HOUSE BILL NO. 474
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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
]]]] 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
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