The Senate Finance Committee has voted 8-1 to approve HB 199, allowing the state Board of Education to offer deferred compensation plans when recruiting certain top university employees, which allow the employees to reap tax benefits. The measure has been lobbied by BSU's lobbyist, former House Speaker Bruce Newcomb. "This is what I call my tool acquisition bill," Mike Rush, executive director of the state Board of Education, told the committee, saying it'd be a "tool in the toolbox that the board can use to attract highly sought-after employees." Sen. Diane Bilyeu, D-Pocatello, asked who the "highly sought-after employees" are who would benefit from such plans. "Are we primarily talking about presidents and coaches?" she asked. Rush said they're "certainly ... possibilities," but said the plans also could apply to faculty members who bring with them large research grants. "Some of our attorneys say the state board already has the ability to do this," Rush told the committee. But other attorneys said the state board needs explicit authorization, in case of lawsuits.

Sen. Brent Hill, R-Rexburg, a CPA, questioned by the committee about the tax implications of the bill, said if the employees moved elsewhere before they received their deferred compensation, they'd pay income taxes on the compensation there, rather than in Idaho. Rush said, "Our experience here is these people tend to retire in Idaho ... but we have no guarantees." Sen. Jim Hammond, R-Post Falls, said, "If they need this tool, I think we ought to allow them this opportunity. It's getting more and more challenging" to recruit top university employees, he said. Sen. Nicole LeFavour, D-Boise, who cast the only no vote, said, "I think if a person earns money, they should pay the taxes on it at the time they earn it." The bill earlier passed the House on a 58-9 vote; it now goes to the full Senate.

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