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MINUTES OF THE SENATE BUSINESS & LABOR STANDING COMMITTEE

         MONDAY, FEBRUARY 28, 2011
ROOM 215, SENATE BUILDING



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

Staff Present:    Bryant R. Howe, Assistant Director
        Karen Allred, Committee Secretary
        
Public Speakers Present: Brett Tolman, Attorney
        Michelle Anderson West, Attorney
        Doug Short, Attorney
        Phillip Danielson, Attorney
        Robyn Burkinshaw, Director, Business Development, ULC
        Natalie Fratto, Mortgage Fraud Victim
        Theron Morrison, Attorney, R.C. Willey Home
        Bruce C. Jenkins, Attorney, Community Actions Committee,          Legislative Action Committee
        J. Brent Godfrey, Insurance Claims Adjuster
        Michael Johnson, Future Community Services Inc.,Community          Management CEO
        Marla Matt-Smith, Community Action Institute, Legislative Action          Committee
        Glenna Tibbetts, Resident, Condominium Owner
        John Morris, Attorney, Community Action Insititute, Legislative          Action Committee
        Kristian Jelm, State Manager, Young's Market Co.
        Brad Maurer, North West Regional Manager, Boisset Family Estates
        Earl Dorius, Regulatory Director, Department of Alcoholic Beverage          Control
        Eric Stucki, Utah State Parks
        Richard Burke, Attorney, Utah Association for Justice
        Carolyn Cox, Legal Counsel, Moreton and Company
        Scott Deru, Legislative Co-Chair, Utah Association of Health          Underwriters
        Dan Bradshaw, President, Benchmark Insurance Agency

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


Chair Valentine called the meeting to order at 4:21 p.m.

Approval of Minutes

    MOTION: Sen. Liljenquist moved to approve minutes of the February 25, 2011, meeting.

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

1.     H.B. 93 Mortgage and Real Estate Licensure Exemptions for Attorneys (L.     Christensen)

    The following amendment was distributed:

1.    Page 4, Lines 94 through 113
    House Committee Amendments
    2-10-2011 :    

             94          (m) an attorney admitted to practice law in this state
{   [   } : (i) if the attorney is not

             95      principally engaged in the business of negotiating residential mortgage loans
  when considering the attorney's ordinary practice as a whole for all the attorney's clients       ; and (ii)      {   ]   } when

             96      the attorney H. [renders services] engages in loan modification assistance .H in the course of
             96a      the attorney's practice as an attorney.
             97          (3) An individual who will engage in an activity as a mortgage loan originator is
             98      exempt from this chapter only if the individual is an employee or agent exempt under
             99      Subsection (2)(g).
             100          
{   [   } (4) (a) Notwithstanding Subsection (2)(m)      {   (i)   } , an attorney exempt from this chapter

             101      may not engage in conduct described in Section 61-2c-301 when transacting business of
             102      residential mortgage loans.
{   ]   }

             103          
{   [   } (b) If an attorney exempt from this chapter violates Subsection (4)(a), the attorney:      {   ]   }

             104          
{   [   } (i) is not subject to enforcement by the division under Part 4, Enforcement; and      {   ]   }

             105          
{   [   } (ii)      {   is   }        may be       subject to disciplinary action generally

applicable to an attorney admitted to


             106      practice law in this state.
{   ]   }

             107          H. [[] [(c)]
{   (4)   }        (c)       If the division receives a complaint

             107a     
{   [   } alleging      {   ]   }      {   regarding   } an attorney exempt from this chapter

             108     
{   [   } is in violation of Subsection (4)(a)      {   ]   }        or that an attorney subject to this chapter has violated this chapter       , the division shall forward the complaint to the

             108a      Utah State
             109      Bar for disciplinary action. []]
  (d) For an attorney who the division finds is not to be exempt under Subsection (2)(m), the division may independently take enforcement action against the attorney under Part 4, Enforcement.      

             110          [[] (5) []] [(4)] .H (a) An individual who is exempt under Subsection (2)
             110a      or (3) may voluntarily
             111      obtain a license under this chapter by complying with Part 2, Licensure.
             112          (b) An individual who voluntarily obtains a license pursuant to this
             112a      Subsection H. [[] (5) []] [(4)] .H
             113      shall comply with all the provisions of this chapter.
             
     MOTION: Sen. Urquhart moved to adopt the amendment.

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

    Brett Tolman, Attorney; Michelle Anderson West, Attorney; Doug Short, Attorney; Phillip     Danielson, Attorney; Robyn Burkinshaw, Director, Business Development, ULC; Natalie     Fratto, Mortgage Fraud Victim and Theron Morrison, Attorney, R. C. Willey Home spoke     to the bill.

Sen. Urquhart assumed the Committee Chair.

     MOTION: Sen. Van Tassell moved to transmit H.B. 93 with a favorable recommendation.

    The motion passed unanimously with Sens. Valentine and Bramble absent for the vote.
    
2.     S.B. 167 Condominium and Community Association Revisions (W. Niederhauser)
    
    Sen. Niederhauser explained the bill.

    Bruce C. Jenkins, Attorney, Community Actions Committee, Legislative Action Committee

    further clarified the bill and answered questions from the committee and spoke in support of     the bill.

    J. Brent Godfrey, Insurance Claims Adjuster; Michael Johnson, Future Community     Services Inc., Community Management CEO; Marla Matt-Smith, Community Action     Institute, Legislative Action Committee; Glenna Tibbetts, Resident, Condominium Owner     and John Morris, Attorney, Community Action Institute, Legislative Action Committee spoke     in support of the bill.

     MOTION: Sen Van Tassell moved to transmit S.B. 167 with a favorable recommendation.

    The motion passed unanimously.

3. S.B. 81 Alcoholic Beverage Control Act Sampling Sampling Amendments (R. Romero)

    Sen. Romero explained the bill and answered questions from the committee.

    Kristian Jelm, State Manager, Young's Market Company; Brad Mauer, North West Regional     Manager, Boisset Family Estates and Earl Dorius, Regulatory Director, Department of     Alcoholic Beverage Control spoke in support of the bill.

     MOTION: Sen. Davis moved to go to the next item on the agenda.

     SUBSTITUTE MOTION: Sen. Van Tassell moved to hold the bill and to recommended     that it be refer it to Interim Study.

    The motion substitute passed unanimously with Sen. Valentine absent for the vote.

4.     H.C.R. 7 Concurrent Resolution Supporting Public Policies That Promote Outdoor
    Activities for Children (J. Draxler)

    Rep. Draxler presented the bill and the following amendment was proposed:

1.    Page 2, Lines 30 through 35 :    

             30          WHEREAS, there are also concerns that many of our younger generation are becoming
             31      disconnected from nature;
             32          WHEREAS, youth are shunning the great outdoors in favor of sedentary activities

{   such

             33      as video games, television, the Internet, and movies   } ;

             34          WHEREAS, numerous studies have shown that there are many health, physical,
             35      emotional, and educational benefits to playing in and experiencing Utah's outdoors;
30    
    
     MOTION: Sen. Van Tassell moved to adopt the amendment.

    The motion passed unanimously with Sen. Valentine absent for the vote.
    
Sen. Bramble assumed the Committee Chair.

    Eric Stucki, Utah State Parks, spoke in support of the bill.

     MOTION: Sen. Mayne moved to transmit H.C.R. 7 with a favorable recommendation.

    The motion passed unanimously with Sens. Valentine, Liljenquist and Urquhart absent for     the vote.
    
     MOTION: Sen. Davis moved to place H.C.R. 7 on the Consent Calendar.

    The motion passed unanimously with Sens. Valentine, Liljenquist and Urquhart absent for     the vote.

5.     1st Sub. H.B. 61 Home Business Workers' Compensation Amendments (R. Barrus)

    Rep. Barrus explained the bill and the following amendment was distributed


1.    Page 1, Lines 14 through 18 :    

             14          .    defines terms;
             15          .    provides that a home business is not considered an employer of an owner's
             16     
{   immediate family member   }        spouse       for purposes of workers' compensation if certain

             17      conditions are met; and
             18          .    makes technical and conforming amendments.



2.    Page 4, Line 112 through Page 5, Line 126 :    

             112          (6) (a) As used in this Subsection (6):

             113          (i) "Hazardous work" means a hazardous occupation as defined in Section 34-23-103 .
             114          (ii) "Home business" means a business that is primarily conducted at the primary
             115      residence of an owner of the business.
             116          
{   (iii) "Immediate family member" means an individual's:

             117          (A) spouse; or
             118          (B) child who lives in the individual's primary residence and who is claimed by the
             119      individual as a dependent under Section 151, Internal Revenue Code.   }
             120          
{   (iv)   }        (iii)       "Primary residence" means:

             121          (A) a dwelling used by an individual as the home at which the individual regularly
             122      resides, regardless of whether the dwelling is owned or rented, or is a single-family dwelling or
             123      part of a multi-family dwelling;
             124          (B) so much of the land surrounding the dwelling described in Subsection (6)(a)
{   (iv)   }        (iii)       (A)

             125      as is reasonably necessary for use of the dwelling; and
             126          (C) any improvement on the land described in Subsection (6)(a)
{   (iv)   }        (iii)       (B).


3.    Page 5, Lines 127 through 131 :    

             127          (b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, a home
             128      business is not considered an employer of an individual who is:
             129          (i)
{   an immediate family member   }        the spouse       of an owner of the home business; and

             130          (ii) employed by the home business to engage in business activities that:
             131          (A) do not constitute hazardous work; and

4.    Page 5, Lines 133 through 137 :    

             133      (6)(b)(i).
             134          [(6)] (7) An employer of [agricultural laborers or domestic servants] an agricultural
             135      laborer, domestic servant, or home business owner's
{   immediate family member   }        spouse       , who is not

             136      considered an employer under this chapter and Chapter 3, Utah Occupational Disease

Act, may
             137      come under this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
     MOTION: Sen. Davis moved to adopt the amendment.

    The motion passed unanimously.

Committee Chair Valentine resumed the Committee Chair.

    Richard Burke, Attorney, Utah Association for Justice expressed concerns with the bill.

     MOTION: Sen. Liljenqust moved to transmit 1st Sub. H.B. 61 with a favorable     recommendation.

     SUBSTITUTE MOTION: Sen. Bramble moved to procee to the next item on the agenda.

    The substitute motion passed with Sens. Valentine, Bramble, Hinkins, Van Tassell, Davis and Mayne voting in favor of the motion, Sen. Liljenquist voting in opposition and Sen. Urquhart absent for the vote.        

6.     1st Sub. H.B. 333 Unfair Inducements Related to Insurance Products (J. Dunnigan)
    
    Rep. Dunnigan explained the bill.

    Carolyn Cox, Legal Counsel, Moreton and Company; Scott Deru, Legislative Co-Chair, Utah     Association of Health Underwriters and Dan Bradshaw, President, Benchmark Insurance     Company spoke in support of the bill.

     MOTION: Sen. Van Tassell moved to transmit 1st Sub. H.B. 333 with a favorable     recommendation.

    The motion passed unanimously.

    Chair Valentine declared a Conflict of Interest.

     MOTION: Sen. Van Tassell moved to adjourn.

    The motion passed unanimously with Sens. Bramble, Liljenquist and Urquhart absent for the     vote.

    Chair Valentine adjourned the meeting at 6:13 p.m.


    


_________________________________

Sen. John Valentine, Committee Chair