Amends existing law to revise provisions regarding reporting requirements and to establish provisions regarding noncompliance.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1321 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO THE STATE CONTROLLER; AMENDING SECTION 67-1085A, IDAHO CODE, TO2 REVISE PROVISIONS REGARDING REPORTING REQUIREMENTS AND TO ESTABLISH3 PROVISIONS REGARDING NONCOMPLIANCE; AND DECLARING AN EMERGENCY AND4 PROVIDING AN EFFECTIVE DATE.5

Be It Enacted by the Legislature of the State of Idaho:6

SECTION 1. That Section 67-1085A, Idaho Code, be, and the same is hereby7 amended to read as follows:8 67-1085A. STATE AGENCY AGREEMENT REPORTING REQUIREMENTS. (1) As used9 in this section:10 (a) "Agency" means any state officer, department, division, bureau, or11 agency of the state of Idaho.12 (b) "Agreement" includes any legally binding contract, MOU, or MOA en-13 tered into by an agency with external entities.14 (c) "Master agreement" means a contract outlining general terms for a15 business relationship with specific sub-agreements that are subject to16 the master agreement's terms.17 (d) "Memorandum of agreement" or "MOA" means a legally binding agree-18 ment defining the terms, obligations, and responsibilities of the par-19 ties.20 (e) "Memorandum of understanding" or "MOU" means a non-binding agree-21 ment outlining a common understanding or objective between two (2) or22 more parties.23 (f) "Sub-agreement" means a contract subordinate to a master agreement24 that outlines specific terms or obligations.25 (2) Agencies shall report any executed MOU, MOA, or agreement, in-26 cluding sub-agreements, regardless of fund source, to the state controller27 within ten (10) business days of execution.28 (3) Reports required pursuant to subsection (2) of this section shall29 be submitted through the designated state controller reporting portal and30 must include:31 (a) A document title;32 (b) The date of execution and end date, if applicable;33 (c) A list of participating entities;34 (d) A brief summary or purpose;35 (e) An agency contact person's name, email, and phone number;36 (f) Any amendments or modifications to the agreement; and37 (g) The monetary value of the agreement, including total contract cost,38 funding sources, and payment schedule, if applicable.39 (4) Amendments to existing agreements shall not require separate re-40 porting but shall be updated in the original submission, including the date41

2 of the last amendment and updated end date if the amendment extended the term1 of the agreement.2 (5)(a) The following agreements are exempt from the provisions of this3 section and are not required to be reported:4 (i) Employment-related agreements with state employees, exclud-5 ing settlement agreements;6 (ii) Routine financial documents such as invoices and purchase7 orders used in the ordinary course of business;8 (iii) Student housing and financial aid agreements between insti-9 tutions and students; and10 (iv) Template agreements with standard terms used for short-term11 incidental purposes.12 (b) Statewide contracts executed by the department of administration,13 division of purchasing, shall be reported by the department of admin-14 istration, except that sub-agreements executed by individual agencies15 shall be reported by the agency executing the sub-agreement.16 (6) Each agency shall annually review, update, and certify the accuracy17 and completeness of its reported agreements by January 1 of each year. The18 certification must be signed or acknowledged by the agency head or an autho-19 rized representative.20 (7)(a) The state controller shall maintain and publish a centralized21 publicly accessible list of reported agreements, subject to public22 records exemptions under chapter 1, title 74, Idaho Code. At a minimum,23 the publicly available information shall include the information re-24 quired to be reported under subsection (3) of this section.25 (b) The state controller shall monitor agency compliance, and may pro-26 vide assistance to agencies, and may report non-compliance to the gov-27 ernor and legislature an agency in meeting the requirements of this sec-28 tion.29 (c) Should the state controller become aware of an agency's failure30 to report as required pursuant to subsection (2) of this section, the31 state controller shall provide prompt written notice to the agency of32 such failure, whereupon the agency shall cure the noncompliance within33 thirty (30) days of the date of receipt of such written notice or notify34 the state controller it will comply by a time certain, not to exceed35 sixty (60) days from the date of notice of noncompliance.36 (d) The state controller shall prepare an annual report of any agency37 that fails to cure its noncompliance as provided in paragraph (c) of38 this subsection. Such report shall be provided to the legislative ser-39 vices office on or before January 5 of each year.40 (e) An agency that remains noncompliant after an opportunity to cure41 its noncompliance may be subject to potential budgetary holdbacks for42 the following fiscal year at the discretion of the joint finance-appro-43 priations committee, upon the approval of the budget by the legislature44 and subject to the final approval of the governor.45 (f) The state controller shall have authority to develop and maintain46 a guidance policy to carry out the provisions and requirements of this47 section, including the manner of reporting agreements to its report-48 ing portal, and shall publish such policy in the same location where the49 list of reported agreements is published.50

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SECTION 2. An emergency existing therefor, which emergency is hereby1 declared to exist, this act shall be in full force and effect on and after2 July 1, 2026.3