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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
]]]] 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
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