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H0222......................................................by STATE AFFAIRS
COMMERCE AND LABOR - Amends and adds to existing law relating to the
Department of Commerce and Labor to provide for the Department of Commerce
and the authority and duties of the director of the Department of Commerce;
and to provide for the authority and duties of the director of the
Department of Labor.
02/22 House intro - 1st rdg - to printing
02/23 Rpt prt - 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 - 64-0-6
AYES -- Anderson, Andrus, Barrett, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Kren, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring, Ringo, Ruchti,
Rusche, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Shively,
Smith(30), Snodgrass, Thayn, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Bayer, Labrador, Nielsen, Roberts, Smith(24),
Stevenson
Floor Sponsor - Schaefer
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to St Aff
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/29 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
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(Douglas)
NAYS -- None
Absent and excused -- Burkett, Coiner
Floor Sponsors - President Pro Tempore Geddes &
Stennett
Title apvd - to House
03/29 To enrol - Rpt enrol - Sp signed
03/30 Pres signed - To Governor
04/05 Governor signed
Session Law Chapter 360
Effective: 07/01/07
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 222
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO COMMERCE AND LABOR; AMENDING THE CHAPTER HEADING OF CHAPTER 47,
3 TITLE 67, IDAHO CODE; AMENDING SECTION 67-4701, IDAHO CODE, TO PROVIDE FOR
4 THE DEPARTMENT OF COMMERCE; AMENDING SECTION 67-4702, IDAHO CODE, TO PRO-
5 VIDE FOR THE AUTHORITY AND DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF
6 COMMERCE; AMENDING SECTION 67-4703, IDAHO CODE, TO PROVIDE FOR THE POWERS
7 AND DUTIES OF THE DEPARTMENT OF COMMERCE; AMENDING SECTION 67-4711, IDAHO
8 CODE, TO REVISE DEFINITIONS; AMENDING SECTION 67-4726, IDAHO CODE, TO PRO-
9 VIDE REFERENCE TO THE DEPARTMENT OF COMMERCE RELATING TO THE SCIENCE AND
10 TECHNOLOGY ADVISORY COUNCIL; AMENDING SECTION 72-1318, IDAHO CODE, TO
11 REVISE DEFINITIONS; AMENDING CHAPTER 13, TITLE 72, IDAHO CODE, BY THE
12 ADDITION OF A NEW SECTION 72-1333, IDAHO CODE, TO PROVIDE FOR THE AUTHOR-
13 ITY AND DUTIES OF THE DIRECTOR OF THE DEPARTMENT OF LABOR; AMENDING SEC-
14 TION 72-1347A, IDAHO CODE, TO PROVIDE FOR THE DEPARTMENT OF LABOR SPECIAL
15 ADMINISTRATION FUND AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
16 72-1347B, IDAHO CODE, TO REVISE PROVISIONS RELATING TO APPROVAL OF EXPEN-
17 DITURES FROM THE WORKFORCE DEVELOPMENT TRAINING FUND AND TO MAKE A TECHNI-
18 CAL CORRECTION; AMENDING SECTION 9-340C, IDAHO CODE, TO PROVIDE REFERENCE
19 TO THE DEPARTMENT OF LABOR RELATING TO SPECIFIED EXEMPTIONS FROM DISCLO-
20 SURE; AMENDING SECTION 23-950, IDAHO CODE, TO PROVIDE REFERENCE TO THE
21 DEPARTMENT OF LABOR RELATING TO RESTRICTIONS AGAINST THE TRANSFER OF CER-
22 TAIN LICENSES; AMENDING SECTION 39-3018, IDAHO CODE, TO REVISE PROVISIONS
23 RELATING TO THE CONDUCT OF STUDIES CONCERNING NUCLEAR ENERGY DEVELOPMENT;
24 AMENDING SECTION 49-416C, IDAHO CODE, TO PROVIDE REFERENCE TO THE DEPART-
25 MENT OF COMMERCE RELATING TO SCIENCE AND TECHNOLOGY LICENSE PLATES; AMEND-
26 ING SECTION 49-2901, IDAHO CODE, TO PROVIDE REFERENCE TO THE DEPARTMENT OF
27 COMMERCE RELATING TO THE RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT
28 TRANSPORTATION PROGRAM; AMENDING SECTION 49-2902, IDAHO CODE, TO PROVIDE
29 REFERENCE TO THE DEPARTMENT OF COMMERCE RELATING TO THE INTERAGENCY WORK-
30 ING GROUP; AMENDING SECTION 49-2903, IDAHO CODE, TO PROVIDE REFERENCE TO
31 THE DEPARTMENT OF COMMERCE RELATING TO THE DUTIES OF THE INTERAGENCY WORK-
32 ING GROUP; AMENDING SECTION 49-2904, IDAHO CODE, TO PROVIDE REFERENCE TO
33 THE DEPARTMENT OF COMMERCE RELATING TO THE RURAL ECONOMIC DEVELOPMENT AND
34 INTEGRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND; AMENDING SECTION
35 49-2905, IDAHO CODE, TO PROVIDE REFERENCE TO THE DEPARTMENT OF COMMERCE
36 RELATING TO THE STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN; AMENDING
37 SECTION 59-904, IDAHO CODE, TO PROVIDE FOR VACANCIES IN OFFICES OF THE
38 DIRECTOR OF THE DEPARTMENT OF COMMERCE AND THE DIRECTOR OF THE DEPARTMENT
39 OF LABOR; AMENDING SECTION 63-2902, IDAHO CODE, TO REVISE DEFINITIONS;
40 AMENDING SECTION 63-3029J, IDAHO CODE, TO PROVIDE REFERENCE TO THE DEPART-
41 MENT OF LABOR RELATING TO THE INCENTIVE INCOME TAX INVESTMENT CREDIT;
42 AMENDING SECTION 63-3077A, IDAHO CODE, TO PROVIDE REFERENCE TO THE DEPART-
43 MENT OF LABOR RELATING TO AGREEMENTS FOR THE EXCHANGE OF CERTAIN INFORMA-
44 TION WITH THE STATE TAX COMMISSION; AMENDING SECTION 63-3622TT, IDAHO
45 CODE, TO PROVIDE REFERENCE TO THE DEPARTMENT OF COMMERCE RELATING TO MEDIA
46 PRODUCTION TAX REBATES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
2
1 63-4402, IDAHO CODE, TO REVISE DEFINITIONS; AMENDING SECTION 67-2402,
2 IDAHO CODE, TO PROVIDE THAT THE STRUCTURE OF THE EXECUTIVE BRANCH OF IDAHO
3 STATE GOVERNMENT SHALL INCLUDE THE DEPARTMENT OF COMMERCE AND THE DEPART-
4 MENT OF LABOR; AND AMENDING SECTION 67-2406, IDAHO CODE, TO PROVIDE FOR
5 THE CREATION OF THE DIRECTOR OF THE DEPARTMENT OF COMMERCE AND THE DIREC-
6 TOR OF THE DEPARTMENT OF LABOR.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That the Heading of Chapter 47, Title 67, Idaho Code, be, and
9 the same is hereby amended to read as follows:
10 CHAPTER 47
11 DEPARTMENT OF COMMERCE AND LABOR
12 SECTION 2. That Section 67-4701, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 67-4701. DEPARTMENT OF COMMERCE AND LABOR CREATED. There is hereby cre-
15 ated in the executive branch of the government, a department of commerce, and
16 labor, hereinafter referred to as the department, which shall have the duties,
17 powers and authorities hereinafter provided.
18 Whenever in Idaho Code or elsewhere, reference is made to a predecessor
19 department or agency of the department of commerce, or other than the depart-
20 ment of commerce and labor, or their predecessor departments or agencies, it
21 shall mean and hereafter be the department of commerce. and labor.
22 SECTION 3. That Section 67-4702, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 67-4702. AUTHORITY AND DUTIES OF THE DIRECTOR. (1) The director of the
25 department of commerce, and labor, hereafter the director, shall administer
26 the provisions of this chapter, the employment security law, chapter 13, title
27 72, Idaho Code, the minimum wage law, chapter 15, title 44, Idaho Code, the
28 provisions of chapter 6, title 45, Idaho Code, relating to claims for wages,
29 the provisions of section 44-1812, Idaho Code, relating to minimum medical and
30 health standards for paid firefighters, and to perform such other duties
31 relating to commerce, labor and workforce development as may be imposed upon
32 him by law. The director shall be the successor in law to the office enumer-
33 ated in section 1, article XIII, of the constitution of the state of Idaho.
34 The director shall have the authority to employ individuals, make expendi-
35 tures, require reports, make investigations, perform travel and take other
36 actions deemed necessary. The director shall organize the department which
37 shall, for the purposes of section 20, article IV, of the constitution of the
38 state of Idaho, be an executive department of the state government. The direc-
39 tor shall have an official seal which shall be judicially noticed.
40 (2) The director shall have the authority pursuant to chapter 52, title
41 67, Idaho Code, to adopt, amend, or rescind rules as he deems necessary for
42 the proper performance of all duties imposed upon him by law.
43 (3) Subject to the provisions of chapter 53, title 67, Idaho Code, the
44 director is authorized and directed to provide for a merit system for the
45 department covering all persons, except the director, two (2) deputy direc-
46 tors, the division administrators, and five two (52) exempt positions to
47 serve at the pleasure of the director.
48 (4) The director shall make recommendations for amendments to the employ-
3
1 ment security law and other laws he is charged to implement as he deems
2 proper.
3 (5) The director shall have all the powers and duties as may have been or
4 could have been exercised by his predecessors in law, except those powers and
5 duties granted and reserved to the director of the department of labor in
6 titles 44, 45, 63 and 72, Idaho Code, and he shall be the successor in law to
7 all contractual obligations entered into by his predecessors in law, except
8 for those contracts of the department of labor, or contracts pertaining to any
9 power or duty granted and reserved to the director of the department of labor
10 in titles 44, 45, 63 and 72, Idaho Code.
11 SECTION 4. That Section 67-4703, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 67-4703. POWERS AND DUTIES. The department of commerce and labor shall
14 have the power and it shall be its duty to engage in advertising the state of
15 Idaho, its resources, both developed and undeveloped, its tourist resources
16 and attractions, its agricultural, mining, lumbering and manufacturing
17 resources, its health conditions and advantages, its scenic beauty and its
18 other attractions and advantages; and in general either directly, indirectly
19 or by contract do anything and take any action which will promote and adver-
20 tise the resources and products of the state of Idaho, develop its resources
21 and industries, promote tourist travel to and within the state of Idaho, and
22 further the welfare and prosperity of its citizens.
23 The department shall also have the following duties when it deals with
24 promoting economic development and tourism within the state:
25 (1) Survey and investigate the social, economic and physical resources of
26 the state, including land, water, minerals, facilities for power, transporta-
27 tion, communications, recreation, health, education and other resources and
28 facilities; endeavor to aid the legislature and the citizens of the state of
29 Idaho in formulating a program for the development and utilization of these
30 resources and facilities, and for balancing our agricultural, timber and min-
31 ing economy with industrial capacity. It shall cooperate with local and
32 regional agencies within the state. It shall cooperate with like agencies of
33 other states, with agencies maintained by private persons or corporations, and
34 with agencies established or employed by the United States to promote the
35 development of the country and the welfare of its people.
36 (2) To develop and promote a comprehensive international marketing plan
37 for Idaho's products.
38 (3) To collect and compile reliable data for general dissemination which
39 will tend to the development of the state of Idaho by inducing people and cap-
40 ital to come within our borders.
41 (4) Keep accurate records and preserve all data collected by it, and from
42 time to time prepare and submit to the governor and the legislature, reports,
43 programs, recommendations and plans for the comprehensive, long-range develop-
44 ment, conservation and use of all the resources of the state of Idaho. It
45 shall make such special investigations as to resources, facilities, and other
46 matters as may be required by the governor or the legislature.
47 (5) Coordinate those activities of local, state, federal and private
48 agencies and departments when they deal with the promotion of Idaho's economic
49 resources.
50 (6) To require and receive from the various executive departments and
51 public officials of the state of Idaho such information as may be required by
52 the division to enable it to fulfill its functions and carry out the purposes
53 of this act.
4
1 (7) Administer and perform any other related functions or activities
2 assigned by the governor or the legislature.
3 (8) Enter into interagency agreements with other state agencies in devel-
4 oping economic and community plans and programs.
5 (9) Provide technical assistance to other state agencies upon request.
6 (10) Contract with universities, consultants and other public and private
7 agencies to develop plans and programs.
8 (11) Serve as a clearinghouse for information, data, and other materials
9 which may be used in developing Idaho's economy.
10 (12) Prepare a comprehensive economic development strategy.
11 (13) Collect and compile reliable economic data for general dissemination.
12 (14) Petition for and receive moneys such as grants or gifts, to be used
13 for state or local planning and economic development activities.
14 SECTION 5. That Section 67-4711, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 67-4711. DEFINITIONS. As used in sections 67-4710 through 67-4719, Idaho
17 Code, unless the context requires otherwise:
18 (1) "Act" means sections 67-4710 through 67-4719, Idaho Code.
19 (2) "Campground" means any privately owned business which rents areas or
20 places used for camping or parking campers, travel trailers, motorhomes or
21 tents.
22 (3) "Council" means the state of Idaho travel and convention industry
23 council.
24 (4) "Department" means the department of commerce. and labor.
25 (5) "Hotel/Motel" means an establishment which provides lodging to mem-
26 bers of the public for a fee, and shall include condominiums, townhouses or
27 any other establishment which makes a sale as herein defined.
28 (6) "Planning regions" means those seven (7) districts which shall be
29 designated by number and shall embrace the several counties as follows:
30 No. 1. The counties of Benewah, Bonner, Boundary, Kootenai and Shoshone.
31 No. 2. The counties of Clearwater, Idaho, Latah, Lewis and Nez Perce.
32 No. 3. The counties of Adams, Canyon, Gem, Payette, Washington, Ada, Owy-
33 hee, Elmore, Boise and Valley.
34 No. 4. The counties of Cassia, Gooding, Jerome, Lincoln, Minidoka and
35 Twin Falls.
36 No. 5. The counties of Bannock, Caribou, Bear Lake, Franklin, Oneida,
37 Power and Bingham.
38 No. 6. The counties of Clark, Jefferson, Fremont, Madison, Teton and Bon-
39 neville.
40 No. 7. The counties of Blaine, Camas, Lemhi, Custer and Butte.
41 (7) "Sale" means the renting of a place to sleep, to an individual by a
42 hotel, motel, or campground for a period of less than thirty-one (31) continu-
43 ous days. "Sale" shall not include the renting of a place to sleep to an indi-
44 vidual by the Idaho Ronald McDonald House.
45 SECTION 6. That Section 67-4726, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 67-4726. SCIENCE AND TECHNOLOGY ADVISORY COUNCIL -- APPOINTMENT OF MEM-
48 BERS -- QUALIFICATIONS. (1) The state of Idaho recognizes that the health and
49 expansion of Idaho's future economy will depend upon taking full advantage of
50 research and technology, and that Idaho has impressive resources for
51 technology-based growth, internationally recognized university research pro-
5
1 grams, globally competitive technology companies and the Idaho national labo-
2 ratory.
3 The science and technology advisory council is hereby created to advise
4 the department of commerce, and labor, the state board of education, state
5 colleges and universities, and other state, local, federal and private sector
6 agencies and organizations on science and technology interests and potentials;
7 to support the development and publishing of information on the condition and
8 importance of science and technology to the state's economy; to assist with
9 the development and implementation of a state strategic plan for science and
10 technology; and to assist with the coordination of local, state and federal
11 interests to increase the positive economic impact of the state's science and
12 technology resources.
13 (2) The council shall be appointed by and serve at the pleasure of the
14 governor. Membership of the council shall include individuals knowledgeable
15 and experienced in science and technology issues. The council shall include
16 representatives from the private sector who have expertise in the transfer and
17 commercialization of science and technology, and representatives from the
18 department of commerce, and labor, the office of the state board of education,
19 and the office of the governor. The governor shall designate a chairman from
20 the council's membership and the council shall designate such other officers
21 from its membership as it deems necessary. The chairman and council members
22 from the department of commerce, and labor, the office of the state board of
23 education, and the office of the governor shall serve as the executive commit-
24 tee of the council. The council shall be staffed and supported by the depart-
25 ment of commerce. and labor. Members of the council who are not state employ-
26 ees shall be compensated for actual and necessary expenses as provided by sec-
27 tion 59-509(b), Idaho Code.
28 SECTION 7. That Section 72-1318, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 72-1318. DIRECTOR -- DEPARTMENT. "Director" means the director of the
31 department of commerce and labor, the individual appointed pursuant to section
32 59-904, Idaho Code.
33 "Department" means the department of commerce and labor.
34 SECTION 8. That Chapter 13, Title 72, Idaho Code, be, and the same is
35 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
36 ignated as Section 72-1333, Idaho Code, and to read as follows:
37 72-1333. DEPARTMENT OF LABOR -- AUTHORITY AND DUTIES OF THE DIRECTOR. (1)
38 The director shall administer the employment security law, chapter 13, title
39 72, Idaho Code, the minimum wage law, chapter 15, title 44, Idaho Code, the
40 provisions of chapter 6, title 45, Idaho Code, relating to claims for wages,
41 the provisions of section 44-1812, Idaho Code, relating to minimum medical and
42 health standards for paid firefighters, the disability determinations service
43 established pursuant to 42 U.S.C. 421, and shall perform such other duties
44 relating to labor and workforce development as may be imposed upon him by law.
45 The director shall be the successor in law to the office enumerated in section
46 1, article XIII, of the constitution of the state of Idaho. The director shall
47 have the authority to employ individuals, make expenditures, require reports,
48 make investigations, perform travel and take other actions deemed necessary.
49 The director shall organize the department of labor which is hereby created,
50 and which shall, for the purposes of section 20, article IV, of the constitu-
51 tion of the state of Idaho, be an executive department of the state govern-
6
1 ment. The director shall have an official seal which shall be judicially
2 noticed.
3 (2) The director shall have the authority pursuant to chapter 52, title
4 67, Idaho Code, to adopt, amend, or rescind rules as he deems necessary for
5 the proper performance of all duties imposed upon him by law.
6 (3) Subject to the provisions of chapter 53, title 67, Idaho Code, the
7 director is authorized and directed to provide for a merit system for the
8 department covering all persons, except the director, the division administra-
9 tors, and two (2) exempt positions to serve at the pleasure of the director.
10 (4) The director shall make recommendations for amendments to the employ-
11 ment security law and other laws he is charged to implement as he deems
12 proper.
13 (5) The director shall have all the powers and duties as may have been or
14 could have been exercised by his predecessors in law, except those powers and
15 duties granted and reserved to the director of the department of commerce in
16 titles 39, 49 and 67, Idaho Code, and he shall be the successor in law to all
17 contractual obligations entered into by his predecessors in law, except for
18 those contracts of the department of commerce, or contracts pertaining to any
19 power or duty granted and reserved to the director of the department of com-
20 merce, in titles 39, 49 and 67, Idaho Code.
21 SECTION 9. That Section 72-1347A, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 72-1347A. EMPLOYMENT SECURITY RESERVE FUND -- SPECIAL ADMINISTRATION
24 FUND. (1) There is established in the state treasury a special trust fund,
25 separate and apart from all other public funds of this state, to be known as
26 the employment security reserve fund, hereinafter "reserve fund." Except as
27 provided herein, all proceeds from the reserve tax defined in subsection (2)
28 of this section shall be paid into the reserve fund. The moneys in the reserve
29 fund may be used by the director for loans to the employment security fund,
30 section 72-1346, Idaho Code, as security for loans from the federal unemploy-
31 ment insurance trust fund, and for the repayment of any interest bearing
32 advances, including interest, made under title XII of the social security act,
33 42 USC 1321 through 1324, and shall be available to the director for expendi-
34 ture in accordance with the provisions of this section. The state treasurer
35 shall be the custodian of the reserve fund and shall invest said moneys in
36 accordance with law. The state treasurer shall disburse the moneys from the
37 reserve fund in accordance with the directions of the director.
38 (2) A reserve tax is imposed on all covered employers required to pay
39 contributions pursuant to section 72-1350, Idaho Code, except deficit employ-
40 ers who have been assigned a taxable wage rate from deficit rate class six
41 pursuant to section 72-1350(8)(a), Idaho Code. The reserve tax shall be due
42 and payable at the same time and in the same manner as contributions. If the
43 reserve fund is less than one percent (1%) of state taxable wages in the
44 penultimate year as of September 30 of the preceding calendar year, the
45 reserve tax rate for all eligible, standard-rated and deficit employers shall
46 be equal to the taxable wage rate then in effect less the assigned contribu-
47 tion rate and training tax rate. The provisions of this chapter which apply to
48 the payment and collection of contributions also apply to the payment and col-
49 lection of the reserve tax, including the same calculations, assessments,
50 method of payment, penalties, interest, costs, liens, injunctive relief, col-
51 lection procedures and refund procedures. In the administration of the provi-
52 sions of this section and the collection of the reserve tax, the director is
53 granted all rights, authority, and prerogatives granted the director under the
7
1 provisions of this chapter. Moneys collected from an employer delinquent in
2 paying contributions and reserve taxes shall first be applied to pay any pen-
3 alty and interest imposed pursuant to the provisions of this chapter and shall
4 then be applied pro rata to pay delinquent contributions to the employment
5 security fund, section 72-1346, Idaho Code, and delinquent reserve taxes to
6 the reserve fund pursuant to this section. Any interest and penalties col-
7 lected pursuant to this subsection shall be paid into the state employment
8 security administrative and reimbursement fund, section 72-1348, Idaho Code,
9 and any interest or penalties refunded under this subsection shall be paid out
10 of that same fund. Reserve taxes paid pursuant to this subsection may not be
11 deducted in whole or in part by any employer from the wages of individuals in
12 its employ. All reserve taxes collected pursuant to this subsection shall be
13 deposited in the clearing account of the employment security fund, section
14 72-1346, Idaho Code, for clearance only and shall not become part of such
15 fund. After clearance, the moneys shall be deposited in the reserve fund
16 established in subsection (1) of this section. No reserve tax shall be imposed
17 for any calendar year if, as of September 30 of the preceding calendar year,
18 the balance of the reserve fund equals or exceeds one percent (1%) of the
19 state taxable wages for the penultimate calendar year, or exceeds forty-nine
20 percent (49%) of the actual balance of the employment security fund, section
21 72-1346, Idaho Code. Provided however, and not withstanding notwithstanding
22 any other provisions of this subsection, for calendar year 2006, the imposi-
23 tion of a reserve tax shall not be precluded even if the balance of the
24 reserve fund exceeds forty-nine percent (49%) of the actual balance of the
25 employment security fund.
26 (3) The interest earned from investment of the reserve fund shall be
27 deposited in a fund established in the state treasurer's office, to be known
28 as the department of commerce and labor special administration fund, hereinaf-
29 ter "special administration fund." The moneys in the special administration
30 fund shall be held separate and apart from all other public funds of this
31 state. The state treasurer shall be the custodian of this fund and may invest
32 said moneys in accordance with law. Any interest earned on said moneys shall
33 be deposited in the special administration fund. In the absence of a specific
34 appropriation, the moneys in the special administration fund are perpetually
35 appropriated to the director and may be expended with the approval of the
36 advisory council appointed pursuant to section 72-1336, Idaho Code, for costs
37 related to programs administered by the department. The director shall report
38 annually to the joint finance-appropriations committee and the advisory coun-
39 cil the expenditures and disbursements made from the fund during the preceding
40 fiscal year, and the expenditures and disbursements and commitments made dur-
41 ing the current fiscal year to date.
42 (4) Administrative costs related to the reserve fund and the special
43 administration fund shall be paid from federal administrative grants received
44 under title III of the social security act, to the extent permitted by federal
45 law, and then from the special administration fund.
46 SECTION 10. That Section 72-1347B, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 72-1347B. WORKFORCE DEVELOPMENT TRAINING FUND. (1) There is established
49 in the state treasury a special trust fund, separate and apart from all other
50 public funds of this state, to be known as the workforce development training
51 fund, hereinafter "training fund." Except as provided herein, all proceeds
52 from the training tax defined in subsection (4) of this section shall be paid
53 into the training fund. The state treasurer shall be the custodian of the
8
1 training fund and shall invest said moneys in accordance with law. Any inter-
2 est earned on the moneys in the training fund shall be deposited in the train-
3 ing fund. Moneys in the training fund shall be disbursed in accordance with
4 the directions of the director. In any month when the unencumbered balance in
5 the training fund exceeds six million dollars ($6,000,000), the excess amount
6 over six million dollars ($6,000,000) shall be transferred to the employment
7 security reserve fund, section 72-1347A, Idaho Code. For the purposes of this
8 subsection (1), the unencumbered balance in the training fund is the balance
9 in such fund reduced by the sum of:
10 (a) The amounts that have been obligated pursuant to fully-executed
11 workforce development training fund contracts;
12 (b) The amounts that have been obligated pursuant to letters of intent
13 for proposed job training projects; and
14 (c) Any administrative costs related to the training fund that are due
15 and payable.
16 (2) All moneys in the training fund are perpetually appropriated to the
17 director for expenditure in accordance with the provisions of this section.
18 The purpose of the training fund is to provide or expand training and retrain-
19 ing opportunities in an expeditious manner that would not otherwise exist for
20 Idaho's workforce. The training fund is intended to supplement, but not to
21 supplant or compete with, money available through existing training programs.
22 The moneys in the training fund shall be used for the following purposes:
23 (a) To provide training for skills necessary for specific economic oppor-
24 tunities and industrial expansion initiatives;
25 (b) To provide training to upgrade the skills of currently employed work-
26 ers at risk of being permanently laid off;
27 (c) For refunds of training taxes erroneously collected and deposited in
28 the workforce training fund;
29 (d) For all administrative expenses incurred by the department associated
30 with the collection of the training tax and any other administrative
31 expenses associated with the training fund.
32 (3) Expenditures from the training fund for purposes authorized in para-
33 graphs (a) and (b) of subsection (2) of this section shall be approved by the
34 director, and the director of the department of commerce, in consultation with
35 the office of the governor, based on procedures, criteria and performance mea-
36 sures established by the council appointed pursuant to section 72-1336, Idaho
37 Code. The activities funded by the training fund will be coordinated with sim-
38 ilar activities funded by the state division of professional-technical educa-
39 tion. Expenditures from the training fund for purposes authorized in para-
40 graphs (c) and (d) of subsection (2) of this section shall be approved by the
41 director. The director shall pay all approved expenditures as long as the
42 training fund has a positive balance. The council shall report annually to the
43 governor and the joint finance-appropriations committee the commitments and
44 expenditures made from the training fund in the preceding fiscal year and the
45 results of the activities funded by the training fund.
46 (4) A training tax is hereby imposed on all covered employers required to
47 pay contributions pursuant to section 72-1350, Idaho Code, with the exception
48 of deficit employers who have been assigned a taxable wage rate from rate
49 class six pursuant to section 72-1350, Idaho Code. The training tax rate shall
50 be equal to three percent (3%) of the taxable wage rate then in effect for
51 each eligible, standard-rated and deficit employer. The training tax shall be
52 due and payable at the same time and in the same manner as contributions. This
53 subsection is repealed effective January 1, 20012 2012, unless, prior to that
54 date, the Idaho legislature approves the continuation of this subsection by
55 repeal of this sunset clause.
9
1 (5) The provisions of this chapter which apply to the payment and collec-
2 tion of contributions also apply to the payment and collection of the training
3 tax, including the same calculations, assessments, method of payment, penal-
4 ties, interest, costs, liens, injunctive relief, collection procedures and
5 refund procedures. In the administration of the provisions of this section,
6 the director is granted all rights, authority, and prerogatives granted under
7 the provisions of this chapter. Moneys collected from an employer delinquent
8 in paying contributions, reserve taxes and the training tax shall first be
9 applied to any penalty and interest imposed pursuant to the provisions of this
10 chapter and shall then be applied pro rata to delinquent contributions to the
11 employment security fund, section 72-1346, Idaho Code, delinquent reserve
12 taxes to the reserve fund, section 72-1347A, Idaho Code, and delinquent train-
13 ing taxes to the training fund. Any interest and penalties collected pursuant
14 to this subsection shall be paid into the state employment security adminis-
15 trative and reimbursement fund, section 72-1348, Idaho Code, and any interest
16 or penalties refunded under this subsection shall be paid out of that same
17 fund. Training taxes paid pursuant to this section shall not be credited to
18 the employer's experience rating account and may not be deducted by any
19 employer from the wages of individuals in its employ. All training taxes shall
20 be deposited in the clearing account of the employment security fund, section
21 72-1346, Idaho Code, for clearance only and shall not become part of such
22 fund. After clearance, the moneys shall be deposited in the training fund
23 established in subsection (1) of this section.
24 (6) Administrative costs related to the training fund shall be paid from
25 the training fund in accordance with subsection (3) of this section.
26 SECTION 11. That Section 9-340C, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 9-340C. RECORDS EXEMPT FROM DISCLOSURE -- PERSONNEL RECORDS, PERSONAL
29 INFORMATION, HEALTH RECORDS, PROFESSIONAL DISCIPLINE. The following records
30 are exempt from disclosure:
31 (1) Except as provided in this subsection, all personnel records of a
32 current or former public official other than the public official's public ser-
33 vice or employment history, classification, pay grade and step, longevity,
34 gross salary and salary history, status, workplace and employing agency. All
35 other personnel information relating to a public employee or applicant includ-
36 ing, but not limited to, information regarding sex, race, marital status,
37 birth date, home address and telephone number, applications, testing and
38 scoring materials, grievances, correspondence and performance evaluations,
39 shall not be disclosed to the public without the employee's or applicant's
40 written consent. Names of applicants to classified or merit system positions
41 shall not be disclosed to the public without the applicant's written consent.
42 Disclosure of names as part of a background check is permitted. Names of the
43 five (5) final applicants to all other positions shall be available to the
44 public. If such group is less than five (5) finalists, then the entire list of
45 applicants shall be available to the public. A public official or authorized
46 representative may inspect and copy his personnel records, except for material
47 used to screen and test for employment.
48 (2) Retired employees' and retired public officials' home addresses, home
49 telephone numbers and other financial and nonfinancial membership records;
50 active and inactive member financial and membership records and mortgage port-
51 folio loan documents maintained by the public employee retirement system.
52 Financial statements prepared by retirement system staff, funding agents and
53 custodians concerning the investment of assets of the public employee retire-
10
1 ment system of Idaho are not considered confidential under this chapter.
2 (3) Information and records submitted to the Idaho state lottery for the
3 performance of background investigations of employees, lottery retailers and
4 major procurement contractors; audit records of lottery retailers, vendors and
5 major procurement contractors submitted to or performed by the Idaho state
6 lottery; validation and security tests of the state lottery for lottery games;
7 business records and information submitted pursuant to sections 67-7412(8) and
8 (9) and 67-7421(8) and (9), Idaho Code, and such documents and information
9 obtained and held for the purposes of lottery security and investigative
10 action as determined by lottery rules unless the public interest in disclosure
11 substantially outweighs the private need for protection from public disclo-
12 sure.
13 (4) Records of a personal nature as follows:
14 (a) Records of personal debt filed with a public agency or independent
15 public body corporate and politic pursuant to law;
16 (b) Personal bank records compiled by a public depositor for the purpose
17 of public funds transactions conducted pursuant to law;
18 (c) Records of ownership of financial obligations and instruments of a
19 public agency or independent public body corporate and politic, such as
20 bonds, compiled by the public agency or independent public body corporate
21 and politic pursuant to law;
22 (d) Records, with regard to the ownership of, or security interests in,
23 registered public obligations;
24 (e) Vital statistics records; and
25 (f) Military records as described in and pursuant to section 65-301,
26 Idaho Code.
27 (5) Information in an income or other tax return measured by items of
28 income or sales, which is gathered by a public agency for the purpose of
29 administering the tax, except such information to the extent disclosed in a
30 written decision of the tax commission pursuant to a taxpayer protest of a
31 deficiency determination by the tax commission, under the provisions of sec-
32 tion 63-3045B, Idaho Code.
33 (6) Records of a personal nature related directly or indirectly to the
34 application for and provision of statutory services rendered to persons apply-
35 ing for public care for the elderly, indigent, or mentally or physically hand-
36 icapped, or participation in an environmental or a public health study, pro-
37 vided the provisions of this subsection making records exempt from disclosure
38 shall not apply to the extent that such records or information contained in
39 those records are necessary for a background check on an individual that is
40 required by federal law regulating the sale of firearms, guns or ammunition.
41 (7) Employment security information and unemployment insurance benefit
42 information, except that all interested parties may agree to waive the exemp-
43 tion unless access to the information by the parties is restricted by subsec-
44 tion (3)(a), (3)(b) or (3)(d) of section 9-342, Idaho Code. Notwithstanding
45 the provisions of section 9-342, Idaho Code, a person may not review identify-
46 ing information concerning an informant who reported to the department of com-
47 merce and labor a suspected violation by the person of the employment security
48 law, chapter 13, title 72, Idaho Code, under an assurance of confidentiality.
49 As used in this section, "employment security information" means any informa-
50 tion descriptive of an identifiable person or persons that is received by,
51 recorded by, prepared by, furnished to or collected by the department of com-
52 merce and labor or the industrial commission in the administration of the
53 employment security law.
54 (8) Any personal records, other than names, business addresses and busi-
55 ness phone numbers, such as parentage, race, religion, sex, height, weight,
11
1 tax identification and social security numbers, financial worth or medical
2 condition submitted to any public agency or independent public body corporate
3 and politic pursuant to a statutory requirement for licensing, certification,
4 permit or bonding.
5 (9) Unless otherwise provided by agency rule, information obtained as
6 part of an inquiry into a person's fitness to be granted or retain a license,
7 certificate, permit, privilege, commission or position, private association
8 peer review committee records authorized in title 54, Idaho Code. Any agency
9 which has records exempt from disclosure under the provisions of this subsec-
10 tion shall annually make available a statistical summary of the number and
11 types of matters considered and their disposition.
12 (10) The records, findings, determinations and decisions of any prelitiga-
13 tion screening panel formed under chapters 10 and 23, title 6, Idaho Code.
14 (11) Complaints received by the board of medicine and investigations and
15 informal proceedings, including informal proceedings of any committee of the
16 board of medicine, pursuant to chapter 18, title 54, Idaho Code, and rules
17 adopted thereunder.
18 (12) Records of the department of health and welfare or a public health
19 district that identify a person infected with a reportable disease.
20 (13) Records of hospital care, medical records, including prescriptions,
21 drug orders, records or any other prescription information that specifically
22 identifies an individual patient, prescription records maintained by the board
23 of pharmacy under sections 37-2726 and 37-2730A, Idaho Code, records of psy-
24 chiatric care or treatment and professional counseling records relating to an
25 individual's condition, diagnosis, care or treatment, provided the provisions
26 of this subsection making records exempt from disclosure shall not apply to
27 the extent that such records or information contained in those records are
28 necessary for a background check on an individual that is required by federal
29 law regulating the sale of firearms, guns or ammunition.
30 (14) Information collected pursuant to the directory of new hires act,
31 chapter 16, title 72, Idaho Code.
32 (15) Personal information contained in motor vehicle and driver records
33 that is exempt from disclosure under the provisions of chapter 2, title 49,
34 Idaho Code.
35 (16) Records of the financial status of prisoners pursuant to subsection
36 (2) of section 20-607, Idaho Code.
37 (17) Records of the Idaho state police or department of correction
38 received or maintained pursuant to section 19-5514, Idaho Code, relating to
39 DNA databases and databanks.
40 (18) Records of the department of health and welfare relating to a survey,
41 resurvey or complaint investigation of a licensed nursing facility shall be
42 exempt from disclosure. Such records shall, however, be subject to disclosure
43 as public records as soon as the facility in question has received the report,
44 and no later than the fourteenth day following the date that department of
45 health and welfare representatives officially exit the facility pursuant to
46 federal regulations. Provided however, that for purposes of confidentiality,
47 no record shall be released under this section which specifically identifies
48 any nursing facility resident.
49 (19) Records and information contained in the registry of immunizations
50 against childhood diseases maintained in the department of health and welfare,
51 including information disseminated to others from the registry by the depart-
52 ment of health and welfare.
53 (20) Records of the Idaho housing and finance association (IHFA) relating
54 to the following:
55 (a) Records containing personal financial, family, health or similar per-
12
1 sonal information submitted to or otherwise obtained by the IHFA;
2 (b) Records submitted to or otherwise obtained by the IHFA with regard to
3 obtaining and servicing mortgage loans and all records relating to the
4 review, approval or rejection by the IHFA of said loans;
5 (c) Mortgage portfolio loan documents;
6 (d) Records of a current or former employee other than the employee's
7 duration of employment with the association, position held and location of
8 employment. This exemption from disclosure does not include the contracts
9 of employment or any remuneration, including reimbursement of expenses, of
10 the executive director, executive officers or commissioners of the associ-
11 ation. All other personnel information relating to an association employee
12 or applicant including, but not limited to, information regarding sex,
13 race, marital status, birth date, home address and telephone number,
14 applications, testing and scoring materials, grievances, correspondence,
15 retirement plan information and performance evaluations, shall not be dis-
16 closed to the public without the employee's or applicant's written con-
17 sent. An employee or authorized representative may inspect and copy that
18 employee's personnel records, except for material used to screen and test
19 for employment or material not subject to disclosure elsewhere in the
20 Idaho public records act.
21 (21) Records of the department of health and welfare related to child sup-
22 port services in cases in which there is reasonable evidence of domestic vio-
23 lence, as defined in chapter 63, title 39, Idaho Code, that can be used to
24 locate any individuals in the child support case except in response to a court
25 order.
26 (22) Records of the Idaho state bar lawyer's assistance program pursuant
27 to chapter 49, title 54, Idaho Code, unless a participant in the program
28 authorizes the release pursuant to subsection (4) of section 54-4901, Idaho
29 Code.
30 (23) Records and information contained in the trauma registry created by
31 chapter 20, title 57, Idaho Code, together with any reports, analyses and com-
32 pilations created from such information and records.
33 (24) Records contained in the court files, or other records prepared as
34 part of proceedings for judicial authorization of sterilization procedures
35 pursuant to chapter 39, title 39, Idaho Code.
36 (25) The physical voter registration card on file in the county clerk's
37 office; however, a redacted copy of said card shall be made available consis-
38 tent with the requirements of this section. Information from the voter regis-
39 tration card maintained in the statewide voter registration database, includ-
40 ing age, will be made available except for the voter's driver's license num-
41 ber, date of birth and, upon showing of good cause by the voter to the county
42 clerk in consultation with the county prosecuting attorney, the physical resi-
43 dence address of the voter. For the purposes of this subsection good cause
44 shall include the protection of life and property and protection of victims of
45 domestic violence and similar crimes.
46 (26) File numbers, passwords and information in the files of the health
47 care directive registry maintained by the secretary of state under section
48 39-4515, Idaho Code, are confidential and shall not be disclosed to any person
49 other than to the person who executed the health care directive or the revoca-
50 tion thereof and that person's legal representatives, to the person who regis-
51 tered the health care directive or revocation thereof, and to physicians, hos-
52 pitals, medical personnel, nursing homes, and other persons who have been
53 granted file number and password access to the documents within that specific
54 file.
13
1 SECTION 12. That Section 23-950, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 23-950. RESTRICTION AGAINST TRANSFER OF LICENSE. (1) No license issued
4 under the provisions of this chapter shall be renewed, transferred, assigned,
5 leased or sold if:
6 (a) The state tax commission has notified the director and the licensee
7 in writing that any tax imposed by chapters 30 and 36, title 63, Idaho
8 Code, interest, penalty, and additional amount, which has accrued as a
9 result of the operation of the licensed premises has been assessed as that
10 term is defined in section 63-3045A, Idaho Code, against the licensee or
11 any person operating the licensed premises with the permission of the
12 licensee; or
13 (b) The department of commerce and labor has notified the director and
14 the licensee in writing that a lien has been filed against the licensee or
15 any person operating the licensed premises with the permission of the
16 licensee, as a result of the operation of the licensed premises securing
17 amounts due pursuant to chapter 13, title 72, Idaho Code.
18 (2) At such time as the state tax commission or the department of com-
19 merce and labor has notified the director and licensee as herein provided, the
20 license issued for the premises the operation of which has resulted in the
21 accrual of the tax for which the warrant or lien is outstanding shall be sub-
22 ject to levy and distraint pursuant to chapter 30, title 63, Idaho Code, or
23 seizure pursuant to section 72-1360A, Idaho Code.
24 SECTION 13. That Section 39-3018, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 39-3018. CONDUCT OF STUDIES CONCERNING NUCLEAR ENERGY DEVELOPMENT. Each
27 of the several departments and agencies of this state, including specifically
28 the state department of environmental quality, the state department of labor
29 and industrial services division of building safety, the state industrial com-
30 mission, and the department of commerce, in the office of the governor, is
31 directed:
32 (1) To initiate and to pursue continuing studies as may be requested from
33 time to time by the nuclear energy commission relative to the need for changes
34 in the laws, regulations and programs administered by it so as to further the
35 development of the peaceful and productive uses of nuclear energy in this
36 state, and to make such recommendations, on the basis of such studies, for the
37 enactment of laws or amendments to law administered by it, and such proposals
38 for amendments to the regulations issued by it, as may appear necessary and
39 appropriate.
40 (2) To otherwise cooperate with the nuclear energy commission, the office
41 of nuclear energy development, and the state radiation control agency in the
42 performance of their duties as set out in this act.
43 SECTION 14. That Section 49-416C, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 49-416C. SCIENCE AND TECHNOLOGY PLATES. (1) Any person who is the owner
46 of a vehicle registered under the provisions of section 49-402 or 49-434(1),
47 Idaho Code, or registered under any other section of law for which the pur-
48 chase of special plates is allowed, may apply for and, upon department
49 approval, receive special science and technology license plates in lieu of
50 regular license plates. The provisions of this section shall not apply to any
14
1 vehicle with a registered maximum gross weight over twenty-six thousand
2 (26,000) pounds. Availability of science and technology license plates for
3 other vehicles shall be subject to the rules, policies and procedures of the
4 department.
5 (2) In addition to the regular registration fee required in chapter 4,
6 title 49, Idaho Code, the applicant shall be charged a fee of thirty-five dol-
7 lars ($35.00) for the initial issuance of plates, and twenty-five dollars
8 ($25.00) upon each succeeding annual registration. Ten dollars ($10.00) of the
9 initial fee and ten dollars ($10.00) of the renewal fee shall be deposited in
10 the state highway account and shall be used to fund the cost of administration
11 of this special license plate program. Twenty-five dollars ($25.00) of each
12 initial fee and fifteen dollars ($15.00) of each renewal fee shall be trans-
13 ferred by the state treasurer for deposit to the office of science and tech-
14 nology fund created in section 67-4725, Idaho Code, and shall be used by the
15 science technology division of the department of commerce for attracting sci-
16 ence and technology companies to locate or to expand their operations in
17 Idaho.
18 (3) Whenever title or interest in a vehicle registered under the provi-
19 sions of this section is transferred or assigned, the owner may transfer the
20 special plates to another vehicle upon payment of the required transfer fees.
21 The owner may only display the plates on another vehicle upon receipt of the
22 new registration from the department.
23 (4) The science and technology license plate shall be of a color and
24 design in accordance with the provisions of section 49-402C, Idaho Code. The
25 design and any slogan on the plate shall be acceptable to the director of the
26 department of commerce and labor and shall be approved by the Idaho transpor-
27 tation department utilizing a numbering system as determined by the depart-
28 ment. Initial costs of the plate program, including costs of plate design,
29 shall be paid by the department of commerce. and labor.
30 (5) Sample science and technology license plates may be purchased for a
31 fee of thirty dollars ($30.00), ten dollars ($10.00) of which shall be depos-
32 ited in the state highway account and twenty dollars ($20.00) of which shall
33 be transferred to the office of science and technology fund, and shall be used
34 by the office for attracting science and technology companies to locate or to
35 expand their operations in Idaho.
36 SECTION 15. That Section 49-2901, Idaho Code, be, and the same is hereby
37 amended to read as follows:
38 49-2901. RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
39 PROGRAM. (1) The Idaho rural economic development and integrated freight
40 transportation program is hereby established. The Idaho department of commerce
41 and labor is designated and authorized to administer the rural economic devel-
42 opment and integrated freight transportation program.
43 (2) State funding for rural freight transportation service projects shall
44 benefit the state's interest by assisting businesses and industries to develop
45 and expand their operations in shipping freight and products to market. The
46 state's interest is served by maintaining competitive transportation services
47 for Idaho freight shippers, reducing public roadway maintenance and repair
48 costs, increasing economic development opportunities, increasing domestic and
49 international trade, creating and preserving jobs, and enhancing safety. State
50 funding for projects is contingent upon appropriate private sector partner-
51 ships with state and local governments, participation and cooperation. Before
52 recommending the spending of these dedicated state moneys on intermodal proj-
53 ects, the Idaho department of commerce and labor shall seek federal, local and
15
1 private funding and participation to the greatest extent possible. Whenever
2 possible, the department shall seek to assist a private sector solution for
3 the implementation of this chapter.
4 SECTION 16. That Section 49-2902, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 49-2902. INTERAGENCY WORKING GROUP CREATED. (1) An interagency working
7 group is hereby created to advise the department of commerce and labor on
8 issues and policies in support of the department of commerce's and labor's
9 administration of the rural economic development and integrated freight trans-
10 portation program established in section 49-2901, Idaho Code. The interagency
11 working group shall participate in planning and identifying program needs and
12 shall carry out its duties specified in section 49-2903, Idaho Code. Before
13 recommending state funding, using state dedicated funds, and recommending pri-
14 orities, the interagency working group shall seek pertinent information, facts
15 and data from state and local governments, and agencies regarding rural
16 freight transportation issues.
17 (2) The interagency working group shall be composed of seven (7) members:
18 (a) Four (4) members shall be appointed by the director of the Idaho
19 transportation department, two (2) of whom shall be employees of the Idaho
20 transportation department with a working knowledge of rail and truck
21 freight transportation and intermodal entities, one (1) member, not a
22 state employee, shall represent freight shipping interests, and one (1)
23 member shall be a representative from the local highway technical assis-
24 tance council; and
25 (b) Three (3) members shall be appointed by the director of the depart-
26 ment of commerce, and labor, two (2) of whom shall be employees of the
27 department of commerce and labor with a working knowledge of economic
28 development issues, and one (1) member, not a state employee, shall repre-
29 sent business development and financing interests.
30 (c) At the beginning of each state fiscal year, the director of the
31 Idaho transportation department shall designate one (1) of his appointees
32 as cochairman, and the director of the department of commerce and labor
33 shall designate one (1) of his appointees as cochairman.
34 (d) Each member appointed shall serve at the pleasure of the appointing
35 authority, provided however, the service of state employee members shall
36 run concurrently with their state employment. Nonstate employee members
37 shall serve one (1) term of five (5) years, but may be appointed to serve
38 nonconsecutive terms, and shall be reimbursed according to the provisions
39 of section 59-509(b), Idaho Code.
40 (e) The interagency working group shall meet at such times as necessary
41 and appropriate to review applications for funds distributed pursuant to
42 the provisions of this chapter, but not less frequently than annually.
43 (3) The department of commerce and labor shall determine and provide such
44 amounts as are necessary for planning and operating expenses and staff assis-
45 tance and support in order to administer the program, and to administer the
46 fund established in section 49-2904, Idaho Code.
47 SECTION 17. That Section 49-2903, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 49-2903. DUTIES OF THE INTERAGENCY WORKING GROUP. (1) The interagency
50 working group shall provide recommendations to the department of commerce and
51 labor in order for that department to establish criteria for evaluating
16
1 intermodal projects of significance to the state, and the interagency working
2 group shall continue to monitor projects for which it provides assistance to
3 the department of commerce. and labor.
4 (2) The interagency working group shall provide recommendations to the
5 department of commerce and labor in order for the department to develop crite-
6 ria for prioritizing freight rail and intermodal projects that meet the mini-
7 mum eligibility requirements for state financial support from the revolving
8 loan fund created in section 49-2904, Idaho Code. Project criteria should con-
9 sider the level of local financial commitment to the project as well as the
10 cost/benefit ratio. Railroads, shippers, intermodal commerce authorities as
11 defined in chapter 22, title 70, Idaho Code, and others who benefit from the
12 project should participate financially to the greatest extent practicable.
13 (3) The interagency working group shall provide the assistance necessary
14 for the department to ensure that the state maintains a contingent interest in
15 any equipment, property, rail line, or facility that has outstanding grants or
16 loans. The owner of a qualified line as defined in section 49-2904, Idaho
17 Code, shall not use the line as collateral, remove track, bridges or associ-
18 ated elements for salvage, or use it in any other manner subordinating the
19 state's interest until any loan made to the owner pursuant to this chapter has
20 been repaid in full. As the state is not a primary lender of money, it is
21 understood the state may need to take a subordinate position for its contin-
22 gent interest.
23 SECTION 18. That Section 49-2904, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 49-2904. RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
26 REVOLVING LOAN FUND. (1) The rural economic development and integrated freight
27 transportation revolving loan fund is hereby created in the state treasury.
28 The department of commerce and labor is authorized to administer the rural
29 economic development and integrated freight transportation revolving loan
30 fund. Moneys in the fund shall be used only for the purposes specified in this
31 chapter. Surplus moneys in the fund shall be invested by the state treasurer
32 in the same manner as provided under section 67-1210, Idaho Code, with respect
33 to other surplus or idle moneys in the state treasury. Interest earned on the
34 investments shall be returned to the rural economic development and integrated
35 freight transportation revolving loan fund.
36 (2) Moneys in the fund are subject to appropriation and may consist of
37 appropriations, grants, repayment of loans and other revenues from any other
38 sources.
39 (3) Moneys in the fund may be used for loans or grants for qualified
40 rural projects for the development and preservation of intermodal rail and
41 truck services and facilities upon terms and conditions to be determined by
42 the department of commerce and labor with the assistance and advice of the
43 interagency working group as appropriate, for the purpose of:
44 (a) Rehabilitating, or improving rail lines to preserve essential local
45 rail service;
46 (b) Purchasing or rehabilitating railroad equipment necessary to maintain
47 essential rail service;
48 (c) Construction of loading or reloading facilities or other capital
49 improvements including building or improving local transportation infra-
50 structure, to increase business and commerce, and to improve shipping ser-
51 vice; or
52 (d) Coordinating intermodal truck and rail traffic for integrated rural
53 freight transportation.
17
1 (4) For the purposes of this chapter, "qualified lines" means class III
2 short lines, branch lines of class I railroads leased or operated by a class
3 III railroad, branch lines of class II railroads, and lines owned by public
4 entities including port districts and intermodal commerce authorities. Defini-
5 tion of class I, II and III railroads shall be as defined by the federal rail-
6 road administration.
7 (5) Moneys received by the department of commerce and labor from loan
8 payments or other revenues shall be redeposited in the rural economic develop-
9 ment and integrated freight transportation fund. Repayment of loans made under
10 this chapter shall occur within a period as set by the department, but no
11 repayment which exceeds fifteen (15) years shall be allowed. The repayment
12 schedule and rate of interest shall be determined before the moneys are dis-
13 tributed.
14 (6) Moneys distributed under the provisions of this chapter shall be pro-
15 vided as loans to qualified lines or shippers.
16 SECTION 19. That Section 49-2905, Idaho Code, be, and the same is hereby
17 amended to read as follows:
18 49-2905. STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN. (1) The Idaho
19 transportation department shall prepare and periodically update a state rail
20 and intermodal facility system plan, a primary objective of which is to iden-
21 tify, evaluate and encourage the development and preservation of essential
22 rail and truck intermodal services. The plan shall:
23 (a) Identify and describe the state's rail system;
24 (b) Prepare state rail system maps;
25 (c) Identify and evaluate mainline capacity issues in cooperation with
26 the railroads;
27 (d) Identify and evaluate rail access and congestion issues;
28 (e) Identify and evaluate rail commodity flows and traffic types;
29 (f) Identify lines and corridors that have been rail banked or preserved;
30 (g) Identify and evaluate other rail and intermodal issues affecting the
31 state's freight transportation system and regional and local economies;
32 (h) Identify and evaluate those rail freight lines that are potentially
33 subject to abandonment in the future because of unmet capital needs or
34 other reasons, or have recently been approved for abandonment but the
35 track improvements are still in place;
36 (i) Establish priorities for determining which rail lines or intermodal
37 commerce authorities should receive state support, and provide to the
38 interagency working group supporting information used in establishing such
39 priorities for use by the interagency working group in advising the
40 department of commerce. and labor. The priorities should include:
41 (i) The anticipated benefits to the state and local economy;
42 (ii) Coordinated freight transportation system including the antici-
43 pated cost of road and highway improvements necessitated by the pro-
44 posed project;
45 (iii) Establishment of an intermodal facility, if indicated;
46 (iv) The likelihood the qualified line receiving funding can meet
47 operating costs from freight charges, surcharges on rail traffic and
48 other funds; and
49 (v) The impact of abandonment or capacity constraints if the proj-
50 ect does not obtain state support; and
51 (j) Identify and describe the state's intermodal rural rail and truck
52 freight system by:
53 (i) Preparing state intermodal and regional freight transfer sta-
18
1 tion system maps;
2 (ii) Identifying and evaluating intermodal and truck and rail
3 freight transfer capacity and coordination issues in cooperation with
4 local government and the railroad and truck interests;
5 (iii) Identifying and evaluating intermodal and freight transfer
6 access and highway capacity issues; and
7 (iv) Identifying and evaluating major freight commodity origins,
8 destinations and traffic flows by mode and corridor.
9 (2) The Idaho transportation department shall provide information to the
10 interagency working group for assisting and advising the department of com-
11 merce and labor to monitor the status of the state's mainline, short line and
12 branch line common carrier railroads through the state rail planning process
13 and various analyses. In addition, the Idaho transportation department shall
14 submit to the interagency working group, its evaluation of alternatives to
15 abandonment prior to federal surface transportation board proceedings, where
16 feasible.
17 (3) The state rail and intermodal facility system plan may be prepared in
18 conjunction with any rail plan currently prepared by the Idaho transportation
19 department pursuant to other federal rail assistance programs, or which may
20 be enacted, including if applicable, the federal local rail freight assistance
21 program.
22 SECTION 20. That Section 59-904, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 59-904. STATE OFFICES -- VACANCIES, HOW FILLED AND CONFIRMED. (a) All
25 vacancies in any state office, and in the supreme and district courts, unless
26 otherwise provided for by law, shall be filled by appointment by the governor.
27 Appointments to fill vacancies pursuant to this section shall be made as pro-
28 vided in subsections (b), (c), (d), (e), and (f) of this section, subject to
29 the limitations prescribed in those subsections.
30 (b) Nominations and appointments to fill vacancies occurring in the
31 office of lieutenant governor, state controller, state treasurer, superintend-
32 ent of public instruction, attorney general and secretary of state shall be
33 made by the governor, subject to the advice and consent of the senate, for the
34 balance of the term of office to which the predecessor of the person appointed
35 was elected.
36 (c) Nominations and appointments to and vacancies in the following listed
37 offices shall be made or filled by the governor subject to the advice and con-
38 sent of the senate for the terms prescribed by law, or in case such terms are
39 not prescribed by law, then to serve at the pleasure of the governor:
40 Director of the department of administration,
41 Director of the department of finance,
42 Director of the department of insurance,
43 Director, department of agriculture,
44 Director of the department of water resources,
45 Director of the Idaho state police,
46 Director of the department of commerce, and labor,
47 Director of the department of labor,
48 Director of the department of environmental quality,
49 Director of the department of juvenile corrections,
50 Executive director of the commission of pardons and parole,
51 The state historic preservation officer,
52 The administrator of the division of human resources,
53 Member of the state tax commission,
19
1 Members of the board of regents of the university of Idaho and the state
2 board of education,
3 Members of the Idaho water resources board,
4 Members of the state fish and game commission,
5 Members of the Idaho transportation board,
6 Members of the state board of health and welfare,
7 Members of the board of environmental quality,
8 Members of the board of directors of state parks and recreation,
9 Members of the board of correction,
10 Members of the industrial commission,
11 Members of the Idaho public utilities commission,
12 Members of the Idaho personnel commission,
13 Members of the board of directors of the Idaho state retirement system,
14 Members of the board of directors of the state insurance fund,
15 Members of the commission of pardons and parole.
16 (d) Appointments made by the state board of land commissioners to the
17 office of director, department of lands, and appointments to fill vacancies
18 occurring in those offices shall be submitted by the president of the state
19 board of land commissioners to the senate for the advice and consent of the
20 senate in accordance with the procedure prescribed in this section.
21 (e) Appointments made pursuant to this section while the senate is in
22 session shall be submitted to the senate forthwith for the advice and consent
23 of that body. The appointment so made and submitted shall not be effective
24 until the approval of the senate has been recorded in the journal of the sen-
25 ate. Appointments made pursuant to this section while the senate is not in
26 session shall be effective until the appointment has been submitted to the
27 senate for the advice and consent of the senate. Should the senate adjourn
28 without granting its consent to such an interim appointment the appointment
29 shall thereupon become void and a vacancy in the office to which the appoint-
30 ment was made shall exist.
31 All appointments made pursuant to subsection (c) of this section, except
32 those appointments for which a term of office is fixed by law, shall terminate
33 at the expiration of any gubernatorial term. Appointments to fill the vacan-
34 cies thus created by the expiration of the term of office of the governor
35 shall be forthwith submitted to the senate for the advice and consent of that
36 body, and when so submitted shall be as expeditiously considered as possible.
37 Upon receipt of an appointment in the senate for the purpose of securing
38 the advice and consent of the senate, the appointment shall be referred by the
39 presiding officer to the appropriate committee of the senate for consideration
40 and report prior to action thereon by the full senate.
41 (f) It is the intent of the legislature that the provisions of this sec-
42 tion as amended by this chapter shall not apply to appointments which have
43 been made prior to the effective date of this chapter. It is the further
44 intent of the legislature that the provisions of this section shall apply to
45 the offices listed in this section and to any office created by law or execu-
46 tive order which succeeds to the powers, duties, responsibilities and authori-
47 ties of any of the offices listed in subsections (c) and (d) of this section.
48 SECTION 21. That Section 63-2902, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 63-2902. DEFINITIONS. (1) The definitions contained in the Idaho income
51 tax act, shall apply to this chapter unless modified in this chapter or unless
52 the context clearly requires another definition.
53 (2) As used in this chapter:
20
1 (a) "Commission" means the Idaho state tax commission.
2 (b) "Headquarters or administrative facilities" means facility or facili-
3 ties, including related parking facilities, where corporate staff employ-
4 ees are physically employed, and where the majority of the company's ser-
5 vices are handled either on a regional or national basis. Company services
6 may include: accounts receivable and payable, accounting, data processing,
7 distribution management, employee benefit plan, financial and securities
8 accounting, information technology, insurance, legal, merchandising, pay-
9 roll, personnel, purchasing/procurement, planning, reporting and compli-
10 ance, tax, treasury, or other headquarters-related services.
11 (c) "Idaho income tax act" means chapter 30, title 63, Idaho Code.
12 (d) "Investment in new plant" means investment in headquarters or admin-
13 istrative facilities, that are:
14 (i) Qualified investments; or
15 (ii) Buildings or structural components of buildings.
16 (e) "New employee":
17 (i) Means an individual, employed primarily within the project site
18 by the taxpayer, subject to Idaho income tax withholding whether or
19 not any amounts are required to be withheld, covered for unemployment
20 insurance purposes under chapter 13, title 72, Idaho Code, and who
21 was eligible to receive employer provided coverage under a health
22 benefit plan as described in section 41-4703, Idaho Code, during the
23 taxable year. A person shall be deemed to be so employed if such per-
24 son performs duties on a regular full-time basis.
25 (ii) The number of employees employed primarily within the project
26 site by the taxpayer, during any taxable year for a taxpayer shall be
27 the mathematical average of the number of such employees reported to
28 the Idaho department of commerce and labor for employment security
29 purposes during the twelve (12) months of the taxable year which
30 qualified under paragraph (e)(i) of this subsection (2). In the event
31 the business is in operation for less than the entire taxable year,
32 the number of employees of the taxpayer for the year shall be the
33 average number actually employed during the months of operation, pro-
34 vided that the qualifications of paragraph (e)(i) of this subsection
35 (2) are met.
36 (iii) Existing employees of the taxpayer who obtain new qualifying
37 positions within the project site and employees transferred from a
38 related taxpayer or acquired as part of the acquisition of a trade or
39 business from another taxpayer within the prior twelve (12) months
40 are not included in this definition unless the new position or trans-
41 fer creates a net new job in Idaho.
42 (f) "Project period" means the period of time beginning at the earlier of
43 a physical change to the project site or the first employment of new
44 employees located in Idaho who are related to the activities at the proj-
45 ect site, but no earlier than January 1, 2005, and ending when the facili-
46 ties constituting the project are placed in service, but no later than
47 December 31, 2009.
48 (g) "Project site" means an area or areas at which headquarters and head-
49 quarters facilities are located and at which the tax incentive criteria
50 have been or will be met and which are either:
51 (i) A single geographic area located in this state at which the
52 headquarters or administrative facilities owned or leased by the tax-
53 payer are located; or
54 (ii) One (1) or more geographic areas located in this state if
55 eighty percent (80%) or more of the investment required by subsection
21
1 (2)(j)(i) of this section is made at one (1) of the areas.
2 (iii) The project site must be identified and described to the com-
3 mission by a taxpayer subject to tax under the Idaho income tax act,
4 in the form and manner prescribed by the commission.
5 (h) "Qualified investment" shall be defined as in section 63-3029B, Idaho
6 Code.
7 (i) "Recapture period" means:
8 (i) In the case of credits described in sections 63-2903 and
9 63-2904, Idaho Code, the same period for which a recapture of invest-
10 ment tax credit under section 63-3029B, Idaho Code, is required; or
11 (ii) In the case of credits described in section 63-2905, Idaho
12 Code, five (5) years from the date the project period ends.
13 (j) "Tax incentive criteria" means a taxpayer meeting at a project site
14 the requirements of both subparagraphs (i) and (ii) of this paragraph (j).
15 (i) During the project period, making capital investments in new
16 plant of at least fifty million dollars ($50,000,000) at the project
17 site.
18 (ii) During a period of time beginning on January 1, 2005, and end-
19 ing at the conclusion of the project period:
20 1. Increasing employment at the project site by at least five
21 hundred (500) new employees:
22 (A) Each of whom must earn at least twenty-four dollars
23 and four cents ($24.04) per hour worked during the
24 taxpayer's taxable year; or
25 (B) Each of whom is part of a group of five hundred (500)
26 or more employees at the project site which group on aver-
27 age earns at least twenty-eight dollars and eighty-five
28 cents ($28.85) per hour worked during the taxpayer's tax-
29 able year. Calculation of the group average earnings may
30 not include amounts paid to any employee earning more than
31 ninety-six dollars and fifteen cents ($96.15) or less than
32 fifteen dollars and fifty cents ($15.50) per hour worked
33 during the taxpayer's taxable year.
34 (C) Earnings calculated pursuant to subparagraph (ii) of
35 this paragraph (j) shall include income upon which Idaho
36 income tax withholding is required under section 63-3035,
37 Idaho Code, but shall not include income such as stock
38 options or restricted stock grants.
39 (D) For purposes of determining whether the increased
40 employment threshold has been met, employment at the proj-
41 ect site shall be determined by calculating the increase of
42 such new employees reported to the Idaho department of com-
43 merce and labor for employment security purposes over the
44 employees so reported as of the beginning of the project
45 period or no earlier than January 1, 2005, whichever is
46 larger; and
47 2. Maintaining net increased employment in Idaho required by
48 subparagraph (ii)1. of this paragraph (j) during the remainder
49 of the project period.
50 (k) "Taxpayer," for purposes of paragraphs (j) and (e) of this subsection
51 (2), means either:
52 (i) A single taxpayer; or
53 (ii) In the context of a unitary group filing a combined report
54 under section 63-3027(t), Idaho Code, all members of a unitary group
55 includable in a combined report for the tax years in which the credit
22
1 provided for by this chapter may be claimed.
2 For all other purposes, the terms of section 63-3009, Idaho Code, and sec-
3 tion 63-3027(t)(1), Idaho Code, apply to the meaning of "taxpayer."
4 SECTION 22. That Section 63-3029J, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-3029J. INCENTIVE INCOME TAX INVESTMENT CREDIT. (1) Subject to the lim-
7 itations of this section, for taxable year 2001 only, there shall be allowed
8 to a taxpayer a nonrefundable credit against taxes imposed by sections
9 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount allowed by subsection
10 (2) of this section for qualified investments in Idaho. The credit shall be in
11 addition to the credit for capital investment permitted by section 63-3029B,
12 Idaho Code.
13 (2) The credit permitted in subsection (1) of this section shall be at
14 the percentage rate determined under either subsection (2)(a) or (2)(b) of
15 this section at the election of the taxpayer.
16 (a) (i) One-half (1/2) of the amount by which the average three-year
17 unemployment rate in the county in which the property is located
18 exceeds six percent (6%). In the case of mobile property, the prop-
19 erty shall be located in the county in which it is primarily based.
20 (ii) For purposes of this section the director of the department of
21 labor shall, on or before the first day of September of each calendar
22 year, establish and certify to the state tax commission the average
23 three-year unemployment rate in each county in Idaho for the immedi-
24 ately preceding three (3) calendar years. The rates thus certified
25 shall apply to the calculation of the credit under subsection
26 (2)(a)(i) of this section for property qualifying in the taxable year
27 beginning during the next calendar year.
28 (b) (i) One-tenth of one percent (.1%) for each full percent that the
29 three-year average per capita personal income level in the county in
30 which the property is located is below ninety percent (90%) of the
31 average statewide per capita personal income level.
32 (ii) For purposes of this section the director of the department of
33 commerce labor shall, on or before the first day of September of each
34 calendar year, establish and certify to the state tax commission the
35 most current three-year average per capita personal income level in
36 each county in Idaho and the statewide per capita personal income
37 level for the most current preceding three (3) calendar years. The
38 levels thus certified shall apply to the calculation of the credit
39 under subsection (2)(b)(i) of this section for property qualifying in
40 the taxable year beginning during the next calendar year.
41 (3) As used in this section the term "qualified investment" shall be
42 defined as in section 63-3029B, Idaho Code.
43 (4) The credit allowed by subsection (1) of this section together with
44 any credits carried forward under subsection (6) of this section shall not
45 exceed in any one (1) taxable year the lesser of:
46 (a) The amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
47 Idaho Code, after allowance for all other credits permitted by this chap-
48 ter; or
49 (b) Five hundred thousand dollars ($500,000).
50 (5) In the case of a group of corporations filing a combined report under
51 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
52 of the group but not used by that member may be used by another member of the
53 group, subject to the provisions of subsection (6) of this section, instead of
23
1 carried over. For a combined group of corporations, credit carried forward may
2 be claimed by any member of the group unless the member who earned the credit
3 is no longer included in the combined group.
4 (6) If the credit allowed by subsection (1) of this section exceeds the
5 limitation under subsection (4) of this section, the excess amount may be car-
6 ried forward for a period that does not exceed the next fourteen (14) taxable
7 years.
8 (7) In the event that property upon which the credit allowed by this sec-
9 tion has been used ceases to qualify for the credit allowed by section
10 63-3029B, Idaho Code, the recapture of credit under this section shall be in
11 the same proportion and subject to the same provisions as the amount of credit
12 required to be recaptured under section 63-3029B, Idaho Code.
13 (8) (a) Subject to the requirements of this subsection, a taxpayer who
14 earns and is entitled to the credit or to an unused portion of the credit
15 allowed by this section may transfer the unused credit to another taxpayer
16 required to file a return under this chapter.
17 (b) Before completing a transfer under this subsection, the transferor
18 shall notify the state tax commission of its intention to transfer the
19 credit and the identity of the transferee. The state tax commission shall
20 provide the transferor with a written statement of the amount of credit
21 available under this section as then appearing in the commission's records
22 and the number of years the credit may be carried over. The transferor
23 shall provide the transferee with the original statement. The transferee
24 shall attach a copy of the statement to any return in regard to which the
25 transferred credit is claimed.
26 (c) In the event that after the transfer the state tax commission deter-
27 mines that the amount of credit properly available under this section is
28 less than the amount claimed by the transferor of the credit and shown in
29 the statement described in subsection (8)(b) of this section or that the
30 credit is subject to recapture, the commission shall assess the amount of
31 overstated credit as taxes due from the transferor and not the transferee.
32 The assessment shall be made in the manner provided for a deficiency in
33 taxes under this chapter.
34 (9) In addition to other needed rules, the state tax commission may pro-
35 mulgate rules prescribing:
36 (a) In the case of S corporations, partnerships, trusts or estates, a
37 method of attributing the credit under this section to the shareholders,
38 partners or beneficiaries in proportion to their share of the income from
39 the S corporation, partnership, trust or estate.
40 (b) A requirement that a transferor under subsection (8) of this section,
41 prior to obtaining the written statement provided in subsection (8)(b) of
42 this section, post such bond or security as the state tax commission may
43 require to secure any liability referred to in subsection (8)(c) of this
44 section. Such rules shall provide an opportunity for a taxpayer, upon a
45 showing of financial responsibility, to have the bond waiver, for notice
46 of denial of waiver in accordance with section 63-3045, Idaho Code, and
47 for review in accordance with section 63-3045B, Idaho Code.
48 SECTION 23. That Section 63-3077A, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 63-3077A. AGREEMENTS FOR EXCHANGE OF INFORMATION AND JOINT ADMINISTRATION
51 WITH DEPARTMENT OF COMMERCE AND LABOR. (a) The state tax commission and the
52 department of commerce and labor may enter into a written agreement for
53 exchange of information relating to tax laws administered by the state tax
24
1 commission and the employment security law administered by the department of
2 commerce and labor. Any information so exchanged shall be confidential infor-
3 mation in the hands of the recipient thereof and may be used only for the fol-
4 lowing:
5 (1) Determining whether the person to whom the information relates may
6 have an undischarged duty or liability under the employment security law
7 or the tax laws administered by the state tax commission, the amount of
8 such liability, the person's whereabouts, social security number, and
9 information helpful in collecting any liability due.
10 (2) Administering any joint agreement between the department of commerce
11 and labor and the state tax commission relating to employment security
12 taxes and income tax withholding for the common registration of employers,
13 common tax reporting forms, centralized filing and processing of forms.
14 (3) Administration of the state directory of new hires provided in chap-
15 ter 16, title 72, Idaho Code.
16 (b) No such information shall be public information unless it is used in
17 the course of a judicial proceeding arising under the employment security law
18 or the tax laws administered by the state tax commission.
19 (c) An agreement made pursuant to this section may provide for the offset
20 of any refunds owed to any person by either party to the agreement against any
21 tax liability, overpayment of benefits liability, and any penalties and inter-
22 est thereon owed to either party to the agreement. No offset may be made
23 unless the liability against which it is applied is final, without any further
24 right on the part of the person owing the liability to either administrative
25 or judicial review.
26 SECTION 24. That Section 63-3622TT, Idaho Code, be, and the same is
27 hereby amended to read as follows:
28 63-3622TT. MEDIA PRODUCTION PROJECT TAX REBATE. (1) An eligible media
29 production company which purchases tangible personal property used directly in
30 a media production project and which makes qualifying media production expen-
31 ditures may qualify for a rebate of sales or use taxes paid on such purchases
32 if the purchaser develops, with such tangible personal property or qualifying
33 media production project expenditures in Idaho, the production in Idaho of a
34 media production project and if the purchase or use of such tangible personal
35 property is subject to the sales and use tax. To be eligible for the rebate
36 pursuant to this section, a media production company shall submit to the
37 department of commerce and labor information required by the director of the
38 department of commerce and labor to demonstrate conformity with the require-
39 ments of this section and shall have expended or will expend a minimum of two
40 hundred thousand dollars ($200,000) on qualifying media production project
41 expenses in Idaho within a consecutive thirty-six (36) month period for each
42 media production project. Application for the rebate shall be made within
43 thirty-six (36) months of the expenditure qualifying for the rebate. The
44 department of commerce and labor shall determine eligibility of the company
45 and shall report this information to the state tax commission in a manner and
46 at a time upon which the department of commerce and labor and the tax commis-
47 sion shall agree. The department of commerce and labor may charge an applica-
48 tion fee not in excess of five hundred dollars ($500) for a media production
49 company's application to be qualified for the sales tax rebate pursuant to
50 this section.
51 (2) To receive the rebate pursuant to this section, the media production
52 company shall apply to the state tax commission on forms and in the manner the
53 commission requires. The application shall include a certification of the
25
1 amount of expenditures made in Idaho with respect to the purchase of tangible
2 personal property by the media production company by the director of the
3 department of commerce and labor or the director's designee. The rebate shall
4 be paid within sixty (60) days from the date the tax commission receives a
5 qualified application. If the rebate is not paid within that period, the
6 amount owed to the taxpayer shall accrue interest at the rate provided in
7 section 63-3045, Idaho Code.
8 (3) As used in this section:
9 (a) "Media production project" is defined as the production of a single
10 project through a variety of techniques and media including live action
11 camera work, animation, computer-generated imagery or other recorded work
12 during the process of preproduction, production and postproduction, that
13 are is intended to be exhibited in theaters, licensed for exhibition on
14 television or cable stations or networks, licensed for or produced for
15 sale or rental to home or commercial viewing markets or a future viewing
16 or listening medium. Products of a media production project include fea-
17 ture films, videos, television series or movies, industrials and education
18 programs or shows, video or computer games, and documentaries, but shall
19 not include production of news and athletic event programming, political
20 advertisements, family or personal productions, filming of live staged
21 events to which tickets are sold or any material of an indecent or obscene
22 nature as provided in chapter 41, title 18, Idaho Code. "Media production
23 project" includes "preproduction," "production," and "postproduction."
24 (b) "Postproduction" means the final stage in a media production project
25 after principal photography, including editing, the addition of
26 sound/visual effects and musical scoring, mixing and dubbing and distrib-
27 uting.
28 (c) "Preproduction" means the planning stage in a media production proj-
29 ect after the project is financed and before principal photography or
30 actual shooting commences, including script treatment and
31 editing/rewriting, scheduling, set design and construction, casting, bud-
32 geting and financial planning, and scouting or selection of locations.
33 (d) "Production" means the general process of putting a media production
34 project together, including casting, set construction, principal photogra-
35 phy and shooting.
36 (e) "Qualifying media production project expenditures" in Idaho includes,
37 but is not limited to, wages from eleven dollars ($11.00) per hour to one
38 hundred twenty-five dollars ($125) per hour, fringe benefits, commissions
39 or fees and per diem expenses for labor paid in Idaho; contract labor paid
40 in Idaho; equipment rentals and purchases during preproduction, production
41 and postproduction such as grip, lighting, editing, camera, communication
42 and computers; film, videotape stock or digital recording medium and proc-
43 essing and transfer costs; expendables such as gaffer's tape or gel;
44 wardrobe and costuming; makeup and hairdressing supplies; set construction
45 and set decoration materials, prop rentals and purchases, including lumber
46 and construction materials, tools and equipment; stage, location site and
47 office space rentals, equipment and expendables; vehicle, truck, boat and
48 aircraft rentals, leases and purchases; food purchased for cast and crew;
49 airfare or other travel purchased through an Idaho based travel agency;
50 insurance and completion bond coverage purchased through an Idaho based
51 agency; lodging expenses for hotels, motels, apartments and houses; motor
52 vehicle expenses, including gas, oil, servicing and reimbursed mileage;
53 laundry and dry cleaning; and shipping services.
54 (4) Any rebate paid shall be subject to recapture by the commission at
55 one hundred percent (100%) in the event that the tax incentive criteria are
26
1 not met at the project site during the project period or in the event that the
2 media production company did not otherwise qualify. Any recapture amount due
3 under this section shall be a deficiency in tax for the period in which the
4 disqualification first occurs for purposes of section 63-3629, Idaho Code,
5 and may be enforced and collected in the manner provided by the Idaho sales
6 tax act in which the disqualification first occurs for purposes of section
7 63-3629, Idaho Code, and may be enforced and collected in the manner provided
8 by the Idaho sales tax act.
9 SECTION 25. That Section 63-4402, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-4402. DEFINITIONS. (1) The definitions contained in the Idaho income
12 tax act, shall apply to this chapter unless modified in this chapter or unless
13 the context clearly requires another definition.
14 (2) As used in this chapter:
15 (a) "Commission" means the Idaho state tax commission.
16 (b) "New plant and building facilities" means facility or facilities,
17 including related parking facilities, where employees are physically
18 employed.
19 (c) "Idaho income tax act" means chapter 30, title 63, Idaho Code.
20 (d) "Investment in new plant" means investment in new plant and building
21 facilities that are:
22 (i) Qualified investments; or
23 (ii) Buildings or structural components of buildings.
24 (e) "New employee":
25 (i) Means an individual, employed primarily within the project site
26 by the taxpayer, subject to Idaho income tax withholding whether or
27 not any amounts are required to be withheld, covered for unemployment
28 insurance purposes under chapter 13, title 72, Idaho Code, and who
29 was eligible to receive employer provided coverage under a health
30 benefit plan as described in section 41-4703, Idaho Code, during the
31 taxable year. A person shall be deemed to be so employed if such per-
32 son performs duties on a regular full-time basis.
33 (ii) The number of employees employed primarily within the project
34 site by the taxpayer, during any taxable year for a taxpayer shall be
35 the mathematical average of the number of such employees reported to
36 the Idaho department of commerce and labor for employment security
37 purposes during the twelve (12) months of the taxable year which
38 qualified under paragraph (e)(i) of this subsection (2). In the event
39 the business is in operation for less than the entire taxable year,
40 the number of employees of the taxpayer for the year shall be the
41 average number actually employed during the months of operation, pro-
42 vided that the qualifications of paragraph (e)(i) of this subsection
43 (2) are met.
44 (iii) Existing employees of the taxpayer who obtain new qualifying
45 positions within the project site and employees transferred from a
46 related taxpayer or acquired as part of the acquisition of a trade or
47 business from another taxpayer within the prior twelve (12) months
48 are not included in this definition unless the new position or trans-
49 fer creates a net new job in Idaho.
50 (f) "Project period" means the period of time beginning at the earlier of
51 a physical change to the project site or the first employment of new
52 employees located in Idaho who are related to the activities at the proj-
53 ect site, but no earlier than January 1, 2006, and ending when the facili-
27
1 ties constituting the project are placed in service, but no later than
2 December 31, 2010.
3 (g) "Project site" means an area or areas at which new plant and building
4 facilities are located and at which the tax incentive criteria have been
5 or will be met and which are either:
6 (i) A single geographic area located in this state at which the new
7 plant and building facilities owned or leased by the taxpayer are
8 located; or
9 (ii) One (1) or more geographic areas located in this state if
10 eighty percent (80%) or more of the investment required by subsection
11 (2)(j)(i) of this section is made at one (1) of the areas.
12 (iii) The project site must be identified and described to the com-
13 mission by a taxpayer subject to tax under the Idaho income tax act,
14 in the form and manner prescribed by the commission.
15 (h) "Qualified investment" shall be defined as in section 63-3029B, Idaho
16 Code.
17 (i) "Recapture period" means:
18 (i) In the case of credits described in sections 63-4403 and
19 63-4404, Idaho Code, the same period for which a recapture of invest-
20 ment tax credit under section 63-3029B, Idaho Code, is required; or
21 (ii) In the case of credits described in section 63-4405, Idaho
22 Code, five (5) years from the date the project period ends.
23 (j) "Tax incentive criteria" means a taxpayer meeting at a project site
24 the requirements of subparagraphs (i) and (ii) of this paragraph (j).
25 (i) During the project period, making capital investments in new
26 plant of at least five hundred thousand dollars ($500,000) at the
27 project site.
28 (ii) During a period of time beginning on January 1, 2006, and end-
29 ing at the conclusion of the project period:
30 1. Increasing employment at the project site by at least ten
31 (10) new employees each of whom must earn at least nineteen dol-
32 lars and twenty-three cents ($19.23) per hour worked during the
33 taxpayer's taxable year.
34 2. Employment increases above the ten (10) new employees
35 described in subparagraph (ii)1. of this paragraph (j) at the
36 project site shall on average earn at least fifteen dollars and
37 fifty cents ($15.50) per hour worked during the taxpayer's tax-
38 able year. Calculation of the group average earnings shall not
39 include amounts paid to any employee earning more than forty-
40 eight dollars and eight cents ($48.08) per hour or less than
41 twelve dollars ($12.00) per hour worked during the taxpayer's
42 taxable year. The denominator of this calculation shall be the
43 number of new job positions filled that pay less than forty-
44 eight dollars and eight cents ($48.08) per hour worked during
45 the taxpayer's taxable year.
46 3. Earnings calculated pursuant to subparagraph (ii) of this
47 paragraph (j) shall include income upon which Idaho income tax
48 withholding is required under section 63-3035, Idaho Code, but
49 shall not include income such as stock options or restricted
50 stock grants.
51 4. For purposes of determining whether the increased employment
52 threshold has been met, employment at the project site shall be
53 determined by calculating the increase of such new employees
54 reported to the Idaho department of commerce and labor for
55 employment security purposes over the employees so reported as
28
1 of the beginning of the project period or no earlier than Janu-
2 ary 1, 2006, whichever is larger; and
3 5. Maintaining net increased employment in Idaho required by
4 subparagraph (ii) of this paragraph (j) during the remainder of
5 the project period.
6 (k) "Taxpayer," for purposes of paragraphs (j) and (e) of this subsection
7 (2), means either:
8 (i) A single taxpayer; or
9 (ii) In the context of a unitary group filing a combined report
10 under section 63-3027(t), Idaho Code, all members of a unitary group
11 includable in a combined report for the tax years in which the credit
12 provided for by this chapter may be claimed. For all other purposes,
13 the terms of section 63-3009, Idaho Code, and section 63-3027(t)(1),
14 Idaho Code, apply to the meaning of "taxpayer."
15 SECTION 26. That Section 67-2402, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 67-2402. STRUCTURE OF THE EXECUTIVE BRANCH OF IDAHO STATE GOVERNMENT. (1)
18 Pursuant to section 20, article IV, Idaho constitution, all executive and
19 administrative offices, agencies, and instrumentalities of the executive
20 department of state, except for those assigned to the elected constitutional
21 officers, are allocated among and within the following departments:
22 Department of administration
23 Department of agriculture
24 Department of commerce and labor
25 Department of labor
26 Department of correction
27 Department of environmental quality
28 Department of finance
29 Department of fish and game
30 Department of health and welfare
31 Department of insurance
32 Department of juvenile corrections
33 Idaho transportation department
34 Industrial commission
35 Department of lands
36 Idaho state police
37 Department of parks and recreation
38 Department of revenue and taxation
39 Department of self-governing agencies
40 Department of water resources
41 State board of education
42 The public school districts of Idaho, having condemnation authority, shall
43 be considered civil departments of state government for the purpose of and
44 limited to the purchase of state endowment land at appraised prices.
45 (2) The governor, lieutenant governor, secretary of state, state control-
46 ler, state treasurer, attorney general and superintendent of public instruc-
47 tion each heads a constitutional office.
48 (3) For its internal structure, unless specifically provided otherwise,
49 each department shall adhere to the following standard terms:
50 (a) The principal unit of a department is a division. Each division shall
51 be headed by an administrator. The administrator of any division shall be
52 exempt from the provisions of chapter 53, title 67, Idaho Code.
53 (b) The principal unit of a division is a bureau. Each bureau shall be
29
1 headed by a chief.
2 (c) The principal unit of a bureau is a section. Each section shall be
3 headed by a supervisor.
4 SECTION 27. That Section 67-2406, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 67-2406. DIRECTORS OF DEPARTMENTS ENUMERATED. The following department
7 directors are created:
8 Director, department of administration
9 Director, department of agriculture
10 Director, department of commerce and labor
11 Director, department of labor
12 Director, department of correction
13 Director, department of finance
14 Director, department of fish and game
15 Director, department of environmental quality
16 Director, department of health and welfare
17 Director, department of insurance
18 Director, department of juvenile corrections
19 Director, Idaho transportation department
20 Director, department of lands
21 Director, Idaho state police
22 Director, department of parks and recreation
23 Director, department of water resources.
STATEMENT OF PURPOSE
RS 16620
The legislation devolves the merger of the Departments of
Commerce and Labor and reinstitutes separate agencies. This will
allow the director of the Department of Commerce more time to
focus on recruiting and retention of small business,
international trade, and specific issues related to economic
development activity. By focusing on commerce related issues
entirely, the director will then have more time to work directly
with the Governor on the economic development of the State.
The director of the Department of Labor can then focus on
assuring regulatory compliance with employment security
regulations, unemployment insurance, wage and hour compliance,
and disability determinations as required by the Social Security
Act.
FISCAL NOTE
It is estimated that the costs of separating the Departments of
Labor and Commerce will be approximately $150,000. These costs
are related to software maintenance agreements and phone system
related changes.
CONTACT:
Name: Roger Madsen, Department of Labor
Phone: 334-6110
STATEMENT OF PURPOSE/FISCAL NOTE H 222