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House State Affairs Committee
2004 Minutes
January 14, 2004
February 2, 2004
March 1, 2004
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
44-0101-0301 - 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Chairman announced that this legislation would not be heard at this time.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Chairman called the meeting to order at 8:30 a.m. with a quorum present.
There were no minutes to review.
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.
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.
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.
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.
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.
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.
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.
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.
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