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HOUSE BILL NO. 426

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H0426........................................................by MR. SPEAKER
                     Requested by: Department of Labor
EMPLOYMENT SECURITY LAW - Amends, adds to and repeals existing law to
recodify the state's Employment Security Law, to revise contribution rates,
to change benefits and to revise procedures.

01/12    House intro - 1st rdg - to printing
01/12    Rpt prt - to HuRes
01/22    Rpt out - rec d/p - to 2nd rdg
01/23    2nd rdg - to 3rd rdg
01/26    3rd rdg - PASSED - 69-0-1
      AYES -- Alexander, Alltus, Barraclough, Barrett, Bell, Bieter,
      Bivens, Black(15), Black(23), Boe, Bruneel, Callister, Campbell,
      Chase, Clark, Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck,
      Jaquet, Jones(22), Jones(20), Judd, Kellogg, Kempton, Kendell,
      Kjellander, Kunz, Lake, Linford, Loertscher, Mader, McKague, Meyer,
      Miller, Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman,
      Ridinger, Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone,
      Stubbs, Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Wood,
      Zimmermann, Mr Speaker
      NAYS -- None
      Absent and excused -- Jones(9)
    Floor Sponsors - Schaefer, Lake, Bieter
    Title apvd - to Senate
01/27    Senate intro - 1st rdg - to Com/HuRes
01/28    Rpt out - rec d/p - to 2nd rdg
01/29    2nd rdg - to 3rd rdg
01/29    Rls susp - PASSED - 35-0-0
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
      Sweeney, Thorne, Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--None
    Floor Sponsor - Cameron, McLaughlin
    Title apvd - to House
01/29    To enrol
01/30    Rpt enrol - Sp signed
02/02    Pres signed
02/03    To Governor
02/04    Governor signed
         Session Law Chapter 1
         Effective: Sec 66 - 01/01/98
             All others  07/01/98

Bill Text

H0426

                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 426

                                      BY MR. SPEAKER
                            Requested by: Department of Labor

 1                                        AN ACT
 2    RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1301, IDAHO CODE,
 3        TO REVISE THE SHORT TITLE; AMENDING SECTION 72-1302, IDAHO CODE, TO REVISE
 4        THE DECLARATION OF STATE PUBLIC POLICY; AMENDING  SECTION  72-1303,  IDAHO
 5        CODE,  TO  REVISE  THE  MEANING  OF DEFINITIONS; AMENDING SECTION 72-1304,
 6        IDAHO CODE, TO REVISE THE DEFINITION OF AGRICULTURAL LABOR; AMENDING  SEC-
 7        TION  72-1305,  IDAHO  CODE,  TO  REVISE THE DEFINITION OF ANNUAL PAYROLL;
 8        AMENDING SECTION 72-1306, IDAHO CODE, TO REVISE  THE  DEFINITION  OF  BASE
 9        PERIOD;  AMENDING SECTION 72-1307, IDAHO CODE, TO REVISE THE DEFINITION OF
10        BENEFITS; AMENDING SECTION 72-1308, IDAHO CODE, TO REVISE  THE  DEFINITION
11        OF BENEFIT YEAR; AMENDING SECTION 72-1309, IDAHO CODE, TO REVISE THE DEFI-
12        NITION  OF COMMISSION; AMENDING SECTION 72-1310, IDAHO CODE, TO REVISE THE
13        DEFINITION OF BONUS PAYMENT; AMENDING  SECTION  72-1311,  IDAHO  CODE,  TO
14        REVISE THE DEFINITION OF CALENDAR QUARTER; AMENDING SECTION 72-1312, IDAHO
15        CODE,  TO  REVISE  THE  DEFINITION  OF  COMPENSABLE WEEK; AMENDING SECTION
16        72-1313, IDAHO CODE, TO REVISE THE DEFINITION OF COMPUTATION DATE;  AMEND-
17        ING  SECTION  72-1314,  IDAHO  CODE, TO REVISE THE DEFINITION OF CONTRIBU-
18        TIONS; AMENDING SECTION 72-1315, IDAHO CODE, TO REVISE THE  DEFINITION  OF
19        COVERED  EMPLOYER;  AMENDING  SECTION  72-1315A, IDAHO CODE, TO REVISE THE
20        DEFINITION OF COST REIMBURSEMENT EMPLOYER; AMENDING SECTION 72-1316, IDAHO
21        CODE, TO REVISE THE DEFINITION OF  COVERED  EMPLOYMENT;  AMENDING  SECTION
22        72-1316A,  IDAHO  CODE,  TO  REVISE  THE  DEFINITION OF EXEMPT EMPLOYMENT;
23        REPEALING SECTION 72-1316B, IDAHO CODE; AMENDING  SECTION  72-1317,  IDAHO
24        CODE,  TO  PROVIDE THAT SEPTEMBER 30 IMMEDIATELY FOLLOWING THE COMPUTATION
25        DATE IS DESIGNATED AS THE CUT-OFF DATE  FOR  EXPERIENCE  RATING  PURPOSES;
26        AMENDING  SECTION  72-1318, IDAHO CODE, TO REVISE THE DEFINITION OF DIREC-
27        TOR; AMENDING SECTION 72-1319, IDAHO CODE, TO  REVISE  THE  DEFINITION  OF
28        ELIGIBLE  EMPLOYER;  AMENDING  SECTION 72-1319A, IDAHO CODE, TO REVISE THE
29        DEFINITION OF DEFICIT EMPLOYER; AMENDING SECTION 72-1319B, IDAHO CODE,  TO
30        REVISE  THE  DEFINITION  OF  TAXABLE  WAGE RATE; AMENDING SECTION 72-1320,
31        IDAHO CODE, TO REVISE THE DEFINITION OF  CREW  LEADER;  REPEALING  SECTION
32        72-1321,  IDAHO  CODE; AMENDING SECTION 72-1322, IDAHO CODE, TO REVISE THE
33        DEFINITION OF EXPERIENCE RATING; AMENDING SECTION 72-1322A, IDAHO CODE, TO
34        REVISE THE DEFINITION OF HOSPITAL; AMENDING SECTION 72-1322B, IDAHO  CODE,
35        TO  REVISE  THE  DEFINITION  OF  EDUCATIONAL INSTITUTION; AMENDING SECTION
36        72-1322C, IDAHO CODE, TO REVISE THE  DEFINITION  OF  GOVERNMENTAL  ENTITY;
37        AMENDING  CHAPTER  13, TITLE 72, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
38        TION 72-1322D, IDAHO CODE, TO PROVIDE A DEFINITION OF NONPROFIT  ORGANIZA-
39        TION;  AMENDING  SECTION  72-1323, IDAHO CODE, TO REVISE THE DEFINITION OF
40        INTERESTED PARTIES; AMENDING SECTION 72-1324, IDAHO CODE,  TO  REVISE  THE
41        DEFINITION OF PAYROLL; AMENDING SECTION 72-1325, IDAHO CODE, TO REVISE THE
42        DEFINITION OF PERSON; REPEALING SECTION 72-1326, IDAHO CODE; AMENDING SEC-
43        TION 72-1327, IDAHO CODE, TO REVISE THE DEFINITION OF STATE; AMENDING SEC-
44        TION 72-1327A, IDAHO CODE, TO REVISE THE DEFINITION OF VALID CLAIM; AMEND-
45        ING SECTION 72-1328, IDAHO CODE, TO REVISE THE DEFINITION OF WAGES; AMEND-
46        ING  SECTION 72-1329, IDAHO CODE, TO PROVIDE A DEFINITION OF WAITING WEEK;


                                      2

 1        AMENDING SECTION 72-1330, IDAHO CODE, TO REVISE THE  DEFINITION  OF  WEEK;
 2        AMENDING  SECTION  72-1331,  IDAHO CODE, TO PROVIDE THAT ADMINISTRATION OF
 3        THE EMPLOYMENT SECURITY LAW SHALL BE  ADMINISTERED  BY  THE  DIRECTOR  WHO
 4        SHALL  BE APPOINTED BY THE GOVERNOR WITH CONFIRMATION BY THE STATE SENATE;
 5        AMENDING SECTION 72-1332, IDAHO CODE, TO REVISE AUTHORITIES AND DUTIES  OF
 6        THE INDUSTRIAL COMMISSION; AMENDING SECTION 72-1333, IDAHO CODE, TO REVISE
 7        AUTHORITIES  AND DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF LABOR; AMEND-
 8        ING SECTION 72-1334, IDAHO CODE, TO  PROVIDE  FOR  PUBLICATIONS;  AMENDING
 9        SECTION 72-1335, IDAHO CODE, TO REVISE THE PERSONNEL SYSTEM OF THE DEPART-
10        MENT;  AMENDING  SECTION  72-1336,  IDAHO CODE, TO PROVIDE FOR AN ADVISORY
11        BODY AND SPECIAL COMMITTEES; AMENDING  SECTION  72-1337,  IDAHO  CODE,  TO
12        REVISE  REQUIREMENTS  FOR  RECORDS  AND REPORTS; AMENDING SECTION 72-1338,
13        IDAHO CODE, TO REVISE REQUIREMENTS FOR OATHS AND WITNESSES; AMENDING  SEC-
14        TION  72-1339, IDAHO CODE, TO PROVIDE FOR ENFORCEMENT OF SUBPOENAS; AMEND-
15        ING SECTION 72-1340, IDAHO  CODE,  TO  REVISE  PROCEDURES  FOR  PROTECTION
16        AGAINST  SELF-INCRIMINATION;  AMENDING  SECTION  72-1341,  IDAHO  CODE, TO
17        REVISE REQUIREMENTS IN FEDERAL-STATE COOPERATION IN THE ADMINISTRATION  OF
18        UNEMPLOYMENT  INSURANCE  LAWS;  AMENDING  SECTION  72-1342, IDAHO CODE, TO
19        REVISE HOW  DISCLOSURE  OF  INFORMATION  MAY  BE  MADE;  AMENDING  SECTION
20        72-1343, IDAHO CODE, TO REVISE PROCEDURES FOR PRESERVATION AND DESTRUCTION
21        OF  RECORDS; AMENDING SECTION 72-1344, IDAHO CODE, TO PROVIDE FOR RECIPRO-
22        CAL ARRANGEMENTS AND COOPERATION; AMENDING SECTION 72-1345, IDAHO CODE, TO
23        PROVIDE FOR A STATE EMPLOYMENT SERVICE IN THE DEPARTMENT OF LABOR;  AMEND-
24        ING  SECTION  72-1346, IDAHO CODE, TO REVISE LANGUAGE REGARDING ESTABLISH-
25        MENT AND ADMINISTRATION OF THE EMPLOYMENT SECURITY FUND; AMENDING  SECTION
26        72-1346A,  IDAHO  CODE, TO REVISE LANGUAGE CONCERNING ADVANCES UNDER TITLE
27        XII OF THE SOCIAL SECURITY ACT TO THE EMPLOYMENT FUND  AND  REGARDING  THE
28        FEDERAL  ADVANCE  INTEREST REPAYMENT FUND; AMENDING SECTION 72-1347, IDAHO
29        CODE, TO PROVIDE NEW PROCEDURES AND REQUIREMENTS FOR THE EMPLOYMENT  SECU-
30        RITY ADMINISTRATION FUND; AMENDING SECTION 72-1347A, IDAHO CODE, TO REVISE
31        REQUIREMENTS  FOR  THE  EMPLOYMENT  SECURITY  RESERVE FUND AND THE SPECIAL
32        ADMINISTRATION FUND; AMENDING SECTION  72-1347B,  IDAHO  CODE,  TO  REVISE
33        REQUIREMENTS  REGARDING  THE WORKFORCE DEVELOPMENT TRAINING FUND; AMENDING
34        SECTION 72-1348, IDAHO CODE, TO REVISE REQUIREMENTS FOR THE STATE  EMPLOY-
35        MENT  SECURITY  ADMINISTRATIVE  AND  REIMBURSEMENT  FUND; AMENDING SECTION
36        72-1349, IDAHO CODE, TO REVISE REQUIREMENTS FOR PAYMENT OF  CONTRIBUTIONS;
37        AMENDING  SECTION 72-1349A, IDAHO CODE, TO REVISE REQUIREMENTS FOR FINANC-
38        ING OF BENEFIT PAYMENTS BY NONPROFIT ORGANIZATIONS AND GOVERNMENTAL  ENTI-
39        TIES;  REPEALING SECTIONS 72-1349B AND 72-1349C, IDAHO CODE; AMENDING SEC-
40        TION 72-1349D, IDAHO CODE, TO REDESIGNATE THE SECTION, TO REVISE  REQUIRE-
41        MENTS  FOR  FINANCING BENEFIT PAYMENTS BY PROFESSIONAL EMPLOYERS AND THEIR
42        CLIENTS; AMENDING SECTION 72-1350, IDAHO CODE, TO REVISE CRITERIA FOR  THE
43        TAXABLE  WAGE BASE AND TAXABLE WAGE RATES; AMENDING SECTION 72-1351, IDAHO
44        CODE, TO REVISE CRITERIA REGARDING  EXPERIENCE  RATING;  AMENDING  SECTION
45        72-1352,  IDAHO  CODE,  TO  PROVIDE  FOR PROCEDURES FOR COVERED EMPLOYERS;
46        AMENDING SECTION 72-1353, IDAHO CODE, TO REVISE ADMINISTRATIVE  DETERMINA-
47        TIONS  OF  COVERAGE;  AMENDING SECTION 72-1354, IDAHO CODE, TO PROVIDE FOR
48        PENALTIES ON UNPAID AMOUNTS; AMENDING  SECTION  72-1355,  IDAHO  CODE,  TO
49        REVISE PROCEDURES FOR COLLECTION BY LEGAL SUIT; AMENDING SECTION 72-1355A,
50        IDAHO  CODE,  TO CHANGE THE WORD ACT TO CHAPTER; AMENDING SECTION 72-1356,
51        IDAHO CODE, TO REVISE PROCEDURES WHERE THE ASSETS OF AN EMPLOYER ARE  DIS-
52        TRIBUTED  BY  AN ORDER OF THE COURT; AMENDING SECTION 72-1357, IDAHO CODE,
53        TO  REVISE  PROCEDURES  FOR  ADJUSTMENTS  AND  REFUNDS;  AMENDING  SECTION
54        72-1358, IDAHO CODE, TO REVISE PROCEDURES FOR DETERMINATION OF AMOUNTS DUE
55        UPON FAILURE TO REPORT; AMENDING SECTION 72-1359, IDAHO  CODE,  TO  REVISE


                                      3

 1        PROCEDURES REGARDING JEOPARDY ASSESSMENTS; AMENDING SECTION 72-1360, IDAHO
 2        CODE, AS AMENDED BY SECTION 6, CHAPTER 205, LAWS OF 1997, TO REVISE PROCE-
 3        DURES  REGARDING LIENS; AMENDING SECTION 72-1360A, IDAHO CODE, AS ADDED BY
 4        SECTION 7, CHAPTER 205, LAWS OF 1997, TO REVISE PROCEDURES FOR  COLLECTION
 5        OF  LIEN  AMOUNTS;  AMENDING SECTION 72-1361, IDAHO CODE, TO REVISE PROCE-
 6        DURES FOR APPEALS TO THE DEPARTMENT OF LABOR AND TO THE INDUSTRIAL COMMIS-
 7        SION; AMENDING SECTION 72-1362, IDAHO CODE, TO  MAKE  GRAMMATICAL  CORREC-
 8        TIONS;  REPEALING  SECTION  72-1363, IDAHO CODE; AMENDING SECTION 72-1364,
 9        IDAHO CODE, TO REVISE PROCEDURES FOR UNCOLLECTIBLE ACCOUNTS; AMENDING SEC-
10        TION 72-1365, IDAHO CODE, TO REVISE PROCEDURES REGARDING PAYMENT OF  BENE-
11        FITS; AMENDING SECTION 72-1366, IDAHO CODE, TO REVISE PERSONAL ELIGIBILITY
12        CONDITIONS  OF  CLAIMANTS; AMENDING SECTION 72-1367, IDAHO CODE, TO REVISE
13        THE BENEFIT FORMULA; AMENDING SECTION 72-1367A, IDAHO CODE, TO REVISE PRO-
14        CEDURES GOVERNING EXTENDED BENEFITS; AMENDING SECTION 72-1368, IDAHO CODE,
15        TO REVISE PROCEDURES FOR FILING CLAIMS FOR BENEFITS AND APPEALS;  AMENDING
16        SECTION 72-1369, IDAHO CODE, AS AMENDED BY SECTION 8, CHAPTER 205, LAWS OF
17        1997, TO REVISE PROCEDURES IN THE EVENT OF OVERPAYMENTS, FOR COLLECTION OR
18        FOR WAIVER; AMENDING SECTION 72-1370, IDAHO CODE, TO REVISE THE PROCEDURES
19        FOR DISTRIBUTION OF BENEFIT PAYMENTS UPON DEATH; AMENDING SECTION 72-1371,
20        IDAHO  CODE,  TO  REVISE  PROCEDURES GOVERNING MISREPRESENTATION TO OBTAIN
21        BENEFITS OR TO PREVENT PAYMENTS OR TO EVADE CONTRIBUTION LIABILITY; AMEND-
22        ING SECTION 72-1373, IDAHO CODE, TO PROVIDE PENALTIES FOR VIOLATION OF THE
23        EMPLOYMENT SECURITY LAW OR RULES PROMULGATED  PURSUANT  THERETO;  AMENDING
24        SECTION  72-1374, IDAHO CODE, TO REVISE SANCTIONS FOR UNAUTHORIZED DISCLO-
25        SURE OF INFORMATION; AMENDING SECTION 72-1375, IDAHO CODE, TO REVISE  PRO-
26        CEDURES  FOR  PROTECTION OF RIGHTS AND BENEFITS; AMENDING SECTION 72-1376,
27        IDAHO CODE, TO REVISE PROCEDURES FOR  REPRESENTATION  IN  COURT;  AMENDING
28        SECTION  72-1377,  IDAHO  CODE, TO CHANGE ACT TO CHAPTER; AMENDING SECTION
29        72-1378, IDAHO CODE, TO CHANGE ACT TO CHAPTER; AMENDING  SECTION  72-1379,
30        IDAHO CODE, TO PROVIDE THE EFFECT OF REFERENCES IN THE EMPLOYMENT SECURITY
31        LAW;  REPEALING  SECTION  72-1380,  IDAHO  CODE; AMENDING SECTION 72-1381,
32        IDAHO CODE, TO REVISE  MEDIATION  PROCEDURES;  AMENDING  SECTION  72-1382,
33        IDAHO  CODE,  TO REVISE DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF LABOR;
34        REPEALING SECTIONS 72-1383  AND  72-1384,  IDAHO  CODE;  AMENDING  SECTION
35        72-1385,  IDAHO  CODE,  TO  CHANGE  A STATUTORY CITATION; AMENDING SECTION
36        33-1002, 67-1003, 72-1701, 72-1707, 72-1708 AND 72-1709,  IDAHO  CODE,  TO
37        PROVIDE CORRECT STATUTORY CITATIONS;  DECLARING AN EMERGENCY AND PROVIDING
38        EFFECTIVE DATES.

39    Be It Enacted by the Legislature of the State of Idaho:

40        SECTION  1.  That  Section 72-1301, Idaho Code, be, and the same is hereby
41    amended to read as follows:

42        72-1301.  SHORT TITLE. This act shall be known    and  may  be  cited
43     as the "Employment Security Law."

44        SECTION  2.  That  Section 72-1302, Idaho Code, be, and the same is hereby
45    amended to read as follows:

46        72-1302.  DECLARATION OF STATE PUBLIC POLICY.  (a) As a guide to  the
47    interpretation  and  application  of this act, t  T he public
48    policy of this state is  declared to be  as follows: Economic inse-
49    curity due to unemployment is a  serious    menace      threat
50      to the  health, morals and welfare of the   well-being


                                      4

 1    of our   people  .      of  this  state.  Involuntary  u
 2      U  nemployment  is    therefore    a  subject of
 3    national and state  interest and  concern .   which
 4    requires appropriate action to prevent its spread and to  lighten  its  burden
 5    which  now  so  often falls with crushing force upon the unemployed worker and
 6    his family. The achievement of social  security  requires  protection  against
 7    this  greatest  hazard of our economic life.  This  can be provided
 8      chapter addresses this problem  by encouraging employers to
 9     provide more   offer  stable employment  and  by  
10    the systematic accumulation of   systematically accumulating 
11    funds  during  periods  of employment to  provide   pay 
12    benefits for periods of unemployment , thus maintaining purchasing  power
13    and limiting the serious social consequences of poor relief assistance .
14    The  legislature  , therefore,  declares that , in its consid-
15    ered judgment, the public good, and  the general welfare  of    the
16        our    citizens  of this state  require s
17     the enactment of this measure , under the  police  powers  of  the
18    state, and for the compulsory setting   and sets  aside 
19    of    unemployment reserves to be used for  the benefits of persons
20      workers who are  unemployed through no fault of their own.
21         (b)  This law is enacted for the purpose of securing for this  state
22    the  maximum  benefits of the Act of Congress, approved August 14, 1935, known
23    as the "Social Security Act," as amended, and to enable the workmen  of  Idaho
24    to benefit from the provisions of said act. 

25        SECTION  3.  That  Section 72-1303, Idaho Code, be, and the same is hereby
26    amended to read as follows:

27        72-1303.  DEFINITIONS.    As  used  in  this  act,  u    U
28    nless the context clearly requires otherwise,    the    
29    these  terms  defined in the following sections 72-1304 to 72-1330,
30    inclusive,  shall have the  following  meanings  respec-
31    tively ascribed to them   when used in this chapter .

32        SECTION  4.  That  Section 72-1304, Idaho Code, be, and the same is hereby
33    amended to read as follows:

34        72-1304.  AGRICULTURAL LABOR. ( a   1  )    The
35    term    "  a   A gricultural labor"  includes
36      means  all services performed:
37        ( 1  a )  On a farm, in the employ of any person  in
38        connection  with  cultivating the soil, or  in connection with 
39        raising or harvesting any agricultural, aquacultural or horticultural com-
40        modities, including the raising, shearing, feeding, caring for,  training,
41        and  management of livestock, bees, fish, poultry, and fur-bearing animals
42        and wildlife .  ; 
43        ( 2  b )  In the employ of the owner  or  tenant  or
44        other  operator  of  a  farm in connection with the operation, management,
45        conservation, improvement, or maintenance of such farm and its  tools  and
46        equipment,  or  in  salvaging  timber  or clearing land of brush and other
47        debris left by a hurricane if the major part of such service is  performed
48        on a farm .  ; 
49        (  3  c )  In connection with the operation or main-
50        tenance of ditches, canals, reservoirs, or waterways not owned or operated
51        for profit and used exclusively for supplying and storing water for  farm-


                                      5

 1        ing purposes .  ; and 
 2        (  4   d )  In  the employ of any farm operator
 3        or group of operators,  organized  or  unorganized,  in    handling,
 4        planting,  drying, packing, packaging, eviscerating, processing, freezing,
 5        grading, storing, or delivering to storage or to market or  to  a  carrier
 6        for transportation to market in its unmanufactured state any agricultural,
 7        aquacultural  or  horticultural commodities,  but only  if such
 8        operator  or group,  in both the current and preceding calendar
 9        year s  produced more than one-half (1/2)  of  the  commodities
10        with respect to which such service is performed.
11          (5)  In  the  employ of a group of farm operators (or a cooperative
12        organization of such operators) in the performance of service described in
13        subsection (a)(4), but only if such operators in both the current and pre-
14        ceding calendar year produced more than one-half (1/2) of the  commodities
15        with  respect  to which such service is performed. The term "in the employ
16        of a group of farm operators" shall include any group  of  farmers,  orga-
17        nized  or unorganized, who as a group produced more than one-half (1/2) of
18        the crop for which the services are being performed.
19        (6)  The provisions in   This   subsection    (a)(4)
20        and  (a)(5)  shall   is  not  be deemed to be 
21        applicable  with respect  to service s  performed in
22         connection with  commercial canning, freezing, or dehydrating,
23        or in connection with any agricultural, aquacultural or horticultural com-
24        modity after its delivery to a terminal market for distribution  for  con-
25        sumption.
26        (  b  2 )   As used in subsection (a), the term
27     " f  F arm" includes stock, dairy, fish, poultry,
28    fruit, fur-bearing animal and truck farms,  plantations,  ranches,  nurseries,
29    hatcheries, ranges, greenhouses or other similar structures used primarily for
30    the  raising  of  agricultural, aquacultural or horticultural commodities, and
31    orchards.
32        ( c  3 )   For purposes of subsection (a),  the
33    term   " u  U nmanufactured state" means retention
34    of its original form and substance.
35        ( d  4 )   For purposes of subsection (a),  the
36    term    "  t    T erminal market" means a place of
37    business to which products are shipped in a sorted,  graded,  packaged  condi-
38    tion, ready for immediate sale.

39        SECTION  5.  That  Section 72-1305, Idaho Code, be, and the same is hereby
40    amended to read as follows:

41        72-1305.  ANNUAL PAYROLL.  The term   "  a    A
42    nnual  payroll" means total payroll for a period of twelve (12) consecu-
43    tive calendar months ending on June 30 of any year.

44        SECTION 6.  That Section 72-1306, Idaho Code, be, and the same  is  hereby
45    amended to read as follows:

46        72-1306.  BASE  PERIOD.  (  a    1  )  The term
47     " b  B ase period" means the first  four  (4)  of
48    the last five (5) completed calendar quarters immediately preceding the begin-
49    ning of a benefit year.
50        (  b    2 )   The   "A  a
51    lternate base period "   is     means  


                                      6

 1    the  first  four  (4) of the last five (5) completed calendar quarters immedi-
 2    ately prior to the Sunday of the week in which a medically  verifiable  tempo-
 3    rary  total  disability occurred. To use the alternate base period, a claimant
 4    must file within three (3) years of the beginning of the temporary total  dis-
 5    ability,  and  no  longer  than  six (6) months after the end of the temporary
 6    total disability.

 7        SECTION 7.  That Section 72-1307, Idaho Code, be, and the same  is  hereby
 8    amended to read as follows:

 9        72-1307.  BENEFITS.      The  term    "  b    B
10    enefits" means the money paid to an individual  ,  as  provided  in
11    this act,  with respect to his unemployment.

12        SECTION  8.  That  Section 72-1308, Idaho Code, be, and the same is hereby
13    amended to read as follows:

14        72-1308.  BENEFIT YEAR.  The  term    "  b    B
15    enefit  year"    shall   mean s  a period of 
16    fifty-two ( 52 )  consecutive weeks beginning with the  first
17    day  of  the week in which an individual files a new valid claim for benefits;
18    except that the benefit year shall be    fifty-three  (  53  )
19      weeks  if  the filing of a new valid claim would result in overlapping
20    any quarter of the  base-year   base year  of  a  previ-
21    ously  filed  new claim. A subsequent benefit year cannot be established until
22    the expiration of the current benefit year.

23        SECTION 9.  That Section 72-1309, Idaho Code, be, and the same  is  hereby
24    amended to read as follows:

25        72-1309.  COMMISSION.    The  term    "  c    C
26    ommission" means the industrial commission.

27        SECTION  10.  That Section 72-1310, Idaho Code, be, and the same is hereby
28    amended to read as follows:

29        72-1310.  BONUS PAYMENT.  The term    "  b    B
30    onus  payment"  means wages paid for employment by an employer which are
31    either --  : 
32        ( a  1 )   in  the  form  of  a    A
33    dditional  remuneration for meritorious service and not customarily paid
34     by him  to his  employees  at  regular  payroll  intervals  ,
35     ;  or
36        (  b    2  )    a  A dditional
37    remuneration based upon production, length of service, or  profits,  which  at
38    the  time  paid  covers service rendered in two (2) or more calendar quarters.
39    Bonus payments shall be reported by employers as   the  director  may  by
40    regulation prescribe   prescribed by rule .

41        SECTION  11.  That Section 72-1311, Idaho Code, be, and the same is hereby
42    amended to read as follows:

43        72-1311.  CALENDAR QUARTER.  The term  " c    C
44    alendar  quarter"  means  the  period  of three (3) consecutive calendar
45    months ending on March 31, June 30, September 30, and  December  31,  in  each


                                      7

 1    year  ,  or  the equivalent thereof, as the director may, by regulations,
 2    prescribe .

 3        SECTION 12.  That Section 72-1312, Idaho Code, be, and the same is  hereby
 4    amended to read as follows:

 5        72-1312.  COMPENSABLE  WEEK.    (a) A   "Compensable week"
 6    means a  week of unemployment ,   with respect to 
 7     all of which occurred within the benefit year, for  which an  eli-
 8    gible    benefit    claimant   shall be   is 
 9    entitled to benefits  shall be known as  a  compensable  week;  provided,
10    however, that no person shall be deemed to be unemployed while he is attending
11    school, during the customary working hours of his occupation, except where the
12    claimant is participating in a job training course in compliance with the pro-
13    visions  of  subsection  (h)  of section 72-1366, Idaho Code.   and
14    during which: 
15        ( b  1 )   A  compensable  week  of  a  benefit
16    claimant  shall  be  a  week of   The claimant had  either no
17    work or less than full-time work --  ; and 
18         (1)  all of which occurred within this benefit year; and 
19        (2)   with respect to which     No    benefits  have
20     not  been paid to  him   the claimant ; and
21        (3)    in which he   The claimant  complied with all
22    of the personal eligibility conditions  prescribed  in      of
23     section 72-1366, Idaho Code; and
24        (4)    in which t  T he total wages payable to 
25    him   the claimant  for less than full-time work performed in
26    such week amounted to less than one and one-half (1 1/2) times his weekly ben-
27    efit amount; provided, however, that  for the purpose of this section all
28    amounts   any benefits  which a  benefit  claimant
29    receives for any week  which begins after the effective date of the  pen-
30    sion  deduction  provisions in section 3304(a)(15) of the federal unemployment
31    tax act  shall be reduced by an amount equal to the amount  received  as
32    pension,  retirement pay, annuity, or any other similar payment which is based
33    on the previous work of such individual which is  reasonably  attributable  to
34    such  week ; provided that , if the  provisions of the federal
35    unemployment tax act permit, the director may prescribe in  regulations  which
36    are consistent with the federal unemployment tax act that --
37        (A)  the  requirements of this paragraph shall only apply in the case of a
38        pension, retirement or retired pay, annuity,  or  other  similar  periodic
39         payment  is made  under a plan maintained or contributed
40        to  by    a     the  base period  or chargeable
41         employer  and the claimant has made no  contributions  to  the
42        plan ; and  that 
43          (B)  the  amount  of  any such reduction shall be determined taking
44        into account contributions made by the individual for the pension, retire-
45        ment or retired pay, annuity, or other similar period payment; and 
46        (5)   a  A ll of  which  occurred  after  a  waiting
47      period      week  as defined in section 72-1329, Idaho
48    Code.

49        SECTION 13.  That Section 72-1313, Idaho Code, be, and the same is  hereby
50    amended to read as follows:

51        72-1313.  COMPUTATION  DATE.   The term  " c  C


                                      8

 1    omputation date" means the June 30  preceding the  commencement  of
 2      immediately prior to  the calendar year for which a covered
 3    employer's  taxable wage rate is effective .   except that the
 4    charging of benefits to a covered employer's account shall be made  in  accor-
 5    dance with the formula as provided in section 72-1351(b), Idaho Code. 

 6        SECTION  14.  That Section 72-1314, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        72-1314.  CONTRIBUTIONS.  The term    "  c    C
 9    ontributions"  means  the   money  payments required  by
10    this act  to be paid into the employment security fund  by  any  covered
11    employer  pursuant  to  sections  72-1349  to   through 
12    72-1353, Idaho Code , inclusive; payments made in lieu  of  contributions
13    by  cost  reimbursement employers as provided in section 72-1349A, Idaho Code,
14    are not contributions .

15        SECTION 15.  That Section 72-1315, Idaho Code, be, and the same is  hereby
16    amended to read as follows:

17        72-1315.  COVERED  EMPLOYER.   The term  " c  C
18    overed employer" means:
19        ( a  1 )  Any person who, in any calendar quarter in
20    either the current or preceding calendar year paid  for  services  in  covered
21    employment wages of one thousand five hundred dollars ($1,500) or more, or for
22    some portion of a day in each of twenty (20) different calendar weeks, whether
23    or  not consecutive, in either the current or preceding calendar year employed
24    at least one (1) individual (irrespective of whether the same  individual  was
25    in  employment  in each such day). For purposes of this subsection there shall
26    not be taken into account any wages paid to, or in employment of, an  employee
27    performing  domestic services referred to in subsection ( h  8
28    ) of this section.
29        ( b  2 )  All individuals performing services within
30    this state for an employer who maintains two (2) or more  separate  establish-
31    ments within this state shall be deemed to be performing services for a single
32    employer .   for all the purposes of this act. 
33        (  c    3  )  Each  individual engaged to perform or
34    assist in performing the work of any person in  the  service  of  an  employer
35    shall  be  deemed  to  be    engaged   employed  by such
36    employer for all the purposes of this  act    chapter  ,
37    whether  such  individual  was engaged or paid directly by such employer or by
38    such person, provided the employer had actual or constructive knowledge of the
39    work.
40        ( d  4 )  Any employer (whether or not  an  employer
41    at  the time of acquisition) who acquires the organization, trade, or business
42    or substantially all the assets thereof, of another who at the  time  of  such
43    acquisition was a covered employer.
44        (  e    5  )  In the case of agricultural labor, any
45    person who:
46        ( 1  a )  During any calendar quarter in the  calen-
47        dar year or the preceding calendar year paid wages in cash of twenty thou-
48        sand dollars ($20,000) or more for agricultural labor ,  ;
49         or
50        (  2    b )  On each of some twenty (20) days during
51        the calendar year or during the preceding calendar year, each day being in


                                      9

 1        a different calendar week, employed  at  least  ten  (10)  individuals  in
 2        employment in agricultural labor for some portion of the day.
 3        (  3  c )  Such labor is not agricultural labor when
 4        it is performed by an individual who is an alien admitted  to  the  United
 5        States  to  perform  agricultural  labor  pursuant  to sections 214(c) and
 6        101(a)(15)(H) of the immigration and nationality act, unless the  individ-
 7        ual is required to be covered by the federal unemployment tax act.
 8        (  f   6 )  A crew leader who furnishes members of a
 9    crew to perform agricultural labor for another person if:
10        ( 1  a )   Such    The    crew
11        leader  holds  a  valid  certificate of registration under the migrant and
12        seasonal agricultural worker protection act; or
13        ( 2  b )  Substantially all the members of such crew
14        operate or maintain tractors, mechanized harvesting or crop-dusting equip-
15        ment, or any other mechanized equipment, which is provided by    such
16          the  crew leader; and
17        (  3  c )   If such individual   The
18        crew leader  is not an employee of such other person  .  
19         within the meaning of section 72-1316(d), Idaho Code. 
20        (  g  7 )  In the case of any individual who is fur-
21    nished by a crew leader to perform agricultural labor for another person, such
22    other person and not the crew leader shall be treated as the employer of 
23    such   the  individual if  such   the  
24    crew  leader is not, under the provisions of subsection ( f  6
25    ) of this section, considered to be the employer and such  other  person
26    shall  be  treated as having paid cash remuneration to  such  
27    the  individual in an amount equal to the amount  of  cash  remuneration
28    paid  to    such      the  individual by the crew leader
29    (either on his behalf or on behalf of such other person) for the  agricultural
30    labor performed for such other person.
31        (  h  8 )  In the case of domestic service in a pri-
32    vate home, local college club, or local chapter of  a  college  fraternity  or
33    sorority,   with respect to any calendar year,  any person who dur-
34    ing any calendar quarter in the calendar year or the preceding  calendar  year
35    paid wages in cash of one thousand dollars ($1,000) or more for such service.
36          (1)    A person treated as a covered employer under this sub-
37    section ( h  8 ) shall  not  be  treated  as  a  covered
38    employer  with  respect to wages paid for any service other than domestic ser-
39    vice referred to in this subsection ( h  8 ) unless such
40    person is treated as a covered employer under subsection ( a  
41    1  )  or ( e  5 ) of this section, with respect to
42    such other service.
43        ( i  9 )  Any governmental entity as defined in sec-
44    tion 72-1322C, Idaho Code.
45        ( j  10 ) A nonprofit  organization  as  defined  in
46      subsection (a) of  section 72-13 49A  22D ,
47    Idaho Code.
48        ( k  11 ) An employer who has elected coverage  pur-
49    suant  to  the provisions of subsection ( c  3 ) of sec-
50    tion 72-1352, Idaho Code.

51        SECTION 16.  That Section 72-1315A, Idaho Code, be, and the same is hereby
52    amended to read as follows:

53        72-1315A.  COST REIMBURSEMENT EMPLOYER.  The  term    "  c


                                      10

 1      C  ost reimbursement employer" means a covered employer who
 2    is eligible and  elects  to  reimburse  the  fund  for  proportionate  benefit
 3    cost  s    in  lieu  of contributions as provided in section s
 4     72-1349A  and 72-1349B , Idaho Code.

 5        SECTION 17.  That Section 72-1316, Idaho Code, be, and the same is  hereby
 6    amended to read as follows:

 7        72-1316.  COVERED  EMPLOYMENT.  (  a   1 )  The
 8    term    "  c    C  overed  employment"  means   an
 9    individual's  entire  service , including service in interstate commerce,
10     performed by him for wages or under any contract of  hire,  written  or
11    oral, express or implied.
12        (  b    2  )  Notwithstanding any other provision of
13    state law, services shall be deemed to be in covered employment if   with
14    respect  to  such services  a tax is required to be paid or was required
15    to be paid the previous year  pursuant to the provisions of   
16    on  such services under  the federal unemployment tax act  imposing
17    a tax against which credit may be taken for contributions required to be  paid
18    into  a state unemployment fund  or if the director determines that as a
19    condition for full tax credit against the tax imposed by the federal unemploy-
20    ment tax act such services are required to be covered  under  this    act
21      chapter .
22        (  c   3 )  Services covered by an election pursuant
23    to section 72-1352, Idaho Code, and services covered by an election  duly
24     approved by the director  in accordance with an arrangement 
25    pursuant to section 72-1344, Idaho Code, shall be deemed to be covered employ-
26    ment during the effective period of such election.
27        ( d  4 )  Services performed by  an  individual  for
28    remuneration  shall,  for the purposes of the employment security law, be cov-
29    ered employment : 
30         (1)  U  u nless it is shown:
31        ( A  a )  That the worker has been and will continue
32        to be free from control or direction in the performance of his work,  both
33        under his contract of service and in fact ,  ;  and
34        (  B  b )  That the worker is engaged in an indepen-
35        dently established  trade,  occupation,  profession,  or  business  .
36         ; 
37          (2)  Even  though such individual meets the exemption of subsection
38        (d)(1)(A) and (B) of this section but performs services;
39             (A)  As an agent-driver or commission-driver engaged in  distributing
40             meat  products,  vegetable products, fruit products, bakery products,
41             beverages, or laundry or dry cleaning services for his principal;
42             (B)  As a traveling or city salesman engaged upon a  full-time  basis
43             in the solicitation on behalf of, and the transmission to his princi-
44             pal  (except  for  side line sales activities on behalf of some other
45             person) of orders from wholesalers, retailers, contractors, or opera-
46             tors of hotels, restaurants, or other similar establishments for mer-
47             chandise for resale or supplies for use in their business operations.
48        (3)  Services shall not be deemed to be in covered  employment  under  the
49        provisions  of  subsection  (d)(2) of this section unless the individual's
50        contract of service contemplates that substantially all of  such  services
51        are  to  be  performed  personally  by  such  individual; except that such
52        individual's services shall not be deemed to be in covered  employment  if
53        such individual has a substantial investment in facilities used in connec-


                                      11

 1        tion  with  the  performance  of  such services, other than facilities for
 2        transportation, or if the services are in the nature of a single  transac-
 3        tion  not  part  of a continuing relationship with the person for whom the
 4        services are performed. 
 5        ( e  5 )   The term  " c 
 6    C overed employment" shall include an individual's entire service,  per-
 7    formed  within  or  both  within  and  without this state ,  :
 8    
 9        ( 1  a )  If the service is localized in this state;
10        or
11        ( 2  b )  If the service is  not  localized  in  any
12        state  but  some  of  the service is performed in this state , 
13        and : 
14             (  A      i   )  The   individual's   base   of
15             operations ,  or , if there is no base of operations,
16             then    the  place  from  which  such  service  is  directed or
17             controlled ,  is in this state ,  ; 
18             or
19             ( B  ii )  The individual's base of  operations
20             or  place from which such service is directed or controlled is not in
21             any state in which some part  of  the  service  is  performed  ,
22              but the individual's residence is in this state.
23        (  3    c )  Service shall be deemed to be localized
24        within a state if : 
25             ( A  i )  The  service  is  performed  entirely
26             within such state; or
27             ( B  ii )  The service is performed both within
28             and  without such state, but the service performed without such state
29             is incidental to the individual's service within the state , for
30             example,  is temporary ,   or  transitory
31             in nature ,  or consists of isolated transactions.
32        ( 4  d )   The term  " c 
33        C overed employment" shall include an individual's service, wherever
34        performed within the United States, or Canada, if : 
35             ( A  i )  Such service is not covered under the
36             unemployment compensation law of any other state, the Virgin Islands,
37             or Canada ,  ;  and
38             ( B  ii )  The place from which the service  is
39             directed or controlled is in this state.
40        ( f  6 )   The term  " c 
41    C  overed employment" shall include the services of an individual who is
42    a citizen of the United States, performed outside the United  States,  (except
43    in  Canada) in the employ of an American employer (other than service which is
44    deemed "covered employment"  under  the  provisions  of  subsection  (  e
45      5  )  of this section or the parallel provisions of another
46    state's law) ;  ,  if : 
47        ( 1  a )  The employer's principal place of business
48        in the United States is located in this state; or
49        ( 2  b )  The employer has no place of  business  in
50        the United States; but
51             (  A   i )    The employer i  I
52             s an individual who is a resident of this state; or
53             ( B  ii )   The employer i    I
54             s  a  corporation  which  is  organized  under the laws of this
55             state; or


                                      12

 1             ( C  iii )  The employer i    I
 2             s  a  partnership  or a trust and the number of the partners or
 3             trustees who are residents of this state is greater than  the  number
 4             who are residents of any other state; or
 5        ( 3  c )  None of the criteria of provision ( 1
 6         a ) or ( 2  b ) of this subsection
 7         are   is  met but the employer has elected coverage
 8        in  this  state,  or  the  employer having failed to elect coverage in any
 9        state, the individual has filed a claim for benefits based  on  such  ser-
10        vice, under the law of this state;
11        (  4    d  )  An "American employer" for purposes of
12        this subparagraph means a person who is:
13             ( A  i )   An individual who is a  resident  of
14             the United States; or
15             ( B  ii )  A partnership if two-thirds (2/3) or
16             more of the partners are residents of the United States; or
17             (  C   iii ) A trust if all of the trustees are
18             residents of the United States; or
19             ( D  iv )  A corporation  organized  under  the
20             laws of the United States or of any state ;  . 
21        (  5    e  )  For purposes of this subsection ,
22          (f) the term  "United States"  means  the  states,  the
23        District  of  Columbia,   and  the Commonwealth of Puerto Rico,
24        and the Virgin Islands.

25        SECTION 18.  That Section 72-1316A, Idaho Code, be, and the same is hereby
26    amended to read as follows:

27        72-1316A.  EXEMPT EMPLOYMENT.  The term  " e  E
28    xempt employment" means  service performed :
29         (a)  Agricultural labor, as defined by section 72-1304, Idaho  Code,
30    unless after December 31, 1977, the individual's service was for a person who:
31        (1)  During  any calendar quarter in the current calendar year or the pre-
32        ceding calendar year  paid  wages  in  cash  of  twenty  thousand  dollars
33        ($20,000) or more for agricultural labor; or
34        (2)  On  each  of some twenty (20) days during the calendar year or during
35        the preceding calendar year, each day being in a different calendar  week,
36        employed at least ten (10) individuals in employment in agricultural labor
37        for some portion of the day in which case such service shall be considered
38        service in covered employment.
39        (b)  Service  performed  as domestic service in a private home, local col-
40    lege club, or local chapter of a college fraternity or sorority  unless  after
41    December  31,  1977,  the service was performed for a person who paid wages in
42    cash of one thousand dollars ($1,000) or more to individuals employed in  such
43    domestic service in any calendar quarter in the calendar year or the preceding
44    calendar  year, in which case such service shall be considered covered employ-
45    ment. 
46         (c) (1)   Service performed b   B  y  an
47    individual in the employ of his spouse or child ;  . 
48        (2)    Service  performed  b  B y a person under the
49    age of twenty-one (21) years in the employ of  his  father  or  mother  ;
50     . 
51        (3)    Service  performed b  B y an individual under
52    the age of twenty-two (22) who is enrolled as a student in a full-time program
53    at an accredited nonprofit or public education institution for which credit at


                                      13

 1    such institution is earned in a program which  combines  academic  instruction
 2    with  work  experience  .    ,  except  that  t   T
 3    his subparagraph shall not apply  to  service  performed  in  a  program
 4    established at the request of an employer or group of employers.
 5        (  d    4 )   Service performed i  I
 6    n the employ of the United States government or  an  instrumentality  of
 7    the  United States exempt under the constitution of the United States from the
 8    contributions imposed by this  act except that, to the  extent  that  the
 9    Congress of the United States shall permit states to require any instrumental-
10    ity  of the United States to make payments into a fund under a state unemploy-
11    ment compensation or insurance law, all of the provisions of this act shall be
12    applicable to such instrumentalities,  and  to  services  performed  for  such
13    instrumentalities,  in  the  same  manner, to the same extent, and on the same
14    terms as to all other covered employers, persons, individuals,  and  services;
15    provided, that if this state shall not be certified for any year by the secre-
16    tary of labor under section 3304 of the Federal Internal Revenue Code of 1954,
17    the payments required of such instrumentality with respect to  such year shall
18    be refunded by the director from the employment security fund in the same man-
19    ner  and within the same period as is provided in section 72-1357, Idaho Code,
20    with respect to  contributions  erroneously  collected      chapter
21    .
22        (  e    5 )   Service performed i  I
23    n the employ of a governmental entity in the exercise of duties:
24        ( 1  a )  As an elected official;
25        ( 2  b )  As a member of a legislative  body,  or  a
26        member of the judiciary, of a state or political subdivision thereof;
27        ( 3  c )  As a member of the state national guard or
28        air national guard;
29        (  4    d  )  As  an employee serving on a temporary
30        basis in case of fire, storm, snow, earthquake, flood,  or  similar  emer-
31        gency; or
32        ( 5  e )  In a position which,  under or 
33        pursuant  to  the  law s  of this state, is designated as (i) a
34        major nontenured policy making or advisory position, or (ii) a policy mak-
35        ing or advisory position  the performance of  the  duties  of  
36        which ordinarily does not require more than eight (8) hours per week.
37        ( f  6 )   Prior to January 1, 1978, for a hos-
38    pital  in a state prison or other state correctional institution b 
39    B  y  an  inmate  of    the  prison  or       a   
40    correctional  , custodial or penal  institution ,  
41    and after December 31, 1977, by an inmate of a custodial or penal  
42    if such services are performed for or within such  institution.
43        ( g  7 )   Service  performed:  (1)    In
44    the employ of : 
45        (  i    a  )   a  A  church or
46        convention or association of churches ,  ;  or
47        ( ii  b )   a  A  n  organiza-
48        tion which is operated primarily for religious purposes and which is oper-
49        ated,  supervised,  controlled,  or  principally supported by a church, or
50        convention or association of churches; or
51        ( 2  c )  In the employ of an institution of  higher
52        education,  if it is devoted primarily to preparation of a student for the
53        ministry or training candidates to become members of a religious order; or
54        ( 3  d  )  By  a  duly  ordained,  commissioned,  or
55        licensed minister of a church in the exercise of his ministry or by a mem-


                                      14

 1        ber  of  a  religious  order  in  the  exercise of duties required by such
 2        order ; or  . 
 3        (  4    8  )    By  a  program  participant   i
 4      I  n a facility  conducted for the purpose of carrying
 5    out a program of   that provides  rehabilitation for individ-
 6    uals whose earning capacity is impaired by age ,    or  
 7    physical  or  mental  deficiency  ,    or injury or  providing
 8      provides  remunerative  work  for  individuals  who  ,
 9      because  of  their  impaired physical or mental capacity , 
10    cannot be readily absorbed in to    the    competitive  
11    labor  market  .   by an individual receiving such rehabilita-
12    tion or remunerative work; or 
13        ( 5  9 )  As part of  an  unemployment  work  relief
14    program  or  as  part  of  an  unemployment  work training program assisted or
15    financed in whole or in part by any federal agency or an agency of a state  or
16    political  subdivision thereof, by an individual receiving such work relief or
17    work training.
18        ( h  10 ) Service with respect to which unemployment
19     compensation or  insurance is payable under an unemployment  
20    compensation      insurance   system established by an act of
21    congress other than the social security act.
22        ( i  11 )  Service performed  a    A
23    s a student nurse in the employ of a hospital or nurses' training school
24    by  an  individual  who  is  enrolled  and is regularly attending courses in a
25    nurses' training school  chartered or  approved pursuant  to  
26    the    state  law, and service performed as an intern in the employ of a
27    hospital by an individual who has completed a course in a medical school 
28    chartered or  approved pursuant to state law.
29        ( j  12 )  Service performed  b    B
30    y an individual under the age of eighteen (18) years  of age 
31    in  the  delivery or distribution of newspapers or shopping news not including
32    delivery or distribution to any point for subsequent delivery or distribution.
33        ( k  13 )  Service performed  b    B
34    y  an  individual  for a person as an insurance agent or as an insurance
35    solicitor, if all such service performed by such individual for such person is
36    performed for remuneration solely by way of commission.
37        ( l  14 )  Service performed  b    B
38    y  an  individual  for  a real estate broker as an associate real estate
39    broker or as a real estate salesman, if all such  service  performed  by  such
40    individual for such person is performed for remuneration solely by way of com-
41    mission.
42        (  m  15 ) Service covered by an election  duly
43     approved by the agency charged with the  administration  of  any  other
44    state  or  federal  employment compensation or  unemployment insur-
45    ance law, in accordance with an arrangement pursuant to section 72-1344, Idaho
46    Code , during the effective period of such election .
47        ( n  16 )  Service performed  i    I
48    n  the  employ  of  a school or college by a student who is enrolled and
49    regularly attending classes at such school or college.
50        ( o  17 )  Service performed  i    I
51    n the employ of a hospital by a  resident  patient  dur-
52    ing the time that he is a patient  of such hospital.
53        (  p   18 )  Services performed b  B
54    y a member of an AmeriCorps program.


                                      15

 1        SECTION 19.  That Section 72-1316B, Idaho Code, be, and the same is hereby
 2    repealed.

 3        SECTION 20.  That Section 72-1317, Idaho Code, be, and the same is  hereby
 4    amended to read as follows:

 5        72-1317.  CUT-OFF DATE. September 30 immediately following the computation
 6    date is designated as the cut-off date for experience rating  computation
 7     purposes.

 8        SECTION  21.  That Section 72-1318, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        72-1318.  DIRECTOR.    The  term    "  d      D
11    irector"  means  the  individual  appointed pursuant to section 72-1331,
12    Idaho Code , who is charged with the responsibility of administering  the
13    Employment Security Law .

14        SECTION  22.  That Section 72-1319, Idaho Code, be, and the same is hereby
15    amended to read as follows:

16        72-1319.  ELIGIBLE EMPLOYER. (  a    1  )    To
17    determine  experience ratings for the year 1969 and every calendar year there-
18    after, the term  " e  E ligible employer" means  a
19    covered  employer  who has completed a qualifying period as defined in subsec-
20    tion ( b  2 ) of this section, and  who  has  filed  all
21    payroll reports required, has paid, on or before the cut-off date, all contri-
22    butions  and penalties due and has established a record of accumulated contri-
23    butions in excess of benefits charged to his account. For the purposes of this
24    section, delinquencies of a minor nature may be disregarded if    showing
25    is  made  to the satisfaction of  the director  is satisfied 
26    that such covered employer has acted in good faith and that  forfeiture  of  a
27    reduced taxable wage rate because of such minor delinquency would be inequita-
28    ble.
29        ( b  2 )  "Qualifying period" shall be the period of
30    three  (3)  consecutive  years ending on the computation date in which, during
31    all of said years, the employer shall be chargeable for  benefits  under  this
32    state  law,  except, that a new employer shall have a qualifying period of one
33    (1) year ending on the computation date in which, during all of said year, the
34    employer shall be chargeable for benefits under this state law.
35         (c)  If the director finds that an  employer's  business  is  closed
36    solely  because  of the entrance of one or more of the owners, officers, part-
37    ners, or the majority stockholder into the armed forces of the United  States,
38    of  any  of  its  allies, or of the United Nations after January 1, 1951, such
39    employer's account shall not be terminated; and, if the  business  is  resumed
40    within  2  years  after the discharge or release from active duty in the armed
41    forces of such person or persons, the employer's experience shall be deemed to
42    have been continuous throughout such period. The experience factor as  defined
43    in section 72-1351(a)(1) of any such employer shall be the total contributions
44    paid by such employer minus all benefits (including benefits paid to any indi-
45    vidual  during  the  period  such employer was in the armed forces) based upon
46    wages paid by him prior to his entrance into such forces, divided by the aver-
47    age of his annual payrolls for the number of fiscal years immediately  preced-
48    ing the computation date such employer has been in business prior to and after
49    service  in  the  armed  forces, using a minimum of two (2) fiscal years and a


                                      16

 1    maximum of four (4) fiscal years. 

 2        SECTION 23.  That Section 72-1319A, Idaho Code, be, and the same is hereby
 3    amended to read as follows:

 4        72-1319A.  DEFICIT EMPLOYER.  The term  " d   D
 5    eficit  employer"  means a covered employer who has established a record
 6    of accumulated benefits charged to his account in excess  of  his  accumulated
 7    contributions paid as of the cut-off date.

 8        SECTION 24.  That Section 72-1319B, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        72-1319B.  TAXABLE WAGE RATE.  The term  " t  T
11    axable  wage  rate"  means  the  numerical  values provided in  sub
12    section 72-1350( g  7 ), Idaho Code, for the  pur-
13    pose  of  establishing  contribution rates, training tax rates and reserve tax
14    rates for covered employers.

15        SECTION 25.  That Section 72-1320, Idaho Code, be, and the same is  hereby
16    amended to read as follows:

17        72-1320.  CREW  LEADER.    The  term    "  c  C
18    rew leader" means an individual who:
19        ( a  1 )  Furnishes individuals to perform  agricul-
20    tural labor for any other person ,  ; 
21        ( b  2 )  Pays (either on his behalf or on behalf of
22    such  other  person)  the individuals so furnished by him for the agricultural
23    labor performed by them ,  ;  and
24        ( c  3 )  Has not entered into a  written  agreement
25    with  such  other  person  under  which  such  individual  is designated as an
26    employee of such other person.

27        SECTION 26.  That Section 72-1321, Idaho Code, be, and the same is  hereby
28    repealed.

29        SECTION  27.  That Section 72-1322, Idaho Code, be, and the same is hereby
30    amended to read as follows:

31        72-1322.  EXPERIENCE RATING .   DEFINED.    The
32    term    " e  E xperience rating" means a method of
33    determining variable taxable wage rates allowed to covered employers.

34        SECTION 28.  That Section 72-1322A, Idaho Code, be, and the same is hereby
35    amended to read as follows:

36        72-1322A.  HOSPITAL .   DEFINED.      The  term
37      "  h  H ospital" means any institution which has
38    been licensed by, certified, or approved by the state board  of  health  
39    and welfare  as a hospital.

40        SECTION 29.  That Section 72-1322B, Idaho Code, be, and the same is hereby
41    amended to read as follows:

42        72-1322B.  EDUCATIONAL  INSTITUTION  .     DEFINED. 


                                      17

 1     For purposes of this act,  " e  E ducational
 2    institution" means : 
 3        ( a  1 )  An institution of higher education which:
 4        ( 1  a )  Admits as regular students only  individu-
 5        als  having  a certificate of graduation from a high school, or the recog-
 6        nized equivalent of such a certificate; and
 7        ( 2  b )  Is  legally   authorized  
 8        in this state  to provide a program of education beyond high school;
 9        and
10        (  3  c )  Provides an educational program for which
11        it awards a bachelor's or higher degree, or provides a  program  which  is
12        acceptable  for full credit toward such a degree,  a program of post-
13        graduate or post-doctoral studies,  or a program of training to pre-
14        pare students for gainful employment in a recognized occupation.
15        ( b  2 ) A primary or secondary  school  which  pro-
16    vides education from preschool and kindergarten through grade twelve (12).

17        SECTION 30.  That Section 72-1322C, Idaho Code, be, and the same is hereby
18    amended to read as follows:

19        72-1322C.  GOVERNMENTAL  ENTITY  .   DEFINED.  
20    When used in this act the term  " g  G overnmental
21    entity" means this state or any of its instrumentalities ,    
22    or  any    political  subdivision  s,     thereof or its
23    instrumentalities or any instrumentality of more than one of the foregoing  or
24    any instrumentality which is jointly owned by this state or a political subdi-
25    vision  thereof and one or more other states or political subdivisions of this
26    or other states provided that service for such an   or districts of
27    whatever type or nature including, but not limited to, school districts,  cit-
28    ies,  counties, taxing districts, or other entities, as well as any instrumen-
29    tality of one (1) or more of the foregoing or that is jointly  owned  by  this
30    state  or  a political subdivision thereof and one (1) or more other states or
31    political subdivisions of this or other states, if service for any  such  gov-
32    ernmental   entity is excluded from "employment" as defined in the 
33    F  f ederal  U  u nemployment    T
34      t  ax  A  a ct ,   by
35    section   26 U.S.C.  3306(c)(7) .    of  that
36    act  and  is  not  excluded from "employment" under section 72-1316A(e), Idaho
37    Code. 

38        SECTION 31.  That Chapter 13, Title 72, Idaho Code, be, and  the  same  is
39    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
40    known and designated as Section 72-1322D, Idaho Code, and to read as follows:

41        72-1322D.  NONPROFIT ORGANIZATION. "Nonprofit organization" means a  reli-
42    gious,  charitable,  educational,  or other organization which is described in
43    section 501(c)(3) of the federal internal revenue code  and  which  is  exempt
44    from tax under section 501(a) of such code.

45        SECTION  32.  That Section 72-1323, Idaho Code, be, and the same is hereby
46    amended to read as follows:

47        72-1323.  INTERESTED PARTIES.  The term  " i  I
48    nterested party" with respect to a claim for benefits means  the  claim-
49    ant,  the  claimant's last regular employer, the  covered  employer


                                      18

 1    whose account is chargeable for experience rating  purposes,  the  cost  reim-
 2    bursement  employer who may be billed for any portion of benefits claimed, and
 3    the  D  d irector or a n    duly  
 4    authorized  representative  of any of them;  an  "interested party"
 5    with respect to proceedings involving employer liability  means  the  employer
 6    and  the    D    d irector or a n   duly
 7     authorized representative .   of either of them. 

 8        SECTION 33.  That Section 72-1324, Idaho Code, be, and the same is  hereby
 9    amended to read as follows:

10        72-1324.  PAYROLL.      The   term    "  p    P
11    ayroll" means the amount of wages ,  as  defined  in  section
12    72-1328  ,  Idaho  Code,    paid  by a covered employer for covered
13    employment , except that with respect to years prior to  1947,  the  term
14    "payroll"  means  the amount of wages payable for covered employment by a cov-
15    ered employer .

16        SECTION 34.  That Section 72-1325, Idaho Code, be, and the same is  hereby
17    amended to read as follows:

18        72-1325.  PERSON.      The   term     "  p    P
19    erson" means any individual  or type of organization, including any
20    partnership, association, trust, estate, joint-stock company,  insurance  com-
21    pany, or corporation   and any other entity recognized by Idaho law
22    ,  whether  domestic or foreign, or the receiver, trustee in bankruptcy,
23    trustee, or successor of any of the foregoing, or the legal representative  of
24    a deceased person.

25        SECTION  35.  That Section 72-1326, Idaho Code, be, and the same is hereby
26    repealed.

27        SECTION 36.  That Section 72-1327, Idaho Code, be, and the same is  hereby
28    amended to read as follows:

29        72-1327.  STATE.   The term  " s  S tate"
30    includes, in addition to the states of the United States of America, the  Dis-
31    trict  of  Columbia,  the Dominion of Canada, the Commonwealth of Puerto Rico,
32    and the Virgin Islands.

33        SECTION 37.  That Section 72-1327A, Idaho Code, be, and the same is hereby
34    amended to read as follows:

35        72-1327A.  VALID CLAIM.  The  term    "  v    V
36    alid  claim"    shall  mean s  any application for
37    benefits which is found to be eligible as provided in section  72-1367,  
38    Idaho Code,  and which has been filed in accordance  and consistent
39      with  this   act   chapter  and such rules 
40    and regulations  as the director may prescribe.

41        SECTION 38.  That Section 72-1328, Idaho Code, be, and the same is  hereby
42    amended to read as follows:

43        72-1328.  WAGES.  (  a    1  )  The term 
44    " w  W ages" shall include:


                                      19

 1        ( 1  a )  All  remuneration  for  personal  services
 2        from whatever source, including commissions and bonuses and the cash value
 3        of  all  remuneration  in any medium other than cash . The reasonable
 4        cash value of remuneration in any medium other than cash  shall  be  esti-
 5        mated  and  determined in accordance with rules prescribed by the director
 6        ;
 7        ( 2  b )  All tips received  while  performing  ser-
 8        vices  in covered employment totaling twenty dollars ($20.00) or more in a
 9        month,  and  which are reported in writing to the  employer  as
10        required under federal law;
11        (  3   c )  Any employer contribution under a quali-
12        fied cash or deferred agreement as defined in  26  U.S.C.  401(k)  to  the
13        extent  such  contribution is not included in gross income by reason of 26
14        U.S.C. 402(a)(8).
15        ( b  2 )  The term "wages" shall not include:
16        ( 1  a )   The amount  of  any  payment  
17         Payments  (including any amount paid by an employer for insur-
18        ance  or annuities, or into a fund, to provide for any such payment), made
19        to, or on behalf of, an individual or any of his dependents under  a  plan
20          or  system   established by an employer which makes provision
21        generally for individuals performing service for him (or for such individ-
22        uals generally and their dependents) or for a class  or  classes  of  such
23        individuals  (or  for  a  class  or  classes of such individuals and their
24        dependents), on account of (i) sickness or accident  disability  (but,  in
25        the  case  of  payments made to an employee or any of his dependents, this
26        subparagraph shall exclude from the term "wages" only payments  which  are
27        received under a  workmen's   worker's  compensation
28        law), or (ii) medical or hospitalization expenses in connection with sick-
29        ness or accident disability, or (iii) death;
30        (  2    b  )   The amount of any payment 
31         Payments  on account of sickness or  accident  disability,  or
32        medical  or  hospitalization expenses in connection with sickness or acci-
33        dent disability , made  by an employer to, or on behalf of,  an
34        individual  performing  services  for  him after the expiration of six (6)
35        calendar months following the last calendar month in which the  individual
36        performed services for such employer;
37        (  3    c  )   The amount of any payment 
38         Payments  made by an employer to, or on behalf of, an individ-
39        ual performing services for him or his beneficiary (i) from or to a  trust
40        described  in section 401(a) of the Federal Internal Revenue Code which is
41        exempt from tax under section 501(a) of the Federal Internal Revenue  Code
42        at  the  time of such payment unless such payment is made to an individual
43        performing services for the trust as remuneration for  such  services  and
44        not  as  a  beneficiary  of the trust, or (ii) under or to an annuity plan
45        which, at the time of such payments, is a plan described in section 403(a)
46        of the Federal Internal Revenue Code, under a cafeteria  plan  within  the
47        meaning of section 125 of the Federal Internal Revenue Code;
48        (  4    d  )   The amount of any payment 
49         Payments  made by an  employer  (without  deduction  from  the
50        remuneration  of  the individual in its employ) of the tax imposed upon an
51        individual in his employ under section 3101 of the Federal Internal  Reve-
52        nue Code; or
53        ( 5  e )  Noncash payments for farm work.
54        ( c  3 )   Except as otherwise provided in reg-
55    ulations  prescribed  by  the  director,  a  A ny third party


                                      20

 1    which makes a sickness or accident disability payment, which is  not  excluded
 2    from wages under subsection ( b  2 )( 1 
 3    a )(i) of this section, shall be treated as the employer with respect to
 4    such  payment of wages for the purposes of this  act   chapter
 5    .

 6        SECTION 39.  That Section 72-1329, Idaho Code, be, and the same is  hereby
 7    amended to read as follows:

 8        72-1329.  WAITING    PERIOD     WEEK .  (a) The
 9    waiting period of an eligible benefit claimant shall consist of one (1) week.
10        (b)  A waiting period week of a benefit claimant shall be a week:
11        (1)  Of either no work or less than full-time work;
12        (2)  Which is the first week claimed in each of his benefit years; and
13        (3)  With respect to which benefits have not been paid to him; and
14        (4)  In which he complied with all  the  personal  eligibility  conditions
15        prescribed in section 72-1366, Idaho Code; and
16        (5)  In  which the total wages payable to him for less than full-time work
17        performed in such week amounted to less  than  one  and  one-half  (1 1/2)
18        times  his  weekly  benefit  amount    "Waiting week" means the
19        first week of a benefit year that meets the  criteria  for  a  compensable
20        week in section 72-1312(1) through (4), Idaho Code, but for which no bene-
21        fits  will  be  paid  to the claimant. Every claimant shall have a waiting
22        week each benefit year .

23        SECTION 40.  That Section 72-1330, Idaho Code, be, and the same is  hereby
24    amended to read as follows:

25        72-1330.  WEEK.    The  term  " w  W eek"
26    means  such   a  period of seven  (7)  consecutive  days
27      as the director by regulation may prescribe   ending at mid-
28    night on Saturday .

29        SECTION 41.  That Section 72-1331, Idaho Code, be, and the same is  hereby
30    amended to read as follows:

31        72-1331.  ADMINISTRATION.  The  E  e mployment 
32    S  s ecurity  L  l aw shall be adminis-
33    tered by the director ,   of the department of  labor,  
34    who  shall  be appointed by the governor , with the advice and consent of
35    the senate.  The provisions of this section shall become  effective  when  the
36    office of director becomes vacant for any reason . Any appointments made
37    under    the  provisions of  this section shall be confirmed by the
38    state senate.  If an appointment is made during the recess of the  legis-
39    lature,  it  shall  be  subject  to confirmation by the senate during its next
40    ensuing session. 

41        SECTION 42.  That Section 72-1332, Idaho Code, be, and the same is  hereby
42    amended to read as follows:

43        72-1332.  AUTHORITY  AND DUTIES OF THE COMMISSION. The  C 
44    c ommission  shall have the power and  authority      is
45    authorized    to hear and decide  all  matters appealed to it
46    in accordance with the provisions of  this    act      chapter
47      and  the    F    f  ederal  U  u


                                      21

 1    nemployment   T    t  ax    A    a
 2    ct. In addition to salaries paid from the industrial administration fund
 3    each  member of the  C  c ommission shall receive a sal-
 4    ary to be paid from the employment security administration fund in  an  amount
 5    equal  to one-half (1/2) of the salary paid from the industrial administration
 6    fund.  In addition to the amount paid to the Commission for  salaries,  p
 7      P  rior  to  the beginning of each fiscal year, the  D
 8     d epartment  of Employment  and the   Indus-
 9    trial C  c ommission shall negotiate an amount to be paid the
10      Industrial C  c ommission to reimburse it for the cost
11    of personal and nonpersonal services involved in hearing appeals  as  provided
12    in section 72-1368( f  6 ), Idaho Code.

13        SECTION  43.  That Section 72-1333, Idaho Code, be, and the same is hereby
14    amended to read as follows:

15        72-1333.  DEPARTMENT OF LABOR -- AUTHORITY AND  DUTIES  OF  THE  DIRECTOR.
16    (  a   1 )  It shall be the duty of t  T
17    he director  of the department  of  labor  to      shall
18      administer  the employment security law, the minimum wage law, chapter
19    15, title 44, Idaho Code, the provisions of chapter 6, title 45,  Idaho  Code,
20    relating  to  claims for wages, the provisions of section 44-1812, Idaho Code,
21    relating to medical and health standards for paid firefighters, and to perform
22    such other duties relating to  labor  and  workforce  development  as  may  be
23    imposed  upon  him  by  law. The director shall be the successor in law to the
24    office enumerated in section 1, article XIII, of the constitution of the state
25    of Idaho. The director shall have the   power  and    authority  to
26    employ    such  persons    individuals , make  such
27     expenditures, require  such  reports, make  such 
28    investigations, perform  such  travel and take    such  
29    other  actions    as he deems   deemed  necessary .
30      or suitable to that end. He      The  director  
31    shall    determine his own organization to be known as   orga-
32    nize  the "department of labor"  which  is  hereby  created,  and  which
33    shall,  for the purposes of section 20, article IV, of the constitution of the
34    state of Idaho, be an executive department of the state government.   The
35    references  in  the employment security law to "agency," and "employment secu-
36    rity agency," are hereby deemed to be references to the "department of labor."
37     The director shall   determine  methods  of  procedure  and  shall
38     have an official seal which shall be judicially noticed.
39        (  b    2 )  The director shall have the  power
40    and  authority pursuant to chapter 52, title 67, Idaho Code,  to  adopt,
41    amend,  or  rescind    such   rules as  may be   he
42    deems  necessary for the proper  administration of this act and the
43     performance of all   other    duties  imposed  upon  him  by
44    law  .      including,  without limitation, administration and
45    implementation of the minimum wage law, chapter  15,  title  44,  Idaho  Code;
46    administration and implementation of the law governing claims for wages, chap-
47    ter  6,  title  45,  Idaho Code; and compliance with the provisions of section
48    44-1812, Idaho Code, relating to medical and health standards for  paid  fire-
49    fighters;  subject, however, to prior approval by the governor of the proposed
50    action. 
51        ( c  3 )  Subject to the provisions of  chapter  53,
52    title 67, Idaho Code, the director is authorized and directed to provide for a
53    merit system for the department covering all persons, except the director, the


                                      22

 1    division  administrators,  and    one      two  ( 1
 2     2 ) exempt position s  to serve at  the  pleasure
 3      and  discretion    of the director .  , and shall
 4    have authority, by rule, to provide for all matters which are  appropriate  to
 5    the  establishment  and  maintenance of such system on the basis of efficiency
 6    and fitness. The director is authorized to adopt such rules as may  be  neces-
 7    sary  to meet personnel standards promulgated by the secretary of labor pursu-
 8    ant to the Social Security Act, as amended, or other applicable  federal  laws
 9    and  to  provide  for  the maintenance of the merit system required under this
10    section in conjunction with the merit system applicable to any  other  depart-
11    ment  or  departments of this state which meet the personnel standards promul-
12    gated by the secretary of labor or other appropriate federal authority.
13        (d)  The director shall acquire and disseminate among the  people  of  the
14    state, information on subjects connected with labor and workforce development,
15    relations  between  employees, employers and the public, hours of labor, wages
16    and working conditions, the best means of minimizing the  economic  effect  of
17    disputes  between  workers  and employers, and of promoting the welfare of all
18    working people. 
19        ( e  4 )  The director    shall  represent  the
20    state of Idaho in dealings with the federal mediation and conciliation service
21    of  the  United  States,  the  department  of  labor of the United States with
22    respect to apprentice training programs and with the  veterans  administration
23    of the United States with respect to job training programs.
24        (f)  Annually, not later than the 31st day of December, the director shall
25    submit  to  the governor a report covering the administration and operation of
26    the employment security law and the other activities of the department  during
27    the  preceding  fiscal  year  ending June 30, and  shall make  such
28     recommendations for amendments to the employment security law and other
29    laws he is charged to implement as he deems proper.
30         (g)  On and after the effective date of this act, all of the  powers
31    and  duties  imposed  upon  or  granted  to  the director of the department of
32    employment or the director of the department of labor and industrial  services
33    by  the  laws  of  the state of Idaho or the United States or the rules of the
34    department of employment or the department of labor and industrial services or
35    the rules and regulations of the United States, except those powers and duties
36    granted and reserved to the administrator of the division of  building  safety
37    by  this  act,  are  hereby  transferred  to the director of the department of
38    labor. The director of the department of labor shall have all the  powers  and
39    duties  as  may  have been or could have been exercised by his predecessors in
40    law and he shall be the  successor  in  law  to  all  contractual  obligations
41    entered  into  by  his  predecessor  in law, except for those contracts of the
42    department of labor and industrial services to be performed by the division of
43    building safety. 

44        SECTION 44.  That Section 72-1334, Idaho Code, be, and the same is  hereby
45    amended to read as follows:

46        72-1334.  PUBLICATION  S . The director shall  cause to be
47    printed   print  for distribution to  the  public    the
48    text  of  this  act,  his  rules and regulations, his reports to the governor,
49      labor and workforce development information  and any  other
50    material  he deems   deemed  relevant  and suitable
51      and  shall furnish the same  to any person who makes  
52    upon  request .   therefor. 


                                      23

 1        SECTION 45.  That Section 72-1335, Idaho Code, be, and the same is  hereby
 2    amended to read as follows:

 3        72-1335.  PERSONNEL. ( a  1 )  Subject to other
 4    provisions  of  this  act,  t  T he director is authorized to
 5    appoint, fix the compensation, and prescribe the duties  and  powers  of  such
 6    officers, employees, and other persons as may be necessary .  
 7    in the performance of his duties under this act.  The director may dele-
 8    gate  to  any  such person such power and authority as he deems reasonable and
 9    proper for the effective administration of this  act   chapter
10    , and may, in the time, form and manner  as    prescribed  by
11    chapter  8,  title  59, Idaho Code, bond  any  person s 
12    handling moneys or signing checks hereunder, such bond to be  paid    for
13    out of   from  the employment security administration fund.
14        (  b    2  ) ( 1  a )  Subject
15        only to the provisions of this  act   chapter    and
16        such    additional  provisions  consistent  therewith as the director
17        shall by  rules  as the  director  may    prescribe,  the
18        director is authorized and directed to establish  and maintain 
19        a  group pension plan providing retirement, disability, and death benefits
20        for employees of the department  of labor  through the means of
21        group contracts negotiated with an insurer, licensed and qualified  to  do
22        business  under  the  laws  of  the state of Idaho , on a competitive
23        basis .
24        ( 2   b  )  Employees  covered  by  the  plan  shall
25        include  all  employees  (other than temporary and hourly-rated employees)
26        who are in employee status with the department  of labor on or  after
27        the  effective  date  of  the  plan   and whose employment commenced
28        before October 1, 1980.
29        ( 3  c )  Credited service shall mean all service by
30        employees in the employ of the department  of labor  (exclusive
31        of leaves without pay other than military leave) as follows:
32             (i)   Past service rendered prior to the effective date of  the  plan
33             by employees; for this purpose prior service shall include service in
34             any  of  the  predecessor, component organizations thereof, as deter-
35             mined appropriate by the director on the effective  date,  and  shall
36             also include leave-of-absence for military service occurring within a
37             period  of otherwise continuous service in any such predecessor orga-
38             nizations.
39             (ii)  Future service rendered on and after said effective date.
40             (iii) An employee of the department placed on loan  or  special  duty
41             with other governmental units may be deemed to be in credited service
42             when  the  costs of continuing credited service are made reimbursable
43             in accordance with  an  agreement approved by  the  direc-
44             tor.
45        (  4    d  )  For each year of credited service each
46        employee covered under the plan shall receive a monthly pension commencing
47        upon retirement at or after  age  sixty-five  (65)  and  continuing  until
48        death,  of  not  less than :   one and one-half percent (1
49        1/2%) of monthly earnings, 
50             Pension as % 
51              of Earnings          Monthly Earnings 
52                 1%                    First $350 
53                 2%                    Over   350 
54        except that  with respect to credited service  before  the  effective


                                      24

 1        date  of  the  plan  such monthly pension shall be computed at the monthly
 2        rate of earnings in effect for the employee as of the  effective  date  of
 3        the  plan.  A   a ppropriate schedules and conditions for
 4          service  retirement,    early  retirement  ,  disability
 5        retirement,  and contingency annuity option s   shall  be
 6        included  in  the  insurance plan. Notwithstanding any other provisions of
 7        this section to the contrary,  the    executive    director  is
 8        authorized and directed to negotiate with the insurer to invest any inter-
 9        est,  dividends, earnings, or other moneys accruing to the funds financing
10        the employees' retirement program with the insurer to purchase  additional
11        retirement  benefits.  The  purchase  of said additional benefits shall be
12        contingent upon actuarial appraisals of the plan and  shall  be  based  on
13        sound actuarial principles. Total retirement benefits to be provided under
14        the  program  shall  meet the requirements of the Internal Revenue Service
15        for integration purposes.
16         (5)  An employee who becomes totally disabled after having completed
17        at least ten (10) years of service will, upon submission of  medical  evi-
18        dence  satisfactory  to the insuring company, be eligible for a disability
19        annuity which, together with any other form of disability  pay,  will  not
20        exceed  on  a  salary  bracket  basis approximately one-third (1/3) of his
21        average salary for the two (2) year period immediately preceding the  com-
22        mencement  of  his  disability. Such disablement annuity shall be payable,
23        after a twenty-six (26) week elimination period, until death, recovery, or
24        attainment of age sixty-five (65) (at age  sixty-five  (65)  the  employee
25        becomes  entitled  to  his normal retirement pension which has accumulated
26        for service prior to his disablement). 
27        ( 6  e )  The cost of past service,  future  service
28        and  disability  pensions shall be calculated according to sound actuarial
29        principles.  Cost   The costs  of the plan,  includ-
30        ing  funding  of past service pensions which shall be funded over a period
31        of time consistent with good insurance practices, shall be paid from 
32        the  employment  security  administration  fund  established  by   section
33        72-1347,  Idaho Code, of this act   administrative funds avail-
34        able to the department . Each employee covered under the plan  shall
35        by payroll deduction contribute toward the cost of future service pensions
36        at  not less than the  following rates:   rate paid by the
37        department, but not to exceed seven  percent  (7%)  of  monthly  earnings.
38        
39             Rate of Monthly 
40               Contribution        Monthly Earnings 
41                   3%                  First $350 
42                   6%                  Over   350 
43        (  7   f )  Upon termination of service, an employee
44        may elect to receive the refund of his contributions plus interest or  may
45        elect  to have the tax-deferred contributions and interest directly rolled
46        over to an individual retirement account or annuity or to  another  quali-
47        fied  retirement  plan  that  accepts the roll over, pursuant to 26 U.S.C.
48        402(c). A vested employee, as provided  in  the  insurance  contract,  who
49        leaves  his  contributions in the plan will remain entitled to the pension
50        purchased by the  employer  contributions  made   on
51        his behalf, and all other privileges under the plan.
52        (  8    g  )  If an employee dies more than ten (10)
53        years before his normal retirement date, all  of  his  contributions  plus
54        interest will be returned to a previously-named beneficiary , subject
55        to  survivor benefits as provided in the plan . The following provi-


                                      25

 1        sions of this subsection shall be subject to a contingency annuity option.
 2        If an employee dies on or after the date ten (10) years prior to his  nor-
 3        mal  retirement  date, it will be assumed that he retired on the first day
 4        of the month following his  date  of  death,  and  his  beneficiary  shall
 5        receive,  beginning  on  the  assumed  retirement date, one hundred twenty
 6        (120) monthly pension payments. The amount of monthly pension payable will
 7        be based on the credit accrued to that time  and  the  employee's  assumed
 8        earlier  retirement  age.  If death occurs after retirement but before one
 9        hundred twenty (120) monthly pension payments have been made, the  monthly
10        pension  will be continued to his beneficiary until a total of one hundred
11        twenty (120) monthly payments have been made.
12         (9)  The plan shall become effective on a date agreed  upon  by  the
13        director  and  the  insurer  subject to other applicable provisions of the
14        Employment Security Law and the approval of the bureau of employment secu-
15        rity, U.S. Department of Labor. 

16        SECTION 46.  That Section 72-1336, Idaho Code, be, and the same is  hereby
17    amended to read as follows:

18        72-1336.  ADVISORY BODY  AND SPECIAL COMMITTEES .  If fed-
19    eral law or regulations require the establishment of an advisory body or simi-
20    lar  entity  for  the  department,  the  governor shall establish an entity or
21    appoint an existing body to satisfy the federal requirements. Absent a federal
22    requirement to establish an advisory body, t  T  he  governor
23     may, in his sole discretion, establish   shall appoint 
24    an  advisory  body   or appoint an existing body to serve as  
25    for  the department 's advisory body  .  The  governor  shall
26    prescribe  the  duties and functions of the body  which shall comply with
27    federal requirements, if any . Members of the body shall  serve  at  the
28    pleasure  of  the  governor and shall be compensated  on a per diem basis
29     at a rate  to be  fixed by the  governor,  and  in  addition
30    shall be reimbursed for ordinary and actual expenses.
31        The director may  from time to time  appoint special committees
32      as may be required  in connection with the administration of this
33     act   chapter .

34        SECTION 47.  That Section 72-1337, Idaho Code, be, and the same is  hereby
35    amended to read as follows:

36        72-1337.  RECORDS  AND  REPORTS.  Each  employer shall keep  true and
37     accurate records, for such periods of time and containing such informa-
38    tion as the director may prescribe. Such records shall be open  to  inspection
39    and  be subject to being copied by the director  or his authorized repre-
40    sentatives  at any reasonable time .   and as  often  as
41    may  be  necessary.   The director,  his authorized representative,
42     a member of the commission or an appeals examiner may require from  any
43    employer  ,  with respect to persons who are performing or have performed
44    services for him,  any sworn or unsworn reports which are deemed  neces-
45    sary    for  the effective administration of this act   in the
46    exercise of their duties .

47        SECTION 48.  That Section 72-1338, Idaho Code, be, and the same is  hereby
48    amended to read as follows:

49        72-1338.  OATHS  AND  WITNESSES.    In  the  discharge  of the duties


                                      26

 1    imposed by this act, t  T he director,   his  authorized
 2    representative,    a  member  of the commission, and an appeals examiner
 3    shall have power to administer oaths and affirmations, take depositions,  cer-
 4    tify  to  official  acts, and issue subpoenas to compel the attendance of wit-
 5    nesses and the production of  books, papers,  correspondence,  memoranda,
 6    and  other records   evidence  deemed necessary  as evi-
 7    dence  in connection with a disputed claim or  in  the  
 8    administration of this act   exercise of their duties .

 9        SECTION  49.  That Section 72-1339, Idaho Code, be, and the same is hereby
10    amended to read as follows:

11        72-1339.   CHALLENGE AND  ENFORCEMENT OF  SUBPOENAS.  Any  sub-
12    poena  issued  pursuant  to  section  72-1338 , Idaho Code,  may be
13     challenged in, or, in case of  contumacy  or  refusal  to  obey,  
14    enforced by the district courts of this state within the jurisdiction  of
15        in    which  the inquiry is being conducted or within the
16    jurisdiction  of   in  which the person to whom the sub-
17    poena was issued resides or conducts his business. The court shall have juris-
18    diction to hear the parties,   determine  whether  or  not  the  subpoena
19    should  have  been  issued  in  the first instance,  determine  its
20      the  reasonableness  of the subpoena , and 
21    shall  set aside, modify, or enforce the  same      sub-
22    poena    by  its order in accordance with the  testimony and 
23    evidence .   therein heard and produced, and a    A
24    ny  failure  to  obey  such   order of the  court  order
25     may be punished by the  said  court as a contempt thereof.

26        SECTION 50.  That Section 72-1340, Idaho Code, be, and the same is  hereby
27    amended to read as follows:

28        72-1340.  PROTECTION   AGAINST  SELF-INCRIMINATION.  No  person  shall  be
29    excused from attending and testifying or from producing   books,  papers,
30    correspondence, memoranda, and other records   documentary evidence
31      before  the  director,  his authorized representative,  the
32    commission, or an appeals examiner, or in obedience to the subpoena of any  of
33    them,   on   the  ground  that  the  testimony  or    documentary  
34    evidence , documentary or otherwise,  required of him may  tend  to
35    incriminate  him  or subject him to a penalty or forfeiture; but no individual
36    shall be prosecuted or subjected to any penalty or  forfeiture    for  or
37      on account of any transaction, matter, or thing concerning which he is
38    compelled, after having claimed his privilege against  self-incrimination,  to
39    testify  or  produce    documentary  evidence , documentary or
40    otherwise,  except that  such   the  individual so
41    testifying shall not be exempt from prosecution  and  punishment  for  perjury
42    committed in so testifying.

43        SECTION  51.  That Section 72-1341, Idaho Code, be, and the same is hereby
44    amended to read as follows:

45        72-1341.  FEDERAL-STATE COOPERATION. ( a  1 )  
46    In  the  administration  of  this act, t  T he director shall
47    cooperate  to the fullest extent, consistent with the provisions of  this
48    act,    with  the  United States department of labor ,  
49    through the secretary of labor,  and  is    authorized  and  


                                      27

 1    directed  to take such action  through the adoption of appropriate rules,
 2    regulations, administrative methods and standards,  as may be  necessary
 3    to  secure  to  this state and its citizens   Idaho  all
 4    advantages  available  under federal laws  providing  for  federal-
 5    state  cooperation  in  the  administration of unemployment  compensation
 6      insurance  laws, the reduction or prevention  of  unemploy-
 7    ment,  and  the  full development of the  manpower   workforce
 8     resources of this state. The director shall  comply    
 9    cooperate    with    the  regulations  of   the United States
10    department of labor  relating   with  regards    to  the
11    receipt or expenditure by this state of moneys granted under any  of such
12      federal  acts and shall  make such   comply
13    with  the  requirements  of the United States department of labor in preparing
14     reports , in such form and  containing  such  information  as  the
15    United  States  department  of  labor may from time to time require, and shall
16    comply with such provisions as the United States department of labor may  from
17    time  to  time  find  necessary to assure   and ensuring  the
18    correctness  and verification   of    such      the
19      reports.    The  director  may afford reasonable cooperation with
20    every agency of the United States charged with the administration of any unem-
21    ployment compensation or insurance law. 
22        ( b  2 )  The director is authorized to  make  
23    such  investigations, secure and transmit  such  information,
24    make  available    such  services and facilities and exercise 
25    such of the  other powers provided herein    with  respect  to  the
26    administration  of  this  act  as  he deems necessary or appropriate  to
27    facilitate the administration of any state or federal unemployment   com-
28    pensation    insurance  or public employment service law
29    .   and in like manner, to accept and   The director may
30     utilize information, services and  facilities  made  available  to  the
31    state by  the   any  agency charged with the administra-
32    tion of  any such other   an  unemployment  compen-
33    sation  insurance or public employment service law.

34        SECTION  52.  That Section 72-1342, Idaho Code, be, and the same is hereby
35    amended to read as follows:

36        72-1342.  DISCLOSURE OF INFORMATION.  Except as hereinafter otherwise
37    provided, i  I nformation obtained from any employer or indi-
38    vidual pursuant to the administration of this  act     chapter
39    ,  and  determinations  of the benefit rights of any individual shall be
40    subject to disclosure as provided in chapter 3, title  9,  Idaho  Code  .
41    Provided,  however,  that if all interested parties waive in writing the right
42    to hold said information confidential, said information may be disclosed.  Any
43    claimant (or his legal representative) shall be supplied with information from
44    the  records available to the director, to the extent necessary for the proper
45    presentation of the claim in any  proceedings  under  this  act  with  respect
46    thereto.  Any  cost  reimbursement employer shall be supplied with information
47    from the records available to the director to the extent necessary to identify
48    or determine actual or potential costs for which it may be required  to  reim-
49    burse  the  department.  Subject to such restrictions and fees as the director
50    may by rule prescribe ,  except that  such information may be
51    made available  to  public  employees  in  the  performance  of  their  public
52    duties  . The director may request the comptroller of the currency of the
53    United States to cause an examination of the  correctness  of  any  return  or


                                      28

 1    report of any national banking association rendered pursuant to the provisions
 2    of  this act, and may in connection with such request transmit any such report
 3    or return to the comptroller of the currency of the United States as  provided
 4    in  section  1606(c) of the Federal Internal Revenue Code   subject
 5    to such restrictions and fees as the director may by rule prescribe .

 6        SECTION 53.  That Section 72-1343, Idaho Code, be, and the same is  hereby
 7    amended to read as follows:

 8        72-1343.  PRESERVATION  AND DESTRUCTION OF RECORDS. ( a  1
 9    ) The director may  cause to be made   make   such
10    summaries  , compilations, photographs, duplications,  or reproduc-
11    tions of  any  records , reports, or transcripts thereof as he
12    may deem advisable   in his custody in whatever form  for the
13    effective and economical preservation of the  information  contained  therein,
14    and  such  summaries  , compilations, photographs, duplications  or
15    reproductions, duly authenticated, shall be admissible in any proceeding under
16    this  act   chapter  if the  original    record  or
17     records would have been admissible .   therein. 
18        (  b  2 )  The director may  provide by regula-
19    tion for   order  the destruction or disposition , after
20    reasonable periods,  of  any  records ,  reports,  tran-
21    scripts  or  reproductions thereof, or other papers  in  the 
22     his  custody  of the director,     if    the
23    preservation  of    which      such records  is  no
24    longer   not  necessary for the  establishment  of  con-
25    tribution  liability  or  benefit  rights  or for any purpose necessary to the
26     proper  administration of this act, including any  required  audit
27    thereof   performance of his duties .

28        SECTION  54.  That Section 72-1344, Idaho Code, be, and the same is hereby
29    amended to read as follows:

30        72-1344.  RECIPROCAL ARRANGEMENTS AND COOPERATION. ( a   1
31    )  The director is  hereby  authorized to enter into recipro-
32    cal arrangements with appropriate  and duly authorized  agencies of
33    other states or of the federal government, or both, whereby:
34        ( 1  a )   Services performed by an  individual
35        for a single employer for which services are customarily performed by such
36        individual in more than one state shall be deemed to be services performed
37        entirely  within any one (1) of the states,   An employer of an
38        individual who customarily provides services for the employer in more than
39        one (1) state may elect to have the services deemed performed entirely  in
40        one  (1) state if the state is one in which:  ( A  i
41        )  in which  any part of    such      the
42         individual's  service is   services are  per-
43        formed,  or  (  B    ii )  in which such 
44         the  individual has his residence, or ( C  iii
45        )  in  the employer maintains a place of business  ,
46          provided , with respect to subsection (a)(1) of this section,
47        there is in effect, as to such services, an election by an  employer  with
48        the acquiescence of such   the  individual  approved
49        by      agrees  with the election and  the agency charged
50        with the administration of such state's  unemployment compensation or
51         unemployment insurance law , pursuant to which  services  per-


                                      29

 1        formed  by  such  individual  for such employer are deemed to be performed
 2        entirely within each state   approves it ;
 3        ( 2  b )  Potential rights to  benefits  accumulated
 4        under the  unemployment compensation or  unemployment insurance
 5        laws  of  the federal government , or both,  may constitute the
 6        basis for the payment of benefits  through  a  single  appropriate  agency
 7        under  terms which the director finds will be fair  and reasonable as
 8         to all affected interests and will not result in   any  
 9          a    substantial  loss to the employment security fund .
10         ; 
11        ( 3  c )   The director  shall  participate  in
12        any  wage  combining  plan that the secretary of labor may approve as pro-
13        vided in 26 U.S.C. 3304(a)(9)(B) of  the  federal  unemployment  tax  act.
14        Other  arrangements  outside  the scope of the federal plan may be entered
15        into if fair and reasonable provisions for reimbursement to the employment
16        security fund for any benefits paid are included. Under  such  a  plan,  w
17          W ages or services, upon the basis of which an individ-
18        ual may become entitled to benefits under an  unemployment  compensa-
19        tion  or  unemployment insurance law of another state or of the fed-
20        eral government,  shall   may  be deemed to be wages
21        for covered employment for the purpose of determining his rights to  bene-
22        fits  under this  act   chapter , and wages for cov-
23        ered employment, on the basis of which an individual may  become  entitled
24        to  benefits  under this  act, shall   chapter, may 
25        be deemed to be wages or services on the basis of which  unemployment
26        compensation or  unemployment  insurance  under    such  
27          the    law  of  another state or of the federal government is
28        payable . The director shall participate in any wage  combining  plan
29        or its later modifications that the secretary of labor may approve as pro-
30        vided  in  section  3304(a)(9)(B),  federal  unemployment  tax  act. Other
31        arrangements outside the scope of the federal plan  may  be  entered  into
32        where  provisions  for  reimbursement  to the employment security fund for
33        such benefits paid are included. Such provisions must be fair and  reason-
34        able to all affected interests ; and
35        (  4    d  )  Contributions  due under this act with
36        respect to wages for covered employment shall for the purposes of sections
37        72-1354  to    through    72-1364,    inclusive
38            Idaho Code , be deemed to have been paid to the 
39        un employment security fund as of the date payment was made as  con-
40        tributions therefor under another state or federal  unemployment com-
41        pensation or  unemployment insurance law .  , but, n
42          N  o  such  arrangement shall be entered into unless it
43        contains provisions for  such  reimbursement  to  the  fund  of
44        such contributions as the director finds will be fair  and reasonable
45        as  to all affected interests.
46        (  b    2 )  Reimbursements paid from the employment
47    security fund pursuant to paragraph ( 3  c ) of  subsec-
48    tion ( a  1 ) of this section shall be deemed to be ben-
49    efits  for  the  purposes  of  this  act   chapter . The
50    director is authorized to make   and  receive  reimbursements    to
51      and  from    other state or federal agencies  and to receive
52    from such other state or federal agencies,  reimbursements  from  or  to  such
53    fund,   in accordance with arrangements entered into pursuant to subsec-
54    tion ( a  1 ) of this section.
55        ( c  3 )   To the extent permissible under  the


                                      30

 1    laws  and Constitution of the United States, t  T he director
 2    is authorized to enter into  or cooperate in  arrangements  whereby
 3    facilities  and  services  provided  under this  act   chapter
 4     and facilities and services provided under the  unemployment  com-
 5    pensation  or  unemployment insurance law of any foreign government
 6    ,  may be utilized for  the  taking   of    claims
 7    and    the  payment  of   paying  benefits . 
 8     under the employment security law of this state or under a  similar  law
 9    of such government.
10        (d)  The director shall fully cooperate with the agencies of other states,
11    and shall make every proper effort within his means, to oppose and prevent any
12    further action which would in his judgment tend to effect complete or substan-
13    tial  federalization of state unemployment compensation funds or state employ-
14    ment security programs.
15        (e)  The director may make, and may cooperate with other appropriate agen-
16    cies in making studies as to the practicality and probable  cost  of  possible
17    new state-administered social security programs, and the relative desirability
18    of state (rather than national) action in any such field. 

19        SECTION  55.  That Section 72-1345, Idaho Code, be, and the same is hereby
20    amended to read as follows:

21        72-1345.  STATE EMPLOYMENT SERVICE. A state employment  service  shall  be
22    operated as  a  part of the  employment security agency 
23      department  .  The  director  in the conduct of such service
24     shall establish and maintain free public employment  offices    in
25    such  number  and  in  such  places   as may be necessary for the proper
26    administration of this  act    chapter  ,  and  for  the
27    purpose  s   of performing  such   the  func-
28    tions  as are within the purview of the Act of Congress entitled "An  Act
29    to Provide for the Establishment of a National Employment System and for Coop-
30    eration  with  the  States in the Promotion of Such System, and for Other Pur-
31    poses," approved June 6, 1933, (48 Stat. 113; U.S.C., Title 29, Sec. 49(c)) as
32    amended, hereinafter referred to  as      of    the    "
33    Wagner-Peyser  Act  , 29 U.S.C. 49 . "  The provi-
34    sions of said  A  a ct    of  Congress    are
35      hereby  accepted by this state, and the  employment security
36    agency   department  is  hereby  designated  
37    and  constituted  the agency of this state for the purposes of said act.
38     For the purpose of establishing and maintaining free  public  employment
39    offices, and promoting the use of their facilities, the director is authorized
40    to  enter  into  agreements  with  the railroad retirement board, or any other
41    agency of the United States, or of this or any other state, charged  with  the
42    administration of any law, the purposes of which are reasonably related to the
43    purposes of this act, and as a part of such agreements may accept moneys, ser-
44    vices, or quarters as a contribution to the maintenance of the state system of
45    public  employment  offices  or  as  reimbursement for services performed. The
46    state employment service provided for by this section shall provide  a  teach-
47    ers'  placement  service,  a  farm placement service, and an employment 
48     The department shall provide priority  service for veterans  
49    cooperating   in cooperation  with the United States veterans
50    employment  service  ; provided, that in all placement activities of said
51    employment service, handicapped veterans shall receive preferential treatment.
52    All moneys received for such special purposes shall be paid into  the  employ-
53    ment security administration fund .


                                      31

 1        SECTION  56.  That Section 72-1346, Idaho Code, be, and the same is hereby
 2    amended to read as follows:

 3        72-1346.  EMPLOYMENT SECURITY FUND. ( a  1 )  Estab-
 4    lishment  and  Control.  There is  hereby  established in the state
 5    treasury ,   a special fund,  separate  and  apart  from
 6    all    public moneys or   other  funds of this state, an
 7    "Employment Security Fund," which shall be  administered by the  director
 8    exclusively  for  purposes  of  this act. All moneys coming into said fund are
 9    hereby  perpetually appropriated to the director  to  be    by  him
10      administered   separate and apart from all other moneys and funds
11    of this state  pursuant to the provisions of this  act  
12    chapter  and the  Federal  S    s  ocial    S
13      s  ecurity   A  a ct. This fund shall
14    consist of all contributions collected pursuant to this  act  
15    chapter , payments in lieu of contributions, interest  earned  upon  any
16    moneys  in  the  fund,  any property or securities acquired through the use of
17    moneys belonging to the fund, all earnings of  such  property  or  securities,
18      moneys  temporarily  deposited  in the clearing account,  and all
19    other moneys received for the fund from any other source.  All moneys  in
20    the  fund  shall  be  mingled and undivided. All financial transactions of the
21    employment security fund shall be maintained on the account level.  The  state
22    controller  and  the  state treasurer may prescribe requirements for this pur-
23    pose. 
24        ( b  2 )  Accounts and Deposits. The state  control-
25    ler  shall  maintain  within  the  fund  three (3) separate accounts: ( 1
26     i ) a clearing account, ( 2  ii  )  an
27    unemployment  trust fund account, and ( 3  iii ) a bene-
28    fit account.  Upon receipt by the  director,  a    A  ll
29    moneys payable to the fund , upon receipt thereof by the director, 
30    shall  be  promptly  forwarded to the state treasurer for immediate deposit in
31    the clearing account.  After clearance, a  A  ll  moneys
32    in the clearing account  after clearance thereof,  shall, except as
33      herein  otherwise provided, be deposited promptly with the secre-
34    tary of the treasury of the United States    of  America    to  the
35    credit  of    the    this state's  account  of this
36    state  in the unemployment trust  fund  ,    established  and
37    maintained  pursuant  to  section 904 of the  S  s ocial
38     S  s ecurity  A  a ct    (42
39    U.S.C.  1104)  ,   as amended,  any provisions of law in this
40    state  relating to the deposit, administration, release, or  disbursement
41    of  moneys  in  the possession or custody of this state  to the contrary
42    notwithstanding.  Refunds and reimbursements payable pursuant to sections
43    72-1357, 72-1316(a)(4), Idaho Code, may be paid from the clearing  account  or
44    the  benefit  account,  except  that amounts found to be refundable which were
45    paid into the  state  employment  security  administrative  and  reimbursement
46    account,  shall  be  paid  only out of such latter account.  The benefit
47    account shall consist of all moneys requisitioned for the payment of  benefits
48    from  this  state's  account in the unemployment trust fund in the treasury of
49    the United States.  Except as herein otherwise provided, m   M
50    oneys in the clearing and benefit accounts may be deposited by the state
51    treasurer  under the direction of the director in any depository bank in which
52    general funds of the state may be deposited, but no public  deposit  insurance
53    charge  or  premium  shall be paid out of the fund. Moneys in the clearing and
54    benefit accounts shall not be commingled with other  state  funds  ,  but


                                      32

 1       and  shall be maintained in separate accounts on the books
 2    of the depository bank. Such money s    shall  be  secured  by  the
 3    depository  bank    to  the  same extent and  in the same manner as
 4    required by the general public depository law of this state ;   and
 5    collateral  pledged  for this purpose shall be kept separate and distinct from
 6    collateral pledged to secure other funds of the  state.  The  state  treasurer
 7    shall  be  liable  on  his  official  bond for the faithful performance of his
 8    duties in connection with the employment security  fund  .    
 9    provided for under this act. 
10        (  c   3 )  Withdrawals. Moneys requisitioned by the
11    director through the treasurer from this state's account in  the  unemployment
12    trust  fund  shall  be  used  exclusively  for the payment of benefits and for
13    refunds pursuant to  the provisions of  this  act      section
14    72-1357,  Idaho  Code  ,  except that  Reed act  money s
15     credited to this state's account pursuant to section 903 of  the  
16    Federal  S  s ocial  S  s ecurity 
17    A  a ct  (42 U.S.C.  1103)  ,    as  amended,
18       shall  be  used  exclusively  as  provided  in  subsection  (  e
19     4 ) of this section.  The  director  through  the  treasurer
20    shall    from time to time  requisition from the unemployment trust
21    fund such amounts, not exceeding the amounts standing to this state's  account
22    therein,  as  he deems necessary for the payment of  such  benefits
23    and refunds for a reasonable  future  period. Upon  receipt  ,
24        thereof    such  moneys shall be deposited in the benefit
25    account. Expenditures of  such  moneys in the benefit  account
26     and  refunds from the  clearing account s   shall
27    not   require the approval of the board of examiners or  be subject
28    to any provisions of law requiring specific  appropriations  or  other  formal
29    release  by  state  officers  of  money in their custody , nor shall such
30    expenditures require the approval of the state board of examiners .  The
31    residual  daily  balance  in the benefit account may be invested in accordance
32    with the cash management improvement  act  of  1990,  and  earnings  on  those
33    investments  may  be  used to pay the related banking costs of maintaining the
34    benefit account. Any earnings in excess of the related banking costs shall  be
35    returned  to  the state's account in the federal unemployment trust fund annu-
36    ally. All warrants issued for the payment of benefits and refunds  shall  bear
37    the signature of the director .   or his duly authorized agent
38    for that purpose.  Upon  approval and  agreement  by and
39      between  the  director  and  state  controller, amounts in the benefit
40    account may be transferred to a revolving account established  and  maintained
41    in  a depository bank from which the director may issue checks for the payment
42    of benefits and refunds .   in accordance with the  provisions
43    of  this  act, and for no other purpose.  Moneys so transferred shall be
44    deposited subject to the same requirements as provided with respect to  moneys
45    in  the  clearing  and  benefit  accounts  in    this      sub
46    section  ,  subdivision  ( b  2 ) 
47    of this section . Any balance of moneys requisitioned from the unemploy-
48    ment trust fund which remains unclaimed or unpaid in the  benefit  account  or
49    revolving account  referred to herein,  after the expiration of the
50    period for which such sums were requisitioned ,   shall either
51    be  deducted from estimates for, and  may be utilized for the payment of
52    benefits and refunds during succeeding periods, or, in the discretion  of  the
53    director,  shall  be  redeposited  with  the  secretary of the treasury of the
54    United States  of America  to the credit of this state's account in
55    the unemployment trust fund , as provided in subsection (b) of this  sec-


                                      33

 1    tion .
 2          (d)  Management  of funds upon discontinuance of unemployment trust
 3    fund. The provisions of subsections (a), (b), and (c) of this section, to  the
 4    extent  that  they  relate  to the unemployment trust fund, shall be operative
 5    only so long as such unemployment trust fund continues to exist and so long as
 6    the secretary of the treasury of the United States  of  America  continues  to
 7    maintain for this state a separate book account of all funds deposited by this
 8    state  for benefit purposes, together with this state's proportionate share of
 9    the earnings of such unemployment trust fund, from which  no  other  state  is
10    permitted to make withdrawals. If and when such unemployment trust fund ceases
11    to  exist,  or  such separate book account is no longer maintained, all moneys
12    belonging to the employment security fund of this state shall be  administered
13    by  the director as a trust fund for the purpose of paying benefits under this
14    act, and the director shall have authority to hold,  invest,  transfer,  sell,
15    deposit,  and release such moneys, and any properties, securities, or earnings
16    acquired as an incident to such administration;  provided,  that  such  moneys
17    shall  be  invested  in accordance with the provisions of the State Depository
18    Law; provided, further, that such investment shall be at  all  times  made  so
19    that  all the assets of the fund shall always be readily convertible into cash
20    when needed for the payment of benefits. 
21        ( e  4 )   Money   Reed act  moneys.
22    Reed  act moneys  credited to  the   this state's 
23    account  of this state  in the unemployment trust fund by the  sec-
24    retary  of  the treasury of the United States  of America  pursuant
25    to section 903 of the   Federal  S    s  ocial    S
26      s  ecurity   A  a ct  (42 U.S.C.
27    1103) ,  as amended,  may  not  be  withdrawn
28    or   requisitioned and  used  except  for the pay-
29    ment of benefits and for the payment of expenses incurred for the  administra-
30    tion  of  this    act. Such money   chapter. Moneys  may
31     only  be requisitioned and used for the payment of expenses incur-
32    red for the administration of this  act pursuant to a specific appropria-
33    tion by the legislature, provided that     chapter  if    the
34    expenses  are  incurred  and  the  money is requisitioned after the
35    enactment of  an   a specific  appropriation    law
36       by the legislature  which specifies the purposes for which
37    such money is appropriated ,   and  the  amounts  appro-
38    priated  therefor ,  and provides that  the amounts be limited
39    by the following provisions :
40        ( 1  a )  Such money may not be obligated after  the
41        close  of the two (2) year period which began on the date of the enactment
42        of the appropriation law; and
43        ( 2  b )  The amount which may  be  obligated  
44        during  any twelve (12) month period beginning on July 1 and ending on the
45        next June 30 does   at any  time  may    not  exceed  the
46        amount  by which  (i)  the aggregate of the amounts  cred-
47        ited   transferred  to the account of this state pursuant
48        to section 903 of the  Federal S  s  ocial    S
49          s  ecurity    A    a ct  (42
50        U.S.C. 1103) ,  as amended, during the same twelve  (12)  month
51        period  and  the  thirty-four  (34)  preceding  twelve (12) month periods,
52         exceeds  (ii)  the aggregate of the amounts  used  
53        pursuant  to  this  subsection and charged against the amounts credited to
54        the account of this state during any such  thirty-five  (35)  twelve  (12)
55        month  periods    by this state and charged against the amounts


                                      34

 1        transferred to the account of this state . For the purposes of  this
 2        subsection,   amounts used during any twelve (12) month period begin-
 3        ning on July 1 and ending on the next June 30  shall  be  charged  against
 4        equivalent  amounts which were first credited and which are not already so
 5        charged; except that no amount obligated for the  administration  of  this
 6        act  during  any  such twelve (12) month period may be charged against any
 7        amount credited during such a twelve (12) month period  earlier  than  the
 8        thirty-fourth  preceding  such  period    amounts obligated for
 9        administrative purposes pursuant to an appropriation shall  be  chargeable
10        against  transferred  amounts  at the exact time the obligation is entered
11        into.
12        (c)  Reed act moneys requisitioned for the payment of  benefits  shall  be
13        deposited  in  the  benefit  account established in this section. Reed act
14        moneys requisitioned for the payment of administrative  expenses  pursuant
15        to  a specific appropriation shall be deposited in the employment security
16        administration fund, section  72-1347,  Idaho  Code,  except  that  moneys
17        appropriated for the purchase of lands and buildings shall be deposited in
18        the  state  employment  security  administrative and reimbursement fund in
19        accordance with section 72-1348, Idaho Code.  Money  so  deposited  shall,
20        until  expended,  remain  part of the employment security fund and, if not
21        expended, shall be promptly returned to this state's account in the  unem-
22        ployment trust fund .

23        SECTION 57.  That Section 72-1346A, Idaho Code, be, and the same is hereby
24    amended to read as follows:

25        72-1346A.  ADVANCES  UNDER TITLE XII OF THE SOCIAL SECURITY ACT TO EMPLOY-
26    MENT SECURITY FUND --  FEDERAL  ADVANCE  INTEREST  REPAYMENT  FUND.  (  a
27      1  ) In the event the director determines that it is neces-
28    sary to obtain  an advance or  advances from the federal  unemploy-
29    ment account in the unemployment trust fund pursuant to title XII of the 
30    S    s  ocial    S    s ecurity  A
31     a ct  (42 U.S.C. 1321) ,  as amended, 
32    and that a request for such  an  advance s    is  autho-
33    rized  under  section  1201  of  the  S  s ocial  S
34     s ecurity  A  a ct,  as  amended,
35     or under any other act of congress extending such authority, the direc-
36    tor  shall  request the governor to make application to the secretary of labor
37    of the United States for such  an  advance s .
38        ( b  2 )   When so requested by the director, t
39     T he governor is   hereby    authorized  to  make
40    application  to the secretary of labor of the United States to obtain  an
41    advance or  advances pursuant to title XII of the  S   s
42    ocial    S    s  ecurity    A    a
43    ct , as amended   (42 U.S.C. 1321 et seq.) . Funds
44    so advanced shall be for the payment of unemployment insurance benefits.
45        (  c   3 )  Any amount transferred to the employment
46    security fund by the secretary of the treasury  of  the  United  States  
47    under  the terms of any agreement entered into  in accordance with 
48    the authority extended in  this section shall be repaid from the employ-
49    ment security fund  and  as provided in section 1202 of the  S
50      s  ocial    S    s  ecurity    A
51     a ct , as amended   (42 U.S.C. 1322) .
52        ( d  4 )  There is  hereby    established
53    in  the state treasury  a special fund to be known as  the "Federal


                                      35

 1    Advance Interest Repayment Fund." This fund shall consist of all  moneys  col-
 2    lected  pursuant  to subsection ( e  5 ) of this section
 3    and interest earned upon any moneys in the fund. All moneys in  the  fund  are
 4      hereby   perpetually appropriated  and made available 
 5    to the director for the payment of interest on any advance made to this  state
 6    pursuant  to  title  XII  of  the    S   s ocial  S
 7     s ecurity  A  a ct,  as  amended,
 8      except  that  if  ,    at the end of any calendar year, all
 9    advances and interest have been repaid, any  remaining  balance  in  the  fund
10    shall be transferred to the employment security fund. Interest charges due and
11    payable  pursuant  to  section  1202  of the  S  s ocial
12     S  s ecurity  A  a ct,    as
13    amended,   shall be paid by the director from the federal advance inter-
14    est repayment fund. Such expenditures shall not be subject to any  provi-
15    sions of  law requiring specific appropriations or other formal  release
16    by  state  officers  of  money  in  their custody, nor shall such expenditures
17    require the approval of the  state  board of examiners.    All
18    moneys in the fund shall be mingled and undivided. 
19        (  e   5 )  A federal advance interest repayment tax
20    shall be levied in accordance with  the  following  provisions  when  required
21    under  paragraph  (  2    b  )   of this subsection
22    :
23        ( 1  a )  On the first day of the third month  of  a
24        calendar quarter, the director shall:
25             (  A    i  )   Estimate the interest payable on
26             federal advances obtained under subsections (  a    1
27             ) and ( b  2 ) of this section;
28             (  B    ii  )  Estimate  the  amount of federal
29             advance interest repayment tax receipts expected to be collected dur-
30             ing the quarter for any preceding calendar quarter in which such  tax
31             was assessed;
32             (  C    iii  ) Add  the  amount  in the federal
33             advance interest repayment fund on the last day  of  the  immediately
34             preceding  calendar  quarter  to  the  estimate in paragraph ( B
35              ii ) of this subsection; and
36             ( D  iv )  Subtract the sum obtained  in  para-
37             graph ( C  iii ) from the estimate in paragraph
38             ( A  i ) of this subsection.
39        (  2  b )  If the remainder obtained under paragraph
40        ( D  iv )  of  subsection  (  e    5
41        )(  1   a ) of this section is more than zero,
42        each covered employer subject to this section shall be assessed a  federal
43        advance interest repayment tax. Such tax shall be a percentage of the con-
44        tributions payable under sections 72-1349 and 72-1350, Idaho Code, for the
45        calendar  quarter,  but  in no case shall be less than one dollar ($1.00).
46        The percentage shall be determined by dividing the remainder in  paragraph
47        (  D    iv  )  of  subsection ( e  5
48        )( 1  a ) of this  section  by  the  estimated
49        amount  of contributions due and payable on wages paid during the quarter.
50        The percentage shall be rounded up to the  next  one-tenth  of  a  percent
51        (0.1%).
52        (  3    c )  The tax assessed shall be collected and
53        paid in accordance with such rules  and  regulations    as  the
54        director may prescribe. All such taxes collected shall be deposited in the
55        federal  advance interest repayment fund , notwithstanding other pro-


                                      36

 1        visions of this act to the contrary . Any such tax imposed in a cal-
 2        endar quarter shall be paid on or before the last day of the second  month
 3        following  the  close  of  such calendar quarter. An extension of time for
 4        payment  may  be  granted  for  good  cause  in  accordance  with  section
 5        72-1349( d  4 ), Idaho Code.
 6        ( 4  d )  If any covered employer fails to pay  such
 7        tax  on  or  before the date on which they are due ,   and
 8        payable,  such tax shall bear penalty at  a  rate  of  five  dollars
 9        ($5.00)  for  each month or fraction thereof until paid; provided, that in
10        no case shall the penalty exceed the actual amount of the tax due and pay-
11        able. The date of payment shall be deemed the date of  actual  receipt  by
12        the  director, or if mailed, the date of mailing. Penalties collected pur-
13        suant to this subsection shall be paid into the federal  advance  interest
14        payment  fund.  Furthermore,  if any employer becomes delinquent in making
15        payment of the tax as required by this subsection, such employer shall  be
16        subject  to  the  collection  provisions  in sections 72-1355 and 72-1360,
17        Idaho Code.
18        ( 5  e )  A covered employer may make application to
19        the director for a refund or credit of any amount erroneously paid as  tax
20        under  this  subsection  .    ,  s  S uch
21        applications and the director's determinations regarding  such appli-
22        cations to   them shall  be made in accordance  with  the
23        provisions of section 72-1357, Idaho Code.
24        (  6    f  )  This section does not apply to covered
25        employers eligible and electing  the  cost  reimbursement  payment  method
26        under  section s  72-1349A,  72-1349B and 72-1349C, 
27        Idaho Code.

28        SECTION 58.  That Section 72-1347, Idaho Code, be, and the same is  hereby
29    amended to read as follows:

30        72-1347.  EMPLOYMENT  SECURITY ADMINISTRATION FUND. ( a  1
31    ) There is  hereby  established in the state treasury  a
32    special fund to be known as   the  "Employment  Security  Administration
33    Fund."  All  moneys    which shall be  deposited  or paid into
34      in  said fund are  hereby  perpetually appropri-
35    ated  and made available  to the director.  Expenditures    of
36    such moneys  from the fund shall be  only  in accordance with
37      the  provisions of  this  act   chapter  on
38    the approval of the director  or his duly authorized agent for such  pur-
39    pose,      and  shall not require approval by the  state
40     board of examiners, and shall not lapse at any time or  be  transferred
41    to any other fund, except that the director may establish  from such fund
42      a  revolving fund for the purpose of paying current cash items in con-
43    nection with  administration   administrative expenses .
44    All moneys in this fund which are received from the federal  government  
45    or  any agency thereof  shall be expended solely for the purposes and in
46    the amounts found necessary by the  secretary,  United  States  department  of
47    labor,  for  the  proper and efficient administration of this  act 
48     chapter . The fund shall consist of  all  moneys  appropriated  by
49    this  state    to  this  fund , all moneys received from the United
50    States  of America, or  any  agency  thereof,  including  the  secretary,
51    United  States department of labor, and   for this fund,  all
52    moneys received from any other source for such purpose, and   shall  also
53    include   any moneys received from  any agency of  the United


                                      37

 1    States or any other state as compensation for services or facilities  supplied
 2    to  such agency, any amounts received pursuant to any surety bond or insurance
 3    policy or from other sources for losses  sustained  by  the    employment
 4    security  administration    fund  or by reason of damage to equipment or
 5    supplies purchased from moneys in such fund, and any  proceeds  realized  from
 6    the  sale or disposition of any such equipment or supplies .  
 7    which may no longer be necessary for the proper administration  of  this  act.
 8      Such  moneys shall be secured by the depository in which they are held
 9     to the same extent and in the same manner  as required by the gen-
10    eral depository law of the state,   chapter  1,  title  57,  Idaho  Code,
11      and  collateral  pledged  shall  be  maintained  in a separate custody
12    account. The state treasurer shall be liable on  his  official  bond  for  the
13    faithful  performance  of  his  duties in connection with the  employment
14    security administration fund provided for under this act. All  sums  recovered
15    on any surety bond for losses sustained by the employment security administra-
16    tion fund shall be deposited in said  fund.
17        (  b    2  )  Reimbursement of  F  f
18    und. If any moneys received  after June 30, 1941,   from  the
19      secretary,  United States department of labor ,  under
20     T  t itle III of the  S  s  ocial
21      S   s ecurity  A  a ct,  or
22    any unencumbered balances in the employment security administration fund as of
23    that date, or any moneys granted after that date  are found by the 
24    secretary,  United States department of  labor  ,  because  of  any
25    action  or contingency,  to have been lost or  been  expended
26    for purposes other than, or in amounts in excess of ,  those  found
27    necessary   by  the    secretary,    United  States  department  of
28    labor ,  for the proper administration of this  act, it is the
29    policy of this state that   chapter,  such  moneys  shall  be
30    replaced  by  moneys in the state employment security administrative and reim-
31    bursement fund as provided in section 72-1348, Idaho Code, but if  the  moneys
32    therein  are insufficient,  then  the balance  required 
33    shall be replaced  from moneys appropriated for  such  purpose  from  the
34    general  funds of this state. Upon receipt of such a finding by the secretary,
35    United States department of labor, and where there are insufficient moneys  in
36    the  state  employment  security administrative and reimbursement fund to make
37    such replacement, the director shall promptly report the balance required  for
38    such replacement to the governor and the governor shall at the earliest oppor-
39    tunity, submit to the legislature a request for the appropriation of such bal-
40    ance.  This  subsection  shall  not  be construed to relieve this state of its
41    obligation with respect to funds received prior to July 1, 1941,  pursuant  to
42    the  provisions of Title III of the Social Security Act   by moneys
43    in the department of labor special administration fund,  section  72-1347A(3),
44    Idaho Code .

45        SECTION 59.  That Section 72-1347A, Idaho Code, be, and the same is hereby
46    amended to read as follows:

47        72-1347A.  EMPLOYMENT  SECURITY  RESERVE  FUND  --  SPECIAL ADMINISTRATION
48    FUND. ( a  1 ) There is  hereby   established
49    in  the state treasury a special trust fund, separate and apart from all other
50    public  moneys or  funds of this state, to be known as the  employ-
51    ment  security  reserve  fund,  hereinafter "reserve fund." Except as provided
52    herein, all proceeds from the reserve  tax  defined  in  subsection  (  b
53     2 ) of this section shall be paid into the reserve fund


                                      38

 1    .      and shall be mingled and undivided.  The moneys in the
 2    reserve fund may be used by the director for loans to the employment  security
 3    fund,  section  72-1346,  Idaho  Code,  as security for loans from the federal
 4    unemployment insurance trust fund, and for the repayment of any interest bear-
 5    ing advances, including interest, made under title XII of the social  security
 6    act,  42  USC 1321 through 1324, and shall be  continuously  avail-
 7    able to the director for expenditure in accordance with the provisions of this
 8    section. The state treasurer shall be  the    ex  officio  treasurer  and
 9      custodian  of  the reserve fund and shall invest said moneys in accor-
10    dance with  existing  law .   and rules promulgated
11    pursuant thereto.  The state treasurer shall disburse  the  moneys  from
12    the reserve fund in accordance with the directions of the director.
13        (  b  2 )   Effective January 1, 1991, a 
14     A  reserve tax  shall be and  is    hereby  
15    imposed  on  all  covered  employers required to pay contributions pursuant to
16    section 72-1350, Idaho Code. The reserve tax shall be due and payable  at  the
17    same  time  and  in  the same manner as contributions.  For calendar year
18    1991 and each year thereafter i  I f the reserve fund is less
19    than one percent (1%) of state taxable wages in the  penultimate  year  as  of
20      December  31   September 30  of the preceding calendar
21    year, the reserve tax  rate  for  all  eligible,  standard-rated  and  deficit
22    employers  shall  be  equal  to  the taxable wage rate then in effect less the
23    assigned contribution rate and training tax rate. The  terms  and  condi-
24    tions  of the  provisions of this chapter which apply to the payment and
25    collection of contributions also apply to the payment and  collection  of  the
26    reserve  tax  ,   imposed by this subsection,  including
27    the same calculations, assessments, method of  payment,  penalties,  interest,
28    costs,  liens, injunctive relief, collection procedures and refund procedures.
29    In the administration of the provisions of this section and the collection  of
30    the  reserve  tax  ,    created in this subsection,  the
31    director is granted all rights, authority, and prerogatives granted the direc-
32    tor under the provisions of this chapter. Moneys collected  from  an  employer
33    delinquent in paying contributions and reserve taxes shall first be applied to
34    pay  any penalty and interest imposed pursuant to the provisions of this chap-
35    ter and shall then be applied pro rata to pay delinquent contributions to  the
36    employment  security fund, section 72-1346, Idaho Code, and delinquent reserve
37    taxes to the reserve fund pursuant to this section. Any interest and penalties
38    collected pursuant to this subsection shall be paid into the state  employment
39    security  administrative  and reimbursement fund, section 72-1348, Idaho Code,
40    and any interest or penalties refunded under this subsection shall be paid out
41    of that same fund. Reserve taxes paid pursuant to this subsection may  not  be
42    deducted  in whole or in part by any employer from the wages of individuals in
43    its employ. All reserve taxes collected pursuant to this subsection  shall  be
44    deposited  in  the  clearing  account of the employment security fund, section
45    72-1346, Idaho Code, for clearance only and shall  not  become  part  of  such
46    fund.  After  clearance,  the  moneys  shall  be deposited in the reserve fund
47    established in subsection ( a   1  )  of  this  section.
48      Except as to reserve taxes unpaid on the date on which they are due and
49    payable, n  N o reserve  taxes    tax  
50    shall  be   collected or paid into the reserve fund during a  
51    imposed for any  calendar year if, as of  December 31   
52    September 30  of the preceding calendar year, the balance of the reserve
53    fund  equals  or  exceeds  one percent (1%) of the state taxable wages for the
54    penultimate calendar year, or exceeds forty-nine percent (49%) of  the  actual
55    balance of the employment security fund, section 72-1346, Idaho Code.


                                      39

 1        ( c  3 )  The interest earned from investment of the
 2    reserve  fund    moneys   shall be deposited in a fund  hereby
 3     established in the state treasurer's office, to be known as the depart-
 4    ment of  employment     labor    special  administration
 5    fund,  hereinafter  "special  administration  fund." The moneys in the special
 6    administration fund shall be held separate and apart  from  all  other  public
 7      moneys  or   funds of this state .   and shall be
 8    mingled and undivided.  The  state  treasurer  shall  be  the    ex
 9    officio treasurer and  custodian of this fund and may invest said moneys
10    in  accordance  with    existing  law .   and rules
11    promulgated pursuant thereto.  Any interest earned on said moneys  shall
12    be  deposited in the special administration fund. In the absence of a specific
13    appropriation, the moneys in the special administration fund are   hereby
14      perpetually  appropriated to the director and may be expended with the
15    approval of the advisory council appointed pursuant to section 72-1336,  Idaho
16    Code, for costs related to employment service programs and unemployment insur-
17    ance  programs  administered  under    the employment security law 
18     this chapter . The director shall report  annually  to  the  joint
19    finance-appropriations committee and the advisory council the expenditures and
20    disbursements  made  from  the  fund during the preceding fiscal year, and the
21    expenditures and disbursements and /or  commitments made during the
22    current fiscal year to date.
23        ( d  4 )   Administrative costs for the collec-
24    tion of the reserve tax defined in subsection (b) of  this  section,  and  any
25    penalties  or  interest  thereon,  shall  be  paid from federal administrative
26    grants received under title III of the social security act, as amended, to the
27    extent permitted by federal law, and then from the state  employment  security
28    administrative and reimbursement fund, section 72-1348, Idaho Code, until such
29    time  as the special administration fund established in subsection (c) of this
30    section, has sufficient moneys to cover such administrative costs but  in  any
31    event,  no  later  than July 1, 1992. After July 1, 1992, such a  A
32    dministrative costs  related to the reserve fund  and  the  special
33    administration  fund    shall be paid from federal administrative grants
34    received under title III of the social security act,  as amended,  
35    to  the extent permitted by federal law, and then from the special administra-
36    tion fund.

37        SECTION 60.  That Section 72-1347B, Idaho Code, be, and the same is hereby
38    amended to read as follows:

39        72-1347B.  WORKFORCE DEVELOPMENT TRAINING FUND.  (  a    1
40    )  There is  hereby  established in the state treasury a spe-
41    cial trust fund, separate and apart from all  other  public    moneys  or
42      funds of this state, to be known as the workforce development training
43    fund, hereinafter "training fund."  Except as provided  herein,  all  proceeds
44    from  the training tax defined in subsection ( d  4 ) of
45    this section shall be paid into the training  fund  .      and
46    shall be mingled and undivided.  The state treasurer shall be the custo-
47    dian of the training fund and shall invest said moneys in accordance with law.
48    Any  interest earned on the moneys in the  training fund shall be deposited in
49    the training fund. Moneys in the training fund shall be  disbursed  in  accor-
50    dance with the directions of the director.
51        (  b  2 )  All moneys in the training fund are 
52    hereby  perpetually appropriated  and made available  to  the
53    director  for  expenditure  in accordance with the provisions of this section.


                                      40

 1    The purpose of the training fund  established by this section    is
 2    to  provide  or expand training and retraining opportunities in an expeditious
 3    manner that would not otherwise exist for Idaho's workforce. The training fund
 4    is intended to supplement, but not to supplant or compete with,  money  avail-
 5    able through existing training programs. The moneys in the training fund shall
 6    be used for the following purposes:
 7        (  1   a )  To provide training for skills necessary
 8        for specific economic opportunities and industrial expansion initiatives;
 9        ( 2  b )  To provide training to upgrade the  skills
10        of currently employed workers at risk of being permanently laid off;
11        (  3  c )  For refunds of training taxes erroneously
12        collected and deposited in the workforce training fund;
13        ( 4  d )  For all administrative  expenses  incurred
14        by  the  department associated with the collection of the training tax and
15        any other administrative expenses associated with the training fund.
16        ( c  3 )  Expenditures from the  training  fund  for
17    purposes  authorized in paragraphs ( 1  a ) and ( 2
18     b ) of subsection ( b   2  )  of  this
19    section  shall  be approved by the director  of the department of employ-
20    ment  and the director of the department of  commerce  based  on  proce-
21    dures,  criteria  and performance measures established by  a  
22    the  council appointed  by the governor,  or  an  existing  council
23    designated  by  the  governor, hereinafter "council."   pursuant to
24    section 72-1336, Idaho Code.  The activities funded by the training fund
25    will be coordinated with similar activities funded by the  state  division  of
26    vocational  education. Expenditures from the training fund for purposes autho-
27    rized in paragraphs ( 3  c ) and ( 4   d
28    )  of subsection ( b  2 ) of this section shall be
29    approved by the director. The director shall pay all approved expenditures  as
30    long  as  the  training  fund has a positive balance. The council shall report
31    annually to the governor and the joint  finance-appropriations  committee  the
32    commitments and expenditures made from the training fund in the preceding fis-
33    cal year and the results of the activities funded by the training fund.
34        (  d  4 )   Effective January 1, 1996, and each
35    calendar year thereafter, a    A    training  tax  is  hereby
36    imposed  on  all  covered  employers required to pay contributions pursuant to
37    section 72-1350, Idaho Code, with the exception of deficit employers who  have
38    been  assigned  a  taxable  wage  rate from rate class six pursuant to section
39    72-1350, Idaho Code. The training tax rate shall be  equal  to  three  percent
40    (3%) of the taxable wage rate then in effect for each eligible, standard-rated
41    and  deficit  employer.  The training tax shall be due and payable at the same
42    time and in the same manner as  contributions.  This  subsection  is  repealed
43    effective  January  1, 2002, unless, prior to that date, the Idaho legislature
44    approves the continuation of this subsection by repeal of this sunset clause.
45        ( e  5 )  The provisions of this chapter which apply
46    to the payment and collection of contributions also apply to the  payment  and
47    collection  of  the training tax ,   imposed by subsection (d)
48    of this section,  including the same calculations,  assessments,  method
49    of  payment,  penalties, interest, costs, liens, injunctive relief, collection
50    procedures and refund procedures. In the administration of the  provisions  of
51    this  section ,  the director is granted all rights, authority, and
52    prerogatives granted  the director  under the  provisions  of  this
53    chapter. Moneys collected from an employer delinquent in paying contributions,
54    reserve  taxes   and   the  training  tax  shall first be applied to  pay
55     any penalty and interest imposed pursuant to  the  provisions  of  this


                                      41

 1    chapter and shall then be applied pro rata to  pay  delinquent con-
 2    tributions  to  the  employment  security  fund,  section 72-1346, Idaho Code,
 3    delinquent reserve taxes to the reserve fund, section  72-1347A,  Idaho  Code,
 4    and  delinquent training taxes to the training fund .   estab-
 5    lished in this section.  Any interest and penalties  collected  pursuant
 6    to  this  subsection shall be paid into the state employment security adminis-
 7    trative and reimbursement fund, section 72-1348, Idaho Code, and any  interest
 8    or  penalties  refunded  under  this subsection shall be paid out of that same
 9    fund. Training taxes paid pursuant to this section shall not  be  credited  to
10    the  employer's  experience  rating  account  and may not be deducted  in
11    whole or in part  by any employer from the wages of individuals  in  its
12    employ.  All  training taxes shall be deposited in the clearing account of the
13    employment security fund, section 72-1346, Idaho Code, for clearance only  and
14    shall  not  become  part  of  such  fund. After clearance, the moneys shall be
15    deposited in the training fund established in subsection ( a  
16    1 ) of this section.
17        (  f  6 )  Administrative  expenditures for the
18    collection of the training tax defined in subsection (d) of this  section  and
19    the  maintenance  of the training fund, and any penalties or interest thereon,
20    shall be paid from the state employment security administrative and reimburse-
21    ment fund, section 72-1348, Idaho Code, until such time as the  training  fund
22    established  in  subsection (a) of this section has sufficient moneys to cover
23    such administrative costs. At that  time,  such  administrative    costs
24     related to the training fund  shall be paid from the training fund
25    in  accordance  with  subsection  (  c    3  )  of  this
26    section .   and all moneys previously paid from the employment
27    security  administrative  and reimbursement fund, section 72-1348, Idaho Code,
28    for the administration of the training fund shall be reimbursed. 

29        SECTION 61.  That Section 72-1348, Idaho Code, be, and the same is  hereby
30    amended to read as follows:

31        72-1348.  STATE EMPLOYMENT SECURITY ADMINISTRATIVE AND REIMBURSEMENT FUND.
32    (  a    1  )  There   shall be, and  is 
33    hereby  created in the state treasury  a special fund to  be  known
34    as    the  "State  Employment  Security Administrative and Reimbursement
35    Fund." Notwithstanding the provisions of sections 72-1346 and  72-1347,  
36    Idaho Code,  the fund shall consist of:
37        (  1  a )   a  A ll penalties,
38        and all interest on judgments or accounts secured by liens, collected pur-
39        suant to the provisions of sections  72-1347A,  72-1347B  and  
40        72-1354    to      through  72-1364,  inclusive
41          Idaho Code , but only after such interest and penalties
42        have been deposited in the clearing account and  are   thereaf-
43        ter  transferred  to  this  fund    at  such times and  in such
44        amounts as ,  in the discretion of the director  ,  
45        will  leave a sufficient balance of interest and penalties in the clearing
46        account  to    take  care  of  interest       pay   
47        refunds ,  ;  and
48        (  2    b  )   all   Reed act 
49        moneys  requisitioned for the administration of this act pursuant  to
50        a  specific appropriation by the legislature of this state of moneys which
51        have heretofore or may hereinafter accrue to the account of this state  in
52        the unemployment trust fund in the treasury of the United States by virtue
53        of section 903 of the Federal Social Security Act, as amended  


                                      42

 1        appropriated  for  the  purchase of land and buildings pursuant to section
 2        72-1346(4), Idaho Code .
 3         (3)  The director through the treasurer of the state  of  Idaho  may
 4        requisition  the  moneys  mentioned under (2) above, and upon receipt they
 5        shall be deposited in this fund. Until  they  are  expended,  such  moneys
 6        shall  remain  a  part of the employment security fund. The director shall
 7        maintain a separate record of the deposit, obligations,  expenditure,  and
 8        return of such funds. If any money so deposited is, for any reason, not to
 9        be  expended  for  the  purpose  for  which it was appropriated, or, if it
10        remains  unexpended  at  the  end  of  the  period  specified  in  section
11        72-1346(e)(1), it shall be withdrawn and returned to the secretary of  the
12        treasury  of  the  United States for credit to this state's account in the
13        unemployment trust fund.
14        (b)  All moneys in said fund shall be and are hereby perpetually appropri-
15    ated and made available to the director in the manner  and  for  the  purposes
16    hereinafter  set  forth.  Said  moneys  shall not be expended or available for
17    expenditure in any manner which would permit their substitution for (or corre-
18    sponding reduction in) Federal funds granted under Title III  of  the  Federal
19    Social  Security Act, as amended, which would in the absence of said moneys be
20    available to finance expenditures for the  administration  of  the  Employment
21    Security  Law, nor shall such moneys, while a part of this fund, be in anywise
22    subject to control by the United States Government or any agency  or  official
23    thereof. The other provisions of this subsection to the contrary notwithstand-
24    ing,  it  is provided that any moneys referred to in subsection (a)(2) of this
25    section shall be subject to such control and regulations and may be used  only
26    in  the manner provided in this section and in section 72-1346 of this act and
27    in section 903 of the Federal Social Security Act, as amended. But nothing  in
28    this section shall prevent any moneys referred to in subsection (a)(1) of this
29    section  from  being used as a revolving fund to cover expenditures (necessary
30    and proper under the law) for which federal funds have been duly requested but
31    not yet received, subject to the charging of such  expenditures  against  such
32    funds  when received. The moneys in this fund may be used by the director only
33    for the payment of costs of administration which have not been provided by  or
34    are  found  not  to  have been properly and validly chargeable against federal
35    grants (or other funds) received for or in the employment security administra-
36    tion fund, and the payment of refunds of penalties pursuant to section 72-1357
37    if such penalties were paid into this fund and payments specified  in  subsec-
38    tion  (c) of this section. No expenditure of this fund shall be made except on
39    written authorization by the director and state board of examiners.
40        (c)  The moneys in this fund shall be continuously available to the direc-
41    tor for expenditure in accordance with the provisions  of  this  section.  The
42    moneys  referred to in subsection (a)(1) of this section shall be available to
43    the director for reimbursement which  may  be  required  pursuant  to  section
44    72-1347(b), and such moneys shall not lapse at any time and may be transferred
45    to  another fund only when the balance exceeds the amount deemed by the direc-
46    tor as a reasonable reserve against future needs; then such  excess  shall  be
47    transferred  to  the  employment security fund established by section 72-1346.
48    
49        ( d  2 )   The employment security  agency  may
50       Moneys referred to in subsection (1)(a) of this section are per-
51    petually appropriated to the director and may be used upon written  authoriza-
52    tion of the board of examiners for any lawful purpose, including, but not lim-
53    ited to:
54        (a)  As  a  revolving  fund  to cover expenditures for which federal funds
55        have been duly requested but not yet received,  subject  to  reimbursement


                                      43

 1        upon receipt of the federal funds;
 2        (b)  For  the  payment of costs of administration including costs not val-
 3        idly chargeable against federal grants;
 4        (c)  For the payment of refunds of penalties pursuant to section  72-1357,
 5        Idaho Code; and
 6        (d)  For  the  purchase of land and buildings for the purpose of providing
 7        office space for the department.
 8        (3)  Moneys referred to in subsection (1)(b) of this section may  be  used
 9    by  the  department to  acquire for and in the name of the state by term
10    purchase agreement  such  lands and buildings for  the purpose
11    of providing  office space for  the    employment  security  agency
12      department  at such places as the  agency  
13    director  finds necessary .   and suitable. 
14          (1)    An agreement made for the purchase of  the 
15        premises  pursuant to this subsection  shall be subject to  the
16        approval  of  the  attorney  general  as  to  form  and  as to 
17        title .   thereto and shall not subject the state to  lia-
18        bility  for  payment  of the purchase price or any part or portion thereof
19        except from moneys allocated to the state by the United States  department
20        of labor for the administration of this act.
21        (2)  All  moneys  received  from the United States for the payments autho-
22        rized by this subsection for lands and buildings shall be deposited in the
23        employment security administrative and reimbursement  fund  in  the  state
24        treasury  and  may be utilized for the purposes herein set out upon appro-
25        priation by the state legislature; provided, that all such moneys received
26        from the United States with respect to expenditures made from money  cred-
27        ited  to the account of this state in the unemployment trust fund pursuant
28        to section 903 of the Federal Social Security Act, as  amended,  shall  be
29        deposited with the secretary of the treasury of the United States of Amer-
30        ica  to  the credit of the account of this state in the unemployment trust
31        fund.
32        (3)  If the p  P remises  are  purchased  pur-
33        suant  to this section , the employment security agency or such other
34        department of state performing its functions,  shall be  housed
35        therein   used for the department , or if it is desirable
36        to move the   employment  security  agency      department
37        ,    other substantially  similar space will be furnished
38        by the state to the  agency    department    without
39        further payment therefor by the United States.

40        SECTION  62.  That Section 72-1349, Idaho Code, be, and the same is hereby
41    amended to read as follows:

42        72-1349.  PAYMENT OF CONTRIBUTIONS. ( a  1 ) Contri-
43    butions shall be paid on taxable wages for each calendar  year  equal  to  the
44    amount    as  determined in accordance with section 72-1350( a
45     1 ), Idaho Code. Contributions on wages paid to an  individ-
46    ual  under  another state unemployment insurance law, or paid by an employer's
47    predecessor during the calendar year, shall be counted in complying with  this
48    provision.
49        ( b  2 )  Contributions shall accrue and become pay-
50    able  by each covered employer for each calendar quarter with respect to wages
51    for covered employment. Such contributions shall become due  and  be  paid  by
52    each  covered  employer to the director for the employment security fund 
53    in accordance with such rules and regulations as the director  may  prescribe,


                                      44

 1      and  shall  not  be deducted  in whole or in part  from the
 2    wages of individuals employed by such employer.  All moneys  required  to
 3    be paid by a covered employer pursuant to this chapter shall immediately, upon
 4    becoming  due  and  payable, become or be deemed money belonging to the state,
 5    and every covered employer shall hold or be deemed to hold  said  money  sepa-
 6    rately,  aside,  or in trust from any other funds, moneys or accounts, for the
 7    state of Idaho for payment in the manner and at the  times  provided  by  law.
 8    
 9        (  c  3 )  The contributions payable by each covered
10    employer, with respect to covered employment, accruing in each calendar  quar-
11    ter,  shall be paid on or before the last day of the month following the close
12    of said calendar quarter.
13        ( d  4 )  The director may, for good cause shown  by
14    a  covered  employer,  extend the time for payment of his contributions or any
15    part thereof, but no such extension of time shall postpone the due  date  more
16    than sixty (60) days. Contributions with respect to which an extension of time
17    for  payment  has  been granted shall be paid on or before the last day of the
18    period of the extension.
19        ( e  5 )  Whenever it appears to be essential to the
20    proper administration of this  act   chapter  that  col-
21    lection  of  the  contributions  of a covered employer must be made more often
22    than quarterly, the director shall have authority to  demand  payment  of  the
23    contributions    of  such covered employer  forthwith . 
24     or at such specific times as the director shall order. 
25        ( f  6 )  In accordance with    regulations  as
26        rules   the director may prescribe, any person or persons
27    entering into a formal contract with the state, any county, city, town, school
28    or irrigation district, or any quasi public corporation of the state, for  the
29    construction, alteration, or repair of any public building ,  
30    or    public work,  or quasi public work,  the contract price
31    of which exceeds the sum of  two hundred follars    one  thou-
32    sand dollars  ($ 2  1,0 00) may be required before
33    commencing  such work, to  executate   execute  a surety
34    bond in an amount sufficient to cover contributions when due.    In  case
35        If    the  director  ,  who  shall 
36    approve  s    said  bond   ,         shall   
37    determine  s   that said bond has become insufficient , 
38     or inadequate,  he may require that a  new  bond  be  provided  in
39      such   the  amount  as  he  may 
40    direct s . Failure on the part of the  covered  employer
41    covered by the bond to pay the full amount of his contributions when due shall
42    render the surety liable on said bond as though the surety  was  the  employer
43    and  subject  to  the  other provisions of this  act   chapter
44    .
45        ( g  7 )  In the  payment  of  any  contributions  a
46    fractional  part  of  a   cent   dollar  shall be disre-
47    garded unless it amounts to  one-half   fifty  cent
48    s  ( 1/2  50 [) or more, in which case it shall be
49    increased to one  cent   dollar  (  1[  
50    $1.00 ).

51        SECTION 63.  That Section 72-1349A, Idaho Code, be, and the same is hereby
52    amended to read as follows:

53        72-1349A.  FINANCING  OF BENEFIT PAYMENTS BY NONPROFIT ORGANIZATIONS 


                                      45

 1    AND GOVERNMENTAL ENTITIES . ( a  1 ) Benefits paid
 2    to employees of  governmental entities and  nonprofit organizations
 3    shall be financed in accordance with the provisions of this section.  For
 4    the purpose of this section, a nonprofit organization is a religious, charita-
 5    ble, educational or other organization  which  is  described  in  section  501
 6    (c)(3) of the Federal Internal Revenue Code and which is exempt from tax under
 7    section 501(a) of such code. 
 8        A group of  nonprofit   such  organizations  or
 9    entities  may elect ,  with the approval of the director
10    ,    to act as a group in fulfilling the requirements of this  sec-
11    tion or of this act   chapter .
12        ( 1  2 )  Liability for contributions  and  election
13    of  reimbursements.    Any     A  nonprofit organization
14     or governmental entity  shall pay contributions under  the  provi-
15    sions of section 72-1349, Idaho Code, unless it elects ,  in accor-
16    dance  with  this    paragraph    section  to pay to the
17    director  for the unemployment fund  an amount equal  to  the  full
18    amount  of  regular benefits  paid  and  one-half (1/2) 
19    the amount  of   paid for  extended benefits   paid
20      for which the department is not reimbursed by the federal govern-
21    ment  , for any reason including ,  but not limited to ,
22     payments made as a result of a determination  or  payments  erroneously
23      or  incorrectly    paid or paid as a result of a determination of
24    eligibility which is subsequently reversed ;  if  said  payment  or
25    any portion thereof was made as a result of wages earned in the employ of such
26       nonprofit    organization  ,      or  entity.  A
27     a ny sums recovered by the department from a    benefit
28      claimant as a result of said payments shall be credited to the account
29    of the nonprofit organization  or governmental entity  which  reim-
30    bursed the fund for the payment of said benefits. Where such benefits are paid
31    utilizing  wages paid by two (2) or more employers, the portion of benefits to
32    be repaid by  a nonprofit   the  organization    or
33    entity    shall  be    their    its  proportionate
34    share.  This shall be computed on the basis of the relationship between  wages
35    utilized  which  were  earned  for services performed for such  nonprofit
36     organization  or entity  and the  total  wages  utilized  in
37    paying such benefits.
38        (  A   3 )  Any nonprofit organization  or gov-
39    ernmental entity  may elect to become liable for  payments  in  lieu  of
40    contributions,  provided  it files with the director a written notice of 
41    its  election  within the thirty (30) day period following: January
42    1, 1972, if such organization is, or becomes subject to this act on January 1,
43    1972, or the date of the determination that such organization is subject if it
44    becomes subject after January 1, 1972,   not later than thirty (30)
45    days prior to the beginning of any taxable year or  within  thirty  (30)  days
46    after  the date of the final determination that such organization or entity is
47    subject to this chapter. S  s uch election shall be effective
48    for not less than  twelve (12) months   two (2)  full  taxable
49    years  after  the  election  is made,  and will continue to be in effect
50    until terminated.  The  nonprofit   organization    or  entity
51      must  file  with  the director a written notice of termination of such
52    election not later than thirty (30) days prior to the beginning of the taxable
53    year for which such  termination  shall  first  be  effective.   The  director
54    may  ,  in  his  discretion,    terminate  the   an
55     election as provided in this  paragraph. The director may for good


                                      46

 1    cause   section or  extend the period within which  a  notice
 2    of election ,  or a notice of termination must be filed.
 3              (B)  Any nonprofit organization which has been paying contribu-
 4             tions  under this act for a period subsequent to January 1, 1972, may
 5             change to a reimbursable basis by filing with the director not  later
 6             than  thirty  (30)  days prior to the beginning of any taxable year a
 7             written notice of election to become liable for payments in  lieu  of
 8             contributions. Such election shall not be terminable by the organiza-
 9             tion for that and the next year.
10             (C)    The  director  shall  notify each nonprofit organization
11              and governmental entity  of any determination  which
12              he  may  make s  of  its  status  as  an
13             employer and of the effective date of any election which it makes and
14             of  any termination of such election.   Such determination shall
15             be subject to reconsideration, appeal, and review in accordance  with
16             provisions  of  subsections (f), (g), (h) and (i) of section 72-1368,
17             Idaho Code. 
18        ( 2  4 )  Reimbursement payments.  Payments in  lieu
19    of contributions shall be made in accordance with the provisions of this 
20    paragraph    subsection,  including either  subparagraph
21    (A)   paragraph (a)  or  subparagraph (B)    
22    paragraph (b) .
23        ( A  a )   1.   At the end of each calen-
24        dar quarter, or at the end of any other period as determined by the direc-
25        tor,  the  director  shall  bill  each  nonprofit  organization
26         or entity  (or group of  nonprofit    organizations
27          or  entities  ) which has elected to make payments in lieu of
28        contributions for an amount equal to the full amount of  regular  benefits
29         and one-half (1/2) the amount of extended benefits paid for any rea-
30        son  as  herein  provided in paragraph (a)(1) above during such quarter or
31        other prescribed period which is   paid, and  the  amount  paid
32        for  extended  benefits  for which the department is not reimbursed by the
33        federal government, if  paid as a result  of  wages  earned  in  the
34        employ of such organization  or entity .
35                    2. Bond  on surety requirements.  Any nonprofit organiza-
36                  tion that elects to become liable for payments in lieu  of  con-
37                  tributions may be required to obtain and deposit with the direc-
38                  tor  a  surety  bond approved by the director. The amount of the
39                  bond shall be determined by the director on the basis of  poten-
40                  tial  liability  for  benefit  costs of each employing nonprofit
41                  organization.  Such bond shall be in force for a period  of  not
42                  less  than  two  (2)  years,  and shall be renewed not less fre-
43                  quently than two (2) year intervals for as long as the organiza-
44                  tion continues to be liable for payments in  lieu  of  contribu-
45                  tions.  The director shall require adjustments to be made in the
46                  bond  filed  as deemed appropriate.  When upward adjustments are
47                  required, the adjusted bond shall be filed  within  thirty  (30)
48                  days  of  the date notice of the required adjustment was mailed.
49                  Failure by an organization covered by such bond to pay the  full
50                  amount of payments due, together with interest and penalties, as
51                  provided in section 72-1354, Idaho Code, shall render the surety
52                  liable  on  said  bond  to the extent of the bond, as though the
53                  surety was a liable organization. 
54        ( B  b )  Payment in advance.   Nonprofit  organiza-
55        tions   or governmental entities  may elect to make payments in


                                      47

 1        lieu of contributions in advance of  actual  billing  for  payment  costs.
 2        Advance  payments  shall  be made as follows:  At the end of each calendar
 3        quarter, the nonprofit organization  or  governmental  entity  
 4        shall pay one percent (1%) of its total quarterly payroll  unless the
 5        director  determines  that a lesser percentage will cover the cost of pay-
 6        ment of benefits to the employees of said employer. For purposes  of  this
 7        section,  the  total  quarterly payroll for school districts shall be com-
 8        puted based upon only those school districts which have elected cost reim-
 9        bursement status . Such payments shall become due and payable within
10        thirty (30) days following the quarter ending.
11             At the end of such taxable year ,  the director shall com-
12        pute the benefit costs attributable to  such nonprofit  organization,
13            the  employer   as provided in subsection  (A) 1
14        above   (2) of this section  .  The  director  will  then
15        debit  the employer's account with these costs. When payments exceed bene-
16        fit costs, the employer will be credited on subsequent benefit costs  with
17        the  overpayment  ,  or given a refund upon request . When pay-
18        ments are not sufficient to pay    such    benefit  costs,  the
19        employer will be billed the additional amount necessary to pay such costs.
20          (5)  Bond  requirements.  Any nonprofit organization that elects to
21    become liable for payments in lieu of contributions may be required to  obtain
22    and  deposit  with  the  director a surety bond approved by the director.  The
23    amount of the bond shall be determined by the director on the basis of  poten-
24    tial  liability  for  benefit  costs of each employing nonprofit organization.
25    Such bond shall be in force for a period of not less than two (2)  years,  and
26    shall  be  renewed not less frequently than two (2) year intervals for as long
27    as the organization continues to be liable for payments in lieu  of  contribu-
28    tions.  The director shall require adjustments to be made in the bond filed as
29    deemed appropriate. When upward adjustments are required,  the  adjusted  bond
30    shall  be  filed  within  thirty  (30) days of the date notice of the required
31    adjustment was mailed. Failure by an organization covered by such bond to  pay
32    the full amount of payments due, together with interest and penalties, as pro-
33    vided  in  section 72-1354, Idaho Code, shall render the surety liable on said
34    bond to the extent of the bond, as though the surety was  a  liable  organiza-
35    tion. 
36        ( C  6 )   1.   Failure to pay timely. If
37    any  nonprofit  organization  or governmental entity  is delinquent
38    in making payments in lieu of contributions,  as required under paragraph
39    (A) 1 or (B) of this subsection,  the director may terminate such  
40    organization's      employer's   election to make payments in
41    lieu of contributions as of the beginning of the next taxable year,  and  such
42    termination shall be effective for that and the next taxable year.
43                    2.   Any nonprofit organization  or governmen-
44                  tal entity  becoming delinquent in making  payment  s
45                    in  lieu of contributions  as required in (A) 1 and
46                  (B) of this subsection  shall be subject to the  same
47                   penalty provisions   provided  in  section  72-1354,
48                  Idaho  Code,  the  collection provisions of sections 72-1355 and
49                  72-1360, Idaho Code, and the jeopardy  assessment  provision  of
50                  section  72-1359,  Idaho  Code   as any other covered
51                  employer as provided in this chapter .
52        ( D  7 )  Appeals procedure.  The n 
53    N onprofit organization s and governmental entities    making
54    payments  in  lieu   of  contributions  may appeal  the director's 
55     a  determination  of benefit costs and payment credits 


                                      48

 1     made pursuant to this section  as provided in section  72-136
 2    8  1 , Idaho Code.
 3        (  b    8 )  In the payment of any  payments in
 4    lieu of  contributions a fractional part of a   cent    
 5    dollar   shall be disregarded unless it amounts to  one-half 
 6     fifty  cent s  ( 1/2   50  [)  or
 7    more,  in which case it shall be increased to one  cent   dol-
 8    lar  ( 1[  $1.00 ).

 9        SECTION 64.  That Sections 72-1349B and 72-1349C, Idaho Code, be, and  the
10    same are hereby repealed.

11        SECTION 65.  That Section 72-1349D, Idaho Code, be, and the same is hereby
12    amended to read as follows:

13        72-1349  D    B .  FINANCING OF BENEFITS PAYMENTS BY
14    PROFESSIONAL EMPLOYERS AND THEIR CLIENTS. (1) Nonprofit organizations and gov-
15    ernmental entities excepted. Financing of benefits for workers assigned  by  a
16    professional employer to a nonprofit organization , as defined in section
17    72-1349A(a), Idaho Code,   or a governmental entity  shall be
18    paid    by  the  nonprofit  organization,    as provided in section
19    72-1349A, Idaho Code.  Financing of benefits for workers  assigned  by  a
20    professional employer to a governmental entity shall be paid by the governmen-
21    tal  entity,  as provided in section 72-1349B, Idaho Code.  Financing of
22    benefits for workers assigned by a professional employer to any  entity  other
23    than  a  nonprofit organization or governmental entity shall be made in accor-
24    dance with the provisions of this section.
25        (2)  Liability for contributions. Unless a professional employer meets the
26    minimum requirements of this  act   chapter , its client
27    shall remain liable as a covered employer for any  contributions owing on
28    wages   payments due  under the provisions of this   act
29        chapter  .  During  the  term  of a professional employer
30    arrangement, a professional employer is liable , in accordance  with  the
31    provisions  of  sections  72-1349, 72-1354 and 72-1360, Idaho Code,  for
32    the payment of  contributions, penalties, and interest  on    
33    all  moneys  due  pursuant to this chapter as a result of  wages paid to
34    employees assigned to a client company, except compensation paid to sole  pro-
35    prietors or partners in the client company.
36        (3)  Joint and several liability. A client is jointly and severally liable
37    for any unpaid  contributions, interest and penalties   moneys
38      due under the provisions of this  act   chapter 
39    from the professional employer for wages paid to workers assigned to the  cli-
40    ent.
41        (4)  Reporting  requirements.  The  professional employer shall report and
42     pay   make  all  contributions     pay-
43    ments    under  its  state  employer  account  number.  The professional
44    employer shall keep  separate  records  and  submit  separate  quarterly  wage
45    reports for each of its clients. The professional employer shall pay contribu-
46    tions for its clients collectively using the professional employer's contribu-
47    tion  rate  unless it elects to pay the contribution for certain clients indi-
48    vidually in which instance the contribution shall be paid using the individual
49    client's contribution rate.
50        (5)  Interested party. As between a professional employer and its  client,
51    the  professional  employer company shall be deemed to be the interested party
52    for purposes of section 72-1323, Idaho Code, and all proceedings to  determine


                                      49

 1    rights to benefits under the provisions of this  act   chapter
 2    .
 3        (6)  Temporary  workers. The provisions of this section do not apply to an
 4    entity that provides temporary workers on a  temporary  help  basis,  provided
 5    that  the entity is liable as the employer for  all  payment s
 6    due under the provisions of this chapter as a result  of  contribu-
 7    tions on  wages paid to those temporary workers.
 8        (7)  Rebuttable presumption. When a professional employer assigns  workers
 9    to  only  one (1) client and its affiliates, there is a rebuttable presumption
10    that the client entered into a professional employer arrangement to avoid cal-
11    culation of the proper  contribution     taxable  wage  
12    rate  .   for payment of unemployment insurance contributions.
13     If the professional employer  fails  to  rebut  this  presumption,  the
14    director,  pursuant to section 72-1353, Idaho Code, shall issue an administra-
15    tive determination of coverage holding the client to be the  covered  employer
16    for purposes of this  act   chapter .
17        (8)  A client ceasing to pay wages. Whenever a client ceases to pay wages,
18    such  client shall be subject to termination of its employer account and expe-
19    rience rating records in the same manner as any other employer, in  accordance
20    with  the  provisions of sections 72-1351 and 72-1352, Idaho Code. If a client
21    which has ceased to pay wages subsequently becomes subject to this    act
22        chapter    because  it  resumes  paying wages, it will be
23    assigned the appropriate experience rate in accordance with the provisions  of
24    section 72-1351, Idaho Code.
25        (9)  Succession  of  experience  factors. Whenever a professional employer
26    arrangement is entered, the separate account and experience factors of payroll
27    and reserve shall be transferred to the professional employer for the  purpose
28    of  determining  the  professional  employer's contribution rate to be paid on
29    behalf of the client. Upon the expiration or termination of  the  professional
30    employer  arrangement, so much of the professional employer's separate account
31    and experience factors of payroll and reserve as is attributable to the client
32    shall be transferred to the terminating client for the purpose of  determining
33    the  client's  subsequent  rate of contribution. In the event the professional
34    employer elects to pay the client's contribution  separately  as  provided  in
35    subsection  (4)  of this section, then the client's experience factors of pay-
36    roll and reserve shall remain with the client employer for the duration of the
37    professional employer arrangement.

38        SECTION 66.  That Section 72-1350, Idaho Code, be, and the same is  hereby
39    amended to read as follows:

40        72-1350.  TAXABLE WAGE BASE AND TAXABLE WAGE RATES. ( a  1
41    )  All remuneration for personal services as defined in section 72-1328,
42    Idaho Code, equal to the average annual wage in  covered  employment  for  the
43    penultimate calendar year, rounded to the nearest multiple of  six 
44      one    hundred  dollars ($ 6  1 00), or the
45    amount of taxable wage base specified in the  federal  unemployment  tax  act,
46    whichever is higher, shall be the taxable wage base for purposes of this 
47    act.  Provided however, and notwithstanding any other provision of the employ-
48    ment security law to the contrary, for calendar year  1997  the  taxable  wage
49    base  shall  be  twenty-one  thousand dollars ($21,000), which was the taxable
50    wage base in effect for calendar year 1995   chapter .
51        ( b  2 )  All covered employers, except those eligi-
52    ble and electing the cost reimbursement payment method, shall be assigned tax-
53    able wage rates annually by the director in accordance with the following


                                      50

 1    , provided however, and notwithstanding any other provision of the  employment
 2    security  law  to  the contrary, for calendar year 1997 the taxable wage rates
 3    for all covered experience-rated employers shall be determined  in  accordance
 4    with  schedule  I,  which  was  the  schedule in effect for calendar year 1995
 5    .
 6        ( c  3 )  A desired employment  security  fund  size
 7    shall be determined for each calendar year by calculating from the penultimate
 8    year, the ten (10) year average of annual benefits paid to wages covered, mul-
 9    tiplied  by  one  and one-half (1.5). The resulting ratio, when applied to the
10    covered wages of the penultimate year, represents the desired fund size.  This
11    calculation is hereafter referred to as the average cost multiple (ACM).
12        (  d  4 )   Beginning in calendar year 1989 and
13    effective each calendar year thereafter, t  T  he  ACM  
14    becomes   shall be  the ratio at the top of taxable wage rate
15    schedule  V  as  provided in subsection ( g  7 ) of this
16    section, and all other ratios for schedules I through IX are  adjusted  up  or
17    down from schedule V in equal increments of .005.
18        (  e    5 )  The taxable wage rate schedule for each
19    calendar year shall be determined by comparing the ratio of the actual balance
20    of the employment security fund, section 72-1346, Idaho Code, and the  reserve
21    fund,  section  72-1347A, Idaho Code, on September 30, to the wages covered in
22    the penultimate year against the taxable wage schedule ratios as  provided  in
23    subsection ( d  4 ) of this section.
24        (  f  6 )  The ratios computed for each taxable wage
25    rate schedule as provided in subsection ( d  4 ) of this
26    section shall be placed with their appropriate schedule at the top of the col-
27    umns as provided in subsection ( g  7 ) of this section,
28    and shall represent the minimum fund level required for the specific  schedule
29    to be in effect.


                                      51

 1    FOR  A COPY OF THE TABLE/PRINTED BILL PLEASE CONTACT THE LEGISLATIVE MAIL CEN-
 2    TER  (208-334-3012) OR FOR A COPY OF THE TABLE ONLY CONTACT SHARON NATANSON IN
 3    THE LEGISLATIVE SERVICES OFFICE (208-334-2475).


                                      52


                                      53


                                      54


                                      55

 1        ( h  8 )  Each employer will be assigned  a  taxable
 2    wage  rate  from  the  effective  taxable  wage  rate  schedule  for eligible,
 3    standard-rated and deficit employers, based upon the employer's experience  as
 4    determined  under  the  provisions of sections 72-1319, 72-1319A, 72-1319B and
 5    72-1351, Idaho Code.
 6        ( 1  a )  Deficit employers who have been assigned a
 7        taxable wage rate from rate class six will be assigned contribution  rates
 8        equal to their taxable wage rate.
 9        (  2    b  )  All other eligible, standard-rated and
10        deficit employers will be assigned contribution  rates  equal  to  ninety-
11        seven percent (97%) of their taxable wage rate. Provided however, that for
12        each  calendar year a reserve tax is imposed pursuant to section 72-1347A,
13        Idaho Code, the contribution rates  for  employers  assigned  contribution
14        rates  pursuant  to  this paragraph shall be eighty percent (80%) of their
15        taxable wage rate.
16        ( i  9 )  Each employer shall  be  notified  of  his
17    taxable wage rate as determined for any calendar year pursuant to this section
18    and  section  72-1351,  Idaho Code. Such determination shall become conclusive
19    and binding upon the employer, unless within fourteen (14) days after delivery
20    or mailing of the notice thereof to his last known address, the employer files
21    an application for redetermination, setting forth his reasons therefor. Recon-
22    sideration shall be limited to transactions occurring subsequent to any previ-
23    ous determination which has become final. The employer shall be promptly noti-
24    fied of the redetermination, which shall become  final  unless  an  appeal  is
25    filed  within  fourteen  (14)  days after delivery or mailing of notice to his
26    last known address. Proceedings on the appeal shall be in accordance with  the
27    provisions of section 72-1361, Idaho Code.

28        SECTION  67.  That Section 72-1351, Idaho Code, be, and the same is hereby
29    amended to read as follows:

30        72-1351.  EXPERIENCE RATING. ( a  1 ) Subject to the
31    other provisions of this  act   chapter , each  eligible
32    and deficit employer's (except cost reimbursement employers) taxable wage rate
33    shall be determined in the manner set forth below for each calendar year:
34        ( 1  a )  (i)  Each eligible employer shall be given
35             an  "experience factor" which shall be the ratio of excess of contri-
36             butions over benefits paid on the employer's account  since  December
37             31,  1939,  to his average annual taxable payroll rounded to the next
38             lower dollar amount for the four (4) fiscal years immediately preced-
39             ing the computation date, except that when an employer first  becomes
40             eligible,  his  "experience  factor"  will be computed on his average
41             annual taxable payroll for the two (2) fiscal years or more, but  not
42             to  exceed  four (4) fiscal years, immediately preceding the computa-
43             tion date. The computation of such "experience factor"  shall  be  to
44             six (6) decimal places.
45             (ii)  Each deficit employer shall be given a "deficit experience fac-
46             tor"  which  shall  be  the  ratio  of excess of benefits paid on the
47             employer's account over contributions since December 31, 1939, to his
48             average annual taxable payroll  rounded  to  the  next  lower  dollar
49             amount  for    the    one   (1)  or more fiscal
50             years, but not to exceed four (4) fiscal years, for which he had cov-
51             ered employment ending on the computation  date;  provided,  however,
52             that  any employer who on any computation date has a "deficit experi-
53             ence factor" for the period immediately  preceding  such  computation


                                      56

 1             date but who has filed all reports, paid all contributions and penal-
 2             ties  due  on or before the cut - off date, and has during
 3             the last four (4) fiscal years  occuring after  June  30,  1958,
 4               paid  contributions  at  a rate of not less than the standard
 5             rate applicable for each such year and in excess of benefits  charged
 6             to  his  experience  rating account during such years, shall have any
 7             balance of benefits charged to his account which on  the  computation
 8             date  immediately preceding such four (4) fiscal years were in excess
 9             of contributions paid, deleted from his account, and the excess bene-
10             fits so deleted shall not be considered in  the  computation  of  his
11             taxable  wage  rate for the rate years following such four (4) fiscal
12             years. For the rate year following such computation date, he shall be
13             given the standard rate for that year.
14             (iii) In the event an employer's coverage has been terminated because
15             he has ceased to do business  or  because  he  has  not  had  covered
16             employment  for  a  period  of  four  (4) years, and if said employer
17             thereafter becomes a covered  employer,  he  will  be  considered  as
18             though  he were a new employer, and he shall not be credited with his
19             previous experience under  the act      this  chapter
20              for the purpose of computing any future "experience factor."
21        (  2    b )  Schedules shall be prepared listing all
22        eligible employers in inverse numerical order of their experience factors,
23        and all deficit employers in numerical order of their  deficit  experience
24        factors. There shall be listed on such schedules for each such employer in
25        addition  to  the  experience  factor  (  a  i ) the
26        amount of his taxable payroll for the fiscal year ending on  the  computa-
27        tion  date,  and ( b  ii )  a  cumulative
28        total consisting of the sum of such employer's  taxable  payroll  for  the
29        fiscal  year  ending on the computation date and the corresponding taxable
30        payrolls for all other employers preceding him on such schedules.
31        ( 3  c )  The  cumulative  taxable  payroll  amounts
32        listed  on  the schedules provided for in paragraph ( 2  b
33        ) of this subsection shall be segregated into  groups  whose  limits
34        shall  be  those  set out in the table of schedules of taxable wage rates,
35        section 72-1350 (7) , Idaho Code , subsection (g)  .
36        Each of such groups shall be identified by the rate class number listed in
37        the  table  which  represents  the  percentage  limits of each group. Each
38        employer on the schedules shall be assigned  that      the
39          taxable  wage rate opposite his rate class for the tax schedule in
40        effect for the taxable year.
41        ( 4  d  )  (i)  If  the  grouping  of  rate  classes
42             requires  the  inclusion  of  exactly one-half (1/2) of an employer's
43             taxable payroll,  such   the  employer shall be
44             assigned the lower of the two (2) rates designated for  the  two  (2)
45             classes in which the halves of his taxable payroll are so required.
46             (ii)  If  the  group of rate classes requires the inclusion of a por-
47             tion other than exactly one-half (1/2) of an employer's taxable  pay-
48             roll,    such   the  employer shall be assigned
49             the rate designated for the class in which the greater  part  of  his
50             taxable payroll is so required.
51             (iii)  If  one    (1)   or more employers on the schedules
52             have experience factors  identical  to  that  of  the  last  employer
53             included  in  a  particular  rate  class, all such employers shall be
54             included in and assigned the taxable wage  rate  specified  for  such
55             class,   notwithstanding   the   provisions  of  paragraph  (  3


                                      57

 1              c ) of this subsection.
 2        ( 5  e )  If the taxable payroll amount or the expe-
 3        rience factor or both such taxable payroll amount and experience factor of
 4        any eligible or deficit employer listed on the schedules is changed, 
 5        such   the  employer shall be placed in that position  on
 6        the  schedules which he would have occupied had his taxable payroll amount
 7        and/or experience factor as changed been used in determining his  position
 8        in  the  first  instance, but such change shall not affect the position or
 9        rate classification of any other employer  listed  on  the  schedules  and
10        shall not affect the rate determination for previous years.
11        ( b  2 )  For experience rating purposes, all previ-
12    ously  accumulated benefit charges to covered employers' accounts, except cost
13    reimbursement employers,  pursuant to the applicable regulations prior to
14    the effective date of this subsection  shall not be  changed  except  as
15    provided by this  act   chapter . Benefits paid prior to
16    June  30  shall,  as  of  June 30 of each year preceding the calendar year for
17    which a covered employer's taxable wage rate is effective, be charged  to  the
18    account of the covered employer, except cost reimbursement employers, who paid
19    the  largest individual amount of base period wages as shown on the determina-
20    tion used as the basis for the payment of such benefits, except that no charge
21    shall be made to the account of such covered employer with respect to benefits
22    paid under the following situations:
23        ( 1  a )  If paid to a  worker  who  terminated  his
24        services  voluntarily  without  good  cause  attributable  to such covered
25        employer, or who had been discharged for  misconduct  in  connection  with
26        such services;
27        (  2  b )  If paid in accordance with the provisions
28        of section 72-1368( j  10 ), Idaho Code,  and  
29        such  determination of   the  decision to pay benefits is
30        subsequently reversed; or
31        ( 3  c )  For  that  portion  of  benefits  paid  to
32        multistate  claimants  pursuant  to  section  72-1344,  Idaho  Code, which
33        exceeds the amount of benefits that would have been charged had only Idaho
34        wages been used in paying the claim .  ; 
35        ( 4  d )  If paid in accordance  with  the  extended
36        benefit  program  triggered  by either national or state indicators .
37         ; 
38        ( 5  e )  If paid to a worker who continues to  per-
39        form services for such covered employer without a reduction in his custom-
40        ary  work  schedule, and who is eligible to receive benefits due to layoff
41        or a reduction in earnings from another employer.
42        ( c  3 )  A covered employer whose experience rating
43    account is chargeable, as prescribed by this section, is an  interested  party
44    as  defined  in section 72-1323, Idaho Code. An experience rating record shall
45    be maintained for each covered employer. The record shall be credited with all
46    contributions which the covered employer has paid for covered employment prior
47    to the cut - off date, pursuant to the provisions of this and  pre-
48    ceding  acts,  and  which covered employment occurred prior to the computation
49    date. The record shall also be charged with the amount of benefits paid  which
50    are  chargeable to the covered employer's account as provided by the appropri-
51    ate provisions of the  unemployment compensation law, and   employ-
52    ment  security  law  ,  and regulations thereunder in effect at the
53    time such benefits were paid. Nothing in this section shall  be  construed  to
54    grant  any  covered  employer  or  individual  in  his service a priority with
55    respect to any claim or right because of amounts paid by such covered employer


                                      58

 1    into the employment security fund.
 2        ( d  4 )  ( 1    a  ) Whenever
 3        any  individual or type of organization (whether or not a covered employer
 4        within the meaning of section 72-1315, Idaho Code) in any manner  succeeds
 5        to, or acquires all  / or substantially all, of the business of
 6        an  employer who at the time of acquisition was a covered employer, and in
 7        respect to whom the director finds that the business of the predecessor is
 8        continued solely by the successor, the separate  account  and  the  actual
 9        contribution,  benefit  and  taxable payroll experience of the predecessor
10        shall, upon the joint application of the  predecessor  and  the  successor
11        within  the  ninety  (90)  days after such acquisition and approval by the
12        director, be transferred to the successor  employer  for  the  purpose  of
13        determining  such successor's liability and taxable wage rate and any suc-
14        cessor who was not an employer on the date of acquisition shall as of such
15        date become a covered employer as defined in this  act    
16        chapter ; provided, however, that such ninety (90) day period may be
17        extended  at  the  discretion  of  the director, and provided further that
18        whenever a predecessor covered employer has a  deficit  experience  rating
19        account as of the last computation date such transfer, as herein provided,
20        shall be mandatory except where it is shown by substantial evidence ,
21          that  the management or ownership or both management and ownership
22        are not substantially the same for the successor as for  the  predecessor,
23        in which case the successor shall begin with the rate of a new employer.
24        ( 2  b )  Whenever any individual or type of organi-
25        zation,  whether  or  not a covered employer within the meaning of section
26        72-1315, Idaho Code, in any manner succeeds to, or acquires, part  of  the
27        business  of  an  employer  who  at  the time of acquisition was a covered
28        employer, and such portion of the business is continued by the  successor,
29        so  much  of the separate account and the actual contribution, benefit and
30        taxable payroll experience of the predecessor as is  attributable  to  the
31        portion  of the business transferred, as determined on a pro rata basis in
32        the same ratio that the wages of covered employees properly  allocable  to
33        the transferred portion of the business bears to the payroll of the prede-
34        cessor  in  the last four (4) completed calendar quarters immediately pre-
35        ceding the date of transfer, shall, upon the joint application of the pre-
36        decessor and the successor within ninety (90) days after such  acquisition
37        and approval by the director, be transferred to the successor employer for
38        the  purpose  of  determining  such successor's liability and taxable wage
39        rate and any successor who was not an employer on the date of  acquisition
40        shall  as  of such date become a covered employer as defined in this 
41        act   chapter ; provided, however, that such ninety  (90)
42        day period may be extended at the discretion of the director, and provided
43        further that whenever a predecessor covered employer has a deficit experi-
44        ence  rating  account  as  of the last computation date, such transfer, as
45        herein provided, shall be mandatory except where it is shown  by  substan-
46        tial  evidence ,  that the management or ownership or both man-
47        agement and ownership are not substantially the same for the successor  as
48        for the predecessor, in which case the successor shall begin with the rate
49        of  a  new employer. Whenever such mandatory transfer involves only a por-
50        tion of the experience rating record, and  the  predecessor  or  successor
51        employers  fail  within  ten (10) days after notice to supply the required
52        payroll information, the transfer shall be based on estimates of the allo-
53        cable payrolls.
54        ( 3   c  )  (i)  If  the  successor  was  a  covered
55             employer prior to the date of the acquisition of all or a part of the


                                      59

 1             predecessor's business his taxable wage rate, effective the first day
 2             of  the  calendar  quarter immediately following the date of acquisi-
 3             tion, shall be a newly computed rate based on the combined experience
 4             of the predecessor and successor, the  resulting  rate  remaining  in
 5             effect the balance of the rate year.
 6             (ii)  If  the  successor was not a covered employer prior to the date
 7             of the acquisition of all or a part of  the  predecessor's  business,
 8             his rate shall be the rate applicable to the predecessor with respect
 9             to  the  period immediately preceding the date of acquisition, but if
10             there were more than one  (1)  predecessor the successor's
11             rate shall be a newly computed rate based on the combined  experience
12             of the predecessors, becoming effective immediately after the date of
13             acquisition, and shall remain in effect the balance of the rate year.

14        SECTION  68.  That Section 72-1352, Idaho Code, be, and the same is hereby
15    amended to read as follows:

16        72-1352.  PERIOD, TERMINATION, AND ELECTION OF EMPLOYER COVERAGE. ( a
17     1 ) Except as otherwise  provided  in  subsection  (  c
18      3  )  of  this section ,  any employer who is or
19    becomes a covered employer within any calendar year shall be deemed  to  be  a
20    covered employer until his coverage is terminated.
21        (  b   2 )  The coverage of any covered employer may
22    be terminated if --  : 
23        ( 1  a )  As of the close of any  calendar  quarter,
24        it  is found that such covered employer had no individuals performing ser-
25        vices for him in covered employment, and that the continued  operation  of
26        his trade, profession, or business is not likely to result in his having a
27        quarterly  payroll  of  one thousand five hundred dollars ($1,500) or more
28        within the ensuing two (2) calendar quarters ,   ;  
29        or
30        (  2  b )  As of the close of a calendar year, it is
31        found that such covered employer did not pay or become liable to  pay  for
32        services  rendered  to  him  in  covered employment wages amounting to one
33        thousand five hundred dollars ($1,500) or more in any calendar quarter  of
34        such  year,  and that the continued operation of his trade, profession, or
35        business is not likely to create covered employment as defined in  section
36        72-1316, Idaho Code, within the ensuing calendar year.
37        (   3     c  )  Notwithstanding  the  provisions  in
38        subsection  s    (  b     2   )(   1
39           a   )  or  (  b    2  )(  2
40         b ) ,  the coverage of an employer may not be
41        terminated if he is or was subject under the  provisions  of  the  federal
42        unemployment tax act during the current or preceding calendar year.
43        (  c  3 )  Any employer for whom services  that
44      are performed in this state which  do not  constitute  cov-
45    ered  employment  ,    are performed,  may file with the
46    director a written  election   request   that  all  such
47    services   with respect to which payments are not required under an unem-
48    ployment compensation or insurance law of any other state or  of  the  federal
49    government, and which are performed by individuals for him in one or more dis-
50    tinct  establishments or places of business,  shall be deemed to consti-
51    tute covered employment .   for not less than two (2) calendar
52    years.  Upon  written  approval by the director , 
53     of such election,  such services shall  be  deemed  to  constitute


                                      60

 1    covered  employment  from    and  after    the  date stated in such
 2    approval  for not less than two (2) calendar years . Such  services
 3    shall  cease  to  be  covered employment as of January 1 st  of any
 4    calendar year subsequent to such two (2) calendar years,  if  not  later  than
 5    January 31 st  of such year either such employer has filed with the
 6    director  a  written notice of termination, or the director on his own motion,
 7    has given notice of termination of such coverage.
 8        ( d  4 )  Benefits payable  to  the  employees  thus
 9    covered will be payable  under   on  the same basis
10    ,  the  same  benefit  formula   and  eligibility  conditions
11     as prevail for   that  apply  to    all  other  covered
12    employees.

13        SECTION  69.  That Section 72-1353, Idaho Code, be, and the same is hereby
14    amended to read as follows:

15        72-1353.  ADMINISTRATIVE DETERMINATIONS OF COVERAGE.  (1)   The
16    director  may,  upon  his own motion or upon application of any employer, make
17    findings of fact and on the basis thereof , a determination with  respect
18    to     determine  whether such employer is a covered employer
19    and whether services performed for or in connection with the business of  such
20    employer  constitutes  covered  employment.    A    The 
21    determination shall become final  unless,  within  fourteen  (14)  days  after
22    notice,  an  appeal  is filed with the  employment security agency 
23     department  setting forth the grounds for such appeal.    For
24    purposes  of  this  section,  a     A  notice shall be deemed
25    served if delivered to the person being served or if mailed to his last  known
26    address; service by mail shall be deemed complete on the date of mailing. Pro-
27    ceedings  on  appeal shall be had in accordance with the provisions of section
28    72-1361, Idaho Code.
29         (2)  In making any determination with respect to  whether  the  ser-
30    vices  performed by a worker are performed in covered employment, the director
31    may, on the basis of the available evidence, determine that other workers per-
32    forming similar services for the employer are similarly situated with  respect
33    to the coverage of said services under the provision of this chapter, and that
34    such services constitute covered employment.
35        (3)  In  any  proceeding  to  determine  whether  an employer is a covered
36    employer or whether services are performed in covered employment, it shall  be
37    the  burden  of  the  employer  to  prove  that  the employer is not a covered
38    employer, that services were not performed  in  covered  employment,  or  that
39    workers  are not similarly situated with respect to the coverage of their ser-
40    vices. 

41        SECTION 70.  That Section 72-1354, Idaho Code, be, and the same is  hereby
42    amended to read as follows:

43        72-1354.  PENALTY  ON  UNPAID   CONTRIBUTIONS -- EFFECT OF FAILURE TO
44    PAY CONTRIBUTIONS   AMOUNTS . If   contributions  
45      any  amounts  due under this chapter  are not paid by any covered
46    employer on or before the date on which they are due ,     and
47    payable,    such    contributions   amounts  shall
48    bear penalty at the rate of two  per cent      percent  
49    (2%) or ten dollars ($10.00), whichever is the larger, for each month or frac-
50    tion  thereof  until  paid; provided, that in no case shall the penalty exceed
51    the actual amount s     of  contributions    due  .


                                      61

 1        and  payable.  The date of payment  of contributions
 2     shall be deemed the date of actual  receipt  by  the  director,  or  if
 3    mailed,  the  date  of  mailing.  Penalties collected pursuant to this section
 4    shall be paid into the state employment security administrative and reimburse-
 5    ment fund as established by section 72-1348, Idaho Code. At the discretion  of
 6    the  director ,   or his authorized representative,  the
 7    department may compromise the amount of penalty  collected  pursuant  to  this
 8    section if the employer shows he had good cause for failing to timely pay con-
 9    tributions.
10          Furthermore,  if  any  employer  shall  be in default under section
11    72-1349, Idaho Code, for a period of thirty (30) days, he may be enjoined,  by
12    the district court of any county in which such employer carries on any part of
13    his trade or occupation, from carrying on his business while such default con-
14    tinues. All proceedings in the courts are to be brought by the director in the
15    name of the state of Idaho. 

16        SECTION  71.  That Section 72-1355, Idaho Code, be, and the same is hereby
17    amended to read as follows:

18        72-1355.  COLLECTION BY SUIT. ( a  1 )  If  any
19    covered  employer becomes delinquent in any payment of contributions or penal-
20    ties thereon, the amount due may, in addition to or alternatively to any other
21    method of collection prescribed in this act, be collected by civil action com-
22    menced by the director in the name of the state, and the employer adjudged  in
23    default  shall  pay  the cost of such action. In bringing such actions for the
24    collection of unpaid contributions and penalties, the director shall have  all
25    the rights and remedies provided by the laws of this state for collection of a
26    debt  arising  upon contract.   Civil actions in the district court
27    may be brought to collect any amount due under the employment security law  of
28    this  state  or  any  other state or the federal government in the same manner
29    provided by law for collection of debt. Any person found liable for any amount
30    due under this chapter shall pay the costs of such action. 
31         (b)  Civil actions brought under this section to  collect  contribu-
32    tions  or  penalties thereon from a delinquent covered employer shall be heard
33    by any court of this state of competent jurisdiction at the earliest  possible
34    date  and  in the courts of original jurisdiction shall be entitled to prefer-
35    ence upon the calendar of such court over all other civil actions, and in  the
36    Supreme Court shall be entitled to preference upon its calendar over all other
37    civil  actions  except those involving workmen's compensation and appeals from
38    the commission in other cases involving this act.
39        (c)  The courts of this state shall in like manner  entertain  actions  to
40    collect  contributions  or  penalties  thereon for which liability has accrued
41    under the Unemployment Compensation or Unemployment Insurance Law of any other
42    state or of the federal government.  No  suit, including an  
43      proceeding  or    action  for a declaratory judgment, 
44    shall be maintained and no writ or process shall be issued by any court  
45    of  this  state    which has the purpose or effect of  restraining,
46     delaying , or forestalling  the collection of any  con-
47    tributions   amounts due  under this  act    
48    chapter    or substituting any collection procedure for those prescribed
49    in this  act   chapter .
50         (d)  All the costs necessarily incurred by the director in  bringing
51    any  such  action  shall be paid out of the employment security administration
52    fund. 
53         (2)  Any  person  who  fails  to  comply  with  section  72-1349  or


                                      62

 1    72-1349A, Idaho Code, for a period of thirty (30) days or more may be enjoined
 2    by  the  district  court of any county in which such person does business from
 3    carrying on his business while such delinquency continues.
 4        (3)  All proceedings in the courts are to be brought by  the  director  in
 5    the name of the state of Idaho. 

 6        SECTION 72.  That Section 72-1355A, Idaho Code, be, and the same is hereby
 7    amended to read as follows:

 8        72-1355A.  CONTRACTORS'  AND  PRINCIPALS'  LIABILITY FOR CONTRIBUTIONS. No
 9    covered employer which contracts with any contractor or subcontractor who is a
10    covered employer under the provisions of this  act     chapter
11      shall  make  final payment to such contractor or subcontractor for any
12    indebtedness due, until after the contractor or subcontractor has paid or  has
13    furnished a good and sufficient bond acceptable to the director for payment of
14    contributions  due,  or  to  become due, in respect to personal services which
15    have been performed by individuals for such contractor or subcontractor. Fail-
16    ure to comply with the provisions of this section shall  render  said  covered
17    employer  directly  liable for such contributions; and the director shall have
18    all of the remedies of collection against said covered employer under the pro-
19    visions of this  act   chapter  as though  the  services
20    in question were performed directly for said covered employer.

21        SECTION  73.  That Section 72-1356, Idaho Code, be, and the same is hereby
22    amended to read as follows:

23        72-1356.  PRIORITIES. Where the assets of an employer subject to the  pro-
24    visions  of  this   act   chapter  are distributed by an
25    order of court under  the  Idaho law, including  any  receivership,
26    assignment  for the benefit of creditors, adjudication of insolvency, composi-
27    tion, administration of estates of decedents,  or  similar  proceeding,  
28    contributions and penalties   amounts  then or thereafter due
29      under this chapter  must be paid in full prior to all other unse-
30    cured claims except taxes, claims arising under  the    Workmen's  
31      worker's      C    c  ompensation    A
32      a  ct, and claims for wages of not more than  two hun-
33    dred fifty dollars ( $250 )  to each claimant  earned  within
34    four  (4)  months  of  the commencement of proceedings. In the case of such an
35    employer's adjudication of bankruptcy, judicially confirmed extension proposal
36    or composition under the  B  b ankruptcy    Act  of
37    1898  as amended, contributions and penalties   law, amounts 
38    then or thereafter due  under this chapter  are  entitled  to  such
39    priority  as is now or may hereafter be granted  to be due a state 
40    under  section 64(b) of the Federal Bankruptcy  Law  as  amended.  (Title
41     11 U.S.C. , 104  507.  ) 

42        SECTION  74.  That Section 72-1357, Idaho Code, be, and the same is hereby
43    amended to read as follows:

44        72-1357.  ADJUSTMENTS AND REFUNDS. ( a  1 )  If  any
45    person  shall  make  application  for  a refund or credit of any amount s
46     paid  as contributions or payments in  lieu  of  contributions  or
47    penalties   under this  act   chapter,  the direc-
48    tor shall, upon determining that such amount  s    or  any  portion
49    thereof  was  erroneously  collected,  either  allow  credit therefor, without


                                      63

 1    interest, in connection with subsequent  contribution  payments, or
 2    shall refund from the  appropriate  fund  in which the errone-
 3    ous payment was deposited , without  interest,  the  amount  erroneously
 4    paid.
 5        ( b  2 )  No refund or credit shall be allowed 
 6    with  respect  to  a  payment  as  contributions or penalties  unless an
 7    application therefor  shall be   is  made on  or  before
 8    whichever of the following dates  shall be   is  later:
 9        (  1   a )  One (1) year from the date on which such
10        payment was made; or
11        ( 2  b )  Three (3) years from the last day  of  the
12        calendar  quarter  with respect to which such payment was made. For a like
13        cause and within the same period a  refund  may  be  so  made,  or  credit
14        allowed,  on the initiative of the director. Nothing in this  act, or
15        any part thereof,   chapter  shall be construed to autho-
16        rize any refund or credit of moneys due and payable under the law and reg-
17        ulations in effect at the time such moneys were paid.
18        ( c  3 )  In the  event  that  any  application  for
19    refund  or  credit is rejected in whole or in part, a written notice of rejec-
20    tion shall be forwarded to the applicant. Within fourteen (14) days after  the
21    mailing  of  such  notice  to  the  applicant's  last known address, or in the
22    absence of such mailing, within fourteen (14) days after delivery thereof, the
23    applicant may appeal to the director for a hearing with regard to  the  rejec-
24    tion,  setting  forth  the  grounds for such appeal. Proceedings on the appeal
25    shall be  had    in  accordance  with  the  provisions  of  section
26    72-1361, Idaho Code.

27        SECTION  75.  That Section 72-1358, Idaho Code, be, and the same is hereby
28    amended to read as follows:

29        72-1358.  DETERMINATION OF AMOUNTS DUE UPON FAILURE TO REPORT. If any cov-
30    ered employer fails to file a report when due  under  this    act  
31      chapter  ,  or if such report when filed is incorrect or insuffi-
32    cient, the director  or his authorized representative   may  ,
33    on  the  basis  of available information,  determine the amount of wages
34    paid  for   in   covered  employment  during  the  
35    period or  periods with respect to which the reports were or should have
36    been  made  and  the amount  of contributions  due  under this
37    chapter  from  such   the  employer .  
38     on the basis of such information as he may be able to obtain, the amount
39    of such contributions to be computed according to the rates prescribed in this
40    act  and  subject  to  penalties  as  provided by section 72-1354 of this act.
41     The director shall  then  give written notice of   such
42        the   determination to  such   the 
43    employer.  Such   The    determination  shall    be
44    deemed correct   become final  unless  such  
45    the   employer ,   shall,  within  fourteen (
46    14 )  days after the mailing of  such     the
47     notice to the employer's last known address, or, in the absence of such
48    mailing,  within    fourteen ( 14 )  days after delivery
49    thereof, file s  an  appeal  with  the    employment  security
50    agency    department . Proceedings on  such  
51    the  appeal shall be  had  in accordance with the  provisions
52    of section 72-1361 , Idaho Code .


                                      64

 1        SECTION  76.  That Section 72-1359, Idaho Code, be, and the same is hereby
 2    amended to read as follows:

 3        72-1359.  JEOPARDY ASSESSMENTS. If the director determines that  the  col-
 4    lection of any  contribution, payment in lieu of contribution, or penalty
 5      amounts  due from any covered employer under the provisions
 6    of this  act   chapter  will be jeopardized by delay, he
 7    may, whether or not the time prescribed by this  act   chapter
 8      or  any    regulations    rules  issued pursuant
 9    thereto for making reports and  paying such contributions or   pay-
10    ments    in  lieu  of  contributions  has expired, determine ,
11      upon   on  the  best   basis  of
12    available    information ,   obtainable  the 
13    amount of  wages paid by such employer for covered employment and  
14    in  accordance  with the taxable wage rates or provisions for payments in lieu
15    of contributions prescribed in this act, compute and  declare the amount
16     of contributions  or payments in lieu of contributions  due  
17    and      thereon  immediately payable, and shall give written
18    notice of such declaration to such employer. Within fourteen (14)  days  after
19    the  mailing of such declaration to the last known address of such employer or
20    in the absence of such mailing,  within  fourteen  (14)  days  after  delivery
21    thereof,  the  employer  may  appeal  to  the  employment security agency
22      department  setting forth grounds for such appeal. In  such
23    cases,  however,  the right of appeal shall be conditioned upon the
24    payment of  contributions or payments in lieu of contributions and penal-
25    ties      the amount  declared to be due or upon giving 
26    any  appropriate security to the director for the payment thereof.  Pro-
27    ceedings on such appeals shall be  had  in accordance with the pro-
28    visions of section 72-1361, Idaho Code.

29        SECTION  77.  That  Section  72-1360, Idaho Code, as amended by Section 6,
30    Chapter 205, Laws of 1997, be, and the same is hereby amended to read as  fol-
31    lows:

32        72-1360.  LIENS. (1) Upon the failure of any person to pay  contribu-
33    tions  or  penalties    any amount  when due  under this
34    chapter ,  or   including  the  failure  to  repay
35    overpayments  as  that  term  is  defined  in section 72-1369, Idaho Code, the
36    director  or his authorized  representative    may  file  with  the
37    office  of  the secretary of state, as provided in chapter 19, title 45, Idaho
38    Code,  a  notice of lien.
39        (2)  Upon delivery to the secretary of state, the notice of lien shall  be
40    filed and maintained in accordance with chapter 19, title 45, Idaho Code. When
41    such  notice  is  duly  filed,  the   all  amount s
42      of the overpayments, or contributions or  penalties  in  default,
43    together  with  any  interest   due  thereof,  shall  be
44      constitute  a lien  upon  the  entire  interest,  legal  or
45    equitable  ,  in  any  property  of such person ,  
46    liable for overpayments, or  contributions  or  penalties,  in  any  property,
47      real  or  personal, tangible or intangible, not exempt from execution,
48    situated in the state. Such lien may be enforced   against  any  real  or
49    personal  property  of  the person liable for overpayments or contributions or
50    penalties  by the director , his authorized representative,  
51    or by any sheriff of the various  counties in the same manner as a judgment of
52    the  district  court duly docketed and the amount ,  secured by the


                                      65

 1    lien  thus established,  shall bear interest at  the  rate  of  the
 2    state  statutory  legal  limit  on judgments. The foregoing remedy shall be in
 3    addition to all other remedies  against the person liable for overpayment
 4    of contributions or penalties   provided by law . The  amount
 5    of  interest collected pursuant to this section may be compromised at the dis-
 6    cretion of the director when such compromise is in the best  interest  of  the
 7    department.
 8        (3)  In  any  suit or action involving the title to real or personal prop-
 9    erty against which the state has a perfected lien, the state shall be  made  a
10    party to such suit or action.

11        SECTION  78.  That  Section  72-1360A,  Idaho Code, as added by Section 7,
12    Chapter 205, Laws of 1997, be, and the same is hereby amended to read as  fol-
13    lows:

14        72-1360A.  COLLECTION  OF LIEN AMOUNTS. (1) In addition to all other reme-
15    dies or actions provided by this  act     chapter  ,  it
16    shall  be  lawful for the director or  any of  his  authorized
17    representatives,  agent s or deputies,  to collect any  
18    amounts  secured by  liens  for overpayments of benefits or contri-
19    butions, together with such interest, penalties, and other additional  amounts
20    as  are permitted by law,   created pursuant to this chapter 
21    by  distraint   seizure  and sale , in  the  manner
22    provided  herein,    of the property of any person liable for such 
23    overpayments of benefits or contributions, interest, penalties, or other addi-
24    tional  amounts ,  who  neglects or refuses  
25    fails  to pay the same within thirty  (30)  days  from  the  mailing  of
26    notice and demand for payment thereof , and who has not appealed from the
27    assessment  or  determination of such contributions or overpayments, interest,
28    penalties and other additional amounts pursuant to the provisions of this  act
29    or  who  has not satisfied or discharged any lien authorized and created under
30    this act .
31        (2)  Property exempt from   distraint      seizure  
32    shall be the same property as is exempt from execution under the provisions of
33    chapter 6, title 11, Idaho Code.
34        (3)  In   case of neglect or refusal to repay benefit overpayments or
35    to pay contributions, or any other amounts due as hereinabove provided  
36      exercising  his  authority under subsection (1) of this section ,
37    the director  or his authorized representative  may levy, or ,
38     by  his  warrant ,   issued  under  his  own
39    hand,   authorize any of his  agents,  representatives, 
40    or  a sheriff , constable,  or deputy ,   to  levy
41    upon, seize and sell  all   any nonexempt  property
42    ,  except  such as is exempt by the preceding section,  belonging to any
43    person , for the enforcement of any lien authorized pursuant to this  act
44      liable for the amounts secured by the lien .
45        (4)  When  a warrant is issued by the department  of labor  for
46    the collection of any amount due pursuant to a lien  for benefit overpay-
47    ments or contributions, together with any  interest,  penalty,  or  additional
48    amount  due thereon, for the enforcement of any lien  authorized by this
49     act   chapter , it shall be directed to any  authorized
50     agent or  representative of the department, or to any sheriff
51    ,  constable,  or deputy, and any such warrant shall have the same force
52    and effect as a writ of execution. It may  and shall  be levied and
53    sale made pursuant to it in the same manner and with the same force and effect


                                      66

 1    as a levy and sale pursuant to a writ of execution.  The sheriff, consta-
 2    ble, or deputy shall receive u  U pon the completion  of  his
 3    services  pursuant  to  said  warrant,   and  the  director is
 4    authorized  to  pay  to  said    sheriff  ,  constable,    or
 5    deputy ,   shall receive  the same fees  ,  commis-
 6    sions    and  expenses  pursuant to said warrant  as are pro-
 7    vided by law for  similar  services    pursuant    
 8    related    to  a  writ  of  execution , provided however, that said
 9     . All such  fees  ,  commissions    and  expenses
10    shall  be an obligation of the person liable for  contributions or penal-
11    ties or overpayments   the amounts due  and  may  
12     shall  be collected from such person by virtue of the warrant. Any
13      such  warrant issued by the director shall contain, at a minimum,
14    the name  and address  of the liable  person;    his  address;
15      the  nature  of  the  underlying liability; the date the liability was
16    incurred; the amount of the liability secured by the lien; the amount  of  any
17    penalty, interest or other amount due under the lien; and the interest rate on
18    the lien.
19        (5)  Whenever  any property that is seized and sold by virtue of the fore-
20    going provisions is not sufficient to satisfy the claim of the state for which
21     distraint or  seizure is made,  the authorized agent or  rep-
22    resentative of the department, or the sheriff, constable, or deputy may there-
23    after, and as often as the same may be necessary, proceed to seize and sell in
24    like manner  any other property  liable   subject 
25    to  seizure    of  the person liable for the contributions, penalties, or
26    overpayments,   shall be seized and sold   until  the  amount
27    due from such person, together with all expenses, is fully paid.
28        (6)  All  persons  ,    are required ,  on demand of
29     an authorized agent or     a    representative  of  the
30    department,  or  a sheriff , constable,  or deputy 
31    about to distrain, or having distrained on any property or rights of property,
32        acting pursuant to this chapter,  to  exhibit 
33     produce  all    books  containing      documentary
34      evidence    or   and  statements relating to the
35     subject of distraint or the  property or rights    of  
36      in  the    property   liable to distraint for the amount due
37      subject to seizure .
38         (7)  The distraint provisions of this act shall not be deemed exclu-
39    sive but shall be in addition to any and all other existing remedies  provided
40    by law for the enforcement of this act. 

41        SECTION  79.  That Section 72-1361, Idaho Code, be, and the same is hereby
42    amended to read as follows:

43        72-1361.  APPEALS TO THE  EMPLOYMENT  SECURITY  AGENCY    
44    DEPARTMENT   AND TO THE COMMISSION. Upon appeal from a denial of a claim
45    for refund or credit, determination of amount s  due  upon  failure
46    to  report,  determination of rate of contribution, determination of coverage,
47     determination of chargeability,  or jeopardy determination  ,
48        as  provided  by  this  act, the interested employer shall have
49    opportunity for a fair hearing. The conduct of such hearings and   
50    the  director may transfer the appeal directly to an appeals examiner pursuant
51    to section 72-1368(6), Idaho Code, or he may issue a  redetermination  affirm-
52    ing, reversing or modifying the initial determination. A redetermination shall
53    become  final  unless,  within  fourteen (14) days after notice as provided in


                                      67

 1    section 72-1368(5), Idaho Code, an appeal is filed by an interested party with
 2    the department in accordance with the  department's  rules.  A    a
 3    ppeal  procedures shall be governed  exclusively  by the pro-
 4    visions of section 72-1368( f  6 ), ( g 
 5    7 ), ( h  8 ), ( i  9 )  and
 6    (  k  11 ), Idaho Code.  The director may make spe-
 7    cial redeterminations as provided in subsection 72-1368(d), Idaho Code. 
 8     The party appealing shall have the burden of proving each issue appealed
 9    by clear and convincing evidence.  The provisions of the Idaho  adminis-
10    trative  procedure  act, chapter 52, title 67, Idaho Code, regarding contested
11    cases and judicial review of contested cases are inapplicable  to  proceedings
12    involving  interested  employers  under  this    act   chapter
13    .

14        SECTION 80.  That Section 72-1362, Idaho Code, be, and the same is  hereby
15    amended to read as follows:

16        72-1362.  LIABILITY  OF  SUCCESSOR.  Any  person, whether or not a covered
17    employer, who acquires the organization, trade, or business or  a  substantial
18    part  of  the  assets thereof, from a covered employer, shall be liable, in an
19    amount not to exceed the reasonable value of the  organization,  trade,  busi-
20    ness,  or  assets  acquired, for any contributions or penalties due or accrued
21    and unpaid by such covered employer, and the amount of such  liability  shall,
22    in  addition, be a lien against the property or assets so acquired which shall
23    be prior to all other liens;  P    p  rovided,    T
24     t hat the  said  lien shall not be valid  as
25      against one who acquires from the said predecessor any interest in the
26    said property or assets in good faith, for value and  without  notice  of  the
27    lien.  The  director shall, upon written request therefor, and with permission
28    of the owner, furnish such prospective purchaser with a written  statement  of
29    the  amount  of  contributions  and penalties due or accrued and unpaid by the
30    said covered employer as of the date of such acquisition, and  the  amount  of
31    the  liability  of  the  successor  or the amount of the said lien shall in no
32    event exceed the liability disclosed by such statement. The foregoing remedies
33    shall be in addition to  all  other  existing  remedies  against  the  covered
34    employer or his successor.

35        SECTION  81.  That Section 72-1363, Idaho Code, be, and the same is hereby
36    repealed.

37        SECTION 82.  That Section 72-1364, Idaho Code, be, and the same is  hereby
38    amended to read as follows:

39        72-1364.  UNCOLLECTIBLE  ACCOUNTS.  (  a    1 )  The
40    director may  enter  into  agreements  of  compromise  with    an  
41    employer  s  with respect to  any contributions, penalties and
42    interest   amounts  due  where    under  this
43    chapter  when   it is determined by the director that  there exists
44    an inability on the part of  the employer  is unable  to make
45    full payment , and the employer  is  no  longer  operating  any  business
46    .
47        (  b   2 )   Contribution payments or penalties
48      Amounts  due , pursuant to the provisions of this act,
49      under this chapter, which are  uncollected three (3)  years
50    after  they  become  due,  may  be  charged as   deemed 


                                      68

 1    uncollectible by the director if  no assets belonging to the liable  per-
 2    son  and subject to attachment can be found and in the opinion of the director
 3     there is no likelihood of collection at a future date.

 4        SECTION 83.  That Section 72-1365, Idaho Code, be, and the same is  hereby
 5    amended to read as follows:

 6        72-1365.  PAYMENT  OF  BENEFITS. ( a  1 )  With
 7    respect to  unemployment  occurring  after  July  1,  1947,  b    B
 8    enefits  shall  be  paid  from the employment security fund to any unem-
 9    ployed individual who is eligible for benefits as provided by section 72-1366,
10    Idaho Code.
11        ( b  2 )  Periodically, the department of health and
12    welfare, bureau of child support enforcement, shall forward to the director  a
13    list  containing the full name and social security number of persons from whom
14    it is seeking child support. The director shall match  the  names  and  social
15    security  numbers  on  the  list  with its records of individuals eligible for
16     unemployment compensation   benefits , and shall notify
17    the department of health and welfare, bureau of child support enforcement,  of
18    the  address and amount of  compensation   benefits  due
19    each individual.
20        ( 1  a )  Voluntary withholding. The director  shall
21        deduct  and withhold from any  unemployment compensation  
22        benefits  payable to an individual that owes child  support  obliga-
23        tions  as  defined  under    subsection   paragraph 
24        ( 7  g )  of this subsection,  the amount
25        specified by the individual to the director to be  deducted  and  withheld
26        under  this  subsection, if  subsection   paragraph 
27        ( 2  b )  of this subsection    below  is
28        not applicable.
29        (  2    b  )  Involuntary  withholding. The director
30        shall withhold any  unemployment compensation     benefits
31          of  any  person  within  the limits established by section 11-207,
32        Idaho Code, upon notification and order by the department  of  health  and
33        welfare,  bureau  of  child support enforcement, to collect any delinquent
34        child support obligation which has been assigned on behalf of any individ-
35        ual to the department of health and welfare  under  sections  56-203A  and
36        56-203B,  Idaho  Code,  or a child support obligation which the department
37        seeks to collect pursuant to chapter 12, title 7, Idaho Code. The  set-off
38        or  withholding  of any  unemployment compensation   bene-
39        fits  of a claimant shall become final after  the  following  condi-
40        tions have been met:
41             (  A    i  )   The  child support payment to be
42             set-off or withheld is a  child  support  obligation  established  by
43             order as defined in section 7-1202, Idaho Code.
44             (  B    ii )  All liabilities owed by reason of
45             the provisions of section 72-1369, Idaho Code, have been collected by
46             the director.
47             ( C  iii ) Notice of the set-off or withholding
48             has been mailed by registered or certified mail from  the  department
49             of  health  and  welfare, bureau of child support enforcement, to the
50             claimant-obligor at the address listed on the claim.
51                  Within fourteen (14) days after such notice has been mailed (not
52             counting Saturday, Sunday, or state holidays as the  14th  day),  the
53             claimant-obligor  may file a protest in writing, requesting a hearing


                                      69

 1             before the department of health and welfare to determine his  liabil-
 2             ity  to  the obligee. The hearing, if requested, shall be held within
 3             thirty-five (35) days from the date of  the  initial  notice  to  the
 4             claimant-obligor  of  the proposed set-off. No issues at that hearing
 5             may be considered which have been litigated previously.  The  depart-
 6             ment  of  health  and  welfare  shall issue its findings and decision
 7             either at the hearing or within ten (10) days of the hearing by  mail
 8             to the claimant-obligor.
 9             (  D   iv )  In its decision, the department of
10             health and welfare may order the withholding and set-off of any  sub-
11             sequent    unemployment compensation payments   bene-
12             fits  which may be due the claimant-obligor until the debt  for
13             which  set-off  is sought and any additional debts which are incurred
14             by the claimant's failure to make additional periodic payments  based
15             upon the same court order are satisfied.
16        (  3    c  )  Any amount deducted and withheld under
17         subsections   paragraph   (  1    a
18        )  or ( 2  b )  of this subsection 
19        shall be paid by the director to the appropriate state or local child sup-
20        port enforcement agency.
21        ( 4  d )  Any amount  deducted  and  withheld  under
22          subsections      paragraph  ( 1  a
23        ) or ( 2  b )  of this subsection  
24        shall  for all purposes be treated as if it were paid to the individual as
25         unemployment compensation   benefits  and  paid  by
26        such  individual to the state or local child support enforcement agency in
27        satisfaction of the individual's child support obligations.
28        ( 5  e )  For purposes of   subsections  
29          paragraphs    ( 1  a ) through ( 4
30         d )  of this  subsection  ,  the  term  
31        "unemployment  compensation    "benefits " means any com-
32        pensation payable under  this    act      chapter  ,
33        including  amounts  payable by the director pursuant to an agreement under
34        any federal law providing for compensation, assistance, or allowances with
35        respect to unemployment.
36        ( 6  f )  This section applies only  if  appropriate
37        arrangements  have been made for reimbursement by the state or local child
38        support enforcement agency for the administrative costs  incurred  by  the
39        director  under  the  provisions of this section which are attributable to
40        child support obligations being enforced by the state or local child  sup-
41        port enforcement agency.
42        (  7    g  )  The term "child support obligation" is
43        defined for the purposes of these provisions as including only an  obliga-
44        tion  which  is being enforced pursuant to a plan described in section 454
45        of the social security act which has been approved  by  the  secretary  of
46        health  and human services under part D of title IV of the social security
47        act.
48        ( 8  h )  The term "state  or  local  child  support
49        enforcement  agency"  as used in these provisions means any agency of this
50        state or a political subdivision thereof  operating  pursuant  to  a  plan
51        described  in    subsection      paragraph  ( 7
52         g )  of this subsection .
53        ( c  3 )  Benefits shall be paid only to the  extent
54    that moneys are available for such payments in the employment security fund.
55        (  d    4 )   All b  B enefits


                                      70

 1    shall  be  paid    at  such  times    not  less   frequently   than
 2    biweekly  ,  and  in such manner as the director shall by rules prescribe
 3    .
 4        ( e  5 )  Upon request, the department of health and
 5    welfare, bureau of child support enforcement, shall make the procedures estab-
 6    lished in this section for collecting child support available to county prose-
 7    cuting attorneys. The provisions of this subsection apply only if  appropriate
 8    arrangements  have  been  made for reimbursement by the requesting prosecuting
 9    attorney for the administrative  costs  incurred  by  the  bureau,  which  are
10    attributable to the request.
11        (  f   6 )  ( 1  a )  An indi-
12        vidual filing a new claim for  unemployment compensation  
13        benefits  shall, at the time of filing such claim, be advised that:
14             ( A  i )    Unemployment  compensation  is
15                 Benefits  are   subject to federal and state tax
16             and requirements exist pertaining to estimated tax payments;
17             ( B  ii )  The individual  may  elect  to  have
18             federal  income tax deducted and withheld from the individual's 
19             payment of unemployment compensation   benefits   at
20             the amount specified in the federal internal revenue code;
21             ( C  iii ) The individual shall be permitted to
22             change a previously elected withholding status once during each bene-
23             fit year.
24        (  2   b )  Amounts deducted and withheld from 
25        unemployment compensation   benefits  shall remain in the
26        unemployment fund until transferred to the taxing authority as  a  payment
27        of income tax.
28        (  3   c )  The director shall follow all procedures
29        specified by the United States department of labor and the federal  inter-
30        nal  revenue service pertaining to the deducting and withholding of income
31        tax.
32        ( 4  d )  Amounts shall not be deducted and withheld
33        under this subsection until the following deductions are made and withheld
34        in the following order:
35             ( A  i )   First, amounts owed for overpayments
36             of   unemployment  compensation      benefits  
37             deducted  and withheld pursuant to the provisions of section 72-1369,
38             Idaho Code;
39             ( B  ii )  Second, amounts owed for child  sup-
40             port  obligations deducted and withheld pursuant to the provisions of
41             subsection ( b  2 ) of this section.
42        ( 5  e )  At the director's  sole    dis-
43        cretion,  the  director may promulgate rules allowing individuals to elect
44        to have state income tax deducted and withheld from the individual's  pay-
45        ment of  unemployment compensation   benefits .

46        SECTION  84.  That Section 72-1366, Idaho Code, be, and the same is hereby
47    amended to read as follows:

48        72-1366.  PERSONAL ELIGIBILITY CONDITIONS. The personal eligibility condi-
49    tions of a benefit claimant are that --  : 
50         (a)  In accordance with the provisions of this act, and  such  rules
51    consistent therewith, as the director may prescribe-- 
52        (1)   He   The claimant  shall have made a claim for
53    benefits and provided all necessary information pertinent to eligibility.


                                      71

 1        (2)    He    The claimant  shall have registered for
 2    work and thereafter reported  at an employment   to a job ser-
 3    vice  office or other agency in a manner prescribed by the director.
 4        ( b  3 )   In some calendar quarter within  his
 5    base  period  he     The claimant  shall have met the minimum
 6    wage requirements in his base period as provided  in  section  72-1367,  Idaho
 7    Code.
 8          (c)  Claimant's  unemployment is not due to having voluntarily left
 9    work to marry, or to perform the customary duties of maintaining a  household,
10    or  to  leave the locale to live with a spouse. The provisions of this subsec-
11    tion shall not apply after a change in conditions whereby claimant has  become
12    the main support of self or immediate family. 
13        (  d  4 )  During the whole of any week with respect
14    to which he claims benefits or credit to  his  waiting  period  ,  
15      he      the  claimant  was able to work, available for
16    suitable work, and seeking work; provided, however, that no claimant shall  be
17    considered  ineligible  in any week of unemployment  for failure to
18    comply with the provisions of this subsection if : (i)  such  fail-
19    ure is due to an illness or disability which occurs after he has filed a claim
20      and  registered for work  and  after the beginning of 
21     during  such illness or disability,    no      the
22    claimant does not refuse or miss  suitable work  has been available
23    for  the  claimant  that would have provided wages greater than one-half
24    (1/2) of the claimant's weekly benefit amount;   and,  provided  further,
25    that  no   or (ii) the  claimant ,   shall be
26    deemed to be unavailable for the whole of the week who,  because of com-
27    pelling personal circumstance, is required to be absent from his normal  
28    labor    market area, provided that such absence does not exceed a minor
29    portion of the  work week.
30        ( e  5 )    His      The  claimant's
31      unemployment is not due to the fact that he left his employment volun-
32    tarily without good cause connected with his employment, or that he  was  dis-
33    charged for misconduct in connection with his employment.
34        (  f    6  )    His   The claimant's
35     unemployment is not due to his failure without good cause to apply  for
36    available  suitable  work  or to accept suitable work when offered to him. The
37    longer a claimant has been unemployed, the more willing he  must  be  to  seek
38      other    types  of work  other than in his ordinary trade or
39    occupation  and  to  accept work at a lower rate of pay.
40        ( g  7 )  In determining  for the  purposes  of
41    this act,  whether or not work is suitable for an individual, the degree
42    of risk involved to his health, safety, morals,  his  physical fit-
43    ness,  experience,  training,  past earnings, length of unemployment and pros-
44    pects for obtaining local employment in his customary occupation, the distance
45    of the work from his residence, and other pertinent factors shall  be  consid-
46    ered.  No  employment shall , in any event,  be deemed suitable and
47    benefits shall not be denied to any otherwise eligible individual for refusing
48    to accept new work or to hold himself available for work under any of the fol-
49    lowing conditions:
50        ( 1  a )  If the vacancy of the position offered  is
51        due directly to a strike, lockout, or other labor dispute;
52        (  2   b )  If the wages, hours, or other conditions
53        of the work offered are  substantially less favorable to the individ-
54        ual than   below  those prevailing for  similar  work  in
55        the locality of the work offered;


                                      72

 1        (  3  c )  If, as a condition of being employed, the
 2        individual would be required to join a company union or to resign from  or
 3        refrain from joining any bona fide labor organization.
 4        (  h    8  )  No  claimant who is otherwise eligible
 5    shall be denied benefits for any week due to an inability to comply  with  the
 6    requirements  contained  in  subsections  (  d   4 ) and
 7    ( f  6 ) of this section, if:
 8        ( 1  a )  The claimant is a participant in a program
 9        sponsored by title III of the job training partnership act and  attends  a
10        job training course under that program; or
11        ( 2  b )  The claimant attends a job training course
12        authorized  pursuant  to  the provisions of section 236(a)(1) of the trade
13        act of 1974 ;  or  the North American free trade agreement
14        implementation act. 
15        ( 3  c )  The claimant lacks skills  to  compete  in
16        the  labor  market  and attends a job training course with the approval of
17        the director. The director may approve job training courses that meet  the
18        following criteria:
19             (  a   i )   The purpose of the job training is
20             to teach the claimant skills that will enhance the claimant's  oppor-
21             tunities for employment; and
22             (  b    ii )  The job training can be completed
23             within one (1) year, except that this requirement may be waived  pur-
24             suant  to  rules  and regulations  that the director 
25             shall   may  prescribe.
26        This subsection shall apply only if the claimant submits with  each  claim
27    report a written certification from the training facility that the claimant is
28    attending  and  satisfactorily  completing  the job training course, or demon-
29    strates good cause for failure to attend the job training.
30        ( i  9 )  No  claimant  who  is  otherwise  eligible
31    shall  be  denied  benefits under subsection ( e  5 ) of
32    this section for leaving employment to attend job training pursuant to subsec-
33    tion ( h  8 ) of this section, provided that the  claim-
34    ant  obtained the employment after enrollment in or during scheduled breaks in
35    the job training course, or that the employment was not suitable. For purposes
36    of this subsection, the term "suitable employment" means work  of  a  substan-
37    tially  equal or higher skill level than the individual's past employment, and
38    wages for such work are not less than eighty  percent  (80%)  of  the  average
39    weekly wage in the individual's past employment.
40        (  j  10 ) A  benefit  claimant shall not
41    be eligible to receive benefits for any week with respect to which it is found
42    that his unemployment is due to a labor dispute; provided, that  this  subsec-
43    tion shall not apply if it is shown that --  : 
44        (  1  a )   He   The claimant 
45        is not participating, financing, aiding, abetting, or directly  interested
46        in the labor dispute; and
47        (  2  b )   He   The claimant 
48        does not belong to a grade or class of workers  of which, immediately
49        before the commencement of the labor dispute, there were   with
50         members employed at the premises at which the labor dispute occurs,
51         any of whom   who  are participating in or directly
52        interested in the dispute.
53        ( k  11 ) A  benefit  claimant shall  not
54    be  entitled to benefits for any week with respect to which or a part of which
55    he has received or is seeking   unemployment    benefits  under  an


                                      73

 1    unemployment  compensation or  insurance law of another state or of
 2    the  United  States;  provided,  that  if the appropriate agency of such other
 3    state or of the United States shall finally determine that he is not  entitled
 4    to such unemployment compensation or insurance benefits, he shall not by 
 5    the    provisions of this subsection be denied benefits. For purposes of
 6    this section, a law of the United States providing any payments  of  any  type
 7    and in any amounts for periods of unemployment due to involuntary unemployment
 8    shall  be considered an unemployment  compensation   insurance
 9     law of the United States.
10        ( l 12 ) A  benefit   claimant  shall  not  be
11    entitled  to  benefits  for a period of fifty-two (52) weeks  if it
12    is determined that he has wilfully made a false statement  or representa-
13    tion  or wilfully failed to report a material fact in  order  to  obtain
14      said   benefits .   for a   The 
15    period of  fifty-two (52) weeks from the date of said     dis-
16    qualification shall commence the week the  determination  is issued
17    .  Said   The  claimant shall also be  liable
18    to      ineligible  for  waiting week credit and shall  repay
19     to the fund  any sums received for a week in  which  the  claimant
20    made  a false statement , misrepresentation,  or failed to report a
21    material fact.
22        ( m  13 ) A  benefit  claimant shall  not
23    be entitled to benefits if his principal occupation is self-employment.
24        (  n    14 ) A  benefit  claimant who has
25    been found ineligible for benefits under the provisions of  subsection  s
26    (c),    (  e  5 ), ( f  6 ),
27    ( g  7 ) or ( i  9 ) of this  sec-
28    tion  may   shall  reestablish his eligibility by having
29    obtained  bona  fide work and received wages therefor in an amount of at least
30    twelve (12) times his weekly benefit amount.
31        ( o  15 ) Benefits based on  service  in  employment
32    defined  in  sections  72-1349A  ,  72-1349B,   and 72-1352( c
33     3 ), Idaho Code, shall be payable in the same amount, on the
34    same terms and subject to the same conditions  as    compensation  
35      benefits    payable on the basis of other service subject to this
36    act.
37        ( 1  a )  If the services performed during  one-half
38        (1/2)  or  more of any contract period by an individual for an educational
39        institution as defined in section 72-1322B, Idaho Code, are in an instruc-
40        tional,  research,  or  principal   administrative   capacity,   all   the
41        service  s    of such individual  shall be deemed to
42        be in such capacity.
43        ( 2  b )  If the services performed during less than
44        one-half (1/2) of any contract period by  an  individual  for    such
45          an  educational  institution are in an instructional, research, or
46        principal administrative capacity, none of the service  of such indi-
47        vidual  shall be deemed to be in such capacity.
48        ( 3  c )  As used in this section, "contract period"
49        means the entire period for which the individual contracts to perform ser-
50        vices, pursuant to the terms of the contract.
51        ( p  16 ) No  individual    claimant
52      is  eligible  to  receive benefits in two (2) successive benefit years
53    unless ,   subsequent to   after  the  begin-
54    ning of the first  of said  benefit year s  during which
55    he received benefits ,  he performed service and earned  remu-


                                      74

 1    neration  for  such  service  in  an amount equal to not less than 
 2    five and one-half   six  ( 5 1/2   6  )
 3    times  his   the  weekly benefit amount established dur-
 4    ing the first benefit year.
 5        (  q  17 ) ( 1  a )  With
 6        respect to weeks of unemployment beginning  after  December  31,  1977,  b
 7          B  enefits based on wages earned for services performed
 8        in an instructional, research, or principal administrative capacity for an
 9        educational institution shall not be paid for  any  week  of  unemployment
10        commencing during the period between two (2) successive academic years, or
11        during  a similar period between two (2) terms, whether or not successive,
12        or  during  a  period  of  paid  sabbatical  leave  provided  for  in  the
13        individual's contract, to any individual  if such  individual  
14          who  performs such services in the first  of such 
15        academic year s  (or term s ) and  if there  is
16            has   a contract  or a reasonable assurance that
17        such individual will   to  perform services in  any  such
18        capacity  for  any  educational  institution  in  the second  of such
19         academic year s  or term s    ,  or  has
20        been  given  reasonable  assurance  that  such  a contract will be offered
21        .
22        ( 2  b )   With respect to weeks  of  unemploy-
23        ment  beginning  after  December  31,  1977, b  B enefits
24        based on wages earned for services performed in any other capacity for  an
25        educational  institution  shall not be paid to any individual for any week
26        which commences during a period between two (2) successive school years or
27        terms if  such   the  individual performs such  ser-
28        vices  in  the  first    of  such  school year s  or
29        term s , and there is a contract or reasonable  assurance  that
30          such    the  individual will perform such services
31        in the second  of such  school  year  s    or  
32        terms,  except  that if compensation is   term. If benefits are
33         denied to any individual under this  subparagraph  and    such
34           the  individual was not offered an opportunity to per-
35        form such services for the educational institution for the second  of
36        such  academic year s  or term s, such  ,
37        the  individual shall be entitled to a retroactive payment of  
38        compensation      benefits    for each week for which the
39        individual filed a timely claim for  compensation    bene-
40        fits    and  for  which  compensation was   benefits
41        were  denied solely by reason of this clause.
42        ( 3  c )  With respect to any services described  in
43        paragraphs  (  1    a  )  and ( 2  b
44        ) of this subsection, benefits shall not be paid nor "waiting  week"
45        credit  given  to an individual for wages earned for services for any week
46        which commences during an established and  customary  vacation  period  or
47        holiday recess if  such   the  individual  per-
48        forms  such   performed the  services in the period imme-
49        diately before  such   the  vacation period or holi-
50        day recess, and there is a reasonable assurance    that  such  
51         the  individual will perform such services in the period imme-
52        diately following such vacation period or holiday recess.
53        (  4  d )  With respect to any services described in
54        paragraphs ( 1  a  )  and  (  2    b
55        )  of this subsection, benefits shall not be payable on the basis of


                                      75

 1        services in any  such  capacities  as  specified  in
 2        paragraphs  ( 1  a ), ( 2  b )
 3        and ( 3  c ) of this subsection  to  any  individual
 4        who  performed  such  services  in an educational institution while in the
 5        employ of an educational service agency. For purposes  of  this  paragraph
 6        the term "educational service agency" means a  governmental agency or
 7          governmental  entity which is established and operated exclusively
 8        for the purpose of providing such services to one  (1)  or more
 9        educational institutions.
10        ( r  18 ) Benefits shall not  be    paid  after
11    December  31,  1977,  based  on      payable on the basis of 
12    services ,   which  substantially    all  of  which
13      consist  of  participating in sports or athletic events or training or
14    preparing to  so  participate, for any week which commences  during
15    the  period  between  two (2) successive sport seasons (or similar periods) if
16     such   the  individual performed  such  ser-
17    vices in the first  of such    season  s    (or  similar
18    period  s  )  and  there  is a reasonable assurance that  such
19      the  individual will perform such services in the later  of
20    such season s  (or similar period s ).
21        (  s    19 ) ( 1  a ) Benefits
22        shall not be payable on the basis of services performed by an alien unless
23         such   the  alien  is an individual who 
24        was lawfully admitted for permanent residence at the  time  such  services
25        were  performed, was lawfully present for purposes of performing such ser-
26        vices, or was permanently residing in the United States under color of law
27        at the time  such   the    services  were  performed
28        (including  an  alien  who  was lawfully present in the United States as a
29        result of the application of the provisions of sections  207  and  208  or
30        section  212(d)(5) of the  I  i mmigration and 
31        N  n ationality  A  a ct).
32        ( 2  b )  Any data or information required of  indi-
33        viduals  applying for benefits to determine  whether benefits are not
34        payable to them because of their alien  status      eligibility
35        under  this  subsection  shall be uniformly required from all appli-
36        cants for benefits.
37        ( 3  c )   In the case of an  individual  whose
38        application  for  benefits  would  otherwise be approved, no determination
39        that benefits to such individual are not payable because of his alien sta-
40        tus shall be made except upon   A  decision  to  deny  benefits
41        under  this subsection must be based on  a preponderance of the evi-
42        dence.
43        ( t  20 ) An  unemployed  individual  shall  be
44    eligible  to  receive benefits with respect to any week only if the individual
45    participates in reemployment services, such as job search assistance services,
46    if the  individual  who  has been determined to be likely  to
47    exhaust  regular  benefits  and  to  need  reemployment services pursuant to a
48    profiling system established by the director , unless the director deter-
49    mines that   must participate in those reemployment services unless
50    :
51        ( 1  a )  The individual  has  completed  such  ser-
52        vices; or
53        (  2    b  )  There  is  justifiable cause , as
54        determined by the director,  for the claimant's failure to  partici-
55        pate in such services.


                                      76

 1        SECTION  85.  That Section 72-1367, Idaho Code, be, and the same is hereby
 2    amended to read as follows:

 3        72-1367.  BENEFIT FORMULA. ( a  1 ) To  be  eligible
 4    an  individual shall have  at least eleven hundred forty-four dollars and
 5    one cent ($1,144.01) in total   the minimum  qualifying  amount  of
 6      wages    paid for services performed for covered employers in the
 7    calendar quarter within his base period in  which  such  wages  were  highest,
 8      in covered employment in at least one (1) calendar quarter of his
 9    base period,  and shall have total base period wages of at least one and
10    one-quarter (1 1/4) times his high quarter wages.  The minimum qualifying
11    amount  of wages shall be determined each July 1 and shall equal fifty percent
12    (50%) of the product of the state minimum wage, as defined by section 44-1502,
13    Idaho Code, multiplied by five hundred twenty (520) hours, rounded to the low-
14    est multiple of twenty-six (26). 
15        ( b  2 )  The weekly benefit  amount  shall  be  one
16    twenty-sixth  (1/26)  of highest quarter wages except that it shall not exceed
17    the applicable maximum weekly  benefit  amount.  The  maximum  weekly  benefit
18    amount shall be established as follows:
19        (  1   a )   The director, by regulations as he
20        may prescribe, p  P rior to June 30 of each  year,  
21        the  director  shall compute the average weekly wage paid by covered
22        employers for the preceding calendar  year.  The  maximum  weekly  benefit
23        amount   for benefit years beginning July 1, 1973, and on each July 1
24        thereafter,  shall be sixty   per  cent      percent
25          (60%)  of  the state average weekly wage paid by covered employers
26        for the preceding calendar year.   Provided,  however,  and  notwith-
27        standing any provisions to the contrary, the maximum weekly benefit amount
28        until  June  30, 1984, shall remain the same as the maximum weekly benefit
29        amount which became effective on July 1, 1982, and until July  1  of  such
30        year  when  the  trust  fund  has not been borrowing for two (2) preceding
31        quarters. 
32        ( c  3 )  Any  otherwise  eligible  indi-
33    vidual shall be entitled during any benefit year to a total amount of benefits
34    equal  to  his weekly benefit amount times the number of full weeks of benefit
35    entitlement appearing in the following table  based  on    the
36    line  which includes  his ratio of total base period earnings to highest
37    quarter base period earnings.
38          Ratio of Total Base Period                                   Full Weeks
39         Earnings to Highest Quarter                                   of Benefit
40                 Earnings                                             Entitlement
41          At Least       Less Than
42            1.25           1.50                                            10
43            1.50           1.75                                            12
44            1.75           2.00                                            14
45            2.00           2.25                                            16
46            2.25           2.50                                            18
47            2.50           2.75                                            20
48            2.75           3.00                                            22
49            3.00           3.25                                            24
50            3.25            --                                             26
51        ( d  4 )  If  in any  compensable  week  
52    the  total  wages  payable to  such   an  individual for
53    less than full-time work performed in  such    a    week
54      claimed   exceed one-half (1/2) of his weekly benefit amount, the


                                      77

 1     excess   amount of wages that exceed one-half  (1/2)  of  the
 2    weekly  benefit  amount  shall be deducted from  his weekly benefit
 3    amount   the benefits payable to the claimant .
 4        ( e  5 )   Any amount of unemployment compensa-
 5    tion   Benefits  payable to an y  individual 
 6    for any week, if not an even dollar amount,  shall be   rounded  to  the
 7    next lower full dollar amount.

 8        SECTION 86.  That Section 72-1367A, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        72-1367A.  EXTENDED    UNEMPLOYMENT COMPENSATION  BENEFITS. The
11     state of Idaho hereby adopts an  extended  unemployment  com-
12    pensation    benefits program  to be governed by and interpreted by
13      shall be administered pursuant to  the provisions  of  this
14    section.
15        (  a    1  )  Definitions.  As used in this section,
16    unless the context clearly requires otherwise:
17        ( 1  a )  "Extended benefit period" means  a  period
18        which : 
19             (  A   i )   Begins with the third week after a
20             week for which there is a state "on" indicator; and
21             ( B  ii )  Ends with either  of  the  following
22             weeks, whichever occurs later:
23                  1.  The  third  week  after  the first week for which there is a
24                  state "off" indicator; or
25                  2.  The thirteenth consecutive week of such period;
26                  provided, that no extended benefit period may begin by reason of
27                  a state "on" indicator before the fourteenth week following  the
28                  end  of a prior extended benefit period which was in effect with
29                  respect to this state.
30        ( 2  b )   For weeks beginning after  September
31        26,  1982,  t    T  here is a  " state  '
32         " on '  "   indicator  "  for
33        this state  for a ny  week if the director determines, in
34        accordance  with  the regulations of the United States secretary of labor,
35        that for the period consisting of such week and the immediately  preceding
36        twelve  (12) weeks, the rate of insured unemployment ,   (
37        not seasonally adjusted )  , under this act :
38             ( A  i  )   Equaled  or  exceeded  one  hundred
39             twenty  percent  (120%)  of  the average of such rates for the corre-
40             sponding thirteen (13) week period ending in each  of  the  preceding
41             two  (2)  calendar  years   and equaled or exceeded five percent
42             (5%) ;  and   or 
43             ( B   ii  )  Equaled  or  exceeded    five
44                six  percent ( 5  6 %)
45             .  ; and
46             (C)  Provided that with respect to benefits for weeks of unemployment
47             beginning after September 26,  1982,  the  determination  of  whether
48             there  has  been  a state "on" or "off" indicator beginning or ending
49             any extended benefit period shall be made under this subsection as if
50             it did not contain paragraph (A), and the  figure  "5"  contained  in
51             paragraph  (B)  were "6" except that, notwithstanding any such provi-
52             sion of this subsection, any week for which there would otherwise  be
53             a state "on" indicator shall continue to be such a week and shall not


                                      78

 1             be  determined  to be a week for which there is a state "off" indica-
 2             tor. 
 3        ( 3  c )  There is a   "  state    '
 4          "  off '  "  indicator " for
 5        this state  for a ny  week if the director determines, in
 6        accordance with the regulations of the United States secretary  of  labor,
 7        that  for the period consisting of such week and the immediately preceding
 8        twelve (12) weeks, the rate of insured unemployment ,    (
 9        not seasonally adjusted )  , under this act :
10             ( A  i )   Was  less than six percent (6%)
11             and  was    less  than one hundred twenty percent (120%) of the
12             average of such rates for the corresponding thirteen (13) week period
13             ending in each of the preceding two (2) calendar years; or
14             ( B  ii )  Was less than five percent (5%).
15        ( 4  d )  "Rate of insured unemployment,"  for  pur-
16        poses   of  paragraphs  (  2    b  )  and  (  3
17         c ) of this  sub section, means the  percent-
18        age derived by dividing:
19             (  A   i )   The average weekly number of indi-
20             viduals filing claims for regular  compensation  in  this  state  for
21             weeks  of  unemployment  with respect to   for 
22             the most recent thirteen (13) consecutive week period, as  determined
23             by the director on the basis of his reports to the United States sec-
24             retary of labor; by
25             (  B  ii )  The average monthly employment cov-
26             ered under this  act   chapter  for  the  first
27             four  (4) of the most recent six (6) completed calendar quarters end-
28             ing before the end of such thirteen (13) week period.
29        ( 5  e )  "Regular benefits" mean s  ben-
30        efits payable to an individual under this  act     chapter
31         or under any other state law (including benefits payable to federal
32        civilian  employees  and to ex-servicemen pursuant to 5 U.S.C. chapter 85)
33        other than extended benefits.
34        ( 6  f )  "Extended  benefits"  mean  s  
35        benefits  (including benefits payable to federal civilian employees and to
36        ex-servicemen  pursuant to 5 U.S.C. chapter 85) payable to  an  individual
37        under the provisions of this section for weeks of unemployment in his eli-
38        gibility period.
39        (  7    g  )  "Eligibility  period" of an individual
40        means the period consisting of the weeks in his benefit year  which  begin
41        in  an  extended  benefit period and, if his benefit year ends within such
42        extended benefit period, any weeks thereafter which begin in such period.
43        ( 8  h )  "Exhaustee" means an individual who,  with
44        respect to any week of unemployment in his eligibility period:
45             (  A    i )   Has received, prior to such week,
46             all of the regular benefits that were available  to  him  under  this
47              act   chapter  or any regular or extended ben-
48             efits  available to him under any other state law (including benefits
49             payable to federal civilian  employees  and  ex-servicemen   under  5
50             U.S.C.  chapter  85)  in  his current benefit year that includes such
51             week; provided that for the purposes of this subparagraph,  an  indi-
52             vidual  shall  be deemed to have received all of the regular benefits
53             that were available to him although as a result of a  pending  appeal
54             with  respect to wages that were not considered in the original mone-
55             tary determination in his benefit year, he may subsequently be deter-


                                      79

 1             mined to be entitled to added regular benefits; or
 2             ( B  ii  )  His  benefit  year  having  expired
 3             prior  to  such  week,  has  no or insufficient wages on the basis of
 4             which he could establish a new benefit year that would  include  such
 5             week; and
 6             (  C   iii ) Has no right to unemployment bene-
 7             fits or allowances , as the case may be,  under the  rail-
 8             road  unemployment  insurance  act  , the trade expansion act of
 9             1962, the automotive products trade act of 1965  and such other
10             federal laws as are specified in regulations  issued  by  the  United
11             States  secretary  of  labor; and has not received and is not seeking
12             unemployment  benefits  under  the  unemployment    compensation
13               insurance  law   of  the  Virgin  Islands  or
14               of  Canada; but if he is seeking such benefits and the appro-
15             priate agency  finally  determines that he is not entitled
16             to benefits under such law he is considered an exhaustee.   Pro-
17             vided,  however, that this provision shall not be applicable to indi-
18             viduals seeking benefits under the unemployment compensation laws  of
19             the Virgin Islands on the day after the day on which the secretary of
20             labor  approves  an unemployment compensation law submitted to him by
21             the Virgin Islands for  approval  under  the  provisions  of  section
22             3304(a) of the Internal Revenue Code of 1954. 
23        (  9  i )  "State law" means the unemployment insur-
24        ance law of any state ,  approved by the United  States  secre-
25        tary of labor under section 3304 of the Internal Revenue Code of 1954.
26        (  10    j )  For purposes of this section only, the
27        term "suitable work" means, with respect to any individual, any work which
28        is within such individual's capabilities; except that, if  the  individual
29        furnishes  evidence  satisfactory to the department that such individual's
30        prospects for obtaining work in his customary occupation within a  reason-
31        ably short period are good, the determination of whether any work is suit-
32        able work with respect to such individual shall be made in accordance with
33         the  applicable state law.
34        ( b  2 )  Effect of state law provisions relating to
35    regular  benefits on claims for, and the payment of, extended benefits. Except
36    when the result would be inconsistent with the other provisions of  this  sec-
37    tion,   as provided in the regulations of the director,  the provi-
38    sions of this  act   chapter  which apply to claims for,
39    or the payment of, regular benefits shall apply to claims for, and the payment
40    of, extended benefits.
41        ( c  3 )  Eligibility requirements for extended ben-
42    efits. An individual shall be  eligible  to  receive  extended  benefits  with
43    respect  to  any  week  of  unemployment in his eligibility period only if the
44    director finds that with respect to such week:
45        ( 1  a )   He   The claimant  
46        is  an  "exhaustee"  as  defined  in  subsection  (  a   1
47        )( 8  h ) of this section;
48        ( 2  b )   He   The claimant  
49        has  satisfied  the  requirements  of  this  act   chapter
50         for the receipt of regular benefits that are applicable to individ-
51        uals claiming extended benefits, including not being subject to a disqual-
52        ification for the receipt of benefits;
53        ( 3  c )   He   The claimant  
54        has  had  twenty  (20) weeks of full-time employment for covered employers
55        during his base period, or earned wages for services performed for covered


                                      80

 1        employers during his base period  equal  to  at  least  one  and  one-half
 2        (1 1/2)  times  his  high  quarter wages, or has earned wages for services
 3        performed for covered employers during his base period equal to  at  least
 4        forty (40) times his most recent weekly benefit amount.
 5        (  4    d )( A  i )   Notwith-
 6             standing the provisions of this section, payment  of  extended  
 7             compensation   benefits  under this  act 
 8              chapter  shall not be made to any individual for any week
 9             of unemployment in his eligibility period:
10                  1.  During  which he fails to accept any offer of suitable work,
11                  as defined in subsection ( a  1 )( 10
12                   j ) of this section, or fails to apply for any
13                  suitable work to which he was referred; or
14                  2.  During which he fails to actively engage in seeking work.
15             ( B  ii )  If any individual is ineligible  for
16             extended  compensation   benefits  for any week
17             by reason of a failure described in subsection ( c  3
18             )(   4      d  )(  A    i
19             )1 .  or (  c    3  )(  4
20              d )( A  i )2 .  of
21             this  section, the individual shall be ineligible to receive extended
22              compensation   benefits  for  any  week  which
23             begins during a period which:
24                  1.  Begins  with the week following the week in which such fail-
25                  ure occurs; and
26                  2.  Does not end until such individual has been employed  during
27                  at  least  four (4) weeks which begin after such failure and the
28                  total of the remuneration earned by the individual for being  so
29                  employed  is not less than the product of four (4) multiplied by
30                  the individual's average weekly benefit amount.
31             ( C  iii ) Extended   compensation  
32               benefits   shall not be denied under subsection ( c
33               3  )(  4     d   )(   A
34               i )1 .  of this section to any individ-
35             ual for any week by reason of a failure to accept  an  offer  of,  or
36             apply for, suitable work:
37                  1.  If  the  gross  average  weekly remuneration payable to such
38                  individual for the position does not exceed the sum of:
39                        a.  (A)   The  individual's  average
40                       weekly  benefit  amount, as determined for purposes of sub-
41                       section (b)(1)(C)  of  section  202  of  the  federal-state
42                       extended  unemployment  compensation  act  of 1970, for his
43                       benefit year; plus
44                        b.  (B)   The  amount,  if  any,  of
45                       supplemental unemployment compensation benefits, as defined
46                       in  section  501 (c)(17)(D) of the Internal Revenue Code of
47                       1954, payable to such individual for such week.
48                  2.  If the position was not offered to such individual in  writ-
49                  ing  or  was  not listed with the  state employment service
50                    department ;
51                  3.  If such failure would not result in a denial of    com-
52                  pensation     benefits  under the provisions of
53                   the applicable state law   this chapter  
54                  to the extent that such provisions are not inconsistent with the
55                  provisions  of  subsections ( a  1 )(


                                      81

 1                  10    j  )   and   (   c      3
 2                  )(  4    d  )( D  iv
 3                  ) of this section; or
 4                  4.  If the position pays wages less than the higher of:
 5                        a.  (A)   The minimum wage  provided
 6                       by section 6(a)(1) of the fair labor standards act of 1938,
 7                       without regard to any exemption; or
 8                         b.    (B)   Any applicable state or
 9                       local minimum wage.
10             ( D  iv )  For purposes of this  paragraph,  an
11             individual  shall be treated as actively engaged in seeking work dur-
12             ing any week if:
13                  1.  The individual has engaged in  a  systematic  and  sustained
14                  effort to obtain work during such week; and
15                  2.  The individual provides tangible evidence to the  state
16                  agency      department   that he has engaged in
17                  such an effort during such week.
18             ( E  v )   For purposes of this  section  only,
19             the  department  shall  refer applicants for extended benefits to any
20             suitable work to which paragraphs 1 . , 2  .  ,
21             3  .    ,    and  4 .  of subsection
22             ( c  3 )( 4  d )(  C
23              iii ) of this section would not apply.
24        (  d   4 ) ( 1  a )  Except as
25        provided in paragraph ( 2  b )    below  
26          of  this  subsection , payment of extended  compensation
27          benefits  shall not be made to any individual  for  any
28        week if:
29             (  A   i )   Extended  compensation 
30              benefits  would, but for this subsection have  been  pay-
31             able for such week pursuant to an interstate claim filed in any state
32             under the interstate benefit payment plan; and
33             ( B  ii )  An extended benefit period is not in
34             effect for such week in such state.
35        (  2   b )  Paragraph ( 1  a )
36        of this subsection shall not apply with respect to the first two (2) weeks
37        for which extended  compensation is   benefits are  
38        payable,  determined  without  regard  to  this subsection, pursuant to an
39        interstate claim filed under the interstate benefit payment  plan  to  the
40        individual  from  the  extended    compensation   benefits
41         account established for the benefit year.
42        ( 3  c )  Section 3304  (a)(9)(A)  of  the  Internal
43        Revenue  Code  of 1954 shall not apply to any denial of  compensation
44          benefits  required under this subsection.
45        ( e  5 )  Weekly extended benefit amount. The weekly
46    extended benefit amount payable to an individual for a week of total unemploy-
47    ment in his eligibility period shall be an amount equal to the weekly  benefit
48    amount payable to him during his applicable benefit year.
49        (  f   6 )  Total extended benefit amount. The total
50    extended benefit amount payable to an eligible individual with respect to  his
51    applicable benefit year shall be the least of the following amounts:
52        ( 1  a )  Fifty percent (50%) of the total amount of
53        regular  benefits  which  were  payable to him under this  act 
54         chapter  in his applicable benefit year;
55        ( 2  b )  Thirteen (13)  times  his  weekly  benefit


                                      82

 1        amount  which was payable to him under this  act   chapter
 2         for a week of total unemployment in the applicable benefit year;
 3        ( 3  c )  Provided that  the  amount  so  determined
 4        shall  be  reduced by the total amount of extended benefits paid, or being
 5        paid, to the individual  under the provisions of this section as such
 6        law existed prior to the effective date of this act,  for  weeks  of
 7        extended  unemployment  in the individual's benefit year which began prior
 8        to the effective date of the federal-state extended benefit  period  which
 9        is  current  in  the week for which the individual first claims such bene-
10        fits.
11        ( 4  d )  Notwithstanding any  other  provisions  of
12        this  chapter,  if  the  benefit  year  of  any  individual ends within an
13        extended benefit period, the remaining balance of extended  benefits  that
14        such individual would, but for the provisions of this section, be entitled
15        to receive in that extended benefit period, with respect to weeks of unem-
16        ployment  beginning  after  the end of the benefit year, shall be reduced,
17        but not below zero, by the product of the number of weeks  for  which  the
18        individual  received  any  amounts as trade readjustment allowances within
19        that benefit year, multiplied by the individual's  weekly  benefit  amount
20        for extended benefits.
21        (  g   7 ) ( 1  a )  Beginning
22        and termination of extended benefit period. Whenever an  extended  benefit
23        period  is  to  become effective in this state as a result of a state "on"
24        indicator, or an extended benefit period is to be terminated in this state
25        as a result of a state "off" indicator, the director shall make  a  n
26        appropriate  public announcement ;  . 
27        ( 2  b )  Computations required by the provisions of
28        subsection ( a  1 )( 4  d ) of
29        this section shall be made by the director, in accordance with regulations
30        prescribed by the United States secretary of labor.
31        (  h    8 )   Irrespective of   Not-
32    withstanding  any  of the  other provisions of this  act
33      chapter , none of the benefits paid pursuant to the  provi-
34    sions  of  this section shall be charged to an employer's account for purposes
35    of experience rating.
36        ( i  9 )  Whenever a program of  unemployment  
37    compensation     benefits  becomes available that is financed
38    entirely by the federal government, and such program will not  allow  payments
39    to individuals who are entitled to extended benefits pursuant to this section,
40    the  governor  may, by executive order, trigger off an extended benefit period
41    as defined in subsection ( a  1 )( 1   a
42    )  of  this section in order to provide payment of such federal benefits
43    to individuals who have exhausted their right to regular benefits.   When  the
44    federal  benefits are exhausted, or if the director determines that payment of
45    extended benefits would be more economically  advantageous  to  the  state  of
46    Idaho, the governor shall, by executive order, trigger extended benefits on if
47    the  criteria of subsection ( a  1 )( 2 
48    b ) of this section are otherwise met.
49        ( j  10 )   For weeks of unemployment beginning
50    after March 6, 1993, and  u    U  ntil  conformity  with  the
51    federal-state  extended  unemployment  compensation  act  of  1970  ,  as
52    amended,    requires  otherwise, the eligibility requirements in subsec-
53    tions ( a  1 )( 10  j ) and (
54    c  3 )( 4  d ) of this section are sus-
55    pended. Except where inconsistent with the provisions  of  this  section,  the


                                      83

 1    eligibility  requirements of section 72-1366, Idaho Code, applicable to claims
 2    for regular benefits shall apply in lieu of the suspended provisions.

 3        SECTION 87.  That Section 72-1368, Idaho Code, be, and the same is  hereby
 4    amended to read as follows:

 5        72-1368.  CLAIMS   FOR   BENEFITS   AND   APPELLATE  PROCEDURE.  (  a
 6     1 ) Claims for benefits shall be  made  in  accordance  with
 7    such rules as the director may prescribe.
 8        (  b  2 )  (a)   Each employer shall post
 9        and maintain in places readily accessible to individuals  performing  ser-
10        vices  for  him printed statements concerning benefit rights , claims
11        for benefits and such other matters  relating  to  the  administration  of
12          under  this  act as the director may by rules pre-
13        scribe.  Each  employer  shall  supply  to such individuals copies of such
14        printed statements or other materials relating to claims for benefits when
15        and as the director may by rules prescribe. Such  printed  statements  and
16        other  materials   chapter which  shall be  supplied
17          provided    by  the    director  to  each  covered
18        employer    department  without cost to the  covered
19         employer.
20         (b)  On and after July 1, 1999, an employer who receives  a  depart-
21        ment request for separation information after a claim has been filed shall
22        provide  the  information  to the department within ten (10) days from the
23        date the request was mailed. The time limit provided  in  this  subsection
24        may  be  extended by the department at its discretion, upon the request of
25        an employer. Notwithstanding any  other  provision  of  this  chapter,  an
26        employer  who fails, without good cause, to provide the requested informa-
27        tion within the time provided in this subsection or  as  extended  by  the
28        department  shall  be  precluded from contesting any determinations on the
29        claim, including chargeability determinations,  or  participating  in  any
30        hearing  on  the claim as an interested party. If an employer asserts that
31        there was good cause for such failure or that  the  requested  information
32        was  provided  by the due date, the employer must so notify the department
33        in writing within fourteen (14) days after notice, as provided in  subsec-
34        tion (5) of this section, of the initial determination on the claim. After
35        affording  the  employer  a  reasonable  opportunity  for a hearing on the
36        issue, an appeals examiner shall decide whether  the  employer  has  shown
37        that  the  requested information was provided by the due date or that good
38        cause existed for the failure to provide the requested information by  the
39        due  date.  The  decision of the appeals examiner shall be final and shall
40        not be subject to  appeal.  If  the  appeals  examiner  decides  that  the
41        requested separation information was provided to the department by the due
42        date  or that good cause existed for the employer's failure to timely pro-
43        vide the information, the employer shall have  fourteen  (14)  days  after
44        notice of the decision to contest any determinations that have been issued
45        on the claim. 
46        (  c   3 )  A representative of the department 
47    of employment, appointed by the director and  hereinafter referred to as
48    a claims examiner ,  shall examine  promptly    a  claim
49    filed  pursuant  to  subsection ( a  1 ) of this section
50    and, on the basis of the facts found by him, shall determine whether   or
51    not    the  claimant is eligible for benefits and, if eligible, the date
52     of commencement of  his benefit  year    begins  ,  the
53    weekly  benefit  amount  ,   payable,  the total benefit


                                      84

 1    amount ,   payable, his   the    base  period
 2    wages, and  his   the  base period covered employers. In
 3    the  event of a denial  or a finding by the claims examiner that a claim-
 4    ant is ineligible for   of  benefits, the determination shall
 5    include the reasons for the ineligibility.  At any time b    B
 6    efore  the determination becomes final or  a request for redetermi-
 7    nation is received   an appeal is filed ,  the  claims  exam-
 8    iner, on his own motion, may  withdraw the determination and  issue
 9    a  revised  determination.  The  determination  or revised determination shall
10    become final unless, within fourteen (14) days after notice,  as  provided  in
11    subsection ( e  5 ) of this section,  a request for
12    redetermination    an appeal  is filed  by an interested
13    party  with the department .   of employment. 
14        ( d  4 )   A request for redetermination may be
15    filed by any interested party and shall be filed in accordance with such rules
16    as may be prescribed by the director.  A  redetermination  upon  such  request
17    shall  be  promptly made by a claims examiner and, on the basis of facts found
18    by him, shall include a statement as to whether or not  the  determination  is
19    affirmed,  reversed or modified, and if modified, to what extent, as well as a
20    statement showing the reasoning upon which the  redetermination  is  based  if
21    adverse  to  the  claimant  requesting  it;  or,  upon such request and before
22    notices of the redetermination have been served, the director may, on his  own
23    motion,  transfer the request for redetermination directly to an appeals exam-
24    iner in which event such request shall be deemed to constitute an  appeal,  as
25    of  the  date  of the request, from the determination. A redetermination shall
26    become final unless, within fourteen (14) days after notice,  as  provided  in
27    subsection (e) of this section, an appeal is filed by an interested party with
28    the  department  of  employment  in  accordance with such rules as may be pre-
29    scribed by the director.  The director may make a  special  redetermina-
30    tion  whenever  he  finds that a departmental error has occurred in connection
31    with a determination, or that additional wages of the claimant or other  facts
32    pertinent  to such determination have become available or have been newly dis-
33    covered, or that benefits have been allowed or denied or the amount  of  bene-
34    fits  fixed  on the basis of nondisclosure or misrepresentation of fact. 
35    Such   The  special redetermination must be made  within  one
36    (1)  year  from  the date of the original determination, except that a special
37    redetermination involving a finding that benefits have been allowed or  denied
38    or the amount of benefits fixed on the basis of nondisclosures or misrepresen-
39    tations of fact may be made within two (2) years from the date of the original
40    determination.  Subject  to the same limitations and for the same reasons, the
41    director may make a special redetermination in any case  in  which  the  final
42    decision  has been rendered by an appeals examiner, the commission, or a court
43    and may apply to the appeal tribunal which rendered  such  final  decision  to
44    issue  a  revised  decision. In the event that an appeal involving an original
45    determination is pending as of the date a special redetermination  is  issued,
46      such   the  appeal, unless withdrawn, shall be treated
47    as an appeal from  such   the  special redetermination.
48        ( e  5 )  All interested parties  as defined in
49    section 72-1323, Idaho Code,  shall be entitled  to  prompt  service  of
50    notice  of  determinations    and redeterminations. The claimant shall be
51    served with notice of all determinations  and  redeterminations,  but  in  the
52    event  that  a  claimant files more than one (1) claim arising out of the same
53    unemployment, the last employer need not be served with notice  of  more  than
54    the  initial determination and redetermination unless he specifically requests
55    service of additional notices. For purposes of this section,  a    


                                      85

 1    and decisions. A  notice shall be deemed served if delivered to the per-
 2    son being served or if mailed to his last known address; service by mail shall
 3    be deemed complete on the date of mailing.
 4        ( f  6 )  To hear and decide appeals from determina-
 5    tions  and redeterminations ,  the director shall appoint  one
 6    or more  appeals examiners. Unless the appeal is withdrawn, the  appeals
 7    examiner shall affirm, modify, set aside or reverse the determination or rede-
 8    termination involved, after affording the interested parties reasonable oppor-
 9    tunity  for  a fair hearing, or may refer a matter back to the claims examiner
10    for further action.  The appeals examiner shall notify the interested  parties
11    of his decision by serving notice in the same manner as provided in subsection
12    (  e    5 ) of this section.  Such   The
13     decision shall set forth  the  findings of fact    upon
14    which  the decision is based together with a statement showing how the appeals
15    examiner applied the employment security law to such findings of fact in order
16    to reach his   and  conclusion  s  of  law  .  The
17    appeals  examiner  may, either upon application for rehearing by an interested
18    party or on his own motion,  proceed to   rehear,  affirm,  modify,
19    set  aside  or  reverse any prior decision on the basis of the evidence previ-
20    ously submitted  in such case  or on the basis of  additional  evi-
21    dence;  provided, that such application or motion be made within ten (10) days
22    after the date of service of  such   the    decision.  A
23     full and  complete record shall be kept of all proceedings in con-
24    nection  with  an appealed claim. All testimony at any hearing  before an
25    appeals examiner  shall be recorded.  If  a  claim  for  review  of  the
26    appeals  examiner's decision is filed with the commission, the testimony shall
27    be transcribed if ordered by  the  commission.  Witnesses  subpoenaed  by  the
28    appeals examiner shall be allowed fees at a rate prescribed  in the rules
29    of   by  the director.  Such fees shall be deemed a part
30    of the expenses of administering this act.  If any interested party to a
31    hearing  formally requests the appeals examiner to issue a subpoena for a wit-
32    ness whose evidence is deemed necessary, the appeals examiner  shall  promptly
33    issue  the  subpoena,  unless  such  request is determined to be unreasonable.
34    Unless an interested party shall within fourteen (14) days  after  service  of
35    the  decision  of  the  appeals  examiner file with the commission a claim for
36    review or unless an application or motion is made  for  a  rehearing  of  such
37    decision, the decision of the appeals examiner shall become final.
38        ( g  7 )  The commission shall decide all claims for
39    review  filed by any interested party in accordance with its own rules of pro-
40    cedure not in conflict herewith. The record before the commission  shall  con-
41    sist  of  the  record  of  proceedings  before the appeals examiner, unless it
42    appears to the commission that the  interests  of  justice  require  that  the
43    interested parties be permitted to present additional evidence. In that event,
44    the commission may, in its sole discretion, conduct a hearing  to receive
45    additional  evidence   or may  refer   remand  the
46    matter back to the appeals examiner for an additional hearing and decision. On
47    the basis of the record of proceedings before the appeals examiner as well  as
48     any  additional evidence, if allowed, the commission shall affirm,
49    reverse,  modify,  set aside or revise the decision of the appeals examiner or
50    may refer the matter back to the appeals examiner for further proceedings. The
51    commission shall file its decision and shall  promptly  serve  notice  of  its
52    decision  to  all  interested  parties.  A decision of the commission shall be
53    final and conclusive as to all matters adjudicated by the commission upon fil-
54    ing the decision in the office of the commission; provided, within twenty (20)
55    days from the date of filing the decision, any party may move for reconsidera-


                                      86

 1    tion of the decision or the commission may rehear or reconsider  its  decision
 2    on its own initiative .  , and in any such event t 
 3    T  he  decision  shall be final upon denial of a motion for rehearing or
 4    reconsideration or the filing of the decision on reconsideration.
 5        ( h  8 )  No person acting on behalf of the director
 6    or any member of the commission shall participate in any case in which he  has
 7    a direct or indirect personal interest.
 8        ( i  9 )  An appeal may be made to the Supreme Court
 9      by  such  parties  from  such  decisions and orders of
10    the commission  and  within   such      the  
11    times  and  in   such   the  manner  as  pre-
12    scribed by rule of the Supreme Court.
13        ( j  10 ) ( 1    a  ) Benefits
14        shall  be paid promptly in accordance with  a determination, redeter-
15        mination, appeals examiner   any  decision  or  com-
16        mission  findings  allowing  such  benefit s, 
17         rights,  regardless of:
18             ( a  i )   The pendency of a  time  period  for
19               requesting a redetermination,  filing an appeal or peti-
20             tioning for commission review ,  ;  or
21             (  b    ii  )    The   p      P
22             endency  of   a request for determination,   an
23              appeal ,  or petition for review.
24        ( 2  b )  Such payments shall not be withheld  until
25        a  subsequent  redetermination,  appeals examiner decision
26        ,  or commission  findings   decision    modi-
27        fies  or  reverses the previous decision, in which event benefits shall be
28        paid or denied in accordance with such decision.
29        ( k  11 ) ( 1  a ) Any  right,
30        fact, or matter in issue, directly based upon or necessarily involved in a
31        determination,  redetermination, decision of the appeals examiner or deci-
32        sion of the commission which has become final, shall be conclusive for all
33        the purposes of this  act   chapter  as between  the
34        interested  parties  who had notice of such determination, redetermination
35        or decision. Subject to appeal proceedings  and  judicial  review  by  the
36        Supreme  Court as set forth in this section, any determination, redetermi-
37        nation or decision as to rights to benefits shall be  conclusive  for  all
38        purposes  of  this   act   chapter  and shall not be
39        subject to collateral attack irrespective of notice.
40        ( 2  b )  No finding of fact or  conclusion  of  law
41        contained  in  a decision or determination rendered pursuant to this 
42        act   chapter  by an  appeals  examiner,  the  industrial
43        commission,  a court, or any other person authorized to make such determi-
44        nations shall have preclusive effect in any other  action  or  proceeding,
45        except  proceedings that are brought (i) pursuant to this  act 
46         chapter , (ii) to  collect  unemployment  insurance  contribu-
47        tions,  (iii)  to recover overpayments of unemployment insurance benefits,
48        or (iv) to challenge the constitutionality of provisions of this  act
49          chapter  or administrative proceedings under this 
50        act   chapter .
51        ( l  12 ) The provisions of the Idaho administrative
52    procedure act, chapter 52, title 67, Idaho Code, regarding contested cases and
53    judicial review of contested cases are inapplicable to  proceedings  involving
54    claimants under the provisions of this  act   chapter .


                                      87

 1        SECTION  88.  That  Section  72-1369, Idaho Code, as amended by Section 8,
 2    Chapter 205, Laws of 1997, be, and the same is hereby amended to read as  fol-
 3    lows:

 4        72-1369.  OVERPAYMENTS, COLLECTION AND WAIVER. (1) Any person who received
 5    benefits  to  which he was not entitled under the provisions of this  act
 6      chapter  or under an    unemployment  compensation  or
 7      unemployment  insurance  law of any state or of the federal government
 8    shall be liable to repay  said   the  benefits and 
 9    said   the  benefits shall, for the purpose of this  act
10      chapter , be considered to be overpayments.    Said  o
11     O verpayments shall be repaid as follows:
12        (a)  Any  overpayment  which  has  not  been repaid may, in addition to or
13        alternatively to any other method of collection prescribed in  this  chap-
14        ter,  including  the  creation  of  a lien as provided by section 72-1360,
15        Idaho Code, be collected with interest thereon at the  statutory  rate  by
16        civil  action  brought in the name of the state of Idaho. In bringing such
17        civil actions for the collection of overpayments, the director shall  have
18        all  the  rights  and remedies provided by the laws of this state, and any
19        person  found or  adjudged liable in such civil action for  any
20        overpayments  shall  pay the cost s  of such action. Such civil
21        actions may be commenced within the time periods specified in this section
22        without regard to any other statute of limitations.
23        (b)  Collection of overpayments.
24             (i)   Overpayments, other than those resulting from  a  false  state-
25             ment,  misrepresentation, or failure to report a material fact by the
26             claimant, which have not been repaid or collected, may, at  the  dis-
27             cretion  of  the  director    or  his authorized representative,
28              be deducted from any future benefits  payable  to    said
29                 the  claimant under the provisions of this 
30             act   chapter ;
31             (ii)  Overpayments resulting from a false  statement,  misrepresenta-
32             tion,  or  concealment  of a material fact by the claimant which have
33             not been repaid or collected shall be deducted from any benefits pay-
34             able at any time in the future, without regard to any statute of lim-
35             itation and such overpayments not recovered within  eight  (8)  years
36             from  the  date  of the final determination establishing liability to
37             repay may be deemed uncollectible;
38             (iii) A civil action, filed pursuant to subsection (1) of  this  sec-
39             tion,  to collect overpayments resulting from a false statement, mis-
40             representation, or concealment of a material  fact  by  the  claimant
41             must  be  commenced within eight (8) years from the date of the final
42             determination establishing liability to repay;
43        (c)  Overpayments, other than those resulting from a false statement, mis-
44        representation or failure to report a material fact, not recovered  within
45        five  (5) years from the date of the final determination establishing lia-
46        bility to repay shall be deemed uncollectible, and a  civil  action  filed
47        pursuant  to  subsection (1) of this section, to collect such overpayments
48        must be commenced within the same five (5) year time period;
49        (d)  The director  or his authorized representative  may  waive
50        the  requirement  to  repay   such   an  overpayment
51        described in subsection (3) of this section if  such   the
52        benefit  payments were made solely as a result of  department  error
53        or  inadvertence, and made to a claimant who had no way of knowing that he
54        was receiving benefits to which he was not entitled or  if  such  payments


                                      88

 1        were made solely as a result of an employer misreporting wages earned in a
 2        claimant's  base  period,  and made to a claimant who could not reasonably
 3        have been expected to recognize an error in the wages reported.
 4        (e)  Any judgment obtained pursuant to this section shall, upon compliance
 5        with the requirements of chapter 19, title 45, Idaho Code, become  a  lien
 6        of the same type, duration, and priority as if it were created pursuant to
 7        section 72-1360, Idaho Code.
 8        (2)  Neither the director nor any of his agents or employees shall be lia-
 9    ble for benefits paid to persons not entitled to the same under the provisions
10    of this  act   chapter  if it appears that such payments
11    have  been  made  in good faith and that ordinary care and diligence have been
12    used in the determination of the validity of the claim or claims  under  which
13    such benefits have been paid.

14        SECTION  89.  That Section 72-1370, Idaho Code, be, and the same is hereby
15    amended to read as follows:

16        72-1370.  DISTRIBUTION OF BENEFIT PAYMENTS UPON DEATH. Whenever a  benefit
17    claimant dies, having completed a compensable period prior to his death, bene-
18    fits  due   such   the  deceased claimant at the time of
19    death ,  shall be payable ,  without administration,  to
20    the  surviving spouse, if any ,  ; and   or, 
21    if there be no surviving spouse ,   then  to the depend-
22    ent child or children.  If no spouse or child survives, benefits due such
23    deceased claimant shall be payable in accordance with  regulations  prescribed
24    by the director. 

25        SECTION  90.  That Section 72-1371, Idaho Code, be, and the same is hereby
26    amended to read as follows:

27        72-1371.  MISREPRESENTATION TO OBTAIN BENEFITS OR TO PREVENT  PAYMENTS  OR
28    TO  EVADE  CONTRIBUTION  LIABILITY -- CRIMINAL PENALTY. ( a  1
29    ) The making of a false statement  or  representation    when
30    the maker knows the statement to be false, or the wilful failure to disclose a
31    material  fact  in  order  to  obtain or increase any benefit or other payment
32    under this  act   chapter  or under an    unemploy-
33    ment  compensation or  unemployment insurance law of any state or of the
34    federal government, either for the benefit of  the  maker  or  for  any  other
35    person ,  is hereby declared to be a felony.
36        (  b   2 )  The making by an employer or any officer
37    or agent of an employer or any other person of a false statement or  represen-
38    tation  when  the  maker knows  such   the  statement or
39    representation to be false, or the wil l ful failure to disclose  a
40    material  fact  to prevent or reduce the payment of benefits to any individual
41    entitled thereto or to avoid becoming or remaining a covered  employer  or  to
42    avoid  or  reduce  any  contribution  or other payment required from a covered
43    employer  from   under   this    act    
44    chapter    or  under any  unemployment compensation or  unem-
45    ployment insurance law of any state or  of  the  federal  government,  or  the
46    wil  l  ful  failure or refusal to make such contributions or other
47    payment or to furnish any such  reports  required  under  this    act  as
48    required  for  the  administration of this act,   chapter  is
49    hereby declared to be a misdemeanor.

50        SECTION 91.  That Section 72-1373, Idaho Code, be, and the same is  hereby


                                      89

 1    amended to read as follows:

 2        72-1373.  VIOLATION  OF  THIS  LAW  OR  RULES  AND REGULATIONS 
 3    THEREUNDER. Any person who shall wil l fully violate any  provision
 4    of this  act   chapter  or any order ,  
 5    or   rule , or regulation  thereunder, the violation of which
 6    is made unlawful or the observance of which is required  under  the  terms  of
 7    this  act   chapter , and for which a penalty is neither
 8    prescribed  in this  act   chapter , nor provided by any
 9    other applicable statute, shall be  punished by a fine of not  less  than
10    twenty dollars ($20) nor more than two hundred dollars ($200), or by imprison-
11    ment  for  not longer than sixty (60) days, or by both such fine and imprison-
12    ment   guilty of a misdemeanor , and each day such  violation
13    continues shall be deemed to be a separate misdemeanor.

14        SECTION  92.  That Section 72-1374, Idaho Code, be, and the same is hereby
15    amended to read as follows:

16        72-1374.  UNAUTHORIZED DISCLOSURE OF INFORMATION. If any employee or  mem-
17    ber  of  the  commission    or the director  or any employee of the
18     director   department , in violation of the  provisions
19    of  chapter  3,  title  9,  Idaho  Code,  makes  any disclosure of information
20    obtained from any employer or individual in the administration of  this  
21    act,  or if any person who has obtained any list of applicants for work, or of
22    claimants or recipients of benefits, under this act shall use  or  permit  the
23    use  of  such  list for any political purpose, he shall be fined not less than
24    twenty dollars ($20.00) nor more than two hundred dollars ($200),  or  impris-
25    oned  for not longer than ninety (90) days, or both; and   chapter,
26     each  such  unauthorized disclosure shall constitute a sepa-
27    rate misdemeanor.

28        SECTION 93.  That Section 72-1375, Idaho Code, be, and the same is  hereby
29    amended to read as follows:

30        72-1375.  PROTECTION  OF  RIGHTS  AND  BENEFITS.  (  a   1
31    ) Any agreement  by an individual   to    waiver  
32      waive  ,  release,  or  commute  his rights   any
33    right  to benefits or  any  other rights under this  act
34      chapter  shall be void. Any  agreement  by  any  individual
35    performing  services  for  a covered employer to pay all or any portion of any
36    contributions or penalties required under this  act    chapter
37      from  such employer, shall be void. No covered employer shall directly
38    or indirectly make or require or accept any deduction from  wages  to  finance
39    the contributions required from him, require or accept any waiver of any right
40    under  this   act   chapter  by any individual rendering
41    service for him, discriminate in regard to the hiring or tenure of work or any
42    term or condition of work of any individual on account of his  claiming  bene-
43    fits  under  this    act      chapter , or in any manner
44    obstruct or impede the claiming of benefits. Any employer or officer or  agent
45    of  an  employer  who  violates any provision s  of this subsection
46    shall, for each offense, be  fined not  less  than  one  hundred  dollars
47    ($100)  nor  more  than one thousand dollars ($1,000) or be imprisoned for not
48    more than six (6) months, or both   guilty of a misdemeanor .
49        ( b  2 )  No individual claiming benefits  shall  be
50    charged  fees  or  costs  of  any  kind in any proceeding under this  act


                                      90

 1      chapter  by the commission, the director, any of its or his
 2    employees or representatives, or by any court or any officer  thereof,  except
 3    that  a  court  may  assess costs if the court determines that the proceedings
 4     for a judicial action  have been instituted or  continued  without
 5    reasonable  ground.  Any individual claiming benefits in any proceeding before
 6    the  director or   department,   the  commission  ,
 7        or  his  or its representatives  or a court may be repre-
 8    sented by counsel or other duly authorized agent ; but no such counsel or
 9    agent shall either charge or receive for such services  more  than  an  amount
10    approved  by  the  commission . Any person who violates any provision of
11    this subsection shall, for each such offense, be   fined  not  less  than
12    fifty  dollars  ($50) nor more than five hundred dollars ($500), or be impris-
13    oned for not more than six (6) months, or both   guilty of a misde-
14    meanor .
15        ( c  3 )  Any assignment, pledge, or encumbrance  of
16    any  right to benefits which are or may become due or payable under this 
17    act   chapter  shall be void; and  such  rights  to  benefits
18    shall  be exempt from levy, execution, attachment, or an order for the payment
19    of attorney 's  fees. Benefits received by any individual, so  long
20    as  they  are  not  mingled with other funds of the recipient, shall be exempt
21    from any remedy whatsoever for the collection of  debts  ,  except  debts
22    incurred for necessaries furnished to such individual or his spouse or depend-
23    ents during the time when such individual was unemployed . Any waiver of
24    any exemption provided for in this subsection shall be void.
25        (  d   4 )  The provisions of this section shall not
26    apply to any action taken pursuant to section 72-1365(  b    2
27    ), Idaho Code.

28        SECTION  94.  That Section 72-1376, Idaho Code, be, and the same is hereby
29    amended to read as follows:

30        72-1376.  REPRESENTATION IN COURT. ( a  1 )  In  any
31    civil  action to enforce the provisions of this  act   chapter
32     the director, the commission, and the state shall be represented by the
33    attorney general ,  ; such assistant attorneys  general  shall
34    be  appointed  as shall be necessary for this purpose;  or if the action
35    is brought in the courts of any other state, by  any  attorneys  qualified  to
36    appear in the courts of that state.
37        (  b  2 )  All criminal actions for violation of any
38    provision of this  act   chapter , or of any rules 
39    or regulations  issued pursuant thereto,  shall  be  prosecuted  by  the
40    attorney  general of the state, or, at his request and under his direction, by
41    the prosecuting attorney of any county wherein the defendant resides or has  a
42    place of business.

43        SECTION  95.  That Section 72-1377, Idaho Code, be, and the same is hereby
44    amended to read as follows:

45        72-1377.  SAVING CLAUSE. The legislature reserves the right  to  amend  or
46    repeal  all  or  any part of this  act   chapter  at any
47    time; and there shall be no vested private right  of  any  kind  against  such
48    amendment  or  repeal.  All the rights, privileges, or immunities conferred by
49    this  act   chapter  or by acts  done  pursuant  thereto
50    shall  exist  subject  to the power of the legislature to amend or repeal this
51     act   chapter  at any time.


                                      91

 1        SECTION 96.  That Section 72-1378, Idaho Code, be, and the same is  hereby
 2    amended to read as follows:

 3        72-1378.  SEPARABILITY  OF  PROVISIONS. If any provision of this  act
 4      chapter , or the application thereof to any person or  cir-
 5    cumstance, shall be declared by the courts to be unconstitutional, inoperative
 6    or  void,  the remainder of this  act   chapter  and the
 7    application of such provision to other persons or circumstances shall  not  be
 8    affected thereby.

 9        SECTION  97.  That Section 72-1379, Idaho Code, be, and the same is hereby
10    amended to read as follows:

11        72-1379.   TRANSITION, REPEAL AND EFFECTIVE DATE    REFER-
12    ENCES  IN  CHAPTER  .   A reference in this chapter to any state or
13    federal law means the law as it existed on the effective date of this  chapter
14    and  any  amendments  or  recodifications thereto.   (a) As used in
15    this section unless the context clearly requires otherwise--
16        (1)  "Old law" means the Unemployment Compensation Law enacted under chap-
17    ter 12 of the third extraordinary session of the twenty-third session  of  the
18    state  legislature,  as  amended  by chapters 9, 183, 187, and 188 of the 1937
19    Session Laws, as amended by chapters 202, 203, and 239  of  the  1939  Session
20    Laws,  as  amended  by  chapters 65, 175, and 182 of the 1941 Session Laws, as
21    amended by chapters 29, 68, and 92 of the 1943 Session  Laws  as  amended  and
22    compiled by chapter 203 of the 1945 Session Laws;
23        (2)  "New law" means the Employment Security Law as provided by this act;
24        (3)  "Effective date" means the date upon which the new law becomes effec-
25    tive.
26        (b)  Except  as otherwise specifically provided elsewhere in this act, the
27    new law shall be exclusively applicable with respect  to  any  person  on  and
28    after the effective date and no provision of the old law shall be construed to
29    limit  or to extend the rights of any person as fixed by the new law after the
30    new law becomes exclusively applicable with respect to such person as provided
31    in this section.
32        (c)  With respect to any individual who is currently receiving benefits on
33    the effective date a determination of his entitlement of a continuance of ben-
34    efits shall be made in accordance  with  provisions  of  sections  72-1365  to
35    72-1370, inclusive, of the new law. All credits or rights to benefits accruing
36    to  any  individual  pursuant to the provisions of the old law shall cease and
37    become ineffective on the effective date of the new law, and on that date  and
38    thereafter  such  individual's  rights  to  benefits  shall be determined with
39    respect to benefit year, base period, weekly benefit amount, etc.,  in  accor-
40    dance  with the provisions of the new law, provided, that if any individual is
41    in benefit status on the effective date, the payment of benefits for  consecu-
42    tive  weeks of unemployment shall not be interrupted by requiring him to serve
43    an additional waiting period.
44        (d)  Except as otherwise specifically provided elsewhere in this act,  the
45    provisions  of  the  new law with respect to employer's rights and liabilities
46    shall be applicable on the effective date and thereafter, and contributions or
47    penalties under the provisions of the old law, accruing up  to  the  effective
48    date  shall  not  be waived and shall remain collectible, but on and after the
49    effective date, the penalty rates pursuant to the provisions of  the  new  law
50    shall apply and the total contributions and penalties due, even though accrued
51    in  part pursuant to the provisions of the old law and in part pursuant to the
52    provisions of the new law, shall be subject to  collection  on  or  after  the


                                      92

 1    effective date in accordance with the collection provisions of the new law.
 2        (e)  The enactment of the new law and the 1951 amendments shall not in any
 3    way  interrupt  the  merit status of any individual who was employed in accor-
 4    dance with the provisions of the old law or the Employment Security Law by the
 5    unemployment compensation and employment service divisions of  the  industrial
 6    commission, or the employment security agency.
 7        (f)  All  moneys,  on the effective date, in the unemployment compensation
 8    fund, established under the old law, are hereby transferred to the  employment
 9    security  fund; all moneys, on the effective date, in the unemployment compen-
10    sation administration fund established under the old law,  are  hereby  trans-
11    ferred  to  the  employment  security  administration fund. All moneys, on the
12    effective date, in employment service fund received from federal grants pursu-
13    ant to the old law, are hereby transferred  to  the  employment  service  fund
14    established under the new law.
15        (g)  The  old  law,  as  defined  in  subsection  (a)(1)  above, is hereby
16    repealed, but shall remain in full force and effect until the  effective  date
17    of  the  new  law,  and  this act shall in no way be construed as affecting or
18    waiving any right accrued or penalty incurred under any provision of  the  old
19    law. 

20        SECTION  98.  That Section 72-1380, Idaho Code, be, and the same is hereby
21    repealed.

22        SECTION 99.  That Section 72-1381, Idaho Code, be, and the same is  hereby
23    amended to read as follows:

24        72-1381.  DIRECTOR  TO  COOPERATE  WITH GOVERNOR IN MEDIATION OF DISPUTES.
25    Upon the request of any  interested  party to an actual  or  poten-
26    tial labor dispute, the director shall have the power to mediate  in such
27        the  dispute.  He shall use his best efforts to con-
28    ciliate and resolve such dispute among the disputants.  The director  or
29    any  interested  party  may  apply  to the governor for appointment of  a
30    mediator or  a mediation panel of  representative    not
31    less than three (3)  citizens who are  fairminded and  objec-
32    tive  in matters involving labor disputes, and the governor shall, if the pub-
33    lic interest will be served thereby, appoint such a  mediator  or  
34    mediation  panel.  From this panel the governor may select one (1) member
35    to act as a mediator and such member   Such mediator  or  mediation
36    panel    shall  be  paid    his  actual expenses  by the
37    interested parties  while engaged  upon the     in  such
38      public  business.  Neither  the  director, the governor, nor any 
39    mediator or  member of any mediation panel shall be authorized to  arbi-
40    trate any labor dispute.

41        SECTION 100.  That Section 72-1382, Idaho Code, be, and the same is hereby
42    amended to read as follows:

43        72-1382.  DUTIES OF DIRECTOR -- DETERMINATION OF REPRESENTATIVES.  In
44    order  to  insure employers, employees, and the general public, the full bene-
45    fits of the provisions of sections 72-1381  through  72-1385,  Idaho  Code,  t
46      T  he director shall, when a question arises concerning the
47    representation of employees in a collective bargaining unit, investigate  such
48    controversy  and  certify to the parties , in writing,  the name or
49    names of  the  representatives  who  have  been    designated  or  
50    selected.  In  any such investigation the director shall provide for an appro-


                                      93

 1    priate hearing ,   upon due notice,    and  may  take  a
 2    secret  ballot  of  employees  to ascertain such representatives. In all cases
 3    where a secret ballot is taken, the ballot shall  be prepared  so  as  to
 4      permit  a  vote  against representation by anyone named on the ballot;
 5    provided, however, that nothing in this section shall be construed  as  autho-
 6    rizing  the  director to conduct an election on any matter which is within the
 7    exclusive jurisdiction of any federal  act    official  
 8    or  board;  and  ,    provided  further  that  no election shall be
 9    directed in any bargaining unit or subdivision within which, in the  preceding
10    twelve (12) month period, a valid election was held.
11          The  director  may  establish such rules as he deems appropriate to
12    effectuate the policies of the provisions of sections 72-1381 through 72-1385,
13    Idaho Code, for the filing of petitions for investigation and certification by
14    employees or their representatives. 

15        SECTION 101.  That Sections 72-1383 and 72-1384, Idaho Code, be,  and  the
16    same are hereby repealed.

17        SECTION 102.  That Section 72-1385, Idaho Code, be, and the same is hereby
18    amended to read as follows:

19        72-1385.  PROVISIONS  NOT  TO APPLY TO AGRICULTURAL OR DOMESTIC LABOR. The
20    provisions  of  sections  72-1381    through      and   
21    72-138  4    2  ,  Idaho  Code, shall not apply to labor
22    engaged in agricultural labor as that term  is  defined  in  section  72-1304,
23    Idaho Code, nor to anyone engaged in domestic service in homes.

24        SECTION 103.  That Section 33-1002, Idaho Code, be, and the same is hereby
25    amended to read as follows:

26        33-1002.  EDUCATIONAL  SUPPORT PROGRAM. The educational support program is
27    calculated as follows:
28        1.  State Educational Support Funds. Add the state appropriation,  includ-
29    ing  the  moneys available in the public school income fund, together with all
30    miscellaneous revenues to determine the total state funds.
31        2.  From the total state funds subtract the following amounts  needed  for
32    state support of special programs provided by a school district:
33        a.  Pupil  tuition-equivalency allowances as provided in section 33-1002B,
34        Idaho Code;
35        b.  Transportation support program as provided in section  33-1006,  Idaho
36        Code;
37        c.  Feasibility  studies  allowance as provided in section 33-1007A, Idaho
38        Code;
39        d.  The approved costs for border district allowance, provided in  section
40        33-1403,  Idaho  Code, as determined by the state superintendent of public
41        instruction;
42        e.  The approved costs for exceptional child approved contract  allowance,
43        provided in subsection 2. of section 33-2004, Idaho Code, as determined by
44        the state superintendent of public instruction;
45        f.  Certain  expectant and delivered mothers allowance as provided in sec-
46        tion 33-2006, Idaho Code;
47        g.  Salary based apportionment calculated as provided in sections  33-1004
48        through 33-1004F, Idaho Code;
49        h.  Unemployment insurance benefit payments according to the provisions of
50        section 72-1349 C  A , Idaho Code;


                                      94

 1        i.  For  programs  to provide basic curricula necessary to enable students
 2        to enter academic or vocational postsecondary education programs, an allo-
 3        cation of $300 per support unit for the 1994-95 school year only;
 4        j.  For provision of teacher supplies to facilitate classroom instruction,
 5        an allocation of $200 per support unit for the 1994-95 school year only;
 6        k.  For expenditure as provided by the public school  technology  program,
 7        $10,400,000 for the 1994-95 school year;
 8        l.  For  additional school innovation pilot project grants based on recom-
 9        mendations of the  Idaho  school  reform  committee,  $2,000,000  for  the
10        1994-95 school year; and
11        m.  For  the  support of provisions that provide a safe environment condu-
12        cive to student learning and maintain classroom discipline, an  allocation
13        of $300 per support unit;
14        n.  Any additional amounts as required by statute to effect administrative
15        adjustments  or  as specifically required by the provisions of any bill of
16        appropriation;
17    to secure the state educational support funds.
18        3.  Local  Districts'  Contribution  Calculation.  Without  including  any
19    allowance as a credit for prepaid taxes as provided by section 63-1607,  Idaho
20    Code,  the  local  districts'  contribution shall be four-tenths percent (.4%)
21    during fiscal year 1994-95 and  each  year  thereafter,  of  the  total  state
22    adjusted  market value for assessment purposes for the previous year with such
23    value being determined by the provisions of section 63-315,  Idaho  Code,  and
24    four-tenths percent (.4%) during fiscal year 1994-95 and each year thereafter,
25    of  the  cooperative  electrical  associations' property values that have been
26    derived from the taxes paid in lieu of ad valorem taxes for the previous  year
27    as provided in section 63-3502, Idaho Code.
28        4.  Educational  Support  Program  Distribution  Funds. Add the local dis-
29    tricts' contribution, subsection 3. of this section, and the state educational
30    support program funds, subsection 1. of this section, together to  secure  the
31    total educational support program distribution funds.
32        5.  Average  Daily  Attendance.  The  total state average daily attendance
33    shall be the sum of the average daily attendance of all  of  the  school  dis-
34    tricts  of  the state. The state board of education shall establish rules set-
35    ting forth the procedure to determine average daily attendance  and  the  time
36    for, and method of, submission of such report. Average daily attendance calcu-
37    lation  shall  be carried out to the nearest hundredth. Computation of average
38    daily attendance shall also be governed by the provisions of section 33-1003A,
39    Idaho Code.
40        6.  Support Units. The total state support units shall  be  determined  by
41    using  the tables set out hereafter called computation of kindergarten support
42    units, computation of elementary support units, computation of secondary  sup-
43    port  units,  computation of exceptional education support units, and computa-
44    tion of alternative school secondary support units. The  sum  of  all  of  the
45    total  support  units  of all school districts of the state shall be the total
46    state support units.
47                      COMPUTATION OF KINDERGARTEN SUPPORT UNITS
48    Average Daily
49    Attendance            Attendance Divisor             Units Allowed
50    41 or more     ....   40.......................      1 or more as computed
51    31 -  40.99 ADA....    -.......................      1
52    26 -  30.99 ADA....    -.......................       .85
53    21 -  25.99 ADA....    -.......................       .75
54    16 -  20.99 ADA....    -.......................       .6
55     8 -  15.99 ADA....    -.......................       .5


                                      95

 1     1 -   7.99 ADA....    -.......................      count as elementary

 2                       COMPUTATION OF ELEMENTARY SUPPORT UNITS
 3    Average Daily
 4    Attendance            Attendance Divisor             Minimum Units Allowed
 5    300 or more ADA........................................  15
 6                        ..23...grades 4,5 & 6....
 7                        ..22...grades 1,2 & 3....1994-95
 8                        ..21...grades 1,2 & 3....1995-96
 9                        ..20...grades 1,2 & 3....1996-97
10                              and each year thereafter.
11    160   to  299.99 ADA... 20.....................             8.4
12    110   to  159.99 ADA... 19.....................             6.8
13     71.1 to  109.99 ADA... 16.....................             4.7
14     51.7 to   71.0  ADA... 15.....................             4.0
15     33.6 to   51.6  ADA... 13.....................             2.8
16     16.6 to   33.5  ADA... 12.....................             1.4
17      1.0 to   16.5  ADA... n/a....................             1.0

18                        COMPUTATION OF SECONDARY SUPPORT UNITS
19    Average Daily
20    Attendance            Attendance Divisor             Minimum Units Allowed
21    750 or more      .... 18.5.....................            47
22    400 -  749.99 ADA.... 16.......................            28
23    300 -  399.99 ADA.... 14.5.....................            22
24    200 -  299.99 ADA.... 13.5.....................            17
25    100 -  199.99 ADA.... 12.......................             9
26     99.99 or fewer       Units allowed as follows:
27             Grades 7-12  .........................             8
28             Grades 9-12  .........................             6
29             Grades 7- 9  .........................             1 per 14 ADA
30             Grades 7- 8  .........................             1 per 16 ADA

31                  COMPUTATION OF EXCEPTIONAL EDUCATION SUPPORT UNITS
32    Average Daily
33    Attendance            Attendance Divisor             Minimum Units Allowed
34    14 or more ....       14.5.....................      1 or more as computed
35    12 -  13.99....        -.......................      1
36     8 -  11.99....        -.......................       .75
37     4 -   7.99....        -.......................       .5
38     1 -   3.99....        -.......................       .25

39              COMPUTATION OF ALTERNATIVE SCHOOL SECONDARY SUPPORT UNITS
40    Pupils in Attendance  Attendance Divisor             Minimum Units Allowed
41    12 or more..........  12......................       1 or more as computed

42        In applying these tables to any given separate attendance unit, no  school
43    district  shall  receive  less  total  money than it would receive if it had a
44    lesser average daily attendance in such separate attendance unit. In  applying
45    the  kindergarten  table  to  a  kindergarten program of less days than a full
46    school year, the support unit allowance shall be in ratio  to  the  number  of
47    days  of a full school year. The tables for exceptional education and alterna-
48    tive school secondary support units shall  be  applicable  only  for  programs
49    approved  by  the state department of education following rules established by
50    the state board of education. Moneys generated  from  computation  of  support


                                      96

 1    units  for  alternative  schools shall be utilized for alternative school pro-
 2    grams. School district administrative and facility costs may  be  included  as
 3    part of the alternative school expenditures.
 4        7.  State Distribution Factor per Support Unit. Divide educational support
 5    program distribution funds, after subtracting the amounts necessary to pay the
 6    obligations  specified  in  subsection  2. of this section, by the total state
 7    support units to secure the state distribution factor per support unit.
 8        8.  District Share of State Funds for Educational Support Program.  Ascer-
 9    tain  a district's share of state funds for the educational support program as
10    follows:
11        a.  District Contribution Calculation. Without including any allowance  as
12        a  credit  for  prepaid taxes, as provided in section 63-1607, Idaho Code,
13        the district contribution calculation shall be the rate  determined  under
14        subsection 3. of this section.
15        b.  District  Support  Units.  The number of support units for each school
16        district in the state shall be determined as follows:
17             (1)  Divide the actual average daily attendance,  excluding  students
18             approved  for inclusion in the exceptional child educational program,
19             for the administrative schools and each of the  separate  schools  by
20             the appropriate divisor from the tables of support units in this sec-
21             tion,  then  add the quotients to obtain the district's support units
22             allowance for regular students, kindergarten through grade 12 includ-
23             ing alternative school secondary students. Calculations  in  applica-
24             tion of this subsection shall be carried out to the nearest tenth.
25             (2)  Divide  the  combined  totals of the average daily attendance of
26             all preschool, handicapped, kindergarten, elementary,  secondary  and
27             juvenile  detention  center  students  approved  for inclusion in the
28             exceptional child program of the district by the appropriate  divisor
29             from the table for computation of exceptional education support units
30             to  obtain  the  number  of  support units allowed for the district's
31             approved exceptional child program. Calculations for this  subsection
32             shall be carried out to the nearest tenth when more than one (1) unit
33             is allowed.
34             (3)  The  total  number of support units of the district shall be the
35             sum of the total  support  units  for  regular  students,  subsection
36             8.b.(1)  of  this  section,  and  the support units allowance for the
37             approved exceptional child program, subsection 8.b.(2) of  this  sec-
38             tion.
39        c.  Total  District Allowance Educational Program. Multiply the district's
40        total number of support units, carried out to the nearest  tenth,  by  the
41        state  distribution  factor  per  support unit and to this product add the
42        approved amount of programs of the district provided in subsection  2.  of
43        this  section to secure the district's total allowance for the educational
44        support program.
45        d.  District Share. To secure the district's share of state apportionment,
46        subtract the amount of the local district contribution  calculation,  sub-
47        section  3.  of this section, from the amount of the total district allow-
48        ance, subsection 8.c. of this section.
49        e.  Adjustment of District Share. The contract salary of every noncertifi-
50        cated teacher shall be subtracted from the district's share as  calculated
51        from the provisions of subsection 8.d. of this section.

52        SECTION 104.  That Section 67-1003, Idaho Code, be, and the same is hereby
53    amended to read as follows:


                                      97

 1        67-1003.  APPROPRIATION  NECESSARY  TO  AUTHORIZE WARRANT. In all cases of
 2    specific appropriations, salaries, pay and expenses, ascertained  and  allowed
 3    by law, found due to individuals from the state, when examined, the state con-
 4    troller  must  draw warrants upon the treasury for the amount; but in cases of
 5    unliquidated accounts and claims, the adjustment and payment of which are  not
 6    provided  for  by  law,  no warrants must be drawn by the state controller, or
 7    paid by the treasurer, until appropriation is made by law  for  that  purpose,
 8    nor  must the whole amount drawn for and paid for any purpose or under any one
 9    (1) appropriation ever exceed the amount appropriated, or the cash balance  in
10    the  account charged, whichever is less. For the purposes of this section, the
11    cash balance in the benefit account established in  section  72-1346  (b)
12    ,  Idaho  Code, shall be deemed to be the cash balance in the account of
13    this state in the unemployment trust fund established and maintained  pursuant
14    to section 904 of the social security act, as amended.

15        SECTION 105.  That Section 72-1701, Idaho Code, be, and the same is hereby
16    amended to read as follows:

17        72-1701.  PURPOSE AND INTENT OF ACT. The purpose of this act is to promote
18    alcohol  and  drug-free  workplaces and otherwise support private employers in
19    their efforts to eliminate substance  abuse  in  the  workplace,  and  thereby
20    enhance  workplace safety and increase productivity. This act establishes vol-
21    untary drug and alcohol testing guidelines for private  employers  that,  when
22    complied  with,  will find an employee who tests positive for drugs or alcohol
23    at fault, and will constitute misconduct under the employment security law  as
24    provided in section 72-1366 (e) , Idaho Code, thus resulting in the
25    denial of unemployment benefits.

26        SECTION 106.  That Section 72-1707, Idaho Code, be, and the same is hereby
27    amended to read as follows:

28        72-1707.  DISCHARGE  FOR  WORK-RELATED MISCONDUCT -- FAILURE OR REFUSAL OF
29    TESTING. A private employer establishes that an employee  was  discharged  for
30    work-related misconduct, as provided in section 72-1366 (e) , Idaho
31    Code,  upon  a showing that the employer has complied with the requirements of
32    this act and that the discharge was based on:
33        (1)  A confirmed positive drug test or a positive alcohol test,  as  indi-
34    cated  by  a test result of not less than .02 blood alcohol content (BAC), but
35    greater than the level specified in the employer's substance abuse policy;
36        (2)  The employee's refusal to provide a sample for testing; or
37        (3)  The employee's alteration or attempt to alter a test sample by adding
38    a foreign substance for the purpose of making the  sample  more  difficult  to
39    analyze; or
40        (4)  The employee's submission of a sample that is not his or her own.

41        SECTION 107.  That Section 72-1708, Idaho Code, be, and the same is hereby
42    amended to read as follows:

43        72-1708.  PRIVATE  EMPLOYER'S DISCIPLINARY OR REHABILITATIVE ACTIONS BASED
44    ON TESTING -- CLAIMANT INELIGIBLE FOR BENEFITS. (1) Upon  receipt  of  a  con-
45    firmed  positive  drug or alcohol test result or other proof which indicates a
46    violation of a private employer's written policy, or upon the  refusal  of  an
47    employee  to  provide  a  test  sample, or upon an employee's alteration of or
48    attempt to alter a test sample, a private employer may use that test result or
49    the employee's conduct as the basis for disciplinary or refusal-to-hire action


                                      98

 1    that will result in a claimant ' s ineligibility to  receive  bene-
 2    fits  under  the  provisions of section 72-1366( d  4 ),
 3    ( e  5 ), ( f  6  )  or  (  g
 4      7  ),  Idaho  Code.  Actions  by  the  private employer may
 5    include, but are not limited to, the following:
 6        (a)  A requirement that the employee enroll in a private employer-approved
 7        rehabilitation, treatment, or counseling program, which may include  addi-
 8        tional drug or alcohol testing, as a condition of continued employment;
 9        (b)  Suspension of the employee with or without pay for a period of time;
10        (c)  Termination of the employee;
11        (d)  Other   disciplinary   measures   in  conformance  with  the  private
12        employer's usual procedures, including any  collective  bargaining  agree-
13        ment.
14        (2)  Action  taken  pursuant to this section shall not create any cause of
15    action against the private employer.

16        SECTION 108.  That Section 72-1709, Idaho Code, be, and the same is hereby
17    amended to read as follows:

18        72-1709.  FAILURE OF CLAIMANT TO ACCEPT SUITABLE WORK. If a  claimant  for
19    unemployment benefits does not accept otherwise suitable work, as contemplated
20    in  section  72-1366(  d    4  ), ( f  6
21    ) or ( g  7 ), Idaho Code, because he is  required
22    to  take  a  preemployment  drug  or  alcohol test, the claimant has failed to
23    accept suitable work, unless the claimant is required to pay for costs associ-
24    ated with a negative drug or alcohol test result.

25        SECTION 109.  An emergency existing therefor, which  emergency  is  hereby
26    declared to exist, Section 66 of this act shall be in full force and effect on
27    and after its passage and approval, and retroactively to January 1, 1998.

Statement of Purpose / Fiscal Impact

    





    STATEMENT OF PURPOSE
    RS07289C1
    This bill is a major rewrite of ldaho's Employment Security Law. It would
    accomplish the following:
    1) Change the Unemployment Insurance tax rate schedule to:
    a) Reduce the overall State's effective Unemployment Insurance tax rate from
    0.9% to 0.8%,
    b) Reduce the standard (new) employer rate by approximately 30%,
    c) Reduce tax rates for positive-rated employers,
    d) Reduce the percentage increase for positive-rated employers when moving to
    the next higher tax schedule, and
    e) Slightly increase the "experience" tax rating for deficit-rated employers
    at the highest deficit tax rate, so that they are not subsidized quite as
    much by positive rated employers.
    2) Make two minor reductions to benefit levels by:
    a) Indexing the wage required to receive the minimum weekly@ benefit (MWB) to
    50% of the state minimum wage. The MWB (currently $44) will increase
    automatically with an increase in the state minimum wage ($51 at the current
    $5.15 minimum wage), and
    Changing the re-qualification formula when filing for benefits in a
    subsequent year from 5.5 times the weekly benefit amount to 6 times the
    weekly benefit amount.
    Make numerous changes to make the law easier to understand and administer,
    including:
    Deleting one step of the five step benefit claim appeals process, thereby
    reducing the time necessary for a final determination,
    b) Denying benefit claim appeal rights to employers who do not provide timely
    separation information without good cause, and
    c) Rounding the taxable wage base to the nearest $100 rather than to the
    nearest $600.
    
    
    
    
                               FISCAL IMPACT
    
    1) Tax Impacts:
    a) This legislation will reduce overall taxes by approximately $31 million in
    1998 and by approximately $112 million over the next four years. If this
    legislation is not adopted, the existing tax schedule will increase taxes in 
    1998
    by approximately $16 million.
    b)The new tax schedule is projected to decrease the amount in the Unemployment
    Insurance Trust Fund. The Trust Fund, estimated to be at $329 million by the 
    end
    of 1997, is health as measured by the "Average Cost Multiple" formula,
    established by the Legislature in 1989 as Idaho's measure of Fund adequacy.
    2) Benefit Impacts:
    a) An estimated 400 claimants who currently qualify for the current MWB, will
    not qualify for the new MWB. A claimant can now earn as little as $1,144 in
    the high quarter to qualify for the current $44 MWB. This proposal would
    increase that earnings requirement to $1,336 in the claimant's high quarter
    to qualify for the new $51 MWB.
    
    CONTACT
    Name: Tana Shillingstad
    Agency: Governor Office
    Phone: 334-2100
    Name: Dwight Johnson
    Agency: Idaho Department of Labor Phone 334-6402

    





                                 State of Purpose/Fiscal Impact H426