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House State Affairs Committee

 

2004 Minutes

 

January 14, 2004
January 15, 2004
January 20, 2004
January 21, 2004
January 22, 2004
January 27, 2004
January 28, 2004
January 29, 2004

February 2, 2004
February 3, 2004
February 4, 2004
February 5, 2004
February 6, 2004
February 9, 2004
February 10, 2004
February 11, 2004
February 12, 2004
February 13, 2004
February 16, 2004
February 17, 2004
February 18, 2004
February 19, 2004
February 20, 2004 - Subcommittee
February 23, 2004
February 24, 2004
February 25, 2004
February 26, 2004

March 1, 2004
March 2, 2004
March 3, 2004
March 3, 2004 - Subcommittee
March 4, 2004
March 8, 2004
March 9, 2004
March 10, 2004
March 11, 2004
March 16, 2004
March 19, 2004
Final Report

DATE: January 14, 2004
TIME: 9:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Langhorst
ABSENT/

EXCUSED:

STEVENSON, SMITH (30)

Chairman DEAL called the meeting to order at 9:35 a.m. with a quorum present. He welcomed the Committee to the new legislative year.

Chairman DEAL handed the gavel to Rep. CAMPBELL, who will chair the meeting.

31.01.01 Rules of Procedure - fee rule

Mr. Paul Kjellander, representing the Public Utilities Commission (PUC) spoke to the Committee about this rule change. He said that it consists primarily of housekeeping changes and other changes mandated by previous legislation.

However, there is a fee rule being proposed (Rule 43). This is a fee which will be assessed on out of state attorneys who appear before the Commission and conforms with fees assessed by the Idaho State Bar on out of state attorneys. The fee is $200 and it is the same fee assessed on Idaho attorneys by the State Bar. He noted that there are times when necessary legal expertise cannot be provided by Idaho attorneys and out of state attorneys are used.

MOTION: Rep. JAQUET moved that Docket Number 31.01.01 be approved as written. Motion carried by voice vote.

31.11.01 Safety and Accident Reporting Rules for Utilities Regulated by PUC

Mr. Paul Kjellander, representing the Public Utilities Commission (PUC) spoke to the Committee about this rule. He noted that it adopts international codes which have been already adopted by most cities, and which are universally accepted.

31.21.01 Customer Relations Rules for Gas, Electric and Water Public Utilities Regulated by PUC

Mr. Paul Kjellander, representing the Public Utilities Commission (PUC) spoke to the Committee about this rule. He noted that the change is needed to conform with previous rule changes. He said that it is consumer friendly.

MOTION: Rep. JAQUET moved that Docket Numbers 31.11.01 and 31.21.01 be approved as written. Motion carried by voice vote.

31.71.03 Railroad Safety/Sanitation Rules

Mr. Paul Kjellander, representing the Public Utilities Commission (PUC) spoke to the Committee about this rule. He said that it simply adopts federal standards for railroad safety and sanitation.

MOTION: Rep. ELLSWORTH moved that Docket Number 31.71.03 be approved as written. Motion carried by voice vote.

15.10.01 Rules of the Idaho State Liquor Dispensary

Mr. Dyke Nally, representing the Idaho State Liquor Dispensary, spoke to the Committee about this rule. He said that was written to address the problems of underage people who enter into State Liquor Dispensary stores. Because it is a public building, they cannot be forced to leave the premises. It does not apply to retail stores because they are not public property. The problem has arisen because sometimes legal buyers are accompanied by underage persons for the purpose of buying them alcohol. State Dispensary employees have no way to ask these underage persons to leave. The problem is further compounded by the fact that Liquor Dispensaries also carry a limited amount of non-alcoholic items.

A member of the Committee noted that the language in the rule is rather permissive. Mr. Kent Allison, of the Attorney General's office said that the rule change would allow law enforcement to be called in to remove the person in question. The benefit of the rule is that it would give store employees an avenue to remove a person who is obviously in the store to buy alcohol, but is not of a legal age to do so.

MOTION: Rep. SMYLIE moved that Docket Number 15.10.01 be approved as written. Motion carried by voice vote.

The meeting adjourned at 10:01 a.m.



DATE: January 15, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Miller, Ring, Shirley, Skippen, , Wills, Jaquet, Shepherd, Smith(30)
ABSENT/

EXCUSED:

Edmunson, Snodgrass, Langhorst
GUESTS: See attached sheet

Chairman CAMPBELL called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 1/14/04 were read.

MOTION: Rep. LANGFORD moved that the minutes of the meeting of 1/14/04 be approved as written. Motion carried by voice vote.

11.04.01 Rules Governing Horse Racing

Mr. Jack Baker, representing the Idaho Racing Commission spoke to the Committee about this rule. He explained that this rule was written to so that the correct horse is placed in the right position for qualification for finals. This rule ensures the public that the 10 fastest horses move into the finals race.

11.04.02 Rules Governing Simulcasting

Mr. Jack Baker, representing the Idaho Racing Commission spoke to the Committee about this rule. He said that it addresses advance deposit wagering. He noted that the Commission had adopted the best rules from Oregon and California. The rule will give the parimutuel industry authority over that part of advance deposit wagering involving racing.

A member of the Committee asked how many vendors there are, and what sums have been wagered. Mr. Baker said that there are currently 3 out of state vendors, but no in-state vendors. The Commission reports that there has been approximately $400,000 wagered since July, and $40,00 of that amount was returned to Idaho.

Another Committee member had a question about disqualified horses. The horse is not truly dropped from finals contention. Mr. Baker said that the horse receives a time which is less than the horse it fouled. It is a form of sanction.

Another Committee member asked if a person being investigated by another agency could be subject to an audit from the Commission. Mr. Baker said that an audit by the Commission would be like any other governmental audit into a person's life. He noted that the amounts wagered are audited daily and must tally with amounts which are received weekly. He said that audits of individuals would be performed only when a complaint is lodged.

MOTION: Rep. JAQUET moved that Docket Numbers 11.04.01, and 11.04.02 be approved as written. Motion carried by voice vote.



34.02.02 Rules Governing Complaint Process Under the Help America Vote Act

Mr. Chuck Goodenough, representing the Secretary of State, spoke to the Committee about this rule. He said that it closely follows the complaint process required in federal code.

MOTION: Rep. MILLER moved that Docket Number 34.02.02 be approved as written. Motion carried by voice vote.

44.01.01 Rules of the Administrative Rules Coordinator -

44-0101-0301 - pending rule -

Mr. Dennis Stevenson, representing the Department of Administration, spoke to the Committee about this rule. He said that it was originally proposed to allow the rules to be distributed electronically. This would save money. By not requiring the Department to publish hard copies of the rules, these could be made available through other avenues - compact discs, internet access, etc.

MOTION: Rep. JAQUET moved that Docket Number 44-0101-0301 be approved as written. Motion carried by voice vote.

44-0101-0302 - fee rule

Mr. Dennis Stevenson, representing the Department of Administration, spoke to the Committee about this rule. He said that increases certain fees for subscriptions.

MOTION: Rep. JAQUET moved that Docket Number 44-0101-0302 be approved as written. Motion carried by voice vote.

The meeting adjourned at 9:26 a.m.



DATE: January 20, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Stevenson, Wills, Jaquet
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:00 a.m. with a quorum present.

The minutes of the meeting of 1/15/04 were read.

MOTION: Rep. MILLER moved that the minutes of the meeting of 1/15/04 be approved as written. Motion carried by voice vote.

RS13608C1 Allows phone companies to compete without current regulatory process

Mr. Jim Schmidt, representing Qwest, spoke in support of the RS. He said that current regulatory language was originally written in 1913, and does not reflect the changing environment in the current telecommunications industry. The number of "land lines" in Idaho is decreasing, while the number of cell phone users (which are not regulated) has exploded. This legislation would allow the option of competing against non-regulated companies without the necessity to comply with outdated regulatory procedures. He said that customers who elect to continue with a land line, particularly senior citizens, would not suffer because there are various safety nets in place to help them. In addition, healthy competition would cause land line costs to stay in line with the rest of the telecommunications industry. He noted that if these regulations were not eased, the Public Utilities Commission would be forced to allow phone companies to raise prices in order to cover their costs. This could raise phone rates and hurt vulnerable members of our society.

A member of the Committee suggested that the Statement of Purpose be changed to reflect the fact that the companies would be moving from provisions in Title 61, Idaho Code, to Title 62, Idaho Code. Mr. Schmidt corrected that statement to read that the companies have the "option" to change.

MOTION: Rep. CLARK moved that RS13608C1 be SENT TO PRINT with corrections to the Statement of Purpose noted above. Motion carried by voice vote.

Rep. DEAL vacated the Chairman's position. Rep. CAMPBELL assumed Chairman's duties.

RS13519 Limits liability of those serving on government boards

Rep. DEAL spoke in support of this RS. He said that it had been discovered that persons serving on state boards and commissions were not protected from personal liability while they were serving in this capacity. This legislation would hold them not personally liable while serving on state commissions and boards. It would not apply to foundations.

MOTION: Rep. SMITH moved that RS13519 be SENT TO PRINT. Motion carried by voice vote.

RS13568 Appeal of recount of elections process

Mr. Bill von Tagen, representing the Attorney General's office, spoke in support of this RS. He said that it had arisen because of an unusual occurrence in the recount of an election. There was an appeal and the Attorney General's office realized there needed to be a process in place to handle occasions like this.

MOTION: Rep. ELLSWORTH moved that RS13568 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:22 a.m.



DATE: January 21, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:00 a.m. with a quorum present.

The minutes of the meeting of 1/20/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 1/20/04 be approved as written. Motion carried by voice vote.

RS13480 Enables State Board of Land Commissioners to sell selected parcels

Mr. Winston Wiggins, representing the Department of Lands, spoke in support of this legislation. He said that current Code limits the size of state lands that can be sold to a single person in his/her lifetime to 320 acres. This RS would increase that size to 640 acres, which is a square mile. He said that this is the size most often found among lands that the state has deemed to be eligible for sale. He noted that the lands that the Department has decided to sell most often are those which do not generate the income that their size merits. The 640 acre size was selected because that would make them more attractive to prospective buyers, or because they are of such a large size that splitting them would be uneconomical. He noted that the Board is not compelled to sell lands of this size, but has the option to do so. In answer to a question from the Committee, he said that any land sold in this manner then becomes private property of the buyer and is subject to any city or county requirements or restrictions.

MOTION: Rep. CAMPBELL moved that RS13480 be SENT TO PRINT. Motion carried by voice vote.

RS13485 Authorizes State Board of Land Commissioners to solicit bids and contract for work

Mr. Winston Wiggins, representing the Department of Lands, spoke in support of this legislation. He said that it corrects an oversight in the Code. It would allow the Board to solicit bids and contract for work, for which they did not have the authority before.

MOTION: Rep. CAMPBELL moved that RS13485 be SENT TO PRINT. Motion carried by voice vote.

RS13484 Authorizes State Board of Land Commissioners to extend contracts

Mr. Winston Wiggins, representing the Department of Lands, spoke in support of this legislation. He said that current laws restricts the length of contracts let by the Board. The Legislature can extend the length of contracts on a case-by-case basis. Mr. Wiggins is requesting that the Board be given the discretion to set contracts based on a maximum of 49 years without explicit Legislative oversight. This would allow certain commercial leases which become more economically viable, especially those involving large capital investment. He noted that certain commercial ventures would not qualify, e.g. geothermal leases, windmill farms, cell towers. Members of the Committee noted that windmill farms also demand large capital outlays and should qualify.

The Committee noted that this is a change in Statute because Legislative oversight is being eliminated. The Committee also noted an error in the Statement of Purpose. In the second paragraph, line 7, the word "promote" should be stricken. Mr. Wiggins agreed.

MOTION: Rep. CAMPBELL moved that RS13484 be SENT TO PRINT with a revised Statement of Purpose. Motion carried by voice vote.

RS13481 Mineral rights in sales of state lands


Mr. Winston Wiggins, representing the Department of Lands, spoke in support of this legislation. He said that in the past, the mineral rights to any state lands sold would remain with the state. However, changing land use in the state dictates that this policy be changed. Many more people are electing to build on these lands, and not owning the mineral rights to their land can be problematic. He proposes a change so that mineral rights are still reserved for the state except when the highest and best purposes would be to sell them with the land.

MOTION: Rep. JAQUET moved that RS13481 be SENT TO PRINT. Motion carried by voice vote.
RS13643 Referendum Elections

Mr. Steve Ahrens, President of Idaho Association of Commerce & Industry, spoke in support of this legislation. A copy of his testimony is attached.

The Committee questioned why there was a need for this legislation. Mr. Ahrens said that in other states, the large number of initiatives on the ballot had cost that state a great deal of time and money. The Committee said that even though the language in this legislation refers to legislative districts, most of the administration would pass through County offices. Mr. Ahrens said that valid signatures would be determined by legislative districts, not counties, as had been the case previously. Members of the Committee noted that it appears this legislation makes the initiative process more difficult. Mr. Ahrens said that this RS simply rectifies the unconstitutional nature of previous legislation.

MOTION: Rep. EDMUNSON moved that RS13643 be SENT TO PRINT.

Members of the Committee noted that the new language in this legislation is not gender-neutral and suggested that it be changed. Mr. Ahrens agreed to that point.

SUBSTITUTE MOTION: Rep. SMYLIE moved that RS13643 be SENT TO PRINT, with language changes to reflect gender neutrality. Motion carried by voice vote.

RS13601 Permanent endowment funds/earnings can be combined or pooled

Mr. Matt Heartzen, manager of the Endowment Investment Board, spoke in support of this legislation. He said that it amends Code so that funds may be combined for investment purposes. Accounting will be kept separate. This will save money.



MOTION: Rep. CLARK moved that RS13601 be SENT TO PRINT. Motion carried by voice vote.

RS13600 Revise investment authority relating to judges' retirement fund

Mr. Matt Heartzen, manager of the Endowment Investment Board, spoke in support of this legislation. He noted that investments for the judges' retirement fund have been restricted in the past. This is expensive and inefficient. This change would allow the Board to invest in a variety of vehicles which would maximize diversity and minimize expenses. The second part of this legislation deals with the current requirement to use only Idaho fund custodians. There are many qualified people outside the state, but very few in-state. This would allow the Board to select the most qualified candidate.

Members of the Committee noted that loosening the restrictions could allow high risk investments by the Board. Mr. Heartzen said that a mix of high and low risk investment is actually good management.

The Committee noted a clerical error in the Statement of Purpose.

MOTION: Rep. CAMPBELL moved that RS13600 be SENT TO PRINT with a revised Statement of Purpose. Motion carried by voice vote.

The meeting adjourned at 9:55 a.m.



DATE: January 22, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Langford
GUESTS: See attached list

The Chairman called the meeting to order at 9:02 a.m. with a quorum present.

The minutes of the meeting of 1/21/04 were read.

MOTION: Rep. WILLS moved that the minutes of the meeting of 1/21/04 be approved as written. Motion carried by voice vote.

The Chairman asked the Committee to review the letter from the Lottery Commission. (A copy is attached.) There were questions from the Committee regarding the amount of funds distributed back to the schools.

RS13444 Claims before Industrial Special Indemnity Fund

Ms. Lonna Gray, manager of the Industrial Special Indemnity Fund, spoke in support of this legislation. She said that it extends the term of legislation passed in 1997 until 2008. Extending the provisions of this legislation will result in fewer costs for litigation because the Fund can assess validity of claims without the need for outside counsel and will result in speedier resolution of claims by injured workers.

MOTION: Rep. CLARK moved that RS13444 be SENT TO PRINT. Motion carried by voice vote.

RS13493 Public meetings

Ms. Leslie Goddard, Director of the Human Rights Commission, spoke in support of this legislation. She said that the Open Meetings Law had provided for public attendance at a meeting which was held via telephone. The Commission's policy had been that the public was welcome to attend a teleconference at its Boise office, which was well equipped for that purpose. At least one Commissioner was required to be in physical attendance at these meetings, and this has become somewhat problematic since most of the Commissioners live outside the Boise area. This RS proposes that other officials of the Commission could be in attendance to remedy this problem.

MOTION: Rep. LANGHORST moved that RS13493 be SENT TO PRINT. Motion carried by voice vote.

RS13552C1 Do Not Call List

Mr. Brett DeLange, representing the Attorney General's office, spoke in support of this legislation. He explained that it will bring Idaho into compliance with federal requirements for the national Do Not Call list.

The Committee asked him if there could be some way that "Spam" could be regulated also. Mr. DeLange replied that "Spam" presents another problem because it is extremely difficult to find the addresses of those sending it out. The Attorney General's office is studying the problem, but is not yet able to solve it definitively.

MOTION: Rep. CLARK moved that RS13552C1 be SENT TO PRINT. Motion carried by voice vote.

RS13572C2 Cost of fish/wildlife mitigation to be listed on monthly bill to consumer

Rep. CAMPBELL spoke in support of this legislation. He said that in the years to come, utilities will be seeking to re-license facilities, and will face higher costs. Consumers will find their monthly bills escalating and will seek redress at the Public Utilities Commission. He said that fish and wildlife mitigation can constitute a significant portion of the costs incurred by the utilities. This legislation provides that those mitigation costs be itemized for each consumer, and a yearly accounting of mitigation funds collected and distributed be provided to each consumer. He suggested that the RS be changed by striking "ultimately" on line 25.

In answer to questions from the Committee, he noted that the language included in this RS is permissive, not mandatory.

Members of the Committee commented that there was no fiscal impact noted in the RS, but this might change since there are several city-owned utilities, and there would be some costs involved in producing the data required. Mr. CAMPBELL said he did think that this would be an additional financial burden to these cities. He believes that the data required would not be burdensome to compile and could be produced in the same manner that property tax statements are compiled.

Other members of the Committee noted that, although the idea is a good one, this legislation has no language which would enforce it.

Others noted that if such data is provided to the consumer, then concomitant data should be provided showing the economic benefits provided by fish and wildlife mitigation.

MOTION: Rep. STEVENSON moved that RS13572C2 be SENT TO PRINT with the following changes: "ultimately" should be removed from line 25, and "may" should be deleted and "shall" inserted on line 24.

SUBSTITUTE MOTION: Rep. CLARK moved that RS13572C2 be HELD IN COMMITTEE. The MOTION failed on a roll call vote. Voting AYE were Reps. CLARK, JAQUET, SMITH, and LANGHORST. Voting NAY were Reps. CAMPBELL, STEVENSON, ELLSWORTH, SMYLIE, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, SHEPHERD, and DEAL.

The MOTION (PRINT with changes) passed on a voice vote.

RS13543 Ada/Boise County boundaries

Rep. WILLS spoke in support of this legislation. He said that legal descriptions of county boundaries had become inaccurate. This RS clarifies the boundaries between the counties.

MOTION: Rep. CLARK moved that RS13543 be SENT TO PRINT. Motion carried by voice vote.



The meeting adjourned at 9:40 a.m.



DATE: January 27, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Edmunson

The Chairman called the meeting to order at 9:02 a.m. with a quorum present.

The minutes of the meeting of 1/22/04 were read.

MOTION: Rep. WILLS moved that the minutes of the meeting of 1/22/04 be approved as written. Motion carried by voice vote.

RS13697 Death of a person casting an absentee ballot

Rep. SAYLER spoke in support of this legislation. He said that repeals a section of Code which says that an absentee ballot cast by a person who subsequently died before the election should not be counted. He said that when a person votes by absentee ballot and then dies, it is no different from a situation where a person votes on election day and then dies. He believes there are enough provisions elsewhere in Code to ensure that no fraudulent voting occurs. He assured the Committee that he would be sure to present sufficient research at the bill hearing to allay any fears the Committee might have.

MOTION: Rep. SMITH moved that RS13697 be SENT TO PRINT. Motion carried by voice vote.

RS13589 Voting rights for persons convicted of felony

Mr. Ben Ysursa, Secretary of State, spoke in support of this legislation. He said that it ensures that persons who were convicted of a felony in another state and then discharged, and subsequently moved to Idaho will receive the full rights of citizenship, including the right to vote. They will be bound by the same restrictions that apply to Idaho felons who have fulfilled their sentence requirements, e.g. firearms restrictions.

MOTION: Rep. JAQUET moved that RS13589 be SENT TO PRINT. Motion carried by voice vote.

RS13588 Increases number of election workers

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of this legislation. He said that it provides that 2 persons of at least 17 years of age will be permitted to work at the election polls. He said that it was written to encourage participation by students in the election process.

MOTION: Rep. SMYLIE moved that RS13588 be SENT TO PRINT. Motion carried by

voice vote.

RS13587 Accessibility of polling places to disabled voters

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of this legislation. He said that it addresses requirements of the Help America Vote Act that disabled persons have access to polling places.

MOTION: Rep. MILLER moved that RS13587 be SENT TO PRINT. Motion carried by voice vote.

RS13586 Mail ballot precinct

Mr. Ben Ysursa, Secretary of State, spoke in support of this legislation. He said that it concerns precincts with 250 or fewer voters in the last election. It allows the option to make this an absentee mail ballot precinct. In lieu of a physical polling place, absentee ballots could be cast. This would save considerable expense and could encourage more participation in the election process.

He noted that this process would not affect a write-in candidacy since the requirements for absentee voting would not change. Voter registration would not take place at this location since there would not be a physical polling place. He emphasized that this addresses locations where very few people cast an actual physical vote, and it is optional.

Members of the Committee commended him for this legislation and said that it fulfills a need in certain isolated parts of Idaho.

MOTION: Rep. MILLER moved that RS13586 be SENT TO PRINT. Motion carried by voice vote.

RS13590 Clarifies recall procedures

Mr. Ben Ysursa, Secretary of State, spoke in support of this legislation. There is no change in the substance of the procedures regarding recalls. There is a change in the circulation time period, and there are other minor changes for reasons of clarity.

MOTION: Rep. SMITH moved that RS13590 be SENT TO PRINT. Motion carried by voice vote.

RS13599C1 Organization of political parties/printing of primary election ballot

The Chairman announced that this legislation would not be heard at this time.

RS13593 Personal information withheld from registration data base

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of this legislation. He said that it would protect certain information contained in voter registrations from public review. It was written to protect personal safety and property. In answer to a question from the Committee, he said he hoped that law enforcement would help the county clerk to pinpoint those persons who needed this kind of protection.

The Committee urged that the Secretary of State's office consult with the major political parties on this legislation. Mr. Hurst assured them he would do so.

MOTION: Rep. STEVENSON moved that RS13593 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:40 a.m.



DATE: January 28, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Jaquet
GUESTS: See attached list

Chairman DEAL called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 1/27/04 were read.

MOTION: Rep. BLACK moved that the minutes of the meeting of 1/27/04 be approved as written. Motion carried by voice vote.

Rep. CAMPBELL assumed the duties of Chairman.

HB501 Government boards/no personal liability

Rep. DEAL spoke in support of the bill. He said that it involves the personal liability of those persons appointed by the Governor or other officer who are serving on boards and commissions throughout the state. The number of people affected by this bill is approximately 1700. He noted that there are 3 types of boards: non profit, for profit, and governmental boards. For-profit, and non-profit boards are protected by various means from being sued personally. Governmental boards currently are not. There is a section in Code dealing with the liability of employees of government, but it does not apply to these people since they are paid little or nothing for their service. He noted that many people who are asked to serve on various boards throughout the state are very concerned about their protection for personal assets if they choose to serve.

Mr. Peter Marshall, an attorney representing himself, spoke in support of the bill. He said that he was involved in a previous lawsuit which had also named individual Board members. This lawsuit was filed against a government Board and the individual Board members. The lawsuit against the Board was eventually dismissed on a technicality. However, except for this technical point, the Board members were extremely vulnerable. The rule which was used to dismiss the case is a standard rule for the Court. He noted that the language used in HB501 is the same as the language used in this Court language - rule 3(b). There is no original language in this bill.

He believes that the current situation creates great uncertainty for members of Boards and Commissions throughout the State because no one feels safe from this type of legal action. Members of the Committee questioned why this bill is needed if the previously cited case was dismissed. He replied that it was dismissed only because of a technical error, and the next lawsuit of this type to be filed would not contain the same error.

Another member of the Committee asked if this bill covers all those appointments in the cities and counties. He said that it would apply to all those who would ordinarily be covered by Rule 3(b). He said that it would appear to apply to city and county-wide appointments, in his opinion. In answer to a question about this bill applying to elected officials, he said that the definition used in the bill is deliberately broad. However, there may be other parts of the Code which apply specifically to the liability of elected officials.

He noted that it would not apply to university and other non-profit foundations, since they are by their nature non-profit entities, and they already have protections in place for their board members.

He was questioned about "government corporations". He said that a good example of this is a municipal corporation.

He noted that "good faith" and negligence can exist at the same time. A person may act in good faith, and still allow negligence to occur. The difference is a state of mind. "Bad faith" connotes a deliberate attempt to defraud.

Mike Kane, representing Idaho Counties Risk Management Program, spoke in support of the bill. He said that he had defended several boards from exactly this type of legal action. He said that suits of this type are not an unusual occurrence. He said that those who choose to remedy a situation by suing have two avenues: they can sue the overall entity (i.e. Cemetery District, Mosquito Abatement District, etc), and they can sue individual members of the Board in their official capacity and in their individual capacity, which is where the risk to personal assets is the greatest. He said that any lawsuit involving a governmental board is extremely exhausting and invasive to the persons being sued. In answer to a question from the Committee, he said that provisions of the Tort Claims Act addressed employees, not government board members. A member of the Committee commented that this bill appears to be a blanket coverage which appears to exempt everyone serving anywhere in government or in government appointed positions. He noted that the "bad faith" provision is still very viable, but it is more difficult to prove, and federal liability is still open. He noted that this will not stop frivolous lawsuits.

Mr. David Kerrick, representing Idaho Trial Lawyers Association, spoke in opposition to the bill. He suggested that the bill be amended to say that the Tort Claims provision of 6-903 be changed to include those serving on government boards in addition to employees. He questioned the emergency clause and the reason for it. He also agreed that HB501 appears to be too broad in nature.

Mr. Marshall was queried by a Committee member about Mr. Kerrick's position. He said that he does not believe that the provisions of 6-903 could be applied to protect the personal assets of those serving in government boards.

Ms. Suzanne Schaefer spoke in support of the bill. She said that she had served on a board and had been named in a lawsuit. She noted that this type of exposure has a chilling effect on recruiting new people to serve in government in any volunteer capacity.

Rep. DEAL reiterated that 6-903 does not apply to government boards, and he noted that the emergency clause language is standard.

MOTION: Rep. RING moved to send HB501 to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. CLARK and LANGHORST wished to be recorded as voting NAY.

HB535 Do-not-call list/procedures

Mr. Brett DeLange, representing the Attorney General, spoke in support of the bill. He said that it was written to bring Idaho's Do-not-call list in line with federal guidelines. It includes definitions, technical corrections, and eliminates any fees associated with the list.

The Committee asked him about telemarketing faxes. He said that the Attorney General's office has done its best to prosecute this type of telemarketing. It is sometimes difficult to find the originator of the fax, but when it is possible to do so, they have been prosecuted.

MOTION: Rep. SMYLIE moved that HB535 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote.

Rep. DEAL resumed the duties of Chairman.



RS13757 Ronald Reagan Day

Rep. ELLSWORTH spoke in support of the bill. She said that it is a resolution which would recognize February 6 as Ronald Reagan Day.

MOTION: Rep. SMYLIE moved that RS13757 be SENT TO PRINT, and then direct to the Second Reading Calendar. Motion carried by voice vote. Rep. SMITH and LANGHORST wished to be recorded as voting NAY.

RS13798 911 communications

Rep. CAMPBELL spoke in support of the bill. He said that it was written as a result of the findings of a Task Force which had met during the year. He said that all those participating in the Task Force had agreed to the provisions in the bill. He presented a list of changes he would like incorporated into a bill (attached).

MOTION: Rep. LANGHORST moved that RS13798 be SENT TO PRINT with changes. Motion carried by voice vote.

RS13803 Wine Tasting

Mr. Bob Corbell, representing Idaho Grape Growers and Wine Producers, spoke in support of the bill. He said it was written to address concerns by law enforcement about wine tastings. There is language in the bill clarifying a wine tasting, tasting areas, and amounts to be poured during a tasting. He noted that the wine industry is a thriving one in the state, and wine tastings are an integral part of exposing the public to the products of Idaho wine producers.

MOTION: Rep. ELLSWORTH moved that RS13803 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 10:21 a.m.



DATE: January 29, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 1/28/04 were read.

A member of the Committee noted a change to the minutes. On page 2, paragraph 2, please insert "university or other non-profit foundations".

MOTION: Rep. RING moved that the minutes of the meeting of 1/28/04 be approved with the change noted above. Motion carried by voice vote.

HB533 Industrial Special Indemnity Fund

Mr. Rick Thompson, manager of the Internal Management Division, spoke in support of the bill He said that it extends the provisions of the 60-day rule, which is due to sunset. The 60-day rule allows the Industrial Special Indemnity Fund to resolve claims in-house, resulting in a more expeditious process with fewer legal expenses. It has been a success in the past, and he believes it would be beneficial to renew it. A member of the Committee commented that if the process is that successful it should not have a sunset. Mr. Thompson said that he hoped a long track record would convince the Legislature to finalize this rule when this period is over.

MOTION: Rep. CAMPBELL moved that HB533 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CLARK will sponsor the bill on the floor.

HB534 Meetings, telecommunication devices

Ms. Leslie Goddard, Director of the Human Rights Commission, spoke in support of the bill. She said that it addresses teleconferences and the provisions of the open meeting law. Current requirements are that a member of the governing Board be present for these teleconferences. In the case of the Human Rights Commission, there are 9 Commissioners­7 of whom live outside Boise. The facility in Boise is specially equipped to hold this type of meeting, and it is quite difficult to schedule meetings when there are only 2 Commissioners available. This bill would allow these teleconference meetings to proceed if the director or chief administrative officer of the agency is present. She believes that this provision could apply to any public agency.

MOTION: Rep. LANGHORST moved to send HB534 sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. LANGHORST will sponsor the bill on the floor.
RS13788 Include government deferred compensation plan assets in exemption statute for pension plans

Mr. Ben Ysursa, Secretary of State, spoke in support of this legislation. He said that it will include government deferred compensation plan assets (Section 457plans) in Idaho's exemption statute for pension plans.

MOTION: Rep. EDMUNSON moved that RS13788 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:17 a.m.



DATE: February 2, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Skippen
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:02 a.m. with a quorum present.

The minutes of the meeting of 1/29/04 were read.

MOTION: Rep. MILLER moved that the minutes of the meeting of 1/29/04 be approved as written. Motion carried by voice vote.

RS13816 Refine contracting procedures

Rep. LANGHORST spoke in support of the legislation. He said that it was drafted so that any contracting done for public buildings in Idaho should include a provision to employ a certain percentage of Idaho workers. He said that this is a complicated issue and he suggests a Sub-Committee to study this issue in depth.

A member of the Committee noted that our neighboring states have this type of provision in contracts, and applauded the provisions of this RS.

MOTION: Rep. LANGFORD moved that RS13816 be SENT TO PRINT. Motion carried by voice vote.

RS13755 Compliance with 95% residency requirements in hiring

Mr. LANGHORST spoke in support of this legislation. He said that there is a provision in place which requires that 95% of jobs contracted in the state should go to Idaho workers. However, there are no monitoring or reporting requirements in place to verify that this is being done. This legislation would remedy this situation. He suggested that it also be heard in a Sub-Committee to study it in depth.

There was some discussion among Committee members about the definition of "bona fide" workers. Rep. LANGHORST said that this language was lifted directly from Code, but he said he would attempt to be more specific in defining the term.

MOTION: Rep. CAMPBELL moved that RS13755 be SENT TO PRINT. Motion carried by voice vote.

The Chairman noted that a Sub-Committee would be formed to study RS13816, and RS13755.

RS13445 Recall petitions/school district trustees

Rep. SMITH spoke in support of this legislation. She noted that it is a housekeeping measure which addresses recall petitions for school districts only. She said that it would help eliminate confusion in the recall process, and would allow the person being recalled to know as soon as possible that this action has begun.

MOTION: Rep. CLARK moved that RS13445 be SENT TO PRINT. Motion carried by voice vote.
HCR 36 Ronald Reagan Day

Rep. ELLSWORTH spoke in support of the bill. She said that it is a resolution proposing that February 6 each year will be designated as Ronald Reagan Day in a gesture intended to honor the former President. She noted that it is the result of efforts by the Ronald Reagan Project, a nation wide organization.

Members of the Committee noted that there is already a national holiday set aside for Presidents. Others noted that this legislation would encourage other groups wishing to honor other individual presidents. Rep. ELLSWORTH noted that this Legislature passes resolutions honoring a variety of people and occasions, and this resolution simply wishes to honor the former president.

MOTION: Rep. CAMPBELL moved that HCR36 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. JAQUET and SMITH wished to be recorded as voting NAY. Rep. ELLSWORTH will sponsor the bill on the floor.

SCR118 "Go Red for Women "Day

Rep. HENBEST spoke in support of the bill. She said it was drafted to bring awareness to the women of our country of the dangers posed by cardiovascular disease. She noted that deaths from this disease far surpass those from breast cancer, yet most women are unaware of this fact.

Mary MacConnell, representing the American Heart Association, spoke in support of the bill. She said that only about 10% of the women in this country are aware of the risks posed by this disease.

MOTION: Rep. MILLER moved that SCR118 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. HENBEST will sponsor the resolution on the floor.

HB510 State mineral land, sales, when

Mr. Jay Biladeau, Assistant Director of the Department of Lands, spoke in support of the bill. He said that it gives the state the option to sell parcels of land and include the mineral rights in the sale. In some cases, the highest and best use of the land does not lie with the minerals which lie beneath it. Not including minerals rights in the sale can greatly restrict the value of the land and/or interest in the land. He noted that gravel is a mineral right. A member of the Committee commented that a parcel of land in her area contained a gravel operation which would have hampered efforts to build residential developments on the land.

MOTION: Rep. JAQUET moved that HB510 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. JAQUET will sponsor the bill on the floor.

HJR 4 Public lands, acreage sold limit

Mr. Jay Biladeau, Assistant Director of the Department of Lands, spoke in support of the bill. He said that it would give the Department of Lands the option to sell parcels of land comprised of 640 acres. Previously, a buyer was only able to buy 320 acres in his lifetime. However, the Department realized that many parcels are best used in larger sizes. These parcels are often underperforming, are suited for other uses, or are in other ways unusable in smaller sizes. The State can still sell parcels in smaller units, but this will give them the option to sell units of larger sizes when the occasion warrants.

MOTION: Rep. CLARK moved that HJR04 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CLARK will sponsor the bill on the floor.

HB511 Land Board, solicit bids, contract work

Mr. George Bacon, operations chief of the Department of Lands, spoke in support of the bill. He said that it will give the Land Board the authority to solicit bids and contract for work. He noted that individual Board Commissioners currently have that authority, but the Board does not. This causes inefficiencies and duplications of effort.

MOTION: Rep. EDMUNSON moved that HB511 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. EDMUNSON will sponsor the bill on the floor.

The meeting adjourned at 9:40 a.m.



DATE: February 3, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED

Black
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:04 a.m. with a quorum present.

The minutes of the meeting of 2/02/04 were read.

MOTION: Rep. STEVENSON moved that the minutes of the meeting of 2/02/04 be approved as written. Motion carried by voice vote.

RS13870 Consolidation of Depts. of Commerce and Labor

Mr. David Lehman, representing the Governor's office, spoke in support of this legislation. He said that merging the Departments of Commerce and Labor would reflect the existing synergy between the two. The goal of the merging the two would be to produce a skilled work force in Idaho, which in turn would make our state an attractive place to locate new businesses. High-wage job creation is the ultimate focus for this merger.

The Committee queried him regarding the number and kind of employees which would be created by this merger and the savings which would result from it. He said that if the bill were printed, he would ensure that this information would be provided to the Committee.

MOTION: Rep. CLARK moved that RS13870 be SENT TO PRINT. Motion carried by voice vote.

RS13595 Connecting Snake River to oxbow

Rep. LAKE spoke in support of the this legislation. He gave a short history of the area involved and the configuration of the Snake River resulting from highway construction in the 1960-62 period. An oxbow in the river was created during this period. After subsequent flood events in the region, floodgates were added to the culvert feeding the oxbow. After 1987 fees had been periodically collected on the water contained in the oxbow. Gravel had been mined in the area, which deepened the channel. Substantial development had occurred around the perimeter of the lake. This legislation would emphasize that this is not a water rights issue; it would affirm that the culvert installed in the 1960's and the resultant body of water are a permanent part of the Snake River.

He noted that many parties had been privy to the language in this legislation, and he expected some opposition to it. However, he believes that free and open discussion of this legislation will produce valuable insight and possible solution that would please all concerned. He said that this situation appears to be unique to his area, but he noted that there are many such oxbows in the Snake River and this situation could arise elsewhere.

MOTION: Rep. CAMPBELL moved that RS13595 be SENT TO PRINT. Motion carried by voice vote.

RS13856 Limits dollar value of warrants cashed

Mr. Ron Crane, State Treasurer, spoke in support of this legislation. He said that the Treasurer's office has the ability to cash warrants in small amounts. However, recently a person had cashed warrants in very large amounts at the Treasurer's office instead of another banking institution. This places a serious burden on the Treasurer's office since a sizeable amount of cash must be obtained from an outside banking institution. This RS places a limit of $2000 on the amount of warrants it can cash.

MOTION: Rep. CLARK moved that RS13856 be SENT TO PRINT. Motion carried by voice vote.

HB509 Permanent endowment funds, investment

Mr. Matt Heartzen, Director of the Endowment Fund, spoke in support of the bill. He said that it would allow the Endowment Fund to combine various funds. The accounting would be kept separate. The change would result in a savings because expenses would be shared among the different funds.

MOTION: Rep. ELLSWORTH moved that HB509 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. DEAL will sponsor the bill on the floor.

HB508 Judges' retirement/investment

Mr. Matt Heartzen, Director of the Endowment Fund, spoke in support of the bill. He said that it would allow more flexibility in investment decisions regarding the judges' retirement fund. He noted that there is an amendment to the bill which reflects a language change. (A copy is attached). This bill would allow the Endowment Board to develop an investment policy statement for the judges' retirement fund. It allows for greater flexibility in selecting investments.

A member of the Committee asked why the judges were exempted from PERSI, and Corey Keller (director of Services of the Idaho Supreme Court) said that when it was formed it was felt that older more experienced judges would be desirable. The age of these judges was likely to preclude them from participating in PERSI, so their own investment fund was set up.

MOTION: Rep. LANGHORST moved that HB508 be sent to GENERAL ORDERS with amendments attached. Motion carried by voice vote. Rep. DEAL will sponsor the bill on the floor.

HB539 Electric bill/wildlife mitigation

Rep. CAMPBELL spoke in support of the bill. He said that it is a fairness issue that consumers should know how much of their monthly charges involve funds to mitigate wildlife and fish issues. He said that the utilities already send extraneous information with their monthly bills and this should pose no extra burden. He believes that providing this information is simply a cost of doing business, and is no different from the county assessor sending out property tax notices with various fees itemized.

Mr. Ron Williams, representing Idaho consumer-owned utilities, said that providing this information on a monthly basis could be problematic because his utilities do not purchase their power directly from a single provider. There are several levels between them and the provider who is charged with fish and wildlife mitigation. These costs could vary from month to month.

He does like the fact that the choice to send this information is optional. He did agree that providing an annual accounting of funds distributed for fish and wildlife mitigation could be done via regular mail, e-mail or a posting on the company's web site. In answer to a question from the Committee, he believes that this annual accounting is only a listing of payables, but not amounts.

Mr. Dennis Tanikuni, representing the Farm Bureau, spoke in support of the bill. He also believes that it is a fairness or transparency issue.

He would have no problem with providing a cost/benefit analysis of these programs, but his organization does not wish to amend the bill to accomplish this.

Mr. Neil Colwell, representing Avista, spoke in opposition to the bill. He said it would create extra costs for the utility, which would in turn be passed on to the consumer. The utility is already required to provide funds for mitigation; this bill would then require the utility to provide its consumers with this information, which incurs more expenses. He believes this would be very difficult, since Avista buys power from various sources: hydropower, gas fired, coal fired, and wood fired. Tracing the percentages from each source and then breaking them down for the consumer would not be an easy ask. Would "consumers" include wholesale buyers? A list of recipients of mitigation funds would be confusing to consumers since they could include such things as tires, salaries, etc. He believes this bill is unfocused; it would be expensive for the utilities to produce, and would be frustrating to the consumer. He noted that mitigation funds are a very small part in the overall picture.

He pointed out that this kind of information is available whenever a utility is undergoing the re-licensing procedure, in which the public is invited to participate. He noted that mitigation funding could be posted on the company's website.

MOTION: Rep. RING moved that HB539 be sent to the floor with a DO PASS recommendation.

Members of the Committee commented that this appears to be an anti-business bill. It appears to force utilities to print a political argument. The bill appears to demand the utilities produce information that is confusing at best. There are other ways to provide this information to consumers, e.g. a company website. There appears to be little or no enforcement in the bill since it is optional for the company to provide this information.

These members pointed out that Idaho consumers pay some of the lowest power rates in the nation.

SUBSTITUTE MOTION: Rep.JAQUET moved that HB539 be HELD IN COMMITTEE.

Rep. CAMPBELL said that a member of Idaho's congressional delegation was working on requiring the Bonneville Power Administration to provide accurate figures for fish and wildlife mitigation. He believes that the consumer needs to know how much of his monthly bill is dedicated to fish and wildlife. It is important to have transparency in how power rates are set.

A member of the Committee commented that re-licensing takes place only every 45 years. It is difficult to influence licensing when accurate information is not provided to the consumer on a regular basis.

The SUBSTITUTE MOTION (HOLD) failed on a roll call vote. Voting AYE were Reps. CLARK, JAQUET, SHEPHERD, SMITH (30) and LANGHORST. Voting NAY were Reps. CAMPBELL, STEVENSON, SMYLIE, LANGFORD, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, and DEAL.

The MOTION (DO PASS) carried by voice vote.

The Chairman announced that a Sub-Committee would be formed to study the issues contained in RS13816 and RS13755. Rep. CAMPBELL would chair; Reps. SMYLIE, BLACK, MILLER, SNODGRASS, and LANGHORST would form the rest of the Committee.

The meeting adjourned at 10:21 a.m.



DATE: February 4, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Jorgenson, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:00 a.m. with a quorum present.

The Chairman introduced Mr. Mike Jorgenson, who is substituting for Rep. Clark.

The minutes of the meeting of 2/3/04 were read.

MOTION: Rep. SNODGRASS moved that the minutes of the meeting of 2/3/04 be approved as written. Motion carried by voice vote.

HB500 Election recount results/appeal

Mr. Bill Von Tagen, representing the Attorney General's office, spoke in support of the bill. He said that it concerns the appeals process after an election recount. After a previous appeal, it was realized that the appeal process needed clarification. This bill provides a better process for an appeal than was previously stated. The most glaring omission in previous language was that the successful candidate was not notified of an appeal.

In answer to a question from the Committee, Mr. Von Tagen admitted that part of this new process could involve an attorney, but he noted that there are many legal actions brought by citizens without the aid of an attorney.

MOTION: Rep. CAMPBELL moved that HB500 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. BLACK will sponsor the bill on the floor.

HB564 Felony/voting rights

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He said that Idaho citizens who have been convicted of a felony and who have completed the requirements of their sentence, including parole and probation, are allowed to vote. This bill extends that provision to people convicted of a felony in another state who move to Idaho. All other restrictions that apply to Idaho citizens convicted of a felony apply to these people also.

MOTION: Rep. CAMPBELL moved that HB564 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CAMPBELL will sponsor the bill on the floor.

HB563 Death/absentee voters

Rep. SAYLER spoke in support of the bill. He said that it deletes language in the statute that voids the ballot of a person who voted absentee and subsequently died before the election. He believes that there are safeguards in place to ensure that all voting will be aboveboard and legal. He noted that absentee balloting is becoming more popular now and this occurrence may happen more frequently. He noted specifically those people serving our country overseas. They are serving in harm's way for the right to vote. When they vote via absentee ballot, they expect their votes to be counted.

Mr. Dan English, county clerk for Kootenai County, spoke in support of the bill. He also believes that there are sufficient safeguards in place to ensure the legality of the election. He believes it is important to honor these ballots, and not dishonor them by discarding them. He believes a vote cast should be a vote counted.

MOTION: Rep. BLACK moved that HB563 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SAYLER will sponsor the bill on the floor.

HB562 Election workers/17

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of the bill. He said that it was written to promote voter awareness, particularly among young people. It allows 17-year-olds to serve as poll workers. This provides a greater pool of people to work the polls and will hopefully foster more awareness of the right to vote among young people. He added that these young people will be assigned their duties by the clerk.

MOTION: Rep. EDMUNSON moved that HB562 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. EDMUNSON will sponsor the bill on the floor.

HB561 Disabled/voting places

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of the bill. He said it was written to fulfill requirements of the Help America Vote Act. It will provide notice of availability of disabled-accessible polling places by the disabled and help describe the facilities of that polling place.

MOTION: Rep. SMYLIE moved that HB561 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SMYLIE will sponsor the bill on the floor.

HB560 Mail ballot precinct

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He said that it was written to address precincts with fewer than 250 voters. It allows the option of designating this precinct as a strictly absentee voting precinct. The number of precincts affected in Idaho is quite small. It would save the state money.

Ms. Rose Gehring, county clerk of Idaho County, spoke in support of the bill. She said that it would affect her county. She included information on her county. (A copy is attached).

Ms. Susan Peterson, county clerk for Latah County, spoke in support of the bill. She said that it will definitely help areas of her county. Not only are there precincts with few voters, but it is also very difficult to find suitable public buildings for polling places.

Ms. Cathy Larson, county clerk for Lewis County, spoke in support of the bill. She also feels this bill will help her county.

Mr. Ysursa emphasized that it will be the county commissioners who decide to change a precinct to strictly absentee. He believes that this system could provide a test to see if it works well. He noted that absentee voting is a growing trend, and this might provide a good solution for many parts of rural Idaho.

A Committee member noted that corporations conduct elections by mail frequently. It is not unique nationally. Another member felt uncomfortable with the growing trend of absentee voting. He believes that voting in person at a polling place is a tradition that should not be discarded.

Another Committee member questioned Mr. Ysursa about the ballot itself. Would it be distinctive enough so that when it is received it would not be disregarded? Mr. Ysursa said that it is a distinctive envelope. There was concern that a ballot arbitrarily sent to a voter who did not specifically request it might not be noticed. Mr. Ysursa said that the county commissioners would post notices that such a mailing will be done, and the voter will be advised to look for it.

Members of the Committee commented that this would be an extremely effective way to distribute and receive ballots. County commissioners are sensitive to the concerns of their constituents and would not institute changes that would not please these constituents. Rural areas in Idaho would not be charged with finding suitable buildings which meet requirements. Finding workers would be less stressful.

Mr. Ysursa emphasized that his office prizes accurate voter lists and does everything humanly possible to ensure that they are accurate. He emphasized that this affects a very small number of voters, and it is optional.

MOTION: Rep. MILLER moved that HB560 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. ELLSWORTH and SMYLIE wished to be recorded as voting NAY. Reps. MILLER, SKIPPEN, and STEVENSON will sponsor the bill on the floor.



HB559 Recall procedures

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He said that it spells out the time limit of 75 days to gather signatures for a recall. The intent was to make the language clearer about recall procedures.

A member asked Mr. Ysursa to instruct his clerks to use a standard paper size of 8 ½ x 14 inches. He agreed to do so.

MOTION: Rep. JAQUET moved that HB559 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. JAQUET will sponsor the bill on the floor.

HB558 Personal voter info/data base

Mr. Tim Hurst, Assistant Secretary of State, spoke in support of the bill. He noted that there was a revised Statement of Purpose which more accurately summarized the language in the bill. (A copy is attached). He said that the threat of identify theft is a very real problem. In addition, there are people who could be in personal danger if the personal information contained in voter registration were released to the public. This bill would exempt social security number, drivers license number, date of birth, signature and residence address (upon showing good cause) from public view.

There were questions from the Committee about identifying the age of the person. Mr. Hurst said that the date of birth is protected, but the age of the voter is identified.

A member of the Committee queried Mr. Brian Kane, deputy attorney general, about the possibility of a contested election. If a candidate believes that the election was not run legally, he has the right to challenge it, charging voter fraud. However, it is his responsibility to show good cause. If such is found to be the case, the sensitive information could be disclosed.

MOTION: Rep. SMITH (30) moved that HB558 be sent sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SMITH (30) will sponsor the bill on the floor.

The meeting adjourned at 10:40 a.m.



DATE: February 5, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Jorgenson , Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheets

The Chairman called the meeting to order at 9:00 a.m. with a quorum present.

The minutes of the meeting of 2/04/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 2/04/04 be approved as written. Motion carried by voice vote.

HB502 Telephone corp. services/PUC

Mr. Jim Schmit, Idaho President of Qwest, spoke in support of the bill. He said that the telecommunications industry is changing dramatically. There is no "protected" market in the telecommunications industry any longer. There are multiple providers. He noted that a application to de-regulate was brought before the Public Utilities Commission last year and was denied. This application was quite different from the provisions of this legislation.

He noted 2 separate concerns about de-regulating telephone basic service: pricing and rural impact. Concerning pricing, he noted that remaining under PUC regulation does not guarantee that higher prices will not be requested in the future, although there are no plans to do so at this time. He did offer a "cap" of $24.10 for a period of time if his industry were de-regulated. He believes that this is a fair figure and reflects current pricing in the state.

Regarding rural concerns, he noted that Qwest offers phone rates in Idaho that are statewide. There is no separate pricing structures for urban areas and rural areas. He believes that a competitive marketplace will bring statewide prices to levels which are beneficial to all Idaho citizens. He noted that if the company were not allowed to de-regulate, it will continue to lose business as more and more customers select non-regulated communications. The company then has to recoup that financial loss by charging existing customers more. He noted that current regulatory language asks the consumer to bear all the risks of doing business in Idaho since the company can always seek higher rates from the PUC. HB502 shifts all that risk to the company.

Mr. Bill Roden, representing Qwest. spoke in support of the bill. He explained the history and provisions of the bill to the Committee. He presented information regarding the statute involved (a copy is attached). He noted that there is a 2-year provisionary period, at the end of which a formal report will be issued to the Legislature and the Governor. He noted that even if this bill passes, there will still be some regulation by the PUC, i.e. consumer complaints.

Members of the Committee queried him about the effect of DSL and broadband on Qwest. He replied that Qwest brought broadband into Idaho and it has been successful, but DSL and broadband are not a regulated entity and cannot be used to subsidize land line service (basic local exchange service). He said that even the addition of broadband/DSL lines does not offset the net loss of land line customers.

Another member noted that she lives in a remote, rural part of the state and has no other option for her service than Qwest. She questioned Mr. Roden about the effect competition would have on her area, since there are currently no competitors. He said that this bill will allow for competition; anyone can enter the market with a product.

Another member questioned him about the letter from Mr. Doug Lincoln, Professor of Marketing, (a copy is attached). She pointed out that Prof. Lincoln's research does not demonstrate why people opt to drop their land lines. She noted that solid data is necessary. Mr. Schmit responded to her question by saying that the PUC told him this data was not necessary.

Ms. Jean Boyles, representing herself, spoke to the Committee. She asked them to consider the funds distributed by Qwest to various candidates.

Ms. Cleo Cline, representing AARP, spoke in opposition to the bill. She warned the Committee to be cautious in taking the steps proposed in the bill. She said that de-regulation will allow phone companies to raise prices at will, and she believes that competition will reduce the number of choices a consumer will have.

Mr. Clyde Daily, representing AARP, spoke in opposition to the bill. He said that it is the oldest members of our society that are most affected by de-regulation of land lines because most of them do not use cellular phones or need the internet. Even small incremental increases will add up to a large bill eventually. He noted that there are many assistance programs already available for those in need of financial help; they simply need to be promoted better.

Mr. Dirk Marsden, representing Communication Workers Association, spoke in support of the bill. He said that CWA is not afraid of competition. He noted that CWA members are members of their communities and are pledged to serve their customers well.

Mr. John Gannon, representing himself, said that the system of PUC oversight resulted in a win/win situation for all concerned. It resulted in good service and good salaries. HB502 will result in an unbalanced situation.

Mr. Ron Williams, representing the Idaho Cable Telecommunications Association, noted that cable is currently a broadband provider and does not compete against Qwest. However, there are future technological improvements which could allow customers to use a computer to communicate. He notes that cable providers have to pay franchise fees, whereas telephone providers do not. A member of the Committee noted that telephone providers pay fees in the form of property taxes, etc.

Mr. Lynn Cundick, representing retired Qwest employees, spoke in support of the bill. He said that Qwest retirees depend on the company being successful enough to continue their benefits. He believes that de-regulation will allow healthy competition, which will in turn make the company healthy.

Mr. Stan Hobson, representing himself, spoke in opposition to the bill. He said that he believes rates will go up with de-regulation. He believes the increases allowed under PUC oversight are fair and just.

Mr. Gary Neal, representing himself, spoke in opposition to the bill. He believes that cell phones will never completely replace land lines. He believes that the provisions in HB502 are too early and that technology has not yet reached the place they are viable.

Mr. Dave Whaley, representing the AFL-CIO of Idaho, spoke in support of the bill. He said that his organization includes the CWA and he believes that de-regulation will bring good quality, high-paying jobs to the state.

Mr. Karl Tuller, Deputy Director of the Department of Commerce, spoke in support of the bill. He said that from an economic perspective this bill will bring new jobs to the state and promote technology. He noted that the Rural Task Force studied the issue and recommended de-regulation. In answer to a question from the Committee he said that the Task Force recommended this because it believed that this will bring opportunities to all parts of the state, and help diversify our rural economy.

Mr. Steve Ahrens, representing IACI, spoke in support of the bill. A copy of his testimony is attached.

Mr. Roden completed testimony by saying that 54,000 land lines have been lost to the system to date. He believes that the controversy over pricing is exaggerated. He noted that before de-regulation of the telephone system in the 1980's, long distance rates were quite high. Today they are a fraction of that figure. There were concerns voiced at that time that have proven unfounded; today's dire predictions would result in the same outcome.

He also noted that the assistance programs offered by the phone companies need to be better publicized.

Members of the Committee queried him about the number of lines which would be regulated in a residential address. Mr. Roden said that all lines in a residential address would be regulated; business addresses with 5 or more lines are regulated only on the first 4 lines. A member of the Committee suggested that any lines after the first in a residence be non-regulated. Mr. Roden said that this is not a sensible solution, given the evolution of the market.

Another member noted that his district contains 2 counties­one an urban area, the other rural. He pointed out that competition generally gravitates toward urban areas. If the company has a uniform rate policy, then any competition affecting urban areas will also benefit rural areas. Mr. Roden agreed.

MOTION: Rep. CAMPBELL moved that HB502 be sent to the floor with a DO PASS recommendation.

A member of the Committee commented that this is a public policy issue. It appears that the state is moving in this direction. However, she believes that it is not the obligation of the Legislature to decide this matter. The Public Utilities Commission was created for this purpose and it should be decided there after the concerns of the Legislature are expressed to them. Specific data regarding cell phone use versus land line use would be essential. HB502 is a huge, untested step.

SUBSTITUTE MOTION: Rep. ELLSWORTH moved that a Sub-Committee be formed and charged with the duty to amend Title 62 of the Code; to specify Legislative concerns about criteria used by the Public Utilities Commission; and to include antitrust issues in Title 62 as well as preemption.

Another representative reiterated that in her area, she has no competition. Adjoining areas have another company which invested heavily in customer service, but Qwest did not.

AMENDED SUBSTITUTE MOTION: Rep. LANGFORD moved that HB502 be HELD IN COMMITTEE.

Various members voiced opposition to the AMENDED SUBSTITUTE MOTION (HOLD) , saying that it is time to take a serious look at de-regulation. However, the Legislature is ill-equipped to deal with such complicated issues. It is better to let the PUC handle this issue, after acquiring much more data on the issue. The lessons learned from the ill-fated de-regulation of power generation industry should make us more cautious. At this point it appears there are more questions than answers. HB502 is a sweeping issue which treats all of Idaho the same­rural and urban.

The AMENDED SUBSTITUTE MOTION (HOLD) failed on a roll call vote. Voting AYE was Rep. LANGFORD. Voting NAY were Reps. CAMPBELL, STEVENSON, ELLSWORTH, SMYLIE, BLACK, JORGENSON, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, JAQUET, SHEPHERD, SMITH(30), LANGHORST, and DEAL.

The SUBSTITUTE MOTION failed on a roll call vote. Voting AYE were Reps. STEVENSON, ELLSWORTH, SMYLIE, LANGFORD, EDMUNSON, JAQUET, SHEPHERD, SMITH (30) and LANGHORST. Voting NAY were Reps. CAMPBELL, BLACK, JORGENSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, and DEAL.

Members of the Committee noted that there is a 2-year "safety valve" on this legislation. If de-regulation doesn't prove successful, it would be simple to return to the previous system. They noted that it is the duty of the Legislature to provide guidelines, not the Public Utilities Commission. There is adequate information available to us now. Competition is here and it is time to allow the phone companies to de-regulate.

The MOTION (DO PASS) passed on a roll call vote. Voting AYE were Reps. CAMPBELL, SMYLIE, BLACK, JORGENSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, SHEPHERD, SMITH (30) and DEAL. Voting NAY were Reps. STEVENSON, ELLSWORTH, LANGFORD, EDMUNSON, JAQUET and LANGHORST.

RS13909 Telephone corp./relating to antitrust liability and minimum pricing.

This RS will be heard at the next Committee meeting.

The meeting adjourned at 11:20 a.m.



DATE: February 6, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Jorgenson, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Jaquet

The Chairman called the meeting to order at 8:30 a.m. with a quorum present.

There were no minutes to review.

RS13909 Telephone corporations/relating to antitrust liability and minimum pricing

Mr. Bill Roden, representing Qwest, spoke in support of the bill. He said that was written to be a companion legislation to HB502. He said that there are two provisions. The first is that a telephone company responding to a Public Utilities Commission order is exempt from antitrust liability. The second is that a company pricing their service lower than the average variable cost determined by the PUC will not be allowed to do so. This provision will ensure that a company could not price their service so low that other competitors are driven out of the marketplace. The "average variable rate" is a standard language. Under this provision, any competitor may petition the PUC to investigate the possibility of this type of pricing. A consumer would have recourse through the Court.

MOTION: Rep. CAMPBELL moved that RS13909 be SENT TO PRINT. Motion carried by voice vote.

RS13732 Pulaski Project

Rep. SHEPHERD spoke in support of the bill. She said that the Pulaski Project proposes a National Wildfire Education Center and Museum. She said it will educate the public about wildfires, their destructiveness and the brave people who fight them.

MOTION: Rep. ELLSWORTH moved that RS13732 be SENT TO PRINT. Motion carried by voice vote.

RS13817 Campaign expenditure reporting/citywide measures

Rep. SMITH (30) spoke in support of the bill. She said that it will provide accountability for expenditures for city-wide measures. It will definitively answer any questions citizens might have about possible outside influences in city-wide measures. It is limited to cities of more than 16,000 people.

MOTION: Rep. ELLSWORTH moved that RS13817 be SENT TO PRINT. Motion carried by voice vote.



DATE: February 9, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Ellsworth
GUESTS: See attached sheet.

The Chairman called the meeting to order at 9:05 a.m. with a quorum present.

The minutes of the meeting of 2/05/04 were read.

MOTION: Rep. WILLS moved that the minutes of the meeting of 2/05/04 be approved as written. Motion carried by voice vote.

The minutes of the meeting of 2/06/04 were read.

MOTION: Rep. MILLER moved that the minutes of the meeting of 02/06/04 be approved as written, with the exception of adding the word "it" at the end of the first paragraph under RS13909. Motion carried by voice vote.

HB577 Wine tastings

Mr. Bob Corbell, representing Idaho Grape Growers and Wine Producers Commission, spoke in support of the bill. He said that it clarifies "wine tastings". He noted that current language in the Code presented certain problems for law enforcement. This bill defines the size allowed in a tasting; it defines a required area which can be monitored to prevent minors or other inappropriate persons from entering; it specifies that only persons over 21 may participate.

Mr. Bill Roden, representing Idaho Beer and Wine Distributors, spoke in support of the bill. He said that this language is very similar to that used by Oregon as part of the rules governing this industry. He noted that the language in this bill does not include distributors. After consulting by vote with his members, he said that the majority of them would like to be included in the bill. He asked that language be added to include them.

MOTION: Rep. JAQUET moved that HB577 be HELD FOR A TIME CERTAIN OF 2/16. Motion carried by voice vote. The bill will be heard again on February 16.

HB581 Bankruptcy, deferred comp plans

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He said that it concerns "457" retirement plans. "457" is the part of Internal Revenue Code dealing with this type of pension plan. Current Code does not exempt 457 plans from consideration in the event of a bankruptcy. This bill would exempt them.

MOTION: Rep. CAMPBELL moved that HB581 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CAMPBELL will sponsor the bill on the floor.

Rep. Campbell assumed the duties of the Chairman.

RS13877 Commissioners compensation tied to CEC

Rep. DEAL spoke in support of the bill. He said that it would tie compensation of the Commissioners of the Tax Commission, Public Utilities Commission, and Industrial Commission to the Committee of Employee Compensation decisions. The Legislature still has oversight over any pay increase requests. It would place their compensation decisions with the same body as other state employees.

MOTION: Rep. JAQUET moved that RS13877 be SENT TO PRINT. Motion carried by voice vote.

Rep. DEAL assumed the duties of the Chairman.

RS13712 Codifier legis

Mr. Mike Nugent, representing Legislative Services, spoke in support of the bill. He said that it was drafted to correct inconsistencies and inadvertent errors that occur when legislative changes have been made to the same section of Code.

MOTION: Rep. SMYLIE moved that RS13712 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:32 a.m.



DATE: February 10, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheets

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 02/09/04 were read.

MOTION: Rep. SHIRLEY moved that the minutes of the meeting of 02/09/04 be approved as written. Motion carried by voice vote.

HB607 Commerce & Labor created

Mr. David Lehman, representing the office of the Governor, spoke in support of the bill. He said that the goal of this merger is to link economic development and creation of high paying jobs in the state. He believes that this merger will not limit either Department. He addressed several questions about the bill that were raised in the print hearing. This bill will not create new exempt employee positions. There will be no net loss of exempt employee positions in either Department. He believes that Director Madsen is a talented individual with the background to manage both Departments. There are very talented people in both Departments who will enable this merge to function well. The intent of this legislation is to ensure the success of the new Department. There will be a savings of $100,000 after the merge, resulting from the consolidation of Directors. That savings will hopefully be used to create new jobs in Idaho.

In answer to a question from the Committee, he said that he did not have either an existing organization chart of either Department, nor does he have a proposed organization chart of the new Department. He said that Director Madsen will select a team to advise him on the structure of the new Department. The reasons this new organizational chart has not been drawn is a matter of timing. In answer to another question, he said that the Governor is requesting $100,000 for the Office of Science and Technology in order to keep talented employees who might otherwise be lured away by private business or other state agencies.

Members of the Committee asked him to explain current funding for the Department of Labor employees. He said that many employees in that Department are funded through federal funds and grants. The Committee noted that the cultures of each Department are quite different. The Department of Commerce concerns itself with entrepreneurial interests; the Department of Labor is more employee-oriented. Mr. Lehman responded that the mission of the Director is to use assets from each Department for the benefit of both. In answer to a question regarding the employee in the District of Columbia, he said that this person serves as a conduit for information to and from foreign consulates and embassies to promote business in Idaho. He works closely with Idaho's Congressional Delegation to promote Idaho's interests, and he serves as a liaison to the National Governor's Association. In answer to another question, he said that both Departments have been cut sufficiently enough that there should be no further cuts.

A member of the Committee questioned if this merger would benefit his rural district. Mr. Lehman responded that the 24 job service offices sprinkled throughout the state would become the first contact for possible economic development in their areas.

In response to questions from the Committee, he noted that various councils and teams had spearheaded efforts to help rural areas that had been hard hit when their industries had left. He cited several divisions which had won awards for cross training successes.

Mr. Karl Malott, representing Professional Firefighters of Idaho, and the AFL-CIO spoke in opposition to the bill. He said that merging two departments with such different cultures would be very difficult. He also was concerned what the new Department would look like. He questioned if a single Director could adequately manage this Department. He believes that more work force cuts will be necessary, and he believes the idea was rushed without adequate time to study the issues involved.

Director Madsen spoke in support of the bill. He said that he had spent the last few months touring the state to gather input from those citizens who cared to express their opinions. He will form a transition team which will be bi-partisan in nature to help him accomplish this merger as smoothly as possible. He believes that this new Department will operate very efficiently, without the need for further budget cuts. Members of the Committee queried him about his proposed 2005 budget. He said that the Governor had proposed a budget he deemed reasonable.

Members of the Committee spoke in support of the bill. They said that the efforts by the Director to listen to Idaho citizens and their concerns are worthy of praise. They noted that a merger of this size is not accomplished quickly or without some discomfort. It is hard to project how the final Department will look until the transition has taken place; some adjustments will need to be made. This new Department will further the Governor's vision for Idaho's future economic development. They noted that the job service offices all over the state are well positioned to hear about possible new job creations and this merger will place them in the position to take advantage of their local knowledge. This merger will also boost the importance of the new Office of Science and Technology which will in turn aid in promoting new technology jobs in the state. This merger will produce cost savings in the future.

Others voiced serious concerns about this merger, saying that we already have Task Forces and Councils in place to promote job and business creation. They questioned the statement that the new Department would already be "streamlined", and would need no further cuts in staff or funding.

MOTION: Rep. JAQUET moved that HB607 be sent to the floor with a DO PASS recommendation. The motion passed on a roll call vote. Voting AYE were Reps. CAMPBELL, STEVENSON, ELLSWORTH, SMYLIE, LANGFORD, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, JAQUET, SHEPHERD, SMITH(30) LANGHORST and DEAL. Voting NAY was Rep. CLARK. Reps. DEAL and SKIPPEN will co-sponsor the bill on the floor.

RS13794 Golf courses/split ownership. liquor license

Rep. SHEPHERD spoke in support of this legislation. She said it was written so that golf courses are not penalized when ownership is split.

Mr. Chuck Lempesis, representing himself, spoke in support of the bill. He said that it will not increase the number of liquor licenses in the state.

Members of the Committee asked him to provide information that there would be no additional liquor licenses issued in the bill hearing.

MOTION: Rep. CLARK moved that RS13794 be SENT TO PRINT. Motion carried by voice vote.

RS13858C1 Prescription drugs

Rep. SMITH (30) spoke in support of the bill. She said it is a memorial urging Congress to allow Idaho citizens to purchase prescription drugs from Canada. She quoted figures that the demand for prescription drugs will rise. The State Board of Pharmacy would determine the drugs allowed for purchase in Canada. She noted that people already purchase prescription drugs from Canada, but this would provide a note of encouragement.

MOTION: Rep. LANGHORST moved that RS13858C1 be SENT TO PRINT. Motion carried by voice vote.

RS13938 Adds language to Idaho Health Facilities Authority Act

Mr. Pat Collins, an attorney representing Idaho Health Facilities Authority, spoke in support of the bill. He said that it clarifies that a non-profit hospital operating within a corporate family still qualifies for loans and grants through the Idaho Health Facilities Authority.

MOTION: Rep. CAMPBELL moved that RS13938 be SENT TO PRINT. Motion carried by voice vote.

Rep. CAMPBELL assumed the duties of Chairman.

RS13968 Government Boards/no personal liability

Rep. DEAL spoke in support of the bill. He said that it will replace HB501. It provides that citizens who serve on governmental boards and commissions cannot be held personally liable for actions taking during their tenure. The definitions of these persons has been narrowed somewhat from the prior legislation.

MOTION: Rep. CLARK moved that RS13968 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 10:26 a.m.



DATE: February 11, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, , Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30),
ABSENT/

EXCUSED:

Ellsworth, Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 2/10/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 02/10/04 be approved as written. Motion carried by voice vote.

SB1214 City election, campaign expend rpt

Sen. LITTLE spoke in support of the bill. He said that it affects those city officials who must comply with requirements of the Sunshine Law. Currently those officials elected to cities over 16,000 are bound by restrictions imposed in the Sunshine Law. This legislation would change the size of the city to 5,000 and above. He said that cities under 5,000 population generally do not have full time staff.

Mr. Will Berg, representing city clerks in Idaho, expressed his concerns about the bill, although he said he neither supports nor opposes the bill. He said that it would place further burdens on the chief election officer, who is generally the city clerk.

Members of the Committee spoke in support of the bill, saying that even small cities in Idaho are involved in comparatively large sums of money, and should be subject to Sunshine Law provisions.

MOTION: Rep. CAMPBELL moved that SB1214 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CAMPBELL will sponsor the bill on the floor.

HB608 State Treasurer/warrant cashed/when

Mr. Ron Crane, State Treasurer, spoke in support of the bill. He said that the State Treasurer's office serves as an accounts receivable collection point and cashes small warrants periodically. However, warrants cashed for much larger sums present a major problem. He requests that any warrants cashed at his office be limited to $2000.

MOTION: Rep. MILLER moved that HB608 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. DEAL will sponsor the bill on the floor.

HB624 Telephone corp, antitrust

Mr. Bill Roden, representing Qwest, spoke in support of the bill. He said that it was drafted to accompany HB502. Other companies had expressed some concerns with that bill, and HB624 was written to satisfy those concerns. It has two parts: the first concerns exemption from antitrust provisions if telephone companies choose to deregulate, and the second part deals with predatory pricing. He said that this bill will not affect cell phone service providers.

This legislation clarifies that telephone companies who act under order from the Public Utilities Commission are clearly exempted from antitrust provisions. If they do not act under PUC orders, they are then subject to antitrust laws. The second provision addresses companies who price their services below the cost to produce them for the sole purpose of eliminating competition. This legislation would place the PUC in the position to determine when such a pricing policy is too low and was instituted to eliminate competition. If that is determined to be the case, the PUC would demand that the company change its prices.

Members of the Committee asked if this pricing provision would not be anti-competitive. Mr. Roden replied that the purpose of de-regulating is to encourage healthy competition. This bill ensures that no company will price its service below what it costs to produce it solely for the purpose of driving other competitors away. He noted that allowing certain companies a monopoly over certain services and goods is itself anti-competitive. In return for this privilege, the Public Utilities Commission sets the rates that a company can charge its customers.

Mr. Joe Miller, representing MCI, spoke in support of the bill. He said that his company (among others) had requested these changes. The provision for the "price floor" is standard language and should be applied in this case. He noted that in the early stages of de-regulation of an industry, it might be tempting for the existing company to drive out new competition by pricing their services so low that any other company cannot compete. Later, when a healthy competitive climate has been established, it would not be as easy to engage in this policy. A price floor is important to prohibit predatory pricing. He noted that antitrust action is a backward-looking policy. Price floor policy is a forward-looking policy.

Mr. Ken McClure, representing Idaho Telephone Association, spoke in support of the bill. He said that his companies had also requested these changes. He noted that some of the companies in his association were already in competition with Qwest, and would be unable to compete if Qwest were not restricted to fair pricing and was not bound by antitrust restrictions.

MOTION: Rep. CAMPBELL moved that HB624 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. DEAL will sponsor the bill on the floor.

HB596 School district trustee/recall petition

Rep. SMITH (30) spoke in support of the bill. She said that it was written as a housekeeping measure.

MOTION: Rep. CAMPBELL moved that HB596 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SMITH (30) will sponsor the bill on the floor.

The meeting adjourned at 9:53 a.m.



DATE: February 12, 2004
TIME: After the tour of the Borah Post Office
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst

The Chairman called the meeting to order at 9:58 a.m. with a quorum present.

There were no minutes to be read.

RS14004C1 Resolution to acquire Borah Post Office Building

Ms. Pam Ahrens, Director of the Department of Administration, spoke in support of this legislation. She referred to a handout which outlined the proposal for the state to assume ownership of the Borah Post Office Building. A copy of the handout is attached. She noted that there are several state offices outside the Capitol Mall complex which could be relocated to this location, which would save the state money. If the state does buy this building, it would be managed in the same manner as all the other buildings in the Mall complex. She said that in the event the state chooses not to buy the building, it would be open to public purchase.

The Committee questioned her about the Post Office lease. She replied that appears it will remain in this location for at least another 5 years. Regarding seismic requirements, she noted that most of the other buildings in the Mall complex face the same problems.

Mr. Larry Osgood said that Boise is not located on a particularly active seismic site. He said that the Department of Building Safety would be involved in any work to be done. He said that any remodeling would be done on a piecemeal basis and would be done to satisfy the needs of the tenants. He said that there is asbestos in the buildings and it is being removed as it is encountered in any remodeling. He noted that many buildings in the Mall complex have the same problem with asbestos and this building is no worse than any other. He noted that most systems are in good repair.

Members of the Committee requested that a more comprehensive explanation of expenses be provided during the bill hearing. They also requested that Director Ahrens provide more complete information about any possible new tenants. She agreed to do so if that information was available. She noted that the Department of Administration is required to fill state-owned buildings first.



The Committee questioned Ms. Ahrens about the condition of the roof and the status of parking available to the building. She said that the roof was replaced in 1982 and appears to be in good shape. Parking is a problem, both for tenants and for the public. If the building is purchased by the state, then Capitol Mall parking would be made available to tenants. She noted that the availability of public parking would depend on the uses of the building. If the building were used for services or for post office needs, then in all likelihood there would not be a great need for public parking. However, if the building housed hearing rooms, then the public would be more anxious to visit the building and would need parking.

The Chairman thanked Director Ahrens and her staff for their tour of the building.

The meeting adjourned at 10:20 a.m.



DATE: February 13, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Clark

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 2/11/04 were read.

MOTION: Rep. SHEPHERD moved that the minutes of the meeting of 2/11/04 be approved as written. Motion carried by voice vote.

The minutes of the meeting of 2/12/04 were read.

MOTION: Rep. SKIPPEN moved that the minutes of the meeting of 2/12/04 be approved as written. Motion carried by voice vote.

RS14043 Wine tastings

Mr. Bob Corbell, representing Idaho Grape Growers and Wine Producers Commission, spoke in support of this legislation. He said that will supercede HB577 and will include distributors in its provisions. He noted that tastings are very important to small producers because this is their primary way to market their product. It was written to address concerns expressed by law enforcement and includes specific restrictions and methods allowed in tastings. He said that previous language in Code was not specific and law enforcement and the vintners themselves were unclear how to conduct tastings in a legal manner. He said that there was no opposition to the bill from any group that he had contacted. He noted that retailers are not involved since the definition of a retail operation is continuous service daily at the same location. Tastings are intermittent in nature. He noted that the provisions of the Table Wine Act, giving County Commissioners approval power, were in effect for tastings.

MOTION: Rep. CAMPBELL moved that RS14043 be SENT TO PRINT and go directly to the 2nd Reading Calendar.

Members of the Committee noted that there were several questions about the provisions of the bill, and it should have a full hearing to answer these more fully. Others noted that HB577 had received a full hearing and there was no need to repeat this process.

SUBSTITUTE MOTION: Rep. SMYLIE moved that RS14043 be SENT TO PRINT. The motion failed on a voice vote.

The MOTION (PRINT and send to 2nd Reading) passed on a voice vote. Rep. DEAL will sponsor the bill on the floor.



RS14054 Emergency Communications

Rep. CAMPBELL spoke in support of this legislation. He noted that it will replace HB 580. He said that it includes the same language as HB580, but includes new language suggested by the Governor's office. This new language addresses the concern that federal funds would be captured that should go instead of other agencies, i.e. Bureau of Disaster Services.

Members of the Committee listed a series of concerns expressed by constituents: setting up a new bureaucracy by which the State usurps authority held by the local government, differences between cities and counties, a "cookie cutter" approach, concerns about the 3-member panel, and a possibility that this could take away a revenue stream.

MOTION: Rep. WILLS moved that HB580 be HELD IN COMMITTEE. Motion carried by voice vote.

MOTION: Re. LANGHORST moved that RS14054 be SENT TO PRINT. Motion carried by voice vote.
RS14028 Anatomical gifts

Rep. HENBEST spoke in support of this legislation. She said that it concerned those people who choose to donate their organs or tissue. She noted that Idaho has the most detailed informed consent law concerning anatomical gifts in the nation. This bill would allow these people to choose not to donate their organs or tissue to a for-profit entity. A member of the Committee asked her for a statement noting that the family of the person who is donating their organs/tissues is not responsible for medical expenses necessary to keep that person alive until harvesting the organs/tissues.

MOTION: Rep. LANGFORD moved that RS14028 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:32 a.m.



DATE: February 16, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Ellsworth
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:31 a.m. with a quorum present.

The minutes of the meeting of 2/13/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 2/13/04 be approved as written. Motion carried by voice vote.



HB577 Wine tastings

The Chairman reminded the Committee that they had heard RS14043 (HB691) on February 13, and had sent it to the 2nd Reading Calendar. That legislation will supercede HB577. He suggested that the Committee HOLD HB577 in Committee.

MOTION: Rep. JAQUET moved that HB577 be HELD IN COMMITTEE. Motion carried by voice vote.

RS14094 Peregrine falcon

Rep. SNODGRASS spoke in support of this legislation. He said it was brought by a group of students who proposed that the peregrine falcon be designated the state raptor. He cited statistics that the peregrine falcon had come back from the brink of extinction to become a real success story in Idaho.

MOTION: Rep. LANGFORD moved that RS14094 be SENT TO PRINT. Motion carried by voice vote.

RS13910 State Independent Living Councils

Mr. Kelly Buckland, Director of State Independent Living Councils, spoke in support of this legislation. He said that when the Independent Living Councils were created by the state, federal guidelines prohibited them from becoming a state agency. This bill would create a district which would be statewide to administer the Independent Living Councils. This satisfies the need for involvement by the state while abiding by the provisions of federal requirements.

MOTION: Rep. SMYLIE moved that RS13910 be SENT TO PRINT. Motion carried by voice vote.

HCR39 Pulaski Project

Rep. SHEPHERD spoke in support of the bill. She said that it expressed support for the Pulaski Project, which emphasizes rehabilitation of the Pulaski Trail, the Pulaski Mine and a museum which will feature firefighters and the study of fires. She noted that the supporters expect the project to take some 10 years to complete.

Mr. Ron Roizen, Director of the Pulaski Project, spoke in support of the bill. He gave a short history of the evolution of the project. He noted that the project had already received funds from various local sources, and had the possibility of receiving other funds through the Forest Service. He noted that the museum had the potential of providing fire education. He noted potential links with the University of Idaho, and possibly a commemorative stamp. He said that this museum will provide links to our past and our the future.

Mr. Jay O'Laughlin, Director of the Policy Analysis Group at the University of Idaho, spoke in support of the bill. He noted that our fire policy until very recently was based on the results of the fires which occurred in 1910. He believes that the museum will function as an educational tool to explain the long term results of the fires in 1910, and the implications for the future. He believes that cooperation is needed to change our firefighting policy, and this museum will provide the education needed to build that cooperation.

Mr. Don Pischner displayed a "Pulaski", which is a grubbing, hacking piece of equipment, and is popularly believed to have been invented by Mr. Pulaski.

Members of the Committee commended Mr. Roizen, Mr. O'Laughlin, and Rep. SHEPHERD for providing a much needed amenity for their community.

MOTION: Rep. MILLER moved that HCR39 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SHEPHERD will sponsor the bill on the floor.

The meeting adjourned at 9:02 a.m.



DATE: February 17, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Stevenson, Ellsworth
GUESTS: See attached sheet

The Vice Chairman called the meeting to order at 9:00 a.m. with a quorum present.

The minutes of the meeting of 2/16/04 were read.

MOTION: Rep. SMYLIE moved that the minutes of the meeting of 2/16/04 be approved as written. Motion carried by voice vote.

HB630 PUC/Tax Comm/Ind Comm, salaries

Rep. DEAL spoke in support of the bill. He said that it reflects a change in policy to tie the compensation of the Commissioners of the Tax Commission, Public Utilities Commission, and the Industrial Commission to a benchmark established by the CEC, which determines the compensation of all other state employees. It is a fairness issue.

MOTION: Rep. MILLER moved that HB630 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. DEAL will sponsor the bill on the floor.

RS13988 SIDS

Rep. DOUGLAS spoke in support of this legislation. She said that it would define a Sudden Infant Death as occurring in a child under 1 year of age, where death is sudden and unexplained and which has been confirmed by an autopsy. It does not require an autopsy in all deaths, it simply states that a child's death cannot be determined to be a result of SIDS without an autopsy.

MOTION: Rep. LANGHORST moved that RS13988 be SENT TO PRINT.

Members of the Committee questioned the fiscal impact stating no impact. Rep. DOUGLAS said that there would be no impact since there is no requirement for an autopsy. The Committee disagreed, saying that there appears to be a requirement for this procedure. Rep. DOUGLAS said that she would be agreeable to changing the fiscal impact to more accurately reflect the cost of these autopsies.

SUBSTITUTE MOTION: Rep. SMYLIE moved that RS13988 be SENT TO PRINT, and that the fiscal impact be re-written to more accurately reflect the cost of these autopsies. Motion passed on a roll call vote. Voting AYE were Reps. CAMPBELL, SMYLIE, LANGFORD, BLACK, CLARK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, SNODGRASS, WILLS, JAQUET, SHEPHERD, SMITH (30), and LANGHORST. There were no NAY votes.

RS14111 Rules of OCC/consumer protection/banks

Rep. BLACK spoke in support of the bill. He said that this is a memorial urging our Congressional delegation to support a rules review of the Office of Currency Control. These rules make it virtually impossible for Idaho residents to file a consumer complaint against certain non-qualified lenders, national banks, mortgage banks, etc. It would be in the best interests of the citizens of Idaho to repeal these rules.

MOTION: Rep. CLARK moved that RS14111 be SENT TO PRINT and go directly to the 2nd Reading Calendar. Motion carried by voice vote. Rep. BLACK will sponsor the bill on the floor.

HB532 Counties, Ada/Boise, boundary

Rep. WILLS spoke in support of the bill. He said that it concerns confusion over certain boundaries between Ada and Boise County. He noted that the Commissioners of both counties had reviewed the bill and agreed to its provisions.

Mr. Fred Tilman, Ada County Commissioner, spoke in support of the bill. He said that this bill will clarify a situation in the Code, where there are two different legal descriptions for the same boundary. This will establish a single legal description. Members of the Committee noted that this will prevent huge legal difficulties in the future.

MOTION: Rep. SKIPPEN moved that HB532 be sent SENT TO THE FLOOR WITH A DO PASS RECOMMENDATION. Motion carried by voice vote. Rep. WILLS will sponsor the bill on the floor.

HB629 Codifier corrections

Mr. Mike Nugent, representing Legislative Services, spoke in support of the bill. He said that it will correct any inadvertent mistakes made in previous legislative sessions.

MOTION: Rep. BLACK moved that HB629 be SENT TO THE FLOOR WITH A DO PASS RECOMMENDATION. Motion carried by voice vote. Rep. BLACK will sponsor the bill on the floor.

HB625 Citywide measures, campaign expense

Rep. SMITH (30) spoke in support of the bill. She said that it addresses reporting of campaign expenditures involving citywide measures. It will affect cities of a population of 16,000 or above. It allows the citizens of a city to see who is funding both sides of an issue.

A member of the Committee commented that more exposure of campaign funding is a good thing.

MOTION: Rep. LANGHORST moved that HB625 be sent to the floor with a DO PASS recommendation.

Members of the Committee noted that SB1214 addressed the same section in the Code. Rep. SMITH said that it changed the reporting of mayoral and councilmen races to cities of 5,000 and above. It did not mention citywide measures. The Committee noted that this could be quite confusing.

Mike Nugent, representing Legislative Services, was asked for his opinion of the situation. He said that the final arbiter of this kind of situation is the Idaho Code Commission, but he believes that both changes could be read without conflict in the Code.

Rep. SMITH said that she had no opposition to amending the bill to change the population requirements to 5,000 and above to avoid any confusion.

MOTION: Rep. MILLER moved that HB625 be sent to GENERAL ORDERS with amendments attached. Motion carried by voice vote. Rep. SMITH (30) will sponsor the bill on the floor.

The meeting adjourned at 9:45 a.m.



DATE: February 18, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:05 a.m. with a quorum present.

The minutes of the meeting of 2/17/04 were read.

MOTION: Rep. WILLS moved that the minutes of the meeting of 2/17/04 be approved as written. Motion carried by voice vote.

RS14095C1 Beneficiary of PERSI retiree

Rep. HARWOOD spoke in support of the bill. He explained this it addresses a problem in the law concerning the beneficiaries of PERSI retirees. Currently, once a beneficiary of the retiree has been named, it cannot be changed.

Mr. Allen Winkle said that since divorces are a prevalent occurrence, this presents a problem perhaps once a month.

The Committee asked why there was no emergency clause included in the bill. Rep. HARWOOD said that he had not thought to include one, but it would be a good idea.

MOTION: Rep. CLARK moved that RS14095C1 be SENT TO PRINT. Motion carried by voice vote.

RS14018 Self funded medical insurance

Rep. GAGNER spoke in support of this legislation. He said that would allow cities, highway districts, hospital districts, and school districts in the state to join into a self funded medical insurance plan. He believes it will result in lower administration costs. It will allow these entities to make their own decisions regarding medical insurance. He believes that the most important thing that these entities should do to ensure solvency is to choose a highly respected company.

MOTION: Rep. SHIRLEY moved that RS14018 be SENT TO PRINT. Motion carried by voice vote.

HB693 Anatomical gifts

Rep. HENBEST spoke in support of the bill. She said that it is a follow up to legislation passed in previous years, which provided for informed consent for the donation of organs and tissues. Subsequently, Idaho had developed consent forms which have been judged to be one of the most thorough in the country. However, in the current forms, there is no place for the donor to indicate that they do or do not wish their organs or tissue to be donated to a for-profit agency. This bill remedies that oversight.

Speaker NEWCOMB also spoke in support of the bill. He said that he had been actively involved in the original legislation to improve informed consent, and he believes it is vitally important that the donor and his/her family be fully informed about the disposition of his organs or tissues.

MOTION: Rep. RING moved that HB693 be SENT TO PRINT. Motion carried by voice vote. Rep. HENBEST will sponsor the bill on the floor.

SB1253 Limitations on contributions to candidates

Sen. McKenzie spoke in support of the bill. He said that it would raise the contribution limits for county central Committees up to $2000. He noted that will allow members of either party to focus on a race.

Members of the Committee noted that previous legislation had been passed with the goal in mind to restrict the cost of campaigns. This new limit will negate that goal. This will drive up the cost of campaigns and is bad public policy.

Others noted that prices of all campaign materials have increased dramatically since the original legislation was passed. There are always those who will circumvent the process. This bill at least allows some "sunshine" into the process and allows most people to be open and honest about their campaign contributions.

Others said that campaigns always present the possibility of deceit. All this bill does is raise the limits. Campaign expenses will mandate that the candidates spend more time raising money, and less time discussing the issues.

MOTION: Rep. RING moved that SB1253 be sent to the floor with a DO PASS recommendation.

SUBSTITUTE MOTION: Rep. JAQUET moved that SB1253 be HELD IN COMMITTEE.

The SUBSTITUTE MOTION (HOLD IN COMMITTEE) failed on a voice vote. Voting AYE were Reps. JAQUET, SHEPHERD, SMITH (30), and LANGHORST. Voting NAY were Reps. CAMPBELL, STEVENSON, SMYLIE, LANGFORD, BLACK, CLARK, MILLER, RING, SHIRLEY, SKIPPEN, WILLS, and DEAL.

The MOTION (DO PASS) passed on a voice vote. Reps. JAQUET, SMITH(30), SHEPHERD, and LANGHORST wished to be recorded as voting NAY.

HB692 Emergency Communications

Rep. CAMPBELL spoke in support of the bill. He said that it is the result of discussions during the year by all the parties involved in emergency communications and a Legislative Task Force. It creates a Commission which is authorized to receive and distribute any federal or other funds coming into the state. It also will serve as a mediating body in any disputes that arise. Rep. CAMPBELL said that he had served on the Committee resolving finance issues. The Commission will receive 1% of the funds received by the counties, but not any federal funds. He noted that a statewide needs assessment is imperative.

Rep. WILLS spoke in support of the bill. He had served on the Committee charged with governance issues. The goal of the Task Force was to involve all entities involved in enhanced 911 issues. He noted that the Commission will be comprised of representatives from all those involved in enhanced 911 issues and this includes a representative of the public, who will be appointed by the governor. He said that conflict resolution is of paramount concern and he believes that the Commission will provide a location for this mediation to take place. In answer to a question from the Committee, he said that members did not have any mediation training at this point. He noted that the Commission itself would be under the Department of Administration and would be covered by their budget.

Mr. Mike Kane, representing the Idaho Sheriff's Association, spoke in support of the bill. He said that mediation training for the Commission had not been discussed, although this could be arranged. He noted that mediation could resolve many issues through friendly discussion, versus arbitration, which was much more formal. He noted that any rules governing procedure etc. would be decided upon by the Commission. He reiterated that the Commission would serve as a clearinghouse of information; it would provide a conduit for federal funds; it would provide mediation, and would gather sufficient information to recommend improvements.

Rep. LANGHORST spoke in support of the bill. He said that this is a consensus bill; there is a definite need for this Commission. He noted several technological problems: ensuring that all of the state is covered equally, ensuring that all systems can communicate with each other, and finding federal funding to pay for the improvements needed. He reminded the Committee that federal funding for these improvements is due to be distributed very soon, and a receiving body for these funds is mandated by federal guidelines. This Commission must be in place in order to receive considerable federal dollars.

Mr. Bob Wells, representing Idaho Sheriff's Association, spoke in support of the bill. He also noted the hard work by the Task Force and emphasized the desperate need in Idaho for a statewide enhanced 911 system.

Members of the Committee commented on conflicting feelings about this bill. It provides a necessary tool for our state, but it sets in place another bureaucracy. The 1% taken from county funds could be very broad. However, the governance and oversight provisions are good. Rep. LANGHORST pledged to monitor these county funds. He believes that the counties will save much more money since they will then have access to federal funds which are currently out of reach. He believes that other forms of communication, i.e. internet communication, could cause a greater worry. He believes that the Commission will anticipate this threat and will find a resolution.

Other Committee members said that this is an improvement that is desperately needed by our rural areas. They recommended that language be drafted to encourage the governor to appoint the Commission as quickly as possible, assuming that this bill is signed into law.

MOTION: Rep. SKIPPEN moved that HB692 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. CAMPBELL, WILLS, and LANGHORST will sponsor the bill on the floor.

The Chairman announced that the Sub-Committee will meet on Friday, February 20 to discuss HB 597 and HB 598. Members of that Sub-Committee are Reps. CAMPBELL (who will Chair), BLACK, SMYLIE, MILLER, SNODGRASS and LANGHORST.

The meeting adjourned at 10:35 a.m.



DATE: February 19, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Wills, Jaquet, Shepherd, Smith(30)
ABSENT/

EXCUSED:

Snodgrass, Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:04 a.m. with a quorum present.

The minutes of the meeting of 2/18/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 2/18/04 be approved as written. Motion carried by voice vote.

RS14130 Access to county public hearing about CAFO's

Rep. JAQUET spoke in support of this legislation. She said that it allows broader public participation in decisions involving the siting of confined animal feeding operations (CAFO). Current language in the Code restricts participation to those living within a mile of the proposed operation. If the Committee chooses to print it, she requested that it be sent to the Agriculture Committee.

MOTION: Rep. CAMPBELL moved that RS14130 be SENT TO PRINT and be sent to the House Agriculture Committee. Motion carried by voice vote. Rep. SKIPPEN wished to be recorded as voting NAY.

RS13864C1 Access to EMS funding for rural/urban EMS providers

Rep. NACCARATO spoke in support of the bill. He said that it will allow equal access to funding by rural and urban emergency medical service entities. If the Committee chooses to print it, he requested that it be sent to the House Health and Welfare Committee.

MOTION: Rep. ELLSWORTH moved that RS13864C1 be SENT TO PRINT and be sent to the House Health and Welfare Committee. Motion carried by voice vote.

SB1238 Capitol Endowment Funds

Mr. Carl Bianchi, representing the Capitol Commission, spoke in support of the bill. He said that it will change the distribution of funds from timber sales receipts. Currently these funds are deposited into the Capitol Endowment Income Fund. This bill would deposit them into the Capitol Endowment Permanent Fund. He noted that the Capitol Commission is charged with two duties: the restoration of the Capitol building, and ongoing maintenance and repair of the Capitol. This change will not impact the first duty, but will possibly provide more funds for the latter. He presented a handout (a copy is attached), and explained it to the Committee. The projected result of this change is a much higher value in the Permanent Fund and more funds available for maintenance and repair of the building. He noted that the sooner this change is implemented, the sooner the State will see higher returns for use in the Capitol.

MOTION: Rep. CLARK moved that SB1238 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. CLARK will sponsor the bill on the floor.

HB645 Liquor license/split ownership/golf

Rep. SHEPHERD spoke in support of the bill. She said that it will apply the language concerning split ownership and liquor licenses in a ski resort to golf courses. The Legislature had passed legislation in the past which allowed the issue of a non-transferrable liquor license to a facility formerly under ownership and/or part of a ski resort. This bill would extend that provision to golf courses. This gives greater freedom in the disposition of the property. There are no new liquor licenses issued and they are not transferrable.

Mr. Chuck Lempesis, representing a restaurant/lounge involved in this type of controversy, spoke in support of the bill. He said that the original language was written because the premises remained in the same place, the services were the same, and to a large extent the customers were the same. He also emphasized that this would not add any more liquor licenses.

MOTION: Rep. WILLS moved that HB645 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. STEVENSON and SHIRLEY wished to be recorded as voting NAY.

HCR44 Resolution to acquire Borah Post Office

Ms. Pam Ahrens, Director of Department of Administration, spoke in support of the bill. She said that the building presents an ideal location for state and other governmental agencies offices. The proximity to other state buildings makes it a very attractive and convenient building for agencies wishing to locate closer to them. She presented a handout answering several questions raised at the print hearing (a copy is attached). She reminded the Committee that most of the maintenance and repair funds would be generated by lease payments.

A member of the Committee noted that other state agencies are committed to paying much higher rents for their office space in Boise. She noted that those lease payments include financing costs. Since the building is already paid for, those costs are not included in lease payments.

Other members of the Committee questioned her about which state agencies would relocate to this building. She replied that relocation is an individual choice by each agency, but she believes that there will be considerable demand to locate closer to the Capitol Mall.

Members of the Committee noted that the building had been offered to the state before and the state had not accepted it. Why was this proposal different? She said that in previous years, rent figures presented to her Department had been considerably higher, which would make it more difficult to cash flow. In answer to a question from the Committee about the term of leases being signed for office space in the building, Ms. Linda Miller said that a master lease agreement had been signed for 5 years, with the option of revisiting space requirements after 2 years. This is fairly standard language for leases. Director Ahrens confirmed that her Department cannot sell or lease this property to a non-governmental entity.

In answer to a question from the Committee, Director Ahrens said that requirements for historical buildings, as they apply to the Borah Post Office building, are federal guidelines. These guidelines can be quite different from state guidelines. She cited the example of the Ada County Courthouse requirements, which are state guidelines. She said that any specific improvements needed by tenants would be negotiated when the lease is decided.

Members of the Committee commented that the Borah building is in very good shape, given its age. It is quite obvious that it has been well maintained and will be a real asset to the state. This is a rare opportunity to acquire desirable property within the Mall complex.

MOTION: Rep. WILLS moved that HCR44 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. WILLS and MILLER will sponsor the bill on the floor.

The meeting adjourned at 10:15 a.m.



DATE: February 20, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Campbell, Representatives, Smylie, Black, Miller, Snodgrass, Smith(30), Langhorst
GUESTS: See attached sheet

Chairman CAMPBELL called the meeting to order at 9:06 a.m. with a quorum present.

There were no minutes to approve.

HB597 Best value in contracting Act

HB598 Contractors/Idaho employees/report

Rep. LANGHORST spoke in support of these bills. He addressed HB598 first. He said that this bill would require a report that states how many jobs are held by Idaho citizens by a contractor who is involved in a public works project in Idaho. He said that this report would provide the information necessary to determine how much of the payrolls of Idaho companies are composed of salaries paid to Idaho citizens. He noted that salaries paid to Idaho citizens result in tax revenue to the state. In addition, these employees spend these monies in their communities. There is a considerable multiplier effect. This bill would create an incentive for companies to create more jobs in Idaho and employ Idaho citizens to fill them. It would provide a clearer picture of where the employees on these public works projects come from. It would reflect the true costs of a project. In answer to a question from the Committee, he said that there is a requirement already in Code that any public works projects in the state employ at least 95% Idaho workers, but to date there was no enforcement of this requirement. He noted that there is a general belief that this requirement is largely ignored, even though there have been few complaints about companies that do not comply.

A member of the Committee questioned certain provisions of HB597. It appears that the contractor would itemize all his expenses, which would in turn become public knowledge. This could very easily undermine his ability to compete effectively in the bidding process. Sen. Burkett noted that this information is reported to the Tax Commission, but it is determined to be confidential and is not public knowledge.

Sen. BURKETT addressed HB597. He said that it would ensure compliance with the 95% rule since the contractor would have the means to certify that he has complied with the requirement. He noted that service contracts, handled through the Purchasing Department, are not currently under the 95% rule and he believes that HB597 would place them under that requirement. He admitted that there is always the concern that neighboring states will retaliate in kind if this legislation passes, but he said that the bill recognizes that revenues paid to Idaho citizens flow back to the state in the form of income taxes, etc.

Mr. Dave Whaley, representing Idaho State AFL-CIO, spoke in support of these bills. He said that it does not appear to discourage out of state contractors from bidding on public works jobs in the state, but it simply encourages them to hire Idaho workers to fill those jobs. He does not believe that there is any intent to expose sensitive information to the public.

Mr. Scott Jones, Idaho State AFL-CIO, spoke in support of these bills. He said that the intent of the bill is two fold: to put Idaho citizens to work, and to keep tax dollars in the state. He believes it is crucial to protect Idaho's workforce.

Mr. Michael Gifford, representing Associated General Contractors of Idaho, spoke in opposition to both bills. He said that the language in HB597 is vague. He noted that the contractor would base his calculations on future payroll figures and the figures to be used are approximate. In addition, there are severe penalties imposed if the contractor is judged to have reported these figures incorrectly. He believes that this will be viewed as a preference law and there will be retaliation from surrounding states. He believes that improvements in the public licensing framework are necessary and he is working toward that goal. He noted that the record keeping involved in these requirements will involve hiring people whose sole job is to track all the employees on a daily basis, and this will affect his ability to secure jobs. A member of the Committee commented that it appears that local contractors would not want to employ local people. Mr. Gifford replied that the contracting business had changed considerably. Many contractors are involved in projects all over the west, not just Idaho. He prefers to grow Idaho's economy by creating new jobs rather than instituting a preference law. He noted that general contractors generally range over a wide geographical area. They are smaller in number as a group, which allows them the flexibility and nimbleness they need to compete in a very competitive industry. The specialty contractors, generally representing the trades, usually are local and are specialized for their locale. The general contractor usually hires these specialty contractors locally.

Regarding HB598, he believes the provisions included are not as onerous. He pointed out that the provisions apply to all federal, state, county, city and local entities. These smaller entities do not have the skilled staff nor the knowledge they will need to fulfill these requirements. As an example, he asked how the contractor would determine residency? Mr. Gifford believes that there is a good likelihood of lawsuits if these bills become law. He also cited additional problems in the border areas of the state. Many contractors operating out of these areas service the adjoining states as well as Idaho. Their sub-contractors come from both sides of the border, and these requirements would make it difficult to keep long term employees who live just across the border. A member of the Committee commented that employees often receive a per diem salary to cover food and housing, which will be spent on the local economy. Mr. Gifford said that most trade contractors are already hired locally and do not receive a per diem. Highway construction is an exception to this. These workforces are very mobile and will often live on site. He also noted that a contractor who figures his future payroll conservatively can be penalized in the bidding process because he can be underbid.

Larry Osgood, Division of Public Works, said that it appeared HB598 would cause less additional paperwork than would HB597. He also said that he thought these problems occur more near Idaho's borders. He noted that his office had received very few complaints in the past. He admitted that the 95% requirement is in the Code, but it currently had no enforcement in place. He also noted that daily changes in payroll would make it much more difficult for a contractor to compile statistics on his employees.



Sen. BURKETT reminded the Committee that prospective income taxes are the only figure used in calculating this factor; sales taxes, property taxes, etc., are not. Members of the Committee reminded him that out of state workers who work in Idaho pay income tax on their salary and it is deducted from their paychecks. He said that it is difficult to enforce the law that these out of state workers must pay income tax on wages earned in Idaho. He does not believe that all employers comply.

Mr. Steve West, representing Old Castle Materials, spoke in opposition to both bills. He said that his company has projects all over the west coast. He also believes the provisions in HB597 are onerous and constitute an unfunded mandate. He believes the net effect of these bills will be border wars and he pointed out that Idaho companies operating in other states will be penalized. He questioned if the 95% rule has outlived its usefulness and should be replaced. His company prides itself on complying with all state laws.

Mr. Jason Crawforth, representing Tree Top Technology, spoke in support of the bill. His company sells software, and recently lost a bid for a state contract. His company placed third; first place went to a company from Texas (which requires no state tax); second place went to India. He finds it very hard to believe that an Idaho company, employing Idaho citizens would select a company from an entirely different state, much less a company outside the United States. He pointed out that his industry is radically different from the construction industry because employees do not have to be physically in the state to fulfill the obligations of the contract. Telecommuting is common, so the argument that out of state employees pay Idaho income tax on wages earned in Idaho is not valid. He believes that calculating a future payroll when bidding on a contract does not have to involve sensitive information. He can figure a total figure for the service, and then calculate an average figure based on the number of employees needed for the job.

Mr. Jerry Peterson, representing Idaho Building Trades, spoke in support of the bill. He urged that the bidding process be revisited to make it fairer for Idaho companies. He believes that passage of both of these bills will begin that process. He pointed out that per diem paid to employees is not subject to state income taxes, and is not always spent in the local economy. He pointed out that the current 95% rule must be pursued by the county prosecuting attorney, and the only penalty is a $10 fine. He does not believe that compiling the report required in HB598 will be burdensome; he knows all his employees and can do this without too much effort. He believes that both of these bills present a good start at changing the bid process.

Chairman CAMPBELL said that the Committee would not take any action at this time, but would plan to meet in the coming week to further discuss these bills.

The meeting adjourned at 10:44 a.m.



DATE: February 23, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Ellsworth
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:04 a.m. with a quorum present.

The minutes of the meeting of 2/19/04 were read.

Rep. WILLS noted that regarding RS14130, Rep. SKIPPEN wished to be recorded as voting NAY to the Motion to Print.

MOTION: Rep. WILLS moved that the minutes of the meeting of 2/19/04 be accepted with the change noted above. Motion carried by voice vote.

RS14137C1 Keeps International Codes as family of Codes
RS14144 Disclosure to patient if doctor or hospital has contract with insurer

The Chairman announced that the sponsor of these bills requested that they be postponed until tomorrow (2/24/04).

RS13785C1 Persons over 18 who provide alcohol to minors

Rep. JAQUET spoke in support of this legislation. She said that it had been suggested by a constituent. It will enhance the penalties for an adult who provides an alcoholic beverage to minors. She requested that it be sent to the House Judiciary and Rules Committee if it is printed.

MOTION: Rep. SMYLIE moved that RS13785C1 be SENT TO PRINT and be referred to House Judiciary and Rules Committee. Motion carried by voice vote.

HB712 Peregrine falcon

Rep. SNODGRASS spoke in support of the bill. He said that it was brought to him by students of two elementary schools in his district. These students had studied the history of the bird and wished to recognize the success story that it represented in bringing back endangered species.

Mr. Tom Cade, representing the Peregrine Fund, spoke in support of the bill. He noted that there is no other state which designated the peregrine as the state bird or the state raptor. He believes that the peregrine falcon is of historical and cultural significance. The bird is esteemed and admired worldwide. He noted that the bird has been used for 3000 years in the sport of falconry. It inhabits some of the wildest and most remote places on the earth, as well as man made structures like bridges, buildings, etc. Whole nations mobilized to save the bird from extinction and were successful enough that the bird was de-listed from the endangered species list in the U.S. in 1999. He pointed to 3 sites in the Treasure Valley which had been influential in rescuing the bird, and he acknowledged the efforts of Mr. Morley Nelson, who is present in the meeting today.

The Chairman also acknowledged Mr. Nelson and applauded his efforts in behalf of endangered birds in Idaho.

Mr. Jack Cilek, a student at St. Joseph's school, spoke in support of the bill. He said that his class had sent a letter to the Governor, requesting that the bird be designated as the state raptor, and he urged other states to recognize the bird.

Ms. Megan Rebholtz, a student at St. Joseph's school, spoke in support of the bill. She gave a short history of the Peregrine Fund.

Mr. Michael Bokan, a student at St. Joseph's school, spoke in support of the bill. He described the physical abilities of the bird. It is a predator that can fly at 200 miles per hour, and is believed to be the fastest creature on the earth. It has been used in falconry for thousands of years. It is a symbol of strength and courage.

Ms. Sophia Angleton, a student at St. Joseph's school, spoke in support of the bill. She said the word peregrine means "wanderer". She said the bird represents hope for the future.

Mr. Bill Heinrick presented a peregrine falcon to the Committee.

Members of the Committee commented that this success story needs to be recognized throughout the state.

MOTION: Rep. CAMPBELL moved that HB712 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SNODGRASS will sponsor the bill on the floor.

HB711 State Independent Living Councils

Mr. Kelly Buckland, Director of the State Independent Living Councils, spoke in support of the bill. He said that federal regulations required that any state independent living councils not be a part of any state agency. This bill sets up the Council as a statewide single purpose district, much like a district health department. All else remains the same; the members will still be appointed by the Governor.

Speaker NEWCOMB spoke in support of the bill. He said that this does not mean that the state independent living councils are state agencies nor are they part of a state agency. However, they can contract with a state agency.

MOTION: Rep. CAMPBELL moved that HB711 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Speaker NEWCOMB will sponsor the bill on the floor.

The meeting adjourned at 9:45 a.m.



DATE: February 24, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark,, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Edmunson
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:07 a.m. with a quorum present.

The minutes of the meeting of 2/23/04 were read.

MOTION: Rep. SKIPPEN moved that the minutes of the meeting of 2/23/04 be approved as written. Motion carried by voice vote.

RS14137C1 Keeps International Codes as family of Codes

Rep. GAGNER spoke in support of this legislation. He said that previous building codes had been unified to provide uniformity. He noted that cities or counties who choose to adopt codes would adopt these international codes. This bill is strictly an update. The emergency clause is included because the cities felt that it was necessary. He asked that it be referred to the Business Committee.

MOTION: Rep. CAMPBELL moved that RS14137C1 be SENT TO PRINT and be referred to the Business Committee. Motion carried by voice vote. Rep. LANGFORD wished to be recorded as voting NAY.

RS14144 Disclosure to patient if doctor or hospital has contract with insurer

Rep. GAGNER spoke in support of the bill. He said that it addresses a situation in which a patient seeks treatment from a hospital or doctor and then discovers that there is no contract with the patient's insurance company. This results in charges to the patient that can be much more than expected. This bill states that initial contact with the patient will include information about any insurance contracts in place. If the hospital or doctor changes from participating in a contract to non-participating, then the patient must be informed. If emergency care is needed, the patient is informed after the treatment is performed. If the bill is printed, he asked that it be referred to the Business Committee.

MOTION: Rep. CAMPBELL moved that RS14144 be SENT TO PRINT, and be referred to the Business Committee. Motion carried by voice vote.

RS13881C1 Powers of planned community homeowner assoc.

Rep. JAQUET spoke in support of this legislation. She said that it uses the same language concerning condominium associations and applies it to planned community homeowners associations. If the bill is printed, she asked that it be referred to the Business Committee.

MOTION: Rep. BLACK moved that RS13881C1 be SENT TO PRINT and referred to the Business Committee. Motion carried by voice vote.

RS14175 Guardianship/conservatorship system in Idaho

Rep. FIELD (18) spoke in support of this legislation. She said that it requests that a Interim Committee be formed to study guardianship and conservatorship in Idaho. This is a very complex issue and needs in depth study. If the bill is printed, she requested that it be referred to the Judiciary and Rules Committee.

MOTION: Rep. CAMPBELL moved that RS14175 be SENT TO PRINT, and be referred to the Judiciary and Rules Committee. Motion carried by voice vote.

RS14174 Permits sale of mineral interests to owner of surface property

Mr. Ken McClure, representing a land development company, spoke in support of this legislation. He said that it concerns a situation in which the land is owned by a private individual, but the mineral rights still belong to the state. HB510 dealt with this issue, but it addressed a situation in which the Department of Lands chooses to sell the land and the mineral rights associated with it. In this case, the land is already in private hands; the owner simply wishes to buy the mineral rights. Previously, this situation had been resolved by an exchange, which could be cumbersome. The value of the mineral rights to the land will be resolved in the same manner as if it were an exchange. There would be 2 deeds issued to the property owner - one for the land, one for the mineral rights. He noted that water rights are not included in mineral rights.

MOTION: Rep. ELLSWORTH moved that RS14174 be SENT TO PRINT.

Members of the Committee noted that this issue of mineral rights had already been dealt with, and signed into law. They suggested that this bill bypass the Committee and go directly to the Second Reading Calendar.

SUBSTITUTE MOTION: Rep. SKIPPEN moved that RS14174 be SENT TO PRINT, and go directly to the Second Reading Calendar. Motion carried by voice vote.

Rep. CAMPBELL assumed the duties of the Chair.

HB647 Public employee/personal liability

Rep. DEAL spoke in support of the bill. He said that it assured those persons who serve on boards and commissions throughout the state that their personal assets are not vulnerable in the event of a lawsuit lodged against them. The bill does not provide immunity in the event that fraud or dishonesty can be proven.

Mr. Michael Kane, representing Idaho Counties Risk Management Program, spoke in support of the bill. He said that the bill imposes stricter standards on those wishing to sue board or commission members. It heightens the pleading standard. They must state what action was taken outside the normal course and scope of their duties. If the action is within the normal course and scope of their duties, then they are immune. If there is fraud or dishonesty involved, they are liable. In the case of civil rights accusations, Mr. Kane noted that these involve federal laws which supercede state laws. He noted that this legislation is different from previous legislation presented to the Committee in that it does not include an emergency clause, and it does not include board members of private foundations.



MOTION: Rep. WILLS moved that HB647 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. CLARK and LANGHORST wished to be recorded as voting NAY. Rep. DEAL will sponsor the bill on the floor.

The meeting adjourned 9:45 a.m.



DATE: February 25, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Clark, Snodgrass
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 2/23/04 were read.

MOTION: Rep.

SCR123 D.L. Evans Bank, 100 years of service

Sen. STENNETT spoke in support of the bill. He said that it honors the D.L. Evans Bank, which has been under the same ownership for 100 years. It recognizes that the bank not only survived but thrived. It is impressive that any company should survive under the same owners for that length of time, but a bank that survives for that length of time is particularly impressive, especially given the recent trends by regional and national/multi-national banks to acquire small banks all over the country. This bill recognizes that the D.L. Evans has played a positive role in the economy and politics of its community.

MOTION: Rep. JAQUET moved that SCR123 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. JAQUET will sponsor the bill on the floor.

RS14160 Records destruction

Rep. MILLER spoke in support of this legislation. She said that it had been brought to her attention by the Association of Idaho Cities. She said that it is a clarification of Idaho law regarding the disposition of existing documents. Current practice is to place documents into a computer system or microfiche. This allows the public to access this information from home. This RS will allow these entities to dispose of paper documents as necessary. It will allow a review by the State Historical Society before destruction. She noted that keeping paper documents is expensive and cumbersome.

Ms. Annette Mooney, Boise City Clerk, spoke in support of the bill. She said that her staff needed clarification about when documents could be destroyed. Current language could be interpreted to mean that all documents should be held for 10 years. Many public documents have been converted to imaged documents or microfilm, which are actually much more secure than paper. Converting these documents allows for a more efficient system of records management.

A member of the Committee expressed concern that the Historical Society might not be a part of this process, and he hoped that representatives from that agency would be present for the bill hearing. Ms. Mooney replied that the Historical Society would always have the right to review any documents slated for destruction. In answer to a question from the Committee, she replied that the Counties are not included in this language. It was recommended that the Counties should be included in this language, if only for uniformity. A Committee member commented that the accumulation of paper is a serious problem and needs a solution. He also noted that documents entered into a computer system can be unavailable if the system is upgraded in the future and cannot read those documents.

MOTION: Rep. CAMPBELL moved that RS14160 be SENT TO PRINT. Motion carried by voice vote.

SB1265 Election of school board trustees

Dr. Cliff Green, representing Idaho School Board Association, spoke in support of the bill. He said that it is a housekeeping bill. It will allow the trustees of a school board to declare that a candidate is elected if there is no opposition by the 14th day before the scheduled election. It places trustee election in line with other election law in Code. He noted there is no emergency clause and if it passes will not be in effect May 2004.

Members of the Committee said that many of these elections record very small voter turnout numbers. They encouraged Dr. Green to consider moving these elections to the date of the primary election.

Another member noted that important decisions regarding school boards are made as a result of an election when few votes are cast. This is not the solution.

MOTION: Rep. SMITH (30) moved that SB1265 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SMYLIE wished to be recorded as voting NAY. Rep. SMITH (30) will sponsor the bill on the floor.



The meeting adjourned at 9:32 a.m.



DATE: February 26, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst

The Chairman called the meeting to order at 8:35 a.m. with a quorum present.

The minutes of the meeting of 2/25/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 2/25/04 be approved as written. Motion carried by voice vote.

RS14060 Campaign contributions

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He explained that both the offices of the Secretary of State and the Attorney General were in support of this legislation. He said that it was drafted to correct two problems. The first will preserve the status quo as it is understood by all elected officials. The second will remove unintended consequences of a loophole in the Code as it refers to office accounts. It is obvious that this loophole was never intended by the Legislature when the statute was passed. He noted that ordinary office expenses can still be paid by campaign funds.

A Committee member noted an opportunity to include language instituting more frequent reporting periods. Other Committee members disagreed, saying that it will impose more unnecessary paperwork on officials who have nothing to report.

MOTION: Rep. RING moved that RS14060 be SENT TO PRINT. Motion carried by voice vote.

RS14086 Support for concurrent receipt of military retirement pay and disability compensation for veterans injured in combat

Rep. ESKRIDGE spoke in support of this legislation. He said that it concerns veterans who receive disability pay. Current law requires that retirement pay is reduced by the amount of disability pay. There are efforts on the federal level to change this situation, and this RS will urge our Congressional delegation to pursue that effort.

MOTION: Rep. CAMPBELL moved that RS14086 be SENT TO PRINT. Motion carried by voice vote.

RS14109 Disposal of surplus property by Univ of Idaho

Rep. ESKRIDGE spoke in support of this legislation. He said that it was written to address a situation which had occurred in the previous year. The University of Idaho sold a parcel of land below appraised value and with little publicity before the sale. Because it is a Land Grant College, the University is not subject to the rules governing other state agencies regarding sale of surplus property. This RS includes similar language to that used in Code dealing with state agencies' procedures in the sale of surplus property.

MOTION: Rep. SHEPHERD moved that RS14109 be SENT TO PRINT. Motion carried by voice vote.

RS14204 Establishes standards for stray electrical current

Mr. Rich Hahn, representing Idaho Power Co., spoke in support of this legislation. He said that currently there are no standards in place for regulating stray electrical voltage. In fact, very few states have any standards. This RS uses similar language to that found in a handbook published by the Department of Agriculture to describe what stray voltage is and proposed standards for it. He noted that this RS selects the more stringent amount that is allowable, which is 2 volts - the amount of electricity generated by an electric flashlight battery.

Members of the Committee commented that the Public Utilities Commission should be a part of the hearing if this bill is printed.

MOTION: Rep. CAMPBELL moved that RS14204 be SENT TO PRINT. Motion carried by voice vote.

SB1252 Liquor license/certain facilities

Mr. Russ Westerberg, representing a resort developer, spoke in support of the bill. He said that his client had already purchased the land to be developed into a world class resort and funding and architectural plans were already in place. However, there was no liquor license available at this time that could be purchased for a reasonable fee. He pointed out that resorts of this type will create much-needed jobs in the state and will help the economy of rural Idaho. This bill will allow the issuance of a non-transferable liquor license to developments such as this. He noted that business ventures such as this already have a facility in place, and are paying employees. There is no economic risk to the state.

MOTION: Rep. JAQUET moved that SB1252 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. LANGFORD wished to be recorded as voting NAY. Rep. CLARK will sponsor the bill on the floor.

The meeting adjourned at 9:10 a.m.



DATE: March 1, 2004
TIME: 9:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Shirley
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:03 a.m. with a quorum present.

The minutes of the meeting of 2/26/04 were read.

MOTION: Rep. MILLER moved that the minutes of the meeting of 2/26/04 be approved as written. Motion carried by voice vote.

SB1264 Liquor, Sunday sales, local option

Ms. Suzanne Schaefer, representing a group of liquor distributors, spoke in support of the bill. She said that the bill contains a local option to allow Sunday sales of liquor sales. It will provide a level field since a consumer may now purchase other alcoholic beverages on Sunday, and liquor by the drink is available on Sunday. She noted that it will primarily benefit small contract stores since they are primarily grocery stores or convenience stores. Under the current law, they are not allowed to sell liquor on Sunday and they lose out on potential sales on the 2nd biggest shopping day of the week. There is a national trend to allow Sunday sales of liquor.

A member of the Committee asked why both types of stores are included in this legislation. Would it be possible to separate them? Ms. Schaefer said that the important point of the legislation is to make laws governing sales of liquor consistent.

Mr. Dyke Nally, Superintendent of the State Liquor Dispensary, spoke in support of the bill. He said that the border areas of the state are particularly affected when Sunday liquor sales are not permitted. He also believes that this is a fairness issue. This change will provide a consistency in the law which will make it much easier for the contract stores to make a living.

A member of the Committee asked if the County chooses the option to allow Sunday liquor sales, are the state liquor stores obligated to do so? Mr. Nalley replied that would not be the case. The contract stores could also select not to offer Sunday liquor sales. He said that allowing the state liquor stores to open on Sundays might occur a few at a time, in a phased-in manner. He noted that the decision to open on Sundays would rest with the Superintendent. The Liquor Dispensary would have to base that decision on the needs of the local economy, and the support of the local communities. He reminded the Committee that any decision by the Dispensary to open new stores or to extend the hours would entail a review by the Joint Finance Appropriations Committee. He noted that stores which are allowed to carry liquor are carefully positioned so that there few overlaps in territory. He noted that the contract stores carry a different mix of alcohol inventory. They usually carry a limited selection of products and are usually located within another retail business, i.e. a grocery or convenience store. The State stores stock much larger inventories and are primarily a business selling alcohol.

Mr. Greg Koenig, a winery and distillery owner, spoke in support of the bill. He said that he owns a small tasting room, which is open only on Saturday and Sunday and which offers flavored brandies. He noted that since he is not able to offer his brandies on Sunday, this is a financial hardship. He believes that liquor laws are inconsistent and confusing. A member of the Committee noted that she had visited Mr. Koenig's establishment on a Sunday and was surprised to learn that she could not purchase his brandies at that time.

Mr. Rick Walth, owner of a contract liquor store, spoke in support of the bill. He said that his store must chain up a large portion of his store on Sunday since liquor cannot be purchased. He finds this confusing and so do his customers. He can still sell beer and wine, but not liquor.

He noted that most contract stores are located in rural areas of the state and business owners in these areas need all the help they can get. His Sunday business is now very slow, and he believes that allowing liquor sales will mean a major increase in his income.

Ms. Kylene Jenkins, a contract store owner, spoke in support of the bill. She also believes that the liquor laws need to be consistent. She noted that most of the contract stores in the state support this bill. She also noted that there is very little competition among the contract stores and state liquor dispensaries because they are not located near each other.

Ms. Pam Eaton, President of Idaho Retailer's Association, spoke in support of the bill. She also reminded the Committee that the contract stores are almost always located within another retail location. She emphasized that these stores are losing income by being unable to sell a profitable item on a busy shopping day.

A member noted that this option must be chosen by election, and he noted that the Legislature has already passed similar legislation in the past. Others noted that the contract stores are losing valuable business by the current law.

Others expressed dissatisfaction with the bill and said that even if their County chose not to allow these sales, people could buy liquor elsewhere and drive into their county and present problems.

MOTION: Rep. CLARK moved that SB1264 be sent to the floor with a DO PASS recommendation. The Motion passed on a roll call vote. Voting AYE were Reps. CAMPBELL, SMYLIE, CLARK, EDMUNSON, MILLER, RING, SKIPPEN, SNODGRASS, WILLS, JAQUET, SHEPHERD, SMITH (30), LANDHORST, and DEAL. Voting NAY were Reps. STEVENSON, ELLSWORTH, LANGFORD, and BLACK. Rep. MEYER will sponsor the bill on the floor.

RS14146 Statutory rape

Rep. JAQUET spoke in support of this legislation. She said that the subject of statutory rape is very complex. She noted that the charge of statutory rape has been used by parents attempting to derail a relationship between their daughter and a young man. Often, the participants are very close in age, and the sex is consensual. There is a very high penalty for a young man who is charged with this offense. She asked that it be sent to the House Judiciary and Rules Committee if it is printed.

MOTION: Rep. CLARK moved that RS14146 be SENT TO PRINT, and be referred to the House Judiciary and Rules Committee. Motion carried by voice vote.

RS14196 Open records law

Mr. Dar Olberding, representing Idaho Grain Producers, spoke in support of this legislation. He said that it concerns information released during the process of research. During the research process, records are closed to the public. At the end of the research, the records would then be made public. A member of the Committee asked him about research that never officially closes. He noted that an official notice of the closure of the project would precipitate release of the records. He was unable to answer what would happen to records of projects that never officially close.

MOTION: Rep. STEVENSON moved that RS14196 be SENT TO PRINT. Motion carried by voice vote.

RS14208 Idaho State Historical Society

Rep. EDMUNSON spoke in support of this legislation. He said that it is important to preserve Idaho's history. As a history teacher he feels a deep respect for Idaho's past. He noted that we have lost much of our past history due to a lack of funding, and he believes that this legislation will provide a much-needed source of help.

Mr. Steve Guerber, representing the Idaho State Historical Society, spoke in support of this legislation. He noted that the Historical Society does its best to preserve Idaho's history, but is often underfunded. This bill will establish a mechanism for providing support for historical preservation - The Idaho State Historical Preservation Fund. There will be a "trailer" bill which will establish a method for funding it. This legislation recognizes the need for Idaho to preserve those items or buildings which are important to its history. He noted that there is a possibility that some services will require a fee. He also addressed a question regarding the "emergency" provision in the bill. He noted that the Joint Finance Appropriations Committee will have oversight over the funding, but that Committee meets only a few times a year. In the event that imminent destruction of a valuable item or building dictates immediate action, this emergency provision will allow the Fund to act.

MOTION: Rep. SMYLIE moved that RS14208 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 10:12 a.m.



DATE: March 2, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Ellsworth, Stevenson
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:34 a.m. with a quorum present.

The minutes of the meeting of 03/01/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 03/01/04 be approved as written. Motion carried by voice vote.

HJM21 Veterans/disability/retirement

Rep. ESKRIDGE spoke in support of the bill. He explained that current policy is that veterans who receive disability for injuries sustained during service have been informed that their retirement will be offset by the amount of the disability pay. There have been changes in this policy, allowing veterans who receive 50% or greater disability pay to receive their full retirment. This memorial urges a policy allowing veterans who receive less than 50% disability to receive their full retirement.

MOTION: Rep. CAMPBELL moved that HJM21 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. ESKRIDGE will sponsor the bill on the floor.

HB778 U/I disposal of surplus property

Rep. ESKRIDGE spoke in support of the bill. He said that it outlines a policy for the University of Idaho to dispose of surplus property. Because the University is a Land Grant college, it is not subject to the normal rules for disposal of surplus property that any other state entity must follow. He said that he had worked with University personnel to resolve this issue. This policy will allow much more public involvement.

A Committee member noted that the University had sold a prime piece of property in the past year at considerably less than it was worth. There had been little public notice and very little oversight. This bill will resolve that problem in the future.

MOTION: Rep. CAMPBELL moved that HB778 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. ESKRIDGE will sponsor the bill on the floor.

SB1306 Permanent endowment funds, invest

Matt Heartzen, manager of the Endowment Fund, spoke in support of the bill. He said that it changes the time period that the Endowment Fund calculates losses. The current period is 4 years. This bill will calculate losses based on a 10-year period. It defines certain benchmarks: a loss benchmark is set at June 30,2000; a gain benchmark is set to protect the real value of the endowment fund. All of these changes reflect the change in investment philosophy from fixed income to a more diversified investment strategy. The equity market requires a longer timeline to realize increased income. He said that the 10-year period had been adopted after extensive research.

Members of the Committee noted that the 4-year time period had been adopted fairly recently and appeared to be a reasonable time period. Others questioned if the change in investment strategy had been a mistake, given the losses suffered immediately after the new strategy had been adopted. Mr. Heartzen replied that he believes that it was a good decision to change investment strategy and he said that future generations will view this as a very good idea.

Mr. Heartzen also pointed out that the losses suffered by the Fund had occurred in a period of equity losses combined with slower than usual timber sales. This is a rare occurrence. He also said that the spending policy had been revised to help build a cushion in the Fund.

A member of the Committee commented that the equity market had always outpaced fixed income investments.

MOTION: Rep. SKIPPEN moved that SB1306 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. CLARK, JAQUET, and SMITH (30) wished to be recorded as voting NAY. Rep. DEAL will sponsor the bill on the floor.

Rep. CAMPBELL assumed the duties of Chairman.

RS13738 High risk pool

Rep. DEAL spoke in support of this legislation. He said that it would allow the Idaho Individual High Risk Reinsurance Pool to be designated as the state qualified benefit plan for the purpose of the Trade Act of 2002. This will conform to federal standards so that certain individuals will receive a federal tax credit when they enter into a COBRA program. He asked that it be referred to the House Business Committee if it is printed.

MOTION: Rep. JAQUET moved that RS13738 be SENT TO PRINT and be referred to the House Business Committee. Motion carried by voice vote.

RS14228 PUC/Tax Commission/Industrial Commission salaries

Rep. DEAL spoke in support of this legislation. He said that it mirrors the language in a prior bill heard before the Committee this session. It will allow a raise in compensation for the Commissioners of the Public Utilities Commission, the State Tax Commission, and the Industrial Commission. However, unlike the previous legislation which authorized annual raises based on CEC recommendations, this bill authorizes a 2% raise this year, effective July 1, 2004. He asked that it be sent to the 2nd Reading Calendar if it is printed.

MOTION: Rep. JAQUET moved that RS14228 be SENT TO PRINT, and be referred to the 2nd Reading Calendar. Motion carried by voice vote.

The meeting adjourned at 9:07 a.m.



DATE: March 3, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:34 a.m. with a quorum present.

The minutes of the meeting of 3/02/04 were read.

MOTION: Rep. SHEPHERD moved that the minutes of the meeting of 3/2/04 be approved as written. Motion carried by voice vote.

HB777 Campaign contributions

Mr. Ben Ysursa, Secretary of State, spoke in support of the bill. He said that it was written to address an unintended consequence of prior legislation. The bill clarifies that contribution limits apply to the retirement of debt. It states that excess campaign funds cannot be converted to personal use. Campaign funds may be used for any lawful purpose except personal use. All of these provisions have been in common use, but this legislation writes it into statute.

Mr. Lawrence Wasden, Attorney General, spoke in support of the bill. He also said that it will rectify an unintended consequence of prior campaign finance legislation. The bill will not allow an additional account with no reporting requirements or limits. He believes that closing this loophole will help restore public confidence in our elected officials. He noted that he was not addressing any one instance of abuse of this loophole, but was more concerned that the issue be resolved in statute. He noted that the provisions of the bill would apply to any future campaign funds collected, not funds currently being held.

Rep. NEWCOMB, Speaker of the House, spoke in support of the bill. He said that he was co-sponsor of the previous legislation. He is certain that the intent of the original legislation was never to allow funds to be used except for ordinary and necessary expenses. He believes it is extremely important that campaign funding be open to public view.

Mr. Jim Hansen, Executive Director of United Vision for Idaho, spoke in support of the bill. He believes that it is symptomatic of a larger problem, that of the consequences of an entirely privately financed system of elections. This bill is a good first step, but it addresses just a small part of the problem.

A member of the Committee asked Mr. Ysursa what would constitute "ordinary and necessary" expenses. He replied that this language was adopted from the Internal Revenue Service Code.

Another member of the Committee commented that appearances do matter in the public eye. The public already views public officials in a negative light. It is important that any funds received by public officials be handled with the utmost responsibility.

MOTION: Rep. CAMPBELL moved to that HB777 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Reps. NEWCOMB and DENNEY will sponsor the bill on the floor.

The meeting adjourned at 9:12 a.m.



DATE: March 3, 2004
TIME: Upon Adjournment of the full Committee
PLACE: Room 412
MEMBERS: Chairman Campbell, Black, Smylie, Miller, Snodgrass, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 9:22 a.m. with a quorum present.

The minutes of the meeting of 2/20/04 were read.

MOTION: Rep. SMYLIE moved that the minutes of the meeting of 2/20/04 be approved as written. Motion carried by voice vote.

HB597 Best Value in Contracting Act

HB598 Contractors/Idaho employees report

Mr. Dick Rush, representing Idaho Association of Commerce & Industry, spoke in opposition to the bills. Regarding HB597, he said that it had lofty goals, but the reality is that they would be difficult to accomplish. The bill states that the contractor must "project" the number of Idaho employees and the projected income taxes that these employees would pay. The rating factors are undefined. It is difficult to predict future payrolls of projects that could, and often do, last years. He noted that the contracting business in Idaho is a small piece of the entire construction picture. These same contractors engage in business all over the region.

There is real concern that the surrounding states would retaliate against Idaho companies in response to this bill.

Regarding HB598, he believes that small companies would be particularly hard hit by the reporting requirements. These requirements would entail hiring extra employees just to calculate the figures required in this report. In answer to a question from the Committee, Mr. Rush said that construction is a very competitive business and establishing a low bid is very important. Price is usually of paramount concern.

Mr. Jerry Peterson, representing Idaho Building Trades, spoke in support of the bills. He noted that Idaho is the only state west of the Mississippi to consider only the lowest bid when awarding contracts. Nor is there any consideration given to the prevailing wage. He noted that the reporting requirement in HB598 can be satisfied by the same procedure used to report on certified payroll which is required on federal projects. He noted that the low bid requirement forces many entities to do business with companies they do not wish to employ. He suggested that a different approach to the bidding process might include "best value contracting" or "lowest responsible bidder" approach. He did acknowledge that these last two approaches allow much more latitude for dispute.

Regarding the argument that these bills will require more employees to fulfill requirements, he noted that the requirements might also save money, since contractors might be selected on the basis of ability and knowledge rather than simply a low bid.

Mr. George Moses, a citizen representing himself, spoke in support of the bills. He pointed out that the bills were written to create jobs for skilled, trained employees in the state. He noted that Idaho's tax structure is significantly higher than all the surrounding states, and this makes it quite difficult for a contractor to bid a job competitively. HB597 takes this fact into account and allows the contractor to bid the job on equal footing with others. The Legislature would determine the factor used by the contractor in figuring his bid. He believes that the contracting industry is sufficiently sophisticated to adjust existing reporting requirements to include the new information.

Mr. Michael Gifford, representing Associated General Contractors of Idaho, spoke in opposition to the bills. He also believes that projecting future payrolls would be problematic. Concerning the high tax issue, he noted that any out of state employees who work in Idaho also pay Idaho income tax. He believes that these requirements will adversely affect the bid process. He also pointed out that all entities who let contracts will be affected. This includes small entities such as school districts, fire districts, etc. He believes that the fiscal impact will be greater than anticipated.

He believes that an alternative to the low bid process should be investigated.

Mr. Steve West, representing Oldcastle Materials, spoke in opposition to the bill. He echoed Mr. Gifford and Mr. Rush's comments. He believes that this bill will severely hamper his company when it competes for out of state contracts. He also believes that the low bid requirement needs to be re-worked.

Mr. Dave Whaley, representing Idaho State AFL-CIO, spoke in support of the bills.

Mr. Greg Laragan, representing Idaho Transportation Department, said that ITD deals primarily with contracts funded primarily from federal funds. These bills would not apply in that case. He also agreed that a serious discussion of best value contracting would be valuable.

A member of the Committee noted that other entities have been discussing regional problems, and one of the key points is to treat the problems as regional, rather than local. These bills feature solutions that are exactly opposite from that approach. However, the bid process appears to need serious discussion. He suggested a study Committee to investigate solutions.

Another member said that these bills represent a first step in discussing the issues. He pointed out that HB598 simply helps enforce a requirement that is already in the Code.

MOTION: Rep. BLACK moved that the Sub-Committee advise the full Committee that it recommends HB597 and HB598 be HELD IN COMMITTEE.

Other members noted that serious discussion seems to be in order and a Committee to study the issue would be very good idea. A Task Force, funded by the participants, would be a good idea.

SUBSTITUTE MOTION: Rep. SMITH (30) moved that the Sub-Committee advise the full Committee that it recommends HB597 and HB598 be HELD IN COMMITTEE and that a Task Force should be formed to study the issue. Motion carried by voice vote.

The meeting adjourned at 10:00 a.m.



DATE: March 4, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:35 a.m. with a quorum present.

The minutes of the meeting of 3/3/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 03/03/04 be approved as written. Motion carried by voice vote.

The Chairman asked Vice Chairman CAMPBELL to have his Sub-Committee review their minutes of 03/03/04

Rep. SMITH (30) noted two clerical errors - page 1, line 2 "be" should be added at the end of the line, page 2, line 1 "citizen" should be substituted.

MOTION: Rep. SMITH moved that the minutes of the meeting of the Sub-Committee on 03/03/04 be approved with the above changes. Motion carried by voice vote.

HCR52 Healthcare standing Committee

Rep. HENBEST spoke in support of the bill. She said that it concerned the creation of a new standing Committee in the House - a Healthcare Committee. She noted that health care is increasingly important in the state and more funds are expended on it every year. There is currently a Health Care Task Force in place which has accumulated knowledge and expertise in this field, but the issue needs to be addressed more formally. She said that this legislation affects basic committee structure in the House and the Senate.

She said that it would be very difficult to combine this Committee with the existing Health and Welfare Committee because that Committee is overloaded already. She believes it would be fairly easy to separate out issues of particular concern to each Committee. The Health and Welfare Committee is overloaded now and the health concerns studied by the Health Care Task Force will only add to the Committee's workload.

Members of the Committee queried her about the expenses involved in setting up a new Committee. She replied that there could be some consolidation of existing Committees. Some of the Committee commented that perhaps this would be a good time to review the structure and duties of all the Committees, instead of studying it piecemeal. A study of the Committee structure has not been done for a long time. Others believe that HCR52 is a good first step.

MOTION: Rep. LANGHORST moved that HCR52 be sent to the floor with a DO PASS recommendation. Motion carried on a roll call vote. Voting AYE were Reps. ELLSWORTH, LANGFORD, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, WILLS, JAQUET, SHEPHERD, SMITH (30), LANGHORST, and DEAL. Voting NAY were Reps. CAMPBELL, SMYLIE, CLARK, and SNODGRASS.

RS14218C1 Campaign funds

Rep. JAQUET spoke in support of this legislation. She said that it concerns reporting requirements for campaign funds. It would create a 6-month report requirement, instead of the current annual report.

MOTION: Rep. CLARK moved that RS14218C1 be SENT TO PRINT. By a voice vote the motion carried.

RS14244 Health ins/comm/reinsurance pool

Mr. Shad Priest, representing the Department of Insurance, spoke in support of this legislation. He said that certain individuals are eligible for federal funding for health insurance, but are unable to do so in Idaho, because certain requirements are not in place. He asked that it be referred to the House Business Committee if it is printed.

MOTION: Rep. SMITH (30) moved that RS14244 be SENT TO PRINT and be referred to the House Business Committee. Motion carried by voice vote.

RS14235 Contractors registration

Rep. GAGNER spoke in support of this legislation. He said that it deals with registering contractors. He noted that it is very similar to other legislation which is in another Committee, but has exemptions in agriculture, irrigation districts, and chemical processing. It would be a good step toward eliminating unethical contractors. There is currently no way to screen these people before awarding them a contract. Once a contractor registers, he will be required to acquire a $300,000 liability policy, and he will be required to carry workman's compensation for his employees. This is not a licensure bill. It is not oppressive to small business. He noted that all other building trades are required to be licensed.

A member of the Committee commented that this could be quite confusing. As an example, he spoke of an apartment manager who is responsible for maintaining his property. Are they considered "contractors", and do they have to register. Rep. GAGNER said that simple maintenance duties would not constitute a contractor's duties. However, if the apartment manager should decide to remodel his apartments, then he would hire contractors to do the work. If the work amounts to more than $1500, then the person he hires to do the work must register.

Members of the Committee noted that there are many homeowners who have been financially devastated by the actions of an unethical contractor. It is important to provide some means of tracking people who are in the contracting business.

MOTION: Rep. SMITH(30) moved that RS14235 be SENT TO PRINT and be referred to the House Business Committee.

Other members of the Committee commented that this is a duplicate of an existing bill. There is no reason to have two bills with the same provisions. This bill is confusing and could be burdensome to small business. This is another case of Big Brother interfering in our business.

SUBSTITUTE MOTION: Rep. CLARK moved that RS14235 be RETURNED TO SPONSOR.

Other members of the Committee noted that registration of contractors appears to be a good idea, but it is important that small business - especially a one-person crew - not be hurt. The threshold amount - $1500 - is too low and should be raised to $2000.

AMENDED SUBSTITUTE MOTION: Rep. SMYLIE moved that RS14235 be SENT TO PRINT, changing $1500 (page 3, lines 15 and 20) to $2000 and be referred to House Business Committee.

Members of the Committee reiterated that this is an important issue and something must be done to help citizens who are victimized by unethical contractors. The registration process is a simple one.

The AMENDED SUBSTITUTE MOTION (PRINT WITH CHANGES) passed on a roll call vote. Voting AYE were Reps. CAMPBELL, STEVENSON, ELLSWORTH, SMYLIE, BLACK, EDMUNSON, MILLER, RING, SKIPPEN, SNODGRASS, WILLS, JAQUET, SHEPHERD, SMITH(30), LANGHORST, and DEAL. Voting NAY were Reps. LANGFORD, CLARK, and SHIRLEY.

HB597 Best value in contracting Act

Rep. CAMPBELL said that the Sub-Committee had considered both HB597, and HB598, and their recommendation was that both bills be HELD IN COMMITTEE, and that a Task Force should be formed to study the issue in the interim.

MOTION: Rep. CAMPBELL moved that HB597 be HELD IN COMMITTEE, and that a Task Force should be formed with all interested parties to study the issue. Motion carried by voice vote.

HB598 Contractors/Idaho employees report




MOTION: Rep. CAMPBELL moved that HB598 be HELD IN COMMITTEE, and that a Task Force should be formed with all interested parties to study the issue. Motion carried by voice vote

RS14246 Defines "pecuniary benefit"/ improper gifts to officials

Rep. JAQUET spoke in support of this legislation. She said that she and Rep. CAMPBELL were co-sponsors of the bill. She said that it was drafted to help officials differentiate between legitimate gifts and misuse of public funds. It is a bi-partisan effort to resolve this question. She noted that Code language dealing with these gifts does not currently apply to legislators. She affirmed that these provisions would not apply to funds given to a political committee, since these funds are reported in a Sunshine Report. Caucus gifts are exempted. She noted some exceptions: regional tours, since they are invaluable in acquainting legislators with all areas of the state; and the Governor's golf tournament, since funds generated by this event are returned in the form of scholarships. She noted there is a review process for qualifying other exceptions.

MOTION: Rep. SMITH moved that RS14246 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:46 a.m.



DATE: March 8, 2004
TIME: 8:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheets

The Chairman called the meeting to order at 8:07 a.m. with a quorum present.

The minutes of the meeting of 3/04/04 were read.

MOTION: Rep. SHEPHERD moved that the minutes of the meeting of 3/04/04 be approved as written. Motion carried by voice vote.

RS14224 Prohibits classified state employees from holding or running for public office

Rep. JAQUET spoke in support of this legislation. She pointed out that the title as published is incorrect. It will allow state employees to run for elective office.

A member of the Committee noted that this topic should have been introduced much earlier in the session. Another member commented that allowing these people to run for public office is very much in keeping with Idaho's tradition of a citizen legislature.

MOTION: Rep. LANGHORST moved that RS14224 be SENT TO PRINT.

SUBSTITUTE MOTION: Rep. ELLSWORTH moved that RS14224 be RETURNED TO SPONSOR. The Substitute Motion (Return) passed on a roll call vote. Voting AYE were Reps. CAMPBELL, ELLSWORTH, SMYLIE, EDMUNSON, MILLER, RING, SHIRLEY, and DEAL. Voting NAY were Reps. SKIPPEN, WILLS, JAQUET, SHEPHERD, SMITH, and LANGHORST.

RS14238 Healthy Idaho Advisory Committee

Rep. HENBEST spoke in support of this legislation. She said that it would set up a Committee to study issues of health and fitness in the state. She noted that health issues have become an important topic, and the health status of Idaho's citizens is of much interest to the state. She noted that there had been a study of unhealthy lifestyles and the effect on economic growth, and the result was that employers are not interested in locating in areas where unhealthy lifestyles are prominent. Colorado, on the other hand, has made a concerted effort to promote health and fitness.

Rep. HENBEST noted that the language outlining the composition of the Committee was somewhat narrow, and was based on similar language in other states. A member of the Committee noted that an internal medicine specialist was not included and it would be a good idea to add that person. Rep. HENBEST noted that the size of the Committee could affect its functionality.

Another member of the Committee noted that the composition of the Committee did not allow for future concerns or interests. Perhaps language in the bill could be changed to broaden the composition, while keeping the number small.

MOTION: Rep. MILLER moved that RS14238 be SENT TO PRINT.

SUBSTITUTE MOTION: Rep. SMYLIE moved that RS14238 be SENT TO PRINT, with the following changes: page 1, line 15, add the words "up to" before "fourteen", and line 16, delete "shall be as follows", add the words "may represent the following". Motion carried by voice vote.

HB798 Idaho State Historic Preservation & Cultural Enhancement Act

Rep. EDMUNSON spoke in support of the bill. He said that the preservation and protection of Idaho's history is extremely important and is easily lost.

Rep. MILLER spoke in support of the bill. She said that this is an important issue that will affect our children and grandchildren. She noted a sampling of Idaho's citizens indicated real interest in preserving Idaho's historical sites and papers. She also noted that the Historical Society has a good history of cooperation with other agencies to preserve important documents and sites.

Ms. Bobby Viker, representing Idaho State Historical Society, spoke in support of the bill. She said that HB798 establishes a mechanism for receiving and distributing funds to help support preservation and protection of sites and documents. She emphasized the potential for tourism that historical sites could fulfill.

Ms. Linda Morton-Keithly, representing the State Historical Society, spoke in support of the bill. She answered questions regarding the fees noted in the bill. She said that these fees have always been in the Code, this bill deletes them from one section, and adds them to another. There are no new fees. A member of the Committee asked about a recommendation from the Blue Ribbon Committee that the Archivist function be moved to another entity. She replied that this recommendation had not yet been implemented, and it appears that this office would stay in the Historical Society under the language in this bill.

Rep. CUDDY spoke in support of the bill. He noted that many old documents refer to ownership of land, and the preservation of these records is essential.

Mr. Ken Reid, representing the State Historical Society, spoke in support of the bill. Speaking as an archeologist, he said that the preservation of ancient sites is of utmost importance to Idaho's pre-history.

Mr. Steve Walker, a private citizen, spoke in opposition to the bill. He said that the language in the bill appears to marginalize state archives. He believes that the role of the Archivist Office is to preserve and make historical documents available to the public. This bill appears to narrow that role. It ignores recommendations from the Blue Ribbon Committee that the office be merged and placed under another agency. He believes the fiscal impact is not correct. He believes it is a badly worded bill.

Ms. Sabra McCreedy, representing the Association of University Women, spoke in support of the bill. She said that she finds great inspiration and education in viewing exhibits of Idaho's history and heritage.



Rep. EDMUNSON said that Idaho must inform its young people with accurate, up-to-date information about its heritage.





MOTION: Rep. SMYLIE moved that HB798 be sent to the floor with a DO PASS recommendation.

SUBSTITUTE MOTION: Rep. CAMPBELL moved that HB798 be sent to GENERAL ORDERS with the following changes: page 3, delete lines 51-53, and re-insert lines 45-48 on page 2.

A Committee member expressed reservations about the language in lines 2-6, page 2. Mr. Reid said that this was a recent addition.

Another Committee member noted that the bill appears to have several sections that are confusing and unclear. The Director of the Historical Society will return to the state soon. It would be better to have time to clean up the language in the bill, and ask the Director to answer questions about it.

AMENDED SUBSTITUTE MOTION: Rep. SHIRLEY moved that HB798 be HELD FOR A TIME CERTAIN OF 3/11. Motion carried by voice vote.

HB797 Open records law

Mr. Dar Olberding, representing Idaho Grain Producers, spoke in support of the bill. He said that it provides that any records about a research project are closed to the public until the project is completed. The name of any cooperatives, farms, or businesses involved are not available until such time as the project is determined to be completed.

Dr. Larry Branen, representing the University of Idaho, spoke in support of the bill. He said that premature release of any information about a research project can lead to mis-interpretation. Any results from a project need the time to analyze them exhaustively. Premature release of information can lead to reluctance on the part of cooperators, who serve as test subjects. Finally, premature release of information can lead to a loss of a competitive position. He noted that 25 other states have similar language in statute.

Members of the Committee queried about when a project is determined to be completed. Is a project determined to be completed when the results are published? Dr. Branen said that this is the usual practice. Other members asked about a project which is terminated because the possibility of harm to humans or animals has been determined. Could someone else approach the same project from another direction and bring harm to themselves or others because these results were not available? Dr. Branen said that as scientists, they are morally bound to warn others about possible hazardous effects of any research. He can't guarantee that this would always be the case, but he hoped that the scientific community would abide by this unwritten rule.

Dr. Greg Bohach, representing the University of Idaho, spoke in support of the bill. He said that in addition to the other problems presented by Dr. Branen, the safety of researcher, his family or the community at large could be jeopardized. Premature release of this information could compromise future intellectual property.

A member of the Committee commented that the idea expressed in this bill is a good one and would prevent incorrect information from being released.

MOTION: Rep. RING moved that HB797 be sent to the floor with a DO PASS recommendation.

The Chairman announced that there were still several people who wished to testify on this bill, but the Committee needed to adjourn. Therefore, HB797 will be heard on Tuesday, March 9.

The meeting adjourned at 9:34 a.m.



DATE: March 9, 2004
TIME: 8:00 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:03 a.m. with a quorum present.

The minutes of the meeting of 03/08/04 were read.

MOTION: Rep. BLACK moved that the minutes of the meeting of 03/08/04 be approved as written. Motion carried by voice vote.

According to Rule 38, Rep. SKIPPEN informed the Committee that her husband was Dar Olberding, who was sponsoring the following bill.

HB797 Open records law

Chairman DEAL informed the Committee that he would continue to call upon testifiers from the previous day, since testimony regarding HB797 was incomplete.

Mr. Kevin Satterlee, representing Boise State University, spoke in support of the bill. He said that ordinarily he believes that public disclosure is a good thing, but in the case of research it can seriously hamper the ability of a university to acquire research. As an example, he noted that bank records are exempt from public disclosure by statute. However, if a bank should contract with a university for a research project using these records, they then become part of the public domain. Canola and rapeseed information is currently exempt from public disclosure, but if a research project were to study these areas, any data acquired would become public. Idaho's universities and colleges are moving more toward research and the inability to guarantee confidentiality is hampering their ability to compete for these projects. He noted that there are many research projects which are never meant to be public, primarily in the business and marketing management areas. He noted that BSU receives many requests for information under the Freedom of Information Act, some of which are frivolous, some are not.

Mr. Roy Eiguren, representing the daily newspapers, spoke in opposition to the bill. He said that the language in the bill is too broad. It promotes bad public policy. In response to Dr. Branen's comments, he said that the supposition that premature disclosure would foster mis-information is somewhat elitist. The public can judge for itself whether any premature conclusions are valid or not. He believes that exposure of the cooperators by public disclosure can be handled in another manner. He agreed that there is some risk of loss of competitive position, but he noted that only 25 other states have any provisions exempting research from public disclosure, and none of these have such a broad approach as HB797. He presented a handout outlining certain amendments that he believes will resolve these issues. (A copy is attached.)

A member of the Committee asked Mr. Olberding if he would accept these amendments. He said that it appears to narrow the exemptions to agriculture only. Mr. Eiguren said that was incorrect, the amendment would apply to any data. Mr. Saterlee said that the language in the amendment could be problematic.

Mr. Doug Gross, a farmer representing himself, spoke in support of the bill. He had been a participant in previous research, and he believes that confidentiality is very important. He noted that agriculture is extremely important to the state's economy. Research allows agriculture to develop and improve products that will benefit Idaho's economy. He also emphasized the importance of field based research and the need to completely test results before disclosing anything to the public. The cooperation with farmers and ranchers is necessary to test new products. He also noted that there are many commissions who would like to fund projects in Idaho, but are uncomfortable with disclosing information before the results are finalized.

Mr. Keith Damon, representing the Farm Bureau, spoke in support of the bill.

Mr. Olberding said that there is no intent to hide any information from the public, and any information affecting public safety must be disclosed regardless of the provisions of this bill. Peer review is extremely important, and premature disclosure circumvents this process.

Members of the Committee noted that the amendment presented by Mr. Eiguren needs study.

SUBSTITUTE MOTION: Rep. CAMPBELL moved that HB797 be HELD for a TIME CERTAIN of 3/10/04.

Members of the Committee commented that holding the bill over one more day would give sufficient time to incorporate the language in the amendment into the bill. A consensus might be possible with the additional time. The broad language in the bill concerned some, particularly in light of the fact that this bill is the broadest approach of any states with similar provisions. This is not the time to make quick decisions on important issues such as public records. One more day will allow the time to thoughtfully consider the provisions of the amendment and the bill itself. This bill appears to be too broad; we need to find a more surgical approach to the problem.

Others noted that anyone who participates in a research project needs this protection. Our universities need this guarantee of confidentiality to complete important work. Premature release of this information would do much more harm than good. We need to support our agriculture and university communities. The amendments appear to be too narrow to be of any benefit.

The SUBSTITUTE MOTION (HOLD until 3/10) failed on a roll call vote. Voting AYE were Reps. CAMPBELL, SMYLIE, CLARK, SNODGRASS, JAQUET, SHEPHERD, SMITH (30), and LANGHORST. Voting NAY were Reps. STEVENSON, LANGFORD, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, WILLS, and DEAL.

Members of the Committee commented that HB797 is too broad, and the amendments will help narrow the focus. Amending the bill here will ease its passage through the Legislature.

Others noted that the language is well crafted already and does not need any amending.



SUBSTITUTE MOTION: Rep. SMYLIE moved that HB797 be sent to GENERAL ORDERS with amendments attached. The amendments are: on page 1, under Section 5, line 3 - after "thereto", add "including data or information utilized in academic research".

The SUBSTITUTE MOTION failed on a roll call vote. Voting AYE were Reps. SMYLIE, CLARK, SNODGRASS, JAQUET, SHEPHERD, SMITH(30), and LANGHORST. Voting NAY were Reps. CAMPBELL, STEVENSON, LANGFORD, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, WILLS and DEAL.

Members of the Committee noted that the process involved in research deserves great respect. The results are only achieved through extensive review. Premature release of information could very possibly skew the findings. They suggested that this bill applies to many other forms of research not just agriculture, e.g. INEEL projects. The amendments presented to the Committee do not protect agriculture. They noted that since the public records law was entered into Code the number of exemptions has increased considerably. That might indicate that the law needs review.

The original motion (sent to the floor with a DO PASS recommendation) passed on a roll call vote. Voting AYE were Reps. CAMPBELL, STEVENSON, LANGFORD, BLACK, EDMUNSON, MILLER, RING, SHIRLEY, SKIPPEN, WILLS, and DEAL. Voting NAY were Reps. SMYLIE, CLARK, SNODGRASS, JAQUET, SHEPHERD, SMITH(30) and LANGHORST.

SB1372 Candidates/measures

Sen. DAVIS spoke in support of the bill. He said that it corrects an error in previous legislation. The emergency clause was included so that the provisions would apply to the upcoming primary elections, particularly the judicial contests.

MOTION: Rep. WILLS moved that SB1372 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. WILLS will sponsor the bill on the floor.

SCR130 Administrative rules, fee approved

Mr. Carl Bianchi, representing Legislative Services, spoke in support of the bill. He said that it is an omnibus bill which approves all fee rules reviewed by the Legislature, with the exception of one.

MOTION: Rep. JAQUET moved that SCR130 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. JAQUET will sponsor the bill on the floor.

SCR131 Administrative rules, temp, approved

Mr. Carl Bianchi, representing Legislative Services, spoke in support of the bill. He said that it is an omnibus bill which extends all temporary rules reviewed by the Legislature, with the exception of one.

MOTION: Rep. MILLER moved that SCR131 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. MILLER will sponsor the bill on the floor.

RS14237 State employees/school districts/municipalities/counties/one health plan

The Chairman noted that the sponsor of the bill was unable to be present and consequently it will be heard tomorrow (3/10).

The meeting adjourned at 9:10 a.m.



DATE: March 10, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal,, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Clark, Miller, Ring, Shirley, Skippen, Snodgrass, Jaquet, Shepherd, Langhorst
ABSENT/

EXCUSED:

Vice Chairman Campbell, Edmunson, Wills, Smith(30)
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:34 a.m. with a quorum present.

The minutes of the meeting of 3/09/04 were read. There was a clerical error, page 3, first paragraph, Rep. SHIRLEY's name was misspelled.

MOTION: Rep. RING moved that the minutes of the meeting of 3/09/04 be approved as written, with the change noted above. Motion carried by voice vote.

HB811 Candidates/reports

Rep. JAQUET spoke in support of the bill. She said under the provisions of the bill, statewide officeholders will be required to report every 6 months.

Mr. Jim Hansen, representing United Vision for Idaho, spoke in support of the bill, but he said that he would like to add amending language to apply to all state office holders. Rep. JAQUET said that she believes that such an amendment is not advisable at this time.

MOTION: Rep. ELLSWORTH moved that HB811 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. JAQUET will sponsor the bill on the floor.

HB813 Legislative officials/gifts

Chairman DEAL announced that HB813 needed further research and will not be heard at this time.

RS14264 Prompt pay

Mr. Ken McClure, representing the Idaho Medical Association, spoke in support of this legislation. He said that it was written as a result of a consensus reached among all the interested parties. He asked that it be referred to the House Business Committee if it is printed.

MOTION: Rep. SNODGRASS moved that RS14264 be SENT TO PRINT and be referred to the House Business Committee. Motion carried by voice vote.

RS14237 State employees/school district/municipalities/counties/one health plan

Rep. HENBEST spoke in support of this legislation. She said that it was written after much research and practical experience in the health care field. She noted that health care will continue to be expensive and many Idaho citizens will not be able to afford it. She noted that health care is becoming a real concern to Idaho businesses in general. Small businesses choose to drop this benefit, or at least minimize coverage, and large businesses move elsewhere. Although there have been recent attempts to resolve this issue on the federal level, she believes that the ultimate solution will rest with the individual states. She hopes that the provisions in this bill will provide a robust discussion of possible solutions to this crisis. She said that she would like to print RS14237 so that it could be discussed before the Health Care Task Force.

She said that RS14237 will combine all public employees under one health plan. She hopes that such a move will provide a mechanism to help drive behavioral change, which will in turn promote cost containment. There is a provision for data collection under this plan to help in determining the effectiveness of the plan. She hopes that this idea will provide a foundation for broader access for Idaho citizens at an affordable cost to the state. If it proves successful, it could extend to small groups, large businesses, and individuals.

Rep. HENBEST verified that this plan would be mandatory for all public employees, and would also include those individuals included as members and employees of commissions. It would supercede the "Gem Plan". This plan would attempt to satisfy all the needs of Idaho's public employees, but there might be some groups that could lose certain generous benefits. She did not know if current insurance companies would compete for the right to offer this plan, but she thought it would probably be self-funded. She noted that Idaho is a small state, and as such really has no vigorous competition. She said that she had incorporated some components of legislation from other states, but this plan is the first of its kind to be proposed.

Rep. JAQUET spoke in support of this legislation. She echoed the belief that health care costs are escalating rapidly due to technology, improved pharmaceuticals, and the fact that we are living longer. She believes that patient education is very important and will lead to a more informed public. She said that this plan could offer the "cafeteria" approach, i.e. a basic plan with several options that the individual could choose. She said that this is an approach which hopes to provide options for Idaho citizens.

A member of the Committee commented that health care costs are of great concern now, and this RS provides a good starting place for discussion.

MOTION: Rep. LANGHORST moved that RS14237 be SENT TO PRINT. Motion carried by voice vote.

The meeting adjourned at 9:14 a.m.



DATE: March 11, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives, Ellsworth, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Jaquet, Shepherd, Smith(30)
ABSENT/

EXCUSED:

Stevenson, Wills, Snodgrass
GUESTS: Steve Guerber, State Historical Society

The Chairman called the meeting to order at 8:37 a.m. with a quorum present.

The minutes of the meeting of 3/10/04 were read.

MOTION: Rep. SMYLIE moved that the minutes of the meeting of 03/10/04 be approved as written. Motion carried by voice vote.

HB798 Idaho State Historic Preservation & Cultural Enhancement Act

Mr. Steve Guerber, Director of the State Historical Society, spoke in support of the bill. He said that the bill was the result of much discussion among all the concerned parties, not just the Historical Society. It has broad based support, and is a result of a coalition at the grassroots level. He noted that previous testimony on the bill was all positive, with one exception.

In answer to a question from the Committee, Mr. Guerber said that the reference to cities and counties is an error. Apparently this reference was picked up from a older draft and should not be included in this bill. The reference to "fees" is a consolidation of several references already in Code and is not new language.

A member of the Committee noted that there are several instances where important construction projects have been held up for considerable lengths of time because of an unsubstantiated claim that the site was of important historical significance. Is there a way that the Historical Society could ensure that only credible claims could be considered? Mr. Guerber said that this type of occurrence is not rare. However, he said that his files contain information from other people. It is assumed to be accurate, but this is always open to interpretation and is not the mission of the Society to judge accuracy. He said that this kind of delay frequently occurs in conjunction with federal highway projects. There are proposed changes at the federal level to solve this problem, but the Society must comply with existing federal language.

A member of the Committee commented that the language in HB798 appears very permissive. Mr. Guerber said that this review of changes in state land is an entirely new concept, and he intended the language to be broad. At this point, his interest is that the Society have the opportunity to be advised of changes.

Another member questioned the $50,000 emergency spending authority included in the bill. Mr. Guerber said that it was included to address the possibility that an historical site would be destroyed at a time when Joint Finance Appropriate approval of funds would be delayed. Since JFAC meets only 3 times a year, this would allow the Society to respond to an emergency situation.

A member of the Committee noted that there were no letters or other forms of communication in support of the bill from the state agencies involved. Mr. Guerber said that he felt that the approval expressed by his Board and his staff was sufficient, and he would have provided further expressions of support had he realized it was important.

Another member of the Committee noted that this bill represents a framework for receiving funds. It could seek and receive federal grants. Another piece of legislation would provide state funding.

Members of the Committee expressed dissatisfaction with the bill as presented to them. At the previous hearing of the bill, they had already noted their discomfort with portions of the bill. It should be held in Committee and another bill drafted to include the changes proposed before. It would be helpful to hear from all agencies involved that they support this concept. The bill is premature.

MOTION: Rep. SKIPPEN moved that HB798 be HELD IN COMMITTEE.

Other members said that their concerns had been addressed. It is important to preserve history. Rural Idaho could reap economic benefit by preserving and prominently displaying items relating to Idaho's rich cultural history. The fact that there are no other groups testifying in support of the bill does not mean there is something wrong. There has been only minor opposition expressed. It is extremely important to preserve our history. We should never allow the destruction of historic sites or documents without reviewing and recording them. It sets a bad precedent.

SUBSTITUTE MOTION: Rep. LANGFORD moved that HB798 be sent to the floor with a DO PASS recommendation.

Still other members said that the drafting errors and concerns of the Committee could be addressed by amending the bill. The drafting errors concerning references to cities and counties could be deleted. The new language referring to rules could be deleted, and prior language referring to rules could be reinstated. Approval by co-Chairs of the Joint Finance Appropriate Committee could be required in the event of an emergency. These amendments would allow the bill to go forward. Mr. Guerber said that he would accept these changes to the bill.

AMENDED SUBSTITUTE MOTION: Rep. ELLSWORTH moved that HB798 be sent to GENERAL ORDERS with amendments attached.

The amendments would be as follows: eliminate all references in the bill to "cities and counties"; reinstate language on page 2, lines 43-48 (Item 7); delete language on page 3, lines 51-53 (item 6); on page 5, paragraph 5, add "upon notification to the co-Chairs of the Joint Finance Appropriation Committee", the board shall .....

The AMENDED SUBSTITUTE MOTION (SEND TO GENERAL ORDERS) passed on a roll call vote. Voting AYE were Reps. CAMPBELL, ELLSWORTH, SMYLIE, LANGFORD, BLACK, EDMUNSON, MILLER, SHIRLEY, SHEPHERD, SMITH(30) and DEAL. Voting NAY were Reps. RING, SKIPPEN, and JAQUET.

The meeting adjourned at 9:35 a.m.



DATE: March 16, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman, Representatives Stevenson, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30), Langhorst
ABSENT/

EXCUSED:

Campbell, Ellsworth
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:35 a.m. with a quorum present.

The minutes of the meeting of 3/11/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 3/11/04 be approved as written. Motion carried by voice vote.

SB1373 State construction contracts/requirements

Sen. SORENSEN spoke in support of the bill. She said that it would require any contractor bidding on a state building project to certify that they operate a drug free workplace. Part of the this certification will include a drug testing program. She cited statistics noting that many injuries and deaths are attributable to drug and alcohol use. She noted that the state is the largest entity letting out bids. She noted that the state is the employer when a large bid is let, and the state's policy is that all projects in the state should be built by companies who are drug free. She does not believe that the programs included in a drug free workplace are cumbersome or costly. She noted that there is a 5% discount from workman's compensation if the business is certified to be drug free. A member of the Committee asked her if it would be possible to allow a company that complies with Drug Free Idaho requirements to be allowed "points" in the bidding process. Sen. SORENSEN replied that the approach in SB1373 is an easier way to achieve the same result.

Mr. Pat Kershisnik, representing Petra, Inc. spoke in support of the bill. He said that Petra had implemented drug free programs some time ago. Prior to this implementation, he said that the company was concerned that they might lose their workforce. This is a fear based on the very real fact that the construction industry is rampant with drug and alcohol use. His company implemented the program and has little loss in its workforce.

His company has a program based on a series of drug tests. There is an initial testing of all current employees to establish a baseline. A pre-employment testing program is in place for new employees. Random testing and for-cause testing are used when appropriate. Post-accident testing is used to determine if there was any drug or alcohol use involved in the accident. In addition, his company offers an employee assistance program to help those who tested positive for drug or alcohol. All employees, including management, are subject to random testing. He said that alcohol is not tested as a part of the baseline test, but for-cause testing would definitely determine alcohol abuse. He outlined the expenses for the entire program (excluding the employee assistance program) and said that expenses would be around $2000-$3000 for his company. The 5% discount offered from workman's compensation saves the company about $5000, so the savings more than pay for the requirements of a drug free workplace. He said that a company certifying that they have a drug free workplace offers an affidavit to that effect during the bid process. He noted that all expenses in the testing are paid by the employer, not by the employee. He noted that a drug-free company realizes benefits in a safer workplace, production of a quality product, the ability to operate on a tighter schedule, and a healthier, happier workforce. He said that his company had very little trouble replacing any employees who failed drug testing.

There was some concern among the Committee that these costs would be onerous for sub-contractors. Mr. Kershisnik said that he did not know if the expenses involved in drug testing are the same for large and small companies alike. Sen. SORENSEN said that the state projects involved are very large ones, and would likely involve larger entities.

Members of the Committee expressed support for the bill. Fear and resistance to change are natural human emotions, and they make it difficult to change the way things are done. However, this program looks affordable, and any businesses who participate will see a positive change. Drug use in the workplace causes accidents, it causes delays, it produces an inferior product and costs money.

Other members noted that businesses adopt sensible practices without the need for legislation mandating it.

MOTION: Rep. WILLS moved that SB1373 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SKIPPEN wished to be recorded as voting NAY. Rep. WILLS will sponsor the bill on the floor.

SB1438 Idaho Comm on Arts/director/authority

Mr. Dan Harpole, Executive Director of the Idaho Commission on the Arts, spoke in support of the bill. He said that it is primarily a housekeeping and clarification bill. There is no new language. There are portions of language already in Code which have been moved to another section for clarity.

Members of the Committee commended the Commission for an excellent job.

MOTION: Rep. JAQUET moved that SB1438 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote. Rep. SHIRLEY will sponsor the bill on the floor.

The meeting adjourned at 9:22 a.m.



DATE: March 19, 2004
TIME: 8:30 a.m.
PLACE: Room 412
MEMBERS: Chairman Deal, Vice Chairman Campbell, Representatives Stevenson, Ellsworth, Smylie, Langford, Black, Edmunson, Miller, Ring, Shirley, Skippen, Snodgrass, Wills, Jaquet, Shepherd, Smith(30)
GUESTS: See attached sheet

The Chairman called the meeting to order at 8:32 a.m. with a quorum present.

The minutes of the meeting of 3/16/04 were read.

MOTION: Rep. RING moved that the minutes of the meeting of 3/16/04 be approved as written. Motion carried by voice vote.

SB1441 Worker's comp records, exemption

Mr. John Greenfield, an attorney representing himself, spoke in support of the bill. He said that it concerns the decisions of the Industrial Commission. He pointed out that the Statutes concerning the Industrial Commission have been amended very seldom. It appears that the Commission works very efficiently, and all parties involved are generally pleased with the system. However, in the recent past, the Commission was informed that releasing medical information relevant to its decisions to the public could open the Commissioners to lawsuits. The Commission, in response to this opinion, began redacting personal information when issuing decisions. This presented attorneys researching pertinent legal decisions with real problems, since all personal information, including names, were not available. An Advisory Committee studied the problem and recommended that personal information contained in the decisions of the Commission should be open to the public, but not any other information. SB1441 reflects this recommendation.

Mr. Jack Barrett, an attorney representing himself, also spoke in support of the bill. He said that the Advisory Committee was composed of all interested parties involved in workman's compensation issues. This Committee issued a unanimous recommendation that the provisions of SB1441 be adopted. He reiterated that any medical records not mentioned in the decision of the Commission are not to be released to the public. However, if certain facts concerning the medical records of a claimant are relevant to a case being brought before the Commission, and are part of its written decision, these facts are then to be open to the public.

MOTION: Rep. CAMPBELL moved that SB1441 be sent to the floor with a DO PASS recommendation. Motion carried by voice vote.

The meeting adjourned at 8:46 a.m.