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H 416

An Act relative to motor vehicle debt waivers

194th Legislature (2025-2026) Introduced by Meg Kilcoyne and 1 co-sponsor

Idaho H416 binds state education funds to statutorily identified uses; misused funds must be reimbursed to the General Fund or withheld from the next state payment.

Bill reported favorably by committee and referred to the committee on House Ways and Means
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Bill Summary · H 416

Summary: Idaho H 416 (Binding Allocations)

Overview

House Bill 416 adds a new provision to Idaho’s education funding laws to ensure that funds distributed by the Idaho State Department of Education (SDE) to school districts and public charter schools are used only for the purposes identified in statute or in an appropriation. It establishes a reimbursement requirement for any misused funds and authorizes withholding future payments if reimbursement does not occur. The bill includes an emergency clause and would take effect July 1, 2025.

Key Provisions

  • New provision added: Section 33-1035, Idaho Code, “Binding Allocations.”
  • Permitted use of funds: Any funds distributed by SDE to school districts or public charter schools that are specifically identified in statute or an appropriation as intended for a certain purpose must be used only for that stated purpose.
  • Misuse and reimbursement: If funds intended for a certain purpose are used for another purpose, the district or charter school must reimburse the state the amount misused and deposit the reimbursement into the state General Fund.
  • Withholding of subsequent payments: If reimbursement is not made, the amount of the misused funds shall be deducted from the district’s or charter school’s next state payment under Idaho Code, Title 33 (Chapter 10 or Chapter 52).
  • Effective date and emergency: The act declares an emergency and becomes effective July 1, 2025.

Affected Parties

  • Primary recipients: School districts and public charter schools receiving funds from the state Department of Education.
  • Administering body: Idaho State Department of Education (SDE), with enforcement mechanisms via state General Fund deposits or deduction from future state payments.
  • State finances: No net change in overall state revenue or expenditures is anticipated per the fiscal note; any financial adjustments are transfers and reallocations related to enforcement.

Enforcement and Remedies

  • Reimbursement requirement: Misused funds must be reimbursed to the state.
  • Penalty mechanism: If reimbursement is not made, the misused amount is deducted from the district’s/public charter school’s next state payment.

Fiscal Impact

  • Fiscal note stance: No increase or decrease in state or local revenue or expenditure; therefore, no fiscal impact expected.

Timeline and Legislative Status

  • Introduced: March 19, 2025.
  • First reading and referral: March 19–24, 2025 (Education Committee).
  • House actions: Passed floor measures (Rules suspended) with broad support; title approved to move to Senate.
  • Effective date: July 1, 2025 (emergency clause).
  • Current status (as of the provided documents): Introduced, with House passage and referral histories indicating progression toward Senate consideration.

Practical Implications

  • The bill tightens controls on how state-allocated educational funds are used, aiming to prevent misallocation of targeted funds and improve accountability for state-supported investments in schools. Schools would need rigorous internal controls to ensure funds are expended only for their designated purposes and be prepared for potential reimbursement or withholding actions if misallocation occurs.

Compiled from official sources — confirm details with the bill’s official record.

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