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MINUTES OF THE SENATE BUSINESS & LABOR STANDING COMMITTEE

         TUESDAY, FEBRUARY 2, 2010
ROOM 215, SENATE BUILDING

STATE CAPITOL COMPLEX


Members Present:    Sen. John Valentine, Chair
        Sen. Gene Davis
        Sen. Dan Liljenquist
        Sen. Karen Mayne
        Sen. Steve Urquhart
        Sen. Kevin VanTassell

Members Excused:    Sen. Wayne Niederhauser
            
Staff Present:    Bryant Howe, Office of Legislative Research and General Counsel
        Karen Allred, Committee Secretary
        
Public Speakers Present:     Steve Clyde, Attorney, Central Utah Water Conservancy District
        Fred Finlinson, Chairman, Utah Water Coalition
        Craig Peterson, Consultant, CAP Consulting
        Elliot Christensen, President, Brighton and North Point Consolidated
            Irrigation Companies
        Jodi Hoffman, Lobbyist, Utah League of Cities and Towns
        Randy Crozier, General Manager, Duchesne County Water             Conservation District
        Sterling Brown, Vice President, Public Policy, Utah Farm Bureau
        Jay Humphrey, Manager, Emery County Water Conservancy District
        Bill Callister, Shareholder, East Millcreek Water Company
        Megan Greathouse, DMADC Water Companies, Millard County
        Maryann Christensen, Secretary/Treasurer, Little Cottonwood Brown             Ditch Company
        Kent Jones, State Engineer
        Greg Greathouse, Attorney, DMADC Companies, Millard County
        Gordon Young, President, Mona Irrigation Company
        Harold Mitchell, Attorney, Shareholder, Parowan Reservoir Company

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

Chair Valentine called the meeting to order at 5:07 p.m. and announced that S.B. 112 Termination of a Billboard and Associated Rights Amendments (P.Knudson) and
S.B. 115 Unemployment Insurance Revisions (L. Robles) have been withdrawn from today's agenda at the request of the sponsors.




1.     H.B. 53 Foreclosure Rescue and Loan Modification Amendments (R. Wilcox)

    
Rep. Wilcox introduced the bill and 1st Sub. H.B. 53 was distributed.

     MOTION: Sen. Liljenquist moved to adopt 1st Sub. H.B. 53.

    The motion passed unanimously with Sens. Urquhart and Davis absent for the vote.

    Rep. Wilcox explained the bill.

     MOTION: Sen. VanTassell moved to transmit 1st Sub. H.B. 53 with a favorable     recommendation.

    The motion passed unanimously with Sen. Davis absent for the vote.
    
2.     H.B. 39 Insurance Related Amendments (J. Dunnigan)

    
Rep. Dunnigan introduced the bill and the following amendments were distributed:

1.    Page 1, Lines 24 through 26 :    

             24          .    clarifies language related to underinsured motorist coverage;
            
{   25
         .    prohibits certain conduct related insurance premium finance agreements;   }

             26          .    modifies provisions related to catastrophic coverage of mental health conditions;

2.    Page 3, Lines 72 through 74
    House Floor Amendments
    1-28-2010 :
    

             72          31A-3-105, Utah Code Annotated 1953
            
{   73
         31A-22-429, Utah Code Annotated 1953   }

             74          31A-22-725, Utah Code Annotated 1953

3.    Page 65, Line 2006 through Page 66, Line 2018 :    

             2006          
{   Section 16. Section 31A-22-429 is enacted to read:

             2007          31A-22-429. Insurance premium finance agreement.
             2008          (1) As used in this section:
             2009          (a) "Insurance policy" means:
             2010          (i) an individual or group life insurance or annuity policy; or
             2011          (ii) a group life insurance or group annuity certificate.


             2012          (b) "Insurance premium finance agreement" means an agreement for financing an
             2013      insurance policy premium payment.
             2014          (2) A person who provides premium financing for an insurance policy may not receive
             2015      proceeds, fees, or other consideration from the insurance policy or the insurance policyholder
             2016      that is in addition to the amounts required to pay the principal, interest, and reasonable
             2017      expenses incurred by a lender or borrower in connection with a premium finance agreement.  
}

             2018          Section 17. Section 31A-22-625 is amended to read:

Renumber remaining sections accordingly

MOTION: Sen. Mayne moved to adopt the amendments.

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

Rep. Dunnigan further explained the bill.

MOTION: Sen. VanTassell moved to transmit H.B. 39, as amended with a favorable recommendation.

    The motion passed unanimously with Sen. Davis absent for the vote.     
Sen. VanTassell assumed the Committee Chair.

3.
     S.B. 99 Water Companies and Water Right Change Requests (J. Valentine)     
    Sen. Valentine explained the bill and declared a Conflict of Interest.

    Steve Clyde, Attorney, further clarified the bill and the following amendments were     distributed:

1.    Page 5, Lines 143 through 146 :    

             143          (d) The water company shall approve the change request
{   unless the water company

             144      reasonably believes that potential damage, liability, or impairment to the water company or its
             145      shareholders will occur and that the potential damage, liability, or impairment

cannot be
             146      reasonably mitigated without cost to the water company.  
}

  , including a change that if made would result in changing the place of use to a location outside of the historic service area of the water company, unless the water company reasonably believes that:

(i) the proposed use:
(A) would be contrary to a restriction in an exchange or other contractual agreement between the water company and:
(I) another water company;
(II) a political subdivision of the state; or
(III) the federal government; or
(B) could adversely affect the status of a water company as a public water supplier, as defined in Section 73-1-4; or
(ii) any potential damage, liability, or impairment to the water company or its shareholders cannot be mitigated:
(A) by the imposition of reasonable conditions on the approval of the change request; and
(B) without cost to the water company.  


2.    Page 6, Lines 163 through 175 :    

             163          
{   (f) A water company may not deny a change request because the change, if made,

             164      would result in changing the place of use of the water to a location outside the historic service
             165      area of the water company, unless:
             166          (i) the proposed use:
             167          (A) would be contrary to a restriction in an exchange or other contractual agreement
             168      between the water company and:
             169          (I) another water company; or
             170          (II) a political subdivision of the state; or
             171          (B) could adversely affect the status of a water company as a public water supplier, as
             172      defined in Section 73-1-4 ; and
             173          (ii) any potential damage, liability, or impairment to the water company or its
             174      shareholders cannot be mitigated by the imposition of reasonable conditions on the approval of


             175      the change request.  
}

     MOTION: Sen. Valentine moved to adopt the amendments.

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

    Steve Clyde, Attorney, Central Utah Water Conservancy District; Fred Finlinson, Chairman,     Utah Water Coalition; Craig Peterson, Consultant, CAP Consulting; Elliot Christensen,     President, Brighton and North Point Consolidated Irrigation Companies, and Jodi Hoffman,     Lobbyist, Utah League of Cities and Towns spoke in support of the bill.

    Randy Crozier, General Manager, Duchesne County Water Conservation District; Sterling     Brown, Vice President, Public Policy, Utah Farm Bureau; Jay Humphrey, Manager, Emery     County Water Conservancy District; Bill Callister, Shareholder, East Millcreek Water     Company; Megan Greathouse, DMADC Water Companies, Millard County; Maryann     Christensen, Secretary/Treasurer, Little Cottonwood Brown Ditch Company; Greg     Greathouse, Attorney, DMADC Companies, Millard County; Gordon Young, President,     Mona Irrigation Company, and Harold Mitchell, Attorney, Shareholder, Parowan Reservoir     Company spoke in opposition to the bill.

    Kent Jones, State Engineer, spoke to the bill.     
     MOTION: Sen. Valentine moved to transmit S.B. 99 with a favorable recommendation.

     SUBSTITUTE MOTION: Sen. Urquhart moved to adjourn.

    The motion passed unanimously.

    Acting Committee Chair VanTassell adjourned the meeting at 5:07 p.m.


    


_________________________________

Sen. John Valentine, Committee Chair