Link to Zipped WordPerfect Minutes 5K bytes

MINUTES OF THE HOUSE
BUSINESS AND LABOR
STANDING COMMITTEE
Room 129 State Capitol
February 5, 2003

Members Present:    Rep. Katherine M. Bryson, Chair
            Rep. Brent D. Parker, Vice Chair
            Rep. J. Stuart Adams
            Rep. Jackie Biskupski
            Rep. Craig W. Buttars
            Rep. David Clark
            Rep. Stephen D. Clark
            Rep. Carl W. Duckworth
            Rep. Jim Dunnigan
            Rep. Ben C. Ferry
            Rep. Neil A Hansen
            Rep. Todd E. Kiser
            Rep. Mike Morley

Staff Present:    Ms. Mary Catherine Perry, Policy Analyst
            Ms. Linda Error, Committee Secretary

Visitors:        List of visitors filed with committee minutes

Chair Bryson called the meeting to order at 8:12 a.m.

Rep. Biskupski moved to approve the minutes of the February 3, 2003 meeting. The motion passed unanimously.

1st Sub. H.B. 162    Amendments Related to Financial Institutions (J. Alexander)

Rep. Kiser moved to delete in title and body 1st Sub. H.B. 162 and replace it with 4th Sub. H.B. 162. The motion passed unanimously.

Spoke for the bill:        George King, Zion's Bank, employee
                Craig Peterson, Pres., Salt Lake Chamber
                Jim Anderson, Pres., Bank of Utah
                Doug DeFries, CFO, Bank of Utah
                Chantel Chase, Zion's Bank, employee
                Kelly Matthews, Wells Fargo Bank, employee
                Drew Tuttle, First Utah Bank, employee
                Kim Butters, Zion's Bank, employee
                Thone Heppler, Zion's Bank, employee
                Jeff Klekus, Zion's Bank, employee



Spoke against the bill:    Dan McConkie, Davis County Commissioner
                Tiffany Domiano, citizen
                Judson Bagley, citizen
                Curt Doman, Pres., Granite Credit Union
                Bob Howell, Pres., Utah Power and Light Credit Union
                Brent Hill, owner, Daniels Summit Lodge
                Thelma Saunders, Weber County Commissions Office
                Mike Milovich, Pres., Carbon County Credit Union
                Casey Christensen, citizen
                Lynda Yeates, citizen
                Steve Andersen, citizen
                Edwin Dennis, Vice Chair, Deseret Credit Union
                Greg Howely, citizen
                Kim Kelter, KL&KL Investiments
                Lynn Handley, Vice Pres., Mountain America Credit Union
                Orrin Colby, citizen
                Tamara Wass, Golden West Credit Union, employee

Spoke to the bill:        Mike Jerman, Vice Pres., Utah Taxpayers Association

MOTION:    Rep. Parker moved to amend the bill as follows:

1.    Page 30, Lines 906-911:    Delete lines 906-911 and insert:
        "(1) For purposes of this section, "competitive equity assessment" means an amount calculated for each fiscal year by subtracting the amount of federal income taxes paid by the credit union in that taxable year from the lesser of:
        (a) the amount calculated to be equal to what the credit union's federal income tax liability would be if the credit union were subject to federal income tax in the same manner as a state-chartered bank; or
        (b) the amount calculated by multiplying by 30% the amount equal to the federal taxable income the credit union would have if the credit union were subject to a federal income tax in the same manner as a state-chartered bank:
        (i) as determined on a separate return basis before intercompany eliminations as determined by the Internal Revenue Code; and
        (ii) after:
        (A) the net operating loss deduction; and
        (B) special deductions for dividends received.
"


2.    Page 43, Line 1313:    After "income tax" insert "in the same manner as a state-chartered bank"

        The motion passed unanimously.

MOTION:    Rep. S. Clark moved to delete in title and body 4TH Sub. H.B. 162 and replace it with 5th Sub. H.B. 162. The motion failed with Rep. S. Clark voting in favor.

Spoke to the bill:    Howard Headlee, President, Utah Bankers Association                
            Scott Earl, President, Utah League of Credit Unions

MOTION:     Rep. Buttars moved to pass 4th Sub. H.B. 162 out favorably, as amended

SUBSTITUTE
MOTION:    Rep. Hansen moved to send the bill to interim study. The motion failed, with Rep. Biskupski, Rep. Duckworth, and Rep. Hansen voting in favor.

Rep. Ferry declared a conflict of interest.

        The original motion passed, with Rep. Biskupski, Rep. Duckworth, Rep. Dunnigan, and Rep. Hansen voting in opposition.

MOTION:    Rep. D. Clark moved to adjourn the meeting. The motion passed unanimously.

Chair Bryson adjourned the meeting at 10:02 a.m.






_________________________
Rep. Katherine Bryson, Chair