Captain Lamont Johnson, Commercial Vehicle Section of the Idaho
State Police, said this rule would incorporate by reference the federal
rules. Federal authorities want to check at roadside to find those out of
compliance and the state has the authority to stop trucks and do
inspections. The rule change will not add people or any additional
expense. Vice Chair Keough requested a copy of the federal rules to be
incorporated by reference. They are found in the “Manual on Uniform
Traffic Control Devices for Streets and Highways” (MUTCD) published by
the Federal Highway Administration of the U. S. Department of
Transportation. A copy is held in the office of the Senate Transportation
Committee.

Vice-Chair Keough indicated Committee action would be taken at the
next meeting, pending public input, to give committee members additional
time for detailed review of all administrative rules changes presented
today. She returned the gavel to Chairman Ingram.

EXCUSED:

Ed Pemble, Driver Services Manager for the Idaho Transportation
Department, introduced RS 12394 which clarifies that individuals who do
not own motor vehicles must still comply with proof of financial
responsibility requirements preliminary to reinstatement of driving
privileges after suspension of those privileges for certain convictions.

Ron Shepard, Motorcycle Coordinator for the Idaho Star Program,
Department of Education, presented RS 12415 that will create a
motorcycle safety program license plate for motor vehicles.

Charlie Chapin, representing Disabled American Veterans (DAV),
introduced RS 12543. The legislation would give the Park and Recreation
Board the authority to waive fees to any resident of Idaho who is a
disabled veteran and whose disability is rated at 100%.

Phyllis Smith, private individual whose son was killed in a car accident,
presented RS 12446C1 which would require all occupants riding in a
motor vehicle to use seatbelts. The legislation would also require an
additional $5.50 from each citation be paid to the county indigent fund. A
violation under this amended section does not result in violation point
counts, and a conviction is not deemed a moving violation for establishing
motor vehicle insurance rates.

Joe Haynes, Local Highway Administrator for the Local Highway
Technical Assistance Council (LHTAC), reported that the Council was
created by the Legislature in 1994, under Title 40, Chapter 24 and its
mission is to assist the local highway jurisdictions with utilizing the
available resources for maintenance and construction of Idaho’s local
highway system in the most efficient and effective manner possible. Mr.
Haynes emphasized the following 3 areas of authority given to the
Council. LHTAC has the authority to develop uniform standards and
procedures that can be recommended to its member jurisdictions for the
construction, maintenance, use, operation and administration of local
highways. It can also make recommendations to the Idaho Transportation
Board for the distribution and prioritization of federal funds for local
highway projects and further can assist the Legislature by providing
research and data relating to transportation matters affecting local
highway jurisdictions within the state. He also commented on some of the
Council’s publications. LHTAC also provides administration and project
selection for both local federal-aid incentive programs and the Local Rural
Highway Investment Program. The Council works closely with federal
and state agencies as well as tribal governments.

Byron Keely, Deputy Administrator of LHTAC, gave a broad overview of
the highway system, funding, and challenges facing the Council. There
are 288 local high jurisdictions. The local highway system is made up of
roads, bridges and railroad crossings. All roads are classified according to
how well they function in a network of roads in providing access and
mobility. Roads are either classified as rural or urban. Local roads are
for land access and provide little mobility. Collector roads provide a
balance of access and mobility and arterial roads are primarily for mobility
and provide limited access. The Cost Responsibility Model of how roads
should be funded recommends 70% from highway user revenue and 30%
from nonuser funds. Idaho’s 2001 funding figures reflect about 49% from
users and 51% from nonusers. 2001 expenditures indicate 8.7% of the
budget was spent on administration, 48.1% was spent on construction
and rehabilitation, and 31% was spent on maintenance. Just under 5% of
current revenues was held back as a hedge against future increased
costs. Some of the challenges facing local highway jurisdictions are (1)
subjection to increased regulations, (2) added mileage in the past ten
years and population growth has increased the need to retrofit and/or
expand existing highway facilities, (3) added mileage and urbanization
has unbalanced the distribution of HUR funding in some areas, and (4)
dealing with rural to urban migration and generational turnover has
increased the need for trained personnel. The local highway system is
growing.

The Local Highway Technical Assistance Council report is attached to the
minutes.

Representative Kathy Skippen from District 11 (Gem and Canyon
Counties) gave a power point presentation on the Indian Valley Cut-Off
which is a proposed improvement to Highway 95. The Indian Valley Cut-Off, a north-south route, would start in Emmett and join Highway 95 at
Mesa. The Cut-Off would be about 35 miles shorter, would be almost
entirely on public land, would move traffic away from the environmentally
sensitive river, would be a safer year-round highway, would accommodate
traffic into Valley County and relieve truck traffic, and would link to
Highway 16. The Indian Valley Cut-Off is a viable alternative to using
Highway 55.

EXCUSED:

Charles L. Winder (Chuck), Chairman of the Idaho Transportation
Board, briefly discussed the background of the six board members who
represent different areas of the state. They are John McHugh (Post Falls
District 1), Bruce Sweeney (Lewiston – District 2), Monte McClure
(Meridian – District 3), Gary Blick (Castleford – District 4), Neil Miller
(Blackfoot – District 5), and John Combo (Idaho Falls – District 6). Board
members serve for six-year terms and the chairman serves at the
pleasure of the Governor. The purpose of the Transportation Board is to
plan, develop, construct and maintain a system of state highways.

The Board oversees highways, railroads, airports, public transit, and north
Idaho’s barging system. The Board sets policy for the ITD and reviews
the budget in depth.

ITD is taking efficiency measures to reduce costs and number of
employees while still producing a quality service for Idaho and its citizens.
The ITD Board has interviewed several candidates and is hoping to fill the
Director’s vacancy in the near future. The Board is involved in the
scheduling, budgeting, and prioritization process for projects for
construction. They reach out to elected officials in local communities to
help them with community needs. They go to each of the districts once a
year to look at local projects and meet local citizens.

Mr. Winder also mentioned the Governor’s Blue Ribbon Task Force
whose purpose is to produce a blueprint that will guide development of an
efficient, effective system of government for the next 20 years. To date,
the Task Force has only one transportation recommendation and that is to
create a task force or committee to study and report issues related to
public transportation coordination and funding for urban and rural areas.

There are a lot of public transportation needs and providers in Idaho, lots
of different sources of funding and there needs to be a better coordinated
effort to make sure services are provided, that the money is used wisely,
and there are not overlapping services. Some of these recommendations
could require additional legislation. He acknowledged all the work
accomplished to date by various committees, including the Interagency
Work Group, stating there has been a lot of cooperation but indicated
there are still a lot of issues that need to be dealt with. He asked the
Committee to keep in mind that this Blue Ribbon Task Force
recommendation and others that might be forthcoming are looking at
where Idaho wants to be in the year 2020.

Larry Falkner, Division Administrator for Public Transportation, explained
that this recommendation is an additional effort to involve local people.
ITD knows what is happening at the federal and state level but this would
focus on coordination of public transportation at the local level.

The Department uses the following six key trend indicators: miles
traveled, cars registered, drivers licensed, population, total fuel taxed and
gasoline taxed. All of these indicators have experienced uptrends, some
more dramatic than others. Traffic volumes are used as indicators to
make safety decisions and plan for the future; they also help predict
revenue coming into the highway distribution account. Taxes are
assessed on gallons consumed, not on the price at the pump. Revenue
into the highway distribution account comes from the amount of gasoline
and diesel fuel consumed as well as from the registration of vehicles.
Revenue trends are down showing a projected revenue shortfall for FY03
from original projections of $14.9 million which is a 3.5% reduction of
ITD’s total appropriation and a 7.2% reduction of the State appropriation.
He also discussed total funding sources and distribution of all money
received noting that, by federal law, any funds ITD administers must be
shown as revenue and then passed through to the intended local entity.
Each year the federal government passes an appropriation that comes to
each state, called the Transportation Equity Act, currently known as TEA-21. It is yet to be passed this year so Congress is working on a
continuing resolution through January 31, 2003. TEA-21 ends in October
of this year so there is a need for a new highway act known as
reauthorization. ITD’s federal reauthorization goals are to increase
federal funding for surface transportation, continue federal funding
support for transportation in rural states, maximize program flexibility and
minimize federal regulation, promote safety programs, enhance Federal
Lands funding and eligible use, and to identify high-priority projects for
funding. Idaho is a donee state meaning Idaho receives more money
from the highway trust fund than the state generates from within. Since
FY98 under TEA-21, Idaho has experienced increased federal funding.

Transportation is a driving force in Idaho’s economy. In FY02, ITD
invested $241.3 million in transportation infrastructure, creating
approximately 10,000 jobs for the citizens of Idaho. Of those jobs about
2,000 were related to on-site construction and 8,000 were related to
supply and support positions.

When the Department was asked about the status of the University of
Idaho study entitled, “Weight-Distance Conversion Study,” Morris Detmar
indicated the study is ongoing and they are expecting an update during
this legislative session. The 1997 projection was $41.3 million and that
figure might be scaled forward to adjust for growth. The purpose of the
study was to determine the impact of the change in the truck registration
system brought on by settlement of the American Trucking Association’s
lawsuit against Idaho.

When asked about administration costs to locals, Mr. Ross indicated it
usually runs 12% to 15% to develop a project. Susan Simmons said ITD
does not currently charge locals any administrative fee for processing
work for the Federal Highway Administration. ITD is working with FHWA
on an indirect cost allocation plan so they will be able to charge
administration fees to federal projects. ITD is yet to decide whether to
pass those costs on to local entities.

Susan Simmons, Division Administrator for Management and
Administrative Services, ITD, presented her division’s overview. The
Division’s mission states that through effective leadership, they provide
the tools, resources, and systems to enhance the ability of the Idaho
Transportation Department to fulfill its mission. The core responsibilities
of the Division are executive management and legal services, internal
services, information services, financial services, employee services and
facilities management. The Division’s goals are to increase customer
satisfaction in their service delivery, to streamline systems and programs
to better utilize resources, and to proactively plan, design and implement
improvement initiatives utilizing quality principles.

Charles Rountree, Transportation Planning Division Administrator for
ITD, stated that the basis for successful and efficient implementation for
what is done at ITD begins with planning. The Division of Planning
directs the statewide planning process including data collection, analysis
and distribution to support an efficient transportation system. The Division
is dedicated to serving customers including local agencies, the public and
others interested in transportation. The Division is coordinating the
development of an integrated statewide transportation vision called
“Idaho’s Transportation Future – Getting There Together.” As ITD moves
forward it is critical that there is vision and guiding principles and values
for decisions. The Division manages the process for developing
transportation system planning which involves many partners who
contribute to transportation planning within Idaho including highway
districts, counties, cities, tribes and other public entities. The Division
also works closely with the metropolitan planning organizations (MPO’s)
which are areas with populations over 50,000. With the 2000 census
there are three new urbanized areas: Coeur d’Alene, Lewiston and
Nampa which will bring the total number of metropolitan planning
organizations (MPO’s) in Idaho to six. The Planning Division utilizes an
extensive traffic counting system that is used by developers, school
boards, highway commissioners and others. They provide information for

maps, and reports and also do traffic forecasts for a variety of planning
purposes.

The Division also analyzes pavement conditions for the entire state
highway system so they know which sections have the greatest need.
Decisions on highway funds are based on objective, reliable and
consistent information. The Mapping Services unit integrates data from
a variety of federal, state, local and private sources. The data collection
and analysis that takes place in the Planning Division using the pavement
management and traffic monitoring systems is used so projects can be
efficiently planned. Mapping this information provides a visual tool
needed to understand regional and statewide conditions on Idaho’s
transportation system.

Morris (Mo) Detmar, Division Administrator for Motor Vehicles, ITD, said
his division’s core responsibilities included (1) driver licensing and
identification, (2) passenger vehicle and truck registration and titling,

(3) size and weight compliance, and (4) revenue collections. Included in
those responsibilities are drivers safety, personal and vehicle
identification, vehicle ownership documentation, vehicle dealer and
salesmen occupational licensing, motor carrier account auditing, and
compliance monitoring. The Motor Vehicle Division’s most important
service tool is the highly successful partnership with county assessors
and sheriffs. Daily operational goals include searching for and
implementing ways to serve customers more conveniently, streamlining
business processes and making each customer’s experience positive.
The following improvements occurred in 2002: issuance of digitized
driver’s license, registration for selective service by driver’s license
applicants, and improvement in the organ donor registration process.
There are two pieces of legislation being proposed this year. One bill will
allow DMV notifications to be mailed first class instead of by certified mail.
The other proposed bill relates to proof of financial responsibility and
clarifies that individuals who do not own motor vehicles must still comply
with proof of financial responsibility requirements preliminary to
reinstatement of driving privileges after suspension of those privileges for
certain convictions.

Steve Hutchinson, Acting Chief Engineer for Highway Operations
(including Contract Construction and Right-of-Way Acquisition) for ITD,

discussed the following five areas in his division: population growth,
program priorities, performance measures, partnering and process
improvement. Idaho’s population increased this past decade, the largest
growth areas being Boise (District 3) and Coeur d’Alene (District 1).
During this same10-year period there was a 2 billion mile growth in
vehicle miles traveled. With increased population and growth in vehicle
miles traveled more congestion is experienced. The state has added 209
lane miles to help relieve congestion. ITD is sensitive to the growth and
has programmed projects throughout the state to address the problem.
Program priorities are operations, preservation, rehabilitation, and
improvements. He discussed the pavement lifecycle. New pavement will
deteriorate over time and to slow the deterioration, a method of
preservation activity (sealcoat or thin overlay) slows the deterioration
process. ITD expects to do some type of rehabilitation every 12 years
and schedules between 400 and 500 lane miles annually for rehab work.
The cycle of preservation and rehabilitation goes on for many years but,
on average, after about 40 years the pavement wears out and has to be
reconstructed. Road improvements include widening shoulders,
reshaping slopes and approaches and installing new culverts. The
Division’s mission and vision addresses safety in all aspects of design,
maintenance and construction. There is a system to identify high accident
locations and analyze the data so projects can be scheduled to address
safety needs. For the last 6 years the Department has focused on the
following four performance areas: pavement conditions, restricted bridges,
traffic congestion and highway safety. ITD made a commitment to the
Legislature that if they had additional funds ITD would improve pavement
conditions at 18% deficient by the year 2006. In order to do that ITD had
to expend $31 million annually. That original goal was exceeded and they
are currently at 15% which was accomplished by expending more than
the $31 million annually. The Department has applied all savings realized
each year to additional pavement improvement projects. ITD intends to
maintain that goal and continue to commit $31 million annually.

Partnering with others agencies over the years has helped streamline
environmental processes and get quicker clearances on projects and has
saved labor and communication costs. The Division’s only legislative
proposal would allow the use of lighter weight studs for tires which would
significantly reduces pavement wear while not reducing safety.

The Committee questioned ITD as to whether local contractors were
being bypassed on highway projects. ITD indicated that local companies
are asked to submit bids; selection of the successful bidder is done
through a qualification process on a rating system.

In 2001, of the 212 traffic deaths, 149 people were not wearing seatbelts
(70%) and 22 of those not belted were between the ages of 4 and 17
years old. When asked if Idaho was foregoing any federal funding, Mr.
Hutchinson indicated that was not the case but that Idaho might be
eligible for additional funds if a primary seatbelt law was in place. The
Committee requested information on what strings would be attached if
additional federal funds were available should the proposed seatbelt law
pass.

Bob Martin, Division Administrator for Aeronautics, ITD, gave a brief
history of Idaho aviation. He reviewed his core responsibilities which are
to encourage development of commercial and general aviation, support
improvement of airports and air navigation facilities, and to promote safety
in aviation. The state aircraft pool consists of one twin-engine and two
single-engine aircraft. Safety and education programs are important.
Idaho is internationally known for its background airstrips; they provide
access to Idaho’s wilderness area, they support recreation and tourism
not only for the general aviation flying public but also for river outfitters
and guides, hunters, hiking, and fishing. The Division also provides
staging areas for aerial support for emergency services such as wildfires.

The state manages and maintains 30 backcountry airstrips. In order to
have better information to manage the airstrips, some electronic aircraft
counters were installed from May through October, 2002 at four
backcountry airports (Big Creek, Garden Valley, Johnson Creek, and
Stanley) which revealed there were 16,282 take-offs and landings
representing 8,141 aircraft (usage much higher than the Department had
estimated). The airport development program funding goal is to provide
federal match assistance of $300,000 dedicated to 7 commercial airports
and for general aviation to provide 50% of match requirements to 32
airports. The goal is also to provide the remainder of available funds
(state-aid only) to 29 airports. In FY04 the Division is expecting
$19,350,000 in federal funds will be directed to Idaho airports for
improvements which, combined with state funds, should amount of
$21,737,600.

Larry Falkner, Division Administrator for Public Transportation, ITD, said
they are looking forward to the future of public transportation. Currently
public transportation in Idaho is provided by local agencies via local
governments or non-profit agencies. The state does not directly offer
transit services but depends on partnerships with agencies in local
communities where the state is able to provide funds from the federal
government. Core responsibilities include overseeing transit
administration grant programs. The Division works with grantees to
document compliance throughout the year and follow up with site visits.
This past year was a transition year for transit funding and transit
operations in Idaho. With three new urbanized areas that will be
establishing metropolitan planning organizations (MPO’s) in the state, the
Federal Transit Administration funding requires significant changes for the
delivery of public transportation services. To date, those three areas
(Coeur d’Alene, Lewiston, and Nampa) have been served by non-profit
agencies receiving federal funds. Now these areas will be funded with
urbanized area federal funds. In this program, federal funds flow directly
to a designated local government agency. There will be new funds
coming to these three areas to provide services and the new designation
will generate about $2 million in additional funding. Local governments
are looking for ways to raise matching dollars so they can access these
funds. The Public Transportation Division will continue to provide
technical assistance to these areas as they make the transition to the new
program. The state will receive approximately the same amount of money
as last year. Funds that were previously used in the new urbanized areas
must now be used to provide services in the remaining rural areas. In the
past several months, the Division has been working with local
communities and elected officials to develop new projects and to expand
services in the rural areas of Idaho.

One of the Division’s most successful programs is the vehicle investment
program started in 2000. By combining federal, state, and local funds the
Division has been able to purchase 12 to 15 vehicles each year to help
meet the ADA requirements. This vehicle investment program is focused
on the rural areas of the state and the Public Transportation Division
looks forward to working with communities that have not previously
participated in the program. The Division is working to bring increased
funding to the rural program with the new federal reauthorization program
and is helping local communities look for local dollars that will serve as a
match to federal programs. With increased funds available to Idaho, it is
vital to have the support of the Legislature and local government officials.

The Division looks forward to helping coordinate transportation services
throughout the State.

A copy of the Annual Report and Budget for the Idaho
Transportation Department is held in the Senate Transportation
Office.

EXCUSED:

PRESENTATION

Charles (Chuck) Winder, Chairman of the Idaho Transportation Board,
indicated that the budget presented at this meeting has been a year-long
effort of the Board and staff. The Board endorses the budget which is
tight but balanced.

Jim Ross, Interim Director and Chief Engineer for ITD, presented an
overview of the Governor’s pending, revised FY04 budget request which
amounts to $432,583,200. About 48% of the budget comes from
dedicated funds and about 50% from federal sources. The budget
includes four program enhancements which total $2,916,000. Refer to
pages 2 through 5 of the Budget Briefing Report referenced above.

Mr. Ross introduced Steve Moreno who is the Division Administrator for
the Federal Highway Administration. Mr. Moreno indicated that the
federal government is operating under a continuing resolution for federal
highway funds (TEA-21) until January 31, 2003. He also gave each
member of the committee a copy of the Federal Highway Administration’s
2001 Annual Report. A copy is held in the Senate Transportation Office.

Susan Simmons, Division Administrator for Management and
Administrative Services for ITD, indicated the FY04 budget request for her
division is $23,026.900, and 98% of that amount comes from state
dedicated funds. There is one program enhancement for Business
Continuity (Disaster Recovery) for $372,000. Refer to pages 7 through 13
of the Budget Briefing Report referenced above.

Charles Rountree, the Administrator for Transportation Planning for ITD,
indicated his division’s FY04 budget request is $3,642,000.
Approximately 76% of the division’s funds come from federal sources.
There is one program enhancement which transfers one person from
operating to personnel so there are no additional dollars involved. Refer
to pages 15 through 21 of the Budget Briefing Report referenced above.

Morris Detmar, Motor Vehicle Administrator for ITD, presented his FY04
budget request of $17,944,800 which comes entirely from state dedicated
funds. There are no program enhancements in the FY04 budget request.
Refer to pages 23 through 27 of the Budget Briefing Report referenced
above.

Steve Hutchinson, Administrator for Highway Operations for ITD,
presented his FY04 budget request of $380,437,300 ($127,095,100 for
highway operations and $253,342,200 for contract construction). The
FY04 budget includes a program enhancement for contract construction
spending authority totaling $1,753,200. Refer to pages 30 to 38 of the
Budget Briefing Report referenced above.

Bob Martin, Division Administrator for the Division of Aeronautics for ITD,
presented his FY04 budget request for $3,333,100. Federal funding
makes up 32% of his budget and 60% comes from state dedicated funds.
The FY04 budget includes a program enhancement for a non-primary
entitlement program totaling $790,800 which is one-time rather than
ongoing as shown on page 44 of the Budget Briefing Report. Please refer
to pages 40 through 47 of the briefing report referenced above.

Larry Falkner, Public Transportation Division Administrator for ITD,
presented his FY04 budget request of $4,199,100 of which 87.4% comes
from federal funds and 12.6% from state dedicated funds. There are no
budget enhancements this year. Refer to pages 49 through 55 of the
Budget Briefing Report referenced above.

EXCUSED:

Senator Bailey introduced RS 12584 which would exclude certain all-
terrain vehicles from snowmobile registration requirements. Any all-
terrain vehicle required to be registered under any other provision of
Idaho law, and in compliance with those registration requirements, would
not be subject to the snowmobile registration requirements of Section 67-7112.

Senator Bunderson presented RS 12658 which would increase the
number of electors required to dissolve a highway district from twenty-five
people to twenty percent of the qualified electors of the district who voted
in the last election held for the election of highway district commissioners.

Jeannette Risch explained the purpose of RS 12611 is to increase the
age for mandatory restraint of children in a motor vehicle from 4 years of
age or 40 pounds to six years of age or 60 pounds.

Senator Brandt introduced RS 12418C1 which will update Section

49-943, Idaho Code, to a more modern description of vehicle windows
and allow vehicles to display signage in rear and rear-side windows.

Senator Burkett introduced RS 12678 which would establish an Idaho
White Water license plate program. The plates will cost $35.00 for the
initial plate and $25.00 for renewal plates. $10.00 of the cost will go to the
State Highway Account. $25.00 of each initial fee and $15.00 of each
renewal fee will be transferred to the State Treasurer for deposit to the
Tourism and Promotion Fund of the Department of Commerce to be used
for the general education and promotion of Idaho’s white water rivers and
industries. The Department of Commerce will consult with
representatives of the white water river communities and industries before
expending any money from the fund.

Doug Gaskell, Executive Director of the Idaho State Independent
Automobile Dealers Association, explained that RS 12663 would provide
examination and continuing education requirements for licensure of
vehicle dealers.

Doug Gaskell, Executive Director of the Idaho State Independent
Automobile Dealers Association, presented RS 12667 which would limit
the number of license plates a dealer may be issued. A dealer could
receive two license plates for twenty vehicles sold during the previous
dealer licensing period and one license plate for each ten additional
vehicles sold during that same period. The proposed legislation would
authorize an audit of vehicle sales upon renewal of a dealer’s license.

Doug Gaskell, Executive Director of the Idaho State Independent
Automobile Dealers Association, explained that RS 12669 would require
additional information on a motor vehicle release of liability statement
upon the owner’s sale or transfer of a vehicle to another party. It also
provides that an owner who files a release of liability statement will not be
liable for subsequent towing, storage, repair or service changes. The
proposed legislation would also make it unlawful for any person to
knowingly file or attempt to file a release of liability statement which
contains false information.

Senator Ingram introduced RS 12608 which would provide that an
applicant for a driver’s license or instruction permit who is not eligible for a
social security number can present an individual tax identification number
(W-7) issued by the Internal Revenue Service in lieu of a social security
number.

Mike Keithly, Vice Chair of the Idaho State Independent Living Council,
explained that the purpose of RS 12582 is to increase the number of
designated available parking spaces for people with disabilities. The
proposed legislation would increase the fine for illegally parking in an
accessible parking space from $50.00 to $100.00, clarify existing
language that one parking space will be designated for every thirty-five
spaces of on-street parking available on each downtown block, create a
fine of $100.00 for people who park in the striped access aisle adjacent to
an accessible parking space, and allow licensed physician assistants and
licensed advanced practice professional nurses to verify that the
applicant’s stated impairment qualifies as a disability. The bill also adds a
$1,000 fine, possible imprisonment and community service for people who
steal or unlawfully sell, copy or duplicate disabled license plates or
placards.

When asked about the designated parking space requirement when there
are 34 or less parking spaces on one downtown block, Mr. Keithly
responded that a designated parking space would not be required for that
block.

Scott Patrick of Boise, Idaho, previously served a partial term of 1-1/2
years on the Board. He is a native of Boise, graduating from Boise State
University in 1975. He earned his Commercial, Instrument, Certified
Flight Instructor, and Airframe and Powerplant ratings in 1980. Aviation
has been his full-time career since 1980. He has owned and operated SP
Aircraft since 1982 and the Boise Pilot Shop since the late l980’s. SP
Aircraft operates 11 aircraft for charter, instruction and rental. He is
married and has four children. Mr. Patrick listed his political affiliation as
“independent.”

Chairman Ingram indicated the Committee would make their
recommendation on Mr. Patrick’s reappointment at the next meeting.

Skip Smyser thanked the Committee for giving the Ada County Highway
District (ACHD) the opportunity to make a presentation. ACHD is one of
the ten largest government entities in Idaho and has countywide
jurisdiction over all non-state and non-federal public roads, including
streets within the cities. It is a unique entity that can be learned from as
other highway districts reach out for help and assistance to better
understand transportation issues. Mr. Smyser introduced the current
ACHD Commissioners: Sherry Huber who is the president, Susan
Eastlake, Dave Bivens, David Wynkoop, and John Franden.

Sherry Huber, ACHD Commission President, also thanked the
Committee for the opportunity to present information on ACHD. She
introduced other staff members to the Committee. The Commissioners
serve four-year terms with the terms staggered so that at least two
Commissioners are up for election every two years. The Commission
sets overall policy and the annual budget for the District and hires the
Director.

Craig Quintana, Public Relations Officer for ACHD, said the purpose of
this presentation is to acquaint the Committee with facts about ACHD and
how it continues to accomplish its assigned mission. ACHD was created
in 1971 and its mission is to provide the best public highway system for
the safe and efficient movement of people and goods in Aa County. The
FY03 budget is $63,416,500. ACHD spends more than half of its budget
on capital projects, including construction of new roads, bridges and other
improvements. One-fifth of the District’s budget is spent on maintenance.
Each local road receives significant work on a nine-year cycle. ACHD
also promotes alternative transportation through car- and van-pooling.

ACHD programs roadway, intersection and associated highway work
construction and reconstruction projects in a five-year work program
which is updated each year. It also has a 20-year listing of capacity
expansion projects based on forecasts of population and associated
traffic that are made by the Community Planning Association of
Southwest Idaho (COMPASS).

When asked how projects are coordinated between the highway district
and the rest of the projects going on statewide, Mike Brokaw, ACHD
Treasurer, indicated a lot of the federal funding is being coordinated
through LHTAC and ACHD puts its projects into the mix.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,

explained that there are some federal funds designated for rural areas.
Highways and cities in those rural areas apply for those funds by
submitting their projects to the Local Highway Technical Assistance
Council (LHTAC) who rates the projects and makes recommendations to
the Idaho Transportation Board . Then the Idaho Transportation Board
adds those to the State Transportation Improvement Program (STIP) and
ultimately determines how the funds will be distributed in accordance with
federal guidelines.

David Wynkoop, an ACHD Commissioner, said when it rains hard in an
urban area, often there is no place for the water to go. That is becoming
a major expense for doing road projects in urban areas. They tried to
address that issue about ten years ago and found out how complicated it
was. They are still working on a solution.

Dorrell Hansen, Assistant Manager of Engineering for ACHD, discussed
drainage issues and how they affect the Ada County Highway District.
ACHD is primarily responsible for building and maintaining roads in Ada
County. Runoff comes off the roads. When it rains hard, it comes off a lot
heavier and faster, so ACHD must use existing drainage features in order
to convey and treat the water. The existing facilities for handling runoff
are very fragmented. There are over 60 different entities within Ada
County that deal with drainage. There are also new federal mandates
that require the water to be cleaned before it is discharged. ACHD is
seeking solutions to manage the storm water that is on the roadways. It is
not just the roadways but some of the storm water is coming from private
property. Unfortunately, a lot of irrigation water also gets onto the
roadways. He briefly gave a legislative history beginning in 1975 of how
ACHD has attempted to look for solutions for drainage in Ada County.
There have been various task forces and legislative proposals but, to
date, they have not been successful in getting a drainage bill through the
legislature. The Ada County Highway District stands ready to help solve
the problem.

Steve Price, ACHD General Counsel, introduced Ryan Armbruster, an
attorney with Elam & Burke, who represents drainage districts.

David Bivens, an ACHD Commissioner, was a farmer and a legislator
when they began working to satisfy the drainage problem. Years ago he
also served as President of the drainage ditch district in Payette County.
He currently serves on the Water Committee with Community Planning
and continues to work with others trying to get all of the common
problems identified relating to drainage. In looking at the big picture of
drainage irrigation, the situation changes from one mile to the next.
Progress has been made but more has to be done to come up with a
reasonable compromise and solution to the drainage problem.

EXCUSED:

Recommendation

Senator Keough moved that the Senate Transportation Committee
recommend the Senate confirm the gubernatorial appointment of
Scott Patrick of Boise, Idaho, to the Aeronautics Advisory Board for
a term commencing January 13, 2002, and expiring January 13, 2007.
The motion was seconded by Senator Bailey.

Ayes: Senators Ingram, Keough, Geddes, Little, Bailey, McWilliams

Nays: Senator Marley

Note: Senator Brandt was excused and Senator Calabretta was not
present during the vote.

By a 6 to 1 vote, the motion carried.

Senator Hill presented RS 12444C1 for Senator Bunderson which would
create a special motor vehicle license plate for Boy Scout youth programs
in Idaho.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
introduced RS 12606 which would revise the definition of “expenditure.” It
would allow highway districts the ability to enter into personal service
contracts based upon competence and qualifications rather than lowest
bid.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
presented RS 12616 which provides that services performed by Council
members may be compensated at the rate determined by the members’
respective associations. Members of the Transportation Committee
indicated they would be more comfortable if there was a cap listed on the
daily compensation rate.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
presented RS 12621 which would make grammatical and procedural
corrections to highway district law. Reference to the disposal of highway
district property is deleted from the county law, and clarified in the
highway district section. It also amends Section 40-1308 to correct a
previous deletion in Idaho Code on the ability to pay for legal actions,
judgments, and emergencies. The proposed legislation would also clarify
the procedure for disposing of property over $5,000 in value and restricts
employees and their families from having a personal interest in the
property to be sold.

The Committee does not recommend the rejection of any rules and does
not object to any temporary rules adopted by the agencies. A letter will
be sent to the President Pro Tem indicating the Committee action, a copy
of which is attached to the minutes. Vice-Chair Keough returned the
gavel to Chairman Ingram.

Eric Milstead, an analyst for the Legislative Budget Office, introduced the
participants as follows: Joel Drake, Idaho Transportation Department;
David Hahn, Division of Financial Management (DFM) , Eric representing
the Legislative Budget Office; and Ray Ineck, Legislative Audits. Each
group will focus on the budget process as it relates to the Idaho
Transportation Department and will explain what happens in each step of
the budget cycle. The budget process begins with the annual budget
development manual which is a collaboration between DFM and
Legislative Services Office (LSO). The manual provides instructions to
assist agencies in preparing their operating budget requests. It ensures
general consistency in the presentation and review of requests which
provides agencies the flexibility to clearly describe programs, objectives,
and needs. The manual is sent to agencies in May and budget requests
are due in early September. From September through December the
budget requests are analyzed and the hearing process occurs in January
and February. Budgets are usually set in March and then approved by
the Governor.

A copy of the powerpoint presentation used by all presenters
entitled, “Overview­Budget Process” is held in the Senate
Transportation Office.

Joel Drake, Office of Budget, Policy and Intergovernmental Relations for
the Idaho Transportation Department, explained his department’s internal
budget development timeline, the steps involved in developing the
appropriation request (including linking their strategic and business plans
to the budget process, forecasting revenues, identifying non-standard
cost increases, fielding and approving enhancement requests, balancing
to available revenues, etc.), the internal parties involved in the review and
approval of budget requests, and the department’s process for monitoring
revenues and spending against the appropriation during each year. A
copy of his testimony is held in the Senate Transportation office.

David Hahn, an analyst for the Division of Financial Management (DFM),
provided a brief overview of his division, reviewed DFM’s statutory
authority, and explained the role DFM plays in developing the Governor’s
transportation budget recommendation. A copy of his testimony is held in
the Senate Transportation office.

Eric Milstead, legislative analyst for the Legislative Budget Office,
explained that the Office of Budget and Policy Analysis supports Joint
Finance-Appropriations Committee (JFAC) and all legislators providing
them with state budget and appropriation detail as well as policy research
and analysis. The office analyzes all agency budgets submitted and
compares requests to revenues and expenditures (actual and estimated).
They also focus their analysis on requests for enhancements which are
requests for funds or spending authority or full-time positions that are
above the agency’s base budget. (Enhancements usually reflect new
programs or additions to existing programs.) Following submission of the
Governor’s budget recommendations in early January, Legislative
Services Office publishes a legislative budget book which provides
comprehensive comparisons of agency requests to the Governor’s
recommendations. Then JFAC spends about six weeks hearing agencies
present their budgets which gives the agencies an opportunity to highlight
critical issues and further, gives JFAC the time to delve deeper into
budget requests during a question-and-answer period. Then JFAC hears
testimony from germane committee chairs; this step is designed to
provide a link between policy action and budget setting. The next step in
the process is for JFAC to begin setting budgets which takes about 15
working days. Following a successful motion on appropriation bills in
committee, the bills are sent to the floor for debate and action by both the
House and Senate. The appropriation process concludes when the
appropriation bills are passed by the Legislature and signed into law by
the Governor. The Legislative Budget Office then prepares a Legislative
Fiscal Report that reflects the accomplishments of the just-completed
legislative session. Mr. Milstead’s comments refer to the attached one-page sheet entitled “Idaho State Budget Process.”

Ray Ineck, Supervisor of Legislative Audits, Legislative Services Office,
gave an overview of the Legislative Audit organization and duties which
included an explanation of their audit authority, audit scheduling, report
release and follow-up process. He gave examples of statewide audit
reports and focused on their audit approach on the Idaho Transportation
Department. A copy of his testimony is held in the Senate Transportation
Committee.

EXCUSED:

Ed Pemble, Drivers Services, Division of Motor Vehicles, Idaho
Transportation Department, explained that RS 12717 would allow ITD to
change the method of notification of driver’s license suspensions, title
cancellations and vehicle registration cancellations from certified mail to
first class mail. Sending notifications via first class mail will be more
effective because it is forwarded (certified mail is not) and is not subject to
refusal. There would be an estimated cost savings to ITD of $240,000
per year; currently certified mail costs about $4.00 per letter. The
Attorney General’s office proposed the language in this bill.

Presentation

John Anderson, Director of the Boise Airport, said the airport is owned
and operated by the city of Boise. It is very highly regulated by the
Federal Aviation Administration (FAA) and the Department of Homeland
Security and the Environmental Protection Agency (EPA). They also do
business with the Departments of Defense (through the Idaho National
Guard), Interior and Agriculture. The Idaho Division of Aeronautics did a
study a few years ago on the economic impact of airports in Idaho and
found the Boise Airport’s economic impact on Idaho is about $1 billion
annually. Employers based on airport property (National Guard, National
Interagency Fire Center, airlines, auto rentals, concessionaires, and other
leasehold tenants) employ over 4,300 people; the airport’s staff totals
about 130 people. The airport has room to grow because it owns about
two miles of property off the east end of the runways and is trying to buy
as much land as possible on the west. The Department of Homeland
Security is in charge of security at all U.S. airports and has required
increased security locally. The Boise Airport now has four security
checkpoints but has no room for additional expansion until the new facility
is completed. In July 2001 ground was broken on 364,000 sq. ft. building
with an elevated roadway and an integrated security system­the
beginning of a long-term expansion program. The facility has been
reinforced in many ways (for security purposes) at an additional cost of
approximately $6 million. The total cost of the project is about $104
million which is one of the largest non-highway public works projects in
Idaho’s history.

Projects are funded without any local tax dollars; 67% of their funding
comes from passenger facility charges (paid when a ticket is purchased),
18% comes from FAA grants, 6% comes from the airport capital
improvement fund, and the remaining 9% comes from other revenues.
The airport’s top revenue sources are from parking lot charges, car
rentals, airline landing fees, terminal rent from airlines, industrial land rent,
concession revenue, and freight landings. Compared to others, Boise is a
low-cost airport; i.e., low landing fees, low terminal rent, etc. Last year the
airport lost about eight percent of its revenue but management cut
expenses to control costs. Since 2000, enplanement numbers (paying
passengers) are down.

Aviation concerns include passenger numbers rebounding slowly
because of the economy due to the 1) cost of oil, 2) possibility of a war,
and 3) stability of the airlines. Fortunately Boise has 4 low-cost airline
carriers. Future projects include constructing a new air traffic control
tower, relocating Gowen Road in order to move the Interagency Fire
Center and existing cargo facilities, and changing the Vista Avenue
Interchange. If the airport is successful in getting a cargo hub in Boise
and bringing in National Guard C-17 aircraft, Mr. Anderson estimates it
will create about 6,000 jobs.

Mr. Anderson expressed frustration that Congress authorized $750 million
to TSA for airport projects. Other airports, including Boise, believe
airports have not received any benefits from those funds. He believes
that local governments and their airports through Idaho’s congressional
delegation need to get some sense back into what is being done in the
security area so control is decentralized and brought back to the local
level. Increased security has cost the airport industry a tremendous
amount of money.

A copy of Mr. Anderson’s powerpoint presentation is held in the Senate
Transportation Office.

Charlie Clark, special representative to the President of Union Pacific
Railroad, said railroads experience some frustration with local, state and
federal policymakers because a lot of federal policies shape the railroad
industry, such as ICC, NAFTA, GATT, etc. Railroads are private
companies; they own, operate and maintain their roads and other
property. Union Pacific Railroad (UP) grew into a Class I railroad which is
a railroad with revenues over $500 million annually. There are also Class
II and Class III railroads. Class I railroads (Union Pacific and Burlington
Northern) operate the interstates of the U.S. rail system, the Class II and
III’s (short lines) operate the arterials and farm-to-market roads.

Union Pacific has been in business 141 years and has been an “online”
company all of that time; it was created by Congress in 1862 when
President Abraham Lincoln signed the legislation. UP’s mainline and
branches in southern Idaho eventually served all of southern Idaho’s
communities. Jointly with Burlington Northern and Great Northern, UP
also served north Idaho.

After deregulation was approved in the early 1980’s, there was a flurry of
mergers, acquisitions, sales, leases and abandonments of rail line
companies and their roads. Over the last 20 years, not just UPRR, but all
the surviving Class 1 railroads look and operate very differently. Today
there are only five Class I railroads remaining in the United States: Union
Pacific and Burlington Northern in the west, CSX and Norfolk Southern in
the east, and Kansas City in the midwest. These five railroads are today’s
interstates of America’s rail system. Union Pacific lost about $1.5 billion
putting its last merger with Southern Pacific together. Today Union
Pacific is an efficient and successful franchise that has become the
largest railroad in North America. Currently, Union Pacific operates in 23
states, has 33,035 miles of mainline track, 48,000 employees, an annual
payroll of $2.7 billion, operates 6,886 locomotives and has 96,776 freight
cars.

One of the benefits of the last merger is the diversity of UP’s business
mix that consists of agriculture products, intermodal (containers),
industrial products, energy (coal), chemicals, and autos. In Idaho, UP has
almost 900 miles of track, about 1,000 employees, an annual payroll of
$50.6 million, and pays approximately $5 million in taxes (the majority in
property tax). UP’s biggest customers are Amalgamated Sugar, Simplot,
Monsanto, New West, and Potlatch. The company moves thousands of
cars of potatoes, grain and lumber.

Union Pacific owns about 26% of the Mexican railroad. NAFTA, a federal
policy, has helped open company business in Mexico and Canada. The
General Agreement of Tariffs and Trade (GATT) will allow UP to create
new corridors north and south with Canada and Mexico.

The company continually works to reduce overhead costs and intends to
become even more competitive and efficient. UP’s challenges in today’s
soft economy include paying increased wages and the double-digit health
care benefits. UP is concerned about world strife which could increase
fuel costs. (next to the U. S. Navy, UP is the second largest user of fuel–­
in 2002 they used 1.3 billion gallons. The company also has concerns
about soaring insurance costs. Last year’s longshoremen strike cost UP
and other rail carriers a lot of money. Union Pacific is very competitive
and uses its own infrastructure, saving taxpayers millions of dollars in
highway maintenance costs.

Steve Thomas, a local attorney representing Burlington Northern (BN),
introduced Pat Keim from Helena, Montana who is in charge of public
affairs for Burlington Northern in four western states.

Pat Keim, briefly discussed Burlington Northern Sante Fe’s history. The
railroad began in 1846, one of the oldest, continuous railroads in the U.S.
Its western expansion began in the 1870’s. Today they operate in Idaho’s
Panhandle which is their critical link in the Northwest. In Idaho they have
about 80 miles of mainline track and 40 miles of branch line, 130
employees, and a payroll of about $5.5 million. Last year Burlington
Northern originated 14,500 cars and terminated about 3,700 loads in
Idaho so it is largely an outbound business shipping lumber. BN has a
concern about continuing pressures on the lumber industry, pressures
from the unavailability of federal lands for forest cutting.

Burlington Northern’s other big business in northern Idaho is intermodal —
flatcars on trailers (piggyback). They serve northern Idaho out of their
Spokane intermodal hub center­one of BN’s major hub operations.
Intermodal is a very important component of BN’s market mix. They are
the largest provider of railroad intermodal service in the world. Using rail
lines helps save highways while providing service to customers. Their
business mix consists of 25% intermodal, 25% coal, 25% grain, and the
remaining 25% is made up of lumber and other products. BN is the
largest grain hauler in the world.

Their major facility in Idaho is the Hauser fueling plant which is a major
investment for BN. The plant will fuel 25 trains a day and is designed to
relieve congestion. When completed it will employ about 50 people. The
facility has sophisticated leak controls and is a completely contained
system that is computer controlled.

BN is in a highly competitive business; they compete both inside and
outside the business. Their four largest shippers are motor carriers: UPS,
Roadway, Yellow Freight, and J. B. Hunt.

Mr. Keim briefly referred to S1053 which will allow trucks to be 10 feet
longer­from 105′ to 115′. The bill does not have the same wording as the
statement of purpose which states that the additional 10′ would be on the
pulling unit, or tractor only. He requested that it be clearly spelled out in
the bill so the language would be consistent with the statement of
purpose. He was assured by the Chairman that a correction is being
made in the form of an amendment to S1053.

He said his business has been heavily impacted by the state of the
economy in that BN’s revenues have been flat for the last 18 months and
it appears that will continue for some time. They have been effective at
instituting cost controls to keep expenses mostly flat but inflation has
caused the price of some things to increase, such as the cost of medical
insurance. The investment in their company is down significantly so they
are in a maintenance mode. In the last five years they spent heavily in
the expansion area but have now curtailed expansion almost in half–

from $2 billion to $1 billion. During their expansion period, they
purchased over 1,500 locomotives so 50% of their locomotives are less
than 5 year old. They look forward to the time they will be able to expand
as the economy recovers.

Ed McKechnie, from Eastern Idaho Railroad, was unable to attend the
meeting. Ron Kerr will discuss the short line railroads.

Carl Tueller, Deputy Director for the Department of Commerce, explained
that they were the lead agency when the 2001 Idaho Legislature created
a short-term rail transportation Advisory Group charged with assessing
the impact of rail transportation on the economic vitality of Idaho, with
emphasis on rural locations. The Advisory Group members were from the
Departments of Agriculture, Commerce, Transportation, the Idaho
Historical Society and the Idaho Public Utilities Commission. He
acknowledged the work of Ron Kerr from ITD and Richard Twight from
the Department of Commerce both of whom worked diligently to do the
research and surveys.

A copy of the Report is held in the Senate Transportation Office.

Ron Kerr, Senior Transportation Planner for Rail, Waterways and
Intermodal, Idaho Transportation Department, described briefly the rail
system in Idaho. Class I railroads in Idaho are Union Pacific and
Burlington Northern; the regional railroad is Montana Rail Link and there
are six short lines.

In the early 1900’s the big railroads were buying the little railroads and by
the end of the century they were selling them back to smaller, short line
carriers. The short lines take over routes the Class I carriers find
unprofitable or abandon. With a lower cost structure and more flexible
service, the short lines have been able to keep most, but not all, of the
rural lines operational. The advantages of short lines are lower labor
costs, local ownership, and the ability and incentive to develop additional
business. In some instances the revenue is not adequate to make up for
decades of sometimes insufficient capital investment in the rail
infrastructure because of lack of sufficient business to justify it.

The rail system is important to Idaho’s economy contributing $137 million
in 1999 through wages to 1,558 employees and retirement benefits.
During that same time, railroads originated a total of 12.8 million tons and
terminated 10.4 million tons of freight traffic and carried over 23 millions
tons of farm products, non-metallic minerals, lumber and wood products,
food products, chemicals, petroleum and other products. Rural areas rely
heavily on the rail freight system to facilitate movement of products to
local, national and international markets. Rail abandonment can
substantially increase the cost of transporting many commodities to
market, especially heavy or bulk commodities.

Some of the observations from the report are as follows. There will
probably be more light-density rail abandonment in Idaho and rail line
abandonment may not be limited to light-density lines. Uncertainty in the
minds of shippers can drive a self-fulfilling process that ultimately could
result in rail line abandonment. Main-line track capacity is becoming
limited in some areas. More freight might be removed from highways if
intermodal shipping is not priced by the railroads as a premium service.

Rail-line operators and users and the Port of Lewiston are generally
receptive to supportive state action to keep rail lines operating when cost-benefit analysis demonstrates that the benefits exceed costs. Short lines
indicated they are interested in participating financially with the State on
economically justified rail capital improvement projects under the Idaho
Rail Preservation Program.

Since 1975, Idaho has lost over one-third of its rail miles to abandonment.
The motor-vehicle freight traffic from rail abandonment increases the
burden on state highways and local roads. The economy of the state and
the competitiveness of Idaho’s freight shippers will be best served by a
policy of maintaining and encouraging a healthy rail freight system by
creating mechanisms that keep rail freight lines operating if the benefits
outweigh the costs.

The duties of ITD in implementing the Idaho Rail Service Preservation
Program are to monitor the state’s rail system through a rail planning
process, develop criteria for evaluating and prioritizing freight rail projects
and ensure that the state maintains a contingent interest in equipment,
property, rail line or facility that has grants and/or loans. Qualified rail
lines for this program are Class III short lines, branch lines of Class I or
Class II railroads and lines owned by public entities including port
districts. To date, funds have not been appropriated for this program.

A copy of Mr. Kerr’s powerpoint presentation and two maps showing
railroad locations are held in the Senate Transportation Office.

EXCUSED:

Robert Hoff from Idaho Falls, Idaho, has been reappointed to the
Aeronautics Advisory Board by Governor Kempthorne. Mr. Hoff has been
an aviation business owner of a fixed-wing operation since 1983 and is a
backcountry pilot and has his commercial and instrument ratings. He was
first appointed to the Aeronautics Advisory Board in February, 2000 and
his reappointment will expire on January 31, 2008.

The Committee will vote on Mr. Hoff’s reappointment to the Aeronautics
Advisory Board at the next meeting to be held Tuesday, February 11,
2003.

Steve Tobiason, representing AARP, introduced RS 12898C1. When he
looked at an earlier version of the proposed legislation sponsored by the
Idaho Independent Living Council, Mr. Tobiason, an attorney experienced
in criminal prosecution, had some concerns about the clarity of the
language regarding criminal penalties in the back portion of the bill. He
offered some modifications to the Idaho Independent Living Council that
all parties concerned could agree on. The main purpose of the legislation
is to increase the availability of designated accessible parking places for
those with disabilities. The legislation would increase the fine for
unauthorized parking from $50.00 to $100.00 and adds a fine not to
exceed $1,000.00 for unlawful possession, use, distribution or
manufacture of a special plate or placard.

Stuart Davis, Executive Director of the Idaho Association of Highway
Districts, presented RS 12616C1 which would put a ceiling of $100.00 per
day on the amount a Council member can be compensated.

Chairman Ingram introduced RS 12942 for Senator Cameron. The
proposed legislation will establish a license plate program honoring
members of the United States armed services killed in action. The license
plates may be purchased and displayed by family members. $15.00 of
each initial fee and $5.00 of each renewal fee will be transferred by the
State Treasurer into the Veterans Cemetery maintenance fund to be used
to operate and maintain a state veterans cemetery.

Senator Bunderson presented RS 12935C1 that allows for the
dissolution of a highway district by changing the number of electors from
25 people to the greater of 25 qualified electors or 20% of those qualified
electors who voted in the last election held for highway district
commissioners. This legislation came about because of an issue in a
large district where a very small number of people were attempting to act
without a vote of a majority of those governed. There is no controversy to
this piece of legislation.

Senator Burkett presented RS 12927 which would establish an Idaho
white water rafting license plate program. This proposed legislation was
rewritten to more narrowly define those white water interests of rafting and
kayaking. The design of this bill is to have an advisory committee to the
Department of Commerce decide how funds would be spent. Half of the
advisory committee would be represented by users and the other half
would be representatives from the commercial side. Perhaps in the
future the jet boaters might want to work on a plate for their area of
interest. This is a compromise piece of legislation.

Dave Doeringsfeld, Manager of the Port of Lewiston, shared some
information about the Port’s mission, background, and objectives. The
Port of Lewiston is a public organization serving the citizens of Nez Perce
County as an intermodal transportation center with a mission to foster job
creation and job retention activities to maximize the value of its assets to
enhance the economic stability of the county and state. The Port was
formed in 1958 and has three elected officials who serve as
commissioners. The Port’s three primary objectives are intermodal
transportation, economic development and international trade. The Port
of Lewiston is located 465 river miles from the Pacific Ocean and is the
most inland and eastern port of the Columbia/Snake River System, the
nation’s second largest water transportation highway. All major modes of
transportation are available to Port shippers and receivers. Grain
shipments are the number one export at the Port. Forest products,
primarily in the form of pulp and paper products account for the second
largest tonnage. Potlatch Corporation is a major user of the Port in
moving paper products. The Port has a large multi-modal warehouse
located in the waterfront area and is accessible by truck, rail and barge.
A copy of Mr. Doeringsfeld presentation is held in the Senate
Transportation Committee.

Skip Smyser, an attorney and lobbyist for the Idaho Trucking Association,
introduced Paul Sudmeier, Executive Director; Dar Oberding who is
familiar with agricultural segments of the trucking industry; and Jerry
Whitehead, the owner of Western Trailer, (a trailer manufacturer in Boise)
who works with every segment of the trucking industry. Mr. Smyser
thanked the Committee for the opportunity for the trucking industry to
make a presentation.

Paul Sudmeier, Executive Director of the Idaho Trucking Association,
said he represents 290 members in Idaho, 190 of whom are motor
carriers and the balance are allied members. He gave an overview on the
role of trucking in Idaho, observations on what is good and not good
about the industry and some recommendations for the Committee to
consider. About 70% of Idaho’s communities are solely dependent on
trucking to move freight in and out of their communities. The trucking
industry in Idaho accounts for over 39,000 jobs, has a payroll over $1
billion and it is estimated that the trucking industry contributed 5.3 percent
to Idaho’s gross product in the year 2000. He referred to an Executive
Summary of a Highway Cost Allocation Study from 1993 that indicated
trucks in Idaho were overpaying their fair share by 37% which is the
relationship expected when Idaho ranks 6^th in fees on trucks and 42^nd in
the fees on cars. Fees on autos could be increased by $200 per year and
still be below the median of fees charged in the United States. If auto
fees were increased, it would produce an additional $220 million in
revenue.

The carrier industry in Idaho has an increasingly positive safety record.
The crash rates for high gross weight doubles and triple configurations
are much less than the regular 5-axle combination (18 wheeler). One of
the things that handicaps the industry today is the inability to make
meaningful improvement in allowable gross weights. The primary reason
for that is the inclusion in the 1991 Highway Bill the “longer combination
vehicle (LCV) freeze” that said no combination in excess of 80,000
pounds authorized by federal law can operate unless it was in operation
on June 1, 1991. It put Idaho at a disadvantage because it did not
increase the gross weight poundage prior to that date as did Montana,
Wyoming, Nevada and Utah who increased their gross weight laws prior
to that arbitrary date. The result has been that Idaho’s shippers need to
run six trucks to do the work of five in competitive states. Mr. Sudmeier
encouraged the Committee to consider a joint memorial to Congress to
eliminate the LCV freeze. Idaho’s congressional representatives need to
hear from the Idaho legislature.

The Idaho Trucking Association would like Idaho to collect all the revenue
to which it is entitled. Today there is a significant amount of dyed fuel that
is entitled to be run offroad that is being burned on highways and there is
no enforcement program in place to capture the road tax. The state is
allowing subsidies for ethanol and biodiesel ; those subsidies should
come from the general fund not from the highway distribution account. It
would be better tax policy if user fees in Idaho were fixed rather than
variable. Since 9-11-01, both commercial and passenger miles dropped
by about 40%.

The Association urged the Committee to spend more efficiently. The
state could spend less on pavement if it allowed more widespread use of
LCV’s which reduce truck trips and tire pressure per trip is reduced in an
LCV combination over a federally legal combination. Labor costs could
be reduced by simplifying user fees; currently ITD has an unnecessary
audit expense with five levels of mileage auditing for registration. The
Association encourages fairness so that any time there is a new user fee,
equity for class of vehicles would be considered. An example of a four
cent per gallon increase in gas tax, would increase the annual user fees
for a car by $28.00 but the same four cents would increase the annual
cost of operating a typical truck about $700.

Dar Oberding, a lobbyist for the Idaho Grain Producers, discussed the
significance of highway transportation in Idaho in relation to agriculture.
Idaho experiences unfair rates, especially in southern Idaho. The cost of
shipping out of southeastern and south central Idaho where about 25
million bushels of soft white wheat is transported is $.70 per bushel. The
same mileage from Bonners Ferry to the Port of Portland is about $.46
per bushel. From Emmett to Portland it costs about $.49 and from
Moscow to Portland is about $.39. Without the competition of the river
freight, heavier trucks are needed. There is only one railroad in southern
Idaho and they are captive shippers. The only way for competition to
occur is to allow heavier weights on trucks. He asked the Committee to
assist efforts in lifting the LCV freeze so there would be a more level
playing field.

Jerry Whitehead, the owner of Western Trailers, has over 200 Idaho
employees and his company builds about 500 trailers annually. He
currently ship trailers to Maine and other northeastern states which costs
between $2,700 and $3,000 per trailer. To expand his market he either
needs to increase productivity or get trailers to market at a better price. In
Idaho, freight is a big factor to any manufacturer; there needs to be a
better way to get freight in and out of the state. He encouraged the
Committee to consider the memorial proposed by Mr. Sudmeier to end
the LCV freeze. Anything done to help trucking would, in turn, help
manufacturing.

Ron Shepard, Coordinator for the Motorcycle Safety Program, Idaho
Department of Education, presented S 1011 which would establish a
motorcycle safety license plate program. The Skills Training Advantage
for Riders (STAR) program was created in 1996 and has grown 469% or
an average of 38% per year with no increase in the base funding. Since
its inception the STAR program has trained over 7,200 Idahoans to ride
motorcycles safely and/or improve their skills. Since the program began,
fatalities have decreased 66%. $25 of the initial fee and $15 of each
renewal fee for the purchase of license plates will be deposited in the
motorcycle safety program fund. The license plate will be displayed on
automobiles not on motorcycles.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,

presented S 1054 which would exclude from the definition of
“expenditure” personal service contracts. It will allow highway districts the
ability to enter into personal service contracts based on competence and
qualifications rather than lowest bid. There would not be a fiscal impact.
When questioned about people being shut out because they are not on a
“preferred list,”

Mr. Davis did not believe it would keep anyone from being on such a list.
This method would streamline the process. It is often used in right-of-way
acquisitions. “Personal services” is not defined in Idaho Code per se but
it would include services like land acquisitions, or accounting or legal
services but it excludes architects and engineers. Some Committee
members expressed concern that it might eliminate fair business
practices.

Mr. Davis indicated he would like the bill held until the next meeting so he
can have a representative from the Ada County Highway District speak to
those areas of concern.

S 1052

Unanimous

Consent
Request

Establish an Idaho Boy Scout License Plate Program

On request by Chairman Ingram, granted by unanimous consent,

S 1055 and S 1052 will be held until the next meeting on Tuesday,
February 11, 2003.

EXCUSED:

A hearing to reappoint Robert Hoff to the Aeronautics Advisory Board was
held Thursday, February 6, 2003.

Steve Allred, Director of DEQ, introduced Jess Byrne who assisted him
with the powerpoint presentation and Steve West, the new manager of
DEQ’s Air Quality Program.

Federal regulations and laws are difficult for DEQ’s Air Quality to deal
with. Federal law tends to be reactive and not to deal with problems until
such time as it is past the point of taking corrective actions. State law is
more productive because it allows proactive actions to be taken. Idaho
works with local units of government, cities and counties, to try to put in
place air quality measures that are workable. These issues are very
important because the federal government withholds federal highway
funding when standards are not met.

He discussed some of the federal regulations and some of the challenges
that Idaho is facing. The federal ambient air quality standards cover 7
criteria (pollutants); these are federal standards that must be met under
the Clean Air Act. Idaho does not enforce federal law. So far, state law
has been deemed to be sufficient to substitute for federal law. EPA
delegates the authority to monitor at the state level as long as Idaho
meets the requirements of the state implementation plan which includes
laws and regulations. Because Idaho has had some non-attainment
areas, federal requirements can include 1) extensive monitoring for
ambient background and individual sources, 2) stringent permits for
industrial facilities, 3) expensive plans and modeling to show control
measures and contingencies to achieve and maintain attainment, and 4)
transportation control measures. Transportation conformity is required
(Section 176(c) of the Clean Air Act) in non-attainment areas to ensure
that federally supported highway and transit projects adhere to Air Quality
Improvement Plans.

PM 2.5 and ozone are significant health impacts. When an area goes into
non-attainment, the federal government imposes requirements which can
include sanctions prescribed in the Clean Air Act; they do two things. The
first is to impose limits on highway funds through conformity which means
it could require that every road project be reviewed to determine whether
it will adversely affect the non-attainment area, and if it does, federal
highway funds cannot be used. Secondly, it also impacts industries
because it can double requirements for the industries to operate in non-attainment areas. Either one of these can have a significant economic
impact on the non-attainment area. Mr. Allred said he was not aware of
any location in the United States that was able to get out of non-attainment for ozone once that designation was applied. If the national air
quality ambient standards on the gauges are exceeded for a selected
number of times, the area is classified as non-attainment. To get out of
that determination, an area must be in attainment for a long period of
time. Idaho is facing a serious situation but with an aggressive,
comprehensive program at both state and local levels, things can be done
to keep from going into non-attainment status, which in turn, will keep
Idaho from losing federal funds for the maintenance and building of roads.
Ozone is not the only area to be affected but is certainly a primary one.

In the future non-attainment areas will be designated by airshed. If Boise
were to be designated a non-attainment area, it is Mr. Allred’s belief that it
would affect the whole Treasure Valley including Ada and Canyon
Counties as well as those activities that affect the airshed even outside
those counties (including Ontario and perhaps Nyssa).

The Clean Air Act uses the highway funds as a sanction. He feels it will
not be land or water that limits growth in the Treasure Valley but the air
quality. If EPA were to determine the Treasure Valley to be in non-attainment, Mr. Allred believes that most industries would look elsewhere
and a doubling of requirements could occur, so it would have a huge
economic impact. DEQ is working actively with COMPASS and local
governments to help them design programs to deal with current issues so
the gauges do not determine the status.

In north Idaho, Mr. Allred is concerned about the area around Spokane
and Coeur d’Alene. It is similar to what is happening in the Treasure
Valley regarding air quality. DEQ gives local governments and chambers
of commerce information so they can make wise choices in taking
proactive action. If non-attainment occurs, regulation moves from local to
state to federal oversight.

The Committee would like information from DEQ on what is happening
outside of Idaho­how other areas are working on these problems.

Mr. Allred also discussed statewide issues relating to ground water.
There are many influences on ground water and, unfortunately, there has
been considerable deterioration in ground water. It has been affected by
septic tanks, fertilizer applications (nitrogen), landfills, livestock, leaking or
inadequate sewer systems, etc. To deal with ground water issues, people
need to be mobilized, much like what is being done with air quality. In
Twin Falls, Burley and the Boise areas safe drinking water standards
(particularly for nitrates) have been exceeded. In some areas there is
also concern with biological contamination. There is a very
comprehensive ground water law which provides that resources must be
protected. It will require developing extensive plans and then
implementing them. Most nitrogen exceedences are in rural areas. In
urbanized areas the water is drinkable because there are centralized
systems but in rural areas there are individual wells.

When one looks at transportation issues relating to ground water, runoff
from roads, waste water, etc. must be dealt with actively. It is a statewide
problem and cannot be solved by dealing with a single source. In the
future, the problem will occupy a lot more time and attention and take
years to solve. DEQ offered to brief the Committee on the runoff issue
later this legislative session.

A copy of Mr. Allred’s powerpoint presentation is held in the Senate
Transportation office.

Senator Bunderson presented S 1052 which allows people to make a
free will offering to support areas of interest to them. This program will
benefit the four Idaho Boy Scout councils made up of over 34,000 scouts
and over 18,000 leaders. The license plates can be purchased for $30,
$20 of which will be deposited to the respective boy scout council in which
the selling county is located. Boy Scout councils whose boundaries
extend outside of Idaho must use the funds in Idaho.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
said his association represents 64 highway districts and over 12,000
miles of secondary roads. The discussion on S 1054 continues from the
last meeting because there were some unanswered questions. Mr. Davis
introduced Steve Price who is General Counsel for Ada County Highway
District.

Steve Price, General Counsel for the Ada County Highway District,
explained more fully the definition of “expenditure.” In Idaho Code
Section 40-901 and 906 relating to the competitive bid process sets the
parameters highway districts must use in the competitive bid process. It
states that expenditures in excess of $5,000 up to $25,000 require the
district to take the lowest of three bids regardless of the person’s or
company’s qualifications. Cities and counties are provided the
opportunity to exclude “personal services” from the expenditure definition.
He referred to wording in Idaho law relating to cities (I.C. Section 50-341)
and counties (I.C. Section 31-4002) wherein it states that disbursement of
funds for “personal services” are excluded from the definition of
“expenditure” in the competitive bid process. This legislation is to afford
the highway districts the same opportunity. Per a decision from the Idaho
Supreme Court, to be exempt from technical bidding requirements,
“personal services” was interpreted as “requiring special skill or technical
learning.” This would allow the highway districts to not only get the best
bid but to also take into consideration the person’s qualifications which
will allow the district to get the best cost as an agency. This would not
exclude others from the opportunity of bidding because personal service
needs are posted on an agenda as a “consent” items so other competitors
could present their case.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
explained that S 1055 is a housekeeping measure to clean up several
conflicts in Idaho Code regarding highway districts. Reference to the
disposal of highway district property is deleted from the county law and
clarified in the highway district section. The bill amends Section 40-1308
to correct a previous deletion in Idaho Code on the ability to pay for legal
actions, judgments, and emergencies and it clarifies the procedure for
disposing of property over $5,000 in value and restricts employees and
their families from having a personal interest in property to be sold. It also
grants highway districts the same power as cities to purchase items at
public auction; it changes the requirement for highway districts to publish
proposed commissioner salaries from the provisions of Title 40-206 and
replaces it with the requirement that the proposed salary shall be printed
as a separate line item in the annual budget. Finally, the legislation
allows highway district commissioners from a countywide highway district
the option to establish their salaries in accordance with I.C., Title 40,
Chapter 13.

Jessica Fry, representing Idaho Citizens Action Network, explained that
S 1044 would simplify the process of applying for a driver’s license if a
person is not eligible for a social security number. The proposed bill will
allow a person to use a Federal Form W-7, Individual Taxpayer
Identification Number (ITIN) to apply for a driver’s license. The proposed
bill is modeled after Utah’s legislation passed in 1999 and is in response
to the thousands of working immigrants in Idaho who are currently barred
from obtaining a driver’s license. These people are working, paying
taxes, raising families, and driving in Idaho. In the U. S., 22 states
currently have no immigration-related requirements. Federal law does not
require states to deny drivers’ licenses to individuals who do not have
social security numbers; it just requires that if they do have social security
numbers, they must report them. Issuing a driver’s license is a state
government function and there is no federal statute that requires states to
impose immigration-related requirements for obtaining a driver’s license.
An opinion from the former Attorney General’s office stated there is no
federal law that would keep Idaho from issuing drivers’ licenses
regardless of the applicant’s immigration status. Federal law does not
prohibit the use of an ITIN for purposes other than filing tax returns; it was
created by the IRS to provide a numerical identifier for those taxpayers
who are not eligible for social security numbers.

There has been some opposition to using the ITIN by a group known as
the American Association of Motor Vehicle Administrators (AAMVA) who
are working for a national identification card. Making the ITIN available
for use to obtain a driver’s license for those who do not have social
security numbers would make our roads and communities safer. It would
be a tool for law enforcement and would also assure that people could be
tested for their knowledge and skills for driving.

When asked by the Committee if it would allow those who are in the
United States illegally to drive, Ms. Fry replied that it would allow those
with undetermined status to get a driver’s license when they are probably
already driving. She said further that it would mean those who cannot
prove their status to the government would be able to legally drive.

There are five other states that use an ITIN; Idaho is the only state in the
northwest that has an immigration requirement. Sometimes those who
are here illegally do not have any form of identification and it can become
a hindrance to effective law enforcement. Law enforcement could use
this as a tool. It would allow people to have insurance coverage on their
vehicles.

Gary Brown, Sheriff of Boise County representing the Idaho Sheriffs
Association, spoke in opposition to S 1044 because these are illegal
people who are in our country. Terry Derden with the U. S. Attorney’s
office has told the Idaho Sheriffs Association that it is illegal for county
sheriffs to issue a driver’s license to a person who is in the United States
illegally. Mr. Brown does not have Mr. Derden’s comments in writing.
Idaho is the only state in the nation where the driver’s license is issued by
the county sheriff. This issue is a concern to Homeland Security because
a driver’s license is used for many things, not just to drive a vehicle; it is
used to get on an airplane, etc. If you give drivers’ licenses to people who
are illegally in the United States, it would open other doors for them.

Erik Johnson, an attorney and Co-Chair for Idahoans for Farmworker
Justice, spoke in support of S 1044. He was aware of Mr. Derden’s
comments and tried to contact him; they exchanged e-mails. Mr. Derden
suggested Erik contact the IRS and then contact the INS. The U. S.
Attorney’s office has not issued an opinion to date stating that a sheriff
would be prosecuted for issuing a driver’s license to an undocumented
person. Mr. Johnson feels there is no legal basis for that statement which
he has explained in detail in a letter held in the Senate Transportation
office. The law requires a direct causal connection between the act that
the sheriff is committing and knowingly encouraging a specific alien to
come knowing that he is undocumented. Criminal law is very specific and
it does not provide a basis for some general inducement like providing a
driver’s license. State and local governments can provide public benefits
to undocumented people without any sanction from the federal
government. One can make the argument that Idaho should not offer a
driver’s license to someone who is in the country illegally. Mr. Johnson’s
counters the argument with the fact that people are here and they are
here in great numbers­some 10 to 20 million by various estimates. They
need to be able to get drivers’ licenses and insure their vehicles so the
issues of safety are addressed. Nothing in this proposed legislation
precludes INS from deporting people even if they are issued drivers’
licenses because federal immigration law takes precedence over state
law. This proposed bill would only allow them to drive, it does not give
them any status to be in the country.

When asked if there was any way to check/verify an ITIN the answer was
negative. The system social security has does not exist within the IRS.

Sam Byrd, Executive Director, Idaho Migrant Council, spoke in support of
S 1044. There are social reasons to support this bill; people need to
remember where they came from­their roots. This issue is a states rights
issue. This is an issue that will not be solved by the Legislature. People
want to go to work, they are driven­they want to make a better life for
their families. Opportunity is a magnet to come to this country and to
carve out a better life. Hispanic Immigrants are dependable. They make
up the majority of the agricultural work force and many of them work in
nurseries, construction, the meat processing industry, etc.­those both
documented and undocumented. With regard to Idaho, many
constituents need this law so they can get to their jobs and also meet their
familial responsibilities. There are chiefs of police who will support this
bill. This bill will provide driving privileges and it will get the sheriffs’
offices and anyone issuing drivers’ licenses out of the business of having
to play the INS. I believe people who are in this country should be
documented. Child support could be collected, taxes could be paid.
When people are not tracked the taxpayers pay. This bill would allow
privileges for driving while at the same time not impacting what can
happen to these individuals in terms of their legal status in the United
States. It makes economic sense for Idaho to be able to track those
individuals who are residents in various communities. It would honor
those individuals who are the backbone of this state in terms of the labor
they provide.

Mo Detmar, Administrator for the Division of Motor Vehicles, Idaho
Transportation Department, said the general purpose of the driver’s
license is to test an individual’s knowledge of driving law and skill. Based
on that limitation, ITD would be neutral but the problem is the driver’s
license or identification card (they are the same) becomes the first line of
defense and detection of ID fraud. His department has a great deal of
difficulty in working with foreign documents but they are successful.

This can become a national security issue. It is Mr. Detmar’s
understanding that the ITIN is unverifiable and if it is used to replace a
social security number, it would help illegal aliens blend into society and
never have to deal with the INS. What that means is once people have
drivers’ licenses issued by any state, they can buy homes, drive
vehicles, and get insurance. He sympathizes with people who need those
things but the driver’s license is the key to society today. Mr. Detmar
believes this change, however intended, has a chance to erode national
security efforts and may subject Idaho’s drivers’ licenses to criticism as a
weak link in the country. As an example, because Utah accepts ITIN
documents, the state of Arizona will not honor reciprocity. That sets us all
up. As long as legal precedence is required, and if legal precedence is
not proven and the ITIN is not verifiable, Idaho will have problems. Today
Idaho verifies electronically–one of the first states to verify social security
numbers. Electronic verification has done a great deal for Idaho citizens;
many social security numbers, names and transmission problems have
been corrected by the verification process. The verification process has
been very helpful in proving a person’s identity which is a requirement for
legal presence. States are getting tougher on this issue per the National
Conference of State Legislators (NCSL). One last point, the American
Association of Motor Vehicle Administrators (AAMVA), on whose Board
Mr. Detmar sits, does not favor national ID cards.

The hearing on S 1044 will continue on Thursday, February 13, 2003.

EXCUSED:

Russ Hendricks, Idaho Farm Bureau Federation, expressed appreciation
for the opportunity his group was given to explain how ethanol can be a
vital tool in cleaning the air as well as providing for rural economic
development in Idaho. He spoke about air quality issues and touched
briefly on other positive impacts of growing and producing ethanol in the
state.

Ethanol is an ethyl alcohol derived usually from grain although it can also
be made from anything containing sugars or starches including potatoes,
sugar beets, wood waste, straw and other crop residues, whey, and a
variety of other renewable resources. Ethanol is 35% oxygen in its
chemical makeup (C₂H₅OH) whereas gasoline contains no oxygen. The
increase in combustible oxygen allows for a more complete burn of the
fuel so it reduces emissions. It is also much higher in octane than
gasoline which allows refineries to scale back on the amount of aromatics
to keep octane within the same grade of gasoline using an ethanol blend.
(This is the entire basis of the Environmental Protection Agency’s (EPA’s)
oxygenated fuel program used by more than 30 major metropolitan areas
to reduce carbon monoxide and ground level ozone.) Studies show that
using a 10% ethanol blend will reduce carbon monoxide by up to 30% and
will also significantly reduce volatile organic compounds, nitrogen oxides,
PM₁₀ and other toxic emissions. In addition, ethanol will give immediate
results­the minute ethanol blended gasoline is used, the reduction in
emissions begins.

Idaho consumes 600 million gallons of gasoline annually which is
imported since Idaho does not have any oil production facilities. If
Idahoans were to use 10% ethanol in gasoline, they would use 60 million
gallons less imported fuel. The Energy Division of Idaho Department of
Water Resources recently commissioned a study to determine the
feasibility of doing just that. The study found that there is conservatively
the potential to produce around 100 million gallons of ethanol using only
25% of the state’s current grain production. This would provide millions of
dollars in state and local taxes, create hundreds of good paying jobs, and
would provide additional markets for local crops, which in turn, would
provide additional income for Idaho’s farmers. Ethanol can provide a win-win situation by cleaning the air and providing for rural economic
development within the state.

He used the Minneapolis-St. Paul area as an example of an EPA declared
non-attainment area. In 1992 they implemented an oxygenated fuel
program which required all fuel sold in a 10-county metropolitan area to
contain 10% ethanol. They soon realized they could build their own
ethanol plants which would add value to their crops and provide additional
jobs and tax revenues in rural areas. In 1997 Minnesota’s legislature
passed a law requiring all gasoline sold statewide to contain 10% ethanol.
Minnesota has not been in violation of clean air standards since the
inception of the program in 1992 and has since come off the non-attainment list. They have been able to abolish their auto emissions
program because they now have a cleaner burning fuel. Last fall Mr.
Hendricks visited ethanol plants in Minnesota and South Dakota. All of
the money from ethanol production stays in the local areas and benefits
the rural economy. The plants are clean, low impact, and environmentally
friendly facilities and have brought new life to rural areas.

Mr. Hendricks introduced two other speakers involved in proposed
ethanol plants in Idaho. Brad Frazee is working with a group to build a
plant in the Magic Valley and John Hamilton is working with another group
to build a plant in Payette County.

Brad Frazee, General Manager, Ethanol Division, Intrepid Technology
and Resources, Inc., from Idaho Falls, gave a brief powerpoint
presentation on what is happening with ethanol across the United States,
and why his company sees potential in developing ethanol facilities in
Idaho. The Clean Air Act requires extra oxygen in gasoline because it
improves tailpipe emissions. In the past 10 years MTBE, a petroleum
derivative, was used as an oxygenator but has been banned in 14 states
because it can be a water contaminate. The only replacement material
available today is ethanol because it has the same combustion
characteristics. Demand for ethanol is expected to triple in the next
decade­it has doubled in the last five years. In 1973, the U.S. was
importing 30% of its oil from overseas; today the U.S. imports 60%. Every
barrel of ethanol produced means two less barrels of crude oil coming into
the country. Today ethanol is only supplied by midwestern states with
over 60 plants in operation. Idaho’s two small plants, owned by the J. R.
Simplot Company, are only one-tenth the size of single plants in other
states.

Mr. Frazee believes Idaho has the production capacity; the beef and dairy
cattle can take the secondary product (spent grain), there is a multi-crop
basis, good rail access and truck routes (to haul cattle feed), and natural
gas supply. With the next generation of technology (cellulose-based
technology), plant emissions will be more efficient because they can take
straw and other products and convert them to ethanol. Straw that
normally is burned in the fields could be burned in the plants. The
secondary product will then be lignon, not cattle feed. The lignon is a
coal-like material with almost no sulfur or nitrogen and the lignon can be
burned to produce the plant’s own power needs and the excess
renewable energy can be sold. He briefly discussed the benefits of
ethanol. He mentioned the Minneapolis and Denver areas which were
once in non-attainment status and now experience cleaner air. Today
about half of Idaho’s ethanol comes from the two Simplot plants and the
other half is imported from Wyoming.

John Hamilton, Manager, Treasure Valley Renewable Resources,

explained his company is composed of a group of farmer-owned people
who have formed a limited liability company in the pursuit of developing
ethanol. The plant they are designing will utilize barley, wheat and corn
which is locally grown in a six-county area; the size of the plant is 16
million gallons. They will not have as much cattle feed to sell because
they are taking the value added content out of the product before ethanol
is produced. Their products will be not only ethanol, but CO₂ (which will
be captured and sold), certain starches, protein that will go to aquaculture
and some protein for human consumption, plus fiber. The concept is to
take everything out prior to the ethanol process so that just starch or corn
will be fed into the ethanol process.

The second area they are engineering is bio-diesel. It will be a blend of
bio-diesel which is generated from vegetable oil and in the end process,
ethanol will be used to make the bio-diesel. There could be several
government and school fleets using bio-diesel. When a bushel of grain
(corn, wheat, or barley) is put through the ethanol process, the result is
about one-third ethanol and one-third CO₂. Today in Idaho CO₂ is railed
in from California because of the plant closing in Pocatello, so there is a
market for it.

Through an SBA rural development grant which the LLC matched, funds
are available to begin preliminary engineering, site plans, etc. Treasure
Valley Renewable Resources will go before the Payette County Planning
and Zoning Commission tonight to begin the first step in the process.

Tracy Walton, a former Idaho senator and farmer from Emmett who is
involved in the Treasure Valley Renewable Resources, LLC, said his
group is committed to adding value to local grain crops, stimulate the
regional economy, and help Idaho become less dependent on foreign oil
supplies. One of his concerns as a farmer is if they produce this bio-diesel ethanol product where are they going to sell it. Farmers have
several mandates but one that bothers him is that Shell, Chevron, and
Texaco will not allow any of their Idaho stations to sell ethanol or bio-diesel. Perhaps there needs to be a mandate requiring state vehicles to
use ethanol the first year and then expand the law to include others.
Spokane mandates the use of ethanol, so Texaco, Shell and Chevron do
use ethanol in their gasoline in that area. In 2006, sulfur has to be
removed from diesel and it can be replaced with 2% bio-diesel. It is
estimated that the Payette County facility would produce between
$300,000 to $400,000 in property taxes annually.

Allow Use of W-7 ID Form to obtain Driver’s License

Jessica Fry, representing the Idaho Citizens Action Network, introduced
Julie Chinitz, a staff attorney with Northwest Federation of Community
Organizations.

Julie Chinitz, an attorney with Northwest Federation of Community
Organizations, stated that providing more immigrants with the opportunity
to be licensed is the right thing to do for the safety and security of all
Idahoans. A driver’s license does not make individuals eligible for public
benefits and it does not grant them status under federal immigration law.
It is a document that shows they have been tested to drive on the roads
and it shows their identity. Idaho currently requires applicants for drivers’
licenses to prove who they are and this bill will not change that.

She addressed two legal issues regarding S 1044. First, there is the
complexity of immigration law. Federal law does not divide non-citizens
into those who are legal and those who are illegal. These materials show
just a portion of the scores of immigrant and non-immigrant statuses and
the ways in which they can be documented. The fact that a person may
have improperly entered the country does not mean that he or she does
not now have permission to remain in the United States. Determining
immigration status is extremely difficult and Idaho’s current law puts the
staff of sheriffs’ departments in a very difficult position and sometimes
errors occur. She gave an example of someone born in Bulgaria who
could not use her passport as proof of her legal status to apply for a
driver’s license.

Second, there is no federal legal impediment to S 1044. Congress has
had the opportunity to impose immigration-related restrictions on drivers’
licenses and has specifically not removed that authority from the states.
The idea that federal criminal liability could attach to issuance of driver’s
licenses in accordance with state law is unfounded. There is no basis for
this on the face of the statutes, no basis in the case law, and no basis in
the overall structure of federal law relating to non-citizens. (For example,
federal law requires state Medicaid agencies to provide emergency
medical assistance regardless of immigration status. The idea that
federal law would tell employees of the Department of Health and Welfare
(DHW) to give Medicaid to a person of unknown immigration status and
then hold that DHW employee criminally liable defies logic and the law.)

Would this bill allow some undocumented people to get drivers’ licenses?
Yes, it would. But who? People coming to Idaho to make better lives for
their families. They are the backbone of Idaho’s agricultural economy.
Denying them drivers’ licenses makes no sense.

She said there are some people who are here legally who cannot obtain a
driver’s license under Idaho’s system. There are some immigration
statuses that are especially complex. It can also be complex to get a
social security number. It is her understanding that a work authorization
card does not grant lawful status but shows that a work authorization card
allows them to work in the United States. Immigration laws are difficult
and cumbersome. She said that Idaho’s undocumented population is
estimated to be about 19,000 but she is not sure how many of those
people are of driving age.

Father Jesus Comacho, a priest serving the Roman Catholic Diocese of
Boise currently assigned to the state prison and Ada County jail, spoke in
support of S 1044. He is an immigrant who has lived in Idaho for 22
years. He asked the Committee to let undocumented workers drive
legally. Idaho needs those people. They serve in hotels, restaurants, and
in agriculture. Undocumented workers have expertise; they are good
farm workers­they love the earth and soil. They have a strong sense of
service and loyalty. Idaho needs immigrants. In his 22 years of living
here, he has watched Idaho become better, to a great extent because of
immigrants who live and work here. They work jobs because they need
them but the system denies them the right to drive. Many policymakers
condemn the presence of the undocumented people while benefitting
from their labor but not recognizing their basic rights.

Mia Crosthwaite, a legislative advisor for the Catholic Church and
Catholic Charities in Idaho, talked about moral rather than legal issues
relating to S 1044. Most of the people who migrate into this country seek
a better life for themselves and their families. It is our duty to care for our
neighbors who are everyone who needs us. She does not just think of
“Idahoans,” or “Americans,” but the common good of all people. She
quoted a Catholic Bishop who said, “while the Church does not advocate
undocumented immigration into the United States, it affirms the human
dignity of the undocumented who live within our midst and makes every
effort to make sure their basic human needs are met and their human
rights are not trampled on.” People are being forced into a choice of
suffering injustice for their children or breaking the law. The Catholic
Church supports S 1044.

George Nourse, Canyon County Sheriff, said every sheriff has a different
jurisdiction with a different set of problems. He discussed the situation
within his own jurisdiction. The problem he is dealing with involves three
areas: courts, incarceration, and immigration. Regarding the courts, the
Sixth Amendment to the United States Constitution gives everybody the
right to a trial if they are arrested. Probably less than 5% are given a trial
which means there is a 95% trial deficit. Canyon County’s courts are no
different. Because of pressure coming from prosecutors, defense
attorneys and judges, the tendency is to make a deal because there is not
money, time or resources to have a trial. The courts are totally
overloaded.

The second phase of the problem deals with incarceration. In the U. S.
today over 2 million people are incarcerated­more than any other country
in the world. Canyon County built a new jail to hold 350 people and it was
suppose to be adequate for 20 years; it worked for five years. The old jail
was remodeled to give them 100 more beds. Today the jails are
overloaded again ­ there are 30 to 40 people sleeping on the floor. At
least 22 people are there for suspended license charges. There are an
additional 100 people in the work center (those who spend nights in jail
and work in the daytime) and probably one-third of them are on
suspended license charges. How do people get to work when they leave
his jail? He knows they don’t ride bikes and they don’t walk. He tells his
staff not to watch and not to ask questions because he has no room for
more people.

The third part of the problem deals with immigration. In the 1960’s and
1970’s immigration was very active in Canyon County where illegal
immigrants were picked up, put on buses and shipped back to Mexico.
Sheriff Nourse recalled they shipped about four to six busloads of illegal
aliens back to Mexico each week. In the 1980’s the practice stopped. In
talking to immigration officials who worked on the street, it became
politically incorrect to enforce immigration laws; he was told not to do it.

The reality of the situation is that the jails are full and the courts are full.
Illegal aliens live in the community and they are not going away. That
puts Sheriff Nourse in a dilemma of how to handle the problem.
Obviously, if they drive without a license, they will eventually be stopped
and arrested, brought to the court and jail systems, and then they go back
out on the street where they drive again. Basically, it is a revolving door
and they are being cycled through the system. Sheriff Nourse is not
dealing with a few illegal aliens driving without licenses ­ he is dealing
with a few thousand illegal aliens who drive without licenses. This
presents a totally different problem for him than it does for other sheriffs in
Idaho. Does he have an answer? No, he does not. When he drives in
Mexico, that country recognizes his Idaho driver’s license. Something like
that might be part of a solution. If people who are here legally have green
cards and get a denial from the social security office, they can use their
denial letters to get a driver’s license. The only people being talked about
are those who are in the United States illegally. They make up a
significant number of Canyon County’s population and they present a very
big problem for law enforcement, the courts, and the justice system.

People can be jailed for driving without privileges, it is at the discretion of
the sheriff but Sheriff Nourse can only control those who work for him in
his jurisdiction. He does not envy the Committee’s position of trying to
solve these types of social problems.

Representative Wendy Jaquet, from District 25, spoke in support of the
legislation so that people who drive can be insured and not put their
families in jeopardy. She gave two examples of people who had
problems trying to obtain drivers’ licenses.

Senator Shawn Keough gave Committee members a copy of the Idaho
statute pertaining to election day registration which states that an
individual who is eligible to vote may register on election day by appearing
in person. One of the things that is accepted to prove residency is an
Idaho driver’s license or identification card issued by the Idaho
Department of Transportation. This issue of making drivers’ licenses
available to undocumented workers is not simple.

Mike Kane, an attorney and lobbyist for the Idaho Sheriffs Association,
said his association does not stand against immigration or any member of
society. The legislature decided many years ago that the county sheriffs
would be the ones to handle driver’s license transactions. In all other
states it is handled differently. Last year the Idaho Sheriffs Association
was approached with this issue by those sponsoring S 1044. The sheriffs
debated the issue and were somewhat divided. The association did not
vote on policy. The sheriffs wanted to know if it would be legal for them to
issue a license if they have reason to believe a person is an illegal alien ­
were they allowed under federal law to sell a driver’s license to that
person. When Mr. Kane called the U. S. Attorney’s office in Idaho he was
told that it was illegal to issue a driver’s license in that instance and,
further, the sheriff would be committing a crime. The same deputy U. S.
Attorney for Idaho came to the Association’s December, 2002, meeting
and was asked the same question. He responded to the membership the
same way. As a lawyer Mr. Kane cannot counsel his clients otherwise.
He does not know if the U. S. Attorney would really prosecute a sheriff.

He understands that before the Idaho U.S. Attorney can make a
statement in writing, clearance must be received from their Washington,
D.C. office. When asked if there was a basis for the response that it
would be illegal for a sheriff to issue a driver’s license to an illegal alien,
he replied that there is a concept of aiding and abetting or assisting in a
crime. If a sheriff were to know or have reason to know that he is
assisting in that crime, known as misprision of a felony, he could be liable.
(In most counties, it would be a sheriff’s deputy who would be issuing the
driver’s license.) The sheriffs run the risk of breaking federal law. Until
that issue is solved, the Idaho Sheriffs Association cannot support S
1044.

Denied

Robert Boester, an immigrant who became a U. S. citizen in 1959, spoke
in opposition to S 1044. He has been an American for over 30 years and
had to wait for a couple of years to become a citizen. He had a criminal
background check, he was fingerprinted, he had to swear that he was not
a communist, that he would not try to overthrow the government of the
U.S., he had to report his whereabouts every year, and was subject to
deportation any time a law was broken. It was hard for him but he did it,
all the while obeying the laws of this country. He is astounded that the
Committee would even consider making it easier for illegal aliens to obtain
drivers’ licenses because they have broken immigration laws. He

urged the Committee to reject S 1044. A copy of his testimony is held in
the Senate Transportation office.

Discussion

EXCUSED:

Jeannette Risch, a private individual, presented S 1038 which would
provide that no non-commercial motor vehicle operator shall transport a
child under the age of 6 years and who weighs less than 60 pounds
unless the child is properly restrained in a car safety seat that meets the
requirements of federal motor vehicle safety standard No. 213. The
current statute requires children who are 4 years of age and 40 pounds to
be restrained in car safety seats. When children graduate into a lap
shoulder belt, they do not properly fit into that lap belt until they are 4′ 9″
tall. If children graduate into the lap belt too early there is a greater risk
for injury, particularly head injuries. The economic impact of moving a
child from a one-piece safety seat to a seat that allows them to fit in a lap
belt is minimal; she bought one recently for $15.00 (it is similar to a
booster chair used at the dinner table). She emphasized that if a child is
over 6 years of age, the child must still weigh over 60 pounds ­ both
criteria must be met. An older child weighing under 60 pounds must be
restrained in a safety seat until he/she weighs over 60 pounds.

Nancy Rush, Injury Prevention Coordinator at Central District Health,
spoke in support of S 1038 to increase the age/weight criteria to 6 years
of age and 60 pounds. The western states of Oregon, Washington, and
California have laws with a similar requirement of 6 years and 60 pounds.
In response to an inquiry, she suggested if a vehicle does not have the
lap belt as well as the shoulder belt, the law needs to be worded to say
there would be an appropriate restraint. There are some devices that
work with a lap-only belt and a tether restraint that a child can wear up to
100 pounds. For low-income clients, grant funding is available which
allows Central District Health to offer car seats for as little as $20.00.

Dr. Jerry Hirschfield, a local pediatrician and the Administrator of St.
Luke’s Children’s Hospital who also represents 110 pediatricians in Idaho
and 70,000 members of the American Academy of Pediatricians, spoke in
support of S 1038. The leading cause of death in children before the age
of 14 is traumatic injury from car crashes. In Idaho, about five children
under the age of five die in car crashes each year. About 50% of U. S.
children under the age of five are unrestrained; in Idaho there is limited
data but that figure is somewhere between 60% and 75%.

Deaths are terrible tragedies but there are many children, hundreds in
Idaho, who end up in the hospital, often with permanent disability because
of traumatic car crashes because they were unrestrained. Idaho children
die in car crashes at twice the rate per population of U. S. children.
Idaho’s children are less restrained. Car/safety/child restraints decrease
the incidents of death by 50% to 75% when used properly. That means
in Idaho each year there would be two to three more children under the
age of five who would be living and many more children who would be
spared the pain and suffering of recovery.

There are three frameworks to consider. The first is engineering which
insures that restraint devices have been engineered to be as effective as
possible at preventing death and disability. The second important thing is
education which is growing in frequency and amount. St. Luke’s has an
extensive program on prevention and education about car seats. And
lastly, sometimes legislation is needed to reinforce to parents and other
protectors of children that there is a need to protect children when they
are in cars. Children under the age of 6 do not have a choice ­ it is the
parents’ choice about whether to protect the children. Most parents who
start their children in infant seats at birth usually maintain that posture.
Please protect the rights of children and reinforce to the parents through
legislation the need to restrain children properly by implementing S 1038.

Jo O’Connor, Office of Highway Safety, Idaho Transportation
Department, indicated support for S 1038.

Mary Hunter, Office of Highway Safety, Idaho Transportation
Department, indicated support for S 1038.

Allyn Dingel, an attorney representing State Farm Insurance on behalf of
all insurance companies, spoke in support S 1038. As a trial lawyer, he
has represented families whose children became missiles when they were
not properly restrained in vehicles. Adults must make the choice for
children by supporting S 1038.

Dave Carlson, a public affairs representative for AAA Idaho representing
65,000 Idaho members, spoke in support of S 1038. While there might

be better language to delineate some of the changes his organization
supports the bill.

Senator Brandt explained that S 1039 is not more restrictive but actually
relaxes the law regarding signage in windshields in motor vehicles. The
law does allow for signage that would not obstruct the driver’s clear view
of the highway or any intersecting highway. He used some of the wording
in the window tinting statute (IC. 49-944) in this proposed legislation. This
legislation, for example, will allow a suburban with signage in the back
side windows or a pickup with a “for sale” sign in the back window the
same viewing requirements and/or restrictions that a pickup with a
camper has.

Doug Gaskell, Executive Director, Idaho Independent Automobile
Dealers Association representing 255 members, presented S 1041 which
would provide examination and continuing education requirements for
licensure of vehicle dealers. A new dealer would have to complete an
open-book examination approved by the Idaho Transportation
Department (ITD). Upon renewal of a license, the dealer would have to
provide certification from an accredited educational institution approved
by ITD stating that the dealer satisfied the four-hour continuing education
requirement.

Amy Smith, Vehicle Services Manager for the Idaho Transportation
Department, indicated both the Department and the Dealer Advisory
Board support S 1041.

Bobby Petersen, current Chairman of the Board for the Idaho
Independent Auto Dealers Association and owner of Fairly Reliable Bob’s
in Boise, supports S 1041. He has witnessed first-hand the lack of
knowledge in his industry and the need for this legislation. Dealers need
to know how to do things right; they need to be educated. This program is
simple; it is an open-book examination which will expose dealers to the
material they need to know.

Jodi Hoalst, a new independent dealer and a member of the Idaho
Independent Auto Dealers Association, supports S 1041 because it will
help to legitimize dealers.

Upon questioning, Mr. Gaskell indicated that owners of dealerships are
the ones who must take the test and complete the continuing education
requirements. The curriculum must be approved by the Idaho
Transportation Department and Ms. Smith from ITD who testified earlier
said ITD is given authority to promulgate rules.

Kyle Durham, a dealer and member of the Idaho Independent Auto
Dealers Association, also spoke in support of S 1041. He indicated that
in 2000, the Oregon auto dealers started a similar program which has
been very beneficial to their membership; dealer complaints dropped by
45% . In 2001, it was the first time in history the Oregon independent
auto dealers had less complaints than franchise dealers. Dealer
education is a win-win situation because the dealers end up with more
time to sell product because they are dealing with less complaints and the
consumers win because they have a better buying experience.

Keri Ballard, an Idaho dealer and member of the Idaho Independent Auto
Dealers Association, spoke in support of S 1041.

Doug Gaskell, Executive Director, Idaho State Independent Auto Dealers
Association (ISIADA), explained that the proposed legislation would limit
the number of license plates that a dealer may be issued based on the
number of vehicles sold. There appears to be a problem of unauthorized
use of dealer plates and this legislation should reduce, among other
things, the illegal usage of dealer plates by salesmen working under a
dealer’s license. The bill would allow two dealer plates for the first twenty
vehicles sold during the previous dealer licensing period and one
additional dealer plate for each ten additional vehicles sold during the
previous licensing period. The bill will also authorize ITD to audit vehicle
sales.

Jodi Hoalst, an ISIADA member, spoke in support of S 1042. She
indicated that according to the formula in this bill, her dealership would be
entitled to 35 dealer license plates which would be more than enough for
her dealership’s needs.

Amy Smith, Vehicle Services Manager for the Idaho Transportation
Department, spoke in support of S 1042. Through the use of computer
programs, ITD can track sales without it being a burden to the
Department.

Bobby Petersen, a dealership owner and Board Chairman of ISIADA,
spoke in support of S 1042 stating that this legislation will reduce the
amount of work for ITD because there will be fewer dealer plates.

Doug Gaskell, Executive Director of the Idaho State Independent Auto
Dealers Association, presented S 1043 and explained the reason for the
change is to make Idaho Code 49-426 conform with the information
needed on the release of liability statement which sellers must send to the
Idaho Transportation Department. The bill also provides that an owner
who files a release of liability statement will not be liable for subsequent
towing, storage, repair or service charges. And further, the proposed bill
provides that it is unlawrful for any person to knowingly file a release of
liability statement which contains false information.

Amy Smith, Vehicle Services Manager for the Idaho Transportation
Department, spoke in support of S 1043. Once the former owners sign a
release of liability, they are no longer liable for subsequent charges
incurred by the new vehicle owner. Often the charges are for things like
service repairs or abandonment which occur after the sale but before the
new owner has transferred the title to his/her name.

Skip Smyser, representing the Idaho Trucking Association, presented

S 1053 and requested that S 1053 be sent to the 14^th Order with an
amendment attached. Some railroad organizations expressed concern
that the federal act referred to in the bill should be specifically stated in
the legislation in case the federal government should change language in
the federal act. It was not the trucking association’s intent to change
what is currently allowed for the load limits in Idaho. Over the years, the
design of trucks has changed substantially. This proposed bill would
allow trucks used in states such as Utah and Montana to be used in
Idaho. Again, this bill would not increase the weight or the size of the
loads now allowed in existing law.

Allen Frew, Port of Entry, Idaho Transportation Department, said his
department reviewed S 1053 and the bill does specify that it is for routes
currently approved for 105 feet. His department has analyzed those
routes and feels there is not a problem with adding another 10 feet for a
total combination length of 115 feet. The bill keeps within the 95 feet
requirement for cargo-carrying capacity.

Dave Cunningham, Branch Manager for Yellow Truck, spoke in support
of S 1053. Yellow Truck has 3 terminals and 35 employees within the
state and over 300 terminals across the U. S. with more than 28,000
employees. This bill would give his company more flexibility with the
equipment it has. It would allow Yellow Truck to be more productive and
provide better service for Idaho. As his company goes to more
conventional sleeper units, the company would not have the flexibility to
come into Idaho with triples should this bill not pass. The safety of the
conventional sleepers is better than the cabover sleepers. When asked if
this tractor would be able to pull 129,000 pounds, he was not sure but
acknowledged it is the same tractor that pulls trailers in Montana.

Ed Pemble, Drivers Services, Division of Motor Vehicles, Idaho
Transportation Department, introduced S 1064 which will allow driver’s
license suspension, revocation or disqualification to be sent via first class
mail. Current law requires that written notifications be sent by certified
mail which was intended to be an effective tool. More often than not,
certified mail has been a less effective means of notification because
about one-third of the letters are returned due to incorrect addresses and
another one-third of the letters are refused because people do not want
the bad news. First class mail can be forwarded, certified mail cannot be,
and first class mail is not subject to refusal. Including Idaho, there are
only 9 states that use certified mail; 35 states use first class mail
notification. By changing from the use of certified mail at a cost of $4.00
per item, it is estimated that the Division of Motor Vehicles could save
about $240,000 per year.

When asked about proving a case beyond a reasonable doubt if the
signed certified mail receipt is not available because the notice was sent
by first class mail, Mr. Pemble replied that only one-third of the mailings
had signed receipts. He stated further that the Attorney General’s office
provided the language for this legislation and that office felt the wording
was sufficient. He also indicated there is an upgrade within first class
mail where, by paying an additional amount of about twenty-five cents, the
post office will issue a “certification of mailing.” Some committee
members were still concerned about a possible violation of due process if
it could not be proved beyond a reasonable doubt that notification was
received. Committee members would like to know how other states
handle this problem.

The hearing on S 1064 will be continued to Thursday, February 20, 2003.

EXCUSED:

Senator Bunderson introduced S 1081 which would revise the minimum
signature requirements for a petition of dissolution of a highway district. It
changes the number of electors required to dissolve a highway district
from 25 persons to the greater of 25 qualified electors of the district or
20% of those qualified electors who voted in the last election held for
highway district commissioners.

Senator McWilliams moved that S 1081 be sent to the Senate floor with a
Do Pass recommendation. The motion was seconded by Senator
Bailey and carried by voice vote.

Jerry Deckard, a lobbyist for the 700-member Associated General
Contractors organization, explained that his association represents
highway, building and specialty contractors. He introduced Jack Snyder
from Western Construction who will present the contractors’ perspective
on transportation issues in Idaho.

Jack Snyder, a project manager for Western Construction, representing
the Associated General Contractors, explained his association’s motto is
skill, integrity, and responsibility. He said the Idaho Transportation
Department (ITD) is the major overseer of Idaho’s transportation system.
Idaho has a good highway infrastructure. His company has been a client
of ITD’s for many years. He briefly referred to a problem a few years ago
about complaints from an ex-employee of a testing company who alleged
fraud was being perpetrated against ITD. Mr. Snyder does not give
credence to those allegations. It is his opinion the contractors in the state
of Idaho deliver as good a product as anywhere in the country, due in
part, to ITD’s stringent specifications. He believes the citizens of Idaho
are getting the most for their money on transportation products. His
company works with ITD in lobbying Congress for maximum funding to
improve Idaho’s highway system. The state has strong leadership in
funding. Not only do they get the funds they are entitled to under the
highway bill but they are also very proactive about receiving
demonstration highway funding as well as discretionary funding.

He estimated that probably 70% of Idaho’s roads could not be built today
under current environmental regulations. It is his understanding that ITD
uses some of its funding for positions with agencies like Water Resources
and Fish & Wildlife to help ITD move its projects through from conception
to development and construction. Even though funding is provided, it
seems some agencies come with an agenda that is detrimental to the
interests of the citizenry they are paid to represent. Sometimes he
wonders whether costs incurred on project development, particularly with
environmental issues, produce any real benefit. Some of these
circumstances occur because the state is trying to comply with best
management practices of EPA’s Clean Water Act regarding erosion
control. He sometimes questions the cost-benefit ratio on projects but
understands that if states takes federal dollars, they must comply with
federal regulations.

Ed Pemble, Drivers Services Manager for the Motor Vehicles Division of
the Idaho Transportation Department, continued the discussion on

S 1064 which began on Tuesday, February 18, 2003. The proposed
legislation will allow driver’s license suspension, revocation or
disqualification notices to be sent first class rather than certified mail
saving the Department an estimated $240,000 annually. As he stated in
the previous meeting, certified mail is ineffective because only one-third of
it is delivered.

Tim Thomas, Deputy Attorney General for the Idaho Transportation
Department, responded to proof-of-knowledge questions from the
previous meeting. Section 18-8001 of Idaho Code does not require proof
of actual knowledge by the defendant in a trial. It requires proof of
compliance with the statute and the statute requires four things to require
knowledge. One is actual knowledge and the other three are an inference
of knowledge.

Other states have changed from certified to first class mailings. Mr.
Thomas cited the Kansas case of State of Kansas v. Lewis, 935 P.2d
1072 (1997) which referred to U. S. Supreme Court case Mullane v.
Central Hanover Bank & Trust Company, 339 US 306 (1950) regarding
what is required for due process. The Kansas case stated that a number
of states (Maine, Minnesota, New Jersey, New York, Oregon, and
Washington) have upheld service of notice of license suspension and/or
revocation by ordinary mail at the licensee’s last known address. The
decision concluded that the majority of states have held that sending
suspension notices by ordinary mail comports with due process. Such
notices reasonably calculated to provide actual notice to the licensee,
especially in light of the fact that the above-mentioned states, much like
Idaho, require licensees to timely notify the responsible state agency of a
change of address. The ruling has been challenged in other states but
has been upheld. Idaho Code 49-320 requires that the Idaho Department
of Transportation must be notified within 30 days of a change of address.

When asked how a prosecutor goes about proving that the person failed
to receive the notice and learn of its contents due to his/her own
unreasonable conduct of not reading the notice, he responded that the
statute requires it. Currently, when someone signs off on the certificate,
it is immediate that they were in possession of the notice. With this
proposed legislation the standard would be lowered to first-class mail so
the signed certified mail receipt would no longer be required. With this
amended language, the prosecutor would only need to prove that a notice
was mailed in the ordinary course of business. Case law provides for
inference. He cited an Idaho Appeals Court case in State v. Bird wherein
it concluded that compliance with statute requirements for notifying the
party of a license suspension creates an inference that the party had
received the notice and, additionally, that the party has knowledge of the
suspension.

Mo Detmar, Administrator for the Motor Vehicle Division, Idaho
Transportation Department, spoke in support of S 1064 stating that ITD
has been actively working in the current economic downturn to find
efficiency measures to help government reduce unnecessary
expenditures while still performing their work. It is understood that this
change will affect other government entities and their concerns must be
weighed in the Committee’s deliberations. Sending notices by first-class
mail has been successful in 35 other states and ITD believes it will also
be successful in Idaho.

Mike Keithly, representing the Idaho Independent Living Council,
presented S 1078 which would provide more accessible parking for
Idahoans with disabilities. The legislation would provide one parking
space for every 35 spaces of on-street parking available on each
downtown street block. The bill would also prohibit anyone parking within
the hashmark area. Fines for infractions would increase from $50 to
$100. The bill also amends the statute so licensed physician assistants
and advanced professional nurses could verify that an applicant’s
impairment qualifies as a disability; currently only a physician can do that.
In addition, any person who unlawfully possesses, sells, copies or
distributes placards would be guilty of a misdemeanor punishable by a
fine up to $1,000 and/or jail time up to 30 days.

Ken Jones, retired from the Division of Vocational Rehabilitation and an
active participant in drafting this legislation since 1979, spoke in support
of S 1078. He also works with the city of Boise on the Disability Action
Committee. The proposed legislation requires disability parking signs to
be posted adjacent to and visible from each designated parking space.
Signs painted on the ground are not always visible when it snows and that
has caused some problems in the past. Since he was deputized four
years ago to issue citations to those who park illegally, he has never been
called into court regarding the $50 fine. S 1078 would strengthen the
handicap parking statute and he urged the Committee to send the bill to
the floor with a favorable recommendation.

Ron Moran, who has been disabled since 1958 and driving with hand
controls since 1963, spoke in support of S 1078. He discussed personal
experiences he has had in finding available parking spaces. At times, he
has been able to park but could not get out of his vehicle because other
vehicles had parked too close; this law would make it illegal to park in the
hashmark area.

Charlie Chapin, representing the Disabled American Veterans (DAV)
spoke in support of S 1078.

Kate Bell, representing the Association of Idaho Cities, expressed
support of S 1078 and explained that Idaho cities have been involved with
drafting this legislation.

Steve Rutherford, an attorney employed for the city of Boise, indicated
the city has worked on the legislation with many other interested parties.
Several issues have been address, the most positive of which, in his
opinion, is having a penalty for parking in hashmark areas. He urged the
Committee to support S 1078.

Steve Tobiason, representing the American Association of Retired
Persons (AARP), spoke in support of S 1078. Earlier he had some
suggestions regarding criminal penalty language which has been
incorporated into the bill. He urged the Committee to support the bill.

Clyde Daley, the State Director for AARP representing 147,000 Idaho
members, urged the Committee to send S 1078 to the Senate floor with a
do pass recommendation. Restrictions in mobility are frustrating and this
legislation attempts to address the most serious situations. When people
intentionally disregard the law, they should be held accountable.

Stuart Davis, Executive Director of the Idaho Association of Highway
Districts, introduced S 1079 on behalf of cities, counties, and highway
districts. The proposed legislation provides that services performed by
Local Highway Technical Assistance Council (LHTAC) members may be
compensated at a rate not to exceed $100 per day as determined by the
members’ associations. The Council is made up of 3 county officials, 3
city officials and 3 highway district officials. Those who are full-time
employees are not compensated for their service on the Council; part-

time employees’ pay would be set by their respective government units.
LHTAC meets four times per year.

Chairman Ingram requested unanimous consent that S1080 be held until
Thursday, February 27, 2003. There were no objections.

(Testimony heard on February 11 and 13, 2003)

Chairman Ingram indicated a letter from Tom Moss, the U. S. Attorney for
Idaho, had been received. The letter stated that individuals who are not
U. S. citizens who have entered the U.S. without inspection are in
violation of federal criminal laws (Title 8, U.S.C., Section 1325). If local
law enforcement officers encounter individuals who are in violation of the
above-referenced federal criminal statute, the local officers or agencies
should contact the Immigration and Naturalization Service. His letter
indicated they are committed to enforcing immigration laws and restoring
the rule of law to the immigration system and Mr. Moss welcomes the
State of Idaho’s assistance in pursuing those goals. He further indicated
that allowing aliens illegally present in the United States to obtain driver’s
licenses will make it easier for such aliens to move freely throughout the
country. The possession of a driver’s license makes it possible for an
alien to fraudulently assert U. S. citizenship. A copy of the letter is
attached to the minutes.

Senator Burkett, introduced S 1082 which will establish an Idaho white
water rafting license plate program. The money raised from the sale of
license plates will be managed and dispensed by the Department of
Commerce under the advice of a consulting panel representing white
water river communities and the rafting and kayaking industries. Twenty-five dollars of each initial fee and fifteen dollars of each renewal fee will
be deposited into the account to be used for the general education and
promotion of Idaho’s white water rivers and the rafting and kayaking
industries.

Jackie Nefzger, owner of Mackay Rivers and representing the Outfitters
and Guides association, helped to organize the effort to get a license
plate program established so there would be funds to advertise what
Idaho has to offer on a national and international level. People in her
organization understood they needed the support of all the white water
rafting and kayaking community in Idaho which includes outfitters,
communities, chambers, businesses and, most of all, the private boating
community.

Tom Wilkins spoke on behalf of Salmon Air and the Chambers of
Commerce of Salmon, Stanley, Garden Valley, Kooskia, and Riggins. He
flies many people into the backcountry and his passengers realize what a
treasure the backcountry is and that it is one of the best kept secrets in
the United States. Mr. Wilkins said the backcountry industry supports a
lot of sub-industries. Outfitters are not the only ones who gain from
tourism. Salmon hotels depend on the backcountry industry for 70% to
80% of their business; restaurants, 30% to 40%; and Salmon Air, 35% to
40%. The last few years have been difficult for backcountry businesses.
In 2000 there were many fires, in 2001 the water level was extremely low
and then came 9/11 which is still affecting their industry. He urged
support for S 1082 and said it might be the first step in helping the
industry recover from recent hard times.

Troy Cooley who works for Aire Inflatables in Meridian, Idaho, spoke in
support of S 1082. His company is the largest manufacturer of inflatable
boats in the United States. His company depends on private boaters and
outfitters to purchase Aire’s products.

Mette Bernvall, who is employed by Idaho River Sports, expressed
support for S 1082. Her company, located in Hyde Park in Boise, has
been in business for 17 years. They are the largest retailer of kayaks,
rafts, and paddle sports in southwestern Idaho. She feels there is a want
and a need for a white water license plate in Idaho.

Bill Latta, an attorney for the Idaho White Water Association who is also
on the Board of Directors, said the aspect they focused on most was that
money from the license plate program could come into the community for
safety and awareness education which is needed to avoid preventable
deaths. The White Water Association is very enthused about S 1082 and
urged the Committee to support the bill. The people involved in the white
water industry spend their money in Idaho; this would be a voluntary tax
on themselves to support their sport, the rivers, and industries.

Bill Sedivy, Executive Director of Idaho Rivers United, also spoke in
support of S 1082. His organization’s main mission is to protect and
restore the rivers of Idaho but their mission also calls on them to support
the various communities that depend on Idaho rivers. His group believes
that S 1082 will be good for Idaho’s rural economies as well as the
various industries, manufacturing, service, and tourism that depend on
Idaho’s rivers for their livelihood.

Ron Moore, representing the Idaho Western Whitewater Association
comprised primarily of jet power boat operators, spoke in opposition to

S 1082. His association has over 500 members. Jet boat manufacturing,
purchases, operations, boat registrations and other associated items
account for millions of dollars of revenue each year to Idaho. His group
feels S 1082 is misplaced and not in the best interest of the white water
community because 1) white water is not associated only with rafting and
kayaking, 2) thousands of people from out of state take jet boat tours
throughout the state, 3) the proposed bill designates funds to be used not
only to promote white water rivers but the rafting and kayaking industries,
and 4) the bill appears to benefit a select few Idaho outfitters and guides

and his association feels the jet boat industry should be included. A copy
of his testimony is held in the Senate Transportation office.

EXCUSED:

Hearing

Monte C. McClure has been reappointed, subject to confirmation by the
Senate, to the Idaho Transportation Board for a term commencing
January 31, 2003 and expiring January 31, 2009. Mr. McClure, the owner
of Owyhee Construction, Inc., resides in Meridian, Idaho, and has been a
member of the Board since 1995. He has been involved in the
construction industry for over 45 years and his company is involved in all
aspects of the construction industry with particular emphasis on
underground utilities and trenchless technology. He also owns McClure
Enterprises, a development consulting and project management firm.
Additionally, he is the controlling partner in Sigma Land Company, LLC,
which specializes in the development of residential and commercial
subdivisions and buildings. He is a past president of the Associated
General Contractors and is currently on the Chapter Board of Directors
and is the National Director from Idaho.

Representative Wood, Chairman of the House Transportation
Committee, introduced H 104 which will amend Idaho Code, Section 49-1901 to provide changes to the agreement mutually agreed upon by the
participating jurisdictions made up of the 10 western states. The
proposed bill would revise Article I – Findings and Purposes by deleting
some redundant language and including additional language to facilitate
communications between legislators, agencies, and industry. Because of
organizational changes on how business is conducted, in Article II the
definition of a “cooperating committee” was changed with the help of the
National Conference of State Legislators (NCSL). Article IV clarifies
representation on the cooperating committee, revises existing powers,
and provides for additional powers. Article IX is a new section regarding
funding. Article X is also new and relates to the selection of designated
representatives. She clarified that each designated representative has
one vote. Idaho would have a total of two votes – one vote for the House
Transportation Chairman and one vote for the Senate Transportation
Chairman.

Concern was expressed by the Committee that designated
representatives could, in fact, be people other than legislators. Mr.
Detmar suggested that designated representatives could assign proxies.
Chairman Wood confirmed that by participating in the agreement,
representatives are authorized to execute the Multi-State Highway
Transportation agreement, and therefore Idaho agrees, as a state, to
everything in the agreement.

Alan Frew, Port of Entry for the Idaho Transportation Department,
responded to a question about the following formula (known as Bridge
Formula B) W = 500 ((LN/N-1) + 12N + 36) and explained that the top
weight the formula would translate to would be a maximum allowable
gross weight which, in Idaho, would be 105,500 pounds.

Paul Sudmeier, Executive Director of the Idaho Trucking Association,
said MHTA is a very important and unique organization because there is
representation from legislators, agencies and industry. The work product
that comes from that cross-section is very useful. This amendment has
been enacted in 8 of the 10 western states involved. The substantive
significance of this amendment, in his opinion, is in the expansion of the
scope of the work of this organization in emerging issues such as uniform
emission testing, intelligent transportation systems, and boutique fuels.

Mr. Sudmeier was asked how many states are required to adopt the
amendment before it takes effect. He responded by saying MHTA is
already operating under these rules, and so far, Idaho has been allowed
to participate even without adopting these amendments. He believes the
only way Idaho would not be included is for the state to take steps to
disassociate itself as a participant.

Skip Smyser, an attorney representing the Idaho Trucking Association,
said he felt it was beneficial for him to be involved in MHTA when he
served as Chairman of the Senate Transportation Committee. He
believes it is important to have interchange through MHTA with
neighboring states. Very few Idaho products are totally consumed in
Idaho, so interstate commerce is important. If Idaho does not participate,
it would be missing an opportunity.

Representative Wood was asked to recap MHTA’s history regarding
NCSL’s assisting in rewriting the bylaws. She explained that when the
previous Executive Director died, some organization members began to
question how MHTA operated because many things had changed since
its inception, so the members agreed to pay NCSL $15,000 to obtain
lawful, quality operating procedures. Last year, the House voted to pass
the legislation but the Senate did not.

Senator Geddes expressed concern that even though the legislation did
not pass the Senate last year, Idaho still participated in the program. He
felt the Committee should proceed with caution and questioned what
legislation actually means when it is passed by one body and not by the
other body and yet Idaho still participates in an organization and function
as if it were approved.

Representative Wood said according to Idaho Code, Idaho is still a
participating member. The Code requires Idaho to seek Congressional
approval of the compact. If Idaho does not do that, it could be criticized
for non-compliance. This amendment would allow Idaho to comply with
the law.

Nays: Senators Keough, Geddes, Brandt, Little

Absent: Senator Marley (when the roll call was taken)

On a 4-4 vote, the motion died and H 104 will be held in Committee.

Representative Wood introduced H 103 which amends existing law to
allow a person under 16 years of age who holds a valid Class D driver’s
license to drive after dark if the person is accompanied by another person
who holds a valid driver’s license and is 21 years of age or older and is
occupying the seat beside the licensee under 16 years of age, and the
two licensed drivers are the only occupants of the front passenger section
of the vehicle. Currently, the law is inconsistent because it allows 15 year
old people to obtain a driver’s permit which requires them to have 50
hours of driving time with an adult, 10 of which must be at night. After the
course completion and they are still 15 years of age, they are no longer
allowed to drive at night until they turn 16 years of age.

Austyn Lewis, a student from Middleton High School, completed driver’s
training when she was still l5. She received her license so she was able
to drive without restriction during daylight hours but for six months she
could no longer drive at night because she was not 16. She feels she
would be a better driver if she would have been able to drive at night for
the last 6 months. She turned 16 two weeks ago. H 103 will allow young
people to gain more night driving experience as long as they have a
licensed adult in the front seat.

Bob Wells, representing the Oregon-Idaho American Automobile
Association (AAA), spoke in support of H 103. His organization was
instrumental in getting the graduated driver’s license bill passed. This bill
will create a safe environment for people to learn. The number one
problem in young people driving today is the lack of experience and this
bill will give them that opportunity.

Mo Detmar, Administrator of the Motor Vehicles Division, Idaho
Transportation Department, expressed ITD’s support for H 103 because it
will give continued experience to young drivers.

Other students who supported H 103 were Lindsey Peterson, Marcus
Ellis, and Melisa Lokken.

Ed Pemble, Drivers Services Manager for the Idaho Transportation
Department (ITD), introduced S 1010. In the event of certain driving
convictions and driver’s license suspensions, proof of financial
responsibility is necessary for driver’s license reinstatement. Proof is
reported on Form SR-22 to ITD by the driver’s insurance company
wherein they confirm that insurance has been secured for all of the
driver’s vehicles. Insurance companies also notify the Department if
insurance has been cancelled or changed. Driving privileges are
resuspended if a cancellation is reported within the period for which proof
of financial responsibility is required.

Current law has not been fully implemented because the tools to do so
have never been in place. The Department has relied on the registrant’s
self-certification on the registration form. To implement existing law, the
Department would need a system to collect driver’s license numbers for
each and every vehicle owner on vehicle registrations and refuse to issue
or renew registrations for anyone who failed to report the information to
ITD. Vehicle information would also need to be entered on the driver
record. To accommodate this extra information and functionality, it would
require a rewrite of the vehicle registration system and the drivers system
estimated to cost $4 million to entirely rebuild both systems. This bill
removes the need for vehicle driver cross-checking and allows existing
programs to remain in place. There may be undue exposure to liability
which is the underlying reason ITD is proposing this legislation.

There is an amendment proposed by the insurance industry that would
limit the changes proposed with this legislation for a period of six years
and reinstitute the old language in 2009. The sunset clause would give
ITD time and, hopefully, the resources to implement the law.

Representative Ridinger, Vice-Chairman of the House Transportation
Committee, explained that H 138 applies only on farm-to-farm equipment
and provides that limitations as to size of vehicles shall not apply to any
trailer not wider than the implement used in the transportation of vehicles
for agricultural operations. The reason for this change in the law occurred
when a piece of equipment was unloaded that was wider than the trailer,
legally the trailer could not return to its place of origin (another farm)
without an overwidth permit. The proposed legislation would also remove
the 25 miles per hour speed limit on farm tractors or implements being
transported on highways.

Alan Frew, Port of Entry, Idaho Transportation Department, responded to
a question and explained the bill does not change the requirement (Idaho
Code, Section 49-1012) to have a slow-moving emblem on equipment.

Dar Olberding, representing the Idaho Grain Producers Association, also
supported this legislation and emphasized the amended language is for
farm-to-farm hauling; it does not apply to custom farming.

Dr. Greg Nelson, Idaho Farm Bureau, indicated support for H 138 and
his testimony is held in the Senate Transportation Committee office.

EXCUSED:

Senator Cameron presented S 1080 which will establish an Idaho “Killed
in Action” special license plate program for family members of United
States armed forces veterans killed in action. Funds generated from this
plate would go to the Idaho Veterans Cemetery; $15.00 of the initial fee
and $5.00 of the renewal fee would be deposited into the account. The
bill would allow spouses, children, siblings, grandparents and
grandchildren to display the license plates on their automobiles. This
program, as in other military plate programs, would be exempt from the
1,000 minimum sales requirement. The plate is for all branches of the
armed services and for all past and future conflicts/wars.

When asked if this program would include those killed in action in military
service not specifically during a defined conflict or war (such as a
helicopter crash, training missions or exercises), Senator Cameron was
not sure but indicated perhaps that issue could be included through the
rules process.

Nels Moller, a private individual who lost his son in the Desert Storm
conflict, spoke in support of H 1080 so those who have relatives killed in
action in military service can have their deceased loved ones
remembered by displaying license plates on family vehicles.

Mo Detmar, Division Administrator of Motor Vehicles, Idaho
Transportation Department, confirmed that the “Killed in Action” license
plate program does meet the Department’s standards and specifications.

A roll call vote was requested.

Nays: Senators Geddes, Brandt, Little, Calabretta

Absent: Senators Keough, Marley

Chairman Ingram and Senator Bunderson are co-sponsoring H 1132.

Senator Bunderson explained that S 1132 implements a 1995
recommendation of the Legislative Interim Committee on Transportation
Resource Management that state highway funds allocated to local
highway jurisdictions be allocated to one county entity. Further
distributions to other highway jurisdictions within the county will be the
decision of appointed local representatives. In 2002, Idaho distributed
$113 million to the state’s 292 highway jurisdictions. The proposed
legislation will allow the State Controller to write a single check to a
specified county entity who, in turn, has the option of prioritizing the funds
to meet countywide economic development objectives through road and
street construction and maintenance and distribute the funds in
accordance with the original allocation formula. If the appointed local
representatives cannot reach a conclusion, the money would be
disbursed based on the original formula. The distributions per highway
jurisdiction range from a low of just under $500 to a high of $18,300,000.
This legislation should promote economic development within each
county. He suggested that S 1132 be sent to the amending order to work
out the details of how local representatives would be appointed, etc.

Stuart Davis, Executive Director, Idaho Association of Highway Districts,
spoke in opposition to S 1132 stating he had serious concerns with the
legislation because 1) it appears that some entities would get less money,
2) it does not specify who would write the check to other county entities,
and 3) of the 44 Idaho counties, 11 do not have any jurisdiction over
roads. The study referred to in the statement of purpose for S 1132 was
completed 8 years ago and since then there has been a concerted effort
to do multi-jurisdictional planning. Another concern is the highway
distribution account is already down 5.9% this year. Mr. Davis
encouraged the Committee to hold S 1132.

Ken Harward, Executive Director, Association of Idaho Cities, thanked
the Committee for the opportunity to review S 1132. While he agrees with
some elements of the statement of purpose, he has several questions
about the details of the distribution of the money. He recommended that
S 1132 be sent to the 14^th Order for amendment to allow time to work on
the details.

Rick Collignon, Director, Department of Parks and Recreation,
presented H 204 which will change the existing definition of an all-terrain
vehicle. When last defined in law, there were about 14,000 all-terrain
vehicles; today, there are about 70,000 and 13 of the 23 models available
on the market exceed a number of size and weight limits in existing Idaho
Code. The proposed legislation would change the number of wheels from
two to three or more, increase the weight from 650 pounds to 850 pounds,
allow a width of 48 inches or less, a wheelbase of 61 inches or less, and
low pressure tires of 10 psi or less. This updated definition will allow new
machines being manufactured which are designed to carry two people,
one in front of the other, to have a limited wheelbase of 61 inches; the
turning radius is compromised if the machine is longer. The bill is
supported by ATV manufacturers.

A lot of vehicles not classified as ATV’s are causing off-road damage. If a
machine weighs 851 pounds, it is defined as a tractor not an ATV. There
was also some discussion about soil dislocation on 5- and 10-pound tires.
There needs to be additional work/legislation to identify and register non-ATV units because of their damaging effects on off-road public areas.

Ron Stricklin, past president of the Idaho ATV Association, spoke in
support of H 204. He agrees with increasing the size and weight limits for
ATV’s but would not be in favor of expanding those limits in the future.

EXCUSED:

Eric Shannon, Assistant District Engineer for District 3, Idaho
Transportation Department (ITD), explained that Idaho’s first “Safety
Corridor” is 14 miles of highway connecting Boise to the Emmett Valley. It
is a rural two-lane highway. He reviewed recently completed construction
projects as well as approximately $15 million worth of future planned
construction, a copy is attached to the minutes. He complimented the
citizens group of approximately 30 people who make up the Idaho 16
Task Force; they provide local information and input into the planning
process for Highway 16. ITD is currently doing a Highway 16
Improvement Study which should be completed in 2004. The study will
result in a concept and environmental document on which the remaining
construction projects will be based to upgrade the remainder of Highway
16 to a 4-lane highway with limited access and frontage roads. This study
must be completed to meet federal requirements in order for federal
funding to be available for the project.

Don Kosteler, a planner for Ada County Highway District (ACHD),
explained that his organization does not have direct jurisdiction over
Highway 16 but ACHD is involved in regional planning efforts. There is a
State Highway 16 river crossing planned in the future around either Black
Cat or Ten Mile Road. ACHD has also has taken the lead on a 3-city river
crossing between State Street and Chinden, Highway 55 on the north,
and a point between Cloverdale and Maple Grove Road on the south.
Each year they discuss project request lists with each city in Ada County.
This year Ada County and the city of Star requested that the State
Highway river crossing be examined by both the Community Planning
Association of Southwest Idaho (COMPASS) and ACHD. This has been
Star’s priority request since 2001.

Jeff Patlovich, Director of Ada County Development Services, discussed
what is allowed in Ada County along the Highway 16 corridor by referring
committee members to a letter dated March 6, 2003, written by Steve
Hopkins, a planner for his department. A map is also attached. The area
surrounding the corridor is a rural zone which can be either rural
residential or rural preservation. Industrial and commercial uses are not
allowed (with some exceptions) in a rural zone. A planned winery in the
area is considered a rural, not a commercial, zone (permitted by Ada
County as a special conditional use permit). The golf course being built in
association with the winery is an open area. Ada County Development
Services would like the Highway 16 corridor kept outside the area of
impact in order to keep allowable land uses as rural as possible so
property values will remain affordable when ITD needs to purchase rights-of-way land to expand the highway to four lanes.

Capt. Stephen C. Jones, Commander of Region III, Idaho State Police,
said he is in charge of 39 ISP officers in a 10-country area in
southwestern Idaho. His three officers patrolling Highway 16 reported the
following 3 problems with Highway 16: slow-moving vehicles impeding
traffic, passing violations (passing across solid lines, passing over hill
crests, passing in no passing zones, and passing vehicles on the right)
and speeding violations. The officers believe their enforcement efforts
are making some impact because crash statistics are down but the area
is becoming more congested as the population increases.

Lilas McColm-Traska, Chairperson for Safe Highway 16, discussed
safety concerns the citizens of Gem and Ada counties have about State
Highway 16, the traffic fatalities that have occurred, and her group’s
desire to have Highway 16 become a 4-lane highway. Her granddaughter
was killed on Highway 16 last year.

Chad Smith’s testimony was read by Chris Erlebach. Mr. Smith feels
strongly that Highway 16 must be improved because the road is not safe.
Two of his friends died in a traffic accident last year on Highway 16.
Since many people who work in Boise live in Gem County, the highway
needs to be safe for commuter traffic.

Nissa Watts, a member of Citizens for a Safe Highway 16, discussed her
concerns about Highway 16. Emmett’s population has increased rapidly
and the traffic volume is increasing at a higher rate than the population.
In 2002, the average daily count was 9,374 which was a 36% increase
over a 2-year period. She compared Highway 69 from Amity to Kuna to
Highway 16 and reported that Highway 69 was upgraded to a 4-lane
highway. She requested that construction projects on Highway 16 be
given top priority.

Chris Erlebach, who serves as a member of Citizens for a Safe
Highway 16, ITD’s Highway 16 Task Force, and is a participating member
of the Gem Economic Development Association, spoke in support of
Highway 16 becoming a four-lane highway. She referred to the Statewide
Transportation Improvement Program (STIP) which is a tool used to
organize, fund, and implement changes or additions made to Idaho’s
highway infrastructure. The current STIP book covers a 5-year period;
the first three years are a priority list of projects with the additional two
years provided for informational purposes. Out of an estimated 300
projects listed in District 3, only five are related to Highway 16 north. Of
those five, only two have been given priority dates in the first three years
of the plan. Acquiring affordable right-of-way property along this highway
is imperative in order for growth to occur. According to the Community
Planning Association of Southwest Idaho (COMPASS), at the current rate
of funding provided in STIP, it will take over 25 years to complete
improvements to Highway 16. At that rate, more deaths will occur and
time will be an enemy. They need improvements to Highway 16 now.

Cathy Smith, a community volunteer and member of the Board of
Directors of the Gem Economic Development Association, thanked those
who are working with Gem County to resolve the unsafe traveling
conditions which exist on Highway 16. The city of Emmett and Gem
County do not have the funds to join COMPASS. Emmett was greatly
impacted with the closure of the Boise Cascade Mill which translated to
over 250 jobs lost. Emmett’s unemployment rate is over 9% at the
present time. The community is making efforts to diversify from its
agriculture base. With block grant funds, the city is trying to develop a 60-acre industrial park. Upgrading Highway 16 to four lanes will help
strengthen the community’s ability to attract companies to improve the
economic landscape and infrastructure while also improving the safety of
those who travel on Highway 16. The future of Emmett depends upon
creating a safe entrance to the community while keeping Highway 16 an
efficient moving arterial.

Ted Foote, a private citizen who lives off Highway 16 in Star, Idaho, said
highway safety on Highway 16 must be improved, especially from the
intersection of State Highway 22 north to Firebird Raceway. He has
observed several accidents on this part of the highway and is convinced
that design, limited capability, and excessive speed are contributing
factors. Recent population growth and related increases in traffic in both
Ada and Gem Counties have created extremely dangerous conditions.
The road shoulders are narrow and vehicles pass at high speeds. Traffic
congestion and aggressive driving will continue to increase. School
buses load and unload children along Highway 16 and, in some places,
when a bus stops, there is little advanced warning to traffic moving about
65 miles per hour. He feels the best overall solution is to build a new
four-lane highway and, in the meantime, reduce the speed limit.

Kim Green’s letter was read by Ted Foote. In the 14 years she has lived
on Highway 16, the area has changed from agricultural to residential.
She would like to see the 65 mile per hour speed limit reduced.

A letter from Charles and Donna Strider was also read by Mr. Foote.
Traffic on Highway 16 has increased significantly and they recommend
widening the highway to improve safety.

Jim Ross, Acting Director, Idaho Transportation Department, presented
H 231 which will amend Section 49-948, Idaho Code, in an effort to
reduce the amount of pavement wear caused by studded winter snow
tires by controlling the weights of studs allowed to be installed by
commercial tire shops and by controlling how far studs may protrude
beyond the tire surface. The proposed legislation would also prohibit
using studded tires between May 1 and September 30 annually. It has
been proven by laboratory testing that the amount of pavement wear as
exhibited by rutting from studded tire erosion is in direct proportion to the
weight of studs in tires. Reducing the weights of studs would reduce
studded tire pavement wear by approximately half. According to studies
conducted in Sweden, Finland, and Norway, the lighter weight studs
would perform for traction under winter driving conditions about as well as
the heavier weight studs. The weight of studs proposed in the legislation
is the same as those currently allowed in both Oregon and Washington.
The Department of Transportation in Washington is trying to ban studded
tires completely. Commercial tire retailers in Idaho would have until July
1, 2005 to sell off their existing inventory of heavier weight studs. After
that date only tires with lightweight studs could be sold. People who own
heavier weight studs would still be able to use them.

Representative Joan Wood presented H 229 which would require
planning and zoning commissions to specifically review permit
applications for the effect they will have on adjacent roads and highways
when school districts plan to build, remodel, or bond for buildings to
determine whether there are traffic impacts on the roads and highways.
This will ensure that the state highway system and/or the local highway
system can satisfactorily accommodate the proposed school project. The
situation also becomes a safety issue, especially regarding school buses
loading and unloading school children on busy roads and highways.

Jim Ross, Acting Director, Idaho Transportation Department (ITD), fully
supports H 229. ITD encounters problems throughout Idaho regarding
schools seeking assistance after problems occur. ITD would like the
opportunity to give input prior to building whenever traffic has the potential
to impact the state highway system.

EXCUSED:

Approval

Representative Wills, a retired Idaho State Police (ISP) officer with more
than 30 years of service, presented H 303 which provides mandatory use
of safety restraints by all passengers in a motor vehicle. He gave a brief
demonstration promoting seat belt use he used during his ISP years
educating school children. With this proposed legislation, each adult
must take responsibility for his own behavior. It is not the driver’s
responsibility if an adult passenger does not buckle up. However, any
driver under 18 years of age is responsible if other passengers under 18
years old do not wear safety restraints in the vehicle. The underage
driver will receive a fine of $10.00 if anyone in the vehicle is not buckled
up and must also pay court costs. $5.00 of the $10.00 fine will go to the
State Catastrophic Fund. St. Alphonsus Regional Medical Center
indicates the average cost for a person injured in a car crash not wearing
a safety restraint amounts to approximately $80,000 versus about
$43,000 for someone who is belted. This bill will reduce health care costs
and save lives.

Roy Eiguren, an attorney with Givens Pursley representing St. Al’s
Regional Medical Center, spoke in support of H 303. Idaho has had a
safety restraint law since 1988. The proposed law is designed to change
behavior and responds well to Idaho’s individual/independent behavior.
Members of St. Al’s trauma center ask its administration to work for a
more strict safety restraint law. The I-Belt coalition, who supports this
legislation, has over 40 members and has worked on legislation

the past four years. He urged the committee to support H 303.

Dave Carlson, representing the American Automobile Association (AAA)
with over 65,000 members in southwest Idaho, spoke in support of H 303.
In Idaho only 63% of people riding in motor vehicles are belted. In the
last five years 1,146 people have been killed in vehicle crashes in Idaho,
841 of those were not wearing safety restraints. The “personal choice”
issue creates a $215 million price tag to insurers and taxpayers. About
74 cents of every dollar spent on traffic crashes in Idaho is picked up by
taxpayers. $2.5 million was paid out of the state catastrophic and indigent
funds in 2002. St. Al’s indicated it costs taxpayers $3.2 million to cover
their costs for care of trauma patients. The issue is not just about belting
children. Almost 70% of those who died in crashes were not wearing
safety restraints. His organization would prefer more stringent legislation
but this bill does close a loophole because it would require that all
children must be buckled up. The fine of $10 is still one of the lowest in
the nation. He feels that law enforcement officers will continue to be in a
difficult position; however, this bill will save lives.

Robert Seehusen, CEO for the Idaho Medical Association (IMA)
representing over 1,900 of the 2,100 doctors in Idaho, indicated support
for H 303. The medical community sees the results when people do not
buckle up. This legislation is a small step but a big step in the right
direction. The IMA requested support for H 303.

Melissa Lokken, a high school student from Eagle High School interning
at the Idaho Education Association, spoke in support of H 303. She is a
member of the Governor’s Coordinating Council for Families and
Children. In doing research, she found that vehicle crashes are the
number one killer of children in Idaho; 60% of children who die are
unrestrained. Her main reason for supporting the bill is for the safety of
children. Currently, children over four years old are not required to wear a
safety restraint. Some people say they should be able to choose whether
or not to buckle up but their decisions do affect others — unrestrained
people riding in rear seats become projectiles in car crashes. Not
buckling up does affect others because often taxpayers have to pay the
bill. By passing H 303, it will give drivers under 18 years of age leverage
with their peers to insist that passengers must buckle up because it is the
law.

Phyllis Smith, a private individual whose son was killed in an automobile
accident almost two years ago, urged the committee to support H 303.
She spent the proceeds of her son’s insurance money trying to educate
people about the importance of buckling up. She came to the conclusion
that education is a short-term solution. Education, alone, does not do the
job. She feels there must be a three-pronged effort: a good law,
enforcement of laws by law enforcement, and education. She shared
statistics from various Idaho counties which indicate about 70% of
unrestrained people die in car crashes. Ms. Smith asked the Committee
to support H 303.

EXCUSED:

Speaker Newcomb requested that HJM 5 be pulled from the agenda.

No oral testimony was given. After some Committee discussion, a motion
was made to hold HJM 5. Chairman Ingram invited those who came
prepared to testify to submit written testimony which will be held in the
Senate Transportation Committee office.

Bob Martin, Administrator for the Division of Aeronautics, Idaho
Transportation Department, introduced House Joint Memorial 10 urging
the United States Congress to preserve access to backcountry airstrips by
introducing into the current 108^th Congress Senate Bill 681, the
Backcountry Landing Strip Access Act, from the 107^th Congress and its
companion legislation, House Resolution1363. Further, HJM 10 would
ensure the greatest amount of public access to public recreation lands
and would urge Congress to designate as “public use” all non-military
aircraft landing areas located on federally-managed lands.

The Central Idaho Wilderness Act of 1980, the Frank Church River of No
Return Wilderness area, had provisions that protect some airstrips. It
does indicate that the federal government cannot close backcountry
airstrips without Idaho’s approval. Some airstrips are no longer shown on
maps which is not a problem for most Idaho pilots. However, pilots from
out of state do have problems identifying some airstrips that have been
left off maps limiting access to the those airstrips.

Senator Bailey reiterated that last year’s federal Senate Bill 681 was put
away and this would revive that bill in the 108^th Congress. The federal
government is trying to limit access to some airstrips and this bill would
allow for the greatest amount of public access to public recreation lands.

Representative Wood confirmed there is a need for Idaho to keep
airstrips open for handicap activities and for emergencies.

EXCUSED:

Representative Wood, Chairman of the House Transportation Committee
introduced H 395 which would establish a new, 10-year pilot project on a
small number of state highways for the use of specially configured 129,000
pound gross axle weight trucks, requires ITD permits to operate on
designated routes within Idaho, provides authority to local highway districts
to allow roads in their jurisdictions to be included in the pilot program if the
governing board chooses to do so, and requires the ITD to report to the
Legislature on the impacts of the 129,000 trucks on safety, bridges and
highways every three years during the pilot project.

The bill is a remake of the 1998 pilot project. There was not enough
participation in that project because there were neither enough routes nor
financial incentives for people in the trucking industry to put added axles
under their trucks to make the 129,000 pound loads. Therefore, not
enough data was collected to determine the accuracy of advice given that
Idaho’s roads could handle heavier weights.

Representative Bruce Newcomb, Speaker of the House and co-sponsor
of the bill, testified that H 395 is different from H 282; north and east Idaho
would be held harmless. This bill is strictly about a pilot program in
southern Idaho to determine under Bridge Formula B whether Idaho’s
highways are sufficient to handle 129,000 pound loads. In southern Idaho
many commodity groups are struggling to survive, such as Monsanto
(phosphate) and Amalgamated Sugar which is co-op owned (sugarbeets).
Many milk trucks are leaving Idaho only two-thirds full to stay within weight
limits; they should be able to leave full. The length of trucks will not be
any longer. One of the reasons for a 10-year pilot program is to align with
10-year depreciation schedules in the IRS code. (It could have been either
7 or 10 years, the sponsors chose 10 years.) The blue roads on the map
provided by the Idaho Transportation Department (ITD) are the pilot project
routes. (A copy of the map is held in the Senate Transportation Committee
office.) ITD will monitor collected data to determine if there is damage to
the roads. They have the authority to change routes or terminate the pilot
project. Pilot project routes on nonstate and noninter-state highways shall
be determined by the local highway agency for those roads under its
jurisdiction. Therefore, people seeking permits are subject to local
jurisdictions because they monitor what is happening to their roads and
bridges.

In 1991 under ISTEA, the federal government froze truck weights; Idaho
was frozen at 105,500 pounds. Several surrounding states were at
129,000 pounds (Utah, Nevada, and Montana). None of those states have
chosen to reduce their weights so Rep. Newcomb feels this is a
reasonable proposal for Idaho to increase to the 129,000 pound level.
Idaho is a long way from major population centers in the United States and
one of the biggest costs is transportation. Idaho needs to provide the
ability for local people/businesses to have the economies of scale to get
products to market.

Both Speaker Newcomb and Chairman Ingram, co-sponsors of H 395,
indicated no interest in coming back in future years requesting expanded
routes. Both agreed that roads in north Idaho, because of hills and
corners, are not conducive to carrying heavier weight trucks.

Senator Geddes asked for some detail about what was accomplished from
the last study project in 1998. Speaker Newcomb said the routes
established were not ones used very often and with the shortened time (3
years) people did not want to make the investment. Because of those
issues there was not sufficient data to determine if Idaho’s roads could
handle heavier weight trucks.

Senator Geddes expressed concern about the $27 million court settlement
from a few years ago because Idaho had established a process that
bifurcated the state and allowed commodity shippers a different set of
conditions than the rest of the interstate haulers. Does H 395 do that
again by making this pilot project available to southern Idaho but
eliminating the benefits to northern Idaho? Speaker Newcomb replied that
intent language in Section 3 of H 395 indicates that it is a pilot project and
not policy for the entire state; it is a study and it is subject to interruption.
ITD must report results of its monitoring and evaluation of all important
impacts including safety, bridges and pavement in 2007, 2010 and 2013
unless extended or repealed by legislative action.

Mo Detmar, Idaho Transportation Department, indicated that only 8 or 10
permits were issued during the 1998 pilot project.

Clay Larkin, Mayor of Post Falls, spoke in opposition to H 395. He
worked 30 years in a grocery distribution center and observed that as
trailer weights grew larger and trailer lengths grew longer it created a
safety factor. He serves on the Board of Directors of the Association of
Idaho Cities, represents the Kootenai Metropolitan Planning Association,

North Idaho Mayors Coalition, and Idahoans for Safe Roads. The
sponsors have not asked the southeast metropolitan planning
organizations (MPO’s) or the Boise COMPASS group for their input. The
mission of these groups goes to the heart of H 395: transportation and
planning. He referred to a federal primer book authored by several
agencies on transportation/planning and indicated when filling out MPO
forms safety, freight and inspections must be part of a planned
transportation improvement program. The input and advice of these
agencies must be considered when creating legislation that would put
heavier and/or longer trucks on Idaho roads. Neither the Bannock or
Bonneville MPO’s have been contacted on H 395. The North Idaho
Mayors Coalition and the Kootenai MPO are opposed to H 395.
COMPASS, the Boise/Ada County group, remains neutral pending more
information. The Association of Idaho Cities opposes H 395. If, in fact, the
number of trucks on the road was reduced by one-third, the lost revenue to
ITD, the highway programs, the economic local loss is not worth it. He
urged the Committee not to pass the bill until they receive all the input
needed.

Brent Olmstead, Executive Director of Milk Producers of Idaho, spoke in
support of H 395. He said dairies in the southern most parts of Idaho
transport milk into Utah. Idaho milk transporters compete at an 18%
disadvantage due to transportation costs because of truck weights. Utah
allows 129,000 pound trucks but Idaho can only carry 105,500 pounds.
Currently, milk prices are at their lowest in 40 years causing a lot of
hardship on dairies. This bill will help the dairy industry. When asked
about a U.S. DOT Comprehensive Truck Size and Weight Study (Volume
3, August, 2000, page 8-5) that claims if weights increase, the fatality
accident rate will increase at least 11% higher than today’s single tractor
trailers, Senator Geddes asked if economics are more important than
safety? Mr. Olmstead replies that truck weights are never more important
than safety. He was not familiar with the study referred to but said he was
aware of other studies that concluded the fatality rate is not impacted by
heavier trucks. Many companies have extensive training and safety
programs and his industry has a very safe record.

Linda Iverson, representing Idaho North Pacific Railroad headquartered in
Emmett, spoke in opposition to H 395. Her company has suffered
financially from the closing of Boise Cascade mills in her area. North
Pacific is rebounding with the purchase of Boise and Wilder branches and
they continue to run the tour train on the Cascade branch. They look at
every opportunity to build rail traffic, including some in Payette and Gem
counties. Her company handled over 11,800 rail cars through Treasure
Valley in 2002. H 395 bill will have an impact on the financial future of her
company and its ability to maintain branch lines.

.

Pat Keim, representing Burlington Northern Santa Fe, spoke in opposition
to S 395 because it is a resurrection of H 282 from earlier this session and
is similar to other unsuccessful bills in earlier years which attempted to
return to the old days of racheting up truck weight rates on the highways
one state versus another, and in H 395, one region of Idaho versus
another. This bill seems to make agriculture producers in southern Idaho
more competitive against their counterparts in northern Idaho. The 10-
year pilot project appears to be an effort to make the routes permanent.
Some think with H 395 truckers will operate fewer trucks by carrying more
weight per truck; he believes the real goal is actually more trucks. As
trucks become more competitive against the rail industry, traffic volume is
taken from the rail industry and put on trucks. There are more trucks
operating on highways today than 20 years ago and they carry more
weight. Regarding the relationship of weight and highway costs (referring
to Transportation Research Board Study No. 267), the damage costs to
highways due to heavier trucks are not fully recovered in the charges paid
by those trucks; the costs are paid by the average taxpayer and other
users of the highways. His company operates in northern Idaho but he
has a concern because with H 395 it will make southern Idaho shippers
more competitive with northern Idaho shippers and it impacts interstate
traffic. As the truck becomes more competitive, it will move more traffic
from rail to the highways. The rail industry operates on their own rights-of-way paid for by the rail industry whereas highways are operated by the
state and paid for by taxpayers.

Regarding the weight of trucks on highways, Mr. Keim referred to an article
discussing the bridge crisis in Oregon where weakened/cracked bridges
continue to deteriorate at an alarming rate. It is estimated that it will cost
about $2 billion to correct the problem and Oregon only allows 105,500
pound trucks. Regarding the “footprint” of trucks with more axles; i.e., the
more axles under a truck, the more the weight is spread out, so less
damage to roadways occurs, the fact of the matter is when a truck hits its
brakes, it does not matter if there are six axles or ten axles, trying to stop
129,000 pounds (stopping power) tears up pavement. A bridge engineer
told him that it is not the amount of weight spread over a certain number of
axles but the amount of weight bearing down when it gets to the center of
the span that causes bridge damage.

Paul Sudmeier, President of the Idaho Trucking Association (Idaho Motor
Transport), spoke in support of H 395. The trucking association was
incorporated in 1934, has been representing the trucking industry for
almost 70 years, and has a billion dollar payroll in Idaho. His association
handles over 82% of finished freight by value in Idaho and has been
gaining market share and revenue because the economy has been
growing. His industry does a good job and delivers product safely. It is the
mode of choice for important commodity businesses in Idaho. He received
a letter in March of 2003 from Great West Casualty Company, one of the
largest truck insurers in the United States, confirming that they do not
assign an additional premium or rate to LCV’s at any gross weight because
data relative to weight or combination length has not shown these units to
be any less safe or more prone to loss. If there was any increased risk,
insurance companies would reflect that in their rates. He also noted that
states that have authorized gross weights to 129,000 pounds have never
rolled them back. Transportation efficiencies keep healthy economies.

Charlie Clark, representing Union Pacific Railroad, spoke in opposition to
H 395. He discussed the history of proposed legislation in Idaho to
increase trucks weights. Within 18 months after the first pilot program
began in 1998, new routes appeared. Over the years as roads got better,
the branch lines failed. He feels the so-called “10-year pilot project” would
be permanent and that, in time if H 395 passes, legislators will be asked to
consider making other routes available to 129,000 pound trucks. He also
discussed the interstate system regarding the proposed CanaMex Trade
Corridor (truck route) which would run from Alberta, Canada south through
the western United States to California on to Mexico. Canadians would
like to transport large loads of lumber, grain, fertilizer, potatoes, etc. to
Mexico and, in turn, Mexico would like to haul fruits, vegetables, etc. north.
It is why H 395 is so important because it coincides with the
reauthorization of the federal highway bill where there is an attempt to lift
the cap off the interstate routes so 129,000 pound trucks can run on the
CanaMex Corridor and other interstate routes (corridors) throughout the
United States. H 395 is a bill that benefits very few at the expense of
many.

Jerry Deckard, Capitol West representing the Associated General
Contractors (AGC) and the Potato Growers of Idaho, endorsed H 395. It
would provide a better opportunity and an efficient way to get product to
market. The AGC hauls heavy loads and would like not to have to buy a
permit with each load.

Jim Jones, an attorney , was asked by Union Pacific Railroad to give a
legal analysis of H 395. He concluded the following: 1) the legislation is
specifically intended to benefit intrastate commerce, making it subject to
attack on Commerce Clause and Equal Protection grounds, 2) the
legislation favors intrastate commerce over interstate commerce, much like
the two-tiered tax scheme that was held to be violative of the Commerce
Clause in the American Trucking Association case, 3) the legislation is
subject to an Equal Protection challenge by truckers who are arbitrarily
excluded, and 4) granting local agencies unrestricted authority to establish
pilot routes on non-state and non-interstate roads may constitute an
impermissible delegation of power. A copy of his testimony is held in the
Senate Transportation Committee office.

Roy Eiguren, an attorney with Givens Pursley representing Amalgamated
Sugar, spoke in support of H 395. Amalgamated has operated in Idaho
since the 1930’s and is owned by over 1,100 sugarbeet growers in
southern Idaho and eastern Oregon. The transportation of sugarbeets to
the owner’s factories and of processed sugar from those factories to
market is Amalgamated’s second largest cost of production. The company
has focused on being able to use 129,000 pound trucks as a more efficient
and less costly way to transport sugarbeets from the company’s beet
receiving stations to three sugar factories in southern Idaho. To
Amalgamated, the issue is not trains versus trucks, it is an issue of finding
the most cost-effective and competitive way to transport raw and finished
products. The company uses both rail and truck transport for the
movement of beets. They move most raw product by truck and processed
sugar by rail. As railroads terminated service, the company had no choice
but to begin transporting product by truck.

Amalgamated supports H 395 for the following two reasons. 1) The
previous pilot project was designed to obtain information to determine what
the impact of heavier trucks would be on safety, roadways and bridges.
That issue was not determined by the previous pilot project because the
study period was too short, the routes selected were not ones used by
many truckers, and it was not economically feasible for transporters to
configure 129,000 pound rigs for only 3 years. Amalgamated strongly
supports H 395 which will allow for a long enough time period (10 years) to
gather the needed information. The company plans to actively participate
in the project. 2) The other reason for supporting H 395 is one of
economics. Amalgamated can use two of the routes contained in this bill
which should reduce total truck trips and save about $90,000 annually on
one route and save another $125,000 on the other route.

This bill is the result of a lengthy process of discussion and compromise
between a large number of interested organizations and legislators. It
reflects the right choice to be made which should provide actual data on
the use of trucks while, at the same time, providing critically needed and
substantial cost savings to Idaho’s distressed agricultural industry.

William (Bill) Rode, is a professional driver and small business owner
who has been involved in the trucking industry for over 40 years. He is a
Board member of the Owner-Operator Independent Drivers Association
and his organization opposes any change in the size and weight of
commercial trucks since larger and heavier vehicles are more challenging
to operate and the extra risks seem to compromise safety. He said he
was able to pay for his $100,000 tractor and trailer in six years. He feels
that it would not cost more than $25,000 to reconfigure the trucks to
accommodate the heavier weights

Mr. Rode feels it will be difficult to enforce having the heavier trucks stay
on designated highways and believes the annual $50 permit charge per
truck will not cover the cost of road maintenance. He discussed some
studies regarding larger truck sizes and weights that concluded there was
no decrease in the number of trucks on highways and truck crash and
fatality rates did not go down. In one Australian study, carriers had to buy
new trailers and bigger trucks to remain competitive, then industry-wide
competition occurred resulting in lower freight rates. He is concerned the
same thing could happen in Idaho.

Mark Duffin, Executive Director of the Idaho Sugarbeet Growers
Association, spoke in support of H 395. The efficiency issue is very
important. Six years ago sugarbeet growers formed a cooperative and
purchased the sugar company. It has been a struggle for them and they
are trying to make the company more efficient and direct the benefits to the
farm families. They grow about 5 million tons of sugarbeets in southern
Idaho annually which are hauled from farms to receiving stations to
factories. By increasing the truck weight limits to 129,000 pounds it would
significantly reduce the number of hauls it takes to get the beets to the
factory. The co-op’s first concern was the effect on roads and safety
because their families use the highways daily. They do not think safety is
a problem. With this pilot program they will be able to get the information
needed regarding the impact of heavier trucks on roads.

Most of the cooperative members own their own trucks that take
sugarbeets from the farm to receiving stations but other companies are
hired to deliver the beets to the factories.

Dave Carlson, the Director of Public and Government Affairs for the
American Automobile Association (AAA), spoke in opposition to H 395. He
was speaking not only for his 65,000 members in southern Idaho but for an
additional 30,000 members in north Idaho. He discussed the issue from
another perspective: Idaho’s motorists. In a survey mailed to 900 AAA
Idaho members in 1999, 88% opposed allowing heavier trucks on Idaho
roads. To counter one of the claims made that lighter footprints cause
equal or lesser damage on the roads, he referred to a 2001 study by
Senate Transportation Research in Austin that said while additional axles
may mitigate pavement damage, the stress to bridges depends more on
the truck’s total load than the number of axles because increases to truck
weight limits can create large costs for bridges even when they encourage
additional axles. This same study also indicated that states that increase
truck size and weight limits could attract more industry which would, in
turn, place more freight on highways. Also, when truck rates become
cheaper, producers may reduce their inventories and consolidate their
plants and warehouses. Competition is not finite and competition is not a
one-way street going out of Idaho.

He related that Oregon bridges were designed to last 75 to 90 years and
are now failing at 50 years leading to numerous bridge closures, detours,
and lower load limits. Some of the older bridges were built for 72,000
pounds. There are estimates that about 1,000 bridges might have to be
replaced in the next seven years. According to the Oregon Department of
Transportation, of the 555 state-owned bridges in Oregon, 487 are cracked
and will cost billions of dollars to fix.

Taking February, 2000 information from ITD’s website examining Idaho’s
Ports of Entry, 13% of trucks checked were overweight. This raises some
serious questions: Is there effective enforcement in Idaho? Is there any
deterrent for operating overweight? Are the regulations working?

He also contends that there are some serious legal questions (see
previous testimony from Jim Jones). He feels there is a definite correlation
between bigger trucks and safety. This bill would put trucks in harm’s way
of Idaho’s motorists, those who pay taxes in the state. Seventy-five percent
of truck fatalities occur on rural, non-interstate roads­the kind shown on
the map as blue routes which would be used in this pilot project. There are
huge financial profitability issues for some shippers who would use one
driver to do the work of two. Also, there is no guarantee that people will
see lower prices. A special interest group stands to gain if this legislation
is passed. Please consider the safety and cost consequences of
legislation that will affect every Idahoan. AAA would like Idaho to
implement several of the recommendations that have come out of federal
studies the past few years. There are ways to enhance the deficiencies in
Idaho’s roads, there are ways to toughen enforcement, and there are ways
to protect highway investments without a single quick-fix. He urged the
Committee to oppose H 395.

Stuart Davis, Executive Director, Idaho Association of Highway Districts
(IAHD), said his organization will not oppose H 395 because the sponsors
put protections in the bill for local highway jurisdictions. Those who want
permits must go to local jurisdictions to obtain the permits meaning they
will have to go to cities, counties and highway districts. He would like to
come back next year and streamline the process so that it could be a “one-stop shop” for those seeking permits so they do not have to go to each
jurisdiction.

Steve Hadley, a Commissioner for Bannock County, was opposed to

H 395. He believes that 129,000 pound trucks will get off pilot routes for
fuel and he questions who will fix those secondary routes.

Dennis Tanikuni, representing the Farm Bureau, indicated his support for
H 395. A copy of a Farm Bureau letter is held in the Senate
Transportation office.

George Millward, Director of the United Transportation Union (all of their
members work for Union Pacific Railroad), spoke in opposition to

H 395 because it would be a burden to the railroad and jeopardize jobs.
He discussed how the railroad industry was once the major transporter of
sugarbeets. In eastern Idaho in the early 1980’s they hauled 1,000 cars
per day. Today they haul only 100 cars per day in that area during the
sugarbeet season. This bill it will affect jobs. He said the places where he
starts heavy commodity trains literally tear up the track with the torque
from the locomotive and the rail has to be changed frequently. Sometimes
when he tries to stop the train at the bottom of a hill he can have up to 500
brakes trying to stop it and it damages the track. Heavy trucks cause
damage to roads and the braking system will be the same way; it will take
a lot more distance to stop and there are safety issues involved. He also
discussed safety issues in crossing some Idaho bridges. He feels those in
favor of H395 will be back seeking additional routes in the next year or two.
He urged the Committee to oppose the bill.

Evan Hayes, a farmer from Soda Springs, a member of the Idaho Grain
Producers Association and newly elected vice president of the National
Barley Growers Association, spoke in support of H 395. Idaho is in
economic trouble currently; Idaho’s farmers and industrial partners are in
the same situation. Everything is being done to insure the continued flow
of commodities to customers as economical as possible. He just put fuel
in a truck yesterday and figured he pays 12.4 cents per mile in taxes.
Farmers are not truckers and do not make their living with trucks. Trucks
are machines that either move product to market or to the railroad so they
can move grain to market. Idaho has worked hard to provide incentives to
industries to expand their present operations or to move new business to
Idaho to strengthen its economy. The state is also working with
communities to enhance the construction of ethanol plants in various Idaho
locations. All of this economic development requires a competitive truck
transportation environment. Passage of H 395 will greatly encourage the
development of such industry therefore building up the economic
environment for Idahoans.

Bill Aller, a road supervisor for Bannock County, spoke in opposition to

H 395. Load stress can be seen at ports of entry as trucks re-enter the
highway; the trucks are also difficult on uphill grades. Heavy loads will
accelerate maintenance on the road system. Since these heavier weight
trucks cannot use the interstate highway system, they will put a large
burden on local roads and jurisdictions that maintain the routes used by
these vehicles. Bannock County would like to be a part of the permitting
process because local jurisdictions know the roads best.

Twain Hayden, a farmer and member of the Idaho Grain Producers
Association, spoke in support of H 395. If he were able to use heavier
weight trucks to haul his product, he could make 18 fewer trips which
would be a 22% reduction in truck use and a 19% reduction in his shipping
costs. He has operated both 80,000 pound and 105,500 pound trucks,
and the one that stops the best is the truck with more brakes and more
axles. Safety and economics say H 395 is a move toward more efficiency.

Larry Ghan, the Bannock County Clerk, spoke in opposition of H 395
because heavier weight trucks will end up on secondary roads and
maintenance costs will impact his county. Counties only have two ways to
support their roads: through property taxes and motor fuel taxes. Currently
there is no other revenue source in Bannock County that can be used for
additional maintenance costs ­ they cannot afford H 395.

Jeff Ramage, a locomotive engineer for Union Pacific Railroad in Nampa,
spoke in opposition to H 395. He mentioned road damage to Highway 45
in Nampa caused by sugarbeet trucks. Wear and tear on the roads will
increase if heavier weight trucks are allowed. Road beds are not made to
handle 129,000 pound trucks. It was explained to him that the road
surface is usually damaged by the road bed. Stress on the roads fractures
the ground causing erosion and, eventually, potholes. He referred to
comments made by Mayor Garret Nancolas of Caldwell who said that both
highway districts and cities would be responsible for increased
maintenance on roads caused by trucks with excessive loads. If H 395
passes, it will help subsidize the trucking industry.

Steve Brumbaugh, representing both the Brotherhood of Local Engineers
(BLE) in Nampa and locomotive engineers with Eastern Idaho Railroad in
Twin Falls, spoke against H 395. He also mentioned damage to Highway
45 in Nampa caused by trucks. These trucks will still have the same
number of drive axles so there will be more torque and pressure applied to
the road surface. He expressed concern about the safety issue. He thinks
the information being requested from this pilot project could be obtained
from those states that already allow the 129,000 pound trucks on their
highways.

Woody Richards, an attorney representing the Associated Loggers
Exchange, spoke in opposition to H 395. Loggers oppose the legislation
for all the reasons stated previously. There is no promise that can’t be
made; there is no guarantee that can’t be made that can keep the routes
from changing in the future. Legislators and legislators’ intentions change
over time. Courts will make rulings that say some statutes are not
constitutional.

Bob Wells, representing the Association of Logging Contractors spoke in
opposition to H 395. There is a $9 billion backlog of maintenance on
roads and bridges in Idaho and H 395 will exacerbate that situation. This
bill will cause more damage to roads and bridges and Idaho does not have
the money for additional repairs. H 395 will bifurcate Idaho because the
legislation treats people in Idaho differently­northern Idaho versus
southern Idaho.

Steve Thomas, an attorney representing Burlington Northern Santa Fe,
spoke in opposition to H 395. The last sentence of the Statement of
Purpose for H 395 states, “The Idaho Transportation Department has
reviewed and analyzed the selected highways in this bill and have
determined that the roadways and bridges are capable of being utilized by
129,000 pound trucks.” Speaker Newcomb said the purpose of this bill is
to find out whether our highways are adequate to handle those loads. So
Mr. Thomas feels the Statement of Purpose is inconsistent with comments
by key speakers including the sponsor of the bill. He also referred to
comments by Mr. Sudmeier of the trucking association that they have 82%
of the market in finished freight and they are “increasing their market
share.” Their market share is substantial, their trend line is good and they
are increasing market share. This bill will help the trucking industry move
product off rails and onto highways. Mr. Sudmeier said that there was no
state which has authorized 129,000 pound trucks that “ever rolled them
back.” That is Mr. Thomas’ point ­ once you’ve got it, you’ve got it. If this
gets passed, it will be very difficult to undo.

John Watts, a lobbyist representing Eastern Idaho Railroad, spoke in
opposition to H 395. Eastern Idaho Railroad is the largest shortline
railroad in southern Idaho with about 270 mainline miles. In his company’s
advocacy for transportation public policy, they seek equity and fairness.
Trucks travel on roads for which they pay a portion but trains pay for the
entire cost of maintenance plus property tax for the road beds and tracks.
Neither Idaho nor county governments provide any portion of the cost to
maintain the rail routes. H 395 is not fair or equitable and places his
company’s survival at risk. If Idaho allows larger weight trucks to drive to
out-of-state destinations on smaller state roads bypassing his company’s
rails and tracks, they will lose customers and will not be able to make
operational margins required to stay in business. This year his business
will move abut 39,000 cars which is equivalent to 117,000 trucks. If grower
abandonment occurs, there will be more trucks on the highways in
southern Idaho. They employ 60 Idahoans and serve 21 rural Idaho
communities. To risk losing these jobs during a decade-long pilot project,
at a time when Idaho’s economy and government struggles to make ends
meet, is too risky. Eastern Idaho Railroad urges the Committee to vote
against H 395 allowing his company to remain a competitive and viable
transportation alternative to Idaho’s small, isolated rural communities.

A copy of a letter from Ed McKechnie, Vice President of Strategic
Development for Eastern Idaho Railroad, is held in the Senate
Transportation Committee office.

AYES: Senators Ingram, Brandt, Little, Bailey, McWilliams

NAYS: Senators Keough, Geddes, Marley, Calabretta

On a 5 to 4 vote, H 395 passed and will be sent to the floor with a Do
Pass recommendation.