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MINUTES OF THE
HOUSE GOVERNMENT OPERATIONS STANDING COMMITTEE
ROOM W010, WEST OFFICE BUILDING, STATE CAPITOL COMPLEX
January 30, 2007



MEMBERS PRESENT:    Rep. Glenn Donnelson, Chair
        Rep. John Mathis, Vice Chair
        Rep. Douglas Aagard
        Rep. DeMar "Bud" Bowman
        Rep. Lorie Fowlke
        Rep. Neil Hansen
        Rep. Neal B. Hendrickson
        Rep. Eric Hutchings
        Rep. Curt Oda
        Rep. Larry Wiley                    
        
MEMBERS ABSENT:    Rep. Keith Grover
        
STAFF PRESENT:    Benjamin N. Christensen, Policy Analyst
        Karen Mitchell, Committee Secretary

Note:    A list of visitors and copy of handouts are filed with committee minutes.

Rep. Donnelson called the meeting to order at 8:17 a.m.

MOTION:    Rep. Hendrickson moved to approve the minutes of the January 26, 2007 meeting.
        The motion passed unanimously with Rep. Hutchings and Rep. Oda absent for the vote.

H.B. 304    State Treasurer Compensation (Rep. D. Clark)

Rep. Clark explained the bill to the committee. (handout)

MOTION:    Rep. Bowman move to pass the bill out favorably. The motion passed unanimously with Rep. Hutchings and Rep. Oda absent for the vote.

H.B. 317    Capitol Hill Complex - Legislative Space (Rep. W. Harper)

Rep. Harper explained the bill to the committee. (handout)

MOTION:    Rep. Hendrickson moved to pass the bill out favorably. The motion passed unanimously with Rep. Oda absent for the vote.




H.B. 251    Auditing of Leases Related to Revenue Bonds (Rep. N. Hansen)

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

1.    Page 1, Line 24 :    

             24      protect its financial interests;
 

    . exempts international airports from the requirement for an independent assessment;  


2.    Page 2, Line 51 through Page 3, Line 65 :    

             51          (1)
  (a)       Beginning July 1, 2007,        and except as provided under Subsection (1)(b),       any contract or agreement between a local political

             52      subdivision and a private entity shall include provisions that allow the local political
             53      subdivision to:
             54          
{   (a)   }        (i)       independently assess, as provided under Subsection (2), the ability of the private

             55      entity to meet its financial obligations to the local political subdivision if the contract or
             56      agreement involves lease payments, the revenue from which is pledged for the payment of
             57      principal or interest on a revenue bond; and
             58          
{   (b)   }        (ii)       rescind or amend the contract or agreement if:

             59          
{   (i)   }        (A)       the independent assessment performed under Subsection (1)(a)        (i)       produces a finding

             60      that the private entity is unable to meet its lease payments to the local political subdivision; and
             61          
{   (ii)   }        (B)       based on the assessment performed under Subsection (1)(a)        (i)       , the local political

             62      subdivision determines that the rescission or amendment is necessary to protect the financial
             63      interests of the local political subdivision.
 

    (b)    A contract or agreement that generates revenue that is payable in relation to an international airport, is exempt from the requirements of this section.  

             64          (2) The local political subdivision shall ensure the independent assessment under
             65      Subsection (1)(a)
  (i)       is conducted:


The motion to amend the bill passed unanimously.


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

1.    Page 2, Lines 32 through 33 :    

             32      in accordance with accounting principles adopted by the
{   Federal   }        Financial       Accounting

             33      Standards Board; and

2.    Page 3, Lines 71 through 72 :    

             71      with generally accepted accounting principles adopted by the
{   Federal   }        Financial       Accounting Standards

             72      Board.

The motion to amend the bill passed unanimously.

Rep. Hansen explained the amended bill.

Spoke against the bill:    Lincoln Shurtz, Utah League of Cities and Towns
                LeGrand Bitter, Utah Association of Special Districts
                David Harmer, Director Community and Economic Development,                          Ogden City

MOTION:    Rep. Wiley moved to pass the bill out favorably as amended. The motion failed with Rep. Bowman, Rep. Hansen, Rep. Hendrickson, Rep. Hutchings and Rep. Wiley voting in favor of the motion.

S.B. 11    Unemployment Compensation - Social Security Offset (Sen. J. Hickman)

Sen. Hickman explained the bill.

MOTION:    Rep. Aagard moved to pass the bill out favorably. The motion passed unanimously         with Rep. Hutchings absent for the vote.         

S.B. 32    Filings of Administrative Rules, Orders, and Regulations (Sen. H. Stephenson)


Sen. Stephenson explained the bill.

MOTION:    Rep. Hansen moved to pass the bill out favorably. The motion passed unanimously with Rep. Mathis, Rep. Fowlke, and Rep. Hutchings absent for the vote.


MOTION:    Rep. Wiley moved to place the bill on the Consent Calendar. The motion passed unanimously with Rep. Mathis, Rep. Fowlke, and Rep. Hutchings absent for the vote.

S.B. 8        Use of State Engineer Fees (Sen. M. Dayton)

Sen. Dayton explained the bill.

Spoke for the bill:    Kent Jones, Assistant Engineer, Utah State Division of Water Rights
            Todd Bingham, Utah Farm Bureau

MOTION:    Rep. Hendrickson moved to pass the bill out favorably. The motion passed unanimously with Rep. Aagard and Rep. Hutchings absent for the vote.

MOTION:    Rep. Hansen moved to place the bill on the Consent Calendar. The motion passed unanimously with Rep. Aagard and Rep. Hutchings absent for the vote.

MOTION:    Rep. Hansen moved to adjourn. The motion passed unanimously with Rep. Aagard and Rep. Hutchings absent for the vote.

Rep. Donnelson adjourned the meeting at 9:32 a.m.

    





                    __________________________
                    Rep. Glenn Donnelson, Chair