EXCUSED:

Mr. Detmar then presented RS13491. This legislation amends Sec. 49-439, Idaho Code, to allow for the transfer of the ITD Motor Carrier
Services Audit Unit to the State Tax Commission in the FY2005. The
audit unit is currently being transferred using a Memorandum of
Understanding (MOU). Mr. Detmar stated that this would reduce the
number of audits required by ITD from two to one. It would also transfer 4
auditors and one half time clerical position to the State Tax Commission.
He said this reorganization was an efficiency measure to improve audits
with motor carriers.

A question was asked regarding the four year audit restriction being
deleted. Mr. Detmar stated that it is now under the State Tax rules. He
also said that all appeals will be handled by the tax commission. When
asked if four and one half people are enough to do the job, Mr. Detmar
said that the department had worked closely with the tax commission and
they have agreed that this number was sufficient.

Rep. Bauer seconded the motion to send RS13491 to print.

Motion passed unanimously.

There was concern voiced by the committee regarding how impartial a
independent hearing officer would be if chosen by the department. Mr.
Parry said that in a bid dispute the department is a neutral third party, and
any litigant would have the right to disqualify the hearing officer. There
was also concern that we would be adding a step rather than expediting
the process. Rep. Wood stated that it would only go to the courts if the
disgruntled contractor doesn’t like the decision.

Rep. Smith made a motion to send RS13490C1 to print. Rep. Cannon
seconded the motion.

Motion passed unanimously.

Mr. Spangler also noted that the SOP was incorrect and should say that
there would be an additional $20,000 motor fuel tax that will qualify for
refunds.

Questions were asked about six-wheel ATVs and motorcycles. Mr.
Spangler said this bill included three or more, and that motorcycles are
defined as recreational vehicles.

Motion passed unanimously.

EXCUSED:

Rep. Shepherd made a motion to accept the minutes from January 14,
2004, with the corrections from a letter received by Mr. Ted Spangler,
STC. (Letter attached).

Motion passed.

11-1301-0201 &

11-1302-0301

The temporary rule incorporates by reference a version of 39 CFR Parts
393 and 395 effective January 4, 2004, governing commercial vehicle
load securement and driver hours of service.

Capt. Johnston stated that the new Cargo Securement Rules had a
mandatory compliance as of January 1, 2004. He passed out a synopsis
of these rules (see attached). He also said that this list is not all inclusive
but an example. It was felt by the committee that they should have a
complete list to see what changes have been made. Capt. Johnston said
he would get a complete list to the Chairman. It was asked if these rules
just cover interstate and he said yes.

Capt Johnston said that they have been working hard with the industry to
let them know of the changes. Mr. Allen Frew, ITD, said that two officers
have been assigned to help train the port of entry people.

The committee had real concerns regarding the new Hours of Service
regulations. Specific concerns were: if the new hours included loading
time; how this applies to utility and emergency people; adequate rest
areas; eleven hours layovers may be too long; would this be an economic
hardship on some people. Capt. Johnston said that these new rules are
regulated by congress and needed for federal funding.

11-1301-0201 and 11-1301-1301.

Motion passed. Rep. McKague voted nay.

34-0105-0301

Motion passed unanimously.

Motion passed unanimously.

Rep. Roberts will carry the bill on the floor.

There were some questions about the safety of this and Rep. Roberts
said that the legislation makes it clear that the vehicle has to be safely
designed to travel the faster speeds. There was also a question about
the foot break and breaking system. Rep. Roberts said the old equipment
uses the foot breaks, but that the newer equipment has the breaking
system.

In answer to a question regarding tractors going fast with a driver with out
a license, Rep. Roberts said that there is a section of the Idaho Code that
specifically lists slow moving vehicles. This would just allow those
vehicles that are designed to travel at those speeds. Regarding a
question about interstate travel, Rep. Roberts said that vehicles have to
meet all requirements.

Motion passed unanimously.

Senate members: Chairman Ingram, Vice Chairman Keough,
Senators Geddes, Brandt, Bilbao(Little), Bailey, McWilliams and Marley.

EXCUSED:

Senator Calabretta

The goal of the meeting was communication among the states to
achieve uniformity for the transport industry. The panel provided
information on issues from a broad perspective. Each state was
given time to explain what is going on in their state. There were
also discussions on the latest technology such as mobile weight
testing.

Issues that could affect us are concerns over food bioterrorism and
rules concerning the agriculture exemption from hours of service.
The Federal Motor Carrier Safety Administration of the US
Department of Transportation issued a “guidance” stating that
determined poultry, livestock, and feed grains were not agriculture
commodities. Ag exemptions which gives each state the ability to
decide on the best use of these allowed exemptions within their
state are in jeopardy by being in the rules not law. Rep. Skippen
said she will be introducing a joint House Memorial asking the U.S.

Congress to support HR871 which will move the ag exemption hour
of service from rules to law. This will protect it from future easy
changes.

A question was asked if there had been an effort to regulate heavier
trucks on the interstate. Rep. Skippen said only in the context of
uniformity for the states.

TRAC (Terminal Rental Adjustment Clause) vehicle leasing is the
way commercial fleets of cars and trucks are leased throughout the
US. Typical TRAC lessees include state and local governments,
utility companies, Federal Express, Wendy’s Hamburgers, and
small and large businesses. What this legislation does is make it
clear that TRAC vehicle leases are true lease not sales, and this will
put and end to wasteful litigation about the issue. The bill would
clarify the law, keep the cost of TRAC vehicle leasing low, make the
law uniform and consistent throughout the US, and aid commerce
across the nation and Idaho in particular.

Mr. Huddleson said he received a letter from the National
Conference of Commissioner on Uniform State Laws and asked
that this be included in the record. (See attached) In Idaho TRAC
legislation is supported by Enterprise Leasing and by the Idaho
Trucking Association.

A question was asked about wrecked or salvaged vehicles and Mr.
Huddleson said that was outside this legislation. There was also a
question regarding some states which had adopted this legislation
making changes. Mr. Huddleson said that they had made small
changes but didn’t change the significant part of the legislation.

A vote was called for on the motion.

Passed unanimously.

39-0247-0301

039-0316-0301

039-0322-0301

Mr. Frew said that changes to expand the permit requirements for
vehicles are: the permit must be displayed on the passenger side
of the windshield, lower right had corner; vehicle-specific trip logs
must be submitted quarterly in a standard electronic format; and
failure to submit trip logs will result in the revocation of all pilot
project permits issued to the motor carrier.

A question was asked as to why this rule was changed. Mr. Frew
said that it is to streamline the process and make it simpler for law
enforcement and carriers. There was a question as to whether the
formula had changed on a truck and two trailers. Mr. Frew said he
would follow up and get back to the committee with an answer.

In answer to a question regarding how many were taking advantage
of the heavier truck weights, Mr. Frew said that they have issued 50
permits since this came into effect, but that some were not able to
go the maximum 129,000 pounds because of bridge weight
restrictions.

Regarding the electronic reports, Mr. Frew said they had developed
a form and web site available to all carriers enabling carriers to
report this way. He said the report could also be faxed.

39-0341-0201

39-0343-0301

39-0346-0301

39-0363-0201

A question was asked regarding what happens to memorials that
are now exceeding the new limits. Mr. Holland said that they are
addressing these issues and those that are a traffic hazard or in the
right-of-ways would be moved. Last year the department had two
removals, 13 inquiries about placement, and one application.

EXCUSED:

Motion approved.

Motion approved.

Motion carried.

Motion carried.

Motion carried.

Motion carried.

Motion carried.

Motion carried.

Motion carried.

Motion carried.

Rep. Smith will carry the bill on the floor.

Mr. Chuck Winder, presented a video put together by ITD. Mr. Winder
then gave a power point presentation. He stated that Idaho has the fifth
most efficient transportation system in the nation. Points made in the
presentations were:

• A strong transportation system strengthens Idaho; virtually every
  item in your home and at your job traveled into your life through
  Idaho’s transportation system.
• Transportation is driving Idaho’s economy; construction sustains
  14,000 private sector jobs, and Idaho’s aviation system supports
  26,000 jobs.
• Continuing commitment to US 95; $264 million invested in 74
  projects on US 95 during the last six years, and another $264
  million will be invested over the next five years.
• Connecting Idaho; with highway improvements, transit funding and
  airport projects.
• Serving motorists and truckers.
• Building bridges to Idaho’s past & promoting tourism.
• Reaching out & listening to customers.
• Improving practices and productivity; the construction program
  grew 62% over the last six years; workforce increased less than
  1%; Sixty-four efficiency measures were implemented saving $4.2
  million in one-time savings and another $1.6 million in on-going
  savings.
• Safety; ITD partners with law enforcement and health care
  professionals; promote seat belt use; and engineering
  improvements to make a daily difference.

Mr. Winder introduced Mr. Dave Ekern, ITD Director. Mr. Ekern said that
after 12 years Congress has said the interstate is complete.

Rep. Skippen said that Idaho is one of the few states in the nation that
does not have a north/south interstate so she has to disagree that the
Interstate is complete. Mr. Ekern stated that with the completion of the
Interstate system states can now set their own priorities. He said that
priority setting is a harder question as the systems that are in place today
force them to look seven or more years into the future.

Some of the challenges ahead will be:

• Moving toward zero deaths
• Transportation as a tool for growth
• Strengthening community involvement
• Providing statewide access to public transportation
• Improving Idaho’s airport system
• Innovative financing tools
• Delivering projects that are; an asset to the community;
  environmentally compatible, the best in engineering and
  construction excellence, and delivered on time and in budget.

Mr. Ekern said that car crash injuries are the number one cause of death
in those 35 and younger. When asked about moving to zero deaths, Mr.
Ekern stated that law enforcement, education, and finance all come into
play.

A question regarding bridges was asked. Mr. Ekern stated that local
system bridges is the next challenge and priorities will need to be set.
Rep. Wood stated that when LHTAC gives their presentation to the
committee they will give us more information.

There was a question about increased funding and how we will fair with
matching state money. Mr. Ekern said that they believe they have the
matching funds. There was also a question regarding our deteriorating
highways. Mr. Ekern said that the board and the department have made
it a priority to preserve and maintain the roads. He said this is not a large
dollar amount but it gets us miles. He also stated that this is one of the
most efficient departments in the country.

Mr. Ekern said the department will give its budget presentation on
Wednesday.

EXCUSED:

Motion approved.

When a bid is challenged they must file an action in District Court. At
times the Court is not able to hear and decide the case in a timely
manner. This proposed legislation will allow the Department to use the
Administrative Procedures Act to resolve a bid protest through the use of
hearing officers. Mr. Bywater stated the AGC agrees with this legislation.
In answer to a question regarding liability to the Department, Mr. Bywater
said that there would be no liability.

Motion passed unanimously.

Rep. Cuddy will carry the bill on the floor.

A discussion followed as to whether the language in this bill was specific
enough to allow for certain emergency organizations such as rural fire
departments to use these devices; and whether official duty, on line 21,
was explicit enough. It was felt that someone could be on official duty,
but they were not hurrying to an emergency and still might use this
device.

Rep. Kellogg withdrew her motion.

Rep. Smith made a motion to hold in time certain RS13692C1 until next
week.

Motion approved.

Replying to a question regarding the number of signatures it would take to
dissolve a highway district. Rep. Smith said it would take 10% plus one
signature for a hearing for dissolution.

Motion approved.

Mr. Scott Patrick, Idaho Division of Aeronautics, briefed the committee
about their mission statement and members. There are five board
members that consult with and advises ITD. He said that their group is
always working on improving and saving airports.

Mr. Grant Peterson, Chairman Idaho Automobile Dealers Advisory
Board, stated that they have eight members and assist and advise the
Idaho Transportation Department in the administration and enforcement
of Motor Vehicle Dealer and Salesman Licensing Act.

Mr. Jim Pline, Idaho Traffic Safety Commission, stated that the
commission was created in 1965 and has 15 commission members. They
review traffic safety problems, develop effective plans for additional local-state cooperative activities, recommend programs to receive federal

aid for highway safety, and recommend future traffic accident prevention
activities.

Mr. Jerry Whitehead, Motor Carrier Advisory Committee. This committee
was created to review proposed regulations, statutes and general issues
relating to motor carrier matters. There are 12 members.

General Jim Brooks, Vice Chairman Public Transportation Advisory
Council. This advisory council consists of six members; two members
appointed from each of the three Transportation Department Districts.
They advise the Idaho Transportation Department on issues and policies
regarding public transportation in Idaho.

Rep. Wood thanked everyone stating that these are all volunteers.

Mr. Charlie Rountree, ITD Administrator, briefed the committee
regarding the transportation bills being addressed at the Federal level.
He said the House and Senate have different bills and they will mean
different funding. He stated that the Department is now working on an
extension of the T-21 and until there is a transportation bill their hopes are
to get another extension on T-21.

Mr. Dave Ekern, ITD Director, presented the proposed 2005 budget
request. Mr. Ekern said that the total budget request is $425,910,300.
(See attached budget).

A number of questions were asked that Mr. Ekern needed time to
research, Rep. Wood requested that Mr. Ekern come to the committee
meeting on February 4.

EXCUSED:

recommendation.

Motion approved with 9 Yea and 4 Nay. Representatives Bedke, Roberts,
Smith and Wood voted Nay.

Motion carried.

Mr. Joe Haynes, LHTAC Administrator, Mr. Haynes said that they have
twelve council members: three mayors, three county commissioners,
three highway district commissioners and a representative from each of
their associations.

He noted three out of ten specific areas in the authority of the council. (1)
Develop uniform standards and procedures that may be recommended to
its member jurisdictions for the construction, maintenance, use, operation
and administration of local highways; (2) Make recommendations to the
Idaho Transportation Board for the distribution and prioritization of federal
funds for local highway projects; and (3) Assist the legislature by
providing research and data relating to transportation matters affecting
local highway jurisdictions within the state.

LHTAC gives regular reports to the Legislature and publications for Local
Highway Jurisdictions as well as joint publications. In upcoming
publications and studies, Mr. Haynes mentioned that they will do Weight
Restrictions Due to Frost Breakup manuals as this seems to be a
problem.

LHTAC provides project selection and administration for the following
Idaho Transportation Department programs:

• Local Federal-aid Incentive Program/STP Urban & Rural
• Local Rural Highway Investment Program
• Local Federal-aid Bridge Program
• Asset Management Project
• Intergovernmental Relations
• State of Idaho Agencies
• Federal Agencies

Mr. Haynes said that they have a joint bridge project with Nez Perce
County using Indian Reservation Roads funding and local funding for a
bridge over the Clearwater River. The total cost of the project is $8.5
million. A million in local federal aid will be spent on bridge study.
Chairman Wood stated that one million dollars seemed high for a study.
Mr. Haynes said that since it was federal dollars an impact study would be
done on such things as prime spawning ground; Indian artifacts;
historical sites, etc. This is why the cost is high and why projects are held
up.

Mr. Keely gave a broad overview of Local Highway Jurisdictions. He said
there are 288 local highway jurisdictions. There are 191 cities, and cities
have jurisdiction in all but one county. For roads outside the cities there
are 33 counties, 21 exclusively county, and 12 are county and highway
district administration. There are 64 highway districts in 23 counties with
11 exclusively highway district administration and 12 county and highway
district administration. Mr. Keely said that the local highway system is
made up of roads, bridges, and railroad crossings.

As of 2003 there were 33,250 LHJ miles; 2,283 bridges, and 1,275
railroad crossings. On bridges over 20 feet, 50 qualify for replacement
and 130 qualify for rehabilitation.

Mr. Keely gave the figures for revenue and expenditures using 2002
figures. He stated that disbursement of revenues was 99.2%, and he said
that everything that came in went back out with the holdover of funds for
construction and maintenance, which shows a prudent use of funds.

Some of the challenges for LHJ’s are:

• Revenue is unbalanced – not enough coming from user revenues
  (Regis, fuel, title)
• LHJ growing mileage in the last 10 years and population growth
  has increased the need to retrofit and/or expand existing highway
  facilities
• Dealing with rural to urban migration and generational turnover
  increased the need for trained personnel

Future challenges :

• Preserve the system
• Upgrade for safety and performance
• Training for local elected officials and the approximately 1,900 LHJ
  employees.

Mr. Keely talked about addressing needs and conditions in Idaho. The
number one recommendation from the 2003 Idaho Transportation
Resource Task Force was to come up with and approach the condition
and needs of local highway jurisdictions. Also during the task force
meetings a funding concept was developed, to basically increase title fees
and use the funds for cities, counties and highway districts. This proposal
has been supported by adoption of a resolution by the Association of
Idaho Cities, Idaho Association of Counties, and the Idaho Association of
Highway Districts. Mr. Keely introduced J.R. Van Tassel who has been
chosen to coordinate this project.

There were questions from the committee regarding how smaller highway
districts could obtain federal money through grants when they don’t have
a grant writer on staff. Chairman Wood said this is where LHTAC comes
in and that these groups should call LHTAC for information.

EXCUSED:

Motion approved.

Motion approved.

Motion approved.

There was a concern about a 10 or 12 year old driving the new ag
equipment at higher speeds on a state highway. Rep. Roberts said that
there is no age limit on driving farm equipment in the state of Idaho.

Motion approved.

Motion approved.

There were questions about what income will come into the department
this year and if this is about what the Governor estimated. Ms. Pipal said
that the anticipated revenue is less than the governor’s budget. She said
there was a cash balance carryover and this is always pulled forward. It
was also asked what the income is from fuel tax, car registration, etc., and
if they are climbing or declining. Also what the revenue from truck
registration will be.

Rep. Wood stated that the committee needs to know whether revenues
are going up or down or if they are steady so that the committee can
make informative decisions when a bill comes before them that will
increase fees. Ms. Pipal said that she would get a graph and other
information to the committee which will answer these questions.

Motion approved.

Rep. Roberts stated that he supports this motion.

It was asked if this means someone unlicensed could still drive ag
equipment if their speed was less than 25 mph. Rep. Smith said yes.

A vote was taken to send RS13919 for introduction with the amended
language.

Motion approved.

EXCUSED:

Motion approved.

Answering a question regarding new or used cars, Rep. Ridinger stated
that this effects all new titles. There was also concern about what the
money could be used for. Mr. Byron Keely, LHTAC, stated that these
fees cannot be used for equipment purchases or employee’s wages. All
funds would be used for purchase of material and/or contracting with
private business for work. Mr. Keely said that administrative costs are
kept low in the program this proposal is modeled after by spot-checking
on project work and financial records as opposed to complete review of
every project.

A roll call vote was called for on the motion to introduce RS13891 for
print. (See attached roll call sheet)

Motion approved with 12 voting Aye, 1 voting Nay, and 1 absent.

Mr. Dar Olberding, representing the Grain Producers Association, spoke
in favor of the bill.

Motion approved.

Rep. Martinez said that there are 25,000 to 50,000 aliens living in Idaho
and 15,000 to 30,000 undocumented workers. He named ten states
where undocumented aliens can get licenses.

In the bill, it states that individuals are required to register for selective
service and can fulfill such registration requirements in conjunction with
an application for a driver’s license. There was a question asking if these
people are subject to this requirement. Rep. Martinez said he didn’t know
but could find out the information.

Rep. Martinez used the word undocumented when speaking of the people
to which this bill would apply. It was asked if undocumented was the
same as illegal. Rep. Martinez responded by saying it means not
assigned a Social Security number.

A vote was taken on the substitute motion.

10 Aye, 4 Nay. (Representatives Douglas, McKague, Kellogg, and
Shepherd voted Nay)

Motion approved. RS13958 will be returned to sponsor.

There were a number of questions from the committee concerning
whether the county commissioners would be making a decision for an
election or if they would make the decision to dissolve the highway
district. Rep. Smith said that the county commissioners would not make
the decision to dissolve the highway district as an election would need to
be held.

Answering a question about a bill like this that was brought before the
committee last year, Rep. Smith said that the bill last year applied to every
highway district and this one would only apply to the Ada County Highway
District.

Motion approved (Chairman Wood and Rep. McKague voted Nay).

Motion approved.

Mr. Morris Detmar, ITD Division of Motor Vehicles, gave background on
how this study came about after Idaho’s weight/distance tax was found in
violation of Commerce Clause in the U.S. Constitution which ended in a
settlement to ATA in 2000. The legislative study comparing the old weight
distance/use fee truck registration system with the new registration
system created by the repeal of weight distance tax procedures in
October of 2001.

Mr. Detmar introduced Dr. Ken Casavant and Dr. Eric Jessup who gave
a power point presentation. Dr.’s Casavant and Jessup talked about:

• Revenue Neutrality became the accepted goal of participants in
  the settlement (negotiated at $41.3 million)
• Comparison of Old/New system on taxpayer (trucking firms) cost
  of operation
• Comparison of Old/New system on dollars per ton mile.
• The revenue generated by different weight vehicles.
• Level of the states current budget in regard to registration
  collection.

(See attached power point handout)

It was asked what was done with the windfall that was mentioned. Mr.
Detmar said that it was used primarily for state projects as well as
matching federal funds had to be met. He said that it did go into the
highway account.

There was some concern about the amount that is charged to trucks and
the amount that is charged for cars, and that maybe we need to look at
cars for more money.

Mr. Detmar was asked how many trucks have taken advantage of the
129,000 pounds weight. He said 50.

Senate: Chairman Ingram, Vice Chairman Keough, Senators Geddes,
Brandt, Little, Bailey, McWilliams, Marley, Calabretta

EXCUSED:

Senate: None

Sen. Ingram turned the gavel over to Chairman Wood. Chairman Wood
stated that there are two RS’s that need to be heard today as this is the last
day for our committee to hear them, and she asked the committee to
introduce for print RS13993 and RS14076.

Motion approved.

Motion approved.

Sen. Ingram introduced Roy Eiguren who is with the law firm of Givens
Pursley and represents Valley Ride. Mr. Eiguren gave background on the
Idaho Task Force on Public Transportation. He introduced the task force
members who were in the audience. He also talked about:

• The formation of the task force
• Their responsibilities
• Key definitions:
• public transportation
• client transportation

Gen. Jim Brooks, Vice Chairman ITD Advisory Council, gave a history of
Public Transportation Legislation in Idaho. Prior to 1991, there was little or
no state support for public transportation in Idaho and no state legislation
pertaining to public transportation. In 1991, an interim legislative committee
was formed to study public transportation. In the 1992 legislative session
the work of the interim committee resulted in HB779. It called for the
formation of the six-member Public Transportation Advisory Council. In
1994, legislation was passed which allowed for the creation of regional
public transportation authorities (RPTAs). Today there are two RPTAs in
Idaho, one in Bonneville County and one in Ada and Canyon counties.

Summary Points:

• Idaho is one of seven states that receive no state funds for public
  transportation.
• The enabling legislation that allowed for the creation of regional
  transportation agencies did not include a funding mechanism.
• Three efforts to secure a state-funding source for public
  transportation have been unsuccessful.
• Three efforts to pass enabling legislation to allow for a dedicated
  funding source for public transportation have been unsuccessful.
• During the 1990s, at least 20 states adopted new laws authorizing
  local option transportation taxes.
• 22 states have some local option vehicle taxes earmarked for public
  transportation related purposes.
• 33 states have authorized local option tax for public transportation
  purposes.

In Idaho (statewide) there are approximately 56 general public transportation
providers ­ 10 public, 34 private for profit and 12 private non-profit.

There are six sources for funding for public transportation in Idaho:

• Federal Transit Administration
• Medicaid
• Other
• Idaho Department of Transportation
• Idaho Department of Education
• Local Funds

Funding options considered by the Idaho Task Force on Public
Transportation were:

• Employment tax
• Gasoline tax
• Impact fees
• Local sales taxes
• Local excise taxes on tobacco, beer and wine
• Personal income tax
• Personal property tax on vehicles
• Real property taxes
• Title transfer fees
• Vehicle registration fees

Summary of the prevailing comments made at focus group meetings:

• There needs to be better education of services already provided.
• Incentives must be provided for people to use public transportation.
• There is solid support for public transportation.
• There is support for local funding option for public transportation.
• There are opportunities for better utilization of existing transportation
  systems and services.
• Support for a sales tax increase earmarked for public transportation
  was mixed. Support was stronger for a vehicle property tax.

Ms. Kelli Fairless, Valley Ride; Mr. Ron Binggeli, Executive Director
Pocatello Regional Transit; Mr. Terry Crawford, Transit Manager
Ketchum/Sun Valley Transit Authority; Mr. Joe Herring, Executive Director,
Region IV Development Agency; Mr. Steve Purvis, City of Boise, all spoke
on Public Transportation services and needs.

A full report Idaho Task Force on Public Transportation Report to the State
Legislature, February 2004, is available in the House Transportation and
Defense Committee office and the Legislative Library.

EXCUSED:

Motion approved.

Motion approved.

Motion approved.

Motion approved.

A question was asked if there will be any trucks that will be allowed to
take the tax credits. Rep. Ridinger said not when they are idling by the
definition of idle in this bill. It was asked how the audits are performed.
Mr. Dan Johns, State Tax Commission, stated that they would get credit
for Power Take Off units (PTO) and file on separate forms. He said that
there are national guide lines to follow.

The motion on the floor is to send H684 to the floor with a do pass
recommendation.

Motion approved.

EXCUSED:

Motion approved.

Mr. Juengling said there are two types of transportation; Public
Transportation and Client Transportation. Public transportation services
are open and available to general public; anyone may ride and usually
there is a standard fare paid; and Client Transportation is arranged
transportation for clients of a specific health and human service or
educational program where an agency pays for transportation services.
Criteria, regulations, and restrictions typically apply.

Mr. Larry Falkner, IWG Vice Chair, said there are three IWG initiatives;
Pocatello Regional Transit (Four-County Regional Demonstration
Project); Magic Valley Initiative; and North Central Idaho Rural Access.

Mr. Falkner mentioned that they are developing a pilot project in North
Central Idaho using school buses. This would allow use of the school
buses year round and employment year round for the drivers. A question
was asked if Idaho Code would allow this. Mr. Falkner said that they have
ITD and the Attorney General’s office looking into this.

There was also some concern about the wear and tear on the school
buses and the increased milage it would put on the buses. Mr. Falkner
said the pilot program would need to be reviewed to see what the added
costs would be.

Motion approved.

Rep. Wills will carry SJM105 on the floor.

Mr. J.R. VanTassel, Nez Perce County Commissioner, representing the
Idaho Association of Counties, handed out a chart on Surface
Transportation Program (STP) funding for Local Highway Jurisdictions.
(See attachment #2). He said that in addition to the $5,000,000
Investment Fund ($2.5 million urban and $2.5 million rural) four more
$1,000,000 rural federal-aid projects could be funded every year with this
legislation. Mr. VanTassel said that the local highway system is adding
about 400 miles a year, and we need to maintain these roads in good
fashion otherwise they deteriorate and have to be rebuilt which is really
expensive.

A questions was asked about how many new titles are issued in a year.
Mr. Morris Detmar, ITD Division of Motor Vehicles, said about 580,000 a
year.

It was also asked if these funds were used for matching federal dollars,
would it still be expected that you meet federal requirements. Mr.
VanTassel said yes.

Mr. Stuart Davis, Executive Director Idaho Association of Highway
Districts, said they support the concept of this bill.

Mayor Nancy Merril, City of Eagle, on behalf of the Association of Idaho
Cities, spoke in support of this bill.

Ms. Jane Gorsuch, Intermountain Forest Association, spoke in support of
this bill.

Chairman Wood stated that there is a motion on the table to send H655 to
the floor with a do pass recommendation.

Motion approved. Rep. McKague voted Nay.

The Voters of Ada County formed the Ada County Highway District
(ACHD) in a special election held in 1971. ACHD manages approximately
1900 miles of road and encompasses the cities of Boise, Eagle, Garden
City, Kuna, Meridian and Star.

There was a question asked–if 10% in each subdistrict is needed and one
of the subdistricts has 80% but the other two only have 7% would this still
cause an election. Rep. Smith said it requires 10% in each subdistrict.

It was asked if on Line 15 of the bill would there be an objection of
changing “qualified electors” to “those who voted in the last election”. Mr.
John Franden, Chairman ACHD Commissioners, said they would like
them to stand as written. He said that they are concerned with the small
limitation which puts dissolution in motion. He said this takes away from
the focus of the highway district, and he feels they need stability. Mr.
Franden also said they feel if it takes 10% to put together a highway
district it should take at least that to dissolve it.

In response to how many times there has been a petition for a hearing.
Mr. Franden said only once. A comment was made that it seemed before
the petition ACHD was harder to work with but after they seemed to be
more interested in what was happening; so it would seem that the petition
with only 25 signatures got the required results. Mr. Franden said that
they now have a public comment time at every meeting, they have a
citizens advisory committee, and an impact fee advisory committee.

Mr. Stuart Davis, Executive Director Idaho Association of Highway
Districts, spoke in favor of the bill.

Mayor Nancy Merril, City of Eagle, spoke in favor of the bill.

Mr. Rod Beck, a Ada County Citizen, spoke against the bill.

A recurring concern by some on the committee was that this legislation
would take the decision making from the county commissioners. With the
bill that is now in place the 25 signatures are merely asking for a hearing.
This bill would force an election and the expense that it would incur. Rep.
Smith said this legislation gives citizens more rights as it can compel an
election.

Rep. Skippen spoke in favor of the motion saying that anyone can ask the
county commissioners for a hearing and if someone in Ada County is
unhappy they can recall their commissioners.

Rep. Cuddy spoke in favor of the motion saying that a recall is a better
solution than dissolution.

Rep. Bedke spoke in favor of the substitute motion. He said he would
support a bill that keeps the county commissioners in the loop; he felt that
25 is a low threshold but 10% in each of the three subdistricts was to
high.

Rep. Cannon spoke against the substitute motion. He stated that ACHD
and the commissioners are asking for help. The bar needs to be high for
dissolution, and in the end the public gets to decide.

Rep. Nonini spoke against the substitute motion. He said that if it takes
10% to establish he didn’t see a problem with 10% to dissolve.

Rep. Douglas spoke against the substitute motion. She said if this
happened once she would want assurances that it wouldn’t happen again.

Rep. Cuddy spoke against the substitute motion.

Rep. Ridinger spoke against the substitute motion.

A roll call vote was called for on the substitute motion to hold H654 in
committee.

6 Aye – Representatives McKague, Roberts, Bedke, Bauer, Wills, and
Wood.

8 Nay – Representatives Ridinger, Nonini, Smith, Cannon, Skippen,
Cuddy, Shepherd, and Douglas.

Motion failed.

A voice vote was then taken on the motion to send H654 to the floor with
a do pass recommendation.

Motion approved.

EXCUSED:

Motion approved

AAA has identified Traffic Crashes as Public Enemy Number 1 because
traffic crashes are the leading cause of death for US citizens up to age 34
taking 43,000 lives per year. Mr. Carlson said that they have set priorities
to get to a target zero goal of no accidents. He said that if everyone
would buckle up 75 lives a year could be saved in Idaho and
approximately 9,000 nationally. He talked about AutoMobility which is the
ability, capacity or quality to use our vehicles without unnecessary or
punitive restrictions. Mr. Carlson also gave a brief overview of AAA’s
strengths, weaknesses, opportunities, and threats.

Mr. Carlson also talked about AAA’s State of the States Report which is a
list of hot button issues gathered from throughout the country. These
issues are likely to be considered at state legislatures in 2004. These
include budget woes for transportation at the federal and state levels.
Other hot button issues mentioned in the report are distracted driving,
licensed to learn teen drivers, senior mobility, alcohol laws,
aggressive/reckless driving, and child safety restraints.

In conclusion, Mr. Carlson said that AAA is a resource on all things
transportation, it offers a perspective drawn from 100 years and 46 million
member motorists, and it brings a consumer perspective on issues
important to Idahoans.

Motion approved

Rep. Roberts will carry the bill on the floor.

EXCUSED:

Motion approved.

Rep. McGeachin said that there is a typo in the bill and the Class A
should be Class D. She said she has amendments to correct this error.

Rep. McGeachin stated that this bill came about because of an number of
incidents where military personnel have been on active duty and when
they returned home they found that their Idaho drivers license had expired
and they needed to take the driving and written test and pay for a new
license. This bill would allow Idaho to recognize a military driver’s license
as long as the military license is current.

Mr. Russ Mathews, spoke in favor of the bill and read a letter from the
father of one of the people effected by this law asking for help in
correcting this inequity.

Responding to a question regarding the military license replacing a valid
Idaho drivers, Mr. Morris Detmar, ITD Division of Motor Vehicles , stated
that generally speaking the military does issue a military card, but in
addition military personnel are to carry their state license.

The biggest concern of the committee was that someone could drive
military equipment on a base and then come back home and get a license
either never having had a state license to begin with or maybe it had been
revoked.

Rep. McGeachin said that in order to get a military license the person
would have to have a valid state license.

It was stated that everyone agrees with the premise of this bill, but it
needs to be clarified that the person in question get the type of license
they had when they went into the military.

Rep. McGeachin said that she would work with Mr. Detmar and come
back on Tuesday with the new wording.

A voice vote was taken on the motion to hold in Time Certain H752 until
Tuesday, March 2.

Motion approved.

EXCUSED:

Motion approved.

Motion approved.

Motion approved.

Motion approved.

There was a question regarding this being part of the Patriot Act and if
this would effect funding from the federal government. Mr. Norris said
that they are different. Mr. Bevis, Col. Judge Advocate, Idaho National
Guard, said there would be no impact regarding the Patriot Act by passing
this legislation.

There was a question of Mr. Norris if this legislation also needed an
emergency clause. He said that since it doesn’t deal with the soldiers
they felt it didn’t need an emergency clause.

Motion approved.

EXCUSED:

Motion approved.

It was asked if these vehicles would need to display a slow moving
vehicle sign. Ms. Brennan said no. It was also asked if they would need
to carry insurance and Ms. Brennan said yes.

It was felt by many on the committee that driving these vehicles at 25 mph
on the roads where the posted speed limit is 35 mph (and some vehicles
travel at speeds as high as 40 to 45 mph) could be very dangerous. Ms.
Brennan stated that these are designed for residential use. It was pointed
out that many residential area speed limits are 35 mph.

David Hambleton, a police officer with the Boise Police Department,
spoke against the bill. It was asked if this bill were to become law would
that obligate all cities to abide by this law. Sgt. Hambleton said yes.

Jim Tibbs, Boise Chief of Police, spoke against the bill. He said that their
objection is strictly from a safety stand point. It was asked if they would
have a different opinion if the bill would allow cities to make the
determination of whether to allow these vehicles or not. Chief Tibbs said
that he still sees a danger. He said anytime you have full sized vehicles
driving with smaller, slower vehicles there is a risk.

Motion approved.

A question was asked who are the people other than physicians. Mr.
Pemble said it gives a list and clarifies what they are to do. He said they
are not making specific diagnosis but are able to make a distinction that
these people have difficulty walking more than 200 feet.

Regarding of suspension of drivers licenses it was asked if this includes
tribal courts. Mr. Pemble said that it could, but they have not received any
from tribal courts.

Motion approved.

Rep. Cuddy asked to be recorded as voting Nay.

Rep. Cannon will carry the bill on the floor.

Rep. Eskridge, co-sponsor of the bill, spoke in favor of the legislation. It
was asked if this was the first motorcycle vanity plate. Rep. Eskridge said
yes.

Sen. Bailey, co-sponsor, also spoke in favor of the bill. In response to a
question about requirements, Sen. Bailey said that this plate has to
qualify just as the regular license plates do.

Rep. Clark, spoke against the bill. He said this bill excludes a whole
bunch of people from obtaining the license plate, even wives of veterans
or mothers and fathers of veterans. He said it is not a good feeling when
you exclude someone. It was mentioned that there are POW plates and
legislator plates which exclude.

It was asked if the bill could be changed to include everyone. Rep.
Eskridge stated that a veteran is a veteran and that the plate indicates
you are a veteran.

Bob Finney, USMC retired and representing the VFW, spoke in favor of
the bill. He said they would not like to see the plate go to non-veterans.

Rep. Cuddy spoke in support of the motion saying we need to honor
every veteran who wants a plate.

Rep. Wills spoke in support of the motion.

Rep. Cannon spoke for the Substitute Motion. He said that the bill calls
the wife of a veteran less than a veteran.

A voice vote was called for on the Substitute Motion.

Motion failed.

A voice vote was then called for on the Motion to send S1224 to the floor
with a do pass recommendation.

Motion Approved.

Representatives Roberts, Smith, Kellogg, Cannon and Wood asked to be
recorded as voting Nay.

EXCUSED:

Motion approved.

There will be a charge of $35 for the initial issuance of these plates and
$25 upon each succeeding annual registration. $10 of the initial fee and
$10 of the renewal fee shall be deposited in the state highway account
and shall be used to fund the cost of administration of this special license
plate program. $25 of the initial fee and $15 of each renewal fee shall be
transferred by the state treasurer to the pupil transportation support
program fund created in section 33-1513, Idaho Code, and shall be used
for educational programs promoting school transportation safety and
awareness.

A question was asked if each school bus would be required to buy one of
these plates. Mr. McKnight said no.

A roll call vote was requested on the Substitute Motion.

Voting Aye: Representatives Ridinger, Kellogg, Bauer, Cannon, Skippen,
Cuddy, Shepherd and Douglas.

Voting Nay: Representatives Roberts, Smith, McKague, and Wood.

Motion approved.

It was asked if this would hurt the portion allocated to highways and
bridges. Mr. Eiguren said they believe it would not.

In the discussion that followed the motion, Chairman Wood said it worries
her that this asks for the same sliding scale as highways and bridges. Mr.
Eiguren stated that Idaho has a small population base and a huge land
mass that is federally owned which cannot be taxed or developed by the
state thereby reducing the ability of the state to raise additional tax
revenues.

It was asked how much revenue is taken in each year by fares. Mr.
Eiguren said about 4.2 million which includes local funds from cities and
counties and the fare riders. He also stated that Idaho is one out of six
states that does not provide some type of state funding for public transit.

A voice vote was taken on the motion to send SJM109 to the floor with a
do pass recommendation.

Motion approved.

Representative Roberts, McKague, and Wood asked to be recorded as
voting Nay.

This legislation prohibits issuing, renewing, transferring, or upgrading a
commercial driver’s license with a hazardous materials endorsement
unless the U.S. Department of Justice has first conducted a background
records check of the applicant, and the Transportation Security
Administration has determined that the applicant does not pose a security
risk warranting denial of the hazardous materials endorsement. An
applicant for a hazardous materials endorsement must be a U.S. Citizen
or be an alien classified as a lawful permanent resident of the U.S. with a
valid Bureau of Citizenship and Immigration Services alien registration
number.

In the fiscal impact it shows a $50 fee to the applicant. It was asked if this
is in Idaho Code. Mr. Pemble stated no that these are estimated fees for
finger printing and background checks and would be completed through
the FBI. Mr. Pemble also stated that the federal rules would be released
shortly, and all they have now are estimates. In response to a question of
timing to get these checks, Mr. Pemble stated that the federal requirement
is to notify the driver within 180 days of his CDL license expiring. Mr.
Pemble said that the feds believe they can do checks within 90 days. It
was also asked what kind of proof was needed when applying for a CDL
license. Mr. Pemble said a birth certificate.

One of the concerns of the committee was whether a truck from Canada
or Mexico, which was hauling hazardous material into the U.S., would
have to meet these requirements or would they be exempt. Mr. Morris
Detmar, Idaho Transportation Department, stated that they don’t know
what is going to happen at the borders, but they would be dealt with at the
check points.

Mr. Pemble was asked when this Federal mandate would take effect. He
said that this legislative session will be the last chance to be in
compliance. He said that it is suppose to take effect in April, but they are
asking for an extension until December. If this legislation is passed it
would go into effect in July which would meet the deadline.

One of the concerns of the committee was that the Federal Government is
requiring that we have sanctions before they give us the requirements. It
was also felt that the federal government is passing this on to us without
looking at the total consequences.

It was also mentioned that if we don’t comply with this we could lose
$13.2 million in federal funding which is not a little amount of money.

Rep. Roberts said that he would support the motion with a smoking gun to
his head.

Rep. Ridinger spoke against the motion stating that he feels sometimes
we just need to say whoa to the federal government instead of just blindly
following.

Rep. McKague said she would vote against the motion in support of Idaho
commerce.

A voice vote was taken on the motion.

Motion approved.

Representatives Ridinger and McKague asked to be recorded as voting
Nay.

The meeting was adjourned at 4:12 p.m.

EXCUSED:

Motion approved.

Senator Ingram, stated that this bill applies to Boise­it can’t go out of the
city limits. The bill would allow the installation of intra-city light rail
systems upon state highways when determined by the board to be in the
public interest.

It was pointed out that 50-322 of the bill already gives this authority. It was
wondered why legislation is needed when local areas can make the
decision now.

Mr. Bob Arney, concerned citizen, spoke in favor of the legislation.

In the discussion that followed it was asked if the regulatory board is
interested and asking for this authority. Senator Ingram said no, but this
is why they want to nudge them. It was then asked if there was any
reason why meetings couldn’t take place without passing this legislation
and what in the bill would bring about meetings. Senator Ingram stated
that people will not show up unless shown there is a process. Rep.
Ridinger stated that at some point the state is going to have to do
something about public transit and this bill just gives them a tool. Ms.
Julie Pipal, Idaho Transportation Department, was asked if this oversight
group would get separate transportation funds out of the highway
account. Ms. Pipal answered that funds that come now to Ada County
Highway District, with most of that coming from transit funds and counties
share of fuel tax, could be used.

A voice vote was taken on the motion to send S1269a to the floor with a
do pass recommendation.

Motion approved

Representatives Bauer, Bedke, Roberts and McKague asked to be
recorded as voting Nay.

Rep. Ridinger will carry the bill on the floor.

Mr. Lynn Humphreys, Post Falls Highway District, spoke in favor of the
bill.

Mr. Dave Burgess, Twin Falls Highway District, spoke in favor of the bill.

Mr. Dave Wynkoop, Attorney for multiple Highway Districts, spoke in
favor of the bill.

Mr. Steve West, Lobbyist for Old Castle Materials, spoke against the bill.

Mr. Dennis Tanikuni, Lobbyist for Idaho Farm Bureau, spoke against the
bill.

Mr. Steve Ahrens, Lobbyist for Idaho Association of Commerce &
Industry spoke against the bill.

Mr. Davis stated that the problem now is that they can not get citations
written on resolutions. It was asked if they really feel that ordinance
authority will help with frost laws and bridges. He answered yes.

Rep. Roberts explained that if this bill passes you could start in one
jurisdiction and be legal and within a few miles go into another jurisdiction
and be illegal. He also feels this bill takes away the authority the county
commissioners setting what the standards would be. He also has
concerns about where the funds would be collected and how they would
be distributed.

A question about how ITD views this bill was asked of Ms. Julie Pipal,
Idaho Transportation Department, Ms. Pipal said that ITD chose not to
take a position.

Rep. Skippen, Rep. Smith and Rep. Cuddy spoke against the substitute
motion.

Rep. Cannon stated that he is on the fence.

Rep. Bedke, Rep. Ridinger, and Rep. Kellogg spoke in support of the
substitute motion.

A roll call vote was called for on the substitute motion to hold S1287a in
committee.

Aye: Ridinger, Kellogg, McKague, Roberts, Bedke, Bauer, Wills,
Shepherd, and Wood.

Nay: Smith, Cannon, Skippen, Cuddy, Douglas.

Motion approved. S1287a will be held in committee.

EXCUSED:

Motion approved.