Amends and repeals existing law to provide for the consolidation of the Idaho STEM Action Center into the Workforce Development Council.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 761 BY EDUCATION COMMITTEE AN ACT1 RELATING TO THE IDAHO WORKFORCE DEVELOPMENT COUNCIL; AMENDING SECTION2 33-1633, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE COMPUTER SCI-3 ENCE INITIATIVE FOR PUBLIC SCHOOLS AND TO MAKE TECHNICAL CORRECTIONS;4 REPEALING CHAPTER 47, TITLE 33, IDAHO CODE, RELATING TO STEM SCHOOL DES-5 IGNATION; AMENDING SECTION 63-3029A, IDAHO CODE, TO REVISE PROVISIONS6 REGARDING THE LIMITATION ON INCOME TAX CREDIT FOR CHARITABLE CONTRI-7 BUTIONS AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 67-823,8 IDAHO CODE, RELATING TO COORDINATION OF POLICY AND PROGRAMS RELATED TO9 SCIENCE, TECHNOLOGY, ENGINEERING AND MATH EDUCATION IN IDAHO; AMENDING10 SECTION 67-824, IDAHO CODE, TO REVISE PROVISIONS REGARDING THE STEM11 EDUCATION FUND AND TO MAKE A TECHNICAL CORRECTION; REPEALING SECTION12 67-824, IDAHO CODE, RELATING TO THE STEM EDUCATION FUND; REPEALING SEC-13 TION 67-825, IDAHO CODE, RELATING TO THE STEM ACTION CENTER ADVISORY14 BOARD; AMENDING SECTION 67-5303, IDAHO CODE, TO REVISE PROVISIONS RE-15 GARDING APPLICATION OF THE PERSONNEL SYSTEM TO STATE EMPLOYEES AND TO16 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 72-1201, IDAHO CODE, TO17 REVISE PROVISIONS REGARDING THE WORKFORCE DEVELOPMENT COUNCIL AND TO18 MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 72-1203, IDAHO CODE, TO19 REVISE PROVISIONS REGARDING THE WORKFORCE DEVELOPMENT TRAINING FUND20 AND TO MAKE TECHNICAL CORRECTIONS; AND DECLARING AN EMERGENCY AND PRO-21 VIDING EFFECTIVE DATES.22

Be It Enacted by the Legislature of the State of Idaho:23

SECTION 1. That Section 33-1633, Idaho Code, be, and the same is hereby24 amended to read as follows:25 33-1633. COMPUTER SCIENCE INITIATIVE FOR PUBLIC SCHOOLS. (1) As used26 in this section:27 (a) "Blended professional development" means to deliver content and28 training to teachers and administrators in a combination of online and29 face-to-face.30 (b) "Computer science" means the study of principles, applications,31 and technologies of computing and computers.32 (c) "Council" means the workforce development council established in33 section 72-1201, Idaho Code.34 (2) The STEM action center council, the state board of education, and35 the state department of education shall collaborate to develop and implement36 a computer science initiative for public schools by:37 (a) Adopting Maintaining computer science content standards in 201638 aligned with nationally recognized computer science education stan-39 dards with input from Idaho educators and industries for implementation40 in the 2017-2018 school year;41

2 (b) Providing for professional development in teaching computer sci-1 ence by:2 (i) Developing resources for teachers and administrators relat-3 ing to teaching computational thinking;4 (ii) Providing statewide, regional, online, and blended profes-5 sional development opportunities for school district staff;6 (iii) Partnering with entities such as the Idaho digital learn-7 ing academy, public higher education institutions, and industry8 to develop, deliver, and provide professional development in com-9 puter science for teachers; and10 (iv) Distributing grants to school districts and charter schools11 that may be used to provide incentives for teachers to pursue12 training in computer science or earn a computer science endorse-13 ment;14 (c) Maintaining, using, and enhancing access to an online portal or15 repository of instructional resources that:16 (i) Is available for public school districts and public charter17 schools to use as a resource;18 (ii) Includes high-quality computer science instructional re-19 sources that are designed to teach K-12 students computational20 thinking skills and are in alignment with the state computer sci-21 ence content standards;22 (iii) Leverages existing online resources and portals developed23 by state and governmental entities; and24 (iv) Allows for collaborative contribution and sharing of re-25 sources by teachers, administrators, parents, and students;26 (d) Ensuring that the state department of education and the Idaho digi-27 tal learning academy evaluate providers of comprehensive computer sci-28 ence instructional solutions and provide research, support, and guid-29 ance on implementing solutions for computer science courses or programs30 aligned with the state computer science content standards;31 (e) Creating opportunities for schools to partner with local companies32 to provide for student and teacher mentoring and internships in the com-33 puter science field;34 (f) Communicating and supporting computer science initiatives, pro-35 grams, events, training, and other promotions throughout the state for36 the benefit of school districts, students, parents, and local communi-37 ties; and38 (g) Creating equitable access to computer science resources and pro-39 grams aligned with the state computer science content standards for40 teachers, administrators, and students throughout the state.41 (3) The STEM action center council, the state board of education, and42 the state department of education shall, when economical and beneficial,43 leverage existing state resources and systems to effectively and effi-44 ciently carry out the directives of this computer science initiative for45 public schools.46 (4) The STEM action center board executive director of the council may47 select one (1) or more providers through a request for proposals process to48 provide a comprehensive computer science solution for public school dis-49 tricts and public charter schools to implement.50

3 (5) The STEM action center council, the division of career technical1 education, and industry shall collaborate to create technical secondary and2 postsecondary courses of study in areas related to computer science that3 meet workforce needs.4 (6) The STEM action center council shall collaborate with the state5 board of education, division of career technical education, the state de-6 partment of education, public higher education institutions, and industry7 to develop a communication plan related to the computer science initiative.8 (7) The STEM action center council and the state board of education9 shall provide an annual report to the legislature on the status of this ini-10 tiative.11

SECTION 2. That Chapter 47, Title 33, Idaho Code, be, and the same is12 hereby repealed.13

SECTION 3. That Section 63-3029A, Idaho Code, be, and the same is hereby14 amended to read as follows:15 63-3029A. INCOME TAX CREDIT FOR CHARITABLE CONTRIBUTIONS -- LIMITA-16 TION. At the election of the taxpayer, there shall be allowed, subject to17 the applicable limitations provided herein, as a credit against the income18 tax imposed by chapter 30, title 63, Idaho Code, an amount equal to fifty19 percent (50%) of the aggregate amount of charitable contributions made by20 such taxpayer during the year to a nonprofit corporation, fund, foundation,21 trust, or association organized and operated exclusively for the benefit22 of institutions of higher learning located within the state of Idaho, in-23 cluding a university-related research park, to nonprofit private or public24 institutions of elementary, secondary, or higher education or their founda-25 tions located within the state of Idaho, to Idaho education public broadcast26 system foundations within the state of Idaho, to the Idaho state historical27 society or its foundation, to the council for the deaf and hard of hearing,28 to the developmental disabilities council, to the commission for the blind29 and visually impaired, to the commission on Hispanic affairs, to the state30 independent living council, to the Idaho commission for libraries and to31 public libraries or their foundations and library districts or their foun-32 dations located within the state of Idaho, to the Idaho STEM action center,33 to nonprofit public or private museums or their foundations located within34 the state of Idaho, to residency programs accredited by the accreditation35 council for graduate medical education or the American osteopathic associa-36 tion or their designated nonprofit support organizations based in Idaho and37 devoted to training residents in Idaho and to dedicated accounts within the38 Idaho community foundation inc. that exclusively support the charitable39 purposes otherwise qualifying for the tax credit authorized under the pro-40 visions of this section.41 (1) In the case of a taxpayer other than a corporation, the amount al-42 lowable as a credit under this section for any taxable year shall not exceed43 fifty percent (50%) of such taxpayer's total income tax liability imposed by44 section 63-3024, Idaho Code, for the year, or five hundred dollars ($500),45 whichever is less.46 (2) In the case of a corporation, the amount allowable as a credit un-47 der this section for any taxable year shall not exceed ten percent (10%) of48

4 such corporation's total income or franchise tax liability imposed by sec-1 tions 63-3025 and 63-3025A, Idaho Code, for the year, or five thousand dol-2 lars ($5,000), whichever is less.3 For the purposes of this section, "contribution" means monetary dona-4 tions reduced by the value of any benefit received in return such as food, en-5 tertainment, or merchandise.6 For the purposes of this section, "institution of higher learning"7 means only an educational institution located within this state meeting all8 of the following requirements:9 (a) It maintains a regular faculty and curriculum and has a regularly10 enrolled body of students in attendance at the place where its educa-11 tional activities are carried on.12 (b) It regularly offers education above the twelfth grade.13 (c) It is accredited by the northwest commission on colleges and uni-14 versities.15 For the purposes of this section, a "nonprofit institution of secondary16 or higher education" means a private nonprofit secondary or higher educa-17 tional institution located within the state of Idaho, which that is accred-18 ited by the northwest commission on colleges and universities, or accredited19 by a body approved by the state board of education. A "nonprofit private in-20 stitution of elementary education" means a private nonprofit elementary ed-21 ucational institution located within the state of Idaho and accredited by22 the state board of education pursuant to section 33-119, Idaho Code.23 For the purposes of this section, a nonprofit corporation, fund, foun-24 dation, trust, or association that invests contributions in an endowment or25 otherwise shall be subject to the standards of care imposed under section26 33-5003, Idaho Code.27

SECTION 4. That Section 67-823, Idaho Code, be, and the same is hereby28 repealed.29

SECTION 5. That Section 67-824, Idaho Code, be, and the same is hereby30 amended to read as follows:31 67-824. STEM EDUCATION FUND. (1) There is hereby created in the state32 treasury the STEM education fund to support the programs and priorities of33 the state in advancing science, technology, engineering, and mathematics34 education. The STEM education fund may accept private contributions, moneys35 from other public agencies or moneys from any other source. The moneys shall36 be used solely for the purposes provided in section 67-823, Idaho Code, and37 be expended and accounted for as provided by law. All expenditures from the38 STEM education fund must be approved by the Idaho STEM action center advisory39 board.40 (2) On July 1, 2026, or as soon thereafter as practicable, but no later41 than July 31, 2026, the state controller shall transfer all moneys in the42 STEM education fund established in this section to the workforce development43 training fund established in section 72-1203, Idaho Code.44

SECTION 6. That Section 67-824, Idaho Code, be, and the same is hereby45 repealed.46

5

SECTION 7. That Section 67-825, Idaho Code, be, and the same is hereby1 repealed.2

SECTION 8. That Section 67-5303, Idaho Code, be, and the same is hereby3 amended to read as follows:4 67-5303. APPLICATION TO STATE EMPLOYEES. All departments of the state5 of Idaho and all employees in such departments, except those employees6 specifically defined as nonclassified, shall be classified employees who7 are subject to this chapter and to the system of personnel administration8 it prescribes. All nonclassified employees are subject to conformity with9 classified positions as set forth in section 59-1603, Idaho Code. Nonclas-10 sified employees shall be:11 (a) Members of the state legislature and all other officers of the state12 of Idaho elected by popular vote and persons appointed to fill vacancies in13 elective offices and employees of the state legislature.14 (b) Members of statutory boards and commissions and heads of depart-15 ments appointed by and serving at the pleasure of the governor, deputy di-16 rectors appointed by the director of a department, and members of advisory17 boards and councils appointed by the departments.18 (c) All employees and officers in the office, and at the residence, of19 the governor; and all employees and officers in the offices of the lieutenant20 governor, secretary of state, attorney general, state treasurer, state con-21 troller, and state superintendent of public instruction.22 (d) Except as otherwise provided by law, one (1) declared position des-23 ignated by the appointing authority of a participating department, in addi-24 tion to those declared to be nonclassified by other provisions of law.25 (e) Part-time professional consultants who are paid on a fee basis for26 any form of legal, medical, or other professional service and who are not en-27 gaged in the performance of administrative duties for the state.28 (f) Judges, temporary referees, receivers, and jurors.29 (g) All employees of the Idaho supreme court, Idaho court of appeals,30 and district courts.31 (h) All employees of the Idaho state bar.32 (i) Assistant attorneys general attached to the office of the attorney33 general.34 (j) Officers, members of the teaching staffs of state higher educa-35 tional institutions, the professional staffs of the office of the state36 board of education and the Idaho department of education administered by the37 board of regents and the board of education, all professional staff of the38 public charter school commission, and the professional staffs of the Idaho39 division of career technical education and vocational rehabilitation admin-40 istered by the state board for career technical education. "Teaching staff"41 includes teachers, coaches, resident directors, librarians, and those prin-42 cipally engaged in academic research. The word "officer" means presidents,43 vice presidents, deans, directors, or employees in positions designated by44 the state board who receive an annual salary of not less than step A of the pay45 grade equivalent to three hundred fifty-five (355) Hay points in the state46 compensation schedule. In consultation with the Idaho division of human47 resources, the state board of education shall implement policies and pro-48

6 cedures for nonclassified employees to conform with section 59-1603, Idaho1 Code.2 (k) Employees of the military division.3 (l) Patients, inmates, or students employed in a state institution.4 (m) Temporary employees.5 (n) All employees and officers of the following named commodity commis-6 sions, and all employees and officers of any commodity commission created7 hereafter: the Idaho potato commission, as provided in chapter 12, title 22,8 Idaho Code; the Idaho honey commission, as provided in chapter 28, title 22,9 Idaho Code; the Idaho bean commission, as provided in chapter 29, title 22,10 Idaho Code; the Idaho hop grower's commission, as provided in chapter 31, ti-11 tle 22, Idaho Code; the Idaho wheat commission, as provided in chapter 33,12 title 22, Idaho Code; the Idaho pea and lentil commission, as provided in13 chapter 35, title 22, Idaho Code; the Idaho apple commission, as provided in14 chapter 36, title 22, Idaho Code; the Idaho cherry commission, as provided in15 chapter 37, title 22, Idaho Code; the Idaho mint commission, as provided in16 chapter 38, title 22, Idaho Code; the Idaho sheep and goat health board, as17 provided in chapter 1, title 25, Idaho Code; the state brand inspector, and18 all district supervisors, as provided in chapter 11, title 25, Idaho Code;19 the Idaho beef council, as provided in chapter 29, title 25, Idaho Code; and20 the Idaho dairy products commission, as provided in chapter 31, title 25,21 Idaho Code.22 (o) All inspectors of the fresh fruit and vegetable inspection service23 of the Idaho department of agriculture, except those positions involved in24 the management of the program.25 (p) All employees of correctional industries within the department of26 correction.27 (q) All deputy administrators and wardens employed by the department of28 correction. Deputy administrators are defined as only the deputy adminis-29 trators working directly for the nonclassified division administrators un-30 der the director of the department of correction.31 (r) All public information positions, with the exception of secretar-32 ial positions, in any department.33 (s) Any division administrator and all executive employees.34 (t) Any regional administrator or division administrator in the de-35 partment of environmental quality.36 (u) All employees of the division of financial management, all employ-37 ees of the STEM action center, all employees of the office of species conser-38 vation, all employees of the office of drug policy, and all employees of the39 office of energy and mineral resources.40 (v) All employees of the Idaho food quality assurance institute.41 (w) All employees of the office of the state appellate public defender,42 pursuant to chapter 59, title 19, Idaho Code, and the office of the state pub-43 lic defender, pursuant to chapter 60, title 19, Idaho Code.44 (x) All quality assurance specialists or medical investigators of the45 Idaho board of medicine.46 (y) All pest survey and detection employees and their supervisors hired47 specifically to carry out activities under the Idaho plant pest act, chapter48 20, title 22, Idaho Code, including but not limited to pest survey, detec-49

7 tion, and eradication, except those positions involved in the management of1 the program.2 (z) All medical directors employed by the department of health and3 welfare who are engaged in the practice of medicine, as defined by section4 54-1803, Idaho Code, at a state hospital or other treatment facility managed5 and operated by the department of health and welfare.6 (aa) All hearing officers and all other employees of the office of ad-7 ministrative hearings, as provided for in chapter 52, title 67, Idaho Code.8 (bb) All attorneys employed by the division of occupational and profes-9 sional licenses.10

SECTION 9. That Section 72-1201, Idaho Code, be, and the same is hereby11 amended to read as follows:12 72-1201. CREATION OF WORKFORCE DEVELOPMENT COUNCIL -- COMPOSITION --13 APPOINTMENT -- EXECUTIVE DIRECTOR. (1) There is hereby established in the14 executive office of the governor the workforce development council. Members15 of the council and an executive director shall be appointed by and serve at16 the pleasure of the governor. The governor shall prescribe the structure,17 duties, and functions of the council, which shall include but not be limited18 to the following:19 (a) To serve as the state's coordinating body on matters related to20 workforce development policy and programs by engaging employer part-21 ners in identifying workforce gaps and talent development strategies;22 (b) To develop and provide oversight of procedures, criteria, and per-23 formance measures for the workforce development training fund estab-24 lished under section 72-1203, Idaho Code; and25 (c) To serve as the state workforce investment development board in ac-26 cordance with section 101 of the federal workforce innovation and op-27 portunity act, 29 U.S.C. 3101 et seq., as amended, and federal regula-28 tions promulgated thereunder.; and29 (d) Until June 30, 2036, to coordinate and promote science, technol-30 ogy, engineering, and mathematics (STEM) education, skills training,31 and workforce alignment across education, industry, and government,32 including:33 (i) To support statewide STEM initiatives, including the inte-34 gration of project-based and work-based learning opportunities;35 (ii) To provide for professional development aligned with career36 readiness and industry needs; and37 (iii) To collaborate with public and private entities to support38 STEM education through funding, in-kind contributions, and pro-39 grammatic partnerships in accordance with the provisions of sub-40 section (2) of this section.41 (2) Entities that provide contributions for special projects permitted42 in subsection (1)(d)(iii) of this section shall provide no less than fifty43 percent (50%) of funding for projects approved by the council. Contribu-44 tions such as materials, personnel, supplies, physical facilities, or ser-45 vices may be considered as all or part of the funding provided by the entity.46 (2) (3) The council may appoint special committees in connection with47 this section.48

8 (3) (4) The council may apply for and accept grants and contributions of1 funds from any public or private source.2 (4) (5) The executive director is authorized to hire and supervise sup-3 port staff consistent with the mission and priorities of the council. The4 executive director shall be a nonclassified employee exempt from the provi-5 sions of chapter 53, title 67, Idaho Code. Support staff shall be classified6 employees under the provisions of chapter 53, title 67, Idaho Code.7 (5) (6) Members of the council and any special committees who are not8 state employees shall be compensated for actual and necessary expenses as9 provided by section 59-509(b), Idaho Code.10 (7) The council shall report annually to the governor and the joint11 finance-appropriations committee on commitments and expenditures made from12 the general fund, along with performance metrics, relating to the provisions13 of subsection (1)(d) of this section for the preceding fiscal year and the14 results of the activities, including:15 (a) The number of educators and out-of-school professionals who re-16 ceived professional development in the areas of STEM, including educa-17 tor externships funded by the council;18 (b) The number of participants in STEM events supported by the council19 and the results of surveys conducted before such events and after such20 events; and21 (c) The alignment of STEM courses and postsecondary programs to the de-22 mand for STEM skills and careers in Idaho.23

SECTION 10. That Section 72-1203, Idaho Code, be, and the same is hereby24 amended to read as follows:25 72-1203. WORKFORCE DEVELOPMENT TRAINING FUND. (1) There is estab-26 lished in the state treasury a special trust fund, separate and apart from27 all other public funds of this state, to be known as the workforce develop-28 ment training fund, hereinafter "training fund." Except as provided herein,29 all proceeds from the training tax defined in subsection (7) of this sec-30 tion shall be paid into the training fund. The state treasurer shall be the31 custodian of the training fund and shall invest said moneys in accordance32 with law. Any interest earned on the moneys in the training fund shall be de-33 posited in the training fund. Moneys in the training fund shall be disbursed34 in accordance with the directions of the council.35 (2) All moneys in the training fund are appropriated to the council for36 expenditure in accordance with the provisions of this section. The purpose37 of the training fund is to provide or expand training and retraining oppor-38 tunities in an expeditious manner that would not otherwise exist for Idaho's39 workforce. The training fund is intended to supplement but not to supplant40 or compete with moneys available through existing training programs. The41 moneys in the training fund shall be used for the following purposes:42 (a) To provide training and retraining for skills necessary for spe-43 cific economic opportunities and industrial expansion initiatives;44 (b) To provide innovative training solutions to meet industry-specific45 workforce needs or local workforce challenges;46 (c) To provide public information and outreach on career education and47 workforce training opportunities, including existing education and48 training programs and services not funded by the training fund; and49

9 (d) To support the programs and priorities of the state in advancing1 science, technology, engineering, and mathematics education and skills2 training. Any obligations incurred by the STEM education fund as it ex-3 isted on July 1, 2026, shall be payable from the workforce development4 training fund established in this section; and5 (d) (e) For all administrative expenses incurred by the council, in-6 cluding those expenses associated with the collection of the training7 tax and any other administrative expenses associated with the training8 fund.9 (3) Expenditures from the training fund for purposes authorized in10 paragraphs (a), (b) and (c) of subsection (2)(a), (b), (c), and (d) of this11 section shall be approved by the council based on procedures, criteria, and12 performance measures established by the council.13 (4) Expenditures from the training fund for purposes authorized in14 paragraph (d) of subsection (2)(e) of this section shall be approved by the15 executive director. The executive director shall pay all approved expendi-16 tures as long as the training fund has a positive balance.17 (5) The activities funded by the training fund will be coordinated with18 similar activities funded by the state division of career technical educa-19 tion.20 (6) The council shall report annually to the governor and the joint fi-21 nance-appropriations committee the commitments and expenditures made from22 the training fund in the preceding fiscal year and the results of the activi-23 ties funded by the training fund.24 (7) A training tax is hereby imposed on all covered employers required25 to pay contributions pursuant to section 72-1350, Idaho Code, with the ex-26 ception of deficit-rated employers who have been assigned a taxable wage27 rate from rate class six pursuant to section 72-1350, Idaho Code. The train-28 ing tax rate shall be equal to three percent (3%) of the taxable wage rate29 then in effect for each eligible standard-rated and deficit-rated employer.30 The training tax shall be due and payable at the same time and in the same31 manner as contributions.32 (8) The provisions of chapter 13, title 72, Idaho Code, which apply to33 the payment and collection of contributions, also apply to the payment and34 collection of the training tax, including the same calculations, assess-35 ments, methods of payment, penalties, interest, costs, liens, injunctive36 relief, collection procedures, and refund procedures. The director of the37 department of labor is granted all rights, authority, and prerogatives nec-38 essary to administer the provisions of this subsection. Moneys collected39 from an employer delinquent in paying the training tax shall first be applied40 to any penalties and interest imposed pursuant to the provisions of chapter41 13, title 72, Idaho Code, and then pro rata to the training fund established42 in subsection (1) of this section. Any penalties and interest collected43 pursuant to this subsection shall be paid into the state employment security44 administrative and reimbursement fund, section 72-1348, Idaho Code, and45 any penalties or interest refunded under this subsection shall be paid from46 that same fund. Training taxes paid pursuant to this section shall not be47 credited to the employer's experience rating account and may not be deducted48 by any employer from the wages of individuals in its employ. All training49 taxes shall be deposited in the clearing account of the employment security50

10 fund, section 72-1346, Idaho Code, for clearance only and shall not become1 part of such fund. After clearance, the moneys shall be deposited in the2 training fund. The director of the department of labor may authorize refunds3 of training taxes erroneously collected and deposited in the training fund.4 (9) The training fund may accept private contributions, moneys from5 other public agencies, and moneys from any other source, which may be used6 for the purposes authorized in subsection (2)(a), (b), (c), and (d) of this7 section.8

SECTION 11. An emergency existing therefor, which emergency is hereby9 declared to exist, Sections 1, 2, 3, 4, 5, 7, 8, 9, and 10 of this act shall10 be in full force and effect on and after July 1, 2026. Section 6 of this act11 shall be in full force and effect on and after October 1, 2026.12