The Senate Commerce Committee approved three rule dockets from the Idaho Department of Labor presented as part of the governor's zero‑based regulation initiative, and agreed to preserve two subsections in an unemployment tax rule after committee members raised questions about how the agency would treat employer reports that replace agency determinations.

Janie Revere, director of the Idaho Department of Labor, told the committee the department conducted a comprehensive review and proposed eliminating outdated rules and rules that simply restated state or federal law. "There were no significant changes to the rules; rather we are eliminating outdated rules and rules that restate state or federal statute," Revere said. She said the department intends to move significant portions of several rule chapters into statute to make program rules easier for the public to find and understand.

Revere said the changes are intended not to alter program operations and that there is no fiscal impact: "There's no fiscal impact to the general fund or any dedicated or federal funds since there are no changes to the program." She also said negotiated rule‑making was held and produced no negative feedback.

The committee voted to approve docket 09‑0101‑2401 (rules of administrative procedure for the Department of Labor). Senator Guthrie moved adoption of docket 09‑0101‑2401; Senator Leahy seconded; the committee approved the docket. The committee then approved docket 09‑0130‑2401 (unemployment insurance benefits administration) on a motion from Senator Foreman and a second from Senator Ruckdy.

Docket 09‑0135‑2401 (unemployment insurance tax administration) drew more substantive questions about a subsection that would be deleted. Joanna Henry, Unemployment Insurance Compliance Bureau Chief at the Department of Labor, explained that when an employer fails to submit a quarterly report the agency can issue an estimated assessment and later replace that agency determination with a factual employer report if the employer submits one. "If an employer were to provide a report, a factual report we call it, we would replace that determination that we made on estimates with the factual information," Henry said, describing the department's longstanding practice and noting the statutory appeals opportunity.

Several senators, including Senator Leahy and Senator Guthrie, expressed concern that deleting the rule language could shift the burden to employers to appeal in order to get a factual report considered. Senator Lakey moved to approve docket 09‑0135‑2401 while rejecting the agency’s proposed deletion of subsection 07A and 07B under section 11 (General Provisions), preserving the existing rule text that explains replacement of determinations by factual employer reports. Senator Guthrie seconded the motion, and the committee approved the docket with that exception.

Revere told the committee the department will introduce legislation this session to move major parts of the reviewed rules into statute; she repeated that if such legislation failed, "the rules will stay as they are."

The committee did not receive public testimony opposing the Labor dockets during the hearing.