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S1018.......................................by COMMERCE AND HUMAN RESOURCES
WORKFORCE DEVELOPMENT TRAINING TAX - Amends existing law relating to
employment security law to extend the effective date of the Workforce
Development Training Tax to January 1, 2007.
01/17 Senate intro - 1st rdg - to printing
01/18 Rpt prt - to Com/HuRes
01/19 Rpt out - rec d/p - to 2nd rdg
01/22 2nd rdg - to 3rd rdg
01/25 3rd rdg - PASSED - 31-0-4
AYES -- Boatright, Brandt, Bunderson, Burtenshaw, Cameron, Danielson,
Darrington, Davis, Deide, Dunklin, Frasure, Goedde, Hawkins, Ingram,
Keough, King-Barrutia, Lee, Lodge, Noh, Richardson, Riggs, Risch,
Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler,
Whitworth, Williams
NAYS -- None
Absent and excused -- Andreason, Branch, Geddes, Ipsen
Floor Sponsor - Goedde
Title apvd - to House
01/26 House intro - 1st rdg - to Comm/HuRes
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/12 3rd rdg - PASSED - 61-1-8
AYES -- Barraclough, Bedke, Bell, Bieter, Boe, Bolz, Bradford,
Bruneel, Campbell, Chase, Clark, Collins, Deal, Denney, Ellis,
Ellsworth, Eskridge, Field(13), Field(20), Gagner, Hadley, Hammond,
Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kendell, Kunz,
Lake, Langford, Loertscher, Mader, Marley, McKague, Meyer,
Montgomery, Mortensen, Moss, Moyle, Pearce, Pomeroy, Raybould,
Ridinger, Roberts, Robison, Sali, Schaefer, Sellman, Shepherd, Smith,
Smylie, Stevenson, Stone, Swan, Tilman, Trail, Wheeler, Young, Mr.
Speaker
NAYS -- Wood
Absent and excused -- Barrett, Black, Callister, Crow Cuddy, Gould,
Kellogg, Pischner
Floor Sponsor -- Trail
Title apvd - to Senate
02/13 To enrol
02/14 Rpt enrol - Pres signed
02/15 Sp signed
02/16 To Governor
02/21 Governor signed
Session Law Chapter 19
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1018
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1347B, IDAHO
3 CODE, TO EXTEND THE EFFECTIVE DATE OF THE SUNSET CLAUSE ON THE WORKFORCE
4 DEVELOPMENT TRAINING TAX UNTIL JANUARY 1, 2007.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 72-1347B, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 72-1347B. WORKFORCE DEVELOPMENT TRAINING FUND. (1) There is established
9 in the state treasury a special trust fund, separate and apart from all other
10 public funds of this state, to be known as the workforce development training
11 fund, hereinafter "training fund." Except as provided herein, all proceeds
12 from the training tax defined in subsection (4) of this section shall be paid
13 into the training fund. The state treasurer shall be the custodian of the
14 training fund and shall invest said moneys in accordance with law. Any inter-
15 est earned on the moneys in the training fund shall be deposited in the train-
16 ing fund. Moneys in the training fund shall be disbursed in accordance with
17 the directions of the director.
18 (2) All moneys in the training fund are perpetually appropriated to the
19 director for expenditure in accordance with the provisions of this section.
20 The purpose of the training fund is to provide or expand training and retrain-
21 ing opportunities in an expeditious manner that would not otherwise exist for
22 Idaho's workforce. The training fund is intended to supplement, but not to
23 supplant or compete with, money available through existing training programs.
24 The moneys in the training fund shall be used for the following purposes:
25 (a) To provide training for skills necessary for specific economic oppor-
26 tunities and industrial expansion initiatives;
27 (b) To provide training to upgrade the skills of currently employed work-
28 ers at risk of being permanently laid off;
29 (c) For refunds of training taxes erroneously collected and deposited in
30 the workforce training fund;
31 (d) For all administrative expenses incurred by the department associated
32 with the collection of the training tax and any other administrative
33 expenses associated with the training fund.
34 (3) Expenditures from the training fund for purposes authorized in para-
35 graphs (a) and (b) of subsection (2) of this section shall be approved by the
36 director and the director of the department of commerce based on procedures,
37 criteria and performance measures established by the council appointed pursu-
38 ant to section 72-1336, Idaho Code. The activities funded by the training fund
39 will be coordinated with similar activities funded by the state division of
40 professional-technical education. Expenditures from the training fund for pur-
41 poses authorized in paragraphs (c) and (d) of subsection (2) of this section
42 shall be approved by the director. The director shall pay all approved expen-
43 ditures as long as the training fund has a positive balance. The council shall
2
1 report annually to the governor and the joint finance-appropriations committee
2 the commitments and expenditures made from the training fund in the preceding
3 fiscal year and the results of the activities funded by the training fund.
4 (4) A training tax is hereby imposed on all covered employers required to
5 pay contributions pursuant to section 72-1350, Idaho Code, with the exception
6 of deficit employers who have been assigned a taxable wage rate from rate
7 class six pursuant to section 72-1350, Idaho Code. The training tax rate shall
8 be equal to three percent (3%) of the taxable wage rate then in effect for
9 each eligible, standard-rated and deficit employer. The training tax shall be
10 due and payable at the same time and in the same manner as contributions. This
11 subsection is repealed effective January 1, 20027, unless, prior to that date,
12 the Idaho legislature approves the continuation of this subsection by repeal
13 of this sunset clause.
14 (5) The provisions of this chapter which apply to the payment and collec-
15 tion of contributions also apply to the payment and collection of the training
16 tax, including the same calculations, assessments, method of payment, penal-
17 ties, interest, costs, liens, injunctive relief, collection procedures and
18 refund procedures. In the administration of the provisions of this section,
19 the director is granted all rights, authority, and prerogatives granted under
20 the provisions of this chapter. Moneys collected from an employer delinquent
21 in paying contributions, reserve taxes and the training tax shall first be
22 applied to any penalty and interest imposed pursuant to the provisions of this
23 chapter and shall then be applied pro rata to delinquent contributions to the
24 employment security fund, section 72-1346, Idaho Code, delinquent reserve
25 taxes to the reserve fund, section 72-1347A, Idaho Code, and delinquent train-
26 ing taxes to the training fund. Any interest and penalties collected pursuant
27 to this subsection shall be paid into the state employment security adminis-
28 trative and reimbursement fund, section 72-1348, Idaho Code, and any interest
29 or penalties refunded under this subsection shall be paid out of that same
30 fund. Training taxes paid pursuant to this section shall not be credited to
31 the employer's experience rating account and may not be deducted by any
32 employer from the wages of individuals in its employ. All training taxes shall
33 be deposited in the clearing account of the employment security fund, section
34 72-1346, Idaho Code, for clearance only and shall not become part of such
35 fund. After clearance, the moneys shall be deposited in the training fund
36 established in subsection (1) of this section.
37 (6) Administrative costs related to the training fund shall be paid from
38 the training fund in accordance with subsection (3) of this section.
STATEMENT OF PURPOSE
RS 10498
This legislation would extend the sunset clause on the Workforce
Development Training Fund (WDTF) to January 1, 2007. The WDTF will
sunset January 1, 2002 if this legislation is not enacted. The WDTF
was an outgrowth of former Governor Batt's 1995 Economic Stimulus
Committee's recommendation to develop a state job- training program
as an economic development tool. The 1996 Idaho Legislature passed
HB 660 and the WDTF was established effective July 1, 1996. The
revenues for the WDTF are generated by decreasing the amount of
unemployment insurance taxes employers must pay by 3% and imposing
a 3% training tax. No general fund tax revenues are used. The WDTF
has received over $14 million to date. The two primary objectives
of the WDTF are to provide funding for companies to train new
employees and to provide training to upgrade the skills of current
workers who are at risk of being permanently laid off. This
legislation extends the sunset clause, rather than repealing it, so
the Legislature can review the WDTF and its impact on Idaho's
economy in another five (5) years.
FISCAL IMPACT
If the WDTF is not renewed, Idaho will lose a major economic
development tool for attracting new jobs to the State. Since its
inception, the WDTF has helped create almost 7,000 new jobs by
providing grants to train employees for these new positions. Over
time, the 3% reduction in unemployment insurance taxes could result
in an increase in overall unemployment insurance tax rates.
However, the income taxes and unemployment insurance taxes paid on
the salaries of these new workers have contributed significantly to
the State's General Fund and to the Unemployment Insurance Trust
Fund.
CONTACT
Name: Dwight Johnson, Department of Labor
Phone: 334-6402
Statement of Purpose/Fiscal Note S101