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
March 13, 2001 – 8:45 a.m.
JRW East Conference Room

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

Member Absent:
      Attorney General Al Lance

Sub-Committee Members Attending:
      Brian Whitlock, Office of Governor
      Ben Ysursa, Office of Secretary of State
      Keith Johnson, Office of State Controller

Visitors Attending:
      State Treasurer Ron Crane
      Laura Steffler, Office of State Treasurer
      Mike Moore, Bond Counsel


CONSENT AGENDA
    DEPARTMENT OF HEALTH AND WELFARE

1. Request for authorization to pay 230 hours compensatory time for Lynne Denne, Program Supervisor of the Medicaid Transportation Unit, accrued as of May 27, 2000, while putting a Medicaid transportation unit up and running by April 1, 2000 after Integrated Transport Management terminated their transportation contract with the department. Lynn’s vacation balance is in excess of 200 hours.

2. Request for authorization to lift the vacation cap until July 1, 2002 for Dan Sola who is the lead worker responsible for testing, training and implementation of the new Billing and Receipting System (BARS) scheduled for production in July 2001. He is also an integral member of the automation team responsible for HIPPA implementation in regards to interfaces to the accounting system and will require a substantial time commitment over the next 18 to 24 months. Mr. Sola current leave balance is at the maximum limit.

    BUREAU OF HAZARDOUS MATERIALS

3. Incident 2000-4317 – Request for authorization to issue deficiency warrants in the amount of $1,066.79 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Chubbuck, Idaho on November 16, 2000, pursuant to Idaho Code §39-7110.

4. Incident 2000-4836 – Request for authorization to issue deficiency warrants in the amount of $3,322.60 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Rigby, Idaho on December 28, 2000, pursuant to Idaho Code §39-7110.

5. Incident 2000-4748 – Request for authorization to issue deficiency warrants in the amount of $1,252.03 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Emmett, Idaho on December 18, 2000, pursuant to Idaho Code §39-7110.

6. Incident 2000-4223 – Request for authorization to issue deficiency warrants in the amount of $785.39 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Coeur d’Alene, Idaho on November 8, 2000, pursuant to Idaho Code §39-7110.

7. Incident 2000-4131 – Request for authorization to issue deficiency warrants in the amount of $489.22 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Kellogg, Idaho on November 2, 2000, pursuant to Idaho Code §39-7110.

8. Incident 2000-4464 – Request for authorization to issue deficiency warrants in the amount of $341.97 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Hayden, Idaho on November 29, 2000, pursuant to Idaho Code §39-7110.

9. Incident 2000-4551 – Request for authorization to issue deficiency warrants in the amount of $1,029.82 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Eagle, Idaho on December 5, 2000, pursuant to Idaho Code §39-7110.

10. Incident 2000-4161 – Request for authorization to issue deficiency warrants in the amount of $653.44 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Kellogg, Idaho on November 4, 2000, pursuant to Idaho Code §39-7110.

11. Incident 2000-4766 – Request for authorization to issue deficiency warrants in the amount of $2,623.51 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Pocatello, Idaho on December 21, 2000, pursuant to Idaho Code §39-7110.

12. Incident 2000-4634 – Request for authorization to issue deficiency warrants in the amount of $2,482.15 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Pocatello, Idaho on December 10, 2000, pursuant to Idaho Code §39-7110.

13. Incident 2000-4652 – Request for authorization to issue deficiency warrants in the amount of $914.68 for reimbursement of response costs incurred when emergency response teams assisted in a hazardous materials incident at 150 West 17 North, Jerome County, Idaho involving an unknown gray white substance on the road on December 12, 2000, pursuant to Idaho Code §39-7110.

14. Incident 2000-0366 – Request for authorization to issue deficiency warrants in the amount of $370.51 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Boise, Idaho on February 1, 2001, pursuant to Idaho Code §39-7110.

15. Incident 2000-0263 – Request for authorization to issue deficiency warrants in the amount of $426.20 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Spirit Lake, Idaho on January 21, 2001, pursuant to Idaho Code §39-7110.

16. Incident 2000-0120 – Request for authorization to issue deficiency warrants in the amount of $977.69 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Bonners Ferry, Idaho on January 10, 2001, pursuant to Idaho Code §39-7110.

17. Incident 2000-0055 – Request for authorization to issue deficiency warrants in the amount of $2,529.50 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Caldwell, Idaho on January 5, 2001, pursuant to Idaho Code §39-7110.

18. Incident 2000-0138 – Request for authorization to issue deficiency warrants in the amount of $1,378.20 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Nampa, Idaho on January 11, 2001, pursuant to Idaho Code §39-7110.

19. Incident 2000-0356 – Request for authorization to issue deficiency warrants in the amount of $2,227.12 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Moscow, Idaho on January 31, 2001, pursuant to Idaho Code §39-7110.

20. Incident 2000-0034 – Request for authorization to issue deficiency warrants in the amount of $1,471.59 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Pocatello, Idaho on January 3, 2001, pursuant to Idaho Code §39-7110.

21. 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.

22. Incident 2000-4869 – Request for authorization to issue deficiency warrants in the amount of $1,403.08 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Caldwell, Idaho on December 30, 2000, pursuant to Idaho Code §39-7110.

23. Incident 2000-4556 – Request for authorization to issue deficiency warrants in the amount of $2,065.61 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Twin Falls, Idaho on December 5, 2000, pursuant to Idaho Code §39-7110.

24. Incident 2000-4495 – Request for authorization to issue deficiency warrants in the amount of $2,450.16 for reimbursement of response costs incurred when emergency response teams assisted in a suspected drug lab incident in Ammon, Idaho on November 30, 2000, pursuant to Idaho Code §39-7110.

    OFFICE OF ATTORNEY GENERAL

25. Notification that John Magel of the firm of Elam & Burke has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in the Griff Bros. V. Dep’t of Agric., State File No. 2001-0377-001, pursuant to Idaho Code §67-1409.

26. Notification that John R. Goodell of the firm of Racine, Olson, Nye, Budge and Bailey has been appointed as a special deputy attorney general for the purpose of representing the State of Idaho in the Horne v. Dep’t of Transp., Dist. 5, et al., State File Nos. 2000-0527-001, 2000-0526-001, 2000-0712-001, pursuant to Idaho Code §67-1409.

27. Notification that M. Michael Sasser of the firm of Sasser & Inglis has been appointed as a special deputy attorney general (SDAG) for the purpose of representing the State of Idaho in the Root v. Southwest Dist. Health Dep’t, Case No. CV-99-02963; State File No. L99-0699-001, pursuant to Idaho Code §67-1409.


Governor: I will call the Board of Examiners meeting to order and I will call upon our State Controller, as Secretary of the Board of Examiners, to make a report.

State Controller: Thank you, Governor. Today we have before us 27 items on the Consent Agenda that have been reviewed by the Board’s Sub-Committee and have been recommended for approval by the Board, together with one Regular Agenda item involving the authorization to issue tax anticipation notes for the coming fiscal year. That will be presented by Ron Crane, his staff and legal counsel. We might consider the Consent Agenda first.

Governor: Mr. Secretary, do you have any questions or comments about the Consent Agenda?

Secretary of State: Governor, I would move the approval of the Consent Agenda.

Governor: I would second that. Is there anyone here from the universities? Okay, if there is no further discussion on the Consent Agenda, all in favor please say aye.

Aye: Governor
    Secretary of State

Opposed, nay. The ayes have it, so carried.


REGULAR AGENDA

28. STATE TREASURER – Ron Crane, State Treasurer
    Request for authorization to issue Tax Anticipation Notes for the Fiscal Year commencing July 1, 2001, in an amount not to exceed $1,424,182,500, as necessary and pursuant to the provisions of Chapter 32 of Title 63, of the Idaho Code.

Governor: Mr. Treasurer, if you would like to go ahead and make your presentation.

Ron Crane, State Treasurer: Thank you, Mr. Chairman and members of the Board. As you know, this is the annual request we make to issue a tax anticipation note for the State of Idaho, to borrow these monies, of course to level out the cash flow. If we don’t need them, we do some investing with those monies and it is a profitable thing for the state. One thing that is new this year that has not occurred in the past – in any bond issue or tax anticipation note issue you have an underwriter, financial adviser, bond counsel and a paying agent. Our underwriter for many years has been the Dane Rowser Company, which you are probably familiar with. This particular year our local banking system has formed a consortium to create an underwriting syndicate and they will serve as our underwriter for this tax anticipation note issue, and shelf those notes in-house and make them available to our smaller community banks first. So we are pretty excited about that opportunity. The money will come back to Idaho and Idaho investors will have first crack at that. So we are making a formal request, Mr. Chairman.

Governor: Any questions.

Mike Moore: Governor, my name is Mike Moore and I serve as Bond Counsel to the State Treasurer. The resolution we have prepared is the same form as has been for many years. It recites the estimated revenues to be received by the state, estimated by the State Tax Commission and the Department of Insurance, and authorizes the Treasurer to borrow an amount not to exceed three quarters of that, which actually this year would be $1,424,182,500. As in the past the Treasurer will not be issuing all of that authorized amount but rather an amount which bears a close relationship to the anticipated cash flow deficit of the state. Last year, for example, the Treasurer only issued $200 million worth of notes whereas in the years past the amount had been $300 million for several years in a row. So at this point we don’t know exactly the amount that will be issued. It will be sized according to the cash flow deficit that is estimated.

Governor: Ron or Mike, what impact does the fluidity of the market have upon this?

Ron Crane: Mr. Chairman, I am assuming you are referring to the stock market. As you know, we don’t invest a whole lot in the stock market. We do have the millennium fund, which is 70% in stock but it does have an affect in the fact that it does affects bonds, which we do participate in, and treasury notes, and they tend to follow the market as well, so it does have some bearing as far as those kind of instruments that we invest in. And I am sure it has an affect on our economy, which ultimately affects the receipts that we receive, but we are generally about two years behind the rest of the national economy, which is kind of interesting.

Governor: Very good. Any other questions? Mr. Secretary?

Secretary of State: Mr. Treasurer, what do you anticipate on these tax anticipation notes, which we will approve I am sure, how much money will the state make as a result of this

Ron Crane: As Mr. Moore indicated a little bit ago, Mr. Cenarrusa, we have borrowed about $300 million in tax anticipation notes. That translates to an income of about $19 million in interest income but our cost of issuance, which is the premium we pay to issue those notes, is about $13 million, so we net for the state an arbitrage of about $6 million. Last year the fourth quarter revenues indicated just before we make the tax anticipation note issue that we had a serious surplus that was building rapidly so we downsized the note issue from $300 million to $200 million, and as a result our profit went down a little bit. I think we were about $4.5 million in net interest income for the state. We will wait until probably the first of June to see where the revenues are to see if there are any surpluses building and so forth before we actually make a decision.

Mike Moore: I might add, Mr. Chairman and members, last year the Treasurer made a decision almost at the last minute to downsize the issue much further than we originally anticipated and it turned out that was a very good move on the part of the Treasurer because if he had not done so, we might have been in a position to rebate our arbitrage earnings because of that unexpected surplus. It was a good move.

Governor: Further discussion? You are seeking approval at this time?

Ron Crane: That is correct.

Governor: I would entertain a motion.

Secretary of State: Governor, I would move the approval of this resolution.

Governor: I would second that. Further discussion? Hearing none, those in favor please say aye.

Aye: Governor
    Secretary of State

Opposed, nay. The ayes have it, so carried.


INFORMATIONAL AGENDA
    STATE INSURANCE FUND

29. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of February 2001.
      Estimated expenditure for workers $10,000,000.00
      compensation claim costs, dividends
      and premium refunds

    Funds Expended in January 2001:
      Workers Compensation Claim Costs $ 5,628,827.31
      Dividend 28,939,492.61
      Commissions -0-
      Policy Refunds 196,428.22
      Total $ 34,764,748.14
30. Estimate of the Petroleum Storage Tank Fund expenses to be paid by sight draft or the month of February 2001.

      Estimated expenditures for $750,000.00
      Petroleum Storage Tank Fund
    Fund expended in January 2001:
      Payroll $ 51,254.57
      Operations 165,916.70
      Claim Costs 117,813.67
      Total $334,984.94


MINUTES
STATE BOARD OF EXAMINERS
March 13, 2001
Page 8



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
Page last updated on 07/12/2006 02:17:07 PM