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MINUTES OF THE HOUSE
BUSINESS AND LABOR
STANDING COMMITTEE
Room 405 State Capitol
February 13, 2004


Members Present:    Rep. Katherine M. Bryson, Chair
            Rep. Michael Morley, Vice Chair            
            Rep. J. Stuart Adams            
            Rep. Craig W. Buttars
            Rep. David Clark
            Rep. Stephen D. Clark
            Rep. Carl W. Duckworth
            Rep. Jim Dunnigan
            Rep. Ben C. Ferry
            Rep. Neil A Hansen
            Rep. Todd E. Kiser
            Rep. R. Curt Webb

Members Excused:    Rep. Jackie Biskupski
    
Staff Present:    Mark Steinagel, Policy Analyst            
            Linda Error, Committee Secretary

Note:        List of visitors and a copy of handouts are filed with committee minutes .

Rep. Bryson called the meeting to order at 7:38 a.m.

MOTION:    Rep. Adams moved to approve the minutes of the February 10, 2004 meeting. The motion passed unanimously, with Rep. Buttars, Rep. S. Clark, Rep. Duckworth, Rep. Hansen, and Rep. Morley absent for the vote.

H.B. 251    Radio Frequency Identification - Right to Know Act (Rep. D. Hogue)

MOTION:    Rep. Dunnigan moved to amend the bill as follows:

1.    Page 3, Lines 63 through 64 :    

             63          (6) "Radio frequency identification tag" means a device that is able to transmit
  and collect      

             64      information
  on a microchip       through radio waves.


The motion to amend passed unanimously, with Rep. Buttars, Rep. S. Clark, and Rep. Hansen absent for the vote.

Rep. Hogue explained the bill.

Spoke to the bill:        Jim Olson, Utah Retail Merchants Association

Spoke against the bill:    Tom Bingham, President, Utah Manufactures Association
                Russell Sias, citizen
                Nicole Toomey Davis, President, Enclavix (Handout)

MOTION:    Rep. Hansen moved to pass the bill out favorably as amended.

SUBSTITUTE
MOTION:    Rep. Ferry moved to amend the bill as follows:

1.    Page 1, Line 19 :    

             19          
[[   None   ]]        This bill takes effect on May 5, 2005.      


2.    Page 6, Line 156 :    

             156          (C) that is in print that contrasts with the background against which it appears.
Section 3. Effective date
  This bill takes effect on May 5, 2005.      


The motion to amend passed, with Rep. Adams, Rep. D. Clark, Rep. Dunnigan, and Rep. Kiser voting in opposition and Rep. Morley absent for the vote.

MOTION:    Rep. Hansen moved to pass the bill out favorably. The motion passed, with Rep. Adams, Rep. Buttars, Rep. D. Clark, Rep. Dunnigan, and Rep Kiser voting in opposition and Rep. Morley absent for the vote.

S.B. 132    Utah Construction Trades Licensing Act - Electrical Licensing Amendments (Sen. S. Jenkins)
                
Rep. Jenkins explained the bill, assisted by Brad Stevens, Utah Electrical Coalition.

Spoke for the bill:    Ross Ford, Home Builders Association

MOTION:    Rep. D. Clark moved to pass the bill out favorably. The motion passed unanimously, with Rep. Morley absent for the vote.


H.B. 136    Electronic Filing of Preliminary Lien Documents (Rep. M. Morley)

MOTION:    Rep. Morley moved to delete in title and body H.B. 136 and replace it with 1st Substitute H.B. 136. The motion passed unanimously.

Rep. Morley explained the bill.

Spoke for the bill:        Darrell Bostwick, attorney
                John Young, Utah Subcontractors Council
                Taz Biesinger, Utah Home Builders Association

Spoke against the bill:    Jason VonWeller, Utah League of Cities and Towns
                Shane Inglesby, Geneva Rock Products
                Claire Jaussi, attorney

Spoke to the bill:        Klare Bachman, Utah Department of Commerce

MOTION:    Rep. D. Clark moved to pass the bill out favorably. The motion passed, with Rep. Duckworth, Rep. Dunnigan, and Rep. Webb voting in opposition.

H.B. 160    Mortgage Act Amendments (Rep. W. Harper)

Rep. Hansen moved to amend the bill as follows:

1.    Page 2, Line 32 :    

             32          
[[   61-2d-108, Utah Code Annotated 1953   ]]


2.    Page 5, Lines 120 through 122 :    

             120          
[[   A high-cost mortgage may not include terms under which the outstanding principal

             121      balance will increase at any time over the course of the loan because the regular periodic
             122      payments do not cover the full amount of the interest due.   ]]
  A high cost mortgage shall provide for regular, periodic payments sufficient to pay:

    (a) all accrued interest and a portion of principal on the scheduled due date for each payment; and
    (b) the full amount owed during the term of the loan, if no late fees or other contingent charges are incurred.  


3.    Page 6, Line 159 :    

             159          (1) the offer or sale of any insurance policy, on a single premium
  or single fee      

basis, that insures,



4.    Page 6, Lines 167 through 179 :    

            
[[   167
         Section 8. Section 61-2d-108 is enacted to read:
             168          61-2d-108. Limitations on refinancing.
             169          (1) A lender may not refinance a high-cost mortgage made by that lender or an affiliate
             170      of that lender with another high-cost mortgage during the one-year period beginning on the
             171      date of the consummation of the prior high-cost mortgage.
             172          (2) A mortgage broker may not arrange for the refinancing of a high-cost mortgage
             173      made through the same broker or an affiliate of that broker with another high-cost mortgage
             174      during the one-year period beginning on the date of consummation of the prior high-cost
             175      mortgage.
             176          (3) This section does not apply if the scheduled finance charge for the balance of the
             177      prior existing high-cost mortgage exceeds the scheduled finance charge for the subsequent
             178      high-cost mortgage by an amount greater than the amount of the fees and charges imposed by
             179      the lender for the subsequent mortgage.   ]]

5.    Page 7, Lines 190 through 192 :    

             190          (1) A lender may not recommend or encourage default or nonpayment
  leading to foreclosure       on an existing

             191      loan or other debt prior to and in connection with the closing or planned closing of a high-cost
             192      mortgage that refinances all or any portion of such existing loan or debt.

The motion to amend passed unanimously.

MOTION:    Rep. Hansen moved to pass the bill out favorably as amended.


SUBSTITUTE
MOTION:    Rep. D. Clark moved to amend the bill as follows:

1.    Page 8, Lines 216 through 217 :    

             216          Failure to
[[   provide the notices or information described in Subsection 61-2d-105 (1) and

             217      Sections 61-2d-111 and 61-2d-112   ]]
  comply with any provision under this chapter       does not affect the enforceability of the loan or any of its


The substitute motion to amend passed unanimously.

MOTION:    Rep. Adams moved to pass the bill out favorably as amended. The motion passed unanimously.

H.B. 221    Use of Credit Information for Insurance (Rep. P. Wallace)

Rep. Wallace explained the bill.

Spoke against the bill:    Chris Purcell, State Farm Insurance
                Brian Braddock, Farmers Insurance
                Brian Tibbitts, Utah Insurance Department

MOTION:     Rep. Buttars moved to adjourn the meeting. The motion passed unanimously.

Rep. Bryson adjourned the meeting at 10:00 a.m.








    `                ____________________________
                     Rep. Katherine Bryson, Chair