2005 Legislation
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HOUSE BILL NO. 64 – Approp, Comm/Labor, use (Reed Act)

HOUSE BILL NO. 64

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Bill Status



H0064.......................................by COMMERCE AND HUMAN RESOURCES
APPROPRIATIONS - Appropriates $890,000 to the Department of Commerce and
Labor pursuant to Section 903 of the federal Social Security Act, as
amended, for expenses incurred for computer enhancements that will improve
the administration of the Unemployment Insurance Program; and provides that
the appropriation is authorized by and subject to the limitations of
Section 72-1346(4), Idaho Code.
                                                                        
01/28    House intro - 1st rdg - to printing
01/31    Rpt prt - to Com/HuRes
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/16    3rd rdg - PASSED - 70-0-0
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Jones, 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(Telleria), Snodgrass,
      Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Schaefer
    Title apvd - to Senate
02/17    Senate intro - 1st rdg - to Fin
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/18    3rd rdg - PASSED - 34-0-0, 1 vacancy
      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, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- (District 21 seat vacant)
    Floor Sponsor - McGee
    Title apvd - to House
03/21    To enrol
03/22    Rpt enrol - Sp signed
03/23    Pres signed
03/24    To Governor
03/28    Governor signed
         Session Law Chapter 175
         Effective: 03/28/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 64
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    APPROPRIATING EIGHT HUNDRED NINETY THOUSAND DOLLARS TO THE DEPARTMENT OF  COM-
  3        MERCE  AND LABOR OF THE STATE OF IDAHO PURSUANT TO SECTION 903 OF THE FED-
  4        ERAL SOCIAL SECURITY ACT, AS AMENDED, FOR EXPENSES INCURRED  FOR  COMPUTER
  5        ENHANCEMENTS  THAT  WILL  IMPROVE  THE  ADMINISTRATION OF THE UNEMPLOYMENT
  6        INSURANCE PROGRAM AND PROVIDING THAT SAID APPROPRIATION IS  AUTHORIZED  BY
  7        AND  SUBJECT  TO  THE  LIMITATIONS  OF SECTION 72-1346(4), IDAHO CODE; AND
  8        DECLARING AN EMERGENCY.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  There is hereby appropriated out of the funds  made  available
 11    to  the  Department  of  Commerce and Labor of the State of Idaho, pursuant to
 12    Section 903 of the federal  Social  Security  Act,  as  amended,  the  sum  of
 13    $890,000  for  the  payment  of  expenses  incurred  for  enhancements  to the
 14    department's computer systems that will  improve  the  administration  of  the
 15    Unemployment  Insurance  Program.  The enhancements include the creation of an
 16    Internet application that would allow the department to  maintain  a  list  of
 17    employer  contact  information  for unemployment insurance benefit claims; the
 18    creation of an Internet application  that  would  allow  employers  to  report
 19    claimants  who  were  discharged  for  misconduct; the creation of an Internet
 20    application that would allow the department to provide employers with  a  list
 21    of  their  former  employees who are receiving unemployment insurance benefits
 22    that will be charged to the employer's experience rating account; the  modifi-
 23    cation  of the department's computer system so it can assess interest on unem-
 24    ployment insurance benefit overpayments and penalties on  unemployment  insur-
 25    ance  overpayments  that resulted from fraud; and an upgraded document imaging
 26    system. This appropriation is authorized by and subject to the limitations  of
 27    Section 72-1346(4), Idaho Code.
                                                                        
 28        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 29    declared to exist, this act shall be in full force and effect on and after its
 30    passage and approval.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                          RS 14527

The Federal Unemployment Tax Act (FUTA) requires all covered 
employers to pay .8% on the first $7,000 paid to each covered 
employee per year.  Under the federal Reed Act, when FUTA 
balances exceed the statutory ceiling on the amount of FUTA 
revenue that may be held in the federal Unemployment Trust Fund, 
the excess is distributed to each state’s unemployment trust 
account.  A state may use these funds to pay unemployment 
insurance benefits or, subject to a state legislative 
appropriation, for expenses incurred in the administration of 
the unemployment insurance and employment service programs.  
Federal law prohibits any other use of these funds.  This 
appropriation bill authorizes the Department of Commerce and 
Labor to spend $890,000 in Reed Act funds for enhancements to 
the Department's computer systems that will improve the 
administration of the unemployment insurance program. The bill 
has an emergency clause so the Department can start working on 
the computer enhancements once the bill is enacted.


                        FISCAL IMPACT

There is no fiscal impact on the State General Fund because all 
of the Reed Act monies are federal dollars.  The computer 
enhancements that will allow employers to monitor their former 
employees' unemployment insurance claims will likely reduce 
benefit payments which will increase the solvency of Idaho's 
Unemployment Insurance Trust Fund.  Upgrading the Department's 
imaging system will reduce the Department's administrative 
expenses by improving access to stored data. Charging interest 
on overpayments and penalties on overpayments due to fraud will 
increase revenue to the State Administrative and Reimbursement 
Fund established in Section 72-1348, Idaho Code, and may serve 
as a deterrent to fraudulent claims.



CONTACT
Name:	Dwight Johnson
Agency:	Commerce and Labor, Dept. of
Phone:	841-8833

Statement of Purpose/Fiscal Impact                         H 64