2018 Boise Metro Chamber Legislative Agenda

ANNUAL LEGISLATIVE AGENDA & POLICY POSITIONS

WHERE WE STAND

2018 LEGISLATIVE AGENDA & POLICY POSITIONS by the Boise Metro Chamber Board of Directors

boisechamber.org

(208) 472-5205

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2018 ORGANIZATION FOR ADVOCACY BOARD OF DIRECTORS

Board of Advisors

CHAMBER ADVOCACY TEAM

EXECUTIVE COMMITTEE

POLICY COMMITTEE Scott Madison Intermountain Gas Company Chairman

John Cunningham Block 22 LLC Chair-Elect*

Healthcare Board

Scott Kreiling Regence BlueShield of Idaho

Bruce Newcomb (ret.)

Boise State University

Food & Ag Industry Board

Tracy Hitchcock Create Common Good

Travel Industry Board

Sandy Clark Lamar Airport Advertising

Financial Services Board

Small Business Advisory Council

Gerald Hunter Idaho Housing and Finance Association

David Hammerquist David Hammerquist Law Chartered

Government Affairs Committee

Education/ Workforce Committee

Transportation Committee

Nonprofit Council

Marnie Packard SelectHealth

Molly Lenty Wells Fargo Bank, N.A.

Seth Olsen Cartright Engineers

Erin Anderson Idaho Botanical Gardens

Engery Task Force

Scott Madison Intermountain Gas Company Co-Chair

Bill Connors President & CEO

Ray Stark Senior Vice President, Government & Community Relations/Events

John Watts Partner Veritas Advisors Idaho Chamber Alliance Lobbyist

Lisa Grow Idaho Power Company Co-Chair *Special term serving as Chair effective July 1, 2018

2018 LEGISLATIVE AGENDA REDUCTION OF THE UNEMPLOYMENT INSURANCE TAX RATE The tax rate is scheduled to increase from 1.4% to 1.5% on January 1, 2018. Rather than increase, the rate can be actually be reduced to 1.3% or less because there is more than an adequate balance in the unemployment insurance trust fund to pay benefits during the next recession.

ECONOMIC DEVELOPMENT TOOLS FOR INVESTMENT The Chamber supports several new and existing economic development tools to provide jobs for Idahoans: • A sales tax exemption for the equipment in data centers to be “equipment competitive” with other states.

• Maintain Tax Reimbursement Incentive (TRI) legislation that has directly led to thousands of new jobs in Idaho.

• Increase the personal property tax exemption from the current $100,000 per business.

• Protect the use of tax increment financing by urban renewal districts for future investment and support current auditorium district authorization.

• Support debt free Local Option Authority for community projects

REDUCTION OF THE CORPORATE INCOME TAX The corporate income tax of 7.4% is still higher than surrounding states. Idaho has been eliminated from consideration for economic development projects based on this tax rate alone. The rate could gradually be reduced over several years. One innovative approach could be to “buy down” the tax rate only after state government is funded at a certain level and the savings accounts are replenished.

COLLECTION OF SALES TAX BY OUT-OF-STATE FIRMS “Main Street” brick and mortar businesses invest in their local communities and are at an economic disadvantage to mail-order companies. Proposed legislation in 2017 was directed to out-of-state firms with $10,000 or more in sales within Idaho.

EDUCATION TASK FORCE RECOMMENDATIONS The Chamber will review recommendations from the Workforce Development Task Force and the Higher Education Task Force. Several recommendations are being implemented by the Governor and the State Board of Education and others will be considered by the 2018 Legislature. The Chamber continues to support the state’s Career Technical Education Programs to reduce the backlog of education training for high-demand technical jobs.

IDAHO HEALTH CARE PLAN The Chamber supports the duel waiver concept known as the Idaho Health Care Plan. This is the first step in providing health insurance for Idaho’s citizens who fall into the gap population. The plan also aims to reduce the cost of premiums for those on the individual market. This position is in line with the Chamber’s long-term interest in advocating for affordable health care solutions.

COLLEGE BUILDING REQUESTS The Chamber supports consideration of using general account surplus for one-time construction of high priority state facilities. Boise State University- School of Public Service, College of Innovation & Design, Laboratory Building. College of Western Idaho- Health Science Building, Boise Campus site development.

ECONOMIC DEVELOPMENT & TAX POLICY INITIATIVES 1. ECONOMIC DEVELOPMENT TOOLS FOR INVESTMENT: The Chamber supports several new and existing economic development tools to provide jobs for Idahoans: • A sales tax exemption for the equipment in data centers to be “equipment competitive” with other states.

• Maintain Tax Reimbursement Incentive (TRI) legislation that has directly led to thousands of new jobs in Idaho.

• Increase the personal property tax exemption from the current $100,000 per business.

• Protect the use of tax increment financing by urban renewal districts for future investment and support current auditorium district authorization.

• Support debt free Local Option Authority for community projects.

2. CONTINUED REDUCTION OF THE CORPORATE INCOME TAX: Idaho’s corporate income tax rate has been reduced to 7.4% but is still considered too high to be competitive with other states for some business attraction projects. Idaho has been eliminated from consideration for economic development projects based on this tax rate alone. The rate could gradually be reduced over several years. One innovative approach could be to “buy down” the tax rate after state government is funded at a certain level and the savings accounts are replenished.

3. IDAHO HEALTH CARE PLAN: The Chamber supports the duel waiver concept known as the Idaho Health Care Plan. This is the first step in providing health insurance for Idaho’s citizens who fall into the gap population. The plan also aims to reduce the cost of premiums for those on the individual market. This position is in line with the Chamber’s long-term interest in advocating for affordable health care solutions.

4. STATE-OPERATED HEALTH INSURANCE EXCHANGE: An insurance exchange is a one-stop marketplace for individuals and small employers to shop for and buy health insurance policies, in response to a federal mandate. The Chamber supports maintaining the state operated exchange rather than a federal operated and controlled exchange so that Idaho can maintain primacy over the state’s private health insurance market. This ensures a meaningful role for independent brokers and an open competitive market to help increase the number of Idahoans insured through private insurance.

5. REDUCTION OF THE UNEMPLOYMENT INSURANCE TAX RATE: The tax rate is scheduled in increase from 1.4% to 1.5% on January 1, 2018. Rather than increase, the rate can be actually be reduced to 1.3% or less because there is more than an adequate balance in the unemployment insurance trust fund to pay benefits during the next recession.

6. IDAHO WORKFORCE DEVELOPMENT TRAINING FUND: The training fund is an important economic development tool in Idaho. Its objectives are to 1) provide funding to help train new employees for expanding companies; and 2) provide upgraded skill training for current workers who are at risk of being permanently laid off. The training fund helps existing companies expand and helps attract new business to Idaho. Current Idaho law extends the sunset clause to January 1, 2018.

7. CONFORM WITH THE IRS TAX CODE: The Chamber, insofar as appropriate, annually supports maintaining compatibility of Idaho’s tax code with the federal tax code. Implementing legislation is considered by the Idaho Legislature.

8. ELIMINATION OF THE PERSONAL PROPERTY TAX: Support the elimination of the personal property tax, an onerous tax for business to pay and government to collect. Nearly 6,000 businesses continue to pay this onerous and inefficient tax. Increasing the exemption to $500,000 would be an important next step in the process to completely eliminate the tax. Personal property consists of items used by business, such as furniture, machinery, tools, desks, computers, etc. Personal property exempt from taxation includes household items, personal vehicles, livestock, medical equipment and many other items. The Legislature should take into account the revenue impact to local governments when continuing the phased elimination.

9. PRODUCTION EXEMPTION: Support retention of the sales tax exemption on tangible personal property used in the production process. This pertains to materials, supplies and equipment used directly in the production process by manufacturers, farmers and other producers.

10. SALES TAX EXEMPTIONS: Support the preservation of essential sales tax exemptions that benefit the economy including removing the sunset for the exemption for parts for repair of outof-state aircraft. The Chamber opposes the expansion of sales tax on services while continuing to analyze the changing nature of the economy and the trend toward more service transactions and Internet sales.

11. MULTI-USE SPORTS AND ENTERTAINMENT FACILITY: A multiuse facility near downtown Boise is important for economic development, sports and entertainment. Such a facility could be used for a minor league baseball franchise, youth sports tournaments for soccer, baseball, lacrosse, musical concerts, special events, corporate events, ceremonies and festivals.

12. BOISE LIBRARIES: The City of Boise completed four branch libraries from a combination of renovations of existing buildings and new construction. In the future, the Chamber looks forward to reviewing a proposal for a downtown main library facility.

13. LOCAL OPTION TAXATION: In the past, the Chamber has supported legislation to allow a voter-approved, local option sales tax to fund regional public transportation and other transportation improvements. In 2008, the House of Representatives approved a general local option constitutional amendment for cities and counties but it was held in a Senate committee. The Chamber opposed this constitutional amendment as being unnecessary and unduly stringent. The Governor’s Transportation Task Force included local option as a mechanism to fund transportation in its report to the Governor and Legislature in late 2010. The Chamber’s 2011 and 2013 Leadership Conferences focused on local funding mechanisms for major community projects including transportation. In 2012, a Chamber InterCity Visit to Oklahoma City reviewed that city’s success with voter-approved sales tax initiatives to fund significant community projects. The Chamber will review bonding options from voter-approved local option.

14. AIR QUALITY: Support the Treasure Valley Air Quality Council’s plan to improve the air quality in the Treasure Valley.In addition to economic development, cleaner air is important for breathability, natural beauty, recreation use and livability. The air shed is nearing its capacity for several pollutants that are monitored by federal and state governments under the Clean Air Act. These pollutants include: nitrogen oxide (ozone) from vehicle emissions and other combustion; particulate matter from agriculture, vehicle emissions and burning; and carbon monoxide from vehicle emissions.

16. MOUNTAIN HOME AIR FORCE BASE: Support operation of the air base as an important, established asset to the U.S. Department of Defense as it trains pilots, tests aircraft and maintains combat readiness for the U.S. Air Force. Continue to support the deployment of the F-15 and F-16 fighter units. The air base is the largest, operational military facility in Idaho. Its economic impact on Southwest Idaho totals over one billion dollars with an economic multiplier. The air base provides extensive support to the Idaho Air and Army National Guard.

15. BOISE AIRPORT AND GOWEN FIELD: Support development of the Boise Airport and Gowen Field for additional commercial air service and military activity for the Idaho National Guard. Additional airport activities include increased air service, non-stop routes and air cargo operations. Future military mission for the Idaho Air Guard could include an operations squadron for the F-35.

Future construction of a third runway south of Gowen Road would enhance aviation and military uses and air cargo operations.

• Support additional non-stop air service at Boise Airport • Support F-35 aircraft at Gowen Field for Idaho Air National Guard • Support construction of the Third Runway for Boise Airport and military uses.

• Support development of Significant Air Cargo Services at Boise Airport

17. IDAHO NATIONAL LABORATORY (INL): Support expansion of INL’s mission to support the science, engineering and operations needs of the U.S. Department of Energy and other agencies and organizations through the application of key technological capabilities, including nuclear research.

Support the Center for Advanced Energy Studies (CAES), a unique, collaborative partnership between INL and the University of Idaho, Boise State University and Idaho State University.

Leverage CAES infrastructure, equipment and expertise to educate Idaho’s energy workforce, promote energy efficiency and deliver innovative, cost-effective, and credible energy research.

18. IDAHO’S TECHNOLOGY SECTOR: Support the Idaho Global Entrepreneurial Mission (IGEM). Their initiative is increasing the research capacity of Idaho’s universities and developing a consortium of industry, university and government partnerships.

These economic drivers will generate globally competitive technologies, high-paying jobs, and an expanded tax base.

EDUCATION & WORKFORCE INITIATIVES 1. CAREER TECHNICAL EDUCATION 5. BOISE STATE UNIVERSITY: Support Boise State University’s PROGRAMS: Additional appropriations mission to be a “Metropolitan Research University” through will increase the talent pipeline for specific funding requests and facility appropriations. Potential current openings in high demand jobs funding requests could include engineering, computer science in health care, information technology, and nursing. The development of strong research infrastructure manufacturing and many other careers. will ultimately benefit the regional economy and the goals of the This will reduce student waiting lists and provide trained workers Boise Valley Economic Partnership (BVEP). for Idaho business.

6. COLLEGE OF WESTERN IDAHO 2. EDUCATION IMPROVEMENTS: To be competitive in the world(CWI): Support funding for education wide economy and skilled labor for Idaho businesses it is important programs and appropriate facilities for in meeting the statewide goal of 60% of high school graduates the College of Western Idaho. A college eventually acquiring a certificate, 2-year or 4-year degree. The master plan details the future facility Chamber supports the Legislature’s continued implementation of needs on the Canyon County Campus education improvements. and Ada County Campus.

3. EARLY LEARNING INITIATIVES: The Chamber has supported 7. HIGHER EDUCATION PROGRAMS: Support the delivery of pre-kindergarten legislation in the past and will review early higher education programs important to the workforce development learning proposals in the Legislature. More Idaho children need to for our regional economy by public and private institutions of be ready to learn when they enter kindergarten under a program higher education in the metro area. that features parental choice, local control and collaborative 8. SCHOOL FACILITY BONDS: When necessary, review and funding. develop a recommendation on school facility bond proposals by 4. IDAHO CORE STANDARDS: These the Boise School District and the West Ada School District. education standards are the result of 9. STEM ACTION CENTER: Support the initiatives of the STEM a voluntary, state-led effort to develop Action Cnter to coordinate the statewide efforts of private industry college and career ready standards and the State Department of Education, Idaho Career Technical to increase depth of knowledge, skills Education and educators to support science, technology, and abilities of Idaho students. To be engineering and math in grades kindergarten through 12th grade. competitive in the world-wide economy, maintaining these standards are important in meeting the statewide goal of 60% of high school graduates eventually acquiring a certificate, 2-year or 10. WORKPLACE FLEXIBILITY: Support programs and seminars for chamber members highlighting the importance of workplace 4-year degree. flexibility as a strategy to enhance businesses’ competitive

ENERGY POLICIES 1. Support the exploration and development of a variety of energy sources, including hydro, natural gas, nuclear and alternative sources (wind, solar, biomass and geothermal).

4. Support the efficient use of energy through conservation and energy efficiency programs.

2. Support the generation of energy from hydro power (including support for dam relicensing) natural gas, coal, wind, solar, biomass, geothermal and nuclear.

6. Support energy-related technology innovation and educational initiatives.

3. Support transmission and distribution of energy through improving infrastructure, including construction of electrical lines and construction or extension of natural gas pipelines.

5. Support maintaining Idaho’s overall low cost and reliable supply of energy.

7. Support the periodic update of the State Energy Plan and the continued efforts of the Idaho Office of Energy Resources and its Strategic Energy Alliance.

TRANSPORTATION & MASS TRANSIT PRIORITIES BOISE AIRPORT, RAILROADS AND ECONOMIC DEVELOPMENT • Air service expansion. Terminal and facility expansion could include additional concourse and parking.

• Freight transfer facility integrating air, highway and rail.

• Improved transit access to the airport (see under VRT).

• Aviation missions at Gowen Field for the Idaho Air & Army National Guard.

ADA COUNTY HIGHWAY DISTRICT (ACHD) • Improve the One-Mile Arterial Grid System: Enhance north-south (Cole Rd. between Overland and Franklin, Maple Grove, Cloverdale) and east-west (Ustick, McMillan, Victory) mobility to a multi-lane system.

• Major Intersection Improvements: Intersections on State Street at 36th/Veterans, Collister, Pierce Park, and Glenwood/Gary.

• Downtown Boise Implementation: Conversion of selected one-way streets to two-way and enhanced bicycle and pedestrian.

• Bogus Basin Road: Completion of improvements through Ada and Boise counties leveraging the Federal Lands Access Program.

• New Roads near the Airport: Lake Hazel Extension and Orchard Extension on the west side of the Airport. Plan a new route south of the proposed third runway, providing access for economic development by connecting to the Eisenman Interchange at I-84.

IDAHO TRANSPORTATION DEPARTMENT (ITD) • Eagle Road Improvements: Completion of additional traffic lanes and turn lanes utilizing STAR funding.

• State Highway 44-State Street: Projects and corridor preservation from Glenwood/Gary west though Eagle, Star, Middleton and to Interstate I-84.

• U.S. Highway 20/26 to Caldwell: Various projects and corridor preservation from Eagle Road, west to Caldwell and Interstate I-84.

• State Highway 16 Extension: Corridor preservation for SH16 extension from US 20/26 (Chinden) to I-84 with a new interchange.

VALLEY REGIONAL TRANSIT (VRT) • Expanded Regional Public Transportation and Mass Transit Services: Support the dedicated revenue necessary to build and maintain a robust regional public transportation system.

Explore use of the railroad corridor for future mass transit.

• State Street Vision: Support the transportation investments to assure a multi-modal solution.

• Downtown Circulator: Review proposed funding alternatives, routing and vehicle type.

• Bus Rapid Transit: Review priority corridors, including State St., Fairview Ave., Vista Ave., Overland Rd., and Emerald St. • Improved Transit Access to the Airport: Enhance public transportation access to the Boise Airport from critical population centers.

MOBILITY INITIATIVES • Support investment in improved safety and mobility for non-vehicle transportation alternatives, such as pedestrian and bicycle.

• Continue to develop a regional and local streets network of safe bikeways.

• Monitor developments for autonomous vehicle transit.

• Evaluate impacts of shared vehicles on mobility, economic development and safety.

LEGISLATION AND FUNDING ISSUES • Support increased revenue to fund maintenance and system improvements for Idaho’s transportation infrastructure.

• Support multi-year reauthorization and increased revenue for the federal transportation program.

• Support Legislative authorization of voter-approved local option sales tax for public transportation. Local option could include surface transportation, economic development and major community projects.

• Support utilization of STAR (state tax anticipation revenue) funding for transportation projects.

• Review potential legislation to enable HOV lanes.

• Review potential legislation to enable autonomous vehicles (including AV transit).

CONTACT INFORMATION GOVERNOR AND LIEUTENANT GOVERNOR PHONE EMAIL Governor C.L. “Butch� Otter (R) 208-334-2100 governor@gov.idaho.gov Lieutenant Governor Brad Little (R) 208-334-2200 blittle@lgo.idaho.gov ADA COUNTY COMMISSIONERS District 1 - Jim Tibbs (R) District 2 - Rick Visser (R) District 3 - Dave Case (R)

208-287-7000 208-287-7000 208-287-7000

jtibbs@adaweb.net rvisser@adaweb.net dcase@adaweb.net

CITY MAYORS Boise - Mayor David Bieter Eagle - Mayor Stan Ridgeway Garden City - Mayor John Evans Kuna - Mayor Joe Stear Meridian - Mayor Tammy de Weerd Star - Mayor Chad Bell

208-384-4422 208-939-6813 208-472-2900 208-922-5546 208-888-4439 208-286-7247

mayor@cityofboise.org sridgeway@cityofeagle.org jevans@gardencityidaho.org jstear@cityofkuna.com mayortammy@meridiancity.org cbell@staridaho.org

COLLEGE OF WESTERN IDAHO (CWI) TRUSTEES Stan Bastian Mark Dunham Mary (M.C.) Niland Skip Smyser Emily Walton

208-562-3249 208-562-3249 208-562-3249 208-562-3249 208-562-3249

stanbastian@cwidaho.cc markdunham@cwidaho.cc mcniland@cwidaho.cc skipsmyser@cwidaho.cc emilywalton@cwidaho.cc

ADA COUNTY HIGHWAY DISTRICT (ACHD) COMMISSIONERS District 1 - Jim Hansen 208-387-6135 District 2 - Rebecca Arnold 208-387-6110 District 3 - Paul Woods 208-387-6110 District 4 - Kent Goldthorpe 208-387-6110 District 5 - Sara Baker 208-866-4068

jhansen@achdidaho.org tellus@achdidaho.org pwoods@achdidaho.org kgoldthorpe@achdidaho.org sbaker@achdidaho.org

IDAHO STATE LEGISLATORS District 14: Senator Marv Hagedorn (R) Representative Mike Moyle (R) Representative Gayann DeMordaunt (R)

208-867-5643 208-286-7842 208-938-4845

mhagedorn@senate.idaho.gov mmoyle@house.idaho.gov gdemordaunt@house.idaho.gov

District 15: Senator Fred Martin (R) Representative Lynn Luker (R) Representative: Patrick McDonald (R)

208-327-0171 208-343-0022 208-332-1176

fmartin@senate.idaho.gov lluker@house.idaho.gov pmcdonald@house.idaho.gov

District 16: Senator Grant Burgoyne (D) Representative John McCrostie (D) Representative Hy Kloc (D)

208-345-2654 208-440-8317 208-343-8465

gburgoyne@senate.idaho.gov jmccrostie@house.idaho.gov hkloc@house.idaho.gov

District 17: Senator Maryanne Jordan (D) Representative John Gannon (D) Representative Sue Chew (D)

208-859-1931 208-433-0629 208-344-0098

mjordan@senate.idaho.gov jgannon@house.idaho.gov schew@house.idaho.gov

District 18: Senator Janie Ward-Engelking (D) Representative Ilana Rubel (D) Representative Phylis King (D)

208-861-6434 208-332-1034 208-344-0202

jwardengelking@senate.idaho.gov irubel@house.idaho.gov pking@house.idaho.gov

District 19: Senator Cherie Buckner-Webb (D) Representative Mat Erpelding (D) Representative Melissa Wintrow (D)

208-861-5482 208-856-0291 208-332-1076

cbucknerwebb@senate.idaho.gov merpelding@house.idaho.gov mwintrow@house.idaho.gov

District 20: Senator Chuck Winder (R) Representative Joe Palmer (R) Representative James Holtzclaw (R)

208-853-9090 208-887-9488 208-284-9542

cwinder@senate.idaho.gov jpalmer@house.idaho.gov jholtzclaw@house.idaho.gov

District 21: Senator Cliff Bayer (R) Representative Steven Harris (R) Representative Tom Dayley (R)

208-362-5058 208-861-8638 208-562-0276

cbayer@senate.idaho.gov sharris@house.idaho.gov tdayley@house.idaho.gov

District 22: Senator Lori Den Hartog (R) Representative John Vander Woude (R) Representative Jason Monks (R)

208-779-2022 208-888-3003 208-884-8684

ldenhartog@senate.idaho.gov jvanderwoude@house.idaho.gov jmonks@house.idaho.gov

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FOR MORE INFORMATION Bill Connors, President & CEO (208) 472-5220 bconnors@boisechamber.org

Ray Stark, Senior Vice President Government & Community Relations/Events (208) 472-5225 rstark@boisechamber.org