Senate Commerce & Human Resources Committee

 

2004 Minutes

 

January 8 - 9, 2004 - CEC Committee Meeting
January 20, 2004
January 22, 2004
January 27, 2004
January 29, 2004

February 3, 2004
February 10, 2004
February 12, 2004
February 17, 2004
February 19, 2004
February 24, 2004
February 26, 2004

March 2, 2004
March 4, 2004
March 9, 2004
March 11, 2004
March 16, 2004
March 18, 2004

DATE: January 8-9, 2004
TIME: 1:15
PLACE: JFAC Room
MEMBERS: Co-Chairmen Representative Schaefer and Senator Andreason, Co-Vice-Chairmen Representative McKague and Senator Goedde, Representatives Lake, Trail, Crow, Bradford, Bauer, Garrett, Martinez, Ringo, Naccarato, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
ABSENT/

EXCUSED:

Senator Goedde


The Thursday afternoon session was called to order at 1:17 by Co-Chairman Schaefer.

Ann Heilman, Administrator, Division of Human Resources presented her report, assisted by Gabe Weske. She mentioned her report is available online. (See Attachment #1) Each year she presents her report to the Governor in October. Some things have changed since then.

She reviewed a few state policies. All raises are based on merit, across-the-board raises are not allowed. A variety of jobs are assigned to one pay grade. There are no longevity or automatic pay raises. According to state code, employees who are competent and fully trained can expect to receive the middle salary of the range in the public sector. At present, state salaries lag the market by 14.6 percent. The over-all price tag to catch up would be over 85.5 million dollars.

The Consumer Price Index grew in 2003. Unemployment in Idaho is close to the national average of 5%. The unemployment rate is higher in rural counties, but the majority of the work force is in the urban areas.

Her job requires that she research the private sector to compare jobs. She gave details of her research. Her survey covered 65% of the classified state jobs. Not all jobs lag the market by the average. Some jobs, such as nursing, lag even further behind.

The average age of a state employee is 46. The average new hire age is 36. Benefits are more important to the older employees. An organization needs to have a wide range of ages.

Wage compression occurs when a new employee's entry wage is close to or at the same level as an employee who has been doing the same job much longer. If someone hires in at less than market rate, the state is likely to get a person who needs more training, and experienced employees bear the load.

Idaho has serious competition in the private sector, the federal level, and neighboring states. A number of employees leave for the federal system because of the higher wages, automatic pay raises, and promotions.

The state mandated Hay system does not account for the impact supply and demand has on wages locally. An Information Technology Programmer Analyst and a Financial Planner are paid the same by the state, but in the market, the IT pay average is $12,000 higher a year.

She suggested a refining of the pay schedules which would need to be done in code. With new technology, changes can be made more easily than could have been done years ago, and gave examples of labor, trades and crafts; skilled nursing; office support and administration.

In response to questions, she said the Hay System does not have the flexibility to address the market fluctuations. She said it would help to break up the occupations into groups and that several states are doing this.

She said it is unreasonable to expect market parity in one year. However, a plan is needed to recognize there are annual market movements­a 3.3 to 3.45 annual wage growth is projected. She said the state needs to increase state wages by 5% each year to catch up by 2009. She suggested one-time pay increases or bonuses to promote the retention of employees. A clear, easy suggestion to take care of this problem doesn 't exist.

Among her recommendations to the Governor in October were:

1. No increase to the current salary range schedule

2. No increase to the current "policy rate."

3. Code changes to allow for pay schedules unique to occupational groups.

4. Provide an average of 10% permanent merit raises for nursing occupations.

5. Adopt a strategy to address market salary competition

6. Provide 6.8% CEC to fund the first step toward current law requirement OR

7. Provide as much permanent CEC money as possible and refine current law to specify

market targets

8. If no funds are available, provide 2% one-time money to help with retention, and a

recognition award program for FY05.

She said that she feels doing nothing for another session is much too risky. State employees realize we have been in financial hard times and have taken on extra work because of jobs that remained open or were eliminated. She feels that revision of the rules is absolutely necessary and well worth the Legislature's time for this session.

Co-Chairman Andreason congratulated her on the quality of her report.

In response to questions, Ms. Heilman said that Idaho code does not use the same indexes as does the federal government. She added that Idaho code also refers to doing a study on benefits from time to time, and she feels that this might be a good time to make such a study. In response to further questions, she said small businesses are not used in making the comparison because they do not participate in expensive surveys. Small businesses also employ family members.

In questioning she said that 10% below market rate might be a reasonable goal, considering the state's benefits. As to the 13.8% attrition rate and the reason, Ms. Heilman said employees do not always give accurate reasons for leaving.

In closing, she said that for many years the state benefits' package was better than what was offered in the private sector. However the situation seems to be changing.

Alan Winkle, Executive Director of PERSI made his presentation. (See Attachment #2) He started by commenting that his presentation is more cheerful than it has been in the past years. He believes the retirement benefits of PERSI are on a par with the national average.

Employer units are growing every year as charter schools, counties, and other political subdivisions join. They only had one partial withdrawal in the last year. Covered salaries have grown, which is good, because benefits are based on this.

There was an increase this year of close to 1000 retirees. The average age of retirees is slightly lower as are the years of service. Annual payroll is growing slightly because of additional people retiring. He mentioned other demographic changes.

They ended the year with an unfunded liability of 1.2 billion dollars and are funded at 83.8%. To make the state mandated funded goal of 100%, the rate employees and employers pay will go up this next year.

In a survey of members, 94% of the employers are satisfied and 65% of the employees are satisfied. They are going to do further studies to compare with other states, and expect legislation will be proposed.

There is a mandatory 1% COLA (Cost of Living Adjustment) if the Consumer Price Index grows over 1%. The Board approved a 2.2% COLA this year, which can be modified by the Legislature. The numbers looked better in November when 2.2% was agreed to, than they do now.

When the meeting was called back to order after a break, Pam Ahrens, Director of the Department of Administration, presented her report. (See Attachment #3) She thanked the Legislature for the $836 provided for each employee to cover the increase in costs for health benefits. The actual increase was more than expected, so the employees still had to pay more, with their salaries frozen.

Ms. Ahrens said the dramatic increases in health insurance is having a definite impact on employees. She defined a "Trend" as an actuarial term used to describe the expected change in medical costs from year to year. The current FY 2005 Budget Estimate assumes a 15% trend. This will result in an additional expense of $820 or $.39 per hour per employee. This is the third year of double digit trends, and experts indicate there is no end in sight. This is more than 6 times the rate of inflation.

The population ages as the life expectancy increases. An aging population needs more medical services, which cost more money.

Other employers are shifting more of the health insurance costs to employees; instituting limited, tighter networks; using disease management programs; instituting consumer driven health plans; making insurance carrier changes, and instituting preferred drug lists.

Money comes from the state, employees, and retirees to pay the insurance benefits. They had to draw from the reserves to pay the premiums this last year.

To keep costs down, they added another category of rating, and moved to only one plan that had a lower deduction. The out-of-pocket maximum expense was lowered by $500. Retirees are grouped with the active plan. The active employees subsidize 50% of the retirees' insurance. Retirees by law can only be provided the same package that active employees receive. There is duplication of services due to Medicare. Retirees want a drug prescription program. New programs allow retirees to use unused sickness funds for Medicare supplement plans.

Ms. Ahrens pointed out that the cost per member per month for drugs has increased over 20% every year.

Between 2002 and 2003, there was a reduction in active employees of 1800 persons.

The bids for the health insurance programs just came in the previous day. They first choose a carrier and then design a plan. Appropriation is the final determining factor. The plan will be in place by July.

In answer to questions, she said the state is as close to being self-funded as possible. When the federal drug program goes into effect, the state may be able to take advantage of it. Uninsured medical costs do impact our state's cost.

In answer to further questions, Doug Trosky, a consultant stated there is a push to change the Health Savings Account. Such changes are being suggested as allowing funds to be carried over from year to year, and allowing the employer to contribute.

Both Co-chairmen thanked Ms. Ahrens for her hard work.

The meeting was then adjourned for the day at 4:30.

Friday Morning, January 9, 2004

MEMBERS: Co-Chairman Schaefer and Andreason, Vice-Chairman McKague, Representatives Lake, Trail, Crow, Bradford, Bauer, Garrett, Martinez, Ringo, Naccarato, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
ABSENT/

EXCUSED:

Senator Goedde and Representative Garrett
GUESTS See Attached sign-in sheet


Senator Andreason called the meeting to order at 8:35.

President Richard Bowen of Idaho State University spoke to the Committee. He said teaching is the basic function of a university. The development of the students and faculty is their most important task. Teaching is an individual occupation. ISU over the years has had a very solid teaching force with low turn over. However, the lack of salary increase these past two years has eroded the confidence of the faculty in their future with ISU. Upon graduation, some students gets jobs that pay more than that of their professors.

President Gary Michaels of the University of Idaho spoke. He said there is no "silver bullet" to solve the problem. The U of I does a lot of research. Washington State University, just 8 miles away, offers about 30% more in pay. They haven't had a large turn-over so far, but he is afraid that if the present situation of no raises continues, it will take a toll on the faculty. He said the faculty is working very hard to do the best they can with what they have.

Newly hired faculty are getting equal or greater pay than people who have been there a long time. The more experienced a faculty member is, the higher cost of replacing that faculty member. There is some inequity in the pay system. He said there shouldn't be a discount to live in Idaho. If the situation doesn't improve, they will be losing their brightest and best and won't be able to replace them with equally skilled faculty.

Mr. Michaels says there needs to be more investment in Information Technology to make teaching more efficient. One senior researcher can bring in millions in grant money and also graduate students who want to work with him. One research professor leaving can have a huge economic affect on the university and the state.

There is a lot of collaboration between universities in an effort to stretch the education dollar. President Michaels said he had better luck as a CEO in the private sector by letting those people on the firing line solve the problems, rather than by specifying every detail.

He said the U of I has more problems than just salary. The University Project has had a negative effect on morale and will continue to be a financial burden for at least the next three years. He stated that morale problems should be solved by the individuals themselves. Blaming others is not productive.

Because of the shortfall, Mr. Michaels has encouraged each college to raise money for faculty salaries and scholarships. This is easier for some colleges than others.

President Bob Kustra of Boise State University said he is impressed with what we are doing in Idaho. He said "We don't intend to sit around and wait for things to get better, we are going to make things get better."

The turn over at BSU was 20% last year, 62% of the people left due to better job pay and opportunities. With the increase in technology firms in the Treasure Valley, there is a need to improve the programs in the expensive area of technology. He said BSU salaries are 22% behind in the sciences. Professors feel as if they are the "farm team." He asked for even a small raise for salaries this year. He said it is more cost efficient to pay present employees more, rather than have to replace them at higher salaries.

He said BSU is building a new classroom with extensive technology to take advantage of interactive learning for more efficient use of resources.

Diana Jansen, Administrator of Health and Welfare spoke regarding Human Resource issues in her department. (See Attachment #4) She asked first for greater flexibility in managing resources­recruiting and hiring, as well as rules and regulations. Many states have already implemented these suggested changes with good results.

She also asked for an increase in compensation for her staff. In certain areas of the state, salaries are a critical factor in turn over. The Blackfoot hospital had a 40% turn over in 6 months. It can cost $5,000 to recruit a nurse in addition to training. New candidates were demanding more money than current nurses were being paid. They offered closer to the market rate, and stopped the exodus.

In the area of clinicians, the turn over rate is about 15%. It is worse in some areas. In response to questions, Ms Jensen said she would like a dollar amount, and then the authority to move quickly and efficiently to meet needs.

Monica Young, of the Health & Welfare Department spoke. She is currently at the Idaho State School and Hospital in Nampa. She gave examples of things they are doing to recognize employees.

In response to questions, Ms. Jensen said H & W nurses mostly work in institutions. She said employees leave because: 1) better jobs, 2) better salaries, 3) supervision and work load problems.

Richard Jones, Director of the Veterans' Services, spoke on issues for nurses and others in his department. (See Attachment #5) He asked for an increase in salaries for all employees in his division, but especially for the nurses. Sometimes they have to hire temporary nurses--an extremely costly alternative. He said they are spending more on temporary nurses than they would spend to increase salaries as requested. The need for nurses nation-wide is going up, especially in long-term or geriatric care. An additional problem is that nurses in his division work 24/7. A 28% increase in pay is needed to bring nurses' salaries into line with the private sector.

Karl J. Dreher, Director of the Department of Water Resources, spoke. (See Attachment #6) He gave specific examples of how compensation issues have affected his Department and DEQ (Division of Environmental Quality.) He has 200 employees­permanent and temporary. Their salaries for scientists and engineers is significantly below market and it is costing the Department money. Engineer or science-type positions make up almost half of his department. His department is a leader in bringing technology to the state, but even a 1% increase won 't really help much.

More than anything else, they want a plan for correcting the inequity in pay. The problem is not the Hay System, it is that the Hay System hasn't been funded. When the disparity gets over 25% and there is no plan in place to make amends, employees feel they have to move.

In 2003, the Department's loss of technical people went up dramatically due to salary considerations. Replacements have to be offered more money, so they are approaching the position where they have to leave positions open to generate salary savings to hire new employees.

The bulk of their employees are older, and most likely will stick with the Department because of the State retirement benefits. However, the younger men won't stick around, and this will leave a huge gap in a few years.

He gave several examples. One was of a civil engineer with 8 years experience who audits the Federal purchase of water rights for the state­a very important position. She makes below what the State Labor Board says should be the minimum wage of a beginning civil engineer.

Friday Afternoon, January 9, 2004

Col. Dan Charboneau, of the Idaho State Police spoke. (See Attachment #7) He spoke about the impact of these lean times on the citizens of Idaho and the ISP. He pointed out that although the trooper is the most visible member of their team, other employees in communications and the crime lab are also vital to the success of law enforcement. He said his best people are family orientated and want a permanent position.

ISP does not offer career development enhancements. There is neither the funding, nor the discretion to deliver this. The discretion to make these decisions is a large problem. Many city police departments offer incentive programs, high entry salary, and more levels of advancement and pay.

During 2002, they lost 3 out of 13 scientist in the crime lab due to low pay which is 36% below the Mountain States. A lack of hope for advancement also contributes to low morale.

Low pay and lack of salary incentives continues to drain state employee talent. He is concerned for the safety of the citizens of Idaho as the force is becoming younger and lacks maturity. This year 10 troopers left, 19% of the local force.

He gave an example of a trooper who was leaving the force that day because of finances and concerns for his family.

There also is a serious concern in keep forensic services people. Sometimes it takes 18 months or longer to train a new employee. Last year they lost both of their forensic firearms experts and have been unable to provide this service for various agencies in the state.

Col. Charboneau presented his recommendations­more compensation for ISP employees, more flexibility to administer career development plans, encourage agency innovation and creativity, and review and update the benefits package for state employees. He fears that the ISP is becoming a training agency for other police departments and agencies.

Capt. Don Van Cleve, Investigative Captain for Region 3--SW Idaho, spoke. In 1999, the Criminal Investigative Division was folded into the ISP. They are involved in all crime scene investigations, except for large cities. They also do drug investigations and assist many small municipalities. They work behind the scenes, so do not get the press and media coverage. They have received numerous national awards, but cannot continue to do this job unless they receive more compensation. Many small agencies will be affected if the ISP loses forensic people.

Captain Stephen Jones, Patrol Commander for Region 3, South West Idaho, spoke about the recent drain on his officers. He has lost two, and he knows of six others that have applied to other agencies. He is allocated 40 patrol officers. If he loses these 6 officers, it will be a 20% loss and he will be losing his field training officers and his experienced people.

Upon questioning, Captain Jones said they have the same number of officers as they had in 1985, except for four motorcycle officers added a few years ago. He said the main reason employees are leaving is due to a lack of compensation­both in pay and benefits.

Director Charboneau gave examples of disparity in salary. Patrol officers make $18.25 an hour, Boise PD pays $22.19, Meridian $19.68, Oregon $22.21, and Washington $25.21.

Co-Chairman Andreason asked about a Career Development Plan. Director Charboneau said they have one, but the Legislature has never funded it. In answer to what discretion he wanted, he said beyond a CEC increase, he would like some discretion in FTP. He has to jockey people around to keep positions open until they can be filled. He suggested "red shirting" a position and using the saved salary to keep the people they now have in order to slow down the exodus. There have been suggestions to move Public Safety out of the Hay Plan. He said that any help will be appreciated.

When asked about the impact on the forensic lab, he said he has gone out on a limb and tried to find some creative ways to get the people he needed and to stop the exodus. There have been murders in Idaho, and the Lab could not provide the needed services. They are the 'one-stop shop" for all of the law enforcement in Idaho.

Vicki Patterson, lobbyist for the Idaho Public Employees Association, spoke. (See Attachment 8) Officers of that organization were present in the audience. She thanked the Legislature for their help with the cost of medical insurance, even though it didn't cover the entire increase. She asked that the Hay System be funded as it should be. She said a 5% increase would be 1% of the General Fund--money for those who take care of our state. She said the increase should come off the top of the General Fund. Her numbers were questioned by several members.

In response to questions, Ms. Patterson said there are a lot of employees who hold second jobs, but no one has exact numbers. She said some state employees are on welfare or are getting food stamps, and promised they will try and get numbers.

Senator Marti Calabretta spoke representing the state employees who contacted her in north Idaho. State retirees have a guaranteed COLA, but state employees do not. Their work load has increased and the staffing has decreased. The replacement workers drain the existing workforce when they have to be trained. They asked for help with the increases in the cost of health insurance, and a push for a healthier life style. Current state employees feel they have a contract with the state which has not been kept. She asked for an established level of COLA (Cost of Living Allowances.) When questioned, she suggested cutting programs rather than failing to give raises to the state employees. She said the budget problems should not fall on state employees.

Jon Sowers of the Department of Corrections, Deputy Director of Human Resources, spoke. (See Attachment #9a) He pointed out that their department deals with the most dangerous and difficult segment of the population. He thanked the Legislature for their help with premiums, but said wages have been frozen and employees have not been advanced in their careers. He asked for fair compensation for his employees. He said a problem that lasts for many years becomes more difficult to correct as more time passes. He said it is much better to maintain present employees than train new officers. Idaho Correctional Officers are paid the lowest in this general area of states, with the exception of Montana. It costs almost 2 million dollars a year to train new employees, which is between 1/3 and ½ of their total officers' salaries. Four out of five who leave, leave for higher pay. He urged the Legislature to "invest in employees."

Selina Carver of the Department of Health and Welfare spoke. (See Attachment #9b) She is a program manager in the Division of Health. She has salary savings but could not use them. Her division is federally funded and she gets money for raises, but can't give them to her employees. She said the system they are bound to is broken which results in low morale and high turn over.

Galen Lewis of the Department of Health and Welfare spoke. PERSI retirement salary is based on the highest 42 months of service. The freeze in salaries has impacted his retirement salary. Only 16% of state employees are at mid point or above within their grade. He said the rise in health costs is eroding the advantage in benefits the State used to have as an employeer..

Officer Van Waggaman of the Idaho State Police spoke. He was taking his last day of work to speak to the Committee, rather than spend his time saying good bye to his fellow workers. He came from a law enforcement family, but knowing he could not provide for his family, he is leaving the ISP. He said he loves the ISP and the training is excellent. The State Police has lost too many good officers, and more are leaving than the Director knows about. All of the officers who want to leave are finding jobs.

Ruth Ann Benjamin of Boise State University spoke. (See Attachment 9c) She took an early retirement and took a 58% pay cut to work at BSU. She represented the specialized workers at BSU who work on one-year contracts. They are not part of the Hay System or PERSI. They need college degrees and sometimes additional certification. Many work over 40 hours a week with no overtime. People are taking sick time because they feel so overloaded.

Bonnie Carlton, President of Classified Employees at BSU, spoke. One-third of the employees are making less than $10 an hour. Some cannot afford to buy needed food. Over 10% of the Classified workforce at BSU hold at least one extra job. Fifty per cent of the workers are single income families. In 25% of the dual income families, the spouse also holds a second job. Their take home pay is going down

Bill London Commissioner of the Idaho Conservation Officers' Association spoke. (Attachment #9d) They represent 99 Fish and game officers. Their department receives its money from hunting and fishing licenses and fees. Only 6% of their officers are at policy. Of the officers who have served 20 years, only 35% are at midline. For 20 years of service, 20% are at midline.

Rick Schenfield from the Idaho Liquor Store in Post Falls spoke. He is a liquor clerk. Washington liquor clerks make a great deal more and have guaranteed increases with good records. Washington State, just 6 miles down the road has much better benefits.

Alice Tauschiter spoke representing the classified employees from ISU. Their salaries are lower than the market by 14%. More funding is needed to bring salaries to the market level. State employees are paying too large a percentage of the Idaho State budget with their reduced salaries.

Doug Nilson, Chair of the Faculty Senate of ISU, spoke. At a meeting before Christmas to get comments for his presentation, he heard that morale has gone down and has adversely affected the quality of education of ISU. More of the same situation promotes anxiety among the faculty as the disparity becomes greater. It is difficult and expensive to find replacements for departing faculty members. Research and families suffer, as professors take consulting jobs off campus. This diminishes emotional attachment to the University as well as enthusiasm for the job. A small increase in salary, along with a plan to increase pay in the future, would be greatly appreciated.

Brenda Smith, Human Resources Director at North Idaho College spoke. She is new to public education and Idaho. She is concerned about her ability to recruit staff and faculty. Two-thirds of those who are leaving mention salary as the main reason. They are having difficulty keeping the nursing faculty. The low salaries are affecting the ability of the Colleges and Universities of Idaho to hire faculty and staff to train its citizens.

Andrew Hanhardt of Services Employees International Union (SEIU) spoke representing the state's employee members. He said State employees are working harder than ever with fewer employees. Although Idaho is not as bad off financially as other surrounding states, Oregon gave their state employees a raise.

Stewert Edwards of the Idaho State Tax Commission spoke regarding Holiday Pay. He works a different type of shift, so does not get the regular full holiday pay. He asked that the state insurance cover dependents whether they are children or parents. He has a mother who qualifies as his dependent on his tax returns.

Jon Sandoval, Chief of Staff for the Department of Environmental Quality, presented his written testimony. (See Attachment 10)

Kim Day, First Vice President of the SEIU spoke. She is an employee of the Idaho Industrial Commission. He said that Legislators rarely come to see the state employees at their work place, nor does the Governor. He pointed out the difference between meeting with managers, or meeting with state workers. He said the state managers are getting the benefits, not the regular state employees.

Ken Miracle, HR officer of the Department of Agriculture, spoke. In the Ag Department, the turn over rate has been historically low, however it is now at 17%. In the last 18 months, 20 employees have left because of salary. An increasing number of employees in the Department are aging and reaching retirement. Getting a needed Vet for their program was extremely difficult. The Federal Government is very attractive for their employees. Their department is becoming a training ground for employees who then move to other places.

Sergeant Bret Kimmel of the Department of Correction in the Maximum Security Division spoke. They have over 5000 prisoners. Money is an issue. Officers leave when their taxes and health insurance goes up. There are officers ' families who are eligible for food stamps and Medicaid. Their job is very difficult­every day they deal with violence and such things as HIV.

Officer Renea Bevry, of the Department of Corrections, spoke with passion. She gave an example of the daily weapons confiscations and other details of her job. She said that most of her officers earn under $12 an hour. She said that a $6 an hour increase would bring her to the minimum of an Idaho State Trooper.

Shelli Rambo Roberson, Program Manager for the Department of Health and Welfare in the area of pregnancy prevention, spoke. (See Attachment #11) She is passionate about her work and feels it is extremely valuable. However she said there is frustration with the inequity in the system. She said that keeping state employees through additional compensation can prove financially advantageous to the State.

David Winkler, who works as a teacher in the Department of Juvenile Corrections, spoke. He asked for both more compensation and medical coverage, even if the amount is small. Some of the staff positions in his section go unfiled and this can be a dangerous situation. He is retired military and has his benefits, so he said he was speaking for his employees more than for himself.

Debbie Coles, of the Idaho Transportation Department, spoke. She is 30% below market pay and has been with the Department for 20 years. She asked for help for the ISP and Correctional Officers before herself.

Tim O'Leary from ISP spoke. He said the ISP officer who left the force today walked out the door with $150,000 worth of training. He said we have to find a way to keep those top people or the state is going to pay the price in many ways.

Kip Sherry, of the IDOC spoke for himself. He is an IT Systems Director for the Department of Corrections, and an Idaho native for 7 generations. He would like to stay in Idaho. He gave examples of a program he instituted that is saving the state $15,000 a month by collecting child support and other payments from inmates. In a technology position, he is 47% below market value in Boise. Employees have been giving their best to the State, he asked that the Legislature give the state employees their best.

Ingrid Bolen, of the Department of Health and Welfare, spoke. She said it is with a heavy heart that she realizes she cannot grow in her field in the department. The only employees to make over the mid point have 33 years of service. She said she minds being broke.

Anita Hanks, who works for the Idaho Supreme Court, spoke for herself. Her pay increase when she came to the State has entirely disappeared during the last four years. Her family has to live an extremely modest life style. The work load has increased tremendously in the last year, but they have no new employees.

Robert McCall, of the SEIU, spoke for himself. He has been on the faculty at BSU for 18 years. He said the benefits of his job do not overcome the lack of salary. The Board of Education can remove entire sections of faculty, so he doesn't have job security. He said enrollment is up and some classes are so full, students must bring their own chairs. He asked for a "living wage."

Ron Stickland, an IT systems analyst for the Department of Corrections, spoke. He pointed out that most of the state employees have taken vacation time to appear before the Committee. He said it is obvious that state employees are not at the mid point within 5 years. Directors can't advance employees because they do not have the funds. The State of Idaho is a large business employer, not a small one. He suggested that the director of an agency should have more flexibility. He said there isn 't pay for performances­performance evaluations are either pass or fail, so 95% pass. Because the written notes then become crucial, one needs an eloquent supervisor, if one is to have a chance for advancement. This isn't fair.

Ann Heilman, of the Division of Human Resources, spoke in defense of the performance evaluations. She said that the previous evaluations were inconsistent and everybody was rated above average. She was instructed to fix this evaluation problem. Each job has performance expectations and each area is marked pass or fail. She said this new evaluation was presented to some committees, and is better than the old one.

Dylan McDonald, of the Idaho State Historical Society, spoke. There is a massive backlog of items that need to be classified. They have waited for five years for a promised building. He explained his life style is limited by the state budget cuts.

Karen McDonald, Dylan's wife spoke. (See Attachment #13) She works for Boise State. With student loans, they cannot afford to buy a house or start a family. She doesn't feel that she will be able to stay home should she have a child. She is afraid that she and her husband may have to face moving out of state. She teaches music lessons in the evening to provide extra funds.

Eugenia Horne spoke. She is not an employee of the state. She said she has been black listed by Ann Heilman for four years. She said she has seen people in various departments who have abused travel funds, but others covered for them. She said she was an internal auditor and got black listed for what she discovered. She claimed there is a waste of state funds.

Marie Collier, a registered dietitian who works with Central District Health, spoke. She works with the WIC program. According to the Department of Labor statistics for Boise, she is paid 26% below what a dietitian should receive in Boise. Some of her employees are receiving WIC benefits, or other such welfare benefits in order to survive. At her own expense, she must keep up her license. She has two children in college in Idaho, and expenses are going up.

Tony Ewing, of the Idaho State Tax Commission, spoke. He is a native of Idaho. He has worked as a firefighter and policeman in Idaho. He has only worked 5 months there and one co-worker who has worked there since 1997 makes a penny an hour more than he does. He said the Tax Commission is very cost effective because of the amount they collect. He trusts the Legislature will do the right thing.

Terry Stephens, with the Idaho Tax Commission spoke. Most of the employees at the Commission are single mothers. It is very difficult for them to work two jobs. He said the insurance situation "stinks." The Commission met their yearly collection revenue amount 4 months early. He feels that the Commission wastes money. He referred to a two and one-half day meeting held at the Red Lion­a very expensive place.

Kelly Gornik, of the Division of Building Safety, Electrical Bureau, spoke. She does the licensing of Electricians. She is proud to be an Idaho native. She is single, 48, and her children are grown. She lives in a single wide mobile home in Melba and commutes to Boise. She listed her medical problems and gave an example of her budget. She said there are dedicated funds for employees salaries, but they are not distributed when the money is there.

Billie Havery, an Administrative Assistant at the Department of Finance, spoke. She said that morning she had to decide between medicine, heat, or housing. She decided to forgo medicine. She has worked up to three jobs at a time to survive. She makes $13 an hour and her health insurance has not helped with her medical bills. She has sold her house, and now has had to sell her car.

Sgt. Floyd Barnes, of the Idaho Department of Corrections, spoke. He said he works with employees who love their job. They asked him to tell the Committee what they do for a living, how they try and help the inmates learn the tools to stay outside of prison. He works at Orofino. Some officers are on public assistance or are working two or three jobs in Orofino where he works. He asked that Corrections not be considered the "Black Hole of Idaho." If they can make a difference on one inmate's life, an officer can, in effect, pay his or her salary.

Robert L. Amoureux, of the Idaho Transportation Department, Design Section, spoke. He has been there since 1985. They are facing a problem in that they cannot hire the people they need because of the competition in salary. He has decided to retire early, in about a year and open his own business which he feels will earn twice as much as his present salary.

Steven Hughes, who works for the BSU landscaping crew, spoke. He is making $7.41 an hour. Most of his crew is on welfare or trying to get it. He cannot make it from pay day to pay day. He asked for a raise.

Aaron Walter, of the Division of Administration and Purchasing, spoke. He is due to retire in two years. He has been there 12 years and is roughly at the mid point of the salary range. He had to push to get to the mid point. The cost of health insurance is going to go up due to all the new drugs, and it will cost the state and the employees more money. He is thankful for the medical insurance. However, he gets his glasses from his wife's policy. He gave an example of how he saved the state money in his job­a multi-state purchasing arrangement for lab salaries, which saves more than his salary each year.

Robert Gale, who works for the landscaping crew at BSU, spoke. He makes $7.41 an hour. He rides the bus and his bicycle. He loves the work he does. He is 47 and in good shape. The BSU campus needs to be brought into the 21st Century. Some of the plumbing is quite antiquated. The crew hopes to make the campus beautiful, but he can't make it from pay check to pay check.

The meeting was adjourned at 5:35 by Co-Chairman Andreason. The next meeting will be at the call of the Chairs.



DATE: January 20, 2004
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

CONVENED: Chairman Andreason called the meeting to order at 1:30 P.M.
MINUTES: Chairman Andreason introduced committee secretary Janet Cook and committee page Shaylor Anderson.
Chairman Andreason announced Rules Review for the next three scheduled committee meetings. If possible will also hear eight of the nine RS's the committee has received thus far.
Vice Chairman Goedde opened the meeting for review and discussion of rules and regulations for the Department of Insurance. Rules for the Department of Insurance were presented by Shad Priest.
18-0115-0301 Fingerprinting of Agents, Solicitors and Brokers (see attached)
18-0119-0201 Insurance Rates and Credit Rating (see attached)
18-0138-0301 Insurance Availability for Ridesharing Arrangements (see attached)
18-0144-0301 Schedule of Fees, License and Miscellaneous Charges (see attached)
18-0153-0301 Rules Governing Continuing Education (see attached)
18-0159-0301 Rules to Implement the Recognition of 2001 SCO Mortality Table for use in Determining Minimum Reserve Liabilities and Nonforfeiture

(see attached)

Review and discussion of rules and regulations for the Division of Human Resources and Personnel Commission - Office of the Governor was presented by Ann Heilman.
15-0401-0301 Rules of the Division Human Resources and Personnel Commission

(see attached)

Senator Andreason had to interrupt Ms Heilman because of time and other meeting commitments by committee members. It was decided that the committee would hear the remainder of Ms Heilman's presentation at the next meeting January 22, 2004.
ADJOURNMENT: The meeting adjourned at 3:00 P.M.




DATE: January 22, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Compton, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Davis
CONVENED: Chairman Andreason called the meeting to order at 1:33 P.M.
MINUTES: Vice Chairman Goedde introduced Ann Heilman of the Division of Human Resources & Personnel Commission to continue from where she left off January 20, 2004 with Rules Review.
15-0401-0301 Rules of the Division of Human Resources and Personnel Commission

(see attached)

Vice Chairman Goedde asked for testimony and recognized Mr. Andrew Hanhardt, President of SEIU (Service Employees International Union 687) (testimony attached)
Vice Chairman Goedde then asked for further testimony and the committee recognized Mr. Tim O'leary, Human Resource Officer with ISP (Idaho State Police). Mr. O'leary gave testimony of full support from the ISP regarding the Rules of the Division of Human Resources and Personnel Commission.
Rules Review continued with Dwight Johnson from the Department of Labor
09-0130-0301 Rules of the Benefits Bureau to add Internet option for claimants.

(see attached)

09-0135-0301 Rules of the Employer Accounts Bureau regarding penalty fees on tax liens, time period change for request of transfer of client's unemployment insurance rate, and to help prevent SUTA (State Unemployment Tax Acts) dumping. (see attached)
Dwight Johnson from the Department of Labor introduced RS13581C1
RS 13581C1 Employment Security Law Amending Idaho Code

Clarify the definition of localized service

Clarify references to the Federal Unemployment Trust Fund

Assist in preventing Tax Evasion schemes used by employers (SUTA dumping)

Motion Senator Compton made a motion to send RS13581C1 to print, Senator Stegner seconded the motion. The motion carried by a Voice Vote.
Vice Chairman Goedde then introduced Mr. Dave Munroe, Administrator, Division of Building Safety to Review Rules. Mr. Munroe proceeded to introduce Bureau Chief of Plumbing, Ted Hogander, and Bureau Chief for Building Programs, Jack Rayne.

Mr. Hogander spoke to the rules regarding plumbing:

07-0201-0301

07-0207-0301

Rules Governing Repeal of Existing Plumbing Permit Rules and

Rules Governing Re-adoption of Rules of Plumbing Division that were written in 1974 and no longer apply should be removed from the rules.

07-0206-0301 Rules Concerning Uniform Plumbing Code of 2003
Mr. Rayne addressed the committee on rules dealing with Building Programs.
07-0303-0301 Rules Governing Modular Buildings addressing lost insignias, damaged insignias, 1975 fees for replacement of insignia plates.
07-0308-0301 Rules Governing Commercial Coaches, which become permanent so insignia plates lost or damaged doesn't matter.
07-0312-0301 Rules Governing Manufactured Home Installations directive have moved chapters to make more user friendly.
07-0501-0301 Rules of the Public Works Contractors License Board regarding proper licenses. (see attached)
Mr. Munroe ended rules review for the Division of Building Safety with:
07-0601-0301 Rules Governing Uniform School Building Safety (see attached)
ADJOURNMENT: Vice Chairman Goedde turned the meeting back to Chairman Andreason who reviewed the schedule for Rules Hearings for Tuesday, January 27, and Thursday, January 29 and then committee will begin taking action on the Rules. Meeting was adjourned at 3:05 P.M.




DATE: January 27, 2004
TIME: 1:30 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Compton, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Davis
CONVENED: Chairman Andreason called the meeting to order at 1:35 P.M.
MINUTES: Vice Chairman Goedde moved, seconded by Senator Compton, that the minutes of January 20, 2004 be passed. Motion carried by a Voice Vote.
Chairman Andreason noted for the members a typographical error in the Agenda regarding Department of Commerce Rules. The Committee would be hearing 48-0103-0301 and 48-0103-0302.
The committee recognized Mr. Carl Wilgus to speak on Rules Review for the Department of Commerce. Mr. Wilgus introduced Renea Nelson to present.
48-0103-0301 Rules of the Idaho Regional Travel and Convention Grant Program, which will revise the existing rules to increase the limit at which grantees can shift ITC dollars between line items during a grant cycle, raise the formal bid requirement for projects greater than $2,500, and to use same electronic format as grant applications for application amendments.
48-0103-0302 Rule to change the existing, required radio advertising credit statement and replace with a message driven, Idaho Travel Council approved statement.
Presenting Rules for the Idaho Board of Professional Engineers and Professional Land Surveyors, Mr. David Curtis.
10-0101-0301 Rules of Procedure to clarify the technology programs (see attached)
10-0102-0301 Rules of Professional Responsibility regarding communication with clients (see attached)
Rules of Accountancy presented by Barbara Porter.
01-0101-0301

01-0101-0302

01-0101-0401

Idaho Accountancy Rules to clarify some inconsistences in references to licenses. (see attached)
Real Estate Commission Rules presented by Donna Jones, Executive Director.
33-0101-0301 Rule of the Idaho Real Estate Commission

Rule deals with allowing licensees to "self-certify" their Continuing Education compliance. (see attached)

Donna Jones of the Real Estate Commission then introduced RS13469C1, RS13470C1, and RS13471.
RS13469C1 Define Brokerage Relationships to provide full services when representing both the buyer and the seller in same real estate transaction. (see attached)
Senator Goedde moved, and Senator Cameron seconded that RS13469C1 be sent to print. The motion carried by a Voice Vote.
RS13470C1 Requirements for License Renewal regarding continuing education requirements. (see attached)
Senator Compton moved, and Senator Werk seconded that RS13470C1 be sent to print. The motion carried by a Voice Vote.
RS13471 Amounts Collected from Civil Penalties regarding disciplinary fine moneys collected by the Commission. (see attached)
Senator Cameron moved, and Senator Werk seconded that RS13471 be sent to print. The motion carried by a Voice Vote.
ADJOURNMENT: Chairman Andreason adjourned the meeting at 2:26 PM




DATE: January 29, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Malepeai,

Deborah Spendler for Senator Werk

MEMBERS ABSENT/

EXCUSED:

Deborah Spendler for Senator Werk
CONVENED: Chairman Andreason called the meeting to order at 1:37 PM
MINUTES: Senator Malepeai moved, seconded by Senator Compton that the minutes of January 22, 2004 be passed. Motion carried by a Voice Vote.
Vice Chairman Goedde recognized Mr. Roger Hales, Attorney for IBOL to present Rules for Occupational Licenses.
24-0101-0301 Rules of the State Board of Architectural Examiners adding continuing education requirements for license renewal.
24-0401-0301 Rules of the Idaho Board of Cosmetology regarding the nail technology exam.
24-0701-0301 Rules of the Idaho State Board of Landscape Architects clarifies education, training, examinations, license fees and professional responsibility.
24-0801-0301 Rules of the State Board of Morticians law was amended to include provisions for Crematories & Funeral Directors for protection of the public.
24-0802-0301 Rules of the Idaho State Board of Morticians Governing Crematories so hearing sites will be accessible to persons with disabilities.
24-1801-0301 Rules of the Real Estate Appraiser Board deleting certificate and history record fees and clarifies continuing education requirements.
Vice Chairman Goedde then introduced Alan Winkle to speak on PERSI Rules.
59-0103-0301 Contribution Rules for the Public Employee Retirement System of Idaho adding a new section to bill 59-1361A, Idaho Code (see attached)
59-0103-0302 Contribution rates to properly fund benefits. Idaho Code Section 59-1322(1) (see attached plus rate table)
Mr. Dave Munroe, reviewed the final Rule for the Division of Building Safety:
07-0701-0301 Rules Governing Installation of Heating, Ventilation and Air Conditioning Systems specify the requirements for grand-fathering, certification, permitting, inspections and education.
The committee then heard testimony again from Mr. Alan Winkle, of PERSI introducing RS13464, RS13486, RS13513C2 and RS13580.
RS13464 PERSI To define "Employee" This rule would amend PERSI section 59-1302(14) to clarify the Optional Retirement Plans of universities - ORP covered employment cannot be considered in reaching eligibility requirements for PERSI covered employment (see attached)
Senator Davis moved, and Senator Stegner seconded that RS13464 be sent to print. The motion carried by a Voice Vote.
RS13486 PERSI to revise Death Benefit of a member to permit designated beneficiaries to waive their death benefit if they choose. (see attached)
Senator Stegner moved, and Senator Cameron seconded that RS13486 be sent to print. The motion carried by a Voice Vote.
RS13513C2 PERSI Remittance of Firefighter Retirement contributions and the way they are calculated. (see attached)
Senator Davis moved, and Senator Goedde seconded that RS13513C2 be sent to print. The motion carried by a Voice Vote.
RS13580 PERSI Social Security Number Protection (see attached)
Senator Compton moved, and Senator Davis seconded that RS13580 be sent to print. The motion carried by a Voice Vote.
ADJOURNMENT: Chairman Andreason adjourned the meeting at 3:02 PM.




DATE: February 3, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Noble
CONVENED: Chairman Andreason called the meeting to order at 1:37 PM
MINUTES: Chairman Andreason recognized Senator Werk who moved, seconded by Senator Compton, that the minutes of January 27, 2004 be accepted. Motion carried by a Voice Vote.
Chairman Andreason then recognized Marilyn Chastain, of the Department of Finance to hear RS13512 and RS13517C2.
RS 13512 Increase compensation to which a fund trustee is entitled, permits out of state CPA's to prepare and submit cemetery annual registration statements, and provides authority for Department of Finance to examine cemetery records.
Senator Compton moved, and Senator Werk seconded that RS13512 be sent to print. The motion carried by a Voice Vote.
RS 13517C2 Revising and modernizing the laws governing the regulation of the offer and sale of securities.
Senator Goedde moved, and Senator Davis seconded that RS13517C2 be sent to print. The motion carried by a Voice Vote.
Vice Chairman Goedde than directed the committee to the agenda regarding motions on Temporary Rules.
Senator Davis made a motion, and Senator Compton seconded that Temporary Rules 01-0101-0401 of the Board of Accountancy, and

07-0206-0301, and 07-0601-0301 of the Division of Building Safety be accepted. The motion carried by a Voice Vote.

Fee Rules were then introduced. Senator Davis made a motion, and Senator Stegner seconded that Fee Rule 01-0101-0302 of the Board of Accountancy be accepted. The motion carried by a Voice Vote.
Senator Stegner made a motion to approve all of 07-0701-0301 of the Division of Building Safety except for .024, .061, & .062.

Senator Davis seconded the motion that Fee Rule 07-0701-0301 of the Division of Building Safety be approved except for .024, .061, & .062. The motion carried by a Voice Vote.

Senator Compton made a motion, and Senator Werk seconded that Fee Rule 18-0144-0301 of the Department of Insurance be approved. The motion carried by a Voice Vote.
Senator Malepeai made a motion, and Senator Andreason seconded that Fee Rule 24-0801-0301 of Occupational Licenses be approved. The motion carried by a Voice Vote.
Pending Rules
The Board of Professional Engineers and Professional Land Surveyors made a request to the committee to reject Pending Rule 10-0102-0301. (see attached)
Senator Davis made a motion, and Senator Werk seconded that the committee reject Pending Rule 10-0102-0301 of the Board of Professional Engineers and Professional Land Surveyors. The motion carried by a Voice Vote.
Pending Rule 15-0401-0301 of the Division of Human Resources and Personnel Commission was discussed. Senator Davis made a motion, and Senator Werk seconded that the committee reject Pending Rule

15-0401-0301. The motion carried by a Voice Vote with Senator Compton and Senator Stegner voting no and wanting to go on record that they supported the Division of Human Resources and Personnel Commission in their efforts in writing these rules.

Senator Stegner then made a motion, and Senator Andreason seconded that all remaining Pending Rules be approved. The motion carried by a Voice Vote.
Chairman Andreason reminded the committee of Thursday's CEC meeting at 2:00 PM in the JFAC Room.
ADJOURNMENT: The meeting adjourned at 2:07 PM




DATE: February 10, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
CONVENED: Chairman Andreason called the meeting to order at 1:34 PM
MINUTES: Senator Compton moved, seconded by Senator Stegner that the

minutes of January 29, 2004 be accepted. Motion carried by a Voice

Vote.

Senator Stegner moved, seconded by Senator Goedde that the

minutes of February 3, 2004 be accepted. Motion carried by a Voice

Vote.

Chairman Andreason introduced Gubernatorial Appointee Brad Little,

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

Chairman Andreason introduced Gubernatorial Re-appointee William W. Deal, Idaho Endowment Fund Investment Board. Representative Deal reviewed his work history and investment experience. The committee will take action at our next meeting.
Chairman Andreason then introduced Gubernatorial Appointee Dr. Rick Miller, Idaho Endowment Fund Investment Board. Dr. Miller reviewed his work history and investment experience. The committee will take action at our next meeting.
Chairman Andreason introduced Gubernatorial Re-appointee M. Dean Buffington, Idaho Endowment Fund Investment Board. Mr. Buffington reviewed his work history and investment experience. The committee will take action at our next meeting.
Chairman Andreason introduced Gubernatorial Re-appointee Mary Hartung, Director of the Department of Insurance. Ms Hartung reviewed her work history and experience. The committee will take action at our next meeting.
Chairman Andreason then announced that Pamela I. Ahrens was out of

town, but had received a Gubernatorial Re-appointment to the Public Employee Retirement System of Idaho Board. Ms Ahrens will be back in

town for the February 17, 2004 committee meeting. It was decided the committee would take action on her re-appointment at that time.

Chairman Andreason then introduced Dennis Stevenson, Administrative Rules Coordinator, the Department of Administration to speak to the committee and clarify some questions regarding the Rules. Mr. Stevenson spoke of the House Committee accepting a rule and the Senate Committee rejecting same rule. In the House Committee that rule also had a section rejected, therefore the House will have to have a concurrent resolution drafted to show the rule is accepted with that exception. The Senate committee would then have to concur in order for that rejection to take place. However, since the Senate committee also rejected that rule making, you would then also ask for a concurrent resolution to be drafted that would then be submitted to the House, also for their concurrence to reject. It seems that both houses would not sign either resolution and in that case the agency will win and the rule will become final as it was presented to you. In order for a rejection of the Rule both houses have to convince each other to accept your concurrent resolutions. Senator Stegner asked if a committee wanted to change a rule in any way would that be considered an amendment? He asked too if it is not really their challenge in reviewing Rules to make amendments. Senator Cameron asked Mr. Stevenson if he could provide past examples to the committee of how similar instances have been handled. Chairman Andreason asked if it made more sense that both houses be required to concur in order for a rule to go forward, instead of the requirement that both houses reject. Now if one rejects it doesn't matter what the other committee decides. Mr. Stevenson explained many times one house may bring something to light that the other house may not see in their review. To say that the action taken by one committee negates the action of the other committee is incorrect. If you can agree to disagree or agree to agree then it is beneficial to the agency to be able to carry on with their work and get these rules done as a general requirement of statute to operate.
S1226 Relating to Employment Security Law Clarification
Dwight Johnson, Idaho Department of Labor spoke to this bill and the

technical changes in the first 3 sections as housekeeping amendments.

He then spoke to the SUTA Dumping provisions. (see attached)

Senator Davis asked if ownership is similar, would you acute the highest proposed tax rate to all of the business regardless of their nature? Mr. Johnson asked Mr. Mark Whitworth, Bureau Chief of the Department of Labor to respond. Mr. Whitworth said it is perfectly all right for businesses to conduct their business, purchase other businesses, to succeed in other businesses as long as the ownership and management are not substantially the same. They have a right to decide if the experience record would transfer with them. The legislation would try to prevent those who try to manipulate the experience rating system by purchasing shell transaction businesses where businesses have ceased to operate and have a minimal or low tax rate. Senator Goedde asked if an individual has several businesses, are those companies individually rated for experience or is it a group rate? Mr. Whitworth responded that each business has it's own tax rate. Mr. Johnson related some statistics of this last year discovering four cases of SUTA Dumping that cost the Unemployment Insurance Trust Fund some $436,000.

MOTION Senator Goedde made a motion that S1226 be sent to the Senate with a Do Pass recommendation. Senator Compton seconded the motion. The motion carried by a Voice Vote. Senator Goedde will sponsor the Bill.
RS13813C1 Chairman Andreason introduced Pro Tem Robert Geddes to introduce RS13813C1- Naturopathic Medicine Licensing. The purpose of this legislation is to provide standards of practice and education, a code of ethics for practitioners, state administrative supervision, licensure, regulation and disciplinary procedures for every person providing naturopathic medical services in the state.
MOTION Senator Compton moved and Senator Noble seconded that RS13813C1 be sent to print with the suggested recommendation that it be heard by the Senate Health and Welfare Committee. The motion carried by a Voice Vote.
RS14022 Senator Goedde spoke to the committee about RS14022 a Joint Memorial to provide that the states continue to be the sole regulators of the business of Insurance regulation.
MOTION Senator Cameron moved and Senator Werk seconded that RS14022 to print. The motion carried by a Voice Vote, and Senator Goedde will sponsor the memorial on the Floor.
S1276 Marilyn Chastain, with the Department of Finance presented S1276. This bill amends the Endowment Care Cemetery Act by increasing the amount of compensation to which a fund trustee is entitled from .5% to 1.5% of the principal of the trust fund to better reflect current market compensation rates. It permits out of state certified public accountants and the Canadian equivalent of a CPA to prepare and submit cemetery annual registration statements. This bill also provides explicit authority for Department of Finance examination of cemetery records. Senator Werk had questions regarding the funding mechanism to the Trust Account and if in purchasing a plot there is notification of the percentage of said purchase that goes into the Trust account for the perpetual care. Ms Chastain said she did not believe there was a disclosure in place.
MOTION Senator Stegner moved and Senator Compton seconded that S1276 be sent to the Senate with a Do Pass recommendation. The motion carried by a Voice Vote, and Senator Compton will sponsor this Bill.
S1277 Mr. Mike Brassey, Attorney for the Investment Company Institute. Mr. Brassey is part of a group put together by the Department of Finance, at the request of the Commission on State Laws to review the model law that has become S1277. This bill substantially revises and modernizes the laws governing the regulation of the offer and sale of securities. The bill closely tracks the Uniform Securities Act recently adopted by the National Conference of Commissioners on Uniform State Laws. In its main provisions this Bill authorizes the Department of Finance to seek court orders requiring violators to disgorge illicit profits, pay restitution and pay into the Securities Investor Education and Training Fund. It increases criminal penalties in cases of fraud against elderly and vulnerable adults, and in instances where the funds taken are retirement or home equity funds. This Bill requires banks with on-premise brokerage firms to comply with federal rules. It will modernize, simplify, and broaden exemptions from securities registration with the state. Finally this Bill promotes consistency with other states and the Securities and Exchange Commission in the definition of "security". (see Uniform Securities Act 2004 attached)
MOTION Senator Cameron moved and Senator Stegner seconded that S1277 be sent to the Senate with a Do Pass recommendation. The motion carried by a Voice Vote, and Senator Davis will sponsor this Bill.
ADJOURNMENT The meeting adjourned at 3:10 PM




DATE: February 12, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Mrs. Davis, Compton, Noble, Werk, Malepeai
CONVENED: Chairman Andreason called the meeting to order at 1:32 PM
MINUTES: The meeting opened with Gubernatorial Appointments.
Gubernatorial

Appointment

Discussion for the appointment of Brad Little of Emmett, Idaho to the Idaho Endowment Fund Investment Board. Term to expire April 11, 2007
Senator Compton made the motion, and Senator Goedde seconded that the appointment of Brad Little to the Idaho Endowment Fund Investment Board be approved. The motion carried with a Voice Vote.

Senator Davis will sponsor the appointment.

Gubernatorial

Reappointment

Discussion for the reappointment of William W. Deal of Nampa, Idaho to the Idaho Endowment Fund Investment Board. Term to expire April 11, 2007
Senator Goedde made the motion, and Senator Compton seconded that the reappointment of William Deal to the Idaho Endowment Fund Investment Board be approved. The motion carried with a Voice Vote.

Senator Andreason will sponsor the reappointment.

Gubernatorial

Appointment

Discussion for the appointment of Dr. Rick Miller of Caldwell, Idaho to the Idaho Endowment Fund Investment Board. Term to expire April 11, 2004
Senator Malepeai made the motion, and Senator Compton seconded that the appointment of Dr. Rick Miller to the Idaho Endowment Fund Investment Board be approved. The motion carried with a Voice Vote.

Senator Stegner will sponsor the appointment.

Gubernatorial

Reappointment

Discussion for the reappointment of M. Dean Buffington of Boise, Idaho to the Idaho Endowment Fund Investment Board. Term to expire April 11, 2007
Senator Cameron made the motion, and Senator Goedde seconded that the reappointment of Dean Buffington to the Idaho Endowment Fund Investment Board be approved. The motion carried with a Voice Vote.

Senator Compton will sponsor the reappointment.

Gubernatorial

Reappointment

Discussion for the reappointment of Mary Hartung of Boise, Idaho as Director of the Department of Insurance. Term to expire January 4, 2007
Senator Cameron made the motion, and Senator Goedde seconded that the reappointment of Mary Hartung as Director of the Department of Insurance be approved. The motion carried with a Voice Vote.

Senator Cameron and Senator Goedde will co-sponsor the reappointment.

RS14047 Concurrent Resolution stating findings of the legislature and rejecting certain Rules of the Division of Human Resources and Personnel Commission.
Senator Cameron made the motion, and Senator Goedde seconded that RS14047 be sent to print. The motion carried with a Voice Vote. Senator Compton voted no and wanted to go on record.
RS13928 Jeremy Pisca representing the Idaho Building Contractors Association introduced RS13928 - Contractor Registration to require all contractors to be registered with the State Division of Building Safety.
Senator Cameron made the motion, and Senator Compton seconded that RS13928 be sent to print. The motion carried with a Voice Vote.
RS13947 Vicki Patterson representing the Idaho Public Employees Association with the assistance of Alan Winkle of PERSI spoke on RS13947 to strike the limit on unused sick leave which shall be transferred to the Employee's Retirement Account. Employees now can have 600 hours when they retire. If they retire and have more than 600 hours, they would benefit by coming to work and not just staying home. Senator Andreason stated that it provides a better incentive for State Employees to stay on the job and not take time off just because they have sick leave available. Senator Werk asked if that was a state sanctioned and approved activity to use your sick leave when you aren't sick. Ms Patterson answered no. Senator Cameron

asked as to the effect the cost would have on the Public Employees paycheck. Since Public Employees pay at least one third of the cost of their retirement system, would it not stand to reason that they would pay one third of the cost of any benefit added to that retirement system including this benefit. Senator Andreason explained you can now use half of your accumulated sick leave up to a maximum of 600 hours. This would remove the 600 hour portion but it wouldn't remove the requirement of only using half your sick leave. Mr. Winkle this by removing the tap would increase the sick leave payment raise, that is employer funded not employee funded, per IRS. It would go from a 0.65% of pay, the current rate is 1.05% of pay, and so .4, or 40 basis points, increasing the contribution rate on about 660 Million dollar payroll. So that is how they come to the figure. Senator Cameron would you raise employers rates by .4 of 1% or would you absorb the cost. Mr. Winkle the way the state is funded now it could not absorb the cost. The actuary is recommending an increase of 40 basis points. Senator Cameron would this be an additional increase from the PERSI increase that we previously passed to the floor? Mr. Winkle said it would only apply to State Employees and yes it would be an additional rate increase. Senator Goedde stated the CEC committee recommended approval of a 2% salary increase plus 1% if it is there. Are you telling me that your members would like to have 1.32 million dollars of that increase taken from them and put into this benefit? Ms. Patterson absolutely not. This is over and above and is another perk for State Employees who are so far behind right now. Senator Goedde would you characterize the State and its Employee benefit package

as being less than adequate? Ms Patterson studies show we are not in the top percent. Senator Goedde said he would like to see a comparison state by state of where Idaho State Employee's package lines out if available. If we are substandard it would make me more apt to vote in favor. Senator Stegner asked that if this had not been addressed recently and wanted to know when. Senator Werk asked how many employees are benefitting? Would like some figures. Senator Malepeai said because of the lengthy agenda maybe they could sort out issues after sending to print.

Senator Malepeai made the motion, and Senator Werk seconded that RS13947 be sent to print. The motion carried with a Voice Vote, however there were three No votes.
RS13984 Senator Kent Bailey presented RS13984 relating to Administrative Rules providing legislative intent amending section 67-5222 to provide for economic impact statements and regulatory flexibility analyses prior to the promulgation of agency rules upon written request of twenty-five persons or a business entity and to define terms. The analysis of the impacts can be completed with the help of industry/trade association and service providers so there is no fiscal impact to the general fund.
Senator Cameron made the motion, and Senator Goedde seconded that RS13984 be sent to print. The motion carried with a Voice Vote.
S1240 Real Estate Brokers and Salespersons to define types of Brokerage relationships and to specify terms of express written consent to Dual Representation. Donna Jones with the Real Estate Commission presented this bill. (see attached)
Senator Compton made the motion, and Senator Noble seconded that S1240 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor this bill.
S1241 Real Estate Brokers and Salespersons to specify requirements for License Renewal and certain definitions regarding Certifications. Donna Jones with the Real Estate Commission presented this bill. (see attached)
Senator Goedde made the motion, and Senator Werk seconded that S1241 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor this bill.
S1242 Real Estate Brokers and Salespersons amending section 54-2059 to Govern the use of amounts collected from Civil Penalties. Donna Jones with the Real Estate Commission presented this bill. (see attached)
Senator Compton made the motion, and Senator Noble seconded that S1242 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Noble will sponsor this bill.
S1256 Mr. Alan Winkle of PERSI presented S1256 as a Housekeeping bill. This bill clarifies an eligibility issue created by the interplay between PERSI and the Optional Retirement Plans (ORPs) of universities. Because of the way "employee" is defined in Idaho Code 59-1302(14), it is possible for ORP covered employment to be counted toward PERSI eligibility in cases of dual employment. This means that a person could be eligible for PERSI with one employer even if they work less than 20 hours for that employer. This creates administrative problems because there is no practical way for that employer to track hours with the ORP covered employer. This bill would amend PERSI section 59-1302(14) to clarify that ORP covered employment cannot be considered in reaching eligibility requirements for PERSI covered employment.
Senator Stegner made the motion, and Senator Malepeai seconded that S1256 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Malepeai will sponsor this bill.
S1257 Alan Winkle presented S1257. This bill amends section 59-1361(4), Idaho Code, to permit designated beneficiaries to simply waive their death benefit for any reason. Beneficiaries will be able to more easily make the benefit available to other family members for financial planning purposes. The designated beneficiary would only be required to sign a notarized waiver form rather than having to file court documents. If a designated beneficiary waives a benefit under the amended law, the benefit would be paid as if the beneficiary had predeceased the member.
Senator Cameron made the motion, and Senator Werk seconded that S1257 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Noble will sponsor this bill.
S1258 This bill amends section 72-1431 and 72-1432, Idaho Code. First, it converts the compensation component to salary earned in a particular pay period rather than salary paid in a month. Second, it changes the measurement period to July 1 through June 30 (rather than September 1 through August 31), to more closely track the state fiscal year and to provide additional time for employers to change their payroll deductions. These changes will have no impact on the Firefighters Retirement Fund members and will be more administratively accommodating for employers and the PERSI rate calculation.

Section 3 of the bill addresses transition between the current and new methodologies used to determine the Statewide Average Firefighters Wage.

Senator Compton made the motion, and Senator Goedde seconded that S1258 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor this bill.
S1259 This bill does not eliminate the requirement that social security numbers be provided to PERSI when seeking an approved domestic retirement order. It does eliminate the requirement that social security numbers be included in domestic retirement orders so they do not become public records when filed with the court. Since PERSI already has access to the member's social security number, only the member's account number needs to be included in the domestic retirement order. The alternate payee's social security number still needs to be provided to PERSI before an order is approved, in a manner outside of the order, as determined by the retirement board.
Senator Werk made the motion, and Senator Goedde seconded that S1259 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor this bill.
Chairman Andreason asked the committee if there was no objection they would send RS14063C1, RS14001C2, RS14000, RS14013, RS14102, RS13804C2, RS13498A1 to print. There were no objections.
ADJOURNMENT The Meeting adjourned at 2:37 PM




DATE: February 17, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
CONVENED: Chairman Andreason called the meeting to order at 1:34 PM
MINUTES: The meeting opened with a motion by Senator Goedde and seconded by Senator Stegner to approve the CEC Minutes of February 5th, 2004. The motion carried with a Voice Vote.
Senator Compton made a motion and Senator Goedde seconded that the Senate Commerce and Human Resources Minutes of February 10, 2004 be accepted. The motion carried with a Voice Vote.
Gubernatorial

Appointment

Discussion for the appointment of Pamela I. Ahrens to the Public Employee Retirement System of Idaho Board to serve a term expiring July 1, 2008.
Senator Davis made the motion, and Senator Werk seconded that the appointment of Pamela I. Ahrens to the Public Employee Retirement System of Idaho Board be approved. The motion carried with a Voice Vote.

Senator Davis will sponsor the appointment.

H533 Lonna Gray, Manager of the Industrial Special Indemnity Fund spoke to Idaho Code Section 72-334, which became effective July 1, 1997, mandating that before filing a complaint for benefits from the Industrial Special Indemnity Fund, a claimant, employer/surety, or self-insured employer must provide materials to the Fund manager for evaluation of the merits of the claim. The 60-day evaluation and determination process mandated by the statute allows for and has resulted in the resolution of many claims by means of an approval or settlement and has helped avoid the need for claimants, employers/sureties or self-insured employers having to file a complaint against the Fund with the Industrial Commission. Prior to the adoption of the Idaho Code Section 72-334, the fund reported significantly higher litigation costs. For fiscal year 1996, the Fund reported nearly $800,000 in litigation costs. Each year since the enactment of this code, litigation costs have substantially decreased. Litigation costs for fiscal year 2002 total $318,000. The decrease in litigation expenses is believed directly related to the evaluation and determination process mandated by this code. When initially enacted, the legislation provided for a sunset date for this code on June 30, 1999. In 1999 the legislature extended the sunset clause to June 30, 2004. This would extend the sunset clause to June 30, 2008. Senator Davis asked why the sunset clause and why not take it off all together? Ms Gray said it was important for the legislature to review on a periodic basis the effectiveness of this legislation.
MOTION: Senator Goedde made a motion, and Senator Compton seconded that H533 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
H484 David Curtis, with Engineering & Land Surveyors said the purpose of this legislation is to define "basis of bearing" in the records of survey law, to clarify that all corner records should be referenced on a survey, clarify that locations must include a bearing and distance, and to clarify what surveys of record must be referenced. (See attached) Senator Davis asked if consumers, industry, and developers if they had expressed some concern with these additional items that must be disclosed. Mr. Curtis responded that it would not cost the surveyors any more to simply show the information.

The information required here is developed in the course of the survey and would simply clarify that the information is shared with all. Senator Davis asked when it is required for a survey to be recorded. Mr. Curtis said there are three factors that trigger the requirement that a record survey be filed: 1. If there is a disclosure of errors or discrepancies in previous surveys. 2. If it discloses or creates corners or boundaries not previously of record. 3.

If it discloses errors of discrepancies in the public land survey. Senator Werk asked if there was a industry standard to follow. Mr. Curtis said the standard is the statute.

MOTION: Senator Noble made a motion, and Senator Davis seconded that H484 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Noble will sponsor the bill.
H485 David Curtis, with Engineering & Land Surveyors explained the purpose of this legislation is to clarify education, examination and graduate education requirements to meet qualifications for licensures. (See attached) Senator Goedde asked if there are enough educational avenues in Idaho for these requirements to be met? Mr. Curtis responded that ISU has a four year degree in Geomatics. BSU has a degree in Civil Engineering, as does the UofI. All three of those institutions have course work which would allow those requirements to be met. Senator Stegner asked if this would change the status of engineers and their authority to do surveys? Mr. Curtis said no, since 1978 engineers have to demonstrate appropriate education experience and pass the examination with approximately 15 credits in surveying.
MOTION: Senator Goedde made a motion, and Senator Werk seconded that H485 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor the bill.
H483 Rayola Jacobsen, with the Occupational License Bureau said the purpose of this bill relating Licensure by the Idaho Board of Cosmetology is to amend section 54-805, Idaho Code to delete the requirement for one year of work experience in a licensed establishment for an instructor license. Six months of student teaching is deemed sufficient to qualify a license holder to become an instructor. Senator Werk asked what an Esthetician was and did he need one? Ms Jacobsen An Esthetician removes unwanted facial hair and that she didn't know about the second part of his question.
MOTION: Senator Compton made a motion, and Senator Noble seconded that H483 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor the bill.
H486 Rayola Jacobsen, with the Occupational License Bureau introduced this bill to the committee relating to the scope of authority of the Board of Real Estate Appraisers to amend section Idaho Code to add language that would allow Idaho transportation department personnel to estimate the value of property owned by the Idaho Transportation department that has been declared surplus or property that is subject to eminent domain when the property value would be $10,000 or less. Additionally this language would allow state certified general real estate appraisers exemption from the requirements of USPAP (Uniform Standards of Professional Appraisal Practice) when they are working under the provisions of this chapter. Revising the current law will clarify requirements for these estimates and will remove concerns from appraisers and appraiser reviewers as to their legal authority. Senator Noble asked what is done with that land? Ms Jacobsen responded it is incorporated into the subject property.
MOTION: Senator Noble made a motion, and Senator Werk seconded that H486 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Noble will sponsor the bill.
H498 Rayola Jacobsen, with the Occupational License Bureau introduced this bill to the committee amending Idaho Code to authorize the Bureau to conduct hearings and proceedings to revoke, suspend, refuse issuance or refuse renewal of Licenses, certificates or authorities, to authorize the Bureau to suspend or refuse issuance of such licenses, certificates or authorities, to authorize the Bureau to conduct investigations into violations, to require regulated professionals to answer questions and produce documents, to provide that failure to disclose requested information shall be grounds for discipline, to provide for the filing of a petition to modify or set aside an investigative demand and to provide that such petition filing shall not constitute misconduct or grounds for discipline except in specified circumstances. Senator Goedde asked if there was anything in this petition that specifies a demand for a reasonable time. Mr. Michael McPeek, Deputy Attorney General said there is no specific time provision that I am aware of in any of the legislation of Idaho Code that relates to any of the subpoena powers nor is there in the Idaho Rules of Civil Procedure that claimants for example can service a summons. That would be inherently taken care of with a motion to quash. I am not aware of any provision of Idaho Law with a time requirement.
MOTION: Senator Goedde made a motion, and Senator Compton seconded that H498 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
ADJOURNMENT The meeting adjourned at 2:25 PM




DATE: February 19, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
CONVENED: Chairman Andreason called the meeting to order at 1:30 PM
MINUTES: The meeting opened with a motion by Senator Malepeai and seconded by Senator Compton to approve the Minutes of February 12, 2004. The motion carried with a Voice Vote.
H522 Mr. Gavin Gee, Director, Department of Finance spoke to the committee on this bill to amend the section of the Idaho Credit Code that defines the federal Consumer Credit Protection Act as including amendments to that law up to January 1, 2003. The Department would need only to update the definition to reference 2004 so as to include any amendments to the federal law made in the last year.
MOTION: Senator Werk made a motion, and Senator Compton seconded that H522 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor the bill.
H523 Mr. Gee reported to the committee the purpose of this bill is to amend the definitional section of the Idaho Residential Mortgage Practices Act referencing the following federal laws/regulations: Real Estate Settlement Procedures Act, Regulation X, Truth in Lending Act, and Regulation Z. This Legislation will update the definitions of the foregoing federal laws/regulations to include changes to such laws/regulations from January 1, 2003 up to and including January 1, 2004.
MOTION: Senator Goedde made a motion, and Senator Werk seconded that H523 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
H524 Mr. Gee reported the Idaho Bank Act contains limitations on amounts of certain types of loans that may be made by Idaho state-chartered banks. The Department regularly receives requests from banks to exceed these limits, primarily because the limits are outdated and inconsistent with limits imposed by other states and the federal government. The legislation would reduce the regulatory burden for Idaho state-chartered banks by revising the limitations to clarify them, raising the amounts, and making the definitions used to determine the limitations more uniform with those applicable to banks in other states and national banks. There was an amendment to this bill on page 5 of the printed bill, in line 40, following "includes" insert: ', for the purposes of this section"
MOTION: Senator Cameron made a motion, and Senator Goedde seconded that H524 be sent to the amending order. The motion carried with a Voice Vote.
S1340 Jeremy Pisca, representing the Idaho Building Contractors Association presented S1340 to the committee. This bill relates to Contractor Registration. The state of Idaho has no way of stopping unscrupulous or dishonest building contractors from continuing to practice in this state. There is nothing in current law that would prohibit a contractor - even if known to be a "bad actor" - from acting as a building contractor. This bill will create a registration system for contractors and would require that all contractors be registered with the state Division of Building Safety. It would provide a mechanism for the state to remove contractors who prove to be incompetent, dishonest, or unprincipled from the registry. Application for registration would require a statement disclosing whether any person with an ownership interest in the business has ever been suspended or prohibited from practicing construction in Idaho or any other state. It would require proof that the applicant has complied with Idaho's workers compensation law, and that the applicant has a general liability insurance policy in an amount not less than $300,000. The program is designed to be self-funded from building contractor registration fees and will not impact the general fund. (see attached with highlights) Senator Noble spoke in opposition to this bill that registration would create a false sense of security for the consumer. Senator Compton and Senator Malepeai both spoke in support of this bill to at least help with some checks and balances. Chairman Andreason asked if there was anyone who wanted to speak to S1340. Mr. L. Maxwell spoke against licensing in general and his opposition to any registration or licensing. Senator Davis questioned Mr. Maxwell's opposition to all licensing.
MOTION: Senator Compton made a motion, and Senator Davis seconded that S1340 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote with Senator Noble in opposition. Senator Goedde will sponsor this bill.
S1342 Senator Cameron asked that S1342 be put on hold in committee. Chairman Andreason asked for and received unanimous consent that S1342 be held in committee.
S1339 Senator Kent Bailey presented this bill to the committee. S1339 provides for the preparation of economic impact statements and regulatory flexibility analyses prior to the promulgation of agency rules upon written request of twenty-five persons or a business entity. Senator Compton asked how a business entity was defined for this purpose. Senator Bailey explained an entity would be a business that was affected by that particular rule. Senator Compton didn't see where this legislation specifically stated that the entity had to be affected by the rule and Senator Bailey said there is an assumption that the intent is for those people who are involved with those regulatory rules that apply to their business. Senator Werk asked, "If I had a business to monitor government, "I Hate Government Inc." and I wanted to have an impact statement done on every rule promulgated by the different agencies, wouldn't that in fact create an impact to the general fund?" Senator Bailey said he would hate to say no, that it is an unknown at this point. Other testimony regarding S1339 from Jim Hogge, State Director, Idaho Small Business Development Center. (see attached) Senator Goedde asked Mr. Hogge if he thought this would impact the general fund. Mr. Hogge said he thought there would be some impact. Senator Cameron asked if a comparison of Idaho to other states regarding "Business Friendly" had been done. Mr. Hogge said Idaho is very Business Friendly. Senator Werk asked Mr. Hogge if he thought there could be some coordination in promulgating these rules by two or three agencies as oppose fourteen different agencies. Mr. Hogge replied that any place we can combine form we can take information and answer questions on similar reporting will certainly ease things.
Senator Cameron suggested because of the possible impact to the general fund that holding this bill in committee for a couple of days would be a good idea. He would like to work with Senator Bailey with regards to the general fund impact. Senator Cameron made a motion that the meeting be adjourned. Senator Werk seconded the motion. Chairman Andreason took the opportunity to present the committee Page, Shaylar Anderson with a watch to show appreciation for all of his hard work.
ADJOURNMENT The meeting adjourned at 3:04 PM




DATE: February 24, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk,
MEMBERS ABSENT/

EXCUSED:

Senator Malepeai had an Excused Absence
CONVENED: Chairman Andreason called the meeting to order at 1:35 PM
MINUTES: The meeting opened with a motion by Senator Werk and seconded by Senator Compton to approve the Minutes of February 17, 2004. The motion carried with a Voice Vote.
S1338 Vicki Patterson, representing the IPEA spoke to the committee regarding the Idaho Personnel System to strike the limit on unused sick leave which shall be transferred to the Employee's Retirement Account. (see attached). Ann Heilman, Administrator for the Department of Human Resources testified to concern of the fiscal impact being enormous in a time when they are trying to find every dollar possible to address salaries. The monies used would only benefit a small percentage of employees. Senator Goedde asked Ms Heilman if with the CEC recommended salary percentage increase the monies for this bill would be counterproductive. Ms Heilman agreed. Senator Werk expressed concern regarding the small percentage of employees who would benefit and he was told only about 10% would benefit. Senator Cameron asked what it would cost to fund this retirement account. Ms Heilman responded with $1,320,000 as a direct hit and it was her belief that it was on going. Mr. Kelly Buckland, Director, SILC feels this bill in the long run would help fray the Medicaid costs. Senator Cameron asked if it was Mr. Buckland's position as a State Employee, that he would rather see the sick leave than the salary increase? Mr. Buckland replied as a State Employee he would like very much to have a salary increase, as he hadn't seen an increase for several years, but as a Tax Payer he felt this legislation for the State is very important. The longer you can maintain your health, the longer you can stay off Medicaid. Mr. Tim O'Leary, Human Resource Manager for Idaho State Police, spoke that (1) Our current system as it is benefits mostly those who use all of their sick leaveand even some who abuse it, so when theyretire they have 1200 hours on the books and are able to convert the sick leave. Some are blessed with good health and they have a higher sick leave balance or they would come to work ill to build the balance. (2) People who would or could retire look at retiree insurance and continue to work for a few more years. Most of these people are at the higher end of the pay scale. If they chose to retire we would replace them at a much lower pay, so we are paying insurance but, are paying significantly less salary. (3) If you are familiar with Risk Pools, we would be able to take these retirees and lower the age in the Risk Pools for those needing health care. Senator Stegner said to Mr. O'Leary, you came before the CEC advising us to raise general salaries to keep experienced people and now you are saying if those experienced people retire early we can replace them with cheaper employees. Do you want it both ways? Mr. O'Leary said the people we are losing are not those at the upper end, because we have "golden handcuffs" for lack of a better term. We are losing the people who have been with us for 4 or 5 years and walk out with $150,000 training, who should be our career rising stars. Senator Goedde

asked Mr. O'Leary if he would be willing to risk ten million dollars to fund this sick leave for 1.32 million dollars. Mr. O'Leary said he was unsure how that trigger point works, but that he would be willing to take that risk.

MOTION: Senator Compton made a motion to hold this bill in committee, seconded by Senator Stegner. The motion carried with a Voice Vote to hold S1338 in committee. Senator Werk voted no.
S1335 Vicki Patterson said the purpose of this legislation is to improve the problem solving procedure for Idaho's State Employees. Ms Patterson requested that SB1335 be withdrawn from the committee consideration. (see attached)
Chairman Andreason asked for and received unanimous consent that S1335 be held in committee.
S1341 Amanda Brown presented for Senator Ingram bill S1341 to require state employees advance to the appropriate salary range of the pay grade schedule in accordance with statute. This is a language change from "may expect" to "shall" (see attached)
MOTION: Senator Cameron wanted the record to reflect that there is a concern and we do realize a compromise needs to be met. However, there is no way that the budget can handle an on going annual hit of $12,500,000 and not dramatically affect some very important programs as well as affect the number of employees we have. Senator Cameron made the motion, and Senator Stegner seconded that S1341 be held in committee. Senator Werk said he would support the motion reluctantly, and stated, "We have a broken system that needs to be fixed." Senator Goedde stated the CEC came up with $20,000,000 with a 2% to support raises for State Employees. If we went on with this it would gobble $12,000,000 of the $20,000,000 to bring those who are under the mid-point to the mid-point and he didn't know how equitable it would be to the balance for employees of the State of Idaho. Chairman Andreason said he was involved when the Hays System was incorporated and it was considered one of the best in the world. It has proven to be an excellent system, but breaks down with lack of funding. The motion passed with a Voice Vote that S1341 be held in committee.
S1337 Senator Burkett presented S1337 a bill to require that the first one percent of any pay increase for State Employees will be distributed across the board. After that any additional amounts above that would be discretionary. Ms Heilman said if we change the compensation system to allow for an automatic 1% across the board we are also giving our managers less flexibility to deal with rewarding performance where they see fit. Anytime you make anything automatic then you force that money to be spent where it not best needed. The other issue regarding lower paid staff really don't get much of a raise, but my advice is for managers to take a very good look at senior management staff, employees who make large amounts of money and determine if in fact their performance dictates a raise and if not reallocate that money for the employee who merits a raise. We do need to do something to address general raises for our employees, but it is really a bigger issue than just making the 1% automatic. Senator Werk asked if we were able to allocate sufficient resources to award our State employees would this be an issue in flexibility. Ms Heilman if we had a cost of living and market based pay, and moved people through this pay for performance this general pay increase would probably be built into the automatic first pay award. Senator Compton said so whatever you lock in across the board you are taking away any flexibility to award good and high performance. Ms Heilman agreed. Senator Cameron asked if Ms Heilman could give a rough estimation of the average annual lowest salary of State Employees and the highest. Ms Heilman saidlowest is about $7.00 an hour and our highest about $65.00 an hour. Senator Cameron would you think a 1% across the board would be fare? Ms Heilman I don't think any raise across the board is fare. It doesn't recognize performance or contributions or lack there of. The more flexibility we have with the dollars available the better decisions that can be made in general. Andrew Hanhardt spoke in support of this bill. (see attached)
MOTION: Senator Cameron made a motion that S1337 be held in committee, Senator Compton seconded. The motion passed with a Voice Vote, with Senator Werk voting no.
The Chair recognized Shad Priest, of the Department of Insurance to speak to the committee on H488, H493, H487, H489, H491, H494, H495, H497, H490, H492, and H496.
H488 Shad Priest, of the Department of Insurance introduced H488 to the committee. This bill would provide that the State Insurance Fund be examined by the Department of Insurance at least once every five years. (see attached)
MOTION: Senator Cameron made a motion, and Senator Stegner seconded that H488 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Cameron will sponsor the bill.
H493 Mr. Priest stated H493 relates to foreign and alien insurers to clarify an exception to the requirement of deposit based upon a certificate from the insurer's state of domicile and to make a technical correction. (see attached)
MOTION: Senator Goedde made a motion, and Senator Werk seconded that H493 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
H487 Mr. Priest reported H487 relating to Insurance is to delete the requirement that insurers file copies of reports with the National Association of Insurance Commissioners. (see attached)
MOTION: Senator Compton made a motion, and Senator Stegner seconded that H487 be approved and sent directly to the consent calendar. The motion carried with a Voice Vote. Senator Davis will sponsor the bill.
H489 Relating to Self-Funded Health Care Plans to increase applicable deductible and obligation amounts of Self-Funded plans for purposes of determining exemption from registration requirements. (see attached)
MOTION: Senator Cameron made a motion, and Senator Stegner seconded that H489 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Andreason will sponsor the bill.
H491 An act relating to suspension of Insurer certificates of authority to provide that the director may issue new orders of suspension, to provide the certificates of authority shall be deemed terminated at the end of the suspension per8od if not reinstated or if a new order of suspension is not issued. (see attached)
MOTION: Senator Werk made a motion, and Senator Cameron seconded that H491 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor the bill.
H494 Relating to Insurer Requirements to limit ability of an Insurer to transact insurance in Idaho based on the characteristics of the business name of the insurer and to authorize the director of the Department of Insurance to permit or require an Insurer to supplement or modify a business name in the case of a conflict of names. (see attached)
MOTION: Senator Werk made a motion, and Senator Cameron seconded that H494 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor the bill.
H495 H495 allows the Department of Insurance to authorize the Director to specify the place and manner of filing of documents. (see attached)
MOTION: Senator Stegner made a motion, and Senator Cameron seconded that H495 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Stegner will sponsor the bill.
H497 Insurance to provide that annual statements shall be prepared in accordance with specified standards of the National Association of Insurance Commissioners. (see attached)
MOTION: Senator Compton made a motion, and Senator Stegner seconded that H497 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor the bill.
H490 H490 requires eligible surplus lines insurers to notify the director of any changes to the insurer's name, address or state of domicile within sixty days. (see attached)
MOTION: Senator Werk made a motion, and Senator Stegner seconded that H490 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Werk will sponsor the bill.
H492 Relating to the authorization of Insurers to require foreign corporations to submit one copy, and domestic corporations submit three copies of specified corporate documents with an application for an original certificate of authority and to delete document requirements relating to worker's compensation insurers and authorized representation. (see attached)
MOTION: Senator Compton made a motion, and Senator Werk seconded that H492 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor the bill.
H496 This bill amends Idaho Code 41-1927A - Minimum Nonforfeiture Rate for Deferred Annuities (see attached)
MOTION: Senator Cameron made a motion, and Senator Stegner seconded that H496 be approved with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Cameron will sponsor the bill.
ADJOURNMENT The meeting adjourned at 3:15 PM




DATE: February 26, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Compton, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Davis
CONVENED: Chairman Andreason called the meeting to order at 1:34 PM
MINUTES: The meeting opened with a motion by Senator Goedde and seconded by Senator Compton to approve the Minutes of February 19, 2004. The motion carried with a Voice Vote.
HCR043 This concurrent resolution would reject pending rules of the Idaho Board of Registration of Professional Engineers and Professional Land Surveyors. The effect of this resolution, if adopted by both houses, would be to prevent the agency rules from going into effect.
MOTION: Senator Goedde made a motion and Senator Compton seconded that Concurrent Resolution HCR043 be approved with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Goedde will sponsor the resolution.
S1382 Mr. Chuck Goodenough, Deputy Secretary of State, Commercial Division, presented S1382 a bill to first clarify that farm product filings under the Uniform Commercial Code are treated differently than non-farm filings. Secondly to insert a clarifying cross-reference to Idaho Code 28-9-516A and thirdly purpose is to include additions to the transition provisions that were added by the National Conference of Commissioners on Uniform State Laws after the Idaho version of Revised Article Nine of the Uniform Commercial Code was drafted. The additions ratify the process currently in use for amending, continuing and terminating pre-effective date financing statements.
MOTION: Senator Compton made a motion and Senator Goedde seconded that S1382 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor the bill.
S1339 Senator Kent Bailey came before the committee with the request that S1339 be pulled from committee so that it may be revised into a better piece of legislation.
MOTION: Chairman Andreason asked for and received unanimous consent to pull S1339 from the committee.
H569 Bob Corbell presented H569 to the committee relating to Elevator Safety. This bill adds a new Chapter 86 relating to elevator safety requirements to Title 39. The purpose is to ensure that the use of elevators, escalators, moving walks, platform lifts, material lifts, and dumbwaiters that move people are reasonably safe. Elevator safety is found only in Idaho Code Section 72-720, which relates to the Industrial Commission and worker safety in the workplace. IDAPA 17.07.01, Safety Rules for Elevators, Escalators, and Moving Walks, are promulgated pursuant to the authority granted the Industrial Commission. However, the rules do not grant the authority to enforce the requirements of safety inspections. This legislation provides the authority to the Division of Building Safety for enforcement and rulemaking. It also establishes the requirements for a permitting process, installations, inspections, types of certificates to operate, the adoption of safety codes, sets forth fee schedules, sets forth non-liability provisions and sets forth provisions relating to accidents. Basically what it does is it pays for the 5 year inspection that is required by Federal Law on elevators. It is paid with a registration fee of $125.00 per year per elevator, or if a more complicated goes up to $225.00. So over a five year period would pay for the inspection. There is also a requirement for an annual inspection. This inspection can be done by the maintenance people who maintain the elevator or the elevator company they contract with. Senator Stegner said he was in the Grain Elevator business, traditionally a bucket lift moves the grain, but there is a man lift used to clean the bucket lift. Would this man lift fall under this provision? Mr. Corbell said under ANSI and ASME rule if it is a personnel mover it would be covered under this bill. Commissioner Tom Limbaugh of the Industrial Commission said there are current rules under the Industrial Commission regarding Elevator Safety that requires any elevator that moves personnel meet certain standards. It is already law in the State of Idaho, but those rules do not have the authority to enforce the standards. Senator Stegner asked if there are periodic inspections of Grain Elevator man lifts today? Commissioner Limbaugh said no, but the rule exists and if you had an accident, I don't know what your liability would be because your man lift would fall under state law. Chairman Andreason asked Commissioner Limbaugh what happens if they do not send this bill to the floor with a Do Pass? Commissioner Limbaugh said they would continue to inspect schools, public and state buildings. The private building owner will be out on their own as far as hiring qualified elevator inspectors, which is a huge cost. As far as authority there is no enforcement to inspect elevators. Another problem we ran into was with liability carriers who didn't realize some building owners had elevators that had not been inspected and they would like to see that five year certificate. He suggested that as the rules are written that they include an exemption for Grain Elevator man lifts as long as the liability carriers would honor that exemption. Senator Stegner asked for some assurance that from now until the time that those rules include the exemption that there won't be any enforcement against that industry. Mr. Dave Munroe, of the Division of Building Safety said he was willing to make a temporary rule that would exempt that industry. Senator Goedde asked Commissioner Limbaugh about the fiscal note regarding surplus of $150,000 to the Industrial Commission and if the Commission budget reflect passage of this legislation? Commissioner Limbaugh said they hoped to have about $200,000 and the hope would be that those funds would prevent the Industrial Commission from asking for a rate increase in the future. Senator Goedde asked if the Industrial Commission has had experience in dealing with an employer who does not follow safety standards and causes an employee to be injured? Commissioner Limbaugh responded that the Work Comp Law in the State of Idaho is a No Fault Law, and that is No Fault by the employee side, No Fault on the police side, and there has been no other liability by employers unless it is willful. Senator Noble asked if OSHA laws apply to an elevator with ten employees or less? Commissioner Limbaugh responded that OSHA covers all private business safety matters except for elevators and boiler and pressure vessels. Those were left with the Industrial Commission by Rule without these statutes. OSHA does cover an elevator for a private business in the construction faze of a new building only. When an elevator problem happens the Industrial Commission gets the call. Mr. Corbell asked to clarify a point that came up in the House regarding the Fiscal Impact. The $50,000 per year would come out of individual budgets for those schools which have not paid before. Chairman Andreason asked if that was a total of $50,000 for all of the schools they would be inspecting? Mr. Corbell answered it would really be less than that, because many are re-inspections so there is about $5,000-$6,000 there for re-inspections. The total would be closer to $42,000.
MOTION: Senator Noble made the motion and Senator Goedde seconded that HB569 be sent to the floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Noble will sponsor the bill.
H619 Representative Bill Deal introduced H619 to the committee. The purpose of this legislation is to remove the sunset provisions of Sections 41-4706 and 41-5206 of Idaho Code, and delete language requiring a review and report regarding retention of the index rate bands to the Director of the Department of Insurance relating to the rating system for health insurance plans.
MOTION: Senator Cameron made the motion and Senator Compton seconded that HB619 be sent to the floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Cameron will sponsor the bill.
H622 Representative Wayne Meyer introduced H622, a bill making technical corrections to the Idaho Petroleum Clean Water Trust Fund Act, Idaho Code 41-4901. The corrections allow a quorum of the Board of Trustees of the fund to transact all business for the Fund, require that conflict of interest issues are resolved under the Idaho Nonprofit Corporation Act provisions of Idaho Code 30-3-81, and include the Board in the limitations on personal liability and actions against the Administrator in the pre-existing law. These provisions update the statute to reflect the existence of the Idaho Petroleum Clean Water Trust Fund Act, which is now run by a Board of Trustees.
MOTION: Senator Noble made the motion and Senator Compton seconded that HB622 be sent to the floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Noble will sponsor the bill.
H618 Mr. Brad Dixon, representing the Workers' Compensation Exchange introduced H618. This legislation is intended to exempt domestic insurers with a very small number of subscribers from the requirement to file reports relating to their Risk-Based Capital status each year with the Department of Insurance and the National Association of Insurance Commissioners.
MOTION: Senator Goedde made the motion and Senator Stegner seconded that HB618 be sent to the floor with a Do Pass recommendation. Chairman Andreason asked for further discussion. Mr. Robert McMinn, representing himself, asked to speak and had handouts for the committee members. His handouts contained figures regarding campaign contributions of the committee members. Neither his comments or his handouts had anything to do with H618 and he was dismissed. The motion passed with a Voice Vote to send H618 to the Floor with a Do Pass recommendation. Senator Goedde will sponsor the bill.
S1343 Bob Corbell presented S1343 providing for definitions of speciality journeymen and apprentices. It provides permit fees for HVAC installations in residential, as well as commercial facilities. This legislation gives rule making authority to the HVAC Board relating to code and qualifications of inspectors, and establishes rule making authority for civil penalties when approved by the legislature. This bill requires cities and counties to contract with the Division of Building Safety if the city or county does not employ a full time inspector. When the rules for Building and Safety regarding the HVAC Board previously, the committee was asked to hold a rule or reject a rule that dealt with apprenticeship training. In doing that in order for the them to operate there has to be a method in which these are going to support the operation and so that is the reason this is in the apprenticeship portion and is contained in this legislation. (see attached) The fee schedule that was published originally was a lot higher than the fee schedule in this legislation. It is an attempt in this legislation to bring the fee schedule down to meet the fee schedule of other areas under the Division of Building Safety. It may be a little higher due to the travel involved to the different counties. Senator Cameron said we looked at this last year and nobody left here very happy with the proposal, but they knew it was an equitable and fare process. Some of the sections that were excluded last year are now back in this bill and are viewed to be an end run on a rather lengthy process that we went through last year. For instance type of code, such as International Mechanical Code and Uniform Mechanical Code, and who does inspections etc. He also wanted to know how interested parties and local units of government had been notified. Mr. Corbell said the apprenticeship program is addressed, and as far as code there is no Uniform Code in Idaho. That the Board deciding code doesn't have anyone in the trade on the Board. Mr. Corbell said there were invitations issued and many Public Announcements on the Internet. Chairman Andreason asked that the committee hear from a Board member first for testimony on this bill. Carol Alexander, Building Inspector, for Latah County, and on the State HVAC Board. She spoke in favor of the legislation, but not in its entirety. In a small jurisdiction if they don't have a licensed inspector that has both commercial and residential it creates a big problem for the county. Steven Serr, Zoning Administrator, Bonneville County representing the Idaho Association of Counties (see attached testimony) JR Vantassel, Nez Perce County Commissioner stated that if they didn't have a full time Inspector they would be forced to use someone else's employee to enforce codes that Nez Perce County could not. We would have no control over that and from a county standpoint our responsibility is too great. Russel Goyen, City of Idaho Falls Inspector spoke of section 54 20-21 item number 2 in regard to the qualifications of inspectors. Previously it did not say all inspectors had to be knowledgeable of the installation, it said State inspectors. This change would eliminate some capable and certified mechanical inspectors at the local level who are currently doing these inspections.A big concern of Committee members and asked of all who gave testimony was notification, involvement and representation in drafting this legislation. Senator Goedde saidwe are hopelessly deadlocked. There are a couple of pieces of this legislation that we do need to salvage. The fee structure and apprenticeship, so I would move this to the amending order with the idea that the attempt is made to carve out the important pieces of legislation. Senator Malepeai seconded the motion. Senator Cameron made a substitute motion to send the bill back with instructions that they work with local units of government and come back with legislation that is acceptable by all factions. Senator Compton seconded the motion. Chairman Andreason asked for a Roll Call Vote for the substitute motion to hold S1343 in committee. The motion passed with a 5 Aye 2 Nay to hold S1343 in committee.
ADJOURNMENT The meeting adjourned at 3:24 PM




DATE: March 2, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Davis, (Duncan for Compton), (Anderson for Noble), Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Stegner
CONVENED: Chairman Andreason called the meeting to order at 1:34 PM
MINUTES: The Chair recognized Mr. Jack Lyman, representing Idaho Manufactured Housing to the podium to speak to H568 and H585.
H568 This bill eliminates the existing classification of "broker" from the manufactured housing licensing statute and adds a new classification of "installer" to the statute. When this statute was originally enacted in 1989 some people in the business acted as brokers to sell housing units. Because the qualifications and responsibilities were so similar to those of a "dealer" most brokers became dealers and for the past two years no brokers have been licensed. In order to provide installation services a proper structure to regulate these activities, a classification for "installer" is needed in the statute. H568 also increases the fee caps for the various licensing categories as they haven't been changed since 1989. These fees provide dedicated funds for the Division of Building Safety to conduct its oversight activities of the industry. Due to inflation and the recent downturn in the industry, these funds are no longer sufficient to provide the necessary funds. If the caps are raised, the Division will propose new fees through rulemaking. This bill doesn't raise fees, it merely provides room to increase fees as necessary to secure adequate funding for the program.
MOTION: Senator Goedde made the motion, and Senator Werk seconded that H568 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
H585 H585 Restricts the exemption to buildings exported from Idaho. This bill does the following: a) Redefines "modular building" to remove requirements that buildings meet the Division of Building Safety codes and standards. b) Provides authority for the Division to conduct inspections on behalf of other states. c) Provides authority for the Division to conduct inspections on request of manufacturers. d) Exempts exported buildings from Idaho building codes and standards and licensing requirements. e) Prevents exported buildings from later being installed in Idaho unless Idaho's codes and standards are met. f) Allows Idaho's manufactured housing plants to compete for out-of-state modular building business. g) Provide a level playing field for Idaho's plants to compete with similar plants in other states for this business. h) Provide job security for the nearly 1,000 employees currently employed in Idaho's manufactured housing plants. i) Provide opportunities to expand production and create new jobs in Idaho's manufactured housing plants. j) Provide these benefits at no cost to the General Fund. HB585 Will Not a) Allow exempted buildings to be installed in Idaho unless they meet Idaho's codes and standards. b) Result in substandard buildings because each building must meet the codes and standards required by the jurisdiction where it is installed. Mr. Jerry Peterson, representing Idaho Building Trades spoke against H585 saying this cuts wages. He explained that licensed journeymen and their apprentices really are competitive and not charging $50.00 an hour for inspection of these modular buildings. He suggested that the difference in cost is more related to the code than the people doing the inspections. Mr. Peterson also added that his organization had no advance notification of this legislation. Senator Cameron questioned Mr. Peterson regarding his statement that in the interest of Public Safety the passage of this bill would be transferring liability. Senator Cameron asked if other state codes were met, he needed understanding as to how the transfer of liability would exist.

Dave Whaley, of the Idaho State AFL-CIO, spoke of opposition to H585 because of the safety issues involved in transporting a modular building. Mr. Whaley said licensed inspectors are more qualified in safety issues to prevent those problems. He also talked about a problem with who would monitor the inspections for different states. Mr. Aaron White, representing the International Brotherhood of Electrical Workers felt this bill would allow extra loopholes with HUD requirements and the State requirements, where the building would go, and who is going to keep track. Senator Cameron asked for the difference between Journeymen and their apprentices, and if homes are being inspected by people who are not Journeymen. Mr. White explained to become a Journeyman you need 8000 hours of on the job training and 4 years of in class training is required and that there are homes that are being inspected by some who are not Journeymen. Senator Malepeai asked questions regarding apprentice inspections and if they are under direct supervision of a Journeyman? Senator Werk asked if that direct supervision and licensing is for safety assurances. Mr. White answered yes to both Senator's questions. Mr. Paul Campbell, of the Local 296 Plumbers Union, spoke in opposition of this bill and gave an example of a project where he was responsible for unlicenced workers. Mr. Art Berry, an owner of Kit Home Builder's West said the Manufactured Housing Industry has dropped from 400,000 units to 100,000 units, primarily because of change in lending practices and change in philosophy of the unit purchasers. They purchased Kit out of bankruptcy and changed their business plan to build to states codes to try and save the industry. Kit has to build quality products or they would not stay in business. National codes are being met and the inspection process is really better than normal. Kit has saved jobs, they obey the laws of code in which these homes are being sent and they warranty these quality homes. Senator Werk asked if he understood that there is a level of inspection requirements for Idaho that cost money and that there is a level of the type of labor you use that also costs money. Mr. Berry said that is correct and that their argument is that the second inspection by the State of Idaho is redundant, unnecessary, and in some cases conflictive with some of the compliance project requirements. Senator Werk then asked of Mr. Berry if inspections or labor are costing you more? Mr. Berry explained the production line of modular homes and that production line is stopped for both inspections. Senator Davis asked if this industry historically relied on licensed plumbing and electrical journeymen. Mr. Berry responded that 15 years ago trailers had certain defects and because of that the Federal HUD code came and preempted the codes of various states that had rather lax regulation of construction and safety. The HUD code has rectified much of that. Mr. Lyman asked the committee to keep in mind that current law imposes requirements on the exported products of our in-state plants that are more stringent than those Idaho imposes on the imported products coming here from other states. With this bill we are simply asking to relieve us from the need to meet dual building code requirements and licensing requirements that are not imposed by other states. Senator Goedde asked if this bill was uniformly endorsed? Mr. Lyman said it has been indorsed by the Idaho Manufactured Housing Association. Senator Malepeai who did you bring together to draft this bill? Mr. Lyman said they worked through the Division of Building Safety, through the Electrical Bureau and the Plumbing Bureau.

MOTION: Senator Cameron moved and Senator Davis seconded that H585 be sent to the Floor with a Do Pass recommendation. Senator Davis made the comment that he had purchased a modular office that was built in South Dakota. Because of codes and different systems and measurements it became such a hassle he cancelled the order. Senator Goedde statedthis has been billed as an opportunity for Idaho business to market business out of State. I have an Idaho business in the district adjoining mine which employs some 75 people, and their concern is that Idaho products in general will be discounted and they will lose marketing opportunities because of the stigma of modulars. Senator Cameron I would rather protect jobs, and protect the economy. Senator Malepeai in order to send a good quality product we need to utilize the checks and balances for the consumer. Senator Anderson said our country's basic theory is the fewer the rules the greater the freedom the greater the wealth. Quality work will prosper. We can't have so much regulation that we kill that. Senator Werk because of the inspection and labor being in conflict in this bill I would move that we send this bill to the amending order. Take out the labor piece and allow the inspection piece to go through. Senator Malepeai seconded the substitute motion to send H585 to the Amending Order. The Substitute Motion was defeated 2-6. The Original Motion to send H585 to the Floor with a Do Pass recommendation passed with a Roll Call Vote 7-1. Senator Cameron will sponsor the bill.
ADJOURNMENT The meeting adjourned at 3:00 PM




DATE: March 4, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Compton
CONVENED: Chairman Andreason called the meeting to order at 1:32 PM
The meeting opened with a motion by Senator Malepeai and seconded by Senator Goedde to approve the Minutes of February 24, 2004. The motion carried with a Voice Vote.
H706 Christine Stutzke, Chairman of the Idaho State Board of Cosmetology, introduced H706 relating to Cosmeticians to delete the language providing for the appointment of cosmetologists by the Governor. It adds language that places the responsibility for appointment of examining assistants with the Board of Cosmetology, and setting the terms of appointment at three (3) years. It also adds language to include examining assistants compensation.
MOTION: Senator Malepeai made the motion, Senator Noble seconded that H706 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Malepeai will sponsor the bill.
S1391 Senator Laird Noh presented S1391 a bill relating to Mechanics and Materialmen's Liens to provide that the statute requiring disclosures by general contractors to owners or purchasers of residential property shall not apply to instances in which a homeowner or the agent of the homeowner initiates the contract with the general contractor for purposes of providing repairs necessary to meet a bona fide emergency of the homeowner, or to make necessary repairs to an electrical, plumbing or water system of the homeowner.
MOTION: Senator Davis made the motion, Senator Noble seconded that S1391 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Davis will sponsor the bill.
S1393 Mr. John Sowers, the Deputy Administrator for Human Resource Services for the Department of Correction introduced S1393 a bill to define community service workers to include criminal offenders performing community service under the direct supervision of the Department of Correction. (see testimony attached) Senator Noble asked who wasn't covered? Mr. Sowers responded that the only offenders now covered under Workers Comp are those who are ordered to community service by a judge in a written court order. Senator Werk asked what is being done today, and Mr. Sowers said unless offenders are on court order and they get hurt on the job they are at risk as is the department. Senator Werk followed with a question regarding the Fiscal Impact and that there would be none. So are workers to pay the $.60 per hour? Mr. Sowers explained that was true. Senator Werk asked if the Department of Corrections has statutory authority to charge that $.60 an hour? Mr. Rod Leonard, Department Planner explained how the $.60 would be charged to the offenders. Senator Goedde asked if there had been a problem with these people that would lead you to need the Worker's Compensation. Mr. Sowers said there was an injury in 1999 that brought to our attention our vulnerability in regards to liability. Senator Goedde made the assumption that these offenders were doing the community service for different entities. Did they look to these entities to pay the Workers Comp? Mr. Sowers said they did look at agencies picking up that expense, however the Department does not have the statutory authority to charge that expense. Senator Goedde said it sounded as if they are pushing the cost onto the offender rather than the agency and Mr. Sowers replied that was correct. Senator Goedde expressed concern to exposure and with the few cases that it might be cheaper for the State to litigate. Mr. Sowers said they looked at all of the figures and came to the conclusion this would be the best solution. Senator Werk expressed concern that without statutory authority there is no force of law to pass this bill.
MOTION: Senator Davis made the motion, Senator Malepeai seconded that S1393 be sent to the Floor with a Do Pass recommendation. Senator Davis said the question regarding statutory authority was a very good one and the Department needed to check into that issue. If there is a problem with that authority it can be sent to the amending order on the floor. The motion carried with a Voice Vote to send S1393 to the Floor with a Do Pass. Senator Cameron and Senator Goedde voted no. Senator Davis will sponsor the bill.
H570 Mr. Mike Brassey, representing Primerica Financial Services presented H570. (see testimony attached)
MOTION: Senator Goedde made the motion, Senator Davis seconded that H570 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
S1389 Mr. Chuck Anderson, representing the Idaho Association of Mortgage Brokers presented S1389. Mr. Anderson said the IAMB has worked in conjunction with the Idaho Lenders Association, Idaho Real Estate Board and the Idaho Department of Finance to draft this legislation. It's purpose is to establish licensing and educational requirements for all persons who originate loans and are not regulated under other state and federal laws. This bill provides for a greater consumer protection through accountability and professionalism to better serve the citizens of Idaho. This bill also defines the relationship between Mortgage Brokers, Mortgage Lenders and their loan originators, making that relationship the same as described under Idaho Code. Ms Kathy Smith, also presented testimony for S1389. (see attached)
MOTION: Senator Goedde made the motion, Senator Davis seconded that S1389 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Goedde will sponsor the bill.
S1390 Mr. Anderson also presented testimony for S1390. The purpose of this legislation is to define the independent contractor relationship of loan originators and mortgage brokers, and make that relationship similar to Idaho Code describing the relationship of real estate broker and sales associates, and insurance broker and sales associates. Currently the Mortgage Broker's Practice Act is vague on the relationships between independent contractor and a mortgage broker. It is vague enough that the Department of Finance have interpreted this needs to be better defined. Mr. Tom Valasek, the Unemployment Insurance Administrator for the Idaho Department of Labor gave testimony to S1390. (see testimony attached) Mark Whitworth, the Bureau Chief for the Department of Labor gave clarification to the language of code and the definition of independent contractors to brokers. He also spoke to exemptions of state law and if those exemptions would also qualify in regards to federal law. In many cases they are not exempt according to federal law.
MOTION: Senator Goedde made the motion, Senator Noble seconded that S1390 be sent to the Floor with a Do Pass recommendation. The Chairman asked for a Roll Call Vote. The motion failed with a 3 to 5 vote. S1390 is held in committee.
S1336 Senator Burkett introduced this bill to authorize the Department of Labor to include compensation rates in reports the department currently receives from Idaho employers. This bill would provide legislative intent to provide for reports by the Department of jobs by wage. Tom Valasik, spoke to S1336 (see attached testimony) Mia Crosthwaite, representing the Roman Catholic Diocese of Boise, supporting wage information gathering. (see attached testimony) Roger Sherman, representing United Visions for Idaho, and Idaho Center on Budget and Tax Policy said they felt this information would be very valuable.
MOTION: Senator Davis stated concerns with start up costs at a time when funding is so tight and rather than try to take funds from other government programs in place to set up a reporting program seems inconsistent with the objective of the authors and made the motion, Senator Goedde seconded that S1336 be held in committee. Senator Werk remarked that we have a lack of data and we are being asked to collect it and made a Substitute Motion that S1336 be sent to the Floor with a Do Pass recommendation. Senator Malepeai seconded the substitute motion. Senator Stegner agreed with Senator Davis. Senator Goedde remarked on the fact that this was not coming from business. Senator Cameron stated $250,000 could be better used with so many requests for money. The Chairman asked for a Roll Call Vote. The substitute motion to send S1336 to the floor with a Do Pass failed with a 2-5 vote. The original motion to hold S1336 in committee carried with a 6-1 vote.
HCR047 Representative Kathie Garrett introduced this concurrent resolution stating findings of the legislature, adopting a state employee compensation policy, adopting funding recommendations, stating policy toward salary savings regarding pay policies for state employees and direction management of compensation and funding policies.
MOTION: Senator Cameron made the motion, Senator Stegner seconded that concurrent resolution HCR047 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Cameron will sponsor this resolution.
ADJOURNMENT The meeting adjourned at 3:25 PM.




DATE: March 9, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
CONVENED: Chairman Andreason called the meeting to order at 1:32 PM
H620 Mr. John Mackey, of United Heritage Financial Group presented testimony for H620. This legislation will create consistency with the statutes of surrounding states and the NAIC Model Act, and will provide employers with some relief from the high cost of employee benefits while continuing to allow employees to own group life insurance if they wish to do so. (see testimony attached)
MOTION: Senator Cameron made the motion, Senator Davis seconded that H620 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Cameron will sponsor the Bill.
H512 John Mackey also presented H512 a bill that would allow Property and Casualty and Workers Compensation insurance companies to deduct assessments paid to their Guaranty Association from premium taxes paid to the State, in the same manner and extent as the Life and Health insurance companies are currently permitted to do with respect to assessments paid to their Guaranty Association. (see testimony attached)
MOTION: Senator Goedde made the motion, Senator Noble seconded that H512 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Goedde will sponsor the Bill.
HCR046 Representative Dennis Lake introduced this concurrent resolution to reject a pending rule of the Division of Human Resources and Personnel Commission. The effect of this resolution, if adopted by both houses, would be to prevent the agency rule from going into effect. The committee members asked for some clarification from Ann Heilman.
MOTION: Senator Davis made the motion, Senator Stegner seconded that HCR046 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Davis will sponsor this concurrent resolution.
H638 Representative Dennis Lake introduced H638 regarding salaries and benefits of state employees to provide that the Administrator submit reports of the salary and benefit surveys to the Governor from October 1 to December 1 of each year. The Governor would then submit his recommendations to the legislature. This bill also provides that the administrator shall use pay schedules when implementing the results of salary changes by rule. Ann Heilman, with the Division of Human Resources answered many questions from the committee regarding extra work and possible cost for the extra survey. She also expressed that the date change would be better for the Division.
MOTION: Senator Compton made the motion, Senator Werk seconded that H638 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Compton will sponsor the Bill.
S1435 Russell Firkins with the Idaho HVAC Board explained this bill provides for definitions of specialty journeymen and apprentices and provides permit fees for HVAC installations in residential, as well as commercial facilities. This bill establishes rule making authority for civil penalties when approved by the legislature.
MOTION: Senator Goedde made the motion, Senator Werk seconded that S1435 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Goedde will sponsor the bill.
H499 Shad Priest, with the Department of Insurance presented H499 a bill to require insurance companies that are corporations file amendments to their bylaws with the Department of Insurance and if they amend their bylaws they must provide copies of the subsequent amendments to the Department.
MOTION: Senator Goedde made the motion, Senator Compton seconded that H499 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Goedde will sponsor the bill.
H726 Representative Dick Harwood introduced this bill regarding allowing PERSI to add to existing law the opportunity to remove and/or change the beneficiary of a PERSI retiree. It will allow a provision for the payment of benefits when survivor benefits are waived pursuant to a domestic retirement order.
MOTION: Senator Malepeai made the motion, Senator Werk seconded that H726 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Goedde will sponsor the bill.
H671 Mr. Woody Richards, presented this legislation prepared by the Committee to Revise the Idaho Corporate Code appointed by the State Bar's Business and Corporate Law Section. The Committee was made up of 26 attorneys from corporations such at Micron, Idaho Power, Simplot, BMC West, and law firms both large and small in the area. The Idaho Legislature revised the Business Corporation Laws in 1997 and this bill is a further update to make changes consistent with the Model Act recommended by the American Bar Association committee on corporate law. The goal of the updates is to keep Idaho current with the Model Act, and to clarify questions that have arisen since the last update. Christine Nicholas led the committee through this legislation and highlighted key changes. Ms Nicholas explained their significance and answered questions of the committee as she moved through the bill. Mr. Chuck Goodenough, Deputy Secretary of the State and a member of the drafting committee, explained one instance regarding domestication with foreign corporations coming to Idaho and suggesting these changes should include Idaho corporations going to other states. He realized after much discussion that the committee in protecting business was also protecting share holders in not including that change, as Idaho corporations moving to other states would lose certain rights.The efforts to protect corporations as well as share holders was great and this bill is the result of those updating efforts.
MOTION: Senator Davis made the motion, Senator Goedde seconded that H671 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Davis will sponsor the bill.
H526 Mr. Jack Rayne, Building Bureau Chief with the Division of Building Safety introduced H526. This bill will establish a program, mandated by federal law for timely resolutions of disputes between manufacturers, retailers, and installers regarding responsibility for correction and repair of defects in manufactured homes. This bill will authorize the Division of Building Safety to promulgate rules to establish this program. (see testimony attached)
MOTION: Senator Werk made the motion, Senator Davis seconded that H526 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Werk will sponsor the bill.
H527 Ted Hogander, Plumbing Bureau Chief for the Division of Building Safety presented this bill to provide authority for the board to adopt rules concerning civil penalties and appeals from those penalties. It also provides authority for the administrator of the Division of Building Safety to impose civil penalties and maintain actions seeking injunctive relief.
MOTION: Senator Malepeai made the motion, Senator Goedde seconded that H527 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Malepeai will sponsor the bill.
H528 Ted Hogander also presented H528, legislation that will authorize three (3) year renewals of plumbing certificates and amend the fee schedule pertaining to the certificates. The proposal will clarify the renewal requirements regarding apprentice registration. Senator Davis brought to the attention of the committee that it is not included in the bill as written a staggered schedule for payment of fees.
MOTION: Senator Werk made the motion, Senator Davis seconded that H528 be sent to the amending order. The motion passed with a Voice Vote that H528 be sent to the amending order.
H529 Steve Keys, with the Electrical Board explained this bill in order to enhance proficiency within the profession, this legislation will require from two years to four years of experience as a licensed journeyman to qualify for licensure as a Master Electrician.
MOTION: Senator Compton made the motion, Senator Davis seconded that H529 be sent to the Floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Compton will sponsor the Bill.
Chairman Andreason announced to the committee that he would be away Wednesday, Thursday and Friday and introduced his replacement Mrs. Darlene Andreason. The Chairman said he wanted her to be exposed to the committee before he left. Mrs. Andreason said she had been exposed. Senator Goedde will chair the committee during Chairman Andreason's absence.
ADJOURNMENT The meeting adjourned at 3:25 PM.




DATE: March 11, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Darlene Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Davis, Compton, Noble, Werk, Malepeai
CONVENED: Vice Chairman Goedde called the meeting to order at 1:35 PM
MINUTES: Vice Chairman Goedde opened the meeting by welcoming Senator Darlene Andreason to the committee.
S1441 Mr. John Greenfield Began his testimony on S1441 by saying the Worker's Comp system works well, but a complaint came to the Industrial Commission regarding violation of privacy in regards to Worker's Compensation Records of the Idaho Industrial Commission. The purpose of this amendment is to allow the Industrial Commission to quote or discuss otherwise exempt medical and rehabilitation records during a hearing on a claim for compensation, or in a written decision following such a hearing, and clarify that written decisions issued by the Industrial Commission, including the names of the parties involved, shall not be exempt from disclosure to the public in any way. The use of the names of the parties in the written decisions of the industrial commission, as they are released to the public is important to research and briefing by claimants, self-insured employers, and sureties alike. Mr. John Barrett spoke of the Industrial Advisor's Committee and the sub-committee that drafted this legislation. Medical records are private until a claim is filed and it goes to court then it becomes public. Senator Compton asked for verification regarding the privacy of Medical Records. Mr. Barrett explained that in order for a case to be defended in court certain parties must have access to those records, but those Medical Records are not open to the public.
MOTION: Senator Noble made the motion, and Senator Werk seconded that S1441 be sent to the floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Noble will sponsor the bill.
H773 Mr. Jack Lyman introduced H773 a bill amending Idaho Code to provide clarification to the Mobile Home Park Landlord Tenant Act to increase the notice time which must be given before termination of a tenancy upon cessation of the operation from 120 days to 180 days.
MOTION: Senator Compton made the motion, and Senator Malepeai seconded that H773 be sent to the floor with a Do Pass recommendation. The motion passed with a Voice Vote. Senator Compton will sponsor the bill.
H808 Mr. Woody Richards, representing Blue Cross of Idaho explained that this legislation is to clarify whether health care plans are managed care plans for purposes of Title 41, Chapter 39, Idaho Code and to set forth requirements for insurers offering health care plans that do not meet the definition of managed care plans. (see attached testimony) Senator Davis asked for a clarification of Managed Care Plans, PPO Plans and Traditional Plans and if the plans were taxed differently. Mr. Richards said they are not taxed differently and this legislation defines Managed Care Plans. It distinguishes Managed Care Plans from Preferred Provider Organizations and Traditional Health Plans and adds certain patient protections to all health plans whether they are Managed Care plans or not. Senator Cameron had questions regarding licensing. Mr. Richards explained that if you have a Disability License under the Insurance Code you can also write Managed Care products. Senator Compton asked if others in the industry had been involved in drafting this legislation? He stated that it is common knowledge that Blue Cross of Idaho is competing for the State business and wanted to know if this legislation would place Blue Cross in a better position to get that business? Mr. Richards saidhe is not aware of how it would effect the State Contract. Senator Cameron asked for specific benefits that would be exempted for a company filing permission to market PPO products. He and Mr. Richards went through many of those provisions. Senator Stegner remarked that everyone is interested in trying to find new approaches to offering competitive and lower Health Insurance costs in this state. The concern however is that with this legislation you are trying to get some competitive advantage over the field where as we want to keep that playing field level. He asked if there is any opposition to this bill? Mr. Richards said he was not aware of anything unique in this bill that would give Blue Cross an advantage. Senator Werk asked for understanding; "If I took a PPO and filed it under either chapter 39 or 41, the Insurance Commission is going to say that is okay?" Mr. Richards said they are trying to look at what is unique to each type of plan and then apply the statutes that need to be applied to the specific plan. Senator Compton asked if this legislation is good for the Core and is Bi-partisan why is Blue Cross doing this? Mr. Richards said we don't want to be fined or apply Chapter 39 and face the consequences in the sense that the definition is so broad to apply to all PPO products. Ken McClure, testified on behalf of the Idaho Medical Association in support of HB 808. He said he was involved in the revisions to Title 41, Chapter 39 in the 1996 interim committee and had a hand in the drafting of the definition of "managed care plan." At the time, the focus was on health maintenance organizations rather than preferred provider organizations because PPO's didn't exist yet. Accordingly, the definition didn't distinguish between HMO's and PPO's. The definition is broad enough to include not only PPO's but also traditional indemnity plans that use networks. The IMA understands the desire to clarify the regulatory requirements a PPO must meet. By allowing PPO's to elect to be regulated as regular insurance plans, however, the patient protections contained in Chapter 39 would no longer apply to PPO's. The IMA asked the sponsors of HB 675 to include those provisions, and in fact each patient protection in Chapter 39 applicable to PPO's has been included in HB 808, insuring that patients' rights will be protected if a PPO makes the election allowed by HB 808. Mr. Tim Olson, of Regence Blue Shield said that their position is neutral on this issue. They were not included in the drafting of this legislation, and in their review of the bill came to the conclusion they neither supported or opposed the legislation.
MOTION: Senator Malepeai made the motion and Senator Werk seconded that H808 be sent to the floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Malepeai will sponsor the bill.
ADJOURNMENT The meeting adjourned at 2:50 PM




DATE: March 16, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Senators Cameron, Stegner, Compton, Noble, Werk, Malepeai
MEMBERS ABSENT/

EXCUSED:

Senator Davis
CONVENED: Chairman Andreason called the meeting to order at 1:34 PM.
H803 Senator Cameron, presented H803 relating to Insurance. The Federal Trade Act of 2002 includes provisions to help certain categories of individuals who have lost their jobs purchase health insurance. Persons participating in the Trade Adjustment Assistance Program or receiving payments from the Pension Benefit Guaranty Corporation are eligible for a federal tax credit that is equal to 65 percent of the premium cost of a state qualified health insurance plan. To be a qualified health insurance plan for purpose of the act, the plan must meet certain minimum federal requirements. Currently, there are no qualified plans in Idaho, and individuals who would otherwise qualify for the federal tax credit are unable to take advantage of the credit. The amendments made by this bill will allow the Idaho Individual High Risk Reinsurance Pool plans to be designated as state qualified health benefit plans for purposes of the Trade Act of 2002.
MOTION: Senator Goedde moved and Senator Compton seconded that H803 be sent to the Floor with a Do Pass recommendation. The motion carried by a Voice Vote. Senator Cameron will sponsor the bill.
H812 Senator Cameron explained this bill amends provisions of Idaho law relating to individual health insurance plans to incorporate requirements of the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). The changes are required to assure proper identification and treatment of federally eligible individuals. Senator Goedde asked if this legislation was reviewed by the Health Insurance Task Force. Senator Cameron said no, they did not see any change to the way the statute is intended to operate. We have a federal overlay of what the HIPAA requirements are and we are trying to make sure that our State statutes comply with the federal act. Senator Stegner asked if this bill allowed for modifications to the Federal HIPAA standard that would then be incorporated to the High Risk Pool. Is this broad enough to allow modifications to the HIPAA Act that will automatically be updated in terms of the references that we need to comply? Senator Cameron, said it may not be broad enough to allow for any modification that Congress makes, however if there are changes it may behoove us to revisit this with any future modifications.
MOTION: Senator Goedde moved and Senator Compton seconded that H803 be sent to the Floor with a Do Pass recommendation. The motion carried by a Voice Vote. Senator Cameron will sponsor the bill.
H757 Representative Lee Gagner presented H757 a bill relating to Health Care Insurance to provide a disclosure to the patient at the time of initial contact by the health care provider as to whether they contract with the insurer. If the disclosure is not signed, the health care provider and the patient then the provider will not be able to "balance bill". The people who have supported this are the IMA, IHHB, Regence Blue Shield, Primary Health, Inter-mountain Health Care, and Group Health. It is not required written notice on emergency health care, or indirect health care, those who don't meet directly with the patient such as radiology, anesthesiology etc. It also requires maintenance of an internet site and/or toll-free telephone number by insurance providers with current health care provider information. Senator Compton said that it seems this is putting the burden on the Physician as opposed to responsibility on the part of the buyer of the service. Representative Gagner said there is a responsibility of the patient, however in some cases the health care provider changes his participation with a carrier and that isn't disclosed. Senator Cameron asked if this bill strengthens the encouragement for physicians to sign the contracts to participate in these programs. Representative Gagner replied he could not speak pro or con to that question. This bill was drafted by consumers. Senator Goedde asked if this bill didn't put a great deal of credence on the card. What happens if a patient doesn't have their card, has changed carriers and has the wrong card etc.? He also wanted to know if, with so many different types of plans, it would be the responsibility of the Physician to know if the patient's plan was covered? Representative Gagner responded that an amendment engrossed in the bill states that, "If asked, the health care provider shall use its best efforts to inform the patient weather they participate with the patients insured. Another part of this bill is for Providers to put out a list every six months to alert people to physician participation. Senator Cameron stated there are traditional plans and PPO plans, all with a variety of levels within those plans. What happens to the person who visits a physician who has posted that they are a Blue Cross participant, but the patient plan with Blue Cross has certain stipulations and is not covered? Representative Gagner this would not help that person.
ADJOURNMENT Chairman Andreason said we would not have time to hear other testimony today. The meeting adjourned at 2:00 PM.




DATE: March 18, 2004
TIME: 1:29 p.m.
PLACE: Room 437
MEMBERS PRESENT: Chairman Andreason, Vice Chairman Goedde, Compton, Noble, Werk,
MEMBERS ABSENT/

EXCUSED:

Senators Cameron, Stegner, Davis, and Malepeai
CONVENED: Chairman Andreason called the meeting to order at 12:43 PM.
MINUTES: Senator Compton made the motion, Senator seconded that the minutes for March 11, 2004 be approved. The motion passed with a Voice Vote.
MINUTES: Senator Goedde made the motion, Senator seconded that the minutes for March 16, 2004 be approved. The motion passed with a Voice Vote.
MINUTES: Senator Werk made the motion, Senator seconded that the minutes for February 26, 2004 be approved. The motion passed with a Voice Vote.
H835 Ken McClure presented HB 835 on behalf of the Idaho Medical Association. He noted that the bill was a consensus reached between the IMA, Regence Blue Shield, Blue Cross of Idaho and the Idaho Association of Health Plans after three years of controversy. The bill requires health insurers to pay bills for health care services promptly if they are submitted by a provider promptly. The goal is to reduce delays in billing and payment that cause confusion to patients and providers and that have the effect of increasing the cost of health care. The bill will not apply when there is a contract between an insurer and a provider specifying different payment provisions. It allows the Department of Insurance to enforce the prompt payment requirements through administrative action if necessary. Mr. McClure noted that almost all states already have similar legislation on the books so insurers already are well accustomed to complying with similar laws.
MOTION: Senator Noble made the motion, Senator Werk seconded that H835 be sent to the Floor with a Do Pass recommendation. The motion carried with a Voice Vote. Senator Compton will sponsor the bill.
H757 (Continued) Representative Gagner gave a very quick recap of H757 and then the podium was open to other testimonies. Julie Taylor, of Blue Cross spoke in opposition to H757 (see attached testimony) Vivian Ransom, a medical administrator representing the Idaho Medical Group Manager's Association and Idaho Sports Medicine. Ms Ransom talked of the paper work required now and the additional burden this would present to any Physician's office. She said the responsibility should be with all involved and shouldn't necessarily be a legislative issue but an educational issue. Steve Tobiason, representing Idaho Health Plans in support of this plan. Mr. Tobiason had two handouts, one a patient notification form and the other the engrossed bill. Mr. Tobiason said this form simply signed by the consumer and dated could save that consumer hundreds, if not thousands of dollars. Senator Goedde remarked that if he walked into a Doctor's office and saw on this form the physician was a participant with the patient's health care provider, he would sign the form and feel like he was home free. "Aren't we giving consumers a false sense of security?" Senator Werk expressed his concern that this bill is simply shifting responsibility. Insurance companies should be the ones who notify their customers about which physicians contract for their coverage. Greg Orr, representing IMSMA and St. Luke's Internal Medicine expressed opposition to this bill and the burden it would create. Sandy Stevenson, representing Mountain View Medical Center, spoke to opposition of this bill. She gave an example of trying to find contract and network information for coverage of two patients who recently came to the clinic. Her office spent approximately two hours trying to find coverage information for these patients. Most offices just don't have the employee base or time to do this for their patients. Ken McClure, representing the IMA explained to the committee the IMA had some initial concerns with this legislation, and after working with the drafters of this bill and addressing those concerns the IMA stands neutral on this legislation. Representative Gagner in closing addressed cost shifting and responsibility. He expressed everyone is responsible, Doctor's office, insurance providers, and the patient.
MOTION: Senator Goedde made a motion to send H757 to the Floor with a Do Pass recommendation. There was no second to the motion. Senator Noble made a motion to Hold H757 in committee. Senator Werk seconded the motion. The motion to Hold H757 in committee passed with a Voice Vote with Senator Goedde voting no.
ADJOURNMENT The meeting adjourned at 1:25 PM.