Print Friendly HOUSE BILL NO. 26 – Business/industrl dvlp corp, audit
HOUSE BILL NO. 26
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H0026........................................................by MR. SPEAKER
Requested by; Department of Finance
BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATIONS - Amends existing law to
provide that the director of the Department of Finance may require an audit
report by a business and industrial development corporation; and to provide
that a business and industrial development corporation may, with the
approval of the director, maintain an office outside Idaho.
01/08 House intro - 1st rdg - to printing
Rpt prt - to Bus
02/16 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/21 3rd rdg - PASSED - 65-0-5
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy,
Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Jaquet,
Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Raybould, Robison, Sali, Schaefer, Sellman,
Shepherd, Smith, Smylie, Stevenson, Stone, Swan, Tilman, Trail,
Wheeler, Wood, Young
NAYS -- None
Absent and excused -- Collins, Hornbeck, Ridinger, Roberts, Mr.
Floor Sponsor -- Meyer
Title apvd - to Senate
02/22 Senate intro - 1st rdg - to Com/HuRes
03/14 Rpt out - rec d/p - to 2nd rdg
03/15 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Branch(Bartlett), Boatright, Brandt, Bunderson,
Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin,
Frasure, Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough,
King-Barrutia, Lee, Lodge, Noh, Richardson, Risch, Sandy, Schroeder,
Sims, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth
NAYS -- None
Absent and excused -- Williams
Floor Sponsor -- Bunderson
Title apvd - to House
03/19 To enrol
03/20 Rpt enrol - Sp signed
03/21 Pres signed - to Governor
03/22 Governor signed
Session Law Chapter 86
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 26
BY MR. SPEAKER
Requested by: Department of Finance
1 AN ACT
2 RELATING TO THE BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION ACT; AMENDING
3 SECTION 26-2706, IDAHO CODE, TO PROVIDE THAT THE DIRECTOR OF THE DEPART-
4 MENT OF FINANCE MAY REQUIRE A BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORA-
5 TION TO FILE AN AUDIT REPORT AND TO MAKE TECHNICAL CORRECTIONS; AND AMEND-
6 ING SECTION 26-2715, IDAHO CODE, TO PROVIDE THAT A BUSINESS AND INDUSTRIAL
7 DEVELOPMENT CORPORATION MAY MAINTAIN AN OFFICE OUTSIDE IDAHO WITH THE
8 APPROVAL OF THE DIRECTOR.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 26-2706, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 26-2706. REQUIRED RECORD KEEPING RECORDKEEPING -- INDEPENDENT AUDIT --
13 APPLICATION TO OUTSIDE RECORD KEEPERS RECORDKEEPERS -- REPORT REQUIRED. (1) A
14 licensee shall make and keep books, accounts, and other records in such a form
15 and manner as the director may require. These records shall be kept at such a
16 place and shall be preserved for such a length of time as the director may
18 (2) The director may require by order that a licensee write down any
19 asset on its books and records to a valuation which represents its then value.
20 In addition, the director may require an appraisal of any assets of a licensee
21 by an independent appraiser approved by the director.
22 (3) The director may require a licensee to file with the director, n Not
23 more than ninety (90) days after the close of each calendar year or a longer
24 period if specified by the director, a licensee shall file with the director
25 an audit report containing all of the following:
26 (a) Financial statements, including balance sheet, statement of income or
27 loss, statement of changes in capital accounts, and statement of changes
28 in financial position or, for a licensee that is an Idaho nonprofit corpo-
29 ration, comparable financial statements for, or as of the end of, the cal-
30 endar year, prepared with an audit by an independent certified public
31 accountant or an independent public accountant subject to approval by the
32 director in accordance with generally accepted accounting principles.
33 (b) An unqualified report, certificate, or opinion of the independent
34 certified public accountant or independent public accountant subject to
35 approval by the director who performs the audit, stating that the finan-
36 cial statements were prepared in accordance with generally accepted
37 accounting principles.
38 (c) Other information that the director may require.
39 (4) If a person other than a licensee makes or keeps the books, accounts,
40 or other records of that licensee, this chapter applies to that person with
41 respect to the performance of those services and with respect to those books,
42 accounts, and other records to the same extent as if that person were the
1 (5) If a person other than an affiliate or subsidiary of a licensee makes
2 or keeps any of the books, accounts, or other records of that affiliate or
3 subsidiary, this chapter applies to that person with respect to those books,
4 accounts, and other records to the same extent as if that person were the
5 affiliate or subsidiary.
6 (6) If the director considers it expedient, the director may require any
7 particular licensee to obtain the approval of the director before permitting
8 another person to make or keep any of the books, accounts, or other records of
9 the licensee.
10 (7) Each licensee, each affiliate of a licensee, and each subsidiary of a
11 licensee shall file with the director such reports as and when the director
12 may require. A report shall be in such a form and shall contain such informa-
13 tion as the director may require.
14 SECTION 2. That Section 26-2715, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 26-2715. OFFICES -- LOCATION. (1) A licensee shall maintain not less than
17 one (1) office in this state.
18 (2) A licensee, shall not with the approval of the director, may maintain
19 an office at any place outside this state.
20 (3) Each office of a licensee shall be located in a place which is rea-
21 sonably accessible to the public.
22 (4) A licensee shall post in a conspicuous place at each of its offices a
23 sign which bears the corporate name of the licensee.
24 (5) A licensee shall maintain at each of its offices personnel who are
25 competent to conduct the business of such an office.
26 (6) Upon written notice to the director, a licensee may establish, relo-
27 cate, or close an office.
STATEMENT OF PURPOSE
The purpose of this bill is to reduce the regulatory burden on
Business and Industrial Development Corporations (BIDCO) by
changing the current requirement for a mandatory opinion audit
to one at the discretion of the director of the Department of
Finance. Currently, no other financial institution regulated
by the Department of Finance has mandatory opinion audits as
a matter of state law. Such audits are very expensive and
time consuming. Moreover, when the BIDCO law was passed in
1989, its sponsors thought at the time that the state would
provide public funding for BIDCOs, rendering opinion audits
appropriate. Such public funding has never occurred and does
not appear likely in the future. Given that BIDCO funding is
private funding and that BIDCOs are subject to examinations by
the department, opinion audits appear to be an unnecessary
This bill would also authorize BIDCOs to establish an office
outside Idaho with the approval of the director of the Department
of Finance. Under current law, a BIDCO is authorized to be
licensed in another state but not have offices in another state.
This burden should be lifted in order for BIDCOs to service any
multi-state customers or business activities.
No fiscal impact.
Name: Kelly P. Robison
Agency: Department of Finance
Statement of Purpose/Fiscal Note Bill No. H26