee for service. Senator Richardson asked the amount of the fee. Senator Bailey deferred to Richard Jones who is the Administrator for the Department of Veterans. Mr Jones said the fee for interment is $300. Senator Stegner asked if the Division of Veterans Services would be collecting the fee. Mr. Jones said that was correct. Senator Stegner asked if that was established in rules. Mr. Jones said it was.
MOTION: Senator Darrington made a motion that H181 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Bailey will sponsor this bill in the Senate.
H182 Relating to the disposition of unclaimed Veterans remains; to authorize the release of the unclaimed cremated remains of Veterans to the Idaho Division of Veterans Services
Senator Bailey presented this legislation which provides for the release of unclaimed Veterans remains to the Idaho Division of Veterans Services. This will provide a proper and fitting burial after a one year period of unclaimed status at a mortuary.
MOTION: Senator Geddes made a motion that H182 be sent to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Bailey will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:32 P.M.




DATE: February 26, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED: Senator Geddes
MINUTES: Senator Calabretta made a motion that the minutes for February 21, 2003 be approved as written. Senator Davis seconded the motion. The motion carried by a Voice Vote.
Senator Richardson made a motion that the committee approve as written, the minutes for February 24, 2003. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
RS13051 Relating to the Promise Scholarship Program; to provide for the Idaho Robert R. Lee Scholarship Program
Senator Davis presented this bill for Senator Geddes. He stated that Bob Lee was a great leader who understood the significance of education. He knew that statistics show that students who attend university here in Idaho remain in Idaho. Senator Lee was tireless in his effort to establish this scholarship program. Senator Davis stated that his own son who attended college in Utah decided to remain there to live. At the funeral of Robert Lee, the Governor spoke of changing the name of this program.
MOTION: Senator Stennett made a motion that RS13051 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13091 Relating to state buildings; building code enforcement
Senator Bunderson presented this legislation. He said it came from the Department of Administration and seeks to clarify that when any facility is owned by a state agency, the plans must be reviewed by the Division of Building Safety.
MOTION: Senator Davis made a motion that the committee introduce to print RS13091. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS13080 Relating to Domestic Relations; the military service shall not be a substantial or material or permanent change in circumstance to modify decreed child custody and visitation.
Colonel James Bevis, the senior legal officer for the National Guard, presented this legislation. He said it develops protection for soldiers mobilized for 30 days under Title 32. This can be a significant issue for parents as members of the guard.
MOTION: Senator Davis made a motion that the committee introduce to print RS13080. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS13039C1 Relating to the state militia; to provide the Militia Civil Relief Act
Colonel Bevis stated that since there is now a greater need for mobilization of the guard, soldiers need protection when they are on active duty. The Militia Civil Relief Act helps provide job security and provides benefits to university students with regard to credits and expenses. Senator Stennett asked if there is a small business exclusion. Colonel Bevis said the bill covers large and small employers.
MOTION: Senator Darrington made a motion that the committee introduce to print RS13039C1. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
S1117 Relating to pay grades, merit increases, and other compensation; how bonuses are awarded
Senator Burkett stated that this legislation deals with performance bonuses for state employees. It will help to make sure that bonuses are spread throughout each agency by bringing the amount down to $300 per year. Senator Stegner said that the Commission of Employee Compensation (CEC) had heard that in certain areas of employment, the state has difficulty competing with the private sector. He said one of their tools to compete is performance bouses and perhaps this bill will restrict them. Senator Burkett said that incentive bonuses are different than performance bonuses and it is up to the manager or department director to determine the amount of money that is available for incentive and performance bonuses. Senator Calabretta referred to the handout about agency bonuses to clarify that Human Resources gave ten bonuses at an average of $840 and to verify how their chart is read.. Ann Heilman who is the Administrator for Human Resources for the state spoke in opposition to this bill. She said she is in favor of incentive pay but that $1,000 over three years isn't significant enough to have an impact. She said bonuses should be related to excellent performance in order to motivate personnel. She said she supports a total review of compensation. Senator Calabretta questioned where the money came from for these bonuses. Ms. Heilman said that when there is turnover and a gap in employment, then there is salary savings, but this may not be consistent in all agencies. Senator Calabretta asked how that inequity is received in the agencies. Ms. Heilman stated that the State Compensation System allows for hiring in a range of salaries at the discretion of management. Andrew Hanhardt from the Service Employees International Union said they support more state employees being eligible for recognition of excellent performances. He said that although disparity in pay outs can have a negative effect on morale, they are headed in the right direction.
Senator Richardson said it sounded like they are juggling dollars and that possibly the compensation is not being used as it was intended. Mr. Hanhardt said he would have to defer to Ms. Heilman regarding that issue. Jeff Olson who is a representative for the Service Employees International Union stated that this bill was written to address the concerns of state workers as to how bonuses are delivered and this bill helps provide for real incentives. Senator Richardson said he has received some feedback that merit pay is not being administered well. Mr. Olson said there is a fear of favoritism by some supervisors. Vicki Patterson representing the Idaho Public Employees Association said that they support this legislation. Kim Day is a state employee of the Idaho Industrial Commission. His agency did have salary savings and the managers tried very hard to be fair in distribution of bonuses. However, his wife, who works for the Health and Welfare Department which has been enduring many cutbacks, has never seen a bonus. He said state employees need fair pay for fair work.
MOTION: Senator Davis made a motion that S1117 be held in committee. Senator Stegner seconded the motion.
Senator Stennett made a substitute motion that S1117 be sent to the amending order in the Senate. Senator Calabretta seconded the motion. A roll call vote was requested.
The substitute motion to send S1117 to the amending order failed with Senators Stennett and Calabretta voting aye. Senators Sorensen, Richardson, Darrington ,Davis, Stegner, and Little voted nay.
The original motion to hold S1117 in committee passed with Senators Sorensen, Richardson, Darrington, Davis, Stegner and Little voting aye. Senator Stennett and Calabretta voted nay. S1117 will be held in committee.
Vice Chairman Richardson chaired the State Affairs meeting while Senator Sorensen presented S1130.
S1130 Relating to pay grades, merit increases and other compensation for classified state employees
Senator Sorensen stated that this legislation provides bonuses for qualifying state employees not to exceed $1,000 in any given fiscal year based upon recommendations made by that employee which resulted in taxpayers savings as a result of cost savings or greater efficiencies to the department or to the state of Idaho. She said that Ann Heilman from the Department of Human Resources has also suggested some changes. They were that individuals involved may chose to be exempt from public disclosure and that the bonus plan could apply to non-classified positions. Senator Sorensen recommended sending this bill to the amending order to make these changes. Senator Calabretta asked how confidentiality could be maintained if the supervisor approves the change in procedure. Senator Sorensen said approvals could be directed elsewhere to possibly the Board of Examiners. Senator Stegner referred to lines 27 through 29 and the exception to the $1,000 limit and said his assumption was that the Board of Examiners could award the amount they wanted. Senator Sorensen said that is her understanding. Senator Little stated that his understanding is that all bonuses have been superceded by current hold backs. Senator Sorensen said she did not know if that was the case.
MOTION: Senator Stennett made a motion that the committee send S1130 to the fourteenth order for amendment. Senator Little seconded the motion. The motion carried by a Voice Vote.
H162 Relating to elections; to provide further duties of the Secretary of State
Ben Ysursa stated that this legislation is from the Secretary of State's office and is intended to implement the "Help America Vote Act." There are Federal funds which Idaho could receive for voter improvement of up to $20 million over three years. We need to change our state laws as mandated by the federal code. In the future voter registration will be controlled by an individual's Department of Motor Vehicles number and there is a mandated centralized voter registration list required. Senator Stennett asked if the county was taken out of the mix. Mr. Ysursa stated that Section 8 sets up the state but they will continue to work closely with the counties.
MOTION: Senator Darrington made a motion that H162 be sent to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Darrington will carry this bill in the Senate.
H164 Relating to Magistrates; filing declaration of candidacy
Dave Navarro for the Idaho Association of Cities stated that the purpose of this bill is to change the filing date for magistrate judge retention elections from 60 days to 90 days prior to the general election in order to give county clerks sufficient time to make absentee ballots available.
MOTION: Senator Calabretta made a motion that the committee send H164 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Davis will carry this bill in the Senate.
H165 Relating to the Idaho Code Commission; member's compensation shall not be considered salary for Public Employee Retirement System purposes.

Ben Ysursa stated that this legislation would remove three members of the Idaho Code Commission from the Public Employees Retirement System.

MOTION: Senator Stegner made a motion to send H165 to the floor of the Senate with a do pass. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Stennett will carry this bill in the Senate.
H166 Relating to petition for recall of an officer; if no district election has been held in the last six years
Dave Navarro stated that the purpose of this legislation is to specify a process of determining the number of signatures needed for recall elections when a taxing district has not conducted an election within the last six years. Senator Stennett asked about the higher standard of using 20% of the number of electors registered to vote. Mr. Navarro said that since there is currently no threshold, they needed a rationale. Senator Calabretta asked if such a high threshold doesn't prevent a recall. Mr. Navarro said that the problem is that there is no other number to use.
MOTION: Senator Calabretta made a motion that the committee send H166 to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will carry this bill in the Senate.
H247 Relating to the Broadcast of Emergency Information; civil immunity of radio and television systems participating in the Amber Alert System
Senator Bailey said that the purpose of this legislation is to give immunity to broadcasters when voluntarily using the "Amber Alert" system for the purpose of finding kidnapped and abducted children. He said this has been a statewide joint effort of various agencies. Senator Davis asked if this bill was the extent of the enabling legislation. Mr. Bailey said it was. Senator Davis asked the consequences if an employee participated in willful and wonton conduct. Senator Bailey said that these requests start at the law enforcement level of the State Police.
MOTION: Senator Richardson made a motion that the committee send H247 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. Senator Stennett declared a conflict and abstained.
Senator Davis made a substitute motion that H247 be sent to the fourteenth order. Senator Little seconded the motion. Senator Davis said the addition of sideboards would provide a more careful statutory change. Senator Darrington stated that the "Amber Alert " program was well established and the State Police approved any activation. He will resist the substitute motion.
The substitute motion to send H247 to the amending order failed on a Voice Vote. The original motion to send H247 to the floor of the Senate with a do pass recommendation passed by a Voice Vote. Senator Bailey will carry this bill in the Senate.
HCR23 Urging commitment throughout Idaho towards the effort to provide the U.S. Capitol Christmas Tree
Representative Cuddy said this resolution is to urge all communities, businesses, schools and residents of the state of Idaho to help with the efforts to provide the 2003 Christmas Tree for the United States Capitol.
MOTION: Senator Calabretta made a motion that the committee send HCR 23 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Richardson will carry this resolution in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 5:00 P.M.




DATE: March 3 , 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Calabretta made a motion that the minutes for February 26, 2003 be approved as written. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS13073 A Concurrent Resolution: stating legislative findings and approving Administrative Rules that impose a fee or charge, with exceptions, and rejecting certain agency rules that are not approved
Senator Geddes stated that by statute, agency rules adopted under the Administrative Procedure Act that impose a fee or charge do not go into effect unless approved by concurrent resolution by both houses of the legislature.
MOTION: Senator Darrington made a motion that the committee introduce to print RS13073. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Geddes will sponsor this bill in the Senate.
RS13074 A Concurrent Resolution: stating legislative findings and approving and extending Temporary Rules reviewed by the legislature, with an exception
Senator Geddes stated that Temporary rules adopted by state agencies under the Administrative Procedure Act, by statute expire at the end of the current legislative session. This concurrent resolution would approve and extend agency temporary rules beyond the current session.
MOTION: Senator Stegner made a motion that the committee introduce to print RS13074. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Calabretta is recorded as voting no. Senator Geddes will sponsor this bill in the Senate.
Chairman Sorensen announced that RS12484 would not be heard at this time.
RS13119 Concurrent Resolution: To reaffirm Idaho's policy against discrimnatory treatment by foreign states of Idaho domestic insurance carriers
Steve Tobiason, representing General Fire and Casualty Company, stated that in 1961, the Idaho legislature adopted House Bill No. 182 to protect all of the Idaho domestic companies from discriminatory and onerous requirements imposed upon Idaho domestic insurance carriers by foreign states. Currently there are states imposing unfair and burdensome requirements upon Idaho domestic insurance carriers. The purpose of this concurrent resolution is to reaffirm Idaho's long standing policy opposing discriminatory treatment by foreign states against any Idaho domestic insurance carriers. Mr. Tobiason said that General Fire and Casualty does Agri business in about 20 other states and recently they have been asked to meet separate standards from the domestic companies in other states. Senator Calabretta asked about the retaliatory provisions referred to in lines 37-39. Mr. Tobiason stated that according to the current statute, the Department of Insurance can take further action. He said Al Lance is working on this issue and may pursue a letter of inquiry to the other states. Senator Calabretta asked if there had ever been retaliatory action. Mr. Tobiason said not to his knowledge but he has a brief history. Senator Davis asked if we were passing a Senate Concurrent Resolution to say we really mean what the statute says. Mr. Tobiason said it is intended to reaffirm the policy of the state of Idaho against discrimnatory treatment. Senator Richardson asked how can we protect Idaho insurance companies. Mr. Tobiason stated that the current statute gives the Department of Insurance the option to take action.
MOTION: Senator Davis made a motion that the committee introduce to print RS13119 and refer it to the Commerce and Human Resource Committee. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS12831C1 A Concurrent Resolution: authorizing the legislative council to appoint a committee to study the best method to identify and determine the number of unschooled children in Idaho and recommend steps to initiate outreach strategies.

Dr. Cliff Green from the Idaho School Board Association stated that this resolution resulted from the conference that was held last November. He said that "unschooled" children is defined as students that no one entity has made an effort to educate. He said the goal of such a study committee would be to create a method to identify the unschooled, assess their needs, identify resources to aid them, identify outreach opportunities and then make recommendations to the legislature. He said that currently, 43% of the inmates in our correctional facilities, have not completed a high school education. Senator Stegner asked if the scope of this committee would include an area of standards for those who are home schooled. Dr. Green said he did not envision the study including home schooled. Senator Stegner said he had been told by educators in his own district that home schooling is a problem as all parents do not follow through. Dr Green said they could be included if the students are unschooled. Senator Stegner asked if the concern about home schooled was driving this investigation. Dr. Green said it was not. Senator Davis asked about the reference to non-schooled as "children not present in public, private or charter schools" in line 35 and said it suggested home schooled would be considered. Dr. Green said the bill refers to unschooled who have no education whatsoever. Senator Davis said that the home schooled are not in private, public or chartered schools. Dr. Green agreed but said that was not the intent of the legislation. Senator Calabretta asked about "problem" children and whether the districts were doing enough to try to recover them. Dr. Green said it depends and varies from one district to another. Senator Richardson asked if this was a part of the "No child left behind" effort. Dr. Green said it was not specifically but does ring true with their intent.

MOTION: Senator Stegner made a motion that the committee introduce to print RS12831C1. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this resolution in the Senate.
RS13120 Relating to the Joint Finance and Appropriations Committee (JFAC): to provide that the President Pro Tempore of the Senate shall appoint a member to fill a Senate vacancy when the legislature is not in session
Senator Geddes said this bill was a clarification of who has the responsibility to fill vacancies on committees during the interim.
MOTION: Senator Stennett made a motion that the committee introduce to print RS13120 and send it to the second reading. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Geddes will carry this bill in the Senate.
HJM3 To the International Olympic Organizing Committee: the Vancouver 2010 Bid Corporation
Representative Black presented this House Joint Memorial which seeks to support, on a regional basis, the location of the 2010 Winter Olympics in Vancouver, British Colombia. He said Idaho experienced considerable financial benefit from the Winter Olympics in Salt Lake City, Utah in 2002, and this is a gesture of goodwill to our neighbors to the north. The other contestants are South Korea and Australia.
MOTION: Senator Stennett made a motion that the committee send HJM3 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Stennett will sponsor this memorial in the Senate.
H259 Creation of Commemorative day: establish April 30 as Children's Day/ El Dia De Los Nines
Judge Sergio Gutierrez stated that our children face many challenges in today's world. When we consider the number of children who live in single parent homes or homes with two working parents, the need for reaching out to our children is clearly apparent. This celebration is an opportunity to aid their welfare and demonstrate the value we place on the children of our community. Senator Little asked about the April 30th date. Judge Gutierrez said many dates were debated but at this time, April 30th was chosen as it is near other dates of youth celebrations. He said that as the holiday develops, the time period may be extended. Conchi Morales, from the Idaho Committee on Hispanic Affairs, said that for some time, they have been working on this statute that acknowledges the value of children. The United States Congress has also introduced a resolution. She said Idaho would be the first state to officially identify the value of children. Dr. Herschfield stated that he strongly supports this legislation.
MOTION: Senator Calabretta made a motion that the committee send H259 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:55 P.M.




DATE: March 5, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Calabretta made a motion that the committee approve as written the minutes of March 3, 2003. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS12974 Relating to the licensing of government-owned or controlled insurers; to clarify the definition of control
Ed Galtney, the Co-President of Work Care Northwest, stated that this legislation provides clarification to the Idaho Code regarding the definition of voting control versus actual control for boards of directors of insurance companies and will provide market clarity to promote competitiveness and choice in workers compensation insurance. He said competition is healthy and equal access to Idaho markets is important. Senator Stennett asked if striking "voting" in line 14 made the statement even more ambiguous. Mr. Galtney said it did not as the Idaho code gives guidance in other sections of the statute.
MOTION: Senator Calabretta made a motion that RS12974 be introduced to print. Senator Little seconded the motion. The motion carried by a Voice Vote.
S1136 Domestic Relations; the military service shall not be substantial or material or permanent change in circumstance to modify decreed child custody and visitation
General Kane stated that this is one of the few instances where he has asked for the law to help guard members but he feels some consideration for soldiers placed on active duty is necessary. He introduced Colonel Jim Bevis. Colonel Bevis stated that we are living in more dangerous times and activation of the guard is more frequent. He said that Title 32-717 deals with custody and visitation and protects the guard member against a motion to modify upon their return from active duty. He said soldiers should not lose their parenting rites because they serve their country. Senator Davis asked why a parent on active duty and away for a period of time shouldn't be considered a change of circumstance. Colonel Bevis said a specific mobilization should not be used as grounds. Senator Davis said a "substantial material change in circumstance" means a change of parent. He said children need to be taken care of and there needs to be some type of judicial review. Colonel Bevis said that when a soldier is mobilized there is a specific designation of care of the children as part of the deployment preparation and they cannot be sued by default for change of custody. However, upon their return it is not currently covered. Senator Davis stated that there is an emotional attachment to a parent and when there is an extended absence, an attachment shift occurs. He asked if Colonel Bevis was saying that the courts shouldn't consider the good of the child. Colonel Bevis said this bill does not disrupt that process. If a court decision is based on other factors, it is understood, just as long as the sole reason was not the mobilization. He said "the best interest standard" would still be in control.
MOTION: Senator Stegner made a motion that the committee send S1136 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Richardson will sponsor this bill in the Senate.
S1137 Relating to the state militia; to provide the Militia Civil Relief Act
Colonel Bevis stated that this bill adds a new section to Idaho code S46-409 to provide a civil relief act for members of the State National Guard ordered to "state active duty" or for service within the state exceeding 30 days. He said it extends (USERRA) the Uniform Services Employment and Re-employment Rights Act of 1994.. Senator Stennett asked about the scope of USERRA and it's effect on small businesses. Colonel Bevis said that a small business can replace an employee temporarily but upon the return of the soldier, he can get his job back. Senator Stennett asked what if in his absence, the employees job is phased out. Colonel Bevis stated that as long as the job loss is not solely related to the military service, the employer can defend the loss for cause. Senator Stennett asked about the fiscal statement and the educational institutions need to refund for class credits. Colonel Bevis said there would be some duplication of services which wouldn't necessarily be an economic loss. Senator Davis had a question about Section 5 and the effective date of the statute. Colonel Bevis said that particular section referred to the window of time before July 8, 2003.

General Kane stated that the concern about small employers is given special consideration and if necessary they would defer deployment to someone else where there was not a hardship. Senator Stennett said his concern was the possibility of a chilling effect on small business when considering guard members for a position. General Kane said that was also a concern for them.

MOTION: Senator Stegner made a motion that the committee send S1137 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
H268 Relating to political parties; to provide that a state convention shall be held by each political party in each election year
Representative Miller from District 17 stated that the purpose of this bill is to allow political parties to have more flexibility in setting their convention dates. Currently, it is limited to the last two weeks in June which can be a hardship. The bill also allows the Secretary of State to grant a five day extension to a party. Ben Ysursa stated this is a simple bill which allows the parties more flexibility.
MOTION: Senator Little made a motion that the committee send H268 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Darrington will sponsor this bill in the Senate.
H267 Relating to the Idaho Bond Bank Authority; to provide the authority to facilitate the purchase of notes from municipalities
Lisa Carberry, the Investment Manager for the Idaho State Treasurers office, stated that this bill will help taxpayers to save money. In 2000 the Idaho Legislature passed legislation which created the Idaho Municipal Bond Bank in order to pool borrowing needs and then go to the capital markets. Since then they have worked on developing the Master Trust Agreement for the Bond Bank and they will soon go to market with the first issue. Now with H267, they would like to expand their authority to facilitate the purchase of notes for municipalities. They would receive applications, bundle them and then go to market with the request for bid. Senator Stegner asked about the collateral involved and the debt pooling for a larger instrument. Ms. Carberry said the underwriting steps are taken as a credit approval at the bank. Senator Stennett asked if the state of Idaho was pledging assets. Ms. Carberry said no.
MOTION: Senator Calabretta made a motion that the committee send H267 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
H260 Relating to alcoholic beverages licenses; to provide an exception for theater
Representative Jaquet stated that current law presumes that if a minor is on the premises , no alcohol is served. This legislation is to allow persons under the age of 21 to attend theater with live performances that serve beer or wine. She said it was reviewed by the Idaho State Police and sideboards were added. Senator Davis asked about children's events at the Civic Auditorium and if alcohol could be sold there. Representative Jaquet said it could not as the applicant has to be approved by the city. Senator Stegner asked about the distinction between live theater and the movies. Representative Jaquet referred to a letter from the State Police which defined the difference. Senator Richardson asked if the alcohol is confined to a specific area. Representative Jaquet said her understanding is that it is the lobby area and it is supervised.
MOTION: Senator Stennett made a motion that H260 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
H246 Relating to the county option Kitchen and Table Wine Act; to define dessert wine
Representative Clark stated that this bill is a change in policy and seeks to add sherry, port, and madeira as dessert wine options (not more than 21% alcohol) which can be approved by the electorate or the county commissioners. Representative Clark said he cooks using sherry and has been unable to obtain it at retail outlets. Chairman Sorensen asked how this bill differs from the previous bills. Representative Clark said this bill is more restricted by limiting it to three specific products and also it is subject to county approval. Senator Davis asked if the county commissioners would make the decision. Representaive Clark said that was correct. Representative Jaquet stated that this bill does require local decision making and that there is a need in the tourism economy to provide this product. She said this bill provides good choice and is pro-business.

Steve Rutherford who is an attorney representing the Association of Idaho Cities and the Idaho Chiefs of Police, stated that they oppose this legislation. He said frequently transients are looking for something stronger and higher alcohol content causes victims to need medical attention before they can be accepted into jail. This creates an obstacle for enforcement officers. He said retail outlets such as Albertsons and Stinker Station will sell a cheaper line of these products which is a concern to them. They don't oppose these products in restaurants but grocery stores and quick stops are areas of concern. Senator Davis asked about Sub Section Part C and the per centage of alcohol. Mr. Rutherford said he was not sure but he thinks Section P is not the definition of sherry, port, or madeira. Senator Little asked if there is a problem in other states with cheap ports. Mr. Rutherford said the Association of Idaho Cities had only polled the Idaho police departments so he doesn't have knowledge of other states experience. Chairman Sorensen stated that she had heard from Senator Bunderson and he had wanted to be at today''s meeting to oppose H246.

Bill Roden, representing the Idaho Beer and Wine Association, stated that the definition of dessert wine is contained in lines 26 to 28 of this bill. He said the reference to Section P is necessary as these wine products do contain a small amount of spirits which is used as a preservative. He said previous legislation had contained broader language which could have included other cordials and brandies. He does have available copies of the Attorney General's recommendations on previous dessert wine legislation. He said the new definition is limited to specific products. He said this bill has been reviewed by the State Liquor Dispensary Manager. Senator Davis referred to the fiscal statement and asked if the projected increase in income means increased consumption and therefore bears out the concerns of the State Police. Mr. Roden stated that with this type of product, purchases do not necessarily equate to consumption. Senator Stegner asked if the definition in this bill is tight enough to prevent cheaper versions from entering the market place. Mr. Roden said he thinks it is and it doesn't allow other products.

MOTION: Senator Stennett made a motion that H246 be sent to the Senate with a do pass recommendation. Senator Little seconded the motion.
Senator Richardson made a substitute motion that H246 be held in committee. Senator Geddes seconded the motion. A roll call vote was requested.
The substitute motion to hold H246 in committee failed. With Senators Sorensen, Stegner, Little, Stennett, and Calabretta voting nay. Senators Richardson, Darrington, Geddes and Davis voted aye.
The original motion to send H246 to the Senate with a do pass recommendation was approved. Senators Sorensen, Stegner, Little, Stennett, and Calabretta voted aye. Senators Richardson, Darrington, Geddes and Davis voted nay. Senator Sorensen and Senator Stennett will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:45 P.M.




DATE: March 10, 2003
TIME: 3:15 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Calabretta made a motion that the committee approve as written the minutes for March 5, 2003. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen stated that RS13044 would be held until Representative Mitchell could get approval from the germane committee which would be hearing this legislation.
RS12940C1 Relating to limitation on budget requests from property taxes; to exempt pest control and mosquito abatement activities from 3% cap upon a public hearing
Senator Stennett stated that the Agricultural Affairs Committee has consented to hearing this legislation.
MOTION: Senator Stennett made a motion that the committee introduce to print RS12940C1. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
H329 Relating to the Voluntary Contributions Act; to provide limits on labor organization contributions, to provide criminal acts and penalties, to provide registration and disclosure requirements
Senator Davis stated that his constituents have expressed concern that over time they have been making contributions to Political Action Committees who then do not spend these funds in an appropriate way. These people have felt substantial pressure in their work environment. This bill allows continued contributions but provides further protection for individuals who choose not to contribute unless they can just write a check. This legislation provides protection for individuals without impairing Political Action Committees.

Ron Nehring, a Senior Consultant for the Americans for Tax Reform, stated that this is a matter fundamental to the free speech rights of the members of this state. The state of Idaho should protect taxpayers who choose not to contribute. This legislation ensures Idahoans will have the freedom to choose for themselves. Taxpayers should not be forced to subsidize the political action of any group. He said it is important to protect the political privacy of individuals. He stated that unions in California spent $35 million to defeat a similar measure. He asked why they would spend so much. He said it is because it transfers power away from union officials. He said it is imperative to protect the rights of the individual. He said H329 is content neutral and even handed. Senator Stennett asked Mr. Nehring where he was from. He said he lives in San Diego, California, but his office is in Washington, D.C. Senator Stennett asked that since the bill referenced all employees of any business, didn't it restrict any business from payroll deductions. Mr. Nehring said the bill excludes those governed by Federal Labor laws and it does not apply to the private sector. Chairman Sorensen said the bill strikes the "individual annual affirmation in writing" language and it now appears the affirmation does not occur.

Dave Whaley, President of the American Federation of Labor and Congress of International Labor (AFLCIO), stated that H329 is unfair, unnecessary, unconstitutional and has unintended consequences. He said it intends to single out unions and their members. He said the bill is intrusive and seeks to dictate how unions spend money. He said charitable organizations such as the United Way may be adversely effected.

Sally Norton, a public employee for thirteen years and a member of the Service Employees International Union, spoke in opposition to H329. She said that at BSU they have a choice of 39 voluntary contributions to choose from for automatic payroll deductions. She said that even though her husband has lost his job and they had to cancel some deductions, she is not canceling her union membership. She said it is offensive that the government wants to intrude on her payroll deductions and that she is very capable of taking care of her own business.

John Greenfield is a lawyer from Boise who practices in labor law and elections. He stated that this bill is adverse to many interests including that of the Republican party. He said part one is model act language drafted out of state and identical to the Utah Act which was struck down. He said the section of the bill which seeks to amend the Right to Work Law opens the bill to all kinds of groups and organizations . He said it will destroy payroll deductions for everyone. Senator Stennett asked who would bring suit. Mr. Greenfield said the bill would certainly be challenged as it has been in other states. Senator Davis asked if he was referring to Judge Henroid's decision in Utah. Mr. Greenfield said he was. Senator Davis asked if Mr. Greenfield believed that the court decision determined that the bill was unconstitutional. Mr. Greenfield said he thought it indicated that the first amendment part was a violation of contract laws. Senator Davis said he disagreed with that interpretation and that the court found that in 44-2603, the expenditures were constitutional. Mr. Greenfield said under the first amendment, the bill failed. Senator Davis suggested Mr. Greenfield read the judges decision. Senator Calabretta asked how this legislation related to the United way or Blue Shield. Mr. Greenfield said the bill prohibits payroll deductions to be expended for anyone conducting political action and that the term "political contributions" is too widely defined. He said nothing in Section 2 restricts it to unions. She asked how, with the current status, one might pay dues but not contribute to the PAC. Mr. Greenfield said he did not know.

Jim Piotrowski, a lawyer in Boise, stated that he does a lot of constitutional law in his practice and he feels H329 is unconstitutional. He said the case of "Kerry Versus Brown" invalidated any attempts to restrict labor only and not others. He said that as the bill is written, it is not limited to labor organizations and that the equal protection clause leaves the legislation in an all or nothing position. Therefore the bill must be amended. Senator Davis asked him if he was saying that the Utah Court struck down the bill in it's entirety. Mr. Piotrowski said it was not totally struck down and there is still consideration occurring. However, his focus is the equal protection. Senator Davis stated that although the Utah Court had a problem with part of the statute, this bill has been written differently and allows for verbal notification of renewal. Senator Stegner asked about Section 2 and how it inhibited United Way deductions. Mr. Piotrowski said the United Way has an interest in certain bills and does testify before committees on some issues . As defined in this bill, that could be considered political activities.

Karl Mallott representing the Professional Firefighters of Idaho, (700 members) said they oppose this bill. He said they feel it is unnecessary legislation which would adversely affect their political activities. He said the sponsors of this bill could not answer their questions about the ramifications of the broad definition of "political activities".

Kathy Phelan, President of the Idaho Education Association, said they strongly oppose H329. She said it targets teachers and firefighters. She said there has been no corruption or complaints in Idaho and there is no reason for the legislation except to "silence dissent". She said they pool their limited resources ($16 per year per member). This bill will criminalize their political involvement. They have a right to a choice and this bill is just intended to "silence dissent".

Andrew Hanhardt, Deputy Trustee for the local 687 Union,(SEIU) said this bill singles out unions and is unfair and unnecessary. He said this bill remedies no harm or injury.

Dennis Doan stated that he does not support "Right to work". He is a fourth generation Idahoan who supports teachers and firefighters. He said it is a local control issue and if an employer opposes it, they don't do it.

Mary Durand, Legislative Council for the American Civil Liberties Union, stated that they oppose this law. She said unions have first amendment rights and this bill tries to tell unions how to spend their dues. She said the committee should consider the constitutional implications of this bill and the litigation that will result.

Bill Braddock, a retired Lieutenant from the Boise Police department, said that law enforcement doesn't have the privilege of union recognized by the legislature. They have worked years to set up payroll deductions. This bill will rob them of their most efficient method of deduction.

John Rumel, General Council for the Idaho Education Association, stated they oppose this bill because it has a broad scope and unintended consequences. He said the Utah Courts have spent $450,000 to address concerns of their bill. He said there as been no definite opinion from the Idaho Attorney General's office regarding this bill.

Gino White, a member of the Service Employees International Union, said this is damaging legislation which he opposes. He said he joins their voice because he wants to have a collective voice in the government. He said lobbyists are an important source of information. The average citizen does not have enough time to research every issue. He said competition is good and he asked the committee to have the strength to tolerate opposition and vote against this bill.

Dan Weston is a volunteer with the Eagle Fire Department. He is an out of work teacher with a Masters Degree from BSU. He has spent many hours as a volunteer and he supports firefighters and teacher.

Lee Flinn, the Executive Director of the Idaho Women's Network, stated that they stand in solidarity with the labor unions and oppose this bill. She said this bill is unnecessary and that it singles out labor unions and sets up significant barriers for these unions in collecting their dues through paycheck deduction.

Daniel Rice with the Pacific North West Region of Carpenters said he opposes H329. He said Utah has already spent $450,000 on litigation of their legislation. He said we should let them resolve the issues and then we can reconsider it at a later date.

Neil Colwell who is a lobbyist for Avista Corporation, urges rejection of H329. He said Avista uses the payroll deduction methodology with their employees to collect revenue for their PAC. He said there is a concern that if you impose this on one group, then it can be imposed on others.

Senator Darrington asked for a reading of the history of the bill. Chairman Sorensen read the history of the bill.

MOTION: Senator Davis made a motion that the committee send H329 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion.
Senator Stennett made a substitute motion that H329 be held in committee. Senator Calabretta seconded the motion. A roll call vote was requested.
Senator Stennett said that he opposes this bill and it will likely result in considerable expense due to litigation. Senator Calabretta said that this legislation is unnecessary and it is an affront to all of the working people of Idaho.
The substitute motion to hold H329 in committee failed. Senators Stennett and Calabretta voted aye. Senators Sorensen, Richardson, Darrington, Geddes , Davis, Stegner, and Little voted nay.
The original motion to send H329 to the Senate with a do pass recommendation carried. Senators Sorensen, Richardson, Darrington, Geddes, Davis, Stegner and Little voted aye. Senators Stennett and Calabretta voted nay.
Written testimony and supporting documentation provided by those giving testimony today are on file in the Senate State Affairs Committee
ADJOURNMENT There being no further business, the meeting adjourned at 5:00 P.M.




DATE: March 12, 2003
TIME: 3:20 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Richardson made a motion that the committee approve as written the minutes for March 10, 2003. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS13142 Relating to Administrative Rules; continuing certain rules in force and effect until July 1, 2004
Senator Geddes stated that this legislation is the third of the three annual rules proposals which are necessary to adopt and extend all rules until July 1, 2004.
MOTION: Senator Darrington made a motion that RS13142 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13155 Relating to the practice of Respiratory Therapy; to require a license or permit for the practice of polysomnography
Chairman Sorensen announced that she had received a letter from R. Skip Brandt , Chairman of the Senate Health and Welfare Committee, requesting that RS13155 be introduced to print.
MOTION: Senator Calabretta made a motion that the committee introduce to print RS13155. Senator Richardson seconded the motion. The motion was approved by a Voice Vote.
HCR26 Concurrent Resolution: concerning recycled oil and encouraging state agencies to purchase and use recycled oil
Representative Tom Trail stated that this resolution is an opportunity for the legislature to articulate support of the use of recycled oil to the Idaho State Agencies. He said it actually takes less energy to refine recycled oil than it does to refine virgin oil. He said this is good conservation policy and other states such as Texas and California have been doing this for some time. He said there will be no fiscal impact and possibly there will be a cost savings. He said Idaho State Government has a duty to lead in conservation and cost savings. Senator Darrington asked if there are currently any prohibitions against using recycled oil. Representative Trail said there were none that he knows of but most agency heads have very little or no knowledge of recycled oil. Senator Geddes said that his vehicle manual gives specific guidelines for warranty coverage and he asked if there would be any conflict. Representative Trail said that as long as the oil meets the American Petroleum Institutes Standards, it does meet the warranty specifications. He said that the United States Postal Service and Federal Express use almost 100% recycled oil.

Senator Davis questioned how the agencies would be moved to action since this is just a resolution. Representative Trail said that he had worked with Pam Ahrens and if this bill is approved, the sponsors will work with her to get the word out. Senator Davis expressed concern about the cost of procurement of recycled oil and asked what else they may be contemplating to encourage progress of usage. He also questioned what fiscal impact might result from such an effort. Representative Trail said their strategy for follow up, besides the resolution, would be direct contact with the directors of each agency . Senator Little said his review of the list of current recycling companies and their location indicated there were centralized fleets using recycled oil. He asked if they had done a comparison analysis of market costs for our area. Representative Trail stated that small states, such as Vermont and New Hampshire have also developed successful recycled oil programs. He said here in Idaho, major companies are also required to collect recyclable oil, but that currently much of the old oil is used for heating purposes. Senator Richardson asked what system of collection was used in Idaho. Representative Trail said there are 30 major collection sights in Idaho and from there, it is trucked to a recycling location.

Representative Martinez stated that of the 1.4 billion gallons of used oil generated each year, an estimated 200 million gallons is simply dumped into sewers and oceans. That is more than all the marine oil spills combined. So using refined oil instead of virgin oil saves a natural non-renewable resource without compromising quality or increasing spending. He said recycling will help reduce our dependancy on foreign oil and will help us conserve our resources. He said it is important for us to look at the bigger picture and move forward with positive change. He gave several examples where refined oil has been used for years which included the U. S. Postal Service.

Justin Hayes, for the Idaho Conservation League, stated that this bill sends an important message to the people of Idaho. He said they will assume that if it is good enough for the state, it is good enough for the people. He said it is important that the state encourages wise use of resources. Senator Richardson asked how many times oil could be recycled.

Teri Ottens, the Executive Director of the Association of Idaho Re-cyclers, stated that a few years ago, a paper re-cycling bill was passed in Idaho. Less than a year later, there is already a 20% increase in recycling by state agencies. This was the result of their public relations effort and they would do the same with information for oil recycling. She said commercial oil must be collected and recycled. She said the issue is how to purchase the recycled oil. Currently, there are two refineries in the state of Idaho. She said oil recycling provides 30 businesses and thousands of jobs in Idaho. She said oil can actually be recycled 10 times. Senator Darrington asked how you know how many times oil has been recycled. Ms. Otten said there is probably a test for viscosity and the oil is tested each time.

MOTION: Senator Richardson made a motion that the committee send HCR26 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Richardson and Senator Stennett will co-sponsor this bill in the Senate.
H291 Relating to initiative and referendum measures; to revise procedures, to provide that the election ballot shall include a clear and concise statement as to the effect of a "yes" or "no" vote
Representative Harwood stated that this legislation came about as a result of concern about the initiative process used for term limits. He said many constituents voted the wrong way because of confusion over the wording on the ballot. When he contacted the Secretary of State's office, he determined that Ben Ysursa was working on this bill so they, along with the Attorney General's office, prepared this legislation.

Representative Roberts stated that the significant part of this bill was on the last page where it states there will be a short, clear and concise statement clarifying the result of the vote. Senator Davis said his recollection was that there was an explanation on the term limits ballot and he asked how this change would right a wrong. Representative Roberts said that now there is a 200 word statement, and then there is a shorter 20 word statement of the effect of a yes or no vote. Senator Davis asked what is a simple statement of the referendum. Representative Roberts said that the term limits statement was a double negative. He said a simple statement might have been " A yes vote means you are in favor of term limits". Senator Davis said the people voted and he doesn't know if it is necessary legislation, but if others think

it is important, he will concur.

MOTION: Senator Calabretta made a motion that the committee send H291 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:00 P.M.




DATE: March 17, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Vice Chairman Richardson, Senators Darrington, Geddes, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Chairman Sorensen and Senator Davis
MINUTES: Vice Chairman Richardson called the meeting to order at 3:05 P.M. The secretary called the roll.

Senator Calabretta made a motion that the minutes for March 12, 2003, be approved as written. Senator Geddes seconded the motion. The motion carried by a Voice Vote.

RS13195 Concurrent Resolution : Authorizing the legislative council to appoint a committee to undertake and complete a study of economic development incentives in Idaho
Senator Bunderson stated that this resolution was requested by the Chamber of Commerce in order to study Idaho's competitive position compared to other states.
MOTION: Senator Geddes made a motion that the committee introduce to print RS13195. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS 13123 Concurrent Resolution: Appoint a committee to undertake and complete a study of the statutes governing Charter Schools
Dr. Cliff Green, representing the Idaho School Boards Association, stated that since the approval of Charter Schools in 1998, there have been some changes and some problems have developed which need resolution. The Idaho Charter Schools Association and the Idaho School Boards Association agree this study would be beneficial. Some of the issues that need consideration include the effects of Federal law suits and funding. Vice Chairman Richardson asked if this resolution was either pro or con charter schools. Dr. Green said it was neither. Senator Little asked if this could be handled by any other existing committees. Dr. Green said he was not sure but there would have to be some type of committee regardless of the outcome of this resolution.
MOTION: Senator Calabretta made a motion that RS13123 be introduced to print. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
RS 13127C4 Relating to Charter Schools, Amending Sections 33-5204; 33-5205; 33-5209
Dr. Cliff Green, representing the Idaho School Boards Association, stated that this bill was developed in response to a school trustee who was frustrated with how the current charter reads. This bill has been before the Education Committee several times and both sides have worked on it to get to this final wording.
MOTION: Senator Darrington made a motion that RS13127C4 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS 13178 Relating to Idaho Digital Learning Academy
Dr. Mike Friend of the Idaho Association of School Administrators, presented this legislation which seeks to provide for a district fee structure and provide clarity regarding tuition payments.
MOTION: Senator Stegner made a motion that RS13178 be introduced to print. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
S1164 Relating to Administrative Rules; continuing certain rules in force and effect until July 1, 2004
Senator Geddes stated that this bill is the annual legislation which is necessary to extend the rules for a year.
MOTION: Senator Little made a motion that the committee send S1164 to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Geddes will sponsor this bill in the Senate.
H305 Relating to the use of Land Bank Funds by the State Board of Land Commissioners; to provide a period up to 5 years in which Land Bank funds can be used to purchase other land within the state
Jay Beladeau stated that this legislation will extend the re-investment period for Land Bank funds from two years to five years. He said this would help improve potential revenue returns for the endowment. He said that selling and purchasing land can be very complicated and may involve several parcels which takes a considerable amount of time and negotiation. Senator Stennett asked if there has been problems with executing deals in the last five years. Mr. Beladeau said the Land Bank has not actually been used yet except for exchanges . Senator Stennett asked if it might be wise to change line 23 by inserting the word "shall" in place of "may". Mr. Beladeau said it is clear in the policy of their board that they shall invest in the Land Bank. Senator Calabretta asked if there is a current balance . Mr Beladeau said there is a $50,000 balance. Senator Little asked about how they measure the rate of return on their commercial real estate portfolio. He said he wasn't sure whether the state should be in the land business or whether using REIT's (Real Estate Investment Trusts) might be better. Mr. Beladeau stated that most of their current commercial real estate is in the Capitol Mall and is leased to private business and some state agencies. They use property managers to oversee the properties and their current rate of return is between eight and nine percent . Senator Stennett asked if they haven't yet had problems with the two year limit, why it was necessary to increase it to five years. Mr. Beladeau said they have mapped out the time frame for sales and purchases and most of them fall between one and a half to three year time periods, which would make the two year period difficult.
MOTION: Senator Stennett made a motion that the committee send H305 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will carry this bill in the Senate.
H312 Relating to the duties of the Secretary of State pursuant to the Uniform Commercial Code; to permit the Secretary of State to refuse to file certain invalid financing statements
Chuck Goodenough, the Deputy Secretary of State of the Commercial Division, said that this legislation would authorize the Secretary of State to reject certain invalid filings. They are experiencing a growing problem with people filing liens on themselves due to some strange reasoning. He presented a handout about Uniform Commercial Code filings which is on the Internet. He said he has been a lawyer for 25 years and can't understand this strange reasoning and that it is irrational. He said it is logically and legally impossible to owe money to yourself so why they are doing this is unknown. It is clogging the data base with false liens which should be considered nuisance filings. Senator Darrington asked if these were coming from a certain community. Mr. Goodenough said they were.
MOTION: Senator Calabretta made a motion that the committee send H312 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
H314 Relating to electronic filing of Annual Reports with the Secretary of State
Chuck Goodenough, Deputy Secretary of State, stated that the purpose of this legislation is to allow the Secretary of State to develop and implement a method for filing and accepting annual reports for corporations, non-profit corporations, limited liability companies and limited liability partnerships. He said that currently one third of their office's work is spent processing these reports. He said if they can get up and running in two years time, they can achieve significant savings. He said the bill also deletes some outdated language on limited liability forms. Vice Chairman Richardson asked if they would need additional funds and what cost there might be from this change. Mr. Goodenough said that they have Information Technology people who can re-program their system and they don't anticipate additional costs. Senator Little asked if an LLC ( Limited Liability Corporation) requires an action to be revoked. Mr. Goodenough said they do require action and then can be re-instated within a 10 year period. Senator Darrington asked if there would be any value in requiring the listing of all partners on an LLC application. Mr. Goodenough said currently that is not required. Senator Darrington said that sometimes the LLC's seek public permits and they do not know who they are. Mr. Goodenough agreed and said that they may try to review the LLC process next year. Senator Stennett said that the LLC was a replacement for Sub S Corporations which did require all the names. Mr. Goodenough said the Sub S only identified the president, secretary and officers, but not the shareholders . Senator Calabretta asked if the Secretary of State's office will be required to have a rules procedure for this legislation. Mr. Goodenough said that it would have a rules procedure as Representative Ellsworth had requested it also. Currently, they are reviewing how other states are handling this change.
MOTION: Senator Calabretta made a motion that the committee send H314 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting adjourned at 4:00 P.M.




DATE: March 19, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senators Davis and Calabretta
MINUTES: Senator Geddes made a motion that the committee approve as written the minutes for March 17, 2003. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS13200 Relating to Port Districts; to provide for dis-incorporation
Senator Stegner stated that this legislation deals with Port Districts such as the one in Lewiston, Idaho. When these districts were formed some 30 years ago, the language for the law was taken from the state of Washington and it declares that a port district is a municipality. Now these districts need language to guide the process if citizens want to dis-incorporate the port. This is necessary to specifically address the indebtedness involved. Senator Darrington asked if this bill replaces S1090. Senator Stegner said it does not. He said the sponsors of that bill are developing new code for land based ports. Senator Richardson asked if this bill would preclude a commercial takeover of the port. Senator Stegner said it would not but that the port has the authority in developing and operating the infrastructure. He said that if the citizens want to dis-incorporate, this does not limit their options. Senator Richardson asked if this had any tie in to the dam operations. Senator Stegner said not directly, but possibly in the future if the dams are removed. He said the port is an economic development facility which can levy taxes. Some community members oppose this taxing authority.
MOTION: Senator Darrington made a motion that RS13200 be introduced to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
S1167 Relating to state buildings; they shall conform to the Idaho Building Code Act and shall be subject to the jurisdiction of the State Division of Building Safety and the State Fire Marshal.
Chairman Sorensen stated that S1167 was a bill that was discussed in the Judiciary and Rules Committee and then voted to be sent to the second reading. However, it was mis-routed to State Affairs. She said if there was no objection, Senator Bunderson was requesting it be directed to the twelfth order in the Senate. Senator Stennett asked if there had been a public hearing for this bill in the other committee. Chairman Sorensen said there had not been. Senator Stennett then objected to the request that S1167 be sent to the twelfth order. Chairman Sorensen then requested a copy of the bill for each member of the committee and for Senator Bunderson to be called to present it to the committee.
Vice Chairman Richardson then took leadership of the meeting so Senator Sorensen could present some legislation.
RS13162C1 Relating to Lobbyists; to prohibit certain contributions during any regular or special session of the legislature, to define "contribution"; to provide penalties
Senator Sorensen stated that the purpose of this law is to eliminate any appearance of impropriety, while the legislature is in session, that may result from lobbyists offering to make or being asked to make contributions that benefit political candidates or political committees. She provided to the committee a handout of the list of states where such activity is already illegal. She said that currently, fund raisers do occur during session and this bill will eliminate potential conflict. Senator Stegner asked if this legislation would prohibit the Republican Political Action Committee from running fund raisers during the session. Senator Sorensen said it would. Senator Stennett asked if the bill would prohibit a legislator from requesting that a lobbyist purchase tickets for the Lincoln Day events. Senator Sorensen said she did not believe that would be prohibited as the contribution is to a group and not an individual candidate. Senator Stennett said he could not see where the bill prohibited contributing to a Senate Political PAC. Senator Stegner referred to the wording "no lobbyist shall be requested to make or promise to make a contribution". Senator Sorensen said the offer is contained in the "to make" wording. Senator Little said he is concerned about the potential gray area of political groups versus individuals. He said there is the possibility of a pass through to individuals which would not be effected. He also asked about the bill's reference to other state officers, such as the Treasurer and their need to campaign even during the session. Senator Sorensen said that contributing to a political party is different than to an individual because it would go to a political party organization activity and not a specific candidate. With regards to state elected officers, this bill would apply. Senator Richardson asked if this bill is similar to other states's legislation. Senator Sorensen said it is primarily the same.
MOTION: Senator Stegner made a motion that the committee introduce to print RS13162C1. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
S1118 Relating to the creation of Success Scholarships for Idaho students in post-secondary institutions in Idaho
Senator Sorensen stated that the purpose of this legislation is to create a Success Scholarship Program for Idaho students with the following objectives:

1. To provide a level of financial support to Idaho students who have graduated from an Idaho high school or who have obtained an Idaho GED and are enrolled full time at an eligible Idaho public college or university

2. To encourage Idaho high school students to pursue a public college education in Idaho and to complete a first four year degree within a maximum of nine semesters or a first two year degree within a maximum of five semesters.

The Success Scholarship Program would pay for up to 100% of required fees to every high school graduate (or GED recipient) who wants to attend an Idaho public college or university and has met the requirements of the program.

Senator Sorensen said that the name of the scholarship is flexible and could be the "Robert Lee" scholarships. She said that the Success Scholarship Program would be financed with 1/3 of state lottery funds, the current Promise Scholarship funds, and 5% of the profits from Tribal Gaming. She said this type plan has been well received in other states. Senator Richardson asked about the 2.5 grade point requirement. Senator Sorensen said the intent is to keep Idaho students here in this state. Senator Darrington asked what he should tell the school districts in his district who depend on the lottery funds. Senator Sorensen said that these funds would still be helping students from that district through the scholarships. She said it is important that we build a better work force. Senator Stennett asked about the 5% of Tribal Gaming provision. Senator Sorensen said there may need to do some amending to the bill. Senator Stennett stated that decreasing funds to his rural district would be a tough sell and suggested a different division of the lottery funds may be necessary. Senator Sorensen said there are many perspectives on the financing aspect of the bill. Senator Richardson asked if this bill would achieve immediate change. Senator Sorensen said after amendment and then qualification of students, it would probably take effect in 2004.
Rick Hachtel, a lobbyist for the Associated Students of Boise State University, said they support S1118. He said this bill would send an important message to the college students of Idaho that this state values higher education. He said that around the country, statistics show that 64% of graduating students enroll in higher education. However, in Idaho, only 49% enroll. He said this bill could provide a hand up not a hand out. He said the legislature must be a positive and progressive force for higher education by supporting the higher education budget and then supporting this legislation. Senator Stennett asked Mr. Hachtel if he had to make a choice between funds for buildings on campus or funds for these scholarships, which would he choose. Mr. Hachtel said the decision is difficult and the trade off is an important question. He said we need to consider education K through 16 and not K through 12.
Lynn Humphrey, from the State Board of Education, said that although they are taking no official position on this bill, they do think it has some positive effects. She said this bill does encourage enrollment from high school and it would help students proceed and graduate more quickly. She said it determines eligibility based on college performance and has fewer criteria that must be reached. She said it would help defeat the financial barriers that exist now.
Jeremy Peirsol, representing the Associated Students of Idaho State University, said he is a first generation college kid and one of ten children. He appreciates how very important accessibility can be. He likes the idea of 1,620 Idaho students having access to financial assistance. He said it is important during economic setbacks to look to the future. He supports S1118. Senator Stennett said the budget process is all about choices and asked Mr. Peirsol, which priority he would choose. Mr. Peirsol said getting the scholarship bill off the ground would be good, but it may need some amending in the finance area. Senator Little said it is a great concept but the funding is very challenging. Senator Sorensen said this bill does not end the building fund, it just reduces the amount a certain degree in order to allow a wider range of students to get started. There was further discussion by the committee. Senator Geddes said he agrees we should promote opportunity but it is important that the students work hard and make a sacrifice also. He said current statistics indicate 40% of students don't complete college. He said it is beyond our capabilities to provide a free education to every student in Idaho.
MOTION: Senator Stennett made a motion that S1118 be sent to the fourteenth order. Senator Sorensen seconded the motion. The motion failed by a Voice Vote.
S1167 Relating to state buildings; they shall conform to the Idaho Building Code Act and shall be subject to the jurisdiction of the State Division of Building Safety and the State Fire Marshal.
Senator Bunderson said this legislation was the result of perceived ambiguities in the law which were identified as a result of the water tower project at Idaho Place. It was determined that the City of Boise and the Fire Marshall had been left out of the loop in the construction at this location. There was a concern about the enforcement of local ordinances on State Building projects and also questions about the receipts for inspections, reviews and permits. He said this group of 14 got together and worked out this legislation which satisfies all parties concerns. Senator Bunderson said that currently the state has been separate from the cities and now they will be notified of state projects and have an opportunity to respond. He said the Judiciary and Rules Committee had introduced this RS to print and had directed it to the second reading but through an error it was sent to State Affairs.
MOTION: Senator Stegner made a motion that S1167 be sent to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Bunderson will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the committee adjourned at 4:15 P.M.




DATE: March 24, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Stegner, Little, and Stennett
MEMBERS EXCUSED: Senator Davis and Senator Calabretta
MINUTES: Senator Geddes made a motion that the committee approve the minutes for March 19, 2003. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13220 Concurrent Resolution: Authorizing a committee to complete a study of judicial elections.

Representative Wendy Jaquet stated that this bill is a re-write of HCR27 which will extend the term of the study committee to two years.

MOTION: Senator Geddes made a motion that the committee introduce to print RS13220. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13223 Providing a formula for the Maintenance Fund for School Districts in the state of Idaho.
Darrel Deide, from the Governor's office, stated that he is a co-sponsor with Senator Schroeder on this bill. He said this is a result of the Task Force appointed by the Governor and the State Superintendent of Education which met over the last eight months and made four recommendations. This bill mandates that each school district have a maintenance fund according to the formula provided.
MOTION: Senator Richardson made a motion that the committee introduce RS 13223 to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS13216 Relating to the Value Index Calculation for School Districts; to provide a school with an alternative as to calculation
Darrel Deide stated that when the legislature passed S1474, it changed the view of school construction in Idaho. This bill will correct a foreseeable problem with using county data to calculate the amount a school district pays by providing for possible disparities.
MOTION: Senator Stegner made a motion that RS13216 be introduced to print. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS13217 Joint Resolution; Amendment to Section 3, Article VIII, of the Constitution of Idaho, relating to limitations on county and municipal indebtedness

Darrel Deide stated that this Joint Resolution proposes a constitutional amendment to the electorate for the purpose of authorizing school districts to incur debt with a 60% majority, if the election is held on the fourth Tuesday in May or the Tuesday following the first Monday in November, as provided in statute.

Senator Geddes stated that Joint Rule 20 does not allow the introduction of a Constitutional Amendment this late in the session without a certain consensus which is being obtained at this time and will be complete with one other final signature.
MOTION: Senator Stegner made a motion that RS13217 be introduced to print. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS13190 Relating to the Public Records Act; to provide an exception to the prohibition on distribution or sale of mailing or telephone number lists to military recruiters
Dr. Bob Haley stated that the purpose of this legislation is to provide an exception to the prohibition on distribution or sale of mailing or telephone number lists to allow student directory information to be released to military recruiters for military recruiting purposes pursuant to the requirements of federal laws. Schools that do not comply could jeopardize their receipt of ESEA funds . He said the State Board of Education and the Legislative Education Committee has reviewed and approved this legislation.
MOTION: Senator Stegner made a motion that RS13190 be introduced to print. Senator Little seconded the motion. The motion carried by a Voice Vote.
S1171 Relating to Port Districts; to provide for dis-incorporation
Senator Stegner stated that this legislation allows for the dis-incorporation of water-based port districts as discussed in our previous meeting.
MOTION: Senator Stennett made a motion that S1171 be sent to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
H333 Relating to the sale of alcoholic beverages; to provide cities may by ordinance allow the sale of liquor by the drink on certain days
Representative Wayne Meyer said this bill was proposed by the Police Chief of Post Falls to clarify the sale of liquor by the drink on certain days and hours. He said currently, per statute the city can restrict sales to 1:00 A.M. The county has the option to extend the serving time until 2:00 A.M. This legislation amends Section 23-927, Idaho Code, to provide that cities may, by ordinance, allow the sale of liquor by the drink and extend hours of sale for liquor by the drink. Senator Little expressed concern that this legislation might contribute to an even greater confusion about the hours of legal service. Representative Meyer said that may be but the intentions is to bring the cities into compliance.
Bill von Tagen , Deputy Attorney General, stated that the decision being referred to is the one of "separate sovereignty." He said the counties can't legislate in the cities. Senator Little asked if he thought there would be a bigger problem with multiple closing times. Mr. van Tagen said he didn't know.
MOTION: Senator Stegner made a motion that H333 be sent to the Senate with a do pass recommendation. Senator Stennett seconded the motion. A roll call vote was requested.
Senator Little made a substitute motion that H333 be held until the next meeting for further clarification. Senator Geddes seconded the motion. The motion to hold carried by a Voice Vote.
HJM8 Joint Memorial: to the Congress and President of the United States giving the President, the troops, and the cabinet support for the war
Representative Julie Ellsworth stated that this resolution expresses Idaho's support for President George W. Bush, the President's cabinet, and the men and women of the United States Armed Forces for their courage .
MOTION: Senator Richardson made a motion that the committee send HJM8 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
H322 Relating to the Credit Enhancement Program for School District Bonds; to increase the amount of money the endowment fund investment boards shall make available
Liza Carberry, the Investment Manager, for the State Treasurer's office, stated that the purpose of this legislation is to increase the guarantee amount on the Idaho Bond Guaranty Program from $200 million to $600 million. To date they have issued $200 million in guarantees which is the maximum. This will expand the program for future bond issues. They did get approval from Moody's and assurance that the increased debt would not adversely affect Idaho's rating. Senator Stennett said he would like to see the statement from Moody's and asked what is the cap. Ms. Carberry said they estimate this amount will last five to six years out and then the cap would have to be addressed. Senator Little asked who gets called in the case of a default. Ms. Carberry said the Treasurer would be called. Senator Little said he felt uncomfortable with this great of a commitment and the pledge of the sales tax receipts. Ms. Carberry stated that the Department of Education does an analysis of each school district before any issuance and the rating agency also does a review.
MOTION: Senator Stegner made a motion that H322 be sent to the Senate with a do pass recommendation. Senator Geddes seconded the motion.
Senator Stennett expressed concern that pledging $600 million for the state may be too much. Senator Stegner said that considering the total budget for the state and the periodic disbursement of this program, he felt the increased limit was reasonable and manageable. Senator Geddes asked if this limit also applied to the cities and counties . Ms. Carberry said this program only applies to the school districts.
The motion to send H322 to the floor of the Senate with a do pass recommendation was approved by a Voice Vote.
H357 Relating to the sales of cigarettes; to provide the duties of the Attorney General
Representative Ellsworth stated that the intent of this legislation is to make the sale of tobacco products over the Internet mirror how we handle the sale of alcohol following the steps for a face to face sale. This legislation would stop a sales delivery of tobacco products to any individual who is under the legal minimum purchase age in Idaho. Senator Richardson asked who is responsible for verification of an adult. Representative Ellsworth said there is a burden on the delivery person. Chairman Sorensen asked what if an older sibling accepts delivery for a minor. Representative Ellsworth said this helps to limit that possibility but it is not a perfect system. She said there would be a training program for delivery agents. Senator Darrington expressed sympathy for the "messenger."
Bill van Tagen, on behalf of the Attorney General, stated that this legislation originated when former Attorney General Lance became concerned about youth access to tobacco. Their first intent was to ban all internet sales but due to some current court rulings, it has not been determined that would be legal. He said this legislation will provide a dis-incentive to illegal sales and also provide the tools needed to address violations. It will allow improved tax collection and will also protect other merchants. Chairman Sorensen asked about the penalty to the delivery agent for violations. Mr. van Tagen said the penalties are defined in the existing law and incorporated into this bill. He said there has been a definite escalation in the internet sales and this legislation will tighten the law.
Skip Smyser, with Connelly & Smyser Law firm, is representing ALTRIA which is a wholly owned subsidiary of Philip Morris. He said that tobacco is rapidly becoming the most highly trafficked illegal substance. He said there are currently over 1,000 internet sites where you can purchase cigarettes. These sites are not selling in a lawful manor. He said China ships 100 billion counterfeit cigarettes into the U.S. each year. This bill tries to give the state the tools necessary to deal with this problem. It will allow the Attorney General to go after bad manufacturers. Many other states have been overwhelmed by illegal activities in tobacco. Organized crime will take over the states revenue stream. We are going to have to deal with this area of abuse and this bill is a good start.
MOTION: Senator Richardson made a motion to send H357 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Sorensen will sponsor H357 in the Senate.
Chairman Sorensen announced that she had received a request by the sponsor to hold H358 until March 31, 2003.
ADJOURNMENT There being no further business, the committee adjourned at 4:50 P.M.




DATE: March 26, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little
MEMBERS

EXCUSED:

Senator Calabretta and Senator Stennett
MINUTES: Senator Richardson made a motion that the minutes of March 24, 2003, be approved as written. Senator Little seconded the motion. The motion carried by a Voice Vote.
H333 Relating to the sale of alcoholic beverages; to provide cities may by ordinance allow the sale of liquor by the drink on certain days
Representative Meyer stated that when the committee last met to review this bill there had been some concern expressed about a "patchwork" of bar closing times which might result. Therefore, he did a phone survey of the current closing time of various bars in Boise and determined that a "patchwork" of closing times already exists. He provided a handout for the committee which identified which counties in the state have currently passed ordinances to extend closing time to 2:00A.M. Apparently, Boise's approach has been to allow the county ruling. Therefore, these bars are out of compliance by staying open until 2:00 A.M. because Boise hasn't past a city ordinance to approve it.

Senator Little stated that he had contacted the Attorney General's office who in turn contacted the sheriff for a clarification on this bill. Their conclusion was; H333 amends Idaho Code 23-927 and 23-1012 to permit cities discretionary authority regarding the hours of sale of liquor by the drink and beer. H333 does not appear to present any legal considerations regarding its enactment. In fact, it appears that H333 is simply a statutory clarification of the police powers, which are organic to cities. In essence, both cities and counties enjoy broad local controls over liquor, beer , and wine sales within their respective limits already, this amendment simply adds further clarification

MOTION: Senator Little made a motion that H333 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion.
Senator Richardson stated that he disagrees with any additional availability of alcohol as recent events have demonstrated its destructive potential. He opposes this bill. Senator Darrington said that he agrees with Senator Richardson's conclusion but he was going to vote for this bill in committee.
VOTE: The motion to send H333 to the floor of the Senate with a do pass recommendation carried by a Voice Vote.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:25 P.M.




DATE: March 28, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED: Senator Calabretta
MINUTES: Senator Geddes made a motion that the committee approve as written the minutes for March 26, 2003. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS13221C2 Relating to the Voluntary Contributions Act
Senator Stegner stated that this legislation clarifies the intent of H329 by reaffirming a labor organization's authority to engage in lobbying and voter registration activities as regular membership activities. This bill clarifies the traditional and authorized legal activities of labor organizations. Senator Davis , as a co-sponsor of this bill, read the definition of "lobby" and "measure" as defined terms in Title 67.
MOTION: Senator Stegner made a motion that RS13221C2 be introduced to print. Senator Davis seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Richardson then took leadership of the committee while Chairman Sorensen presented a bill.
RS13252 Relating to the prohibition of gifts to public servants by persons subject to their jurisdiction.
Senator Sorensen stated that the purpose of this legislation is to amend Section 18-1356, Idaho Code, to provide an exception from the provision prohibiting gifts to public servants by person subject to their jurisdiction, for expenses provided to a public servant to attend charitable, cultural, instructional or educational events. She stated that this will clarify some ethical concerns about attendance at meetings paid for by certain individuals.
MOTION: Senator Darrington made a motion that RS13252 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
S1175 Relating to the Public Records Act; to provide an exception to the prohibition on distribution or sale of mailing or telephone number lists to military recruiters
Dr. Bob Haley, the legislative liaison for the Department of Education, stated that this legislation will bring Idaho into compliance with Federal Law which requires military recruiters to be allowed access to information.

Schools who fail to comply may jeopardize their funding on a district basis. Federal funding to Idaho is approximately $120 million. Each district must comply and provide the name, address and phone number for students unless their parents have opted out. The State Board of Education has agreed to forward this legislation.

Darrell Manning with the Department of Financial Management said he has a personal interest in this bill as he believes the military provides excellent technical training and it has excellent scholarship programs. He said that for many students the military is the best way to get an education. Senator Stennett had several questions about the school age of students when the information is reported and opting out of the directory. He questioned the conscious acknowledgment by parents of this practice.
MOTION: Senator Stegner made a motion to send S1175 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Stennett voted no. Senator Richardson will sponsor this bill in the Senate.
H363 Fee of $1.00 for 911 on cell phones
Mike Kane, representing the Idaho Sheriffs Association, stated that this is important legislation for the Association of Counties and the Sheriff's agreed to take the lead because it involves a public safety issue. This legislation has involved the coordination of an extensive group of public safety providers and telecommunications providers. This bill will solve the issue of cell phones and land line phones being treated equally with regards to the 911 fee. If a county has already voted for a fee, it will apply to both cell and land line phones. There is new technology that will allow cell phones to be trackable. The problem is that the counties don't have funds for the necessary supporting technology. In Idaho, the governance of 911 is run differently than in other states. He said the bill includes a suggestion for an interim study committee for emergency communications. This new fee will generate $5-6 million annually. Since Idaho law has decided that emergency communications are not state run, it is up to the cities and counties to find the funds. Under this law, the fee cannot go beyond a $1.
Roy Eiguren, an attorney with Givens-Pursley law firm is representing Verizon Wireless. He said that of the seven wireless phone companies in Idaho, four participated in this committee and three of them support this legislation (Quest,Cricket, and Verizon). He said cell phones have expanded dramatically and there is an estimated 600,000 in the state. He said this legislation will treat cell phone customers the same as land line
customers and it will help to resolve potential law suits between counties and the state. He said currently, Idaho law does not provide necessary "enhanced" 911 systems. He said this bill establishes a new budget process for 911 servers and includes a rate setting process. It also provides strict limitations on the use of 911 fees. He said that after five years of controversy and a lot of hard work, this legislation is the positive result. Senator Sorensen asked about the $1 fee and the annual re-setting of the fee. Mr. Eiguren said the cost of technology is high and it must be applied across all counties. Senator Geddes asked about the reliability of the new enhanced systems. Mr. Eiguren said it depends on your location and is different from one state to another.
Stuart Davis testified as an Idaho citizen who survived a plane crash several years ago due to the use of his cell phone. He used his cell phone to contact 911 services who then helped him pinpoint his location and he was rescued. He thinks it is important for us to concentrate on saving lives and he believes in cell phones. .
Ron Williams is an attorney from Boise who is representing Sprint Communications. They support phase two enhanced 911 systems and all their cell phones have embedded technology for location. He said though Sprint believes this bill is moving in the right direction , they are unable to support this bill. He said H363 has good elements but it makes the fee sound like a general tax and there is no guarantee those funds will be used to build a phase two communications system. He said there is no justification for the $1 fee and they usually support a 50 cent fee. Senator Stegner asked why they support a state system over a county run system. Mr. Williams said that Idaho is a tourism state and there are some significant turf wars between law enforcement agencies. Senator Stegner asked if his concerns regarding the fee becoming general revenue was not addressed by lines 27 thru 38 of the bill which are very specific about use of the fee. Mr. Wiiliams said that since he wrote those words, they are somewhat comforting, but a more comprehensive view of the fees would prevent possible wiggle room. Senator Geddes stated that he uses his cell when traveling to Utah and there are significant stretches where there is currently no coverage. He also stated that if he uses *ISP within five miles of Boise, he gets the dispatch in Pocatello. Mr. Williams said he could not explain that but that he does support a statewide system.
Les Shadduck works with the Idaho County Sheriffs and he said *ISP calls should go to the center at Meridian. He said dialing 911 would connect to Ada County. He said that although capital equipment costs are big, ongoing maintenance is actually the greatest expense. He said the wireless companies have ongoing costs. Senator Sorensen asked how the $1 allocation works in smaller cities. Mr. Shadduck said the fees would help with an enhanced wire line and to establish the basic 911 system. Senator Davis asked if the enhanced phone system will require the purchase of new phones. Mr. Shadduck said it possibly would depending on your phone and if it has the chip.
Sheriff Vaughn Killeen stated that they have been working with the vendors, the counties and the cities for four to five years on these issues. Because technology is changing so much they struggle with a moving target. They tried to include a portion to provide oversight for small counties but they were informed in the House, it wouldn't pass. So they voted as a collective body to start with this legislation. They will continue to work on other issues. Today about 60% of all 911 calls come from cell phones. Senator Sorensen asked why a portion of the fee (25 cents) couldn't be used for the overall system. Sheriff Killeen said that is an option which they will explore but wireless technology is here now and they need to move with this legislation now and not wait until next year.
John Ellioretta, a Jerome County Commissioner, serves on the Southern Idaho Regional Communications Board. The smaller counties have seen escalating increases (from 7% to 12% in Lincoln County) in the required contributions to emergency communications systems. This bill provides equity of fees between cell phones and land line phones. He said if the counties have to keep increasing contributions they will be in dire straights.
MOTION: Senator Richardson made a motion to send H363 to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Sorensen will sponsor this bill in the Senate.
RS13250 Relating to the Emergency Communications Act; to make two technical corrections
Mike Kane stated that this is a trailer bill to H363 which makes two technical corrections. The first correction is to add language that was inadvertently dropped on page 2, line 26 of H363, and merely requires the insertion of the words "or 911 service area" after the word "counties." The second correction provides the replacement of the words "wireless carriers" on page 4, line 51 of H363, with the words "telecommunications providers," which are the correct terms used consistently throughout H363. These terms were agreed to by the sponsors and were intended to be correctly stated in H363.
MOTION: Senator Stegner made a motion that RS13250 be introduced to print and then be directed to the 12th order in the Senate. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
H382 Relating to independent candidates; to provide that a declaration of candidacy as an independent candidate must be filed during the period specified in Section 34-704, Idaho Code
Secretary of State, Ben Ysursa stated that this legislation is intended to bring the filing date for independent candidates in line with the date that was changed in Chapter 48 of the 2003 Sessions Laws.
MOTION: Senator Darrington made a motion that H382 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Darrington will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting adjourned at 4:15 P.M.




DATE: March 31, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett
MEMBERS

EXCUSED:

Senator Calabretta
MINUTES: Senator Richardson made a motion that the committee approve as written the minutes for March 28,2003. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
RS13258 Senate Resolution; Expressing support for "Operation Enduring Support"
Senator Lodge stated that the purpose of this resolution is to urge the Idaho communities, businesses and schools to support the members of the armed services. Senator Lodge visited the Viet Nam Memorial Wall currently on display in Nampa and visited with numerous veterans who told her how un-welcomed they were upon their return from Viet Nam and how much that Memorial means to them. She feels it is important that the treatment of current military members be better.
Senator Bailey said he strongly supports RS13258. As a Viet Nam Veteran he experienced hostility when he returned and was advised not to wear his uniform. He said now 30 years later we are hearing from the protestors again and so are the members of military families. This resolution will help encourage the families of service men as well as the soldiers.
MOTION: Senator Richardson made a motion that RS13258 be introduced to print. Senator Davis seconded the motion. The motion carried by a Voice Vote.
SJR101 Joint Resolution; An Amendment to Section 3, Article VIII, of the Constitution of Idaho, relating to the limitations on county and municipal indebtedness
Darrel Deide from the Governor's office stated that this amendment will allow for a reduction in the two thirds majority requirement for passage of bond issues if they are scheduled on certain days. This change applies to school districts only and will allow more of the electorate of Idaho to participate in elections.
Dan Olberding, representing the Idaho Grain Producers Association stated that they have a long standing policy of opposing any legislation that changes the requirement for a two thirds majority.
Dr. Greg Nelson from the Idaho Farm Bureau Federation, stated that their 57,400 members oppose changing Idaho's Constitution to lower the supermajority on bond issues from 66 2/3% down to 60%. He said the supermajority has worked well through the years and if the funding remains on property tax, then we should keep the 2/3 majority requirement.
Kent Kunz from the Governor's office, stated that their guiding principal is to allow the largest number of voters to determine the issues. That occurs when the largest number of voters are at the polls. He supports SJR101.
Steve Ahrens with the Idaho Association of Commerce and Industry stated that they support the two thirds majority requirement. He said the problem with lowering the majority is that then a smaller group can vote to impose their opinion. Senator Little asked if this had always been the IACI position. Mr. Ahrens said it had not, as in past, they had softened their position to 60% majority. Then in 1997 they returned to favor the requirement of a supermajority. Senator Stennett asked how many states require the two thirds majority. Mr. Ahrens did not know. Senator Little asked if this legislation was related to the facilities law suit. Darrel Deide stated that it was one of the Task Force's four recommendations which, if approved, may have favorable response with the judge.
MOTION: Senator Stegner made a motion to send SJR101 to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. A roll call vote was requested. Senators Sorensen, Geddes, Davis, Stegner, Little, and Stennett voted aye. Senators Darrington and Richardson voted nay. Senator Stegner will sponsor this bill in the Senate.
Chairman Sorensen turned over the chair to Vice Chairman Richardson.
S1177 Relating to the prohibition of gifts to public servants by person subject to their jurisdiction
Senator Sorensen stated that the purpose of this legislation is to amend Section 18-1356, Idaho Code, to provide an exception from the provision prohibiting gifts to public servants by persons subject to their jurisdiction, for expenses provided to a public servant to attend charitable, cultural, instructional or educational events. She said that she worked on this legislation with Michael Bogart from the Governor's office.
Michael Bogart stated that this legislation has been necessitated by examination of a recent gift rules review. He said they have identified exceptions to the gift prohibition which are clarified in this bill as charitable, cultural and educational events. He said these usual and customary social occasions would include the Governor's Challenge and the Twigg's Tournament. He said pecuniary benefits would not be authorized.
MOTION: Senator Sorensen made a motion that the committee send S1177 to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Sorensen will sponsor this bill in the Senate.
S1172 Relating to lobbyists; to prohibit certain contributions during any regular or special session of the legislature and to provide penalties
Senator Sorensen stated that we must use caution during the session when bills are before us and contributions to lobbyists are requested. This is particularly timely due to recent events in Boise. Senator Davis asked if opposing candidates that are not currently elected would be also precluded from fund raising. Senator Sorensen said they would only be precluded from soliciting lobbyists.
Steve Ahrens from the Idaho Association of Commerce and Industry, said the matter of in session fund raisers came to their attention early in this session and presented a problem. He said some organizations are not able to make contributions, but yet felt compelled to show support. He said this bill deals with the appearance of impropriety not necessarily the reality. It has limited impact but is important to the public. Senator Davis asked Mr. Ahrens if he thought it was good public policy to restrict candidates from fund raising. Mr. Ahrens said the bill doesn't prevent fund raising from citizens but only from lobbyists during the session. Senator Geddes asked if this bill would protect the incumbent at the expense of the challenger. Mr. Ahrens said he couldn't answer that but the intent is to address the perception of the voters.
Marty Durand, the Legislative Council for the American Civil Liberties Union, said they oppose this legislation. She stated that the limitations on political contributions impinge on our freedom of speech and association. They feel free speech should be expanded not retracted. She suggested it would be better for Idaho to delay until a related court decision is final.
Karlene Allen, Executive Director for the Idaho Wholesale Marketers Association, stated that they support this legislation. They are involved with the tobacco industry which has been placed under increased regulation and they no longer have funds to contribute to political campaigns. She said"If you don't ask-­we don't have to give."
Jerry Peterson stated that he is a lobbyist and has also been a candidate. He asked if he runs again, how would this affect his campaign?
Lori Dicaire the Executive Director of Idahoans for Fair Elections, stated that they support this legislation. She said that in this time of ethical scandals, it is important to pass legislation. This bill doesn't solve all the problems but it urges putting the public interest ahead of personal interest.
Jeremy Pisca, President of the Idaho Political Advisors Association, stated that they support S1172. He said that their articles of incorporation state that they are to foster and promote ethical standards. They believe this bill will help that. He presented a letter to the committee members.
Senator Sorensen concluded by stating that there is an appearance of impropriety when asking for funds during the session. This bill does not preclude getting contributions from anyone outside of the legislature.
MOTION: Senator Sorensen made a motion that S1172 be sent to the floor of the Senate with a do pass recommendation. There was no second.

Senator Davis made a motion that S1172 be directed to the fourteenth order. Senator Stegner seconded the motion. The motion carried by a Voice Vote.

Vice Chairman Richardson returned the chair to Senator Sorensen.

S1176 Relating to the Voluntary Contributions Act
Senator Stegner stated that there was confusion after the passage of H329 and the purpose of this legislation is to clarify the intent by reaffirming a labor organization's authority to engage in lobbying and voter registration activities as regular membership activities.
Dave Whaley, President of the American Federation of Labor and Congress of Industrial Organizations, stated that after reviewing S1176 with their headquarters, they continue to find this legislation unnecessary, unfair and having unintended consequences. The oppose S1176.
Karl Malott representing the Professional Firefighters of Idaho, said that this legislation is an attempt to hold up a leaning house (H329) but the house still has no solid foundation. It does not address their constitutional concerns and they still feel it prohibits them from working on their traditional issues.
Jim Shackelford, Executive Director of the Idaho Education Association, stated that although they appreciate the attempt to make clear that union dues can be used to lobby, they still do not agree with H329. He offered some suggestions for improvement and recommended that possibly the committee may want to direct it to the amending order.
Michael Bogart from the Governor's office, stated that the Governor's interest was that this bill be considered a trailer bill to H329 in order to clarify what constitutes "legislative cause." He said the intent was to address a narrow concern and that they did not agree that H329 inhibits unions from engaging in the political process. Senator Darrington asked if he thought there is a conflict between the terms "measure and proposition." Mr, Bogart said the term measure is broadly defined and is already encompassed in the Sunshine Laws so a conflict is not readily evident.
Dennis Doan, a Firefighter, said he had a meeting with the Governor at the time of the vote on H329 and expressed his concerns . He said this bill may allow them to lobby but it doesn't allow them to work on initiatives. He said the Governor had told him to stay in touch but he didn't hear anymore. He said they should be able to use their voluntary dues for their activities. Senator Davis asked if he thought this bill would improve H329. Mr. Doan said it is ambiguous and doesn't go far enough.
Jeff Olsen, representing the Public Employees, said he has testified four times and he continues to feel these bills fly in the face of the American Constitution by holding labor to a higher standard. He said that the state rewards employees with paid time off for contributing to the United Way. He said the unions are entitled to equal protection. He said when the courts review this legislation, there will be a clarification.
Senator Stegner said that S1176 is a sincere effort to make sure there were no unintended consequences to H329. He said he does not doubt the sincerity of the opposition and their intention to file suit. Never the less, he is more comfortable with this additional legislation.
MOTION: Senator Stegner made a motion that S1176 be sent to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion.

Senator Stennett made a motion that S1176 be sent to the fourteenth order. It died for lack of a second.

A roll call vote was requested. Senators Sorensen, Richardson, Darrington, Geddes, Davis,Stegner and Little voted aye. Senator Stennett voted nay.

H358 Relating to the Tobacco Master Settlement Agreement; to revise how funds placed in escrow may be released
Brett DeLange representing Attorney General Wasden, stated that this legislation is designed to eliminate an unintended consequence of language found in Idaho's Tobacco Master Settlement Agreement Act.(the Act) Some tobacco product manufacturers, not parties to the MSA, have begun utilizing present language in Idaho Code Section 39-7803 of the Act, to obtain an early release of the great majority of their escrow deposits. This frustrates the purpose for which the Act was passed. The proposed amendment would cure this unintended consequence by limiting releases from escrow accounts. Senator Davis asked about Sub Part 2 of the bill which he thought indicates that non participating manufacturers can get their money back if 1.) They are sued or 2.)to the extent that the amount they paid is greater than their share or 3.) when it reverts back after 25 years. Mr. DeLange said the statute says if the amount exceeds Idaho's allocable share, you get a release. He said if non participating manufacturers properly structure their marketing operations they can get release and they have a competitive advantage. He said last year Idaho lost $1.6 million to non-participating manufacturers. He said the corpus of the escrow account was meant to remain for 25 years. Senator Stegner asked what is the states share. Mr. DeLange said that under the MSA, each state has an allocable share of the proceeds. The current statute says if your payments exceed that share you can get a release.
Jim Jones, the former Attorney General of Idaho introduced Tony Troy. Mr Troy is the former Attorney General of Virginia and currently is an attorney with Troutman Sanders L.L.P. who are legal counsel to the Council of Independent Tobacco Manufacturers of America (CITMA). He said this national trade association opposes H358 which they say seeks to provide certain tobacco manufacturers, with a competitive advantage in the marketplace. He said the MSA to which Idaho is a party, contained a model statute, identified as Exhibit T, which was adopted verbatim by every settling state. In Idaho, Exhibit T was codified at Section 39-7803 of the Idaho Code and sets forth the escrow obligations for those tobacco manufacturers that have not been sued by the state or entered into settlement with the state. When the MSA was signed, all states knew that the Exhibit T language was sacrosanct and that in order for the state to receive its MSA payments, Exhibit T could not be altered for any reason. More important, every state was told that if, for whatever reason, Exhibit T was not codified verbatim, the state's tobacco settlement money could be jeopardized. They feel H358 seeks to alter that sacrosanct statute. He further stated that inasmuch as H358 would have the affect of protecting the market share of certain large tobacco companies, they feel it should be rejected as poor public policy. It should be rejected for the following reasons:

1. Any amendment to Section 39-7803 of the Idaho Code violates the express terms of the Consent Decree governing the Tobacco Master settlement Agreement.

2. H358 suggests, on its face, that it is unconstitutional.

3. Passage of H358 could have a significant negative fiscal impact on the state. (Hand out on file in State Affairs office)

Senator Davis asked how many states have attempted this legislation. Mr. Troy said twelve to fifteen states. Senator Davis asked to whom the clear and convincing evidence necessary before the consent decree was modified should be directed. Mr. Troy said to the state court.
Brad Hoagland from the Coalition for Health of Idaho, stated that we all know that there are health impacts to this state from tobacco products. They are concerned about the $1.6 million loss from last year. Idaho shouldn't wait but should move forward with H358.
Skip Smyser an attorney with Connelly-Smyser who represents ALTRIA and Philip Morris stated that this legislation is from the Attorney General and they do support it. They feel it will help create a level playing field for all cigarette manufacturers.
Brett DeLange said he would like to respond to Mr. Troy. He said Philip Morris pays more per cigarette than nonparticipating manufacturers. He said there is no plan for reviewing the issue by the MSA participants. He said Idaho lead the nation in the original legislation and we should go forward now. He said their office contacted the members of the MSA and got signed letters that they agree this legislation is not in violation of the consent decree. He said only a member of the MSA can raise an issue about the consent decree. He said H358 is attempting to fix some unintended consequences of Exhibit T.
MOTION: Senator Stegner made a motion to send H358 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen announced that due to late hour, the presentation on state construction projects would be delayed until the next meeting.
ADJOURNMENT There being no further business, the committee adjourned at 6:00 P.M.




DATE: April 2, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett
MEMBERS

EXCUSED:

Senator Calabretta
MINUTES: Senator Richardson made a motion that the committee approve as written the minutes for March 31, 2003. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
PRESENTATION The Governor's Facilities Bonding Proposal 2003
Creating Jobs Now and Improving Idaho's Economy
Chuck Winder, a commercial construction expert, presented a power point presentation of eight proposed construction projects in the state of Idaho. Each of these projects has been previously authorized by the legislature with some level of partial funding. This plan intends to use existing dedicated Permanent Building Fund revenues and bonding for financing.

Th eight projects are located in Coeur d'Alene, (NIC Nursing/Life Science Center), Moscow, (UITeaching and Learning Center), Lewiston, (LCSC Classroom/Activity Center), Nampa, (BSU West Campus Building), Meridian, (State Police Training Center), Twin Falls (CSI Fine Arts Addition), Pocatello (ISU Classroom Building) and Idaho Falls (EITC Nursing Building). He then presented the details of each proposed project and a handout summary sheet. He stated that the total statewide economic impact would be $188,219,279 and it would help to replace 4,200 construction jobs lost over the last year. He said in order to proceed, there are three pieces of legislation. They are HCR 30; a Concurrent Resolution which will provide legislative approval to enter into agreements with the State Building Authority to bond for the eight projects and H396 which authorizes the State Building Authority to bond for Community College projects and H397 which prevents the use of Permanent Building Fund Revenues to pay debt service on new bond issues. He said that the current low interest rates, Idaho's high bond rating and low public debt, make this is a good time to take advantage of a unique, cost-effective opportunity.

Chairman Sorensen thanked Mr. Winder for his informative presentation.
HJM11 House Joint Memorial ; to Congress to sponsor and support appropriations to provide timely access to health care for our valued Veterans
Senator Bailey stated that this memorial seeks to bring attention to Congress that Veterans are in need of adequate health care. Currently, Veterans are on waiting lists across the state and can't get in to see a physician. He believes it is time to address appropriations to provide timely access to health care for our valued Veterans.
Richard Jones, the Administrator for the Idaho Department of Veterans said they have been reviewing the quality of care for Veterans at various outpatient clinics and have determined that they are experiencing a one to two year delay in services. He supports this legislation to urge improved access to care for Veterans. Senator Richardson asked about the care for Veterans provided outside of the Veterans Hospital. Mr. Jones said that in this area , a liaison with other facilities has not been developed.
MOTION: Senator Darrington made a motion that the committee send HJM11 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
H374 Relating to horse racing; to clarify the advance deposit wagering on horse racing conducted by licensees is declared to be lawful
Representative Janet Miller stated that the purpose of this legislation is to declare that advance deposit wagering conducted by licensees is hereby declared to be lawful in the state of Idaho and within the scope of the licensee's license. It will declare that electronic wagering for horse racing in Idaho is legal and will bring additional dollars to Idaho which are now going outside the state. It is estimated that currently $2 to $5 million is being wagered outside the state. The bill further clarifies that the Idaho State Racing Commission will regulate this activity.
Steve Tobiason representing the Idaho Thoroughbred Association said they are a group of horse owners who negotiate with the Tracks for a percentage of the receipts. They agree with simulcasts being approved by the legislature to help keep horse racing alive in Idaho. However, they feel cautious about how positive of an impact it will have on live racing.
Stan Boyd, the lobbyist for Les Bois Track ,stated that they strongly support H374. He said it is good for both the racing facilities in Idaho as well as for the horse men of Idaho. He is requesting it be directed to the Fourteenth order for a technical correction to lines 40 and 41.
Jan Bryant from the Board of the Idaho Thoroughbred Association, said that their members are 70% of the horse men of Idaho. However, they have not been informed about this legislation. Currently, they are owed half a million dollars by Les Bois track which they are trying to collect. They agree that additional funding would be beneficial but would like to see the addition of an auditing process so the law will have some teeth and structure.
Oscar Steinley a member of the Racing Commission stated that they would be regulating this new program and they do support this legislation.
Clayton Russell with the Idaho Quarter Horse Association stated that they support this bill.
Representative Smylie stated that this bill does open up increased gambling in Idaho. He said it allows you to bet without going to a live meet. He also said there are unresolved disputes between the various groups involved with the Les Bois track. He is also concerned that Federal rules may allow reservation gambling as an unintended consequence of this legislation. He said it needs language added for auditing requirements.
MOTION: Senator Little made a motion that the committee send H374 to the Fourteenth order. Senator Stegner seconded the motion.

Senator Richardson made a substitute motion that H374 be held in committee. Senator Davis seconded the motion. The motion failed by a Voice Vote.

The motion to send H374 to the Fourteenth order carried by a Voice Vote. Senator Richardson requested to be recorded as voting no. Senator Little will sponsor this bill in the Senate.

H387 Relating to Bingo proceeds; to provide requirements for the withdrawal of funds
Clinton Miner from the Attorney general's office stated that this legislation will codify minimum checking account requirements for licensed bingo facilities which will enhance the ability to audit such operations.
MOTION: Senator Stegner made a motion that the committee send H387 to the floor of the senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
H385 Relating to confidentiality of records relating to judicial proceedings for sterilization
Representative Margaret Henbest stated that this is a trailer bill to H213 which pertains to sterilization for the mentally handicapped. She said the purpose of this bill is to require that the court compile statistics relating to sterilization in accordance with the law. This will help to develop a better understanding of the effectiveness of the statute.
Patty Tobias stated that she was confident the courts could handle the additional tracking.
Representative Langhorst, a co-sponsor of this bill said this is necessary legislation.
MOTION: Senator Darrington made a motion that the committee send H385 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Darrington will sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the meeting adjourned at 4:10 P.M.




DATE: April 4 , 2003
TIME: 12:00 am (Upon adjournment)
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Darrington
MINUTES: Minutes for April 2, 2003 will be held until the next meeting.
RS13211 Relating to political activities of public school employees; addition of new Section 67-6630, to Idaho Code Chapter 66, Title 67; to specify political activities which are permitted and political activities which are prohibited
Senator Monty Pearce stated that this legislation is a result of allegations over the last few years regarding elections in the public school system. There have been questions about guidelines and this bill will help clarify them. He said that beginning at line 12, the bill states what a school district employee is allowed to do. Line 39 tells what the Board of Trustees can do and then it explains how schools can be used for political activities. He said this wording was taken from Section 67 of the Public Employees Code. He said it also clarifies the use of technology to promote ballot measures and how violations will be handled.

Senator Davis stated that on page 2, line 13, there is an omission and that the phrase"belonging to the public school district" should be inserted after the word asset. He said we need to define assets that belong to them as an employee from those that belong to the district. Senator Pearce said that Title 67 is directed at the hours on the job. Senator Stennett referred to page 2, lines 20-21 and stated that he used government class students on his campaign, which he can do. But this bill indicates that they could not work with the teachers on school district issues. He questions whether that is unconstitutional. Senator Pearce said that if they are in a school facility, using children of the school district is improper. Senator Stennett said that as a non-school district candidate, he can campaign door to door, however, if a school district employee did the same, they would be in violation. He asked who will go to jail? Senator Pearce said the violation is a misdemeanor and no one would go to jail and that schools are not a recruitment facility. Senator Stennett then asked that if you are an employee of the school district then you cannot use the students. Senator Pearce said that was correct. Senator Richardson stated that he uses students but he does not recruit them at the school. He said outside the school is different. He said he has also used school facilities before and he understands that as long as he follows the rules he can still use them. Senator Pearce said there had been complaints that children were being sent home with messages about issues. Senator Stennett stated that on page one subsection A, it enumerates what is allowed by a school employee. He asked if a school employee does something not covered in that enumeration, would it be a violation. Senator Pearce said if it is not covered, it is not a violation. Senator Calabretta described a scenario when Senators visit Civic Classes by invitation and asked if that is a violation. Senator Pearce stated that since he does not see that identified, it would be allowed. Senator Calabretta described another situation where teachers in the Shoshone County High School put together a Republican Forum for statewide candidates for the Republican Party. She asked how that would be affected. Senator Pearce asked if that was during school hours. Senator Calabretta said it was a school assembly during school hours. Senator Pearce said that since it is for a specific party, rather than general information, they would have to make the forum available to all parties. Senator Stennett asked about a school employee appearing on a television show about an issue and asked if that would " compromise the public school integrity" as referred to on page one. Senator Pearce asked if it was during school hours. Senator Stennett asked if an employee participates in a campaign, then how can they be neutral? Senator Pearce stated that line 27 on page one states that an employee can be politically active. Senator Stennett referred to line 37 and the phrase " compromised neutrality of the employee's public school district." Senator Pearce said that it is just necessary that the employee does not represent the school district. Senator Stennett asked what if the employee wanted to send a letter to the editor about an issue that was not neutral. Senator Pearce said those rights are all allowed. Senator Richardson stated that it was clear that a person can speak for themselves, they just can't represent the school district and these are two different situations. Senator Stennett said he thought it is too late in the session to print a new RS, especially when it seeks to take away school district employees rights.

MOTION: Senator Stennett made a motion that the committee return RS13211 to the sponsor. Senator Calabretta seconded the motion.
Senator Richardson made a substitute motion to introduce to print RS13211. Senator Geddes seconded the motion. Senator Davis asked Senator Richardson to add a correction to the bill on page two, line 13, by inserting the phrase "belonging to the public school district" after the word "asset". Senator Richardson agreed to this additional language.
Senator Stennett stated that it is really late in the session and this legislation effects the rights of the people educating our children. He opposes hearing this bill. Chairman Sorensen said that she thinks this bill needs to be heard and that may take a lot of time. She agreed it is late in the session. Senator Richardson said that if we don't act now, they may reciprocate and he thinks we should go forward with this clarification.
A roll call vote was requested. The substituted motion to introduce to print RS13211 with a correction carried. Senators Richardson, Geddes, Davis, Stegner and Little voted aye. Senators Sorensen, Stennett, and Calabretta voted nay.
ADJOURNMENT There being no further business, the committee adjourned at 12:40 P.M.




DATE: April 7, 2003
TIME: 3:00 pm
PLACE: Room 437
MEMBERS PRESENT: Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

None.
MINUTES: Senator Richardson made a motion that the minutes of April 2, 2003 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.

Senator Richardson made a motion that the minutes of April 4, 2003 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.

H386A Relating to Bingo Games and Raffles; to revise licensure requirements for Bingo Games and Raffles
Clinton Miner from the Attorney General's office, stated that this legislation is a clean up bill which stemmed from some confusion by various organizations who have challenged existing language. By simplifying the language it makes the licensing requirement clear and targets the types and sizes of games which were initially intended to hold a license. This change would not increase or decrease the number of organizations who would be required to have a license, it only clarifies their licensing requirement.

Senator Darrington asked if a school wanted to auction an old car for $1,000 would they be excluded from licensing. Mr. Miner said any value over $1,000 requires a license.

MOTION: Senator Richardson made a motion that the committee send H386A to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
Chairman Sorensen said that H388 would be held since the sponsor was not available to present it.
H392 Relating to Bingo; to require additional requirements for statements prepared by charitable or nonprofit organizations conducting Bingo games.
Clinton Miner stated that confusion has arisen concerning rules promulgated by the Idaho Lottery Commission requiring the tracking of bingo sales. This amendment clarifies that bingo operations must track participation by players and the inventory and uses of bingo paper on a per session basis. Senator Little asked what is the annual amount of dollars that is spent on bingo. Mr. Miner said it was estimated to be $10 to $12 million dollars last year in Idaho. Senator Richardson asked how much of that was small organizations such as churches. Mr. Miner stated that they only have to license if their annual gross sales is over $10,000. There are other provisions for smaller operations such as PTA's and churches. Senator Richardson asked about other type games such as those on the radio. Mr. Miner stated that promotional sweepstakes don't fall under the bingo regulations. He said this is good legislation which will help to track bingo operations. Senator Darrington asked if there had been any history of the bingo being involved with organized crime. Mr. Miner stated that at this time, they are more concerned with internal influence on operations than on external influences. Senator Stegner asked if there are taxes on these operations. Mr. Miner said that bingo operations are only allowed for nonprofit and charitable organizations and they are not taxed. He said 15% of receipts go to overhead for employees salary and 20% goes to the charitable organization. He said any winnings in excess of a certain amount are also tracked and reported. He said an example is the Veterans run an operation from Mountain Home Air Base from which they use their portion to help provide prescription medications to Veterans unable to reach the Veteran's locations. Senator Stegner asked if there were any commercial operations. Mr. Miner said there are only non-profits.
MOTION: Senator Calabretta made a motion that the committee send H392 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
Chairman Sorensen presented a gift and letters to our page Brittany Jensen and the committee expressed their appreciation for her good service to the State Affairs Committee. The committee also recognized Carolyn Heinzman-Shaffer for her service as the State Affairs Attache during this session.
ADJOURNMENT There being no further business, the committee adjourned at 3:35 P.M.