The Chair of the Committee, K. King Burnett, called the meeting to order on January 13, 2001, at which time all members of the Committee were present except Commissioners Grant Callow and Harvey Perlman. Also present were Fred H. Miller, Executive Director; William J. Pierce, Executive Director Emeritus; Boris Auerbach, Chair of the Board of Trustees of the Uniform Law Foundation; Michael Kerr, Interim Chief Administrative Officer; John M. McCabe, Legislative Director/Legal Counsel; and Commissioner William Henning from the Scope and Program Committee.

1. Report of the President

President John McClaugherty reported on the acts to be presented for ABA House of Delegates approval at the ABA mid-year meeting; the acts are the Uniform Trust Code, Parentage Act, Rules of Evidence (1999), Athlete Agents, and Arbitration. He also reported on the projected agendas for the annual meetings in 2001 and 2002 and on plans and costs for the 2001 meeting. The projected agendas are attached.

2. Report of the Chair of Executive Committee

The Chair of the Executive Committee gave a report on drafting committee meetings held or to be held during the 2000-2001 fiscal year.

The Chair of the Executive Committee also reported on dates and sites for the annual meetings for the years 2002 and 2003. The site and dates for the annual meeting in 2002 are Loews Ventanna Resort in Tucson, Arizona, from July 25-August 2, and for 2003 are the J.W. Marriott in Washington, D.C., from August 1-8.

Finally, the Chair of the Executive Committee discussed several policies designed to accelerate the preparation of final draft texts, including stricter enforcement of the March 15th deadline for the pre-annual meeting submission of acts with preliminary comments to the Chicago office, as well as the imposition of a September 15th deadline for the submission of final (styled) acts with comments.

3. Report of the Secretary

Secretary Robert Stein reported on membership changes since the last annual meeting. In addition life membership was recommended for Commissioners Richard Long of New York, Roger Morgan of Connecticut, Gerald Bepko of Indiana, Neal Ossen of Connecticut and Gene Lebrun of South Dakota. It also was recommended for Executive Director Miller, effective at the end of the 2001 annual meeting. The interim CAO will see that a notice is sent to Commissioners with unexcused absences reminding them of the attendance policy of the Conference (two unexcused absences from annual meetings are grounds for termination of membership).

4. Report of the Treasurer

Treasurer Olgesby Young reported the payment of state dues generally was excellent, but that several states had not yet paid. There was discussion whether the projected deficit for 2000-2001 due to increased expenditures should be subsidized by a contribution from the Uniform Law Foundation. A motion to cover it instead from Conference reserves was approved.

The report of the auditors was discussed and the interim CAO was requested to reply to their letter to the Executive Committee suggesting improved procedures. Finally, further discussion of the dues structure for the Conference was deferred to the 2001 annual meeting, as was discussion concerning payment of Uniform Law Foundation expenses.

5. Report of the Executive Director

The Executive Director reported on the meeting of the UCC Committee in the fall of 2000, on UCC Article 9, and on the progress of the drafting efforts involving UCC Articles 1, 2 and 2A, 3, 4 and 4A, and 7.

The Chair of the Committee on Scope and Program presented the recommendation of that Committee concerning the UCC Articles 3, 4 and 4A project, as follows: the drafting committee should meet at its scheduled meeting in February 2001 as a study committee with the observers to the project, and using the memoranda to the drafting committee and to the Committee on Scope and Program, both dated January 2, 2001, should consider whether to proceed with the project. If so, the committee should propose a final agenda of amendments for its work. The committee must consider the likelihood of uniformity of enactment of its agenda of amendments. The agenda, if agreed to, shall be presented to the Committee on Scope and Program 30 days prior to the 2001 annual meeting for consideration and action before the drafting committee may take further action. This recommendation was approved.

6. Millennium Committee

The Executive Director reported on four recommendations of the Millennium Committee for which Executive Committee action was needed.

The first was the recommendation that trustees of the Uniform Law Foundation not be appointed to serve more than two consecutive terms of not more than three years each. The Executive Committee determined that appointments should be in the discretion of the President without specific restriction.

As to the recommendation for changes in the Statement of Policy Establishing Criteria and Procedure for Designation and Consideration of Acts, the recommendation was approved with certain amendments. The new version of the policy is attached.

As to the recommendation that the Vice President be relieved of the duty to obtain from Division Chairs information and then report to the Executive Committee on the work of the committees assigned to each Division (and that §§22.2 and 28.3 of the Bylaws be amended in conformity), the Executive Committee rescinded its prior approval of this change but voted to require each Division Chair, in making the required report to the Vice President, to obtain and include in the report the views of the Enactment Plan Coordinator for each drafting committee in the Division for which the Division Chair is responsible.

As to the recommendation concerning line by line readings of acts at the annual meeting, the recommendation was approved with two corrections. The corrected recommendation is attached.

7. Health Care Information Act

The Chair of the Executive Committee reported on the status of the Health Care Information Act drafting project n view of the substantial federal regulations recently promulgated. The drafting committee will evaluate whether the project should continue and report to the Executive Committee.

8. Amendment of Constitution; Appointment of New Executive Director

The President explained the proposed amendment to §2.4 of the Constitution to permit life membership for a Commissioner who resigns to be Executive Director. The amendment was approved by the Executive Committee. The committee then approved the appointment of Commissioner William Henning of Missouri as Executive Director, to replace Executive Director Miller, effective upon Commissioner Henning's resignation as a Commissioner from Missouri as of noon on Thursday, August 16th during the 2001 annual meeting.

9. Report of the Interim Chief Administrative Officer

The Interim Chief Administrative Officer Michael Kerr reported on personnel changes in the Chicago office, job assignments of staff, personnel training, and future office operations and needs. A discussion of whether to continue the annual "red book" in light of modern technology occurred. The President was requested to appoint a committee to consider the matter and make a recommendation. A report on the future development and features of the Conference website also was given by the interim CAO.

10. Amendments to the Uniform Computer Information Transactions Act

Amendments to §§605 and 816 of the Uniform Computer Information Transactions Act to clarify the relationship between the sections were approved in accordance with §4.3(b)(3) of the Constitution.

11. Report of the Legislative Committee

The Chair of the Legislative Committee, Michael Houghton, gave a report on introductions and enactments, as well as on issues and problems that have arisen with various acts. He also reported on a proposed federal regulation which could preempt or conflict with provisions of the Uniform Trust Code. The Joint Editorial Board for Trust and Estate Acts will be requested to comment on the proposed regulation.

12. Report of the Committee on Scope and Program

The Chair of the Committee on Scope and Program submitted the report of the committee recommending the following action, all of which was approved on motion by the Executive Committee.

The Committee on Scope and Program recommends to the Executive Committee that a Study Committee be appointed to consider an Act relating to consumer debt counseling including, among other topics, whether any such act would be applicable to nonprofit counselors, how it would be applicable to interstate operators, and whether additional security for debtors' deposits is necessary.

The Committee should review current literature, determine interest in this subject by the American Bar Association and other groups; consider potential funding sources; and analyze the likelihood of enactments.

The Study Committee should be directed to report to the Committee on Scope and Program 30 days before the 2001 annual meeting.

The Committee on Scope and Program recommends to the Executive Committee that a Study Committee be appointed to consider whether an Act should be adopted to harmonize state wage codes for employment tax laws and the feasibility for enactment by the states.

The Study Committee should be directed to report to the Committee on Scope and Program 30 days before the 2001 annual meeting.

The Committee on Scope and Program recommends to the Executive Committee that the Joint Editorial Board - Uniform Real Property Acts undertake a study requested by the Department of Defense regarding enforcement of environmental covenants and that the Uniform Law Foundation accept funding for that purpose from the Department of Defense.

The JEB - Uniform Real Property Acts should be directed to report to the Committee on Scope and Program 30 days before the 2001 annual meeting.

The Committee on Scope and Program recommends to the Executive Committee that the JEB - Uniform Real Property Acts undertake a study to consider whether the Uniform Conservation Easement Act should be amended.

The Study Committee should be directed to report to the Committee on Scope and Program 30 days before the 2001 annual meeting.

In addition, the Committee on Scope and Program requested that informal inquires be made at state and federal levels relative to possible interest in some form of an election reform act, and established a plan to use the Conference website as a vehicle to solicit ideas for possible future uniform or model acts.

13. Report of Committee on Liaison with Legislative Drafting Agencies

This committee suggested that minutes of Executive Committee meetings be posted on the Conference website. A motion to post both minutes of the Executive Committee and of the Committee on Scope and Program after their finalization beginning with the mid-year 2000-2001 meetings was approved. The proposal of the committee to have the provisions of targeted acts compared with the laws of the various states was left to implementation, as feasible, by the Legislative Committee.

14. Report of Committee on International Legal Developments

The proposal of this committee to formalize the relationship between the Conference and the Office of Legal Advisor to the United States Department of State was implemented by requesting the President to transmit an expression of the interest of the Conference in working with the State Department on projects determined by the Conference to be of interest because of perceived significant impact on uniform state law or the probability that an international development may be influenced by uniform state law.

Commissioner Stein detailed international legal initiatives through the American Bar Association of possible interest to the Conference.

15. Name Change

The Executive Committee approved a change of name for the Drafting Committee on Cross Entity Mergers Act to Conversion or Merger of Different Types of Business Organizations Act.

16. Designation of Acts as Uniform or Model

The Executive Committee approved uniform law status for the proposed acts on Nonjudicial Foreclosure, Apportionment of Tort Responsibility, Estate Tax Apportionment, Testimony of Minors, Consumer Leases, Mediation, amendments to the Uniform Interstate Family Support Act, Limited Partnership, UCC Articles 1, 2 and 2A, Securities, and Conversion or Merger of Different Types of Business Organizations Act.

17. Waiver of Two Meeting Rule

The requirement acts be presented twice before promulgation by the Conference was waived for the proposed acts on Securities and amendments to the Uniform Interstate Family Support Act.

18. Uniform Law Foundation

The Chair of the Uniform Law Foundation gave his report. The year 2000 was an excellent one for contributions but not as good as to investment performance. It was agreed the trustees would consider establishing a program similar to the Fellows program of the American Bar Association.

19. Report of the Vice President

The report of the Vice President was reviewed.

20. Report of the Permanent Editorial Board for the Uniform Commercial Code

The chair of the PEB presented a report on the activities of that body.

21. Reports of the Joint Editorial Boards for Uniform Real Property Acts, for Uniform Trust and Estate Acts, on Uniform Unincorporated Organization Acts, and on Uniform Family Law Acts

These reports were received.

22. Report of the Committee on Liaison with Native American Tribes

The Executive Director presented the report of this committee. A number of positive steps have been taken, and several tribes have enacted uniform laws.

23. Discharge of the Standby Committee

The discharge or retention of standby committees was deferred until the 2001 annual meeting.

The meeting was adjourned at 11:30 a.m. on Sunday, January 14, 2001. The Executive Committee previously adjourned at 4:30 p.m. on January 13, to convene again at 8:30 a.m. on January 14, 2001.