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H 861

DEPARTMENT OF COMMERCE – Amends existing law to authorize the Department of Commerce to use certain tax revenue to fund state institutions of higher education.

68th Legislature, 2nd Regular Session (2026)

The bill lets bed tax grants fund state higher education projects for economic development and tourism alongside local nonprofits.

Reported Printed and Referred to Revenue & Taxation
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Bill Summary · H 861

Summary of Idaho H 861 (2026)

Purpose and Intent

  • The bill amends multiple provisions related to the Idaho Department of Commerce, the Travel and Convention Industry Council, and the regional/statewide grant program.
  • Primary goal: authorize the Department of Commerce to use certain tax revenue (bed tax) to fund state higher education institutions, in addition to existing local nonprofit grant purposes for travel and conventions.

Key Provisions and Changes

  1. Department of Commerce Powers and Duties (67-4703)

    • Expands the department’s authority to promote Idaho’s resources, economy, and tourism, including advertising, data collection, interagency coordination, and grantmaking.
    • Adds explicit authorization to award grants for economic development or tourism projects, with eligibility including state institutions of higher education (as defined in 67-2332A Idaho Code).
    • Reiterates powers to petition for funds, contract with universities, and prepare comprehensive economic development strategies.

  2. Travel and Convention Industry Council Duties and Powers (67-4715)

    • Keeps the council as an advisory body to shape policy for tourism marketing, funding, and coordination.
    • Grants the council authority to review and recommend local grant requests from nonprofit groups or state higher education institutions for purposes aligned with the act.
    • Outlines general duties related to promoting Idaho’s travel industry and coordinating with other agencies.

  3. Regional and Statewide Grant Program (67-4717)

    • Establishes a joint program administered by the council and the department, funded by the bed tax assessment in 67-4718.
    • Allocation structure:
      • 50% of funds (net of 1/2 of administrative costs) go to regional planning areas, with each region receiving a proportionate share of half the total funds for local travel/convention promotion. Regional allocations do not lapse and remain available for use.
      • 50% of funds (net of 1/2 of administrative costs) go to statewide efforts, to promote travel/conventions and to fund state institutions of higher education for economic development purposes. The council advises the department on program creation and execution for these statewide efforts.

Who Is Affected

  • State agencies and departments (Department of Commerce, Travel and Convention Industry Council) involved in economic development, tourism promotion, and grant administration.
  • Local nonprofit organizations focused on travel and conventions (e.g., chambers of commerce) eligible for regional grant funds.
  • State institutions of higher education (as defined in Idaho law) eligible to receive grants under the statewide portion of the program to support economic development and related activities.
  • Planning regions within Idaho that receive regional grant funds for local tourism and convention promotion.

Procedural and Timeline Highlights

  • Effective Date: July 1, 2026 (emergency clause enacted for immediate effect).
  • Funding Source: Grants funded by the bed tax assessment (67-4718). No new appropriations are created; the bill reallocates bed tax grant-making to include universities alongside local nonprofits.
  • Administrative Considerations: The grant program’s design continues to split funding 50/50 between regional/local grants and statewide/university grants, with half of administrative costs subtracted from the total funds before regional/state allocations.

Fiscal Note (Summary)

  • No new state or local appropriations are created.
  • Bed tax revenue remains the funding source and total revenue collected is not changed.
  • Potential impact: local chambers of commerce may receive less total grant funding if universities claim a portion of the same bed tax funds.

This summary highlights the bill’s shift to allow state higher education institutions to participate in bed tax grant funding for economic development and tourism-related projects, alongside existing local nonprofit recipients.

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

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