HOUSE BILL NO. 474

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Bill Status



H0474.........................................by TRANSPORTATION AND DEFENSE
MOTOR CARRIERS - AUDITS - Amends existing law relating to motor carrier
registration and audit guidelines to transfer motor carrier audit functions
from the Idaho Transportation Department to the State Tax Commission; to
remove rulemaking authority of the Idaho Transportation Department with
respect to audit procedures; to authorize the State Tax Commission to
generate a notice of deficiency and to develop a methodology to calculate
such a notice; to provide that the State Tax Commission shall provide the
motor carrier with notice and opportunity to use the appeals process prior
to suspension of registration; and to provide that the Idaho Transportation
Department shall not reregister or permit a vehicle to operate on a trip
permit until all audit assessments, penalties and interest have been paid.
                                                                        
01/15    House intro - 1st rdg - to printing
01/16    Rpt prt - to Transp
01/27    Rpt out - rec d/p - to 2nd rdg
01/28    2nd rdg - to 3rd rdg
01/29    3rd rdg - PASSED - 65-0-5
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
      Jones, Kellogg, Kulczyk, Langford, Langhorst, Martinez, McGeachin,
      McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
      Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Robison, Rydalch,
      Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Cuddy, Lake, Roberts, Sali, Schaefer
    Floor Sponsor - Smith(24)
    Title apvd - to Senate
01/30    Senate intro - 1st rdg - to Transp
03/03    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 27-0-8
      AYES -- Andreason, Bailey, Bunderson, Burtenshaw, Calabretta,
      Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy,
      Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
      Pearce, Richardson, Schroeder, Sorensen, Stegner, Sweet, Werk
      NAYS -- None
      Absent and excused -- Brandt, Burkett, Cameron, Davis, Noble, Noh,
      Stennett, Williams
    Floor Sponsor - Keough
    Title apvd - to House
03/16    To enrol
03/17    Rpt enrol - Sp signed
03/18    Pres signed - To Governor
03/23    Governor signed
         Session Law Chapter 234
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 474
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR CARRIER REGISTRATION AND AUDIT GUIDELINES; AMENDING  SECTION
  3        49-202,  IDAHO CODE, TO PROVIDE PROPER TERMINOLOGY AND TO MAKE A TECHNICAL
  4        CORRECTION; AND AMENDING SECTION 49-439, IDAHO  CODE,  TO  TRANSFER  MOTOR
  5        CARRIER  AUDIT  FUNCTIONS  FROM THE IDAHO TRANSPORTATION DEPARTMENT TO THE
  6        STATE TAX COMMISSION, TO REMOVE RULEMAKING AUTHORITY OF THE  IDAHO  TRANS-
  7        PORTATION  DEPARTMENT  WITH  RESPECT TO AUDIT PROCEDURES, TO AUTHORIZE THE
  8        STATE TAX COMMISSION TO GENERATE A NOTICE OF DEFICIENCY AND TO  DEVELOP  A
  9        METHODOLOGY TO CALCULATE SUCH A NOTICE, TO PROVIDE THAT THE STATE TAX COM-
 10        MISSION  SHALL  PROVIDE THE CARRIER WITH NOTICE AND OPPORTUNITY TO USE THE
 11        APPEALS PROCESS PRIOR TO SUSPENSION OF REGISTRATION, TO  PROVIDE  THAT  AN
 12        APPEAL  OF  A  NOTICE  OF  DEFICIENCY  SHALL BE IN ACCORDANCE WITH CERTAIN
 13        ESTABLISHED PROCEDURES OF THE STATE TAX COMMISSION, AND  TO  PROVIDE  THAT
 14        THE  DEPARTMENT  SHALL  NOT REREGISTER OR PERMIT A VEHICLE TO OPERATE ON A
 15        TRIP PERMIT UNTIL ALL AUDIT ASSESSMENTS, PENALTIES AND INTEREST HAVE  BEEN
 16        PAID.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That  Section  49-202, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        49-202.  DUTIES OF DEPARTMENT. (1) All registration and  driver's  license
 21    records  in  the  office of the department shall be public records and open to
 22    inspection by the public  during  normal  business  hours,  except  for  those
 23    records  declared  by law to be for the confidential use of the department, or
 24    those records containing personal information subject to restrictions or  con-
 25    ditions  regarding  disclosure. If the department has contracted for a service
 26    to be provided by another entity, an additional fee shall be charged  by  that
 27    contractor whether the service is rendered during normal business hours, other
 28    than normal business hours or on weekends.
 29        (2)  In  addition  to  other  fees  required by law to be collected by the
 30    department, the department shall collect the following:
 31        (a)  For certifying a  copy  of  any  record  pertaining  to  any  vehicle
 32        license, any certificate of title, or any driver's license ......... $8.00
 33        (b)  For issuing every Idaho certificate of title .................. $8.00
 34        (c)  For  furnishing  a  duplicate  copy of any Idaho certificate of title
 35        .................................................................... $8.00
 36        (d)  For issuance or transfer of every certificate of title on  a  new  or
 37        used vehicle or other titled vehicle in an expedited manner (rush titles),
 38        in addition to any other fee required by this section ............. $15.00
 39        (e)  For  recording  a transitional ownership document, in addition to any
 40        other fee required by this section ................................ $15.00
 41        (f)  For furnishing a replacement of any receipt of registration ... $3.00
 42        (g)  For furnishing copies of registration or ownership of motor  vehicles
 43        or  driver's  license  records,  per vehicle registration, accident report
                                                                        
                                           2
                                                                        
  1        records, title or per driver's license record ...................... $4.00
  2        Additional contractor fee, not to exceed ........................... $4.00
  3        (h)  For services in searching files of vehicle  or  other  registrations,
  4        vehicle titles, or driver's licenses per hour ..................... $10.00
  5        (i)  Placing  "stop"  cards  in  vehicle registration or title files, each
  6        ................................................................... $12.00
  7        (j)  For issuance of an assigned  or  replacement  vehicle  identification
  8        number (VIN) ...................................................... $10.00
  9        (k)  For  a  vehicle  identification  number (VIN) inspection whether con-
 10        ducted by a city or county peace officer or any  other  peace  officer  or
 11        designated agent of the state of Idaho, per inspection ............. $3.00
 12        (l)  For all replacement registration stickers, each ............... $1.00
 13        (m)  For  issuing  letters  of  temporary vehicle clearance to Idaho based
 14        motor carriers .................................................... $10.00
 15        (n)  For all sample license plates, each .......................... $12.00
 16        (o)  For filing release of liability statements .................... $2.00
 17        (p)  For safety and insurance programs for  each  vehicle  operated  by  a
 18        motor carrier ...................................................... $2.00
 19        A lesser amount may be set by rule of the board.
 20        (3)  The fees required in this section shall not apply when the service is
 21    furnished  to  any federal, state, county or city peace officer when such ser-
 22    vice is required in the performance of their duties as peace officers.
 23        (4)  The department may enter into agreements with  private  companies  or
 24    public  entities  to provide the services for which a fee is collected in sub-
 25    section (2)(g) of this section. Such private contractor shall collect the  fee
 26    prescribed and remit the fee to the department. The contractor shall also col-
 27    lect and retain the additional fee charged for his services.
 28        (5)  (a) The  department  shall  pay three dollars ($3.00) of the fee col-
 29        lected by a county assessor or other agent of the department  as  provided
 30        in subsection (2)(a) through (f) of this section, and four dollars ($4.00)
 31        as  provided  in subsection (2)(g) of this section, to the county assessor
 32        or sheriff of the county or agent collecting  such  fee,  which  shall  be
 33        deposited  with  the  county  treasurer and credited to the county current
 34        expense fund. The remainder of the fees collected as provided in that sub-
 35        section shall be paid by the department to the state treasurer and  placed
 36        in the state highway fund.
 37        (b)  The  fee  collected under subsection (2)(k) of this section for a VIN
 38        inspection shall be placed in the city general fund if conducted by a city
 39        peace officer, in the county current expense fund if conducted by a county
 40        peace officer, shall be retained by the special agent authorized  to  per-
 41        form  the  inspection,  or  paid  to the state treasurer and placed to the
 42        credit of the Idaho state police if conducted by the Idaho state police or
 43        in the state highway fund if conducted by the department.
 44        (c)  The fee collected under subsection (2)(p) of this section  for  motor
 45        carriers shall be paid by the department to the state treasurer and placed
 46        in  the  state  highway  fund.  The director and the director of the Idaho
 47        state police shall jointly determine the amount to be transferred from the
 48        state highway fund to the law enforcement fund for  motor  carrier  safety
 49        programs conducted by the Idaho state police pursuant to the provisions of
 50        section 67-2901A, Idaho Code.
 51        (6)  The department as often as practicable may provide to law enforcement
 52    agencies  the record of suspensions and revocations of driver licenses via the
 53    Idaho law enforcement telecommunications system (ILETS).
 54        (7)  The department shall provide the forms prescribed  in  chapter  5  of
 55    this  title,  shall  receive and file in its office in Ada county, all instru-
                                                                        
                                           3
                                                                        
  1    ments required in chapter 5 of this title to be  filed  with  the  department,
  2    shall prescribe a uniform method of numbering certificates of title, and main-
  3    tain  in  the  department  indices for such certificates of title. All indices
  4    shall be by motor or identification number and alphabetical  by  name  of  the
  5    owner.
  6        (8)  The department shall file each registration received under a distinc-
  7    tive registration number assigned to the vehicle and to the owner thereof.
  8        (9)  The  department  shall not renew a driver's license or identification
  9    card when fees required by law have not been  paid  or  where  fees  for  past
 10    periods  are  due,  owing and unpaid including insufficient fund checks, until
 11    those fees have been paid.
 12        (10) The department shall not grant the registration of a vehicle when:
 13        (a)  The applicant is not entitled to registration under the provisions of
 14        this title; or
 15        (b)  The applicant has neglected or refused to furnish the department with
 16        the information required in the appropriate form or reasonable  additional
 17        information required by the department; or
 18        (c)  The  fees  required by law have not been paid, or where fees for past
 19        registration periods are due, owing and unpaid including insufficient fund
 20        checks.
 21        (11) The department or its authorized agents have the authority to request
 22    any person, to submit to medical, vision, highway, or written examinations, to
 23    protect the safety of the public upon the  highways.  The  department  or  its
 24    authorized  agents  may  exercise such authority based upon evidence which may
 25    include, but is not limited to, observations made.
 26        (12) The department shall revoke the registration of any vehicle:
 27        (a)  Which the department shall determine is unsafe or unfit to  be  oper-
 28        ated or is not equipped as required by law;
 29        (b)  Whenever  the  person  to  whom the registration card or registration
 30        plate has been issued shall make or permit to be made any unlawful use  of
 31        the same or permit their use by a person not entitled thereto;
 32        (c)  For  any  violation of vehicle registration requirements by the owner
 33        or operator in the current or past registration periods;
 34        (d)  Whenever a motor carrier requests revocation, or whenever  an  inter-
 35        state carrier's federal operating authority has been revoked;
 36        (e)  For  failure of the owner or operator to file the reports required or
 37        nonpayment of audit assessments or fees assessed against the owner by  the
 38        department  or the state tax commission pursuant to audit under the provi-
 39        sions of section 49-439, Idaho Code;
 40        (f)  Identified by any city or county administering a program  established
 41        by  ordinance for the inspection and readjustment of motor vehicles (which
 42        program is part of an approved state implementation plan adopted  by  both
 43        the  state  and  federal  governments under 42 USC section 7410) as having
 44        failed to comply  with  an  ordinance  requiring  motor  vehicle  emission
 45        inspection  and readjustment; provided that no vehicle shall be identified
 46        to the department under this subsection (f) unless:
 47             (i)   The city or county certifies to the department that  the  owner
 48             of  the  motor  vehicle has been given notice and had the opportunity
 49             for a hearing  concerning  compliance  with  the  ordinance  and  has
 50             exhausted  all  remedies  and  appeals from any determination made at
 51             such hearing; and
 52             (ii)  The city or county reimburses the  department  for  all  direct
 53             costs associated with the registration revocation procedure.
 54        (13) The department shall not reregister or permit a vehicle to operate on
 55    a special trip permit until all fees, penalties and interest have been paid.
                                                                        
                                           4
                                                                        
  1        (14) The  department shall institute educational programs, demonstrations,
  2    exhibits and displays.
  3        (15) The department shall cancel a driver's license or identification card
  4    when fees required by law have not been paid or where fees are due, owing  and
  5    unpaid including insufficient fund checks, until those fees have been paid.
  6        (16) The  department  shall examine persons and vehicles by written, oral,
  7    vision and skills tests without compulsion except as provided by law.
  8        (17) The department shall employ expert and special help as needed in  the
  9    department.
 10        (18) The  department  shall  compile  accident  statistics and disseminate
 11    information relating to those statistics.
 12        (19) The department shall cooperate with the United States in the elimina-
 13    tion of road hazards, whether of a physical, visual or mental character.
 14        (20) The department shall place and maintain traffic-control devices, con-
 15    forming to the board's manual and specifications, upon all state  highways  as
 16    it  shall  deem  necessary to indicate and to carry out the provisions of this
 17    title or to regulate, warn, or guide traffic. No local authority  shall  place
 18    or maintain any traffic-control device upon any highway under the jurisdiction
 19    of  the  department  except  by the latter's permission, except where the duly
 20    elected officials of an incorporated city have established speed limits  lower
 21    than  those  set by the department on the portion of state highways, excluding
 22    controlled-access and interstate  highways,  that  pass  through  residential,
 23    urban  or business districts within the jurisdiction of the incorporated city.
 24    The placement and maintenance of such a  traffic-control  device  by  a  local
 25    authority shall be made according to the board's manual and specifications for
 26    a uniform system of traffic-control devices.
 27        (21) The  department  may  conduct an investigation of any bridge or other
 28    elevated structure constituting a part of a highway, and if it shall find that
 29    the structure cannot with safety to itself withstand vehicles traveling  at  a
 30    speed  otherwise permissible under this title, shall determine and declare the
 31    maximum speed of vehicles which the structure can safely withstand, and  shall
 32    cause  or  permit  suitable  signs stating the maximum speed to be erected and
 33    maintained before each end of the structure.
 34        (22) Whenever the department shall determine on the basis of an  engineer-
 35    ing  and  traffic  investigation  that slow speeds on any highway or part of a
 36    highway impede the normal and reasonable movement of traffic,  the  department
 37    may  determine  and  declare a minimum speed limit below which no person shall
 38    drive a vehicle except when necessary for safe operation or in compliance with
 39    law, and that limit shall be effective when posted upon appropriate  fixed  or
 40    variable  signs, except in cases where the duly elected officials of an incor-
 41    porated city have established speed limits lower than those set by the depart-
 42    ment on portions of state highways, excluding controlled-access and interstate
 43    highways, that pass through residential, urban or  business  districts  within
 44    the jurisdiction of the incorporated city.
 45        (23) The  department shall regulate or prohibit the use of any controlled-
 46    access highway by any class or kind of traffic which is found to be incompati-
 47    ble with the normal and safe movement of traffic.
 48        (24) The department shall erect and maintain  traffic-control  devices  on
 49    controlled-access highways on which any prohibitions are applicable.
 50        (25) Wherever  a  highway  crosses one (1) or more railroads at grade, the
 51    department or local authorities within their  respective  jurisdictions  shall
 52    place  and  maintain  stop  signs, directing vehicular traffic approaching the
 53    crossing to come to a full stop prior to  entering the crossing at  all  rail-
 54    road  crossings  where  electric  or  mechanical warning signals do not exist.
 55    Placement of these stop signs shall be mandatory except when in the determina-
                                                                        
                                           5
                                                                        
  1    tion of public highway agencies the existence of stop signs at a given  cross-
  2    ing would constitute a greater hazard than their absence based on a recognized
  3    engineering study.
  4        Nothing  in this subsection shall be construed as granting immunity to any
  5    railroad company as to liability, if any, for an accident which might occur at
  6    a crossing where stop signs are erected and in place, but liability,  if  any,
  7    shall  be determined as provided by law. Liability on the part of governmental
  8    authorities on account of absence of any stop sign  at  a  crossing  shall  be
  9    determined as provided by law.
 10        (26) The  department  and  local  authorities  are authorized to determine
 11    those portions of any highway under their respective jurisdictions where over-
 12    taking and passing or driving on the left side of the roadway would  be  espe-
 13    cially hazardous and may by appropriate signs or markings on the roadway indi-
 14    cate  the  beginning  and end of those zones and when signs or markings are in
 15    place and clearly visible to an ordinarily observant person, every driver of a
 16    vehicle shall obey those directions.
 17        (27) The department and local authorities in  their  respective  jurisdic-
 18    tions  may in their discretion issue special permits authorizing the operation
 19    upon a highway of traction engines or  tractors  having  movable  tracks  with
 20    transverse corrugations upon the periphery of the movable tracks or farm trac-
 21    tors  or  other  farm  machinery,  the operation of which upon a highway would
 22    otherwise be prohibited under this title or title 40, Idaho Code.
 23        (28) The department and local highway authorities within their  respective
 24    jurisdictions may place official traffic-control devices prohibiting, limiting
 25    or  restricting  the  stopping, standing or parking of vehicles on any highway
 26    where such stopping, standing or parking is dangerous to those using the high-
 27    way or where the stopping, standing or parking of vehicles  unduly  interferes
 28    with the free movement of traffic thereon.
 29        (29) On  any  informational  material printed after July 1, 1995, by or at
 30    the order of the department and distributed to counties, school  districts  or
 31    individuals  for the purpose of assisting a person to successfully pass a dri-
 32    ver's license test, the department shall include material  about  the  state's
 33    open  range  law  and responsibilities, liabilities and obligations of drivers
 34    driving in the open range.
                                                                        
 35        SECTION 2.  That Section 49-439, Idaho Code, be, and the  same  is  hereby
 36    amended to read as follows:
                                                                        
 37        49-439.  AUDIT  GUIDELINES.  (1) The state tax commission on behalf of the
 38    department may audit an owner of motor vehicles subject to  fees  pursuant  to
 39    this  chapter.  once every four (4) years unless probable cause, as defined by
 40    department rule, exists that the owner has not paid fees due pursuant to  this
 41    chapter  or  has underreported or underpaid fees due pursuant to this chapter.
 42    An owner selected for audit more frequently than the four (4) years  may  have
 43    the  audit  selection  reviewed  for  determination of the absence of probable
 44    cause by the district court of the county where the owner resides or where the
 45    owner's place of business is located or in Ada County, at  the  discretion  of
 46    the  owner. The department shall promulgate rules outlining its procedures for
 47    audit selection, assignment and inventory. Any owner of  motor  vehicles   who
 48    has  been subjected to an audit by the department that has not been in compli-
 49    ance with the provisions of this section or rules promulgated pursuant thereto
 50    may recover attorney's  fees and costs as may be determined by a court or  may
 51    receive  his  attorney's  fees  and  costs  if granted, all or in part, by the
 52    director all in accordance with section 12-117, Idaho Code.
 53        (2)  Every owner whose fees are computed as specified in section 49-434 or
                                                                        
                                           6
                                                                        
  1    49-435, Idaho Code, except those registering under subsection (8)(c)  of  sec-
  2    tion  49-434, Idaho Code, for over fifty thousand (50,000) miles driven, shall
  3    maintain records and permit the department state tax commission to inspect the
  4    records upon request to substantiate that the actual miles traveled, if  using
  5    a  mileage  schedule  in  subsection (8)(c) of section 49-434, Idaho Code, are
  6    less than the maximum mileage schedule.
  7        (3)  When the records are maintained outside this state by owners  engaged
  8    in  transportation  in  this  state,  the owner shall reimburse the department
  9    state tax commission for reasonable expenses incurred by the department  state
 10    tax  commission  in  making conducting audits of those records and accounts at
 11    the out-of-state location. The owner or the department  state  tax  commission
 12    may  request  that the records be presented at a place within the state desig-
 13    nated by the department state tax commission. The records must be presented by
 14    a representative of the owner who is familiar with  the  records  and  who  is
 15    responsible for the safekeeping of the records.
 16        (4)  Every  owner is required to maintain records for the current year and
 17    the three (3) years immediately preceding. If an  assessment  has  been  made,
 18    such  fees audit assessment may be collected by a proceeding in court within a
 19    period of three (3) years after the assessment or a final order entered pursu-
 20    ant to subsection (7) of this section.
 21        (5)  An owner who fails to maintain records as required by the  provisions
 22    of  this  section  may  have the registration of all vehicles registered under
 23    section 49-434 or 49-435, Idaho Code, suspended until such  time  as  adequate
 24    records  as  required  by  the provisions of this section are provided. In the
 25    event that the owner does not produce records, the department state  tax  com-
 26    mission  may assess a fee generate a notice of deficiency based on an estimate
 27    of the operation. The department state tax commission shall  promulgate  rules
 28    specifying  the  develop  a methodology to be used to assess a fee calculate a
 29    notice of deficiency based on an estimate of the operation.  That  methodology
 30    shall  be  in accordance with the international registration plan and interna-
 31    tional fuel tax agreement guidelines.
 32        (6)  The state tax commission shall provide the  carrier  with  notice  of
 33    deficiency  and  the opportunity to use the appeals process prior to a suspen-
 34    sion. An owner may contest a notice of deficiency made by the state  tax  com-
 35    mission within thirty (30) days from receipt of the notice by filing an appeal
 36    in  accordance  with sections 63-3045, 63-3045B, 63-3047, 63-3048 and 63-3049,
 37    Idaho Code.
 38        (7)  An owner, as identified by the state tax commission, who fails to pay
 39    any fees audit assessment due is subject to suspension  of  vehicle  registra-
 40    tions. A reinstatement fee of forty dollars ($40.00) shall be imposed in addi-
 41    tion  to  a penalty of ten percent (10%) of the amount of fee audit assessment
 42    determined to be due, plus interest of one percent (1%) of the amount  of  the
 43    fee audit assessment due for each month or fraction thereof after the original
 44    registration  fee  became  due.  An  order suspending the vehicle registration
 45    shall be mailed to the owner by the department. The suspension shall  be  can-
 46    celed  if the payment due is made, plus penalty and interest, along with a the
 47    reinstatement fee of forty dollars ($40.00) per carrier  within  fifteen  (15)
 48    days  after  receipt  of the suspension order. The department may remit all or
 49    any part of the penalty and interest if satisfied that the  delay  was  excus-
 50    able. The department shall promulgate rules specifying when the penalty may be
 51    held  in abeyance or be forgiven. The reinstatement fees shall be deposited to
 52    the state highway account. The owner shall have the right to appeal  the  sus-
 53    pension by petitioning the department for a hearing within ten (10) days after
 54    receipt  of  the  suspension order. If the suspension is subsequently canceled
 55    pursuant to the appeal, the reinstatement fee shall not be due The  department
                                                                        
                                           7
                                                                        
  1    shall not reregister or permit a vehicle to operate on a trip permit until all
  2    audit assessments, penalties and interest have been paid.
  3        (7)  An  owner  may  contest  an  assessment made by the department within
  4    thirty (30) days from receipt of the assessment by filing an appeal  with  the
  5    department.  Upon  receipt of an appeal, the director or his authorized repre-
  6    sentative shall schedule an informal conference between the owner and a repre-
  7    sentative of the department. The informal conference must be conducted  within
  8    twenty (20) days from the date of receipt of notice of intent to appeal by the
  9    owner.  The  owner  and  the representative of the department shall reduce all
 10    conclusions, agreements and decisions to writing and the written report of the
 11    results of that conference shall be provided to the director within  ten  (10)
 12    days.  If  the  results of the informal conference are not satisfactory to the
 13    owner, he may continue with the appeal by informing the director  in  writing,
 14    and  the  director  or  his  authorized representative shall appoint a hearing
 15    officer to conduct a contested case hearing in  accordance  with  chapter  52,
 16    title  67, Idaho Code. The hearing officer may subpoena witnesses and evidence
 17    and administer oaths. The hearing officer shall prepare  written  findings  of
 18    fact and conclusions of law for the director or his authorized representative.
 19    Upon  receipt  of findings of fact and conclusions of law, the director or his
 20    authorized representative shall issue a final order  affirming,  modifying  or
 21    reversing  the  original assessment. All final orders rendered by the director
 22    or his authorized representative shall be appealable in accordance with  chap-
 23    ter 52, title 67, Idaho Code.

Statement of Purpose / Fiscal Impact


                   STATEMENT  OF  PURPOSE
                         RS 13491

This legislation will amend Section 49-439, Idaho Code, to 
allow transfer of the ITD Motor Carrier Services Audit Unit 
to the State Tax Commission (STC) in FY05.  The audit unit 
is currently being transferred using a Memorandum of Understanding 
(MOU) for FY '04.  Legislation is needed to permanently transfer 
these four auditors and one half time clerical position to STC as 
well as the appropriation for related operating expenses.  
Additionally, the appeal and collection processes of the two 
departments should be aligned.

                         FISCAL  IMPACT

The Fuel Tax function at the State Tax Commission is funded through 
dedicated highway funds. The permanent program transfer is reflected 
as a base reduction in the Idaho Transportation Department's FY05 
Appropriation Request.  The State Tax Commission has reflected this 
program transfer as an enhancement in their FY05 Appropriation Request.  
Their total enhancement is $14,900 higher than ITD's base reduction, 
due to the reclassification, and subsequent upward pay grade adjustment, 
of 3 of the 4 audit positions, in order to align those positions with 
existing STC audit staff classifications. 

The transfer of the audit positions is shown as a reduction to ITD's 
FY05 appropriation request in the following amounts:

Personnel             $223,100
Operating             $ 29,400
Total                 $252,500

CONTACT   
Name:     Jennifer Finke
Agency:   Idaho Transportation
Phone:    334-8608

Statement of Purpose/Fiscal Impact                            H 474