2007 Legislation
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SENATE BILL NO. 1043 – Unemploymnt rpt, certain, not filed

SENATE BILL NO. 1043

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Bill Status



S1043.......................................by COMMERCE AND HUMAN RESOURCES
UNEMPLOYMENT - Amends existing law to revise the civil penalty structure
for willful failure to timely file an employer's quarterly report under the
Employment Security Law.
                                                                        
01/19    Senate intro - 1st rdg - to printing
01/22    Rpt prt - to Com/HuRes
02/14    Rpt out - rec d/p - to 2nd rdg
02/15    2nd rdg - to 3rd rdg
02/20    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Davis
    Title apvd - to House
02/21    House intro - 1st rdg - to Com/HuRes
03/02    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 61-4-5
      AYES -- Anderson, Bayer, Bell, Bilbao, Block, Bock, Boe, Bolz,
      Brackett, Bradford, Chadderdon, Chavez, Chew, Clark, Collins, Crane,
      Durst, Edmunson, Eskridge, Hagedorn, Hart, Henbest, Henderson,
      Jaquet, Killen, King, Kren, Lake, LeFavour, Luker, Marriott, Mathews,
      McGeachin, Mortimer, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
      Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24),
      Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27),
      Mr. Speaker
      NAYS -- Andrus, Barrett, Harwood, Loertscher
      Absent and excused -- Bedke, Black, Labrador, Moyle, Wood(35)
    Floor Sponsor - Trail
    Title apvd - to Senate
03/07    To enrol
03/08    Rpt enrol - Pres signed - Sp signed
03/09    To Governor
03/13    Governor signed
         Session Law Chapter 64
         Effective: 03/13/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1043
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING SECTION 72-1372, IDAHO CODE,
  3        TO REVISE THE CIVIL PENALTY STRUCTURE FOR WILLFUL FAILURE TO  TIMELY  FILE
  4        AN EMPLOYER'S QUARTERLY REPORT; AND DECLARING AN EMERGENCY.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section 72-1372, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        72-1372.  CIVIL PENALTIES. (1) The  following  civil  penalties  shall  be
  9    assessed by the director:
 10        (a)  If  a  determination is made finding that an employer willfully fails
 11        to file any report required by the director or files filed a false report,
 12        a monetary penalty equal to one hundred percent (100%) of the amount  that
 13        would  be  due  if  the employer had filed a correct report or two hundred
 14        fifty dollars ($250), whichever is greater, shall be added to the  liabil-
 15        ity of the employer for each quarter for which the employer failed to file
 16        a  report or willfully filed a false report. For the purposes of this sec-
 17        tion, a false report includes, but is not  limited  to,  a  report  for  a
 18        period  wherein  an employer pays remuneration for personal services which
 19        meets the definition of "wages" under section 72-1328, Idaho Code, and the
 20        payment is concealed, hidden, or otherwise not reported to the department.
 21        (b)  If a determination is made finding that an employer willfully  failed
 22        to  file  the  employer's quarterly unemployment insurance tax report when
 23        due, the director shall assess a monetary penalty equal to:
 24             (i)   Seventy-five dollars ($75.00) or twenty-five percent  (25%)  of
 25             the amount that would be due if the employer had filed a timely quar-
 26             terly  report,  whichever  is  greater,  if the employer had not been
 27             found in any previous determination to have willfully failed to  file
 28             a  timely quarterly report for any of the sixteen (16) preceding con-
 29             secutive calendar quarters; or
 30             (ii)  One hundred fifty dollars ($150) or fifty  percent (50%) of the
 31             amount that would be due if the employer had filed a timely quarterly
 32             report, whichever is greater, if the employer had been found  in  any
 33             previous  determination  to  have  willfully  failed to file a timely
 34             quarterly report for no more than one (1) of the sixteen (16) preced-
 35             ing consecutive calendar quarters; or
 36             (iii) Two hundred fifty dollars ($250) or one hundred percent  (100%)
 37             of  the  amount  that would be due if the employer had filed a timely
 38             quarterly report, whichever is greater,  if  the  employer  had  been
 39             found  in  any previous determination or determinations to have will-
 40             fully failed to file a timely quarterly report for two (2) or more of
 41             the sixteen (16) preceding consecutive calendar quarters.
 42        (c)  If a determination is made finding that an employer, or  any  officer
 43        or  agent or employee of the employer with the employer's knowledge, will-
                                                                        
                                       2
                                                                        
  1        fully makes made a false statement or representation  or  willfully  fails
  2        failed  to  report a material fact when submitting facts to the department
  3        concerning a claimant's separation from the  employer,  a  penalty  in  an
  4        amount  equal to ten (10) times the weekly benefit amount of such claimant
  5        shall be added to the liability of the employer.
  6        (cd)  If a  determination  is  made  finding  that  an  employer  induces,
  7        solicits,  has induced, solicited or coerces coerced an employee or former
  8        employee to file a false or fraudulent claim for benefits under this chap-
  9        ter, a penalty in an amount equal to ten (10)  times  the  weekly  benefit
 10        amount of such employee or former employee shall be added to the liability
 11        of the employer.
 12        (de)  If  a determination is made finding that an employer fails failed to
 13        complete and submit an Idaho  business  registration  form  when  due,  as
 14        required by section 72-1337(1), Idaho Code, a penalty of five hundred dol-
 15        lars ($500) shall be assessed against the employer.
 16        (ef)  For  purposes  of  paragraphs (b) and (c) and (d) of this subsection
 17        (1), the term "weekly benefit amount" means the amount calculated pursuant
 18        to section 72-1367(2), Idaho Code.
 19        (2)  At the discretion of the director, the department may  waive  all  or
 20    any  part  of  the  penalties imposed pursuant to this section if the employer
 21    shows to the satisfaction of the director that it had good cause  for  failing
 22    to comply with the requirements of this chapter and rules promulgated thereun-
 23    der.
 24        (3)  Determinations  imposing  civil  penalties  pursuant  to this section
 25    shall be served in accordance with section 72-1368(5), Idaho  Code.  Penalties
 26    imposed  pursuant  to  this  section shall be due and payable twenty (20) days
 27    after the date the determination was served  unless  an  appeal  is  filed  in
 28    accordance with section 72-1368, Idaho Code, and rules promulgated thereunder.
 29    Such  appeals  shall  be  conducted  in accordance with section 72-1368, Idaho
 30    Code, and rules promulgated thereunder.
 31        (4)  Civil penalties imposed by this section shall be in addition  to  any
 32    other  penalties  authorized  by  this chapter. The provisions of this chapter
 33    that apply to the collection  of  contributions,  and  the  rules  promulgated
 34    thereunder,  shall  also apply to the collection of penalties imposed pursuant
 35    to this section. Amounts collected pursuant to this section shall be paid into
 36    the state employment security administrative and reimbursement fund as  estab-
 37    lished by section 72-1348, Idaho Code.
                                                                        
 38        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 39    declared to exist, this act shall be in full force and effect on and after its
 40    passage and approval.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS l6535C1
                                
Section 72-1372, Idaho Code, imposes a civil penalty on employers
who fail to file tax reports when due. The current penalty is
equal to 100% of the amount that would be due if the employer had
filed the report on time, or $250, whichever is greater. The
Department of Commerce and Labor has received comments from the
public that the current penalty is too severe. This amendment
would reduce the civil penalty for the first and second offenses.
It also ties the amount of the penalty to the number of recent
offenses. Grammatical changes have also been made for clarity.


                           FISCAL NOTE
                                
The amendment will not impact the State General Fund. It will
likely decrease revenue to the Department s Employment Security
Administrative and Reimbursement Fund (Section 72-1348, Idaho
Code) and will slightly increase administrative costs.
 

CONTACT

Name:     Mark Whitworth
Agency:   Commerce and Labor, Dept. of
Phone:    332-3570

STATEMENT OF PURPOSE/FISCAL NOTE                        S 1043