C.L. "Butch"
Otter
Governor
Lawerence
Denney
Secretary of
State
Lawrence
Wasden
Attorney
General
Brandon D
D Woolf
State
Controller,
Secretary
SCO > Board of Examiners > Board of Examiners Minutes
MINUTES
STATE BOARD OF EXAMINERS
February 13, 2001 – 8:45 a.m.
JRW East Conference Room

Members Attending:
      Governor Dirk Kempthorne, Chairman of the Board
      Secretary of State Pete Cenarrusa
      Attorney General Al Lance
      State Controller and Secretary of the Board J. D. Williams

Sub-Committee Members Attending:
      Brian Whitlock, Office of Governor
      David Tolman, Office of Governor
      Chuck Goodenough, Office of Secretary of State
      David High, Office of Attorney General
      Keith Johnson, Office of State Controller

Visitors Attending:
      Dr. Richard L. Bowen, President, Idaho State University
      Marty Peterson, University of Idaho
      Keith Hasselquist, State Board of Education

CONSENT AGENDA
    STATE CONTROLLER’S OFFICE

1. The Sub-Committee members recommend approval of the attached proposed amendment to the State Moving Policy, XIII. Real Estate Expenses, A. Relocation Services. Report on request for modification of the State Moving Policy, Appendix A, non-qualified moving Expenses (Taxable) to remove relocation services from the taxable status and be placed within the non-taxable portion of the policy. This request was submitted by the Department of Transportation at the November 8, 2000 Sub-Committee meeting and a private letter ruling was requested from IRS. A committee from the State Tax Commission, Department of Transportation and State Controller’s Office submitted the attached proposed amendment to the State Moving Policy.

2. The Sub-Committee members encourage the State Controller’s Office to implement a program to come into compliance with the IRS policy by July 1, 2001. Report on issue of taxation of same day meal reimbursements for state employees. The same day meal reimbursement is when an employee travels outside of their home area, but does not incur an overnight stay. The IRS considers same day meal reimbursement received by a state employee to be taxable. The State Tax Commission received a letter from IRS offering to repay the state for its employees’ untaxed meal reimbursements.


3. STATE APPELLATE PUBLIC DEFENDER
    Request for authorization to pay the following employees compensatory time which is based on an 80 hour pay period instead of a 40 hour work week on pay period #22, which ended October 14, 2000.

          Rosanne Dapauski – 6 hours
          Patty Fenwick - 6 hours
          Charles W. Adams – 8 hours


4. STATE TREASURER
    Request for approval to increase the State Treasurer’s annual investment fee to be charged to state agencies for the remainder of fiscal year 2001. The investment administration fee will be 0.035% (.00035) of the average daily balance, including separate investments, if any, of that fund or account. This is a small increase from the current rate of 0.027% (.00027).

    UNIVERSITY OF IDAHO

5. Request for authorization to reimburse moving expenses of up to $6,000 for Dr. W. Mack Thompson who has been hired as assistant professor of Plant, Soil, and Entomological Sciences in the College of Agriculture, effective January 16, 2001, from Fort Collins, Colorado to Parma, Idaho.

6. Request for authorization to reimburse moving expenses of up to $10,000 for Daniel Smith who has been hired as the Director of the Center of Business Development and Research in the College of Business and Economics, effective July 1, 2001, from Downington, Pennsylvania to Moscow, Idaho.

7. Request for authorization to reimburse moving expenses of up to $10,000 for Raul Sanchez, who has been hired as Special Assistant to the President for Diversity and Human Rights, effective July 1, 2001, from Castle Hills, Texas to Moscow, Idaho.


8. DEPARTMENT OF AGRICULTURE
    Request for authorization for deficiency warrant spending authority for the following items, with spending authority to carry forward from Fiscal Year 2001 to 2002:
          Grasshopper/Mormon Cricket Control Program $150,000
          Survey Programs for Pests and Diseases $ 70,000

    DEPARTMENT OF FISH AND GAME

9. Request for authorization to reduce the vendor accounting records for Ruark’s Sporting Goods Vendor #2669 in the amount of $2,546.97 in order to accept a settlement offer.

10. Request for authorization to extend time period for one year for reimbursing realtor fees for Bruce Penske to sell his home in Idaho Falls. Mr. Penske transferred from Island Park to Rexburg on October 3, 1999 and his house has been actively on the market since that time, and is now listed at a reduced price.

11. Request for authorization to pay 32.0 hours compensatory time to Don Anderson who recently retired. Mr. Anderson completed paperwork to take the comp time off but office support staff responsible for entering the time into the payroll believed the comp time would be automatically paid off.


12. PUBLIC EMPLOYEE RETIREMENT SYSTEM
    Request for authorization to lift the vacation caps until the end of FY 2001 (June 30, 2001) for Barbara Weirick, Financial Unit Supervisor and James Monroe, Financial Officer, who are essential to the successful development and implementation of the new PERSI membership system and the Gain sharing Program.

    DEPARTMENT OF PARKS AND RECREATION

13. Request for authorization to reimburse $542.67 additional moving expenses in excess of $5,000 for Aaron Boston, Staff Engineer. The department negotiated employment with Mr. Boston before the new Moving Policy was approved, which requires Sub-Committee approval of moving reimbursement up to $5,000 and Board of Examiners approval for over $5,000.

14. Request for authorization to reimburse moving expenses to exceed $5,000 for a new director. The current director has announced her resignation and the department would like to offer moving reimbursement as part of their recruitment efforts.

15. Request for authorization to sell a gasoline pump, card reader and printer back to the vendor, Dale’s Service Inc. in Boise. It was the department’s intention that customers could buy gasoline for their boats any time without an IDPR employee being present, however the State Fire Marshall said they could not sell gasoline at the Springs Shores Marina at Lucky Peak without a trained employee being present. The pump, card reader and printer have been advertised for sale to other state agencies and received no interest. Dale’s Service, Inc. has shown some interest in purchasing the pump, card reader and printer and the department estimates they will receive about $2,200.


16. DIVISION OF VETERANS SERVICES
    Request for authorization to sell a special chair to a former employee with a back problem. The division purchased the chair for an employee who resigned her position shortly after the purchase.


IDAHO STATE POLICE

17. Request for authorization to grant an exception to the “Guidelines and Procedures for Disposal of State Surplus Property” by exchanging approximately 60 weapons assigned to the Peace Officers Standards and Training (POST) Academy for 15 –20 new Glock weapons to be used for training.

18. Request for authorization to pay accumulated compensatory hours for the following employees: Lt. Steve Richardson heads the Executive protection detail at the capitol. Lt. Rob Storm overtime was associated with the immediate response to the murder of two Jerome County Deputies and the POST Training Specialists’ overtime is the result of a continuing disability of one of their colleagues and the high number of POST Academy class candidate.
          Lt. Steve Richardson 90.0 hours
          Lt. Rob Storm 29.0 hours
          Doug Graves, POST Training Specialist 73.0 hours
          John Turnbull, POST Training Specialist 72.5 hours
          John Parmann, POST Training Specialist 56.0 hours

19. Request for authorization to extend time period until December 31, 2001 for reimbursing moving expenses for Detective Sergeant Gary Kaufman. Sgt. Kaufman’s spouse is seeking employment in the Twin Falls area but has little likelihood of securing anything before July 1, and he is scheduled to attend a Staff Command School this summer.

    DEPARTMENT OF TRANSPORTATION

20. The Sub-Committee members recommend that the SCO form a committee of other state agencies to review the entire State Moving Policy for possible amendments. Request for two amendments to the State of Idaho Moving Policy as follows: The Transportation Department conducted a study of housing relocation benefits and the changes were determined necessary to maintain a housing relocation program that was fair to employees, would allow employees to accept transfers to less desirable locations and yet remain cost effective to the department.
      Section X111.A.2 - eliminate the 90-day requirement to sell their home before they are eligible to request housing relocation services.

      Section X11.A - be expanded to include manufactured homes when they are the primary residence of an employee.

    BUREAU OF HAZARDOUS MATERIALS
21. Incident 2000-2167 – Request for authorization to issue deficiency warrants in the amount of $8,899.16 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at 520 Albany, Caldwell, Canyon County, Idaho involving an ammonia spill on June 27, 2000, pursuant to Idaho Code §39-7110.

22. Incident 2000-2385 – Request for authorization to issue deficiency warrants in the amount of $2,052.41 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Nez Perce, Idaho on July 14, 2000, pursuant to Idaho Code §39-7110.

23. Incident 2000-2893 – Request for authorization to issue deficiency warrants in the amount of $1,019.43 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at Eagle Creek, Nez Perce County, Idaho involving a fuel spill from an airplane crash on August 11, 2000, pursuant to Idaho Code §39-7110.

24. Incident 2000-2967 – Request for authorization to issue deficiency warrants in the amount of $126.15 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at 7th & Mullan, Coeur d’Alene, Kootenai County, Idaho involving a fuel spill on August 15, 2000, pursuant to Idaho Code §39-7110.

25. Incident 2000-2877 – Request for authorization to issue deficiency warrants in the amount of $1,628.89 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Viola, Idaho on July 14, 2000, pursuant to Idaho Code §39-7110.

26. Incident 2000-3533 – Request for authorization to issue deficiency warrants in the amount of $799.07 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Moyie Springs, Idaho on September 19, 2000, pursuant to Idaho Code §39-7110.

27. Incident 2000-3774 – Request for authorization to issue deficiency warrants in the amount of $491.93 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Boise, Idaho on October 6, 2000, pursuant to Idaho Code §39-7110.

28. Incident 2000-3739 – Request for authorization to issue deficiency warrants in the amount of $2,649.34 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Preston, Idaho on October 2, 2000, pursuant to Idaho Code §39-7110.

29. Incident 2000-3959 – Request for authorization to issue deficiency warrants in the amount of $1,746.49 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Pocatello, Idaho on October 18, 2000, pursuant to Idaho Code §39-7110.

30. Incident 2000-4139 – Request for authorization to issue deficiency warrants in the amount of $1,571.04 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Pocatello, Idaho on November 2, 2000, pursuant to Idaho Code §39-7110.

31. Incident 2000-4049 – Request for authorization to issue deficiency warrants in the amount of $1,156.19 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Fernwood, Idaho on October 28, 2000, pursuant to Idaho Code §39-7110.

32. Incident 2000-4228 – Request for authorization to issue deficiency warrants in the amount of $1,469.64 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Chubbuck, Idaho on November 8, 2000, pursuant to Idaho Code §39-7110.

33. Incident 2000-3835 – Request for authorization to issue deficiency warrants in the amount of $271.45 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Boise, Idaho on October 10, 2000, pursuant to Idaho Code §39-7110.

34. Incident 2000-3877 – Request for authorization to issue deficiency warrants in the amount of $357.66 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Boise, Idaho on October 13, 2000, pursuant to Idaho Code §39-7110.

35. Incident 2000-3980 – Request for authorization to issue deficiency warrants in the amount of $631.85 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Chubbuck, Idaho on October 20, 2000, pursuant to Idaho Code §39-7110.

36. Incident 2000-4206 – Request for authorization to issue deficiency warrants in the amount of $302.12 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Boise, Idaho on November 7, 2000, pursuant to Idaho Code §39-7110.

37. Incident 2000-4048 – Request for authorization to issue deficiency warrants in the amount of $124.71 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Rose Lake, Idaho on October 25, 2000, pursuant to Idaho Code §39-7110.

38. Incident 2000-4202 – Request for authorization to issue deficiency warrants in the amount of $35.68 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at 3900 block development, Boise, Ada County, Idaho involving dumping of car batteries on November 6, 2000, pursuant to Idaho Code §39-7110.


39. MILITARY DIVISION
    Request for approval of National Guard Reimbursement billing for Compensation and Medical payments in the amount of $4,796.23 for the period October 1 through December 31, 2000, pursuant to Idaho Code §72-928.


40. DEPARTMENT OF TRANSPORTATION
    Request for approval of Recognition of Assignment as executed by Assignor Boise Paving and Asphalt Company of Boise, Idaho and Assignee Reliance Insurance Company, Auburn, Washington, for US-95, SCL to NCL Riggins – Idaho Federal Aid Project, No. NH-F-4113 (085), pursuant to Idaho Code §67-1027.
    OFFICE OF ATTORNEY GENERAL

41. Notification that Blake G. Hall of the firm of Anderson, Nelson, Hall & Smith has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho and the Idaho State Insurance Fund (“Fund”) regarding the Trial Subpoena Duces Tecum of Francis Adams, an employee of the Fund, in the Karlson, et al. v. Harris, et al., Case Nos. CV-PI-98-00041 and CV-OC-98-00924 State File No. L98-0216-002, pursuant to Idaho Code §67-1409.

42. Notification that Michael C. Moore of the firm of Moore, Smith, Buxton & Turcke has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in legislation related to remediation of Coeur d’Alene Basin, pursuant to Idaho Code §67-1409.

43. Notification that M. Michael Sasser of the firm of Hamlin & Sasser has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in the Hanson, et al. v. State of Idaho, Dep’t of Health and Welfare, CV-PL-99-00558D, pursuant to Idaho Code §67-1409.

44. Notification that M. Michael Sasser of the firm of Hamlin & Sasser has been appointed as a special deputy attorney general for the purpose of representing Defendant Yae in the Wright v. State of Idaho, State of Idaho Dep’t of Correction, et al., and Mallonee v. State of Idaho, Idaho Dep’t of Correction, et al., pursuant to Idaho Code §67-1409.

46. Notification that Anne Goodwin Crump of the firm of Fletcher, Heald & Hildreth in Arlington, Virginia, has been appointed as a special deputy attorney general for the purpose of providing Idaho Public Television with legal interpretations of existing Federal Communication Commission regulations related to lawful uses of broadcast channels licensed to the State of Idaho, pursuant to Idaho Code §67-1409.

47. Notification that Cynthia J. Larsen of the firm of Orrick, Herrington & Sutcliffe, LLP, has been appointed as a special deputy attorney general for the purpose of assisting the OAG in the preparation of a complaint against the United States Fish and Wildlife Service for its proposed introduction of the grizzly bear into the State of Idaho, pursuant to Idaho Code §67-1409.

48. Notification that Col. James A. Bevis of the firm of Bevis, Cameron & Johnson has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho, Military Division in matters as follows, pursuant to Idaho Code §67-1409.
      1. Negotiation and execution of state and federal agreements for facilities construction;
      2. Execution of certificates of title to lands owned by the Military Division; and
      3. Certifying the validity of the execution of agreements by the Adjutant General on behalf of the Military Division.



INFORMATIONAL AGENDA

49. STATE BOARD OF EDUCATION
    Report of moving reimbursement for Boise State University, Idaho State University, University of Idaho and Lewis-Clark State College during calendar year 2000 in compliance with the State of Idaho Moving Policy.

    STATE INSURANCE FUND

50. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of December 2000.
      Estimated expenditure for workers $10,000,000.00
      compensation claim costs, dividends
      and premium refunds
      Funds Expended in November 2000:

      Workers Compensation Claim Costs $ 5,646,710.39
      Dividend 1,990.36
      Commissions -0-
      Policy Refunds 162,199.92
      Total $ 5,810,900.67


61. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight draft or the month of December 2000.

      Estimated expenditures for $750,000.00
      Petroleum Storage Tank Fund
      Fund expended in November 2000:

      Payroll $ 53,409.41
      Operations 13,154.82
      Claim Costs 255,630.30
      Total $322,194.53


62. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of January 2001.
      Estimated expenditure for workers $10,000,000.00
      compensation claim costs, dividends
      and premium refunds
      Funds Expended in December 2000:

      Workers Compensation Claim Costs $ 6,783,197.10
      Dividend 1,071.09
      Commissions 1,220,593.70
      Policy Refunds 117,925.33
      Total $ 8,122,787.22

63. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight draft or the month of January 2001.

      Estimated expenditures for $750,000.00
      Petroleum Storage Tank Fund
      Fund expended in December 2000:

      Payroll $ 53,354.31
      Operations 18,740.56
      Claim Costs 199,623.27
      Total $271,718.14



State Controller: Governor, we have a rather lengthy agenda today. There are 47 items on the Consent Agenda, which have been reviewed by the Board’s Sub-Committee and are recommended that they be approved. There is one Regular Agenda item for moving reimbursement policy with a presentation by Dr. Bowen from ISU.

Governor: Thank you very much. Any discussion? Mr. Secretary.

Secretary of State: I will move the Consent Agenda, except for the one item on the Regular Agenda.

Governor: It has been moved. Seconded?

Attorney General: Second.

Governor: Moved and seconded. Further discussion? Those in favor please say aye.

Aye: Governor
      Secretary of State
      Attorney General

Opposed, nay. The ayes have it. So carried. We now have before us the issue of the relocation moving policy expenses. Controller.



REGULAR AGENDA

64. MOVING REIMBURSEMENT FOR UNIVERSITIES - Dr. Richard L. Bowen, President, Idaho State University

State Controller: Governor, as you know, in the past the Board has raised some questions on moving expenses that are being paid by the universities in the recruitment process for new personnel. At your request we have invited Dr. Bowen from Idaho State University, and Marty Peterson is here also representing the University of Idaho, if there are inquiries of him. But I believe Dr. Bowen is prepared to make a short presentation.

Governor: Thank you. Dr. Bowen, if you would join us here. Welcome.

Dr. Richard Bowen: Thank you. Good morning to you all. I have never appeared before this group before, and I am finding this all new and interesting. I appreciate the opportunity to appear. I am this year’s chair of the University and College State Institution of Friends and Counsel, and I am here on behalf of the Friends and Counsel to request some authority on behalf of the presidents to make exceptions to the general limit of $5,000 on moving expenses. For the most part the $5,000 limit, the way you have set it up now, where we can get advanced permission for positions is not burdensome. You are going to work today, I think, on a list of nearly 50 open positions at Idaho State University where we will be asking for permission to grant moving expenses, and, of course, they are limited to the $5,000 figure. You approved such a list for Boise State, I think, in December. From time to time, however, a university president will be in a situation where the president is trying to recruit a particularly attractive candidate from some place throughout the area, and sometimes they are not even in the United States. In the case of Idaho State University right now, not included in this list, we have experienced the turnover in three deanships at the end of this year, and we will be coming to the situation where we are trying to recruit these, and we will be recruiting probably in the area of $140,000 or $150,000 salary. We have in the system employees at that level at different times. There are not very many, and for that reason, we feel that our request for authority to exempt subject to accountability to whomever is the reasonable one for us to request. When you are negotiating with someone and someone else is also negotiating with the same person to attract him to a position, it is better if we can say, yes, there are moving expenses instead of, well, I think we can pay moving expenses but it will take me awhile to find out. It is an authority we would use sparingly. We already are subject to a $10,000 limitation by the State Board of Education. Above $10,000 we have to get special permission from the State Board of Education. So, gentlemen, that summarizes what I am here to request. I suppose we could talk about the accountability factor, but we would appreciate the opportunity from time to time to make these exemptions and then to face whomever we have to face to justify it.

Governor: Okay. General.

Attorney General: Governor, Dr. Bowen, good to see you again. The bidding war that I would anticipate, Dr. Bowen, that would give us some concern would be you and BSU, or University of Idaho, trying to recruit the same individual and using this pot of money for moving expenses basically to try to attract - you understand what I am saying. And also having been involved in negotiations I can appreciate the other side of it, the question relative to having some authority that you know you have in your pocket, so that you can make the offer and be assured that it is not going to be undercut by us or anybody else. An annualized authority of X number of dollars – would that serve the purpose that you have addressed here?

Dr. Richard Bowen: Depending upon the adequacy of the number of dollars, I think that it probably would. We have not thought about it in that context so I can’t just tell you what level of money we would need to have, but that kind of authority would be attractive to me if it was an adequate supply of money.

Attorney General: The downside from where we sit is how to divide that pot up, so if we preauthorize X number of dollars for incentive moving expenses and so forth, I suspect that you as the head of your institution, and others would have a different formula as to who ought to get what percentage of the pie. We would very much like to stay out of that conversation.

Dr. Richard Bowen: I can’t remember a time when we have been in a tight contest with another institution in the state to hire the same individual. We are pretty much in our specialty areas different. The State Board of Education nearly 20 years ago set missions and assignments to the various institutions and in our areas of high price specialization generally we are in quite different areas. For example, the dean that I am probably going to have to find more than $140,000 to hire is in pharmacy. No one else hires a pharmacist. I think the most highly paid dean in the state right now is engineering at the University of Idaho, I am not sure about that, but the University of Idaho has a lead mission and we would never be paying an engineering dean that kind of money. I am very interested to hear your concern and will spend some time on it. I have never encountered that kind of situation. Again, going back to accountability, we are all very appreciative of the authority and the power of the State Board of Education over us. We would all do anything we can to avoid their punishing power, and they have plenty of it. I think we would all rather be held accountable for the exceptions we make and be forced to explain why we did it, and then be held accountable for our decision. We have quite a bit of independent jurisdiction now. These are very large organizations. Idaho State University spends well over $200 million a year and I, of course, have control over that in accordance with the law and rules of the State Board of Education.

Governor: Further discussion?

Attorney General: Just so you know, Dr. Bowen, what brought this to our attention was the fact that this was being utilized without securing in exchange for this any contract that had any longevity to it. We were paying people to move to Idaho large sums of money in terms of moving expenses, and then there was no assurance they were going to be here for two years or a year, or anything of that nature. So the contracts out of this were really lax and that is what got our attention a couple years ago. If you wouldn’t mind, if you could talk to your colleagues, and possibly Dave High or others designated by the Board, to come up with a preauthorized number that would be distributed in some equitable fashion between the presidents, I would feel more comfortable doing that than getting into the spiraling and escalating bidding war.

Dr. Richard Bowen: We would be very happy to talk about it and make suggestions to you.

Governor: General, is that a recommendation?

Attorney General: Yes, sir.

Governor: Dr. Bowen, if you would have that discussion with the other university and college presidents. The outcome, General, that you are suggesting?

Attorney General: At the beginning of the year, Governor, fiscal or calendar, whichever, we would preauthorize X number of dollars to be used in contract incentives for the colleges and universities that they would probably utilize in terms of moving expenses. I would prefer to be able to do it as a lump sum so we don’t have to get into the fight between BSU, U. of I., and ISU, but if they can come to some sort of a consensus as to the percentage breakdown of those incentives between themselves, then we can stay out of that war and just preauthorize X number of dollars and then confirm it, staying within the guidelines.

Dr. Richard Bowen: We would be happy to discuss that and recommend a figure to you.

Governor: And then that would be subject to adjustment in the course of the year, if you would need it.

Dr. Richard Bowen: And in the course of years as there are inflations and deflations and so forth, I presume this would be a moving figure, to be renewed annually.

State Controller: One question for Dr. Bowen, since we don’t get a chance to have folks like you here very often. The limit that the Board here has established is $5,000 and you need approval. The State Board of Education has established $10,000. Is that high enough, the $10,000, or do you periodically have to exceed that in your negotiations?

Dr. Richard Bowen: The $10,000 is generally plenty but from time to time it does need to be exceeded, particularly as we are getting more and more sophisticated in the areas of science, engineering and so forth. These people are world citizens and if you are trying to hire someone from Germany or some place like that, it costs a lot of money to bring them.

Governor: Any other discussion? Dr. Bowen, we thank you and appreciate you being here, and all the work that you and the presidents are doing. Is there anything else to come before the Board of Examiners? If not, we stand adjourned.


WHEREUPON THE MEETING OF THE STATE BOARD OF EXAMINERS was adjourned, subject to the call of the Chairman.

                                _____________________________
                                Governor Dirk Kempthorne
                                Chairman of the Board
______________________________
J. D. Williams, Secretary to the Board
and State Controller


PROPOSED AMENDMENT TO STATE MOVING POLICY
February 13, 2001




XIII. Real Estate Expense
    A. Relocation Services
      Agencies may enter into “amended value sale” agreements that provide State reimbursed employee Home Relocation Services. The program objective is to facilitate home reimbursement to certain personnel who wish to take advantage of the Home Purchase Program. The employees selected for relocation assistance will be those the agency determines to be in the best interest of the State without which the agency would be unable to staff positions with the most qualified personnel.
      1. Any agreement between an employee and the state for the sale of an employee’s home must specify whether costs paid by the state will be considered taxable income to the employee.

        a. Only certain costs incurred before the relocation services company takes the home into inventory will be taxable to the employee. Costs incurred after the relocation agency takes the home into inventory are beyond the control of the employee and therefore not taxable to the employee.
        b. The general rule is that pre-inventory costs paid by the employer, which are normally paid by the seller in a typical home sale transaction, will be considered taxable income to the employee. Such costs include by way of example brokerage fees, seller’s title insurance fees, discount points, up to two appraisal fees, prepaid fees such as taxes, utilities, garbage and water, as well as reconveyance fees, seller’s filing fees and home inspection fees.
        2. The State will contract with a relocation firm that specializes in such services after competitive bidding with other interested organizations. It is intended that the employees make no financial gain from the program. Reimbursements will be limited to fair market values using standard appraisals.

        3. The services will involve only the eligible employee’s principal residence on lots of the size of those typical to the neighborhood. The employee will give evidence of attempting to sell his home for 90 days before requesting relocation services.

        4. If the home remains unsold after the 90-day offering period, the relocation company can make an offer to purchase the home from the employee at 97% of the appraised value. The appraised value is determined by averaging two independent appraisals of the home. The employee is free to accept or reject the relocation company offer, if the employee rejects the relocation offer, he is no longer entitled to participation in the relocation program. The employee will nevertheless be taxed on the typical seller’s costs (as defined above) which were paid by the State prior to the employee’s rejection of the relocation company offer.
          5. State reimbursed services will not be paid which involve: income producing properties, vacation homes, vacant land and residences requiring major structural or environmental repairs and any residences which exceed $300,000 in appraised value.


      APPENDIX A

      Non-Qualified Moving Expenses
        3. Relocation Services (as prescribed by XIII. Real Estate Expense A. Relocation Services
      Page last updated on 07/12/2006 02:16:02 PM