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MINUTES OF THE
SENATE REVENUE AND TAXATION STANDING COMMITTEE
FEBRUARY 14, 2005

Room W130, West Office Building, State Capitol Complex


Members Present:    Sen. Curtis Bramble, Chair
    Sen. Ron Allen
    Sen. Gregory Bell
    Sen. Darin G. Peterson
    Sen. Mike Dmitrich
    Sen. John Valentine.
    Sen. Howard A. Stephenson
    Sen. Lyle Hillyard

Staff Present:    Bryant Howe, Assistant Director
    Jeanne Wride, Committee Secretary
    
Public Speakers Present:    Bruce Johnson, Utah State Tax Commission
    Doug Hammer Vice President, IHC
    Mitch Tibbetts, Mountain Star Network
    Bill Nelson, CEO, IHC
    Bert Zimmerlli, CFO, IHC
    Greg Poulson, Vice President, IHC
    Scott Barlow, Central Utah Clinic
    Michael Jensen, Councilman, Salt Lake County

A list of visitors and a copy of handouts are filed with the committee minutes.

Chair Bramble called the meeting to order at 4:05 p.m.
    
APPROVAL OF MINUTES:

    MOTION:
Sen. Stephenson moved to approve the minutes of February 11, 2005.

    The motion passed with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich and Sen.     Hillyard absent for the vote.

1.     H.J.R. 1 JOINT RESOLUTION RELATED TO FINANCIAL INSTITUTIONS (Rep. J. Alexander)

    
Rep. Alexander presented the bill to the committee.
    
    MOTION: Sen. Stephenson moved to pass H.J.R.1 out of committee with a favorable recommendation.


    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich     and Sen. Hillyard absent for the vote.

     MOTION: Sen. Stephenson moved to place H.J.R.1 on the Consent Calendar.

    It was noted that placement of. H.J.R.1 on the Consent Calendar was done for parliamentary     reasons.

    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich     and Sen. Hillyard absent for the vote.

    Sen. Stephenson assumed the Committee Chair.

2.     S.B. 195 TAX REVISIONS (Sen. C. Bramble)     
    MOTION:
Sen. Bramble moved to substitute S.B. 195 with 1st Sub S.B.195.

    
The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich     and Sen. Hillyard absent for the vote.

    Sen. Bramble presented the bill to the committee

    MOTION:
Sen. Peterson moved to pass 1st Sub S.B. 195 out of committee with a favorable recommendation.

    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich     and Sen.Hillyard absent for the vote.

    Sen. Bramble assumed the Committee Chair.

3.     S.B. 13 INDIVIDUAL INCOME TAX - SUBSTATION FOR CERTAIN MILITARY INCOME (Sen. H. Stephenson)

    Sen. Stephenson presented the bill to the committee.

    Sen. Bramble requested the minutes reflect S.B. 13 will be substituted on the Senate Floor.

     MOTION: Sen. Peterson moved to pass S.B. 13 out of committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Bell, Sen. Dmitrich

    and Sen. Hillyard absent for the vote.

4.    S.B. 206 NONPARTICIPATING TOBACCO MANUFACTURER AMENDMENTS     (Sen. S. Killpack)

    
Sen. Stephenson presented the bill to the committee.

    Bruce Johnson, Utah State Tax Commission, spoke to the bill.

     MOTION: Sen. Stephenson moved to pass S.B. 206 out of committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Dmitrich     and Sen. Hillyard absent for the vote.

5.    S.B. 194 SALES AND USE TAX EXEMPTION FOR ITEMS RELATING TO     DIRECT MAIL (Sen. H. Stephenson)

    
Sen. Stephenson presented the bill to the committee.

    Bruce Johnson, Utah State Tax Commission, spoke to the bill.

     MOTION: Sen. Stephenson moved to pass S.B. 194 out of committee with a favorable     recommendation.

    The motion passed unanimously with Sen. Valentine, Sen. Allen, Sen. Dmitrich     and Sen. Hillyard absent for the vote.

6.    S.B. 61 GROSS RECEIPTS TAX ON PRIVATELY OWNED HEALTH CARE     ORGANIZATIONS (Sen. M. Waddoups)

    
Sen. Waddoups presented the bill to the committee.

    Doug Hammer Vice President, IHC; Bill Nelson, CEO, IHC; Bert Zimmerlli, CFO, IHC;
    and Greg Poulson, Vice President, IHC, spoke in opposition to bill.

    Mitch Tibbetts, Mountain Star Network, and Scott Barlow, Central Utah Clinic, spoke in     favor of the bill.

     MOTION: Sen. Peterson moved to substitute S.B. 61 with 1st. Sub. S.B. 61.


    The motion passed with Sen. Allen voting against with Sen. Hillyard and Sen. Bell absent for     the vote.

     MOTION: Sen. Dmitrich moved to pass 1st. Sub. 61 out of committee with a favorable     recommendation.

    The motion passed with Sen. Allen voting against with Sen. Hillyard and Sen. Bell absent for     the vote

7.    S.B., 203 PROPERTY TAX - COUNTY SERVICE AREAS (Sen. M. Waddoups)

    
Sen. Waddoups presented the bill to the committee

    Michael Jensen, Councilman, Salt Lake County, spoke in favor of the bill.

     MOTION: Sen. Stephenson moved to amend S.B. 203 as follows:

1.    Page 2, Lines 32 through 33 :    

             32          (a)
{   .003   }        .002       per dollar of taxable value of taxable property located in the county service

             33      area, if the county service area:

The motion passed with Sen. Allen and Sen. Dmitrich voting against and Sen. Hillyard     absent for the vote

     MOTION: Sen. Valentine moved to pass S.B. 203, as amended, out of committee with a     favorable recommendation.

    The motion passed unanimously with Sen. Hillyard absent for the vote.     
     MOTION: Sen. Bell moved to adjourn.

    The motion passed unanimously with

    Sen. Bramble adjourned the meeting at 5:50 p.m.

Minutes recorded by Jeanne Wride, Committee Secretary

        
            _______________________________


            Sen. Curtis Bramble, Committee Chair