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H0407.......................................by COMMERCE AND HUMAN RESOURCES UNEMPLOYMENT BENEFITS - Amends existing law to revise conditions when a reserve tax may be imposed; to provide additional methods for charging benefits attributable to cost reimbursement employers under the Employment Security Law; to provide for repayment of any benefits received as a result of having willfully made a false statement or willfully failed to report a material fact; to define "employment security information" under the Public Records Act; to provide that the identity of an informant who reports a suspected violation of the Employment Security Law to the Department of Commerce and Labor under an assurance of confidentiality shall not be disclosed; to clarify that the State Tax Commission and the Department of Commerce and Labor can exchange certain information; and to provide that amounts owed for penalty and interest on debts owed to the State Tax Commission or the Department of Commerce and Labor may be offset against refunds owed to the debtor by either agency. 01/18 House intro - 1st rdg - to printing 01/19 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 407 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1347A, IDAHO 3 CODE, TO REVISE CONDITIONS WHEN A RESERVE TAX MAY BE IMPOSED; AMENDING 4 SECTION 72-1349A, IDAHO CODE, TO PROVIDE ADDITIONAL METHODS FOR CHARGING 5 BENEFITS ATTRIBUTABLE TO COST REIMBURSEMENT EMPLOYERS; AMENDING SECTION 6 72-1366, IDAHO CODE, TO PROVIDE FOR REPAYMENT OF ANY BENEFITS RECEIVED AS 7 A RESULT OF HAVING WILLFULLY MADE A FALSE STATEMENT OR WILLFULLY FAILED TO 8 REPORT A MATERIAL FACT; AMENDING SECTION 9-340C, IDAHO CODE, TO DEFINE 9 EMPLOYMENT SECURITY INFORMATION AND TO PROVIDE THAT THE IDENTITY OF AN 10 INFORMANT WHO REPORTS A SUSPECTED VIOLATION OF THE EMPLOYMENT SECURITY LAW 11 TO THE DEPARTMENT OF COMMERCE AND LABOR UNDER AN ASSURANCE OF CONFIDENTI- 12 ALITY SHALL NOT BE DISCLOSED; AMENDING SECTION 63-3077A, IDAHO CODE, TO 13 CLARIFY THAT THE STATE TAX COMMISSION AND THE DEPARTMENT OF COMMERCE AND 14 LABOR MAY EXCHANGE CERTAIN INFORMATION AND TO PROVIDE THAT AMOUNTS OWED 15 FOR PENALTY AND INTEREST ON DEBTS OWED TO THE STATE TAX COMMISSION OR THE 16 DEPARTMENT OF COMMERCE AND LABOR MAY BE OFFSET AGAINST REFUNDS OWED TO THE 17 DEBTOR BY EITHER AGENCY AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN 18 EMERGENCY, PROVIDING RETROACTIVE APPLICATION AND PROVIDING EFFECTIVE 19 DATES. 20 Be It Enacted by the Legislature of the State of Idaho: 21 SECTION 1. That Section 72-1347A, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 72-1347A. EMPLOYMENT SECURITY RESERVE FUND -- SPECIAL ADMINISTRATION 24 FUND. (1) There is established in the state treasury a special trust fund, 25 separate and apart from all other public funds of this state, to be known as 26 the employment security reserve fund, hereinafter "reserve fund." Except as 27 provided herein, all proceeds from the reserve tax defined in subsection (2) 28 of this section shall be paid into the reserve fund. The moneys in the reserve 29 fund may be used by the director for loans to the employment security fund, 30 section 72-1346, Idaho Code, as security for loans from the federal unemploy- 31 ment insurance trust fund, and for the repayment of any interest bearing 32 advances, including interest, made under title XII of the social security act, 33 42 USC 1321 through 1324, and shall be available to the director for expendi- 34 ture in accordance with the provisions of this section. The state treasurer 35 shall be the custodian of the reserve fund and shall invest said moneys in 36 accordance with law. The state treasurer shall disburse the moneys from the 37 reserve fund in accordance with the directions of the director. 38 (2) A reserve tax is imposed on all covered employers required to pay 39 contributions pursuant to section 72-1350, Idaho Code, except deficit employ- 40 ers who have been assigned a taxable wage rate from deficit rate class six 41 pursuant to section 72-1350(8)(a), Idaho Code. The reserve tax shall be due 42 and payable at the same time and in the same manner as contributions. If the 43 reserve fund is less than one percent (1%) of state taxable wages in the 2 1 penultimate year as of September 30 of the preceding calendar year, the 2 reserve tax rate for all eligible, standard-rated and deficit employers shall 3 be equal to the taxable wage rate then in effect less the assigned contribu- 4 tion rate and training tax rate. The provisions of this chapter which apply to 5 the payment and collection of contributions also apply to the payment and col- 6 lection of the reserve tax, including the same calculations, assessments, 7 method of payment, penalties, interest, costs, liens, injunctive relief, col- 8 lection procedures and refund procedures. In the administration of the provi- 9 sions of this section and the collection of the reserve tax, the director is 10 granted all rights, authority, and prerogatives granted the director under the 11 provisions of this chapter. Moneys collected from an employer delinquent in 12 paying contributions and reserve taxes shall first be applied to pay any pen- 13 alty and interest imposed pursuant to the provisions of this chapter and shall 14 then be applied pro rata to pay delinquent contributions to the employment 15 security fund, section 72-1346, Idaho Code, and delinquent reserve taxes to 16 the reserve fund pursuant to this section. Any interest and penalties col- 17 lected pursuant to this subsection shall be paid into the state employment 18 security administrative and reimbursement fund, section 72-1348, Idaho Code, 19 and any interest or penalties refunded under this subsection shall be paid out 20 of that same fund. Reserve taxes paid pursuant to this subsection may not be 21 deducted in whole or in part by any employer from the wages of individuals in 22 its employ. All reserve taxes collected pursuant to this subsection shall be 23 deposited in the clearing account of the employment security fund, section 24 72-1346, Idaho Code, for clearance only and shall not become part of such 25 fund. After clearance, the moneys shall be deposited in the reserve fund 26 established in subsection (1) of this section. No reserve tax shall be imposed 27 for calendar year 2006 or for any calendar year thereafter if, as of September 28 30 of the preceding calendar year, the balance of the reserve fund equals or 29 exceeds one percent (1%) of the state taxable wages for the penultimate calen- 30 dar year, or exceeds forty-nine percent (49%) of the actual balance of the31employment security fund, section 72-1346, Idaho Code. 32 (3) The interest earned from investment of the reserve fund shall be 33 deposited in a fund established in the state treasurer's office, to be known 34 as the department of commerce and labor special administration fund, hereinaf- 35 ter "special administration fund." The moneys in the special administration 36 fund shall be held separate and apart from all other public funds of this 37 state. The state treasurer shall be the custodian of this fund and may invest 38 said moneys in accordance with law. Any interest earned on said moneys shall 39 be deposited in the special administration fund. In the absence of a specific 40 appropriation, the moneys in the special administration fund are perpetually 41 appropriated to the director and may be expended with the approval of the 42 advisory council appointed pursuant to section 72-1336, Idaho Code, for costs 43 related to programs administered by the department. The director shall report 44 annually to the joint finance-appropriations committee and the advisory coun- 45 cil the expenditures and disbursements made from the fund during the preceding 46 fiscal year, and the expenditures and disbursements and commitments made dur- 47 ing the current fiscal year to date. 48 (4) Administrative costs related to the reserve fund and the special 49 administration fund shall be paid from federal administrative grants received 50 under title III of the social security act, to the extent permitted by federal 51 law, and then from the special administration fund. 52 SECTION 2. That Section 72-1349A, Idaho Code, be, and the same is hereby 53 amended to read as follows: 3 1 72-1349A. FINANCING OF BENEFIT PAYMENTS BY NONPROFIT ORGANIZATIONS AND 2 GOVERNMENTAL ENTITIES. (1) Benefits paid to employees of governmental entities 3 and nonprofit organizations shall be financed in accordance with the provi- 4 sions of this section. 5 A group of such organizations or entities may elect, with the approval of 6 the director, to act as a group in fulfilling the requirements of this chap- 7 ter. 8 (2) Liability for contributions and election of reimbursements. A non- 9 profit organization or governmental entity shall pay contributions under the 10 provisions of section 72-1349, Idaho Code, unless it elects, in accordance 11 with this section to pay to the director an amount equal to the full amount of 12 regular benefits paid and the amount paid for extended benefits for which the 13 department is not reimbursed by the federal government, for any reason includ- 14 ing, but not limited to, payments made as a result of a determination or pay- 15 ments erroneously paid or paid as a result of a determination of eligibility 16 which is subsequently reversed if said payment or any portion thereof was made 17 as a result of wages earned in the employ of such organization or entity. Any 18 sums recovered by the department from a claimant as a result of said payments 19 shall be credited to the account of the nonprofit organization or governmental 20 entity which reimbursed the fund for the payment of said benefits. Where such 21 benefits are paid utilizing wages paid by two (2) or more employers, the por- 22 tion of benefits to be repaid by the organization or entity shall be its pro- 23 portionate share. This shall be computed on the basis of the relationship 24 between wages utilized which were earned for services performed for such orga- 25 nization or entity and the total wages utilized in paying such benefits. 26 (3) Any nonprofit organization or governmental entity may elect to become 27 liable for payments in lieu of contributions, provided it files with the 28 director a written notice of election not later than thirty (30) days prior to 29 the beginning of any taxable year or within thirty (30) days after the date of 30 the final determination that such organization or entity is subject to this 31 chapter. Such election shall be effective for not less than two (2) full tax- 32 able years after the election is made, and will continue to be in effect 33 until terminated. The organization or entity must file with the director a 34 written notice of termination of such election not later than thirty (30) days 35 prior to the beginning of the taxable year for which such termination shall 36 first be effective. The director may, in his discretion, terminate an elec- 37 tion as provided in this section or extend the period within which a notice of 38 election or a notice of termination must be filed. The director shall notify 39 each nonprofit organization and governmental entity of any determination he 40 makes of its status as an employer and of the effective date of any election 41 which it makes and of any termination of such election. 42 (4) Reimbursement payments. Payments in lieu of contributions shall be 43 made in accordance with the provisions of this subsection, including either 44 paragraph (a) or paragraph (b). 45 (a) At the end of each calendar quarter, or at the end of any other 46 period as determined by the director, the director shall bill each organi- 47 zation or entity (or group of organizations or entities) which has elected 48 to make payments in lieu of contributions for an amount equal to the full 49 amount of regular benefits paid, and the amount paid for extended benefits 50 for which the department is not reimbursed by the federal government, if 51 paid as a result of wages earned in the employ of such organization or 52 entity. 53 (b) Payment in advance. Nonprofit organizations or governmental entities 54 may elect to make payments in lieu of contributions in advance of actual 55 billing for payment costs. Advance payments shall be made as follows: At 4 1 the end of each calendar quarter, the nonprofit organization or governmen- 2 tal entity shall pay one percent (1%) of its total quarterly payroll 3 unless the director determines that a lesser percentage will cover the 4 cost of payment of benefits to the employees of said employer. For pur- 5 poses of this section, the total quarterly payroll for school districts 6 shall be computed based upon only those school districts which have 7 elected cost reimbursement status. Such payments shall become due and pay- 8 able within thirty (30) days following the quarter ending. 9 At the end of such taxable year, the director shall compute the bene- 10 fit costs attributable to the employer as provided in subsection (2) of 11 this section. The director will then debit the employer's account with 12 these costs. When payments exceed benefit costs, either the employer will 13 be credited on subsequent benefit costs with the overpayment or, at the 14 director's discretion, the overpayment will be refunded to the employer. 15 When payments are not sufficient to pay benefit costs, either the employer 16 will be billed the additional amount necessary to pay such costs or, at 17 the director's discretion, the employer's advance payment rate for the 18 next taxable year will be set at a rate that will cover such costs. 19 (5) Bond requirements. Any nonprofit organization that elects to become 20 liable for payments in lieu of contributions may be required to obtain and 21 deposit with the director a surety bond approved by the director. The amount 22 of the bond shall be determined by the director on the basis of potential lia- 23 bility for benefit costs of each employing nonprofit organization. Such bond 24 shall be in force for a period of not less than two (2) years, and shall be 25 renewed not less frequently than two (2) year intervals for as long as the 26 organization continues to be liable for payments in lieu of contributions. The 27 director shall require adjustments to be made in the bond filed as deemed 28 appropriate. When upward adjustments are required, the adjusted bond shall be 29 filed within thirty (30) days of the date notice of the required adjustment 30 was mailed. Failure by an organization covered by such bond to pay the full 31 amount of payments due, together with interest and penalties, as provided in 32 section 72-1354, Idaho Code, shall render the surety liable on said bond to 33 the extent of the bond, as though the surety was a liable organization. 34 (6) Failure to pay timely. If any nonprofit organization or governmental 35 entity is delinquent in making payments in lieu of contributions, the director 36 may terminate such employer's election to make payments in lieu of contribu- 37 tions as of the beginning of the next taxable year, and such termination shall 38 be effective for that and the next taxable year. Any nonprofit organization or 39 governmental entity becoming delinquent in making payments in lieu of contri- 40 butions shall be subject to the same penalty provisions as any other covered 41 employer as provided in this chapter. 42 (7) Appeals procedure. Nonprofit organizations and governmental entities 43 making payments in lieu of contributions may appeal a determination made pur- 44 suant to this section as provided in section 72-1361, Idaho Code. 45 (8) In the payment of any payments in lieu of contributions a fractional 46 part of a dollar shall be disregarded unless it amounts to fifty cents (50¢) 47 or more, in which case it shall be increased to one dollar ($1.00). 48 SECTION 3. That Section 72-1366, Idaho Code, be, and the same is hereby 49 amended to read as follows: 50 72-1366. PERSONAL ELIGIBILITY CONDITIONS. The personal eligibility condi- 51 tions of a benefit claimant are that: 52 (1) The claimant shall have made a claim for benefits and provided all 53 necessary information pertinent to eligibility. 5 1 (2) The claimant shall have registered for work and thereafter reported 2 to a job service office or other agency in a manner prescribed by the direc- 3 tor. 4 (3) The claimant shall have met the minimum wage requirements in his base 5 period as provided in section 72-1367, Idaho Code. 6 (4) During the whole of any week with respect to which he claims benefits 7 or credit to his waiting period, the claimant was: 8 (a) Able to work, available for suitable work, and seeking work; pro- 9 vided, however, that no claimant shall be considered ineligible for fail- 10 ure to comply with the provisions of this subsection if: (i) such failure 11 is due to the claimant's illness or disability which occurs after he has 12 filed a claim and during such illness or disability, the claimant does not 13 refuse or miss suitable work that would have provided wages greater than 14 one-half (1/2) of the claimant's weekly benefit amount; or (ii) such fail- 15 ure is due to compelling personal circumstance, provided that such failure 16 does not exceed a minor portion of the claimant's workweek and during 17 which time the claimant does not refuse or miss suitable work that would 18 have provided wages greater than one-half (1/2) of the claimant's weekly 19 benefit amount; and 20 (b) Living in a state, territory, or country that is included in the 21 interstate benefit payment plan or that is a party to an agreement with 22 the United States or the director with respect to unemployment insurance. 23 (5) The claimant's unemployment is not due to the fact that he left his 24 employment voluntarily without good cause connected with his employment, or 25 that he was discharged for misconduct in connection with his employment. 26 (6) The claimant's unemployment is not due to his failure without good 27 cause to apply for available suitable work or to accept suitable work when 28 offered to him. The longer a claimant has been unemployed, the more willing he 29 must be to seek other types of work and accept work at a lower rate of pay. 30 (7) In determining whether or not work is suitable for an individual, the 31 degree of risk involved to his health, safety, morals, physical fitness, expe- 32 rience, training, past earnings, length of unemployment and prospects for 33 obtaining local employment in his customary occupation, the distance of the 34 work from his residence, and other pertinent factors shall be considered. No 35 employment shall be deemed suitable and benefits shall not be denied to any 36 otherwise eligible individual for refusing to accept new work or to hold him- 37 self available for work under any of the following conditions: 38 (a) If the vacancy of the position offered is due directly to a strike, 39 lockout, or other labor dispute; 40 (b) If the wages, hours, or other conditions of the work offered are 41 below those prevailing for similar work in the locality of the work 42 offered; 43 (c) If, as a condition of being employed, the individual would be 44 required to join a company union or to resign from or refrain from joining 45 any bona fide labor organization. 46 (8) No claimant who is otherwise eligible shall be denied benefits for 47 any week due to an inability to comply with the requirements contained in sub- 48 sections (4) and (6) of this section, if: 49 (a) The claimant is a participant in a program sponsored by title I of 50 the workforce investment act and attends a job training course under that 51 program; or 52 (b) The claimant attends a job training course authorized pursuant to the 53 provisions of section 236(a)(1) of the trade act of 1974 or the North 54 American free trade agreement implementation act. 55 (c) The claimant lacks skills to compete in the labor market and attends 6 1 a job training course with the approval of the director. The director may 2 approve job training courses that meet the following criteria: 3 (i) The purpose of the job training is to teach the claimant skills 4 that will enhance the claimant's opportunities for employment; and 5 (ii) The job training can be completed within one (1) year, except 6 that this requirement may be waived pursuant to rules that the direc- 7 tor may prescribe. 8 This subsection shall apply only if the claimant submits with each claim 9 report a written certification from the training facility that the claimant is 10 attending and satisfactorily completing the job training course, or demon- 11 strates good cause for failure to attend the job training. 12 (9) No claimant who is otherwise eligible shall be denied benefits under 13 subsection (5) of this section for leaving employment to attend job training 14 pursuant to subsection (8) of this section, provided that the claimant 15 obtained the employment after enrollment in or during scheduled breaks in the 16 job training course, or that the employment was not suitable. For purposes of 17 this subsection, the term "suitable employment" means work of a substantially 18 equal or higher skill level than the individual's past employment, and wages 19 for such work are not less than eighty percent (80%) of the average weekly 20 wage in the individual's past employment. 21 (10) A claimant shall not be eligible to receive benefits for any week 22 with respect to which it is found that his unemployment is due to a labor dis- 23 pute; provided, that this subsection shall not apply if it is shown that: 24 (a) The claimant is not participating, financing, aiding, abetting, or 25 directly interested in the labor dispute; and 26 (b) The claimant does not belong to a grade or class of workers with mem- 27 bers employed at the premises at which the labor dispute occurs, who are 28 participating in or directly interested in the dispute. 29 (11) A claimant shall not be entitled to benefits for any week with 30 respect to which or a part of which he has received or is seeking benefits 31 under an unemployment insurance law of another state or of the United States; 32 provided, that if the appropriate agency of such other state or of the United 33 States shall finally determine that he is not entitled to such unemployment 34 compensation or insurance benefits, he shall not by the provisions of this 35 subsection be denied benefits. For purposes of this section, a law of the 36 United States providing any payments of any type and in any amounts for 37 periods of unemployment due to involuntary unemployment shall be considered an 38 unemployment insurance law of the United States. 39 (12) A claimant shall not be entitled to benefits for a period of fifty- 40 two (52) weeks if it is determined that he has willfully made a false state- 41 ment or willfully failed to report a material fact in order to obtain bene- 42 fits. The period of disqualification shall commence the week the determination 43 is issued. The claimant shall also be ineligible for waiting week credit and 44 shall repay any sums received for any weekinfor which the claimant received 45 waiting week credit or benefits as a result of having willfully made a false 46 statement or willfully failed to report a material fact. The claimant shall 47 also be ineligible for waiting week credit or benefits for any week in which 48 he owes the department an overpayment, civil penalty, or interest resulting 49 from a determination that he willfully made a false statement or willfully 50 failed to report a material fact. 51 (13) A claimant shall not be entitled to benefits if his principal occupa- 52 tion is self-employment. 53 (14) A claimant who has been found ineligible for benefits under the pro- 54 visions of subsection (5), (6), (7) or (9) of this section shall reestablish 55 his eligibility by having obtained bona fide work and received wages therefor 7 1 in an amount of at least fourteen (14) times his weekly benefit amount. 2 (15) Benefits based on service in employment defined in sections 72-1349A 3 and 72-1352(3), Idaho Code, shall be payable in the same amount, on the same 4 terms and subject to the same conditions as benefits payable on the basis of 5 other service subject to this act. 6 (a) If the services performed during one-half (1/2) or more of any con- 7 tract period by an individual for an educational institution as defined in 8 section 72-1322B, Idaho Code, are in an instructional, research, or prin- 9 cipal administrative capacity, all the services shall be deemed to be in 10 such capacity. 11 (b) If the services performed during less than one-half (1/2) of any con- 12 tract period by an individual for an educational institution are in an 13 instructional, research, or principal administrative capacity, none of the 14 service shall be deemed to be in such capacity. 15 (c) As used in this section, "contract period" means the entire period 16 for which the individual contracts to perform services, pursuant to the 17 terms of the contract. 18 (16) No claimant is eligible to receive benefits in two (2) successive 19 benefit years unless, after the beginning of the first benefit year during 20 which he received benefits, he performed service and earned an amount equal to 21 not less than six (6) times the weekly benefit amount established during the 22 first benefit year. 23 (17) (a) Benefits based on wages earned for services performed in an 24 instructional, research, or principal administrative capacity for an edu- 25 cational institution shall not be paid for any week of unemployment com- 26 mencing during the period between two (2) successive academic years, or 27 during a similar period between two (2) terms, whether or not successive, 28 or during a period of paid sabbatical leave provided for in the 29 individual's contract, to any individual who performs such services in the 30 first academic year (or term) and has a contract to perform services in 31 any such capacity for any educational institution in the second academic 32 year or term, or has been given reasonable assurance that such a contract 33 will be offered. 34 (b) Benefits based on wages earned for services performed in any other 35 capacity for an educational institution shall not be paid to any individ- 36 ual for any week which commences during a period between two (2) succes- 37 sive school years or terms if the individual performs such services in the 38 first school year or term, and there is a contract or reasonable assurance 39 that the individual will perform such services in the second school year 40 or term. If benefits are denied to any individual under this paragraph (b) 41 and the individual was not offered an opportunity to perform such services 42 for the educational institution for the second academic year or term, the 43 individual shall be entitled to a retroactive payment of benefits for each 44 week for which the individual filed a timely claim for benefits and for 45 which benefits were denied solely by reason of this clause. 46 (c) With respect to any services described in paragraphs (a) and (b) of 47 this subsection (17), benefits shall not be paid nor "waiting week" credit 48 given to an individual for wages earned for services for any week which 49 commences during an established and customary vacation period or holiday 50 recess if the individual performed the services in the period immediately 51 before the vacation period or holiday recess, and there is a reasonable 52 assurance the individual will perform such services in the period immedi- 53 ately following such vacation period or holiday recess. 54 (d) With respect to any services described in paragraphs (a) and (b) of 55 this subsection (17), benefits shall not be payable on the basis of ser- 8 1 vices in any capacities specified in paragraphs (a), (b) and (c) of this 2 subsection (17) to any individual who performed such services in an educa- 3 tional institution while in the employ of an educational service agency. 4 For purposes of this paragraph the term "educational service agency" means 5 a governmental entity which is established and operated exclusively for 6 the purpose of providing such services to one (1) or more educational 7 institutions. 8 (18) Benefits shall not be payable on the basis of services which substan- 9 tially consist of participating in sports or athletic events or training or 10 preparing to participate, for any week which commences during the period 11 between two (2) successive sport seasons (or similar periods) if the individ- 12 ual performed services in the first season (or similar period) and there is a 13 reasonable assurance that the individual will perform such services in the 14 later of such season (or similar period). 15 (19) (a) Benefits shall not be payable on the basis of services performed 16 by an alien unless the alien was lawfully admitted for permanent residence 17 at the time such services were performed, was lawfully present for pur- 18 poses of performing such services, or was permanently residing in the 19 United States under color of law at the time the services were performed 20 (including an alien who was lawfully present in the United States as a 21 result of the application of the provisions of sections 207 and 208 or 22 section 212(d)(5) of the immigration and nationality act). 23 (b) Any data or information required of individuals applying for benefits 24 to determine eligibility under this subsection shall be uniformly required 25 from all applicants for benefits. 26 (c) A decision to deny benefits under this subsection must be based on a 27 preponderance of the evidence. 28 (20) An individual who has been determined to be likely to exhaust regular 29 benefits and to need reemployment services pursuant to a profiling system 30 established by the director must participate in those reemployment services 31 unless: 32 (a) The individual has completed such services; or 33 (b) There is justifiable cause, as determined by the director, for the 34 claimant's failure to participate in such services. 35 (21) (a) A claimant: 36 (i) Who has been assigned to work for one (1) or more customers of 37 a staffing service; and 38 (ii) Who, at the time of hire by the staffing service, signed a 39 written notice informing him that completion or termination of an 40 assignment for a customer would not, of itself, terminate the employ- 41 ment relationship with the staffing service; 42 will not be considered unemployed upon completion or termination of an 43 assignment until such time as he contacts the staffing service to deter- 44 mine if further suitable work is available. If the claimant: 45 (A) Contacts the staffing service and refuses a suitable work 46 assignment that is offered to him at that time, he will be con- 47 sidered to have voluntarily quit that employment; or 48 (B) Contacts the staffing service and the service does not have 49 a suitable work assignment for him, he will be considered unem- 50 ployed due to a lack of work; or 51 (C) Accepts new employment without first contacting the 52 staffing service for additional work, he will be considered to 53 have voluntarily quit employment with the staffing service. 54 (b) For the purposes of this subsection, the term "staffing service" 55 means any person who assigns individuals to work for its customers and 9 1 includes, but is not limited to, professional employers, as defined in 2 chapter 24, title 44, Idaho Code, and the employers of temporary employees 3 as defined in section 44-2403(7), Idaho Code. 4 SECTION 4. That Section 9-340C, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 9-340C. RECORDS EXEMPT FROM DISCLOSURE -- PERSONNEL RECORDS, PERSONAL 7 INFORMATION, HEALTH RECORDS, PROFESSIONAL DISCIPLINE. The following records 8 are exempt from disclosure: 9 (1) Except as provided in this subsection, all personnel records of a 10 current or former public official other than the public official's public ser- 11 vice or employment history, classification, pay grade and step, longevity, 12 gross salary and salary history, status, workplace and employing agency. All 13 other personnel information relating to a public employee or applicant includ- 14 ing, but not limited to, information regarding sex, race, marital status, 15 birth date, home address and telephone number, applications, testing and 16 scoring materials, grievances, correspondence and performance evaluations, 17 shall not be disclosed to the public without the employee's or applicant's 18 written consent. A public official or authorized representative may inspect 19 and copy his personnel records, except for material used to screen and test 20 for employment. 21 (2) Retired employees' and retired public officials' home addresses, home 22 telephone numbers and other financial and nonfinancial membership records; 23 active and inactive member financial and membership records and mortgage 24 portfolio loan documents maintained by the public employee retirement system. 25 Financial statements prepared by retirement system staff, funding agents and 26 custodians concerning the investment of assets of the public employee retire- 27 ment system of Idaho are not considered confidential under this chapter. 28 (3) Information and records submitted to the Idaho state lottery for the 29 performance of background investigations of employees, lottery retailers and 30 major procurement contractors; audit records of lottery retailers, vendors and 31 major procurement contractors submitted to or performed by the Idaho state 32 lottery; validation and security tests of the state lottery for lottery games; 33 business records and information submitted pursuant to sections 67-7412(8) and 34 (9) and 67-7421(8) and (9), Idaho Code, and such documents and information 35 obtained and held for the purposes of lottery security and investigative 36 action as determined by lottery rules unless the public interest in disclosure 37 substantially outweighs the private need for protection from public disclo- 38 sure. 39 (4) Records of a personal nature as follows: 40 (a) Records of personal debt filed with a public agency or independent 41 public body corporate and politic pursuant to law; 42 (b) Personal bank records compiled by a public depositor for the purpose 43 of public funds transactions conducted pursuant to law; 44 (c) Records of ownership of financial obligations and instruments of a 45 public agency or independent public body corporate and politic, such as 46 bonds, compiled by the public agency or independent public body corporate 47 and politic pursuant to law; 48 (d) Records, with regard to the ownership of, or security interests in, 49 registered public obligations; 50 (e) Vital statistics records; and 51 (f) Military records as described in and pursuant to section 65-301, 52 Idaho Code. 53 (5) Information in an income or other tax return measured by items of 10 1 income or sales, which is gathered by a public agency for the purpose of 2 administering the tax, except such information to the extent disclosed in a 3 written decision of the tax commission pursuant to a taxpayer protest of a 4 deficiency determination by the tax commission, under the provisions of sec- 5 tion 63-3045B, Idaho Code. 6 (6) Records of a personal nature related directly or indirectly to the 7 application for and provision of statutory services rendered to persons apply- 8 ing for public care for the elderly, indigent, or mentally or physically hand- 9 icapped, or participation in an environmental or a public health study, pro- 10 vided the provisions of this subsection making records exempt from disclosure 11 shall not apply to the extent that such records or information contained in 12 those records are necessary for a background check on an individual that is 13 required by federal law regulating the sale of firearms, guns or ammunition. 14 (7) Employment security information and unemployment insurance benefit 15 information, except that all interested parties may agree to waive the exemp- 16 tion unless access to the information by the parties is restricted by subsec- 17 tion (3)(a), (3)(b) or (3)(d) of section 9-342, Idaho Code. Notwithstanding 18 the provisions of section 9-342, Idaho Code, a person may not review identify- 19 ing information concerning an informant who reported to the department of com- 20 merce and labor a suspected violation by the person of the employment security 21 law, chapter 13, title 72, Idaho Code, under an assurance of confidentiality. 22 As used in this section, "employment security information" means any informa- 23 tion descriptive of an identifiable person or persons that is received by, 24 recorded by, prepared by, furnished to or collected by the department of com- 25 merce and labor or the industrial commission in the administration of the 26 employment security law. 27 (8) Any personal records, other than names, business addresses and busi- 28 ness phone numbers, such as parentage, race, religion, sex, height, weight, 29 tax identification and social security numbers, financial worth or medical 30 condition submitted to any public agency or independent public body corporate 31 and politic pursuant to a statutory requirement for licensing, certification, 32 permit or bonding. 33 (9) Unless otherwise provided by agency rule, information obtained as 34 part of an inquiry into a person's fitness to be granted or retain a license, 35 certificate, permit, privilege, commission or position, private association 36 peer review committee records authorized in title 54, Idaho Code. Any agency 37 which has records exempt from disclosure under the provisions of this subsec- 38 tion shall annually make available a statistical summary of the number and 39 types of matters considered and their disposition. 40 (10) The records, findings, determinations and decisions of any prelitiga- 41 tion screening panel formed under chapters 10 and 23, title 6, Idaho Code. 42 (11) Complaints received by the board of medicine and investigations and 43 informal proceedings, including informal proceedings of any committee of the 44 board of medicine, pursuant to chapter 18, title 54, Idaho Code, and rules 45 adopted thereunder. 46 (12) Records of the department of health and welfare or a public health 47 district that identify a person infected with a reportable disease. 48 (13) Records of hospital care, medical records, including prescriptions, 49 drug orders, records or any other prescription information that specifically 50 identifies an individual patient, prescription records maintained by the board 51 of pharmacy under section 37-2730A, Idaho Code, records of psychiatric care or 52 treatment and professional counseling records relating to an individual's con- 53 dition, diagnosis, care or treatment, provided the provisions of this subsec- 54 tion making records exempt from disclosure shall not apply to the extent that 55 such records or information contained in those records are necessary for a 11 1 background check on an individual that is required by federal law regulating 2 the sale of firearms, guns or ammunition. 3 (14) Information collected pursuant to the directory of new hires act, 4 chapter 16, title 72, Idaho Code. 5 (15) Personal information contained in motor vehicle and driver records 6 that is exempt from disclosure under the provisions of chapter 2, title 49, 7 Idaho Code. 8 (16) Records of the financial status of prisoners pursuant to subsection 9 (2) of section 20-607, Idaho Code. 10 (17) Records of the Idaho state police or department of correction 11 received or maintained pursuant to section 19-5514, Idaho Code, relating to 12 DNA databases and databanks. 13 (18) Records of the department of health and welfare relating to a survey, 14 resurvey or complaint investigation of a licensed nursing facility shall be 15 exempt from disclosure. Such records shall, however, be subject to disclosure 16 as public records as soon as the facility in question has received the report, 17 and no later than the fourteenth day following the date that department of 18 health and welfare representatives officially exit the facility pursuant to 19 federal regulations. Provided however, that for purposes of confidentiality, 20 no record shall be released under this section which specifically identifies 21 any nursing facility resident. 22 (19) Records and information contained in the registry of immunizations 23 against childhood diseases maintained in the department of health and wel- 24 fare, including information disseminated to others from the registry by the 25 department of health and welfare. 26 (20) Records of the Idaho housing and finance association (IHFA) relating 27 to the following: 28 (a) Records containing personal financial, family, health or similar per- 29 sonal information submitted to or otherwise obtained by the IHFA; 30 (b) Records submitted to or otherwise obtained by the IHFA with regard to 31 obtaining and servicing mortgage loans and all records relating to the 32 review, approval or rejection by the IHFA of said loans; 33 (c) Mortgage portfolio loan documents; 34 (d) Records of a current or former employee other than the employee's 35 duration of employment with the association, position held and location of 36 employment. This exemption from disclosure does not include the contracts 37 of employment or any remuneration, including reimbursement of expenses, of 38 the executive director, executive officers or commissioners of the associ- 39 ation. All other personnel information relating to an association employee 40 or applicant including, but not limited to, information regarding sex, 41 race, marital status, birth date, home address and telephone number, 42 applications, testing and scoring materials, grievances, correspondence, 43 retirement plan information and performance evaluations, shall not be dis- 44 closed to the public without the employee's or applicant's written con- 45 sent. An employee or authorized representative may inspect and copy that 46 employee's personnel records, except for material used to screen and test 47 for employment or material not subject to disclosure elsewhere in the 48 Idaho public records act. 49 (21) Records of the department of health and welfare related to child sup- 50 port services in cases in which there is reasonable evidence of domestic vio- 51 lence, as defined in chapter 63, title 39, Idaho Code, that can be used to 52 locate any individuals in the child support case except in response to a court 53 order. 54 (22) Records of the Idaho state bar lawyer's assistance program pursuant 55 to chapter 49, title 54, Idaho Code, unless a participant in the program 12 1 authorizes the release pursuant to subsection (4) of section 54-4901, Idaho 2 Code. 3 (23) Records and information contained in the trauma registry created by 4 chapter 20, title 57, Idaho Code, together with any reports, analyses and com- 5 pilations created from such information and records. 6 (24) Records contained in the court files, or other records prepared as 7 part of proceedings for judicial authorization of sterilization procedures 8 pursuant to chapter 39, title 39, Idaho Code. 9 (25) The physical voter registration card on file in the county clerk's 10 office; however, a redacted copy of said card shall be made available consis- 11 tent with the requirements of this section. Information from the voter regis- 12 tration card maintained in the statewide voter registration database, includ- 13 ing age, will be made available except for the voter's driver's license num- 14 ber, date of birth and, upon showing of good cause by the voter to the county 15 clerk in consultation with the county prosecuting attorney, the physical resi- 16 dence address of the voter. For the purposes of this subsection good cause 17 shall include the protection of life and property and protection of victims of 18 domestic violence and similar crimes. 19 SECTION 5. That Section 63-3077A, Idaho Code, be, and the same is hereby 20 amended to read as follows: 21 63-3077A. AGREEMENTS FOR EXCHANGE OF INFORMATION AND JOINT ADMINISTRATION 22 WITH DEPARTMENT OF COMMERCE AND LABOR. (a) The state tax commission and the 23 department of commerce and labor may enter into a written agreement for 24 exchange of information relating to tax laws administered by the state tax 25 commissionorand the employment security law administered by the department 26 of commerce and labor. Any information so exchanged shall be confidential 27 information in the hands of the recipient thereof and may be used only for the 28 following: 29 (1) Determining whether the person to whom the information relates may 30 have an undischarged duty or liability underanythe employment security 31 law or the tax lawsof this stateadministered by the state tax 32 commission, the amount of such liability, the person's whereabouts, social 33 security number, and information helpful in collectingtaxesany liability 34 due. 35 (2) Administering any joint agreement between the department of commerce 36 and labor and the state tax commission relating to employment security 37 taxes and income tax withholding for the common registration of employers, 38 common tax reporting forms, centralized filing and processing of forms. 39 (3) Administration of the state directory of new hires provided in chap- 40 ter 16, title 72, Idaho Code. 41 (b) No such information shall be public information unless it is used in 42 the course of a judicial proceeding arising underathe employment security 43 law or the taxstatute of this statelaws administered by the state tax com- 44 mission. 45 (c) An agreement made pursuant to this section may provide for the offset 46 of any refunds owed to any person by either party to the agreement against any 47 tax liability,oroverpayment of benefits liability, and any penalties and 48 interest thereon owed tothe othereither party to the agreement. No offset 49 may be made unless the liability against which it is applied is final, without 50 any further right on the part of the person owing the liability to either 51 administrative or judicial review. 52 SECTION 6. An emergency existing therefor, which emergency is hereby 13 1 declared to exist, Section 1 of this act shall be in full force and effect on 2 and after its passage and approval, and retroactively to January 1, 2006, and 3 Sections 2, 3, 4 and 5 of this act shall be in full force and effect on and 4 after passage and approval.
STATEMENT OF PURPOSE RS15438C2 This legislation would enhance the Department of Commerce and Labor's ability to detect and deter fraud and to recover amounts owed under Idaho's Employment Security Law. Section 1 removes one of the conditions that prohibit the deposit of 17 percent of employer unemployment insurance taxes into the state-invested Employment Security Reserve Fund. This does not increase the amount employers must pay under Idaho's Employment Security Law. It simply eliminates the requirement that the balance in the Employment Security Reserve Fund must be less than 49 percent of the balance in Idaho's Washington, D.C., Trust Fund for money to be deposited into the Reserve Fund instead of the Washington, D.C., Trust Fund. Both the Reserve Fund and the Washington, D.C., Trust Fund are used to pay unemployment insurance benefits. But since the Reserve Fund is kept in Idaho and is invested by the State Treasurer, the interest earned on its investment is deposited in the Special Administration Fund and can be used to administer Department programs. Section 2 provides additional methods for charging cost reimbursement employers for benefits paid to their former employees. Section 3 expands the definition of a fraud overpayment to include all benefits paid as a result of a claimant's willful false statement or willful failure to report a material fact. Under current law, an overpayment is only considered a fraud overpayment if the payment was made during the week the claimant made the false statement or failed to report a material fact. With this change, a greater number of overpayments will be subject to fraud penalties. Section 4 defines "employment security information" and provides that the identity of an informant who reports suspected violations of the Employment Security Law to the Department under an assurance of confidentiality shall not be disclosed. Section 5 allows amounts owed for penalty and interest on debts owed to the Department or the State Tax Commission to be offset against refunds owed to the debtor by either agency. It also makes technical corrections. The bill has an emergency clause so one of the conditions on the Reserve Fund can be removed retroactively to January 1, 2006. Sections 2 through 5 of the bill will be effective upon their passage and approval so the Department can implement those provisions and thereby enhance its collection capabilities prior to July 1, 2006. FISCAL NOTE There is no impact on the state General Fund. If enacted, section 1 of the bill will allow the Department to keep 17 percent of the unemployment insurance taxes received in 2006 in the Reserve Fund in Idaho. That money would otherwise go to Idaho's Washington, D.C., Trust Fund. Interest earned on the Reserve Fund will increase revenue to the Special Administration Fund, which will be used to pay expenses incurred in the administration of the Department's programs, including the Commerce Division's share of indirect costs. Without this amendment, the Commerce Division's indirect costs would have to be paid from the state General Fund. Section 3 of the bill should increase revenue to the Department's Penalty and Interest Fund because a penalty is imposed on fraud overpayments. Section 4 may have a positive impact on the Unemployment Insurance Trust Fund. If the Department can assure people who report suspected violations of the Employment Security Law that their identities will not be disclosed, more people will likely report suspected violations, which could increase the balance in the Unemployment Insurance Trust Fund by reducing benefit payments that result from fraud and by increasing unemployment insurance taxes that currently aren't collected due to employer fraud. Section 5 should also increase revenue to the Penalty and Interest Fund because offsetting debts against refunds owed to the debtor is one of the most efficient debt collection methods. CONTACT Name: Bob Fick Agency: Idaho Department of Commerce & Labor Phone: 332-3570 ext. 3628; 409-9818 cell STATEMENT OF PURPOSE/FISCAL NOTE H 407