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Business, Labor, and Economic Development Interim Committee
MINUTES OF
BUSINESS, LABOR, AND ECONOMIC DEVELOPMENT INTERIM COMMITTEE
Wednesday, July 16, 1997 - 9:00 a.m. - Room 403 State Capitol
Members Present:
Sen. L. Steven Poulton, Chair Sen. David L. Buhler
Sen. Eddie "Ed" P. Mayne
Sen. Michael G. Waddoups
Sen. Blaze D. Wharton
Rep. Gerry A. Adair
Rep. Eli H. Anderson
Rep. Patrice M. Arent
Rep. Steven Barth
Rep. Afton B. Bradshaw
Rep. Katherine M. Bryson
Rep. Don E. Bush
Rep. Bradley T. Johnson
Rep. Brad King
Rep. Peter C. Knudson Rep. Glenn L. Way
Rep. David L. Zolman, Sr.
Staff Present:
Mary Catherine Perry,
Research Analyst
Patricia Owen, Associate General Counsel
Beverlee LeCheminant,
Legislative Secretary
Note: Names of others present and copies of information distributed at the meeting are on file in the Office of Legislative Research and General Counsel.
1.
Call to Order - Sen. Poulton called the meeting to order at 10:05 a.m.
2.
Committee Business -
MOTION: Rep. Adair moved to approve the minutes of the June 18, 1997 meeting. The motion passed unanimously. Sen. Buhler and Rep. Johnson were absent for the vote.
3. Report on Utah Technical Assistance to Political Subdivisions for Low to Moderate Income Housing Program - Mr. Kerry Bate, Housing Development Manager, Department of Community and Economic Development, discussed current housing programs administered by the
Division of Community Development emphasizing the Olene Walker Housing Fund and distributed
a report from the Olene Walker Housing Fund.
Mr. D. J. Baxter, Bear West, distributed an inventory of statewide subsidized affordable
housing units and an example of a local housing plan. He then gave an update of HB 295 which
authorized some funding to provide technical assistance to communities in implementing a housing
plan in the next two years. The Department of Community and Economic Development is
developing a manual for communities to help them assess their affordable housing needs. The
department's vision of the manual is to have three primary components: 1) a needs analysis; 2) a
review of barriers or incentives; and 3) some financial assistance. The manual is in the drafting stage
and in September and October, the department will be conducting 25 meetings statewide with
different communities to help walk the communities through the process of assessing affordable
housing needs .
4. Demand Drafts for Banks - Mr. Howard Headlee, Utah Banker's Association (Association), introduced Mr. Kade Peterson, Cashier, Zion's First National Bank.
Mr. Peterson distributed a payment systems description and a draft bill "Uniform
Commercial Code Demand Drafts." He gave a brief overview of what demand drafts are and how
they contrast from other mechanisms in the payment system. He indicated that a demand draft is a
piece of paper with an account number and a bank routing number on it, but that does not have the
person's signature who is paying the draft. Demand drafts, in most cases, give authorization to the
person who is creating the draft so that he or she is authorized to forward it to their bank without the
signature on it. Mr. Peterson stated that to make depositary banks and their customers responsible
for unauthorized demand drafts that consumers find in their statements, the Association would
recommend amending the transfer and presentment warranties that depositaries and their customers
must follow. The Association would also like to suggest having some reciprocity language between
states.
Sen. Hillyard said that his concern is that consumers are being taken advantage of and when
they go to the banks for help, the banks cannot help them. This bill gives the power to the local
banks to protect their consumers.
Mr. Headlee indicated that the Utah Banker's Association working with Sen. Hillyard would
like to bring language back to the committee in the form of a bill for its review at its October
meeting that would establish demand drafts in statute and clarifying that the return deadline would
be 60 days.
MOTION: Rep. Bush moved to have staff draft a bill establishing demand drafts in statute and clarifying that the return deadline would be 60 days. The motion passed unanimously with Rep.
Zolman voted in the negative. Sen. Buhler and Rep. Johnson were absent for the vote.
5. Master Deeds of Trust - Ms. Mary Catherine Perry, Research Analyst, distributed an overview on deeds of trust. She explained the definition, contents, and current filing process of trust
deeds.
Sen. Hillyard told the committee that giving banks the authority to create master deeds of
trust for filing with county recorders' offices would reduce the amount of paper work to be recorded,
reduce the costs of closings, and give the customer the documents they need.
Mr. Headlee said this would not only save fees to consumers, but it would save disc space
in the recorder's office.
Ms. Karen Fritz, Wells Fargo Bank, indicated that in six other states banks have the authority
to create master deeds of trust and the system works well. The customer gets a full copy of the deed
of trust with all the provisions and a copy of the short form which goes on record.
Ms. Nancy Workman, Salt Lake County Recorder, stated that she supports the proposal, but
indicated that it might impact some of the small counties that have a revenue problem.
Mr. Alan Spriggs, Summit County Recorder, stated that Summit County supports the proposal, but they would like to make sure that the concept of a blanket trust deed is not extended
into areas where there could be problems. He suggested that if the proposal is made into a bill, that
language be included that specifically states that reference to a previously recorded document is not
allowed for the purpose of a legal description.
Mr. Reed Hatch, Sanpete County Recorder, said that his concern is the adverse revenue
impact this proposal would have on small counties.
MOTION: Rep. Adair moved to have staff prepare a bill on this issue, taking into consideration the small counties. The motion passed unanimously. Reps. Barth and Johnson were
absent for the vote
Sen Poulton informed the committee members and the public that agenda item #7 Resolution
Opposing Siting of High Level Nuclear Waste in Skull Valley, would not be discussed at this
meeting. He indicated that copies of Rep. Becker's draft legislation on this issue were available at
the meeting.
6. Whistleblower Statutes - Ms. Mary Catherine Perry, Research Analyst, distributed an overview of whistleblowing statutes. She outlined the relevant concepts, the Utah statutory
protections for public and private sectors, what other states have done, and the options the committee
has.
Rep. Bradshaw pointed out that this issue involves employee protection related to
whistleblowing in the public and private sectors and introduced Mr. John Preston Creer, one of her
constituents, to speak to the issue.
Mr. Creer pointed out that about 75% of the states and the federal government have
whistleblowing laws. Concerning Utah Mr. Creer explained the following. Section 67-20-21 of the
Utah Code protects public employees that bring forward problems affecting someone violating a law.
As for private employees, the Utah Supreme Court has said that if the person reports a violation to
the public and it affects the public interest, then that person has some safety. If the reporting is done
internally and the violation does not affect the public outside the walls of the work place, the person
may not be protected. He said that it is prudent for the state to consider having a law that prohibits
discrimination against someone who blows the whistle publicly or privately and without malice in
the corporation. He urged the committee to consider redrafting Title 67, Chapter 21, with regard to
public bodies and public employees to include all employees, or to make a separate provision for
whistleblowers who report violations that affect the public's health and welfare.
Ms. Bozena C. Fox gave testimony of being a whistleblower and said that whistleblowers
are getting a bad name for doing the right thing.
Ms. Betsy Ross, State Auditor's Office, distributed some information about the
whistleblower statute. She informed the committee that she has done a survey of whistleblower
statutes nationwide and the results are that some states have statutes protecting private employees,
some protect public employees, and some protect both public and private employees. Many of the
states that have statutes protecting private employees limit the coverage which relates back to the
goal of the whistleblower statute which is to encourage those at the working level to report activities
that the state has an interest in preventing. She stated that with regard to the public sector, she has
reviewed the statutes listed on the survey and presented the following common provisions for the
committee to consider: 1) report to whom; 2) report what; 3) form of report/qualifications; 4) where
action brought; and 5) damages allowed.
Ms. Ross suggested three options the committee could consider with regard to the
whistleblower statute: 1) to keep the statute the way it is; 2) to add in a statute protecting private
employees in some form; or 3) to have a single act protecting both private and public employees.
She also suggested changing a provision involving the State Auditor's Office.
MOTION: Sen. Mayne moved to have staff draft a bill pertaining to both public and private statutes and that the committee continue the discussion of this issue as the first agenda item at the
next interim meeting.
Mr. Larry Bunkall, President, Utah Manufacturers Association (Association), indicated that
the Association supports the concept of protecting public safety and health, but without a bill to look
at, it would have a difficult time pointing out specific concerns.
SUBSTITUTE MOTION: Sen. Buhler moved that the committee continue its discussion on this issue during the August interim meeting and leave it to the sponsor as to whether to have a
bill drafted before the August meeting. The motion passed unanimously. Reps Barth and Way were
absent for the vote.
7.
Adjourn
MOTION: Rep. Adair moved to adjourn the meeting at 11:42 a.m. The motion passed unanimously. Reps. Barth and Way were absent for the vote.
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