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January 16, 2004 – Subcommittee
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DATE:	January 16, 2004
TIME:	10:30am
PLACE:	Caucus Room
MEMBERS PRESENT:	Vice Chairman Richardson, Senator Calabretta and Senator Bilbao
MINUTES:	Vice Chairman Richardson introduced Commissioner Dennis Hansen and Ron Law, Executive Administrator from the Public Utilities Commission and Dennis R. Stevenson from the Department of Administration. Vice Chairman Richardson stated that he considered the Rules Review a very important part of the legislative process which is not carried through at the national level. He said that he feels it is the responsibility of the legislature to make sure that the rules are carried out according to the intent of the law.
IDAPA31 31.11.01	Safety and Accident Reporting Rules for Utilities Regulated by the Idaho Public Utility Commission (PUC)
	Ron Law explained that the purpose of this proposed rule change is to adopt the International Fuel Gas Code replacing the National Fuel Gas Code. He stated this change is an effort to promote uniformity and avoid conflicting criteria. He stated that it is a group of engineers who make these recommendations and they have received no negative feedback regarding them. Chairman Richardson asked if smaller businesses would be impacted negatively. Mr. Law stated that generally, they are glad to have specific guidelines for adherence. Senator Bilbao asked if these guidelines covered propane. Mr. Law explained that though such guidelines are applicable, the PUC has no jurisdiction over propane. Senator Bilbao stated that in his district they had some problems with illegal installations which resulted from un-licensed contractors.
31.21.01	Customer Relations Rules for Gas, Electric, and Water Public Utilities regulated by the Idaho PUC.
	Ron Law explained that in the past the different utilities had different processes for termination of services which caused confusion for some consumers. It was therefore recommended that the notification system for terminations be standardized. Commissioner Hansen stated that in the past there were different procedures from one department to another. Now there is one written notice and one personal contact attempt required before termination from any department of the PUC. He said this change was supported by most of the utilities who agree that it will be a good thing for consistency. Chairman Richardson asked if Idaho Power had agreed to this change. Commissioner Hansen stated that Idaho Power did accept the recommendation but had reservations about the requirement of personal contact notification. Senator Calabretta inquired about national termination guidelines. Commissioner Hansen stated that currently with a verification from the doctor of a medical exception, the PUC is prohibited from turn offs from November through February. Ron Law added that if there are children under eighteen in the home, they are also protected. Senator Bilbao stated that he has reviewed these rule changes and has no objections.
31.7103	Railroad Safety/Sanitation Rules
	Chairman Richardson stated that he supported the increased security of the movement of hazardous materials via railway. Ron Law stated that after September 11, 2001, the security of hazardous materials became an increased priority. The Department of Homeland security and the U.S. Department of Transportation developed new rules for the security of Rail Transport. These changes included the requirement that the railway carriers must develop and implement their own Security Plan. Chairman Richardson asked if this change also applied to truck hauling. Mr. Law stated that it applies to rails and shippers. The new requirements include a time frame for development and implementation of a security plan. The PUC does not evaluate the plan but rather will verify that a plan exists. The plan must include employee training and security of hazardous material facilities. Senator Bilbao inquired if each railway develops their own plan and asked about the ones that are financially defunct. Mr. Law stated that the Hazardous Materials Department has been inspecting the various sites and they are working to become a resource to get these locations to a point of safety. Senator Bilbao asked about what penalties there are for failure. Mr. Law explained that if they fail to comply they are referred to the Public Utility Commission which would further work toward resolution. However, eventually there are some remedies after a extensive process aimed at compliance.
31.01.01	Rules of Procedure of the PUC
	Commissioner Hansen stated that this rule modifies Idaho Bar Commission Rule 222. This Bar Rule was issued by the Idaho State Bar and approved by the Idaho Supreme Court. Bar Rule 222 governs the practice of law by out-of-state attorneys who are applying for limited admission in Idaho Courts. Bar Rule 222 establishes a $200 fee for out of state attorneys and is payable to the State Bar. In turn the State Bar verifies that they are attorneys in good standing. Senator Calabretta asked about the section on page five which addresses the use of electronic mail. Mr. Law stated that in the past, there was a United States Mail requirement but now in an effort to encourage electronic filing, it can be done either way. Senator Calabretta asked how electronic filing is verified. Mr. Law stated that an electronic acknowledgment of receipt is sent to the sender.
44-0201-0301	Rules of the Administrative Rules Coordinator
	Dennis Stevenson from the Office of Administrative Rules stated that this rulemaking is necessary to increase the Administrative Code and Bulletin Subscriber Fees. The increases are necessary to offset increased costs for printing, binding and distribution of the Code and Bulletin. The cost of individual bound volumes of the Bulletin is being increased also, but individual bound volumes of the Code will remain unchanged. The subscription fee for the Code is increased from $350 to $450 and the Bulletin is increased from $300 to $400. Individual copies of the Bulletin would increase from $30 to $40 per issue. He said that two years ago they started printing the code on compact discs and the electronic copies are much cheaper to provide than the hard copies. Mr. Stevenson stated that getting away from hard copies helps to reduce costs although some libraries are hesitant to change. However, most users are facing the difficult challenge of storing hard copies. They are striving to create a broad base and standardize the language. Senator Calabretta asked how this was being received by the county clerks. Mr. Stevenson said they are cooperating and most counties already have the ability to utilize electronic access.
15.1001.0301	Rules of the Idaho Liquor Dispensary
	Senator Richardson stated that this rule change clarifies the right of Liquor Dispensary personnel to remove underage and intemperate persons from the store premises. This change responds to the growing need in retail liquor stores to clarify the right of Dispensary personnel to remove underage and intemperate persons from the store premises and allows the exercise of discretion. There was some concern regarding liability to the state from these decision which will be reviewed at the full Senate State Affairs Committee meeting.
11.0402.0301	Rules Governing Horse racing Jackie Lilengood, the Parimutuel Supervisor for the Idaho Racing Commission, joined the committee via phone conference and she explained that this rulemaking is intended to Adopt Standard Time Trial Rules of the American Quarter Horse Association. She said conforming to these guidelines will make Time Trials more accurate and will make it easier for the stewards to time the fastest horses. She said new technology and computers allow the time to be shown in thousandths of a second. Senator Richardson asked if this change had been publicized and reviewed with those affected. Ms. Lilengood said it was discussed at an open meeting of the Racing Commission and that the trainers and owners agree that this is a positive change.
11.0402.0301	Rules Governing Simulcasting
	Jackie Lilengood explained that this rulemaking is necessary to provide for advance deposit wagering in Idaho. It allows accounts to be set up so consumers can phone in to place wagers on events across the United States. These rules explain the licensing and how accounts are to be set up. Senator Richardson asked if these recommendations have been approved by the Racing Commission. Ms. Lilengood said that they are comparable to the guidelines set up in three other states and have been approved. Senator Calabretta asked what the bill number was of the legislation this resulted from. Ms. Lilengood was not sure but said it is part of Statute 54-25-12. Ms. Lilengood stated that as she works in conjunction with the State Paramutuel Racing, she has the opportunity to review others files for compliance. Senator Richardson asked what response they have received from the racing community. Ms. Lilengood said that the information had been well distributed and the response was very positive. Senator Richardson then asked what effect this change might have on live horse racing. Ms. Lilengood explained that as compensation, 10% of the receipts would be returned back to the Racing Commission. Senator Calabretta stated that due to the extent of these new changes, she would request that Ms. Lilengood be in attendance at the next State Affairs meeting when these changes are reviewed.
34.0202.0301	Rules Governing Complaint Process Under the Help America Vote Act
	Tim Hurst from the Office of the Secretary of State joined the committee via telephone conference. The committee reviewed page 44 of IDAPA 34 which states; ” Federal law, 42 U.S.C. Section 15512, requires each state to have a complaint process in place as a precondition for receiving funds under the Help America Vote Act (HAVA), 42 U.S.C. Section 15481, et seq. The complaint process permits anyone believing that a violation of HAVA has occurred to file a written, notarized, and sworn complaint setting forth the perceived violation. Complaints may be consolidated and a hearing may be held if requested. A determination should be made within 90 days, and the State will provide a remedy if there is a violation. Alternative Dispute Resolution procedures will be used if the 90-day deadline is not met.” This rulemaking is necessary to carry out the requirements set forth in the ‘Help America Vote Act. Vice Chairman Richardson stated that this sub-committee would present their recommendations to the Senate State Affairs Committee on Monday, January 19, 2004.
	The committee adjourned at 11:55 AM.

DATE:	January 19, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Bilbao, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Minutes from the State Affairs Committee on Rules Review were presented signed by Vice Chairman Richardson.
	Chairman Sorensen welcomed the committee to the first State Affairs meeting of the Second Session of the Fifty Seventh Legislature. She introduced Zach Gonzales from Capitol High School in Boise who will be our page during the first half of this session. He is in the Intelligence Division of the Idaho Army National Guard and plans to attend the Coast Guard Academy when he graduates.
	Gubernatorial Appointment of Melville W. Fisher,II to the Idaho Lottery Commission for a term expiring January 1,2008
	Mr. Fisher stated that he has spent a lot of time in public service which included being Chairman of the Board of Trustees of the United Methodist Church, Chairman of the Board of Trustees for Saint Alphonsus Regional Medical Center and Chairman of the Idaho State Bar. He looks forward to the opportunity to serve again. Senator Calabretta asked Mr. Fisher what his general philosophy was about the Lottery. Mr. Fisher said that he thinks it calls for a delicate balance which needs sales to provide revenue for education yet maintains prudence at the forefront. Senator Stennett congratulated Mr. Fisher on his great background and then asked about the lottery advertisement which promotes the benefits to schools from the lottery. He asked since those benefits are decreasing in recent years, should the add continue to run. Mr. Fisher agreed that perhaps that add should be reconsidered and a clearer break down could be made available to the public. Senator Stennett asked about Mr. Fisher’s attitude about having on-line lottery access. Mr. Fisher said he is concerned and that the Lottery Commission will take it’s lead from the Idaho Legislature. Senator Geddes stated that a per cent of the profits are divided between schools and the building fund based on corporate profits. He said large companies control the amount of profit they declare and asked if there might be a better way to fund and distribute the lottery. Mr. Fisher stated that the original goal of the lottery was increased revenue for schools and public buildings. Currently, the various types of lottery tickets are within the control of the commission. However, some things are still outside their control. Senator Richardson said he had received complaints about the lottery advertising and he asked if they should push so hard. Mr. Fisher said he is still very new to the commission and he could defer to the director. However, they do end each advertisement with their “Play responsibly” reminder and he is very cognizant of the necessity to be prudent. Senator Richardson stated that he had seen some recent information that suggested that the Idaho Lottery had lower than average profits and higher administrative costs than other states. Mr. Fisher said he found that very surprising as the information about the Idaho Lottery operations he has seen indicated they were doing very well. Senator Darrington stated that the Idaho Law actually spells out the allocation of Lottery Funds and his understanding is that to change that formula would require changing the law
	Chairman Sorensen stated that the committee appreciated Mr. Fisher coming and that the vote of approval would be held at the next State Affairs Committee meeting.
RS13533C1	Relating to the application of Campaign Expenditures Reporting Law to certain city elections; Amend Idaho Code Section 50-477
	Senator Bilbao presented this bill for Senator Little. He said the purpose of the bill is to have greater accountability during elections by requiring reporting of campaign contributions in smaller communities. This bill will reduce the minimum population requirement from 16,000 to 5,000.
MOTION	Senator Davis made a motion that RS13533C1 be introduced to print. Senator Stennett seconded the motion. The motion was approved by a Voice Vote.
RULES REVIEW	Chairman Sorensen then stated that Vice Chairman Richardson had been conducting a committee to review the State Affairs Committee Rules Review for 2004. Senator Calabretta and Senator Bilbao assisted him .
	Vice Chairman Richardson stated that he had called a special sub-committee meeting to review the Pending Rules and the Pending Fee Rules assigned to our committee. He stated that he considered this review a very important part of state government and he regrets that it does not occur nationally.
IDAPA 15.10.01	Rules of the Idaho State Liquor Dispensary
	Vice Chair Richardson asked Dyke Nally from the Liquor Dispensary to respond to some questions. He said there was some concern that the state could be liable for hostile removals from the state stores. Mr. Nally said their policy is to operate responsibly and they need some clarity of action for a public facility. They have had problems with under age people coming in and need some authority to respond. Senator Geddes asked about the situation where hunting licenses are sold in the liquor stores and it is necessary for minors to enter. Mr. Nally said that occurs in the privately owned stores rather than the public. Senator Davis had several questions about the language in the rulemaking such as “state store personnel” and “may refuse.” He said no standards were given and “further actions” is not defined. Mr. Nally said that trying to describe every type of potential behavior would be too difficult. He said the intent is to give store managers some authority for judgement in order to protect the community. Senator Davis stated they should clarify the specifics in the rules. Mr. Nally said the wording had been written by attorneys and they could consider further changing it if necessary. Senator Calabretta had questions about the definition of “grievous behavior.” Senator Stennett asked about the number of state owned stores. Mr. Nally said the state owns 52. Senator Geddes stated that when they talk with their attorneys about the state owned stores, they should also address the contract stores as they probably face the same type of problems. Senator Stegner then stated that the committee should be aware that if they decide to reject a rule, they cannot modify it but would have to start all over. Therefore they must consider whether the change is worth delaying all implementation for a year. Senator Darrington pointed out that if the committee creates a resolution to reject the rule, that resolution still must pass both houses before the rule would go away. Senator Calabretta said that although the language is not as precise as we might like, she suggests we allow the rule to go into effect. Senator Bilbao agreed and said that if necessary that department could offer further clarification in the future.
	Vice Chairman Richardson asked the committee to give these issues further consideration before the vote is held.
IDAPA 11.04.01	Rules Governing Horse Racing
	Senator Bilbao introduced Jackie Libengood from the Idaho Racing Commission. She stated that this rulemaking is necessary in order to adopt Standard Time Trial Rules of the American Quarter Horse Association. Jack Baker , Chairman of the racing Commission, explained that new digital technology makes it now possible to time horses to a thousandth of a second. He said these guidelines are being adopted by most other jurisdictions and will improve accuracy.
IDAPA 11.04.02	Rules Governing Simulcasting
	Senator Bilbao stated that these rules on parimutuel betting refer to off track betting by Idahoans in another state and to off track betting in Idaho. He then asked Mr Baker to review the changes. He explained that wagering and sports betting on the internet is growing rapidly and these changes will allow a source fee from that activity to be directed back to Idaho. He then deferred to Ms. Libengood. She stated that since June 2003 such wagering has amounted to $408,000 and 10% of that has been directed back to the Idaho Racing Commission. Senator Stegner questioned whether this establishes a fee and if so that it should be processed through the Pending Fee Rule process. Ms. Libengood said they referred to the statute for the development of these rules. Senator Darrington stated that the fee is to out of state participants, and therefore not to Idahoans. Senator Stegner asked that the Department of Administration should be contacted for a clarification of this procedure.

IDAPA 31.21.01	Customer Relations Rules for Gas, Electric, and Water Public Utilities regulated by the PUC
	Senator Calabretta explained that these rules are intended to standardize customer relations procedures in all PUC Facilities. She asked Ron Law from the PUC to summarize these changes. Mr. Law explained that this rule started in a committee and was then put out for comment. It refers to customer deposits, billings and termination of services. Senator Calabretta asked if public hearings were held. Mr. Law said they were not. Senator Calabretta asked if the current practice for a medical exception is to require a letter from a doctor. Mr. Law deferred to Don Howell, Deputy Attorney General. Mr Howell stated that currently a doctors signature is not required but rather that of any health officer.
	Senator Callabretta asked about a move to a new location. Mr. Howell said that it is considered a transfer not a termination. Senator Stennett referred to page 33 of the rules Section C where it appears a transfer is considered as a new applicant. Mr. Howell stated that the handouts the committee has only cover the amended rules and does not include the full rules where this is clarified. Senator Stennett said it still appears that every move now results in being considered a new applicant. Mr. Howell said he would check the rest of the rules. Senator Calabretta asked Vice Chairman Richardson to seek clarification of this issue.
IDAPA34.02.02	Rules Governing Complaint Process Under the Help America Vote Act
	Vice Chairman Richardson introduced Chuck Goodenough from the Secretary of States office. He explained that no hearings were held with regard to development of these rules. However, Legislative Services did make recommendations. After the 2000 National Elections, the Help America Vote Legislation was passed. Now it is necessary to have a complaint process in place in order to be eligible for receiving the federal grants. These new rules follow the process required by that new federal law.
	Vice Chairman Richardson recommended some further investigation and study before the committee makes the final decision on the Rules Reviews.
	Chairman Sorensen thanked the Rules Review Committee for all their work. She said it is important that we make sure that the rulemaking is correct and that we take the time to ask all questions. She said the committee will continue consideration at the next meeting.
ADJOURNMENT	There being no further business, the committee adjourned at 4:25 P.M.

DATE:	January 21, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Bilbao, Stennett
MEMBERS EXCUSED:	Senator Calabretta
MINUTES:	Senator Richardson made a motion that the minutes for January 19, 2004 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial appointment of Melville W. Fisher, II to the Idaho Lottery Commission to serve a term ending January 1,2008
MOTION	Chairman Sorensen called for the committee vote on Mr. Fisher’s gubernatorial appointment. Senator Darrington made a motion that the committee recommend the approval of Melville W. Fisher, II to the full Senate. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Chairman Sorensen will sponsor Mr. Fisher in the Senate. Chairman Sorensen then asked Vice Chairman Richardson to conduct the meeting while she presented a resolution.
RS 13735	Senate Concurrent Resolution; Stating findings of the Legislature and recognizing “GO RED FOR WOMEN DAY” during February
	Chairman Sorensen stated that the intent of this legislation is to create increased awareness of the dangers of cardiovascular disease and stroke for women and to empower them to prevent and manage their personal risk factors. Chairman Sorensen said that her father passed away when she was one and numerous other family members had heart problems, but she was assured that because she was female she would not be susceptible. Then when she reached her twenties, she started experiencing symptoms of heart disease. Physicians couldn’t believe a woman could have such a heart condition. By the time her condition was identified, she had significant advanced disease which resulted in the requirement for several surgeries. Chairman Sorensen therefore appreciates how important it is that women recognize that they can have an effect on their health and can take steps to reverse and prevent heart disease through good health. Senator Stegner asked what the significance of the “Go Red” slogan is. Chairman Sorensen said that red symbolizes the heart and February 6, 2004 is the first date scheduled for this event. Senator Stegner then asked if they are encouraged to wear red on that date. Chairman Sorensen said that is correct. Mary MacConnell from the American Heart Association explained that more women than men die each year from heart disease. She encouraged all people to be aware of the risk factors which include tobacco, cholesterol, blood pressure, diabetes and inactivity. She said that “Go Red for Women” is a national celebration which she hopes will be supported by all. Senator Geddes had a question about the handout Ms. MacConnell presented with regard to the higher death percentages in certain counties. Ms. MacConnell stated that possibly the lower populations in certain counties can skew the numbers.
MOTION	Senator Darrington made a motion that RS13735 be introduced to print and forwarded to the Senate. Senator Sorensen seconded the motion. The motion carried by a Voice Vote.
RS 13716C1	Relating to limitations on smoking in public places, Amending Idaho Code, section 39-5501, to revise legislative intent
	Senator Brent Hill explained that this legislation amends the “Idaho Clean Indoor Air Law” (Chapter 55, Title 39, Idaho Code) of 1986. He stated that science continues to find lethal effects of tobacco smoke. This bill will amend legislation regulating smoking in public places, publicly-owned buildings or offices, and at public meetings. It sets standards to protect the public health, comfort and environment, the health of employees who work in public places, and the rights of citizens to breathe clean air. He said it has been reviewed by the Office of the Attorney General and they advised them to include the section on intent. He said the bill does not cover manufacturing plants or mills. The focus is on places where the public is present. Senator Hill said he is prepared to provide a complete presentation to the committee about the effects of this bill. He is now requesting RS13716C1 be introduced to print.
	Senator Bilbao stated that in his district they imposed a smoke free zone around their high school but it has proven difficult to enforce. Senator Hill said that he believes the majority of people want to accommodate the law and he is not as concerned about violators as providing guidelines for the majority. Senator Richardson asked how this bill compared to the law in California. Senator Hill said their law completely prohibits smoking in public and private workplaces so their law goes much further. Senator Stennett asked about the sometimes clouded definition of a bar versus a restaurant. Senator Hill said that both “bar” and “restaurant ” are defined. Senator Stennett then asked about “taverns” and if there was leeway for smoking in them. Senator Hill stated that the director of the Department of Health and Welfare shall design reasonable rules and is allowed to waive them when reasonable. Senator Stennett then asked if the intent of this legislation is to prohibit smoking in any establishment that serves food. Senator Hill said that if they serve meals they are considered a restaurant. Senator Darrington asked about the twenty foot rule and if that requirement had to do with ventilation systems. Senator Hill said he was not sure about that rule, but what precipitated this bill was people who are trying to enter a facility such as a hospital or an airport should not have to pass through a wall of smoke. Senator Sorensen asked about smoking in a bar that is attached to a restaurant. Senator Hill said it may be allowed if the bar is a separate room with wall closure to the ceiling and a door. Senator Bilbao referred to his previous employer who made a ruling that there was no smoking on the property and that after a few years they became a smoke free company without needing legislation. Senator Hill said that was a positive example but he has been waiting for change for twenty years. He said people who are ill and suffering are in the minority and the market does not necessarily adjust itself for the minority. He said if we continue to wait for businesses to decide, it may never happen. He said 53,000 Americans die every year from second hand smoke and 300,000 children get respiratory diseases. He said the time for change is now.
MOTION	Senator Davis made a motion that RS13716C1 be introduced to print. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
Rules Review	Chairman Sorensen then asked Vice Chairman Richardson to continue his review of the Rules. Vice Chairman Richardson said that after the discussion at the last State Affairs meeting he felt there was some confusion about the Rules Review process so he had invited Carl Bianchi, the Director of Legislative Services, to provide some assistance. Mr. Bianchi provided a handout to the committee members which responded to common questions he receives. He referred to item number three which clarifies that the Legislature can amend a rule, however, legislative leadership has decided, as a matter of policy, not to amend or modify rules by concurrent resolution in order to avoid adverse ramifications from law suits.
	Vice Chairman Richardson then concluded that his committee has met with the Idaho State Police regarding IDAPA rule 11, the Idaho Liquor Dispensary regarding IDAPA 15, the Secretary of State regarding IDAPA 34 and the Office of the Administrative Rules Coordinator regarding IDAPA 44. His sub-committee is recommending to the full State Affairs Committee that they approve these Pending Rules and Pending Fee Rules. He stated that the rulemaking for the PUC will be further discussed at the next meeting. Senator Stegner had a question about the out of state fee on sports betting. Dennis Stevenson, from the Office of Administration, agreed to help Senator Stegner get a clarification on that matter.
MOTION	Senator Darrington made a motion to approve the Rules Review recommendations from the subcommittee. Senator Bilbao seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT	There being no further business, the meeting was adjourned at 4:30 PM.

DATE:	January 26, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Stegner, Bilbao, Stennett, Calabretta
MEMBERS EXCUSED:	Senator Davis and Senator Geddes
	Chairman Sorensen called the meeting to order at 3:06 PM.
MINUTES:	Senator Bilbao made a motion that the minutes for January 21, 2004 be approved as written. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13366	Senate Resolution establishing rates of compensation for employees of the Senate
	Senator Stegner presented this legislation for Senator Davis. Senator Stegner stated that this is the annual Senate Resolution which establishes rates of compensation for the staff. He said that it is basically the same as last year with no automatic increases except for those based on longevity. Senator Stegner said that this bill was discussed thoroughly before being presented.
MOTION:	Senator Calabretta made a motion that RS13366 be introduced to print and forwarded to the second reading in the Senate. Senator Bilbao seconded the motion. The motion carried by a Voice Vote.
RS 13566	Relating to Capitol Endowment Funds; Amending Section 67-1610, Idaho Code, to provide for the retention of earnings of the Capitol Permanent Endowment Fund, to provide for the deposit of proceeds of timber sales, capitol buildings endowment land lease revenues, etc.
	Carl Bianchi, the Director of Legislative Services, presented this bill. He stated that he is an ex-officio member of the Capitol Restoration Committee and he chairs their Finance Committee. He said that the Legislative Council has reviewed this legislation. He stated that even though the restoration is on hold, the ongoing maintenance of the Capitol is very active. He said that approximately $2 million in repairs is scheduled for 2004 which includes considerable work on the dome and the shell of the capitol. He presented a flow chart to the committee members which described the changes he is proposing. The specific change is described on lines 37 through 43 of page one. He stated that by redirecting funds to the Permanent Endowment Fund, the amount that is available for repairs would actually increase due to interest earnings. He said this change is supported by the Department of Administration and the State Treasurer. Senator Darrington stated that he is a member of the Public Building Fund Advisory Council and he agrees that the upcoming repairs to the Capitol Dome are critical.
MOTION:	Senator Darrington made a motion to introduce RS13566 to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
S 1214	Relating to the application of campaign expenditures reporting law to certain city elections; Amending Idaho Code 50-477, to lower the population threshold for application
	Senator Bilbao stated that this bill provides for the application of the Campaign Expenditures Reporting Law to certain city elections. He said that as smaller cities grow, more contributions and expenditures are occurring in local campaigns. Some people have made contributions in order to influence planning and zoning decisions. He quoted Thomas Jefferson who said, ” When a man assumes public trust he should consider himself as public property and open for public inspection.”
	Senator Darrington said he could recall the reasoning behind the original 16,000 threshold which was based on the natural breaking point and he asked why it should be reduced to 5,000. Senator Bilbao said that even with the 5,000 minimum, growth can expand rapidly. Roger Sherman, the Program Director for United Vision for Idaho, said they considered this a positive evolution of the bill. He said small cities have important issues and citizens are entitled to know the source of funding. He said they feel disclosure is the minimum standard and they support this legislation. Senator Calabretta stated that she had received an e-mail from Helen Newton, the City Clerk from Sandpoint, Idaho which expressed fear that the new responsibility would deter people from running for local seats. Roger Sherman responded that he agreed there are many reasons not to run, but if they want to be a public servant they must disclose their funding sources.
MOTION:	Senator Stennett made a motion that S1214 be sent to the floor of the senate with a do pass recommendation. Senator Bilbao seconded the motion.
	Senator Stegner said he didn’t know if the 5,000 person threshold would put too much work on clerks of towns too small to handle the extra burden. But he said that by the time the Senate votes on the measure, he figured word will have gotten around. He said “I’m not real sure about this 5,000 number and I expect we’ll hear real quickly whether this has state support or not.” Senator Richardson stated that he didn’t understand an objection to the 5,000 limit as size should not even be a factor. He said ” If they’ve got something to hide, they shouldn’t be running.”
VOTE:	Chairman Sorensen then called for a Voice Vote on the motion to send S1214 to the Senate with a do pass recommendation. The motion carried by a Voice Vote.
Rules Review IDAPA 31	Safety and Accident Reporting Rules for Utilities Customer Relations Rules for Gas, Electric and Water Public Utilities regulated by the PUC
	Chairman Sorensen asked Vice Chairman Richardson to preside over the final Rules Review . Vice Chairman Richardson stated that he and Senator Calabretta and Senator Bilbao had met earlier in the day with representatives from the PUC and the utilities and with the members of ICAN (Idaho Community Action Network). He said that after some discussion they all agreed to approve the consolidation of the Customer Relations Rules. Senator Calabretta stated that she still holds some concerns with regards to hardship exceptions and she will remain watchful. She also has concern about the lack of citizen groups participation but she has been assured by the PUC that they will add these groups to their mailing list for notification of rule negotiations and the review process citing that AARP(Association of American Retired Persons) and ICAN (Idaho Community Action Network), at a minimum, were active in the state for at least a decade.
	Nicole LeFavour, representing the Idaho Community Action Network, said that they want to make sure that the public is in the loop during rulemaking. She said it is difficult for some consumers to interpret the complex language. She hopes that the State Affairs Committee will hold the PUC to the highest standards. She stated that the first section of this rule change reduces the definition of a consumer from 90 days to 10 days. This limited “open” window will have a powerful impact on lower income consumers. Karen Williams spoke on behalf of herself and her sister who is ill. Together they live on $587 per month. Her sister is on a breathing machine and they would be greatly impacted if their electricity was turned off. They also have to balance their expenses with her sister’s need for medications. Paying their power bill can be very challenging.
	Ron Law speaking for the Public Utility Commission, said that they appreciate the input they have received and to them the more input they receive on the rule changes, the better. They strive to be sensitive and concerned about consumers. At this time, the PUC does not feel these changes will adversely impact consumers. He said the Idaho Community Action Network is now on their mailing list so that they can be actively involved in the future.
	Vice Chairman Richardson then stated that at this time, his committee has determined that the PUC will be open to the public in hearings and that these rule makings for 2004 will not have adverse affect on low income consumers. Therefore, they recommend that the State Affairs Committee as a whole approve IDAPA 31.
MOTION:	Senator Stegner made a motion that the committee approve the IDAPA 31 rule changes. Senator Bilbao seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT	There being no further business, the committee adjourned at 3:35 PM.

DATE:	January 28, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Bilbao, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	The minutes for January 26, 2004, will be held until the next meeting.

RS13737	Relating to licenses to retail liquor; Amending Section 23-903, Idaho Code, to provide for the issuance of a license, subject to approval of the mayor and city council
	Chairman Sorensen asked Vice Chairman Richardson to conduct the meeting while she presented this bill. She stated that the purpose of RS13737 is to encourage tourism and economic development in Idaho’s smaller communities by allowing the Mayor and City Council of cities with a population of 5,000 or less to approve the issuing of a non transferable liquor license in exchange for a fifteen million dollar or greater taxable investment in newly constructed lodging and hospitality facilities. Senator Davis stated that the bill should be written so it could apply to any small city and not one in particular. Senator Calabretta pointed out that the Fiscal Impact statement would need to be changed as it is unconstitutional to refer to a specific location. Chairman Sorensen said those corrections would be made. Vice Chairman Richardson then asked for the will of the committee .
MOTION	Senator Calabretta made a motion that RS13737 be introduced to print. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Vice Chairman Richardson then returned the chair to Chairman Sorensen.
RS13679C1	Relating to limitations on contributions to candidates; to specify the limit on contributions from a central committee to a candidate
	Senator McKenzie stated that this bill was brought to his attention by county workers. He said the intent is to bring contribution limits for county central committees in line with the contribution limits for state central committees. He said currently, in Canyon County, the central committee runs a newspaper ad and voters guide in the newspaper and allocates the cost to the candidates which uses up their contribution limit. This change will allow the county central committees to contribute more money to candidates. Senator Calabretta asked if the existing law would aggregate contributions and include the cost of the newspaper ad. Senator McKenzie said the aggregate would include all in kind contributions as well as cash. Senator Darrington asked how this will fit into the McCain Campaign Finance Reform Act. Senator McKenzie stated that now at fund raising dinners they will have to clarify that they are raising funds for statewide and local candidates rather than federal candidates. Senator Stegner said he is glad to see that this legislation will increase funds for candidates rather than decrease them.
MOTION	Senator Stegner made a motion that the committee introduce for print RS13679C1. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT	There being no further business the committee adjourned at 3:20 PM.

DATE:	January 30, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Bilbao, Stennett, Calabretta
MEMBERS EXCUSED:	Senator Geddes, Stegner and Davis
MINUTES:	Senator Calabretta made a motion that the minutes for January 26, 2004 be approved as written. Senator Bilbao seconded the motion. The motion carried by a Voice Vote.
	Senator Richardson made a motion that the minutes for January 28,2004 be approved with one correction. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.

RS13591C1	Relating to local liquor stores and distributing stations; Amends Sect. 23-307, Idaho Code to provide an exception to the prohibition on sales delivery of any alcoholic liquor in, on, or from the premises of any state liquor store or distributing station on Sundays
	Suzanne Budge Schaefer stated that this proposed legislation would allow, through local government option, state liquor and contract stores to sell distilled spirits on Sundays. This legislation provides for local boards of county commissioners or the county voters to approve the sale of distilled spirits in their county on Sunday. She stated that Idaho law currently provides for Sunday sales, through local option, of alcoholic products such as beer, table wine, dessert wine, and some packaged alcohol cocktails. She said that Sunday is now the second biggest shopping day of the week. Contract stores would benefit from increased commissions, and the additional foot-traffic. She said Sunday sales would lead to increased revenues for the State Treasury, the primary beneficiaries being the Drug and Family Court Fund and local cities and counties. Today 27 states permit Sunday sales of distilled spirits. She stated that conservative calculations indicate this legislation would generate, at minimum, $750,000 to the State of Idaho. Senator Stennett asked if this change would compel the state stores to be open. Mrs. Schaefer said it would not. Senator Calabretta asked if the vote on this would require a two thirds majority. Mrs. Schaefer said only a simple majority was required. Senator Calabretta asked if the approval required either the commissioners approval or that of the voters. Mrs. Schaefer said either one or the other is required but not both.
MOTION	Senator Stennett made a motion that RS13591C1 be introduced to print. Senator Bilbao seconded the motion. The motion carried by a Voice Vote. Senator Richardson and Senator Darrington were recorded as voting no.

RS13696	Relating to election of School Board Trustees; Amend Sect. 33-502B, Idaho Code, to increase the time before an election when an election may be canceled due to the filing of a single candidate.
	Dr. Cliff Green from the School Boards Association stated that this proposal amends current law allowing a school district board of trustees or the school district clerk to declare a candidate elected when there is not an opposing candidate nor a declaration of a write-in candidate thirteen days prior to the election. This will eliminate the current eleven day waiting period. Senator Calabretta asked why we would want this change. Dr. Green said this is a clean up bill which will promote conformance. Senator Bilbao stated that currently it is difficult to get school board candidates and it takes a while to entice them so why would we want to shorten the opportunity. Dr. Green said that currently, the last date for a write in is 14 days prior to the election. After that time is dead space. So this change has no negative effect on write in candidates. Senator Darrington stated that it appears that this proposal is consistent with the procedures of other tax districts.
MOTION	Senator Darrington made a motion that RS13696 be introduced to print. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen announced that Vice Chairman Richardson will being chairing the meetings next week during her absence and Dean C. Sorensen would be filling in for her.
ADJOURNMENT	There being no further business, the meeting adjourned at 3:18 PM.

DATE:	February 2, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Vice Chairman Richardson, Senators Darrington, Dean C. Sorensen, Geddes, Davis, Stegner, Little, and Stennett
MEMBERS EXCUSED:	Senator Calabretta
MINUTES:	Senator Stennett made a motion that the minutes for January 30, 2004 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
	Acting Chairman Richardson welcomed the return of Senator Little to the State Affairs Committee and introduced Dean C. Sorensen who will be filling in for Senator Sheila Sorensen during her absence.
	Gubernatorial Re-appointment of Vernon Baker of St. Maries, Idaho to the Idaho Commission on Human Rights for a term expiring July 1, 2006
	Acting Chairman Richardson stated that Leslie Goddard, the Director of the Idaho Commission on Human Rights, would serve as proxy for Mr. Baker as he is unable to travel due to the inclement weather.
	Ms. Goddard stated that Mr. Baker has served one term on the commission and has been very conscientious about the meetings even though he frequently participates via phone conferencing. He is retired from the military and is a Congressional Medal of Honor recipient. He did appear before this committee in person for his previous appointment. Senator Stegner said he regretted not being able to meet Mr. Baker in person as he was not present at his last appearance.
	Acting Chairman Richardson thanked Ms. Goddard for appearing for Mr. Baker and said that the committee will vote on this re-appointment at the next meeting.
	Acting Chairman Richardson then welcomed General Kane before the committee to introduce the presenter of several military bills. General Kane stated that the committee can be very proud of the Guardsmen from Idaho that are serving in Iraq as they are doing a great job. He said there is a firefighting detachment who have served at several of the Black Hawk Crash incidents. Acting Chairman Richardson asked General Kane to communicate our great appreciation to them for their service. General Kane then introduced Colonel Jim Bevis, Judge Advocate General, to explain this legislation which is important to the well being of the National Guardsmen.
RS13810	Relating to the Idaho Hazardous Substance Response Act; to further define terms and provide implementation through the Bureau of Homeland Security
	Colonel Bevis stated that this proposal establishes the Bureau of Homeland Security in the Military Division of the Office of the Governor. Under this proposal the Bureau of Homeland Security supercedes and combines the functions of the Bureau of Disaster Services and the Bureau of Hazardous Materials. This will streamline these agencies and cover planning for acts of terrorism. Senator Darrington said that this bill would clean up the Idaho Code language and then effect the merger of these agencies.
MOTION	Senator Darrington made a motion that RS13810 be introduced to print. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS13821	Relating to Title 46, Militia and Military Affairs; to extend protections to Idaho National Guard members ordered to Federal active service.
	Colonel Bevis stated that this proposal amends Section 46-409 of Idaho Code by extending the protections of the Idaho Militia Civil Relief Act to National Guard members who are ordered to federal active service under Title 10, United States Code, for duty other than for training lasting 30 days or more. He said it provides litigation, including domestic relations. Senator Davis asked if the Federal Soldiers and Sailors Relief Act applied to both Title 32 and Title 10. Colonel Bevis said they do, but this proposal will fine tune the Idaho version forb these two titles. Senator Davis said he recalled the legislation from last year and he questioned expanding the Soldiers and Sailors Relief Act to apply to Title 10. Colonel Bevis stated that it is necessary to cover these two specific areas.
MOTION	Senator Stegner made a motion to introduce to print RS13821. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS13820	Relating to Title 33, Education; Chapter 37; Miscellaneous provisions relating to state institutions of learning
	Colonel Bevis stated that this proposal amends Section 33-3719, Idaho Code, by extending the education protections of the Militia Civil Relief Act to National Guard members who are ordered to federal active service under Title 10, United States Code, for duty other than training lasting 30 days or more.
MOTION	Senator Little made a motion to introduce to print RS13820. Senator Geddes seconded the motion. The motion carried by a Voice Vote.

ADJOURNMENT	There being no further business, the meeting was adjourned at 3:15 PM.

DATE:	February 4, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Acting Chairman Richardson, Senators Darrington, Geddes, Stegner, Little, Stennett, Calabretta and Dean C Sorensen
MEMBERS EXCUSED:	Senator Davis
MINUTES:	Senator Geddes made a motion that the minutes for February 2, 2004 be approved as written. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Re-appointment of Vernon Baker of St. Maries, Idaho to the Commission on Human Rights for a term expiring July 1, 2006
MOTION	Senator Calabretta made a motion that the committee approve the re-appointment of Vernon Baker. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor Mr. Baker in the senate.
RS13918	Relating to limitations on smoking in public places; Amending Section 39-5501, Idaho Code
	Acting Chairman Richardson stated that this bill is a correction to S1220 which is scheduled for hearing before the State Affairs Committee on Monday, February 9, 2004. This replacement bill is at the request of Senator Hill, the sponsor, in order to provide a correction.
	Senator Hill stated that the change in this corrective legislation is on page one, line 34 and is intended to broaden the definition of “bar”. It states that “bar” means any indoor area open to the public operated primarily for the sale and service of alcoholic beverages for on-premises consumption and where: (a) the service of food is incidental to the consumption of such beverages, or (b) no person under the age of twenty-one years is permitted except as permitted in Section 23-943, Idaho Code. He said if an area is restricted to adults only, they can elect to be exempt from the smoke free requirements. Senator Stennett asked if the 21 years of age exception is applicable twenty four hours a day or can it be a specific time period. Senator Hill said his understanding is that a bar and restaurant can be defined differently at different times of the day.
MOTION	Senator Stegner made a motion that RS13918 be introduced to print. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS13827	Relating to personnel system and non-classified state officers and employees; Amend Section 59-1607, Idaho Code, to clarify state employment policy on hours worked and overtime compensation for classified and non-classified officers and employees designated as executive
	Senator Ingram stated that this legislation was brought to them by the State Controllers Office as they have a need to solve some issues that have come up during the separation of employment process. In the past they have not tracked the time for classified versus non-classified which has resulted in some problems. This bill will cap compensatory time hours at a total of 240 and will help the state more closely mirror the federal statutes.
MOTION	Senator Stegner made a motion that the committee introduce to print RS13827. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS13839	Joint Resolution proposing an Amendment to Section 20, Article III of the Constitution, relating to gambling, to provide for games of chance to be operated pursuant to law within the boundaries of a historic mining district provided that the county commissioners of the mining district and two-thirds of the voters of the county or counties of the district allow such games to be played
	Senator Calabretta gave a brief history of the town of Wallace, Idaho and their continued economical struggle since the dramatic loss of revenue which occurred with the loss of mining. She said they have not sat back but have worked hard toward a better future. This included the development of the gondola and the promotion of tourism to that area. They now seek to add gaming to their recreational attractions in order to bring increased income to Shoshone County. The Tribal Casinos have demonstrated the economical potential of gaming. They would like an opportunity to improve their economy. The bill refers to their designation as an “Historic Mining District.” This proposal would be an effort to utilize existing local buildings and would not result in any big entrance of outsiders. Acting Chairman Richardson referred the committee to a letter he had received from the Mayor of Wallace, Idaho, Ronald G. Garitone supporting this bill. In it he sited a similar scenario which has developed in Deadwood, South Dakota. Senator Geddes stated that Mayor Garitone had proposed a five year probationary period even though it will require a constitutional amendment to be initiated. Senator Geddes said he has not had any experience with temporary constitutional amendments. Senator Calabretta said that there would have to be in acting legislation to implement a permanent process. She said they felt that having a trial period would discourage outside money. Senator Geddes asked about the wording on page two, paragraph two which allows for certain forms of gambling. Senator Calabretta said that it is the same level of gaming which is currently occurring in tribal gaming. Senator Geddes asked to what the phrase “games of chance” refers. Senator Calabretta said legislative services used existing language. Senator Geddes asked if Section D was contradictory to page one paragraph two with regards to the types of games allowed. Senator Calabretta said the intent is not additional types of gambling but rather gaming at this location.
MOTION	Senator Calabretta made a motion that RS13839 be introduced to print. Senator Stennett stated that although he had reservations, he supported Senator Calabretta having an opportunity to present this bill and he seconded the motion. The motion failed by a Roll Call Vote. Senators Richardson, Darrington, Geddes, Little and Dean Sorensen voted nay. Senators Stegner, Stennett and Calabretta voted aye. Senator Davis was absent.
RS13698	Joint resolution proposing an amendment to Section 20, Article III, of the constitution of the state of Idaho; relating to gambling, to provide for games of chance to be operated within the boundaries of any county provided that the county commissioners of the county and two-thirds of the voters of the county or counties of the district allow such games to be played
	Senator Calabretta stated that this bill is farther ranging than the previous bill, but is necessary as people in four different counties would like to have the economic opportunity to be on a level playing field with tribal gaming.
	Senator Little asked who would be the regulatory body for this gaming. Senator Calabretta said that follow up legislation would determine the structure and operations. Senator Calabretta said she understands the sensitive nature of this issue but there is a lot of frustration in her district. They have used caution to control outside influences.
MOTION	Senator Calabretta made a motion to introduce to print RS13698. Senator Stegner seconded the motion. The motion failed by a Voice Vote.
S1238	Relating to Capitol Endowment Funds; Amending Section 67-610, Idaho Code, to provide for the retention of earnings of the Capitol Permanent Endowment Fund, to provide for the deposit of proceeds
	Carl Bianchi, Director of Legislative Services, stated that he is an ex-officio member of the Capitol Restoration Committee. He stated the secondary role of this committee is the maintenance of the capitol building. He said last year over two million dollars was spent to protect the shell of the building and repair the upper dome and parapet. He said this involves coordination between the State Treasurers office, the Endowment Fund Investment Board and the Department of Administration. He provided a hand out for the committee which demonstrated how the money currently being used is from the Capitol Endowment Income Fund which only involves dedicated funds. None of these funds come from the General Fund. Now they are facing the challenge of how to do more with less and have determined that there is a way to generate increased revenue. They are proposing that the Timber Sales receipts be directed to the Capitol Endowment Permanent Fund where they can be invested for a better rate of return. Mr. Bianchi reviewed a handout which demonstrated the possible increased annual income as well as endowment core balance growth which may result from a change in investment strategies. He supports this legislation as it will provide predictable payments governed by the Endowment Funds Investment Board and because it could provide up to a sixfold increase in the fund balance.
MOTION	Senator Little made a motion that the committee send S1238 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
S1253	Relating to limitations on contributions to candidates; Amending Section 67-6610A, Idaho Code, to specify the limit on contributions from a county central committee to a candidate.
	Senator McKenzie stated that this bill raises the limit of the county central committee from $1,000 to $2,000 for legislative candidates. He responded to a question about aggregate limitations which he said applies to each primary and each election. He said the county central committees do not contribute to federal candidates. He said this is a good change as it strengthens the “grass roots” efforts of the parties. He said if local people work to raise funds, they should be allowed to spend them on the candidates they support. Senator McKenzie provided a handout of a letter from John Sandy, Chairman of the Idaho Republican Party, stating they support this legislation. Senator McKenzie stated that regardless of whether it is the majority or minority this change will strengthen local parties. Senator Calabretta asked if the County Central Committees have to complete financial disclosure forms. Senator McKenzie said that they do. Senator Calabretta asked if there is a possible scenario where a contribution could be made to a candidate using a central committee as a straw man. Senator McKenzie said he thought that would be a violation. Senator Stennett asked if there is a prohibition of federal candidates from contributing to county central committees. Senator McKenzie said he did not know of such a prohibition. Senator Stennett said then the county committee could get twice as much money for the local committee. Senator Darrington stated that McKain-Feingold Law requires that if parties run newspaper ads, they must comply with Federal Election Laws
MOTION	Senator Stegner made a motion that S1253 be sent to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senators Stennett and Calabretta requested to be recorded as voting no. Senator McKenzie will sponsor this bill in the Senate.
	Acting Chairman Richardson announced that it has not yet been determined whether the committee will meet on Friday.
Adjournment	There being no further business, the meeting was adjourned at 4:00 PM.

DATE:	February 9, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Calabretta made a motion that the minutes for February 4, 2004 be approved as written. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
RS13899	Joint Memorial to the President of the United States, George W. Bush, to the Senate and the House of Representatives; that the Congress should give strong consideration to both increasing the current mission and adding additional missions to Mountain Home Air Force base.
	Senator Kennedy stated that during 2004 and 2005, the U.S. Base Re-alignment and Closure Commission will again be studying the missions and performance characteristics of all bases in the United States and will be recommending closure of certain bases, or the reduction of the missions conducted at some of the bases. If adopted by the Legislature, this Memorial urges the U.S. Department of Defense and the U.S. Congress to give strong consideration to retain, and even expand, the current mission of Mountain Home Air Force Base. He said that reasons to maintain and increase their mission include that they have outstanding community support in the region and the state, that they have great quality of life, that there is a lack of encroachment around the base and that there are many military advantages for their continued mission. The military advantages include excellent training opportunities, a large ramp and runway, excess hangar capacity, a modern and realistic training area, a valuable supersonic training area and plenty of room to expand. Senator Kennedy stated that the economic impact based on 2002 data indicates that there are 4,312 military personnel who receive $148 million in payroll, there are 919 civilian personnel who receive $25 million in payroll, there are 5,900 military retirees living in southern Idaho who receive $97 million in payroll and that construction and procurement for the base amounts to over $79 million. These direct expenditures amount to $350 million annually. It is estimated that the military installations financial impact on the region is over $750 million annually. In addition, the employees and their dependants create an estimated 1,646 indirect jobs in the area. Mountain Home Air Force Base is among the top five employers in the State of Idaho. Senator Kennedy urges support of this Joint Memorial.

MOTION:	Senator Davis made a motion that RS13899 be printed and sent to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Kennedy will sponsor this bill on the floor of the Senate.
RS13957	Relating to independent expenditures; Amending Section 67-6611, Idaho Code, to provide the time which written statements must be filed.
	Senator Davis stated that this correction is to a bill passed last year which came from the Secretary of State. He said the legislature relied upon the language provided to it in furtherance of the disclosure time period; however, it is an error. Rather than reading “not less than,” it should read “not more than.”
MOTION	Senator Davis made a motion that RS13957 be introduced to print. Senator Calabretta seconded the motion. The motion carried by Voice Vote.
	Chairman Sorensen then stated that due to the volume of people wanting to testify, there would be a three minute limit. She said Senator Hill will introduce the bill.
S1283	Relating to limitations on smoking in public places; Amending 39-5501, to revise legislative intent
	Senator Hill stated that this legislation is about health. He said second hand smoke is the third highest cause of preventable disease, death, and disability. He said currently, non-smokers have no protection in public places. He said the American Lung Association rates the state of Idaho with an F for failure. He said he has reports from the United States Surgeon General, the National Academy of Sciences, and the American Medical Association which document the dangers of second hand smoke. He said second hand smoke hurts and kills. He stated that second hand smoke has four thousand chemical compounds in it. He said studies show that exposure to second hand smoke causes thirty times the number of cases of lung cancer than all other air pollutants. He said children and the elderly are particularly susceptible. They may suffer from pneumonia, asthma, bronchitis and ear infections. Senator Hill stated that the Center for Disease Control reports that second hand smoke likely accounts for more heart disease. He said thousands of Idahoans already suffer from asthma, heart disease, cystic fibrosis, and other diseases and they are unable to go in public places due to their intolerance to second hand smoke. He provided a hand out which compared the present situation with the changes provided in this bill. He stated that currently, in Idaho, there is no state law governing smoking in day care centers and private schools. Senator Hill said that the opposition will suggest that restaurants will be hard hit by decreased sales. However, independent studies indicate that they have actually experienced an increase. He said the opposition will suggest that this legislation is an infringement on businesses rights. However public health has long been regulated and the public is entitled to safe access to public areas. He said government should regulate for public safety, whether it’s to ensure the cleanliness of restaurant kitchens or good air quality in a day care or to keep drunk drivers off the road. He said in this bill they do try to accommodate smokers where possible in order to not deny individuals rights. Senator Hill said no one should be forced to breath second hand tobacco smoke. He said that in a poll by the Idaho Statesman 72.2% of the public agreed.
	Senator Stennett said there is a conflict in the bill as to who will determine what is a “bar” versus a restaurant. Senator Hill said that if the bar is in the confines of a restaurant, it is still a restaurant. He said if the food is incidental it remains a bar or if entrance is restricted to adults over the age of twenty one. He said the Department of Health and Welfare will establish the rules. Senator Stennett asked Senator Hill if he will sit in on the development of those rules and assure that restaurants can serve minors until a certain time and then convert to a bar. Senator Hill said that he could not offer that assurance as there is no way to write that into the law .
	Dr. Holly Lenz, a professor at Idaho State University, stated that side-stream smoke is generated at lower temperatures which forces smaller particulates into the lungs and contributes to heart disease as the alveoli in the lungs exchange oxygen. She said side-stream smoke contains ammonia, nitrogen oxide, benzine and two times the amount of nicotine and tar than in the cigarette. She said that as these irritants are transported, more bacteria gets into the body. She said studies show that the side-stream smoke in bars is 3.9 to 6 times higher than that in a home with a smoker. Dr. Lenz strongly supports this legislation. Kevin Settles is the owner of the Bardenay Restaurant and represents the Idaho Lodging and Restaurant Association. He opposes S1283. He referred to an article in todays Chicago Tribune which emphasized how vulnerable restaurants are to changes and how frequently they go out of business. He estimates that 20% of his customers smoke and 20% of his customers are minors which could have a big impact on his profit. He feels this legislation is confusing and has inadvertent consequences. He said he and his associates want to be able to participate in the legislative process. Senator Calabretta said they have many very small restaurants in her district and asked how he thought they would be effected. Mr. Settles said it depends on how they have developed their clientele. Senator Stennett asked him about the impact of disallowing minors during certain hours. Mr. Settles said he thought this legislation has moved too rapidly and they need a better understanding of that section.
	Stacey Hill, mother of three children, stated that her last months of pregnancy were uncomfortable as she worked to protect her then unborn son Cameron. Then, after his birth, when she passed through the exit of the hospital, he was first tainted by cigarette smoke. She said her husband Richie never smoked but was diagnosed with lung cancer when he was 27. Now he is sick and can not tolerate smoke. She said we must protect society from the devastation of second hand smoke.
	Julie Taylor, from Blue Cross of Idaho, presented a letter from the Manager of Applebee’s Restaurant, Jeffrey R. Cross, which explained that their non-smoking policy has had positive results including increased seating space and happier employees.
	John Wagers, owner of Idaho Candy Company, said they are a wholesale distributor of cigarettes. He said he is also health conscious as he is recovering from colon cancer. He said he goes to Mountain State Tumors Institute and has never experienced any wall of smoke as he entered or exited. He said he believes the legislature should seek to educate and not legislate and he opposes this bill. He said that the Idaho Millennium Fund dollars were meant for education, yet they have been directed to the general Fund. Senator Calabretta asked Mr. Wager if he felt legislation about health issues was inconsistent. Mr. Wager said that you can’t legislate everything and that if they identify the problem and educate, they would have a greater effect.
	Doug Dammrose, a physician and Vice President of Blue Cross of Idaho, stated that 40 years ago there was a landmark report from the Surgeon General which identified the dangers of smoking. These hazards extend to non-smokers. He said a study by the California Environmental Agency demonstrated that environmental smoke contributes to asthma, cancer, bronchitis, pneumonia and heart disease. He said this results in a loss of productivity and a considerable economic loss. They support this legislation.
	Mary Thomas, one of the owners of the Stage Coach Restaurant, said they are concerned about the effect S1283 will have on their sales which are declining. She said each new disruption to business impacts their livelihood. She said their bar sales are down $50,00 in one year. She said the restaurant portion of their establishment employs two thirds of the employees and a negative impact could force them to close. Senator Stennett asked Ms. Thomas if they allow children all day long. She said they do. Senator Darrington asked if Ms. Thomas wouldn’t agree that in older established restaurants, it is necessary to periodically re-vitalize and update. Ms. Thomas said they have never remodeled as repairs and maintenance are so demanding that is all they can keep up with.
	Liz Speier has worked as a waitress and was born and raised in Idaho. Her father died at age 62 from smoking. The corporation she now works for has gone to non-smoking and their profits have grown. She supports this legislation.
	Robert Bowen, a citizen testified in opposition to S1283. He stated that the government studies he has reviewed reported no such negative effects from smoking. He feels there is no evidence second hand smoke causes disease and that the people who complain have the option to leave. He said the industrial pollution over our city is more detrimental.
	Conrad Colby, retired from Boise State University where he taught Respiratory care. He provided a copy of the Phillip Morris Web Page where the last paragraph states, “We believe that the conclusions of public health officials concerning environmental tobacco smoke are sufficient to warrant measures that regulate smoking in public places.”
	Pam Eaton, President of the Idaho Retailers Association, stated that they oppose S1283. She said the retail side has concerns about enforcement, particularly at indoor malls and concerns about the restriction on designated employee break rooms for employers with less than five employees. They also are concerned about economic development and the negative impact on downtown re-vitalization if there are no restaurants.
	Dr. David McCluskey is a surgeon in practice in Twin Falls, Idaho. He said that tobacco is the number one cause of death and even though it is killing a lot of people, we are doing nothing about it. He said that 21% of his patients smoke and they account for 69% of health care costs. His office is smoke free. He doesn’t need to be told about the consequences of smoking because he holds the hands of dying patients and faces their families. Senator Richardson asked Dr. McCluskey what he thought about the earlier comments that there was no relationship between smoking and disease. Dr. McCluskey said the science is there and it is indisputable.
	Dr. Lynn Kammermeyer is a Medical Geneticist with the March of Dimes. She said they support this legislation. She said the March of Dimes mission is to improve the health of babies by preventing birth defects and infant mortality. She said passive or second hand smoke can be unhealthy for pregnant women and later, for their infants. Studies suggest that inhaling passive smoke during pregnancy doubles a non-smoker’s risk of having a low-birthweight baby. Babies who are exposed to smoke suffer from more respiratory illnesses and ear infections. Many of these consequences can inflict major emotional and economic costs on families and on communities. Senator Calabretta asked if smoking cessation is supported for WIC Mothers since they have a higher instance of smoking. Dr. Kammermeyer said they do offer options to young women to help them stop smoking. Senator Calabretta asked if those who smoke face a greater risk than those who experience second hand smoke. Dr. Kammermeyer said smokers have a greater risk but there is definitely risk from second hand smoke.
	Ryan Taylor, speaking as a citizen supports S1283. He is a former restaurant employee of a place where smoking was allowed and he was unable to escape the smoke while he worked there. He said workers need the ability to breathe clean air.
	Chris Thomas, is a Boise resident who writes college textbooks about restaurant equipment and ventilation systems. She said that air conditioning and heating systems in most eateries are designed for temperature control, not freshing the air. She said HVAC systems circulate the air. She supports this legislation.
	Philip Behm, said he has been effected by smoking and he supports tough controls. He has had a lung transplant and suffers from Alpha Orea which is a deficiency that leaves him unprotected against smoke. He doesn’t feel he should have to live in a bubble and he supports protection for those unable to tolerate the harmful components of smoke.
	Jason Egbert, a high school student, who suffers from cystic fibrosis, supports this legislation. He said environmental tobacco smoke acts as an irritant to his condition and to others who suffer from asthma and bronchitis. He feels his rights are infringed upon by second hand smoke.
	Brad Egbert, father of Jason, is keenly aware of the importance of clean air. He said the public at large has rights to be considered. He said 75% of the public supports this bill.
	John May is the General Manager of the Owyhee Plaza Hotel in Boise and he opposes S1283. He feels this decision should be a choice. His choice to be smoke free was driven by his customers who want a non-smoking facility. He is offended to be told how to run his business. He said the public will determine the need for non-smoking.
	Dr. Robert Smith is a physician with Primary Care whose forty five doctors support this legislation. He said in America every year deaths related to environmental smoke amount to the entire population of such towns as Twin Falls, Idaho. He speaks to thousands of fifth graders about not smoking and he has never had a parent say they want their children to smoke. He said we have the right to public spaces.
	Phil Homer, a legislative adviser for the Idaho Association of School Administrators, said they support the necessary steps to reduce the risk of secondary smoke to children.
	Brad Dixon, representing the American Heart Association, stated that they know this bill will help reduce second hand smoke exposure and will help to reduce heart disease. Senator Stennett asked if Mr. Dixon thinks that a facility can be both a bar and a restaurant and what about the concerns of the opposition. Mr. Dixon said we cannot exalt profit over the health and safety of our citizens. Senator Stennett asked about the question of enforcement brought up by Ms. Eaton. Mr. Dixon said that according to the Enforcement Section of S1283, the individual in charge of a location must respond to infractions. Mr. Dixon referred to an experiment in Helena, Montana where reduction in environmental smoke resulted in a 60% reduction heart attacks.
	Shirley Green, from Moscow, Idaho, stated that she was a smoker for thirty five years and now she is so thankful to be smoke free. She said the previous laws encouraged her to quit smoking. She said anything we can do to protect our children and grandchildren is important.
	Glida Bothwell, is a citizen who doesn’t go into bars where smoking is allowed. She likes to eat out and wants to see more non-smoking restaurants. She supports this bill and said she will make a point of patronizing non-smoking restaurants.
	Brad Hoaglin represents the Coalition for a Healthy Idaho. He said they support this bill. He has available a 58 page report on the economic impact of non-smoking facilities. He said people will still drink and eat out. He said this study is based on objective measures and appropriate statistical tests and no negative impact was indicated. He said many studies have biased outcomes as they are funded by the tobacco companies and their allies.
	Bonnie Haines represents the Idaho Hospital Association which represents nearly all the hospitals in Idaho. Hospitals have been smoke free for about twenty years. They see the negative results of smoking in hospitals. They support this legislation.
	Gary Raney, with the Ada County Sheriff’s Department, said that in his opinion since bars are not included in this legislation, there would be no great concern about enforcement other than with any other misdemeanor.
	Fred Riggers is a self-employed farmer from Nez Perce. He reported that when he and is wife moved into their old homestead farm house where smokers had lived, they tried to strip the walls and were shocked by the dreadful deposits they had to remove. After seeing that he doesn’t understand why anyone would want to smoke.
	Jennifer Johnson is a sales engineer who travels with her work and frequents many small diners and cafes in small towns. She asks for non-smoking seating but the effects of second hand smoke follow no matter where you are seated. She said one or two smokers can adversely affect everyone else. She said many small towns don’t offer a non-smoking choice. She has a survey of her experiences which is available for review. She said no smoking sections fail.
	Mike Fitzgerald, is Vice President of Idaho Lodging and Restaurant Association and the owner of Table Rock Pub and Grill. He said he was raised on a ranch and started smoking when he was twelve. He said then before their son was born, he quit. Now his son smokes so it seems we can’t always control outside influences. He is not against the entire bill but is confused about the “incidental food” issue.
	Bob Seehusen, the Chief Executive Officer of the Idaho Medical Association, said they strongly support this legislation.
	Mary MacConnell from the American Heart Association was asked by Megan Wardell to read a letter as she was unable to be present. The letter from Ms. Wardell stated that she had lost several family members to smoke related disease. She works at a smoke free restaurant now and she and her co-workers agree that all places should be smoke free.
	Kevin Settles concluded for the opposition to S1283 by stating that he felt this was an “Idaho We Want to Regulate Act.” He said that how this bill will be interpreted is a big gamble. He said the bill needs clarification so that restaurants can survive.
	Senator Brent Hill passed on concluding the support for the bill as he felt their case has been clearly made.
MOTION	Senator Davis made a motion that S1283 be sent to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senators Calabretta and Sorensen requested to be recorded as voting no. Senator Hill will sponsor this bill in the Senate.
ADJOURNMENT	There being no further business, the committee adjourned at 5:40 PM.

DATE:	February 11, 2004
TIME:	3:10 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Acting Senator Enid Lee Davis, Stegner, Little, and Stennett
MEMBERS EXCUSED:	Senator Calabretta
MINUTES:	Senator Geddes made a motion that the committee approve the minutes for February 9, 2004 as written. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS13939	Relating to the Idaho Commission on the Arts; to revise the declaration of policy
	Cort Conley from the Idaho Commission on the Arts, stated that the statutory sections governing the Commission On The Arts were enacted in 1967. Current Idaho Code 67-5608 contains the original provisions transferring to the commission the powers and duties of the Commission on the Arts and Humanities established by a 1966 Executive Order. This bill includes minor revisions reflecting changes in terminology over the last quarter century. It modernizes the nomenclature and updates the titles. Senator Darrington welcomed Mr. Conley to the committee and recognized him as an famous Idaho author.
MOTION	Senator Darrington made a motion to introduce to print RS13939. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS13912C1	Concurrent Resolution for the centennial celebration; extending appreciation and Congratulations to the family of D.L. Evans Bank.
	Senator Stennett stated that this is a resolution to acknowledge and honor the D.L. Evans Bank for one hundred years serving the banking needs of the people of Idaho and expressing appreciation for the many contributions that five generations of the D.L. Evans family have made to the state. Senator Darrington stated that their bank was one of the only banks to survive the Great Depression and that they still maintain a branch in Albion, Idaho. They have prospered as a family bank.
MOTION	Senator Little made a motion that RS13912C1 be introduced to print and sent to the floor of the Senate. Senator Richardson seconded the motion. The motion carried by a Voice Vote.

RS13956	Relating to the investment of Permanent Funds: Amending Section 57-720, Idaho Code, to clarify market value allocation between the Permanent Endowment Funds and the Earnings Reserve Funds
	Senator Cameron stated that this bill is a fix to the Endowment Fund Problem which the state of Idaho is facing. He said the Idaho Constitution requires that the Endowment Funds be kept whole from all losses. The current statutes were defined during the time of fixed assets. This legislation will adjust the time period by which investment losses incurred by the Public Schools Permanent Endowment Fund must be repaid. He said this legislation will provide a four to ten year window, includes a methodology for repayment and states how gains will be attributed to losses. Senator Cameron said failure to pass this bill would result in a negative impact of $119 million.
MOTION	Senator Stegner made a motion that the committee introduce to print RS13956. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
S1265	Relating to election of School Board Trustees; when an election may be canceled
	Dr. Cliff Green from the Idaho School Boards Association presented this bill. He said this proposal amends current law allowing school district board of trustees or the school district clerk to declare a candidate elected when there is not an opposing candidate nor a declaration of a write-in candidate thirteen days prior to the election. He said this will give the clerks more time to notify the public of no election. He said this change mirrors the changes made in other departments and brings the school trustees in line with code. Senator Richardson asked if the primary intent of this change was to save money. Dr. Green said the intent is to close the gap in time and get the word out sooner. Senator Little asked how the public is notified of board vacancies. Dr. Green said it is announced at public meetings and typically is published in local newspapers. Senator Stennett asked what announcement is required by law. Dr Green said he would have to check.
MOTION	Senator Richardson made a motion that the committee send S1265 to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Richardson will sponsor this bill in the Senate.
	Chairman Sorensen then asked Vice Chairman Richardson to conduct the meeting while she presented the next bill.
S1252	Relating to licenses to retail liquor; Amending Section 23-903, Idaho Code, to provide for the issuance of a license, subject to the approval of the mayor and the city council
	Senator Sorensen stated that the purpose of this legislation is to encourage tourism and economic development in Idaho’s smaller communities by allowing the Mayor and City Council of cities with a population of 5,000 or less to approve the issuing of a non transferable liquor license in exchange for fifteen million dollars or greater taxable investment in newly constructed lodging and hospitality facilities. She said the resulting stimulation of economic development and investment is good for Idaho. Senator Little asked if this was a concern for the new hotel in Cascade. Senator Sorensen said she has spoken with them and it appears they have been able to resolve the issue. Senator Richardson said that after all the discussion recently about the damage that comes from smoking, he is concerned about the damages that could result from alcohol promotion. Senator Sorensen stated that people are interested in building lodges in Idaho and in order for them to do that we must accommodate the same services that are available elsewhere. She said this type of hospitality does not necessarily equate to drunk driving. To encourage investors we must have a complete range of services.
MOTION	Senator Stennett made a motion to send S1252 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Richardson and Acting Senator Enid Davis voted nay.
	Vice Chairman Richardson then returned the chair of the meeting to Senator Sorensen.
S1282	Relating to the Personnel System and non-classified state officers and employees; hours worked and overtime compensation
	Steve Kenyon an attorney with the Idaho State Controllers Office, stated that there is a problem in current code regarding updates to the overtime provisions and this legislation will bring it into compliance. Currently, many employees are keeping unrecorded hours outside of the states record system which could cause serious problems with the Fair labors Standards Act as well as the Idaho Code. The purpose of this legislation is to promote honest, uniform reporting of hours worked by FLSA executive level employees and clarify that these employees are hourly employees unless Idaho Code sets their salary. This legislation enables FLSA executive level state employees to report actual hours worked and bank compensatory time for those hours worked in excess of 40 in a week. These compensatory time hours could not be paid and would be limited to 240 hours. He said these hours are not transferable if they move to a different department. He said there is no fiscal impact as they are not paid for comp time. He said the public expects accountability and the employees need tools to protect them. Senator Sorensen asked if it was possible that these employees might try to use the comp time to offset vacation time. Mr. Kenyon said their vacation time is capped at 336 hours. Senator Sorensen asked if there might be the possibility for abuse. Mr. Kenyon said that at the executive level they set their own hours. Senator Stennett asked if a person worked extra to try to offset vacation time they wanted the next week, what would stop them. Mr. Kenyon said the Agency Director approves all absences. Senator Ingram spoke in support of this bill and offered to respond to any other questions.
MOTION	Senator Stegner made a motion that the committee send S1282 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Ingram will sponsor this bill in the Senate.

	Chairman Sorensen recognized Acting Senator Enid Lee Davis who is filling in for Senator Bart Davis on the State Affairs Committee .
ADJOURNMENT	There being no further business, the committee adjourned at 3:40 PM.

DATE:	February 13, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Acting Senator Enid Lee Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Richardson made a motion that the minutes for February 11, 2004 be approved as written. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13842	Relating to retail sale of liquor by the drink; Amending Section 23-953, Idaho Code, to further define racing facility to include Motorsport racing
	Chairman Sorensen stated that the sponsor has asked us to hold RS13842 until the next meeting.
RS13972	Relating to Medical Indigency; Amend sect. 31-3504, Idaho Code, to eliminate the automatic lien provision upon application for financial assistance and to make a technical correction
	Senator Ingram asked that this bill to be introduced to print and then he said it would probably be directed to Local Government and Taxation. He said that currently there are 200,000 uninsured people in Idaho. When they have health problems, they cannot always afford to pay the utilities. They can go to the County Medical Indigency Program for help. After the first $10,000 of debt, the balance owed goes through the collection process. Idaho is the only state with an automatic lien law. After a review, this lien remains against the property. They have a stream of payments. If the owners need to get a loan against the property, their equity is encumbered by the county liens. This legislation seeks to repeal this process. Senator Ingram said this law is cruel and unusual and he asked the committee to introduce RS13972 to print.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS13972. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
	Senator Little asked about RS13972 being directed to the Local Government Committee. Senator Geddes stated that after a bill is moved to print by a privileged committee, it is then read across the desk. After that the Pro Tem decides where the bill will be directed. Senator Stegner said if the bill is to move forward they will need to identify a new fiscal impact statement. Senator Ingram said he understood and that the current budget period was all that was addressed in this statement of purpose.
RS13672	Proposing an Amendment to Section 1, Article III, of the Constitution of Idaho, relating to initiatives to provide that no initiative of the people enacted into law shall be subject to repeal in its entirety by the legislature, at any time, without its submission to the electorate at the general election
	Senator Werk stated that this RS13672 and RS13676 are related legislation. He said this bill states that if the legislature repeals a measure approved by initiative, the measure will be automatically placed on the next general election ballot. He said if the legislature repeals a bill, it should be for a good reason which is easily understood by the public. Senator Darrington said that a joint resolution is treated in every way as if it were a bill. Senator Little asked about the phrase “repeal in its entirety.” He said that although the hurdle originally set for an initiative has been lowered by urbanization and communication, we can’t look at every law and he opposes this change.
MOTION	Senator Stennett made a motion that RS13672 be introduced to print. Senator Calabretta seconded the motion.
	Senator Stegner said that he has tried to be supportive of the minority but he has difficulty supporting this bill. Senator Stennett said he has appreciated Senator Stegners’ support but he should also understand that Senator Werk has been asked by his district to pursue this change. He said rather than require 45,000 signatures again, the legislature should agree to stand up to scrutiny. Senator Calabretta asked why have the initiative process at all if the will of the legislature can overturn it without accountability to the public. She said originally the intent was for the legislature to refine the initiative but it was not intended to totally repeal it. She thinks that they must give the initiative process more respect. Senator Geddes said that although he is not a great historian, he would have to ask if we would have the same concerns if we ever tried to amend a law put in place by the people. He said we have a democratic republic rather than a pure democracy and sometimes we make difficult decisions which the people in the state do not like. He said recent history has demonstrated the equal weight of legislative law and the peoples law. He said this is counter to how it has been exercised over the years and we are on a slippery slope. Senator Stennett said the initiative process has brought about the Sunshine Report and the Fish and Game Commission and those laws have stood through the changes. He encourages a public hearing for this bill.
Vote	The motion failed in a Roll Call Vote. Senators Sorensen, Richardson, Darrington, Geddes, Davis, Stegner and Little voted nay. Senators Stennett and Calabretta voted aye.
RS 13676	Relating to initiatives and referendums; Amending Chapter 5, Title 67, by addition of a new section, to qualify the authority of the legislature to repeal, in its entirety, a statute or measure approved by initiative until the voters approve of the repealer, to provide that such a repeal will be of temporary effect
	Senator Werk stated that with the failure of RS13672, he would not pursue RS13676.
	Senator Calabretta asked that the RS be returned to the sponsor. Chairman Sorensen said without objection, the RS will be returned to the sponsor. There was no objection.
S1264	Relating to local liquor stores and distributing stations; Amend Sect. 23-307, Idaho Code to provide an exception to the prohibition on sales delivery of any alcoholic liquor in, on, or from the premises of any state liquor store or distributing stations on Sundays
	Suzanne Budge Schaefer who represents the Distilled Spirits Council of the United States presented S1264. She stated that this bill seeks to align state liquor and alcohol law with the local county option regarding liquor store sales on Sunday. Current law already allows Sunday sales for other types of alcohol such as beer, wine and liquor by the glass. She said that most of the state contract stores (about 100 in rural Idaho) are already open on Sunday now. She said that from a shopping and convenience standpoint, Sunday is the second biggest shopping day of the week. This change is important also due to the tourism traffic on week ends. She said additional sales would add to the State Treasury. Senator Geddes asked why the stores have been closed in the past. Mrs. Schaefer said she could ask Dyke Nally from the Liquor Dispensary. Senator Geddes asked why the Fiscal Impact only stated the positive results. Mrs. Schaefer said the analysis used had evaluated the cost of the state liquor stores being open. Senator Geddes asked if in the counties where liquor is sold by the glass there might be a negative impact . Mrs. Schaefer said she would let Dyke Nally respond to him.
	Dyke Nally from the Idaho Liquor Dispensary, stated that Sunday sales have become very common as beer, wine and alcohol by the glass are currently available. He said the prevention of sales on Sunday dates back to the days of Prohibition. He said national figures have not shown increased consumption. He said there has not been any noted increase in social problems. He said the primary focus is for tourists and resort areas. He said the contract stores are open anyway so there would be no increased operational expense. He said they have no plan to open the state stores. Acting Senator Enid Davis asked if there is not an increased consumption, how could they generate $750,000 additional revenue. Mr. Nally stated that people tend to drink higher quality, more expensive products than they used to so their has been a market share shift. Senator Geddes asked if new sales would be direct competition with establishments that sale liquor by the glass. Mr. Nally said they are actually two different markets so he doesn’t see a competitive issue. Senator Stennett asked if contract stores were subject to the same restricted time limits as state stores. Mr. Nally said contract stores are privately owned and they have more flexibility.
	Kylene Jenkins from Contract Liquor Store #280 spoke in support of this bill. She said the responses she has received from the other contract stores has been very positive. They support this bill. Rick Walth from Mainstreet Beverage in Emmett, Idaho spoke in support of S1264. He said part of his business mission is to make consumer purchases convenient. He said currently tourists are disappointed when they can’t purchase on Sunday. He said the additional incremental sales would help small businesses in rural areas. He stated that the negative impact of being unable to sell on Sunday is even more severe in years when the main holidays fall on Sunday. Senator Stennett asked Mr. Walth what his estimated margin is. Mr. Walth said it is about 8%. Greg Koenig from Koening Distillery and Brewery in Caldwell, Idaho said that his business has been recognized internationally for there quality spirits and they attract many European visitors each year. He said they are only open on Saturday and Sunday for tours. He stated that they have been negatively impacted by being unable to sell on Sunday. Pam Eaton, President of the Idaho Retailers Association, spoke in support of S1264. She said of the 100 contract stores, the majority of them are grocery stores and are open on Sunday. Currently, they have to block off the liquor area on Sundays. She said these small businesses need all the sales they can get and this bill presents a win/win proposition. Senator Richardson voiced his concern that society could not afford anymore of the negative effects of alcohol and he stated that he opposes this bill.
MOTION	Senator Stegner made a motion that the committee send S1264 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote
H500	Relating to an election candidate disagreeing with recount results; Amend Sect. 34-2308 to provide when a candidate may appeal the results of a recount
	Bill Van Tagen, the Deputy Attorney General, stated that this bill grew out of concerns that developed during some recounts of the last elections. In several different situations losing candidates appealed. This situation then identified some deficiencies in the Idaho Code. He said there was no clear right of the candidate to appear to argue his case and this change needs to be in place before the next election. He said page one, line 10 identifies that any candidate can appeal, Line 26 lays out the appeal process, and Line 34 allows the opposing successful candidate to respond. Chairman Sorensen asked what the costs might be related to this new procedure. Mr. Van Tagen said that costs could be considerable depending on the campaign and the location. Chairman Sorensen then asked about what the estimated range might be. Mr. Von Tagen said it could be in the thousands but up to now, there have not been that many cases. Senator Stennett asked if there is any state statute that awards attorneys fees. Mr. Van Tagen said he was not aware of any. Marty Durrand from the American Civil Liberties Union, stated that they like that this bill provides for due process and the broadening of laws. They do have a couple concerns which she identified in a hand out to the committee. She said they felt Line 36 should say all parties are required to be served with the appeal. She said their biggest concern in Section 7 is that the person who loses is required to pay the attorneys fees. This would obviously chill the process since most people couldn’t afford to pay. She said this bill could be improved and they recommend it be sent to the amending order. Brain Kane, from the Attorney Generals office, said that due to first amendment rights, those overlooked in the appeal would have a higher right. He said that when a candidate appeals, they have to identify the specific questionable ballots. So when a candidate decides to appeal they can take a hard look at the strength of the case first. Senator Stennett asked about the specific number of ballots questioned in the Butte County Sheriff election. Mr. Kane said it was 12 ballots. Senator Little stated that the “bear the cost” phrase made him nervous especially if the case involved travel expenses. Senator Little made a recommendation that the committee send H500 to the fourteenth order where they might insert the word “reasonable” to qualify the cost. .
MOTION	Senator Stennett made a motion that the committee send H500 the fourteenth order for amendment. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Stennett will sponsor this bill in the Senate.
H534	Relating to open public meetings of governing bodies; to revise requirements using telecommunication devices
	Leslie Goddard, Director of the Human Rights Commission, stated that this is a small amendment to the open public meetings law. She said it will provide for the allowance of telephone conferencing at meetings. She said the Human Rights Commission currently has nine commissioners, seven of which live out of town. This change will help them to satisfy state statutes of attendance at commission meetings which occur monthly and will provide financial savings.
Motion	Senator Little made a motion that the committee send H534 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
H561	Relating to notices for Elections; Amend Sect. 34-602, to specify information to be contained in notices
	Tim Hurst from the Secretary of States Office, stated that this bill pertains to notice of elections and is a result of the Help America Vote Act. The counties already notify the public of the polling places and this would require that they also publish information about the accessibility of them.
MOTION	Senator Stennett made a motion that the committee send H561 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
H562	Relating to the conduct of elections; Amend Sect. 34-303, to authorize appointment of students to election boards
	Tim Hurst presented this bill as an attempt to increase the awareness of the electoral process to the young people of Idaho. He said that studies indicate that the lowest turn out in elections is among 18 to 26 year olds. This bill would appoint student poll representatives to help young people become aware of their civic responsibility. Senator Calabretta asked if the student representative would be to replace an existing representative. Mr. Hurst said that currently there is no limit on the number of representatives so they could be in addition or a replacement. Senator Calabretta asked if the current statute assumption is eighteen years of age. Mr. Hurst said though that may be the assumption, seventeen year olds can be poll representatives.
MOTION	Senator Richardson made a motion that the committee send H562 to the floor of the Senate with a do pass recommendation. Senator Darrington seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen expressed appreciation to Acting Senator Enid Lee Davis for her service to the committee and the legislature.
ADJOURNMENT	There being no further business, the committee adjourned at 4:40 PM

DATE:	February 16, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MINUTES:	Senator Calabretta made a motion that the committee approve as written the minutes for February 13, 2004. Senator Little seconded the motion. The motion carried by a Voice Vote.

RS14099	Relating to independent expenditures; Amend Sect. 67-6611, to provide the time in which written statements setting forth certain expenditures must be filed
	Senator Davis stated that this RS replaces RS13957 which was heard and introduced to print from the State Affairs committee on February 9, 2004 and became S1297. Since then it was determined that S1297 had failed to include the Emergency Clause which necessitated this corrected bill.
MOTION	Senator Calabretta made a motion that RS14099 be introduced to print. Senator Davis seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen then asked Vice Chairman Richardson to chair the meeting while she presented RS14073.
RS14073	Relating to the Idaho Employer Alcohol and Drug Free Workplace Act; to provide certain eligibility requirements for contractors relating to state construction
	Senator Sorensen stated that this is a simple bill which proposes that any contractors or sub-contractors who are approved to work for the state of Idaho will be required to participate in the Idaho Employer Alcohol and Drug Free Workplace Act, Title 72, Chapter 17.
MOTION	Senator Davis made a motion that the committee introduce to print RS14073. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
	Vice Chairman Richardson then returned to chair of the meeting to Chairman Sorensen.
RS13842	Relating to retail sale of liquor by the drink; Amend Sect 23-953, to further define racing facility to include Motorsport racing Senator Stegner spoke for Senator Compton . He said that this proposed amendment would extend to auto racing venues the same rights which horse racing tracks have to obtain a limited liquor license.
MOTION	Senator Stegner made a motion that the committee introduce to print RS13842. Senator Calabretta seconded the motion. A Roll Call Vote passed with Senators Sorensen, Stegner, Little, Stennett, and Calabretta voting aye. Senators Richardson, Darrington, Geddes, and Davis voted nay.
RS13969C1	Relating to bribery and corruption; Amend Sect. 18-1356, to prohibit public servants from soliciting, accepting, or agreeing to accept any pecuniary benefit from certain persons
	Senator Ingram stated that in his twelve years in the legislature, he has watched the reputation of public servants decline. He said this is a short revision to Section 18-356 which is intended to help improve public perception. He said it is easier to say no if you have to say no. Senator Calabretta asked if Line 35 actually strengthened the bill. Senator Ingram said it states that no public servant shall accept certain things. Senator Calabretta said keeping it simple sounds good to her.
MOTION	Senator Calabretta made a motion that the committee introduce to print RS13969C1. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS13935	Senate Concurrent Resolution to support the state of Israel
	Senator Sweet stated that this resolution is to convey support to the state of Israel in their resistance to terror. He said the United States stands with Israel and supports their right to self defense.
MOTION	Senator Davis made a motion that the committee introduce for print RS13935, a concurrent resolution, and then ask that it be returned to the State Affairs Committee. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS14053	Relating to the American Heritage Monument; Amend Chapter 16, Title 67, to provide for a display of the American Heritage Monument in the Capitol Building and provide a design committee.
	Senator Sweet stated that it seems particularly fitting on this Presidents Day to recognize and reconfirm the importance of our American Heritage. He said that his research identified many documents with historical value but there are seven which he thinks have particular significance. They are the Magna Carta, Mayflower Compact, Sir Edward Cole and William Blackstone’s Rules of Law, the Fundamental Orders of Connecticut, the Declaration of Independence, the Ten Commandments, and the Preamble and Declaration of Rights from the Idaho Constitution. He said this monument would be designed to convey the historical and legal importance of our heritage. He said the monument would be privately funded and supervised by a design committee composed of three Senators and three Representatives. Senator Richardson asked if such a monument would just recognize these documents or what was planned. Senator Sweet said the final design is left up to the committee and would need to incorporate the major elements in the display. Senator Calabretta asked if copies of these documents were already available in Idaho libraries. Senator Sweet said they probably were. Senator Calabretta said there are numerous monuments in the capitol including the Miners Monument and asked why we need this one. Senator Sweet said it is important to show our children their heritage. He said the teaching about the founding of our country seems to be incomplete. Senator Sorensen asked if such a monument might result in a law suit. Senator Sweet said this monument is designed within the parameters that recent court decisions have issued. Senator Little referred to page two, Line 19 which describes the display of the monument. He asked if Senator Sweet was saying that the documents in the monument were in fact up to the will of the design committee. Senator Sweet said that ultimately they are up to the design committee. Senator Davis referred to page two, line 11 which contains the “essence” language. He said lines 13 through 43 on page one and lines 1 through 4 on page two are very specific findings regarding the monument. He asked if those lines specifically were assigned to the monument, word for word, then the essence would be fulfilled. Senator Sweet said that sounded valid to him. Senator Calabretta asked if any of these documents address separation of church and state. Senator Sweet stated that he was not aware of any documents that speak specifically to that other than those that come from the courts. Senator Stennett asked what was the emergency in getting this bill started. Senator Sweet said they wanted to begin the fund raising. Senator Stennett said he was concerned about no provision for political balance. Senator Stegner said although he was not that familiar with the previous procedure for monuments, he questions whether we need a statute to authorize a monument. Senator Sweet said he does not know the specifics of all monuments but according to Legislative Services, the Legislature controls the third and fourth floors and the basement. Senator Little referred to Article 1, Section 4 of the Constitution which states that no person shall be forced nor shall there be any preference by law of any specific religion. Senator Sweet said that there are existing monuments which have scripture and prayer. He said they have gone the extra mile to make sure they are on solid ground and can meet the court “tests.” Senator Davis said we are in the Ninth District Court who recently removed “under God” from the Pledge of Allegiance. He asked Senator Sweet if he has sought the Attorney Generals’ opinion about the language in this bill. Senator Sweet said they do have an informal opinion and the Attorney General agrees it is written in a constitutional manner. However, he did say they cannot predict what the courts might do in light of what and how it is actually constructed. Senator Sweet said they have not favored any of the specific documents and have tried to accommodate the courts. Senator Davis asked if the opinion from the Attorney Generals office occurred since Judge Lodge made his ruling on the removal of the Ten Commandments Monument from the park. Senator Sweet said that ruling has to do with the city acting unconstitutionally in removing the monument, not with the Ten Commandments.
	Senator Davis said Senator Sweet had talked about the Fifth Circuit Court decision. He asked if it was Senator Sweets’ purpose to display the Ten Commandments and hide it among the other documents. Senator Sweet said that his intention is to identify the most significant historical documents that had the greatest impact on the founding of our nation. He said the civil codes of law are a part of our history. Senator Stegner asked that in light of the current controversy over the Ten Commandments and the possibility that the state might get involved in significant litigation, would Senator Sweet accept the possibility of amendment to this bill to remove the Ten Commandment reference. Senator Sweet stated that we cannot have an accurate historical monument and exclude the Ten Commandments. Senator Little said that he is also concerned about the rest of the text of the document and he thinks it will need further research particularly with regard to the specific documents identified. Senator Sweet said there are a lot of appropriate documents to consider but physical restraints limit the number of documents that can be presented. Senator Stennett said the Fiscal Impact statement was inadequate as it fails to address the cost to defend a law suit. Senator Sweet said that same question could be asked about any law passed on the floor of the Senate. He said such a suit is not a major consideration. Senator Stennett said this has been tested in the courts. Senator Sweet said similar displays to this one have been found to be constitutional if they pass the “lemon” test. He said they have followed closely the courts parameters. Senator Stennett asked Senator Sweet if he knew what the cost has been to the state of Alabama for the litigation there. Senator Sweet said that case is nothing like this proposal, it is not relevant, and he wouldn’t know the cost.
MOTION	Senator Richardson made a motion that the committee introduce for print RS14053. Senator Davis seconded the motion. In a Roll Call Vote the motion carried. Senators Richardson, Darrington, Geddes, Davis, and Little voted aye. Senators Sorensen, Stegner, Stennett and Calabretta voted nay.
	Chairman Sorensen apologized to Nicole LeFavour since time restraints prohibited the committee from being able to hear the remaining bills on this day. She said they will be re-scheduled for the next meeting.
ADJOURN:	The committee adjourned in order to return to the floor of the Senate at 3:55PM.

DATE:	February 18, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Davis made a motion that the committee approve as corrected the minutes for February 16, 2004. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Re-appointment of Dyke Nally of Boise, Idaho as Superintendent to the Idaho Liquor Dispensary to serve for a term expiring January 4, 2005
	Dyke Nally has been the Superintendent of the Idaho Liquor Dispensary since 1995. They operate 152 stores, 52 of which are state stores. They had $85 million in sales this year. He said they have a wide product selection and a good training program. Since the purchase of their new warehouse here in Boise they have saved tax dollars. They employ 230 full and part time employees. They have hired a controller and have had no new audit findings for the last three years. He said Idaho has low per capita consumption and ranks 38^th in sales in the nation. He said the Dispensary is a profitable business for the state and contributes to the General Fund. Senator Stennett said that since the recent discussion in this committee about Sunday sales, he would like assurance that the contract stores will be the beneficiaries. Mr. Nally said that change is primarily for the contract stores with the possible exception of high tourist areas.
	Chairman Sorensen announced that the vote on Mr. Nallys’ re-appointment would be held at the next meeting.
RS14147	Relating to fish and game; Amend Sect. 36-1406, to provide that prosecutions for specified fish and game misdemeanor offenses must be commenced within five years after commission of the offense.
	Senator Stennett stated that this bill is being requested to be introduced to print by the unanimous consent of the Resource and Environment Committee and their Chairman Noh.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS14147. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
RS13982C1	Relating to the Public Utility Regulation; Amend Chapter 5, Title 61, by addition of a new section to establish a winter moratorium on termination of gas or electrical services for customers with children, elderly or infirm members when the customer is unable to pay; to create a new utility based supplemental low-income energy assistance fund
	Nicole LeFavour, the Legislative Advisor for the Idaho Community Action Network(ICAN), presented this bill on behalf of those with low incomes. She stated that her three bills address four issues of the winter shut off program of the Public Utility Commission. Her constituents are seeking to extend the winter moratorium months, change the current monthly update required for medical certificates, open qualification of new customers, and design a funding mechanism. Ms. LeFavour said their members are facing steep increases in heating costs and medical services. They urgently need assistance just to keep up with increasing expenses. Senator Sorensen asked whether these changes had been considered in concert with the Public Utility Commission(PUC). Ms. LeFavour said that the PUC does their rule making separately and that is why they are seeking help from the Legislature. Senator Calabretta said in some cases the committee members feel the PUC has agreed to include ICAN in their negotiations. Ms. LeFavour said the rule making is done annually and her members are not always able to participate then. Senator Calabretta said that it is difficult for some to understand how grave this situation can be. Where she lives in Shoshone county the winters are long compared to Boise. She asked if a meeting was held with the PUC, and if Ms. LeFavour could provide more information about the needs of ICAN. Ms.LeFavour said she does have additional information about their members available but there are not enough funds now. Senator Richardson said that he was confused as the utilities have told him that there are currently programs available such as Project Share and Project Warmth. He said perhaps she needs to meet with them and clarify the various options that are available and then form some clear conclusions. Ms. LeFavour agreed a hearing would be good but she asked that the committee say that the intent of the legislature is to examine this situation. Senator Stegner asked about the funding mechanism. Ms. LeFavour said it is somewhat left open but asks for a surcharge of 12 cents per month on electrical consumers. Senator Geddes stated that he admires Ms. LeFavour for her efforts on behalf of those with low income. However, he is concerned she may do more harm than good if this mandatory charge looks like a tax. Consumers then may not participate in the existing voluntary projects. Ms. LeFavour said the details need to be worked out. However, she feels as a consumer, she would be willing to pay the surcharge so her neighbors aren’t cold in the winter. She said people who give voluntarily see the need as an urgent concern. Senator Calabretta said she appreciated Inter Mountain Gas and their efforts. However their voluntary program has had a less than sterling performance and has varied greatly from year to year. Senator Little said he was concerned that there is no means test and they can qualify if they have a child under 18 or are over the age of 62. Ms. LeFavour said this wording is the same as is currently written and could be changed.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS13982C1. Senator Davis seconded the motion. The motion failed in a Roll Call Vote. Senators Sorensen, Richardson, Darrington, Geddes and Little voted nay. Senators Davis, Stegner, and Calabretta voted aye. Senator Stennett was not present at the time of the vote.
RS13943C1	Relating to Public Utility Regulation; Amend Chapter 5, Title 61, by the addition of new section to establish a moratorium on termination of gas or electrical services,
	Nicole LeFavour stated that this bill is confined to asking for an expansion of the winter moratorium. It asks that the months of November and March be included.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS13943C1. The motion died for lack of a second.
RS13946C1	Relating to Public Utility Regulation; Amend Title 61, by addition of a new Chapter 16, to provide legislative intent and to require the Public Utilities Commission to create universal system benefits program for low-income energy assistance
	Senator Calabretta asked the committee to return RS13946C1 to the sponsor. Chairman Sorensen stated that without objection the RS would be returned to the sponsor. There was no objection.
RS14046C1	Relating to ethics in government; providing legislative intent; Amend Chapter 7, Title 59, to provide a limitation on persons appointed to a board, council, or commission
	Senator Burkett stated that the purpose of this bill is to enhance citizen participation in government. He said it will ensure that citizens serving on Idaho’s boards, councils, and commissions are drawn from a wide segment of the citizenry and it limits citizen appointments to boards and commissions to one per person. He said line 27 is the operative language. He said it does not apply to elected positions. Senator Sorensen asked if it applied to all boards. Senator Burkett said it applies to boards created by state statute. Senator Little asked if Joe Farmer is on the Chick Pea Board and then is asked to be on the Education Board, would this bill require him to quit one. Senator Burkett said he would have to choose. Senator Geddes referred to Linda Lee of Soda Springs as she is on the City Council and on the School Board and asked if she would have to choose. Senator Burkett said elected positions are not affected. Senator Calabretta asked why we need this additional legislation. Senator Burkett said we need to spread the power to the people and have a broader based participation. Senator Davis stated that if there was a vacancy on the City Council, which is created by statute, then this bill as written would apply. Senator Burkett said a council funded by the government was not covered. Senator Davis said the bill reads board, council or commission and asked how the government funding is a consideration. Senator Burkett said the intent of the drafters was not to include local government. Senator Davis asked how much the bill had to do with the recent appointment and confirmation of Phil Reberger to the Idaho Judicial Council. Senator Burkett said the Reberger case was the “focal point” of what brought up the issue, but ironically it wouldn’t affect Reberger because just one of his appointments would qualify. Senator Davis stated that many members of the legislature are very active and serve on numerous committees and he asked if this bill is the antithesis of the Idaho Legislature. Senator Burkett said he did not think so, as elected and appointed positions are not affected and they are focusing on citizens positions. Senator Sorensen asked how many positions this would affect. Senator Burkett said that from the records in the Lieutenant Governor’s office it appeared about ten to twenty five positions. Senator Sorensen asked how many boards are state funded. Senator Burkett said he was not sure. Senator Stegner said it appears most of the positions were gubernatorial appointments and he asked if this bill would deny the governor his choice of appointments. Senator Stennett said that it seems there is an issue here and he supports having a hearing.
MOTION	Senator Stennett made a motion that the committee introduce for print RS14046C1. Senator Calabretta seconded the motion. The motion failed in a Roll Call Vote. Senators Sorensen, Richardson, Darrington, Geddes, Davis, Stegner and Little voted nay. Senators Stennett and Calabretta voted aye.
S1266	Relating to the Idaho Hazardous Substance Response Act; to further define terms and provide for implementation through the Bureau of Homeland Security
	Colonel Bevis, State Judge Advocate, stated that this legislation re-titles the Bureau of Disaster Services. He said this proposal establishes the Bureau of Homeland Security in the Military Division of the Office of the Governor. Under this proposal the Bureau of Homeland Security supercedes and combines the functions of the Bureau of Disaster Services and the Bureau of Hazardous Materials.
MOTION	Senator Davis made a motion that S1266 be sent to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
S1267	Relating to Title 46, Militia and Military Affairs; to extend protections to Idaho National Guard members ordered to federal active status.
	Colonel Bevis stated that last year the Soldiers and Sailors Relief Act was extended to members of the National Guard on active duty. This proposal amends Section 46-409, by extending the protections of the Idaho Militia Civil relief Act to the National Guard members who are ordered to federal active service under Title 10, United States Code, for duty other than for training lasting 30 days or more. Senator Little asked about the Fiscal Impact statement. Colonel Bevis said the main consideration in education is extending of credit for the next semester which has minimal impact. Senator Davis extended his appreciation to Colonel Bevis for the additional information he received about this bill.
MOTION	Senator Little made a motion that the committee send S1267 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
S1268	Relating to Title 33, Education; Chapter 37; Miscellaneous provisions relating to state institutions of learning
MOTION	Senator Davis made a motion that the committee send S1268 to the floor of the Senate with a do pass recommendation Senator Calabretta seconded the motion. Senator Richardson will sponsor this bill in the Senate.
S1305	Relating to the Idaho Commission on the Arts; Amend Sect 67-5601, to revise policy, to strike obsolete provisions, to add services
	Dan Harpole, the Executive Director for the Idaho Commission on the Arts, stated that this legislation was a housekeeping bill necessary to modify the Idaho Code to more accurately reflect the activities of the Commission. He said that after processing S1305, he became aware of some additional corrections and so he brought RS14152 to the committee today to provide those corrections. He said these changes reflect the will of the Commission and their current practices. However, he has now realized that Section 7 of the bill is covered in a prior section of the bill and therefore should be omitted.
MOTION	Senator Darrington made a motion that the committee introduce for print RS14152C1 with the correction authorized by the director. Senator Calabretta seconded the motion
Substitute Motion	Senator Davis made a Substitute Motion that RS14152 be returned to the sponsor and a new correct RS be prepared for the committee. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
S1306	Relating to the investment of Permanent Funds; Amend Sect. 57-720, to clarify market value allocation between the permanent endowment funds and the earnings reserve funds
	Senator Cameron stated that the Legislature faces a difficult situation due to the loss of endowment fund earnings. He said that unfortunate timing getting into the market had resulted in several million dollars of loss. By statute, the Corpus must be maintained. He provided two handouts for the committee. He said the purpose of this legislation is to adjust the time period by which investment losses incurred by the Public Schools Permanent Endowment Fund must be repaid. The current four- year repayment horizon was originally established at a time when endowment funds were invested in interest-bearing instruments with lower variability of capital gains and losses. In addition, all revenue from timber receipts was deposited in the Permanent Fund, more than making up for any potential loss of value. Senator Davis asked if in “simple terms” this means that this bill will provide a more predictable funding level regardless of what the market does. Senator Cameron said the bill does two things. First it allows losses to be paid back over a ten year window and second, because we recognize there is a loss in value over time, any gains cannot go the beneficiaries but to the loss. Senator Davis asked if there is adequate protection of the Corpus so distribution does not occur while there are losses. Senator Cameron said he believes it is protected and the reserve fund adds to that protection. Senator Sorensen questioned on page two whether the loss is just paid for the previous year or for the ten year look back. Senator Cameron said if it is possible to pay more than just the previous years loss then they may pay more. Senator Sorensen asked what if we took a $100 million hit. Senator Cameron said it would depend on what happened over the next twelve month period as it runs on a rolling time frame. He said if after ten years it is not made up, then there would be a problem. Senator Davis asked how other states are resolving these similar challenges. Senator Cameron said he was not sure but he does know that other states changed to the variable market return, they just didn’t have as bad of timing as Idaho.
	Matt Hardson, the Manager of the Endowment Investment Board, stated that he is not aware of another state that has to recover losses. Senator Calabretta stated that the intent of the makers of the Constitution was clearly that they wanted the corpus of the fund maintained. She asked what happens to the entities funded by the endowment. Senator Richardson asked if normally when we have a market dip, does inflation parallel it. Senator Cameron said there is some correlation between the market and downturns. Senator Davis referred to Article IX, Section 3 where it stated “As defined and prescribed by law, the state shall supply losses to the public school permanent endowment fund, excepting losses on moneys allocated from the public school earnings reserve fund.”
MOTION	Senator Davis made a motion that the committee send S1306 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT	There being no further business, the committee adjourned at 4:45 PM.

DATE:	February 20, 2004
TIME:	3:15 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen and Senators Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	Senators Darrington, Richardson, and Davis
MINUTES:	Senator Calabretta made a motion that the minutes for February 18, 2004 be approved as written. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Re-appointment of Dyke Nally of Boise, Idaho as Superintendent to the Idaho Liquor Dispensary to serve for a term expiring January 4, 2005.
MOTION	Senator Little made a motion that the committee recommend to the full Senate the re-appointment of Dyke Nally as Superintendent to the Idaho Liquor Dispensary. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS14167	Relating to purchasing and Public Works Contracts by the state of Idaho, Amend Chapter 57, Title 67, add a new section to provide for health insurance requirements for vendors and public works contractors
	Senator Stennett stated that the purpose of RS14167 is to discourage businesses that pass off the cost of doing business onto other tax payers by not providing health insurance for their workers which then results in them having a competitive advantage over those who do provide insurance. He said it applies to only employers with over 25 employees and requires that they must provide health insurance to 80% of their employees. He said this establishes a platform to do business in Idaho and will help ward off the escalating health care costs to the state. Chairman Sorensen asked if the employer will have to pay the full amount. Senator Stennett said the bill does not stipulate how the cost is paid. Senator Little asked if Walmart would be required to provide insurance. Senator Stennett said if they do business with the state of Idaho, they would have to provide insurance to their employees. Senator Stegner said the fiscal impact statement suggested no increase cost to the state but restricting potential suppliers to the state could have a adverse affect. Senator Stennett stated that it is far more expensive for business to shift the cost for insurance onto other tax payers.
MOTION	Senator Calabretta made a motion that RS14167 be introduced for print. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS14105	Relating to County-based Intermodal Commerce Authorities; Amend Title 70 by addition of new Chapter 22, to authorize a county-based intermodal commerce authority
	Senator Cameron stated that this proposal creates a new Section 70-2201, authorizing creation of a county-based intermodal commerce authority. The local commerce authority shall not have taxing authority, and is designed to create, stimulate and advance commerce, economic development in the local jurisdiction, and for all Idaho. Any board of county commissioners may create or abolish the intermodal commerce authority. He said this idea needs a lot of discussion and he is asking that this bill be introduced for print so that it may be circulated among the various entities for feedback. Senator Calabretta asked if it was going to be referred to the germane committee. Senator Cameron said that due to the wide scope, it has not yet been determined what the correct committee might be. Senator Little asked about the “Water Course and Port District Title.” Senator Cameron said they tried to model this legislation after the Port Authority bill but it did not fit well
MOTION	Senator Stegner made a motion that RS14105 be introduced for print. Senator Geddes seconded the motion,. The motion carried by a Voice Vote.
RS14136	A Concurrent Resolution stating findings of the legislature and rejecting certain rules of the Idaho Fish and Game Commission relating to commercial fishing.
	Senator Noh explained that this resolution can go to the floor of the Senate or can be returned to committee. He said this is the standard form used to reject a rule of the Fish and Game Commission and if adopted by both houses of the legislature it would prevent the agency rule from going into effect.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS14136 and then send it to the floor of the Senate. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
S1309	Relating to Public Contracts; Amend Section 18-1359, to prohibit public servants from engaging in certain acts and to specify the penalties for violations
	Senator Noh stated that this bill was introduced in the Education Committee and then referred to State Affairs. He said that Education now is very big business and this change is a way to improve communication with public officials regarding ethics laws. He said that Idaho Code 67-5718, Purchasing Code, lays out the do’s and don’ts for those who attempt to effect the outcome of contracts. However, these guidelines are a long way in the code from the other ethics code section. So the intent of this bill is to put officials on notice to also look at this section of the code. He said it also clarifies how these provisions apply to other units of government besides the state. Senator Calabretta asked about where the language was that relates it to other units. Senator Noh referred her to page three, Section 59-210, Violations of Public Contracts. Senator Stennett asked about the difference between the reference to public officers and public servants. Senator Noh referred the answer to Bill Van Tagen. Bill VonTagen, Deputy Attorney General, stated that the terms public servants and public officers are interchangeable. Senator Stennett asked if anyone who draws a public salary is subject to this law. Mr. VanTagen said that is correct if they are attempting to influence control within the scope of their job. Senator Stennett asked if that includes all employees of the state and county. Mr. VanTagen said that is correct. Senator Little asked if the intent of this legislation is to make the law more concise. Mr. VanTagen stated that the statute needed greater attention and this is not a substantive change.
MOTION	Senator Stegner made a motion that the committee send S1309 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Noh will sponsor this bill in the Senate.
H607	Relating to the creation of the Idaho Department of Commerce and Labor; Amending Chapter 47, to incorporate the Department of Labor in the Department of Commerce
	Dwight Johnson from the Department of Labor, presented this bill which merges the Department of Commerce and the Department of Labor into a single Department that will be named the Idaho Department of Commerce and Labor. He presented a handout for the committee members. He said this merger will formalize a long-standing partnership between these two departments and will ensure that the functions of economic development and workforce development are directly linked. He said the Governor is very confident in Roger Madsen as the new leader. He said the ultimate outcome will be higher wage jobs with benefits in Idaho.
	Roger Madsen, Director of the Department of Labor, stated that at this time they are making an effort to consult with all groups who are stakeholders in this change. He said there is some concern that there is not a specific plan yet but he is confident that will develop. Chairman Sorensen asked how the departments will merge and if their mission will be different. Mr. Madsen said they will form a key leadership team that will operate somewhat like a Work Force Development Council and they will work side by side with employment to promote economic development. Chairman Sorensen asked about tourism. Mr. Madsen said tourism will be a focus and now they will have an additional 24 offices in the state with trained employees. Chairman Sorensen asked if there would be additional training. Mr. Madsen said they will be trained by specialists. Senator Stegner asked how many other states have made this type change. Mr. Madsen said Maryland, Kentucky, Florida and some others have made similar changes.

MOTION	Senator Stegner made a motion that the committee send H607 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Geddes will carry this bill in the Senate.
S1372	Relating to independent expenditures; Amend Section 67-6611, to provide the time in which written statements setting forth certain expenditures must be filed with the Secretary of State.
	Geri Rees, Assistant to the Majority Leader, presented this legislation for Senator Davis. Mrs. Rees stated that this bill relates to independent expenditures and corrects an error in S1009 from the 2003 legislative session. She stated that the legislature relied upon the language provided to it in furtherance of the disclosure time period; however, it is an error. Rather than reading “not less than,” it should read “not more than.” Also Section 2 is added stating “An emergency existing therefore, which emergency is hereby declared to exist, this act shall be in full force and effect on and after its passage and approval.” She stated the emergency clause was necessary so the bill takes effect immediately.
MOTION	Senator Stennett made a motion that S1372 be sent to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Davis will carry this bill in the Senate.
H509	Relating to the Idaho Endowment Fund Investment Board; Amending Section 57-720, to provide that Permanent Endowment Funds and Earnings Reserve Funds may be combined or pooled for investment
	Matthew Haertzen, Manager of the Endowment Investment Board, stated that this legislation does two things. It allows the combination of funds for investment even though their accounting will be maintained separately and it provides the legal corrections necessary to change the regulations to policies and therefore end the rulemaking process. Senator Little asked Mr. Haertzen to explain the need for the retro-activity clause. Mr. Haertzen stated that they want to change custodian by July 1, 2004 for immediate cost savings. Senator Little asked if the funds were already transferred. Mr. Haetzen said the funds have not been transferred as they are waiting for the completion of this legislation. Senator Calabretta asked if regulations have public process and legislative review. Mr. Haertzen stated that policies are subject to the regulations and statutes set by the Legislature.
MOTION	Senator Little made a motion that the committee send H509 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
H535	Relating to Telephone Solicitation; Amending Section 48-1002, to define terms and revise provisions and procedures relating to telephone subscriber listings on no call list; to provide that a National Do Not Call Registry established by the Federal trade Commission may serve as Idaho’s No Telephone Solicitation contact list.
	Brett DeLange, Deputy Attorney General, stated that as of November, there were 256,000 Idahoans signed up for the No Call List and it has been a resounding success. Mr. DeLange said this legislation is necessary to bring Idaho’s Do Not Call List law into conformance with the recently enacted federal regulations, and to allow for Idaho’s Do Not Call List law to continue to be enforced and implemented. He said it is important for harmony between the state and federal law. He said it does three things. It defines “established business relationship,”maintains one list and then sets the time frame when there is a deemed violation. This legislation also eliminates all fees previously charged. Senator Little asked how terminating the fee would not end up with a negative fiscal impact. Mr. DeLange said the Attorney General’s office has available resources. He said the Federal Trade Commission will download to Idaho. Senator Little said he thought the fee covered some costs. Mr. DeLange said by now most of the start up costs have been covered and now registration is done at the federal level rather than here in Idaho. Senator Little asked what would happen if we didn’t make this change. Mr. DeLange said Idaho’s legislation would then be inconsistent with the federal law. Senator Stegner said his wife had signed them up and asked when they have to renew. Mr. DeLange said the current law is for three years and if we convert to the federal, the renewal extends to five years.
MOTION	Senator Stegner made a motion that the committee send H535 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
	Chairman Sorensen extended the State Affairs Committee’s appreciation to Zack Gonzales for his service as Committee Page during the first half of this session.
ADJOURNMENT	There being no further business, the committee adjourned at 4:10PM.

DATE:	February 23, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	Vice Chairman Richardson
MINUTES:	Senator Calabretta made a motion that the committee accept as written the minutes for February 20, 2004. Senator Little seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen introduced Jessica Cook from Idaho Falls who will serve as page for the Senate State Affairs Committee for the second half of this session.
	Gubernatorial Re-appointment of Sandra Twiggs of Blackfoot, Idaho to the Idaho Commission on Human Rights to serve a term expiring July 1, 2006
	Sandra Twiggs stated that serving on the Human Rights Commission has been enjoyable and quite an education. She stated that the Commission is well worth the time and effort as they perform as a watch dog for victims of discrimination in Idaho. She said although the number of cases is increasing, the staff is doing an effective job of facilitating. Senator Stennett asked how often they meet. Mrs. Twiggs said about four times per year. Senator Stennett asked who has the final authority in these cases. Mrs. Twiggs said the Commission votes on acceptance of the conclusion of the investigator. However, at the end of the case there is a right to sue clause.
S1374	Relating to the retail sale of liquor by the drink; Amend Section 23-953, to further define racing facility to include Motorsport Racing
	Chairman Sorensen announced that Senator Compton has asked the committee to hold S1374. She said that without objection, the bill will be held. There was no objection.
SCR126	Senate Concurrent Resolution; To support the state of Israel
	Senator Sweet stated that this bill is to offer support to Israel as they struggle against terrorism. It says that we support Israel’s right to self defense and urges the parties in the Middle East to work for peace.
	Allen Gorin, the Executive Director for Idahoans for Israel, stated that their group is very politically and religiously diverse with many different community leaders. He said the United States and Israel have a lot in common particularly their love of freedom. He said there has been a psychological war against Israel and they need our support. He said passage of this bill would help boost Israeli morale as well has improve Idaho’s image to the world. Larry Eastland from Idahoans United for Israel, said the Middle East has been a hot spot for decades but there is a special relationship between the United States and Israel. He said the United States has an enormous stake in the survival of Israel. He said this bill also condemns terrorism and they support this resolution. Senator Calabretta asked what is the political and religious relationship. Mr. Eastland said that although it is not a religious question, it is difficult to separate the Jewish people from Israel. He said on the survival of Israel, we are united. Senator Calabretta asked if any part of the bill speaks to the Palestinian State. Mr. Eastland said a Palestinian State is not addressed in this resolution. He said Israel must have secure borders for a Palestinian State to succeed. Dennis Mansfield has worked with the International Christian Embassy which takes groups of visitors to visit Jerusalem. He read from a letter addressed to Senator Sweet from Malcolm Heading of their organization. The letter encouraged Idahoans to show Christian love and respect to the Jewish people. Senator Calabretta asked how many faiths are identified with Jerusalem on those tours. Mr. Mansfield said Jerusalem is presented as a city of many faiths as nothing else would be accurate.
MOTION	Senator Davis made a motion that the committee send SCR126 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senators Little and Stegner voted no.
S1321	Relating to Abortion; Amending Section 18-604, to revise definitions, to provide a cause of action arising from statute or otherwise to any person injured by causing or performing of an abortion
	Representative McGeachin stated that during the 2003 Legislative Session it was brought to her attention by the Cornerstone organization that Idaho’s Informed Consent Law (18-601) needed improvement. She presented a handout which identified differences between the existing code and S1321. She said their intent is to protect women and save lives. She said this bill requires that women receive additional information and that they have a better understanding of the possible physical and psychological consequences of an abortion. Senator Stennett questioned that the fiscal impact statement gave no consideration to the potential for a lawsuit and the associated cost. He said the language on page three has been found unconstitutional. Representative McGeachin deferred to Clint Miner, an attorney in Boise, Idaho, who was involved in the drafting of this legislation. Mr. Miner stated that it was not his understanding that the language in this bill is unconstitutional and in this state similar language was held constitutional in the “parental consent” dispute. Senator Stennett referred to page three, sub-section four, and asked who is the “any person.” Mr. Miner said that language refers to people who have interest in certain matters and it depends on the circumstances and the “claimed wrong.” Senator Stennett said that is not clear in the language and it appears that “any person” could have a very broad interpretation. Mr. Miner said it refers to the person “injured” by violation of the statute and they have to have a relationship to the person and injury. Senator Stennett stated that any person could sue at any time and therefore if I am very upset about abortion, I would have cause of action. Senator Calabretta asked if any physicians or the medical community were consulted during the drafting of this bill. Representative McGeachin said that the department of Health and Welfare has consulted with the Idaho Medical Association during preparation of the updated informational brochure. Senator Davis stated that although it is true that any fool can file a lawsuit, ultimately it is determined whether you have standing or you don’t get far.
	David Ripley, who represents Idaho Chooses Life, said that they have considered the complexities of this legislation and their position is that the current law is flawed but S1321 weakens the current provisions of law. He provided the committee with several handouts identifying their concerns. He said they are concerned about the change in the definition of “medical emergency” and they feel S1321 loses round. He said although they acknowledge that the current law has some strange language, they feel this new bill opens the “trap door” of telephonic counseling. He said this bill authorizes phone delivery of counseling by unqualified personnel and there will be no way to check compliance of disclosure. He said that with no role for the Department of Health and Welfare, women will be put in further jeopardy. He advised the committee they have concerns about S1321. Senator Darrington asked if their organization was consulted in the drafting of this bill. Mr. Ripley said they were not. Senator Calabretta asked if the revised abortion disclosure pamphlet could be done on the web site. Mr. Ripley said they did not know what to conclude about the web site but perhaps if it was used in addition to the other elements it may be alright. He said the quality of the pamphlet and the face to face consultation with the physician are critical. Senator Calabretta asked if a second required face to face consultation was an obstacle. Mr. Ripley said shifting the burden on the woman and away from the physicians and the Department of Health and Welfare is a concern.
	Marie Hoff, from Catholic Charities of Idaho, read a letter from Kathleen McBride Curtis who works with Project Rachel, a program that assists people who have been hurting after involvement with an abortion. The letter stated that some of the post-abortion symptoms women have include: long term major depression, anxiety, flashbacks, triggers that provoke panic, nightmares, relationship difficulties, emotional numbing, self-blame when experiencing infertility and complicated grief. In the letter, Ms. McBride Curtis said she feels very strongly that a woman has the right to know all of the risks she is facing, and the extent of possible adverse affects of the abortion procedure, both physically and psychologically. Senator Stegner asked if they support the current statute 18-609 which allows the attending physician to withhold information in certain situations. Senator Calabretta asked if there is a need for the doctor to have the exclusion option in very fragile situations. Marie Hoff said she would have to defer on legal interpretations of the law. Senator Calabretta said that she had experience in dealing with the difficulties that young mothers experience when they decide to give birth to a child . Ms. Hoff said their agencies do help with crisis pregnancies.
	Marty Durand, who is legislative Council for the American Civil Liberties Union of Idaho, stated that government-mandated delays serve no purpose other than to make obtaining an abortion more difficult, dangerous, and expensive for the women who are least able to bear the burden of an unintended pregnancy. She said the harm of such restrictions is felt most by those who have the fewest resourcespoor, rural women, working women without insurance or sick leave, and battered women. She said this bill was not created to protect women’s health. It will instead make a woman’s very personal decision even more difficult. Biased counseling laws intimidate women and discourage them from seeking medical care and exercising their reproductive rights. They urge this bill be held in committee. Senator Davis asked how he might understand their opposition to the informed consent in this bill when they had supported consent on the tattooing legislation. Ms. Durand said informed consent already occurs under the current legislation and it is left to the physician to provide medically accurate information. Senator Stennett asked if Ms. Durand had any idea what the cost might be to defend this legislation. Ms. Durand was not sure but she said the states cost to defend a case several years ago had been about $400,000.
	Kerry Uhlenkott from Right to Life, provided a handout which gave a list of the nineteen states that have informed consent laws. She said that true informed consent has resulted in a decreasing number of abortions. She said it is never preferable to have a vulnerable woman subject to the high pressure business of the abortionist. They are concerned about loopholes in the current statute. Senator Darrington asked why all the pro-life community had not been involved in developing this legislation. . Ms. Uhlenkott said it was her understanding that the early draft was presented to all including Mr. Ripley.
	Chairman Sorensen announced that since it is necessary for the leadership members of State Affairs to leave and there are more people who wish to testify, we will carry over the final testimony for S1321 until Friday February 27, 2004.
ADJOURNMENT	The meeting was adjourned at 4:30PM.

DATE:	February 25, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	Senator Geddes
MINUTES:	Senator Calabretta made a motion that the committee accept as written the minutes for February 23, 2004. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
Committee Vote	Gubernatorial Re-appointment of Sandra Twiggs of Blackfoot, Idaho to the Commission on Human Rights to serve a term expiring July 1, 2006
MOTION	Senator Stennett made a motion that the committee recommend to the full Senate the Re-appointment of Sandra Twiggs to the Human Rights Commission. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Appointment of Tom Katsilometes of Pocatello, Idaho to be State Athletic Commissioner to serve a term expiring January 7, 2005
	Tom Katsilometes stated that he was a former County Commissioner for some many years and he has served as a referee for professional fights for thirty years. He is working on regulating boxing. He believes we should keep it safe. He will also work on regulating professional wrestling and mixed martial arts.
	Chairman Sorensen stated that the Committee Vote on Mr. Katsilometes appointment will be held at the next State Affairs meeting.
RS14189	Concurrent Resolution; Approving Administrative Rules that impose a fee or charge
RS14190	Concurrent Resolution; Approving and extending Temporary Rules reviewed by the Legislature
	Carl Bianchi, Director of Legislative Services, stated that these two bills are the annual omnibus resolutions which are necessary to impose the Fee Rules and extend the Temporary Rules.
MOTION	Senator Darrington made a motion that the committee introduce for print RS14189 and RS14190 and send them to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
S1373	Relating to the Idaho Employer Alcohol and Drug-Free Workplace Act; Amending Chapter 17, addition of new section 72-1717; to provide certain eligibility requirements for contractors relating to state construction contracts
	Jill Chestnut, Executive Director of Drug Free Idaho, stated that this bill is an addition to the Idaho Employer Alcohol and Drug-Free Workplace Act Title 72, Chapter 17; to provide certain eligibility requirements for contractors and sub-contractors relating to state construction contracts and to require that affidavits verifying compliance with specified provisions be submitted with bids for state construction contracts. She said alcohol and drugs contribute to workplace accidents and this bill will require contractors and sub-contractors to have a Drug-Free Program in order to work for the State of Idaho. Senator Stennett asked about the cost of implementation of this plan. Ms. Chestnut said the cost of each testing is about $40 and the frequency is up to the employer. Senator Stennett asked about the $200 fee from Drug Free Idaho if they are used. Ms. Chestnut said their $200 fee includes the initial evaluation, education and training. Senator Darrington, who is on the Building Fund Advisory Council, asked how much of a burden this change would place on the Department of Public Works if they are required to certify all the contractors hired by the state. Ms. Chestnut said they are asking contractors to show that a plan is in place from this time forward. Senator Darrington asked who sets the standards and how much work it will mean to ensure compliance. Ms. Chestnut stated that currently Workmens Compensation certifies these programs in order for the business to qualify for the 5% discount. Chairman Sorensen said that once this bill is passed, when a bid is submitted, they must state that there is a Drug Free Program in place. Senator Little asked who would do the certification of those who submit bids. Ms. Chestnut stated that there are several third party providers who do certifications including Drug Free Idaho. Senator Little said that Drug Free Idaho (Title 72) is a voluntary program and he asked if this is the only mandatory section. Ms. Chestnut stated that at this time it would be for public works contracts only. She said there are so many different contractors working side by side that they can be impacted by one another. Senator Little asked if there shouldn’t be some concern that critical public works projects might be held up if the participating contractors are not certified. Ms. Chestnut said that the program does not take effect until July 1, 2004 and is not retroactive. Senator Calabretta asked if there are similar requirements in Federal law. Ms.Chestnut said laws are in place in many states and the Ohio plan was used in drafting this bill. Senator Stennett asked about the testing for alcohol and if a guy had a couple beers after work, it would be detected negatively. Ms. Chestnut said the alcohol is determined by breath alcohol while on the job.
	Pat Kershisnik from Petra Construction, stated their company has had a Drug Free program for five years. He said most general contractors have implemented a plan by now. He said the problem is more with the sub-contractors. He said Title 29 has some provisions under general safety. Mr. Kershnisnik said he is not that concerned about the additional responsibility on the contractors. He said it would not actually entail that much additional paperwork during the bid process. He said there is an up front expense in the baseline testing of existing staff and then after that they do pre-employment testing. He said the positive results of better productivity, less absence, and improved product outweigh the negatives. Senator Stennett asked if they provide health insurance. Mr. Kershisnik said they do. Senator Little asked the definition of a sub-contractor. Mr. Kershisnik said they are tradesmen such as painters, plumbers and roofers. Senator Sorensen stated that in reality, jobs done in a Drug Free environment, are less costly and have fewer accidents. She said that participation can be voluntary when it is an independent business, but when the state is the employer, we should determine the Drug-Free requirement.
MOTION	Senator Stennett made a motion that S1373 be sent to the Fourteenth Order for amendment. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Sorensen will sponsor this bill in the Senate.
S1260	Relating to the Idaho Law Enforcement and Firefighting Medal of Honor; Amend Title 67, addition of Chapter 88, to establish the Idaho Law Enforcement and Firefighting Medal of Honor
	William Douglas, Kootenai County Prosecuting Attorney, stated that this legislation will establish a Law Enforcement and Firefighting Medal of Honor program in the state of Idaho. He said this program will recognize public servants for extraordinary acts of valor and heroism. He said that since 911, their has been a growing recognition of the contributions these people make to society. He said the Attorney General will chair the committee. He said this bill is supported by Director Charbonneau and all the law enforcement organizations. He said these types of programs help to provide closure to the families of survivors. He provided the committee with letters from Captain Wayne M. Longo, Medal of Valor recipient in Idaho and from Detective Chad Huff, the spouse of Linda Huff who was killed in the line of duty in 1998.
	Mr. Fox, the Washington State Attorney General, stated that they started this type program in Washington in 1994. He said at first they had no budget but then it became a line item for $25,000 on the Governors budget. Since then they have had eight ceremonies and 300 medals have been given. Mr. Fox stated there are many benefits which include the coming together of the various honor guards as a whole and the bringing together of dignitaries of the state to recognize heroic citizens. He said this program provides closure to families of deceased officers and provides an opportunity to communicate with the national event in Washington D.C. Mr. Fox said it benefits everyone to never forget the sacrifices that are made.
MOTION	Senator Calabretta made a motion that the committee send S1260 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote.
H502	Relating to Telecommunication Regulation; Amend Section 62-604, to prescribe an election by the corporation to govern applicability of the Chapter to certain telephone corporations
	Senator Davis requested that if it is possible, President ProTem Robert Geddes, would like to be present in committee during the vote on this bill.
	Bill Roden who represents Quest Communications introduced Jim Schmidt, the President of Quest Communications of Idaho. Mr. Schmidt said world telecommunications is changing rapidly and there is no single technology or single provider as existed in 1913. He said there are 58 competitors in Idaho. The markets have been determined to be open according to the Federal Trade Commission. He said there is urgency behind the necessity for change in their business. He said wireless providers now consider themselves land line replacement companies. He said more people are going wireless. He said this is a dramatic issue facing their business today. Recently, they lowered the cost of their land line package. Mr. Schmidt said as of yesterday they are allowing DSL high speed access without requiring a voice line. They are vigorously competing for business. He said there is a myth about rate hikes. There is no immediate plan to raise rates even though their company cannot predict the future. He said their current operations does not guarantee there will be no increase. They have lost 54,000 customers in the last two years. Mr. Schmidt said it is a myth that this change would be bad for the elderly, the rural, and the poor. They value their elderly customers and have done several significant price reductions for the basic package. He said they have invested heavily in Idaho rural areas, which include four call centers which employ 900 people. They are proud of their history and track record in Idaho.
	Senator Davis recalled that after the Public Utility Commission closed their file, a motion was filed asking to re-consider and then Quest volunteered no rate increases for 2004 and that they would limit residential increases up to 2007 in order to give a good faith pledge. He asked Mr. Schmidt if he could make a similar commitment now. Mr. Schmidt said he had no intention of raising the basic rate in 2004 and any changes would be no different than those of any other company. He said a competitive market place already regulates them. In a multi provider environment, it does not make sense to regulate one company. He said when they looked at the PUC back to 1998, they had allowed other companies to charge $24.10 so that must be an acceptable rate. Mr. Schmidt said if you need a guaranteed affordable rate, they will agree to match the rates of others. They offer a warranty because they can’t envision the scenario of an increase. Senator Davis questioned the 54,000 lost customer figure and acknowledged that the market has changed and since his business had needed the DSL service, he had to look to an alternative service. Mr. Schmidt stated that from October 2001 to October 2003 the actual decrease in their number of lines was 54,000. He said over that same period, Idaho was the seventh fastest growing market. So it is also evident that Qwest didn’t get some of the new customer lines.
	Chairman Sorensen announced that due to the time constraints, it would be necessary to carry over the remaining testimony on H502 until next Wednesday, March 3, 2004.
H624	Relating to telephone corporations; Amend Section 62-617, to clarify and limit the exemption from antitrust liability for telephone corporations that have elected regulation pursuant to Chapter 6, Title 62
	The hearing for this bill was also delayed until March 3, 2004.
ADJOURNMENT	In order for the Senators to return to the Senate Chambers the committee adjourned at 4:25PM.

DATE:	February 27, 2004
TIME:	3:00 pm
PLACE:	Gold Room
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Calabretta made a motion that the committee approve as written the minutes for February 25, 2004. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Appointment of Bradley T. Foltman of Boise, Idaho as Director of the Division of Financial Management to serve a term at the pleasure of the Governor
	Bradley T. Foltman, Director of Financial Management for the Governor’s Budget office, stated that he was raised on a dairy farm and developed a strong work ethic. He reviewed some his life and educational experiences. Mr. Foltman said he became familiar with important state issues while working as an analyst for Health and Welfare and as a Bureau Chief for the Fish and Game Department. He said budgets can work up and down and he feels it is important that if a scale back or reduction is necessary, it should be made known in a specific way. Senator Richardson expressed appreciation to Mr. Foltman for his good work with the Joint Finance and Appropriations Committee (JFAC) and asked what he sees as he looks forward. Mr. Foltman said we have a goal to manage and we need to have a multi year revenue plan. He said we know our target and will try to manage it. Senator Calabretta asked if the Governor’s Budget Staff and JFAC have a duplicate assignment. Mr. Foltman said that although there is some overlap of information, the uses of that information are different. He said the support for the Executive Branch and the agencies is a year round function.
	Chairman Sorensen announced that the Committee Vote on Mr. Foltman’s appointment would be held at the next State Affairs meeting.
Committee Vote	Gubernatorial Appointment of Tom Katsilometes of Pocatello, Idaho to be State Athletic Commissioner to serve a term expiring January 7, 2005
MOTION	Senator Darrington made a motion that the committee recommend to the full Senate the Gubernatorial appointment of Tom Katsilometes to be State Athletic Commissioner. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen asked Vice Chairman Richardson to chair the committee while she presented a bill.
RS14205C1	Relating to Election Campaign Contributions and expenditures; Amend 67-6602, to further define the term “candidate” and declaring an emergency
	Chairman Sorensen stated that the purpose of this legislation is to further define the term “candidate” and to stipulate that contributions received as an incumbent candidate, shall not be in excess of the prescribed contribution limits for the subsequent election by which the incumbent candidate’s name would first appear on the ballot. She asked that RS14205C1 be introduced for print by the committee.
MOTION	Senator Davis made a motion that the committee introduce to print RS14205C1. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Vice Chairman Richardson returned the chair to Chairman Sorensen.
RS14213	Relating to Regional Public Transportation Authorities, Amend Sect.40-2113, to harmonize it with the provisions of Chapter 24, Title 63
	Roy Eiguren representing Valley Ride Regional Transportation Authority presented this bill for Senator Ingram. He stated that the purpose of this bill is to clarify the fact that regional public transportation authorities are exempt from taxation and to ensure that as political subdivisions of the state of Idaho, regional public transportation authorities are treated like other political subdivisions of the state of Idaho with respect to the imposition of fuels taxes. He asks that this legislation be introduced to print and sent to the Transportation Committee.
MOTION	Senator Darrington made a motion that the committee introduce to print RS14213. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
RS14214	Joint Memorial to President of the United States and Congress; that as they complete highway and transit re-authorization legislation, they should extend the concept of the federal lands upward match adjustment into additional areas in the transit program
	Mr. Eiguren stated that this Joint Memorial is a request to the President and Congress of the United States which makes requests regarding the allocation formula by the federal government for mass transit. He requested it be introduced for print and directed to the Transportation Committee.
MOTION	Senator Stennett made a motion that the committee introduce for print RS14214. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
RS14215	Concurrent Resolution; Authorizing the Legislative Council to appoint a committee to undertake and complete a study of Public Transportation and related air quality issues.
	Mr. Eiguren stated that this bill is a Concurrent Resolution directing the Legislative Council to appoint a committee to undertake and complete a study of public transportation and related air quality issues in Idaho.
MOTION	Senator Calabretta made a motion that the committee introduce for print RS14215 and return it to the State Affairs Committee. Senator Stegner seconded the motion. The motion carried by a Voice Vote.
MOTION	Senator Geddes asked if a motion was in order. Chairman Sorensen said a motion was in order. Senator Geddes made a motion that HJR9 be scheduled for a hearing at the next meeting of the State Affairs Committee. Senator Davis seconded the motion.
	Chairman Sorensen stated that before the vote is taken to place HJR9 on the agenda for consideration she would like to make a statement. She said that when she made the decision to not put this bill on the agenda, she was aware that there are procedures that could be used in order to bring it forward in committee as well as in the full Senate. She said it is with that in mind that whatever is the will of the committee she will abide by it. She stated that she stands strongly on her decision. She stated that the use of this motion underscores the fear that exists amongst our legislators. The use of this motion underscores how this issue has been allowed to become the defining test for members of our body. The use of this motion underscores the lack of trust in our Supreme Court. She said there is fear in our communities. Fear that our Supreme Court will not uphold the will of the people expressed in our state laws. She said it is our responsibility as leaders to rise above that fearnot to succumb to it. Chairman Sorensen stated that in 1996, the Idaho Legislature passed a law defining marriage as between a man and a woman. The only reason to support the motion to hear HJR9 is if you believe that our Supreme Court, in this conservative state, would overturn that statute. She said the bottom line is then, that you believe, that our Idaho government is so precarious that we do not trust our Supreme Court and that we are not willing to stand as leaders in the State and affirm our belief in our state government. Chairman Sorensen said the downside of the choice to put HJR9 on the agenda and if it prevails and therefore is put on the November ballot is huge. It will merely fuel that fear. We will experience divisiveness. It will pull the state apart not pull the state together. It will reverse the positive steps of diversity that we have seen in the last few years. She said it will force an expensive and time consuming lawsuit. She stated that it would draw our attention away from the serious state issues that we have at hand. And it would also renew the past negative media attention that Idaho has received nationally. Chairman Sorensen stated that she does not believe our Supreme Court is going to overturn our defense of marriage statute. And therefore, she asked the committee to support her and vote no on putting HJR9 on the agenda for consideration. She said a vote for this motion is a vote against the Supreme Court. She said a vote against this motion is a vote upholding the belief in the strength of our government.
	Senator Davis stated that he wanted to join in the expression of wanting to maintain an appropriate presentation of this bill in Idaho. He said that he does not know the intent of the sponsors. Senator Davis said that the outcome of a court challenge is not so certain. He stated that Idaho has, in its Constitution, an expanded privacy right which is significantly more than what other courts have relied upon. He said that in light of that aggressive language in our Constitution, he believes an Appellate Court would be compelled to take a closer look at the issue than perhaps we might initially think. He said that he frankly thought that this was not the appropriate section to be amended and other language is better than that used. He is willing to consider the resolution.
	Senator Geddes stated that the motion he just made was not intended to reflect negatively on the Chairman. He said they have worked together for years and it will be very difficult to see her leave. He said that he agonized over this decision as it is not generally done. He said he lost sleep from his concern about going against the standard that has been developed in this body. He said this motion is within the procedure allowed. He said if the bill is not heard concerns will still exist and it may look like we have not done due diligence. Senator Geddes said if it is heard in committee, we still don’t know the outcome. He said if the committee allows the bill and sends it to the Senate, the will of the Senate will be expressed. He said an amendment to the Constitution requires a two thirds majority and then it becomes a ballot measure. Senator Geddes said that it is a very thorough process. He said if the bill stops in committee the process does not occur. He said the full Senate and the voters of Idaho should make the decision. He said he urges support of a hearing to allow the voices of the people to be heard.
	Senator Stennett said this is a highly unusual move. He said he has never seen this maneuver around the chair before in a decade in the Senate, as the committee process is sacrosanct. He said he has had more than his share of bills buried in committee drawers.
	Senator Calabretta stated that she has never experienced this in her previous legislative history. She said if we took due diligence to the ballot measure with every Joint Resolution, we would be very busy people. She said it is not enough to say that any idea should be taken to the people. She said the people in her district feel that this bill is a mis-use of time and resources. She said the Legislature has more immediate problems to take on including the increase in joblessness. She said we should ask what is the magnitude of the problem here in Idaho and why is this action being promoted. Senator Calabretta stated that this is not our highest priority.
	Vice Chairman Richardson said that this has been a difficult decision as he has the greatest respect for the Chairman. However, he feels this will strengthen our laws. He said people want to vote on this issue and there are things taking place in the world around us that we cannot ignore.
	Senator Stegner said he is voting against hearing HJR9. He said the legislative process is very cumbersome and full of obstacles. He said in that sense, it is extremely frustrating to some people. He said that it works that way to protect the minority from an over zealous majority. He said he has faith in the Constitution of the state of Idaho. He said a Constitutional Amendment requires the two thirds majority of both houses and then a vote of the citizenry. He said the process of committee review is part of an overall system that works very well. He said he supports the Chairman against the hearing of this bill.
	Senator Little stated that if he thought for one minute that the sanctity of marriage was under attack he would vote in support of the hearing. He said I have faith , like the Chairman, in the Supreme Court and I have faith in the people that will be in these seats after us. He said he did not think this legislation is necessary. Senator Little said this is not Massachusetts or California and the problems seen elsewhere are not here in Idaho. He said he will vote to support the Chairman.
VOTE	A Roll Call Vote was requested for the vote on whether the committee should schedule a hearing for HJR9. Senators Sorensen, Stegner, Little, Stennett and Calabretta voted nay. Senators Richardson, Darrington, Geddes and Davis voted aye. The motion failed.
S1321	Relating to Abortion; Amending Section 18-604, to revise definitions, to provide a cause of action arising from statute or otherwise to any person injured by the causing or performing of an abortion
	Representative McGeachin announced that due to time constraints she would allow Julie Lynde from the Cornerstone Institute of Idaho to speak. Senator Stennett asked if the various different groups had now had time to get together. Representative McGeachin said that they had not.
	Julie Lynde stated that this legislation is necessary to address specific issues to provide the knowledge a woman needs when making a decision about an abortion. She said informed consent will help to minimize the trauma often experienced . She said this bill creates a mechanism for women to get information without coercion. Ms. Lynde stated that women need the honor and dignity of informed consent.
	Dr. Duane Sinclair, an obstetrician and gynecologist, spoke in opposition to S1321. He said it is an attempt to harass women, some of which are in extremely unfortunate situations. He said they are conscientiously seeking the best solution for the child and their family. He said currently 90-95% of abortions are done in the first trimester which is important. Dr. Sinclair referred to Dr. C. Evert Koop who stated that after a study of the long term effects of abortion, there was no conclusive scientific evidence of the psychological impact. He said no one has the right to impose their religious beliefs on others.
	Jeanette McAllister, a Registered Nurse and President of Right to Life of Idaho said many experts say that the typical abortion is performed in an assembly line fashion where there is no doctor-patient relationship. She said she has worked with many young women who would have made a different decision if they had informed consent. The support S1321.
	Ellie Merrick, Director of Public Affairs for Planned Parenthood of Idaho, stated that they oppose S1321. They do not oppose informed consent but they feel this bill is unnecessary. They oppose the penalty section which imposes civil liability on the physicians. She said currently, there are only four providers of abortion in Idaho. They also feel the right to privacy of the woman is compromised which doesn’t help but rather hurts the woman.
	Ralph Flager, the Deacon from Holy Apostles Catholic Church, said they respect life and support full and complete information for women. He said Project Rachel deals with those who have adverse effects from having had an abortion. They support S1321.
	Lee Flinn, the Program Director, for the Idaho Women’s Network, said they believe in full information but they oppose this legislation as unnecessary. She stated that current Idaho law already provides adequate information to the woman. She said that current law does not hold physicians and hospitals liable. She said that under S1321, anyone can sue, perhaps even grandparents for their loss. She said they oppose a government mandated waiting period. She stated that the required information is being provided and physicians must be trusted.
	Toni Lawson, Executive Director of the Nurses Association said they oppose S1321. She introduced Judith Murray from the Idaho Nursing Association. Ms. Murray said she has in an abortion clinic and she does not believe it is used as birth control. She said to put abortion out of business, more information is needed about family planning.
	Nathan Palmer spoke in opposition to S1321 as he supports the current law which has been the standard for twenty years. Barbara Gaugh, Associate Director of Generation Life, said she did not receive informed consent before she had an abortion. She supports S1321 with the new proposed amendments. Chris Troopis an attorney with Idaho Chooses Life, said the new amendments will improve the bill. He said we have had a law for twenty years but it has not been enforced and this law does nothing to improve enforcement. He said the possibility of lawsuits is a cruel hoax as the victims may find that they have no legal remedy. He would like the committee to seek to have the current law enforced. Chairman Sorensen asked where the data is that indicates the current law is not enforced. Mr. Troupis said that when they asked Health and Welfare for a report, out of 10,000 procedures they could only document about 200 cases. Senator Brandt concluded by telling the committee that this new legislation will help ensure that pregnant women will get accurate information. He said it is frustrating when perfection gets in the way of doing good. They have had two other bills printed in the Health and Welfare Committee which ended up needing further work.. He said they are willing to amend this bill further and ask that the committee send it to the Fourteenth Order. Clinton Miner, Attorney, then reviewed the handout which described the newly proposed amendments to S1321. He said they address the concerns brought up to the committee including informed consent and the emergency clause. Senator Calabretta stated that unplanned pregnancies are not always a tragedy. She said there has been a tremendous sounding here about abortions. She said women who have their babies also have reactions so other answers do not leave a woman unscarred. She asked if there is as much care and support for the women who make other choices. She said this is not a balanced approach which she can support.
MOTION	Senator Little made a motion that the committee send S1321 to the Fourteenth order for amendment. Senator Davis seconded the motion. The motion carried on a Voice Vote.
S1376	Relating to the American Heritage Monument; Amending Chapter 16, Title 67, by the addition of a new section, to set forth legislative findings, to provide for the display of the American Heritage Monument in the Capitol
	Senator Sweet presented a folder to each committee member which provide information on the development of the American Heritage Monument. He said it is a permanent display which can be used as a unique tool to educate children, citizens and tourists. The handout also contained a legal opinion from the State Attorney Generals office and a decision rendered by Judge Lodge in 1995.
	Rabbi Fink spoke on behalf of himself and his congregation in Boise. He said he has no problem with the American Heritage Monument as an idea. He was raised in Virginia and has no problem with having an exhibit in the Capitol, but he does support a strict separation of Church and State. He can recite the Ten Commandments. He stated that there are at least three versions of the Ten Commandments and he would like to know which version the state wants to embrace. He said the state has no business choosing a version and that we should not try to make an idol out of the Ten Commandments. Senator Davis stated that the actual bill doesn’t say it has to include the Ten Commandments but rather that the “essence” be contained in the monument. He asked if Rabbi Fink would consider that.. Rabbi Fink said he thought the essence of the Ten Commandments is to love your neighbor as you love yourself and he said if they put that up it would be no problem.
	Gloria Pfost, speaking as a citizen, said there seems to be a movement to re-write our history. She said her daughter is in college and is being told negative things about our forefathers. She stated that we need to take a stand about our foundation. We cannot all do what is right in our own eyes. We need reminders that we are not the end all. She said we need to humble ourselves. Gary Bennett, a citizen from Emmett, presented a handout to help the committee to determine what are the most important historical documents. He recommended several other important documents including some from Greek History. He said there is no emergency existing and it is important to take the time to develop the monument in a historical and scholarly manner.
	Jean Luze Revail speaking for herself, is in support of S1376. She is in support of the bill mainly because of the Ten Commandment Monument at Julia Davis Park and in hopes that it would be included. Members of her family have served in numerous military actions. They were all Christians who fought for their country. She asked the committee why should they fight if we plan to remove all evidence of Christianity.
	Marty Durand from the American Civil Liberties Union, stated that they oppose S1376 as it is an attempt to place a religious monument on public property. She said the government must remain neutral. She stated that one of the first questions a court will ask is does the monument discriminate among religions. She said the “lemon” test will ask if the monument fosters government entanglement. She stated that similar Heritage Displays have been struck down by the courts. She said that now the ACLU has the resources to pursue litigation thru the appeal process. Mrs. Durand stated that the Idaho Constitution is very explicit and they believe the proposed display is religious in nature. She said government cannot abandon religious neutrality.
	Larry Laudin speaking for himself said that he supports S1376. He said this monument supports the American way and during these difficult times, our western culture needs support. He said that he is an agnostic and he does not see the religious connotations in this bill.
	Allen Gorin, representing the Tora Tradition, spoke in favor of S1376. He said the focus on the Ten Commandments identifies a common denominator and it will help to promote a moral culture. He offered several handouts which were letters from Idaho’s Congressman identifying their support.
	Reverend Brian Fischer representing the Pastors Policy Council, spoke in favor of S1376. He said our coin and currency say “E Pluribus Unum” that is “Out of manyOne.” From diversity we have formed into one people. He said we share a common belief that God governs in behalf of man. He said in the Preamble of the Constitution, “We the people” are grateful to Almighty God. He stated that each person possesses rights from God that no government can take from the people. He said we are “One peopleunder God.”
	Pat Burnham. a teacher who taught early American History for years, encouraged the committee to include the Constitution in this display. She said students would appreciate a display of important documents. She stated that our history is undergoing change and we are under attack to change our history. She said that as a civilized society, we may undermine ourselves if we don’t adhere to law and order and that its’ basis is the Ten Commandments.
	Warren Bean, a citizen who retired from the Boeing Company, said he is concerned about the spatial issues of such a monument. He said there is no place for such large panels in this Capitol Building. He said the proper place may be in the State Library, since where it is located, is a key issue.
	Tammy Seydel stated that the idea that there is a wall of separation between the Church and state is a myth. She said we should now chose the truth. She said that on the top of the Washington Monument are the words “Laus Deo” which means praise to God and there is a Bible in the Washington Monument. She said we should keep what we have.
	Senator Sweet concluded by saying that there are 150 documents that could be considered for this Heritage Monument. He said the Design Committee will have to make some tough choices. He said the Fifth Circuit Court ruled that a monument on the Texas State grounds is constitutional. Senator Stennett asked Senator Sweet which version of the Ten Commandments he would recommend that the Design Committee choose.
	William VanTagan, Deputy Attorney General, said that their office has reviewed this proposal. He said they cannot predict what the final form of such a monument will be. He said the entanglement issue will have to be considered carefully. He said where the donations are coming from is a consideration. However, as of now, on the face they believe it is constitutional. Senator Calabretta asked if when we talk about legislative history, does public testimony become part of that record. Mr. VanTagan said that depends on the weight given to that testimony by the legislature. He said Constitutional Debates have been used in the past but determining legislative intent can be very difficult.
	Senator Davis stated that he has some concern about the Design Committee getting unilateral authority and perhaps we should include the Capitol Commission in the final review. He recommended that language be added to paragraph three that the final Design Committee recommendations be submitted to the Capitol Commission so they can work together.
	Senator Calabretta stated that the intent of this legislation has been reported to be of a religious nature and the testimony today has supported that. She feels it is critical to maintain the separation of Church and State. Senator Stegner said they have heard much talk about constitutionality. He said he would prefer to error on the broad side of separation of church and state.
MOTION	Senator Davis made a motion that S1376 be sent to the Fourteenth order. Senator Richardson seconded the motion.
	Senator Stegner made a Substitute motion that S1376 be held in committee. Senator Stennett seconded the motion. A Roll Call Vote carried the motion to hold S1376 in committee. Senators Sorensen, Stegner, Little, Stennett, and Calabretta voted aye. Senators Richardson, Darrington, Geddes, and Davis voted nay.
ADJOURNMENT	There being no further business, the committee adjourned at 6:05 PM.

DATE:	March 1, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Calabretta made a motion that the committee approve as written the minutes for February 27, 2004. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
	Gubernatorial Appointment of Bradley T. Foltman of Boise, Idaho as Director of the Division of Financial Management to serve a term at the pleasure of the Governor
Committee Vote	Senator Little made a motion that the committee recommend to the full Senate the appointment of Bradley T. Foltman as Director of the Division of Financial Management. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Richardson will sponsor Mr. Foltman in the Senate.
S1375	Relating to bribery and corruption; Amend Section 18-1356, to prohibit public servants from soliciting, accepting or agreeing to accept pecuniary benefit from certain persons
	Senator Ingram stated that the purpose of this legislation is to clarify the prohibition on giving and accepting gifts to/by government officials, including state legislators. He said all the recent problems with city and county officials require that some legislative action is taken to reassure the public. He said the language is being changed to now include “government officials.” Chairman Sorensen asked if Section Four on page one, was referring to campaign contributions. Senator Ingram said the Sunshine Laws have their own set of statutes. Chairman Sorensen asked for an example of a pecuniary benefit. Senator Ingram said an example would be Blue Cross paying for an official’s trip to the Olympics when a state contract was pending. Chairman Sorensen asked about the North Idaho Tour. Senator Ingram said they have never had a problem with that type of event. Chairman Sorensen said that since the air fare and hotel are provided and there is interest in particular legislation, it fits the description in the bill. Senator Ingram said the tours are not a one on one situation but rather a group benefit. Chairman Sorensen asked the difference or distinction between the two. Senator Ingram referred to Line 36 where it states “for any one person.” Senator Davis stated that statutorily, a person, can also be defined as a business or a corporation. He said “individual” is used in the statutes to mean a single person. Senator Davis referred to the Legislative Tours and in particular, the Aqua Culture trip, where they get information about various regional state issues. He asked if that would be problematic after this new legislation. He suggested perhaps the addition of another exemption be added to the bill for Legislative Tours. Senator Ingram said the tours have been done without a any problem, but he is not adverse to suggestions for change to the bill. Senator Calabretta said that although she has been on many such tours, she did not remember any “group to group” promotions of specific legislation. Senator Davis stated that there was never anything proposed as far as quid pro quo, but there was some gentle arm twisting. He said the reality, historically, is that the words to provide protection have been struck from the statute. Senator Calabretta said that she sees value in the change to Section Two. Former Senator Rod Beck ,speaking for himself, stated that he had worked with Senator Ingram on this bill. He said they determined that the language in Section Four needs to be struck as it leaves too wide of capability to give and receive gifts. He said the new language was actually in the bill from 1972 until 1990 and then different language was inserted. He said the more recent language has created some perception problems. He said Sub Section Two now addresses thousands of employees. He said this statute presented problems during the Coles trial. Senator Beck said as leaders we need to build up public confidence. Chairman Sorensen asked how to deal with the Legislative Tours in light of this legislation. Senator Beck stated that if the tour has a legitimate state purpose, such as studying aqua culture, then legislative funds should pay in order to maintain impartiality. Chairman Sorensen said she was concerned about having to “super” analyze everything. Senator Beck said the bill is clear that any public servant or official cannot take gifts. The specific exceptions are laid out in the bill. Chairman Sorensen asked about accepting a plane ride home from Coeur d’Alene with Boise Cascade. Senator Beck said if you accept the ride, you should re-imburse them so there is no appearance of conflict.
MOTION	Senator Calabretta made a motion that S1375 be sent to the floor of the Senate with a do pass recommendation. The motion failed for lack of a second. Senator Stennett made a Substitute motion that S1375 be sent to the Fourteenth order for amendment. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Stegner and Calabretta voted no.
H511	Relating to the State Board of Land Commissioners; Amending 58-104, to provide that the State Board of Land Commissioners shall have power to solicit bids and contract for work
	George Bacon, the Operations Chief from the Department of Lands, stated that the purpose of this bill is to give the State Board of Land Commissioners the authority to solicit bids and contract for work to be performed. He said the individual members have authority but the board as a group currently does not. This legislation will grant them the authority to solicit bids and contract for work.
MOTION	Senator Little made a motion that the committee send H511 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
H558a	Relating to records exempt from disclosure; Amending 9-340C, to exempt certain information from voter registration cards
	Tim Hurst from the Secretary of States office, stated that this legislation will exempt the voter registration card from public access and exposure. He said this legislation is intended to protect registered voters from identity theft by holding the personal information contained on voter registration cards confidential while still making voter name, address, telephone number and voting history available to candidates and political parties for campaign purposes from the voter registration data-base. He said the information to be protected from disclosure includes: social security number, drivers license number, date of birth, signature, and residence address upon showing good cause. Chairman Sorensen asked about the broader language in the Amendment for Section One. Mr. Hurst said that language change was a request from the Press Club. Chairman Sorensen asked about the exemption for enforcement and correction officers. Mr. Hurst said that for this exemption they must show cause for endangerment.
MOTION	Senator Davis made a motion that the committee send H558A to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Little requested to be recorded as voting no. Senator Richardson will sponsor this bill in the Senate.
H559	Relating to recall petitions and elections; Amending Sect. 34-1704, to further govern approval of a prospective recall petition
	Ben Ysursa, the Secretary of State, presented this bill in coordination with the Association of Cities. He stated that this legislation does not affect the constitutional right to initiate a recall, but clarifies the procedures to be followed from the time a prospective recall petition is presented through the petition checking, election and canvass of votes. He said this legislation will remove some of the confusion involved in the process and establishes set time-lines. He said the major change is setting the number of days for a recall to 75. Senator Calabretta stated that she supports a simplification of this process and she asked about Page Six, Section Five and the language stating no new recall for 90 days. Mr. Ysursa said that it is a re-affirmation of Section Six and it states that there is a waiting period after a recall. Senator Calabretta said her other concern is about the City Clerks role to be unbiased. Mr. Ysursa referred to Page Two, lines 40-45, where it states that the City Clerk shall promptly transmit the petitions and attached signature sheets to the County Clerk for examination.
MOTION	Senator Calabretta made a motion that H559 be sent to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the senate.
H581	Relating to Bankruptcy and Pension Plans; Amending Sect. 11-604A, to include 457 plans as exempt from execution, attachment, garnishment, seizure or other levy
	David High, Deputy Attorney General, presented this legislation on behalf of the State Workmen’s Compensation Department. He said the purpose of this bill is to include government deferred compensation plan assets (Section 457 plans) in Idaho’s exemption statute for pension plans. The state and various political subdivisions have had Section 457 plans as supplemental retirement programs since 1978. A recent bankruptcy court ruling indicating that Section 457 assets were not exempt as pension assets under Section 11-607A, Idaho Code, has necessitated this amendment. Senator Little asked if most retirement plans have an exemption from bankruptcy proceedings. Mr. High said that generally the state plans are included.
MOTION	Senator Davis made a motion that the committee send H581 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the senate.
H560	Relating to conduct of elections by mail; Amending Chapter 3, Title 34, by addition of new section, to govern the creation of a mail ballot precinct and to provide conditions
	Ben Ysursa, Secretary of State, stated that this legislation allows County Commissioners the option to designate a precinct as a “mail” precinct. Mail ballot precincts may contain no more than two hundred and fifty registered electors. Elections conducted in precincts designated remote will be consistent with absentee voting with some special provisions as stated in the bill. Mr.Ysursa said that these changes are the first steps toward Federal Mandates which will be coming over the next few years. This will help to save money by reducing the number of poll workers. It will test the waters. Senator Stennett asked if this will take effect this year. Mr. Ysursa said they think so as it is already on the radar screen for some small precincts. Senator Stegner said that previously he had no problem with this bill, but that was when it was his understanding that it would be limited to very small precincts of 8 to 10 voters in remote locations. The bill now describes 126 precincts of 250 which is different from his previous understanding. Mr. Ysursa said they had fluctuated on the “size” number and he pointed out that it is ultimately up to the County Commissioners to make the determinations of which precincts they choose. Senator Stegner said it is possible the commissioners could ensure higher voter turn outs where they are mailing the ballots. He said it could potentially amount to 10% of all precincts qualifying. He questioned that it might be possible for the commissioners to designate and then manipulate the change. Mr. Ysursa said he believes in the good faith of local government. Senator Little asked about the payment by the Federal government for the new voting machines. Mr. Ysursa said the cost of the first machine is covered but after that there is some shared expense. Senator Darrington said that he knew the County Clerks support this legislation. He said absentee voting is increasing everywhere and we are seeing an erosion of Election Day as a special event. He asked Mr. Ysursa if he anticipated this as a continuing trend. Mr. Ysursa said that the key point is that, if you can increase voter turn out, then it is not a negative result. He said right now in Idaho there is an average of 10 to 13 % absentee voters. He said we need a renewed commitment to voting and we need to make it easier. Senator Davis asked for some additional numbers on the size and number of precincts. Mr. Ysursa said there are 47 precincts with 100 or less voters. Senator Stennett said that there are several very small precincts in his district.
MOTION	Senator Stegner made a motion that the committee send H560 to the Fourteenth order for amendment. Senator Davis seconded the motion. The motion carried by a Voice Vote.
H563	Relating to election laws; Amending Section 34-1009, to strike a provision for finding and discarding the absentee ballot of an elector who subsequently has died
	Representative Saylor stated that the purpose of this legislation is to amend Idaho Code 34-1009, deleting the section that directs election officials to discard the vote of a person who casts an absentee ballot but dies before election day. He said that the current procedure is not widely done and this change will bring Idaho into conformity with other states.
	Dan English, the County Clerk for Kootenai County, stated that they have been aware of this issue for some time and each election there are heart wrenching stories about elderly who vote as their last act . He said this issue can also effect military personnel. He supports H563.
MOTION	Senator Calabretta made a motion that the committee send H563 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
H608	Relating to the State Treasurer; Amending Section 67-1211, to provide that the State Treasurer must pay warrants on any of several funds in his office as prescribed by law
	Ron Crane, the Treasurer for the State of Idaho, stated that this legislation places a limitation on the size of warrant that can be cashed in the State Treasurers office at $2,000 total. He said most of the warrants they cash are remuneration from the state. However, there is one individual who has been presenting a large warrant each month. In order to provide the larger sums it is necessary for their office to employ Loomis Fargo and then maintain the cash. This also presents security concerns. They prefer not to have to maintain large amounts of cash.
MOTION	Senator Little made a motion that the committee send H608 to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. The motion carried by a Voice Vote. Senator Darrington will sponsor this bill in the Senate.
ADJOURNMENT	There being no further business, the committee adjourned at 4:40 PM.

DATE:	March 3, 2004
TIME:	3:15 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	Senator Calabretta made a motion that the minutes for March 1, 2004 be approved as written. Senator Little seconded the motion. The motion carried by a Voice Vote.
RS14221C1	Senate Resolution; To express appreciation and gratitude in memory of Janice Dixon for her dedicated and devoted contribution to Idaho Education and to the lives of Idaho children
	Senator Davis stated that this Resolution is to recognize the good work done by Janice Dixon while educating our children. He said he had volunteered in her classroom and personally witnessed her efforts.
MOTION	Senator Stennett made a motion that RS14221C1 be sent to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
RS14152C1	Relating to the Idaho Commission on the Arts; Amending Section 67-5601, to revise the Declaration of Policy, to strike restrictive language; to provide administrative authority to the Executive Director
	Dan Harpole, Director for the Commission on the Arts, stated that this bill is the final correction to two other bills which have already been heard before this committee. He said it is basically a housekeeping bill to correct the language in the Idaho Code with regards to the Idaho Commission on the Arts.
MOTION	Senator Davis made a motion that the committee introduce to print RS14152C1 and then send it to Second Reading. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
RS14191	Relating to Streamlined Sales Tax System; providing legislative intent.
	Senator Bunderson stated that this legislation allows Idaho to work with 44 other states and the District of Columbia in solving two major problems resulting from the explosive nationwide growth in Internet sales. He said that in Idaho, such sales in 2001 is estimated to have resulted in lost business to Idaho retailers of $880 million and sales tax avoidance of $44 million or 5% of the total sales tax receipts. In 2006 it is expected to grow to over $3 billion in retail sales lost to Idaho’s taxpaying businesses and a loss of sales tax revenue due to tax avoidance of $151 million or 14% of the total estimated sales tax collections. He said passage of this legislation allows Idaho to fully participate with the Streamlined Sales Tax Implementing States.(SSTIS) Senator Stennett asked if, after the bill is printed, it will go to Senator Bunderson’s committee. Senator Bunderson said that since it deals with public policy, he thought it would be returned to the State Affairs Committee. Senator Little said he was experiencing dejavu as this bill seemed familiar. Senator Bunderson said he was probably recalling a Joint Memorial regarding this issue which was one of the last bills from the last session. Senator Calabretta mentioned that the Fiscal Impact statement should include estimated travel expenses.
MOTION	Senator Stegner made a motion that the committee introduce to print RS14191. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen explained to the hearing that there were seventeen people who wanted to testify and that we were on a limited time allotment as the Senate planned to go back into session at 4:30PM. Therefore testimony would be limited to three minutes.
H502	Relating to Telecommunication Regulation; Amending Section 62-604, to prescribe an election by the corporation to govern applicability of the Chapter to certain telephone corporations
	Bill Roden, representing Qwest, stated that this proposal will permit currently regulated telephone companies the option to elect to be regulated pursuant to Title 62, Idaho Code, rather than Title 61. He said that in 1988, legislation was approved that allowed existing telephone companies to elect an alternative form of regulation, eliminating the monopoly and rate of return pricing system established in 1913, for all telecommunication services except basic local residential and small business services. In 1996, federal law mandated the ultimate removal of all state and federal barriers to market entry by competing telephone companies. He said today, unregulated companies serve and compete for local residential and business landline customers in previously monopoly-protected areas of Idaho. He reviewed the sections of the bill. He said the PUC will continue to have a regulatory role to protect the public interest, pursuant to Title 62, Idaho Code, and that the bill requires that a report of the effects be given to the Legislature in a year to eighteen months after implementation.
	Brent Duvall, is an officer of the Communication Workers of America,(CWA) who retired after working for Qwest for 28 years. He said he has watched the history of Qwest in Idaho. He said Qwest brought 500 good paying jobs to Idaho. He said they are not afraid of competition but they should be allowed a level playing field. He said they are good neighbors and CWA supports this legislation. Senator Calabretta said that, as Mr. Duvall had mentioned, seniors are very fearful about this change. She asked how the CWA has interacted with them to educate them about this legislation. Mr. Duvall said they have many retirees asking questions and that there is someone here at this meeting from the Retiree Council who will be speaking.
	Stan Hobson, a retiree who lives in District 16, expressed concern that passage of this bill will defeat the efforts of the Public Utility Commission (PUC) to maintain stable rates. He said the ruling from the PUC concluded that the requirement for “effective competition” had not been shown. He said the PUC determined that they cannot find that cell phones are functionally equal to landline phones and that wireless is not a suitable substitute. He asked the committee to leave oversight with the PUC.
	Dave Whaley, President of the American Federation of Labor and Congress of Industrial Organizations (AFLCIO), stated that they have 20,000 members. He said a year ago the Department of Labor and the Governor were instrumental in bringing 400 more jobs to Idaho with the installation of Digital Subscriber Line (DSL) Service. He said they think Idaho is a fair competition area and they ask the committees support for H502.
	Emily Jones is a retiree who lives in Garden City and she is a member of ICAN (Idaho Citizens Action Network). She said they oppose H502 because it is adverse to low income people. She said members like herself are unable to purchase cell phones. She said that if rates go up, she will face difficult choices and communication with her family will face an obstacle. Senator Calabretta asked her if any of the members of ICAN had taken advantage of the Qwest Programs that help the elderly pay their bills. Ms. Jones said it did not work for her as she has a Medical Alert System as part of her phone system.
	Lynn Cundick is retired from the Association of Telephone Pioneers. He said this year they have seen the cost of their health care benefits increase significantly which is partly because the Qwest Company has been experiencing challenges. He said many of their retirees are in tough situations but they want to see the company continue to provide a fair retirement package. He said although the committee is hearing challenging arguments, Qwest has been a good citizen for over 50 years and they want to be competitive. He said it is a difficult thing for Qwest to judge the market. They support H502. Senator Calabretta stated that her father worked for AT & T American Telephone and Telegraph for forty years and before he died he told her that he never imagined all the changes in communication that have occurred. Senator Darrington stated that he believes that Mr. Cundick knows the communication business. He would like him to explain to him what to tell his neighbors about what the benefits will be to them of voting for this bill. Mr. Cundick said that if Qwest remains a viable business, rural areas will benefit. The fewer the customers who pay into the base, the higher the rate required from the base. He said it is a fact that deregulation has brought rates down.
	Vera Conrod, a retiree, spoke as a citizen. She said she is concerned that certain companies have contributed $20,000 to the members of the State Affairs Committee. She said we see you (the committee) as good people caught in a bad system. She provided a handout which listed campaign contributions for committee members. She asked the committee to be open to the communities concerns. Senator Calabretta asked Ms. Conrod if she had ever had a Senator refuse to talk to her. She said she had not.
	Roger Madsen the Acting Director of the Department of Commerce and Labor, said that he endorses the statements made by Jim Schmit and Mr. Whaley. He said he is not aware of another company that has created more high paying jobs in Idaho. He said this change is a win/win situation for business and for the people of Idaho. He said Qwest has cut thousands of jobs corporate wide in other states while here in Idaho we have had growth. He said these jobs are around the state and we hope to further expand the employment base. Mr. Madsen said that with the growth of external competitors, it is important to create a business environment. Senator Little asked about the compatibility of their services in rural Idaho. Mr. Madsen said they promote a positive business environment and emphasize the positive power rates that are available. He said communities are promoted as customer service friendly. He said Qwest investing in expanding connectivity throughout the state was very important.
	Representative John Gannon speaking for himself, stated that the overriding issue here is if there is enough effective competition for local wireless services. He said he does not believe cell phones are enough competition right now. He said the Idaho Statesman just today had an article about a court case in which the judge ruled that the Federal Communication Corporation’s rules to implement re-sale prices are not lawful and will have to be re-written. He said at the last hearing Mr. Schmit from Qwest, had agreed to a warranty of a cap on residential rates but such an agreement should be made part of this legislation. He said if you review their financial reports, Qwest has had a profitable year.
	Gerald Schroder, a retiree, who is a member of Chapter 518 of the American Association of Retired Persons( AARP) from Caldwell said that they oppose H502. He said their local chapter is concerned about their members. They commend the PUC decision and feel that H502 is an affront to that decision. He said that they were glad to hear from President Schmit from Qwest that they love the elderly. He said “We elderly need love but we also need the security of the PUC.” He said they request that the bill be pulled back for a full review. Senator Calabretta asked if it isn’t true that changes are difficult for Seniors and they feel harassed with new choices of phone services. Mr. Schroder said that may be true as he is still trying to manage his own cell phone.
	Clyde Dailey, the Executive Director for AARP of Idaho, stated that they object to this legislation. He referred to handouts that had been presented at the first hearing for H502. He said AARP believes that this bill places at risk our most vulnerable senior members who have not yet transitioned to cellular phone use and who rely mostly on landlines for their telephone needs. Their membership also opposes it because of their belief that telephone rates will be increased and that they will not be able to afford vital telephone service. He stated that if the bill passes and a cost spiral occurs, they will be back to the legislature asking for regulation by the PUC.
	Jack McMahon, an attorney, stated that in 1913 the Idaho Legislature made a compact with the Utility Companies in which they agreed to provide quality, universal service at reasonable rates. He said you cannot have an unregulated monopoly. He said that if deregulation occurs and rates go up it will put people who have been able to pay up until now on Welfare. He said rural Idaho citizens will be disadvantaged and small business operators will have no competitors to chose from. He said this change will turn enormous clout to one company. He said three of Qwests other services are already deregulated. He pointed out that the bill also applies to other utilities and he asked the committee what might happen if other outside companies take over some of these providers.
	Molly O’Leary, an attorney , spoke for herself and said that she represents small start up communications companies in Idaho. She said that the reason the committee is not hearing from that sector is because that competition still does not exist in Idaho. She said this legislation is premature and we are not ready yet. She asked why the Legislature should ignore the expertise of the PUC. She said it would behoove the Legislature to recognize the PUC experts and that they concluded that effective competition does not exist. She said that H624, the companion bill to H502, is problematic because the reality of the marketplace is that residential consumers and small business owners don’t have the time or resources to file a complaint. She said there is not a sufficient penalty for predatory pricing.
	Steve Ahrens, the President of the Idaho Association of Commerce and Industry, (IACI) said their members are interested in this question. He said one point that has not been emphasized is that the Legislature does retain its option to make changes. He stated that since they are facing the rapid growth of competitors, Qwest doesn’t have a monopoly. Mr. Ahrens said that competition results in lower prices and they support H502. Senator Davis asked if within the membership of IACI, there had been a difference of opinion about this issue between the small and larger businesses. Mr. Ahrens said they had a good discussion of the pro’s and con’s.
	Chris Doyle, is a consumer of Qwest residential services and is entirely dependent on landline phones. He said he needs voice mail for when he is on the computer and on the phone and his computer depends on the phone line. He said in absolute terms most of us cannot give up landline phones. He asked what is there to prevent Qwest from raising rates. He said they could selectively increase rates to those customers who don’t bundle services with them. They can compete in there other product areas and they don’t need relief from their competition. He said the Legislature should abide by the PUC decision and this bill should not be heard.
	Mark McLaughlin, a local market representative for Qwest, said he has the advantage of knowing customers in Idaho. He said he disagrees with statements that nearly every home in Idaho has a landline. He said that in the larger communities, penetration is close to just 50% and has been decreasing over the last few years. He said there are existent wire line companies that want residential and small business service customers. He said their customers are inundated with calls from local providers and the competition is definitely out there. Senator Stennett asked who the local carrier is in Haley. Mr. McLaughlin did not know.
	Senator Richardson asked the representatives from the PUC to explain what their determination had been about competition. Commissioner Marsha Smith, from the PUC, stated that they did not do their own survey but rather considered the information which Qwest presented to them which was a survey of peoples perceptions. She said the information provided was not sufficient to meet the statutory requirements for deregulation. Senator Geddes said that it was suggested that the competition in rural Idaho would help control rates and he asked if she agreed. Commissioner Smith said that they also regulate 15 other phone companies some of which are from out of the state and they have not heard from them. Commissioner Dennis Hansen stated that there are many other small phone companies in this state. He said in order for them to get universal support they charge 125% above the state average to participate in Universal Funding. He said this bill will also effect other carriers in rural areas. Commissioner Hansen stated that if Qwest was to raise there rates, then other rural phone companies that are dependent on Universal Service Funding, would have to increase their rates by 125% of whatever Qwest increased their rates by. In reference to Senator Gedde’s question, he said that small companies in Senator Gedde’s district would be affected if Qwest raises their rates. Senator Little asked if any one provider has an advantage when bidding on high density developments and if another company could under bid Qwest. Commissioner Smith said there is a Local Exchange Service and companies have certificated areas. He asked if Cambridge Telephone supplies Hidden Springs. Commissioner Smith said she was not sure. Commissioner Smith offered to research the question and report back to Senator Little and the committee members.
	Bill Roden stated that Hidden Springs is unregulated. He said they can get Qwest there but the customer would have to agree to pay an extension charge for that service so the company there has an advantage. Mr. Roden said Qwest is required to provide services to their competitors as they use Qwest lines. He said the market is open to competition now. He said they used to provide services to the Idaho Lottery and then they went to a Satelite System. He said they have lost several court houses and city halls to competitors. He said the compact was for when they truly had no competition but that monopoly is lost now. He said they have lost 54,000 lines and everyday MCI is offering local lines. He asked how much longer they must wait while competitors take away their business. He said at the last hearing assurance was given by Mr. Schmit and it has now been reduced to writing for the committee.
	Mr. Jim Schmit , the President of Qwest of Idaho, presented a letter to the committee members. He stated that he had offered a warranty at the last meeting and now he has put that offer in writing. He said they agree “to keep rates at or below their current level through year’s end 2004.” In addition, Qwest committed for the three-year period from January 1, 2005 through December 31, 2007, that– in addition to being regulated by the competitive market-rates for basic local exchange service would be subject to a “universal assurance cap.” That cap is not intended as a prediction of price increases but instead provides an additional guarantee (beyond that provided by the competitive market) that prices will “remain below a level already determined affordable for Idaho basic local exchange customers by the Commission, i.e., the rates established by the Commission for Idaho’s regulated independent companies.” He concluded that the letter confirms that if H502 is signed into law in its current form, Qwest will adhere to the commitments in this letter that guarantee a continuation of affordable basic local exchange service in Idaho. (See Attachment)
MOTION	Senator Davis made a motion that the committee send H502 to the floor of the senate without recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Stennett requested to be recorded as voting no. Senator Darrington stated that his vote today is not necessarily indicative of how he will vote in the senate.
H624	Relating to telephone corporations; Amend Section 62-617, to clarify and limit the exemption from antitrust liability for telephone corporations that have elected regulation pursuant to Chapter 6 Title 62
	Chairman Sorensen announced that H624 will be moved to the State Affairs meeting on Friday March 5, 2004.
ADJOURNMENT	There being no further business, the meeting adjourned at 4:45 PM.

DATE:	March 5, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Acting Chairman Darrington and Senators Geddes, Davis, Stegner, Little and Calabretta
MEMBERS EXCUSED:	Chairman Sorensen and Senators Richardson and Stennett
MINUTES:	Senator Calabretta made a motion that the minutes for March 3, 2004 be approved as written. Senator Little seconded the motion. The motion carried by a Voice Vote.
	Acting Chairman Darrington stated that there are some adjustments to the order of the agenda as Representative Shepherd will be allowed to present first due to a pending time constraint. He thanked Representative Shepherd for the books she gave to the committee members.
HCR39	Concurrent Resolution; stating findings and expressing support and encouragement for the efforts of the Pulaski Project
	Representative Shepherd presented each committee member with a copy of the book , “Year of the Fires” by Stephen J. Pyne which was provided by the Director of the Pulaski Project, Ron Roizen. About a year ago, a Shoshone man had an idea to revitalize the Pulaskii Trail. The intent of this bill is to express support for the restoration of the Pulaski Trail and the development of a Wildfire Education Center and Museum in the Wallace area of North of Idaho. There is particular excitement about the planned “fire room” in which you will be able to experience the sights, sounds and the feel of being within a forest fire. This will bring in schools, tourists and those studying forest fires, that may be a positive economic factor to the Silver Valley. However, they understand that it will take some time for it to be completed. On August 20^th of 1910, in the mountains of North Idaho and Western Montana, the worst fire in American History erupted burning over three million acres of timber land in just two days and it claimed the life of 86 people. On that afternoon just outside of Wallace a young District Ranger with the newly formed Forest Service, realized that he and his crew were trapped in the fire and he must make an attempt to save their lives. Ed Pulaski lead his crew to safety in an abandoned mine, having to hold them there at pistol point. He made them lay on the floor and he beat out flames at the entrance. The next morning, all but five of them emerged safely. Mr. Pulaski was hospitalized for two months with various injuries and burns. In 1984 the Forest Service dedicated a monument to him and the other people who lost their lives in this heroic event. In 2002, a group of interested individuals launched the Pulaski Project and since then they have received two grants from the Shoshone County Commissioner for the educational aspect of the project. Also, Senator Craig has $300,000 for the Pulaski Project in the 2004 budget for the Forest Service. They are asking the Legislature for support and encouragement of the Pulaski Project.
	Acting Chairman Darrington said there has been a revival of interest in regional history in recent years all over the state of Idaho and this project is an example.
MOTION	Senator Calabretta made a motion that the committee send HCR39 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
HCR45	Concurrent Resolution; stating findings and urging support of the Idaho Employer Support of the Guard and Reserve
	Representative Wood stated that this Resolution is brought to us by the Idaho Office of the Employer Support of the Guard and Reserve (ESGR). On November 14, 2003, the National ESGR gave awards to nine companies for their outstanding support for their military associates. She stated that Albertson’s Incorporated was the company from Idaho that was chosen. This legislation asks that we recognize and support this group, the Employer Support of the Guard and reserve (ESGR). She said this legislation expresses support and encouragement for Idaho national Guard and Reserve personnel and the public agencies and private businesses they work for by recognizing the efforts of the Idaho Employer Support of the Guard and Reserve. The committee received several handouts regarding this organization.
MOTION	Senator Geddes made a motion that the committee send HCR45 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Bailey will sponsor this bill in the Senate.
H624	Relating to telephone corporations, Amending Section 62-617, to clarify and limit the exemption from antitrust liability for telephone corporations that have elected regulation pursuant to Chapter 6, Title 62.
	Bill Roden, representing Qwest Communications, stated that H624 is a companion bill to H502 which deals with two issues. The first issue is that currently Title 62 provides for an anti-trust exemption for companies acting thru the Commission. There is concern by other companies that the election option transfer to Title 62 could be construed to be an order of the Commission, and, therefore the company could claim antitrust exemption some time in the future. This proposal amends Section 62-617, Idaho Code, to clarify that, as to telephone corporations who have exercised the election for alternative regulation, the existing exemption from antitrust laws applies only to the extent that the telephone corporations service is the subject of a specific Public Utilities Commission order that is entered after the election has been made pursuant to Title 62, Idaho Code. This amendment is requested on behalf of the Idaho Telephone Association. The second part of the legislation adds a new section to address the potential issue of predatory pricing by any telephone corporation and authorizes the Public Utilities Commission to take such action as may be necessary to assure that telephone corporations do not price basic local exchange service below the company’s average variable cost of providing the basic local exchange service. This provision is in accord with general antitrust principles and is intended to prevent ant-competitive pricing of basic service. This addition is made at the request of MCI Communications.
	Ken MCClure, representing the Idaho Telephone Association, stated that they are small rural phone companies who provide services to areas where they might otherwise not have services and they deal with unattractive market situations. He said currently they have to compete with Qwest and they want to make sure that Qwest has to abide by the same set of rules. They want to make it clear that the order of the Commission approving their deregulation election could not be construed as an order that they would thereafter be acting by order of the PUC and therefore be exempt from antitrust laws. They should have to compete fairly with us. Chairman Darrington asked if some of the members of the Idaho Telephone Association were unregulated. Mr. McClure said they have four members that are cooperatives and are unregulated. Senator Darrington asked if the independent companies are regulated and if so, how the members that are independents will be affected. Mr. McClure said there is the same effect on all telephone companies whether regulated or unregulated. A regulated company that is told to do something by the Public Utility Commission shouldn’t thereafter be subjected to antitrust liability. However, when a company is doing what it wants to do, it should not be protected from antitrust liability. Senator Davis asked Mr. McClure what their association’s position was on H502. Mr. McClure said they didn’t actively support the bill, but they have no objection. Senator Davis asked if they brought H624 in lieu of objection. Mr. McClure said that is correct. Senator Davis asked Mr. McClure to walk him through 62-617. Mr. McClure stated that when a company files an election to be deregulated in all or a portion, it will then receive an order from the PUC approving its election. If a company chooses to deregulate all or a portion of its services under H502, it is thereafter free to compete. Pursuant to the order of the Commission, it will be doing things which are on line 18, in compliance with the order of the Commission. His client’s concern was that it may be misconstrued as not subject to antitrust laws. Senator Davis said the objective is that deregulated companies are still bound by the antitrust laws of Idaho. Senator Davis asked where they would file a complaint. Mr. McClure said that a complaint for violation of the antitrust laws would be filed in the courts. Senator Davis asked Mr. McClure to further explain the next section. Mr. McClure said after a company has elected to be deregulated and it obtains an order of the Commission, confirming it’s deregulation, the antitrust exemption (which is the first sentence of this section), will not apply to its activity, unless there is another order of the Commission.
	Senator Davis said he understands Section One to say that if a utility provider is performing a specific act as directed by the PUC as part of the deregulation order, then antitrust laws will not control. However, a deregulation order doesn’t give that protection, unless there is some other specific provision in there that says your deregulated but make sure you do “X” . Then you do get the protection of the immunity from the antitrust laws. Mr. McClure said that was a pretty close interpretation with the exception of one other alternative which applies when there is a service complaint about a deregulated company or a dispute between two companies.
	Joe Miller, representing MCI, is a former Public Utility Commissioner. He said MCI is the company that started the action against American Telephone and Telegraph. He said the purpose of Section Two of this bill is to prevent predatory or anti-competitive pricing. The standard in the statute is the average variable cost. Any price below the average variable cost is predatory. He said H502 creates a third path to pricing flexibility. He said Section One and Section Two are complimentary. Section Two is forward looking and enables the commission to detect bad conduct as it is occurring and then establish a price forward. Acting Chairman Darrington verified that if somebody comes in and pirates local service, then there could be a petition back to the Commission to set a minimum price that would reflect the corporation’s average variable price. He asked if in his experience on the PUC, Mr. Miller found that his staff and analyst were pretty effective in determining the true cost of service. Mr. Miller said as Senator Darrington had alluded, there are many different ways of defining cost. He said the average variable cost is easier because it is an accounting cost and he said the concept is quite well known. Senator Davis asked what MCI and Mr. Miller’s role was as it relates to H502. Mr. Miller said MCI was neutral on H502. Senator Davis asked if they were neutral because of the prior agreement they reached with H624. Mr. Miller said that was correct.
MOTION	Senator Davis made a motion that the committee send H624 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
ADJOURNMENT	There being no further business, the committee adjourned at 3:45 PM.

DATE:	March 8, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	None
MINUTES:	The minutes for March 5, 2004 will be held until the next meeting.
S1437	Relating to the Streamlined Sales Tax System; providing Legislative intent
	Senator Bunderson said that this legislation begins to address the significant problems which have developed due to rapid sale of goods over the Internet. He said that Idaho lost an estimated $44 million in sales tax revenue in 2001. He said only when a company has a presence or “nexus” in the state can they be required to pay the sales tax. This creates an unfair advantage for remote sellers. He said currently, 45 states have a sales tax and many of them allow a local option taxation rate. It would be very difficult for a remote seller to track all those variances in tax rates. The Streamlined Sales Tax Agreement will accommodate that situation by making one rate for the state. Senator Bunderson stated that Idaho has not yet granted a vote to our public policy delegate and this bill will allow the Tax Commission to vote. Before, we can go further with this program, other legislation will have to be passed both in Idaho and in Federal Law. There are currently, several bills in the United States House and Senate which address this issue. However, they probably will not pass until some of the bugs are worked out. Senator Bunderson said that S1437 will bring Idaho to the table. Chairman Sorensen asked if we become a member of the Streamlined Sales Tax Agreement, does that mean we must pass enabling legislation. Senator Bunderson stated that S1437 only allows the Tax Commission to vote in the final drafting of the agreement.
MOTION	Senator Calabretta made a motion that the committee send S1437 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Bunderson will sponsor this bill in the Senate.
H645	Relating to retail sale of liquor; Amending Section 23-995, to provide application of provisions of governing split ownership of a facility to a golf course

	Representative Shepherd stated that in 1990, the Legislature adopted legislation to allow ski resorts to retain their liquor license privileges in the event of a split in ownership. A similar situation exists today with a golf course due to a split in ownership of property at the Highlands Golf Course in Post falls. Representative Shepherd provided a hand out to the committee which described the golf course and spa in Post Falls. The golf course was purchased by the surrounding neighbors while the Spa and Clubhouse were sold separately. The Country Club and Spa are seeking to retain their Liquor License privileges. This does not add licenses, but rather allows the purchaser to retain the original license. This bill seeks to ensure that golf courses are not penalized when sold, just as ski resorts are not penalized. Senator Richardson asked if they wanted the liquor license to stay with the owner of the club or to stay with the business. Representative Shepherd said the liquor license is non-transferable and stays with the business. Senator Stennett asked if that business was a private enterprise. Representative Shepherd deferred to Chuck Lempesis. Mr. Lempesis said it is a private golf course and the Country Club was not sold with the course. He said this is not an effort to get a new license, but rather that they lost their privilege because current law does not provide for split ownership sales. Senator Stegner asked if the golf course is now without a club house. Mr. Lempesis said that is correct, but the original lounge and restaurant is still located there. Senator Stegner asked if it is possible that they would build a new club house and then want to sell it off. Mr. Lempesis said they would not as it is too difficult for spin off competitors. Senator Little asked what would prevent a developer from putting five buildings in an area to use one liquor license. Mr. Lempesis said nothing prevents it and that situation could actually occur today under existing law. However, he said it would be difficult selling to the competition due to the proximity of the other businesses. Senator Davis asked if the sale of the Post Falls properties is final. Mr. Lempesis said the sale is final. Senator Davis said that if the sales are closed, he didn’t see how this legislation will help solve their problem without a retroactive application. Mr. Lempesis stated that they believe the language in the statute refers to the past tense so it would apply.
MOTION	Senator Stennett made a motion that the committee send H645 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Stennett will sponsor this bill on the floor of the Senate.
H539	Relating to bills for electric services; Amending Chapter 3, Title 61, by the addition of a new Section 61-337, to allow for information regarding fish and wildlife mitigation costs to be included on bills for electric service.
	Senator Pearce stated that the intended purpose of this legislation is to allow the consumer of electrical power to be aware of the cost of fish and wildlife mitigation and that the utility or entity may list the cost as a line item on the monthly bill received by the consumer. A yearly statement would also be provided to the consumer listing the recipients of such mitigation funds. He provided a handout for the committee which showed a sample bill and a letter from John J. Williams, an Account Executive with the Bonneville Power Administration. Senator Stennett asked what is the intention of mandating this information. Senator Pearce said the intent is to provide information to the consumer. Senator Geddes stated that paragraph 3 states that they must identify where the money is sent but it does not stipulate the y disclose the amount given. Senator Pearce said that paragraph 3 ends with “where remitted” and the intent is to identify what share of the bill is spent on mitigation. Senator Geddes said that the way it is currently worded does not include requiring an amount. Senator Richardson asked if the Bonneville Power Administration is required to do this wildlife work. Senator Pearce referred to the letter in the handout which states; “Bonneville Power Administration (BPA) has a mandate, under the Pacific Northwest Electric Power and Conservation Act, to undertake activities to protect and enhance fish and wildlife resources adversely affected by the hydroelectric development of the Columbia River Basin.” Senator Richardson asked then, if it is mandated, what can be done about it. Senator Pearce said the public needs to know what is being imposed on them as electricity consumers. Senator Darrington stated that paragraphs one and two say “may” which means it is optional. Senator Pearce agreed they are optional but as they intended the year end report is mandatory and thus it says “shall.” Senator Davis stated that since lines 22 through 25 of the bill are optional, it may be questionable that H539 as written, accomplishes their intent.
	Neil Colwell, representing Avista Corporation, stated that as a utility they would be affected by H539. He said that in addition to the problems already mentioned about the bill, they are concerned about line 24 which states “a statement shall be sent to each consumer.” He said their corporation has 225,000 customers in the state of Washington. He said the bill also does not distinguish types of consumers and they have wholesale consumers. He said they would recommend significant amendment before approval of this legislation. Senator Calabretta asked if Avista currently has any easy to read document regarding their mitigation costs. Mr. Colwell said the information is somewhat available on their web site page. Senator Stennett asked if it would be expensive to assemble this information. Mr. Colwell said they have the information accumulated and it could be manipulated into a report. There was further discussion by committee members regarding the report procedure. Senator Geddes stated that the authors of H539 probably thought that it would be important for customers to know the costs of mitigation when a license re-issuance is occurring. He said the Federal Energy Regulatory Commission is not concerned with the amount that is spent, but rather that there are good results for wildlife habitat. Senator Geddes asked if Avista gets complaints about information in their bills. Mr. Colwell said they do. Senator Davis stated that the sponsor of this bill wants the public to understand the cost associated with mitigation and he asked Mr. Colwell if the “magic language” was found, would they be willing to show “the projected annual cost.” Mr. Colwell said that if forced, they would probably go for an annual statement but not as a separate mailing. Keith Daman, a member of the Idaho Farm Bureau Federation, said they support H539. He said recently he has found out that some property he leases, is being purchased by the Coeur d’Alene Tribe with funds from the BPA. He said that with further inquiry, he discovered that a neighbor’s farm is also being purchased. He has concerns about how his community is being affected. He said these purchases are being funded by the ratepayers who are unaware of how that money is spent. He asks the committee’s support for H539. Russell Westerberg, representing Pacific Corp, stated that they have no opposition to H539 as far as sharing the information about the cost of mitigation. However, he said that in the six states that they serve, they did a customer survey and consumers said they don’t want additional information in their bill. He said the bill should be changed to clarify that a utility can choose whatever means they want to comply with the information disclosure.
	Chairman Sorensen announced that the Senate was going into session again at 4:00 PM so it was necessary to adjourn the State Affairs Committee meeting. She said that the remaining bills on the agenda will be re-scheduled as soon as possible.
ADJOURNMENT	The meeting was adjourned at 4:00 PM.

DATE:	March 10, 2004
TIME:	2:50 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little and Calabretta
MEMBERS EXCUSED:	Senator Stennett
MINUTES:	Senator Calabretta made a motion that the committee approve as written the minutes for March 5, 2004. Senator Davis seconded the motion. The motion carried by a Voice Vote.
	Senator Richardson made a motion that the committee approve as written the minutes for March 8, 2004. Senator Calabretta seconded the motion. The motion carried by a Voice Vote.
H712	Relating to the designation of the State Raptor; Amend Heading for Chapter 45, Title 67, to designate the Peregrine Falcon as the State Raptor of the state of Idaho.
	Representative Snodgrass introduced student representatives from the fourth grade class at St. Joseph’s School as the students from Peregrine Elementary were unable to attend. He presented a letter from the fourth grade students stating that they believe the peregrine falcon is important to Idaho and they would like the Peregrine Falcon to become our State’s raptor. Jack Cilek expressed the student’s desire to make the Peregrine Falcon the newest of Idaho’s state symbols. He said that in December they sent a letter to the Governor requesting consideration of a state raptor. Katie Keller reported that the Peregrine Falcon was in danger of distinction but then the Peregrine Fund was established and moved to Boise in 1984. Their efforts to restore the peregrine population has been so successful that the falcon is now de-listed from the endangered species list. Andrew Bruce stated that in order for a bird to be considered a raptor , it must be considered a predator and use talons. He said they are a symbol of strength and courage. Blaze Gamboa stated that the Peregrine Falcon’s name means “wonderer.” He reported that they have excellent eyesight with three eyelids. They are territorial in nature. He said when the falcon was de-listed from the endangered species list there was a great celebration which included such celebrities as Walt Disney’s son.
MOTION	Senator Little made a motion that H712 be sent to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
RS14258	Relating to the Legislature ratifying an amendment to the Constitution of the United States, Amend Chapter 5 Title 67
	Senator Davis stated that recent media coverage of the Idaho Legislature’s procedures for ratifying amendments to the constitution of the United States, resulted in him researching the Senate Journals since 1972. He said that in 1972, when the Equal Rights Amendment was considered, it was ran as a Senate Joint Resolution which required a two thirds majority vote. Then in 1975, Lieutenant Governor John Evans made a request of the Senate Judiciary Rules Committee to do a report on whether a two thirds majority was required. Edith Klein, who was then Chairman of that Committee, then reported that their recommendation was that a two thirds majority was required. That recommendation was then presented to the Senate and the Senate voted to require a two thirds majority. Later, in 1977, a ratification was prepared as a House Concurrent Resolution. The rules say that a Concurrent Resolution only requires a simple majority. The question then came before the Senate whether a two thirds majority was required. Ultimately, the Pro Tem, in light of the previous year’s determination, required the two thirds majority. Then the Caucus overruled his decision in an 18 to 17 vote. Senator Davis stated that the media has identified that Idaho has a checkered past as to whether the requirement for ratification is for a two thirds majority or a simple majority. This legislation will adopt the concurrent resolution process. Senator Stegner stated that he would prefer a Joint Resolution requiring a two thirds majority vote and asked why Senator Davis was suggesting a simple majority. Senator Davis said that the method for amending the state constitution versus amending the United States Constitution are different. Senator Stegner said that we require a two thirds majority of both bodies before we have a citizen vote. Senator Davis stated that on a state level, when we amend we do require a two thirds majority as the state legislature is primary . In the ratification of amendments to the U.S. Constitution, the states are the secondary component representing the people. He said he chose this approach because it is the most current precedence of the Idaho Legislature. Senator Little asked what other states do. Senator Davis said each state gets to make their own determination. Senator Calabretta said she appreciated the research of the historical information as this issue has been a “political basketball game.” She stated that this is an important issue and the general public needs to know why they don’t get to vote. Senator Davis said they have not been part of the ratification in the past.
MOTION	Senator Richardson made a motion that RS14258 be introduced for print. Senator Geddes seconded the motion. The motion carried by a Voice Vote. The bill will be returned to the State Affairs committee for a hearing.
RS14252	Concurrent Resolution providing approval for the Department of Administration and the Eastern Idaho Technical College to enter into agreement with Idaho State Building Authority to finance and develop a specified facility.
	Senator Davis stated that last year the 2003 legislature adopted HCR 30 authorizing several higher education projects to be financed through the Idaho State Building Authority, including a new Health Care Education Building for Eastern Idaho Technical College. The original cost was $6,360,000 plus a grant for $3,500,000 from the U.S. Department of Commerce, Economic Development Administration(EDA). It has now been determined that the terms of the proposed grant, if accepted, makes it substantially more costly to finance the state’s portion with bonds through the Idaho State Building Authority. This resolution would authorize financing of the total project funds for the Health Care Education Building, estimated to be a total of $9,860,000, through the Idaho State Building Authority. Senator Darrington asked why this resolution is necessary. Senator Davis explained that the original Statement of Purpose created questions as it referred to the $3.5 million from the E.D.A. This resolution will correct the Statement of Purpose.
MOTION	Senator Richardson made a motion that the committee send RS14252 to the floor of the Senate with a do pass recommendation. Senator Davis seconded the motion. Senator Little made a Substitute motion that the committee send RS14252 to print and then have it returned to the State Affairs Committee. Senator Calabretta seconded the motion. The Substitute motion carried by a Voice Vote.
H539	Relating to bills for electric services; Amending Chapter 3, Title 61, by the addition of a new Section 61-337, to allow for information regarding fish and wildlife mitigation costs to be included on bill for electric service.
	Senator Pearce stated that after hearing the concerns that were expressed when this bill was considered at the last State Affairs committee meeting, they have prepared amendments to that bill. He asked the committee to send H539 to the Fourteenth order for amendment.
MOTION	Senator Darrington made a motion that the committee send H539 to the Fourteenth order. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
HCR44	House Concurrent Resolution stating findings and providing that the Department of Administration, upon appropriation of its budget request, related to Borah Post Office, should take the steps to facilitate and complete the acquisition.
	Pam Ahrens, the Director of the Department of Administration, stated that this concurrent resolution approves the Department of Administration taking the necessary steps to finalize the acquisition of the Borah Post Office from the United States, pursuant to the federal surplus property laws. She provided a report for the committee to review. It is contemplated that the Department of Administration would sublease available space directly to state entities. She stated that there is no cost of acquisition as the federal statutes allow for the conveyance without monetary consideration. The Department of Administration has requested spending authority of $650,000 for FY2005 to cover costs of operation, maintenance and repair. Operation, maintenance and repair costs are generated from tenant lease payments. Mrs. Ahrens said this project is part of Governor Kempthorne’s initiatives for the coming year. She said the property includes 1.4 acres and that 47% of the building is filled with Federal Agencies which will remain in the building. She said over time the available space will be offered to other state agencies which will reduce expenses. She said the conference rooms will also be very useful in the Capitol Mall area. Mrs. Ahrens said the pros include having no purchase cost, the building location is good, the current property value is 5.9 million and only minimal repair is required. She said the cons include that the building is 51 years old, the property cannot be sold but can only be transferred to another government agency, the Department of Interior requires certain audit procedures and any excess rent receipts must be used for other historic properties. Senator Stegner asked if the building could be torn down. Mrs. Ahrens said it could not. Senator Stegner asked about the level of security required. Mrs. Ahrens stated that the increased security is necessitated because the Appeals Judge is located in this building, but the cost is covered by the Federal Government. Senator Geddes asked about the furnishings in the Borah Post Office Building. Mrs. Ahrens said many of them belong to the individual tenants but they will work to acquire when possible. Senator Geddes asked how the building is heated. Larry Osgood stated that the heating is a hot water system heated by natural gas. Senator Geddes asked if there would be the capacity to use geothermal heating. Mrs. Ahrens said there was.
MOTION	Senator Darrington made a motion that HCR44 be sent to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Geddes will sponsor this bill in the Senate.
H532	Relating to county boundaries and county seats; Amending Section 31-110, to align the western boundary description of Boise County with the description of that boundary as shared with Ada County.
	Fred Tilman, Ada County Commissioner, stated that this legislation will correct a deficiency in Ada and Boise Counties that has existed for many years regarding boundaries. Both counties have had a written description of a section that are in conflict with each other. This bill will clarify the boundary area. He said the Ada County and the Boise County Commissioners are in agreement about this change. He provided a handout for the committee. Senator Little asked if they were adopting the 1864 or the 1915 description. Mr. Tilman said they are adopting the 1864 description. Senator Little asked about the corner section of Gem County. Mr. Tilman said the change would not have any impact on Gem County. Senator Stegner asked if this change would affect anyone’s property taxes. Mr. Tilman said that was reviewed but most of the property is owned by one family or is federal land which would not be affected.
MOTION	Senator Little made a motion that the committee send H532 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
H625	Relating to City Elections and campaign expenditures; Amending Section 50477, to provide applicability of campaign expenditure reporting to elections on citywide measures.
	Representative Elaine Smith stated that the purpose of this legislation is to provide applicability of campaign expenditure reporting to elections on citywide measures and to provide that the city attorney shall stand in place of the attorney general when campaign reporting law applies to elections in certain cities.
MOTION	Senator Davis made a motion that the committee send H625 to the floor of the Senate with a do pass recommendation. Senator Little seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
H691	Relating to wine sample tasting; Amending Chapter 13, Title 23, by addition of a new section 23-1325C, to provide that vintners, wineries and distributors may conduct or assist in wine sample tastings.
	Bob Corbell, the Executive Director of the Idaho Grape Growers and Wine Producers Commission, stated that an incident had occurred last summer during which some questions arose from Law Enforcement Officials with regards to the guidelines for wine tastings. He said this legislation was developed in order to comply with the interpretations of the law and to prescribe limitations on wine tasting. This legislation sets requirements and limitations for wine tasting on retail and other premises not licensed for sale of wine by the drink. It provides the limitation for sample size of wine and requires a specific area that the tasting sponsor can observe and ensure no minors or intoxicated persons are served. The legislation aligns Idaho with similar Oregon and Washington statutes. Mr. Corbell said this legislation is approved by the Department of Law Enforcement and by Idaho retailers. He said Idaho wine growing is a $50 million industry.
MOTION	Senator Stegner made a motion that the committee send H691 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. Senator Richardson made a substitute motion that H691 be held in committee. The Substitute motion died for lack of a second. The original motion to send H691 to the floor with a do pass carried by a Voice Vote. Senator Geddes and Richardson requested to be recorded as voting no. Senator Stegner and Senator Lodge will sponsor this bill in the Senate.
H692	Relating to Emergency Communications Systems; Amending Section 31-4801, to revise legislative purpose, addition of new Sections 31-4815 thru 31-4818, to create the Idaho Emergency Communications Commission.
	Michael Kane from the Sheriff’s Association, stated that this legislation was developed to set up a statewide commission to deal with 911 communications in Idaho. This bill contains four new sections to the Emergency Communication Act that provide for the creation of the Idaho Emergency Communications Commission; defines the purpose and the responsibilities of the commission; establishes a mediation role for the commission when conflicts occur between local government entities and it creates an Emergency Communications Fund that allows the collection of grants and funds from all sources for the purpose of providing a conduit for funding for 911 communications. He said this bill is supported by the cites, counties, chiefs and sheriff’s. Senator Calabretta asked if this legislation would conflict with the Homeland Security changes. Mr. Kane said this communications issue is separate from the military changes. Bob Wells with the Idaho Chiefs of Police, said that they support this bill as good legislation and request a do pass recommendation from the committee. Senator Stegner asked if the cities and counties were in support of this legislation. Mr. Wells said they were part of the committee and they approve of this bill. Vaughn Killeen, Ada County Sheriff, stated that this legislation is important because it takes local entities and marries them throughout the state, especially in areas without current services. He said that together they can move forward with a standard of thought. He said this will establish a relationship that does not currently exist. Senator Richardson asked if 911 operations are profitable. Sheriff Killeen said that it is not a profitable operation due to the wide spectrum of services involved and it depends on which community you live in.
MOTION	Senator Calabretta made a motion that the committee send H692 to the floor of the Senate without recommendation. The motion died for lack of a second. Senator Geddes made a motion that the committee send H692 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Gannon will sponsor this bill in the Senate.
	Chairman Sorensen announced that due to time constraints, H711 would be heard at the next State Affairs committee meeting.
ADJOURNMENT	Chairman Sorensen adjourned the meeting at 4:05 PM.

DATE:	March 12, 2004
TIME:	2:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes Stegner, Little, Stennett, Calabretta
MEMBERS EXCUSED:	Senator Davis
MINUTES:	Senator Calabretta made a motion that the minutes for March 10, 2004 be approved as written. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
RS14178	Joint Memorial to U. S. Congress; be it resolved that we endorse the federally proposed Clearwater Basin Project Act and we urge work toward enactment
	Senator Noh has requested that this bill introduced for print.
MOTION	Senator Darrington made a motion that the committee introduce for print RS14178. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
HJM20	To make it known that the Legislature of Idaho is opposed to the rules finalized by the Office of the Comptroller of the Currency that preempt most state consumer protection laws and enforcement
	Representative Black stated that in January of 2004, the Office of the Comptroller of Currency passed legislation that preempts most state consumer protection laws. The effect of that rule is that it has taken from the state of Idaho the ability to address and resolve complaints regarding the banking system. Representative Black gave some statistics of the number of complaints that have been handled in the last three years. He said that now complaints from the people of Idaho will have to be handled by the Office of the Comptroller of the Currency which does not even have an office in Idaho. This will render hopelessness to Idaho citizens who are seeking redress. The Legislature will send this memorial to the Congress with the hopes they will return local control to the states. Senator Darrington said he had received calls and it seemed that State Chartered Banks opposed the change and National Banks were in favor of it. Mary Hughes the Financial Institution Chief from the Department of Finance,stated that the Idaho Community Bankers Association was actually in favor of the change, while she thought the National Banks opposed the change. William VanTagen, Deputy Attorney General, said that they join with the Department of Finance in supporting this Joint Memorial. He said that the Department of Finance does a good job representing the Idaho citizens. He said what will happen is there just will not be any listing in the phone book for the Office of the Comptroller and consumers will therefore have no access. He said the Attorney General’s Office views this as an issue of states’s rights and they believe the state of Idaho should have authority. He said this rule was put in place by the Office of the Comptroller and not by an act of the U.S. Congress or the Idaho Legislature. Mary Hughes from the Idaho department of Finance, stated that as a state agency, they are not interested in pursuing National Banks. However, most of the complaints which they have been handling are against those banks subsidiaries. This disadvantages those that choose to come under Idaho Law.
MOTION	Senator Richardson made a motion that the committee send HJM20 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Little will sponsor this bill in the Senate.
HJM22	To the President and Congress of the United States; To request that Idaho’s Congressional delegation vigorously support and expand the Idaho National Laboratory as it develops a world class multi-program laboratory.
	Senator Richardson stated that this Memorial is a request for the President and the U.S. Congress to direct more research programs to the Idaho National Laboratory.
MOTION	Senator Darrington made a motion that the committee send HJM22 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
HCR54	Commending the Department of Energy’s Idaho National Engineering and Environmental Laboratory for its Fifty Five years of service
	Senator Darrington explained that this bill is a commendation by resolution for the Idaho National Engineering and Environmental Laboratory for 55 years of service. Senator Richardson stated that when INEEL came to Idaho Falls in 1958, most people did not even realize that it would become a National Nuclear Center. He said INEEL is a real asset to the state of Idaho and it deserves to be recognized.
MOTION	Senator Richardson made a motion that the committee send HCR54 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
H770	Relating to the powers and the duties of the State Athletic Commission; repealing and amending Idaho Code
	Senator Bunderson stated that in 2002 there was a death of a man who was participating in a “tough man” competition here in Idaho. It was determined that those type of matches did not have the same regulations as wrestling. During that event the victim had fought in consecutive fights and had been hit in the head which resulted in his death. Since then a Task Force was formed and met several times in order to review this issue and make recommendations. This bill doesn’t prohibit “tough man” events but stipulates that to participate a person must be categorized as an amateur or professional or else they must apply to the Athletic Commission. This bill clarifies authority of the Idaho Athletic Commission which is responsible for the oversight of professional boxing, professional wrestling, and other similar events. It allows these events to occur but they are conducted under an organized structure with an accredited doctor and referee on hand. Senator Calabretta asked if the thrust of this bill is to structure the promotions so they have a bond and she asked if the participants have a contractual responsibility. Senator Bunderson yielded the response to Kit Clark. Kit Clark stated that there is nothing specific in the bill as far as contestants signing off, but usually the promoters do require a sign off. He said this bill does restrict the weight classifications and the level and frequency of fighting which helps to address the safety risks. Senator Calabretta asked if the participant doesn’t have any restrictions, then is the idea to provide a structure around him to keep him safe. Mr. Clark said that is correct. Chairman Sorensen asked about page 13, paragraph 2 , and the reasoning behind not destroying the ticket stubs. Senator Bunderson said that one of the vehicles to financing these events is the percentage of the gate so the tickets track attendance. Senator Richardson asked if this bill will cover Kick Boxing. Senator Bunderson said it covers all such events. Kit Clark referred to page 3 and 4 which gives the definitions of the covered events.
MOTION	Senator Darrington made a motion that the committee send H770 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Bunderson will sponsor this bill in the Senate.
H772	Relating to Administrative Rules; Continuing certain rules in full force and effect until July 1, 2005
	Mike Nugent, from Legislative Services stated that while the Legislature has delegated authority to state agencies to adopt rules consistent with the legislative intent, the Legislature, under Section 67-5292, Idaho Code has provided by statute that all rules shall expire annually on July 1 of each year, unless extended by statute in each succeeding year. This bill would continue agency rules approved by the Legislature until July 1, 2005, unless they expire sooner. Mr. Nugent cited several cases where this statute came into play. He said it protects against a “rogue” agency or director.
MOTION	Senator Darrington made a motion that the committee send H772 to the Consent Calendar in the Senate. Senator Little seconded the motion. The motion carried by a Voice Vote.
H629	Relating to the Idaho Code codifiers corrections, Amending Section 1-1624, Idaho Code, as added by Section 2, Chapter 291, Laws of 2003
	Mike Nugent stated that the purpose of this bill is to make various codifier corrections to the Idaho Code. In the course of a legislative session, multiple amendments to a single code section, chapter or title are frequently passed. Occasionally, these multiple amendments result in conflicting numbering of sections or subsections. Rather than waiting for future amendment to the various affected sections, this bill compiles those code sections affected in the 2003 legislative session that contain conflicting numbering so that the designations may be promptly. corrected.
MOTION	Senator Stegner made a motion that the committee send H629 to the Consent Calendar. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
HJM21	To the U.S. Congress; that we support the concurrent receipt of military retirement pay and disability compensation
	This bill will be held until the next meeting in order for Senator Bailey to be able to appear.
H802	Relating to Salaries of Members of the Public Utilities Commission; the State Tax Commission and the Industrial Commission, Amending Section 61-215
	Representative Bill Deal stated that the Senate acts as a Board of Directors for the State Government Commissions. This legislation will increase by 2% the compensation for each of the Public Utility Commissioners, Industrial Commissioners and the State tax Commissioners. Their last increase was in 2001 and this increase is the same as other state employees are receiving. Senator Geddes said that there was an effort this year to include the commissioners under the Change in Employee Compensation Committee(CEC) which failed and he asked if this was the fallback position. Representative Deal said that was correct.
MOTION	Senator Little made a motion that the committee send H802 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote. Senator Stegner will sponsor this bill in the Senate.
RS14267	Relating to the Public Employee Retirement System; Amending Section 59-1302, to further define “Military Service”
	Alan Winkle, Director of PERSI, stated that this bill makes a minor change to the definition of PERSI Military Service to address inequity in the crediting of military service. This change will ensure that Military Service will be credited for calculation of both regular retirement benefits as well as for survivor benefits.
MOTION	Senator Geddes made a motion that the committee introduce for print RS14267and send it to the Second Reading. Senator Darrington seconded the motion. The motion carried by a Voice Vote. Senator Bailey will sponsor this bill in the Senate.

H711	Relating to the Idaho State Independent Living Council; Amending Title 56, by addition of new Chapter 12, Title 56, to create the Idaho State Independent Living Council. Kelly Buckland, Executive Director of the Idaho Independent Living Association, stated that this legislation creates a single purpose district for the State Independent Living Councils (SILC). He said it is supported by the Governor’s Office and the Commission of the Blind. Senator Geddes asked if this bill changes the function of the Independent Living Council. Mr. Buckland said it does not but rather provides autonomy so they don’t have to go to another agency. Senator Geddes asked if their budget is currently perpetually appropriated. Mr. Buckland said it is not. Senator Geddes asked who decides how much is appropriated. Mr. Buckland stated that every three years they develop a budget plan between the Commission of the Blind and the Vocational Plan. He said as a state entity they cannot solicit donations. Senator Geddes said the Legislature is perpetually appropriated and that periodically they determine the amount that is needed. He asked Mr. Buckland if their funding would be done on a three year basis. Mr. Buckland referred to page 2, line 43 of the bill , which he said indicates that the funding they get will be limited by the Legislature each year. Senator Geddes had a question about federal funding versus perpetually appropriated funding. Senator Calabretta, a member of the Joint Finance and Appropriations Committee (JFAC), explained that as an example, the Commission on the Arts is under the Office of the Governor but is perpetually appropriated. She said all units under the Governor are addressed individually every year. They get federal funding which moves through the State Board via the Governor’s office. She said in order to receive funds they set up a separate trust. Senator Geddes then asked if there would be a line item for the Independent Living Council. Senator Stegner said there would be a line item.
	The statement of Purpose explains that the Rehabilitation Act Amendments of 1992 were signed into law in October of 1992. One of the requirements was the establishment of State Independent Living Councils (SILCs). The Idaho SILC was created by Executive Order 93-01 in 1993. The Federal Rehabilitation Act pertaining to the establishment and the placement of the SILCs requires; “The SILC may not be established as an entity within a state agency, including the designated state agency or Designated State Unit (DSU). The SILC shall be independent of the DSU and all other state agencies. Although funds may flow through the DSU either directly to the SILC or another entity operating under grant or contract supporting the SILC, nothing in the grant or contract can serve to limit the independence of the SILC. By changing the placement of the SILC this legislation will bring the SILC into compliance with federal law and is supported by the Governor’s Office, the Idaho SILC, the Idaho Commission for the Blind and Visually Impaired and the Division of Vocational Rehabilitation. The structure of the SILC, its By-Laws and rules of operation would remain the same and the Governor would continue to make the appointments of all Council members.
MOTION	Senator Calabretta made a motion that the committee send H711 to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Calabretta will sponsor this bill in the Senate.
H508	Relating to the Judges’ Retirement Fund; Amending Section 1-2008, to provide that the Endowment Fund Investment Board as established in code shall select and contract with Investment Managers at the direction of the Supreme Court
	Matthew Haertzen from the Idaho Endowment Fund Investment Board, stated that this legislation makes two main changes to the Judges’ retirement Fund. It removes the restrictive language and allows the Idaho Endowment Fund Investment Board to develop a policy for review by the Judges in order to be more responsive to the market and it lists the type of acceptable investments that can be made. It also removes the restriction that the Custodian be located in the state of Idaho and now just requires that they be licensed or authorized in Idaho.
MOTION	Senator Little made a motion that the committee send H508 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Darrington will sponsor this bill in the Senate.
HJR4	Proposing an Amendment to Section 8, Article IX, of the Constitution of Idaho, relating to location and disposition of public lands, to increase the acreage of state lands that may be sold.
	Jay Biladeau, Assistant Director with the department of Lands, stated that this change to the Idaho Constitution will enable the State Board of Land Commissioners to sell selected parcels of endowment land in parcels of up to six hundred forty acres to individuals, companies, or corporations. He said 640 acres equals one square mile and it is the state’s primary ownership pattern in the southern part of the state. He said they felt this would improve the saleability of some sections of land. Senator Geddes asked why the smaller tract sections are a hindrance. Mr. Biladeau said that currently the state restricts the sales to maximum of 320 acres to any one person and this change would allow larger parcels to be sold. Senator Stennett asked if the intent is to make the sale of land easier. Mr. Biladeau said the intent is to have the option of variable size units for sale. Senator Richardson asked if the state should be selling land. Mr. Biladeau stated that the state has the ability to sell land now but the dollars earned would be used to purchase other lands. So their intent is to sell less valuable land in order to purchase better land. Senator Richardson asked if there was a maximum amount. Mr. Biladeau said they can sell up to 100 sections per year. Senator Richardson asked if they have bought any land. Mr. Biladeau said they haven’t sold land to get the money to buy other land. Senator Stennett asked if the proceeds from sales can also be invested in the market. Mr. Biladeau said that if the money doesn’t go in to the Land Bank , then it goes to the Endowment Fund and is invested. Senator Stennett asked about exchanges and their limits. Mr. Biladeau said there is no acreage limit on exchanges. Senator Calabretta asked what is the percentage of land that is owned by the state. Mr. Biladeau said about 2.5 million acres or about 5% of the land in Idaho is owned by the State. Senator Little said that the language in the Constitution refers to an individual, company or corporation and he asked what prevents them from buying multiple lands via various ownerships. Mr. Biladeau said that could take place if the state was selling land, but they haven’t had any such occasion to investigate. Senator Calabretta asked where in the process of a land purchase, does the public have a chance to challenge the Land Board. Mr. Biladeau said that they go through a specific process which puts out a sales plan that is available to the public, then they advertise the sale and the general public in that specific area is contacted. Senator Calabretta asked if the Legislature had any authority in the process. Mr. Biladeau said they do not. Senator Stennett asked if there was any knowledge of why the founders set the existing limit. Mr. Biladeau said he tried to research that but couldn’t find any answer.
MOTION	Senator Stegner made a motion that HJR4 be sent to the floor with a do pass recommendation. Senator Little seconded the motion. A Roll Call Vote was requested. Senators Sorensen, Darrington, Stegner and Little voted aye. Senators Richardson, Geddes, Stennett and Calabretta voted nay. HJR4 failed due to a tie vote. Senator Davis was absent.
ADJOURNMENT	There being no further business, the committee adjourned at 4:30 PM.

DATE:	March 15, 2004
TIME:	3:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Stegner, Little, Calabretta
MEMBERS EXCUSED:	Senators Davis and Stennett
MINUTES:	Senator Calabretta made a motion that the minutes for March 12, 2004 be approved as written. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
	Vice Chairman Richardson invited General Kane to the podium for a special presentation.
	General Kane stated that the National Guard wished to take this opportunity to recognize all the fine work that Chairman Sorensen has done over the years on behalf of the National Guard. He said she has been a proactive supporter who has never wavered and they have greatly appreciated her assistance. He presented her with a plaque and extended their wish for her continued success.
HJM21	To the U.S. Congress; that we support the concurrent receipt of military retirement pay and disability compensation
	Senator Bailey stated that this Joint Memorial expresses legislature support for concurrent receipt of military retirement pay and disability compensation for Veterans injured in combat. He said that prior to November 2003, current law required military retirement pay to be reduced by the amount of the disability benefit. In 2003 this was changed to provide for both benefits to be received if the disability was 50% or greater. This Memorial stresses that the agreement fell short and asks that the Legislature support the ongoing request for full concurrent military and disability compensation for all veterans receiving disability benefits as a result of injuries sustained in combat. Representative Eskridge stated that there had been considerable negotiation amongst the different veterans organizations but they were able to come to agreement. They are continuing negotiations to continue to lower the disability threshold.
MOTION	Senator Darrington made a motion that the committee send HJM21 to the floor of the Senate with a do pass recommendation. Senator Richardson seconded the motion. The motion carried by a Voice Vote. Senator Bailey will sponsor this bill in the senate.
H778	Relating to real property owned by the University of Idaho; Amending Section 58-335, to provide for a process to be followed in the disposal of real property by the University of Idaho
	Senator Keough stated that this legislation clarifies a new process to be used by the University of Idaho when disposing of properties. She deferred to Representative Eskridge for further explanation. Senator Richardson asked if this bill was specific to University of Idaho only. Senator Keough said that since University of Idaho has a land grant status, the process is different for them .She deferred to Representative Eskridge for further explanation. Representative Eskridge said that last summer a property of University of Idaho, the 35 acre Clarksford Campus, was sold without the proper consideration of the public good and without a public process. The University now agrees that the procedure could have been better and that other state agencies should have been notified. The language in this bill will provide them with a more standardized process for disposal of surplus property that is similar to that of other state bodies, but still retains control by the Board of Regents as required under the land grant provisions pertaining to the University. Senator Darrington asked Representative Eskridge if he was suggesting that the prior sale was contrary to existing law. Representative Eskridge said the sale was not contrary to law. Senator Darrington asked why the property was sold. Representative Eskridge said that they were losing $50,000 a year on the property. Senator Stegner asked to hear from the University of Idaho people that were present. Marty Petersen stated that the University agrees with the procedure in this legislation.
MOTION	Senator Calabretta made a motion that the committee send H778 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion. The motion carried by a Voice Vote. Senator Keough will sponsor this bill in the Senate.
H752	Relating to Driver’s licenses; Amending Section 49-319, to provide for renewal of a driver’s license upon application in person without the requirement to take a knowledge or skills test, if license expired while active in the armed services
	Representative McGeachin said that this is a lengthy bill which makes a slight change to Idaho law. She said the purpose of this legislation is to allow active members of the military to renew their license without a skills test. She stated that page 2 of the amendment provides that if a person on active military duty or their spouse is licensed prior to that duty, their license can be extended for four years or as long as the military member’s active duty continues.
MOTION	Senator Richardson made a motion that the committee send H752A to the floor of the Senate with a do pass recommendation. Senator Geddes seconded the motion. The motion carried by a Voice Vote. Senator Richardson will sponsor this bill in the Senate.
H797	Relating to records exempt from disclosure; Amending Section 9-340D, to provide that certain records shall be exempt
	Dar Olberding, representing the Idaho Grain Producers Association, stated that H797 proposes an exemption to the open records law to protect academic research that is in the development stage. He said this bill keeps the research closed during the investigative process and it keeps the names of the cooperators closed.
	Justin Hayes provided a handout from the Idaho Conservation League. He said that they feel this legislation goes far beyond protecting credible research being conducted at our state’s academic institutions and that it threatens to undermine Idaho’s Public Records Law at its very core. He said H797 is not needed for two important reasons. Those reasons are that existing law already protects credible, ongoing research and that the language in the bill is so wide and sweeping that it creates an opportunity for the State to withhold virtually any and all documents.
	Larry Branen, Associate Vice President at the University of Idaho, spoke in support of H797. He said this is an important step in assuring continued research in public institutions. He said that when the time is right, the information will be made public. He said that projects are approved with the expectation that the results are scientifically proven and then they need to be analyzed and subjected to pier review for sound interpretations. He said they are concerned about three areas which are the release of “green ” data, the loss of research cooperators who they must engage in the development stage and the loss of a competitive position by the University and the state of Idaho. Chairman Sorensen asked about his reference to future research. Dr. Branen said most proposals will remain open with the exception of when disclosure might result in loss of a competitive edge. Senator Calbretta asked for an example of potential “concept” robbery. Dr. Branen said the predominant area where this is a concern is biotechnology. He said an example is bio-sensors where they are trying to create a computer chip that will detect things in the environment. Senator Geddes said that he supports the idea of protecting research. He said that in Southeastern Idaho the phosphate industry has worked to help them with the selenium problem He said in several cases no results were finalized because the graduate students doing the research dropped out. He said it is disappointing when no results is finalized after research has been funded. Dr. Branen said that 60 to 70% of research does get published. Senator Geddes asked who owns the data, the student or the university. Dr. Branen said the University owns the information.
	Doug Gross stated that he and his family operate a diversified farm. They are in support of H797. He said research takes place at several levels and that includes field trials. He has opened his farm for them in the past without any reimbursement. He said the premature release of research data can result in unfair assumptions and erroneous information. He said protection of data is critical for the continuance of field base research, it provides protection to farmers and ranchers and it protects the public.
	Dick Rush, Vice President of the Idaho Association of Commerce and Industry (IACI), said that all of the schools support H797. He said he is a member of the IACI Potato Research Committee and they have elected to hire only private researchers. He said that when universities can protect their research , it helps students and attracts scientists.
	Dennis Tanikuni, with the Idaho Farm Bureau Federation, said that 25 other states have similar legislation to this bill. He said they appreciate this legislation because it protects researchers and facilities. He said threats against them are real and this bill will help to protect them. Senator Calabretta asked about the instance when public research identifies a threat to the public health and if, in that case, the public can get the information earlier. Mr. Tanikuni said that if there is an imminent threat to health, researchers are required to disclose the information.
	Representative Mack Shirley carried H797 in the House of Representatives. He works in the private sector and was surprised to learn that public institutions are not protected. He said Idaho has lost valuable research grants to sources outside of our state. He said some other states, such as Utah, have legislation with even broader range of exemptions. He said that we are entering a future that is research driven and we ought to allow our institutions these exemptions. Senator Richardson said that when he thinks of research, the first thing that comes to his mind is INEEL and he asked if they would be affected by this legislation. Representative Shirley said they definitely would be affected as confidentiality is a critical issue for them. He said they use private research for that reason.
	Roy Eiguren, representing the Idaho Allied Newspapers, said they oppose H797. He said that they feel this legislation is over-broad and that it is a sweeping change in public policy which is coming too late in the session. He said time is needed to work on the bill. He asked the committee to closely review the language and presented a handout with some proposed amendments. The proposed paragraph 18 stated that, “Records, data, information and materials collected, developed, generated, ascertained or discovered during the course of academic research at public institutions of higher education if the disclosure of such reasonably could affect the conduct or outcome of the research or the ability of the public higher education institution to patent or copyright the research.” Paragraph 19 stated that “Records, data, information and materials collected or utilized during the course of academic research at public institutions of higher education provided by any person or entity other than the public institution of higher education.”
	Chairman Sorensen announced that it was necessary to adjourn the State Affairs Committee in order for the Senators to return to the floor of the Senate. Therefore, the remaining testimony on H797 will be heard at the next State Affairs Committee meeting.
ADJOURNMENT	The meeting was adjourned at 4:10PM.

DATE:	March 17, 2004
TIME:	1:00 pm
PLACE:	Room 437
MEMBERS PRESENT:	Chairman Sorensen, Vice Chairman Richardson, Senators Darrington, Geddes, Davis, Stegner, Little, Stennett, Calabretta
MINUTES:	Senator Calabretta made a motion that the committee approve as written the minutes for March 15, 2004. Senator Richardson seconded the motion. The motion carried by a Voice Vote.
H797	Relating to records exempt from disclosure; Amending Section 9-340D, to provide that certain records shall be exempt
	Dar Olberding said this bill was brought by the Idaho Grain Producers. He said it exempts research records while research is being conducted and protects cooperators who assist the research. Kevin Satterlee, an attorney for Boise State University(BSU), stated that during his previous service in the Attorney General’s office he did not find the Public Records Act to be an obstacle. Now, since he is at BSU, the Public Records Act has become a hurdle. He said that with tougher funding for universities, a primary source of funding is research dollars. He said that without this legislation, universities are at a disadvantage and they cannot compete. He said BSU’s research is targeted research that seeks to fuel Idaho’s economy. He gave an example of a financial institution wanting assistance with identifying their market. If the bank seeks confidentiality of their client list, they would choose to go to the private sector or to another state where confidentiality is assured. Mr. Satterlee said BSU wants to get the business, but they are at a competitive disadvantage. Allen Derr representing the Idaho Press Club and the Idaho Newspaper Association stated that they don’t object to the purpose of this legislation but rather they object to the public being locked out from academic research. He said the existing law does cover research and they feel this bill goes too far. They would like H797 to be held in committee until further checks and balances can be included. Brad Hoaglun representing the Idaho Alfalfa and Clover Seed Growers Association, stated that they support H797. Justin Hayes, Program Director for the Idaho Conservation League, said that they oppose H797 because current law already provides exemptions for “trade secrets” and because the new language in this bill is too broad. He said the bill needs to stipulate that the provisions are restricted to Academic Institutions.
	Chairman Sorensen asked Mr. Satterlee why the existing “trade secrets” language that Mr. Derr had referred to was not sufficient. Mr. Satterlee said the existing language is not targeted to the issue of university research. He referred to his example where customer demographics were used and other types of research where data doesn’t have purely economic value. Chairman Sorensen asked what is the urgency in passing this bill. Mr. Satterlee said they are anxious to become competitive. Senator Richardson asked how other state’s bills compare to H797. Mr. Satterlee said they are fairly comparable.
MOTION	Senator Little made a motion that the committee send H797 to the floor of the Senate with a do pass recommendation. Senator Stegner seconded the motion.
	Senator Little stated that this was a matter of competition now and that this bill is a step forward to allow universities to compete. Senator Stegner said he is a board member of the Idaho Research Foundation which seeks to promote commercial use of the intellectual properties of the University of Idaho and he said this legislation could be beneficial to universities. Senator Geddes stated that he thought that the intent of H797 is probably the right approach but he is concerned that this language is too broad and needs further consideration.
MOTION	Senator Geddes made a Substitute motion that H797 be held in committee. Senator Stennett seconded the motion. The Substitute motion carried by a Voice Vote.
SCR134	Concurrent Resolution; providing approval for the Department of Administration and the Eastern Idaho Technical College to enter into agreement with the Idaho State Building Authority to finance a specific facility.
	Senator Davis reminded the committee that they had discussed this bill at a prior meeting. He said that even with this change, the total cost of the project is still $9.8 million. Brian Whitlock from the Governor’s office, said that as they ask for the bonding they will pursue a parallel course with the EDA and try to determine what additional flexibility is available in the grant. Senator Little referred to a trailer bill which indicated there was a limit to accessing the Permanent Building Fund. Senator Stennett stated that he was also concerned that there might not be enough left in the Permanent Building Fund for maintenance. Senator Richardson said that this project has been discussed and anticipated for some time now and its time to move forward with some action.
MOTION	Senator Richardson made a motion that the committee send SCR134 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The motion carried by a Voice Vote. Senator Davis will sponsor this bill in the Senate.
H777	Relating to Political Campaign Finance; Amending Chapter 66, Title 67, addition of Section 66-6610B to provide procedures for political committees to retire unpaid debt and to define the term “unpaid debt”
	Ben Ysursa, the Secretary of State, said that this legislation is an amendment to the Sunshine Laws. He said Section One of the bill clarifies the established procedure that unpaid debt of a political committee organized on behalf of a candidate may be repaid with excess campaign funds and not a new class of funds. He said Section Two removed language in the Idaho Code 67-6610C, which currently allows incumbent officeholders to raise funds outside of the campaign funds subject to the contribution limits set in Idaho Code 67-6610. He said an unintended consequence of the language currently in Idaho Code 67-6610C was to create a new, distinct type of fund, not considered “campaign funds.” He said this bill codifies the definition of “personal use” so that it more closely mimics the federal code. Chairman Sorensen asked about the meaning of an “ordinary and necessary expense.” Mr. Ysursa said it is the same as the IRS code language and it must pertain to the “nexus” of the job. Senator Calabretta asked if a legislators travel in their district during a non-campaign year would be a legitimate expense. Mr. Ysursa said as long as it is related to their official duty it would be covered. Sherm Furey from the Attorney General’s office, stated that the Attorney General supports H777.
MOTION	Senator Davis made a motion that the committee send H777 to the Fourteenth Order. Senator Geddes seconded the motion. Senator Stennett made a Substitute motion that the committee send H777 to the floor of the Senate with a do pass recommendation. Senator Calabretta seconded the motion. The Substitute motion failed by a Voice Vote. The motion to send H777 to the Fourteenth order carried by a Voice Vote.
S1421	Relating to election campaign contributions and expenditures; Amending Section 67-6602, to further define “candidate”
MOTION	Senator Davis made a motion that S1421 be held in committee. Senator Geddes seconded the motion. The motion carried by a Voice Vote.
H811	Relating to disposition of unexpended balances of political treasurers; Amending Section 67-6608, to provide for semiannual reports by candidates for statewide office
	Representative Jacquet stated that the purpose of this legislation is to require the political treasurer of a statewide candidate, if the statewide candidate has an unexpected balance of contributions or an expenditure deficit, to file a semiannual report on January 31 and July 31.
MOTION	Senator Davis made a motion that the committee send H811 to the floor of the Senate with a do pass recommendation. Senator Stennett seconded the motion. The motion carried by a Voice Vote.
	Chairman Sorensen and the committee expressed their appreciation to Jessica Cook who served the Senate State Affairs committee for the second half of this legislative session.
	The committee expressed their great appreciation to Chairman Sheila A. Sorensen for her excellent service as the Chairman of the Senate State Affairs Committee since 1999.
ADJOURNMENT	There being no further business, the committee was adjourned at 1:45 PM.