2004 State Affairs
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January 16, 2004 – Subcommittee
January 19, 2004
January 21, 2004
January 26, 2004
January 28, 2004
January 30, 2004

February 2, 2004
February 4, 2004
February 9, 2004
February 11, 2004
February 13, 2004
February 16, 2004
February 18, 2004
February 20, 2004
February 23, 2004
February 25, 2004
February 27, 2004

March 1, 2004
March 3, 2004
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March 8, 2004
March 10, 2004
March 12, 2004
March 15, 2004
March 17, 2004

DATE: January 16, 2004
TIME: 10:30am
PLACE: Caucus Room
MEMBERS

PRESENT:

Vice Chairman Richardson, Senator Calabretta and Senator Bilbao
MINUTES: Vice Chairman Richardson introduced Commissioner Dennis
Hansen and Ron Law, Executive Administrator from the Public
Utilities Commission and Dennis R. Stevenson from the Department
of Administration. Vice Chairman Richardson stated that he
considered the Rules Review a very important part of the legislative
process which is not carried through at the national level. He said
that he feels it is the responsibility of the legislature to make sure
that the rules are carried out according to the intent of the law.
IDAPA31

31.11.01

Safety and Accident Reporting Rules for Utilities Regulated by
the Idaho Public Utility Commission (PUC)
Ron Law explained that the purpose of this proposed rule change is
to adopt the International Fuel Gas Code replacing the National
Fuel Gas Code. He stated this change is an effort to promote
uniformity and avoid conflicting criteria. He stated that it is a group of
engineers who make these recommendations and they have
received no negative feedback regarding them. Chairman
Richardson asked
if smaller businesses would be impacted
negatively. Mr. Law stated that generally, they are glad to have
specific guidelines for adherence. Senator Bilbao asked if these
guidelines covered propane. Mr. Law explained that though such
guidelines are applicable, the PUC has no jurisdiction over propane.
Senator Bilbao stated that in his district they had some problems
with illegal installations which resulted from un-licensed contractors.
31.21.01 Customer Relations Rules for Gas, Electric, and Water Public

Utilities regulated by the Idaho PUC.

Ron Law explained that in the past the different utilities had different
processes for termination of services which caused confusion for
some consumers. It was therefore recommended that the notification
system for terminations be standardized. Commissioner Hansen
stated that in the past there were different procedures from one
department to another. Now there is one written notice and one
personal contact attempt required before termination from any
department of the PUC. He said this change was supported by most
of the utilities who agree that it will be a good thing for consistency.
Chairman Richardson asked if Idaho



Power had agreed to this change. Commissioner Hansen stated that
Idaho Power did accept the recommendation but had reservations
about the requirement of personal contact notification. Senator
Calabretta
inquired about national termination guidelines.
Commissioner Hansen stated that currently with a verification from
the doctor of a medical exception, the PUC is prohibited from turn
offs from November through February. Ron Law added that if there
are children under eighteen in the home, they are also protected.
Senator Bilbao stated that he has reviewed these rule changes and
has no objections.

31.7103 Railroad Safety/Sanitation Rules
Chairman Richardson stated that he supported the increased
security of the movement of hazardous materials via railway.



Ron Law stated that after September 11, 2001, the security of
hazardous materials became an increased priority. The Department
of Homeland security and the U.S. Department of Transportation
developed new rules for the security of Rail Transport. These
changes included the requirement that the railway carriers must
develop and implement their own Security Plan. Chairman
Richardson
asked if this change also applied to truck hauling. Mr.
Law stated that it applies to rails and shippers. The new
requirements include a time frame for development and
implementation of a security plan. The PUC does not evaluate the
plan but rather will verify that a plan exists. The plan must include
employee training and security of hazardous material facilities.
Senator Bilbao inquired if each railway develops their own plan and
asked about the ones that are financially defunct. Mr. Law stated that
the Hazardous Materials Department has been inspecting the
various sites and they are working to become a resource to get
these locations to a point of safety. Senator Bilbao asked about what
penalties there are for failure. Mr. Law explained that if they fail to
comply they are referred to the Public Utility Commission which
would further work toward resolution. However, eventually there are
some remedies after a extensive process aimed at compliance.

31.01.01 Rules of Procedure of the PUC
Commissioner Hansen stated that this rule modifies Idaho Bar
Commission Rule 222. This Bar Rule was issued by the Idaho State
Bar and approved by the Idaho Supreme Court. Bar Rule 222
governs the practice of law by out-of-state attorneys who are
applying for limited admission in Idaho Courts. Bar Rule 222
establishes a $200 fee for out of state attorneys and is payable to
the State Bar. In turn the State Bar verifies that they are attorneys in
good standing. Senator Calabretta asked about the section on page
five which addresses the use of electronic mail. Mr. Law stated that
in the past, there was a United States Mail requirement but now in an
effort to encourage electronic filing, it can be done either way.
Senator Calabretta asked how electronic filing is verified. Mr. Law
stated that an electronic acknowledgment of receipt is sent to the
sender.
44-0201-0301 Rules of the Administrative Rules Coordinator
Dennis Stevenson from the Office of Administrative Rules stated
that this rulemaking is necessary to increase the Administrative Code
and Bulletin Subscriber Fees. The increases are necessary to offset
increased costs for printing, binding and distribution of the Code and
Bulletin. The cost of individual bound volumes of the Bulletin is being
increased also, but individual bound volumes of the Code will remain
unchanged. The subscription fee for the Code is increased from
$350 to $450 and the Bulletin is increased from $300 to $400.
Individual copies of the Bulletin would increase from $30 to $40 per
issue. He said that two years ago they started printing the code on
compact discs and the electronic copies are much cheaper to
provide than the hard copies. Mr. Stevenson stated that getting
away from hard copies helps to reduce costs although some libraries
are hesitant to change. However, most users are facing the difficult
challenge of storing hard copies. They are striving to create a broad
base and standardize the language. Senator Calabretta asked how
this was being received by the county clerks. Mr. Stevenson said
they are cooperating and most counties already have the ability to
utilize electronic access.
15.1001.0301 Rules of the Idaho Liquor Dispensary
Senator Richardson stated that this rule change clarifies the right of
Liquor Dispensary personnel to remove underage and intemperate
persons from the store premises. This change responds to the
growing need in retail liquor stores to clarify the right of Dispensary
personnel to remove underage and intemperate persons from the
store premises and allows the exercise of discretion. There was
some concern regarding liability to the state from these decision
which will be reviewed at the full Senate State Affairs Committee
meeting.
11.0402.0301 Rules Governing Horse racing



Jackie Lilengood, the Parimutuel Supervisor for the Idaho Racing
Commission, joined the committee via phone conference and she
explained that this rulemaking is intended to Adopt Standard Time
Trial Rules of the American Quarter Horse Association.
She said
conforming to these guidelines will make Time Trials more accurate
and will make it easier for the stewards to time the fastest horses.
She said new technology and computers allow the time to be shown
in thousandths of a second. Senator Richardson asked if this
change had been publicized and reviewed with those affected. Ms.
Lilengood
said it was discussed at an open meeting of the Racing
Commission and that the trainers and owners agree that this is a
positive change.

11.0402.0301 Rules Governing Simulcasting
Jackie Lilengood explained that this rulemaking is necessary to
provide for advance deposit wagering in Idaho. It allows accounts to
be set up so consumers can phone in to place wagers on events
across the United States. These rules explain the licensing and how
accounts are to be set up. Senator Richardson asked if these
recommendations have been approved by the Racing Commission.
Ms. Lilengood said that they are comparable to the guidelines set up
in three other states and have been approved. Senator Calabretta
asked what the bill number was of the legislation this resulted from.
Ms. Lilengood was not sure but said it is part of Statute 54-25-12.
Ms. Lilengood stated that as she works in conjunction with the State
Paramutuel Racing, she has the opportunity to review others files for
compliance. Senator Richardson asked what response they have
received from the racing community. Ms. Lilengood said that the
information had been well distributed and the response was very
positive. Senator Richardson then asked what effect this change
might have on live horse racing. Ms. Lilengood explained that as
compensation, 10% of the receipts would be returned back to the
Racing Commission. Senator Calabretta stated that due to the
extent of these new changes, she would request that Ms. Lilengood
be in attendance at the next State Affairs meeting when these
changes are reviewed.
34.0202.0301 Rules Governing Complaint Process Under the Help America
Vote Act
Tim Hurst from the Office of the Secretary of State joined the
committee via telephone conference. The committee reviewed page
44 of IDAPA 34 which states; ” Federal law, 42 U.S.C. Section
15512, requires each state to have a complaint process in place as a
precondition for receiving funds under the Help America Vote Act
(HAVA), 42 U.S.C. Section 15481, et seq. The complaint process
permits anyone believing that a violation of HAVA has occurred to
file a written, notarized, and sworn complaint setting forth the
perceived violation. Complaints may be consolidated and a hearing
may be held if requested. A determination should be made within 90
days, and the State will provide a remedy if there is a violation.
Alternative Dispute Resolution procedures will be used if the 90-day
deadline is not met.” This rulemaking is necessary to carry out the
requirements set forth in the ‘Help America Vote Act.



Vice Chairman Richardson stated that this sub-committee would
present their recommendations to the Senate State Affairs
Committee on Monday, January 19, 2004.

The committee adjourned at 11:55 AM.






DATE: January 19, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Bilbao, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Minutes from the State Affairs Committee on Rules Review were
presented signed by Vice Chairman Richardson.
Chairman Sorensen welcomed the committee to the first State Affairs
meeting of the Second Session of the Fifty Seventh Legislature. She
introduced Zach Gonzales from Capitol High School in Boise who will be
our page during the first half of this session. He is in the Intelligence
Division of the Idaho Army National Guard and plans to attend the Coast
Guard Academy when he graduates.
Gubernatorial Appointment of Melville W. Fisher,II to the Idaho Lottery
Commission for a term expiring January 1,2008
Mr. Fisher stated that he has spent a lot of time in public service which
included being Chairman of the Board of Trustees of the United Methodist
Church, Chairman of the Board of Trustees for Saint Alphonsus Regional
Medical Center and Chairman of the Idaho State Bar. He looks forward to
the opportunity to serve again. Senator Calabretta asked Mr. Fisher
what his general philosophy was about the Lottery. Mr. Fisher said that
he thinks it calls for a delicate balance which needs sales to provide
revenue for education yet maintains prudence at the forefront. Senator
Stennett congratulated Mr. Fisher on his great background and then
asked about the lottery advertisement which promotes the benefits to
schools from the lottery. He asked since those benefits are decreasing in
recent years, should the add continue to run. Mr. Fisher agreed that
perhaps that add should be reconsidered and a clearer break down could
be made available to the public. Senator Stennett asked about Mr.
Fisher’s attitude about having on-line lottery access. Mr. Fisher said he is
concerned and that the Lottery Commission will take it’s lead from the
Idaho Legislature. Senator Geddes stated that a per cent of the profits
are divided between schools and the building fund based on corporate
profits. He said large companies control the amount of profit they declare
and asked if there might be a better way to fund and distribute the lottery.
Mr. Fisher stated that the original goal of the lottery was increased
revenue for schools and public buildings. Currently, the various types of
lottery tickets are within the control of the commission. However, some
things are still outside their control. Senator Richardson said he had
received complaints about the lottery advertising and he asked if they
should push so hard. Mr. Fisher said he is still very new to the
commission and he could defer to the director. However, they do end
each advertisement with their “Play responsibly” reminder and he is very
cognizant of the necessity to be prudent. Senator Richardson stated
that he had seen some recent information that suggested that the Idaho
Lottery had lower than average profits and higher administrative costs
than other states. Mr. Fisher said he found that very surprising as the
information about the Idaho Lottery operations he has seen indicated they
were doing very well. Senator Darrington stated that the Idaho Law
actually spells out the allocation of Lottery Funds and his understanding is
that to change that formula would require changing the law
Chairman Sorensen stated that the committee appreciated Mr. Fisher
coming and that the vote of approval would be held at the next State
Affairs Committee meeting.
RS13533C1 Relating to the application of Campaign Expenditures Reporting Law
to certain city elections; Amend Idaho Code Section 50-477
Senator Bilbao presented this bill for Senator Little. He said the
purpose of the bill is to have greater accountability during elections by
requiring reporting of campaign contributions in smaller communities.
This bill will reduce the minimum population requirement from 16,000 to
5,000.
MOTION Senator Davis made a motion that RS13533C1 be introduced to print.
Senator Stennett seconded the motion. The motion was approved by a
Voice Vote.
RULES REVIEW Chairman Sorensen then stated that Vice Chairman Richardson had
been conducting a committee to review the State Affairs Committee Rules
Review for 2004. Senator Calabretta and Senator Bilbao assisted him .
Vice Chairman Richardson stated that he had called a special sub-committee meeting to review the Pending Rules and the Pending Fee
Rules assigned to our committee. He stated that he considered this
review a very important part of state government and he regrets that it
does not occur nationally.
IDAPA 15.10.01 Rules of the Idaho State Liquor Dispensary
Vice Chair Richardson asked Dyke Nally from the Liquor Dispensary to
respond to some questions. He said there was some concern that the
state could be liable for hostile removals from the state stores. Mr. Nally
said their policy is to operate responsibly and they need some clarity of
action for a public facility. They have had problems with under age
people coming in and need some authority to respond. Senator Geddes
asked about the situation where hunting licenses are sold in the liquor
stores and it is necessary for minors to enter. Mr. Nally said that occurs in
the privately owned stores rather than the public. Senator Davis had
several questions about the language in the rulemaking such as “state
store personnel” and “may refuse.” He said no standards were given and
“further actions” is not defined. Mr. Nally said that trying to describe
every type of potential behavior would be too difficult. He said the intent
is to give store managers some authority for judgement in order to protect
the community. Senator Davis stated they should clarify the specifics in
the rules. Mr. Nally said the wording had been written by attorneys and
they could consider further changing it if necessary. Senator Calabretta
had questions about the definition of “grievous behavior.” Senator
Stennett
asked about the number of state owned stores. Mr. Nally said
the state owns 52. Senator Geddes stated that when they talk with their
attorneys about the state owned stores, they should also address the
contract stores as they probably face the same type of problems.
Senator Stegner then stated that the committee should be aware that if
they decide to reject a rule, they cannot modify it but would have to start
all over. Therefore they must consider whether the change is worth
delaying all implementation for a year. Senator Darrington pointed out
that if the committee creates a resolution to reject the rule, that resolution
still must pass both houses before the rule would go away. Senator
Calabretta
said that although the language is not as precise as we might
like, she suggests we allow the rule to go into effect. Senator Bilbao
agreed and said that if necessary that department could offer further
clarification in the future.
Vice Chairman Richardson asked the committee to give these issues
further consideration before the vote is held.
IDAPA 11.04.01 Rules Governing Horse Racing
Senator Bilbao introduced Jackie Libengood from the Idaho Racing
Commission. She stated that this rulemaking is necessary in order to
adopt Standard Time Trial Rules of the American Quarter Horse
Association. Jack Baker , Chairman of the racing Commission, explained
that new digital technology makes it now possible to time horses to a
thousandth of a second. He said these guidelines are being adopted by
most other jurisdictions and will improve accuracy.
IDAPA 11.04.02 Rules Governing Simulcasting
Senator Bilbao stated that these rules on parimutuel betting refer to off
track betting by Idahoans in another state and to off track betting in Idaho.
He then asked Mr Baker to review the changes. He explained that
wagering and sports betting on the internet is growing rapidly and these
changes will allow a source fee from that activity to be directed back to
Idaho. He then deferred to Ms. Libengood. She stated that since June
2003 such wagering has amounted to $408,000 and 10% of that has
been directed back to the Idaho Racing Commission. Senator Stegner
questioned whether this establishes a fee and if so that it should be
processed through the Pending Fee Rule process. Ms. Libengood said
they referred to the statute for the development of these rules. Senator
Darrington
stated that the fee is to out of state participants, and therefore
not to Idahoans. Senator Stegner asked that the Department of
Administration should be contacted for a clarification of this procedure.
IDAPA 31.21.01 Customer Relations Rules for Gas, Electric, and Water Public
Utilities regulated by the PUC
Senator Calabretta explained that these rules are intended to
standardize customer relations procedures in all PUC Facilities. She
asked Ron Law from the PUC to summarize these changes. Mr. Law
explained that this rule started in a committee and was then put out for
comment. It refers to customer deposits, billings and termination of
services. Senator Calabretta asked if public hearings were held. Mr.
Law said they were not. Senator Calabretta asked if the current practice
for a medical exception is to require a letter from a doctor. Mr. Law
deferred to Don Howell, Deputy Attorney General. Mr Howell stated that
currently a doctors signature is not required but rather that of any health
officer.
Senator Callabretta asked about a move to a new location. Mr. Howell
said that it is considered a transfer not a termination. Senator Stennett
referred to page 33 of the rules Section C where it appears a transfer is
considered as a new applicant. Mr. Howell stated that the handouts the
committee has only cover the amended rules and does not include the full
rules where this is clarified. Senator Stennett said it still appears that
every move now results in being considered a new applicant. Mr. Howell
said he would check the rest of the rules. Senator Calabretta asked
Vice Chairman Richardson to seek clarification of this issue.
IDAPA34.02.02 Rules Governing Complaint Process Under the Help America Vote
Act
Vice Chairman Richardson introduced Chuck Goodenough from the
Secretary of States office. He explained that no hearings were held with
regard to development of these rules. However, Legislative Services did
make recommendations. After the 2000 National Elections, the Help
America Vote Legislation was passed. Now it is necessary to have a
complaint process in place in order to be eligible for receiving the federal
grants. These new rules follow the process required by that new federal
law.
Vice Chairman Richardson recommended some further investigation
and study before the committee makes the final decision on the Rules
Reviews.
Chairman Sorensen thanked the Rules Review Committee for all their
work. She said it is important that we make sure that the rulemaking is
correct and that we take the time to ask all questions. She said the
committee will continue consideration at the next meeting.
ADJOURNMENT There being no further business, the committee adjourned at 4:25 P.M.






DATE: January 21, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Bilbao, Stennett
MEMBERS

EXCUSED:

Senator Calabretta
MINUTES: Senator Richardson made a motion that the minutes for January 19, 2004
be approved as written. Senator Darrington seconded the motion. The
motion carried by a Voice Vote.
Gubernatorial appointment of Melville W. Fisher, II to the Idaho
Lottery Commission
to serve a term ending January 1,2008






MOTION
Chairman Sorensen called for the committee vote on Mr. Fisher’s
gubernatorial appointment.

Senator Darrington made a motion that the committee recommend the
approval of Melville W. Fisher, II to the full Senate. Senator Stegner
seconded the motion. The motion carried by a Voice Vote. Chairman
Sorensen
will sponsor Mr. Fisher in the Senate.

Chairman Sorensen then asked Vice Chairman Richardson to conduct
the meeting while she presented a resolution.

RS 13735 Senate Concurrent Resolution; Stating findings of the Legislature and
recognizing “GO RED FOR WOMEN DAY” during February
Chairman Sorensen stated that the intent of this legislation is to create
increased awareness of the dangers of cardiovascular disease and stroke
for women and to empower them to prevent and manage their personal risk
factors. Chairman Sorensen said that her father passed away when she
was one and numerous other family members had heart problems, but she
was assured that because she was female she would not be susceptible.
Then when she reached her twenties, she started experiencing symptoms
of heart disease. Physicians couldn’t believe a woman could have such a
heart condition. By the time her condition was identified, she had significant
advanced disease which resulted in the requirement for several surgeries.
Chairman Sorensen therefore appreciates how important it is that women
recognize that they can have an effect on their health and can take steps to
reverse and prevent heart disease through good health. Senator Stegner
asked what the significance of the “Go Red” slogan is. Chairman
Sorensen
said that red symbolizes the heart and February 6, 2004 is the
first date scheduled for this event. Senator Stegner then asked if they are
encouraged to wear red on that date. Chairman Sorensen said that is
correct.

Mary MacConnell from the American Heart Association explained that
more women than men die each year from heart disease. She encouraged
all people to be aware of the risk factors which include tobacco,
cholesterol, blood pressure, diabetes and inactivity. She said that “Go Red
for Women” is a national celebration which she hopes will be supported by
all. Senator Geddes had a question about the handout Ms. MacConnell
presented with regard to the higher death percentages in certain counties.
Ms. MacConnell stated that possibly the lower populations in certain
counties can skew the numbers.

MOTION Senator Darrington made a motion that RS13735 be introduced to print
and forwarded to the Senate. Senator Sorensen seconded the motion.
The motion carried by a Voice Vote.
RS 13716C1 Relating to limitations on smoking in public places, Amending Idaho
Code, section 39-5501, to revise legislative intent
Senator Brent Hill explained that this legislation amends the “Idaho Clean
Indoor Air Law” (Chapter 55, Title 39, Idaho Code) of 1986. He stated that
science continues to find lethal effects of tobacco smoke. This bill will
amend legislation regulating smoking in public places, publicly-owned
buildings or offices, and at public meetings. It sets standards to protect the
public health, comfort and environment, the health of employees who work
in public places, and the rights of citizens to breathe clean air. He said it
has been reviewed by the Office of the Attorney General and they advised
them to include the section on intent. He said the bill does not cover
manufacturing plants or mills. The focus is on places where the public is
present. Senator Hill said he is prepared to provide a complete
presentation to the committee about the effects of this bill. He is now
requesting RS13716C1 be introduced to print.
Senator Bilbao stated that in his district they imposed a smoke free zone
around their high school but it has proven difficult to enforce. Senator Hill
said that he believes the majority of people want to accommodate the law
and he is not as concerned about violators as providing guidelines for the
majority. Senator Richardson asked how this bill compared to the law in
California. Senator Hill said their law completely prohibits smoking in public
and private workplaces so their law goes much further. Senator Stennett
asked about the sometimes clouded definition of a bar versus a restaurant.
Senator Hill said that both “bar” and “restaurant ” are defined. Senator
Stennett
then asked about “taverns” and if there was leeway for smoking
in them. Senator Hill stated that the director of the Department of Health
and Welfare shall design reasonable rules and is allowed to waive them
when reasonable. Senator Stennett then asked if the intent of this
legislation is to prohibit smoking in any establishment that serves food.
Senator Hill said that if they serve meals they are considered a restaurant.
Senator Darrington asked about the twenty foot rule and if that
requirement had to do with ventilation systems. Senator Hill said he was
not sure about that rule, but what precipitated this bill was people who are
trying to enter a facility such as a hospital or an airport should not have to
pass through a wall of smoke. Senator Sorensen asked about smoking in
a bar that is attached to a restaurant. Senator Hill said it may be allowed if
the bar is a separate room with wall closure to the ceiling and a door.
Senator Bilbao referred to his previous employer who made a ruling that
there was no smoking on the property and that after a few years they
became a smoke free company without needing legislation. Senator Hill
said that was a positive example but he has been waiting for change for
twenty years. He said people who are ill and suffering are in the minority
and the market does not necessarily adjust itself for the minority. He said if
we continue to wait for businesses to decide, it may never happen. He said
53,000 Americans die every year from second hand smoke and 300,000
children get respiratory diseases. He said the time for change is now.
MOTION Senator Davis made a motion that RS13716C1 be introduced to print.
Senator Richardson seconded the motion. The motion carried by a Voice
Vote
.
Rules Review Chairman Sorensen then asked Vice Chairman Richardson to continue
his review of the Rules. Vice Chairman Richardson said that after the
discussion at the last State Affairs meeting he felt there was some
confusion about the Rules Review process so he had invited Carl Bianchi,
the Director of Legislative Services, to provide some assistance. Mr.
Bianchi
provided a handout to the committee members which responded
to common questions he receives. He referred to item number three which
clarifies that the Legislature can amend a rule, however, legislative
leadership has decided, as a matter of policy, not to amend or modify rules
by concurrent resolution in order to avoid adverse ramifications from law
suits.
Vice Chairman Richardson then concluded that his committee has met
with the Idaho State Police regarding IDAPA rule 11, the Idaho Liquor
Dispensary regarding IDAPA 15, the Secretary of State regarding IDAPA
34 and the Office of the Administrative Rules Coordinator regarding IDAPA
44. His sub-committee is recommending to the full State Affairs Committee
that they approve these Pending Rules and Pending Fee Rules. He stated
that the rulemaking for the PUC will be further discussed at the next
meeting. Senator Stegner had a question about the out of state fee on
sports betting. Dennis Stevenson, from the Office of Administration,
agreed to help Senator Stegner get a clarification on that matter.
MOTION Senator Darrington made a motion to approve the Rules Review
recommendations from the subcommittee. Senator Bilbao seconded the
motion. The motion carried by a Voice Vote.
ADJOURNMENT There being no further business, the meeting was adjourned at 4:30 PM.






DATE: January 26, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Stegner, Bilbao, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Davis and Senator Geddes
Chairman Sorensen called the meeting to order at 3:06 PM.
MINUTES: Senator Bilbao made a motion that the minutes for January 21, 2004 be
approved as written. Senator Stegner seconded the motion. The motion
carried by a Voice Vote.
RS13366 Senate Resolution establishing rates of compensation for employees of the
Senate
Senator Stegner presented this legislation for Senator Davis. Senator
Stegner stated that this is the annual Senate Resolution which establishes
rates of compensation for the staff. He said that it is basically the same as
last year with no automatic increases except for those based on longevity.
Senator Stegner said that this bill was discussed thoroughly before being
presented.
MOTION: Senator Calabretta made a motion that RS13366 be introduced to print and
forwarded to the second reading in the Senate. Senator Bilbao seconded
the motion. The motion carried by a Voice Vote.
RS 13566 Relating to Capitol Endowment Funds; Amending Section 67-1610, Idaho
Code, to provide for the retention of earnings of the Capitol Permanent
Endowment Fund, to provide for the deposit of proceeds of timber sales,
capitol buildings endowment land lease revenues, etc.
Carl Bianchi, the Director of Legislative Services, presented this bill. He
stated that he is an ex-officio member of the Capitol Restoration Committee
and he chairs their Finance Committee. He said that the Legislative Council
has reviewed this legislation. He stated that even though the restoration is on
hold, the ongoing maintenance of the Capitol is very active. He said that
approximately $2 million in repairs is scheduled for 2004 which includes
considerable work on the dome and the shell of the capitol. He presented a
flow chart to the committee members which described the changes he is
proposing. The specific change is described on lines 37 through 43 of page
one. He stated that by redirecting funds to the Permanent Endowment Fund,
the amount that is available for repairs would actually increase due to interest
earnings. He said this change is supported by the Department of
Administration and the State Treasurer. Senator Darrington stated that he
is a member of the Public Building Fund Advisory Council and he agrees that
the upcoming repairs to the Capitol Dome are critical.
MOTION: Senator Darrington made a motion to introduce RS13566 to print. Senator
Stegner
seconded the motion. The motion carried by a Voice Vote.
S 1214 Relating to the application of campaign expenditures reporting law to
certain city elections; Amending Idaho Code 50-477, to lower the population
threshold for application
Senator Bilbao stated that this bill provides for the application of the
Campaign Expenditures Reporting Law to certain city elections. He said that
as smaller cities grow, more contributions and expenditures are occurring in
local campaigns. Some people have made contributions in order to influence
planning and zoning decisions. He quoted Thomas Jefferson who said, ”
When a man assumes public trust he should consider himself as public
property and open for public inspection.”
Senator Darrington said he could recall the reasoning behind the original
16,000 threshold which was based on the natural breaking point and he
asked why it should be reduced to 5,000. Senator Bilbao said that even with
the 5,000 minimum, growth can expand rapidly. Roger Sherman, the
Program Director for United Vision for Idaho, said they considered this a
positive evolution of the bill. He said small cities have important issues and
citizens are entitled to know the source of funding. He said they feel
disclosure is the minimum standard and they support this legislation.
Senator Calabretta stated that she had received an e-mail from Helen
Newton, the City Clerk from Sandpoint, Idaho which expressed fear that the
new responsibility would deter people from running for local seats. Roger
Sherman
responded that he agreed there are many reasons not to run, but if
they want to be a public servant they must disclose their funding sources.
MOTION: Senator Stennett made a motion that S1214 be sent to the floor of the
senate with a do pass recommendation. Senator Bilbao seconded the
motion.
Senator Stegner said he didn’t know if the 5,000 person threshold would put
too much work on clerks of towns too small to handle the extra burden. But
he said that by the time the Senate votes on the measure, he figured word
will have gotten around. He said “I’m not real sure about this 5,000 number
and I expect we’ll hear real quickly whether this has state support or not.”
Senator Richardson stated that he didn’t understand an objection to the
5,000 limit as size should not even be a factor. He said ” If they’ve got
something to hide, they shouldn’t be running.”
VOTE: Chairman Sorensen then called for a Voice Vote on the motion to send
S1214 to the Senate with a do pass recommendation. The motion carried by
a Voice Vote.
Rules Review

IDAPA 31

Safety and Accident Reporting Rules for Utilities

Customer Relations Rules for Gas, Electric and Water Public Utilities
regulated by the PUC

Chairman Sorensen asked Vice Chairman Richardson to preside over the
final Rules Review . Vice Chairman Richardson stated that he and Senator
Calabretta and Senator Bilbao had met earlier in the day with representatives
from the PUC and the utilities and with the members of ICAN (Idaho
Community Action Network). He said that after some discussion they all
agreed to approve the consolidation of the Customer Relations Rules.
Senator Calabretta stated that she still holds some concerns with regards to
hardship exceptions and she will remain watchful. She also has concern
about the lack of citizen groups participation but she has been assured by the
PUC that they will add these groups to their mailing list for notification of rule
negotiations and the review process citing that AARP(Association of
American Retired Persons) and ICAN (Idaho Community Action Network), at
a minimum, were active in the state for at least a decade.
Nicole LeFavour, representing the Idaho Community Action Network, said
that they want to make sure that the public is in the loop during rulemaking.
She said it is difficult for some consumers to interpret the complex language.
She hopes that the State Affairs Committee will hold the PUC to the highest
standards. She stated that the first section of this rule change reduces the
definition of a consumer from 90 days to 10 days. This limited “open” window
will have a powerful impact on lower income consumers. Karen Williams
spoke on behalf of herself and her sister who is ill. Together they live on
$587 per month. Her sister is on a breathing machine and they would be
greatly impacted if their electricity was turned off. They also have to balance
their expenses with her sister’s need for medications. Paying their power bill
can be very challenging.
Ron Law speaking for the Public Utility Commission, said that they
appreciate the input they have received and to them the more input they
receive on the rule changes, the better. They strive to be sensitive and
concerned about consumers. At this time, the PUC does not feel these
changes will adversely impact consumers. He said the Idaho Community
Action Network is now on their mailing list so that they can be actively
involved in the future.
Vice Chairman Richardson then stated that at this time, his committee has
determined that the PUC will be open to the public in hearings and that these
rule makings for 2004 will not have adverse affect on low income consumers.
Therefore, they recommend that the State Affairs Committee as a whole
approve IDAPA 31.
MOTION: Senator Stegner made a motion that the committee approve the IDAPA 31
rule changes. Senator Bilbao seconded the motion. The motion carried by
a Voice Vote.
ADJOURNMENT There being no further business, the committee adjourned at 3:35 PM.






DATE: January 28, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Bilbao, Stennett, Calabretta
MEMBERS

EXCUSED:

None
MINUTES: The minutes for January 26, 2004, will be held until the next meeting.
RS13737 Relating to licenses to retail liquor; Amending Section 23-903, Idaho
Code, to provide for the issuance of a license, subject to approval of the
mayor and city council
Chairman Sorensen asked Vice Chairman Richardson to conduct the
meeting while she presented this bill. She stated that the purpose of
RS13737 is to encourage tourism and economic development in Idaho’s
smaller communities by allowing the Mayor and City Council of cities with
a population of 5,000 or less to approve the issuing of a non transferable
liquor license in exchange for a fifteen million dollar or greater taxable
investment in newly constructed lodging and hospitality facilities. Senator
Davis stated that the bill should be written so it could apply to any small
city and not one in particular. Senator Calabretta pointed out that the
Fiscal Impact statement would need to be changed as it is
unconstitutional to refer to a specific location. Chairman Sorensen said
those corrections would be made. Vice Chairman Richardson then
asked for the will of the committee .
MOTION Senator Calabretta made a motion that RS13737 be introduced to print.
Senator Stegner seconded the motion. The motion carried by a Voice
Vote. Vice Chairman Richardson then returned the chair to Chairman
Sorensen.
RS13679C1 Relating to limitations on contributions to candidates; to specify the
limit on contributions from a central committee to a candidate
Senator McKenzie stated that this bill was brought to his attention by
county workers. He said the intent is to bring contribution limits for county
central committees in line with the contribution limits for state central
committees. He said currently, in Canyon County, the central committee
runs a newspaper ad and voters guide in the newspaper and allocates the
cost to the candidates which uses up their contribution limit. This change
will allow the county central committees to contribute more money to
candidates. Senator Calabretta asked if the existing law would
aggregate contributions and include the cost of the newspaper ad.
Senator McKenzie said the aggregate would include all in kind
contributions as well as cash. Senator Darrington asked how this will fit
into the McCain Campaign Finance Reform Act. Senator McKenzie
stated that now at fund raising dinners they will have to clarify that they
are raising funds for statewide and local candidates rather than federal
candidates. Senator Stegner said he is glad to see that this legislation
will increase funds for candidates rather than decrease them.
MOTION Senator Stegner made a motion that the committee introduce for print
RS13679C1. Senator Richardson seconded the motion. The motion
carried by a Voice Vote.
ADJOURNMENT There being no further business the committee adjourned at 3:20 PM.






DATE: January 30, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Bilbao, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Geddes, Stegner and Davis
MINUTES: Senator Calabretta made a motion that the minutes for January 26, 2004
be approved as written. Senator Bilbao seconded the motion. The
motion carried by a Voice Vote.
Senator Richardson made a motion that the minutes for January
28,2004 be approved with one correction. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote.
RS13591C1 Relating to local liquor stores and distributing stations; Amends
Sect. 23-307, Idaho Code
to provide an exception to the prohibition on
sales delivery of any alcoholic liquor in, on, or from the premises of any
state liquor store or distributing station on Sundays
Suzanne Budge Schaefer stated that this proposed legislation would
allow, through local government option, state liquor and contract stores to
sell distilled spirits on Sundays. This legislation provides for local boards
of county commissioners or the county voters to approve the sale of
distilled spirits in their county on Sunday. She stated that Idaho law
currently provides for Sunday sales, through local option, of alcoholic
products such as beer, table wine, dessert wine, and some packaged
alcohol cocktails. She said that Sunday is now the second biggest
shopping day of the week. Contract stores would benefit from increased
commissions, and the additional foot-traffic. She said Sunday sales
would lead to increased revenues for the State Treasury, the primary
beneficiaries being the Drug and Family Court Fund and local cities and
counties. Today 27 states permit Sunday sales of distilled spirits. She
stated that conservative calculations indicate this legislation would
generate, at minimum, $750,000 to the State of Idaho. Senator Stennett
asked if this change would compel the state stores to be open. Mrs.
Schaefer said it would not. Senator Calabretta asked if the vote on this
would require a two thirds majority. Mrs. Schaefer said only a simple
majority was required. Senator Calabretta asked if the approval required
either the commissioners approval or that of the voters. Mrs. Schaefer
said either one or the other is required but not both.
MOTION Senator Stennett made a motion that RS13591C1 be introduced to print.
Senator Bilbao seconded the motion. The motion carried by a Voice
Vote. Senator Richardson and Senator Darrington were recorded as
voting no.
RS13696 Relating to election of School Board Trustees; Amend Sect. 33-502B,
Idaho Code, to increase the time before an election when an election may
be canceled due to the filing of a single candidate.
Dr. Cliff Green from the School Boards Association stated that this
proposal amends current law allowing a school district board of trustees
or the school district clerk to declare a candidate elected when there is
not an opposing candidate nor a declaration of a write-in candidate
thirteen days prior to the election. This will eliminate the current eleven
day waiting period. Senator Calabretta asked why we would want this
change. Dr. Green said this is a clean up bill which will promote
conformance. Senator Bilbao stated that currently it is difficult to get
school board candidates and it takes a while to entice them so why would
we want to shorten the opportunity. Dr. Green said that currently, the last
date for a write in is 14 days prior to the election. After that time is dead
space. So this change has no negative effect on write in candidates.
Senator Darrington stated that it appears that this proposal is consistent
with the procedures of other tax districts.
MOTION Senator Darrington made a motion that RS13696 be introduced to print.
Senator Stennett seconded the motion. The motion carried by a Voice
Vote.
Chairman Sorensen announced that Vice Chairman Richardson will
being chairing the meetings next week during her absence and Dean C.
Sorensen would be filling in for her.
ADJOURNMENT There being no further business, the meeting adjourned at 3:18 PM.






DATE: February 2, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Vice Chairman Richardson, Senators Darrington, Dean C. Sorensen,
Geddes, Davis, Stegner, Little, and Stennett
MEMBERS

EXCUSED:

Senator Calabretta
MINUTES: Senator Stennett made a motion that the minutes for January 30, 2004
be approved as written. Senator Darrington seconded the motion.
The motion carried by a Voice Vote.
Acting Chairman Richardson welcomed the return of Senator Little
to the State Affairs Committee and introduced Dean C. Sorensen who
will be filling in for Senator Sheila Sorensen during her absence.
Gubernatorial Re-appointment of Vernon Baker of St. Maries, Idaho
to the Idaho Commission on Human Rights for a term expiring July 1,
2006
Acting Chairman Richardson stated that Leslie Goddard, the
Director of the Idaho Commission on Human Rights, would serve as
proxy for Mr. Baker as he is unable to travel due to the inclement
weather.
Ms. Goddard stated that Mr. Baker has served one term on the
commission and has been very conscientious about the meetings even
though he frequently participates via phone conferencing. He is retired
from the military and is a Congressional Medal of Honor recipient. He
did appear before this committee in person for his previous
appointment. Senator Stegner said he regretted not being able to
meet Mr. Baker in person as he was not present at his last appearance.
Acting Chairman Richardson thanked Ms. Goddard for appearing for
Mr. Baker and said that the committee will vote on this re-appointment
at the next meeting.
Acting Chairman Richardson then welcomed General Kane before
the committee to introduce the presenter of several military bills.
General Kane stated that the committee can be very proud of the
Guardsmen from Idaho that are serving in Iraq as they are doing a great
job. He said there is a firefighting detachment who have served at
several of the Black Hawk Crash incidents. Acting Chairman
Richardson
asked General Kane to communicate our great
appreciation to them for their service. General Kane then introduced
Colonel Jim Bevis, Judge Advocate General, to explain this legislation
which is important to the well being of the National Guardsmen.
RS13810 Relating to the Idaho Hazardous Substance Response Act; to further
define terms and provide implementation through the Bureau of
Homeland Security
Colonel Bevis stated that this proposal establishes the Bureau of
Homeland Security in the Military Division of the Office of the Governor.
Under this proposal the Bureau of Homeland Security supercedes and
combines the functions of the Bureau of Disaster Services and the
Bureau of Hazardous Materials. This will streamline these agencies
and cover planning for acts of terrorism. Senator Darrington said that
this bill would clean up the Idaho Code language and then effect the
merger of these agencies.
MOTION Senator Darrington made a motion that RS13810 be introduced to
print. Senator Stennett seconded the motion. The motion carried by a
Voice Vote.
RS13821 Relating to Title 46, Militia and Military Affairs; to extend protections
to Idaho National Guard members ordered to Federal active service.
Colonel Bevis stated that this proposal amends Section 46-409 of
Idaho Code by extending the protections of the Idaho Militia Civil Relief
Act to National Guard members who are ordered to federal active
service under Title 10, United States Code, for duty other than for
training lasting 30 days or more. He said it provides litigation, including
domestic relations. Senator Davis asked if the Federal Soldiers and
Sailors Relief Act applied to both Title 32 and Title 10. Colonel Bevis
said they do, but this proposal will fine tune the Idaho version forb these
two titles. Senator Davis said he recalled the legislation from last year
and he questioned expanding the Soldiers and Sailors Relief Act to
apply to Title 10. Colonel Bevis stated that it is necessary to cover
these two specific areas.
MOTION Senator Stegner made a motion to introduce to print RS13821.
Senator Geddes seconded the motion. The motion carried by a Voice
Vote.
RS13820 Relating to Title 33, Education; Chapter 37; Miscellaneous provisions
relating to state institutions of learning
Colonel Bevis stated that this proposal amends Section 33-3719, Idaho
Code, by extending the education protections of the Militia Civil Relief
Act to National Guard members who are ordered to federal active
service under Title 10, United States Code, for duty other than training
lasting 30 days or more.
MOTION Senator Little made a motion to introduce to print RS13820. Senator
Geddes seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT There being no further business, the meeting was adjourned at 3:15
PM.






DATE: February 4, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Acting Chairman Richardson, Senators Darrington, Geddes,
Stegner, Little, Stennett, Calabretta
and Dean C Sorensen
MEMBERS

EXCUSED:

Senator Davis
MINUTES: Senator Geddes made a motion that the minutes for February 2,
2004 be approved as written. Senator Stegner seconded the
motion. The motion carried by a Voice Vote.
Gubernatorial Re-appointment of Vernon Baker of St. Maries,
Idaho to the Commission on Human Rights
for a term expiring
July 1, 2006
MOTION Senator Calabretta made a motion that the committee approve the
re-appointment of Vernon Baker. Senator Stegner seconded the
motion. The motion carried by a Voice Vote. Senator Calabretta
will sponsor Mr. Baker in the senate.
RS13918 Relating to limitations on smoking in public places; Amending
Section 39-5501, Idaho Code
Acting Chairman Richardson stated that this bill is a correction to
S1220 which is scheduled for hearing before the State Affairs
Committee on Monday, February 9, 2004. This replacement bill is at
the request of Senator Hill, the sponsor, in order to provide a
correction.
Senator Hill stated that the change in this corrective legislation is on
page one, line 34 and is intended to broaden the definition of “bar”.
It states that “bar” means any indoor area open to the public
operated primarily for the sale and service of alcoholic beverages for
on-premises consumption and where: (a) the service of food is
incidental to the consumption of such beverages, or (b) no person
under the age of twenty-one years is permitted except as permitted
in Section 23-943, Idaho Code. He said if an area is restricted to
adults only, they can elect to be exempt from the smoke free
requirements. Senator Stennett asked if the 21 years of age
exception is applicable twenty four hours a day or can it be a specific
time period. Senator Hill said his understanding is that a bar and
restaurant can be defined differently at different times of the day.
MOTION Senator Stegner made a motion that RS13918 be introduced to
print. Senator Geddes seconded the motion. The motion carried by
a Voice Vote.
RS13827 Relating to personnel system and non-classified state officers
and employees; Amend Section 59-1607, Idaho Code, to clarify state
employment policy on hours worked and overtime compensation for
classified and non-classified officers and employees designated as
executive
Senator Ingram stated that this legislation was brought to them by
the State Controllers Office as they have a need to solve some
issues that have come up during the separation of employment
process. In the past they have not tracked the time for classified
versus non-classified which has resulted in some problems. This bill
will cap compensatory time hours at a total of 240 and will help the
state more closely mirror the federal statutes.
MOTION Senator Stegner made a motion that the committee introduce to
print RS13827. Senator Stennett seconded the motion. The
motion carried by a Voice Vote.
RS13839 Joint Resolution proposing an Amendment to Section 20,
Article III of the
Constitution, relating to gambling, to provide for
games of chance to be operated pursuant to law within the
boundaries of a historic mining district provided that the county
commissioners of the mining district and two-thirds of the voters of
the county or counties of the district allow such games to be played
Senator Calabretta gave a brief history of the town of Wallace,
Idaho and their continued economical struggle since the dramatic
loss of revenue which occurred with the loss of mining. She said
they have not sat back but have worked hard toward a better future.
This included the development of the gondola and the promotion of
tourism to that area. They now seek to add gaming to their
recreational attractions in order to bring increased income to
Shoshone County. The Tribal Casinos have demonstrated the
economical potential of gaming. They would like an opportunity to
improve their economy. The bill refers to their designation as an
“Historic Mining District.” This proposal would be an effort to utilize
existing local buildings and would not result in any big entrance of
outsiders. Acting Chairman Richardson referred the committee to
a letter he had received from the Mayor of Wallace, Idaho, Ronald
G. Garitone
supporting this bill. In it he sited a similar scenario
which has developed in Deadwood, South Dakota. Senator
Geddes
stated that Mayor Garitone had proposed a five year
probationary period even though it will require a constitutional
amendment to be initiated. Senator Geddes said he has not had
any experience with temporary constitutional amendments. Senator
Calabretta
said that there would have to be in acting legislation to
implement a permanent process. She said they felt that having a
trial period would discourage outside money. Senator Geddes
asked about the wording on page two, paragraph two which allows
for certain forms of gambling. Senator Calabretta said that it is the
same level of gaming which is currently occurring in tribal gaming.
Senator Geddes asked to what the phrase “games of chance”
refers. Senator Calabretta said legislative services used existing
language. Senator Geddes asked if Section D was contradictory to
page one paragraph two with regards to the types of games allowed.
Senator Calabretta said the intent is not additional types of
gambling but rather gaming at this location.
MOTION Senator Calabretta made a motion that RS13839 be introduced to
print. Senator Stennett stated that although he had reservations, he
supported Senator Calabretta having an opportunity to present this
bill and he seconded the motion. The motion failed by a Roll
Call Vote
. Senators Richardson, Darrington, Geddes, Little and
Dean Sorensen voted nay. Senators Stegner, Stennett and
Calabretta voted aye. Senator Davis was absent.
RS13698 Joint resolution proposing an amendment to Section 20, Article III,
of the constitution of the state of Idaho; relating to gambling, to
provide for games of chance to be operated within the boundaries of
any county provided that the county commissioners of the county
and two-thirds of the voters of the county or counties of the district
allow such games to be played
Senator Calabretta stated that this bill is farther ranging than the
previous bill, but is necessary as people in four different counties
would like to have the economic opportunity to be on a level playing
field with tribal gaming.
Senator Little asked who would be the regulatory body for this
gaming. Senator Calabretta said that follow up legislation would
determine the structure and operations. Senator Calabretta said
she understands the sensitive nature of this issue but there is a lot of
frustration in her district. They have used caution to control outside
influences.
MOTION Senator Calabretta made a motion to introduce to print RS13698.
Senator Stegner seconded the motion. The motion failed by a
Voice Vote.
S1238 Relating to Capitol Endowment Funds; Amending Section 67-610,
Idaho Code, to provide for the retention of earnings of the Capitol
Permanent Endowment Fund, to provide for the deposit of proceeds
Carl Bianchi, Director of Legislative Services, stated that he is an
ex-officio member of the Capitol Restoration Committee. He stated
the secondary role of this committee is the maintenance of the
capitol building. He said last year over two million dollars was spent
to protect the shell of the building and repair the upper dome and
parapet. He said this involves coordination between the State
Treasurers office, the Endowment Fund Investment Board and the
Department of Administration. He provided a hand out for the
committee which demonstrated how the money currently being used
is from the Capitol Endowment Income Fund which only involves
dedicated funds. None of these funds come from the General Fund.
Now they are facing the challenge of how to do more with less and
have determined that there is a way to generate increased revenue.
They are proposing that the Timber Sales receipts be directed to the
Capitol Endowment Permanent Fund where they can be invested for
a better rate of return. Mr. Bianchi reviewed a handout which
demonstrated the possible increased annual income as well as
endowment core balance growth which may result from a change in
investment strategies. He supports this legislation as it will provide
predictable payments governed by the Endowment Funds
Investment Board and because it could provide up to a sixfold
increase in the fund balance.
MOTION Senator Little made a motion that the committee send S1238 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.
S1253 Relating to limitations on contributions to candidates;
Amending Section 67-6610A, Idaho Code, to specify the
limit on
contributions from a county central committee to a candidate.
Senator McKenzie stated that this bill raises the limit of the county
central committee from $1,000 to $2,000 for legislative candidates.
He responded to a question about aggregate limitations which he
said applies to each primary and each election. He said the county
central committees do not contribute to federal candidates. He said
this is a good change as it strengthens the “grass roots” efforts of the
parties. He said if local people work to raise funds, they should be
allowed to spend them on the candidates they support. Senator
McKenzie
provided a handout of a letter from John Sandy,
Chairman of the Idaho Republican Party, stating they support this
legislation. Senator McKenzie stated that regardless of whether it is
the majority or minority this change will strengthen local parties.
Senator Calabretta asked if the County Central Committees have to
complete financial disclosure forms. Senator McKenzie said that
they do. Senator Calabretta asked if there is a possible scenario
where a contribution could be made to a candidate using a central
committee as a straw man. Senator McKenzie said he thought that
would be a violation. Senator Stennett asked if there is a
prohibition of federal candidates from contributing to county central
committees. Senator McKenzie said he did not know of such a
prohibition. Senator Stennett said then the county committee could
get twice as much money for the local committee. Senator
Darrington
stated that McKain-Feingold Law requires that if parties
run newspaper ads, they must comply with Federal Election Laws
MOTION Senator Stegner made a motion that S1253 be sent to the floor of
the Senate with a do pass recommendation. Senator Little
seconded the motion. The motion carried by a Voice Vote.
Senators Stennett and Calabretta requested to be recorded as
voting no. Senator McKenzie will sponsor this bill in the Senate.
Acting Chairman Richardson announced that it has not yet been
determined whether the committee will meet on Friday.
Adjournment There being no further business, the meeting was adjourned at 4:00
PM.






DATE: February 9, 2004
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 4,
2004 be approved as written. Senator Darrington seconded the
motion. The motion carried by a Voice Vote.
RS13899 Joint Memorial to the President of the United States, George W. Bush,
to the Senate and the House of Representatives; that the Congress
should give strong consideration to both increasing the current
mission and adding additional missions to Mountain Home Air
Force base.
Senator Kennedy stated that during 2004 and 2005, the U.S. Base
Re-alignment and Closure Commission will again be studying the
missions and performance characteristics of all bases in the United
States and will be recommending closure of certain bases, or the
reduction of the missions conducted at some of the bases. If adopted
by the Legislature, this Memorial urges the U.S. Department of
Defense and the U.S. Congress to give strong consideration to retain,
and even expand, the current mission of Mountain Home Air Force
Base. He said that reasons to maintain and increase their mission
include that they have outstanding community support in the region
and the state, that they have great quality of life, that there is a lack of
encroachment around the base and that there are many military
advantages for their continued mission. The military advantages
include excellent training opportunities, a large ramp and runway,
excess hangar capacity, a modern and realistic training area, a
valuable supersonic training area and plenty of room to expand.
Senator Kennedy stated that the economic impact based on 2002
data indicates that there are 4,312 military personnel who receive $148
million in payroll, there are 919 civilian personnel who receive $25
million in payroll, there are 5,900 military retirees living in southern
Idaho who receive $97 million in payroll and that construction and
procurement for the base amounts to over $79 million. These direct
expenditures amount to $350 million annually. It is estimated that the
military installations financial impact on the region is over $750 million
annually. In addition, the employees and their dependants create an
estimated 1,646 indirect jobs in the area. Mountain Home Air Force
Base is among the top five employers in the State of Idaho. Senator
Kennedy urges support of this Joint Memorial.
MOTION: Senator Davis made a motion that RS13899 be printed and 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 Kennedy will sponsor this bill on the floor of the
Senate.
RS13957 Relating to independent expenditures; Amending Section 67-6611,
Idaho Code, to provide the time which written statements must be filed.
Senator Davis stated that this correction is to a bill passed last year
which came from the Secretary of State. He said the legislature relied
upon the language provided to it in furtherance of the disclosure time
period; however, it is an error. Rather than reading “not less than,” it
should read “not more than.”
MOTION Senator Davis made a motion that RS13957 be introduced to print.
Senator Calabretta seconded the motion. The motion carried by
Voice Vote.
Chairman Sorensen then stated that due to the volume of people
wanting to testify, there would be a three minute limit. She said
Senator Hill will introduce the bill.
S1283 Relating to limitations on smoking in public places; Amending 39-5501, to revise legislative intent
Senator Hill stated that this legislation is about health. He said second
hand smoke is the third highest cause of preventable disease, death,
and disability. He said currently, non-smokers have no protection in
public places. He said the American Lung Association rates the state
of Idaho with an F for failure. He said he has reports from the United
States Surgeon General, the National Academy of Sciences, and the
American Medical Association which document the dangers of second
hand smoke. He said second hand smoke hurts and kills. He stated
that second hand smoke has four thousand chemical compounds in it.
He said studies show that exposure to second hand smoke causes
thirty times the number of cases of lung cancer than all other air
pollutants. He said children and the elderly are particularly susceptible.
They may suffer from pneumonia, asthma, bronchitis and ear
infections. Senator Hill stated that the Center for Disease Control
reports that second hand smoke likely accounts for more heart
disease. He said thousands of Idahoans already suffer from asthma,
heart disease, cystic fibrosis, and other diseases and they are unable
to go in public places due to their intolerance to second hand smoke.
He provided a hand out which compared the present situation with the
changes provided in this bill. He stated that currently, in Idaho, there
is no state law governing smoking in day care centers and private
schools. Senator Hill said that the opposition will suggest that
restaurants will be hard hit by decreased sales. However, independent
studies indicate that they have actually experienced an increase. He
said the opposition will suggest that this legislation is an infringement
on businesses rights. However public health has long been regulated
and the public is entitled to safe access to public areas. He said
government should regulate for public safety, whether it’s to ensure the
cleanliness of restaurant kitchens or good air quality in a day care or to
keep drunk drivers off the road. He said in this bill they do try to
accommodate smokers where possible in order to not deny individuals
rights. Senator Hill said no one should be forced to breath second
hand tobacco smoke. He said that in a poll by the Idaho Statesman
72.2% of the public agreed.
Senator Stennett said there is a conflict in the bill as to who will
determine what is a “bar” versus a restaurant. Senator Hill said that if
the bar is in the confines of a restaurant, it is still a restaurant. He said
if the food is incidental it remains a bar or if entrance is restricted to
adults over the age of twenty one. He said the Department of Health
and Welfare will establish the rules. Senator Stennett asked Senator
Hill if he will sit in on the development of those rules and assure that
restaurants can serve minors until a certain time and then convert to a
bar. Senator Hill said that he could not offer that assurance as there
is no way to write that into the law .
Dr. Holly Lenz, a professor at Idaho State University, stated that side-stream smoke is generated at lower temperatures which forces smaller
particulates into the lungs and contributes to heart disease as the
alveoli in the lungs exchange oxygen. She said side-stream smoke
contains ammonia, nitrogen oxide, benzine and two times the amount
of nicotine and tar than in the cigarette. She said that as these irritants
are transported, more bacteria gets into the body. She said studies
show that the side-stream smoke in bars is 3.9 to 6 times higher than
that in a home with a smoker. Dr. Lenz strongly supports this
legislation.

Kevin Settles is the owner of the Bardenay Restaurant and represents
the Idaho Lodging and Restaurant Association. He opposes S1283.
He referred to an article in todays Chicago Tribune which emphasized
how vulnerable restaurants are to changes and how frequently they go
out of business. He estimates that 20% of his customers smoke and
20% of his customers are minors which could have a big impact on his
profit. He feels this legislation is confusing and has inadvertent
consequences. He said he and his associates want to be able to
participate in the legislative process. Senator Calabretta said they
have many very small restaurants in her district and asked how he
thought they would be effected. Mr. Settles said it depends on how
they have developed their clientele. Senator Stennett asked him
about the impact of disallowing minors during certain hours. Mr.
Settles said he thought this legislation has moved too rapidly and they
need a better understanding of that section.

Stacey Hill, mother of three children, stated that her last months of
pregnancy were uncomfortable as she worked to protect her then
unborn son Cameron. Then, after his birth, when she passed through
the exit of the hospital, he was first tainted by cigarette smoke. She
said her husband Richie never smoked but was diagnosed with lung
cancer when he was 27. Now he is sick and can not tolerate smoke.
She said we must protect society from the devastation of second hand
smoke.
Julie Taylor, from Blue Cross of Idaho, presented a letter from the
Manager of Applebee’s Restaurant, Jeffrey R. Cross, which explained
that their non-smoking policy has had positive results including
increased seating space and happier employees.
John Wagers, owner of Idaho Candy Company, said they are a
wholesale distributor of cigarettes. He said he is also health conscious
as he is recovering from colon cancer. He said he goes to Mountain
State Tumors Institute and has never experienced any wall of smoke
as he entered or exited. He said he believes the legislature should
seek to educate and not legislate and he opposes this bill. He said that
the Idaho Millennium Fund dollars were meant for education, yet they
have been directed to the general Fund. Senator Calabretta asked
Mr. Wager if he felt legislation about health issues was inconsistent.
Mr. Wager said that you can’t legislate everything and that if they
identify the problem and educate, they would have a greater effect.
Doug Dammrose, a physician and Vice President of Blue Cross of
Idaho, stated that 40 years ago there was a landmark report from the
Surgeon General which identified the dangers of smoking. These
hazards extend to non-smokers. He said a study by the California
Environmental Agency demonstrated that environmental smoke
contributes to asthma, cancer, bronchitis, pneumonia and heart
disease. He said this results in a loss of productivity and a
considerable economic loss. They support this legislation.
Mary Thomas, one of the owners of the Stage Coach Restaurant, said
they are concerned about the effect S1283 will have on their sales
which are declining. She said each new disruption to business impacts
their livelihood. She said their bar sales are down $50,00 in one year.
She said the restaurant portion of their establishment employs two
thirds of the employees and a negative impact could force them to
close. Senator Stennett asked Ms. Thomas if they allow children all
day long. She said they do. Senator Darrington asked if Ms. Thomas
wouldn’t agree that in older established restaurants, it is necessary to
periodically re-vitalize and update. Ms. Thomas said they have never
remodeled as repairs and maintenance are so demanding that is all
they can keep up with.
Liz Speier has worked as a waitress and was born and raised in Idaho.
Her father died at age 62 from smoking. The corporation she now
works for has gone to non-smoking and their profits have grown. She
supports this legislation.
Robert Bowen, a citizen testified in opposition to S1283. He stated
that the government studies he has reviewed reported no such
negative effects from smoking. He feels there is no evidence second
hand smoke causes disease and that the people who complain have
the option to leave. He said the industrial pollution over our city is
more detrimental.
Conrad Colby, retired from Boise State University where he taught
Respiratory care. He provided a copy of the Phillip Morris Web Page
where the last paragraph states, “We believe that the conclusions of
public health officials concerning environmental tobacco smoke are
sufficient to warrant measures that regulate smoking in public places.”
Pam Eaton, President of the Idaho Retailers Association, stated that
they oppose S1283. She said the retail side has concerns about
enforcement, particularly at indoor malls and concerns about the
restriction on designated employee break rooms for employers with
less than five employees. They also are concerned about economic
development and the negative impact on downtown re-vitalization if
there are no restaurants.
Dr. David McCluskey is a surgeon in practice in Twin Falls, Idaho. He
said that tobacco is the number one cause of death and even though it
is killing a lot of people, we are doing nothing about it. He said that
21% of his patients smoke and they account for 69% of health care
costs. His office is smoke free. He doesn’t need to be told about the
consequences of smoking because he holds the hands of dying
patients and faces their families. Senator Richardson asked Dr.
McCluskey what he thought about the earlier comments that there was
no relationship between smoking and disease. Dr. McCluskey said
the science is there and it is indisputable.
Dr. Lynn Kammermeyer is a Medical Geneticist with the March of
Dimes. She said they support this legislation. She said the March of
Dimes mission is to improve the health of babies by preventing birth
defects and infant mortality. She said passive or second hand smoke
can be unhealthy for pregnant women and later, for their infants.
Studies suggest that inhaling passive smoke during pregnancy doubles
a non-smoker’s risk of having a low-birthweight baby. Babies who are
exposed to smoke suffer from more respiratory illnesses and ear
infections. Many of these consequences can inflict major emotional
and economic costs on families and on communities. Senator
Calabretta
asked if smoking cessation is supported for WIC Mothers
since they have a higher instance of smoking. Dr. Kammermeyer said
they do offer options to young women to help them stop smoking.
Senator Calabretta asked if those who smoke face a greater risk than
those who experience second hand smoke. Dr. Kammermeyer said
smokers have a greater risk but there is definitely risk from second
hand smoke.
Ryan Taylor, speaking as a citizen supports S1283. He is a former
restaurant employee of a place where smoking was allowed and he
was unable to escape the smoke while he worked there. He said
workers need the ability to breathe clean air.
Chris Thomas, is a Boise resident who writes college textbooks about
restaurant equipment and ventilation systems. She said that air
conditioning and heating systems in most eateries are designed for
temperature control, not freshing the air. She said HVAC systems
circulate the air. She supports this legislation.
Philip Behm, said he has been effected by smoking and he supports
tough controls. He has had a lung transplant and suffers from Alpha
Orea which is a deficiency that leaves him unprotected against smoke.
He doesn’t feel he should have to live in a bubble and he supports
protection for those unable to tolerate the harmful components of
smoke.
Jason Egbert, a high school student, who suffers from cystic fibrosis,
supports this legislation. He said environmental tobacco smoke acts
as an irritant to his condition and to others who suffer from asthma and
bronchitis. He feels his rights are infringed upon by second hand
smoke.
Brad Egbert, father of Jason, is keenly aware of the importance of
clean air. He said the public at large has rights to be considered. He
said 75% of the public supports this bill.
John May is the General Manager of the Owyhee Plaza Hotel in Boise
and he opposes S1283. He feels this decision should be a choice. His
choice to be smoke free was driven by his customers who want a non-smoking facility. He is offended to be told how to run his business. He
said the public will determine the need for non-smoking.
Dr. Robert Smith is a physician with Primary Care whose forty five
doctors support this legislation. He said in America every year deaths
related to environmental smoke amount to the entire population of such
towns as Twin Falls, Idaho. He speaks to thousands of fifth graders
about not smoking and he has never had a parent say they want their
children to smoke. He said we have the right to public spaces.
Phil Homer, a legislative adviser for the Idaho Association of School
Administrators, said they support the necessary steps to reduce the
risk of secondary smoke to children.
Brad Dixon, representing the American Heart Association, stated that
they know this bill will help reduce second hand smoke exposure and
will help to reduce heart disease. Senator Stennett asked if Mr. Dixon
thinks that a facility can be both a bar and a restaurant and what about
the concerns of the opposition. Mr. Dixon said we cannot exalt profit
over the health and safety of our citizens. Senator Stennett asked
about the question of enforcement brought up by Ms. Eaton. Mr. Dixon
said that according to the Enforcement Section of S1283, the individual
in charge of a location must respond to infractions. Mr. Dixon referred
to an experiment in Helena, Montana where reduction in environmental
smoke resulted in a 60% reduction heart attacks.
Shirley Green, from Moscow, Idaho, stated that she was a smoker for
thirty five years and now she is so thankful to be smoke free. She said
the previous laws encouraged her to quit smoking. She said anything
we can do to protect our children and grandchildren is important.
Glida Bothwell, is a citizen who doesn’t go into bars where smoking is
allowed. She likes to eat out and wants to see more non-smoking
restaurants. She supports this bill and said she will make a point of
patronizing non-smoking restaurants.
Brad Hoaglin represents the Coalition for a Healthy Idaho. He said
they support this bill. He has available a 58 page report on the
economic impact of non-smoking facilities. He said people will still drink
and eat out. He said this study is based on objective measures and
appropriate statistical tests and no negative impact was indicated. He
said many studies have biased outcomes as they are funded by the
tobacco companies and their allies.
Bonnie Haines represents the Idaho Hospital Association which
represents nearly all the hospitals in Idaho. Hospitals have been
smoke free for about twenty years. They see the negative results of
smoking in hospitals. They support this legislation.
Gary Raney, with the Ada County Sheriff’s Department, said that in
his opinion since bars are not included in this legislation, there would
be no great concern about enforcement other than with any other
misdemeanor.
Fred Riggers is a self-employed farmer from Nez Perce. He reported
that when he and is wife moved into their old homestead farm house
where smokers had lived, they tried to strip the walls and were shocked
by the dreadful deposits they had to remove. After seeing that he
doesn’t understand why anyone would want to smoke.
Jennifer Johnson is a sales engineer who travels with her work and
frequents many small diners and cafes in small towns. She asks for
non-smoking seating but the effects of second hand smoke follow no
matter where you are seated. She said one or two smokers can
adversely affect everyone else. She said many small towns don’t offer
a non-smoking choice. She has a survey of her experiences which is
available for review. She said no smoking sections fail.
Mike Fitzgerald, is Vice President of Idaho Lodging and Restaurant
Association and the owner of Table Rock Pub and Grill. He said he
was raised on a ranch and started smoking when he was twelve. He
said then before their son was born, he quit. Now his son smokes so it
seems we can’t always control outside influences. He is not against
the entire bill but is confused about the “incidental food” issue.
Bob Seehusen, the Chief Executive Officer of the Idaho Medical
Association, said they strongly support this legislation.
Mary MacConnell from the American Heart Association was asked by
Megan Wardell to read a letter as she was unable to be present. The
letter from Ms. Wardell stated that she had lost several family members
to smoke related disease. She works at a smoke free restaurant now
and she and her co-workers agree that all places should be smoke
free.
Kevin Settles concluded for the opposition to S1283 by stating that he
felt this was an “Idaho We Want to Regulate Act.” He said that how
this bill will be interpreted is a big gamble. He said the bill needs
clarification so that restaurants can survive.
Senator Brent Hill passed on concluding the support for the bill as he
felt their case has been clearly made.
MOTION Senator Davis made a motion that S1283 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. Senators Calabretta
and Sorensen requested to be recorded as voting no. Senator Hill will
sponsor this bill in the Senate.
ADJOURNMENT There being no further business, the committee adjourned at 5:40 PM.






DATE: February 11, 2004
TIME: 3:10 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Acting Senator Enid Lee Davis, Stegner, Little, and Stennett
MEMBERS

EXCUSED:

Senator Calabretta
MINUTES: Senator Geddes made a motion that the committee approve the minutes
for February 9, 2004 as written. Senator Little seconded the motion.
The motion carried by a Voice Vote.
RS13939 Relating to the Idaho Commission on the Arts; to revise the
declaration of policy
Cort Conley from the Idaho Commission on the Arts, stated that the
statutory sections governing the Commission On The Arts were enacted
in 1967. Current Idaho Code 67-5608 contains the original provisions
transferring to the commission the powers and duties of the Commission
on the Arts and Humanities established by a 1966 Executive Order. This
bill includes minor revisions reflecting changes in terminology over the
last quarter century. It modernizes the nomenclature and updates the
titles. Senator Darrington welcomed Mr. Conley to the committee and
recognized him as an famous Idaho author.
MOTION Senator Darrington made a motion to introduce to print RS13939.
Senator Stennett seconded the motion. The motion carried by a Voice
Vote.
RS13912C1 Concurrent Resolution for the centennial celebration; extending
appreciation and Congratulations to the family of D.L. Evans Bank.
Senator Stennett stated that this is a resolution to acknowledge and
honor the D.L. Evans Bank for one hundred years serving the banking
needs of the people of Idaho and expressing appreciation for the many
contributions that five generations of the D.L. Evans family have made to
the state. Senator Darrington stated that their bank was one of the only
banks to survive the Great Depression and that they still maintain a
branch in Albion, Idaho. They have prospered as a family bank.
MOTION Senator Little made a motion that RS13912C1 be introduced to print and
sent to the floor of the Senate. Senator Richardson seconded the
motion. The motion carried by a Voice Vote.
RS13956 Relating to the investment of Permanent Funds: Amending Section
57-720, Idaho Code, to clarify market value allocation between the
Permanent Endowment Funds and the Earnings Reserve Funds
Senator Cameron stated that this bill is a fix to the Endowment Fund
Problem which the state of Idaho is facing. He said the Idaho Constitution
requires that the Endowment Funds be kept whole from all losses. The
current statutes were defined during the time of fixed assets. This
legislation will adjust the time period by which investment losses incurred
by the Public Schools Permanent Endowment Fund must be repaid. He
said this legislation will provide a four to ten year window, includes a
methodology for repayment and states how gains will be attributed to
losses. Senator Cameron said failure to pass this bill would result in a
negative impact of $119 million.
MOTION Senator Stegner made a motion that the committee introduce to print
RS13956. Senator Geddes seconded the motion. The motion carried by
a Voice Vote.
S1265 Relating to election of School Board Trustees; when an election may
be canceled
Dr. Cliff Green from the Idaho School Boards Association presented this
bill. He said this proposal amends current law allowing school district
board of trustees or the school district clerk to declare a candidate elected
when there is not an opposing candidate nor a declaration of a write-in
candidate thirteen days prior to the election. He said this will give the
clerks more time to notify the public of no election. He said this change
mirrors the changes made in other departments and brings the school
trustees in line with code. Senator Richardson asked if the primary
intent of this change was to save money. Dr. Green said the intent is to
close the gap in time and get the word out sooner. Senator Little asked
how the public is notified of board vacancies. Dr. Green said it is
announced at public meetings and typically is published in local
newspapers. Senator Stennett asked what announcement is required by
law. Dr Green said he would have to check.
MOTION Senator Richardson made a motion that the committee send S1265 to
the floor of the Senate with a do pass recommendation. Senator
Darrington seconded the motion. The motion carried by a Voice Vote.
Senator Richardson will sponsor this bill in the Senate.
Chairman Sorensen then asked Vice Chairman Richardson to conduct
the meeting while she presented the next bill.
S1252 Relating to licenses to retail liquor; Amending Section 23-903, Idaho
Code, to provide for the issuance of a license, subject to the approval
of the mayor and the city council
Senator Sorensen stated that the purpose of this legislation is to
encourage tourism and economic development in Idaho’s smaller
communities by allowing the Mayor and City Council of cities with a
population of 5,000 or less to approve the issuing of a non transferable
liquor license in exchange for fifteen million dollars or greater taxable
investment in newly constructed lodging and hospitality facilities. She
said the resulting stimulation of economic development and investment is
good for Idaho. Senator Little asked if this was a concern for the new
hotel in Cascade. Senator Sorensen said she has spoken with them and
it appears they have been able to resolve the issue. Senator
Richardson
said that after all the discussion recently about the damage
that comes from smoking, he is concerned about the damages that could
result from alcohol promotion. Senator Sorensen stated that people are
interested in building lodges in Idaho and in order for them to do that we
must accommodate the same services that are available elsewhere. She
said this type of hospitality does not necessarily equate to drunk driving.
To encourage investors we must have a complete range of services.
MOTION Senator Stennett made a motion to send S1252 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 and
Acting Senator Enid Davis
voted nay.
Vice Chairman Richardson then returned the chair of the meeting to
Senator Sorensen.
S1282 Relating to the Personnel System and non-classified state officers and
employees; hours worked and overtime compensation
Steve Kenyon an attorney with the Idaho State Controllers Office, stated
that there is a problem in current code regarding updates to the overtime
provisions and this legislation will bring it into compliance. Currently, many
employees are keeping unrecorded hours outside of the states record
system which could cause serious problems with the Fair labors
Standards Act as well as the Idaho Code. The purpose of this legislation
is to promote honest, uniform reporting of hours worked by FLSA
executive level employees and clarify that these employees are hourly
employees unless Idaho Code sets their salary. This legislation enables
FLSA executive level state employees to report actual hours worked and
bank compensatory time for those hours worked in excess of 40 in a
week. These compensatory time hours could not be paid and would be
limited to 240 hours. He said these hours are not transferable if they
move to a different department. He said there is no fiscal impact as they
are not paid for comp time. He said the public expects accountability and
the employees need tools to protect them. Senator Sorensen asked if it
was possible that these employees might try to use the comp time to
offset vacation time. Mr. Kenyon said their vacation time is capped at
336 hours. Senator Sorensen asked if there might be the possibility for
abuse. Mr. Kenyon said that at the executive level they set their own
hours. Senator Stennett asked if a person worked extra to try to offset
vacation time they wanted the next week, what would stop them. Mr.
Kenyon said the Agency Director approves all absences. Senator
Ingram
spoke in support of this bill and offered to respond to any other
questions.
MOTION Senator Stegner made a motion that the committee send S1282 to the
floor of the Senate with a do pass recommendation. Senator
Richardson
seconded the motion. The motion carried by a Voice Vote.
Senator Ingram will sponsor this bill in the Senate.
Chairman Sorensen recognized Acting Senator Enid Lee Davis who is
filling in for Senator Bart Davis on the State Affairs Committee .
ADJOURNMENT There being no further business, the committee adjourned at 3:40 PM.






DATE: February 13, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Acting Senator Enid Lee Davis, Stegner, Little, Stennett,
Calabretta
MEMBERS

EXCUSED:

None
MINUTES: Senator Richardson made a motion that the minutes for February 11,
2004 be approved as written. Senator Stegner seconded the motion.
The motion carried by a Voice Vote.
RS13842 Relating to retail sale of liquor by the drink; Amending Section 23-953,
Idaho Code, to further define racing facility to include Motorsport
racing
Chairman Sorensen stated that the sponsor has asked us to hold
RS13842 until the next meeting.
RS13972 Relating to Medical Indigency; Amend sect. 31-3504, Idaho Code, to
eliminate the automatic lien provision upon application for financial
assistance and to make a technical correction
Senator Ingram asked that this bill to be introduced to print and then he
said it would probably be directed to Local Government and Taxation. He
said that currently there are 200,000 uninsured people in Idaho. When
they have health problems, they cannot always afford to pay the utilities.
They can go to the County Medical Indigency Program for help. After the
first $10,000 of debt, the balance owed goes through the collection
process. Idaho is the only state with an automatic lien law. After a
review, this lien remains against the property. They have a stream of
payments. If the owners need to get a loan against the property, their
equity is encumbered by the county liens. This legislation seeks to repeal
this process. Senator Ingram said this law is cruel and unusual and he
asked the committee to introduce RS13972 to print.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS13972. Senator Stennett seconded the motion. The motion carried
by a Voice Vote.
Senator Little asked about RS13972 being directed to the Local
Government Committee. Senator Geddes stated that after a bill is
moved to print by a privileged committee, it is then read across the desk.
After that the Pro Tem decides where the bill will be directed. Senator
Stegner
said if the bill is to move forward they will need to identify a new
fiscal impact statement. Senator Ingram said he understood and that the
current budget period was all that was addressed in this statement of
purpose.
RS13672 Proposing an Amendment to Section 1, Article III, of the Constitution
of Idaho, relating to initiatives to provide that no initiative of the people
enacted into law shall be subject to repeal in its entirety by the
legislature, at any time, without its submission to the electorate at the
general election
Senator Werk stated that this RS13672 and RS13676 are related
legislation. He said this bill states that if the legislature repeals a measure
approved by initiative, the measure will be automatically placed on the
next general election ballot. He said if the legislature repeals a bill, it
should be for a good reason which is easily understood by the public.
Senator Darrington said that a joint resolution is treated in every way as
if it were a bill. Senator Little asked about the phrase “repeal in its
entirety.” He said that although the hurdle originally set for an initiative
has been lowered by urbanization and communication, we can’t look at
every law and he opposes this change.
MOTION Senator Stennett made a motion that RS13672 be introduced to print.
Senator Calabretta seconded the motion.
Senator Stegner said that he has tried to be supportive of the minority
but he has difficulty supporting this bill. Senator Stennett said he has
appreciated Senator Stegners’ support but he should also understand
that Senator Werk has been asked by his district to pursue this change.
He said rather than require 45,000 signatures again, the legislature
should agree to stand up to scrutiny. Senator Calabretta asked why
have the initiative process at all if the will of the legislature can overturn it
without accountability to the public. She said originally the intent was for
the legislature to refine the initiative but it was not intended to totally
repeal it. She thinks that they must give the initiative process more
respect. Senator Geddes said that although he is not a great historian,
he would have to ask if we would have the same concerns if we ever tried
to amend a law put in place by the people. He said we have a democratic
republic rather than a pure democracy and sometimes we make difficult
decisions which the people in the state do not like. He said recent history
has demonstrated the equal weight of legislative law and the peoples law.
He said this is counter to how it has been exercised over the years and
we are on a slippery slope. Senator Stennett said the initiative process
has brought about the Sunshine Report and the Fish and Game
Commission and those laws have stood through the changes. He
encourages a public hearing for this bill.
Vote The motion failed in a Roll Call Vote. Senators Sorensen, Richardson,
Darrington, Geddes, Davis, Stegner and Little voted nay. Senators
Stennett and Calabretta voted aye.
RS 13676 Relating to initiatives and referendums; Amending Chapter 5, Title 67,
by addition of a new section, to qualify the authority of the legislature
to repeal
, in its entirety, a statute or measure approved by initiative until
the voters approve of the repealer, to provide that such a repeal will be of
temporary effect
Senator Werk stated that with the failure of RS13672, he would not
pursue RS13676.
Senator Calabretta asked that the RS be returned to the sponsor.
Chairman Sorensen said without objection, the RS will be returned to the
sponsor. There was no objection.
S1264 Relating to local liquor stores and distributing stations; Amend Sect.
23-307, Idaho Code to provide an exception to the prohibition on sales
delivery of any alcoholic liquor in, on, or from the premises of any state
liquor store or distributing stations on Sundays
Suzanne Budge Schaefer who represents the Distilled Spirits Council of
the United States presented S1264. She stated that this bill seeks to
align state liquor and alcohol law with the local county option regarding
liquor store sales on Sunday. Current law already allows Sunday sales
for other types of alcohol such as beer, wine and liquor by the glass. She
said that most of the state contract stores (about 100 in rural Idaho) are
already open on Sunday now. She said that from a shopping and
convenience standpoint, Sunday is the second biggest shopping day of
the week. This change is important also due to the tourism traffic on
week ends. She said additional sales would add to the State Treasury.
Senator Geddes asked why the stores have been closed in the past.
Mrs. Schaefer said she could ask Dyke Nally from the Liquor Dispensary.
Senator Geddes asked why the Fiscal Impact only stated the positive
results. Mrs. Schaefer said the analysis used had evaluated the cost of
the state liquor stores being open. Senator Geddes asked if in the
counties where liquor is sold by the glass there might be a negative
impact . Mrs. Schaefer said she would let Dyke Nally respond to him.
Dyke Nally from the Idaho Liquor Dispensary, stated that Sunday sales
have become very common as beer, wine and alcohol by the glass are
currently available. He said the prevention of sales on Sunday dates back
to the days of Prohibition. He said national figures have not shown
increased consumption. He said there has not been any noted increase
in social problems. He said the primary focus is for tourists and resort
areas. He said the contract stores are open anyway so there would be no
increased operational expense. He said they have no plan to open the
state stores. Acting Senator Enid Davis asked if there is not an
increased consumption, how could they generate $750,000 additional
revenue. Mr. Nally stated that people tend to drink higher quality, more
expensive products than they used to so their has been a market share
shift. Senator Geddes asked if new sales would be direct competition
with establishments that sale liquor by the glass. Mr. Nally said they are
actually two different markets so he doesn’t see a competitive issue.
Senator Stennett asked if contract stores were subject to the same
restricted time limits as state stores. Mr. Nally said contract stores are
privately owned and they have more flexibility.
Kylene Jenkins from Contract Liquor Store #280 spoke in support of this
bill. She said the responses she has received from the other contract
stores has been very positive. They support this bill.

Rick Walth from Mainstreet Beverage in Emmett, Idaho spoke in support
of S1264. He said part of his business mission is to make consumer
purchases convenient. He said currently tourists are disappointed when
they can’t purchase on Sunday. He said the additional incremental sales
would help small businesses in rural areas. He stated that the negative
impact of being unable to sell on Sunday is even more severe in years
when the main holidays fall on Sunday. Senator Stennett asked Mr.
Walth what his estimated margin is. Mr. Walth said it is about 8%.

Greg Koenig from Koening Distillery and Brewery in Caldwell, Idaho said
that his business has been recognized internationally for there quality
spirits and they attract many European visitors each year. He said they
are only open on Saturday and Sunday for tours. He stated that they
have been negatively impacted by being unable to sell on Sunday.

Pam Eaton, President of the Idaho Retailers Association, spoke in
support of S1264. She said of the 100 contract stores, the majority of
them are grocery stores and are open on Sunday. Currently, they have to
block off the liquor area on Sundays. She said these small businesses
need all the sales they can get and this bill presents a win/win proposition.

Senator Richardson voiced his concern that society could not afford
anymore of the negative effects of alcohol and he stated that he opposes
this bill.

MOTION Senator Stegner made a motion that the committee send S1264 to the
floor of the Senate with a do pass recommendation. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote
H500 Relating to an election candidate disagreeing with recount results;
Amend Sect. 34-2308 to provide when a candidate may appeal the results
of a recount
Bill Van Tagen, the Deputy Attorney General, stated that this bill grew out
of concerns that developed during some recounts of the last elections. In
several different situations losing candidates appealed. This situation
then identified some deficiencies in the Idaho Code. He said there was
no clear right of the candidate to appear to argue his case and this
change needs to be in place before the next election. He said page one,
line 10 identifies that any candidate can appeal, Line 26 lays out the
appeal process, and Line 34 allows the opposing successful candidate to
respond. Chairman Sorensen asked what the costs might be related to
this new procedure. Mr. Van Tagen said that costs could be
considerable depending on the campaign and the location. Chairman
Sorensen then asked about what the estimated range might be. Mr. Von
Tagen
said it could be in the thousands but up to now, there have not
been that many cases. Senator Stennett asked if there is any state
statute that awards attorneys fees. Mr. Van Tagen said he was not aware
of any.

Marty Durrand from the American Civil Liberties Union, stated that they
like that this bill provides for due process and the broadening of laws.
They do have a couple concerns which she identified in a hand out to the
committee. She said they felt Line 36 should say all parties are required
to be served with the appeal. She said their biggest concern in Section 7
is that the person who loses is required to pay the attorneys fees. This
would obviously chill the process since most people couldn’t afford to pay.
She said this bill could be improved and they recommend it be sent to the
amending order.

Brain Kane, from the Attorney Generals office, said that due to first
amendment rights, those overlooked in the appeal would have a higher
right. He said that when a candidate appeals, they have to identify the
specific questionable ballots. So when a candidate decides to appeal
they can take a hard look at the strength of the case first. Senator
Stennett
asked about the specific number of ballots questioned in the
Butte County Sheriff election. Mr. Kane said it was 12 ballots. Senator
Little stated that the “bear the cost” phrase made him nervous especially
if the case involved travel expenses. Senator Little made a
recommendation that the committee send H500 to the fourteenth order
where they might insert the word “reasonable” to qualify the cost. .

MOTION Senator Stennett made a motion that the committee send H500 the
fourteenth order for amendment. Senator Little seconded the motion.
The motion carried by a Voice Vote. Senator Stennett will sponsor this
bill in the Senate.
H534 Relating to open public meetings of governing bodies; to revise
requirements using telecommunication devices
Leslie Goddard, Director of the Human Rights Commission, stated that
this is a small amendment to the open public meetings law. She said it
will provide for the allowance of telephone conferencing at meetings. She
said the Human Rights Commission currently has nine commissioners,
seven of which live out of town. This change will help them to satisfy
state statutes of attendance at commission meetings which occur monthly
and will provide financial savings.
Motion Senator Little made a motion that the committee send H534 to the floor
of the Senate with a do pass recommendation. Senator Richardson
seconded the motion. The motion carried by a Voice Vote. Senator
Calabretta will sponsor this bill in the Senate.
H561 Relating to notices for Elections; Amend Sect. 34-602, to specify
information to be contained in notices
Tim Hurst from the Secretary of States Office, stated that this bill pertains
to notice of elections and is a result of the Help America Vote Act. The
counties already notify the public of the polling places and this would
require that they also publish information about the accessibility of them.
MOTION Senator Stennett made a motion that the committee send H561 to the
floor of the Senate with a do pass recommendation. Senator Geddes
seconded the motion. The motion carried by a Voice Vote.
H562 Relating to the conduct of elections; Amend Sect. 34-303, to authorize
appointment of students to election boards
Tim Hurst presented this bill as an attempt to increase the awareness of
the electoral process to the young people of Idaho. He said that studies
indicate that the lowest turn out in elections is among 18 to 26 year olds.
This bill would appoint student poll representatives to help young people
become aware of their civic responsibility. Senator Calabretta asked if
the student representative would be to replace an existing representative.
Mr. Hurst said that currently there is no limit on the number of
representatives so they could be in addition or a replacement. Senator
Calabretta asked if the current statute assumption is eighteen years of
age. Mr. Hurst said though that may be the assumption, seventeen year
olds can be poll representatives.
MOTION Senator Richardson made a motion that the committee send H562 to the
floor of the Senate with a do pass recommendation. Senator Darrington
seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen expressed appreciation to Acting Senator Enid
Lee
Davis for her service to the committee and the legislature.
ADJOURNMENT There being no further business, the committee adjourned at 4:40 PM






DATE: February 16, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Little, Stennett, Calabretta
MINUTES: Senator Calabretta made a motion that the committee approve as written the
minutes for February 13, 2004. Senator Little seconded the motion. The
motion carried by a Voice Vote.
RS14099 Relating to independent expenditures; Amend Sect. 67-6611, to provide
the time in which written statements setting forth certain expenditures must be
filed
Senator Davis stated that this RS replaces RS13957 which was heard and
introduced to print from the State Affairs committee on February 9, 2004 and
became S1297. Since then it was determined that S1297 had failed to
include the Emergency Clause which necessitated this corrected bill.
MOTION Senator Calabretta made a motion that RS14099 be introduced to print.
Senator Davis seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen then asked Vice Chairman Richardson to chair the
meeting while she presented RS14073.
RS14073 Relating to the Idaho Employer Alcohol and Drug Free Workplace Act; to
provide certain eligibility requirements for contractors relating to state
construction
Senator Sorensen stated that this is a simple bill which proposes that any
contractors or sub-contractors who are approved to work for the state of
Idaho will be required to participate in the Idaho Employer Alcohol and Drug
Free Workplace Act, Title 72, Chapter 17.
MOTION Senator Davis made a motion that the committee introduce to print
RS14073. Senator Geddes seconded the motion. The motion carried by a
Voice Vote.
Vice Chairman Richardson then returned to chair of the meeting to
Chairman Sorensen.
RS13842 Relating to retail sale of liquor by the drink; Amend Sect 23-953, to further
define racing facility to include Motorsport racing









Senator Stegner spoke for Senator Compton . He said that this proposed
amendment would extend to auto racing venues the same rights which horse
racing tracks have to obtain a limited liquor license.

MOTION Senator Stegner made a motion that the committee introduce to print
RS13842. Senator Calabretta seconded the motion. A Roll Call Vote
passed with Senators Sorensen, Stegner, Little, Stennett, and Calabretta
voting aye. Senators Richardson, Darrington, Geddes, and Davis voted nay.
RS13969C1 Relating to bribery and corruption; Amend Sect. 18-1356, to prohibit
public servants from soliciting, accepting, or agreeing to accept any
pecuniary benefit from certain persons
Senator Ingram stated that in his twelve years in the legislature, he has
watched the reputation of public servants decline. He said this is a short
revision to Section 18-356 which is intended to help improve public
perception. He said it is easier to say no if you have to say no. Senator
Calabretta asked if Line 35 actually strengthened the bill. Senator Ingram
said it states that no public servant shall accept certain things. Senator
Calabretta said keeping it simple sounds good to her.
MOTION Senator Calabretta made a motion that the committee introduce to print
RS13969C1. Senator Richardson seconded the motion. The motion
carried by a Voice Vote.
RS13935 Senate Concurrent Resolution to support the state of Israel
Senator Sweet stated that this resolution is to convey support to the state of
Israel in their resistance to terror. He said the United States stands with
Israel and supports their right to self defense.
MOTION Senator Davis made a motion that the committee introduce for print
RS13935, a concurrent resolution, and then ask that it be returned to the
State Affairs Committee. Senator Stegner seconded the motion. The
motion carried by a Voice Vote.
RS14053 Relating to the American Heritage Monument; Amend Chapter 16, Title
67, to provide for a display of the American Heritage Monument
in the
Capitol Building and provide a design committee.
Senator Sweet stated that it seems particularly fitting on this Presidents Day
to recognize and reconfirm the importance of our American Heritage. He said
that his research identified many documents with historical value but there are
seven which he thinks have particular significance. They are the Magna
Carta, Mayflower Compact, Sir Edward Cole and William Blackstone’s Rules
of Law, the Fundamental Orders of Connecticut, the Declaration of
Independence, the Ten Commandments, and the Preamble and Declaration
of Rights from the Idaho Constitution. He said this monument would be
designed to convey the historical and legal importance of our heritage. He
said the monument would be privately funded and supervised by a design
committee composed of three Senators and three Representatives. Senator
Richardson
asked if such a monument would just recognize these
documents or what was planned. Senator Sweet said the final design is left
up to the committee and would need to incorporate the major elements in the
display. Senator Calabretta asked if copies of these documents were
already available in Idaho libraries. Senator Sweet said they probably were.
Senator Calabretta said there are numerous monuments in the capitol
including the Miners Monument and asked why we need this one. Senator
Sweet
said it is important to show our children their heritage. He said the
teaching about the founding of our country seems to be incomplete. Senator
Sorensen asked if such a monument might result in a law suit. Senator
Sweet said this monument is designed within the parameters that recent
court decisions have issued. Senator Little referred to page two, Line 19
which describes the display of the monument. He asked if Senator Sweet
was saying that the documents in the monument were in fact up to the will of
the design committee. Senator Sweet said that ultimately they are up to the
design committee. Senator Davis referred to page two, line 11 which
contains the “essence” language. He said lines 13 through 43 on page one
and lines 1 through 4 on page two are very specific findings regarding the
monument. He asked if those lines specifically were assigned to the
monument, word for word, then the essence would be fulfilled. Senator
Sweet
said that sounded valid to him. Senator Calabretta asked if any of
these documents address separation of church and state. Senator Sweet
stated that he was not aware of any documents that speak specifically to that
other than those that come from the courts. Senator Stennett asked what
was the emergency in getting this bill started. Senator Sweet said they
wanted to begin the fund raising. Senator Stennett said he was concerned
about no provision for political balance. Senator Stegner said although he
was not that familiar with the previous procedure for monuments, he
questions whether we need a statute to authorize a monument. Senator
Sweet
said he does not know the specifics of all monuments but according to
Legislative Services, the Legislature controls the third and fourth floors and
the basement. Senator Little referred to Article 1, Section 4 of the
Constitution which states that no person shall be forced nor shall there be any
preference by law of any specific religion. Senator Sweet said that there are
existing monuments which have scripture and prayer. He said they have
gone the extra mile to make sure they are on solid ground and can meet the
court “tests.” Senator Davis said we are in the Ninth District Court who
recently removed “under God” from the Pledge of Allegiance. He asked
Senator Sweet if he has sought the Attorney Generals’ opinion about the
language in this bill. Senator Sweet said they do have an informal opinion
and the Attorney General agrees it is written in a constitutional manner.
However, he did say they cannot predict what the courts might do in light of
what and how it is actually constructed. Senator Sweet said they have not
favored any of the specific documents and have tried to accommodate the
courts. Senator Davis asked if the opinion from the Attorney Generals office
occurred since Judge Lodge made his ruling on the removal of the Ten
Commandments Monument from the park. Senator Sweet said that ruling
has to do with the city acting unconstitutionally in removing the monument,
not with the Ten Commandments.
Senator Davis said Senator Sweet had talked about the Fifth Circuit Court
decision. He asked if it was Senator Sweets’ purpose to display the Ten
Commandments and hide it among the other documents. Senator Sweet
said that his intention is to identify the most significant historical documents
that had the greatest impact on the founding of our nation. He said the civil
codes of law are a part of our history. Senator Stegner asked that in light of
the current controversy over the Ten Commandments and the possibility that
the state might get involved in significant litigation, would Senator Sweet
accept the possibility of amendment to this bill to remove the Ten
Commandment reference. Senator Sweet stated that we cannot have an
accurate historical monument and exclude the Ten Commandments.
Senator Little said that he is also concerned about the rest of the text of the
document and he thinks it will need further research particularly with regard to
the specific documents identified. Senator Sweet said there are a lot of
appropriate documents to consider but physical restraints limit the number of
documents that can be presented. Senator Stennett said the Fiscal Impact
statement was inadequate as it fails to address the cost to defend a law suit.
Senator Sweet said that same question could be asked about any law
passed on the floor of the Senate. He said such a suit is not a major
consideration. Senator Stennett said this has been tested in the courts.
Senator Sweet said similar displays to this one have been found to be
constitutional if they pass the “lemon” test. He said they have followed
closely the courts parameters. Senator Stennett asked Senator Sweet if he
knew what the cost has been to the state of Alabama for the litigation there.
Senator Sweet said that case is nothing like this proposal, it is not relevant,
and he wouldn’t know the cost.
MOTION Senator Richardson made a motion that the committee introduce for print
RS14053. Senator Davis seconded the motion. In a Roll Call Vote the
motion carried. Senators Richardson, Darrington, Geddes, Davis, and Little
voted aye. Senators Sorensen, Stegner, Stennett and Calabretta voted nay.
Chairman Sorensen apologized to Nicole LeFavour since time restraints
prohibited the committee from being able to hear the remaining bills on this
day. She said they will be re-scheduled for the next meeting.
ADJOURN: The committee adjourned in order to return to the floor of the Senate at
3:55PM.






DATE: February 18, 2004
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 Davis made a motion that the committee approve as corrected
the minutes for February 16, 2004. Senator Calabretta seconded the
motion. The motion carried by a Voice Vote.
Gubernatorial Re-appointment of Dyke Nally of Boise, Idaho as
Superintendent to the Idaho Liquor Dispensary to serve for a term
expiring January 4, 2005
Dyke Nally has been the Superintendent of the Idaho Liquor Dispensary
since 1995. They operate 152 stores, 52 of which are state stores. They
had $85 million in sales this year. He said they have a wide product
selection and a good training program. Since the purchase of their new
warehouse here in Boise they have saved tax dollars. They employ 230
full and part time employees. They have hired a controller and have had
no new audit findings for the last three years. He said Idaho has low per
capita consumption and ranks 38th in sales in the nation. He said the
Dispensary is a profitable business for the state and contributes to the
General Fund. Senator Stennett said that since the recent discussion in
this committee about Sunday sales, he would like assurance that the
contract stores will be the beneficiaries. Mr. Nally said that change is
primarily for the contract stores with the possible exception of high tourist
areas.
Chairman Sorensen announced that the vote on Mr. Nallys’ re-appointment would be held at the next meeting.
RS14147 Relating to fish and game; Amend Sect. 36-1406, to provide that
prosecutions for specified fish and game misdemeanor offenses must be
commenced within five years after commission of the offense.
Senator Stennett stated that this bill is being requested to be introduced
to print by the unanimous consent of the Resource and Environment
Committee and their Chairman Noh.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS14147. Senator Stegner seconded the motion. The motion carried by
a Voice Vote.
RS13982C1 Relating to the Public Utility Regulation; Amend Chapter 5, Title 61, by
addition of a new section to establish a winter moratorium on
termination of gas
or electrical services for customers with children,
elderly or infirm members when the customer is unable to pay; to create a
new utility based supplemental low-income energy assistance fund
Nicole LeFavour, the Legislative Advisor for the Idaho Community Action
Network(ICAN), presented this bill on behalf of those with low incomes.
She stated that her three bills address four issues of the winter shut off
program of the Public Utility Commission. Her constituents are seeking to
extend the winter moratorium months, change the current monthly update
required for medical certificates, open qualification of new customers, and
design a funding mechanism. Ms. LeFavour said their members are
facing steep increases in heating costs and medical services. They
urgently need assistance just to keep up with increasing expenses.
Senator Sorensen asked whether these changes had been considered in
concert with the Public Utility Commission(PUC). Ms. LeFavour said that
the PUC does their rule making separately and that is why they are
seeking help from the Legislature. Senator Calabretta said in some
cases the committee members feel the PUC has agreed to include ICAN
in their negotiations. Ms. LeFavour said the rule making is done annually
and her members are not always able to participate then. Senator
Calabretta
said that it is difficult for some to understand how grave this
situation can be. Where she lives in Shoshone county the winters are
long compared to Boise. She asked if a meeting was held with the PUC,
and if Ms. LeFavour could provide more information about the needs of
ICAN. Ms.LeFavour said she does have additional information about
their members available but there are not enough funds now. Senator
Richardson said that he was confused as the utilities have told him that
there are currently programs available such as Project Share and Project
Warmth. He said perhaps she needs to meet with them and clarify the
various options that are available and then form some clear conclusions.
Ms. LeFavour agreed a hearing would be good but she asked that the
committee say that the intent of the legislature is to examine this situation.
Senator Stegner asked about the funding mechanism. Ms. LeFavour
said it is somewhat left open but asks for a surcharge of 12 cents per
month on electrical consumers. Senator Geddes stated that he admires
Ms. LeFavour for her efforts on behalf of those with low income.
However, he is concerned she may do more harm than good if this
mandatory charge looks like a tax. Consumers then may not participate
in the existing voluntary projects. Ms. LeFavour said the details need to
be worked out. However, she feels as a consumer, she would be willing
to pay the surcharge so her neighbors aren’t cold in the winter. She said
people who give voluntarily see the need as an urgent concern. Senator
Calabretta said she appreciated Inter Mountain Gas and their efforts.
However their voluntary program has had a less than sterling
performance and has varied greatly from year to year. Senator Little
said he was concerned that there is no means test and they can qualify if
they have a child under 18 or are over the age of 62. Ms. LeFavour said
this wording is the same as is currently written and could be changed.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS13982C1. Senator Davis seconded the motion. The motion failed in
a Roll Call Vote. Senators Sorensen, Richardson, Darrington, Geddes
and Little voted nay. Senators Davis, Stegner, and Calabretta voted aye.
Senator Stennett was not present at the time of the vote.
RS13943C1 Relating to Public Utility Regulation; Amend Chapter 5, Title 61, by the
addition of new section to establish a moratorium on termination of gas or
electrical services,
Nicole LeFavour stated that this bill is confined to asking for an
expansion of the winter moratorium. It asks that the months of November
and March be included.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS13943C1. The motion died for lack of a second.
RS13946C1 Relating to Public Utility Regulation; Amend Title 61, by addition of a
new Chapter 16, to provide legislative intent and to require the Public
Utilities Commission to create universal system benefits program for
low-income energy assistance
Senator Calabretta asked the committee to return RS13946C1 to the
sponsor. Chairman Sorensen stated that without objection the RS would
be returned to the sponsor. There was no objection.
RS14046C1 Relating to ethics in government; providing legislative intent; Amend
Chapter 7, Title 59, to provide a limitation on persons appointed to a
board, council, or commission
Senator Burkett stated that the purpose of this bill is to enhance citizen
participation in government. He said it will ensure that citizens serving on
Idaho’s boards, councils, and commissions are drawn from a wide
segment of the citizenry and it limits citizen appointments to boards and
commissions to one per person. He said line 27 is the operative
language. He said it does not apply to elected positions. Senator
Sorensen asked if it applied to all boards. Senator Burkett said it
applies to boards created by state statute. Senator Little asked if Joe
Farmer is on the Chick Pea Board and then is asked to be on the
Education Board, would this bill require him to quit one. Senator Burkett
said he would have to choose. Senator Geddes referred to Linda Lee of
Soda Springs as she is on the City Council and on the School Board and
asked if she would have to choose. Senator Burkett said elected
positions are not affected. Senator Calabretta asked why we need this
additional legislation. Senator Burkett said we need to spread the power
to the people and have a broader based participation. Senator Davis
stated that if there was a vacancy on the City Council, which is created by
statute, then this bill as written would apply. Senator Burkett said a
council funded by the government was not covered. Senator Davis said
the bill reads board, council or commission and asked how the
government funding is a consideration. Senator Burkett said the intent
of the drafters was not to include local government. Senator Davis asked
how much the bill had to do with the recent appointment and confirmation
of Phil Reberger to the Idaho Judicial Council. Senator Burkett said the
Reberger case was the “focal point” of what brought up the issue, but
ironically it wouldn’t affect Reberger because just one of his appointments
would qualify. Senator Davis stated that many members of the
legislature are very active and serve on numerous committees and he
asked if this bill is the antithesis of the Idaho Legislature. Senator
Burkett said he did not think so, as elected and appointed positions are
not affected and they are focusing on citizens positions. Senator
Sorensen
asked how many positions this would affect. Senator Burkett
said that from the records in the Lieutenant Governor’s office it appeared
about ten to twenty five positions. Senator Sorensen asked how many
boards are state funded. Senator Burkett said he was not sure. Senator
Stegner
said it appears most of the positions were gubernatorial
appointments and he asked if this bill would deny the governor his choice
of appointments. Senator Stennett said that it seems there is an issue
here and he supports having a hearing.
MOTION Senator Stennett made a motion that the committee introduce for print
RS14046C1. Senator Calabretta seconded the motion. The motion
failed in a Roll Call Vote. Senators Sorensen, Richardson, Darrington,
Geddes, Davis, Stegner and Little voted nay. Senators Stennett and
Calabretta voted aye.
S1266 Relating to the Idaho Hazardous Substance Response Act; to further
define terms and provide for implementation through the Bureau of
Homeland Security
Colonel Bevis, State Judge Advocate, stated that this legislation re-titles
the Bureau of Disaster Services. He said this proposal establishes the
Bureau of Homeland Security in the Military Division of the Office of the
Governor. Under this proposal the Bureau of Homeland Security
supercedes and combines the functions of the Bureau of Disaster
Services and the Bureau of Hazardous Materials.
MOTION Senator Davis made a motion that S1266 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 Davis will
sponsor this bill in the Senate.
S1267 Relating to Title 46, Militia and Military Affairs; to extend protections
to Idaho National
Guard members ordered to federal active status.
Colonel Bevis stated that last year the Soldiers and Sailors Relief Act
was extended to members of the National Guard on active duty. This
proposal amends Section 46-409, by extending the protections of the
Idaho Militia Civil relief Act to the National Guard members who are
ordered to federal active service under Title 10, United States Code, for
duty other than for training lasting 30 days or more. Senator Little asked
about the Fiscal Impact statement. Colonel Bevis said the main
consideration in education is extending of credit for the next semester
which has minimal impact. Senator Davis extended his appreciation to
Colonel Bevis for the additional information he received about this bill.
MOTION Senator Little made a motion that the committee send S1267 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.
S1268 Relating to Title 33, Education; Chapter 37; Miscellaneous provisions
relating to state institutions of learning
MOTION Senator Davis made a motion that the committee send S1268 to the floor
of the Senate with a do pass recommendation Senator Calabretta
seconded the motion. Senator Richardson will sponsor this bill in the
Senate.
S1305 Relating to the Idaho Commission on the Arts; Amend Sect 67-5601,
to revise policy, to strike obsolete provisions, to add services
Dan Harpole, the Executive Director for the Idaho Commission on the
Arts, stated that this legislation was a housekeeping bill necessary to
modify the Idaho Code to more accurately reflect the activities of the
Commission. He said that after processing S1305, he became aware of
some additional corrections and so he brought RS14152 to the committee
today to provide those corrections. He said these changes reflect the will
of the Commission and their current practices. However, he has now
realized that Section 7 of the bill is covered in a prior section of the bill
and therefore should be omitted.
MOTION Senator Darrington made a motion that the committee introduce for print
RS14152C1 with the correction authorized by the director. Senator
Calabretta seconded the motion
Substitute
Motion
Senator Davis made a Substitute Motion that RS14152 be returned to
the sponsor and a new correct RS be prepared for the committee.
Senator Geddes seconded the motion. The motion carried by a Voice
Vote
.
S1306 Relating to the investment of Permanent Funds; Amend Sect. 57-720,
to clarify market value allocation between the permanent endowment
funds and the earnings reserve funds
Senator Cameron stated that the Legislature faces a difficult situation
due to the loss of endowment fund earnings. He said that unfortunate
timing getting into the market had resulted in several million dollars of
loss. By statute, the Corpus must be maintained. He provided two
handouts for the committee. He said the purpose of this legislation is to
adjust the time period by which investment losses incurred by the Public
Schools Permanent Endowment Fund must be repaid. The current four-
year repayment horizon was originally established at a time when
endowment funds were invested in interest-bearing instruments with lower
variability of capital gains and losses. In addition, all revenue from timber
receipts was deposited in the Permanent Fund, more than making up for
any potential loss of value. Senator Davis asked if in “simple terms” this
means that this bill will provide a more predictable funding level
regardless of what the market does. Senator Cameron said the bill does
two things. First it allows losses to be paid back over a ten year window
and second, because we recognize there is a loss in value over time, any
gains cannot go the beneficiaries but to the loss. Senator Davis asked if
there is adequate protection of the Corpus so distribution does not occur
while there are losses. Senator Cameron said he believes it is protected
and the reserve fund adds to that protection. Senator Sorensen
questioned on page two whether the loss is just paid for the previous year
or for the ten year look back. Senator Cameron said if it is possible to
pay more than just the previous years loss then they may pay more.
Senator Sorensen asked what if we took a $100 million hit. Senator
Cameron
said it would depend on what happened over the next twelve
month period as it runs on a rolling time frame. He said if after ten years it
is not made up, then there would be a problem. Senator Davis asked
how other states are resolving these similar challenges. Senator
Cameron
said he was not sure but he does know that other states
changed to the variable market return, they just didn’t have as bad of
timing as Idaho.
Matt Hardson, the Manager of the Endowment Investment Board, stated
that he is not aware of another state that has to recover losses. Senator
Calabretta stated that the intent of the makers of the Constitution was
clearly that they wanted the corpus of the fund maintained. She asked
what happens to the entities funded by the endowment. Senator
Richardson asked if normally when we have a market dip, does inflation
parallel it. Senator Cameron said there is some correlation between the
market and downturns. Senator Davis referred to Article IX, Section 3
where it stated “As defined and prescribed by law, the state shall supply
losses to the public school permanent endowment fund, excepting losses
on moneys allocated from the public school earnings reserve fund.”
MOTION Senator Davis made a motion that the committee send S1306 to the floor
of the Senate with a do pass recommendation. Senator Stegner
seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT There being no further business, the committee adjourned at 4:45 PM.






DATE: February 20, 2004
TIME: 3:15 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen and Senators Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senators Darrington, Richardson, and Davis
MINUTES: Senator Calabretta made a motion that the minutes for February 18,
2004 be approved as written. Senator Geddes seconded the motion.
The motion carried by a Voice Vote.
Gubernatorial Re-appointment of Dyke Nally of Boise, Idaho as
Superintendent to the Idaho Liquor Dispensary to serve for a term
expiring January 4, 2005.
MOTION Senator Little made a motion that the committee recommend to the full
Senate the re-appointment of Dyke Nally as Superintendent to the Idaho
Liquor Dispensary. Senator Stennett seconded the motion. The motion
carried by a Voice Vote.
RS14167 Relating to purchasing and Public Works Contracts by the state of
Idaho, Amend Chapter 57, Title 67, add a new section to provide for
health insurance requirements for vendors and public works contractors
Senator Stennett stated that the purpose of RS14167 is to discourage
businesses that pass off the cost of doing business onto other tax payers
by not providing health insurance for their workers which then results in
them having a competitive advantage over those who do provide
insurance. He said it applies to only employers with over 25 employees
and requires that they must provide health insurance to 80% of their
employees. He said this establishes a platform to do business in Idaho
and will help ward off the escalating health care costs to the state.
Chairman
Sorensen asked if the employer will have to pay the full
amount. Senator Stennett said the bill does not stipulate how the cost is
paid. Senator Little asked if Walmart would be required to provide
insurance. Senator Stennett said if they do business with the state of
Idaho, they would have to provide insurance to their employees. Senator
Stegner
said the fiscal impact statement suggested no increase cost to
the state but restricting potential suppliers to the state could have a
adverse affect. Senator Stennett stated that it is far more expensive for
business to shift the cost for insurance onto other tax payers.
MOTION Senator Calabretta made a motion that RS14167 be introduced for print.
Senator Stennett seconded the motion. The motion carried by a Voice
Vote.
RS14105 Relating to County-based Intermodal Commerce Authorities; Amend
Title 70 by addition of new Chapter 22, to authorize a county-based
intermodal commerce authority
Senator Cameron stated that this proposal creates a new Section 70-2201, authorizing creation of a county-based intermodal commerce
authority. The local commerce authority shall not have taxing authority,
and is designed to create, stimulate and advance commerce, economic
development in the local jurisdiction, and for all Idaho. Any board of
county commissioners may create or abolish the intermodal commerce
authority. He said this idea needs a lot of discussion and he is asking that
this bill be introduced for print so that it may be circulated among the
various entities for feedback. Senator Calabretta asked if it was going to
be referred to the germane committee. Senator Cameron said that due
to the wide scope, it has not yet been determined what the correct
committee might be. Senator Little asked about the “Water Course and
Port District Title.” Senator Cameron said they tried to model this
legislation after the Port Authority bill but it did not fit well
MOTION Senator Stegner made a motion that RS14105 be introduced for print.
Senator Geddes seconded the motion,. The motion carried by a Voice
Vote.
RS14136 A Concurrent Resolution stating findings of the legislature and rejecting
certain rules of the Idaho Fish and Game Commission relating to
commercial fishing.
Senator Noh explained that this resolution can go to the floor of the
Senate or can be returned to committee. He said this is the standard form
used to reject a rule of the Fish and Game Commission and if adopted by
both houses of the legislature it would prevent the agency rule from going
into effect.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS14136 and then send it to the floor of the Senate. Senator Geddes
seconded the motion. The motion carried by a Voice Vote.
S1309 Relating to Public Contracts; Amend Section 18-1359, to prohibit
public
servants from engaging in certain acts and to specify the
penalties for violations
Senator Noh stated that this bill was introduced in the Education
Committee and then referred to State Affairs. He said that Education now
is very big business and this change is a way to improve communication
with public officials regarding ethics laws. He said that Idaho Code 67-5718, Purchasing Code, lays out the do’s and don’ts for those who
attempt to effect the outcome of contracts. However, these guidelines are
a long way in the code from the other ethics code section. So the intent
of this bill is to put officials on notice to also look at this section of the
code. He said it also clarifies how these provisions apply to other units of
government besides the state. Senator Calabretta asked about where
the language was that relates it to other units. Senator Noh referred her
to page three, Section 59-210, Violations of Public Contracts. Senator
Stennett asked about the difference between the reference to public
officers and public servants. Senator Noh referred the answer to Bill Van
Tagen.

Bill VonTagen, Deputy Attorney General, stated that the terms public
servants and public officers are interchangeable. Senator Stennett
asked if anyone who draws a public salary is subject to this law. Mr.
VanTagen said that is correct if they are attempting to influence control
within the scope of their job. Senator Stennett asked if that includes all
employees of the state and county. Mr. VanTagen said that is correct.
Senator Little asked if the intent of this legislation is to make the law
more concise. Mr. VanTagen stated that the statute needed greater
attention and this is not a substantive change.

MOTION Senator Stegner made a motion that the committee send S1309 to the
floor of the Senate with a do pass recommendation. Senator Stennett
seconded the motion. The motion carried by a Voice Vote. Senator Noh
will sponsor this bill in the Senate.
H607 Relating to the creation of the Idaho Department of Commerce and
Labor; Amending Chapter 47, to incorporate the Department of Labor in
the Department of Commerce
Dwight Johnson from the Department of Labor, presented this bill which
merges the Department of Commerce and the Department of Labor into a
single Department that will be named the Idaho Department of Commerce
and Labor. He presented a handout for the committee members. He said
this merger will formalize a long-standing partnership between these two
departments and will ensure that the functions of economic development
and workforce development are directly linked. He said the Governor is
very confident in Roger Madsen as the new leader. He said the ultimate
outcome will be higher wage jobs with benefits in Idaho.
Roger Madsen, Director of the Department of Labor, stated that at this
time they are making an effort to consult with all groups who are
stakeholders in this change. He said there is some concern that there is
not a specific plan yet but he is confident that will develop. Chairman
Sorensen asked how the departments will merge and if their mission will
be different. Mr. Madsen said they will form a key leadership team that
will operate somewhat like a Work Force Development Council and they
will work side by side with employment to promote economic
development. Chairman Sorensen asked about tourism. Mr. Madsen
said tourism will be a focus and now they will have an additional 24
offices in the state with trained employees. Chairman Sorensen asked if
there would be additional training. Mr. Madsen said they will be trained
by specialists. Senator Stegner asked how many other states have
made this type change. Mr. Madsen said Maryland, Kentucky, Florida
and some others have made similar changes.
MOTION Senator Stegner made a motion that the committee send H607 to the
floor of the Senate with a do pass recommendation. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote. Senator
Geddes will carry this bill in the Senate.
S1372 Relating to independent expenditures; Amend Section 67-6611, to
provide the time in which written statements setting forth certain
expenditures must be filed with the Secretary of State.
Geri Rees, Assistant to the Majority Leader, presented this legislation for
Senator Davis. Mrs. Rees stated that this bill relates to independent
expenditures and corrects an error in S1009 from the 2003 legislative
session. She stated that the legislature relied upon the language
provided to it in furtherance of the disclosure time period; however, it is an
error. Rather than reading “not less than,” it should read “not more than.”
Also Section 2 is added stating “An emergency existing therefore, which
emergency is hereby declared to exist, this act shall be in full force and
effect on and after its passage and approval.” She stated the emergency
clause was necessary so the bill takes effect immediately.
MOTION Senator Stennett made a motion that S1372 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 will carry
this bill in the Senate.
H509 Relating to the Idaho Endowment Fund Investment Board; Amending
Section 57-720, to provide that Permanent Endowment Funds and
Earnings Reserve Funds may be combined or pooled for investment
Matthew Haertzen, Manager of the Endowment Investment Board, stated
that this legislation does two things. It allows the combination of funds for
investment even though their accounting will be maintained separately
and it provides the legal corrections necessary to change the regulations
to policies and therefore end the rulemaking process. Senator Little
asked Mr. Haertzen to explain the need for the retro-activity clause. Mr.
Haertzen
stated that they want to change custodian by July 1, 2004 for
immediate cost savings. Senator Little asked if the funds were already
transferred. Mr. Haetzen said the funds have not been transferred as
they are waiting for the completion of this legislation. Senator Calabretta
asked if regulations have public process and legislative review. Mr.
Haertzen
stated that policies are subject to the regulations and statutes
set by the Legislature.
MOTION Senator Little made a motion that the committee send H509 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.
H535 Relating to Telephone Solicitation; Amending Section 48-1002, to
define terms and revise provisions and procedures relating to telephone
subscriber listings on no call list; to provide that a National Do Not Call
Registry established by the Federal trade Commission may serve as
Idaho’s No Telephone Solicitation contact list.
Brett DeLange, Deputy Attorney General, stated that as of November,
there were 256,000 Idahoans signed up for the No Call List and it has
been a resounding success. Mr. DeLange said this legislation is
necessary to bring Idaho’s Do Not Call List law into conformance with the
recently enacted federal regulations, and to allow for Idaho’s Do Not Call
List law to continue to be enforced and implemented. He said it is
important for harmony between the state and federal law. He said it does
three things. It defines “established business relationship,”maintains one
list and then sets the time frame when there is a deemed violation. This
legislation also eliminates all fees previously charged. Senator Little
asked how terminating the fee would not end up with a negative fiscal
impact. Mr. DeLange said the Attorney General’s office has available
resources. He said the Federal Trade Commission will download to
Idaho. Senator Little said he thought the fee covered some costs. Mr.
DeLange said by now most of the start up costs have been covered and
now registration is done at the federal level rather than here in Idaho.
Senator Little asked what would happen if we didn’t make this change.
Mr. DeLange said Idaho’s legislation would then be inconsistent with the
federal law. Senator Stegner said his wife had signed them up and
asked when they have to renew. Mr. DeLange said the current law is for
three years and if we convert to the federal, the renewal extends to five
years.
MOTION Senator Stegner made a motion that the committee send H535 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.
Chairman Sorensen extended the State Affairs Committee’s appreciation
to Zack Gonzales for his service as Committee Page during the first half
of this session.
ADJOURNMENT There being no further business, the committee adjourned at 4:10PM.






DATE: February 23, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Senators Darrington, Geddes, Davis, Stegner,
Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Vice Chairman Richardson
MINUTES: Senator Calabretta made a motion that the committee accept as written
the minutes for February 20, 2004. Senator Little seconded the motion.
The motion carried by a Voice Vote.
Chairman Sorensen introduced Jessica Cook from Idaho Falls who will
serve as page for the Senate State Affairs Committee for the second half
of this session.
Gubernatorial Re-appointment of Sandra Twiggs of Blackfoot, Idaho
to the Idaho Commission on Human Rights to serve a term expiring July
1, 2006
Sandra Twiggs stated that serving on the Human Rights Commission
has been enjoyable and quite an education. She stated that the
Commission is well worth the time and effort as they perform as a watch
dog for victims of discrimination in Idaho. She said although the number
of cases is increasing, the staff is doing an effective job of facilitating.
Senator Stennett asked how often they meet. Mrs. Twiggs said about
four times per year. Senator Stennett asked who has the final authority
in these cases. Mrs. Twiggs said the Commission votes on acceptance
of the conclusion of the investigator. However, at the end of the case
there is a right to sue clause.
S1374 Relating to the retail sale of liquor by the drink; Amend Section 23-953, to
further define racing facility to include Motorsport Racing
Chairman Sorensen announced that Senator Compton has asked the
committee to hold S1374. She said that without objection, the bill will be
held. There was no objection.
SCR126 Senate Concurrent Resolution; To support the state of Israel
Senator Sweet stated that this bill is to offer support to Israel as they
struggle against terrorism. It says that we support Israel’s right to self
defense and urges the parties in the Middle East to work for peace.
Allen Gorin, the Executive Director for Idahoans for Israel, stated that
their group is very politically and religiously diverse with many different
community leaders. He said the United States and Israel have a lot in
common particularly their love of freedom. He said there has been a
psychological war against Israel and they need our support. He said
passage of this bill would help boost Israeli morale as well has improve
Idaho’s image to the world. Larry Eastland from Idahoans United for
Israel, said the Middle East has been a hot spot for decades but there is
a special relationship between the United States and Israel. He said the
United States has an enormous stake in the survival of Israel. He said
this bill also condemns terrorism and they support this resolution.
Senator Calabretta asked what is the political and religious relationship.
Mr. Eastland said that although it is not a religious question, it is difficult
to separate the Jewish people from Israel. He said on the survival of
Israel, we are united. Senator Calabretta asked if any part of the bill
speaks to the Palestinian State. Mr. Eastland said a Palestinian State is
not addressed in this resolution. He said Israel must have secure
borders for a Palestinian State to succeed. Dennis Mansfield has
worked with the International Christian Embassy which takes groups of
visitors to visit Jerusalem. He read from a letter addressed to Senator
Sweet from Malcolm Heading of their organization. The letter
encouraged Idahoans to show Christian love and respect to the Jewish
people. Senator Calabretta asked how many faiths are identified with
Jerusalem on those tours. Mr. Mansfield said Jerusalem is presented
as a city of many faiths as nothing else would be accurate.
MOTION Senator Davis made a motion that the committee send SCR126 to the
floor of the Senate with a do pass recommendation. Senator Stennett
seconded the motion. The motion carried by a Voice Vote. Senators
Little and Stegner voted no.
S1321 Relating to Abortion; Amending Section 18-604, to revise definitions, to
provide a cause of action arising from statute or otherwise to any person
injured by causing or performing of an abortion
Representative McGeachin stated that during the 2003 Legislative
Session it was brought to her attention by the Cornerstone organization
that Idaho’s Informed Consent Law (18-601) needed improvement. She
presented a handout which identified differences between the existing
code and S1321. She said their intent is to protect women and save
lives. She said this bill requires that women receive additional
information and that they have a better understanding of the possible
physical and psychological consequences of an abortion. Senator
Stennett
questioned that the fiscal impact statement gave no
consideration to the potential for a lawsuit and the associated cost. He
said the language on page three has been found unconstitutional.
Representative McGeachin deferred to Clint Miner, an attorney in
Boise, Idaho, who was involved in the drafting of this legislation. Mr.
Miner
stated that it was not his understanding that the language in this
bill is unconstitutional and in this state similar language was held
constitutional in the “parental consent” dispute. Senator Stennett
referred to page three, sub-section four, and asked who is the “any
person.” Mr. Miner said that language refers to people who have interest
in certain matters and it depends on the circumstances and the “claimed
wrong.” Senator Stennett said that is not clear in the language and it
appears that “any person” could have a very broad interpretation. Mr.
Miner said it refers to the person “injured” by violation of the statute and
they have to have a relationship to the person and injury. Senator
Stennett stated that any person could sue at any time and therefore if I
am very upset about abortion, I would have cause of action. Senator
Calabretta asked if any physicians or the medical community were
consulted during the drafting of this bill. Representative McGeachin
said that the department of Health and Welfare has consulted with the
Idaho Medical Association during preparation of the updated
informational brochure. Senator Davis stated that although it is true that
any fool can file a lawsuit, ultimately it is determined whether you have
standing or you don’t get far.
David Ripley, who represents Idaho Chooses Life, said that they have
considered the complexities of this legislation and their position is that
the current law is flawed but S1321 weakens the current provisions of
law. He provided the committee with several handouts identifying their
concerns. He said they are concerned about the change in the definition
of “medical emergency” and they feel S1321 loses round. He said
although they acknowledge that the current law has some strange
language, they feel this new bill opens the “trap door” of telephonic
counseling. He said this bill authorizes phone delivery of counseling by
unqualified personnel and there will be no way to check compliance of
disclosure. He said that with no role for the Department of Health and
Welfare, women will be put in further jeopardy. He advised the
committee they have concerns about S1321. Senator Darrington asked
if their organization was consulted in the drafting of this bill. Mr. Ripley
said they were not. Senator Calabretta asked if the revised abortion
disclosure pamphlet could be done on the web site. Mr. Ripley said they
did not know what to conclude about the web site but perhaps if it was
used in addition to the other elements it may be alright. He said the
quality of the pamphlet and the face to face consultation with the
physician are critical. Senator Calabretta asked if a second required
face to face consultation was an obstacle. Mr. Ripley said shifting the
burden on the woman and away from the physicians and the Department
of Health and Welfare is a concern.
Marie Hoff, from Catholic Charities of Idaho, read a letter from Kathleen
McBride Curtis who works with Project Rachel, a program that assists
people who have been hurting after involvement with an abortion. The
letter stated that some of the post-abortion symptoms women have
include: long term major depression, anxiety, flashbacks, triggers that
provoke panic, nightmares, relationship difficulties, emotional numbing,
self-blame when experiencing infertility and complicated grief. In the
letter, Ms. McBride Curtis said she feels very strongly that a woman has
the right to know all of the risks she is facing, and the extent of possible
adverse affects of the abortion procedure, both physically and
psychologically. Senator Stegner asked if they support the current
statute 18-609 which allows the attending physician to withhold
information in certain situations. Senator Calabretta asked if there is a
need for the doctor to have the exclusion option in very fragile situations.
Marie Hoff said she would have to defer on legal interpretations of the
law. Senator Calabretta said that she had experience in dealing with
the difficulties that young mothers experience when they decide to give
birth to a child . Ms. Hoff said their agencies do help with crisis
pregnancies.
Marty Durand, who is legislative Council for the American Civil Liberties
Union of Idaho, stated that government-mandated delays serve no
purpose other than to make obtaining an abortion more difficult,
dangerous, and expensive for the women who are least able to bear the
burden of an unintended pregnancy. She said the harm of such
restrictions is felt most by those who have the fewest resources­poor,
rural women, working women without insurance or sick leave, and
battered women. She said this bill was not created to protect women’s
health. It will instead make a woman’s very personal decision even more
difficult. Biased counseling laws intimidate women and discourage them
from seeking medical care and exercising their reproductive rights. They
urge this bill be held in committee. Senator Davis asked how he might
understand their opposition to the informed consent in this bill when they
had supported consent on the tattooing legislation. Ms. Durand said
informed consent already occurs under the current legislation and it is left
to the physician to provide medically accurate information. Senator
Stennett asked if Ms. Durand had any idea what the cost might be to
defend this legislation. Ms. Durand was not sure but she said the states
cost to defend a case several years ago had been about $400,000.
Kerry Uhlenkott from Right to Life, provided a handout which gave a list
of the nineteen states that have informed consent laws. She said that
true informed consent has resulted in a decreasing number of abortions.
She said it is never preferable to have a vulnerable woman subject to the
high pressure business of the abortionist. They are concerned about
loopholes in the current statute. Senator Darrington asked why all the
pro-life community had not been involved in developing this legislation. .
Ms. Uhlenkott said it was her understanding that the early draft was
presented to all including Mr. Ripley.
Chairman Sorensen announced that since it is necessary for the
leadership members of State Affairs to leave and there are more people
who wish to testify, we will carry over the final testimony for S1321 until
Friday February 27, 2004.
ADJOURNMENT The meeting was adjourned at 4:30PM.






DATE: February 25, 2004
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 committee accept as written
the minutes for February 23, 2004. Senator Stegner seconded the
motion. The motion carried by a Voice Vote.
Committee Vote Gubernatorial Re-appointment of Sandra Twiggs of Blackfoot, Idaho to
the Commission on Human Rights to serve a term expiring July 1, 2006
MOTION Senator Stennett made a motion that the committee recommend to the
full Senate the Re-appointment of Sandra Twiggs to the Human Rights
Commission. Senator Richardson seconded the motion. The motion
carried by a Voice Vote.
Gubernatorial Appointment of Tom Katsilometes of Pocatello, Idaho
to be State Athletic Commissioner to serve a term expiring January 7,
2005
Tom Katsilometes stated that he was a former County Commissioner for
some many years and he has served as a referee for professional fights
for thirty years. He is working on regulating boxing. He believes we should
keep it safe. He will also work on regulating professional wrestling and
mixed martial arts.
Chairman Sorensen stated that the Committee Vote on Mr. Katsilometes
appointment will be held at the next State Affairs meeting.
RS14189 Concurrent Resolution; Approving Administrative Rules that impose
a fee or charge
RS14190 Concurrent Resolution; Approving and extending Temporary Rules
reviewed by the Legislature
Carl Bianchi, Director of Legislative Services, stated that these two bills
are the annual omnibus resolutions which are necessary to impose the
Fee Rules and extend the Temporary Rules.
MOTION Senator Darrington made a motion that the committee introduce for print
RS14189 and RS14190 and send them to the floor of the Senate with a
do pass recommendation. Senator Calabretta seconded the motion.
The motion carried by a Voice Vote.
S1373 Relating to the Idaho Employer Alcohol and Drug-Free Workplace Act;
Amending Chapter 17, addition of new section 72-1717; to provide
certain eligibility requirements for contractors relating to state
construction contracts
Jill Chestnut, Executive Director of Drug Free Idaho, stated that this bill
is an addition to the Idaho Employer Alcohol and Drug-Free Workplace
Act Title 72, Chapter 17; to provide certain eligibility requirements for
contractors and sub-contractors relating to state construction contracts
and to require that affidavits verifying compliance with specified provisions
be submitted with bids for state construction contracts. She said alcohol
and drugs contribute to workplace accidents and this bill will require
contractors and sub-contractors to have a Drug-Free Program in order to
work for the State of Idaho. Senator Stennett asked about the cost of
implementation of this plan. Ms. Chestnut said the cost of each testing is
about $40 and the frequency is up to the employer. Senator Stennett
asked about the $200 fee from Drug Free Idaho if they are used. Ms.
Chestnut
said their $200 fee includes the initial evaluation, education and
training. Senator Darrington, who is on the Building Fund Advisory
Council, asked how much of a burden this change would place on the
Department of Public Works if they are required to certify all the
contractors hired by the state. Ms. Chestnut said they are asking
contractors to show that a plan is in place from this time forward. Senator
Darrington asked who sets the standards and how much work it will
mean to ensure compliance. Ms. Chestnut stated that currently
Workmens Compensation certifies these programs in order for the
business to qualify for the 5% discount. Chairman Sorensen said that
once this bill is passed, when a bid is submitted, they must state that
there is a Drug Free Program in place. Senator Little asked who would
do the certification of those who submit bids. Ms. Chestnut stated that
there are several third party providers who do certifications including Drug
Free Idaho. Senator Little said that Drug Free Idaho (Title 72) is a
voluntary program and he asked if this is the only mandatory section. Ms.
Chestnut
stated that at this time it would be for public works contracts
only. She said there are so many different contractors working side by
side that they can be impacted by one another. Senator Little asked if
there shouldn’t be some concern that critical public works projects might
be held up if the participating contractors are not certified. Ms. Chestnut
said that the program does not take effect until July 1, 2004 and is not
retroactive. Senator Calabretta asked if there are similar requirements in
Federal law. Ms.Chestnut said laws are in place in many states and the
Ohio plan was used in drafting this bill. Senator Stennett asked about
the testing for alcohol and if a guy had a couple beers after work, it would
be detected negatively. Ms. Chestnut said the alcohol is determined by
breath alcohol while on the job.
Pat Kershisnik from Petra Construction, stated their company has had a
Drug Free program for five years. He said most general contractors have
implemented a plan by now. He said the problem is more with the sub-contractors. He said Title 29 has some provisions under general safety.
Mr. Kershnisnik said he is not that concerned about the additional
responsibility on the contractors. He said it would not actually entail that
much additional paperwork during the bid process. He said there is an up
front expense in the baseline testing of existing staff and then after that
they do pre-employment testing. He said the positive results of better
productivity, less absence, and improved product outweigh the negatives.
Senator Stennett asked if they provide health insurance. Mr. Kershisnik
said they do. Senator Little asked the definition of a sub-contractor. Mr.
Kershisnik
said they are tradesmen such as painters, plumbers and
roofers. Senator Sorensen stated that in reality, jobs done in a Drug Free
environment, are less costly and have fewer accidents. She said that
participation can be voluntary when it is an independent business, but
when the state is the employer, we should determine the Drug-Free
requirement.
MOTION Senator Stennett made a motion that S1373 be sent to the Fourteenth
Order for amendment. Senator Little seconded the motion. The motion
carried by a Voice Vote. Senator Sorensen will sponsor this bill in the
Senate.
S1260 Relating to the Idaho Law Enforcement and Firefighting Medal of
Honor
; Amend Title 67, addition of Chapter 88, to establish the Idaho Law
Enforcement and Firefighting Medal of Honor
William Douglas, Kootenai County Prosecuting Attorney, stated that this
legislation will establish a Law Enforcement and Firefighting Medal of
Honor program in the state of Idaho. He said this program will recognize
public servants for extraordinary acts of valor and heroism. He said that
since 911, their has been a growing recognition of the contributions these
people make to society. He said the Attorney General will chair the
committee. He said this bill is supported by Director Charbonneau and all
the law enforcement organizations. He said these types of programs help
to provide closure to the families of survivors. He provided the committee
with letters from Captain Wayne M. Longo, Medal of Valor recipient in
Idaho and from Detective Chad Huff, the spouse of Linda Huff who was
killed in the line of duty in 1998.
Mr. Fox, the Washington State Attorney General, stated that they started
this type program in Washington in 1994. He said at first they had no
budget but then it became a line item for $25,000 on the Governors
budget. Since then they have had eight ceremonies and 300 medals
have been given. Mr. Fox stated there are many benefits which include
the coming together of the various honor guards as a whole and the
bringing together of dignitaries of the state to recognize heroic citizens.
He said this program provides closure to families of deceased officers and
provides an opportunity to communicate with the national event in
Washington D.C. Mr. Fox said it benefits everyone to never forget the
sacrifices that are made.
MOTION Senator Calabretta made a motion that the committee send S1260 to the
floor of the Senate with a do pass recommendation. Senator Little
seconded the motion. The motion carried by a Voice Vote.
H502 Relating to Telecommunication Regulation; Amend Section 62-604, to
prescribe an election by the corporation to govern applicability of the
Chapter to certain telephone corporations
Senator Davis requested that if it is possible, President ProTem Robert
Geddes, would like to be present in committee during the vote on this bill.
Bill Roden who represents Quest Communications introduced Jim
Schmidt, the President of Quest Communications of Idaho. Mr. Schmidt
said world telecommunications is changing rapidly and there is no single
technology or single provider as existed in 1913. He said there are 58
competitors in Idaho. The markets have been determined to be open
according to the Federal Trade Commission. He said there is urgency
behind the necessity for change in their business. He said wireless
providers now consider themselves land line replacement companies. He
said more people are going wireless. He said this is a dramatic issue
facing their business today. Recently, they lowered the cost of their land
line package. Mr. Schmidt said as of yesterday they are allowing DSL
high speed access without requiring a voice line. They are vigorously
competing for business. He said there is a myth about rate hikes. There
is no immediate plan to raise rates even though their company cannot
predict the future. He said their current operations does not guarantee
there will be no increase. They have lost 54,000 customers in the last two
years. Mr. Schmidt said it is a myth that this change would be bad for the
elderly, the rural, and the poor. They value their elderly customers and
have done several significant price reductions for the basic package. He
said they have invested heavily in Idaho rural areas, which include four
call centers which employ 900 people. They are proud of their history and
track record in Idaho.
Senator Davis recalled that after the Public Utility Commission closed
their file, a motion was filed asking to re-consider and then Quest
volunteered no rate increases for 2004 and that they would limit
residential increases up to 2007 in order to give a good faith pledge. He
asked Mr. Schmidt if he could make a similar commitment now. Mr.
Schmidt said he had no intention of raising the basic rate in 2004 and
any changes would be no different than those of any other company. He
said a competitive market place already regulates them. In a multi
provider environment, it does not make sense to regulate one company.
He said when they looked at the PUC back to 1998, they had allowed
other companies to charge $24.10 so that must be an acceptable rate.
Mr. Schmidt said if you need a guaranteed affordable rate, they will
agree to match the rates of others. They offer a warranty because they
can’t envision the scenario of an increase. Senator Davis questioned the
54,000 lost customer figure and acknowledged that the market has
changed and since his business had needed the DSL service, he had to
look to an alternative service. Mr. Schmidt stated that from October 2001
to October 2003 the actual decrease in their number of lines was 54,000.
He said over that same period, Idaho was the seventh fastest growing
market. So it is also evident that Qwest didn’t get some of the new
customer lines.
Chairman Sorensen announced that due to the time constraints, it would
be necessary to carry over the remaining testimony on H502 until next
Wednesday, March 3, 2004.
H624 Relating to telephone corporations; Amend Section 62-617, to clarify
and limit the exemption from antitrust liability for telephone
corporations that have elected regulation pursuant to Chapter 6, Title 62
The hearing for this bill was also delayed until March 3, 2004.
ADJOURNMENT In order for the Senators to return to the Senate Chambers the committee
adjourned at 4:25PM.






DATE: February 27, 2004
TIME: 3:00 pm
PLACE: Gold Room
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 February 25, 2004. Senator Richardson seconded the
motion. The motion carried by a Voice Vote.
Gubernatorial Appointment of Bradley T. Foltman of Boise, Idaho as
Director of the Division of Financial Management to serve a term at
the pleasure of the Governor
Bradley T. Foltman, Director of Financial Management for the
Governor’s Budget office, stated that he was raised on a dairy farm and
developed a strong work ethic. He reviewed some his life and
educational experiences. Mr. Foltman said he became familiar with
important state issues while working as an analyst for Health and Welfare
and as a Bureau Chief for the Fish and Game Department. He said
budgets can work up and down and he feels it is important that if a scale
back or reduction is necessary, it should be made known in a specific
way. Senator Richardson expressed appreciation to Mr. Foltman for his
good work with the Joint Finance and Appropriations Committee (JFAC)
and asked what he sees as he looks forward. Mr. Foltman said we have
a goal to manage and we need to have a multi year revenue plan. He
said we know our target and will try to manage it. Senator Calabretta
asked if the Governor’s Budget Staff and JFAC have a duplicate
assignment. Mr. Foltman said that although there is some overlap of
information, the uses of that information are different. He said the support
for the Executive Branch and the agencies is a year round function.
Chairman Sorensen announced that the Committee Vote on Mr.
Foltman’s appointment would be held at the next State Affairs meeting.
Committee Vote Gubernatorial Appointment of Tom Katsilometes of Pocatello, Idaho to
be State Athletic Commissioner to serve a term expiring January 7,
2005
MOTION Senator Darrington made a motion that the committee recommend to
the full Senate the Gubernatorial appointment of Tom Katsilometes to be
State Athletic Commissioner. Senator Stennett seconded the motion.
The motion carried by a Voice Vote.
Chairman Sorensen asked Vice Chairman Richardson to chair the
committee while she presented a bill.
RS14205C1 Relating to Election Campaign Contributions and expenditures; Amend
67-6602, to further define the term “candidate” and declaring an
emergency
Chairman Sorensen stated that the purpose of this legislation is to
further define the term “candidate” and to stipulate that contributions
received as an incumbent candidate, shall not be in excess of the
prescribed contribution limits for the subsequent election by which the
incumbent candidate’s name would first appear on the ballot. She asked
that RS14205C1 be introduced for print by the committee.
MOTION Senator Davis made a motion that the committee introduce to print
RS14205C1. Senator Stegner seconded the motion. The motion carried
by a Voice Vote. Vice Chairman Richardson returned the chair to
Chairman Sorensen.
RS14213 Relating to Regional Public Transportation Authorities, Amend Sect.40-2113, to harmonize it with the provisions of Chapter 24, Title 63
Roy Eiguren representing Valley Ride Regional Transportation Authority
presented this bill for Senator Ingram. He stated that the purpose of this
bill is to clarify the fact that regional public transportation authorities are
exempt from taxation and to ensure that as political subdivisions of the
state of Idaho, regional public transportation authorities are treated like
other political subdivisions of the state of Idaho with respect to the
imposition of fuels taxes. He asks that this legislation be introduced to
print and sent to the Transportation Committee.
MOTION Senator Darrington made a motion that the committee introduce to print
RS14213. Senator Geddes seconded the motion. The motion carried by
a Voice Vote.
RS14214 Joint Memorial to President of the United States and Congress; that as
they complete highway and transit re-authorization legislation, they should
extend the concept of the federal lands upward match adjustment into
additional areas in the transit program
Mr. Eiguren stated that this Joint Memorial is a request to the President
and Congress of the United States which makes requests regarding the
allocation formula by the federal government for mass transit. He
requested it be introduced for print and directed to the Transportation
Committee.
MOTION Senator Stennett made a motion that the committee introduce for print
RS14214. Senator Calabretta seconded the motion. The motion carried
by a Voice Vote.
RS14215 Concurrent Resolution; Authorizing the Legislative Council to appoint a
committee to undertake and complete a study of Public Transportation
and related air quality issues.
Mr. Eiguren stated that this bill is a Concurrent Resolution directing the
Legislative Council to appoint a committee to undertake and complete a
study of public transportation and related air quality issues in Idaho.
MOTION Senator Calabretta made a motion that the committee introduce for print
RS14215 and return it to the State Affairs Committee. Senator Stegner
seconded the motion. The motion carried by a Voice Vote.
MOTION Senator Geddes asked if a motion was in order. Chairman Sorensen
said a motion was in order.

Senator Geddes made a motion that HJR9 be scheduled for a hearing at
the next meeting of the State Affairs Committee. Senator Davis
seconded the motion.

Chairman Sorensen stated that before the vote is taken to place HJR9
on the agenda for consideration she would like to make a statement. She
said that when she made the decision to not put this bill on the agenda,
she was aware that there are procedures that could be used in order to
bring it forward in committee as well as in the full Senate. She said it is
with that in mind that whatever is the will of the committee she will abide
by it. She stated that she stands strongly on her decision. She stated that
the use of this motion underscores the fear that exists amongst our
legislators. The use of this motion underscores how this issue has been
allowed to become the defining test for members of our body. The use of
this motion underscores the lack of trust in our Supreme Court. She said
there is fear in our communities. Fear that our Supreme Court will not
uphold the will of the people expressed in our state laws. She said it is
our responsibility as leaders to rise above that fear­not to succumb to it.
Chairman Sorensen stated that in 1996, the Idaho Legislature passed a
law defining marriage as between a man and a woman. The only reason
to support the motion to hear HJR9 is if you believe that our Supreme
Court, in this conservative state, would overturn that statute. She said the
bottom line is then, that you believe, that our Idaho government is so
precarious that we do not trust our Supreme Court and that we are not
willing to stand as leaders in the State and affirm our belief in our state
government. Chairman Sorensen said the downside of the choice to put
HJR9 on the agenda and if it prevails and therefore is put on the
November ballot is huge. It will merely fuel that fear. We will experience
divisiveness. It will pull the state apart not pull the state together. It will
reverse the positive steps of diversity that we have seen in the last few
years. She said it will force an expensive and time consuming lawsuit.
She stated that it would draw our attention away from the serious state
issues that we have at hand. And it would also renew the past negative
media attention that Idaho has received nationally. Chairman Sorensen
stated that she does not believe our Supreme Court is going to overturn
our defense of marriage statute. And therefore, she asked the committee
to support her and vote no on putting HJR9 on the agenda for
consideration. She said a vote for this motion is a vote against the
Supreme Court. She said a vote against this motion is a vote upholding
the belief in the strength of our government.
Senator Davis stated that he wanted to join in the expression of wanting
to maintain an appropriate presentation of this bill in Idaho. He said that
he does not know the intent of the sponsors. Senator Davis said that the
outcome of a court challenge is not so certain. He stated that Idaho has,
in its Constitution, an expanded privacy right which is significantly more
than what other courts have relied upon. He said that in light of that
aggressive language in our Constitution, he believes an Appellate Court
would be compelled to take a closer look at the issue than perhaps we
might initially think. He said that he frankly thought that this was not the
appropriate section to be amended and other language is better than that
used. He is willing to consider the resolution.
Senator Geddes stated that the motion he just made was not intended to
reflect negatively on the Chairman. He said they have worked together
for years and it will be very difficult to see her leave. He said that he
agonized over this decision as it is not generally done. He said he lost
sleep from his concern about going against the standard that has been
developed in this body. He said this motion is within the procedure
allowed. He said if the bill is not heard concerns will still exist and it may
look like we have not done due diligence. Senator Geddes said if it is
heard in committee, we still don’t know the outcome. He said if the
committee allows the bill and sends it to the Senate, the will of the Senate
will be expressed. He said an amendment to the Constitution requires a
two thirds majority and then it becomes a ballot measure. Senator
Geddes said that it is a very thorough process. He said if the bill stops in
committee the process does not occur. He said the full Senate and the
voters of Idaho should make the decision. He said he urges support of a
hearing to allow the voices of the people to be heard.
Senator Stennett said this is a highly unusual move. He said he has
never seen this maneuver around the chair before in a decade in the
Senate, as the committee process is sacrosanct. He said he has had
more than his share of bills buried in committee drawers.
Senator Calabretta stated that she has never experienced this in her
previous legislative history. She said if we took due diligence to the ballot
measure with every Joint Resolution, we would be very busy people. She
said it is not enough to say that any idea should be taken to the people.
She said the people in her district feel that this bill is a mis-use of time
and resources. She said the Legislature has more immediate problems to
take on including the increase in joblessness. She said we should ask
what is the magnitude of the problem here in Idaho and why is this action
being promoted. Senator Calabretta stated that this is not our highest
priority.
Vice Chairman Richardson said that this has been a difficult decision as
he has the greatest respect for the Chairman. However, he feels this will
strengthen our laws. He said people want to vote on this issue and there
are things taking place in the world around us that we cannot ignore.
Senator Stegner said he is voting against hearing HJR9. He said the
legislative process is very cumbersome and full of obstacles. He said in
that sense, it is extremely frustrating to some people. He said that it
works that way to protect the minority from an over zealous majority. He
said he has faith in the Constitution of the state of Idaho. He said a
Constitutional Amendment requires the two thirds majority of both houses
and then a vote of the citizenry. He said the process of committee review
is part of an overall system that works very well. He said he supports the
Chairman against the hearing of this bill.
Senator Little stated that if he thought for one minute that the sanctity of
marriage was under attack he would vote in support of the hearing. He
said I have faith , like the Chairman, in the Supreme Court and I have faith
in the people that will be in these seats after us. He said he did not think
this legislation is necessary. Senator Little said this is not Massachusetts
or California and the problems seen elsewhere are not here in Idaho. He
said he will vote to support the Chairman.
VOTE A Roll Call Vote was requested for the vote on whether the committee
should schedule a hearing for HJR9. Senators Sorensen, Stegner, Little,
Stennett and Calabretta voted nay. Senators Richardson, Darrington,
Geddes and Davis voted aye. The motion failed.
S1321 Relating to Abortion; Amending Section 18-604, to revise definitions, to
provide a cause of action arising from statute or otherwise to any
person injured by the causing or performing of an abortion
Representative McGeachin announced that due to time constraints she
would allow Julie Lynde from the Cornerstone Institute of Idaho to speak.
Senator Stennett asked if the various different groups had now had time
to get together. Representative McGeachin said that they had not.
Julie Lynde stated that this legislation is necessary to address specific
issues to provide the knowledge a woman needs when making a decision
about an abortion. She said informed consent will help to minimize the
trauma often experienced . She said this bill creates a mechanism for
women to get information without coercion. Ms. Lynde stated that women
need the honor and dignity of informed consent.
Dr. Duane Sinclair, an obstetrician and gynecologist, spoke in opposition
to S1321. He said it is an attempt to harass women, some of which are in
extremely unfortunate situations. He said they are conscientiously
seeking the best solution for the child and their family. He said currently
90-95% of abortions are done in the first trimester which is important. Dr.
Sinclair referred to Dr. C. Evert Koop who stated that after a study of the
long term effects of abortion, there was no conclusive scientific evidence
of the psychological impact. He said no one has the right to impose their
religious beliefs on others.
Jeanette McAllister, a Registered Nurse and President of Right to Life of
Idaho said many experts say that the typical abortion is performed in an
assembly line fashion where there is no doctor-patient relationship. She
said she has worked with many young women who would have made a
different decision if they had informed consent. The support S1321.
Ellie Merrick, Director of Public Affairs for Planned Parenthood of Idaho,
stated that they oppose S1321. They do not oppose informed consent
but they feel this bill is unnecessary. They oppose the penalty section
which imposes civil liability on the physicians. She said currently, there
are only four providers of abortion in Idaho. They also feel the right to
privacy of the woman is compromised which doesn’t help but rather hurts
the woman.
Ralph Flager, the Deacon from Holy Apostles Catholic Church, said they
respect life and support full and complete information for women. He said
Project Rachel deals with those who have adverse effects from having
had an abortion. They support S1321.
Lee Flinn, the Program Director, for the Idaho Women’s Network, said
they believe in full information but they oppose this legislation as
unnecessary. She stated that current Idaho law already provides
adequate information to the woman. She said that current law does not
hold physicians and hospitals liable. She said that under S1321, anyone
can sue, perhaps even grandparents for their loss. She said they oppose
a government mandated waiting period. She stated that the required
information is being provided and physicians must be trusted.
Toni Lawson, Executive Director of the Nurses Association said they
oppose S1321. She introduced Judith Murray from the Idaho Nursing
Association. Ms. Murray said she has in an abortion clinic and she does
not believe it is used as birth control. She said to put abortion out of
business, more information is needed about family planning.
Nathan Palmer spoke in opposition to S1321 as he supports the current
law which has been the standard for twenty years.

Barbara Gaugh, Associate Director of Generation Life, said she did not
receive informed consent before she had an abortion. She supports
S1321 with the new proposed amendments.

Chris Troopis an attorney with Idaho Chooses Life, said the new
amendments will improve the bill. He said we have had a law for twenty
years but it has not been enforced and this law does nothing to improve
enforcement. He said the possibility of lawsuits is a cruel hoax as the
victims may find that they have no legal remedy. He would like the
committee to seek to have the current law enforced. Chairman
Sorensen
asked where the data is that indicates the current law is not
enforced. Mr. Troupis said that when they asked Health and Welfare for a
report, out of 10,000 procedures they could only document about 200
cases.

Senator Brandt concluded by telling the committee that this new
legislation will help ensure that pregnant women will get accurate
information. He said it is frustrating when perfection gets in the way of
doing good. They have had two other bills printed in the Health and
Welfare Committee which ended up needing further work.. He said they
are willing to amend this bill further and ask that the committee send it to
the Fourteenth Order.

Clinton Miner, Attorney, then reviewed the handout which described the
newly proposed amendments to S1321. He said they address the
concerns brought up to the committee including informed consent and the
emergency clause.

Senator Calabretta stated that unplanned pregnancies are not always a
tragedy. She said there has been a tremendous sounding here about
abortions. She said women who have their babies also have reactions so
other answers do not leave a woman unscarred. She asked if there is as
much care and support for the women who make other choices. She said
this is not a balanced approach which she can support.

MOTION Senator Little made a motion that the committee send S1321 to the
Fourteenth order for amendment. Senator Davis seconded the motion.
The motion carried on a Voice Vote.
S1376 Relating to the American Heritage Monument; Amending Chapter 16,
Title 67, by the addition of a new section, to set forth legislative findings,
to provide for the display of the American Heritage Monument in the
Capitol
Senator Sweet presented a folder to each committee member which
provide information on the development of the American Heritage
Monument. He said it is a permanent display which can be used as a
unique tool to educate children, citizens and tourists. The handout also
contained a legal opinion from the State Attorney Generals office and a
decision rendered by Judge Lodge in 1995.
Rabbi Fink spoke on behalf of himself and his congregation in Boise. He
said he has no problem with the American Heritage Monument as an
idea. He was raised in Virginia and has no problem with having an exhibit
in the Capitol, but he does support a strict separation of Church and
State. He can recite the Ten Commandments. He stated that there are at
least three versions of the Ten Commandments and he would like to know
which version the state wants to embrace. He said the state has no
business choosing a version and that we should not try to make an idol
out of the Ten Commandments. Senator Davis stated that the actual bill
doesn’t say it has to include the Ten Commandments but rather that the
“essence” be contained in the monument. He asked if Rabbi Fink would
consider that.. Rabbi Fink said he thought the essence of the Ten
Commandments is to love your neighbor as you love yourself and he said
if they put that up it would be no problem.
Gloria Pfost, speaking as a citizen, said there seems to be a movement
to re-write our history. She said her daughter is in college and is being
told negative things about our forefathers. She stated that we need to
take a stand about our foundation. We cannot all do what is right in our
own eyes. We need reminders that we are not the end all. She said we
need to humble ourselves.

Gary Bennett, a citizen from Emmett, presented a handout to help the
committee to determine what are the most important historical documents.
He recommended several other important documents including some
from Greek History. He said there is no emergency existing and it is
important to take the time to develop the monument in a historical and
scholarly manner.

Jean Luze Revail speaking for herself, is in support of S1376. She is in
support of the bill mainly because of the Ten Commandment Monument
at Julia Davis Park and in hopes that it would be included. Members of
her family have served in numerous military actions. They were all
Christians who fought for their country. She asked the committee why
should they fight if we plan to remove all evidence of Christianity.
Marty Durand from the American Civil Liberties Union, stated that they
oppose S1376 as it is an attempt to place a religious monument on public
property. She said the government must remain neutral. She stated that
one of the first questions a court will ask is does the monument
discriminate among religions. She said the “lemon” test will ask if the
monument fosters government entanglement. She stated that similar
Heritage Displays have been struck down by the courts. She said that
now the ACLU has the resources to pursue litigation thru the appeal
process. Mrs. Durand stated that the Idaho Constitution is very explicit
and they believe the proposed display is religious in nature. She said
government cannot abandon religious neutrality.
Larry Laudin speaking for himself said that he supports S1376. He said
this monument supports the American way and during these difficult
times, our western culture needs support. He said that he is an agnostic
and he does not see the religious connotations in this bill.
Allen Gorin, representing the Tora Tradition, spoke in favor of S1376.
He said the focus on the Ten Commandments identifies a common
denominator and it will help to promote a moral culture. He offered
several handouts which were letters from Idaho’s Congressman
identifying their support.
Reverend Brian Fischer representing the Pastors Policy Council, spoke
in favor of S1376. He said our coin and currency say “E Pluribus Unum”
that is “Out of many­One.” From diversity we have formed into one
people. He said we share a common belief that God governs in behalf of
man. He said in the Preamble of the Constitution, “We the people” are
grateful to Almighty God. He stated that each person possesses rights
from God that no government can take from the people. He said we are
“One people­under God.”
Pat Burnham. a teacher who taught early American History for years,
encouraged the committee to include the Constitution in this display. She
said students would appreciate a display of important documents. She
stated that our history is undergoing change and we are under attack to
change our history. She said that as a civilized society, we may
undermine ourselves if we don’t adhere to law and order and that its’
basis is the Ten Commandments.
Warren Bean, a citizen who retired from the Boeing Company, said he is
concerned about the spatial issues of such a monument. He said there is
no place for such large panels in this Capitol Building. He said the proper
place may be in the State Library, since where it is located, is a key issue.
Tammy Seydel stated that the idea that there is a wall of separation
between the Church and state is a myth. She said we should now chose
the truth. She said that on the top of the Washington Monument are the
words “Laus Deo” which means praise to God and there is a Bible in the
Washington Monument. She said we should keep what we have.
Senator Sweet concluded by saying that there are 150 documents that
could be considered for this Heritage Monument. He said the Design
Committee will have to make some tough choices. He said the Fifth
Circuit Court ruled that a monument on the Texas State grounds is
constitutional. Senator Stennett asked Senator Sweet which version of
the Ten Commandments he would recommend that the Design
Committee choose.
William VanTagan, Deputy Attorney General, said that their office has
reviewed this proposal. He said they cannot predict what the final form of
such a monument will be. He said the entanglement issue will have to be
considered carefully. He said where the donations are coming from is a
consideration. However, as of now, on the face they believe it is
constitutional. Senator Calabretta asked if when we talk about legislative
history, does public testimony become part of that record. Mr. VanTagan
said that depends on the weight given to that testimony by the legislature.
He said Constitutional Debates have been used in the past but
determining legislative intent can be very difficult.
Senator Davis stated that he has some concern about the Design
Committee getting unilateral authority and perhaps we should include the
Capitol Commission in the final review. He recommended that language
be added to paragraph three that the final Design Committee
recommendations be submitted to the Capitol Commission so they can
work together.
Senator Calabretta stated that the intent of this legislation has been
reported to be of a religious nature and the testimony today has supported
that. She feels it is critical to maintain the separation of Church and
State.

Senator Stegner said they have heard much talk about constitutionality.
He said he would prefer to error on the broad side of separation of church
and state.

MOTION Senator Davis made a motion that S1376 be sent to the Fourteenth
order. Senator Richardson seconded the motion.
Senator Stegner made a Substitute motion that S1376 be held in
committee. Senator Stennett seconded the motion.

A Roll Call Vote carried the motion to hold S1376 in committee.
Senators Sorensen, Stegner, Little, Stennett, and Calabretta voted aye.
Senators Richardson, Darrington, Geddes, and Davis voted nay.

ADJOURNMENT There being no further business, the committee adjourned at 6:05 PM.






DATE: March 1, 2004
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 for February 27, 2004. Senator Richardson seconded the
motion. The motion carried by a Voice Vote.
Gubernatorial Appointment of Bradley T. Foltman of Boise, Idaho as
Director of the Division of Financial Management to serve a term at the
pleasure of the Governor
Committee Vote Senator Little made a motion that the committee recommend to the full
Senate the appointment of Bradley T. Foltman as Director of the Division
of Financial Management. Senator Stegner seconded the motion. The
motion carried by a Voice Vote. Senator Richardson will sponsor Mr.
Foltman in the Senate.
S1375 Relating to bribery and corruption; Amend Section 18-1356, to prohibit
public servants from soliciting, accepting or agreeing to accept pecuniary
benefit from certain persons
Senator Ingram stated that the purpose of this legislation is to clarify the
prohibition on giving and accepting gifts to/by government officials,
including state legislators. He said all the recent problems with city and
county officials require that some legislative action is taken to reassure
the public. He said the language is being changed to now include
“government officials.” Chairman Sorensen asked if Section Four on
page one, was referring to campaign contributions. Senator Ingram said
the Sunshine Laws have their own set of statutes. Chairman Sorensen
asked for an example of a pecuniary benefit. Senator Ingram said an
example would be Blue Cross paying for an official’s trip to the Olympics
when a state contract was pending. Chairman Sorensen asked about
the North Idaho Tour. Senator Ingram said they have never had a
problem with that type of event. Chairman Sorensen said that since the
air fare and hotel are provided and there is interest in particular
legislation, it fits the description in the bill. Senator Ingram said the tours
are not a one on one situation but rather a group benefit. Chairman
Sorensen
asked the difference or distinction between the two. Senator
Ingram
referred to Line 36 where it states “for any one person.” Senator
Davis
stated that statutorily, a person, can also be defined as a business
or a corporation. He said “individual” is used in the statutes to mean a
single person. Senator Davis referred to the Legislative Tours and in
particular, the Aqua Culture trip, where they get information about various
regional state issues. He asked if that would be problematic after this
new legislation. He suggested perhaps the addition of another exemption
be added to the bill for Legislative Tours. Senator Ingram said the tours
have been done without a any problem, but he is not adverse to
suggestions for change to the bill. Senator Calabretta said that although
she has been on many such tours, she did not remember any “group to
group” promotions of specific legislation. Senator Davis stated that there
was never anything proposed as far as quid pro quo, but there was some
gentle arm twisting. He said the reality, historically, is that the words to
provide protection have been struck from the statute. Senator Calabretta
said that she sees value in the change to Section Two.

Former Senator Rod Beck ,speaking for himself, stated that he had
worked with Senator Ingram on this bill. He said they determined that the
language in Section Four needs to be struck as it leaves too wide of
capability to give and receive gifts. He said the new language was
actually in the bill from 1972 until 1990 and then different language was
inserted. He said the more recent language has created some perception
problems. He said Sub Section Two now addresses thousands of
employees. He said this statute presented problems during the Coles
trial. Senator Beck said as leaders we need to build up public confidence.
Chairman Sorensen asked how to deal with the Legislative Tours in light
of this legislation. Senator Beck stated that if the tour has a legitimate
state purpose, such as studying aqua culture, then legislative funds
should pay in order to maintain impartiality. Chairman Sorensen said
she was concerned about having to “super” analyze everything. Senator
Beck said the bill is clear that any public servant or official cannot take
gifts. The specific exceptions are laid out in the bill. Chairman
Sorensen
asked about accepting a plane ride home from Coeur d’Alene
with Boise Cascade. Senator Beck said if you accept the ride, you
should re-imburse them so there is no appearance of conflict.

MOTION Senator Calabretta made a motion that S1375 be sent to the floor of the
Senate with a do pass recommendation. The motion failed for lack of a
second.

Senator Stennett made a Substitute motion that S1375 be sent to the
Fourteenth order for amendment. Senator Davis seconded the motion.
The motion carried by a Voice Vote. Senator Stegner and Calabretta
voted no.

H511 Relating to the State Board of Land Commissioners; Amending 58-104, to provide that the State Board of Land Commissioners shall have
power to solicit bids and contract for work
George Bacon, the Operations Chief from the Department of Lands,
stated that the purpose of this bill is to give the State Board of Land
Commissioners the authority to solicit bids and contract for work to be
performed. He said the individual members have authority but the board
as a group currently does not. This legislation will grant them the
authority to solicit bids and contract for work.
MOTION Senator Little made a motion that the committee send H511 to the floor
of the Senate with a do pass recommendation. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote. Senator Little
will sponsor this bill in the Senate.
H558a Relating to records exempt from disclosure; Amending 9-340C, to
exempt certain information
from voter registration cards
Tim Hurst from the Secretary of States office, stated that this legislation
will exempt the voter registration card from public access and exposure.
He said this legislation is intended to protect registered voters from
identity theft by holding the personal information contained on voter
registration cards confidential while still making voter name, address,
telephone number and voting history available to candidates and political
parties for campaign purposes from the voter registration data-base. He
said the information to be protected from disclosure includes: social
security number, drivers license number, date of birth, signature, and
residence address upon showing good cause. Chairman Sorensen
asked about the broader language in the Amendment for Section One.
Mr. Hurst said that language change was a request from the Press Club.
Chairman Sorensen asked about the exemption for enforcement and
correction officers. Mr. Hurst said that for this exemption they must show
cause for endangerment.
MOTION Senator Davis made a motion that the committee send H558A to the
floor of the Senate with a do pass recommendation. Senator
Richardson
seconded the motion. The motion carried by a Voice Vote.
Senator Little requested to be recorded as voting no. Senator Richardson
will sponsor this bill in the Senate.
H559 Relating to recall petitions and elections; Amending Sect. 34-1704, to
further govern approval of a prospective recall petition
Ben Ysursa, the Secretary of State, presented this bill in coordination
with the Association of Cities. He stated that this legislation does not
affect the constitutional right to initiate a recall, but clarifies the
procedures to be followed from the time a prospective recall petition is
presented through the petition checking, election and canvass of votes.
He said this legislation will remove some of the confusion involved in the
process and establishes set time-lines. He said the major change is
setting the number of days for a recall to 75. Senator Calabretta stated
that she supports a simplification of this process and she asked about
Page Six, Section Five and the language stating no new recall for 90
days. Mr. Ysursa said that it is a re-affirmation of Section Six and it
states that there is a waiting period after a recall. Senator Calabretta
said her other concern is about the City Clerks role to be unbiased. Mr.
Ysursa
referred to Page Two, lines 40-45, where it states that the City
Clerk shall promptly transmit the petitions and attached signature sheets
to the County Clerk for examination.
MOTION Senator Calabretta made a motion that H559 be sent 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
sponsor this bill in the senate.
H581 Relating to Bankruptcy and Pension Plans; Amending Sect. 11-604A,
to include 457 plans as exempt from execution, attachment, garnishment,
seizure or other levy
David High, Deputy Attorney General, presented this legislation on behalf
of the State Workmen’s Compensation Department. He said the purpose
of this bill is to include government deferred compensation plan assets
(Section 457 plans) in Idaho’s exemption statute for pension plans. The
state and various political subdivisions have had Section 457 plans as
supplemental retirement programs since 1978. A recent bankruptcy court
ruling indicating that Section 457 assets were not exempt as pension
assets under Section 11-607A, Idaho Code, has necessitated this
amendment. Senator Little asked if most retirement plans have an
exemption from bankruptcy proceedings. Mr. High said that generally the

state plans are included.

MOTION Senator Davis made a motion that the committee send H581 to the floor
of the Senate with a do pass recommendation. Senator Little seconded
the motion. The motion carried by a Voice Vote. Senator Davis will
sponsor this bill in the senate.
H560 Relating to conduct of elections by mail; Amending Chapter 3, Title 34,
by addition of new section, to govern the creation of a mail ballot precinct
and to provide conditions
Ben Ysursa, Secretary of State, stated that this legislation allows County
Commissioners the option to designate a precinct as a “mail” precinct.
Mail ballot precincts may contain no more than two hundred and fifty
registered electors. Elections conducted in precincts designated remote
will be consistent with absentee voting with some special provisions as
stated in the bill. Mr.Ysursa said that these changes are the first steps
toward Federal Mandates which will be coming over the next few years.
This will help to save money by reducing the number of poll workers. It will
test the waters. Senator Stennett asked if this will take effect this year.
Mr. Ysursa said they think so as it is already on the radar screen for
some small precincts. Senator Stegner said that previously he had no
problem with this bill, but that was when it was his understanding that it
would be limited to very small precincts of 8 to 10 voters in remote
locations. The bill now describes 126 precincts of 250 which is different
from his previous understanding. Mr. Ysursa said they had fluctuated on
the “size” number and he pointed out that it is ultimately up to the County
Commissioners to make the determinations of which precincts they
choose. Senator Stegner said it is possible the commissioners could
ensure higher voter turn outs where they are mailing the ballots. He said it
could potentially amount to 10% of all precincts qualifying. He questioned
that it might be possible for the commissioners to designate and then
manipulate the change. Mr. Ysursa said he believes in the good faith of
local government. Senator Little asked about the payment by the
Federal government for the new voting machines. Mr. Ysursa said the
cost of the first machine is covered but after that there is some shared
expense. Senator Darrington said that he knew the County Clerks
support this legislation. He said absentee voting is increasing everywhere
and we are seeing an erosion of Election Day as a special event. He
asked Mr. Ysursa if he anticipated this as a continuing trend. Mr. Ysursa
said that the key point is that, if you can increase voter turn out, then it is
not a negative result. He said right now in Idaho there is an average of 10
to 13 % absentee voters. He said we need a renewed commitment to
voting and we need to make it easier. Senator Davis asked for some
additional numbers on the size and number of precincts. Mr. Ysursa said
there are 47 precincts with 100 or less voters. Senator Stennett said that
there are several very small precincts in his district.
MOTION Senator Stegner made a motion that the committee send H560 to the
Fourteenth order for amendment. Senator Davis seconded the motion.
The motion carried by a Voice Vote.
H563 Relating to election laws; Amending Section 34-1009, to strike a
provision for finding and discarding the absentee ballot of an elector who
subsequently has died
Representative Saylor stated that the purpose of this legislation is to
amend Idaho Code 34-1009, deleting the section that directs election
officials to discard the vote of a person who casts an absentee ballot but
dies before election day. He said that the current procedure is not widely
done and this change will bring Idaho into conformity with other states.
Dan English, the County Clerk for Kootenai County, stated that they have
been aware of this issue for some time and each election there are heart
wrenching stories about elderly who vote as their last act . He said this
issue can also effect military personnel. He supports H563.
MOTION Senator Calabretta made a motion that the committee send H563 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.
H608 Relating to the State Treasurer; Amending Section 67-1211, to provide
that the State Treasurer must pay warrants on any of several funds in
his office as
prescribed by law
Ron Crane, the Treasurer for the State of Idaho, stated that this
legislation places a limitation on the size of warrant that can be cashed in
the State Treasurers office at $2,000 total. He said most of the warrants
they cash are remuneration from the state. However, there is one
individual who has been presenting a large warrant each month. In order
to provide the larger sums it is necessary for their office to employ Loomis
Fargo and then maintain the cash. This also presents security concerns.
They prefer not to have to maintain large amounts of cash.
MOTION Senator Little made a motion that the committee send H608 to the floor
of the Senate with a do pass recommendation. Senator Davis 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 committee adjourned at 4:40 PM.






DATE: March 3, 2004
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 minutes for March 1, 2004
be approved as written. Senator Little seconded the motion. The motion
carried by a Voice Vote.
RS14221C1 Senate Resolution; To express appreciation and gratitude in memory of
Janice Dixon for her dedicated and devoted contribution to Idaho
Education and to the lives of Idaho children
Senator Davis stated that this Resolution is to recognize the good work
done by Janice Dixon while educating our children. He said he had
volunteered in her classroom and personally witnessed her efforts.
MOTION Senator Stennett made a motion that RS14221C1 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
Davis will sponsor this bill in the Senate.
RS14152C1 Relating to the Idaho Commission on the Arts; Amending Section 67-5601, to revise the Declaration of Policy, to strike restrictive language; to
provide administrative authority to the Executive Director
Dan Harpole, Director for the Commission on the Arts, stated that this bill
is the final correction to two other bills which have already been heard
before this committee. He said it is basically a housekeeping bill to
correct the language in the Idaho Code with regards to the Idaho
Commission on the Arts.
MOTION Senator Davis made a motion that the committee introduce to print
RS14152C1 and then send it to Second Reading. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote. Senator
Calabretta will sponsor this bill in the Senate.
RS14191 Relating to Streamlined Sales Tax System; providing legislative intent.
Senator Bunderson stated that this legislation allows Idaho to work with
44 other states and the District of Columbia in solving two major problems
resulting from the explosive nationwide growth in Internet sales. He said
that in Idaho, such sales in 2001 is estimated to have resulted in lost
business to Idaho retailers of $880 million and sales tax avoidance of $44
million or 5% of the total sales tax receipts. In 2006 it is expected to grow
to over $3 billion in retail sales lost to Idaho’s taxpaying businesses and a
loss of sales tax revenue due to tax avoidance of $151 million or 14% of
the total estimated sales tax collections. He said passage of this
legislation allows Idaho to fully participate with the Streamlined Sales Tax
Implementing States.(SSTIS) Senator Stennett asked if, after the bill is
printed, it will go to Senator Bunderson’s committee. Senator
Bunderson
said that since it deals with public policy, he thought it would
be returned to the State Affairs Committee. Senator Little said he was
experiencing dejavu as this bill seemed familiar. Senator Bunderson
said he was probably recalling a Joint Memorial regarding this issue
which was one of the last bills from the last session. Senator Calabretta
mentioned that the Fiscal Impact statement should include estimated
travel expenses.
MOTION Senator Stegner made a motion that the committee introduce to print
RS14191. Senator Stennett seconded the motion. The motion carried
by a Voice Vote.
Chairman Sorensen explained to the hearing that there were seventeen
people who wanted to testify and that we were on a limited time allotment
as the Senate planned to go back into session at 4:30PM. Therefore
testimony would be limited to three minutes.
H502 Relating to Telecommunication Regulation; Amending Section 62-604,
to prescribe an election by the corporation to govern applicability of the
Chapter to certain telephone corporations
Bill Roden, representing Qwest, stated that this proposal will permit
currently regulated telephone companies the option to elect to be
regulated pursuant to Title 62, Idaho Code, rather than Title 61. He said
that in 1988, legislation was approved that allowed existing telephone
companies to elect an alternative form of regulation, eliminating the
monopoly and rate of return pricing system established in 1913, for all
telecommunication services except basic local residential and small
business services. In 1996, federal law mandated the ultimate removal of
all state and federal barriers to market entry by competing telephone
companies. He said today, unregulated companies serve and compete for
local residential and business landline customers in previously monopoly-protected areas of Idaho. He reviewed the sections of the bill. He said the
PUC will continue to have a regulatory role to protect the public interest,
pursuant to Title 62, Idaho Code, and that the bill requires that a report of
the effects be given to the Legislature in a year to eighteen months after
implementation.
Brent Duvall, is an officer of the Communication Workers of
America,(CWA) who retired after working for Qwest for 28 years. He said
he has watched the history of Qwest in Idaho. He said Qwest brought
500 good paying jobs to Idaho. He said they are not afraid of competition
but they should be allowed a level playing field. He said they are good
neighbors and CWA supports this legislation. Senator Calabretta said
that, as Mr. Duvall had mentioned, seniors are very fearful about this
change. She asked how the CWA has interacted with them to educate
them about this legislation. Mr. Duvall said they have many retirees
asking questions and that there is someone here at this meeting from the
Retiree Council who will be speaking.
Stan Hobson, a retiree who lives in District 16, expressed concern that
passage of this bill will defeat the efforts of the Public Utility Commission
(PUC) to maintain stable rates. He said the ruling from the PUC
concluded that the requirement for “effective competition” had not been
shown. He said the PUC determined that they cannot find that cell
phones are functionally equal to landline phones and that wireless is not a
suitable substitute. He asked the committee to leave oversight with the
PUC.
Dave Whaley, President of the American Federation of Labor and
Congress of Industrial Organizations (AFLCIO), stated that they have
20,000 members. He said a year ago the Department of Labor and the
Governor were instrumental in bringing 400 more jobs to Idaho with the
installation of Digital Subscriber Line (DSL) Service. He said they think
Idaho is a fair competition area and they ask the committees support for
H502.
Emily Jones is a retiree who lives in Garden City and she is a member of
ICAN (Idaho Citizens Action Network). She said they oppose H502
because it is adverse to low income people. She said members like
herself are unable to purchase cell phones. She said that if rates go up,
she will face difficult choices and communication with her family will face
an obstacle. Senator Calabretta asked her if any of the members of
ICAN had taken advantage of the Qwest Programs that help the elderly
pay their bills. Ms. Jones said it did not work for her as she has a
Medical Alert System as part of her phone system.
Lynn Cundick is retired from the Association of Telephone Pioneers. He
said this year they have seen the cost of their health care benefits
increase significantly which is partly because the Qwest Company has
been experiencing challenges. He said many of their retirees are in tough
situations but they want to see the company continue to provide a fair
retirement package. He said although the committee is hearing
challenging arguments, Qwest has been a good citizen for over 50 years
and they want to be competitive. He said it is a difficult thing for Qwest to
judge the market. They support H502. Senator Calabretta stated that
her father worked for AT & T American Telephone and Telegraph for forty
years and before he died he told her that he never imagined all the
changes in communication that have occurred. Senator Darrington
stated that he believes that Mr. Cundick knows the communication
business. He would like him to explain to him what to tell his neighbors
about what the benefits will be to them of voting for this bill. Mr. Cundick
said that if Qwest remains a viable business, rural areas will benefit. The
fewer the customers who pay into the base, the higher the rate required
from the base. He said it is a fact that deregulation has brought rates
down.
Vera Conrod, a retiree, spoke as a citizen. She said she is concerned
that certain companies have contributed $20,000 to the members of the
State Affairs Committee. She said we see you (the committee) as good
people caught in a bad system. She provided a handout which listed
campaign contributions for committee members. She asked the
committee to be open to the communities concerns. Senator Calabretta
asked Ms. Conrod if she had ever had a Senator refuse to talk to her.
She said she had not.
Roger Madsen the Acting Director of the Department of Commerce and
Labor, said that he endorses the statements made by Jim Schmit and Mr.
Whaley. He said he is not aware of another company that has created
more high paying jobs in Idaho. He said this change is a win/win situation
for business and for the people of Idaho. He said Qwest has cut
thousands of jobs corporate wide in other states while here in Idaho we
have had growth. He said these jobs are around the state and we hope to
further expand the employment base. Mr. Madsen said that with the
growth of external competitors, it is important to create a business
environment. Senator Little asked about the compatibility of their
services in rural Idaho. Mr. Madsen said they promote a positive
business environment and emphasize the positive power rates that are
available. He said communities are promoted as customer service
friendly. He said Qwest investing in expanding connectivity throughout
the state was very important.
Representative John Gannon speaking for himself, stated that the
overriding issue here is if there is enough effective competition for local
wireless services. He said he does not believe cell phones are enough
competition right now. He said the Idaho Statesman just today had an
article about a court case in which the judge ruled that the Federal
Communication Corporation’s rules to implement re-sale prices are not
lawful and will have to be re-written. He said at the last hearing Mr.
Schmit from Qwest, had agreed to a warranty of a cap on residential rates
but such an agreement should be made part of this legislation. He said if
you review their financial reports, Qwest has had a profitable year.
Gerald Schroder, a retiree, who is a member of Chapter 518 of the
American Association of Retired Persons( AARP) from Caldwell said that
they oppose H502. He said their local chapter is concerned about their
members. They commend the PUC decision and feel that H502 is an
affront to that decision. He said that they were glad to hear from
President Schmit from Qwest that they love the elderly. He said “We
elderly need love but we also need the security of the PUC.” He said they
request that the bill be pulled back for a full review. Senator Calabretta
asked if it isn’t true that changes are difficult for Seniors and they feel
harassed with new choices of phone services. Mr. Schroder said that
may be true as he is still trying to manage his own cell phone.
Clyde Dailey, the Executive Director for AARP of Idaho, stated that they
object to this legislation. He referred to handouts that had been
presented at the first hearing for H502. He said AARP believes that this
bill places at risk our most vulnerable senior members who have not yet
transitioned to cellular phone use and who rely mostly on landlines for
their telephone needs. Their membership also opposes it because of
their belief that telephone rates will be increased and that they will not be
able to afford vital telephone service. He stated that if the bill passes and
a cost spiral occurs, they will be back to the legislature asking for
regulation by the PUC.
Jack McMahon, an attorney, stated that in 1913 the Idaho Legislature
made a compact with the Utility Companies in which they agreed to
provide quality, universal service at reasonable rates. He said you cannot
have an unregulated monopoly. He said that if deregulation occurs and
rates go up it will put people who have been able to pay up until now on
Welfare. He said rural Idaho citizens will be disadvantaged and small
business operators will have no competitors to chose from. He said this
change will turn enormous clout to one company. He said three of
Qwests other services are already deregulated. He pointed out that the
bill also applies to other utilities and he asked the committee what might
happen if other outside companies take over some of these providers.
Molly O’Leary, an attorney , spoke for herself and said that she
represents small start up communications companies in Idaho. She said
that the reason the committee is not hearing from that sector is because
that competition still does not exist in Idaho. She said this legislation is
premature and we are not ready yet. She asked why the Legislature
should ignore the expertise of the PUC. She said it would behoove the
Legislature to recognize the PUC experts and that they concluded that
effective competition does not exist. She said that H624, the companion
bill to H502, is problematic because the reality of the marketplace is that
residential consumers and small business owners don’t have the time or
resources to file a complaint. She said there is not a sufficient penalty for
predatory pricing.
Steve Ahrens, the President of the Idaho Association of Commerce and
Industry, (IACI) said their members are interested in this question. He
said one point that has not been emphasized is that the Legislature does
retain its option to make changes. He stated that since they are facing
the rapid growth of competitors, Qwest doesn’t have a monopoly. Mr.
Ahrens said that competition results in lower prices and they support
H502. Senator Davis asked if within the membership of IACI, there had
been a difference of opinion about this issue between the small and larger
businesses. Mr. Ahrens said they had a good discussion of the pro’s and
con’s.
Chris Doyle, is a consumer of Qwest residential services and is entirely
dependent on landline phones. He said he needs voice mail for when he
is on the computer and on the phone and his computer depends on the
phone line. He said in absolute terms most of us cannot give up landline
phones. He asked what is there to prevent Qwest from raising rates. He
said they could selectively increase rates to those customers who don’t
bundle services with them. They can compete in there other product
areas and they don’t need relief from their competition. He said the
Legislature should abide by the PUC decision and this bill should not be
heard.
Mark McLaughlin, a local market representative for Qwest, said he has
the advantage of knowing customers in Idaho. He said he disagrees with
statements that nearly every home in Idaho has a landline. He said that
in the larger communities, penetration is close to just 50% and has been
decreasing over the last few years. He said there are existent wire line
companies that want residential and small business service customers.
He said their customers are inundated with calls from local providers and
the competition is definitely out there. Senator Stennett asked who the
local carrier is in Haley. Mr. McLaughlin did not know.
Senator Richardson asked the representatives from the PUC to explain
what their determination had been about competition. Commissioner
Marsha Smith, from the PUC, stated that they did not do their own survey
but rather considered the information which Qwest presented to them
which was a survey of peoples perceptions. She said the information
provided was not sufficient to meet the statutory requirements for
deregulation. Senator Geddes said that it was suggested that the
competition in rural Idaho would help control rates and he asked if she
agreed. Commissioner Smith said that they also regulate 15 other
phone companies some of which are from out of the state and they have
not heard from them.

Commissioner Dennis Hansen stated that there are many other small
phone companies in this state. He said in order for them to get universal
support they charge 125% above the state average to participate in
Universal Funding. He said this bill will also effect other carriers in rural
areas. Commissioner Hansen stated that if Qwest was to raise there
rates, then other rural phone companies that are dependent on Universal
Service Funding, would have to increase their rates by 125% of whatever
Qwest increased their rates by. In reference to Senator Gedde’s
question, he said that small companies in Senator Gedde’s district would
be affected if Qwest raises their rates. Senator Little asked if any one
provider has an advantage when bidding on high density developments
and if another company could under bid Qwest. Commissioner Smith
said there is a Local Exchange Service and companies have certificated
areas. He asked if Cambridge Telephone supplies Hidden Springs.
Commissioner Smith said she was not sure. Commissioner Smith
offered to research the question and report back to Senator Little and the
committee members.

Bill Roden stated that Hidden Springs is unregulated. He said they can
get Qwest there but the customer would have to agree to pay an
extension charge for that service so the company there has an
advantage. Mr. Roden said Qwest is required to provide services to their
competitors as they use Qwest lines. He said the market is open to
competition now. He said they used to provide services to the Idaho
Lottery and then they went to a Satelite System. He said they have lost
several court houses and city halls to competitors. He said the compact
was for when they truly had no competition but that monopoly is lost now.
He said they have lost 54,000 lines and everyday MCI is offering local
lines. He asked how much longer they must wait while competitors take
away their business. He said at the last hearing assurance was given by
Mr. Schmit and it has now been reduced to writing for the committee.
Mr. Jim Schmit , the President of Qwest of Idaho, presented a letter to
the committee members. He stated that he had offered a warranty at the
last meeting and now he has put that offer in writing. He said they agree
“to keep rates at or below their current level through year’s end 2004.” In
addition, Qwest committed for the three-year period from January 1, 2005
through December 31, 2007, that– in addition to being regulated by the
competitive market-rates for basic local exchange service would be
subject to a “universal assurance cap.” That cap is not intended as a
prediction of price increases but instead provides an additional guarantee
(beyond that provided by the competitive market) that prices will “remain
below a level already determined affordable for Idaho basic local
exchange customers by the Commission, i.e., the rates established by the
Commission for Idaho’s regulated independent companies.” He
concluded that the letter confirms that if H502 is signed into law in its
current form, Qwest will adhere to the commitments in this letter that
guarantee a continuation of affordable basic local exchange service in
Idaho. (See Attachment)
MOTION Senator Davis made a motion that the committee send H502 to the floor
of the senate without recommendation. Senator Calabretta seconded
the motion. The motion carried by a Voice Vote. Senator Stennett
requested to be recorded as voting no. Senator Darrington stated that his
vote today is not necessarily indicative of how he will vote in the senate.
H624 Relating to telephone corporations; Amend Section 62-617, to clarify
and limit the exemption from antitrust liability for telephone corporations
that have elected regulation pursuant to Chapter 6 Title 62
Chairman Sorensen announced that H624 will be moved to the State
Affairs meeting on Friday March 5, 2004.
ADJOURNMENT There being no further business, the meeting adjourned at 4:45 PM.






DATE: March 5, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Acting Chairman Darrington and Senators Geddes, Davis, Stegner, Little
and Calabretta
MEMBERS

EXCUSED:

Chairman Sorensen and Senators Richardson and Stennett
MINUTES: Senator Calabretta made a motion that the minutes for March 3, 2004 be
approved as written. Senator Little seconded the motion. The motion
carried by a Voice Vote.
Acting Chairman Darrington stated that there are some adjustments to
the order of the agenda as Representative Shepherd will be allowed to
present first due to a pending time constraint. He thanked Representative
Shepherd for the books she gave to the committee members.
HCR39 Concurrent Resolution; stating findings and expressing support and
encouragement for the efforts of the Pulaski Project
Representative Shepherd presented each committee member with a
copy of the book , “Year of the Fires” by Stephen J. Pyne which was
provided by the Director of the Pulaski Project, Ron Roizen. About a year
ago, a Shoshone man had an idea to revitalize the Pulaskii Trail. The
intent of this bill is to express support for the restoration of the Pulaski
Trail and the development of a Wildfire Education Center and Museum in
the Wallace area of North of Idaho. There is particular excitement about
the planned “fire room” in which you will be able to experience the sights,
sounds and the feel of being within a forest fire. This will bring in schools,
tourists and those studying forest fires, that may be a positive economic
factor to the Silver Valley. However, they understand that it will take
some time for it to be completed.

On August 20th of 1910, in the mountains of North Idaho and Western
Montana, the worst fire in American History erupted burning over three
million acres of timber land in just two days and it claimed the life of 86
people. On that afternoon just outside of Wallace a young District Ranger
with the newly formed Forest Service, realized that he and his crew were
trapped in the fire and he must make an attempt to save their lives. Ed
Pulaski lead his crew to safety in an abandoned mine, having to hold
them there at pistol point. He made them lay on the floor and he beat out
flames at the entrance. The next morning, all but five of them emerged
safely. Mr. Pulaski was hospitalized for two months with various injuries
and burns. In 1984 the Forest Service dedicated a monument to him and
the other people who lost their lives in this heroic event.

In 2002, a group of interested individuals launched the Pulaski Project
and since then they have received two grants from the Shoshone County
Commissioner for the educational aspect of the project. Also, Senator
Craig has $300,000 for the Pulaski Project in the 2004 budget for the
Forest Service. They are asking the Legislature for support and
encouragement of the Pulaski Project.

Acting Chairman Darrington said there has been a revival of interest in
regional history in recent years all over the state of Idaho and this project
is an example.
MOTION Senator Calabretta made a motion that the committee send HCR39 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.
HCR45 Concurrent Resolution; stating findings and urging support of the Idaho
Employer Support of the Guard and Reserve
Representative Wood stated that this Resolution is brought to us by the
Idaho Office of the Employer Support of the Guard and Reserve (ESGR).
On November 14, 2003, the National ESGR gave awards to nine
companies for their outstanding support for their military associates. She
stated that Albertson’s Incorporated was the company from Idaho that
was chosen. This legislation asks that we recognize and support this
group, the Employer Support of the Guard and reserve (ESGR). She said

this legislation expresses support and encouragement for Idaho national
Guard and Reserve personnel and the public agencies and private
businesses they work for by recognizing the efforts of the Idaho Employer
Support of the Guard and Reserve. The committee received several
handouts regarding this organization.

MOTION Senator Geddes made a motion that the committee send HCR45 to the
floor of the Senate with a do pass recommendation. Senator Little
seconded the motion. The motion carried by a Voice Vote. Senator
Bailey will sponsor this bill in the Senate.
H624 Relating to telephone corporations, Amending Section 62-617, to
clarify and limit the exemption from antitrust liability for telephone
corporations that have elected regulation pursuant to Chapter 6, Title 62.
Bill Roden, representing Qwest Communications, stated that H624 is a
companion bill to H502 which deals with two issues. The first issue is that
currently Title 62 provides for an anti-trust exemption for companies
acting thru the Commission. There is concern by other companies that
the election option transfer to Title 62 could be construed to be an order
of the Commission, and, therefore the company could claim antitrust
exemption some time in the future. This proposal amends Section 62-617,
Idaho Code, to clarify that, as to telephone corporations who have
exercised the election for alternative regulation, the existing exemption
from antitrust laws applies only to the extent that the telephone
corporations service is the subject of a specific Public Utilities
Commission order that is entered after the election has been made
pursuant to Title 62, Idaho Code. This amendment is requested on behalf
of the Idaho Telephone Association.

The second part of the legislation adds a new section to address the
potential issue of predatory pricing by any telephone corporation and
authorizes the Public Utilities Commission to take such action as may be
necessary to assure that telephone corporations do not price basic local
exchange service below the company’s average variable cost of providing
the basic local exchange service. This provision is in accord with general
antitrust principles and is intended to prevent ant-competitive pricing of
basic service. This addition is made at the request of MCI
Communications.

Ken MCClure, representing the Idaho Telephone Association, stated that
they are small rural phone companies who provide services to areas
where they might otherwise not have services and they deal with
unattractive market situations. He said currently they have to compete
with Qwest and they want to make sure that Qwest has to abide by the
same set of rules. They want to make it clear that the order of the
Commission approving their deregulation election could not be construed
as an order that they would thereafter be acting by order of the PUC and
therefore be exempt from antitrust laws. They should have to compete
fairly with us. Chairman Darrington asked if some of the members of the
Idaho Telephone Association were unregulated. Mr. McClure said they
have four members that are cooperatives and are unregulated. Senator
Darrington
asked if the independent companies are regulated and if so,
how the members that are independents will be affected. Mr. McClure
said there is the same effect on all telephone companies whether
regulated or unregulated. A regulated company that is told to do
something by the Public Utility Commission shouldn’t thereafter be
subjected to antitrust liability. However, when a company is doing what it
wants to do, it should not be protected from antitrust liability. Senator
Davis asked Mr. McClure what their association’s position was on H502.
Mr. McClure said they didn’t actively support the bill, but they have no
objection. Senator Davis asked if they brought H624 in lieu of objection.
Mr. McClure said that is correct. Senator Davis asked Mr. McClure to
walk him through 62-617. Mr. McClure stated that when a company files
an election to be deregulated in all or a portion, it will then receive an
order from the PUC approving its election. If a company chooses to
deregulate all or a portion of its services under H502, it is thereafter free
to compete. Pursuant to the order of the Commission, it will be doing
things which are on line 18, in compliance with the order of the
Commission. His client’s concern was that it may be misconstrued as not
subject to antitrust laws. Senator Davis said the objective is that
deregulated companies are still bound by the antitrust laws of Idaho.
Senator Davis asked where they would file a complaint. Mr. McClure
said that a complaint for violation of the antitrust laws would be filed in the
courts. Senator Davis asked Mr. McClure to further explain the next
section. Mr. McClure said after a company has elected to be deregulated
and it obtains an order of the Commission, confirming it’s deregulation,
the antitrust exemption (which is the first sentence of this section), will not
apply to its activity, unless there is another order of the Commission.
Senator Davis said he understands Section One to say that if a utility
provider is performing a specific act as directed by the PUC as part of the
deregulation order, then antitrust laws will not control. However, a
deregulation order doesn’t give that protection, unless there is some other
specific provision in there that says your deregulated but make sure you
do “X” . Then you do get the protection of the immunity from the antitrust
laws. Mr. McClure said that was a pretty close interpretation with the
exception of one other alternative which applies when there is a service
complaint about a deregulated company or a dispute between two
companies.
Joe Miller, representing MCI, is a former Public Utility Commissioner. He
said MCI is the company that started the action against American
Telephone and Telegraph. He said the purpose of Section Two of this bill
is to prevent predatory or anti-competitive pricing. The standard in the
statute is the average variable cost. Any price below the average variable
cost is predatory. He said H502 creates a third path to pricing flexibility.
He said Section One and Section Two are complimentary. Section Two is
forward looking and enables the commission to detect bad conduct as it is
occurring and then establish a price forward. Acting Chairman
Darrington
verified that if somebody comes in and pirates local service,
then there could be a petition back to the Commission to set a minimum
price that would reflect the corporation’s average variable price. He
asked if in his experience on the PUC, Mr. Miller found that his staff and
analyst were pretty effective in determining the true cost of service. Mr.
Miller
said as Senator Darrington had alluded, there are many different
ways of defining cost. He said the average variable cost is easier
because it is an accounting cost and he said the concept is quite well
known. Senator Davis asked what MCI and Mr. Miller’s role was as it
relates to H502. Mr. Miller said MCI was neutral on H502. Senator
Davis
asked if they were neutral because of the prior agreement they
reached with H624. Mr. Miller said that was correct.
MOTION Senator Davis made a motion that the committee send H624 to the floor
of the Senate with a do pass recommendation. Senator Calabretta
seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT There being no further business, the committee adjourned at 3:45 PM.






DATE: March 8, 2004
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: The minutes for March 5, 2004 will be held until the next meeting.
S1437 Relating to the Streamlined Sales Tax System; providing Legislative
intent
Senator Bunderson said that this legislation begins to address the
significant problems which have developed due to rapid sale of goods
over the Internet. He said that Idaho lost an estimated $44 million in
sales tax revenue in 2001. He said only when a company has a presence
or “nexus” in the state can they be required to pay the sales tax. This
creates an unfair advantage for remote sellers. He said currently, 45
states have a sales tax and many of them allow a local option taxation
rate. It would be very difficult for a remote seller to track all those
variances in tax rates. The Streamlined Sales Tax Agreement will
accommodate that situation by making one rate for the state. Senator
Bunderson stated that Idaho has not yet granted a vote to our public
policy delegate and this bill will allow the Tax Commission to vote.
Before, we can go further with this program, other legislation will have to
be passed both in Idaho and in Federal Law. There are currently, several
bills in the United States House and Senate which address this issue.
However, they probably will not pass until some of the bugs are worked
out. Senator Bunderson said that S1437 will bring Idaho to the table.
Chairman Sorensen asked if we become a member of the Streamlined
Sales Tax Agreement, does that mean we must pass enabling legislation.
Senator Bunderson stated that S1437 only allows the Tax Commission
to vote in the final drafting of the agreement.
MOTION Senator Calabretta made a motion that the committee send S1437 to the
floor of the Senate with a do pass recommendation. Senator Stegner
seconded the motion. The motion carried by a Voice Vote. Senator
Bunderson will sponsor this bill in the Senate.
H645 Relating to retail sale of liquor; Amending Section 23-995, to provide
application of provisions of governing split ownership of a facility to a
golf course
Representative Shepherd stated that in 1990, the Legislature adopted
legislation to allow ski resorts to retain their liquor license privileges in the
event of a split in ownership. A similar situation exists today with a golf
course due to a split in ownership of property at the Highlands Golf
Course in Post falls. Representative Shepherd provided a hand out to
the committee which described the golf course and spa in Post Falls. The
golf course was purchased by the surrounding neighbors while the Spa
and Clubhouse were sold separately. The Country Club and Spa are
seeking to retain their Liquor License privileges. This does not add
licenses, but rather allows the purchaser to retain the original license.
This bill seeks to ensure that golf courses are not penalized when sold,
just as ski resorts are not penalized. Senator Richardson asked if they
wanted the liquor license to stay with the owner of the club or to stay with
the business. Representative Shepherd said the liquor license is non-transferable and stays with the business. Senator Stennett asked if that
business was a private enterprise. Representative Shepherd deferred to
Chuck Lempesis. Mr. Lempesis said it is a private golf course and the
Country Club was not sold with the course. He said this is not an effort to
get a new license, but rather that they lost their privilege because current
law does not provide for split ownership sales. Senator Stegner asked if
the golf course is now without a club house. Mr. Lempesis said that is
correct, but the original lounge and restaurant is still located there.
Senator Stegner asked if it is possible that they would build a new club
house and then want to sell it off. Mr. Lempesis said they would not as it
is too difficult for spin off competitors. Senator Little asked what would
prevent a developer from putting five buildings in an area to use one
liquor license. Mr. Lempesis said nothing prevents it and that situation
could actually occur today under existing law. However, he said it would
be difficult selling to the competition due to the proximity of the other
businesses. Senator Davis asked if the sale of the Post Falls properties
is final. Mr. Lempesis said the sale is final. Senator Davis said that if
the sales are closed, he didn’t see how this legislation will help solve their
problem without a retroactive application. Mr. Lempesis stated that they
believe the language in the statute refers to the past tense so it would
apply.
MOTION Senator Stennett made a motion that the committee send H645 to the
floor of the Senate with a do pass recommendation. Senator Little
seconded the motion. The motion carried by a Voice Vote. Senator
Stennett will sponsor this bill on the floor of the Senate.
H539 Relating to bills for electric services; Amending Chapter 3, Title 61, by
the addition of a new Section 61-337, to allow for information regarding
fish and wildlife mitigation costs to be included on bills for electric service.
Senator Pearce stated that the intended purpose of this legislation is to
allow the consumer of electrical power to be aware of the cost of fish and
wildlife mitigation and that the utility or entity may list the cost as a line
item on the monthly bill received by the consumer. A yearly statement
would also be provided to the consumer listing the recipients of such
mitigation funds. He provided a handout for the committee which showed
a sample bill and a letter from John J. Williams, an Account Executive
with the Bonneville Power Administration. Senator Stennett asked what
is the intention of mandating this information. Senator Pearce said the
intent is to provide information to the consumer. Senator Geddes stated
that paragraph 3 states that they must identify where the money is sent
but it does not stipulate the y disclose the amount given. Senator
Pearce
said that paragraph 3 ends with “where remitted” and the intent is
to identify what share of the bill is spent on mitigation. Senator Geddes
said that the way it is currently worded does not include requiring an
amount. Senator Richardson asked if the Bonneville Power
Administration is required to do this wildlife work. Senator Pearce
referred to the letter in the handout which states; “Bonneville Power
Administration (BPA) has a mandate, under the Pacific Northwest Electric
Power and Conservation Act, to undertake activities to protect and
enhance fish and wildlife resources adversely affected by the
hydroelectric development of the Columbia River Basin.” Senator
Richardson
asked then, if it is mandated, what can be done about it.
Senator Pearce said the public needs to know what is being imposed on
them as electricity consumers. Senator Darrington stated that
paragraphs one and two say “may” which means it is optional. Senator
Pearce
agreed they are optional but as they intended the year end report
is mandatory and thus it says “shall.” Senator Davis stated that since
lines 22 through 25 of the bill are optional, it may be questionable that
H539 as written, accomplishes their intent.
Neil Colwell, representing Avista Corporation, stated that as a utility they
would be affected by H539. He said that in addition to the problems
already mentioned about the bill, they are concerned about line 24 which
states “a statement shall be sent to each consumer.” He said their
corporation has 225,000 customers in the state of Washington. He said
the bill also does not distinguish types of consumers and they have
wholesale consumers. He said they would recommend significant
amendment before approval of this legislation. Senator Calabretta
asked if Avista currently has any easy to read document regarding their
mitigation costs. Mr. Colwell said the information is somewhat available
on their web site page. Senator Stennett asked if it would be expensive
to assemble this information. Mr. Colwell said they have the information
accumulated and it could be manipulated into a report. There was further
discussion by committee members regarding the report procedure.
Senator Geddes stated that the authors of H539 probably thought that it
would be important for customers to know the costs of mitigation when a
license re-issuance is occurring. He said the Federal Energy Regulatory
Commission is not concerned with the amount that is spent, but rather
that there are good results for wildlife habitat. Senator Geddes asked if
Avista gets complaints about information in their bills. Mr. Colwell said
they do. Senator Davis stated that the sponsor of this bill wants the
public to understand the cost associated with mitigation and he asked Mr.
Colwell if the “magic language” was found, would they be willing to show
“the projected annual cost.” Mr. Colwell said that if forced, they would
probably go for an annual statement but not as a separate mailing.

Keith Daman, a member of the Idaho Farm Bureau Federation, said they
support H539. He said recently he has found out that some property he
leases, is being purchased by the Coeur d’Alene Tribe with funds from the
BPA. He said that with further inquiry, he discovered that a neighbor’s
farm is also being purchased. He has concerns about how his community
is being affected. He said these purchases are being funded by the
ratepayers who are unaware of how that money is spent. He asks the
committee’s support for H539.

Russell Westerberg, representing Pacific Corp, stated that they have no
opposition to H539 as far as sharing the information about the cost of
mitigation. However, he said that in the six states that they serve, they
did a customer survey and consumers said they don’t want additional
information in their bill. He said the bill should be changed to clarify that a
utility can choose whatever means they want to comply with the
information disclosure.

Chairman Sorensen announced that the Senate was going into session
again at 4:00 PM so it was necessary to adjourn the State Affairs
Committee meeting. She said that the remaining bills on the agenda will
be re-scheduled as soon as possible.
ADJOURNMENT The meeting was adjourned at 4:00 PM.






DATE: March 10, 2004
TIME: 2:50 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Little and Calabretta
MEMBERS

EXCUSED:

Senator Stennett
MINUTES: Senator Calabretta made a motion that the committee approve as written
the minutes for March 5, 2004. 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 March 8, 2004. Senator Calabretta seconded the
motion. The motion carried by a Voice Vote.
H712 Relating to the designation of the State Raptor; Amend Heading for
Chapter 45, Title 67, to designate the Peregrine Falcon as the State
Raptor
of the state of Idaho.
Representative Snodgrass introduced student representatives from the
fourth grade class at St. Joseph’s School as the students from Peregrine
Elementary were unable to attend. He presented a letter from the fourth
grade students stating that they believe the peregrine falcon is important
to Idaho and they would like the Peregrine Falcon to become our State’s
raptor. Jack Cilek expressed the student’s desire to make the Peregrine
Falcon the newest of Idaho’s state symbols. He said that in December
they sent a letter to the Governor requesting consideration of a state
raptor. Katie Keller reported that the Peregrine Falcon was in danger of
distinction but then the Peregrine Fund was established and moved to
Boise in 1984. Their efforts to restore the peregrine population has been
so successful that the falcon is now de-listed from the endangered
species list. Andrew Bruce stated that in order for a bird to be
considered a raptor , it must be considered a predator and use talons. He
said they are a symbol of strength and courage. Blaze Gamboa stated
that the Peregrine Falcon’s name means “wonderer.” He reported that
they have excellent eyesight with three eyelids. They are territorial in
nature. He said when the falcon was de-listed from the endangered
species list there was a great celebration which included such celebrities
as Walt Disney’s son.
MOTION Senator Little made a motion that H712 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.
RS14258 Relating to the Legislature ratifying an amendment to the Constitution
of the United States
, Amend Chapter 5 Title 67
Senator Davis stated that recent media coverage of the Idaho
Legislature’s procedures for ratifying amendments to the constitution of
the United States, resulted in him researching the Senate Journals since
1972. He said that in 1972, when the Equal Rights Amendment was
considered, it was ran as a Senate Joint Resolution which required a two
thirds majority vote. Then in 1975, Lieutenant Governor John Evans made
a request of the Senate Judiciary Rules Committee to do a report on
whether a two thirds majority was required. Edith Klein, who was then
Chairman of that Committee, then reported that their recommendation
was that a two thirds majority was required. That recommendation was
then presented to the Senate and the Senate voted to require a two thirds
majority. Later, in 1977, a ratification was prepared as a House
Concurrent Resolution. The rules say that a Concurrent Resolution only
requires a simple majority. The question then came before the Senate
whether a two thirds majority was required. Ultimately, the Pro Tem, in
light of the previous year’s determination, required the two thirds majority.
Then the Caucus overruled his decision in an 18 to 17 vote. Senator
Davis
stated that the media has identified that Idaho has a checkered
past as to whether the requirement for ratification is for a two thirds
majority or a simple majority. This legislation will adopt the concurrent
resolution process. Senator Stegner stated that he would prefer a Joint
Resolution requiring a two thirds majority vote and asked why Senator
Davis was suggesting a simple majority. Senator Davis said that the
method for amending the state constitution versus amending the United
States Constitution are different. Senator Stegner said that we require a
two thirds majority of both bodies before we have a citizen vote. Senator
Davis
stated that on a state level, when we amend we do require a two
thirds majority as the state legislature is primary . In the ratification of
amendments to the U.S. Constitution, the states are the secondary
component representing the people. He said he chose this approach
because it is the most current precedence of the Idaho Legislature.
Senator Little asked what other states do. Senator Davis said each
state gets to make their own determination. Senator Calabretta said she
appreciated the research of the historical information as this issue has
been a “political basketball game.” She stated that this is an important
issue and the general public needs to know why they don’t get to vote.
Senator Davis said they have not been part of the ratification in the past.
MOTION Senator Richardson made a motion that RS14258 be introduced for
print. Senator Geddes seconded the motion. The motion carried by a
Voice Vote. The bill will be returned to the State Affairs committee for a
hearing.
RS14252 Concurrent Resolution providing approval for the Department of
Administration and the Eastern Idaho
Technical College to enter into
agreement with Idaho State Building Authority to finance and develop a
specified facility.
Senator Davis stated that last year the 2003 legislature adopted HCR 30
authorizing several higher education projects to be financed through the
Idaho State Building Authority, including a new Health Care Education Building
for Eastern Idaho Technical College. The original cost was $6,360,000 plus a
grant for $3,500,000 from the U.S. Department of Commerce, Economic
Development Administration(EDA). It has now been determined that the terms of
the proposed grant, if accepted, makes it substantially more costly to finance the
state’s portion with bonds through the Idaho State Building Authority. This
resolution would authorize financing of the total project funds for the Health Care
Education Building, estimated to be a total of $9,860,000, through the Idaho
State Building Authority. Senator Darrington asked why this resolution is
necessary. Senator Davis explained that the original Statement of
Purpose created questions as it referred to the $3.5 million from the
E.D.A. This resolution will correct the Statement of Purpose.
MOTION Senator Richardson made a motion that the committee send RS14252
to the floor of the Senate with a do pass recommendation. Senator
Davis
seconded the motion.

Senator Little made a Substitute motion that the committee send
RS14252 to print and then have it returned to the State Affairs
Committee. Senator Calabretta seconded the motion. The Substitute
motion carried by a Voice Vote.

H539 Relating to bills for electric services; Amending Chapter 3, Title 61, by
the addition of a new Section 61-337, to allow for information regarding
fish and wildlife mitigation costs to be included on bill for electric service.
Senator Pearce stated that after hearing the concerns that were
expressed when this bill was considered at the last State Affairs
committee meeting, they have prepared amendments to that bill. He
asked the committee to send H539 to the Fourteenth order for
amendment.
MOTION Senator Darrington made a motion that the committee send H539 to the
Fourteenth order. Senator Richardson seconded the motion. The
motion carried by a Voice Vote.
HCR44 House Concurrent Resolution stating findings and providing that the
Department of Administration, upon appropriation of its budget request,
related to Borah Post Office, should take the steps to facilitate and
complete the acquisition.
Pam Ahrens, the Director of the Department of Administration, stated that
this concurrent resolution approves the Department of Administration
taking the necessary steps to finalize the acquisition of the Borah Post
Office from the United States, pursuant to the federal surplus property
laws. She provided a report for the committee to review. It is
contemplated that the Department of Administration would sublease
available space directly to state entities. She stated that there is no cost
of acquisition as the federal statutes allow for the conveyance without
monetary consideration. The Department of Administration has requested
spending authority of $650,000 for FY2005 to cover costs of operation,
maintenance and repair. Operation, maintenance and repair costs are
generated from tenant lease payments. Mrs. Ahrens said this project is
part of Governor Kempthorne’s initiatives for the coming year. She said
the property includes 1.4 acres and that 47% of the building is filled with
Federal Agencies which will remain in the building. She said over time
the available space will be offered to other state agencies which will
reduce expenses. She said the conference rooms will also be very useful
in the Capitol Mall area. Mrs. Ahrens said the pros include having no
purchase cost, the building location is good, the current property value is
5.9 million and only minimal repair is required. She said the cons include
that the building is 51 years old, the property cannot be sold but can only
be transferred to another government agency, the Department of Interior
requires certain audit procedures and any excess rent receipts must be
used for other historic properties. Senator Stegner asked if the building
could be torn down. Mrs. Ahrens said it could not. Senator Stegner
asked about the level of security required. Mrs. Ahrens stated that the
increased security is necessitated because the Appeals Judge is located
in this building, but the cost is covered by the Federal Government.
Senator Geddes asked about the furnishings in the Borah Post Office
Building. Mrs. Ahrens said many of them belong to the individual tenants
but they will work to acquire when possible. Senator Geddes asked how
the building is heated. Larry Osgood stated that the heating is a hot
water system heated by natural gas. Senator Geddes asked if there
would be the capacity to use geothermal heating. Mrs. Ahrens said there
was.
MOTION Senator Darrington made a motion that HCR44 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 Geddes will
sponsor this bill in the Senate.
H532 Relating to county boundaries and county seats; Amending Section
31-110, to align the western boundary description of Boise County with
the description of that boundary as shared with Ada County.
Fred Tilman, Ada County Commissioner, stated that this legislation will
correct a deficiency in Ada and Boise Counties that has existed for many
years regarding boundaries. Both counties have had a written description
of a section that are in conflict with each other. This bill will clarify the
boundary area. He said the Ada County and the Boise County
Commissioners are in agreement about this change. He provided a
handout for the committee. Senator Little asked if they were adopting
the 1864 or the 1915 description. Mr. Tilman said they are adopting the
1864 description. Senator Little asked about the corner section of Gem
County. Mr. Tilman said the change would not have any impact on Gem
County. Senator Stegner asked if this change would affect anyone’s
property taxes. Mr. Tilman said that was reviewed but most of the
property is owned by one family or is federal land which would not be
affected.
MOTION Senator Little made a motion that the committee send H532 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.
H625 Relating to City Elections and campaign expenditures; Amending
Section 50­477, to provide applicability of campaign expenditure reporting
to elections on citywide measures.
Representative Elaine Smith stated that the purpose of this legislation is
to provide applicability of campaign expenditure reporting to elections on
citywide measures and to provide that the city attorney shall stand in
place of the attorney general when campaign reporting law applies to
elections in certain cities.
MOTION Senator Davis made a motion that the committee send H625 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.
H691 Relating to wine sample tasting; Amending Chapter 13, Title 23, by
addition of a new section 23-1325C, to provide that vintners, wineries and
distributors may conduct or assist in wine sample tastings.
Bob Corbell, the Executive Director of the Idaho Grape Growers and
Wine Producers Commission, stated that an incident had occurred last
summer during which some questions arose from Law Enforcement
Officials with regards to the guidelines for wine tastings. He said this
legislation was developed in order to comply with the interpretations of the
law and to prescribe limitations on wine tasting. This legislation sets
requirements and limitations for wine tasting on retail and other premises
not licensed for sale of wine by the drink. It provides the limitation for
sample size of wine and requires a specific area that the tasting sponsor
can observe and ensure no minors or intoxicated persons are served.
The legislation aligns Idaho with similar Oregon and Washington statutes.
Mr. Corbell said this legislation is approved by the Department of Law
Enforcement and by Idaho retailers. He said Idaho wine growing is a $50
million industry.
MOTION Senator Stegner made a motion that the committee send H691 to the
floor of the Senate with a do pass recommendation. Senator Calabretta
seconded the motion.

Senator Richardson made a substitute motion that H691 be held in
committee. The Substitute motion died for lack of a second.

The original motion to send H691 to the floor with a do pass carried by a
Voice Vote. Senator Geddes and Richardson requested to be recorded
as voting no. Senator Stegner and Senator Lodge will sponsor this bill in
the Senate.

H692 Relating to Emergency Communications Systems; Amending Section
31-4801, to revise legislative purpose, addition of new Sections 31-4815
thru 31-4818, to create the Idaho Emergency Communications
Commission.
Michael Kane from the Sheriff’s Association, stated that this legislation
was developed to set up a statewide commission to deal with 911
communications in Idaho. This bill contains four new sections to the
Emergency Communication Act that provide for the creation of the Idaho
Emergency Communications Commission; defines the purpose and the
responsibilities of the commission; establishes a mediation role for the
commission when conflicts occur between local government entities and it
creates an Emergency Communications Fund that allows the collection of
grants and funds from all sources for the purpose of providing a conduit
for funding for 911 communications. He said this bill is supported by the
cites, counties, chiefs and sheriff’s. Senator Calabretta asked if this
legislation would conflict with the Homeland Security changes. Mr. Kane
said this communications issue is separate from the military changes.

Bob Wells with the Idaho Chiefs of Police, said that they support this bill
as good legislation and request a do pass recommendation from the
committee. Senator Stegner asked if the cities and counties were in
support of this legislation. Mr. Wells said they were part of the committee
and they approve of this bill.

Vaughn Killeen, Ada County Sheriff, stated that this legislation is
important because it takes local entities and marries them throughout the
state, especially in areas without current services. He said that together
they can move forward with a standard of thought. He said this will
establish a relationship that does not currently exist. Senator
Richardson
asked if 911 operations are profitable. Sheriff Killeen said
that it is not a profitable operation due to the wide spectrum of services
involved and it depends on which community you live in.

MOTION Senator Calabretta made a motion that the committee send H692 to the
floor of the Senate without recommendation. The motion died for lack of a
second.

Senator Geddes made a motion that the committee send H692 to the
floor of the Senate with a do pass recommendation. Senator
Richardson
seconded the motion. The motion carried by a Voice Vote.
Senator Gannon will sponsor this bill in the Senate.

Chairman Sorensen announced that due to time constraints, H711 would
be heard at the next State Affairs committee meeting.
ADJOURNMENT Chairman Sorensen adjourned the meeting at 4:05 PM.






DATE: March 12, 2004
TIME: 2:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes Stegner, Little, Stennett, Calabretta
MEMBERS

EXCUSED:

Senator Davis
MINUTES: Senator Calabretta made a motion that the minutes for March 10, 2004
be approved as written. Senator Richardson seconded the motion. The
motion carried by a Voice Vote.
RS14178 Joint Memorial to U. S. Congress; be it resolved that we endorse the
federally proposed
Clearwater Basin Project Act and we urge work
toward enactment
Senator Noh has requested that this bill introduced for print.
MOTION Senator Darrington made a motion that the committee introduce for
print RS14178. Senator Richardson seconded the motion. The motion
carried by a Voice Vote.
HJM20 To make it known that the Legislature of Idaho is opposed to the rules
finalized by the Office of the Comptroller of the Currency that preempt
most state consumer protection laws and enforcement
Representative Black stated that in January of 2004, the Office of the
Comptroller of Currency passed legislation that preempts most state
consumer protection laws. The effect of that rule is that it has taken from
the state of Idaho the ability to address and resolve complaints regarding
the banking system. Representative Black gave some statistics of the
number of complaints that have been handled in the last three years. He
said that now complaints from the people of Idaho will have to be
handled by the Office of the Comptroller of the Currency which does not
even have an office in Idaho. This will render hopelessness to Idaho
citizens who are seeking redress. The Legislature will send this
memorial to the Congress with the hopes they will return local control to
the states. Senator Darrington said he had received calls and it
seemed that State Chartered Banks opposed the change and National
Banks were in favor of it. Mary Hughes the Financial Institution Chief
from the Department of Finance,stated that the Idaho Community
Bankers Association was actually in favor of the change, while she
thought the National Banks opposed the change.

William VanTagen, Deputy Attorney General, said that they join with the
Department of Finance in supporting this Joint Memorial. He said that
the Department of Finance does a good job representing the Idaho
citizens. He said what will happen is there just will not be any listing in
the phone book for the Office of the Comptroller and consumers will
therefore have no access. He said the Attorney General’s Office views
this as an issue of states’s rights and they believe the state of Idaho
should have authority. He said this rule was put in place by the Office of
the Comptroller and not by an act of the U.S. Congress or the Idaho
Legislature.

Mary Hughes from the Idaho department of Finance, stated that as a
state agency, they are not interested in pursuing National Banks.
However, most of the complaints which they have been handling are
against those banks subsidiaries. This disadvantages those that choose
to come under Idaho Law.

MOTION Senator Richardson made a motion that the committee send HJM20 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.
HJM22 To the President and Congress of the United States; To request that
Idaho’s Congressional delegation vigorously support and expand the
Idaho National Laboratory
as it develops a world class multi-program
laboratory.
Senator Richardson stated that this Memorial is a request for the
President and the U.S. Congress to direct more research programs to
the Idaho National Laboratory.
MOTION Senator Darrington made a motion that the committee send HJM22 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.
HCR54 Commending the Department of Energy’s Idaho

National Engineering and Environmental Laboratory for its Fifty
Five years of service

Senator Darrington explained that this bill is a commendation by
resolution for the Idaho National Engineering and Environmental
Laboratory for 55 years of service. Senator Richardson stated that
when INEEL came to Idaho Falls in 1958, most people did not even
realize that it would become a National Nuclear Center. He said INEEL
is a real asset to the state of Idaho and it deserves to be recognized.
MOTION Senator Richardson made a motion that the committee send HCR54 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 will sponsor this bill in the Senate.
H770 Relating to the powers and the duties of the State Athletic
Commission
; repealing and amending Idaho Code
Senator Bunderson stated that in 2002 there was a death of a man who
was participating in a “tough man” competition here in Idaho. It was
determined that those type of matches did not have the same regulations
as wrestling. During that event the victim had fought in consecutive
fights and had been hit in the head which resulted in his death. Since
then a Task Force was formed and met several times in order to review
this issue and make recommendations. This bill doesn’t prohibit “tough
man” events but stipulates that to participate a person must be
categorized as an amateur or professional or else they must apply to the
Athletic Commission. This bill clarifies authority of the Idaho Athletic
Commission which is responsible for the oversight of professional
boxing, professional wrestling, and other similar events. It allows these
events to occur but they are conducted under an organized structure with
an accredited doctor and referee on hand. Senator Calabretta asked if
the thrust of this bill is to structure the promotions so they have a bond
and she asked if the participants have a contractual responsibility.
Senator Bunderson yielded the response to Kit Clark. Kit Clark stated
that there is nothing specific in the bill as far as contestants signing off,
but usually the promoters do require a sign off. He said this bill does
restrict the weight classifications and the level and frequency of fighting
which helps to address the safety risks. Senator Calabretta asked if the
participant doesn’t have any restrictions, then is the idea to provide a
structure around him to keep him safe. Mr. Clark said that is correct.
Chairman Sorensen asked about page 13, paragraph 2 , and the
reasoning behind not destroying the ticket stubs. Senator Bunderson
said that one of the vehicles to financing these events is the percentage
of the gate so the tickets track attendance. Senator Richardson asked
if this bill will cover Kick Boxing. Senator Bunderson said it covers all
such events. Kit Clark referred to page 3 and 4 which gives the
definitions of the covered events.
MOTION Senator Darrington made a motion that the committee send H770 to the
floor of the Senate with a do pass recommendation. Senator Geddes
seconded the motion. The motion carried by a Voice Vote. Senator
Bunderson will sponsor this bill in the Senate.
H772 Relating to Administrative Rules; Continuing certain rules in full force
and effect until July 1, 2005
Mike Nugent, from Legislative Services stated that while the Legislature
has delegated authority to state agencies to adopt rules consistent with
the legislative intent, the Legislature, under Section 67-5292, Idaho Code
has provided by statute that all rules shall expire annually on July 1 of
each year, unless extended by statute in each succeeding year. This bill
would continue agency rules approved by the Legislature until July 1,
2005, unless they expire sooner. Mr. Nugent cited several cases where
this statute came into play. He said it protects against a “rogue” agency
or director.
MOTION Senator Darrington made a motion that the committee send H772 to the
Consent Calendar in the Senate. Senator Little seconded the motion.
The motion carried by a Voice Vote.
H629 Relating to the Idaho Code codifiers corrections, Amending Section
1-1624, Idaho Code, as added by Section 2, Chapter 291, Laws of 2003
Mike Nugent stated that the purpose of this bill is to make various
codifier corrections to the Idaho Code. In the course of a legislative
session, multiple amendments to a single code section, chapter or title
are frequently passed. Occasionally, these multiple amendments result
in conflicting numbering of sections or subsections. Rather than waiting
for future amendment to the various affected sections, this bill compiles
those code sections affected in the 2003 legislative session that contain
conflicting numbering so that the designations may be promptly.
corrected.
MOTION Senator Stegner made a motion that the committee send H629 to the
Consent Calendar. Senator Geddes seconded the motion. The
motion carried by a Voice Vote.
HJM21 To the U.S. Congress; that we support the concurrent receipt of
military retirement pay and disability
compensation
This bill will be held until the next meeting in order for Senator Bailey to
be able to appear.
H802 Relating to Salaries of Members of the Public Utilities Commission; the
State Tax Commission and the Industrial Commission, Amending
Section 61-215
Representative Bill Deal stated that the Senate acts as a Board of
Directors for the State Government Commissions. This legislation will
increase by 2% the compensation for each of the Public Utility
Commissioners, Industrial Commissioners and the State tax
Commissioners. Their last increase was in 2001 and this increase is the
same as other state employees are receiving. Senator Geddes said
that there was an effort this year to include the commissioners under the
Change in Employee Compensation Committee(CEC) which failed and
he asked if this was the fallback position. Representative Deal said that
was correct.
MOTION Senator Little made a motion that the committee send H802 to the floor
of the Senate with a do pass recommendation. Senator Stennett
seconded the motion. The motion carried by a Voice Vote. Senator
Stegner will sponsor this bill in the Senate.
RS14267 Relating to the Public Employee Retirement System; Amending
Section 59-1302, to further define “Military Service”
Alan Winkle, Director of PERSI, stated that this bill makes a minor
change to the definition of PERSI Military Service to address inequity in
the crediting of military service. This change will ensure that Military
Service will be credited for calculation of both regular retirement benefits
as well as for survivor benefits.
MOTION Senator Geddes made a motion that the committee introduce for print
RS14267and send it to the Second Reading. Senator Darrington
seconded the motion. The motion carried by a Voice Vote. Senator
Bailey will sponsor this bill in the Senate.
H711 Relating to the Idaho State Independent Living Council; Amending
Title 56, by addition of new Chapter 12, Title 56, to create the Idaho
State Independent Living Council.



Kelly Buckland, Executive Director of the Idaho Independent Living
Association, stated that this legislation creates a single purpose district
for the State Independent Living Councils (SILC). He said it is supported
by the Governor’s Office and the Commission of the Blind. Senator
Geddes asked if this bill changes the function of the Independent Living
Council. Mr. Buckland said it does not but rather provides autonomy so
they don’t have to go to another agency. Senator Geddes asked if their
budget is currently perpetually appropriated. Mr. Buckland said it is not.
Senator Geddes asked who decides how much is appropriated. Mr.
Buckland stated that every three years they develop a budget plan
between the Commission of the Blind and the Vocational Plan. He said
as a state entity they cannot solicit donations. Senator Geddes said the
Legislature is perpetually appropriated and that periodically they
determine the amount that is needed. He asked Mr. Buckland if their
funding would be done on a three year basis. Mr. Buckland referred to
page 2, line 43 of the bill , which he said indicates that the funding they
get will be limited by the Legislature each year. Senator Geddes had a
question about federal funding versus perpetually appropriated funding.
Senator Calabretta, a member of the Joint Finance and Appropriations
Committee (JFAC), explained that as an example, the Commission on
the Arts is under the Office of the Governor but is perpetually
appropriated. She said all units under the Governor are addressed
individually every year. They get federal funding which moves through
the State Board via the Governor’s office. She said in order to receive
funds they set up a separate trust. Senator Geddes then asked if there
would be a line item for the Independent Living Council. Senator
Stegner
said there would be a line item.

The statement of Purpose explains that the Rehabilitation Act
Amendments of 1992 were signed into law in October of 1992. One of
the requirements was the establishment of State Independent Living
Councils (SILCs). The Idaho SILC was created by Executive Order 93-01
in 1993. The Federal Rehabilitation Act pertaining to the establishment
and the placement of the SILCs requires; “The SILC may not be
established as an entity within a state agency, including the designated
state agency or Designated State Unit (DSU). The SILC shall be
independent of the DSU and all other state agencies. Although funds
may flow through the DSU either directly to the SILC or another entity
operating under grant or contract supporting the SILC, nothing in the
grant or contract can serve to limit the independence of the SILC. By
changing the placement of the SILC this legislation will bring the SILC
into compliance with federal law and is supported by the Governor’s
Office, the Idaho SILC, the Idaho Commission for the Blind and Visually
Impaired and the Division of Vocational Rehabilitation. The structure of
the SILC, its By-Laws and rules of operation would remain the same and
the Governor would continue to make the appointments of all Council
members.
MOTION Senator Calabretta made a motion that the committee send H711 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.
H508 Relating to the Judges’ Retirement Fund; Amending Section 1-2008,
to provide that the Endowment Fund Investment Board as established in
code shall select and contract with Investment Managers at the direction
of the Supreme Court
Matthew Haertzen from the Idaho Endowment Fund Investment Board,
stated that this legislation makes two main changes to the Judges’
retirement Fund. It removes the restrictive language and allows the
Idaho Endowment Fund Investment Board to develop a policy for review
by the Judges in order to be more responsive to the market and it lists
the type of acceptable investments that can be made. It also removes
the restriction that the Custodian be located in the state of Idaho and
now just requires that they be licensed or authorized in Idaho.
MOTION Senator Little made a motion that the committee send H508 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.
HJR4 Proposing an Amendment to Section 8, Article IX, of the Constitution of
Idaho, relating to location and disposition of public lands, to increase
the acreage of state lands that may be sold.
Jay Biladeau, Assistant Director with the department of Lands, stated
that this change to the Idaho Constitution will enable the State Board of
Land Commissioners to sell selected parcels of endowment land in
parcels of up to six hundred forty acres to individuals, companies, or
corporations. He said 640 acres equals one square mile and it is the
state’s primary ownership pattern in the southern part of the state. He
said they felt this would improve the saleability of some sections of land.
Senator Geddes asked why the smaller tract sections are a hindrance.
Mr. Biladeau said that currently the state restricts the sales to maximum
of 320 acres to any one person and this change would allow larger
parcels to be sold. Senator Stennett asked if the intent is to make the
sale of land easier. Mr. Biladeau said the intent is to have the option of
variable size units for sale. Senator Richardson asked if the state
should be selling land. Mr. Biladeau stated that the state has the ability to
sell land now but the dollars earned would be used to purchase other
lands. So their intent is to sell less valuable land in order to purchase
better land. Senator Richardson asked if there was a maximum
amount. Mr. Biladeau said they can sell up to 100 sections per year.
Senator Richardson asked if they have bought any land. Mr. Biladeau
said they haven’t sold land to get the money to buy other land. Senator
Stennett asked if the proceeds from sales can also be invested in the
market. Mr. Biladeau said that if the money doesn’t go in to the Land
Bank , then it goes to the Endowment Fund and is invested. Senator
Stennett asked about exchanges and their limits. Mr. Biladeau said
there is no acreage limit on exchanges. Senator Calabretta asked what
is the percentage of land that is owned by the state. Mr. Biladeau said
about 2.5 million acres or about 5% of the land in Idaho is owned by the
State. Senator Little said that the language in the Constitution refers to
an individual, company or corporation and he asked what prevents them
from buying multiple lands via various ownerships. Mr. Biladeau said
that could take place if the state was selling land, but they haven’t had
any such occasion to investigate. Senator Calabretta asked where in
the process of a land purchase, does the public have a chance to
challenge the Land Board. Mr. Biladeau said that they go through a
specific process which puts out a sales plan that is available to the
public, then they advertise the sale and the general public in that specific
area is contacted. Senator Calabretta asked if the Legislature had any
authority in the process. Mr. Biladeau said they do not. Senator
Stennett
asked if there was any knowledge of why the founders set the
existing limit. Mr. Biladeau said he tried to research that but couldn’t find
any answer.
MOTION Senator Stegner made a motion that HJR4 be sent to the floor with a do
pass recommendation. Senator Little seconded the motion. A Roll
Call
Vote was requested. Senators Sorensen, Darrington, Stegner and
Little voted aye. Senators Richardson, Geddes, Stennett and Calabretta
voted nay. HJR4 failed due to a tie vote. Senator Davis was absent.
ADJOURNMENT There being no further business, the committee adjourned at 4:30 PM.






DATE: March 15, 2004
TIME: 3:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Stegner, Little, Calabretta
MEMBERS

EXCUSED:

Senators Davis and Stennett
MINUTES: Senator Calabretta made a motion that the minutes for March 12, 2004
be approved as written. Senator Richardson seconded the motion. The
motion carried by a Voice Vote.
Vice Chairman Richardson invited General Kane to the podium for a
special presentation.
General Kane stated that the National Guard wished to take this
opportunity to recognize all the fine work that Chairman Sorensen has
done over the years on behalf of the National Guard. He said she has
been a proactive supporter who has never wavered and they have greatly
appreciated her assistance. He presented her with a plaque and
extended their wish for her continued success.
HJM21 To the U.S. Congress; that we support the concurrent receipt of
military retirement pay and disability
compensation
Senator Bailey stated that this Joint Memorial expresses legislature
support for concurrent receipt of military retirement pay and disability
compensation for Veterans injured in combat. He said that prior to
November 2003, current law required military retirement pay to be
reduced by the amount of the disability benefit. In 2003 this was changed
to provide for both benefits to be received if the disability was 50% or
greater. This Memorial stresses that the agreement fell short and asks
that the Legislature support the ongoing request for full concurrent military
and disability compensation for all veterans receiving disability benefits as
a result of injuries sustained in combat. Representative Eskridge stated
that there had been considerable negotiation amongst the different
veterans organizations but they were able to come to agreement. They
are continuing negotiations to continue to lower the disability threshold.
MOTION Senator Darrington made a motion that the committee send HJM21 to
the floor of the Senate with a do pass recommendation. Senator
Richardson seconded the motion. The motion carried by a Voice Vote.
Senator Bailey will sponsor this bill in the senate.
H778 Relating to real property owned by the University of Idaho; Amending
Section 58-335, to provide for a process to be followed in the disposal
of real property by the University of Idaho
Senator Keough stated that this legislation clarifies a new process to be
used by the University of Idaho when disposing of properties. She
deferred to Representative Eskridge for further explanation. Senator
Richardson asked if this bill was specific to University of Idaho only.
Senator Keough said that since University of Idaho has a land grant
status, the process is different for them .She deferred to Representative
Eskridge
for further explanation. Representative Eskridge said that last
summer a property of University of Idaho, the 35 acre Clarksford Campus,
was sold without the proper consideration of the public good and without
a public process. The University now agrees that the procedure could
have been better and that other state agencies should have been notified.
The language in this bill will provide them with a more standardized
process for disposal of surplus property that is similar to that of other state
bodies, but still retains control by the Board of Regents as required under
the land grant provisions pertaining to the University. Senator Darrington
asked Representative Eskridge if he was suggesting that the prior sale
was contrary to existing law. Representative Eskridge said the sale was
not contrary to law. Senator Darrington asked why the property was
sold. Representative Eskridge said that they were losing $50,000 a
year on the property. Senator Stegner asked to hear from the University
of Idaho people that were present. Marty Petersen stated that the
University agrees with the procedure in this legislation.
MOTION Senator Calabretta made a motion that the committee send H778 to the
floor of the Senate with a do pass recommendation. Senator Stegner
seconded the motion. The motion carried by a Voice Vote. Senator
Keough will sponsor this bill in the Senate.
H752 Relating to Driver’s licenses; Amending Section 49-319, to provide for
renewal of a driver’s license upon application in person without the
requirement to take a knowledge or skills test, if license expired while
active in the armed services
Representative McGeachin said that this is a lengthy bill which makes a
slight change to Idaho law. She said the purpose of this legislation is to
allow active members of the military to renew their license without a skills
test. She stated that page 2 of the amendment provides that if a person
on active military duty or their spouse is licensed prior to that duty, their
license can be extended for four years or as long as the military member’s
active duty continues.
MOTION Senator Richardson made a motion that the committee send H752A 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.
H797 Relating to records exempt from disclosure; Amending Section 9-340D, to provide that certain records shall be exempt
Dar Olberding, representing the Idaho Grain Producers Association,
stated that H797 proposes an exemption to the open records law to
protect academic research that is in the development stage. He said this
bill keeps the research closed during the investigative process and it
keeps the names of the cooperators closed.
Justin Hayes provided a handout from the Idaho Conservation League.
He said that they feel this legislation goes far beyond protecting credible
research being conducted at our state’s academic institutions and that it
threatens to undermine Idaho’s Public Records Law at its very core. He
said H797 is not needed for two important reasons. Those reasons are
that existing law already protects credible, ongoing research and that the
language in the bill is so wide and sweeping that it creates an opportunity
for the State to withhold virtually any and all documents.
Larry Branen, Associate Vice President at the University of Idaho, spoke
in support of H797. He said this is an important step in assuring
continued research in public institutions. He said that when the time is
right, the information will be made public. He said that projects are
approved with the expectation that the results are scientifically proven and
then they need to be analyzed and subjected to pier review for sound
interpretations. He said they are concerned about three areas which are
the release of “green ” data, the loss of research cooperators who they
must engage in the development stage and the loss of a competitive
position by the University and the state of Idaho. Chairman Sorensen
asked about his reference to future research. Dr. Branen said most
proposals will remain open with the exception of when disclosure might
result in loss of a competitive edge. Senator Calbretta asked for an
example of potential “concept” robbery. Dr. Branen said the predominant
area where this is a concern is biotechnology. He said an example is bio-sensors where they are trying to create a computer chip that will detect
things in the environment. Senator Geddes said that he supports the idea
of protecting research. He said that in Southeastern Idaho the phosphate
industry has worked to help them with the selenium problem He said in
several cases no results were finalized because the graduate students
doing the research dropped out. He said it is disappointing when no
results is finalized after research has been funded. Dr. Branen said that
60 to 70% of research does get published. Senator Geddes asked who
owns the data, the student or the university. Dr. Branen said the
University owns the information.
Doug Gross stated that he and his family operate a diversified farm.
They are in support of H797. He said research takes place at several
levels and that includes field trials. He has opened his farm for them in
the past without any reimbursement. He said the premature release of
research data can result in unfair assumptions and erroneous information.
He said protection of data is critical for the continuance of field base
research, it provides protection to farmers and ranchers and it protects
the public.
Dick Rush, Vice President of the Idaho Association of Commerce and
Industry (IACI), said that all of the schools support H797. He said he is a
member of the IACI Potato Research Committee and they have elected to
hire only private researchers. He said that when universities can protect
their research , it helps students and attracts scientists.
Dennis Tanikuni, with the Idaho Farm Bureau Federation, said that 25
other states have similar legislation to this bill. He said they appreciate
this legislation because it protects researchers and facilities. He said
threats against them are real and this bill will help to protect them.
Senator Calabretta asked about the instance when public research
identifies a threat to the public health and if, in that case, the public can
get the information earlier. Mr. Tanikuni said that if there is an imminent
threat to health, researchers are required to disclose the information.
Representative Mack Shirley carried H797 in the House of
Representatives. He works in the private sector and was surprised to
learn that public institutions are not protected. He said Idaho has lost
valuable research grants to sources outside of our state. He said some
other states, such as Utah, have legislation with even broader range of
exemptions. He said that we are entering a future that is research driven
and we ought to allow our institutions these exemptions. Senator
Richardson said that when he thinks of research, the first thing that
comes to his mind is INEEL and he asked if they would be affected by this
legislation. Representative Shirley said they definitely would be affected
as confidentiality is a critical issue for them. He said they use private
research for that reason.
Roy Eiguren, representing the Idaho Allied Newspapers, said they
oppose H797. He said that they feel this legislation is over-broad and that
it is a sweeping change in public policy which is coming too late in the
session. He said time is needed to work on the bill. He asked the
committee to closely review the language and presented a handout with
some proposed amendments. The proposed paragraph 18 stated that,
“Records, data, information and materials collected, developed,
generated, ascertained or discovered during the course of academic
research at public institutions of higher education if the disclosure of such
reasonably could affect the conduct or outcome of the research or the
ability of the public higher education institution to patent or copyright the
research.” Paragraph 19 stated that “Records, data, information and
materials collected or utilized during the course of academic research at
public institutions of higher education provided by any person or entity
other than the public institution of higher education.”
Chairman Sorensen announced that it was necessary to adjourn the
State Affairs Committee in order for the Senators to return to the floor of
the Senate. Therefore, the remaining testimony on H797 will be heard at
the next State Affairs Committee meeting.
ADJOURNMENT The meeting was adjourned at 4:10PM.






DATE: March 17, 2004
TIME: 1:00 pm
PLACE: Room 437
MEMBERS
PRESENT:
Chairman Sorensen, Vice Chairman Richardson, Senators Darrington,
Geddes, Davis, Stegner, Little, Stennett, Calabretta
MINUTES: Senator Calabretta made a motion that the committee approve as written
the minutes for March 15, 2004. Senator Richardson seconded the
motion. The motion carried by a Voice Vote.
H797 Relating to records exempt from disclosure; Amending Section 9-340D, to provide that certain records shall be exempt
Dar Olberding said this bill was brought by the Idaho Grain Producers.
He said it exempts research records while research is being conducted
and protects cooperators who assist the research.

Kevin Satterlee, an attorney for Boise State University(BSU), stated that
during his previous service in the Attorney General’s office he did not find
the Public Records Act to be an obstacle. Now, since he is at BSU, the
Public Records Act has become a hurdle. He said that with tougher
funding for universities, a primary source of funding is research dollars.
He said that without this legislation, universities are at a disadvantage and
they cannot compete. He said BSU’s research is targeted research that
seeks to fuel Idaho’s economy. He gave an example of a financial
institution wanting assistance with identifying their market. If the bank
seeks confidentiality of their client list, they would choose to go to the
private sector or to another state where confidentiality is assured. Mr.
Satterlee said BSU wants to get the business, but they are at a
competitive disadvantage.

Allen Derr representing the Idaho Press Club and the Idaho Newspaper
Association stated that they don’t object to the purpose of this legislation
but rather they object to the public being locked out from academic
research. He said the existing law does cover research and they feel this
bill goes too far. They would like H797 to be held in committee until
further checks and balances can be included.

Brad Hoaglun representing the Idaho Alfalfa and Clover Seed Growers
Association, stated that they support H797.

Justin Hayes, Program Director for the Idaho Conservation League, said
that they oppose H797 because current law already provides exemptions
for “trade secrets” and because the new language in this bill is too broad.
He said the bill needs to stipulate that the provisions are restricted to
Academic Institutions.

Chairman Sorensen asked Mr. Satterlee why the existing “trade secrets”
language that Mr. Derr had referred to was not sufficient. Mr. Satterlee
said the existing language is not targeted to the issue of university
research. He referred to his example where customer demographics
were used and other types of research where data doesn’t have purely
economic value. Chairman Sorensen asked what is the urgency in
passing this bill. Mr. Satterlee said they are anxious to become
competitive. Senator Richardson asked how other state’s bills compare
to H797. Mr. Satterlee said they are fairly comparable.
MOTION Senator Little made a motion that the committee send H797 to the floor
of the Senate with a do pass recommendation. Senator Stegner
seconded the motion.
Senator Little stated that this was a matter of competition now and that
this bill is a step forward to allow universities to compete. Senator
Stegner said he is a board member of the Idaho Research Foundation
which seeks to promote commercial use of the intellectual properties of
the University of Idaho and he said this legislation could be beneficial to
universities. Senator Geddes stated that he thought that the intent of
H797 is probably the right approach but he is concerned that this
language is too broad and needs further consideration.
MOTION Senator Geddes made a Substitute motion that H797 be held in
committee. Senator Stennett seconded the motion. The Substitute
motion carried by a Voice Vote.
SCR134 Concurrent Resolution; providing approval for the Department of
Administration and the Eastern Idaho Technical College to enter into
agreement with the Idaho State Building Authority to finance a specific
facility.
Senator Davis reminded the committee that they had discussed this bill
at a prior meeting. He said that even with this change, the total cost of the
project is still $9.8 million.

Brian Whitlock from the Governor’s office, said that as they ask for the
bonding they will pursue a parallel course with the EDA and try to
determine what additional flexibility is available in the grant. Senator
Little
referred to a trailer bill which indicated there was a limit to
accessing the Permanent Building Fund. Senator Stennett stated that
he was also concerned that there might not be enough left in the
Permanent Building Fund for maintenance. Senator Richardson said
that this project has been discussed and anticipated for some time now
and its time to move forward with some action.

MOTION Senator Richardson made a motion that the committee send SCR134 to
the floor of the Senate with a do pass recommendation. Senator
Calabretta seconded the motion. The motion carried by a Voice Vote.
Senator Davis will sponsor this bill in the Senate.
H777 Relating to Political Campaign Finance; Amending Chapter 66, Title
67, addition of Section 66-6610B to provide procedures for political
committees to retire unpaid debt and to define the term “unpaid debt”
Ben Ysursa, the Secretary of State, said that this legislation is an
amendment to the Sunshine Laws. He said Section One of the bill
clarifies the established procedure that unpaid debt of a political
committee organized on behalf of a candidate may be repaid with excess
campaign funds and not a new class of funds. He said Section Two
removed language in the Idaho Code 67-6610C, which currently allows
incumbent officeholders to raise funds outside of the campaign funds
subject to the contribution limits set in Idaho Code 67-6610. He said an
unintended consequence of the language currently in Idaho Code 67-6610C was to create a new, distinct type of fund, not considered
“campaign funds.” He said this bill codifies the definition of “personal use”
so that it more closely mimics the federal code. Chairman Sorensen
asked about the meaning of an “ordinary and necessary expense.” Mr.
Ysursa
said it is the same as the IRS code language and it must pertain
to the “nexus” of the job. Senator Calabretta asked if a legislators travel
in their district during a non-campaign year would be a legitimate
expense. Mr. Ysursa said as long as it is related to their official duty it
would be covered.

Sherm Furey from the Attorney General’s office, stated that the Attorney
General supports H777.

MOTION Senator Davis made a motion that the committee send H777 to the
Fourteenth Order. Senator Geddes seconded the motion.

Senator Stennett made a Substitute motion that the committee send
H777 to the floor of the Senate with a do pass recommendation. Senator
Calabretta seconded the motion. The Substitute motion failed by a Voice
Vote. The motion to send H777 to the Fourteenth order carried by a
Voice Vote.

S1421 Relating to election campaign contributions and expenditures;
Amending Section 67-6602, to further define “candidate”
MOTION Senator Davis made a motion that S1421 be held in committee. Senator
Geddes seconded the motion. The motion carried by a Voice Vote.
H811 Relating to disposition of unexpended balances of political
treasurers;
Amending Section 67-6608, to provide for semiannual reports
by candidates for statewide office
Representative Jacquet stated that the purpose of this legislation is to
require the political treasurer of a statewide candidate, if the statewide
candidate has an unexpected balance of contributions or an expenditure
deficit, to file a semiannual report on January 31 and July 31.
MOTION Senator Davis made a motion that the committee send H811 to the floor
of the Senate with a do pass recommendation. Senator Stennett
seconded the motion. The motion carried by a Voice Vote.
Chairman Sorensen and the committee expressed their appreciation to
Jessica Cook who served the Senate State Affairs committee for the
second half of this legislative session.
The committee expressed their great appreciation to Chairman Sheila A.

Sorensen for her excellent service as the Chairman of the Senate State
Affairs Committee since 1999.

ADJOURNMENT There being no further business, the committee was adjourned at 1:45
PM.