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S1019.......................................by COMMERCE AND HUMAN RESOURCES
EMPLOYMENT SECURITY - Amends existing law relating to Employment Security
Law to provide the taxable wage rates for all covered experience-rated
employers for calendar year 2002.
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 - 30-1-4
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,
Williams
NAYS -- Whitworth
Absent and excused -- Andreason, Branch, Geddes, Ipsen
Floor Sponsor - Stegner
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 - 63-0-7
AYES -- Barraclough, Bedke, Bell, Bieter, Boe, Bolz, Bradford,
Bruneel, Campbell, Chase, Clark, Collins, Cuddy, Deal, Denney,
Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, 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, Wood, Young,
Mr. Speaker
NAYS -- None
Absent and excused -- Barrett, Black, Callister, Crow Ellis, Kellogg,
Pischner
Floor Sponsor -- Swan
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 18
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1019
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1350, IDAHO CODE,
3 TO PROVIDE THAT TAXABLE WAGE RATES FOR ALL COVERED EXPERIENCE-RATED
4 EMPLOYERS SHALL BE DETERMINED IN ACCORDANCE WITH SCHEDULE II FOR CALENDAR
5 YEAR 2002 AND TO MAKE TECHNICAL CORRECTIONS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 72-1350, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 72-1350. TAXABLE WAGE BASE AND TAXABLE WAGE RATES. (1) All remuneration
10 for personal services as defined in section 72-1328, Idaho Code, equal to the
11 average annual wage in covered employment for the penultimate calendar year,
12 rounded to the nearest multiple of one hundred dollars ($100), or the amount
13 of taxable wage base specified in the federal unemployment tax act, whichever
14 is higher, shall be the taxable wage base for purposes of this chapter.
15 (2) All covered employers, except those eligible and electing the cost
16 reimbursement payment method, shall be assigned taxable wage rates annually by
17 the director in accordance with the following, provided however, and notwith-
18 standing any other provision of the employment security law to the contrary,
19 for calendar year 2002 the taxable wage rates for all covered experience-rated
20 employers shall be determined in accordance with schedule II.
21 (3) A desired employment security fund size shall be determined for each
22 calendar year by calculating from the penultimate year, the ten (10) year
23 average of annual benefits paid to wages covered, multiplied by one and one-
24 half (1.5). The resulting ratio, when applied to the covered wages of the
25 penultimate year, represents the desired fund size. This calculation is here-
26 after referred to as the average cost multiple (ACM).
27 (4) The ACM shall be the ratio at the top of taxable wage rate schedule V
28 as provided in subsection (7) of this section, and all other ratios for sched-
29 ules I through IX are adjusted up or down from schedule V in equal increments
30 of .005.
31 (5) The taxable wage rate schedule for each calendar year shall be deter-
32 mined by comparing the ratio of the actual balance of the employment security
33 fund, section 72-1346, Idaho Code, and the reserve fund, section 72-1347A,
34 Idaho Code, on September 30, to the wages covered in the penultimate year
35 against the taxable wage schedule ratios as provided in subsection (4) of this
36 section.
37 (6) The ratios computed for each taxable wage rate schedule as provided
38 in subsection (4) of this section shall be placed with their appropriate
39 schedule at the top of the columns as provided in subsection (7) of this sec-
40 tion, and shall represent the minimum fund level required for the specific
41 schedule to be in effect.
2
3
1 (8) Each employer will be assigned a taxable wage rate from the effective
2 taxable wage rate schedule for eligible, standard-rated and deficit employers,
3 based upon the employer's experience as determined under the provisions of
4 sections 72-1319, 72-1319A, 72-1319B and 72-1351, Idaho Code.
5 (a) Deficit employers who have been assigned a taxable wage rate from
6 rate class six will be assigned contribution rates equal to their taxable
7 wage rate.
8 (b) All other eligible, standard-rated and deficit employers will be
9 assigned contribution rates equal to ninety-seven percent (97%) of their
10 taxable wage rate. Provided however, that for each calendar year a reserve
11 tax is imposed pursuant to section 72-1347A, Idaho Code, the contribution
12 rates for employers assigned contribution rates pursuant to this paragraph
13 shall be eighty percent (80%) of their taxable wage rate.
14 (9) Each employer shall be notified of his taxable wage rate as deter-
15 mined for any calendar year pursuant to this section and section 72-1351,
16 Idaho Code. Such determination shall become conclusive and binding upon the
17 employer, unless within fourteen (14) days after delivery or mailing of the
18 notice thereof to his last known address, the employer files an application
19 for redetermination, setting forth his reasons therefor. Reconsideration shall
20 be limited to transactions occurring subsequent to any previous determination
21 which has become final. The employer shall be promptly notified of the rede-
22 termination, which shall become final unless an appeal is filed within four-
23 teen (14) days after delivery or mailing of notice to his last known address.
24 Proceedings on the appeal shall be in accordance with the provisions of sec-
25 tion 72-1361, Idaho Code.
STATEMENT OF PURPOSE
RS 10507
This bill will freeze the unemployment insurance taxable wage rates
at schedule II for calendar year 2002. If this bill is not enacted,
it is projected that rate schedule III will be effective in
calendar year 2002.
FISCAL IMPACT
There is no impact on the State General Fund. Current law (rate
schedule III projected for 2002) would generate an estimated $119.8
million for calendar year 2002. This bill, which designates rate
schedule II for calendar year 2002, would generate an estimated
$105.0 million for the same calendar period. Thus, if enacted, this
bill would result in a tax savings to employers of approximately
$14.8 million. The funds impacted by this tax savings would be the
Unemployment Insurance (UI) Trust Fund, in the amount of $14.4
million, and the Workforce Development Training Fund, in the amount
of $0.4 million. The decrease in revenue to the UI Trust Fund is
projected to reduce interest on that fund by approximately $0.2
million.
These fiscal impact projections were made under an assumption of
continued moderate growth in Idaho's economy. If there is a severe
recession, enactment of this legislation would make it more likely
that Idaho's UI Trust Fund would be depleted and the State would
have to borrow federal funds to continue paying UI benefits. In
addition, UI taxes may have to increase during the recession in
order to pay back the federal loans and restore Idaho's UI Trust
Fund. The balance in the UI Trust Fund at the end of calendar year
1999 was $332.8 million.
CONTACT
Name: Dwight Johnson
Agency: Department of Labor
Phone: 334-6402
Statement of Purpose/Fiscal Note S101