2006 Legislation
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HOUSE BILL NO. 407 – Unemployment benefits, violations

HOUSE BILL NO. 407

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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

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN 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  the
 31    employment 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 week in for 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    commission  or  and 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 under any the  employment  security
 31        law  or  the  tax  laws  of  this  state  administered  by  the  state tax
 32        commission, the amount of such liability, the person's whereabouts, social
 33        security number, and information helpful in collecting taxes any 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 under a  the  employment  security
 43    law  or  the tax statute of this state laws 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, or overpayment of benefits liability,  and  any  penalties  and
 48    interest  thereon  owed  to the other either 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 / Fiscal Impact


                     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