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H 53

EMPLOYMENT SECURITY – Amends and adds to existing law to provide for the prevention and deterrence of unemployment insurance fraud.

68th Legislature, 1st Regular Session (2025)

House Bill 53 strengthens unemployment fraud laws in Idaho, imposing tougher penalties and clarifying definitions to protect the system and save $152,000 in 2026.

Reported Signed by Governor on March 11, 2025 Session Law Chapter 28 Effective: 07/01/2025
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Bill Summary · H 53

Summary of House Bill 53: Employment Security Fraud Prevention

Bill Number: H 53
Title: Employment Security – Amends and adds to existing law to provide for the prevention and deterrence of unemployment insurance fraud.
Status: Reported Signed by Governor on March 11, 2025
Effective Date: July 1, 2025
Introduced: January 24, 2025

Purpose and Intent

House Bill 53 aims to strengthen the laws surrounding unemployment insurance fraud in Idaho. The legislation seeks to clarify definitions related to fraudulent activities, establish penalties for offenders, and enhance the overall integrity of the unemployment insurance system.

Key Provisions

The bill introduces several significant changes to the existing Employment Security Law:

  1. Definitions of Fraud:

    • Willful and Knowingly: The bill defines "willful" and "knowingly" in the context of making false statements or failing to disclose material facts related to unemployment insurance claims.
    • Unemployment Insurance Identity Theft: A new crime is established specifically addressing identity theft related to unemployment insurance.

  2. Classification of Fraud:

    • The legislation distinguishes between misdemeanor and felony fraud, allowing for more appropriate legal responses based on the severity of the offense.

  3. Penalties for Offenders:

    • Stiffer Administrative Penalties: Repeat offenders of unemployment insurance fraud will face increased penalties.
    • Civil Money Penalties: Covered employers may incur a penalty of 10% of their taxable wages for the four preceding quarters for violations, while non-covered employers could face fines up to $5,000 per violation.

  4. Changes to Claimant Disqualification:

    • The bill revises provisions regarding disqualification periods for claimants found guilty of fraud, extending the duration of ineligibility for benefits.

  5. Technical Corrections:

    • Various technical amendments are made to existing sections of the Idaho Code to ensure clarity and compliance with the new provisions.

Impact

  • Affected Parties: The bill primarily impacts individuals claiming unemployment benefits, employers, and the Idaho Department of Labor, which will be responsible for enforcing the new regulations.
  • Financial Implications: According to the fiscal note, the legislation is expected to save the unemployment insurance trust fund approximately $152,000 in FY2026 due to reduced benefits paid to claimants with multiple fraud instances. This amount is projected to decrease to $112,000 in subsequent years as previously denied claimants remain ineligible.

Procedural Aspects

  • The bill was introduced on January 24, 2025, and underwent several readings and committee reviews before being signed by the Governor on March 11, 2025. It will take effect on July 1, 2025, allowing time for the Idaho Department of Labor to implement the necessary changes.

This legislation represents a proactive approach to combatting unemployment insurance fraud, aiming to protect the integrity of the system and ensure that benefits are distributed fairly and appropriately.

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

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