changed to allow the Governor to appoint Council members and the Legislature to approve them.
By doing this, the Legislature would have a stronger part in the Council.
Ms. Suzanne Winters, Ph.D., distributed a pamphlet regarding a science symposium
"Learning from the Land" that the Council is co-hosting with the Bureau of Land Management and
discussed the Council's work related to the Escalante Staircase Monument.
4. Whistleblower Protections - Rep. Afton Bradshaw reminded the committee that this issue has been discussed at the last two interim meetings and that a motion was made to prepare legislation
creating a task force to study whistleblower laws. She explained the intent of the proposed
legislation.
Committee discussion followed.
Mr. Larry Bunkall, President, Utah Manufacturers Association, said he hopes that there will
be some consideration of having more than one member on the task force representing employer
interests.
MOTION: Rep. Arent moved to pass the "Task Force on Whistleblower Protections" legislation out as a committee bill. The motion passed. Sen. Waddoups voted against the motion.
Sen. Mayne and Reps. Barth and King were absent for the vote.
5. Demand Drafts - Sen. Lyle Hillyard explained to the committee that a demand draft is a writing not signed by a customer that is created by a third party under the authority of the customer
for the purpose of charging the customer's account with a bank. He indicated that the "Demand
Drafts - Uniform Commercial Code" legislation that was mailed to the committee gives customers
the same power with a demand draft as it does with a check.
Mr. Kade Peterson, Cashier, Zion's First National Bank, said that this legislation would make it possible for customers to receive their statements and review them to see if the demand draft
charges are legitimate. This would give the customer's bank the chance to return the demand draft
to the bank where it was deposited.
Committee discussion followed.
MOTION: Rep. Zolman moved to pass the "Demand Drafts - Uniform Commercial Code" legislation out as a committee bill. The motion passed unanimously. Sen. Mayne and Reps.
Bradshaw, King, and Johnson were absent for the vote.
6. Master Mortgage or Deeds of Trust - Sen. Lyle Hillyard explained that giving banks the authority to create master deeds of trust for filing with the county recorder's office would: 1) reduce
the amount of paper work to be recorded; 2) reduce the cost of closings on the sale of real property;
and 3) give customers the document they need. One of the concerns that was discussed during the
July interim meeting was the potential loss of revenue for smaller counties. Sen. Hillyard stated that
this concern has been worked out.
Sen. Hillyard proposed the following amendment to the bill: Page 4, after line 18, insert
"Nothing in this part modifies the law regarding the effectiveness of a mortgage, trust deed, or contract as between: (a) the mortgagor and mortgagee of the mortgage; or (b) the trustor, beneficiary, and trustee under a trust deed." He indicated that the amendment makes it clear that a master mortgage or deed of trust will not affect the rights of the person who actually signed the instrument.
MOTION: Rep. Arent moved to accept the amendment to the "Master Deeds of Trust or Mortgages" bill. The motion passed unanimously. Sen. Mayne and Rep. Johnson were absent for
the vote.
MOTION: Sen. Wharton moved to pass the "Master Deeds of Trust or Mortgages" legislation out as a committee bill. The motion passed unanimously. Sen. Mayne and Reps. Adair,
Johnson, and King were absent for the vote.
7. Insurance Law Changes - Sen. Poulton informed the committee that the "Insurance Law Changes" bill that was mailed to them is a bill that the Insurance Department presents to the
Legislature to update the statute regarding insurance laws.
Deputy Commissioner Neil Gooch, Department of Insurance, indicated that there are two
substantive changes in the proposed bill as well as some technical and stylistic changes. One change
deals with the notice that an individual receives when a replacement policy is returned. That time
period has been increased from 10 days to 20 days, which will make that time period in line with
other states. The other change addresses the residency requirements of the comprehensive health
insurance pool.
MOTION: Sen. Waddoups moved to pass the "Insurance Law Changes" legislation out as a committee bill. The motion passed unanimously. Sen. Mayne and Reps. Bradshaw, King, and
Johnson were absent for the vote.
8. Substance Abuse Prevention, Enforcement, and Treatment Funding - Rep. Nora Stephens reminded the committee that a study group was organized in June to study substance abuse
prevention, enforcement, and treatment funding. She indicated that the study group has had several
meetings and the outcome of those meetings is draft legislation titled "Substance Abuse Prevention,
Enforcement, and Treatment Funding." She distributed copies of the draft legislation and explained
the intent of the legislation.
Mr. Ferris Groll, Department of Public Safety, spoke in support of the bill.
Mr. Richard Schwermer, Administrative Office of the Courts, spoke in support of the bill.
Mr. Patrick Fleming, Director, Utah County Department of Human Services, spoke in
support of the bill.
Committee discussion followed.
MOTION: Rep. Barth moved to go on to the next item on the agenda. The motion passed unanimously. Sen. Mayne and Reps. Adair and Johnson absent for the vote.
9. Limitations on Actions Related to Improvements to Real Property - Ms. Mary Catherine Perry, Research Analyst, distributed an overview of "Limitations on Actions Related to
Improvements in Real Property." She stated that possible legislative options include: 1) do nothing;
2) repeal current statute; 3) extend dates related to length of liability; 4) make express exception for
latent defects; 5) convert all to statute of limitations but make clear the "discoverable rule"; 6) create
a bonding requirement as part of licensing; 7) create an insurance pool; and 8) require the attorney
bringing suit to obtain certificates from three professionals stating that the suit has merit and is not
frivolous.
Mr. Craig Coburn, American Institute of Architects, said there are some constitutional issues
regarding the proposed revisions of the statute.
Mr. Scott Waterfall, attorney from Ogden, and Mr. James Szatkowski spoke to the issue.
Mr. Martin Moore, Weber County surveyor, said he thinks it is important for the committee
to understand that the constitutional issue is attached to the proposed revisions and, until Rep.
Adair's amendment to the statute, did not attach to the statute of limitation provision. Because of
the trigger date for the boundary survey statute of limitations, it has now become a constitutional
issue and is why the design and construction professionals think that the boundary survey issue has
to be treated separately from the design and construction statute where the boundary survey statute
now appears.
Committee discussion followed.
Rep. Adair told the committee that he will have the interested parties meet together to discuss
this issue and will bring recommendations back to the committee.
10. 2002 Olympic Winter Games - Rep. Tanner said he thinks it is time for the Legislature to take counsel from the executive branch of government and look at how to make the Olympics work
for all of the people of the state. He indicated that there are actions being taken on the part of some
legislators to start looking at specific legislation. It would be his plea that they as a Legislature wait
to draft legislation because it would be premature at this point. He indicated that he feels that the
Legislature needs to take a positive approach to the Olympics, and that includes its dealings with the
Salt Lake Organizing Committee for the Olympic Winter Games of 2002 (SLOC). Rep. Tanner said
he feels that with the new appointments that have been made and with the new state coordinator in
place that the legislative body has a responsibility to let SLOC move things ahead and they will see
some positive changes.
Mr. Brian Allred, Research Analyst, presented an overview of the payment of $99 million
for the Winter Sports Park; compensation for state services; and policy considerations of the 2002
Olympic Winter Games. He provided committee members with printed copies of his slide
presentation.
Sen. Myrin commented that the SLOC is in the process of reworking its budget and should
be finished with it in the summer of 1998. He told the committee that he and Rep. Tanner have met
with John Fowler, the new state Olympic coordinator, and are impressed with the abilities and
experience that he brings to the job.
Mr. John Fowler, State Olympic Coordinator, said he appreciates the opportunity to work
as the state Olympic coordinator and agrees with the comments from Rep. Tanner regarding the need
to pull together to make certain that Utah hosts an outstanding 2002 Olympic Winter Games.
Mr. Gordon Crabtree, SLOC, indicated that although the SLOC owes the state $99 million,
the issues raised by SLOC's revenue stream, with 52% of the revenue coming after January 1, 2002,
impacts when SLOC would like to repay the $99 million. Mr. Crabtree also explained that the
SLOC is currently in negotiations with a potential bank sponsor and also a bank who will provide
a line of credit. What the SLOC's expectations are, as it relates to that line of credit, will be the key
in when and how it repays the state, but the bottom line is that the state will be repaid.
Committee discussion followed.
MOTION: Rep. Adair moved to adjourn the meeting at 12:10 p.m. The motion passed unanimously. Sen. Mayne was absent for the vote.