2006 Legislation
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HOUSE BILL NO. 577 – Unemployment benefits, violations

HOUSE BILL NO. 577

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H0577.......................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT BENEFITS - Amends existing law to provide additional methods
for charging benefits attributable to cost reimbursement employers under
the Employment Security Law; to provide for repayment of any benefits
received as a result of having willfully made a false statement or having
willfully failed to report a material fact; to define "employment security
information" under the Public Records Act; to provide that the identity of
an informant who reports a suspected violation of the Employment Security
Law to the Department of Commerce and Labor under an assurance of
confidentiality shall not be disclosed; to clarify that the State Tax
Commission and the Department of Commerce and Labor can exchange certain
information; and to provide that amounts owed for penalty and interest on
debts owed to the State Tax Commission or the Department of Commerce and
Labor may be offset against refunds owed to the debtor by either agency.
                                                                        
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/14    3rd rdg - PASSED - 70-0-0
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
      Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart(Jacobson),
      Harwood, Henbest, 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, Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Lake
    Title apvd - to Senate
02/15    Senate intro - 1st rdg - to Com/HuRes
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
03/02    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, 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 -- None
    Floor Sponsor - Compton
    Title apvd - to House
03/03    To enrol
03/06    Rpt enrol - Sp signed
03/07    Pres signed
03/08    To Governor
03/11    Governor signed
         Session Law Chapter 38
         Effective: 03/11/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 577
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE EMPLOYMENT SECURITY  LAW;  AMENDING  SECTION  72-1349A,  IDAHO
  3        CODE,  TO PROVIDE ADDITIONAL METHODS FOR CHARGING BENEFITS ATTRIBUTABLE TO
  4        COST REIMBURSEMENT EMPLOYERS; AMENDING SECTION  72-1366,  IDAHO  CODE,  TO
  5        PROVIDE  FOR  REPAYMENT  OF   ANY  BENEFITS RECEIVED AS A RESULT OF HAVING
  6        WILLFULLY MADE A FALSE STATEMENT OR WILLFULLY FAILED TO REPORT A  MATERIAL
  7        FACT;  AMENDING  SECTION 9-340C, IDAHO CODE, TO DEFINE EMPLOYMENT SECURITY
  8        INFORMATION AND TO PROVIDE THAT THE IDENTITY OF AN INFORMANT WHO REPORTS A
  9        SUSPECTED VIOLATION OF THE EMPLOYMENT SECURITY LAW TO  THE  DEPARTMENT  OF
 10        COMMERCE AND LABOR UNDER AN ASSURANCE OF CONFIDENTIALITY SHALL NOT BE DIS-
 11        CLOSED;  AMENDING  SECTION 63-3077A, IDAHO CODE, TO CLARIFY THAT THE STATE
 12        TAX COMMISSION AND THE DEPARTMENT OF COMMERCE AND LABOR MAY EXCHANGE  CER-
 13        TAIN INFORMATION AND TO PROVIDE THAT AMOUNTS OWED FOR PENALTY AND INTEREST
 14        ON  DEBTS  OWED  TO THE STATE TAX COMMISSION OR THE DEPARTMENT OF COMMERCE
 15        AND LABOR MAY BE OFFSET AGAINST REFUNDS  OWED  TO  THE  DEBTOR  BY  EITHER
 16        AGENCY AND TO MAKE TECHNICAL CORRECTIONS; AND DECLARING AN EMERGENCY.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That Section 72-1349A, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        72-1349A.  FINANCING OF BENEFIT PAYMENTS BY  NONPROFIT  ORGANIZATIONS  AND
 21    GOVERNMENTAL ENTITIES. (1) Benefits paid to employees of governmental entities
 22    and  nonprofit  organizations  shall be financed in accordance with the provi-
 23    sions of this section.
 24        A group of such organizations or entities may elect, with the approval  of
 25    the  director,  to act as a group in fulfilling the requirements of this chap-
 26    ter.
 27        (2)  Liability for contributions and election of  reimbursements.  A  non-
 28    profit  organization  or governmental entity shall pay contributions under the
 29    provisions of section 72-1349, Idaho Code, unless  it  elects,  in  accordance
 30    with this section to pay to the director an amount equal to the full amount of
 31    regular  benefits paid and the amount paid for extended benefits for which the
 32    department is not reimbursed by the federal government, for any reason includ-
 33    ing, but not limited to, payments made as a result of a determination or  pay-
 34    ments  erroneously  paid or paid as a result of a determination of eligibility
 35    which is subsequently reversed if said payment or any portion thereof was made
 36    as a result of wages earned in the employ of such organization or entity.  Any
 37    sums  recovered by the department from a claimant as a result of said payments
 38    shall be credited to the account of the nonprofit organization or governmental
 39    entity which reimbursed the fund for the payment of said benefits. Where  such
 40    benefits  are paid utilizing wages paid by two (2) or more employers, the por-
 41    tion of benefits to be repaid by the organization or entity shall be its  pro-
 42    portionate  share.   This  shall  be computed on the basis of the relationship
 43    between wages utilized which were earned for services performed for such orga-
                                                                        
                                           2
                                                                        
  1    nization or entity and the total wages utilized in paying such benefits.
  2        (3)  Any nonprofit organization or governmental entity may elect to become
  3    liable for payments in lieu of  contributions,  provided  it  files  with  the
  4    director a written notice of election not later than thirty (30) days prior to
  5    the beginning of any taxable year or within thirty (30) days after the date of
  6    the  final  determination  that such organization or entity is subject to this
  7    chapter. Such election shall be effective for not less than two (2) full  tax-
  8    able  years    after  the  election is made, and will continue to be in effect
  9    until terminated.  The organization or entity must file with  the  director  a
 10    written notice of termination of such election not later than thirty (30) days
 11    prior  to  the  beginning of the taxable year for which such termination shall
 12    first be effective.  The director may, in his discretion, terminate  an  elec-
 13    tion as provided in this section or extend the period within which a notice of
 14    election  or  a notice of termination must be filed. The director shall notify
 15    each nonprofit organization and governmental entity of  any  determination  he
 16    makes  of  its status as an employer and of the effective date of any election
 17    which it makes and of any termination of such election.
 18        (4)  Reimbursement payments. Payments in lieu of  contributions  shall  be
 19    made  in  accordance  with the provisions of this subsection, including either
 20    paragraph (a) or paragraph (b).
 21        (a)  At the end of each calendar quarter, or  at  the  end  of  any  other
 22        period as determined by the director, the director shall bill each organi-
 23        zation or entity (or group of organizations or entities) which has elected
 24        to  make payments in lieu of contributions for an amount equal to the full
 25        amount of regular benefits paid, and the amount paid for extended benefits
 26        for which the department is not reimbursed by the federal  government,  if
 27        paid  as  a  result  of wages earned in the employ of such organization or
 28        entity.
 29        (b)  Payment in advance.  Nonprofit organizations or governmental entities
 30        may elect to make payments in lieu of contributions in advance  of  actual
 31        billing  for payment costs. Advance payments shall be made as follows:  At
 32        the end of each calendar quarter, the nonprofit organization or governmen-
 33        tal entity shall pay one percent  (1%)  of  its  total  quarterly  payroll
 34        unless  the  director  determines  that a lesser percentage will cover the
 35        cost of payment of benefits to the employees of said  employer.  For  pur-
 36        poses  of  this  section, the total quarterly payroll for school districts
 37        shall be computed based  upon  only  those  school  districts  which  have
 38        elected cost reimbursement status. Such payments shall become due and pay-
 39        able within thirty (30) days following the quarter ending.
 40             At the end of such taxable year, the director shall compute the bene-
 41        fit  costs  attributable  to the employer as provided in subsection (2) of
 42        this section. The director will then debit  the  employer's  account  with
 43        these  costs. When payments exceed benefit costs, either the employer will
 44        be credited on subsequent benefit costs with the overpayment  or,  at  the
 45        director's  discretion,  the overpayment will be refunded to the employer.
 46        When payments are not sufficient to pay benefit costs, either the employer
 47        will be billed the additional amount necessary to pay such  costs  or,  at
 48        the  director's  discretion,  the  employer's advance payment rate for the
 49        next taxable year will be set at a rate that will cover such costs.
 50        (5)  Bond requirements. Any nonprofit organization that elects  to  become
 51    liable  for  payments  in  lieu of contributions may be required to obtain and
 52    deposit with the director a surety bond approved by the director.  The  amount
 53    of the bond shall be determined by the director on the basis of potential lia-
 54    bility  for  benefit costs of each employing nonprofit organization. Such bond
 55    shall be in force for a period of not less than two (2) years,  and  shall  be
                                                                        
                                           3
                                                                        
  1    renewed  not  less  frequently  than two (2) year intervals for as long as the
  2    organization continues to be liable for payments in lieu of contributions. The
  3    director shall require adjustments to be made in  the  bond  filed  as  deemed
  4    appropriate.  When upward adjustments are required, the adjusted bond shall be
  5    filed within thirty (30) days of the date notice of  the  required  adjustment
  6    was  mailed.  Failure  by an organization covered by such bond to pay the full
  7    amount of payments due, together with interest and penalties, as  provided  in
  8    section  72-1354,  Idaho Code, shall render  the surety liable on said bond to
  9    the extent of the bond, as though the surety was a liable organization.
 10        (6)  Failure to pay timely. If any nonprofit organization or  governmental
 11    entity is delinquent in making payments in lieu of contributions, the director
 12    may  terminate  such employer's election to make payments in lieu of contribu-
 13    tions as of the beginning of the next taxable year, and such termination shall
 14    be effective for that and the next taxable year. Any nonprofit organization or
 15    governmental entity becoming delinquent in making payments in lieu of  contri-
 16    butions  shall  be subject to the same penalty provisions as any other covered
 17    employer as provided in this chapter.
 18        (7)  Appeals procedure. Nonprofit organizations and governmental  entities
 19    making payments in lieu  of contributions may appeal a determination made pur-
 20    suant to this section as provided in section 72-1361, Idaho Code.
 21        (8)  In  the payment of any payments in lieu of contributions a fractional
 22    part of a dollar shall be disregarded unless it amounts to fifty  cents  (50¢)
 23    or more, in which case it shall be increased to one dollar ($1.00).
                                                                        
 24        SECTION  2.  That  Section 72-1366, Idaho Code, be, and the same is hereby
 25    amended to read as follows:
                                                                        
 26        72-1366.  PERSONAL ELIGIBILITY CONDITIONS. The personal eligibility condi-
 27    tions of a benefit claimant are that:
 28        (1)  The claimant shall have made a claim for benefits  and  provided  all
 29    necessary information pertinent to eligibility.
 30        (2)  The  claimant  shall have registered for work and thereafter reported
 31    to a job service office or other agency in a manner prescribed by  the  direc-
 32    tor.
 33        (3)  The claimant shall have met the minimum wage requirements in his base
 34    period as provided in section 72-1367, Idaho Code.
 35        (4)  During the whole of any week with respect to which he claims benefits
 36    or credit to his waiting period, the claimant was:
 37        (a)  Able  to  work,  available  for suitable work, and seeking work; pro-
 38        vided, however, that no claimant shall be considered ineligible for  fail-
 39        ure  to comply with the provisions of this subsection if: (i) such failure
 40        is due to the claimant's illness or disability which occurs after  he  has
 41        filed a claim and during such illness or disability, the claimant does not
 42        refuse  or  miss suitable work that would have provided wages greater than
 43        one-half (1/2) of the claimant's weekly benefit amount; or (ii) such fail-
 44        ure is due to compelling personal circumstance, provided that such failure
 45        does not exceed a minor portion of  the  claimant's  workweek  and  during
 46        which  time  the claimant does not refuse or miss suitable work that would
 47        have provided wages greater than one-half (1/2) of the  claimant's  weekly
 48        benefit amount; and
 49        (b)  Living  in  a  state,  territory,  or country that is included in the
 50        interstate benefit payment plan or that is a party to  an  agreement  with
 51        the United States or the director with respect to unemployment insurance.
 52        (5)  The  claimant's  unemployment is not due to the fact that he left his
 53    employment voluntarily without good cause connected with  his  employment,  or
                                                                        
                                           4
                                                                        
  1    that he was discharged for misconduct in connection with his employment.
  2        (6)  The  claimant's  unemployment  is not due to his failure without good
  3    cause  to apply for available suitable work or to accept  suitable  work  when
  4    offered to him. The longer a claimant has been unemployed, the more willing he
  5    must be to seek other types of work and accept work at a lower rate of pay.
  6        (7)  In determining whether or not work is suitable for an individual, the
  7    degree of risk involved to his health, safety, morals, physical fitness, expe-
  8    rience,  training,  past  earnings,  length  of unemployment and prospects for
  9    obtaining local employment in his customary occupation, the  distance  of  the
 10    work  from  his residence, and other pertinent factors shall be considered. No
 11    employment shall be deemed suitable and benefits shall not be  denied  to  any
 12    otherwise  eligible individual for refusing to accept new work or to hold him-
 13    self available for work under any of the following conditions:
 14        (a)  If the vacancy of the position offered is due directly to  a  strike,
 15        lockout, or other labor dispute;
 16        (b)  If  the  wages,  hours,  or  other conditions of the work offered are
 17        below those prevailing for similar  work  in  the  locality  of  the  work
 18        offered;
 19        (c)  If,  as  a  condition  of  being  employed,  the  individual would be
 20        required to join a company union or to resign from or refrain from joining
 21        any bona fide labor organization.
 22        (8)  No claimant who is otherwise eligible shall be  denied  benefits  for
 23    any week due to an inability to comply with the requirements contained in sub-
 24    sections (4) and (6) of this section, if:
 25        (a)  The  claimant  is  a participant in a program sponsored by title I of
 26        the workforce investment act and attends a job training course under  that
 27        program; or
 28        (b)  The claimant attends a job training course authorized pursuant to the
 29        provisions  of  section  236(a)(1)  of  the trade act of 1974 or the North
 30        American free trade agreement implementation act.
 31        (c)  The claimant lacks skills to compete in the labor market and  attends
 32        a  job training course with the approval of the director. The director may
 33        approve job training courses that meet the following criteria:
 34             (i)   The purpose of the job training is to teach the claimant skills
 35             that will enhance the claimant's opportunities for employment; and
 36             (ii)  The job training can be completed within one (1)  year,  except
 37             that this requirement may be waived pursuant to rules that the direc-
 38             tor may prescribe.
 39        This  subsection  shall apply only if the claimant submits with each claim
 40    report a written certification from the training facility that the claimant is
 41    attending and satisfactorily completing the job  training  course,  or  demon-
 42    strates good cause for failure to attend the job training.
 43        (9)  No  claimant who is otherwise eligible shall be denied benefits under
 44    subsection (5) of this section for leaving employment to attend  job  training
 45    pursuant  to  subsection  (8)  of  this  section,  provided  that the claimant
 46    obtained the employment after enrollment in or during scheduled breaks in  the
 47    job  training course, or that the employment was not suitable. For purposes of
 48    this subsection, the term "suitable employment" means work of a  substantially
 49    equal  or  higher skill level than the individual's past employment, and wages
 50    for such work are not less than eighty percent (80%)  of  the  average  weekly
 51    wage in the individual's past employment.
 52        (10) A  claimant  shall  not  be eligible to receive benefits for any week
 53    with respect to which it is found that his unemployment is due to a labor dis-
 54    pute; provided, that this subsection shall not apply if it is shown that:
 55        (a)  The claimant is not participating, financing,  aiding,  abetting,  or
                                                                        
                                           5
                                                                        
  1        directly interested in the labor dispute; and
  2        (b)  The claimant does not belong to a grade or class of workers with mem-
  3        bers  employed  at the premises at which the labor dispute occurs, who are
  4        participating in or directly interested in the dispute.
  5        (11) A claimant shall not be  entitled  to  benefits  for  any  week  with
  6    respect  to  which  or  a part of which he has received or is seeking benefits
  7    under an unemployment insurance law of another state or of the United  States;
  8    provided,  that if the appropriate agency of such other state or of the United
  9    States shall finally determine that he is not entitled  to  such  unemployment
 10    compensation  or  insurance  benefits,  he shall not by the provisions of this
 11    subsection be denied benefits. For purposes of this  section,  a  law  of  the
 12    United  States  providing  any  payments  of  any  type and in any amounts for
 13    periods of unemployment due to involuntary unemployment shall be considered an
 14    unemployment insurance law of the United States.
 15        (12) A claimant shall not be entitled to benefits for a period  of  fifty-
 16    two  (52)  weeks if it is determined that he has willfully made a false state-
 17    ment or willfully failed to report a material fact in order  to  obtain  bene-
 18    fits. The period of disqualification shall commence the week the determination
 19    is  issued.  The claimant shall also be ineligible for waiting week credit and
 20    shall repay any sums received for any week in for which the claimant  received
 21    waiting  week  credit or benefits as a result of having willfully made a false
 22    statement or willfully failed to report a material fact.  The  claimant  shall
 23    also  be  ineligible for waiting week credit or benefits for any week in which
 24    he owes the department an overpayment, civil penalty,  or  interest  resulting
 25    from  a  determination  that  he willfully made a false statement or willfully
 26    failed to report a material fact.
 27        (13) A claimant shall not be entitled to benefits if his principal occupa-
 28    tion is self-employment.
 29        (14) A claimant who has been found ineligible for benefits under the  pro-
 30    visions  of  subsection (5), (6), (7) or (9) of this section shall reestablish
 31    his eligibility by having obtained bona fide work and received wages  therefor
 32    in an amount of at least fourteen (14) times his weekly benefit amount.
 33        (15) Benefits  based on service in employment defined in sections 72-1349A
 34    and 72-1352(3), Idaho Code, shall be payable in the same amount, on  the  same
 35    terms  and  subject to the same conditions as benefits payable on the basis of
 36    other service subject to this act.
 37        (a)  If the services performed during one-half (1/2) or more of  any  con-
 38        tract period by an individual for an educational institution as defined in
 39        section  72-1322B, Idaho Code, are in an instructional, research, or prin-
 40        cipal administrative capacity, all the services shall be deemed to  be  in
 41        such capacity.
 42        (b)  If the services performed during less than one-half (1/2) of any con-
 43        tract  period  by  an  individual for an educational institution are in an
 44        instructional, research, or principal administrative capacity, none of the
 45        service shall be deemed to be in such capacity.
 46        (c)  As used in this section, "contract period" means  the  entire  period
 47        for  which  the  individual contracts to perform services, pursuant to the
 48        terms of the contract.
 49        (16) No claimant is eligible to receive benefits  in  two  (2)  successive
 50    benefit  years  unless,  after  the beginning of the first benefit year during
 51    which he received benefits, he performed service and earned an amount equal to
 52    not less than six (6) times the weekly benefit amount established  during  the
 53    first benefit year.
 54        (17) (a) Benefits  based  on  wages  earned  for  services performed in an
 55        instructional, research, or principal administrative capacity for an  edu-
                                                                        
                                           6
                                                                        
  1        cational  institution  shall not be paid for any week of unemployment com-
  2        mencing during the period between two  (2) successive academic  years,  or
  3        during  a similar period between two (2) terms, whether or not successive,
  4        or  during  a  period  of  paid  sabbatical  leave  provided  for  in  the
  5        individual's contract, to any individual who performs such services in the
  6        first academic year (or term) and has a contract to  perform  services  in
  7        any  such  capacity for any educational institution in the second academic
  8        year or term, or has been given reasonable assurance that such a  contract
  9        will be offered.
 10        (b)  Benefits  based  on  wages earned for services performed in any other
 11        capacity for an educational institution shall not be paid to any  individ-
 12        ual  for  any week which commences during a period between two (2) succes-
 13        sive school years or terms if the individual performs such services in the
 14        first school year or term, and there is a contract or reasonable assurance
 15        that the individual will perform such services in the second  school  year
 16        or term. If benefits are denied to any individual under this paragraph (b)
 17        and the individual was not offered an opportunity to perform such services
 18        for  the educational institution for the second academic year or term, the
 19        individual shall be entitled to a retroactive payment of benefits for each
 20        week for which the individual filed a timely claim for  benefits  and  for
 21        which benefits were denied solely by reason of this clause.
 22        (c)  With  respect  to any services described in paragraphs (a) and (b) of
 23        this subsection (17), benefits shall not be paid nor "waiting week" credit
 24        given to an individual for wages earned for services for  any  week  which
 25        commences  during  an established and customary vacation period or holiday
 26        recess if the individual performed the services in the period  immediately
 27        before  the  vacation  period or holiday recess, and there is a reasonable
 28        assurance the individual will perform such services in the period  immedi-
 29        ately following such vacation period or holiday recess.
 30        (d)  With  respect  to any services described in paragraphs (a) and (b) of
 31        this subsection (17), benefits shall not be payable on the basis  of  ser-
 32        vices  in  any capacities specified in paragraphs (a), (b) and (c) of this
 33        subsection (17) to any individual who performed such services in an educa-
 34        tional institution while in the employ of an educational  service  agency.
 35        For purposes of this paragraph the term "educational service agency" means
 36        a  governmental  entity  which is established and operated exclusively for
 37        the purpose of providing such services to  one  (1)  or  more  educational
 38        institutions.
 39        (18) Benefits shall not be payable on the basis of services which substan-
 40    tially  consist  of  participating in sports or athletic events or training or
 41    preparing to participate, for any  week  which  commences  during  the  period
 42    between  two (2) successive sport seasons (or similar periods) if the individ-
 43    ual performed services in the first season (or similar period) and there is  a
 44    reasonable  assurance  that  the  individual will perform such services in the
 45    later of such season (or similar period).
 46        (19) (a) Benefits shall not be payable on the basis of services  performed
 47        by an alien unless the alien was lawfully admitted for permanent residence
 48        at  the  time  such services were performed, was lawfully present for pur-
 49        poses of performing such services, or  was  permanently  residing  in  the
 50        United  States  under color of law at the time the services were performed
 51        (including an alien who was lawfully present in the  United  States  as  a
 52        result  of  the  application  of the provisions of sections 207 and 208 or
 53        section 212(d)(5) of the immigration and nationality act).
 54        (b)  Any data or information required of individuals applying for benefits
 55        to determine eligibility under this subsection shall be uniformly required
                                                                        
                                           7
                                                                        
  1        from all applicants for benefits.
  2        (c)  A decision to deny benefits under this subsection must be based on  a
  3        preponderance of the evidence.
  4        (20) An individual who has been determined to be likely to exhaust regular
  5    benefits  and  to  need  reemployment  services pursuant to a profiling system
  6    established by the director must participate in  those  reemployment  services
  7    unless:
  8        (a)  The individual has completed such services; or
  9        (b)  There  is  justifiable  cause, as determined by the director, for the
 10        claimant's failure to participate in such services.
 11        (21) (a) A claimant:
 12             (i)   Who has been assigned to work for one (1) or more customers  of
 13             a staffing service; and
 14             (ii)  Who,  at  the  time  of  hire by the staffing service, signed a
 15             written notice informing him that completion  or  termination  of  an
 16             assignment for a customer would not, of itself, terminate the employ-
 17             ment relationship with the staffing service;
 18        will  not  be  considered  unemployed upon completion or termination of an
 19        assignment until such time as he contacts the staffing service  to  deter-
 20        mine if further suitable work is available. If the claimant:
 21                  (A)  Contacts  the  staffing service and refuses a suitable work
 22                  assignment that is offered to him at that time, he will be  con-
 23                  sidered to have voluntarily quit that employment; or
 24                  (B)  Contacts the staffing service and the service does not have
 25                  a  suitable work assignment for him, he will be considered unem-
 26                  ployed due to a lack of work; or
 27                  (C)  Accepts  new  employment  without  first   contacting   the
 28                  staffing  service  for additional work, he will be considered to
 29                  have voluntarily quit employment with the staffing service.
 30        (b)  For the purposes of this  subsection,  the  term  "staffing  service"
 31        means  any  person  who  assigns individuals to work for its customers and
 32        includes, but is not limited to, professional  employers,  as  defined  in
 33        chapter 24, title 44, Idaho Code, and the employers of temporary employees
 34        as defined in section 44-2403(7), Idaho Code.
                                                                        
 35        SECTION  3.  That  Section  9-340C, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        9-340C.  RECORDS EXEMPT FROM DISCLOSURE  --  PERSONNEL  RECORDS,  PERSONAL
 38    INFORMATION,  HEALTH  RECORDS,  PROFESSIONAL DISCIPLINE. The following records
 39    are exempt from disclosure:
 40        (1)  Except as provided in this subsection, all  personnel  records  of  a
 41    current or former public official other than the public official's public ser-
 42    vice  or  employment  history,  classification, pay grade and step, longevity,
 43    gross salary and salary history, status, workplace and employing  agency.  All
 44    other personnel information relating to a public employee or applicant includ-
 45    ing,  but  not  limited  to,  information regarding sex, race, marital status,
 46    birth date, home address  and  telephone  number,  applications,  testing  and
 47    scoring  materials,  grievances,  correspondence  and performance evaluations,
 48    shall not be disclosed to the public without  the  employee's  or  applicant's
 49    written  consent.  A  public official or authorized representative may inspect
 50    and copy his personnel records, except for material used to  screen  and  test
 51    for employment.
 52        (2)  Retired employees' and retired public officials' home addresses, home
 53    telephone  numbers  and  other  financial and nonfinancial membership records;
                                                                        
                                           8
                                                                        
  1    active and  inactive member financial  and  membership  records  and  mortgage
  2    portfolio  loan documents maintained by the public employee retirement system.
  3    Financial statements prepared by retirement system staff, funding  agents  and
  4    custodians  concerning the investment of assets of the public employee retire-
  5    ment system of Idaho are not considered confidential under this chapter.
  6        (3)  Information and records submitted to the Idaho state lottery for  the
  7    performance  of  background investigations of employees, lottery retailers and
  8    major procurement contractors; audit records of lottery retailers, vendors and
  9    major procurement contractors submitted to or performed  by  the  Idaho  state
 10    lottery; validation and security tests of the state lottery for lottery games;
 11    business records and information submitted pursuant to sections 67-7412(8) and
 12    (9)  and  67-7421(8)  and  (9), Idaho Code, and such documents and information
 13    obtained and held for the  purposes  of  lottery  security  and  investigative
 14    action as determined by lottery rules unless the public interest in disclosure
 15    substantially  outweighs  the  private need for protection from public disclo-
 16    sure.
 17        (4)  Records of a personal nature as follows:
 18        (a)  Records of personal debt filed with a public  agency  or  independent
 19        public body corporate and politic pursuant to law;
 20        (b)  Personal  bank records compiled by a public depositor for the purpose
 21        of public funds transactions conducted pursuant to law;
 22        (c)  Records of ownership of financial obligations and  instruments  of  a
 23        public  agency  or  independent public body corporate and politic, such as
 24        bonds, compiled by the public agency or independent public body  corporate
 25        and politic pursuant to law;
 26        (d)  Records,  with  regard to the ownership of, or security interests in,
 27        registered public obligations;
 28        (e)  Vital statistics records; and
 29        (f)  Military records as described in  and  pursuant  to  section  65-301,
 30        Idaho Code.
 31        (5)  Information  in  an  income  or other tax return measured by items of
 32    income or sales, which is gathered by a  public  agency  for  the  purpose  of
 33    administering  the  tax,  except such information to the extent disclosed in a
 34    written decision of the tax commission pursuant to a  taxpayer  protest  of  a
 35    deficiency  determination  by the tax commission, under the provisions of sec-
 36    tion 63-3045B, Idaho Code.
 37        (6)  Records of a personal nature related directly or  indirectly  to  the
 38    application for and provision of statutory services rendered to persons apply-
 39    ing for public care for the elderly, indigent, or mentally or physically hand-
 40    icapped,  or  participation in an environmental or a public health study, pro-
 41    vided the provisions of this subsection making records exempt from  disclosure
 42    shall  not  apply  to the extent that such records or information contained in
 43    those records are necessary for a background check on an  individual  that  is
 44    required by federal law regulating the sale of firearms, guns or ammunition.
 45        (7)  Employment  security  information  and unemployment insurance benefit
 46    information, except that all interested parties may agree to waive the  exemp-
 47    tion  unless access to the information by the parties is restricted by subsec-
 48    tion (3)(a), (3)(b) or (3)(d) of section 9-342,  Idaho  Code.  Notwithstanding
 49    the provisions of section 9-342, Idaho Code, a person may not review identify-
 50    ing information concerning an informant who reported to the department of com-
 51    merce and labor a suspected violation by the person of the employment security
 52    law,  chapter 13, title 72, Idaho Code, under an assurance of confidentiality.
 53    As used in this section, "employment security information" means any  informa-
 54    tion  descriptive  of  an  identifiable person or persons that is received by,
 55    recorded by, prepared by, furnished to or collected by the department of  com-
                                                                        
                                           9
                                                                        
  1    merce  and  labor  or  the  industrial commission in the administration of the
  2    employment security law.
  3        (8)  Any personal records, other than names, business addresses and  busi-
  4    ness  phone  numbers,  such as parentage, race, religion, sex, height, weight,
  5    tax identification and social security numbers,  financial  worth  or  medical
  6    condition  submitted to any public agency or independent public body corporate
  7    and politic pursuant to a statutory requirement for licensing,  certification,
  8    permit or bonding.
  9        (9)  Unless  otherwise  provided  by  agency rule, information obtained as
 10    part of an inquiry into a person's fitness to be granted or retain a  license,
 11    certificate,  permit,  privilege,  commission or position, private association
 12    peer review committee records authorized in title 54, Idaho Code.  Any  agency
 13    which  has records exempt from disclosure under the provisions of this subsec-
 14    tion shall annually make available a statistical summary  of  the  number  and
 15    types of matters considered and their disposition.
 16        (10) The records, findings, determinations and decisions of any prelitiga-
 17    tion screening panel formed under chapters 10 and 23, title 6, Idaho Code.
 18        (11) Complaints  received  by the board of medicine and investigations and
 19    informal proceedings, including informal proceedings of any committee  of  the
 20    board  of  medicine,  pursuant  to chapter 18, title 54, Idaho Code, and rules
 21    adopted thereunder.
 22        (12) Records of the department of health and welfare or  a  public  health
 23    district that identify a person infected with a reportable disease.
 24        (13) Records  of  hospital care, medical records, including prescriptions,
 25    drug orders, records or any other prescription information  that  specifically
 26    identifies an individual patient, prescription records maintained by the board
 27    of pharmacy under section 37-2730A, Idaho Code, records of psychiatric care or
 28    treatment and professional counseling records relating to an individual's con-
 29    dition,  diagnosis, care or treatment, provided the provisions of this subsec-
 30    tion making records exempt from disclosure shall not apply to the extent  that
 31    such  records  or  information  contained in those records are necessary for a
 32    background check on an individual that is required by federal  law  regulating
 33    the sale of firearms, guns or ammunition.
 34        (14) Information  collected  pursuant  to  the directory of new hires act,
 35    chapter 16, title 72, Idaho Code.
 36        (15) Personal information contained in motor vehicle  and  driver  records
 37    that  is  exempt  from disclosure under the provisions of chapter 2, title 49,
 38    Idaho Code.
 39        (16) Records of the financial status of prisoners pursuant  to  subsection
 40    (2) of section 20-607, Idaho Code.
 41        (17) Records  of  the  Idaho  state  police  or  department  of correction
 42    received or maintained pursuant to section 19-5514, Idaho  Code,  relating  to
 43    DNA databases and databanks.
 44        (18) Records of the department of health and welfare relating to a survey,
 45    resurvey  or  complaint  investigation of a licensed nursing facility shall be
 46    exempt from disclosure. Such records shall, however, be subject to  disclosure
 47    as public records as soon as the facility in question has received the report,
 48    and  no  later  than  the fourteenth day following the date that department of
 49    health and welfare representatives officially exit the  facility  pursuant  to
 50    federal  regulations.  Provided however, that for purposes of confidentiality,
 51    no record shall be released under this section which  specifically  identifies
 52    any nursing facility resident.
 53        (19) Records  and  information  contained in the registry of immunizations
 54    against  childhood diseases maintained in the department of  health  and  wel-
 55    fare,  including  information  disseminated to others from the registry by the
                                                                        
                                           10
                                                                        
  1    department of health and welfare.
  2        (20) Records of the Idaho housing and finance association (IHFA)  relating
  3    to the following:
  4        (a)  Records containing personal financial, family, health or similar per-
  5        sonal information submitted to or otherwise obtained by the IHFA;
  6        (b)  Records submitted to or otherwise obtained by the IHFA with regard to
  7        obtaining  and  servicing  mortgage  loans and all records relating to the
  8        review, approval or rejection by the IHFA of said loans;
  9        (c)  Mortgage portfolio loan documents;
 10        (d)  Records of a current or former employee  other  than  the  employee's
 11        duration of employment with the association, position held and location of
 12        employment.  This exemption from disclosure does not include the contracts
 13        of employment or any remuneration, including reimbursement of expenses, of
 14        the executive director, executive officers or commissioners of the associ-
 15        ation. All other personnel information relating to an association employee
 16        or applicant including, but not limited  to,  information  regarding  sex,
 17        race,  marital  status,  birth  date,  home  address and telephone number,
 18        applications, testing and scoring materials,  grievances,  correspondence,
 19        retirement plan information and performance evaluations, shall not be dis-
 20        closed  to  the  public without the employee's or applicant's written con-
 21        sent. An employee or authorized representative may inspect and  copy  that
 22        employee's  personnel records, except for material used to screen and test
 23        for employment or material not subject  to  disclosure  elsewhere  in  the
 24        Idaho public records act.
 25        (21) Records of the department of health and welfare related to child sup-
 26    port  services in cases in which there is reasonable evidence of domestic vio-
 27    lence, as defined in chapter 63, title 39, Idaho Code, that  can  be  used  to
 28    locate any individuals in the child support case except in response to a court
 29    order.
 30        (22) Records  of  the Idaho state bar lawyer's assistance program pursuant
 31    to chapter 49, title 54, Idaho Code,  unless  a  participant  in  the  program
 32    authorizes  the  release  pursuant to subsection (4) of section 54-4901, Idaho
 33    Code.
 34        (23) Records and information contained in the trauma registry  created  by
 35    chapter 20, title 57, Idaho Code, together with any reports, analyses and com-
 36    pilations created from such information and records.
 37        (24) Records  contained  in  the court files, or other records prepared as
 38    part of proceedings for judicial  authorization  of  sterilization  procedures
 39    pursuant to chapter 39, title 39, Idaho Code.
 40        (25) The  physical  voter  registration card on file in the county clerk's
 41    office; however, a redacted copy of said card shall be made available  consis-
 42    tent  with the requirements of this section. Information from the voter regis-
 43    tration card maintained in the statewide voter registration database,  includ-
 44    ing  age,  will be made available except for the voter's driver's license num-
 45    ber, date of birth and, upon showing of good cause by the voter to the  county
 46    clerk in consultation with the county prosecuting attorney, the physical resi-
 47    dence  address  of  the  voter. For the purposes of this subsection good cause
 48    shall include the protection of life and property and protection of victims of
 49    domestic violence and similar crimes.
                                                                        
 50        SECTION 4.  That Section 63-3077A, Idaho Code, be, and the same is  hereby
 51    amended to read as follows:
                                                                        
 52        63-3077A.  AGREEMENTS FOR EXCHANGE OF INFORMATION AND JOINT ADMINISTRATION
 53    WITH  DEPARTMENT  OF  COMMERCE AND LABOR. (a) The state tax commission and the
                                                                        
                                           11
                                                                        
  1    department of commerce and labor  may  enter  into  a  written  agreement  for
  2    exchange  of  information  relating  to tax laws administered by the state tax
  3    commission or and the employment security law administered by  the  department
  4    of  commerce  and  labor.  Any  information so exchanged shall be confidential
  5    information in the hands of the recipient thereof and may be used only for the
  6    following:
  7        (1)  Determining whether the person to whom the  information  relates  may
  8        have  an  undischarged duty or liability under any the employment security
  9        law or  the  tax  laws  of  this  state  administered  by  the  state  tax
 10        commission, the amount of such liability, the person's whereabouts, social
 11        security number, and information helpful in collecting taxes any liability
 12        due.
 13        (2)  Administering  any joint agreement between the department of commerce
 14        and labor and the state tax commission  relating  to  employment  security
 15        taxes and income tax withholding for the common registration of employers,
 16        common tax reporting forms, centralized filing and processing of forms.
 17        (3)  Administration  of the state directory of new hires provided in chap-
 18        ter 16, title 72, Idaho Code.
 19        (b)  No such information shall be public information unless it is used  in
 20    the  course  of  a judicial proceeding arising under a the employment security
 21    law or the tax statute of this state laws administered by the state  tax  com-
 22    mission.
 23        (c)  An agreement made pursuant to this section may provide for the offset
 24    of any refunds owed to any person by either party to the agreement against any
 25    tax  liability,  or  overpayment  of benefits liability, and any penalties and
 26    interest thereon owed to the other either party to the  agreement.  No  offset
 27    may be made unless the liability against which it is applied is final, without
 28    any  further  right  on  the  part of the person owing the liability to either
 29    administrative or judicial review.
                                                                        
 30        SECTION 5.  An emergency existing  therefor,  which  emergency  is  hereby
 31    declared to exist, this act shall be in full force and effect on and after its
 32    passage and approval.

Statement of Purpose / Fiscal Impact


                          STATEMENT  OF  PURPOSE

                                 RS15940

     This legislation would enhance the Idaho Commerce & Labor's
ability to detect and deter fraud. It has an emergency clause.
 
     Section 1 provides additional methods for charging cost
reimbursement employers for benefits paid to their former
employees.

     Section 2 expands the definition of a fraud overpayment to
include all benefits paid as a result of a claimant's willful false
statement or willful failure to report a material fact. 

     Section 3 defines "employment security information" and
provides confidentiality to any informant who reports suspected
violations of the Employment Security Law to the Department.

     Section 4 allows amounts owed for penalty and interest on
debts owed to the Department or the State Tax Commission to be
offset against refunds owed to the debtor by either agency. It also
makes technical corrections.

                                
                          FISCAL NOTE
               
There is no impact on the state General Fund. Sections 2, 3 and 4
should have positive impacts on the Department's Penalty and
Interest Fund and the Unemployment Insurance Trust Fund.



CONTACT   
Name:     Bob Fick
Agency:   Idaho Commerce & Labor
Phone:    332-3570 ext. 3628; 409-9818 cell

STATEMENT OF PURPOSE/FISCAL NOTE                              H 577