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MINUTES OF THE

SENATE GOVERNMENT OPERATIONS     AND POLITICAL SUBDIVISIONS

STANDING COMMITTEE

FRIDAY, FEBRUARY 8, 2008

ROOM W135, WEST OFFICE BUILDING, STATE CAPITOL COMPLEX



Members Present:        Sen. Peter C. Knudson, Chair
                Sen. D. Chris Buttars
                Sen. John W. Hickman
                Sen. Scott K. Jenkins
                Sen. Scott D. McCoy
                Sen. Ross I. Romero

Staff Present:             Mark D. Andrews, Policy Analyst
                 Nedra Duzett, Secretary

Public Speakers Present:    Ronald Mortensen, Utah Coalition on Illegal Immigration
                Senator Mark B. Madsen
                Robin Riggs, Vice President and General Counsel, Salt Lake City Chamber of Commerce
                Melinda Turner, Citizen
                Michael Clara, member of the Utah Republican Hispanic Assembly
                Senator Michael Waddoups
                Theresa Martinez, Co-chair Utahns for the American Dream
                William Christoffersen, National Executive Committeeman, American Legion
                George Holmann, United Way of Salt Lake
                Norman Davis, Utah Minuteman Project
                Jim Olsen, President, Utah Food Industry Association
                Rob Latham, Chairman, Libertarian Party of Utah
                Michael Cragun, Deputy Chief of Staff, Lieutenant Governor's Office
                
A list of visitors and a copy of handouts are filed with the committee minutes.    

Committee Chair Knudson called the meeting to order at 2:05 p.m.

MOTION: Sen. Jenkins moved to approve the minutes of the February 6, 2008 meeting.

The motion passed unanimously.

1.    S.B. 81 Illegal Immigration (J. Hickman)

    Sen. Hickman explained the bill.


     MOTION: Sen. Buttars moved to adopt the following amendment:


1.    Page 1, Line 22 through Page 2, Line 32 :    

             22          .
{       restricts the exemption from paying the nonresident portion of total tuition at a state

             23      institution of higher education to students without lawful immigration status who
             24      meet certain statutory prerequisites and register as an entering student at the
             25      institution prior to May 1, 2010;
             26          .    provides that an individual who is not lawfully present in the United States is not
             27      eligible on the basis of residence within the state for a higher education benefit, to
             28      include scholarships, financial aid, and resident tuition, with one temporary exception;
             29          .    provides for the withholding of state income tax at the top rate from an independent
             30      contractor who fails to provide documentation to the contracting entity that verifies
             31      the independent contractor's employment authorization pursuant to the prohibition
             32      against the use of unauthorized alien labor;  
}


2.    Page 3, Lines 84 through 89 :    

             84          
{   53B-8-106, as enacted by Laws of Utah 2002, Chapter 230   }

             85      ENACTS:
             86          17-22-9.5, Utah Code Annotated 1953
             87          
{   53B-8-106.5, Utah Code Annotated 1953

             88          59-10-409, Utah Code Annotated 1953  
}

             89          63-99a-101, Utah Code Annotated 1953

3.    Page 11, Line 313 through Page 12, Line 362 :    

             313          
{   Section 4. Section 53B-8-106 is amended to read:

             314          53B-8-106. Resident tuition -- Requirements -- Rules.
             315          (1) If allowed under federal law, a student, other than a nonimmigrant alien within the
             316      meaning of paragraph (15) of subsection (a) of Section 1101 of Title 8 of the United States


             317      Code, shall be exempt from paying the nonresident portion of total tuition if the student:
             318          (a) attended high school in this state for three or more years;
             319          (b) graduated from a high school in this state or received the equivalent of a high
             320      school diploma in this state; and
             321          (c) registers as an entering student at an institution of higher education:
             322          (i) not earlier than the fall of the 2002-03 academic year[.]; and
             323          (ii) before May 1, 2010.
             324          (2) In addition to the requirements under Subsection (1), a student without lawful
             325      immigration status shall file an affidavit with the institution of higher education stating that the
             326      student has filed an application to legalize his immigration status, or will file an application as
             327      soon as [he] the student is eligible to do so.
             328          (3) An institution of higher education shall continue to provide the exemption from
             329      paying the nonresident portion of total tuition for a student who entered the institution before
             330      May 1, 2010, through the time that the student remains admitted as a student at that institution
             331      in a program of study leading to a degree or a certificate.
             332          [(3)] (4) The State Board of Regents shall make rules for the implementation of this
             333      section.
             334          [(4)] (5) Nothing in this section limits the ability of institutions of higher education to
             335      assess nonresident tuition on students who do not meet the requirements under this section.
             336          Section 5. Section 53B-8-106.5 is enacted to read:
             337          53B-8-106.5. Limitation on higher education benefits.
             338          Except as otherwise provided in Section 53B-8-106 , an individual who is not lawfully


             339      present in the United States is not eligible on the basis of residence within the state for a higher
             340      education benefit, to include:
             341          (1) scholarships;
             342          (2) financial aid; and
             343          (3) resident tuition.
             344          Section 6. Section 59-10-409 is enacted to read:
             345          59-10-409. Withholding of state income tax when lacking verification of lawful
             346      immigration status -- Noncompliance.
             347          (1) If an individual independent contractor, contracting for the physical performance of
             348      services in this state, fails to provide to the contracting entity documentation to verify the
             349      independent contractor's employment authorization pursuant to the prohibition against the use
             350      of unauthorized alien labor through contract set forth in 8 U.S.C., Sec. 1324a (a)(4), the
             351      contracting entity shall withhold state income tax at the top marginal income tax rate as
             352      provided in Title 59, Chapter 10, Part 4, Withholding of Tax, as applied to compensation paid
             353      to the individual for the performance of the services within this state which exceeds the
             354      minimum amount of compensation the contracting entity is required to report as income to the
             355      United States Internal Revenue Service pursuant to federal law.
             356          (2) A contracting entity who fails to comply with the withholding requirements of this
             357      section is liable for the taxes required to have been withheld unless exempt from federal
             358      withholding with respect to the individual pursuant to Section 1441 of the United States
             359      Internal Revenue Code.
             360          (3) For purposes of this section, "individual" means a resident or nonresident


             361      individual as defined in Section 59-10-103 .  
}

             362          Section
{   7   }        4       . Section 63-99a-101 is enacted to read:


4.    Page 12, Line 366 :    

             366          Section
{   8   }        5       . Section 63-99a-102 is enacted to read:


5.    Page 14, Line 428 :    

             428          Section
{   9   }        6       . Section 63-99a-103 is enacted to read:


6.    Page 16, Line 480 :    

             480          Section
{   10   }        7       . Section 63-99a-104 is enacted to read:

                      
7.    Page 17, Lines 510 through 511 :    

             510          (f) the exemption for paying the nonresident portion of total tuition
{   for the time periods   }        as      

             511      set forth in Section 53B-8-106 .

8.    Page 19, Line 555 :    

             555          Section
{   11   }        8       . Section 67-5-22.5 is enacted to read:


9.    Page 19, Line 564 :    

             564          Section
{   12.   }        9       Section 67-5-26 is enacted to read:


10.    Page 20, Line 596 :    

             596          Section
{   13   }        10       . Section 76-10-2701 is enacted to read:


11.    Page 20, Line 611 :    

             611          Section
{   14   }        11       . Coordinating S.B. 81 with H.B. 63 -- Technical renumbering.


    The motion passed unanimously.

    James Wilson, Associate General Counsel, Office of Legislative Research and General Counsel, answered questions posed by Committee members.


    The following spoke in support of the bill:
        Ronald Mortensen, Utah Coalition on Illegal Immigration
        Senator Mark B. Madsen
        Melinda Turner, Citizen
        Senator Michael G. Waddoups
        William Christoffersen, National Executive Committeeman, American Legion
        Norman Davis, Utah Minuteman Project

    The following spoke in opposition to the bill:
        Robin Riggs, Vice President and General Counsel, Salt Lake City Chamber of Commerce
        Michael Clara, member of the Utah Republican Hispanic Assembly
        Theresa Martinez, Co-chair Utahns for the American Dream
        George Hoffmann, United Way of Salt Lake
        Jim Olsen, President, Utah Food Industry Association

     MOTION: Sen. Buttars moved to pass the bill out favorably.

     SUBSTITUTE MOTION: Sen. Romero moved to send the bill to interim study. The substitute motion failed with Sen. McCoy and Sen. Romero voting in favor.

     SUBSTITUTE MOTION: Sen. Jenkins moved to change the effective date of the
    bill from July 1, 2009 to July 1, 2010.

    Sen. Jenkins withdrew his substitute motion.

     SUBSTITUTE MOTION: Sen. Jenkins moved to make July 1, 2009 the effective date of the legislation.

    The motion failed with Sens. McCoy, Romero, and Jenkins voting in favor and Sens. Buttars, Hickman, and Knudson voting in opposition.

    The original motion to pass the bill out favorably passed with Sens. Buttars, Hickman, Knudson, and Jenkins voting in favor and Sens. McCoy and Romero voting in opposition.

Sen. Jenkins assumed the Chair.

2.    S.B. 193 Election Law Changes (P. Knudson)

    Sen. Knudson explained the bill.


    Michael Cragun, Deputy Chief of Staff, Lieutenant Governor's Office, spoke to the bill.

     MOTION: Sen. McCoy moved to pass the bill out favorably.

    The motion passed unanimously with Sens. Buttars and Hickman absent for the vote.

3.    S.B. 43 Administrative Rules Reauthorization (H. Stephenson)

    Sen. Stephenson explained the bill.

     MOTION: Sen. Buttars moved to pass the bill out favorably.

    The motion passed unanimously.

4.    H.B. 44 Declaration of Candidacy Revisions (G. Donnelson)

    
Rep. Donnelson explained the bill.

     MOTION: Sen. McCoy moved to pass the bill out favorably.

    The motion passed unanimously.

     MOTION: At the request of the sponsor, Sen. Jenkins moved to place the bill on the Consent Calendar.

    The motion passed unanimously.

5.    H.B. 41 Campaign Report Amendments (S. Allen)

    Rep. Allen explained the bill.

    Michael Cragun, Deputy Chief of Staff, Lieutenant Governor's Office, spoke to the bill.
    
     MOTION: Sen. Hickman moved the following amendment:

1.    Page 13, Lines 382 through 389 :    

             382          Section 3. Section 20A-11-104 is enacted to read:
             383          20A-11-104. Late financial statements -- Fees.
             384          (1) The election officer shall assess the following administrative fees against any
             385      person who fails to timely file a financial statement required by this chapter:
             386          (a) an administrative fee of
{   $1,000   }        $100       for each late financial statement; and


             387
         (b) for each late financial statement, an additional, daily administrative fee of
{   $50   }        $20       ,

             388      which shall be assessed for each calendar day that falls between the date the statement was due
             389      and the date that the late statement is filed.
                         
    The motion passed with Sens. McCoy and Romero voting in opposition and Sen. Buttars absent for the vote.

    Rob Latham, Chairman, Libertarian Party of Utah, spoke to the bill.

     MOTION: Sen. Jenkins moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Buttars absent for the vote.

6.    H.B. 49S1 Budget Reserve Account and Disaster Recovery Account Amendments     (W. Harper)

    Rep. Harper explained the bill.

     MOTION: Sen. Hickman moved to pass the bill out favorably.

    The motion passed unanimously with Sen. Buttars and Sen. Jenkins absent for the vote.

7.    H.B. 238 Campaign Finance Filing Requirements (G. Hughes)

    H.B. 238 was not considered.

     MOTION: Sen. Romero moved to adjourn.

    The motion passed unanimously.

    Committee Chair Knudson adjourned the meeting at 4:32 p.m.

    Minutes reported by Nedra Duzett, Secretary



______________________________________
Sen. Peter C. Knudson, Committee Chair