STATEMENT OF PURPOSE
RS28552 / H0142
Amend five sections (three subsections of 72-1366) of Chapter 13, Title 72, Idaho Code to: 72-1304 - Define
custom farming as "agricultural employment." 72-1319 (2) - Reduce the time frame new employers need to pay
taxes before qualifying for a reduced unemployment insurance tax rate. 72-1328(2)(c) - Separate a reference
to a 'cafeteria plan' and an 'annuity plan.' 72-1366(4)(a) - Establish a four-week cap on the weeks a claimant
can receive benefits after becoming ill. 72-1366 (8) - Eliminate the need for training instructors to sign off on
continued claim reports. 72-1369(7) - Correct and reinstate the director's authority to waive all or part of fraud
or civil penalties and benefit disqualification for over-payments when the director deems the waiver in the best
interest of the department.
FISCAL NOTE
The following amendments represent no fiscal impact on the Idaho State General Fund. No general fund dollars
are used to pay unemployment benefits or administer the collection of unemployment insurance taxes. Any
potential fiscal impact; neutral, positive or negative, will be on Idaho's Unemployment Insurance Trust Fund,
which is the repository for unemployment insurance taxes paid by Idaho employers and serves as the source of
regular unemployment insurance benefits paid to laid off employees. 72-1304 - The fiscal impact to the Idaho
Unemployment Insurance Trust Fund is neutral. The proposed amendments streamline business practices for an
average of less than 10 employers per year in this category. At current tax rates, each employer affected by this
initiative may contribute up to a maximum of $15 per employee per year into revenue to the fund. Paying and
collecting per employee UI tax contributions costs more than $15 to administer, for both the employers and the
department. 72-1319(1)(2) - If enacted, the impact on the Idaho Unemployment Insurance Trust Fund will be
neutral. Amending this section of code will expedite the process of classifying an employers' experience-rating.
Active employer accounts created by June 30 of the preceding year, and prior to the cut-off date of the new
tax rate computation, shall be eligible for a reduced experience-rate and will allow an average of 5,000 more
employers each year to become experience-rated. Under state and federal code, employers must build up their
unemployment insurance experience rate for a full year before being allowed a reduce tax rate and must remain
in the system for up to two full years before becoming eligible for tax discounts. Reclassifying employers at
the one-year mark reduces the tax burden on newer accounts. While reduced tax rates produce less revenue
for the trust fund, employers are subject to an annual account review which results in the appropriate tax rates
for the following years. 72-1328 (2)(c) - Amending this section of code represents no impact to the Idaho
Unemployment Trust Fund. The proposed language simply separates and clarifies the nonexistent relationship
between a cafeteria plan and an annuity plan. 72-1366 (4)(a) - If enacted, the fiscal impact on the Idaho
Unemployment Insurance Trust Fund will result in a slight positive cost savings. 72-1366(8) - Changes to
this section represent no impact to the Idaho Unemployment Trust Fund because the proposed language simply
reduces a reporting burden on training instructors, which is currently duplicated by a case worker. 72-1369(7) -
If enacted, the proposed amendments to this section reinstate the director's authority to waive certain penalties
for fraudulent activity and remain in compliance with federal law. Therefore, department officials anticipate
there will be no negative fiscal impact on the Idaho Unemployment Insurance Trust Fund.
Contact:
Representative Scott Syme
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/12/2021, 8:56 AM
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/12/2021, 8:56 AM


Statutes affected:
Bill Text: 72-1304, 72-1319, 72-1328, 72-1366, 72-1369, 72-1360