2004 Legislation
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HOUSE BILL NO. 607 – Commerce & Labor Dept created

HOUSE BILL NO. 607

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H0607......................................................by STATE AFFAIRS
DEPARTMENT OF COMMERCE AND LABOR - Amends and repeals existing law to
accomplish the combination of the Department of Labor and the Department of
Commerce into a single department of state government; to clarify the
powers and duties of the new Department of Commerce and Labor and the
Director of the Department of Commerce and Labor; to provide for
continuation of delivery of existing services; to provide name changes in
certain statutes; and to provide that references to either of the previous
departments constitute references to the new Department of Commerce and
Labor.
                                                                        
02/03    House intro - 1st rdg - to printing
02/04    Rpt prt - to St Aff
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 62-5-3
      AYES -- Andersen, Barraclough, Bauer, Bayer, Bedke, Bell, Black,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy,
      Deal, Denney, Douglas, Edmunson, Ellsworth, Field(18), Field(23),
      Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg(Nonini),
      Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
      Miller, Mitchell, Moyle, Nielsen, Pasley-Stuart, Raybould, Ridinger,
      Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer,
      Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass,
      Trail, Wills, Wood
      NAYS -- Barrett, Clark, Eberle, Kulczyk, Naccarato
      Absent and excused -- Eskridge, Stevenson, Mr. Speaker
    Floor Sponsors - Deal & Skippen
    Title apvd - to Senate
02/18    Senate intro - 1st rdg - to St Aff
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 32-1-2
      AYES -- Andreason(Andreason), Bailey, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Gannon, Geddes, Goedde,
      Hill, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Sorensen,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- Davis
      Absent and excused -- Brandt, Ingram
    Floor Sponsor - President Pro Tem Geddes
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/15    Pres signed
03/16    To Governor
03/26    Governor signed
         Session Law Chapter 346
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 607
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE CREATION OF THE IDAHO DEPARTMENT OF COMMERCE AND LABOR; AMEND-
  3        ING THE CHAPTER HEADING OF CHAPTER 47, TITLE 67, IDAHO CODE,  TO  INCORPO-
  4        RATE  THE DEPARTMENT OF LABOR IN THE DEPARTMENT OF COMMERCE; AMENDING SEC-
  5        TION 67-4701, IDAHO CODE, TO INCORPORATE THE DEPARTMENT OF  LABOR  IN  THE
  6        DEPARTMENT  OF  COMMERCE;  REPEALING SECTION 67-4702, IDAHO CODE; AMENDING
  7        SECTION 72-1333, IDAHO  CODE,  TO  REDESIGNATE  THE  SECTION,  TO  PROVIDE
  8        AUTHORITY  AND  DUTIES  OF  THE DIRECTOR OF THE DEPARTMENT OF COMMERCE AND
  9        LABOR, AND TO PROVIDE THAT THE DIRECTOR IS THE SUCCESSOR IN LAW TO POWERS,
 10        DUTIES AND OBLIGATIONS OF  HIS  PREDECESSORS;  AMENDING  SECTION  67-4703,
 11        IDAHO  CODE,  TO  INCORPORATE THE DEPARTMENT OF LABOR IN THE DEPARTMENT OF
 12        COMMERCE; AMENDING SECTION 67-4704, IDAHO CODE, TO  DELETE  REFERENCES  TO
 13        THE  DEPARTMENT  OF  COMMERCE  AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
 14        SECTION 67-4708, IDAHO CODE, TO PROVIDE APPLICATION OF PUBLIC RECORDS PRO-
 15        VISIONS; AMENDING SECTION 59-904, IDAHO CODE, TO PROVIDE A SINGLE  DEPART-
 16        MENT  OF COMMERCE AND LABOR; AMENDING SECTION 67-2402, IDAHO CODE, TO PRO-
 17        VIDE A SINGLE DEPARTMENT OF COMMERCE AND LABOR; AMENDING SECTION  67-2406,
 18        IDAHO CODE, TO PROVIDE THAT THERE SHALL BE A DIRECTOR OF THE DEPARTMENT OF
 19        COMMERCE  AND  LABOR;  AMENDING  SECTION 72-1318, IDAHO CODE, TO PROVIDE A
 20        CORRECT CODE REFERENCE AND TO FURTHER DEFINE TERMS; AND  AMENDING  SECTION
 21        72-1347B,  IDAHO CODE, TO GOVERN EXPENDITURES OF THE WORKFORCE DEVELOPMENT
 22        TRAINING FUND.
                                                                        
 23    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 24        SECTION 1.  That the Heading of Chapter 47, Title 67, Idaho Code, be,  and
 25    the same is hereby amended to read as follows:
                                                                        
 26                                      CHAPTER 47
 27                           DEPARTMENT OF COMMERCE AND LABOR
                                                                        
 28        SECTION  2.  That  Section 67-4701, Idaho Code, be, and the same is hereby
 29    amended to read as follows:
                                                                        
 30        67-4701.  DEPARTMENT OF COMMERCE AND LABOR CREATED. There is  hereby  cre-
 31    ated  in  the executive branch of the government, a department of commerce and
 32    labor, hereinafter referred to as the department, which shall have the duties,
 33    powers and authorities hereinafter provided.
 34        Whenever in Idaho Code or elsewhere, reference is made to  the  department
 35    of  commerce  or  the department of labor, or their predecessor departments or
 36    agencies, it shall mean and hereafter be the department of commerce and labor.
                                                                        
 37        SECTION 3.  That Section 67-4702, Idaho Code, be, and the same  is  hereby
 38    repealed.
                                                                        
 39        SECTION  4.  That  Section 72-1333, Idaho Code, be, and the same is hereby
                                                                        
                                           2
                                                                        
  1    amended to read as follows:
                                                                        
  2        72-1333 67-4702.  DEPARTMENT OF LABOR  --  AUTHORITY  AND  DUTIES  OF  THE
  3    DIRECTOR.  (1) The director of the department of commerce and labor, hereafter
  4    the director, shall administer the provisions of this chapter, the  employment
  5    security  law, chapter 13, title 72, Idaho Code, the minimum wage law, chapter
  6    15, title 44, Idaho Code, the provisions of chapter 6, title 45,  Idaho  Code,
  7    relating  to  claims for wages, the provisions of section 44-1812, Idaho Code,
  8    relating to minimum medical and health standards for paid firefighters, and to
  9    perform such other duties relating to commerce, labor and  workforce  develop-
 10    ment as may be imposed upon him by law. The director shall be the successor in
 11    law  to  the office enumerated in section 1, article XIII, of the constitution
 12    of the state of Idaho. The director shall have the authority to  employ  indi-
 13    viduals,  make  expenditures,  require  reports,  make investigations, perform
 14    travel and take other actions deemed necessary. The  director  shall  organize
 15    the  "department  of  labor" which is hereby created, and which shall, for the
 16    purposes of section 20, article IV, of the constitution of the state of Idaho,
 17    be an executive department of the state government. The director shall have an
 18    official seal which shall be judicially noticed.
 19        (2)  The director shall have the authority pursuant to chapter  52,  title
 20    67,  Idaho  Code,  to adopt, amend, or rescind rules as he deems necessary for
 21    the proper performance of all duties imposed upon him by law.
 22        (3)  Subject to the provisions of chapter 53, title 67,  Idaho  Code,  the
 23    director  is  authorized  and  directed  to provide for a merit system for the
 24    department covering all persons, except the director, two  (2)  deputy  direc-
 25    tors,  the  division  administrators,  and   two five (25) exempt positions to
 26    serve at the pleasure of the director.
 27        (4)  The director shall make recommendations for amendments to the employ-
 28    ment security law and other laws he  is  charged  to  implement  as  he  deems
 29    proper.
 30        (5)  The director shall have all the powers and duties as may have been or
 31    could  have been exercised by his predecessors in law and he shall be the suc-
 32    cessor in law to all contractual obligations entered into by his  predecessors
 33    in law.
                                                                        
 34        SECTION  5.  That  Section 67-4703, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        67-4703.  POWERS AND DUTIES. The department of commerce  and  labor  shall
 37    have  the power and it shall be its duty to engage in advertising the state of
 38    Idaho, its resources, both developed and undeveloped,  its  tourist  resources
 39    and  attractions,  its  agricultural,    mining,  lumbering  and manufacturing
 40    resources, its health conditions and advantages, its  scenic  beauty  and  its
 41    other  attractions  and advantages; and in general either directly, indirectly
 42    or by contract do anything and take any action which will promote  and  adver-
 43    tise  the  resources and products of the state of Idaho, develop its resources
 44    and industries, promote tourist travel to and within the state of  Idaho,  and
 45    further the welfare and prosperity of its citizens.
 46        The  department  shall  also  have the following duties when it deals with
 47    promoting economic development and tourism within the state:
 48        (1)  Survey and investigate the social, economic and physical resources of
 49    the state, including land, water, minerals, facilities for power,  transporta-
 50    tion,  communications,  recreation,  health, education and other resources and
 51    facilities; endeavor to aid the legislature and the citizens of the  state  of
 52    Idaho  in  formulating  a program for the development and utilization of these
                                                                        
                                           3
                                                                        
  1    resources and facilities, and for balancing our agricultural, timber and  min-
  2    ing  economy  with  industrial  capacity.  It  shall  cooperate with local and
  3    regional agencies within the state. It shall cooperate with like  agencies  of
  4    other states, with agencies maintained by private persons or corporations, and
  5    with  agencies  established  or  employed  by the United States to promote the
  6    development of the country and the welfare of its people.
  7        (2)  To develop and promote a comprehensive international  marketing  plan
  8    for Idaho's products.
  9        (3)  To  collect and compile reliable data for general dissemination which
 10    will tend to the development of the state of Idaho by inducing people and cap-
 11    ital to come within our borders.
 12        (4)  Keep accurate records and preserve all data collected by it, and from
 13    time to time prepare and submit to the governor and the legislature,  reports,
 14    programs, recommendations and plans for the comprehensive, long-range develop-
 15    ment,  conservation  and  use  of  all the resources of the state of Idaho. It
 16    shall make such special investigations as to resources, facilities, and  other
 17    matters as may be required by the governor or the legislature.
 18        (5)  Coordinate  those  activities  of  local,  state, federal and private
 19    agencies and departments when they deal with the promotion of Idaho's economic
 20    resources.
 21        (6)  To require and receive from the  various  executive  departments  and
 22    public  officials of the state of Idaho such information as may be required by
 23    the division to enable it to fulfill its functions and carry out the  purposes
 24    of this act.
 25        (7)  Administer  and  perform  any  other  related functions or activities
 26    assigned by the governor or the legislature.
 27        (8)  Enter into interagency agreements with other state agencies in devel-
 28    oping economic and community plans and programs.
 29        (9)  Provide technical assistance to other state agencies upon request.
 30        (10) Contract with universities, consultants and other public and  private
 31    agencies to develop plans and programs.
 32        (11) Serve  as  a clearinghouse for information, data, and other materials
 33    which may be used in developing Idaho's economy.
 34        (12) Prepare a comprehensive economic development strategy.
 35        (13) Collect and compile reliable economic data for general dissemination.
 36        (14) Petition for and receive moneys such as grants or gifts, to  be  used
 37    for state or local planning and economic development activities.
                                                                        
 38        SECTION  6.  That  Section 67-4704, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
                                                                        
 40        67-4704.  ADVISORY COUNCIL -- APPOINTMENT OF  MEMBERS  --  QUALIFICATIONS.
 41    There  shall  be  an  advisory council in the department of commerce to advise
 42    with the department in the preparation and execution of  plans,  projects  and
 43    programs  in  the  furtherance  of  the  power and duties conferred by section
 44    67-4703, Idaho Code. The Ddirector of the department shall consult, confer and
 45    advise with the advisory council in connection with all  decisions  concerning
 46    the  administration  and  development of such plans, projects and programs. of
 47    the department. The approval of the advisory council shall be a condition pre-
 48    cedent to the undertaking of action in the implementation of such plans, proj-
 49    ects and programs by the department.  The advisory council  shall  consist  of
 50    six  (6)  persons, who shall be appointed by the governor, and who shall serve
 51    for three (3) year terms, with two (2) members' terms expiring each year. They
 52    shall serve and shall be compensated as provided by section  59-509(b),  Idaho
 53    Code. One (1) person shall be appointed to represent each of the six (6) plan-
                                                                        
                                           4
                                                                        
  1    ning  regions of the state. Membership shall be divided between political par-
  2    ties.
                                                                        
  3        SECTION 7.  That Section 67-4708, Idaho Code, be, and the same  is  hereby
  4    amended to read as follows:
                                                                        
  5        67-4708.  BUSINESS  RECORDS. All papers, records, correspondence, communi-
  6    cations and proceedings of the Idaho  department  of  commerce,  its  advisory
  7    board,  and  the  Idaho travel council shall be open and public provided, how-
  8    ever, that bBusiness records and information submitted to  the  department  by
  9    business  clients shall be subject to disclosure according to chapter 3, title
 10    9, Idaho Code. These records and information shall  include  financial  state-
 11    ments,  employment/employee records, loan agreements, the method of financing,
 12    the source and terms of financing, business and individual tax returns, insur-
 13    ance policies, bank statements, financial institution letters  and  documents,
 14    sales  records, inventory lists, collateral agreements, and other documents or
 15    information the business declares to be, and marked "confidential  --  propri-
 16    etary information."
 17        The  exemption  from  disclosure  as provided in chapter 3, title 9, Idaho
 18    Code, shall also be extended to and be consistent with  the  requirements  for
 19    confidentiality  for  business information included in any application for the
 20    various federal grant, loan or loan guarantee programs, various  federal  pro-
 21    curement  contracting  programs, and other similar federal business assistance
 22    programs in which the Idaho department of commerce is a participant.
 23        This exemption from disclosure shall also apply  to  business  information
 24    and  records  associated  with industrial revenue bonds, department efforts to
 25    assist businesses with international marketing,  industrial  relocation  proj-
 26    ects,  and other business development projects in which the department extends
 27    assistance.
                                                                        
 28        SECTION 8.  That Section 59-904, Idaho Code, be, and the  same  is  hereby
 29    amended to read as follows:
                                                                        
 30        59-904.  STATE  OFFICES  --  VACANCIES,  HOW FILLED AND CONFIRMED. (a) All
 31    vacancies in any state office, and in the supreme and district courts,  unless
 32    otherwise provided for by law, shall be filled by appointment by the governor.
 33    Appointments  to fill vacancies pursuant to this section shall be made as pro-
 34    vided in subsections (b), (c), (d), (e), and (f) of this section,  subject  to
 35    the limitations prescribed in those subsections.
 36        (b)  Nominations  and  appointments  to  fill  vacancies  occurring in the
 37    office of lieutenant governor, state controller, state treasurer, superintend-
 38    ent of public instruction, attorney general and secretary of  state  shall  be
 39    made by the governor, subject to the advice and consent of the senate, for the
 40    balance of the term of office to which the predecessor of the person appointed
 41    was elected.
 42        (c)  Nominations and appointments to and vacancies in the following listed
 43    offices shall be made or filled by the governor subject to the advice and con-
 44    sent  of the senate for the terms prescribed by law, or in case such terms are
 45    not prescribed by law, then to serve at the pleasure of the governor:
 46        Director of the department of administration,
 47        Director of the department of finance,
 48        Director of the department of insurance,
 49        Director, department of agriculture,
 50        Director of the department of labor,
 51        Director of the department of water resources,
                                                                        
                                           5
                                                                        
  1        Director of the Idaho state police,
  2        Director of the department of commerce and labor,
  3        Director of the department of environmental quality,
  4        Director of the department of juvenile corrections,
  5        Executive director of the commission of pardons and parole,
  6        The state historic preservation officer,
  7        The administrator of the division of human resources,
  8        Member of the state tax commission,
  9        Members of the board of regents of the university of Idaho and  the  state
 10        board of education,
 11        Members of the Idaho water resources board,
 12        Members of the state fish and game commission,
 13        Members of the Idaho transportation board,
 14        Members of the state board of health and welfare,
 15        Members of the board of environmental quality,
 16        Members of the board of directors of state parks and recreation,
 17        Members of the board of correction,
 18        Members of the industrial commission,
 19        Members of the Idaho public utilities commission,
 20        Members of the Idaho personnel commission,
 21        Members of the board of directors of the Idaho state retirement system,
 22        Members of the board of directors of the state insurance fund,
 23        Members of the commission of pardons and parole.
 24        (d)  Appointments  made  by  the  state board of land commissioners to the
 25    office of director, department of lands, and appointments  to  fill  vacancies
 26    occurring  in  those  offices shall be submitted by the president of the state
 27    board of land commissioners to the senate for the advice and  consent  of  the
 28    senate in accordance with the procedure prescribed in this section.
 29        (e)  Appointments  made  pursuant  to  this section while the senate is in
 30    session  shall be submitted to the senate forthwith for the advice and consent
 31    of that body. The appointment so made and submitted  shall  not  be  effective
 32    until  the approval of the senate has been recorded in the journal of the sen-
 33    ate. Appointments made pursuant to this section while the  senate  is  not  in
 34    session  shall  be  effective  until the appointment has been submitted to the
 35    senate for the advice and consent of the senate.  Should  the  senate  adjourn
 36    without  granting  its  consent to such an interim appointment the appointment
 37    shall thereupon become void and a vacancy in the office to which the  appoint-
 38    ment was made shall exist.
 39        All  appointments  made pursuant to subsection (c) of this section, except
 40    those appointments for which a term of office is fixed by law, shall terminate
 41    at the expiration of any gubernatorial term. Appointments to fill  the  vacan-
 42    cies  thus  created  by  the  expiration of the term of office of the governor
 43    shall be forthwith submitted to the senate for the advice and consent of  that
 44    body, and when so submitted shall be as expeditiously considered as possible.
 45        Upon  receipt  of an appointment in the senate for the purpose of securing
 46    the advice and consent of the senate, the appointment shall be referred by the
 47    presiding officer to the appropriate committee of the senate for consideration
 48    and report prior to action thereon by the full senate.
 49        (f)  It is the intent of the legislature that the provisions of this  sec-
 50    tion  as  amended  by  this chapter shall not apply to appointments which have
 51    been made prior to the effective date of  this  chapter.  It  is  the  further
 52    intent  of  the legislature that the provisions of this section shall apply to
 53    the offices listed in this section and to any office created by law or  execu-
 54    tive order which succeeds to the powers, duties, responsibilities and authori-
 55    ties of any of the offices listed in subsections (c) and (d) of this section.
                                                                        
                                           6
                                                                        
  1        SECTION  9.  That  Section 67-2402, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        67-2402.  STRUCTURE OF THE EXECUTIVE BRANCH OF IDAHO STATE GOVERNMENT. (1)
  4    Pursuant to section 20, article IV,  Idaho  constitution,  all  executive  and
  5    administrative  offices,  agencies,  and  instrumentalities  of  the executive
  6    department of state, except for those assigned to the  elected  constitutional
  7    officers, are allocated among and within the following departments:
  8        Department of administration
  9        Department of agriculture
 10        Department of commerce and labor
 11        Department of correction
 12        Department of labor
 13        Department of environmental quality
 14        Department of finance
 15        Department of fish and game
 16        Department of health and welfare
 17        Department of insurance
 18        Department of juvenile corrections
 19        Idaho transportation department
 20        Industrial commission
 21        Department of lands
 22        Idaho state police
 23        Department of parks and recreation
 24        Department of revenue and taxation
 25        Department of self-governing agencies
 26        Department of water resources
 27        State board of education
 28        The public school districts of Idaho, having condemnation authority, shall
 29    be  considered  civil  departments  of state government for the purpose of and
 30    limited to the purchase of state endowment land at appraised prices.
 31        (2)  The governor, lieutenant governor, secretary of state, state control-
 32    ler, state treasurer, attorney general and superintendent of  public  instruc-
 33    tion each heads a constitutional office.
 34        (3)  For  its  internal structure, unless specifically provided otherwise,
 35    each department shall adhere to the following standard terms:
 36        (a)  The principal unit of a department is a division. Each division shall
 37        be headed by an administrator. The administrator of any division shall  be
 38        exempt from the provisions of chapter 53, title 67, Idaho Code.
 39        (b)  The  principal  unit  of a division is a bureau. Each bureau shall be
 40        headed by a chief.
 41        (c)  The principal unit of a bureau is a section. Each  section  shall  be
 42        headed by a supervisor.
                                                                        
 43        SECTION  10.  That Section 67-2406, Idaho Code, be, and the same is hereby
 44    amended to read as follows:
                                                                        
 45        67-2406.  DIRECTORS OF DEPARTMENTS ENUMERATED.  The  following  department
 46    directors are created:
 47        Director, department of administration
 48        Director, department of agriculture
 49        Director, department of commerce and labor
 50        Director, department of correction
 51        Director, department of labor
 52        Director, department of finance
                                                                        
                                           7
                                                                        
  1        Director, department of fish and game
  2        Director, department of environmental quality
  3        Director, department of health and welfare
  4        Director, department of insurance
  5        Director, department of juvenile corrections
  6        Director, Idaho transportation department
  7        Director, department of lands
  8        Director, Idaho state police
  9        Director, department of parks and recreation
 10        Director, department of water resources.
                                                                        
 11        SECTION  11.  That Section 72-1318, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        72-1318.  DIRECTOR -- DEPARTMENT. "Director" means  the  director  of  the
 14    department of commerce and labor, the individual appointed pursuant to section
 15    72-1331 59-904, Idaho Code.
 16        "Department" means the department of commerce and labor.
                                                                        
 17        SECTION 12.  That Section 72-1347B, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        72-1347B.  WORKFORCE  DEVELOPMENT  TRAINING FUND. (1) There is established
 20    in the state treasury a special trust fund, separate and apart from all  other
 21    public  funds of this state, to be known as the workforce development training
 22    fund, hereinafter "training fund."  Except as provided  herein,  all  proceeds
 23    from  the training tax defined in subsection (4) of this section shall be paid
 24    into the training fund. The state treasurer shall  be  the  custodian  of  the
 25    training  fund and shall invest said moneys in accordance with law. Any inter-
 26    est earned on the moneys in the training fund shall be deposited in the train-
 27    ing fund. Moneys in the training fund shall be disbursed  in  accordance  with
 28    the directions of the director.
 29        (2)  All  moneys  in the training fund are perpetually appropriated to the
 30    director for expenditure in accordance with the provisions  of  this  section.
 31    The purpose of the training fund is to provide or expand training and retrain-
 32    ing  opportunities in an expeditious manner that would not otherwise exist for
 33    Idaho's workforce. The training fund is intended to  supplement,  but  not  to
 34    supplant  or compete with, money available through existing training programs.
 35    The moneys in the training fund shall be used for the following purposes:
 36        (a)  To provide training for skills necessary for specific economic oppor-
 37        tunities and industrial expansion initiatives;
 38        (b)  To provide training to upgrade the skills of currently employed work-
 39        ers at risk of being permanently laid off;
 40        (c)  For refunds of training taxes erroneously collected and deposited  in
 41        the workforce training fund;
 42        (d)  For all administrative expenses incurred by the department associated
 43        with  the  collection  of  the  training  tax and any other administrative
 44        expenses associated with the training fund.
 45        (3)  Expenditures from the training fund for purposes authorized in  para-
 46    graphs  (a) and (b) of subsection (2) of this section shall be approved by the
 47    director and the director of the department of commerce in  consultation  with
 48    the office of the governor, based on procedures, criteria and performance mea-
 49    sures  established by the council appointed pursuant to section 72-1336, Idaho
 50    Code. The activities funded by the training fund will be coordinated with sim-
 51    ilar activities funded by the state division of professional-technical  educa-
                                                                        
                                           8
                                                                        
  1    tion.  Expenditures  from  the  training fund for purposes authorized in para-
  2    graphs (c) and (d) of subsection (2) of this section shall be approved by  the
  3    director.  The  director  shall  pay  all approved expenditures as long as the
  4    training fund has a positive balance. The council shall report annually to the
  5    governor and the joint finance-appropriations committee  the  commitments  and
  6    expenditures  made from the training fund in the preceding fiscal year and the
  7    results of the activities funded by the training fund.
  8        (4)  A training tax is hereby imposed on all covered employers required to
  9    pay contributions pursuant to section 72-1350, Idaho Code, with the  exception
 10    of  deficit  employers  who  have  been assigned a taxable wage rate from rate
 11    class six pursuant to section 72-1350, Idaho Code. The training tax rate shall
 12    be equal to three percent (3%) of the taxable wage rate  then  in  effect  for
 13    each eligible, standard-rated and deficit employer. The  training tax shall be
 14    due and payable at the same time and in the same manner as contributions. This
 15    subsection  is repealed effective January 1, 2007, unless, prior to that date,
 16    the Idaho legislature approves the continuation of this subsection  by  repeal
 17    of this sunset clause.
 18        (5)  The provisions of this chapter which apply to the payment and collec-
 19    tion of contributions also apply to the payment and collection of the training
 20    tax,  including  the same calculations, assessments, method of payment, penal-
 21    ties, interest, costs, liens, injunctive  relief,  collection  procedures  and
 22    refund  procedures.  In  the administration of the provisions of this section,
 23    the director is granted all rights, authority, and prerogatives granted  under
 24    the  provisions  of this chapter. Moneys collected from an employer delinquent
 25    in paying contributions, reserve taxes  and  the training tax shall  first  be
 26    applied to any penalty and interest imposed pursuant to the provisions of this
 27    chapter  and shall then be applied pro rata to delinquent contributions to the
 28    employment security fund, section  72-1346,  Idaho  Code,  delinquent  reserve
 29    taxes to the reserve fund, section 72-1347A, Idaho Code, and delinquent train-
 30    ing  taxes to the training fund. Any interest and penalties collected pursuant
 31    to this subsection shall be paid into the state employment  security  adminis-
 32    trative  and reimbursement fund, section 72-1348, Idaho Code, and any interest
 33    or penalties refunded under this subsection shall be paid  out  of  that  same
 34    fund.  Training  taxes  paid pursuant to this section shall not be credited to
 35    the employer's experience rating account  and  may  not  be  deducted  by  any
 36    employer from the wages of individuals in its employ. All training taxes shall
 37    be  deposited in the clearing account of the employment security fund, section
 38    72-1346, Idaho Code, for clearance only and shall  not  become  part  of  such
 39    fund.  After  clearance,  the  moneys  shall be deposited in the training fund
 40    established in subsection (1) of this section.
 41        (6)  Administrative costs related to the training fund shall be paid  from
 42    the training fund in accordance with subsection (3) of this section.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13870
This bill merges the Department of Commerce and the Department of
Labor into a single Department that will be named the Idaho
Department of Commerce and Labor. This merger will formalize a
long-standing partnership between these two Departments and will
ensure that the functions of economic development and workforce
development are directly linked. The new Department will be able
to more effectively promote economic and community development
and a stable, well-trained workforce. Additionally, the merger
will strengthen support for Idaho businesses and communities,
will enhance the Department's ability to create higher-wage jobs
with benefits and will increase tourism and international trade
opportunities.


                         FISCAL IMPACT
As a result of the merger of the two Departments, the two
Directors' positions will be consolidated into one position,
eliminating one full time position (FTP) within the Department of
Labor. Over time there will be additional internal cost savings
due to improved administrative efficiencies. Those savings will
be used by the Department to better accomplish the Department's
mission. There will be no fiscal impact on the General Fund if
this legislation is passed.




Contact
Name: David Lehman, Governor's Office 
Phone: 208/334-2100


STATEMENT OF PURPOSE/FISCAL NOTE                  H 607