Something extraordinary happened
State Director Suzanne Budge reports from Boise on the small-business agenda at the conclusion of the 2019 session of the Idaho Legislature
Quick Takeaways
- Medicaid expansion—the only major issue that passed in 2019.
- Initiative reform—discussed, debated, voted on, and finally vetoed by Gov. Brad Little, the only vetoes of the 2019 session (S1159 and H296)
- Hemp transportation and legalization—no hemp-related bill passed in 2019
- Public school education funding formula rewrite—after three years of study, evaluation, and reorganization, only a “first steps” bill passed to measure key components of the new model.
- State agency administrative rules—gone, all of them. Killed by the House in the last minutes of the session.
What a difference a year makes.
Last year, in the 2018 legislative session, it was a big year for tax relief, small business, and economic growth. The major outcome was a huge overhaul of the federal and state tax codes, and businesses saw cuts in income, corporate, and unemployment taxes.
We were still sorting that all out as the 2019 legislature came to town in January. Little did we know that the big issues of 2018 would not even on the table in 2019, as legislative activity focused almost completely on a few dominant themes, led from beginning to end by Medicaid expansion.
The Nuclear Option
The big bombshell, which no one saw coming before it happened, came in the last moment before adjournment, when the House voted to send S1205 to the Ways and Means Committee. This effectively killed all rules (and I mean ALL rules – all existing rules, all new rules reviewed in 2019, all fee rules – all rules in the state) some 8,200 pages.
Conservatives laud the action as lifting a great burden from the citizens of Idaho, and that may be part of the effect, but now Governor Little must decide what to do next because the administrative rules – which provide detail and guidance –interpret the laws passed by the Legislature.
If the statutes don’t have adequate detail, the rules spell it out. And rules have the same force and effect of law. Now all rules are in limbo. This is unprecedented and will be interesting to watch. Governor Little signed two executive orders in his first month on the job with the objective of streamlining government and reducing red tape at the state level. Now, he has the very real opportunity to do so, and the Legislature handed it to him on a platter. Be careful what you wish for, the saying goes, but for NFIB members, this may be the biggest gift of all from the 2019 session.
Before the Bombshell
For the first time in many years, NFIB members saw very few issues – good or bad – that impacted them directly. Not that it was a calm, quiet year – quite the contrary – it’s just that we dodged bullets for a change. Local option, minimum wage, transportation…all were discussed, but none progressed. The good news, no harm was done, and the Legislature has now gone home … finally, after battling to a stand-still on everything but Medicaid expansion policy and budgeting … oh, yes, and after wiping out all agency rules.
For 2019, we had a new governor, new administration, 14 new committee chairmen, and 24 new legislators – a steep learning curve all around. And legislators came to Boise facing some very big issues. Medicaid expansion was the top priority from the get-go, and the session began and ended with that as the key topic of discussion. Although a few other issues rose to the top – Initiative reform, public school funding, and hemp legalization — in the end, every other major issue that was raised ended up in the ditch by the time the final gavel fell, on Day 95, April 11, 2019 – nearly three weeks later than anticipated.
Overview of General Fund Revenue and Appropriations
- For Fiscal Year 2020, the state of Idaho’s General Fund Total Appropriations equals $3.910 billion, a 7.1 percent increase over FY2019.
- Net revenues for FY 2020 as of 4/11/19 equaled $4,012 billion by legislative action, 7 percent more than FY2019.
- Total Revenues and estimated beginning cash equaled $4,146 by legislative action.
- Ending balance for FY 2020 equaled $173,791,100.
- Revenues as of March 2019 were $75 million below projections.
Other Issues of Interest in 2019
- Urban renewal districts—local projects (H217). Passed and signed by the governor, this law restricts local governments from using URDs to fund big projects without a vote of the people.
- Underground petroleum storage tanks—no more stringent than federal EPA (H26).
- Minimum wage—several proposals (H50, 54, and 55), none advanced.
- Wireless devices while driving—did not advance (H77 / S1064).
- Streamlined sales tax H259—passed and is now law.
- Short-term health insurance plans—H275 passed and is now law.
- Pharmacy benefit managers S1068—passed the House but died in a Senate committee
- Ballot initiative revisions S1159, H296, H303, 304, 305, 306—Drew Governor Little’s first two vetoes, and the rest died earlier in the process
- Regulation freedom amendment SJM102—Urging Congress to amend the Constitution was adopted
By the Numbers
- 2019 Idaho Legislature Adjourns Sine Die on 95th Legislative Day, Thursday, April 11, which marked a close to the First Regular Session of the 65th Idaho Legislature.
- The adjournment was 15 days later than 2018’s and 2017’ ends.
- 1.047 bills were prepared, this compares to 995 in 2018 and 1,024 in 2017.
- 320 bills passed both houses and 298 (as of 4/5) were signed by the governor.
- 13 bills became law without the governor’s signature.
- Two bills were vetoed. For the previous session, the bill count was 355 passed, 340 signed, 13 became law without signature, two were vetoed.
- 36 Resolutions/Memorials were adopted in 2019, compared to 51 in 2018 and 49 in 2017.
Interim Committees Approved for the Coming Year
The Legislative Council met March 26 and approved six interim committees that will meet between the 2019 and 2020 legislative sessions. They are:
- Natural Resources Interim Committee
- Criminal Justice Reinvestment Oversight Committee
- Campaign Finance Reform Interim Committee
- Study of Occupational Licensing and Certification Laws/Regulatory Reform Committee
- Pacific Fisheries Legislative Task Force
- An interim committee to study the costs associated with Medicaid expansion
NFIB Day at the Capitol
Lawmakers joined NFIB members February 27 for their annual legislative reception, hosted jointly by NFIB and the Idaho Retailers Association. We were pleased that our members used this opportunity to once again meet with lawmakers, and members of the administration, including key staff from Governor Little’s office.
