Utah Legislature 81118BLE

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MINUTES OF THE
BUSINESS, LABOR, AND ECONOMIC DEVELOPMENT INTERIM COMMITTEE
Wednesday, November 18, 1998 - 2:00 p.m. - Room 403 State Capitol

Members Present:
    Sen. L. Steven Poulton, Senate Chair
    Rep. Peter C. Knudson, House Chair
    Sen. David L. Buhler
    Sen. Michael G. Waddoups
    Rep. Gerry A. Adair
    Rep. Eli H. Anderson
    Rep. Patrice M. Arent
    Rep. Afton B. Bradshaw
    Rep. Katherine M. Bryson
    Rep. Don E. Bush
    Rep. Wayne A. Harper
    Rep. Brad King
    Rep. Loraine T. Pace
    Rep. Glenn L. Way
    Rep. David L. Zolman, Sr.

Members Absent:
    Sen. Eddie "Ed" P. Mayne
    Rep. Steve Barth
    Rep. Bradley T. Johnson

Staff Present:
    Ms. Mary Catherine Perry,
        Research Analyst
    Ms. Patricia Owen,
        Associate General Counsel
    Ms. Beverlee LeCheminant,
        Legislative Secretary

Note:    Names of others present and copies of information distributed at the meeting are on file in the Office of Legislative Research and General Counsel.

1.    Call to Order - Chair Knudson called the meeting to order at 2:40 p.m.

2.    Committee Business - Ms. Patricia Owen, Associate General Counsel, reported on the ongoing litigation between banks and credit unions.

    MOTION: Rep. Adair moved to approve the minutes of the October 21, 1998 meeting. The motion passed unanimously with Rep. King absent for the vote.

3.    Report on Insurance Coverage of Contraceptives - Rep. Sheryl Allen gave the committee background information on insurance coverage of contraceptives and indicated that she will prepare related legislation for the 1999 General Session. She distributed an actuarial study of prescription contraceptive coverage that was conducted by the Office of Health Data Analysis.

    Ms. Nancy Lyon, Utah Health Insurance Association of Utah (Association), informed the committee that the Association surveyed its members regarding this issue and found that all but one of the companies surveyed include contraceptives in their medical plans for individuals, small groups, and large groups.

4.    Financial Services Amendments - Sen. David Buhler told the committee about the work of an ad hoc group formed to study whether the state's laws regulating the financial industry should be amended.
    Mr. Steve Nielsen, Legal Counsel, Department of Financial Institutions, discussed proposed changes and indicated that the amendments to the state's regulatory laws would have a positive impact on the depository institutions that are chartered in the state and would allow them to remain competitive.

5.    Consumer Education and Enforcement for Financial Services - Rep. Wayne Harper distributed draft legislation titled "Consumer Credit Issues" and indicated that the legislation enhances enforcement mechanisms; requires the Department of Financial Institutions to coordinate with representatives of education, government, and the financial services industry; assists in the preparation of a program to develop, implement, and monitor a financial services education curriculum; and reports biennially to this committee on consumer education programs.

    Mr. Steve Nielsen, Legal Counsel, Department of Financial Institutions, indicated that the current law encourages the department to work with the parties involved and obtain a voluntary resolution to its conflict. The law is unclear on whether the department could bring an action in court based upon a claim of unconscionability. In response to committee questions, Mr. Nielson indicated that he did not anticipate the need for additional funding should the legislation pass.

     MOTION: Rep. Bradshaw moved to recommend legislation titled "Consumer Credit Issues" as a committee bill.

    Ms. Julie Felshaw, State Office of Education (Office), said that the Office sees the need for financial services education, but it does have some concerns with funding and whether curriculum would be mandated.

    Ms. Karen Clark, Utah Eagle Forum (Forum), said the Forum's concern is that financial services education may cut into the basic curriculum and whether or not the students will be taught to stay out of debt.

    The motion failed. Voting in the affirmative were Sen. Buhler and Reps. Adair, Anderson, Arent, Bradshaw, Harper, Pace, and Knudson. Voting in the negative were Sens. Poulton and Waddoups and Reps. Bryson, Bush, King, Way, and Zolman.

6.    Report from the Occupational and Professional Licensure Sunrise Task Force - Sen. Al Mansell, Task Force Chair, distributed the Occupational and Professional Licensure Sunrise Task Force 1998 Final Report and a copy of draft legislation, "Occupational and Professional Licensure Review Committee." He gave an overview of the task force report and provided committee members with printed copies of his overview.

    Mr. Keith Woodwell, Associate General Counsel, summarized the draft legislation for the committee members.

     MOTION: Rep. Bush moved to recommend legislation, "Occupational and Professional Licensure Review Committee" as a committee bill. The motion passed unanimously with Rep. King absent for the vote.

7.    Report from the Task Force on Local Airport Funding - Rep. Bill Hickman, Task Force Chair, told the committee that the Local Airport Funding Task Force was created to identify funding mechanisms for airports.

    Sen. Lyle Hillyard, Task Force Chair, indicated that the task force identified ways to generate additional revenue for airports, but did not recommend any proposed legislation. He indicated that the funding mechanisms the task force considered are: 1) to increase the tax on aviation fuel from $.04 a gallon to $.08 a gallon for all aircraft except common carriers; 2) reallocate aviation fuel tax revenues; and 3) appropriate money from the General Fund.

    Sen. Hillyard noted that another issue he raised with the task force is the fact that currently the three and four cents is a tremendous benefit to the Salt Lake International Airport because most of the gasoline is purchased there. He said if that ratio was changed, then that money would be available statewide for all airports, including the Salt Lake City International Airport.

8.    Report from the Electrical Deregulation and Customer Choice Task Force - Sen. Blackham distributed the final report of the Electrical Deregulation and Customer Choice Task Force. He indicated that the task force is not proposing action on electrical restructuring at this time, but recommends reauthorization of the task force in order to continue the study of developments in other states and on the federal level.

     MOTION: Sen. Poulton moved to recommend the legislation "Electric Restructuring Study" as a committee bill. The motion passed unanimously with Sen. Waddoups absent for the vote.

9.    Consolidation of Economic Development Functions - Mr. David Winder, Executive Director, Department of Community and Economic Development, said that the consolidation of economic development functions is a proposal to combine public and private business recruiting efforts into one organization.

    Sen. Poulton distributed draft legislation "Powers of Department of Community and Economic Development" and indicated that the legislation would prohibit the department or its divisions from entering into a contract or agreement with a private entity that would perform business recruiting for the state unless the private entity's sole function is business recruiting.

    Mr. Winder said that the purpose of the Division of Business and Economic Development is recruiting and the department does not want the division to get involved in duties that are being performed by another division. He stated that in order to recruit successfully, there are some ancillary activities that are important such as marketing, research, and attracting private sector investments.

     MOTION: Rep. Bush moved to go on to the next item on the agenda.

    Rep. Fox-Finlinson urged the committee to use extreme caution in adopting a bill that the committee, the public, or the people who have worked on this issue have not had time to study.

    The motion passed unanimously with Sen Waddoups and Reps. Adair, Arent, and King absent for the vote.

10.    Adjourn -

     MOTION: Rep. Zolman moved to adjourn the meeting. The motion passed unanimously with Sen. Waddoups and Reps. Adair, Arent, and King absent for the vote.

    Chair Knudson adjourned the meeting at 5:05 p.m.

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