Senate Commerce panel approves three Department of Labor rule dockets; agency plans to move many provisions into statute

The Idaho Senate Commerce Committee on an administrative voice vote approved three rule dockets from the Idaho Department of Labor, and heard the department say it will ask the Legislature to move major portions of its unemployment insurance rules into statute to make them easier for the public to find and understand.

Janie Revere, director of the Idaho Department of Labor, told the committee the department conducted a comprehensive review under the governor's 0-based regulation initiative and is proposing to eliminate outdated rules and rules that restate state or federal law.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 Rather, we are eliminating outdated rules and rules that restate state or federal statute," Revere said.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 agency simplified language and found "no fiscal impact to the general fund or any dedicated or federal funds."

Revere told senators the department intends to introduce legislation that would move significant portions of the rules into statute. "The intent of the legislation is to ensure that the unemployment insurance program continues to operate as it is currently structured, but it's easier for the public to understand," she said. Revere added that, if the bill passes, the department would eliminate roughly 75% of its rules and leave rules that are procedural in nature to guide agency implementation.

Why it matters: Moving definitions and core program requirements into statute can make the law more visible to employers and claimants and can affect how courts review agency action. Revere said the change also responds to legislation passed last year affecting the deference courts give to agency decisions.

What the committee voted on: The panel considered three separate pending rule dockets from the Department of Labor: "09-010101-2401" (administrative procedures rules), "09-0130-2401" (unemployment insurance benefits administration), and "09-0135-2401" (unemployment insurance tax administration). After brief questions from senators and an opportunity for public comment, the committee approved each docket by voice vote. Motions and seconds recorded in committee:

- Docket Nine-oneOne-two401: Motion to adopt by Senator Guthrie, seconded by Senator Lakey. Outcome: approved (voice vote).

- Docket Nine-oneThirty-two401 (09-0130-2401): Motion to accept by Senator Foreman, seconded by Senator Rucki. Outcome: approved (voice vote).

- Docket Nine-oneThirty-five401 (09-0135-2401): Motion to approve the docket while rejecting the agency's proposed deletion of subsection 7.A and 7.B under section 11 of IDAPA 09.01.35 (General Provisions) by Senator Lakey, seconded by Senator Guthrie. Outcome: the docket was accepted while those proposed deletions were rejected (voice vote).

Committee discussion and clarifications: Senators asked whether moving material to statute could leave a gap if the enabling bill failed. Revere said that, if the statutory proposal did not pass, the department's rules would remain in place. She also said the department held negotiated rulemaking and received no negative feedback on the changes.

On the rule removing a sentence concerning judicial review of wage claim decisions, Senator Lakey asked whether the deletion was safe because the Administrative Procedures Act still governs judicial review; Revere agreed. On the tax-administration docket, committee members asked why a rule provision that allowed the agency to replace an estimated determination with a factual employer report was being removed. Joanna Henry, Unemployment Insurance Compliance Bureau chief, explained that the department's longstanding practice is to update an internal determination when a factual report is submitted and that statute and existing processes continue to protect employers' rights to protest.

What the agency said it held: Revere said the department conducted negotiated rulemaking and received no adverse feedback. The department also plans to present legislation this session to move substantial portions of rule text into statute to improve public clarity.

Ending note: Committee members approved the dockets with narrow carve-outs where members expressed concern about removing explicit procedural language. Revere said the agency will proceed with its planned legislation and stand ready to answer further legislative questions when the bill is introduced.