by Logan Finney, Idaho Reports

Gov. Brad Little issued his first vetoes of 2024 this week, blocking a bill to allow the state to invest in precious metals and another narrowing the jurisdiction of the public utility commission.

Lawmakers will have the opportunity when they reconvene Wednesday to override any gubernatorial vetoes with a two-thirds vote in each chamber.

Gold and Silver Investment – SB 1314

The governor’s first veto blocked a recurring bill that would allow the state treasurer to invest idle moneys in physical gold and silver, with the stated goal of hedging assets against inflation.

The treasurer can currently invest idle state funds in traditional financial instruments, like bonds.

“While the Legislature sought to provide additional flexibility for the state’s investment portfolio, we have a fiduciary responsibility to manage taxpayer dollars with the utmost care and caution,” Little wrote in his veto letter. “This legislation and its fiscal note fail to take into account the many additional costs that will be borne by taxpayers for the storage, safeguard, and purchase of commodities such as gold or silver.”

The bill was backed in part by precious metals investor Stephan Gleason, chairman of the Sound Money Defense League. The organization advocates for similar state policies across the country.

Gleason and his companies are prolific donors to Idaho Republican causes and candidates, especially those aligned with the Idaho Freedom Foundation. One of those business, Money Metals Exchange, is currently building a precious metals depository in Eagle, according to BoiseDev.

Public Utilities Commission – SB 1323

The other rejected bill would tailor the jurisdiction of the Idaho Public Utilities Commission by redefining “water corporation” to exclude those entities with systems that only deliver water to a single user that is not also regulated by the commission.

“I am vetoing this bill because it would create a carveout for water companies to operate in Idaho as a monopoly,” Little wrote “By exempting these water companies, their customers in Idaho would be without the Idaho Public Utilities Commission’s protections regarding fair, just and reasonable rates, safe and reliable service, and consumer protection.”

The bill would also clarify that homeowners associations, cooperatives, and formal water districts are not water corporations subject to PUC regulation.

Changes to Medicaid – HB398aaS

Though Little did not veto a bill that prohibits the Idaho Department of Health and Welfare from pursuing changes to the state Medicaid program without legislative approval, he did urge changes to the policy before adjournment sine die.

“I support policy that ensures the Legislature is a meaningful partner with the executive branch in our shared policy of Medicaid cost containment. However, this bill contains vague language that, when coupled with the emergency clause, will immediately result in harmful disruption to the delivery of services to thousands of Idahoans,” Little wrote.

He cited “immediate disruption” to over $100 million in directed payments to skilled nursing facilities and rate adjustments to providers, as well as behavioral health services for substance use and psychiatric disorders.

The Senate and House are scheduled to reconvene at 11am and 12pm respectively. No committee agendas were published as of press time.

The Final Bills

As of Tuesday evening, Little had yet to take up two final legislative issues. He has until 10:17am to act on the library bill, and 12:15pm to act on two appropriations bills that forbid the State Street campus sale.

The governor signed a bill that financially incentivizes judges to retire at the end of their elected terms, but had not yet signed a trailer appropriation to fund the annual judicial salary increase also in the bill.

Little also signed a bill that synonymously defines “sex” and “gender” in state code, and another that restructures the city annexation statute.

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