HOUSE BILL NO. 70

View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and Underline. Text to be removed has been marked with Strikethrough and Italic. How these codes are actually displayed will vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating text to be removed.

Daily Data Tracking History



H0070..........................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT INSURANCE TAX - Amends existing law to provide that the taxable
wage base for calculating the unemployment insurance tax for calendar years
2003 and 2004 shall be the taxable wage base in effect for calendar year 2002;
and to provide that the taxable wage rate in Schedule II shall be effective
for calendar years 2003 and 2004.
                                                                        
01/10    House intro - 1st rdg - to printing
01/13    Rpt prt - to Com/HuRes
01/14    Rpt out - rec d/p - to 2nd rdg
01/15    2nd rdg - to 3rd rdg
01/16    3rd rdg - PASSED - 67-3-0
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
      Kellogg, Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin,
      McKague, Meyer, Miller, Moyle, Nielsen, Raybould, Ridinger, Ring, Ringo,
      Roberts, Robison, Rydalch, Sali, Sayler, Schaefer(Schumacher), Shepherd,
      Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson,
      Tilman, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Bieter, Mitchell, Naccarato
      Absent and excused -- None
    Floor Sponsors - McKague & Trail
    Title apvd - to Senate
01/17    Senate intro - 1st rdg - to Com/HuRes
01/23    Rpt out - rec d/p - to 2nd rdg
01/24    2nd rdg - to 3rd rdg
01/27    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde,
      Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
      McKenzie, McWilliams, Noble, Noh, Pearce, Schroeder, Sorensen, Stegner,
      Stennett, Sweet, Werk
      NAYS -- None
      Absent and excused -- Richardson, Williams
    Floor Sponsors - Goedde & Cameron
    Title apvd - to House
01/27    To enrol
01/28    Rpt enrol - Sp signed
01/29    Pres signed - to Governor
02/04    Governor signed
         Session Law Chapter 2
         Effective: 01/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 70
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1350, IDAHO CODE,
  3        TO PROVIDE THAT THE TAXABLE WAGE BASE FOR CALENDAR  YEARS  2003  AND  2004
  4        SHALL  BE  THE  TAXABLE  WAGE BASE IN EFFECT FOR CALENDAR YEAR 2002 AND TO
  5        PROVIDE THAT TAXABLE WAGE RATE SCHEDULE II SHALL BE EFFECTIVE FOR CALENDAR
  6        YEARS 2003 AND 2004; DECLARING  AN  EMERGENCY  AND  PROVIDING  RETROACTIVE
  7        APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Section 72-1350, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        72-1350.  TAXABLE WAGE BASE AND TAXABLE WAGE RATES. (1)  All  remuneration
 12    for  personal services as defined in section 72-1328, Idaho Code, equal to the
 13    average annual wage in covered employment for the penultimate  calendar  year,
 14    rounded  to  the nearest multiple of one hundred dollars ($100), or the amount
 15    of taxable wage base specified in the federal unemployment tax act,  whichever
 16    is  higher,  shall be the taxable wage base for purposes of this chapter. Pro-
 17    vided however, and notwithstanding any other provision of the employment secu-
 18    rity law to the contrary, for calendar years 2003 and 2004  the  taxable  wage
 19    base  shall  be twenty-seven thousand six hundred dollars ($27,600), which was
 20    the taxable wage base in effect for calendar year 2002.
 21        (2)  All covered employers, except those eligible and  electing  the  cost
 22    reimbursement payment method, shall be assigned taxable wage rates annually by
 23    the  director in accordance with the following, provided however, and notwith-
 24    standing any other provision of the employment security law to  the  contrary,
 25    for  calendar  years  20023  and  2004  the taxable wage rates for all covered
 26    experience-rated employers shall be determined in accordance with schedule II.
 27        (3)  A desired employment security fund size shall be determined for  each
 28    calendar  year  by  calculating  from  the penultimate year, the ten (10) year
 29    average of annual benefits paid to wages covered, multiplied by one  and  one-
 30    half  (1.5).  The  resulting  ratio,  when applied to the covered wages of the
 31    penultimate year, represents the desired fund size. This calculation is  here-
 32    after referred to as the average cost multiple (ACM).
 33        (4)  The ACM shall be the ratio at the top of taxable wage rate schedule V
 34    as provided in subsection (7) of this section, and all other ratios for sched-
 35    ules  I through IX are adjusted up or down from schedule V in equal increments
 36    of .005.
 37        (5)  The taxable wage rate schedule for each calendar year shall be deter-
 38    mined by comparing the ratio of the actual balance of the employment  security
 39    fund,  section  72-1346,  Idaho  Code, and the reserve fund, section 72-1347A,
 40    Idaho Code, on September 30, to the wages  covered  in  the  penultimate  year
 41    against the taxable wage schedule ratios as provided in subsection (4) of this
 42    section.
 43        (6)  The  ratios  computed for each taxable wage rate schedule as provided
                                                                        
                                           2
                                                                        
  1    in subsection (4) of this section  shall  be  placed  with  their  appropriate
  2    schedule  at the top of the columns as provided in subsection (7) of this sec-
  3    tion, and shall represent the minimum fund level  required  for  the  specific
  4    schedule to be in effect.
                                                                        
                                           3
                                                                        
                                                                        
                                                                        
                                           4
                                                                        
  1        (8)  Each employer will be assigned a taxable wage rate from the effective
  2    taxable wage rate schedule for eligible, standard-rated and deficit employers,
  3    based  upon  the  employer's  experience as determined under the provisions of
  4    sections 72-1319, 72-1319A, 72-1319B and 72-1351, Idaho Code.
  5        (a)  Deficit employers who have been assigned a  taxable  wage  rate  from
  6        rate  class six will be assigned contribution rates equal to their taxable
  7        wage rate.
  8        (b)  All other eligible, standard-rated  and  deficit  employers  will  be
  9        assigned  contribution  rates equal to ninety-seven percent (97%) of their
 10        taxable wage rate. Provided   however,  that  for  each  calendar  year  a
 11        reserve  tax is imposed pursuant to section 72-1347A, Idaho Code, the con-
 12        tribution rates for employers assigned contribution rates pursuant to this
 13        paragraph shall be eighty percent (80%) of their taxable wage rate.
 14        (9)  Each employer shall be notified of his taxable wage  rate  as  deter-
 15    mined  for  any  calendar  year  pursuant to this section and section 72-1351,
 16    Idaho Code. Such determination shall become conclusive and  binding  upon  the
 17    employer,  unless  within  fourteen (14) days after delivery or mailing of the
 18    notice thereof to his last known address, the employer  files  an  application
 19    for redetermination, setting forth his reasons therefor. Reconsideration shall
 20    be  limited to transactions occurring subsequent to any previous determination
 21    which has become final. The employer shall be promptly notified of  the  rede-
 22    termination,  which  shall become final unless an appeal is filed within four-
 23    teen (14) days after delivery or mailing of notice to his last known  address.
 24    Proceedings  on  the appeal shall be in accordance with the provisions of sec-
 25    tion 72-1361, Idaho Code.
                                                                        
 26        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 27    declared to exist, this act shall be in full force and effect on and after its
 28    passage and approval, and retroactively to January 1, 2003.

Statement of Purpose / Fiscal Impact


               STATEMENT OF PURPOSE
                     RS12431

This bill will freeze the unemployment insurance 
taxable wage rates at schedule II for calendar years 
2003 and 2004.  If this bill is not enacted, rate 
schedule IV will be effective in calendar year 2003 
and it is projected that rate schedule V will be 
effective in calendar year 2004.  The bill also 
freezes the taxable wage base for calendar years 2003 
and 2004 at $27,600, the taxable wage base in effect 
for calendar year 2002.

                   FISCAL IMPACT

There is no impact on the State General Fund.

CONTACT
Name:   Dwight Johnson
Agency: Labor, Dept. of
Phone:  332-3570 x 3209

Statement of Purpose/Fiscal Impact            H 70