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H0004.......................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT INSURANCE - Amends and adds to existing law relating to
unemployment insurance tax rates to revise definitions; to require covered
employers to submit a business registration form; to provide an exception
to imposition of the reserve tax; to revise requirements for the Special
Administration Fund; to provide for disbursement of any unencumbered
balance in the Workforce Development Training Fund exceeding six million
dollars; to revise the method for determining taxable wage rates; to
provide finality of determinations of chargeability; to provide liability
for amounts due from transferred experience rating accounts; to revise the
penalty on unpaid amounts; to provide for the collection of jeopardy
assessment amounts due; to revise the rate of interest on liens; to revise
the personal eligibility conditions for benefits; to revise the method for
determining the maximum weekly benefit amount; to revise the number of
weeks of benefit entitlement; to provide that severance pay is deductible
income; to provide civil penalties on overpayments resulting from false
statements, misrepresentation or failure to report a material fact; to
revise the methods of collection; to revise the criteria for waiver of
overpayments; and to provide civil penalties for employers.
01/14 House intro - 1st rdg - to printing
01/17 Rpt prt - to Com/HuRes
01/18 Rpt out - rec d/p - to 2nd rdg
01/19 2nd rdg - to 3rd rdg
01/20 3rd rdg - PASSED - 65-0-5
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bedke, Bell,
Bilbao, Black, Block, Bolz, Bradford, Cannon, Chadderdon, Clark,
Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Henderson, Jaquet,
Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart,
Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler,
Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30),
Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood
NAYS -- None
Absent and excused -- Bayer, Boe, Henbest, Jones, Mr. Speaker
Floor Sponsors- Pasley-Stuart & Lake
Title apvd - to Senate
01/21 Senate intro - 1st rdg - to Com/HuRes
01/26 Rpt out - rec d/p - to 2nd rdg
01/27 2nd rdg - to 3rd rdg
02/01 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, Marley, McGee, McKenzie, Noble, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk,
Williams(Williams)
NAYS -- None
Absent and excused -- None
Floor Sponsors - Andreason, Goedde & Malepeai
Title apvd - to House
02/02 To enrol
02/03 Rpt enrol - Sp signed
02/04 Pres signed
02/07 To Governor
02/07 Governor signed
Session Law Chapter 5
Effective: 01/01/05 Secs 3, 7, 8 & 9;
07/01/05 All other sections
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 4
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 23-950, IDAHO CODE,
3 TO RESTRICT THE TRANSFER OF A LIQUOR LICENSE AND TO PROVIDE FOR SEIZURE
4 FOR AMOUNTS DUE; AMENDING SECTION 72-1316A, IDAHO CODE, TO EXEMPT CASUAL
5 EMPLOYMENT AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 72-1319B,
6 IDAHO CODE, TO REVISE THE DEFINITION OF TAXABLE WAGE RATE; AMENDING SEC-
7 TION 72-1337, IDAHO CODE, TO REQUIRE COVERED EMPLOYERS TO SUBMIT A BUSI-
8 NESS REGISTRATION FORM; AMENDING SECTION 72-1347A, IDAHO CODE, TO PROVIDE
9 AN EXCEPTION TO IMPOSITION OF THE RESERVE TAX, TO REVISE REQUIREMENTS FOR
10 THE SPECIAL ADMINISTRATION FUND AND TO PROVIDE CORRECT TERMINOLOGY; AMEND-
11 ING SECTION 72-1347B, IDAHO CODE, TO PROVIDE FOR DISBURSEMENT OF ANY UNEN-
12 CUMBERED BALANCE IN THE WORKFORCE DEVELOPMENT TRAINING FUND EXCEEDING SIX
13 MILLION DOLLARS; AMENDING SECTION 72-1349, IDAHO CODE, TO MAKE A TECHNICAL
14 CORRECTION; AMENDING SECTION 72-1350, IDAHO CODE, TO REVISE THE METHOD FOR
15 DETERMINING TAXABLE WAGE RATES AND TO DELETE OBSOLETE LANGUAGE; AMENDING
16 SECTION 72-1351, IDAHO CODE, TO PROVIDE FOR FINALITY OF DETERMINATIONS OF
17 CHARGEABILITY, TO PROVIDE LIABILITY FOR AMOUNTS DUE FROM TRANSFERRED EXPE-
18 RIENCE RATING ACCOUNTS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
19 72-1354, IDAHO CODE, TO REVISE THE PENALTY ON UNPAID AMOUNTS; AMENDING
20 SECTION 72-1359, IDAHO CODE, TO PROVIDE FOR THE COLLECTION OF JEOPARDY
21 ASSESSMENT AMOUNTS DUE; AMENDING SECTION 72-1360, IDAHO CODE, TO REVISE
22 THE RATE OF INTEREST ON LIENS; AMENDING SECTION 72-1366, IDAHO CODE, TO
23 REVISE THE PERSONAL ELIGIBILITY CONDITIONS FOR BENEFITS AND TO MAKE TECH-
24 NICAL CORRECTIONS; AMENDING SECTION 72-1367, IDAHO CODE, TO REVISE THE
25 METHOD FOR DETERMINING THE MAXIMUM WEEKLY BENEFIT AMOUNT, TO REVISE THE
26 NUMBER OF WEEKS OF BENEFIT ENTITLEMENT AND TO PROVIDE THAT SEVERANCE PAY
27 IS DEDUCTIBLE INCOME; AMENDING SECTION 72-1369, IDAHO CODE, TO PROVIDE
28 CIVIL PENALTIES ON OVERPAYMENTS RESULTING FROM FALSE STATEMENTS, MISREPRE-
29 SENTATION OR FAILURE TO REPORT A MATERIAL FACT, TO REVISE THE METHODS OF
30 COLLECTION AND TO REVISE THE CRITERIA FOR WAIVER OF OVERPAYMENTS; AMENDING
31 CHAPTER 13, TITLE 72, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
32 72-1372, IDAHO CODE, TO PROVIDE CIVIL PENALTIES FOR EMPLOYERS; DECLARING
33 AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION FOR SECTIONS 3, 7, 8
34 AND 9 OF THIS ACT; AND PROVIDING AN EFFECTIVE DATE FOR SECTIONS 1, 2, 4,
35 5, 6, 10, 11, 12, 13, 14, 15 AND 16 OF THIS ACT.
36 Be It Enacted by the Legislature of the State of Idaho:
37 SECTION 1. That Section 23-950, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 23-950. RESTRICTION AGAINST TRANSFER OF LICENSE. (1) No license issued
40 under the provisions of this chapter shall be renewed, transferred, assigned,
41 leased or sold if:
42 (a) Tthe state tax commission has notified the director and the licensee
43 in writing that any tax imposed by chapters 30 and 36, title 63, Idaho
2
1 Code, interest, penalty, and additional amount, which has accrued as a
2 result of the operation of the licensed premises has been assessed as that
3 term is defined in section 63-3045A, Idaho Code, against the licensee or
4 any person operating the licensed premises with the permission of the
5 licensee.; or
6 (b) The department of commerce and labor has notified the director and
7 the licensee in writing that a lien has been filed against the licensee or
8 any person operating the licensed premises with the permission of the
9 licensee, as a result of the operation of the licensed premises securing
10 amounts due pursuant to chapter 13, title 72, Idaho Code.
11 (2) At such time as the state tax commission or the department of com-
12 merce and labor has notified the director and licensee as herein provided, the
13 license issued for the premises the operation of which has resulted in the
14 accrual of the tax for which the warrant or lien is outstanding shall be sub-
15 ject to levy and distraint pursuant to chapter 30, title 63, Idaho Code, or
16 seizure pursuant to section 72-1360A, Idaho Code.
17 SECTION 2. That Section 72-1316A, Idaho Code, be, and the same is hereby
18 amended to read as follows:
19 72-1316A. EXEMPT EMPLOYMENT. "Exempt employment" means service performed:
20 (1) By an individual in the employ of his spouse or child.
21 (2) By a person under the age of twenty-one (21) years in the employ of
22 his father or mother.
23 (3) By an individual under the age of twenty-two (22) years who is
24 enrolled as a student in a full-time program at an accredited nonprofit or
25 public education institution for which credit at such institution is earned in
26 a program which combines academic instruction with work experience. This sub-
27 paragraph subsection shall not apply to service performed in a program estab-
28 lished at the request of an employer or group of employers.
29 (4) In the employ of the United States government or an instrumentality
30 of the United States exempt under the constitution of the United States from
31 the contributions imposed by this chapter.
32 (5) In the employ of a governmental entity in the exercise of duties:
33 (a) As an elected official;
34 (b) As a member of a legislative body, or a member of the judiciary, of a
35 state or political subdivision thereof;
36 (c) As a member of the state national guard or air national guard;
37 (d) As an employee serving on a temporary basis in case of fire, storm,
38 snow, earthquake, flood, or similar emergency; or
39 (e) In a position which, pursuant to the laws of this state, is desig-
40 nated as (i) a major nontenured policy making policymaking or advisory
41 position, or (ii) a policy making policymaking or advisory position which
42 ordinarily does not require more than eight (8) hours per week.
43 (6) By an inmate of a correctional, custodial or penal institution, if
44 such services are performed for or within such institution.
45 (7) In the employ of:
46 (a) A church or convention or association of churches; or
47 (b) An organization which is operated primarily for religious purposes
48 and which is operated, supervised, controlled, or principally supported by
49 a church, or convention or association of churches; or
50 (c) In the employ of an institution of higher education, if it is devoted
51 primarily to preparation of a student for the ministry or training candi-
52 dates to become members of a religious order; or
53 (d) By a duly ordained, commissioned, or licensed minister of a church in
3
1 the exercise of his ministry or by a member of a religious order in the
2 exercise of duties required by such order.
3 (8) By a program participant in a facility that provides rehabilitation
4 for individuals whose earning capacity is impaired by age, physical or mental
5 deficiency, or injury or provides remunerative work for individuals who,
6 because of their impaired physical or mental capacity, cannot be readily
7 absorbed into the labor market.
8 (9) As part of an unemployment work relief program or as part of an unem-
9 ployment work training program assisted or financed in whole or in part by any
10 federal agency or an agency of a state or political subdivision thereof, by an
11 individual receiving such work relief or work training.
12 (10) Service with respect to which unemployment insurance is payable under
13 an unemployment insurance system established by an act of congress other than
14 the social security act.
15 (11) As a student nurse in the employ of a hospital or nurses' training
16 school by an individual who is enrolled and is regularly attending courses in
17 a nurses' training school approved pursuant to state law, and service per-
18 formed as an intern in the employ of a hospital by an individual who has com-
19 pleted a course in a medical school approved pursuant to state law.
20 (12) By an individual under the age of eighteen (18) years of age in the
21 delivery or distribution of newspapers or shopping news not including delivery
22 or distribution to any point for subsequent delivery or distribution.
23 (13) By an individual for a person as an insurance agent or as an insur-
24 ance solicitor, if all such service performed by such individual for such per-
25 son is performed for remuneration solely by way of commission.
26 (14) By an individual for a real estate broker as an associate real estate
27 broker or as a real estate salesman, if all such service performed by such
28 individual for such person is performed for remuneration solely by way of com-
29 mission.
30 (15) Service covered by an election approved by the agency charged with
31 the administration of any other state or federal unemployment insurance law,
32 in accordance with an arrangement pursuant to section 72-1344, Idaho Code.
33 (16) In the employ of a school or college by a student who is enrolled and
34 regularly attending classes at such school or college.
35 (17) In the employ of a hospital by a resident patient of such hospital.
36 (18) By a member of an AmeriCorps program.
37 (19) By an individual who is paid less than fifty dollars ($50.00) per
38 calendar quarter for performing work that is not in the course of the
39 employer's trade or business, and who is not regularly employed by such
40 employer to perform such service. For the purposes of this subsection, an
41 individual shall be deemed to be regularly employed by an employer during a
42 calendar quarter only if:
43 (a) On each of some twenty-four (24) days during such quarter such indi-
44 vidual performs for such employer for some portion of the day service not
45 in the course of the employer's trade or business; or
46 (b) Such individual was so employed by such employer in the performance
47 of such service during the preceding calendar quarter.
48 SECTION 3. That Section 72-1319B, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 72-1319B. TAXABLE WAGE RATE. "Taxable wage rate" means the numerical
51 values provided calculated in accordance with section 72-1350(7), Idaho Code,
52 for the purpose of establishing contribution rates, training tax rates and
53 reserve tax rates for covered employers.
4
1 SECTION 4. That Section 72-1337, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 72-1337. RECORDS AND REPORTS. (1) Each employer that is a "covered
4 employer," as defined in section 72-1315, Idaho Code, shall complete and sub-
5 mit to the director an Idaho business registration form within six (6) months
6 of becoming a covered employer.
7 (2) Each employer shall keep accurate records, for such periods of time
8 and containing such information as the director may prescribe. Such records
9 shall be open to inspection and be subject to being copied by the director at
10 any reasonable time. The director, a member of the commission or an appeals
11 examiner may require from any employer any sworn or unsworn reports which are
12 deemed necessary in the exercise of their duties.
13 SECTION 5. That Section 72-1347A, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 72-1347A. EMPLOYMENT SECURITY RESERVE FUND -- SPECIAL ADMINISTRATION
16 FUND. (1) There is established in the state treasury a special trust fund,
17 separate and apart from all other public funds of this state, to be known as
18 the employment security reserve fund, hereinafter "reserve fund." Except as
19 provided herein, all proceeds from the reserve tax defined in subsection (2)
20 of this section shall be paid into the reserve fund. The moneys in the reserve
21 fund may be used by the director for loans to the employment security fund,
22 section 72-1346, Idaho Code, as security for loans from the federal unemploy-
23 ment insurance trust fund, and for the repayment of any interest bearing
24 advances, including interest, made under title XII of the social security act,
25 42 USC 1321 through 1324, and shall be available to the director for expendi-
26 ture in accordance with the provisions of this section. The state treasurer
27 shall be the custodian of the reserve fund and shall invest said moneys in
28 accordance with law. The state treasurer shall disburse the moneys from the
29 reserve fund in accordance with the directions of the director.
30 (2) A reserve tax is imposed on all covered employers required to pay
31 contributions pursuant to section 72-1350, Idaho Code, except deficit employ-
32 ers who have been assigned a taxable wage rate from deficit rate class six
33 pursuant to section 72-1350(8)(a), Idaho Code. The reserve tax shall be due
34 and payable at the same time and in the same manner as contributions. If the
35 reserve fund is less than one percent (1%) of state taxable wages in the
36 penultimate year as of September 30 of the preceding calendar year, the
37 reserve tax rate for all eligible, standard-rated and deficit employers shall
38 be equal to the taxable wage rate then in effect less the assigned contribu-
39 tion rate and training tax rate. The provisions of this chapter which apply to
40 the payment and collection of contributions also apply to the payment and col-
41 lection of the reserve tax, including the same calculations, assessments,
42 method of payment, penalties, interest, costs, liens, injunctive relief, col-
43 lection procedures and refund procedures. In the administration of the provi-
44 sions of this section and the collection of the reserve tax, the director is
45 granted all rights, authority, and prerogatives granted the director under the
46 provisions of this chapter. Moneys collected from an employer delinquent in
47 paying contributions and reserve taxes shall first be applied to pay any pen-
48 alty and interest imposed pursuant to the provisions of this chapter and shall
49 then be applied pro rata to pay delinquent contributions to the employment
50 security fund, section 72-1346, Idaho Code, and delinquent reserve taxes to
51 the reserve fund pursuant to this section. Any interest and penalties col-
52 lected pursuant to this subsection shall be paid into the state employment
5
1 security administrative and reimbursement fund, section 72-1348, Idaho Code,
2 and any interest or penalties refunded under this subsection shall be paid out
3 of that same fund. Reserve taxes paid pursuant to this subsection may not be
4 deducted in whole or in part by any employer from the wages of individuals in
5 its employ. All reserve taxes collected pursuant to this subsection shall be
6 deposited in the clearing account of the employment security fund, section
7 72-1346, Idaho Code, for clearance only and shall not become part of such
8 fund. After clearance, the moneys shall be deposited in the reserve fund
9 established in subsection (1) of this section. No reserve tax shall be imposed
10 for any calendar year if, as of September 30 of the preceding calendar year,
11 the balance of the reserve fund equals or exceeds one percent (1%) of the
12 state taxable wages for the penultimate calendar year, or exceeds forty-nine
13 percent (49%) of the actual balance of the employment security fund, section
14 72-1346, Idaho Code.
15 (3) The interest earned from investment of the reserve fund shall be
16 deposited in a fund established in the state treasurer's office, to be known
17 as the department of commerce and labor special administration fund, hereinaf-
18 ter "special administration fund." The moneys in the special administration
19 fund shall be held separate and apart from all other public funds of this
20 state. The state treasurer shall be the custodian of this fund and may invest
21 said moneys in accordance with law. Any interest earned on said moneys shall
22 be deposited in the special administration fund. In the absence of a specific
23 appropriation, the moneys in the special administration fund are perpetually
24 appropriated to the director and may be expended with the approval of the
25 advisory council appointed pursuant to section 72-1336, Idaho Code, for costs
26 related to employment service programs and unemployment insurance programs
27 administered under this chapter by the department. The director shall report
28 annually to the joint finance-appropriations committee and the advisory coun-
29 cil the expenditures and disbursements made from the fund during the preceding
30 fiscal year, and the expenditures and disbursements and commitments made dur-
31 ing the current fiscal year to date.
32 (4) Administrative costs related to the reserve fund and the special
33 administration fund shall be paid from federal administrative grants received
34 under title III of the social security act, to the extent permitted by federal
35 law, and then from the special administration fund.
36 SECTION 6. That Section 72-1347B, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 72-1347B. WORKFORCE DEVELOPMENT TRAINING FUND. (1) There is established
39 in the state treasury a special trust fund, separate and apart from all other
40 public funds of this state, to be known as the workforce development training
41 fund, hereinafter "training fund." Except as provided herein, all proceeds
42 from the training tax defined in subsection (4) of this section shall be paid
43 into the training fund. The state treasurer shall be the custodian of the
44 training fund and shall invest said moneys in accordance with law. Any inter-
45 est earned on the moneys in the training fund shall be deposited in the train-
46 ing fund. Moneys in the training fund shall be disbursed in accordance with
47 the directions of the director. In any month when the unencumbered balance in
48 the training fund exceeds six million dollars ($6,000,000), the excess amount
49 over six million dollars ($6,000,000) shall be transferred to the employment
50 security reserve fund, section 72-1347A, Idaho Code. For the purposes of this
51 subsection (1), the unencumbered balance in the training fund is the balance
52 in such fund reduced by the sum of:
53 (a) The amounts that have been obligated pursuant to fully-executed
6
1 workforce development training fund contracts;
2 (b) The amounts that have been obligated pursuant to letters of intent
3 for proposed job training projects; and
4 (c) Any administrative costs related to the training fund that are due
5 and payable.
6 (2) All moneys in the training fund are perpetually appropriated to the
7 director for expenditure in accordance with the provisions of this section.
8 The purpose of the training fund is to provide or expand training and retrain-
9 ing opportunities in an expeditious manner that would not otherwise exist for
10 Idaho's workforce. The training fund is intended to supplement, but not to
11 supplant or compete with, money available through existing training programs.
12 The moneys in the training fund shall be used for the following purposes:
13 (a) To provide training for skills necessary for specific economic oppor-
14 tunities and industrial expansion initiatives;
15 (b) To provide training to upgrade the skills of currently employed work-
16 ers at risk of being permanently laid off;
17 (c) For refunds of training taxes erroneously collected and deposited in
18 the workforce training fund;
19 (d) For all administrative expenses incurred by the department associated
20 with the collection of the training tax and any other administrative
21 expenses associated with the training fund.
22 (3) Expenditures from the training fund for purposes authorized in para-
23 graphs (a) and (b) of subsection (2) of this section shall be approved by the
24 director in consultation with the office of the governor, based on proce-
25 dures, criteria and performance measures established by the council appointed
26 pursuant to section 72-1336, Idaho Code. The activities funded by the training
27 fund will be coordinated with similar activities funded by the state division
28 of professional-technical education. Expenditures from the training fund for
29 purposes authorized in paragraphs (c) and (d) of subsection (2) of this sec-
30 tion shall be approved by the director. The director shall pay all approved
31 expenditures as long as the training fund has a positive balance. The council
32 shall report annually to the governor and the joint finance-appropriations
33 committee the commitments and expenditures made from the training fund in the
34 preceding fiscal year and the results of the activities funded by the training
35 fund.
36 (4) A training tax is hereby imposed on all covered employers required to
37 pay contributions pursuant to section 72-1350, Idaho Code, with the exception
38 of deficit employers who have been assigned a taxable wage rate from rate
39 class six pursuant to section 72-1350, Idaho Code. The training tax rate shall
40 be equal to three percent (3%) of the taxable wage rate then in effect for
41 each eligible, standard-rated and deficit employer. The training tax shall be
42 due and payable at the same time and in the same manner as contributions. This
43 subsection is repealed effective January 1, 2007, unless, prior to that date,
44 the Idaho legislature approves the continuation of this subsection by repeal
45 of this sunset clause.
46 (5) The provisions of this chapter which apply to the payment and collec-
47 tion of contributions also apply to the payment and collection of the train-
48 ing tax, including the same calculations, assessments, method of payment, pen-
49 alties, interest, costs, liens, injunctive relief, collection procedures and
50 refund procedures. In the administration of the provisions of this section,
51 the director is granted all rights, authority, and prerogatives granted under
52 the provisions of this chapter. Moneys collected from an employer delinquent
53 in paying contributions, reserve taxes and the training tax shall first be
54 applied to any penalty and interest imposed pursuant to the provisions of this
55 chapter and shall then be applied pro rata to delinquent contributions to the
7
1 employment security fund, section 72-1346, Idaho Code, delinquent reserve
2 taxes to the reserve fund, section 72-1347A, Idaho Code, and delinquent train-
3 ing taxes to the training fund. Any interest and penalties collected pursuant
4 to this subsection shall be paid into the state employment security adminis-
5 trative and reimbursement fund, section 72-1348, Idaho Code, and any interest
6 or penalties refunded under this subsection shall be paid out of that same
7 fund. Training taxes paid pursuant to this section shall not be credited to
8 the employer's experience rating account and may not be deducted by any
9 employer from the wages of individuals in its employ. All training taxes shall
10 be deposited in the clearing account of the employment security fund, section
11 72-1346, Idaho Code, for clearance only and shall not become part of such
12 fund. After clearance, the moneys shall be deposited in the training fund
13 established in subsection (1) of this section.
14 (6) Administrative costs related to the training fund shall be paid from
15 the training fund in accordance with subsection (3) of this section.
16 SECTION 7. That Section 72-1349, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 72-1349. PAYMENT OF CONTRIBUTIONS. (1) Contributions shall be paid on
19 taxable wages for each calendar year equal to the amount determined in accor-
20 dance with section 72-1350(1), Idaho Code. Contributions on wages paid to an
21 individual under another state unemployment insurance law, or paid by an
22 employer's predecessor during the calendar year, shall be counted in complying
23 with this provision.
24 (2) Contributions shall accrue and become payable by each covered
25 employer for each calendar quarter with respect to wages for covered employ-
26 ment. Such contributions shall become due and be paid by each covered employer
27 to the director for the employment security fund and shall not be deducted
28 from the wages of individuals employed by such employer. All moneys required
29 to be paid by a covered employer pursuant to this chapter shall immediately,
30 upon becoming due and payable, become or be deemed money belonging to the
31 state, and every covered employer shall hold or be deemed to hold said money
32 separately, aside, or in trust from any other funds, moneys or accounts, for
33 the state of Idaho for payment in the manner and at the times provided by law.
34 (3) The contributions payable by each covered employer, with respect to
35 covered employment, accruing in each calendar quarter, shall be paid on or
36 before the last day of the month following the close of said calendar quarter.
37 (4) The director may, for good cause shown by a covered employer, extend
38 the time for payment of his contributions or any part thereof, but no such
39 extension of time shall postpone the due date more than sixty (60) days. Con-
40 tributions with respect to which an extension of time for payment has been
41 granted shall be paid on or before the last day of the period of the exten-
42 sion.
43 (5) Whenever it appears to be essential to the proper administration of
44 this chapter that collection of the contributions of a covered employer must
45 be made more often than quarterly, the director shall have authority to demand
46 payment of the contributions forthwith.
47 (6) In accordance with rules the director may prescribe, any person or
48 persons entering into a formal contract with the state, any county, city,
49 town, school or irrigation district, or any quasi public corporation of the
50 state, for the construction, alteration, or repair of any public building or
51 public work, the contract price of which exceeds the sum of one thousand dol-
52 lars ($1,000) may be required before commencing such work, to execute a surety
53 bond in an amount sufficient to cover contributions when due. If the director,
8
1 who shall approve said bond, determines that said bond has become insuffi-
2 cient, he may require that a new bond be provided in the amount he directs.
3 Failure on the part of the employer covered by the bond to pay the full amount
4 of his contributions when due shall render the surety liable on said bond as
5 though the surety was the employer and subject to the other provisions of this
6 chapter.
7 (7) In the payment of any contributions a fractional part of a dollar
8 shall be disregarded unless it amounts to fifty cents (50¢) or more, in which
9 case it shall be increased to one dollar ($1.00).
10 SECTION 8. That Section 72-1350, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 72-1350. TAXABLE WAGE BASE AND TAXABLE WAGE RATES. (1) All remuneration
13 for personal services as defined in section 72-1328, Idaho Code, equal to the
14 average annual wage in covered employment for the penultimate calendar year,
15 rounded to the nearest multiple of one hundred dollars ($100), or the amount
16 of taxable wage base specified in the federal unemployment tax act, whichever
17 is higher, shall be the taxable wage base for purposes of this chapter. Pro-
18 vided however, and notwithstanding any other provision of the employment secu-
19 rity law to the contrary, for calendar years 2003 and 2004 the taxable wage
20 base shall be twenty-seven thousand six hundred dollars ($27,600), which was
21 the taxable wage base in effect for calendar year 2002.
22 (2) Prior to December 31 of each year, the director shall determine the
23 taxable wage rates for the following calendar year for aAll covered employers,
24 except those eligible and electing the cost reimbursement payment method,
25 shall be assigned taxable wage rates annually by the director employers, in
26 accordance with the following this section, provided however, and notwith-
27 standing any other provision of the employment security law to the contrary,
28 for calendar years 20035 and 20046, the taxable wage rates for all covered
29 experience-rated employers except cost reimbursement employers shall be deter-
30 mined in accordance with schedule II as follows:
31 (a) For calendar year 2005, the taxable wage rate shall be determined
32 using a base tax rate of one and fifty hundredths percent (1.50%);
33 (b) For calendar year 2006, the taxable wage rate shall be determined
34 using a base tax rate of one and sixty-seven hundredths percent (1.67%)
35 unless, at any time prior to September 30, 2005, the actual balance in the
36 employment security fund, section 72-1346, Idaho Code, is fifty percent
37 (50%) or less than the actual balance in the reserve fund, section
38 72-1347A, Idaho Code, in which case the taxable wage rate shall be deter-
39 mined using a base tax rate calculated in accordance with subsection (5)
40 of this section.
41 (3) A desired employment security fund size An average high cost ratio
42 shall be determined for each calendar year by calculating from the penultimate
43 year, the ten (10) year average of annual the three (3) highest benefits paid
44 to wages covered, multiplied by one and one-half (1.5) cost rates in the
45 twenty (20) year period ending with the preceding year. For the purposes of
46 this section, the "benefit cost rate" is the total annual benefits paid,
47 including the state's share of extended benefits but excluding the federal
48 share of extended benefits and cost reimbursable benefits, divided by the
49 total annual covered wages excluding cost reimbursable wages. The resulting
50 average high cost ratio, when applied to the covered wages of the penultimate
51 year, represents is multiplied by the desired fund size. This calculation mul-
52 tiplier of eight-tenths (0.8), and the result, for the purposes of this sec-
53 tion, is hereafter referred to as the "average high cost multiple" (AHCM).
9
1 (4) The ACM shall be the ratio at the top of taxable wage rate schedule V
2 as provided in subsection (7) of this section, and all other ratios for sched-
3 ules I through IX are adjusted up or down from schedule V in equal increments
4 of .005.
5 (5) The taxable wage rate schedule for each calendar year fund balance
6 ratio shall be determined by comparing the ratio of dividing the actual bal-
7 ance of the employment security fund, section 72-1346, Idaho Code, and the
8 reserve fund, section 72-1347A, Idaho Code, on September 30, to of the current
9 calendar year by the wages covered paid by all covered employers in Idaho,
10 except cost reimbursement employers, in the penultimate preceding calendar
11 year. against the taxable wage schedule ratios as provided in subsection (4)
12 of this section.
13 (5) The base tax rate shall be determined as follows:
14 (a) Divide the fund balance ratio by the AHCM;
15 (b) Subtract the quotient obtained from the calculation in paragraph
16 (5)(a) of this section from the number two (2);
17 (c) Multiply the remainder obtained from the calculation in paragraph
18 (5)(b) of this section by two and one-tenth percent (2.1%). The product
19 obtained from this calculation shall equal the base tax rate, provided
20 however, that the base tax rate shall not be less than sixty-three hun-
21 dredths percent (0.63%) and shall not exceed three and thirty-six hun-
22 dredths percent (3.36%).
23 (6) The ratios computed for each taxable wage rate schedule as provided
24 in base tax rate calculated in accordance with subsection (45) of this section
25 shall be placed with their appropriate schedule at the top of the columns used
26 to determine the taxable wage rate effective the following calendar year for
27 all covered employers except cost reimbursement employers as provided in sub-
28 sections (7) and (8) of this section, and shall represent the minimum fund
29 level required for the specific schedule to be in effect.
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11
1 Cumulative Taxable Payroll Limits Eligible Employers
2 More Than Equal to Minimum Maximum
3 (% of or Less Than Taxable Taxable
4 Rate Taxable (% of Taxable Tax Wage Wage
5 Class Payroll) Payroll) Factor Rate Rate
6 1 -- 12 0.2857 0.180% 0.960%
7 2 12 24 0.4762 0.300% 1.600%
8 3 24 36 0.5714 0.360% 1.920%
9 4 36 48 0.6667 0.420% 2.240%
10 5 48 60 0.7619 0.480% 2.560%
11 6 60 72 0.8571 0.540% 2.880%
12 7 72 -- 0.9524 0.600% 3.200%
13 Standard-Rated Employers
14 Minimum Maximum
15 Taxable Taxable
16 Tax Wage Wage
17 Factor Rate Rate
18 1.000 1.000% 3.360%
19 Cumulative Taxable Payroll Limits Deficit Employers
20 More Than Equal to Minimum Maximum
21 (% of or Less Than Taxable Taxable
22 Rate Taxable (% of Taxable Tax Wage Wage
23 Class Payroll) Payroll) Factor Rate Rate
24 -1 -- 30 1.7143 1.080% 4.800%
25 -2 30 50 1.9048 1.200% 5.200%
26 -3 50 65 2.0952 1.320% 5.600%
27 -4 65 80 2.2857 1.440% 6.000%
28 -5 80 95 2.6667 1.680% 6.400%
29 -6 95 -- 2.6667 5.400% 6.800%
30 (8) Each covered employer, except cost reimbursement employers, will be
31 assigned a taxable wage rate from the effective taxable wage rate schedule for
32 eligible, standard-rated and deficit employers, based upon the employer's
33 experience as determined under the provisions of sections 72-1319, 72-1319A,
34 72-1319B and 72-1351, Idaho Code. and a contribution rate as follows:
35 (a) Each employer, except standard-rated employers, will be assigned to
36 one (1) of the rate classes for eligible and deficit employers provided in
37 subsection (7) of this section based upon the employer's experience as
38 determined under the provisions of sections 72-1319, 72-1319A, 72-1351 and
39 72-1351A, Idaho Code.
40 (b) For each rate class provided in subsection (7) of this section, the
41 department will multiply the base tax rate determined in accordance with
42 subsection (5) of this section by the tax factor listed for that rate
43 class in the table provided in subsection (7) of this section. The product
44 obtained from this calculation shall be the taxable wage rate for employ-
45 ers assigned to that rate class, provided however, that the taxable wage
46 rate shall not be less than the minimum taxable wage rate assigned to that
47 rate class and shall not exceed the maximum taxable wage rate assigned to
48 that rate class in the table provided in subsection (7) of this section.
49 (c) For standard-rated employers, the department will multiply the base
50 tax rate determined in accordance with subsection (5) of this section by
51 the tax factor listed for standard-rated employers in the table provided
52 in subsection (7) of this section. The product obtained from this calcula-
53 tion shall be the taxable wage rate for standard-rated employers, provided
12
1 however, that the taxable wage rate shall not be less than the minimum
2 taxable wage rate assigned to standard-rated employers and shall not
3 exceed the maximum taxable wage rate assigned to standard-rated employers
4 in the table provided in subsection (7) of this section.
5 (d) Deficit employers who have been assigned a taxable wage rate from
6 deficit rate class six will be assigned contribution rates equal to their
7 taxable wage rate.
8 (be) 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.
26 SECTION 9. That Section 72-1351, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 72-1351. EXPERIENCE RATING. (1) Subject to the other provisions of this
29 chapter, each eligible and deficit employer's (except cost reimbursement
30 employers) taxable wage rate shall be determined in the manner set forth below
31 for each calendar year:
32 (a) (i) Each eligible employer shall be given an "experience factor"
33 which shall be the ratio of excess of contributions over benefits
34 paid on the employer's account since December 31, 1939, to his aver-
35 age annual taxable payroll rounded to the next lower dollar amount
36 for the four (4) fiscal years immediately preceding the computation
37 date, except that when an employer first becomes eligible, his
38 "experience factor" will be computed on his average annual taxable
39 payroll for the two (2) fiscal years or more, but not to exceed four
40 (4) fiscal years, immediately preceding the computation date. The
41 computation of such "experience factor" shall be to six (6) decimal
42 places.
43 (ii) Each deficit employer shall be given a "deficit experience fac-
44 tor" which shall be the ratio of excess of benefits paid on the
45 employer's account over contributions since December 31, 1939, to his
46 average annual taxable payroll rounded to the next lower dollar
47 amount for one (1) or more fiscal years, but not to exceed four (4)
48 fiscal years, for which he had covered employment ending on the com-
49 putation date; provided, however, that any employer who on any compu-
50 tation date has a "deficit experience factor" for the period immedi-
51 ately preceding such computation date but who has filed all reports,
52 paid all contributions and penalties due on or before the cut-off
53 date, and has during the last four (4) fiscal years paid contribu-
13
1 tions at a rate of not less than the standard rate applicable for
2 each such year and in excess of benefits charged to his experience
3 rating account during such years, shall have any balance of benefits
4 charged to his account which on the computation date immediately pre-
5 ceding such four (4) fiscal years were in excess of contributions
6 paid, deleted from his account, and the excess benefits so deleted
7 shall not be considered in the computation of his taxable wage rate
8 for the rate years following such four (4) fiscal years. For the rate
9 year following such computation date, he shall be given the standard
10 rate for that year.
11 (iii) In the event an employer's coverage has been terminated because
12 he has ceased to do business or because he has not had covered
13 employment for a period of four (4) years, and if said employer
14 thereafter becomes a covered employer, he will be considered as
15 though he were a new employer, and he shall not be credited with his
16 previous experience under this chapter for the purpose of computing
17 any future "experience factor."
18 (b) Schedules shall be prepared listing all eligible employers in inverse
19 numerical order of their experience factors, and all deficit employers in
20 numerical order of their deficit experience factors. There shall be listed
21 on such schedules for each such employer in addition to the experience
22 factor (i) the amount of his taxable payroll for the fiscal year ending on
23 the computation date, and (ii) a cumulative total consisting of the sum of
24 such employer's taxable payroll for the fiscal year ending on the computa-
25 tion date and the corresponding taxable payrolls for all other employers
26 preceding him on such schedules.
27 (c) The cumulative taxable payroll amounts listed on the schedules pro-
28 vided for in paragraph (b) of this subsection shall be segregated into
29 groups whose limits shall be those set out in the table of schedules of
30 taxable wage rates, provided in section 72-1350(7), Idaho Code. Each of
31 such groups shall be identified by the rate class number listed in the
32 table which represents the percentage limits of each group. Each employer
33 on the schedules shall be assigned the a taxable wage rate opposite his
34 rate class for the tax schedule in effect for the taxable year in accor-
35 dance with section 72-1350, Idaho Code.
36 (d) (i) If the grouping of rate classes requires the inclusion of
37 exactly one-half (1/2) of an employer's taxable payroll, the employer
38 shall be assigned the lower of the two (2) rates designated for the
39 two (2) classes in which the halves of his taxable payroll are so
40 required.
41 (ii) If the group of rate classes requires the inclusion of a por-
42 tion other than exactly one-half (1/2) of an employer's taxable pay-
43 roll, the employer shall be assigned the rate designated for the
44 class in which the greater part of his taxable payroll is so
45 required.
46 (iii) If one (1) or more employers on the schedules have experience
47 factors identical to that of the last employer included in a particu-
48 lar rate class, all such employers shall be included in and assigned
49 the taxable wage rate specified for such class, notwithstanding the
50 provisions of paragraph (c) of this subsection.
51 (e) If the taxable payroll amount or the experience factor or both such
52 taxable payroll amount and experience factor of any eligible or deficit
53 employer listed on the schedules is changed, the employer shall be placed
54 in that position on the schedules which he would have occupied had his
55 taxable payroll amount and/or experience factor as changed been used in
14
1 determining his position in the first instance, but such change shall not
2 affect the position or rate classification of any other employer listed on
3 the schedules and shall not affect the rate determination for previous
4 years.
5 (2) For experience rating purposes, all previously accumulated benefit
6 charges to covered employers' accounts, except cost reimbursement employers,
7 shall not be changed except as provided by this chapter. Benefits paid prior
8 to June 30 shall, as of June 30 of each year preceding the calendar year for
9 which a covered employer's taxable wage rate is effective, be charged to the
10 account of the covered employer, except cost reimbursement employers, who paid
11 the largest individual amount of base period wages as shown on the determina-
12 tion used as the basis for the payment of such benefits, except that no charge
13 shall be made to the account of such covered employer with respect to benefits
14 paid under the following situations:
15 (a) If paid to a worker who terminated his services voluntarily without
16 good cause attributable to such covered employer, or who had been dis-
17 charged for misconduct in connection with such services;
18 (b) If paid in accordance with the provisions of section 72-1368(10),
19 Idaho Code, and the decision to pay benefits is subsequently reversed; or
20 (c) For that portion of benefits paid to multistate claimants pursuant to
21 section 72-1344, Idaho Code, which exceeds the amount of benefits that
22 would have been charged had only Idaho wages been used in paying the
23 claim;
24 (d) If paid in accordance with the extended benefit program triggered by
25 either national or state indicators;
26 (e) If paid to a worker who continues to perform services for such cov-
27 ered employer without a reduction in his customary work schedule, and who
28 is eligible to receive benefits due to layoff or a reduction in earnings
29 from another employer.
30 (3) A covered employer whose experience rating account is chargeable, as
31 prescribed by this section, is an interested party as defined in section
32 72-1323, Idaho Code. A determination of chargeability shall become final
33 unless, within fourteen (14) days after notice as provided in section
34 72-1368(5), Idaho Code, an appeal is filed by an interested party with the
35 department in accordance with the department's rules.
36 (4) An experience rating record shall be maintained for each covered
37 employer. The record shall be credited with all contributions which the cov-
38 ered employer has paid for covered employment prior to the cut-off date, pur-
39 suant to the provisions of this and preceding acts, and which covered employ-
40 ment occurred prior to the computation date. The record shall also be charged
41 with the amount of benefits paid which are chargeable to the covered
42 employer's account as provided by the appropriate provisions of the employment
43 security law and regulations thereunder in effect at the time such benefits
44 were paid. Nothing in this section shall be construed to grant any covered
45 employer or individual in his service a priority with respect to any claim or
46 right because of amounts paid by such covered employer into the employment
47 security fund.
48 (45) (a) Whenever any individual or type of organization (whether or not
49 a covered employer within the meaning of section 72-1315, Idaho Code) in
50 any manner succeeds to, or acquires all or substantially all, of the busi-
51 ness of an employer who at the time of acquisition was a covered employer,
52 and in respect to whom the director finds that the business of the prede-
53 cessor is continued solely by the successor, the separate experience rat-
54 ing account of the predecessor shall, upon the joint application of the
55 predecessor and the successor within the one hundred eighty (180) days
15
1 after such acquisition and approval by the director, be transferred to the
2 successor employer for the purpose of determining such successor's liabil-
3 ity and taxable wage rate and any successor who was not an employer on the
4 date of acquisition shall as of such date become a covered employer as
5 defined in this chapter. Such one hundred eighty (180) day period may be
6 extended at the discretion of the director. The transfer of the
7 predecessor's experience rating account as of the last computation date to
8 the successor shall be mandatory if the management or ownership or control
9 is substantially the same for the successor as for the predecessor and
10 there is a continuity of business activity by the successor.
11 (b) Whenever any individual or type of organization, whether or not a
12 covered employer within the meaning of section 72-1315, Idaho Code, in any
13 manner succeeds to, or acquires, part of the business of an employer who
14 at the time of acquisition was a covered employer, and such portion of the
15 business is continued by the successor, so much of the separate experience
16 rating account of the predecessor as is attributable to the portion of the
17 business transferred, as determined on a pro rata basis in the same ratio
18 that the wages of covered employees properly allocable to the transferred
19 portion of the business bears to the payroll of the predecessor in the
20 last four (4) completed calendar quarters immediately preceding the date
21 of transfer, shall, upon the joint application of the predecessor and the
22 successor within one hundred eighty (180) days after such acquisition and
23 approval by the director, be transferred to the successor employer for the
24 purpose of determining such successor's liability and taxable wage rate
25 and any successor who was not an employer on the date of acquisition shall
26 as of such date become a covered employer as defined in this chapter. Such
27 one hundred eighty (180) day period may be extended at the discretion of
28 the director. The transfer of the predecessor's experience rating account
29 as of the last computation date to the successor shall be mandatory if the
30 management or ownership or control is substantially the same for the suc-
31 cessor as for the predecessor and there is a continuity of business activ-
32 ity by the successor. Whenever such mandatory transfer involves only a
33 portion of the experience rating record, and the predecessor or successor
34 employers fail within ten (10) days after notice to supply the required
35 payroll information, the transfer shall be based on estimates of the allo-
36 cable payrolls.
37 (c) (i) If the successor was a covered employer prior to the date
38 of the acquisition of all or a part of the predecessor's business his
39 taxable wage rate, effective the first day of the calendar quarter
40 immediately following the date of acquisition, shall be a newly com-
41 puted rate based on the combined experience of the predecessor and
42 successor, the resulting rate remaining in effect the balance of the
43 rate year.
44 (ii) If the successor was not a covered employer prior to the date
45 of the acquisition of all or a part of the predecessor's business,
46 his rate shall be the rate applicable to the predecessor with respect
47 to the period immediately preceding the date of acquisition, but if
48 there were more than one (1) predecessor the successor's rate shall
49 be a newly computed rate based on the combined experience of the pre-
50 decessors, becoming effective immediately after the date of acquisi-
51 tion, and shall remain in effect the balance of the rate year.
52 (d) For purposes of this section, an employer's experience rating account
53 shall consist of the actual contribution, benefit and taxable payroll
54 experience of the employer and any amounts due from the employer under
55 this chapter. When a transferred experience rating account includes
16
1 amounts due from the employer under this chapter, both the predecessor
2 employer and the successor employer shall be jointly and severally liable
3 for those amounts.
4 SECTION 10. That Section 72-1354, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 72-1354. PENALTY ON UNPAID AMOUNTS. If any amounts due under this chapter
7 are not paid by any covered employer on or before the date on which they are
8 due, such amounts shall bear penalty at the rate of two four percent (24%) or
9 ten twenty dollars ($120.00), whichever is the larger, for each month or frac-
10 tion thereof until paid; provided, that in no case shall the penalty exceed
11 the actual amounts due. The date of payment shall be deemed the date of actual
12 receipt by the director, or if mailed, the date of mailing. Penalties col-
13 lected pursuant to this section shall be paid into the state employment secu-
14 rity administrative and reimbursement fund as established by section 72-1348,
15 Idaho Code. At the discretion of the director, the department may compromise
16 the amount of penalty collected pursuant to this section if the employer shows
17 he had good cause for failing to timely pay contributions.
18 SECTION 11. That Section 72-1359, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 72-1359. JEOPARDY ASSESSMENTS. If the director determines that the col-
21 lection of any amounts due from any covered employer under the provisions of
22 this chapter will be jeopardized by delay, he may, whether or not the time
23 prescribed by this chapter or any rules issued pursuant thereto for making
24 reports and payments has expired, determine, on the basis of available infor-
25 mation, the wages paid by such employer for covered employment and declare the
26 amount due thereon immediately payable, and shall give written notice of such
27 declaration to such employer. Any amounts, including penalty and interest,
28 that are contained in such written declaration shall be subject to immediate
29 seizure pursuant to section 72-1360A, Idaho Code, as well as through any other
30 collection procedures allowed under law. Such jeopardy assessment shall become
31 conclusive and binding upon the employer unless, wWithin fourteen (14) days
32 after the mailing of such declaration to the last known address of such
33 employer or in the absence of such mailing, within fourteen (14) days after
34 personal delivery thereof upon the employer, the employer may files an appeal
35 to the department setting forth grounds for such appeal. In such cases, the
36 right of appeal shall be conditioned upon the payment of the amount declared
37 to be due, less any amount already collected, or upon giving appropriate secu-
38 rity to the director for the payment thereof. Proceedings on such appeals
39 shall be in accordance with the provisions of section 72-1361, Idaho Code.
40 SECTION 12. That Section 72-1360, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 72-1360. LIENS. (1) Upon the failure of any person to pay any amount when
43 due under this chapter, including the failure to repay overpayments as that
44 term is defined in section 72-1369, Idaho Code, the director may file with the
45 office of the secretary of state, as provided in chapter 19, title 45, Idaho
46 Code, a notice of lien.
47 (2) Upon delivery to the secretary of state, the notice of lien shall be
48 filed and maintained in accordance with chapter 19, title 45, Idaho Code. When
49 such notice is duly filed, all amounts due shall constitute a lien upon the
17
1 entire interest, legal or equitable, in any property of such person, real or
2 personal, tangible or intangible, not exempt from execution, situated in the
3 state. Such lien may be enforced by the director or by any sheriff of the var-
4 ious counties in the same manner as a judgment of the district court duly
5 docketed and the amount secured by the lien shall bear interest at the rate of
6 the state statutory legal limit on judgments one and one-half (1 1/2) times
7 the rate computed for judgments pursuant to section 28-22-104(2), Idaho Code,
8 in effect on January 1 of the year in which the lien is filed, rounded up to
9 the nearest one-eighth percent (1/8%). The foregoing remedy shall be in addi-
10 tion to all other remedies provided by law. The amount of interest collected
11 pursuant to this section may be compromised at the discretion of the director
12 when such compromise is in the best interest of the department.
13 (3) In any suit or action involving the title to real or personal prop-
14 erty against which the state has a perfected lien, the state shall be made a
15 party to such suit or action.
16 SECTION 13. That Section 72-1366, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 72-1366. PERSONAL ELIGIBILITY CONDITIONS. The personal eligibility condi-
19 tions of a benefit claimant are that:
20 (1) The claimant shall have made a claim for benefits and provided all
21 necessary information pertinent to eligibility.
22 (2) The claimant shall have registered for work and thereafter reported
23 to a job service office or other agency in a manner prescribed by the direc-
24 tor.
25 (3) The claimant shall have met the minimum wage requirements in his base
26 period as provided in section 72-1367, Idaho Code.
27 (4) During the whole of any week with respect to which he claims benefits
28 or credit to his waiting period, the claimant was:
29 (a) Aable to work, available for suitable work, and seeking work; pro-
30 vided, however, that no claimant shall be considered ineligible for fail-
31 ure to comply with the provisions of this subsection if: (i) such failure
32 is due to an the claimant's illness or disability which occurs after he
33 has filed a claim and during such illness or disability, the claimant does
34 not refuse or miss suitable work that would have provided wages greater
35 than one-half (1/2) of the claimant's weekly benefit amount; or (ii) the
36 claimant, because of such failure is due to compelling personal circum-
37 stance, is required to be absent from his normal labor market area, pro-
38 vided that such absence failure does not exceed a minor portion of the
39 claimant's workweek and during which time the claimant does not refuse or
40 miss suitable work that would have provided wages greater than one-half
41 (1/2) of the claimant's weekly benefit amount; and
42 (b) Living in a state, territory, or country that is included in the
43 interstate benefit payment plan or that is a party to an agreement with
44 the United States or the director with respect to unemployment insurance.
45 (5) The claimant's unemployment is not due to the fact that he left his
46 employment voluntarily without good cause connected with his employment, or
47 that he was discharged for misconduct in connection with his employment.
48 (6) The claimant's unemployment is not due to his failure without good
49 cause to apply for available suitable work or to accept suitable work when
50 offered to him. The longer a claimant has been unemployed, the more willing he
51 must be to seek other types of work and accept work at a lower rate of pay.
52 (7) In determining whether or not work is suitable for an individual, the
53 degree of risk involved to his health, safety, morals, physical fitness, expe-
18
1 rience, training, past earnings, length of unemployment and prospects for
2 obtaining local employment in his customary occupation, the distance of the
3 work from his residence, and other pertinent factors shall be considered. No
4 employment shall be deemed suitable and benefits shall not be denied to any
5 otherwise eligible individual for refusing to accept new work or to hold him-
6 self available for work under any of the following conditions:
7 (a) If the vacancy of the position offered is due directly to a strike,
8 lockout, or other labor dispute;
9 (b) If the wages, hours, or other conditions of the work offered are
10 below those prevailing for similar work in the locality of the work
11 offered;
12 (c) If, as a condition of being employed, the individual would be
13 required to join a company union or to resign from or refrain from joining
14 any bona fide labor organization.
15 (8) No claimant who is otherwise eligible shall be denied benefits for
16 any week due to an inability to comply with the requirements contained in sub-
17 sections (4) and (6) of this section, if:
18 (a) The claimant is a participant in a program sponsored by title I of
19 the workforce investment act and attends a job training course under that
20 program; or
21 (b) The claimant attends a job training course authorized pursuant to the
22 provisions of section 236(a)(1) of the trade act of 1974 or the North
23 American free trade agreement implementation act.
24 (c) The claimant lacks skills to compete in the labor market and attends
25 a job training course with the approval of the director. The director may
26 approve job training courses that meet the following criteria:
27 (i) The purpose of the job training is to teach the claimant skills
28 that will enhance the claimant's opportunities for employment; and
29 (ii) The job training can be completed within one (1) year, except
30 that this requirement may be waived pursuant to rules that the direc-
31 tor may prescribe.
32 This subsection shall apply only if the claimant submits with each claim
33 report a written certification from the training facility that the claimant is
34 attending and satisfactorily completing the job training course, or demon-
35 strates good cause for failure to attend the job training.
36 (9) No claimant who is otherwise eligible shall be denied benefits under
37 subsection (5) of this section for leaving employment to attend job training
38 pursuant to subsection (8) of this section, provided that the claimant
39 obtained the employment after enrollment in or during scheduled breaks in the
40 job training course, or that the employment was not suitable. For purposes of
41 this subsection, the term "suitable employment" means work of a substantially
42 equal or higher skill level than the individual's past employment, and wages
43 for such work are not less than eighty percent (80%) of the average weekly
44 wage in the individual's past employment.
45 (10) A claimant shall not be eligible to receive benefits for any week
46 with respect to which it is found that his unemployment is due to a labor dis-
47 pute; provided, that this subsection shall not apply if it is shown that:
48 (a) The claimant is not participating, financing, aiding, abetting, or
49 directly interested in the labor dispute; and
50 (b) The claimant does not belong to a grade or class of workers with mem-
51 bers employed at the premises at which the labor dispute occurs, who are
52 participating in or directly interested in the dispute.
53 (11) A claimant shall not be entitled to benefits for any week with
54 respect to which or a part of which he has received or is seeking benefits
55 under an unemployment insurance law of another state or of the United States;
19
1 provided, that if the appropriate agency of such other state or of the United
2 States shall finally determine that he is not entitled to such unemployment
3 compensation or insurance benefits, he shall not by the provisions of this
4 subsection be denied benefits. For purposes of this section, a law of the
5 United States providing any payments of any type and in any amounts for
6 periods of unemployment due to involuntary unemployment shall be considered an
7 unemployment insurance law of the United States.
8 (12) A claimant shall not be entitled to benefits for a period of fifty-
9 two (52) weeks if it is determined that he has willfully made a false state-
10 ment or willfully failed to report a material fact in order to obtain bene-
11 fits. The period of disqualification shall commence the week the determination
12 is issued. The claimant shall also be ineligible for waiting week credit and
13 shall repay any sums received for a week in which the claimant willfully made
14 a false statement or willfully failed to report a material fact. The claimant
15 shall also be ineligible for waiting week credit or benefits for any week in
16 which he owes the department an overpayment, civil penalty, or interest
17 resulting from a determination that he willfully made a false statement or
18 willfully failed to report a material fact.
19 (13) A claimant shall not be entitled to benefits if his principal occupa-
20 tion is self-employment.
21 (14) A claimant who has been found ineligible for benefits under the pro-
22 visions of subsection (5), (6), (7) or (9) of this section shall reestablish
23 his eligibility by having obtained bona fide work and received wages therefor
24 in an amount of at least twelve fourteen (124) times his weekly benefit
25 amount.
26 (15) Benefits based on service in employment defined in sections 72-1349A
27 and 72-1352(3), Idaho Code, shall be payable in the same amount, on the same
28 terms and subject to the same conditions as benefits payable on the basis of
29 other service subject to this act.
30 (a) If the services performed during one-half (1/2) or more of any con-
31 tract period by an individual for an educational institution as defined in
32 section 72-1322B, Idaho Code, are in an instructional, research, or prin-
33 cipal administrative capacity, all the services shall be deemed to be in
34 such capacity.
35 (b) If the services performed during less than one-half (1/2) of any con-
36 tract period by an individual for an educational institution are in an
37 instructional, research, or principal administrative capacity, none of the
38 service shall be deemed to be in such capacity.
39 (c) As used in this section, "contract period" means the entire period
40 for which the individual contracts to perform services, pursuant to the
41 terms of the contract.
42 (16) No claimant is eligible to receive benefits in two (2) successive
43 benefit years unless, after the beginning of the first benefit year during
44 which he received benefits, he performed service and earned an amount equal to
45 not less than six (6) times the weekly benefit amount established during the
46 first benefit year.
47 (17) (a) Benefits based on wages earned for services performed in an
48 instructional, research, or principal administrative capacity for an edu-
49 cational institution shall not be paid for any week of unemployment com-
50 mencing during the period between two (2) successive academic years, or
51 during a similar period between two (2) terms, whether or not successive,
52 or during a period of paid sabbatical leave provided for in the
53 individual's contract, to any individual who performs such services in the
54 first academic year (or term) and has a contract to perform services in
55 any such capacity for any educational institution in the second academic
20
1 year or term, or has been given reasonable assurance that such a contract
2 will be offered.
3 (b) Benefits based on wages earned for services performed in any other
4 capacity for an educational institution shall not be paid to any individ-
5 ual for any week which commences during a period between two (2) succes-
6 sive school years or terms if the individual performs such services in the
7 first school year or term, and there is a contract or reasonable assurance
8 that the individual will perform such services in the second school year
9 or term. If benefits are denied to any individual under this subparagraph
10 (b) and the individual was not offered an opportunity to perform such ser-
11 vices for the educational institution for the second academic year or
12 term, the individual shall be entitled to a retroactive payment of bene-
13 fits for each week for which the individual filed a timely claim for bene-
14 fits and for which benefits were denied solely by reason of this clause.
15 (c) With respect to any services described in paragraphs (a) and (b) of
16 this subsection (17), benefits shall not be paid nor "waiting week" credit
17 given to an individual for wages earned for services for any week which
18 commences during an established and customary vacation period or holiday
19 recess if the individual performed the services in the period immediately
20 before the vacation period or holiday recess, and there is a reasonable
21 assurance the individual will perform such services in the period immedi-
22 ately following such vacation period or holiday recess.
23 (d) With respect to any services described in paragraphs (a) and (b) of
24 this subsection (17), benefits shall not be payable on the basis of ser-
25 vices in any capacities specified in paragraphs (a), (b) and (c) of this
26 subsection (17) to any individual who performed such services in an educa-
27 tional institution while in the employ of an educational service agency.
28 For purposes of this paragraph the term "educational service agency" means
29 a governmental entity which is established and operated exclusively for
30 the purpose of providing such services to one (1) or more educational
31 institutions.
32 (18) Benefits shall not be payable on the basis of services which substan-
33 tially consist of participating in sports or athletic events or training or
34 preparing to participate, for any week which commences during the period
35 between two (2) successive sport seasons (or similar periods) if the individ-
36 ual performed services in the first season (or similar period) and there is a
37 reasonable assurance that the individual will perform such services in the
38 later of such season (or similar period).
39 (19) (a) Benefits shall not be payable on the basis of services performed
40 by an alien unless the alien was lawfully admitted for permanent residence
41 at the time such services were performed, was lawfully present for pur-
42 poses of performing such services, or was permanently residing in the
43 United States under color of law at the time the services were performed
44 (including an alien who was lawfully present in the United States as a
45 result of the application of the provisions of sections 207 and 208 or
46 section 212(d)(5) of the immigration and nationality act).
47 (b) Any data or information required of individuals applying for benefits
48 to determine eligibility under this subsection shall be uniformly required
49 from all applicants for benefits.
50 (c) A decision to deny benefits under this subsection must be based on a
51 preponderance of the evidence.
52 (20) An individual who has been determined to be likely to exhaust regular
53 benefits and to need reemployment services pursuant to a profiling system
54 established by the director must participate in those reemployment services
55 unless:
21
1 (a) The individual has completed such services; or
2 (b) There is justifiable cause, as determined by the director, for the
3 claimant's failure to participate in such services.
4 (21) (a) A claimant:
5 (i) Who has been assigned to work for one (1) or more customers of
6 a staffing service; and
7 (ii) Who, at the time of hire by the staffing service, signed a
8 written notice informing him that completion or termination of an
9 assignment for a customer would not, of itself, terminate the employ-
10 ment relationship with the staffing service;
11 will not be considered unemployed upon completion or termination of an
12 assignment until such time as he contacts the staffing service to deter-
13 mine if further suitable work is available. If the claimant:
14 (A) Contacts the staffing service and refuses a suitable work
15 assignment that is offered to him at that time, he will be con-
16 sidered to have voluntarily quit that employment; or
17 (B) Contacts the staffing service and the service does not have
18 a suitable work assignment for him, he will be considered unem-
19 ployed due to a lack of work; or
20 (C) Accepts new employment without first contacting the
21 staffing service for additional work, he will be considered to
22 have voluntarily quit employment with the staffing service.
23 (b) For the purposes of this subsection, the term "staffing service"
24 means any person who assigns individuals to work for its customers and
25 includes, but is not limited to, professional employers, as defined in
26 chapter 24, title 44, Idaho Code, and the employers of temporary employees
27 as defined in section 44-2403(7), Idaho Code.
28 SECTION 14. That Section 72-1367, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 72-1367. BENEFIT FORMULA. (1) To be eligible an individual shall have the
31 minimum qualifying amount of wages in covered employment in at least one (1)
32 calendar quarter of his base period, and shall have total base period wages of
33 at least one and one-quarter (1 1/4) times his high quarter wages. The minimum
34 qualifying amount of wages shall be determined each July January 1 and shall
35 equal fifty percent (50%) of the product of the state minimum wage, as defined
36 by section 44-1502, Idaho Code, multiplied by five hundred twenty (520) hours,
37 rounded to the lowest multiple of twenty-six (26).
38 (2) The weekly benefit amount shall be one twenty-sixth (1/26) of highest
39 quarter wages except that it shall not exceed the applicable maximum weekly
40 benefit amount. The maximum weekly benefit amount shall be established as fol-
41 lows:
42 (a) For calendar year 2006 and the calendar years thereafter, pPrior to
43 June 30 December 31 of each year, the director shall compute determine the
44 state average weekly wage paid by covered employers for the preceding cal-
45 endar year and the maximum weekly benefit amount to be effective for new
46 claims filed in the first full week of the following January and filed
47 thereafter until a new maximum weekly benefit amount becomes effective
48 under this subsection (2). The maximum weekly benefit amount shall be
49 sixty percent (60%) determined based on the following table, using a per-
50 centage of the state average weekly wage paid by covered employers for the
51 preceding calendar year and the base tax rate that has been calculated for
52 the following calendar year pursuant to section 72-1350, Idaho Code:
22
1 Maximum WBA Index
2 Base Tax Rate Average Weekly Wage
3 At Least Less Than Percentage
4 0.630% 0.840% 60%
5 0.840% 1.155% 59%
6 1.155% 1.470% 58%
7 1.470% 1.785% 57%
8 1.785% 2.100% 56%
9 2.100% 2.415% 55%
10 2.415% 2.730% 54%
11 2.730% 3.045% 53%
12 3.045% 3.360% 52%
13 (b) Effective for new claims filed in the first full week of July 2005,
14 and filed thereafter until the first full week of the following January,
15 the maximum weekly benefit amount shall be fifty-seven percent (57%) of
16 the state average weekly wage paid by covered employers for the preceding
17 calendar year. Prior to December 31, 2005, the director shall determine,
18 by using the table provided in subsection (2)(a) of this section, the max-
19 imum weekly benefit amount to be effective for new claims filed in the
20 first full week of the following January and filed thereafter until a new
21 maximum weekly benefit amount becomes effective under subsection (2)(a) of
22 this section.
23 (3) Any eligible individual shall be entitled during any benefit year to
24 a total amount of benefits equal to his weekly benefit amount times the number
25 of full weeks of benefit entitlement appearing in the following table based on
26 his ratio of total base period earnings to highest quarter base period earn-
27 ings.
28 Ratio of Total Base Period Full Weeks
29 Earnings to Highest Quarter of Benefit
30 Earnings Entitlement
31 At Least Less Than
32 1.25 1.50 10
33 1.50 1.75625 121
34 1.75625 2.001.750 142
35 2.001.750 2.251.875 163
36 2.251.875 2.502.00 184
37 2.502.00 2.752.125 2015
38 2.75125 3.002.250 2216
39 3.002.250 3.252.375 2417
40 3.252.375 --2.500 2618
41 2.500 2.625 19
42 2.625 2.750 20
43 2.750 2.875 21
44 2.875 3.000 22
45 3.000 3.125 23
46 3.125 3.250 24
47 3.250 3.500 25
48 3.500 -- 26
49 (4) If the total wages payable to an individual for less than full-time
50 work performed in a week claimed exceed one-half (1/2) of his weekly benefit
51 amount, the amount of wages that exceed one-half (1/2) of the weekly benefit
52 amount shall be deducted from the benefits payable to the claimant. For pur-
53 poses of this subsection, severance pay shall be deemed wages, even if the
23
1 claimant was required to sign a release of claims as a condition of receiving
2 the pay from the employer. "Severance pay" means a payment or payments made to
3 a claimant by an employer as a result of the severance of the employment rela-
4 tionship.
5 (5) Benefits payable to an individual shall be rounded to the next lower
6 full dollar amount.
7 SECTION 15. That Section 72-1369, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 72-1369. OVERPAYMENTS, CIVIL PENALTIES AND INTEREST -- COLLECTION AND
10 WAIVER. (1) Any person who received benefits to which he was not entitled
11 under the provisions of this chapter or under an unemployment insurance law of
12 any state or of the federal government shall be liable to repay the benefits
13 and the benefits shall, for the purpose of this chapter, be considered to be
14 overpayments. Overpayments shall be repaid as follows:
15 (2) Civil penalties. The director shall assess the following monetary
16 penalties for each determination in which the claimant is found to have made a
17 false statement, misrepresentation, or failed to report a material fact to the
18 department:
19 (a) Twenty-five percent (25%) of any resulting overpayment for the first
20 determination;
21 (b) Fifty percent (50%) of any resulting overpayment for the second
22 determination; and
23 (c) One hundred percent (100%) of any resulting overpayment for the third
24 and any subsequent determination.
25 (a3) Any overpayment, civil penalty and/or interest which has not been
26 repaid may, in addition to or alternatively to any other method of collection
27 prescribed in this chapter, including the creation of a lien as provided by
28 section 72-1360, Idaho Code, be collected with interest thereon at the statu-
29 tory rate by prescribed in section 72-1360(2), Idaho Code. The director may
30 also file a civil action brought in the name of the state of Idaho. In bring-
31 ing such civil actions for the collection of overpayments, penalties and
32 interest, the director shall have all the rights and remedies provided by the
33 laws of this state, and any person adjudged liable in such civil action for
34 any overpayments shall pay the costs of such action. Such civil actions may be
35 commenced within the time periods specified in this section without regard to
36 any other statute of limitations A civil action filed pursuant to this subsec-
37 tion (3) shall be commenced within five (5) years from the date of the final
38 determination establishing liability to repay. Any judgment obtained pursuant
39 to this section shall, upon compliance with the requirements of chapter 19,
40 title 45, Idaho Code, become a lien of the same type, duration and priority as
41 if it were created pursuant to section 72-1360, Idaho Code.
42 (b4) Collection of overpayments.
43 (ia) Overpayments, other than those resulting from a false statement,
44 misrepresentation, or failure to report a material fact by the claimant,
45 which have not been repaid or collected, may, at the discretion of the
46 director, be deducted from any future benefits payable to the claimant
47 under the provisions of this chapter;. Such overpayments not recovered
48 within five (5) years from the date of the final determination establish-
49 ing liability to repay may be deemed uncollectible.
50 (iib) Overpayments resulting from a false statement, misrepresentation,
51 or concealment of failure to report a material fact by the claimant which
52 have not been repaid or collected shall be deducted from any benefits pay-
53 able at any time in the future, without regard to any statute of limita-
24
1 tion and such overpayments not recovered within eight (8) years from the
2 date of the final determination establishing liability to repay may be
3 deemed uncollectible;.
4 (iii) A civil action, filed pursuant to paragraph (a) of this subsec-
5 tion, to collect overpayments resulting from a false statement, mis-
6 representation, or concealment of a material fact by the claimant
7 must be commenced within eight (8) years from the date of the final
8 determination establishing liability to repay;
9 (c) Overpayments, other than those resulting from a false statement, mis-
10 representation or failure to report a material fact, not recovered within
11 five (5) years from the date of the final determination establishing lia-
12 bility to repay shall be deemed uncollectible, and a civil action filed
13 pursuant to paragraph (a) of this subsection, to collect such overpayments
14 must be commenced within the same five (5) year time period;
15 (d5) The director may waive the requirement to repay an overpayment,
16 described in paragraph (c) of this subsection other than one resulting from a
17 false statement, misrepresentation, or failure to report a material fact by
18 the claimant, and interest thereon, if:
19 (a) Tthe benefit payments were made solely as a result of department
20 error or inadvertence, and made to a claimant who had no way of knowing
21 that he was receiving benefits to which he was not entitled could not rea-
22 sonably have been expected to recognize the error; or if
23 (b) Ssuch payments were made solely as a result of an employer
24 misreporting wages earned in a claimant's base period, and made to a
25 claimant who could not reasonably have been expected to recognize an error
26 in the wages reported. The director, in his sole discretion, may also com-
27 promise a civil penalty assessed under subsection (2) of this section
28 and/or interest.
29 (e) Any judgment obtained pursuant to this section shall, upon compliance
30 with the requirements of chapter 19, title 45, Idaho Code, become a lien
31 of the same type, duration, and priority as if it were created pursuant to
32 section 72-1360, Idaho Code.
33 (26) Neither the director nor any of his agents or employees shall be
34 liable for benefits paid to persons not entitled to the same under the provi-
35 sions of this chapter if it appears that such payments have been made in good
36 faith and that ordinary care and diligence have been used in the determination
37 of the validity of the claim or claims under which such benefits have been
38 paid.
39 SECTION 16. That Chapter 13, Title 72, Idaho Code, be, and the same is
40 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
41 ignated as Section 72-1372, Idaho Code, and to read as follows:
42 72-1372. CIVIL PENALTIES. (1) The following civil penalties shall be
43 assessed by the director:
44 (a) If an employer willfully fails to file any report required by the
45 director or files a false report, a penalty equal to one hundred percent
46 (100%) of the amount that would be due if the employer had filed a correct
47 report or two hundred fifty dollars ($250), whichever is greater, shall be
48 added to the liability of the employer for each quarter for which the
49 employer failed to file a report or filed a false report. For the purposes
50 of this section, a false report includes, but is not limited to, a report
51 for a period wherein an employer pays remuneration for personal services
52 which meets the definition of "wages" under section 72-1328, Idaho Code,
53 and the payment is concealed, hidden, or otherwise not reported to the
25
1 department.
2 (b) If an employer, or any officer or agent or employee of the employer
3 with the employer's knowledge, willfully makes a false statement or repre-
4 sentation or willfully fails to report a material fact when submitting
5 facts to the department concerning a claimant's separation from the
6 employer, a penalty in an amount equal to ten (10) times the weekly bene-
7 fit amount of such claimant shall be added to the liability of the
8 employer.
9 (c) If an employer induces, solicits, or coerces an employee or former
10 employee to file a false or fraudulent claim for benefits under this chap-
11 ter, a penalty in an amount equal to ten (10) times the weekly benefit
12 amount of such employee or former employee shall be added to the liability
13 of the employer.
14 (d) If an employer fails to complete and submit an Idaho business regis-
15 tration form, as required by section 72-1337(1), Idaho Code, a penalty of
16 five hundred dollars ($500) shall be assessed against the employer.
17 (e) For purposes of paragraphs (b) and (c) of this subsection (1), the
18 term "weekly benefit amount" means the amount calculated pursuant to sec-
19 tion 72-1367(2), Idaho Code.
20 (2) At the discretion of the director, the department may waive all or
21 any part of the penalties imposed pursuant to this section if the employer
22 shows to the satisfaction of the director that it had good cause for failing
23 to comply with the requirements of this chapter and rules promulgated thereun-
24 der.
25 (3) Determinations imposing civil penalties pursuant to this section
26 shall be served in accordance with section 72-1368(5), Idaho Code. Penalties
27 imposed pursuant to this section shall be due and payable twenty (20) days
28 after the date the determination was served unless an appeal is filed in
29 accordance with section 72-1368, Idaho Code, and rules promulgated thereunder.
30 Such appeals shall be conducted in accordance with section 72-1368, Idaho
31 Code, and rules promulgated thereunder.
32 (4) Civil penalties imposed by this section shall be in addition to any
33 other penalties authorized by this chapter. The provisions of this chapter
34 that apply to the collection of contributions, and the rules promulgated
35 thereunder, shall also apply to the collection of penalties imposed pursuant
36 to this section. Amounts collected pursuant to this section shall be paid into
37 the state employment security administrative and reimbursement fund as estab-
38 lished by section 72-1348, Idaho Code.
39 SECTION 17. An emergency existing therefor, which emergency is hereby
40 declared to exist, Sections 3, 7, 8 and 9 of this act shall be in full force
41 and effect on and after passage and approval, and retroactively to January 1,
42 2005.
43 SECTION 18. Sections 1, 2, 4, 5, 6, 10, 11, 12, 13, 14, 15 and 16 of this
44 act shall be in full force and effect on and after July 1, 2005.
STATEMENT OF PURPOSE
RS 14526c1
The Idaho Legislature has frozen Unemployment Insurance (UI) tax
rates since 2002 at an average effective tax rate of 0.8%. This
freeze saved Idaho businesses over $110 million during the last
three years (2002 2004). The tax freeze ended on January 1,
2005, automatically increasing the average effective tax rate to
1.7%, a 113% increase. An increase in UI benefit payments during
the recent recession leaves Idaho's UI Trust Fund with a balance
of approximately $190 million (December 2004), down from over
$330 million in 2001. During the last two years, UI Trust Funds
in 10 other states were exhausted, forcing those states to borrow
from the Federal government to pay UI benefits. These Federal
loans will have to be repaid with interest, resulting in even
greater UI taxes in those states.
This legislation will:
Replace the 113% average tax increase in 2005 with a 12.5% Create
a new more responsive and equitable UI tax system to protect
Idaho's UI Trust Fund from insolvency;
Reduce a projected $344 million tax increase over the next six
years to an estimated $72 million; Provide UI benefit savings of
approximately $72 million over the next six years; Provide
additional tools to collect delinquent UI taxes; Increase
penalties for UI fraud; Cap the unencumbered balance of the
Workforce Development Training Fund; and make housekeeping
amendments.
A UI Study Committee appointed by Director Roger Madsen in 2002
to review Idaho's entire UI system developed this legislation.
Senator John Andreason and Representative Robert Schaefer serve
as Co-Chairs of the 17-member committee, which has broad
representation of legislators, business and organized labor.
The legislation has an emergency clause to implement the smaller
tax increases retroactively to January 1, 2005. This is possible
because UI taxes are paid quarterly and the first quarter payment
is not due until April 30, 2005.
FISCAL IMPACT
There will be no impact on the State General Fund. If this
legislation is not enacted, Idaho's average effective UI tax rate
will increase by 113% in 2005 from 0.8% to 1.7%. If Idaho
experiences modest economic growth (2 2.5% annual employment
expansion), the current law will increase taxes by an estimated
$344 million over the next six years. If this legislation were
adopted, under the same economic scenario, UI taxes would
increase by approximately $72 million over the next six years.
The legislation also would provide UI benefit savings of
approximately $72 million over the next six years.
CONTACT
Name: Dwight Johnson
Agency: Commerce and Labor, Dept. of
Phone: 841-8833
STATEMENT OF PURPOSE/FISCAL IMPACT H 4