Amends and adds to existing law to provide requirements for statutory authorization of all Department of Health and Welfare programs and services and all appropriations for any program, service, or activity.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1344 BY JUDICIARY AND RULES COMMITTEE AN ACT1 RELATING TO LEGISLATIVE AUTHORITY; AMENDING SECTION 56-202, IDAHO CODE,2 TO REVISE PROVISIONS REGARDING THE DUTIES OF THE DIRECTOR OF THE STATE3 DEPARTMENT OF HEALTH AND WELFARE; AMENDING SECTION 56-203, IDAHO CODE,4 TO REVISE PROVISIONS REGARDING THE POWERS OF THE STATE DEPARTMENT OF5 HEALTH AND WELFARE; AMENDING CHAPTER 10, TITLE 56, IDAHO CODE, BY THE6 ADDITION OF A NEW SECTION 56-1011, IDAHO CODE, TO ESTABLISH PROVISIONS7 REGARDING A REPORT ON PROGRAMS AND AUTHORITY; AMENDING SECTION 67-3516,8 IDAHO CODE, TO REVISE PROVISIONS REGARDING APPROPRIATIONS ACTS; AND9 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.10

Be It Enacted by the Legislature of the State of Idaho:11

SECTION 1. That Section 56-202, Idaho Code, be, and the same is hereby12 amended to read as follows:13 56-202. DUTIES OF DIRECTOR OF STATE DEPARTMENT OF HEALTH AND WEL-14 FARE. (1) The director of the state department of health and welfare shall:15 (a) Administer public assistance and social services to eligible peo-16 ple;17 (b) Promulgate, adopt and enforce such rules and such methods of admin-18 istration as may be necessary or proper to carry out the provisions of title19 56, Idaho Code, except as provided in section 56-203A, Idaho Code;20 (c) Conduct research and compile statistics relating to public wel-21 fare;22 (d) Prepare for the governor and legislature an annual report of activ-23 ities and expenditures; make such reports in such form and containing such24 information as the federal government may from time to time require; and com-25 ply with such provisions as the federal government may from time to time find26 necessary to assure the correctness and verification of such reports;27 (e) Cooperate with the federal government through its appropriate28 agency or instrumentality in establishing, extending, and strengthening29 services for the protection and care of homeless, dependent, and neglected30 children, and children in danger of becoming delinquent; and to undertake31 other services for children authorized by law;32 (f) Cooperate with the federal government through its appropriate33 agency or instrumentality in establishing and maintaining a comprehensive34 system of in-home services as defined in section 67-5006, Idaho Code, de-35 signed to assist older persons, as defined in section 67-5006, Idaho Code,36 of Idaho to continue living in an independent and dignified home environment37 and to undertake other services for older persons as authorized by law;38 (g) Exercise the opt-out provision in section 115 of the personal re-39 sponsibility and work opportunity reconciliation act of 1996, P.L. 104-193.40 Consistent with this, the department may provide food stamps and services41 funded under title 4A (including cash assistance, TANF supportive services42

2 and at-risk payments) to a person who has been convicted of a felony involv-1 ing a controlled substance as defined in chapter 27, title 37, Idaho Code, if2 they comply with the terms of a withheld judgment, probation or parole.3 (2) No later than July 1, 2028, the director shall complete the dis-4 continuation of any program or service not expressly authorized by Idaho5 Code. The director shall continuously monitor all department programs and6 services to ensure statutory compliance and shall cease all new expenditures7 for and complete the discontinuation of any program or service found to be8 not expressly authorized by Idaho Code within sixty (60) days of such find-9 ing.10 (3) If the department expends funds for a program or service found to be11 not expressly authorized by Idaho Code, the state controller shall:12 (a) Immediately revoke the spending authority and revert all unex-13 pended balances to the fund of origin upon a legal determination of a14 lack of authorization;15 (b) Reduce the department's maintenance appropriation for the follow-16 ing fiscal year by the total amount of any funds, regardless of fund17 source, disbursed for the unauthorized program or service prior to its18 revocation; and19 (c) Certify the amount of the unauthorized expenditure to the joint fi-20 nance-appropriations committee of the legislature no later than Jan-21 uary 15 of each year.22

SECTION 2. That Section 56-203, Idaho Code, be, and the same is hereby23 amended to read as follows:24 56-203. POWERS OF STATE DEPARTMENT. The state department shall have25 the power to:26 (1) Enter When authorized by Idaho Code, enter into contracts and27 agreements with the federal government through its appropriate agency28 or instrumentality whereby the state of Idaho shall receive federal29 grants-in-aid or other benefits for public assistance or public welfare pur-30 poses under any act or acts of congress heretofore or hereafter enacted;31 (2) Cooperate with the federal government in carrying out the purposes32 of any federal acts or programs authorized by Idaho Code pertaining to public33 assistance or welfare services, and in other matters of mutual concern;34 (3) Cooperate with county governments and other branches of government35 and other agencies, public or private, in administering and furnishing pub-36 lic welfare services authorized by Idaho Code;37 (4) Enter into reciprocal agreements with other states relative to the38 provisions of public assistance and welfare services to residents and non-39 residents;40 (5) Initiate and administer public assistance and social services41 authorized by Idaho Code for persons with physical or mental disabilities;42 (6) Establish such requirements of residence for public assistance un-43 der this chapter as may be deemed advisable, subject to any limitations im-44 posed in this chapter, including the requirements of lawful presence pur-45 suant to section 67-7903, Idaho Code;46 (7) Define persons entitled to medical assistance in such terms as will47 meet requirements for federal financial participation in medical assistance48 payments;49

3 (8) Accept the legal custody of children committed to it by district1 courts of this state under the child protective act, to provide protective2 supervision as defined therein, to place children for adoption when such3 children are in the legal custody of the state department and are legally4 available for adoption, and to exercise consent to adoption when the author-5 ity to do so is vested in the department by court order or legally authorized6 parental relinquishment;7 (9) Determine the amount, duration and scope of care and services to be8 purchased as medical assistance on behalf of needy eligible individuals;9 (10) Manage and operate the southwest Idaho treatment center at Nampa,10 Idaho; and11 (11) Manage and operate state hospital north at Orofino, Idaho; state12 hospital south at Blackfoot, Idaho; and state hospital west at Nampa, Idaho.13

SECTION 3. That Chapter 10, Title 56, Idaho Code, be, and the same is14 hereby amended by the addition thereto of a NEW SECTION, to be known and des-15 ignated as Section 56-1011, Idaho Code, and to read as follows:16 56-1011. REPORT ON PROGRAMS AND AUTHORITIES. The department shall17 submit a report to the health and welfare committees of the Idaho house of18 representatives and the Idaho senate no later than December 1, 2026, con-19 taining a comprehensive list of all programs operated or managed by the20 department and the corresponding statutory authority that creates or other-21 wise authorizes the program.22

SECTION 4. That Section 67-3516, Idaho Code, be, and the same is hereby23 amended to read as follows:24 67-3516. APPROPRIATION ACTS DEEMED FIXED BUDGETS -- RATE OF EXPENDI-25 TURE. (1) Appropriation acts when passed by the legislature of the state of26 Idaho, and spending authority made thereunder, whether the appropriation is27 fixed or continuing, are fixed budgets beyond which state officers, depart-28 ments, bureaus, and institutions may not expend.29 (2) Moneys available to any agency from sources other than state mon-30 eys, if not cognizable at the time when appropriations were made whether31 state fiscal liability is increased or not, must have prior approval of the32 administrator of the division of financial management and the board of ex-33 aminers in order that moneys may be expended, except those moneys received34 under such conditions that preclude approval by the administrator of the35 division and/or the board of examiners. Receipts from the sale of capital36 outlay items and insurance claim settlements may, with the approval of the37 division of financial management, be included as an increase to an agency's38 appropriation and must be identified at an account category level. Expendi-39 ture of such receipts must be for capital outlay items, except in the case of40 a sale of a motor vehicle, which, notwithstanding section 67-3511(3), Idaho41 Code, may be transferred to operating expenditures with the approval of the42 division of financial management.43 (3) One state agency may bill another state agency for goods and ser-44 vices, provided the billing agency receives prior approval in writing from45 the billed agency or such billing is provided for by law. This process will46 be known as interagency billing to which the following rules will apply:47

4 (a) The state controller will treat interagency receipts as revenue and1 not classify such revenue as a reduction of the expenditures of the re-2 ceiving agency. Interagency billing credits for all moneys shall be de-3 posited to the appropriate fund of that agency.4 (b) Interagency receipts may be expended by the collecting agency to5 the extent that authority to do so has been requested and approved by the6 legislature through an appropriation.7 (c) The agency billed for the goods and services shall classify, treat,8 and account for such expenses in the same manner as if such expenses had9 been paid by warrant and may encumber unexpended balances and may carry10 forward the encumbered appropriation to liquidate known or anticipated11 interagency billing expenses at the end of a fiscal year. The state12 controller shall provide for the method of liquidation of these encum-13 brances.14 (4) State agencies selling goods, products, and services to another15 state agency must use the interagency process detailed by subsection (3) of16 this section. State agencies, departments, and institutions may sell goods,17 products, and services to the public and/or other political entities. These18 cash receipts may be expended according to the following rules:19 (a) The state controller will classify these moneys as receipts.20 (b) Receipts for all moneys shall be deposited to the appropriate fund21 of that agency.22 (c) The collecting agency may expend all such receipts only to the ex-23 tent that authority to do so has been requested and approved by the leg-24 islature through an appropriation, except receipts received by agen-25 cies under the circumstances cited in subsection (2) of this section.26 (5) No appropriation act shall be construed to create, extend, or imply27 independent authorization in Idaho Code for any program, service, or activ-28 ity. Every appropriation is contingent on such express authorization as may29 be required by the specific title of Idaho Code governing the appropriating30 agency.31

SECTION 5. An emergency existing therefor, which emergency is hereby32 declared to exist, this act shall be in full force and effect on and after33 July 1, 2026.34