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H0474.........................................by TRANSPORTATION AND DEFENSE MOTOR CARRIERS - AUDITS - Amends existing law relating to motor carrier registration and audit guidelines to transfer motor carrier audit functions from the Idaho Transportation Department to the State Tax Commission; to remove rulemaking authority of the Idaho Transportation Department with respect to audit procedures; to authorize the State Tax Commission to generate a notice of deficiency and to develop a methodology to calculate such a notice; to provide that the State Tax Commission shall provide the motor carrier with notice and opportunity to use the appeals process prior to suspension of registration; and to provide that the Idaho Transportation Department shall not reregister or permit a vehicle to operate on a trip permit until all audit assessments, penalties and interest have been paid. 01/15 House intro - 1st rdg - to printing 01/16 Rpt prt - to Transp 01/27 Rpt out - rec d/p - to 2nd rdg 01/28 2nd rdg - to 3rd rdg 01/29 3rd rdg - PASSED - 65-0-5 AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell, Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg, Kulczyk, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Robison, Rydalch, Sayler, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Cuddy, Lake, Roberts, Sali, Schaefer Floor Sponsor - Smith(24) Title apvd - to Senate 01/30 Senate intro - 1st rdg - to Transp 03/03 Rpt out - rec d/p - to 2nd rdg 03/04 2nd rdg - to 3rd rdg 03/15 3rd rdg - PASSED - 27-0-8 AYES -- Andreason, Bailey, Bunderson, Burtenshaw, Calabretta, Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams, Pearce, Richardson, Schroeder, Sorensen, Stegner, Sweet, Werk NAYS -- None Absent and excused -- Brandt, Burkett, Cameron, Davis, Noble, Noh, Stennett, Williams Floor Sponsor - Keough Title apvd - to House 03/16 To enrol 03/17 Rpt enrol - Sp signed 03/18 Pres signed - To Governor 03/23 Governor signed Session Law Chapter 234 Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 474 BY TRANSPORTATION AND DEFENSE COMMITTEE 1 AN ACT 2 RELATING TO MOTOR CARRIER REGISTRATION AND AUDIT GUIDELINES; AMENDING SECTION 3 49-202, IDAHO CODE, TO PROVIDE PROPER TERMINOLOGY AND TO MAKE A TECHNICAL 4 CORRECTION; AND AMENDING SECTION 49-439, IDAHO CODE, TO TRANSFER MOTOR 5 CARRIER AUDIT FUNCTIONS FROM THE IDAHO TRANSPORTATION DEPARTMENT TO THE 6 STATE TAX COMMISSION, TO REMOVE RULEMAKING AUTHORITY OF THE IDAHO TRANS- 7 PORTATION DEPARTMENT WITH RESPECT TO AUDIT PROCEDURES, TO AUTHORIZE THE 8 STATE TAX COMMISSION TO GENERATE A NOTICE OF DEFICIENCY AND TO DEVELOP A 9 METHODOLOGY TO CALCULATE SUCH A NOTICE, TO PROVIDE THAT THE STATE TAX COM- 10 MISSION SHALL PROVIDE THE CARRIER WITH NOTICE AND OPPORTUNITY TO USE THE 11 APPEALS PROCESS PRIOR TO SUSPENSION OF REGISTRATION, TO PROVIDE THAT AN 12 APPEAL OF A NOTICE OF DEFICIENCY SHALL BE IN ACCORDANCE WITH CERTAIN 13 ESTABLISHED PROCEDURES OF THE STATE TAX COMMISSION, AND TO PROVIDE THAT 14 THE DEPARTMENT SHALL NOT REREGISTER OR PERMIT A VEHICLE TO OPERATE ON A 15 TRIP PERMIT UNTIL ALL AUDIT ASSESSMENTS, PENALTIES AND INTEREST HAVE BEEN 16 PAID. 17 Be It Enacted by the Legislature of the State of Idaho: 18 SECTION 1. That Section 49-202, Idaho Code, be, and the same is hereby 19 amended to read as follows: 20 49-202. DUTIES OF DEPARTMENT. (1) All registration and driver's license 21 records in the office of the department shall be public records and open to 22 inspection by the public during normal business hours, except for those 23 records declared by law to be for the confidential use of the department, or 24 those records containing personal information subject to restrictions or con- 25 ditions regarding disclosure. If the department has contracted for a service 26 to be provided by another entity, an additional fee shall be charged by that 27 contractor whether the service is rendered during normal business hours, other 28 than normal business hours or on weekends. 29 (2) In addition to other fees required by law to be collected by the 30 department, the department shall collect the following: 31 (a) For certifying a copy of any record pertaining to any vehicle 32 license, any certificate of title, or any driver's license ......... $8.00 33 (b) For issuing every Idaho certificate of title .................. $8.00 34 (c) For furnishing a duplicate copy of any Idaho certificate of title 35 .................................................................... $8.00 36 (d) For issuance or transfer of every certificate of title on a new or 37 used vehicle or other titled vehicle in an expedited manner (rush titles), 38 in addition to any other fee required by this section ............. $15.00 39 (e) For recording a transitional ownership document, in addition to any 40 other fee required by this section ................................ $15.00 41 (f) For furnishing a replacement of any receipt of registration ... $3.00 42 (g) For furnishing copies of registration or ownership of motor vehicles 43 or driver's license records, per vehicle registration, accident report 2 1 records, title or per driver's license record ...................... $4.00 2 Additional contractor fee, not to exceed ........................... $4.00 3 (h) For services in searching files of vehicle or other registrations, 4 vehicle titles, or driver's licenses per hour ..................... $10.00 5 (i) Placing "stop" cards in vehicle registration or title files, each 6 ................................................................... $12.00 7 (j) For issuance of an assigned or replacement vehicle identification 8 number (VIN) ...................................................... $10.00 9 (k) For a vehicle identification number (VIN) inspection whether con- 10 ducted by a city or county peace officer or any other peace officer or 11 designated agent of the state of Idaho, per inspection ............. $3.00 12 (l) For all replacement registration stickers, each ............... $1.00 13 (m) For issuing letters of temporary vehicle clearance to Idaho based 14 motor carriers .................................................... $10.00 15 (n) For all sample license plates, each .......................... $12.00 16 (o) For filing release of liability statements .................... $2.00 17 (p) For safety and insurance programs for each vehicle operated by a 18 motor carrier ...................................................... $2.00 19 A lesser amount may be set by rule of the board. 20 (3) The fees required in this section shall not apply when the service is 21 furnished to any federal, state, county or city peace officer when such ser- 22 vice is required in the performance of their duties as peace officers. 23 (4) The department may enter into agreements with private companies or 24 public entities to provide the services for which a fee is collected in sub- 25 section (2)(g) of this section. Such private contractor shall collect the fee 26 prescribed and remit the fee to the department. The contractor shall also col- 27 lect and retain the additional fee charged for his services. 28 (5) (a) The department shall pay three dollars ($3.00) of the fee col- 29 lected by a county assessor or other agent of the department as provided 30 in subsection (2)(a) through (f) of this section, and four dollars ($4.00) 31 as provided in subsection (2)(g) of this section, to the county assessor 32 or sheriff of the county or agent collecting such fee, which shall be 33 deposited with the county treasurer and credited to the county current 34 expense fund. The remainder of the fees collected as provided in that sub- 35 section shall be paid by the department to the state treasurer and placed 36 in the state highway fund. 37 (b) The fee collected under subsection (2)(k) of this section for a VIN 38 inspection shall be placed in the city general fund if conducted by a city 39 peace officer, in the county current expense fund if conducted by a county 40 peace officer, shall be retained by the special agent authorized to per- 41 form the inspection, or paid to the state treasurer and placed to the 42 credit of the Idaho state police if conducted by the Idaho state police or 43 in the state highway fund if conducted by the department. 44 (c) The fee collected under subsection (2)(p) of this section for motor 45 carriers shall be paid by the department to the state treasurer and placed 46 in the state highway fund. The director and the director of the Idaho 47 state police shall jointly determine the amount to be transferred from the 48 state highway fund to the law enforcement fund for motor carrier safety 49 programs conducted by the Idaho state police pursuant to the provisions of 50 section 67-2901A, Idaho Code. 51 (6) The department as often as practicable may provide to law enforcement 52 agencies the record of suspensions and revocations of driver licenses via the 53 Idaho law enforcement telecommunications system (ILETS). 54 (7) The department shall provide the forms prescribed in chapter 5 of 55 this title, shall receive and file in its office in Ada county, all instru- 3 1 ments required in chapter 5 of this title to be filed with the department, 2 shall prescribe a uniform method of numbering certificates of title, and main- 3 tain in the department indices for such certificates of title. All indices 4 shall be by motor or identification number and alphabetical by name of the 5 owner. 6 (8) The department shall file each registration received under a distinc- 7 tive registration number assigned to the vehicle and to the owner thereof. 8 (9) The department shall not renew a driver's license or identification 9 card when fees required by law have not been paid or where fees for past 10 periods are due, owing and unpaid including insufficient fund checks, until 11 those fees have been paid. 12 (10) The department shall not grant the registration of a vehicle when: 13 (a) The applicant is not entitled to registration under the provisions of 14 this title; or 15 (b) The applicant has neglected or refused to furnish the department with 16 the information required in the appropriate form or reasonable additional 17 information required by the department; or 18 (c) The fees required by law have not been paid, or where fees for past 19 registration periods are due, owing and unpaid including insufficient fund 20 checks. 21 (11) The department or its authorized agents have the authority to request 22 any person ,to submit to medical, vision, highway, or written examinations, to 23 protect the safety of the public upon the highways. The department or its 24 authorized agents may exercise such authority based upon evidence which may 25 include, but is not limited to, observations made. 26 (12) The department shall revoke the registration of any vehicle: 27 (a) Which the department shall determine is unsafe or unfit to be oper- 28 ated or is not equipped as required by law; 29 (b) Whenever the person to whom the registration card or registration 30 plate has been issued shall make or permit to be made any unlawful use of 31 the same or permit their use by a person not entitled thereto; 32 (c) For any violation of vehicle registration requirements by the owner 33 or operator in the current or past registration periods; 34 (d) Whenever a motor carrier requests revocation, or whenever an inter- 35 state carrier's federal operating authority has been revoked; 36 (e) For failure of the owner or operator to file the reports required or 37 nonpayment of audit assessments or fees assessed against the owner by the 38 department or the state tax commission pursuant to audit under the provi- 39 sions of section 49-439, Idaho Code; 40 (f) Identified by any city or county administering a program established 41 by ordinance for the inspection and readjustment of motor vehicles (which 42 program is part of an approved state implementation plan adopted by both 43 the state and federal governments under 42 USC section 7410) as having 44 failed to comply with an ordinance requiring motor vehicle emission 45 inspection and readjustment; provided that no vehicle shall be identified 46 to the department under this subsection (f) unless: 47 (i) The city or county certifies to the department that the owner 48 of the motor vehicle has been given notice and had the opportunity 49 for a hearing concerning compliance with the ordinance and has 50 exhausted all remedies and appeals from any determination made at 51 such hearing; and 52 (ii) The city or county reimburses the department for all direct 53 costs associated with the registration revocation procedure. 54 (13) The department shall not reregister or permit a vehicle to operate on 55 a special trip permit until all fees, penalties and interest have been paid. 4 1 (14) The department shall institute educational programs, demonstrations, 2 exhibits and displays. 3 (15) The department shall cancel a driver's license or identification card 4 when fees required by law have not been paid or where fees are due, owing and 5 unpaid including insufficient fund checks, until those fees have been paid. 6 (16) The department shall examine persons and vehicles by written, oral, 7 vision and skills tests without compulsion except as provided by law. 8 (17) The department shall employ expert and special help as needed in the 9 department. 10 (18) The department shall compile accident statistics and disseminate 11 information relating to those statistics. 12 (19) The department shall cooperate with the United States in the elimina- 13 tion of road hazards, whether of a physical, visual or mental character. 14 (20) The department shall place and maintain traffic-control devices, con- 15 forming to the board's manual and specifications, upon all state highways as 16 it shall deem necessary to indicate and to carry out the provisions of this 17 title or to regulate, warn, or guide traffic. No local authority shall place 18 or maintain any traffic-control device upon any highway under the jurisdiction 19 of the department except by the latter's permission, except where the duly 20 elected officials of an incorporated city have established speed limits lower 21 than those set by the department on the portion of state highways, excluding 22 controlled-access and interstate highways, that pass through residential, 23 urban or business districts within the jurisdiction of the incorporated city. 24 The placement and maintenance of such a traffic-control device by a local 25 authority shall be made according to the board's manual and specifications for 26 a uniform system of traffic-control devices. 27 (21) The department may conduct an investigation of any bridge or other 28 elevated structure constituting a part of a highway, and if it shall find that 29 the structure cannot with safety to itself withstand vehicles traveling at a 30 speed otherwise permissible under this title, shall determine and declare the 31 maximum speed of vehicles which the structure can safely withstand, and shall 32 cause or permit suitable signs stating the maximum speed to be erected and 33 maintained before each end of the structure. 34 (22) Whenever the department shall determine on the basis of an engineer- 35 ing and traffic investigation that slow speeds on any highway or part of a 36 highway impede the normal and reasonable movement of traffic, the department 37 may determine and declare a minimum speed limit below which no person shall 38 drive a vehicle except when necessary for safe operation or in compliance with 39 law, and that limit shall be effective when posted upon appropriate fixed or 40 variable signs, except in cases where the duly elected officials of an incor- 41 porated city have established speed limits lower than those set by the depart- 42 ment on portions of state highways, excluding controlled-access and interstate 43 highways, that pass through residential, urban or business districts within 44 the jurisdiction of the incorporated city. 45 (23) The department shall regulate or prohibit the use of any controlled- 46 access highway by any class or kind of traffic which is found to be incompati- 47 ble with the normal and safe movement of traffic. 48 (24) The department shall erect and maintain traffic-control devices on 49 controlled-access highways on which any prohibitions are applicable. 50 (25) Wherever a highway crosses one (1) or more railroads at grade, the 51 department or local authorities within their respective jurisdictions shall 52 place and maintain stop signs, directing vehicular traffic approaching the 53 crossing to come to a full stop prior to entering the crossing at all rail- 54 road crossings where electric or mechanical warning signals do not exist. 55 Placement of these stop signs shall be mandatory except when in the determina- 5 1 tion of public highway agencies the existence of stop signs at a given cross- 2 ing would constitute a greater hazard than their absence based on a recognized 3 engineering study. 4 Nothing in this subsection shall be construed as granting immunity to any 5 railroad company as to liability, if any, for an accident which might occur at 6 a crossing where stop signs are erected and in place, but liability, if any, 7 shall be determined as provided by law. Liability on the part of governmental 8 authorities on account of absence of any stop sign at a crossing shall be 9 determined as provided by law. 10 (26) The department and local authorities are authorized to determine 11 those portions of any highway under their respective jurisdictions where over- 12 taking and passing or driving on the left side of the roadway would be espe- 13 cially hazardous and may by appropriate signs or markings on the roadway indi- 14 cate the beginning and end of those zones and when signs or markings are in 15 place and clearly visible to an ordinarily observant person, every driver of a 16 vehicle shall obey those directions. 17 (27) The department and local authorities in their respective jurisdic- 18 tions may in their discretion issue special permits authorizing the operation 19 upon a highway of traction engines or tractors having movable tracks with 20 transverse corrugations upon the periphery of the movable tracks or farm trac- 21 tors or other farm machinery, the operation of which upon a highway would 22 otherwise be prohibited under this title or title 40, Idaho Code. 23 (28) The department and local highway authorities within their respective 24 jurisdictions may place official traffic-control devices prohibiting, limiting 25 or restricting the stopping, standing or parking of vehicles on any highway 26 where such stopping, standing or parking is dangerous to those using the high- 27 way or where the stopping, standing or parking of vehicles unduly interferes 28 with the free movement of traffic thereon. 29 (29) On any informational material printed after July 1, 1995, by or at 30 the order of the department and distributed to counties, school districts or 31 individuals for the purpose of assisting a person to successfully pass a dri- 32 ver's license test, the department shall include material about the state's 33 open range law and responsibilities, liabilities and obligations of drivers 34 driving in the open range. 35 SECTION 2. That Section 49-439, Idaho Code, be, and the same is hereby 36 amended to read as follows: 37 49-439. AUDIT GUIDELINES. (1) The state tax commission on behalf of the 38 department may audit an owner of motor vehicles subject to fees pursuant to 39 this chapter. once every four (4) years unless probable cause, as defined by40 department rule, exists that the owner has not paid fees due pursuant to this41 chapter or has underreported or underpaid fees due pursuant to this chapter.42 An owner selected for audit more frequently than the four (4) years may have43 the audit selection reviewed for determination of the absence of probable44 cause by the district court of the county where the owner resides or where the45 owner's place of business is located or in Ada County, at the discretion of46 the owner. The department shall promulgate rules outlining its procedures for47 audit selection, assignment and inventory. Any owner of motor vehicles who48 has been subjected to an audit by the department that has not been in compli-49 ance with the provisions of this section or rules promulgated pursuant thereto50 may recover attorney's fees and costs as may be determined by a court or may51 receive his attorney's fees and costs if granted, all or in part, by the52 director all in accordance with section 12-117, Idaho Code.53 (2) Every owner whose fees are computed as specified in section 49-434 or 6 1 49-435, Idaho Code, except those registering under subsection (8)(c) of sec- 2 tion 49-434, Idaho Code, for over fifty thousand (50,000) miles driven, shall 3 maintain records and permit the departmentstate tax commission to inspect the 4 records upon request to substantiate that the actual miles traveled, if using 5 a mileage schedule in subsection (8)(c) of section 49-434, Idaho Code, are 6 less than the maximum mileage schedule. 7 (3) When the records are maintained outside this state by owners engaged 8 in transportation in this state, the owner shall reimburse the department9 state tax commission for reasonable expenses incurred by the departmentstate 10 tax commission in makingconducting audits of those records and accounts at 11 the out-of-state location. The owner or the departmentstate tax commission 12 may request that the records be presented at a place within the state desig- 13 nated by the departmentstate tax commission. The records must be presented by 14 a representative of the owner who is familiar with the records and who is 15 responsible for the safekeeping of the records. 16 (4) Every owner is required to maintain records for the current year and 17 the three (3) years immediately preceding. If an assessment has been made, 18 such feesaudit assessment may be collected by a proceeding in court within a 19 period of three (3) years after the assessment or a final order entered pursu- 20 ant to subsection (7) of this section. 21 (5) An owner who fails to maintain records as required by the provisions 22 of this section may have the registration of all vehicles registered under 23 section 49-434 or 49-435, Idaho Code, suspended until such time as adequate 24 records as required by the provisions of this section are provided. In the 25 event that the owner does not produce records, the departmentstate tax com- 26 mission may assess a feegenerate a notice of deficiency based on an estimate 27 of the operation. The departmentstate tax commission shall promulgate rules28 specifying thedevelop a methodology to be used to assess a feecalculate a 29 notice of deficiency based on an estimate of the operation. That methodology 30 shall be in accordance with the international registration plan and interna- 31 tional fuel tax agreement guidelines. 32 (6) The state tax commission shall provide the carrier with notice of 33 deficiency and the opportunity to use the appeals process prior to a suspen- 34 sion. An owner may contest a notice of deficiency made by the state tax com- 35 mission within thirty (30) days from receipt of the notice by filing an appeal 36 in accordance with sections 63-3045, 63-3045B, 63-3047, 63-3048 and 63-3049, 37 Idaho Code. 38 (7) An owner, as identified by the state tax commission, who fails to pay 39 any feesaudit assessment due is subject to suspension of vehicle registra- 40 tions. A reinstatement fee of forty dollars ($40.00) shall be imposed in addi- 41 tion to a penalty of ten percent (10%) of the amount of feeaudit assessment 42 determined to be due, plus interest of one percent (1%) of the amount of the 43 feeaudit assessment due for each month or fraction thereof after the original 44 registration fee became due. An order suspending the vehicle registration 45 shall be mailed to the owner by the department. The suspension shall be can- 46 celed if the payment due is made, plus penalty and interest, along with athe 47 reinstatement fee of forty dollars ($40.00) per carrier within fifteen (15) 48 days after receipt of the suspension order. The department may remit all or49 any part of the penalty and interest if satisfied that the delay was excus-50 able. The department shall promulgate rules specifying when the penalty may be51 held in abeyance or be forgiven.The reinstatement fees shall be deposited to 52 the state highway account. The owner shall have the right to appeal the sus-53 pension by petitioning the department for a hearing within ten (10) days after54 receipt of the suspension order. If the suspension is subsequently canceled55 pursuant to the appeal, the reinstatement fee shall not be dueThe department 7 1 shall not reregister or permit a vehicle to operate on a trip permit until all 2 audit assessments, penalties and interest have been paid. 3 (7) An owner may contest an assessment made by the department within4 thirty (30) days from receipt of the assessment by filing an appeal with the5 department. Upon receipt of an appeal, the director or his authorized repre-6 sentative shall schedule an informal conference between the owner and a repre-7 sentative of the department. The informal conference must be conducted within8 twenty (20) days from the date of receipt of notice of intent to appeal by the9 owner. The owner and the representative of the department shall reduce all10 conclusions, agreements and decisions to writing and the written report of the11 results of that conference shall be provided to the director within ten (10)12 days. If the results of the informal conference are not satisfactory to the13 owner, he may continue with the appeal by informing the director in writing,14 and the director or his authorized representative shall appoint a hearing15 officer to conduct a contested case hearing in accordance with chapter 52,16 title 67, Idaho Code. The hearing officer may subpoena witnesses and evidence17 and administer oaths. The hearing officer shall prepare written findings of18 fact and conclusions of law for the director or his authorized representative.19 Upon receipt of findings of fact and conclusions of law, the director or his20 authorized representative shall issue a final order affirming, modifying or21 reversing the original assessment. All final orders rendered by the director22 or his authorized representative shall be appealable in accordance with chap-23 ter 52, title 67, Idaho Code.
STATEMENT OF PURPOSE RS 13491 This legislation will amend Section 49-439, Idaho Code, to allow transfer of the ITD Motor Carrier Services Audit Unit to the State Tax Commission (STC) in FY05. The audit unit is currently being transferred using a Memorandum of Understanding (MOU) for FY '04. Legislation is needed to permanently transfer these four auditors and one half time clerical position to STC as well as the appropriation for related operating expenses. Additionally, the appeal and collection processes of the two departments should be aligned. FISCAL IMPACT The Fuel Tax function at the State Tax Commission is funded through dedicated highway funds. The permanent program transfer is reflected as a base reduction in the Idaho Transportation Department's FY05 Appropriation Request. The State Tax Commission has reflected this program transfer as an enhancement in their FY05 Appropriation Request. Their total enhancement is $14,900 higher than ITD's base reduction, due to the reclassification, and subsequent upward pay grade adjustment, of 3 of the 4 audit positions, in order to align those positions with existing STC audit staff classifications. The transfer of the audit positions is shown as a reduction to ITD's FY05 appropriation request in the following amounts: Personnel $223,100 Operating $ 29,400 Total $252,500 CONTACT Name: Jennifer Finke Agency: Idaho Transportation Phone: 334-8608 Statement of Purpose/Fiscal Impact H 474