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 > Subcommittee Minutes
STATE BOARD OF EXAMINERS
MINUTES – Subcommittee Meeting
March 8, 2011 – 1:30 p.m.
Joe R. Williams Building, 5th Floor Conference Room 5A

The regular meeting of the Subcommittee to the State Board of Examiners was called to order at 700 West State Street, Boise, Idaho, at 1:40 p.m. pursuant to Idaho Code §67-2002 and by order of the chair.

The following members were present: Wayne Hammon, Division of Financial Management; Tim Hurst, Deputy Secretary of State; Steve Olsen, Deputy Attorney General, and Brandon Woolf, Office of the State Controller, as assisting secretary to the subcommittee.

Also present by invitation were: Jarod Dick, Bureau of Homeland Security; Michael Cooper, Department of Agriculture; Kelly Nielsen, Department of Agriculture; Mark Poppler, Tax Commission; David Fulkerson, Division of Financial Management; Dana Hanson, Office of the State Controller; Laura Steffler, State Treasurer’s Office; Dan Goicoechea, Office of the State Controller; and Deborah Wonch, Office of the State Controller.

CONSENT AGENDA
1. Minutes
Approval of official minutes for the meeting of the Sub-committee to the Board of Examiners on February 8, 2011.

Resolution: Mr. Hammon moved to approve item 1. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.

    REGULAR AGENDA

    2. Bureau of Homeland Security
    ID #
    Description
    Amount
    Comments
    Date to Board
    2010-00254
    Haz Mat – Mercury Spill
    $6,532.20
    Paid
    A student at Payette High School broke a container of mercury. Responsible Party paid in full 01/31/2011. (PAYETTE)03/08/11
    2010-00278
    Haz Mat – Fuel Spill
    $2,162.20
    Paid
    Commercial automobile accident resulting in a fuel spill. An insurance company is involved and recovery is expected. Responsible Party paid in full 03/02/2011. (BINGHAM)03/08/11
    2010-00279
    Haz Mat – Fuel Spill
    $799.76
    A submerged boat in the Spokane River produced a fuel spill. An insurance company is involved and recovery is expected. (KOOTENAI)03/08/11
    TOTAL
    $799.76
    Discussion: Mr. Olsen congratulated BHS on recovering money for the state.

    Resolution: Mr. Hammon moved to approve item 2 and place it on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.


    3. Office of the State Controller
    Request pursuant to Idaho Code §67-2027 for approval of recommended audit services for Legislative Services Office.

    Discussion: Ms. Hanson explained that she is apart of a 3-person committee that reviews audit proposals for the Legislative Services Branch. The committee met, evaluated the bids, and was unanimous on recommending the approval of Hooper Cornell as the auditors for the Legislative Branch.

    Mr. Hammon asked what were some of the other criteria the committee discussed besides the price and credibility of the firm.

    Ms. Hanson responded that they have a technical section and a financial section, and Hooper Cornell’s bid was the lowest priced bid.

    Mr. Olsen asked if she was comfortable with their work in the past.

    Ms. Hanson said that the Legislative Services Branch was very happy with their last audit.

    Resolution: Mr. Hammon moved to approve item 3 and place it on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.

      4. Department of Agriculture
      Request approval pursuant to Idaho Code 22-2019 for deficiency warrant spending authority for the following items:
      a. Potato Cyst Nematode (PCN) Survey, Detection and Eradication Program: $12,500

      b. Survey, Detection and Eradication Programs for Pests and Diseases: $75,000

      Total authorization requested for March 1, 2011 through February 29, 2012: $87,500

      Discussion: Mr. Cooper noted the nematode request is to help offset the federal grant funding they receive for fumigating fields, etc. He explained that item b. includes a number of different pests. The annual report is kept on their website for other states to see what pest conditions are in Idaho regarding regulations for transporting or importing seeds/nurseries, etc.

      Mr. Olsen asked what the significance is for using a deficiency warrant.

      Mr. Hammon responded that there are only 3 in the state and it is a mechanism they use to allow the department to go ahead and spend the money and then come back to the legislature for appropriation. This is something they have discussed with the legislature numerous times, and the legislature approved these activities being on the deficiency warrant. At one time they looked at getting an appropriation for it, but this was the route the legislature chose.

      Resolution: Mr. Hurst moved to approve item 4 and place it on the consent agenda. Mr. Hammon seconded the motion. The motion carried on unanimous voice vote.

      5. Office of the State Treasurer
      Request advance approval to issue the Fiscal Year 2012 Tax Anticipation Notes in an amount not to exceed $1,764,150,000.

      Discussion: Ms. Steffler explained that the reason they issue tax anticipation notes is to even out the cash flow for the state. During the fiscal year they make the school payments primarily over the first six months, and then collect most of the tax receipts during the last six months. Around November there is a large deficit in the General Fund. They borrow money to cover those cash flow needs but do not anticipate issuing as much as they are asking approval for. It will probably be somewhere in the $500 million range.

      Resolution: Mr. Hammon moved to place item 5 on the regular agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.


        6. Tax Commission
        a. Request approval of additional moving expenses for Commissioner Geddes.

        b. Request approval to borrow additional funds pursuant to Idaho Code 63-3067(2) to pay refunds.

        Discussion: Mr. Olsen explained that he has been working with Commissioner Geddes on legal matters and recused himself on this part of the Tax Commission’s request.

        Mr. Poppler said that item a. is for a very small amount because they are being as exact as possible.

        Resolution: Mr. Hammon moved to place item 6 a. on the regular agenda with the recommendation that the board approve the first two trips ($436.80) for incurred expenses, but not approve the last part ($526.20) for anticipated future expenses.

        Discussion: Mr. Hammon said the letter explained the circumstances around the first two trips. The third trip would be to retrieve an item that is specifically excluded by the board policy, so it would be inappropriate to reimburse the third trip.

        Mr. Poppler said he thought the Commissioner would want to withdraw that part of the request if it were not recommended.

        Mr. Woolf suggested amending the request or resubmitting the request to the Controller’s office.

        Mr. Poppler said he would withdraw the last item on the request for 6.a.

        Resolution: Mr. Hammon modified his motion to place the modified request from the Tax Commission item 6.a. on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.

        Discussion: Regarding 6.b. Mr. Poppler explained they are just asking for authority to borrow money up to that amount. They will only borrow as they need it.

        Mr. Hammon asked if the one transfer of $25 million will be enough.

        Mr. Poppler answered they would like the authority up front just in case they might need the second $25 million. The total expectation for the fiscal year has not changed.

        Mr. Hammon commented that it is just a cash flow issue. We are going to get $37 million back.

        Mr. Poppler said they will do one $25 million transfer when the Tax Commission is ready, probably late March or early April.

        Mr. Hammon said the second transfer would only take place if necessary.

        Mr. Poppler said the second transfer might not need to be $25 million. It could be less.

        Mr. Hammon noted that he appreciates the Tax Commission for updating the board regularly.

        Resolution: Mr. Hammon moved to place item 6.b. on the consent agenda. Mr. Hurst seconded the motion. The motion carried on a unanimous voice vote.

          INFORMATIONAL AGENDA

          7. Department of Fish and Game
          Update on the relocation extensions of Greg Wooten and David Silcock.


          8. Office of the Attorney General
          a. Notification that Anthony M. Valdez of the firm of Valdez Law Office, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the Idaho, Industrial Special Indemnity Fund in the matters of Rosalie Faulkner and Susan Hare.

          b. Notification that Paul J. Augustine of the firm of Augustine Law Office, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the Idaho, Industrial Special Indemnity Fund in the matter of Richard Kaiser.

          c. Notification that M. Jay Meyers of the firm of Meyers Law Office, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the Idaho, Industrial Special Indemnity Fund in the matter of Gary Shipley.

          d. Notification that Paul J. Augustine of the firm of Augustine Law Office, PLLC, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the Idaho, Industrial Special Indemnity Fund in the matter of Marcia Emery.

          e. Notification that Tevis W. Hull, Deputy Prosecuting Attorney with the Boundary County Prosecutor’s Office, has been appointed pursuant to Idaho Code §67-1409 as Special Deputy Attorney General for the purpose of representing the State of Idaho in the matter of Robert and Janette Baucum Real Property Forfeiture.


          9. State Insurance Fund
          a. Estimate of the State Insurance Fund expenses to be paid by sight drafts for the month of January, 2011.
              Estimated expenditure for workers compensation claim costs, dividends and premium refunds
          $18,000,000.00
            Funds Expended in January, 2011:
            Workers Compensation Claim Costs
          $9,653,916.55
            Dividends
          10,886,855.34
            Commissions
          0
            Policy Refunds
          449,870.05
            Total
          $20,990,641.94
          b. Estimate of the Petroleum Clean Water Trust Fund expenses to be paid by sight draft for the month of January, 2011.
              Estimated expenditure for Petroleum Clean Water Trust Fund
          $750,000.00
            Funds Expended in January, 2011:
            Payroll
          $64,233.38
            Operations
          228,853.65
            Claim Costs
          125,047.48
            Total
          $418,134.51
          A meeting agenda will be available at the Idaho State Controller’s Office, 700 West State Street, Boise, Idaho, two (2) working days before the meeting.

          If you have questions or would like to arrange auxiliary aides or services for persons with disabilities, please contact the Idaho State Controller’s Office at (208) 334-3100. Accommodations for auxiliary aides or services must be made no less than five (5) working days in advance of the meeting.

          The CONSENT AGENDA addresses routine items the board may approve without discussion.

          The REGULAR AGENDA addresses policy and program items the board may wish to discuss prior to making a decision.

          The INFORMATION AGENDA provides information only.

          The agendas are subject to change and the Board may move an item from one agenda to another.


          Page last updated on 05/06/2011 11:11:03 AM