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MINUTES OF THE HOUSE BUSINESS AND LABOR
STANDING COMMITTEE
Room C450, State Capitol, Utah State Capitol Complex
February 5, 2008


Members Present:    Rep. Stephen D. Clark, Chair
            Rep. Jim Dunnigan, Vice Chair
            Rep. Jackie Biskupski
            Rep. David Clark
            Rep. Carl W. Duckworth            
            Rep. Ben Ferry
            Rep. Gage Froerer
            Rep. Kevin Garn
            Rep. Neil A Hansen
            Rep. Todd E. Kiser
            Rep. Michael T. Morley
            Rep. Paul Neuenschwander
            Rep. Mark Walker         
             
Staff Present:    Allison Nicholson, Policy Analyst            
            Linda Error, Committee Secretary

Note:        List of visitors and a copy of handouts are filed with committee minutes .


Vice Chair Dunnigan called the meeting to order at 3:19 p.m.

MOTION:    Rep. Duckworth moved to approve the minutes of the February 1, 2008 meeting. The motion passed unanimously, with Rep. D. Clark and Rep. Walker absent for the vote.

1st Sub S.B. 144    Parameters on Governor's Ability to Enter Agreements Binding the State (Sen. S. Jenkins)

This bill was not heard.

H.B. 92    Garnishment Amendments (Rep. J. Draxler)

Rep. Draxler introduced the bill to the committee.

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

1.    Page 2, Lines 40 through 41 :    

             40          (2) An employer who is served with a garnishment may
{   , after the requirements

of Utah


             41      Rule of Civil Procedure 64D have been met  
}
:

2.    Page 2, Lines 46 through 47 :    

             46          (3) An employer who is served with a continuing garnishment may deduct a processing
             47      fee of up to $25
  from the employee       each time a payment is made.


The motion to amend passed unanimously, with Rep. D. Clark and Rep. Walker absent for the vote.

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

1.    Page 2, Lines 48 through 53 :    

             48          (a) If the employer has 100 employees or less on the business' payroll, the employer
             49     
{   may   }        shall       not collect more than $100 total from the employee under this Subsection (3) for a

             50      continuing garnishment from the same creditor.
             51          (b) If the employer has 101 or more employees on the business' payroll, the employer
             52     
{   may   }        shall       not collect more than $50 total from the employee under this Subsection (3) for a

             53      continuing garnishment from the same creditor.

The motion to amend passed unanimously, with Rep. Walker absent for the vote.

Spoke for the bill:    Mark Olson, Utah Collectors Association
            Lacy Cherrington, Utah Collectors Association

MOTION:     Rep. Garn moved to proceed to the next item on the agenda. The motion passed unanimously.

H.B. 157    Alcoholic Beverage Control Violations Amendments (Rep. C. Oda)

Rep. Oda introduced the bill to the committee with the assistance of Ken Wynn, former director, Department of Alcoholic Beverage Control.




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

1.    Page 22, Lines 650 through 652 :    

             650          (3) (a) A nondepartment enforcement agency or nondepartment enforcement officer
             651      may not report a violation of this title to the department more than
{   two   }        eight       business days after the

             652      day on which a nondepartment enforcement officer finds a violation of the title.

2.    Page 22, Lines 657 through 658 :    

             657          (i) by no later than
{   two   }        eight       business days of the day on which the department receives the

             658      report described in Subsection (3)(a); and

3.    Page 22, Lines 665 through 666 :    

             665          (a) by no later than
{   two   }        eight       business days of the day on which the department enforcement

             666      officer finds a violation of this title; and

The motion to amend passed unanimously, with Rep. Morley and Rep. Froerer absent for the vote.

Spoke for the bill:        Arnie Mehr, Utah Hospitality Association

Spoke against the bill:    Gordon Strachan, Alcoholic Beverage Control Commission
                Earl Dorius, Department of Alcoholic Beverage Control
                                    (handout)

MOTION:    Rep. Garn moved to proceed to the next item on the agenda and requested that H.B. 157 be placed as the first item on the next agenda. The motion passed unanimously, with Rep. D. Clark, Rep. S. Clark, and Rep. Kiser absent for the vote.

H.B. 346    Division of Real Estate Related Amendments (Rep. G. Froerer)

Rep. Froerer introduced the bill to the committee with the assistance of Mark Steinagel, Utah Division of Real Estate.

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


1.    Page 1, Lines 13 through 14 :    

             13          .    addresses fines that may be imposed;
  . addresses rulemaking by the Real Estate Commission;      

             14          .    addresses disciplinary actions that may be imposed under provisions related to real

2.    Page 2, Lines 36 through 39 :    

             36      AMENDS:
  61-2-5.5, as last amended by Laws of Utah 2007, Chapter 325      

             37          61-2-13, as last amended by Laws of Utah 1991, Chapter 165
  61-2-20, as last amended by Laws of Utah 2007, Chapter 325      

             38          61-2-21, as last amended by Laws of Utah 2007, Chapter 325
             39          61-2b-2, as last amended by Laws of Utah 2005, Chapter 199

3.    Page 3, Line 62 :    

             62      Be it enacted by the Legislature of the state of Utah:
    
  Section 1. Section 61-2-5.5 is amended to read:      

     61-2-5.5 .   Real Estate Commission.
     (1) There is created within the division a Real Estate Commission. The commission shall:
     (a) make rules for the administration of this chapter that are not inconsistent with this chapter, including:
     (i) licensing of:
     (A) principal brokers;
     (B) associate brokers;
     (C) sales agents;
     (D) real estate companies; and
     (E) branch offices;
     (ii) prelicensing and postlicensing education curricula;
     (iii) examination procedures;
     (iv) the certification and conduct of:
     (A) real estate schools;
     (B) course providers; and
     (C) instructors;
     (v) proper handling of funds received by real estate licensees;
     (vi) brokerage office procedures and recordkeeping requirements;


     (vii) property management;
     (viii) standards of conduct for real estate licensees;
{   and   }

     (ix) rules made under Section 61-2-26 regarding an undivided fractionalized long-term estate;
  and

     (x) if the commission deterimines necessary, rules as provided in Subsection 61-2-20(3) regarding legal forms;  

     (b) establish, with the concurrence of the division, all fees as provided in this chapter and Title 61, Chapter 2a, Real Estate Recovery Fund Act;
     (c) conduct all administrative hearings not delegated by the commission to an administrative law judge or the division relating to the:
     (i) licensing of any applicant;
     (ii) conduct of any licensee;
     (iii) the certification or conduct of any real estate school, course provider, or instructor regulated under this chapter; or
     (iv) violation of this chapter by any person;
     (d) with the concurrence of the director, impose sanctions as provided in Section
61-2-12 ;     
(e) advise the director on the administration and enforcement of any matters

affecting the division and the real estate sales and property management industries;
     (f) advise the director on matters affecting the division budget;
     (g) advise and assist the director in conducting real estate seminars; and
     (h) perform other duties as provided by:
     (i) this chapter; and
     (ii) Title 61, Chapter 2a, Real Estate Recovery Fund Act.
     (2) (a) The commission shall be comprised of five members appointed by the governor and approved by the Senate.
     (b) Four of the commission members shall:
     (i) have at least five years' experience in the real estate business; and
     (ii) hold an active principal broker, associate broker, or sales agent license.
     (c) One commission member shall be a member of the general public.
     (d) No more than one commission member described in Subsection (2)(b) shall at the time of appointment reside in any given county in the state.
     (e) At least one commission member described in Subsection (2)(b) shall at the time of an appointment reside in a county that is not a county of the first or second class.


     (3) (a) Except as required by Subsection (3)(b), as terms of current commission members expire, the governor shall appoint each new member or reappointed member to a four-year term ending June 30.
     (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of commission members are staggered so that approximately half of the commission is appointed every two years.
     (c) Upon the expiration of the term of a member of the commission, the member of the commission shall continue to hold office until a successor is appointed and qualified.
     (d) A commission member may not serve more than two consecutive terms.
     (e) Members of the commission shall annually select one member to serve as chair.
     (4) When a vacancy occurs in the membership for any reason, the replacement shall be appointed for the unexpired term.
     (5) (a) A member may not receive compensation or benefits for the member's services, but may receive per diem and expenses incurred in the performance of the member's official duties at the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
     (b) A member may decline to receive per diem and expenses for the member's service.
     (6) (a) The commission shall meet at least monthly.
     (b) The director may call additional meetings:
     (i) at the director's discretion;
     (ii) upon the request of the chair; or
     (iii) upon the written request of three or more commission members.
     (7) Three members of the commission constitute a quorum for the transaction of business.

4.    Page 3, Line 85 :    

             85      [him] the principal broker of the revocation or suspension of [his] the principal broker license.
    
  Section 3. Section 61-2-20 is amended to read:      

     61-2-20 .   Rights and privileges of real estate licensees to fill out forms or documents.
    
{   A   }        (1) Except as provided in Subsections (2) and (3), a       real estate

licensee may fill out only those legal forms approved by the commission and the attorney general, and those forms provided by statute      {   , with the following exceptions:   }        .      


    
{   (1)   }        (2)       (a)        (i)       A principal broker may fill out any documents associated with the closing of a real estate transaction.

    
{   (b)   }        (ii)       A branch broker or associate broker may fill out any documents associated with the closing of a real estate transaction if designated to fill out the documents by the principal broker with whom the branch broker or associate broker is affiliated.

    
{   (2)   }        (b)       A real estate licensee may fill out real estate forms prepared by legal counsel of the buyer, seller, lessor, or lessee.

    
{   (3)   }        (c)       If the commission and the attorney general have not approved a specific form for the transaction, a principal broker, associate broker, or sales agent may fill out real estate forms prepared by any legal counsel, including legal counsel retained by the brokerage to develop these forms.

      (3) The commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, provide a process for the use of a legal form under this section if the rule:

    (a) provides for the involvement of the commission and attorney general in the creation of a legal form; and
    (b) protects the interest of the general public.  


     Renumber remaining sections accordingly.

The motion to amend passed unanimously, with Rep. Biskupski, Rep. S. Clark, Rep. Garn, Rep. Hansen, and Rep. Kiser absent for the vote.

Spoke for the bill:    Mark Fagergren, Utah Division of Real Estate
            Chris Kyler, Utah Association of Realtors

MOTION:    Rep. D. Clark moved to pass the bill out favorably as amended. The motion passed unanimously, with Rep. Biskupski, Rep. S. Clark, Rep. Hansen, and Rep. Kiser absent for the vote.

H.B. 298    Transit Fare Reduction (Rep. W. Harper)

Rep. Harper introduced the bill to the committee.

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



1.    Page 2, Line 30 :    

             30          
{   None   }        This bill takes effect on July 1, 2008.      


2.    Page 10, Line 284 :    

             284          (b) yellow air quality action day.
    
  Section 5. Effective date.

    This bill takes effect on July 1, 2008.  


The motion to amend passed unanimously, with Rep. S. Clark, Rep. Froerer, Rep. Hansen, and Rep. Kiser absent for the vote.

Spoke against the bill:    Bruce Jones, Utah Transit Authority

MOTION:    Rep. Biskupski moved to place H.B. 298 on a future agenda.

SUBSTITUTE
MOTION:    Rep. Ferry moved to adjourn the meeting. The motion passed, with Rep. S. Clark, Rep. Froerer, Rep. Hansen, and Rep. Kiser absent for the vote.

Vice Chair Dunnigan adjourned the meeting at 5:15 p.m.











                        
                ________________________________
                    Rep. Stephen D. Clark, Chair