February 15, 1.977 11:OO a.m.

MINUTES OF THE MEETING

BUSINESS AND INDUSTRY COMMITTEE

MONTANA STATE SENATE

The meeting of the Business and Industry Committee was called to order by Chairman Frank Hazelbaker on the above date in Room 404 of the State Capitol Building at 11:OO a.m.

ROLL CALL: All members were present.

DISPOSITION OF SENATE JOINT RESOLUTION 37. "A Joint Resolution Of The Senate And The House Of Representatives Of The State Of Montana Requesting The United states Congress To Consider The Effects Of The Federal Communications Commissions Decisions On The Residential, Rural, And Small Business User Of Telecommuni- cations. "

Senator Allen Kolstad, District 5, presented this bill to the committee. He then introduced Jay Preston, President and Manager of Ronan Telephone Company.

Mr. Preston handed out a little brochure entitled "The Problem In Brief." (Exhibit #1) He thinks the rates will have to double depending on what happens to the toll revenues. Most business calls are made in the day when the rates are higher. This is a high profit service that the telephone company provides. He feels this bill will benefit everyone in Montana and he can't see where there would be any adverse effects especially where Montana is concerned. He handed out "Ronan Telephone Company Revenue Study." (Exhibit #2) He stated they have had exceptional growth in toll calls that people have made.

PROPONENTS:

Tom Henderson, Scobey, Montana, representing Montana Telephone Association. He stated they serve the northeastern corner of the State of Montana. There are approximately 2500 subscribers. They support the bill.

Jack McDonald representing Mountain Bell. He stated Mountain Bell is in complete support of this bill.

Other proponents that were there were: Jack Dodd, Gene Anders and Charlotte Posey. Charlotte Posey presented written testimony. This is attached. (Exhibit #3)

There be ing no o t h e r p r o p o n e n t s o r opponen t s , S e n a t o r K o l s t a d made a moti.on t h a t S J R 37 b e adop ted . S e n a t o r Goodover seconded. R o l l c a l l v o t e . A l l w e r e i n f a v o r e x c e p t f o r S e n a t o r Regan.

DISPOSITION O F SENATE BILL 283. "An A c t To I n c r e a s e The Fees For R e g i s t r a t i o n O f Broker -Dea le r s , I n v e s t m e n t ~ d v i s o r s , and Salesmen; Allowing The Commissioner To R e t a i n A l l F e e s Even I f A p p l i c a t i o n Is Withdrawn O r Denied."

S e n a t o r Mat t H i m s l , D i s t r i c t 9 , s t a t e d h e was Chie f Sponsor o f S e n a t e B i l l 2 8 3 . H i s t e s t i m o n y i s a t t a c h e d a l o n g w i t h t h e proposed amendment from Rick Tucker , Ch ie f Deputy Investment Commissioner. ( E x h i b i t # 4 )

There b e i n g no more p r o p o n e n t s o r opponen t s , S e n a t o r Lowe made a mot ion t h a t w e a d o p t t h e amendments proposed by Rick Tucker . S e n a t o r K o l s t a d seconded.

S e n a t o r K o l s t a d t h e n made a mot ion t h a t S e n a t e ill 3 8 2 , A s Amended, Do P a s s . S e n a t o r Lowe seconded. A l l w e r e i n f a v o r .

DISPOSITION OF SENATE BILL 231. "An A c t To Permi t E s t a b l i s h m e n t O f Common T r u s t Funds For C o l l e c t i v e Inves tment Of Funds By A f f i l i a t e d Banks O r T r u s t Companies."

S e n a t o r Tom Rasmussen, D i s t r i c t 1 6 , s t a t e d he was Chief Sponsor of t h i s b i l l . H e i n t r o d u c e d Ed Jasmin , He lena , Nor thwestern Bank and Union T r u s t Company i n Helena .

Mr. Jasmin s t a t e d t h i s w i l l e n a b l e more p r o f i t a b l e inves tment of t r u s t f u n d s t h r o u g h s p e c i a l i z e d f u n d s n o t now a v a i l a b l e t o Montanans. H i s t e s t i m o n y is a t t a c h e d . ( E x h i b i t #5)

PROPONENTS:

George B e a l , F i r s t T r u s t Company of Montana. H e s t a t e d h e s u p p o r t e d t h i s b i l l e n t i r e l y . H e t h i n k s i t is g o i n g t o make it e a s i e r t o g i v e p e r s o n a l i z e d s e r v i c e t o t h e p e o p l e .

Harold P i t t s , Montana Independent Bankers , s t a t e d he s u p p o r t e d SB 231..

Chuck P e d e r s e n , Montana Bank, G r e a t F a l l s , s t a t e d he was i n agreement w i t h M r . J a s m i n ' s t e s t i m o n y .

John Cadby, Montana B a n k e r ' s A s s o c i a t i o n , s t a t e d he was i n comple te s u p p o r t o f SB 231.

There b e i n g no o t h e r p r o p o n e n t s o r o p p o n e n t s , S e n a t o r Devine made a mot ion t h a t SB 231 Do P a s s . S e n a t o r Goodover seconded. A l l were i n f a v o r e x c e p t f o r S e n a t o r Lowe.

CONSIDERATION OF SENATE BILL 280. "An A c t To P r o v i d e That Automobile I n s u r e r s Are Excepted From F i c t i t i o u s Group P r o v i s i o n s And Need Not Have Commission Approval Of Group R a t e s . "

S e n a t o r R ichard Smi th , D i s t r i c t 8 , s t a t e d he was Chief Sponsor of t h i s b i l l .

S e l l a t o r Smi th s t a t e d t h e r e w a s an e r r o r i n t h e t i t l e o f t h e b i l l . H e p r o p o s e d t h e a t t a c h e d amendments. ( E x h i b i t #6 ) H e s t a t e d t h i s would a l l o w any g r o u p o f p e o p l e t o set up t h e i r a u t o m o b i l e c a s u a l t y i n s u r a n c e t h e same a s is done w i t h l i f e i n s u r a n c e , e tc . H e t h i n k s ra tes are r e a l l y t o o h i g h and that , i n t i m e t h e y w i l l d r o p .

E r n e s t P o s t , Montana S t a t e AFLCIO, s t a t e d h e w a s i n s u p p o r t o f t h i s b i l l . H e t h i n k s t h e time h a s come t o a l l o w g r o u p s t o e n t e r and n e g o t i a t e f o r chea .per r a tes on a u t o i n s u r a n c e . I ie recommended t h e Commit tee g i v e t h i s b i l l a Do P a s s .

W. Uoyce C l a r k e , I n d e p e n d e n t I n s u r a n c e A g e n t s o f Montana. H i s t e s t i m o n y is a t t a c h e d . ( E x h i b i t #7)

OPPONENTS:

Glen Drake , American I n s u r a n c e A s s o c i a t i o n , s t a t e d t h e y opposed t h e b i l l . I t is n o t t h e p u r p o s e o f t h e b i l l , b u t t h e m a t t e r o f t h e b i l l t h e y oppose .

R i c h a r d Smi th c l o s e d . H e a r i n g c l o s e d on SB 280.

CONSIDERATION OF SENATE BILL 282. "An Act To P r o v i d e For An -- Economic Impact S t a t e m e n t F o r C e r t a i n P r o p o s e d L e g i s l a t i o n And O t h e r S t a t e A c t i o n s . "

S e n a t o r R o b e r t L e e , Distr ict 43 , s t a t e d h e w a s C h i e f Sponso r o f t h i s b i l l . H e t h e n i n t r o d u c e d P e t e r J a c k s o n , P r e s i d e n t , Wes te rn E n v i r o n m e n t a l T r a d e A s s o c i a t i o n .

Mr. J a c k s o n s t a t e d t h e y are i n f a v o r o f SB 282 . H e f e e l s t h a t an economic impac t s t a t e m e n t is n e e d e d . H e s t a t e d w e are l o o k i n g a t a s o c i e t y t h a t is e x t r e m e l y complex . H e f e e l s t h e r e d e f i n i t e l y is a need f o r EPA i n Montana.

PROPONENTS:

Joe C r o s s w h i t e , O p e r a t i n g E n g i n e e r s Union. H e stated t h e y a r e h a v i n g a t o u g h t i m e i n Montana g e t t i n g c o n s t r u c t i o n j o b s g o i n g . H e t h i n k s t h i s is a good b i l l a n d h o p e s t h e cornmi-ttee w i . 1 1 g i v e t h i s b i l l a D o P a s s .

Tom Winso r , Chamber o f Commerce s t a t e d h e b e l i e v e s t h e p e o p l e of Montana d e s e r v e a b a l a n c e d a p p r o a c h . H e s u p p o r t e d SB 282 .

Don A l l e n , Montana P e t r o l e u m A s s o c i a t i o n , s t a t e d h e e n d o r s e d t h i s c o n c e p t . H e s u p p o r t s SB 282.

OPPONENTS:

S t e v e Brown o n b e h a l f of t h e G o v e r n o r ' s O f f i c e . H e s t a t e d t h e y do n o t d i s a g r e e w i t h t h e c o n c e p t o f SB 282 . I n o p p o s i n g t h i s b i l l , h i s o p p o s i - t i o n is b a s e d on t h e form o f t h e b i l l . H e t h i n k s t h e l i t i g a t i - o n is g o i n g t o b e t r emendous i f t h i s b i l l p a s s e s . H e s t a t e d t h e L e g i s l a t u r e h a s n e v e r p r o v i d e d enough manpower t o do economic impac t s t a t e m e n t s .

Dave Ful l e r , Cornrn iss ior le r o f t h e D e p a r t m e n t oS L a b o r a n d I n d u s t r y . He o p p o s e s t h e b i l l . His t e s t j m o n y i s a t t a c h e d ( E x h i b i t # 8 )

P h i l Tawney , E n v i r o n m e n t a l I n f o r m a t i o n C e n t e r , s t a t e d t h i s w o u l d r e q u i r e o n l y a 2 4 m o n t h a n a l y s i s . You d o n ' t l o o k a t a p r o j e c t f o r o n l y 2 4 m o n t h s . H e f e e l s t h i s l e g i s l a t i o n is ( 1 ) i - n a d e q u a t e a n d ( 2 ) n o t g o i n g t o r e q u i r e e m p l o y m e n t . T h e y w o u l d s u p p o r t e c o n o m i c a n a l y s i s i f i t w e r e i n c r e a s e d t o a 1-ong t e r m p e r i o d a n d i f f u n d i n g w e r e a d e q u a t e .

<James W . M u r r y , AFLCIO. He s p o k e i n o p p o s i t i o n t o Sl3 2 8 2 . His t e s t i m o n y i s a t t a c h e d . ( E x h i b i t #9)

S a r a h I g n a t i u s , N o r t h e r n P l a i n s R e s o u r c e C o u n c i l , s t a t e d t h e y o p p o s e d SB 2 8 2 .

S e n a t o r L e e c l o s e d . H e a r i n g c l o s e d o n SB 282.

CONSIDERATION OF SENATE BILL 2 3 7 . "An A c t T o R e v i s e T h e Makeup Of T h e B o a r d o f R e a l E s t a t e . "

S e n a t o r G e o r g e R o s k i e , D i s t r i c t 2 1 , s t a t e d h e w a s C h i e f S p o n s o r o f t h i s b i l l . He s t a t e d w h a t t h e b i l l d o e s is r e v i s e t h e m a k e u p of t h e B o a r d o f R e a l E s t a t e . T h e B o a r d o f R e a l E s t a t e w a s c r e a t e d b y t h e l i c e n s i n g a c t . T h e r e is n o l o n g e r a n y r e a s o n t o k e e p t h e D i r e c t o r o f t h e D e p a r t m e n t o f A g r i c u l t u r e as c h a i r m a n . His f e e l i n g is h e s h o u l d n o t c o n t i n u e a s it i s a t e n u o u s p o s i t i o n a t bes t . S o i n l i n e s 15 a n d 16 i t e l i m i n a t e s t h e D i r e c t o r o f A g r i c u l t u r e a s C h a i r m a n o f t h e B o a r d . He u r g e d p a s s a g e o f t h i s b i l l .

C l i f f C h r i s t i a n , M o n t a n a A s s o c i a t i o n o f R e a l t o r s , s t a t e d h e s u p p o r t e d SB 237.

Jim B u r k e , M o n t a n a A s s o c i a t i o n o f R e a l t o r s , u r g e d p a s s a g e o f t h i s b i l l .

S e n a t o r H o s k i e c l o s e d . H e a r i n g w a s c l o s e d .

C h a i r m a n H a z e l b a k e r s t a t e d t h e r e w o u l d b e a recess u n t i l 1 : 3 0 a s we w e r e u n a b l e t o f i n i s h t h e l i s t of b i l l s b e f o r e t h e S e n a t e w e n t i n t o s e s s i o n .

CONSIDERATION OF SENATE BILL 2 5 8 . "An A c t To I n c l u d e T h c S a l e Of D i s t i l l a t e s On Any B a s i s O t h e r T h a n G r o s s Volume D e l i v e r e d To B e V o i d . "

S e n a t o r Bob P e t e r s o n , D i s t r i c t 4 2 , s t a t e d h e was C h i e f S p o n s o r o f t h i s b i l l . He s t a t e d t h e b i l l now w i l l i n c l u d e b o t h g a s a n d d i s t i l l a t e s .

PROPONENTS:

Tom K e n n e a l l y , P r e s i d e n t Town Pump, I n c . , s t a t e d t h e y a r t i e n g a g e d i.n t h e s e l l i n g of g a s a n d d f s t i l l a t e s w h i c h t h e y b u y f r o m ma, jor

o i l cumparlies i n Montana. Most ma jo r companies s(:14 on a t e m p e r a t u r e c o r r e c t e d b a s i s . A t 6 0 d e g r e e s t h e y r e c e i v e 1 0 , 0 0 0 g a l l o n s b u t c h a r g e d f o r 7 0 , 1 4 9 g a l l o n s . T h i s is t h e n p a s s e d on t o t h e consumers . I I e t h i n k s t h i s i s a b i l l t h a t would b e n e f i t t h e consumers .

David B r o t n o r , F a r West G a s and O i l , s t a t e d t h e y own t h r e e t r u c k s t o p s and b u l k p l a n t s . H e s t a t e d t h e y have had t o make a d j u s t m e n t s i n t h e i r n e t g r o s s i n v e n t o r y o f $12 ,000 .00 . T h i s d o e s h a v e t o b e p a s s e d on t o t h e consumer . H e hoped t h a t t h i s b i l l would p a s s .

S e n a t o r P e t e r s o n c l o s e d . H e a r i n g c l o s e d on SB 258 .

DISPOSITION OF SENATE BILL 400 . "An A c t To Exempt I n s u r a n c e Of R e l i g i o u s Denomina t ions A g a i n s t C e r t a i n H a z a r d s And C a u s e s From operat i o n Of I n s u r a n c e c o d e . "

S e n a t o r C a r n i e T h i e s s e n , D i s t r i c t 27 , s t a t e d he w a s Ch ie f S p o n s o r of t h i s b i l l . S e n a t o r T h i e s s e n handed o u t t e s t i m o n y from Thomas L. O I M a l l e y , I n s u r a n c e D i v i s i o n o f t h e S t a t e o f M i n n e s o t a . T h i s is a t t a c h e d . ( E x h i b i t # l o )

Chip Erdmann, A t t o r n e y , Depar tment o f I n s u r a n c e s t a t e d t h e men- n o n i t e s are n o t q u a l i f i e d u n d e r t h e s t a t u t e s and a r e n o t r e c o g n i z e d . They d o n ' t t a k e a p o s i t i o n f o r o r a g a i n s t t h i s b i l l .

OPPONENTS:

Glen D r a k e , American I n s u r a n c e A s s o c i a t i o n , s t a t e d h e f e e l s it would b e d i s a s t r o u s t o p a s s t h i s b i l l .

W . Boyce C l a r k e , I n d e p e n d e n t I n s u r a n c e A g e n t s o f Montana. H i s t e s t i m o n y is a t t a c h e d . ( E x h i b i t #11 )

S e n a t o r T h i e s s e n c l o s e d . H e a r i n g c l o s e d on SB 400 .

S e n a t o r Lowe made a mo t ion t h a t SB 400 Do Not P a s s . S e n a t o r Regan s e c o n d e d . R o l l c a l l v o t e t a k e n . A l l w e r e i n favor except f o r S e n a t o r K o l s t a d and S e n a t o r Mehrens.

'I'he S e n a t e w a s g o i n g b a c k i n t o s e s s i o n s o t h e cornrnit tee r e c e s s e d u n t i l a p p r o x i m a t e l y 4 : 3 0 p.m.

DISPOSITION OF SENATE BILL 282.

S e n a t o r Regan made a m o t i o n t h a t SB 282 Do Not P a s s . S e n a t o r Lowe made a s u b s t i t u t e m o t i o n t h a t SB 282 b e p a s s e d f o r t h e d a y . S e n a t o r Mehrens s econded . R o l l c a l l v o t e . A l l were i n f a v o r e x c e p t S e n a t o r Regan a n d S e n a t o r Dev ine .

DISPOSITION OF SENATE BILL 280.

S e n a t o r P e t e r s o n made a m o t i o n t h a t SB 280 Do Not P a s s . S e n a t o r K o l s t a d s e c o n d e d . R o l l c a l l v o t e . A l l were i n f a v o r e x c e p t S e n a t o r Regan, S e n a t o r Mehrens and S e n a t o r Dev ine .

DISPOSI'I'ION OF SENATE BILL 237.

S e l l a t o r Regan made a mo t ion t h a t w e a c c e p t t h e amendments by h e r and Roger T i p p y . S e n a t o r Lowe s e c o n d e d . A l l were i n f a v o r .

S e n a t o r Goodover made a mot ion t h a t SB 237, A s Amended, D o Pass. S e n a t o r Regan s e c o n d e d . A l l were i n f a v o r .

LlISPOSITION OF SENATE BILL 85.

S e n a t o r Regan made a mot ion t h a t w e a c c e p t t h e amendments b y B i l l G r o f f . Sena . to r Goodover s e c o n d e d . A l l were i n f a v o r .

~ e d a t o r Regan made a mot ion t h a t S e n a t e B i l l 85, A s Amended, Do P a s s . S e n a t o r Goodover s e c o n d e d . Ro l l c a l l v o t e . A l l were i n f a v o r e x c e p t f o r S e n a t o r K o l s t a d , S e n a t o r Mehrens , and S e n a t o r P e t e r s o n . S e n a t o r Dev ine a b s t a i n e d .

ADJOURN: T h e r e b e i n g no f u r t h e r b u s i n e s s , Chairman H a z e l b a k e r a d j o u r n e d t h e m e e t i n g a t 5 : 1 5 p.m.

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