Idaho Bills

Amends existing law to revise provisions regarding provider payment.

This bill is brought to increase transparency for taxpayers and support appropriation reductions for Medicaid rates paid to residential habilitation providers. Medicaid pays more than $176.5 million in General Funds to help people with disabilities live independently with residential habilitation and other home and community-based services. The Governor’s Recommendation calls for the Legislature to pursue policy changes to support the Department of Health and Welfare in achieving budget reductions for Medicaid, including an option to reduce rates for residential habilitation. In 2022, the Legislature appropriated funds (FY 2023 DU-7 KW Settlement – Svc. Enhance.) to increase payment rates for these services to implement a new service array and budget tool associated with the KW lawsuit. These funds are no longer appropriate since a court order halted implementation of the new services and budget tool. To support ongoing accountability for taxpayer dollars and ensure the Legislature has needed information to effectuate its appropriation responsibilities, this bill requires the department to report to this body how those funds are used.

Adds to existing law to establish provisions allowing for multifamily residential housing developments in areas zoned for commercial use.

This legislation allows multifamily residential developments in commercial zones as a matter of right, subject to the same basic siting and design standards that apply to commercial uses. To enable housing near jobs, schools, services, and underutilized commercial corridors, the bill establishes clear approval processes and limits mandates that make infill housing economically infeasible.

Relates to the appropriation to the Department of Health and Welfare for fiscal year 2027.

RS33786 / S1428 This appropriation to the Department of Health and Welfare for the Divisions of Early Learning and Development, Family and Community Partnerships, and Youth Safety and Permanency provides enhancements to the FY 2027 maintenance budget. For FY 2027 this bill includes funding for five enhancements, a population forecast adjustment and adds the Idaho Home Visiting Program (IHVP) to the Division of Early Learning and Development. Enhancements include funding for Year 2 for the Idaho Childcare Program (ICCP), a walker mower, federal appropriation for the Kinship Navigation Grant, budget restoration for post adoption services, and budget restoration for safety assessments. This bill also includes sections of language providing guidance on the ICCP, reporting requirements, and transfer limitation exemptions.

Adds to existing law to establish cost-sharing requirements for health benefit plans.

This legislation would require health insurance companies to apply toward its insured's copay, deductible, and out-of-pocket maximum those payments which are made by a third party for the benefit of the insured.

Proposes an amendment to the state constitution regarding state-owned lands.

The purpose of this Joint Resolution is to amend Article IX, Section 8 of the Idaho Constitution to establish an updated framework for managing state endowment and public lands. The amendment replaces the "maximum long-term financial return" mandate with expanded land management practices that prioritize ongoing revenue generation, including but not limited to timber sales, mining, and grazing, followed by public access for recreation, hunting, fishing, and trapping. The amendment continues to allow the sale or exchange of these lands while reducing pressure on the state to sell them solely because of their high value. This resolution preserves all existing options for timber, mining, and grazing, and remains fully compliant with the Idaho Admissions Act without altering the Land Board’s structure or the Endowment’s beneficiaries.

States findings of the Legislature and provides that all temporary and pending rules adopted by the Idaho Commission on Aging, the Idaho Commission for the Blind and Visually Impaired, the Department of Health and Welfare, and the Division of Occupational and Professional Licenses have been reviewed and approved by the Senate Health and Welfare Committee, with exceptions.

RS33805 / SR124 This resolution states that all temporary and pending rules of the Idaho Commission on Aging, the Idaho Commission for the Blind and Visually Impaired, the Department of Health and Welfare, and the Division of Occupational and Professional Licenses have been reviewed and approved by the Senate Health and Welfare Committee (Committee), with exceptions. The Committee reviewed and approved the pending rules of the Division of Occupational and Professional Licenses with the exceptions that the following were not approved: IDAPA 24.05.01, Division of Occupational and Professional Licenses, Rules of the Board of Drinking Water and Wastewater Professionals, Docket No. 24-0501-2501, Section 400., only; and IDAPA 24.06.01, Division of Occupational and Professional Licenses, Rules for the Licensure of Occupational Therapists and Occupational Therapy Assistants, Docket No. 24-0601-2501, the entire docket. Additionally, the Committee did not review and therefore did not approve the following pending rules at the request of the Department of Health and Welfare, who expressed intent to allow the rules to expire on sine die: IDAPA 16.06.03, Department of Health and Welfare, Rules for Daycare Licensing, Docket No. 16-0603-2501, the entire docket; and IDAPA 16.06.12, Department of Health and Welfare, Rules for the Idaho Child Care Program, Docket No. 16-0612-2501, the entire docket.

States findings of the Legislature and provides that all temporary and pending rules adopted by the Idaho Commission on Aging, the Idaho Commission for the Blind and Visually Impaired, the Department of Health and Welfare, and the Division of Occupational and Professional Licenses have been reviewed and approved by the House Health and Welfare Committee, with exceptions.

RS33804 / HR030 This Concurrent Resolution lists those portions of pending Administrative Rules which were rejected by the germane committee. At the request of the Department of Health and Welfare rules for daycare licensing and the Idaho Child Care Program were not reviewed. Rejected in their entirety were pending rules for the Division of Occupational and Professional Licenses which pertain to the licensure of Occupational Therapists and Occupational Therapy Assistants as well as the Physical Therapy Licensure Board.

Amends existing law to exempt sales to or purchases by the Salvation Army.

To add the Salvation Army to the list of non-profits who are eligible for a use and sales tax exemption.

Amends existing law to include health care sharing ministries as an eligible medical expense.

This legislation would provide that Health Care Sharing Ministry (HCSM) expenses are eligible medical expenses for Medical Savings Accounts (MSA). In Idaho, MSAs enable Idahoans to receive tax deduction benefits for up to $10,000 of health-related expenses paid out of Medical Savings Accounts. Under current law, citizens can only use their MSA for eligible medical, vision, and dental expenses (as defined by the Internal Revenue Code), along with health insurance and supplemental Medicare premiums and long-term care expenses. Due to the fact that HCSMs are not insurance companies and are not as well known, the tax code does not explicitly address their status. Currently, Idaho HCSM members are unable to utilize an MSA for HCSM expenses that serve a similar purpose to insurance premiums. Members of HCSMs financially assist fellow members with large medical expenses, rendering a result usually provided by health insurance. However, their costs do not have tax parity with health insurance premiums. Like health insurance policyholders, members of HCSMs make payments that go toward assisting fellow members with medical expenses. Share fees paid to HCSMs are also not tax deductible, even though HCSMs are nonprofit organizations, due to the possibility of those funds being used on the member’s own health expenses.

Amends existing law to authorize the Department of Commerce to use certain tax revenue to fund state institutions of higher education.

RS33675 / H0861 Currently, local nonprofit organizations that have as their primary purpose the promotion of travel and conventions (chamber of commerce) may apply for grants from Idaho's bed tax. This legislation allows Universities to also apply for the grants to promote economic development within the state.

Proposes an amendment to the state constitution regarding state-owned lands.

The purpose of this Joint Resolution is to amend Article IX, Section 8 of the Idaho Constitution to establish an updated framework for managing state endowment and public lands. The amendment replaces the "maximum long-term financial return" mandate with expanded land management practices that prioritize ongoing revenue generation, followed by public access for recreation, hunting, fishing, and trapping. The amendment continues to allow the sale or exchange of these lands, but reduces pressure on the state to sell them solely because of their high value. The amendment also includes language for adopting similar land management practices if the federal government transfers new public lands to Idaho. Such transfers would be subject to valid and existing rights and obligations. The amendment also supports the recognition of future rights and obligations as identified by state law. This resolution preserves all existing options for timber, mining, and grazing, and remains fully compliant with the Idaho Admissions Act without altering the Land Board’s structure or its beneficiaries.

Adds to existing law to establish the Idaho Kratom Consumer Protection and Safety Act.

RS33741 / S1418 This legislation establishes the Idaho Kratom Consumer Protection and Safety Act to provide basic consumer protections for kratom products sold in Idaho while preserving access to natural kratom leaf for adults. Developed in consultation with law enforcement, physicians, and other stakeholders, the bill addresses safety concerns related to adulterated or chemically enhanced kratom products, particularly those containing artificially elevated levels of 7-hydroxymitragynine (7-OH), and prohibits the manufacture or sale of such products while establishing age restrictions and enforcement authority.

Adds to existing law to establish the Litigation Financing Transparency, National Security, and Consumer Protection Act.

In other states the practice of third party litigation financing has become a problem, as lenders essentially buy a stake in the litigation that is contingent on the outcome of a lawsuit. In most cases those lenders gain a right to control or influence the litigation as a way to secure their investment. That can cause the actual party to the lawsuit to lose control of the litigation on their own case, essentially selling it to the lender. This legislation provides transparency so that lending arrangements are open to the court and to the litigants. It provides consumer protections to assure that these lawsuit lenders don’t displace the actual parties in the decision making on their own litigation and prevents exploitation and undue influence over legal proceedings. Finally, it prevents foreign adversaries and other foreign persons of concern from interfering in the Idaho judicial system by becoming lawsuit lenders.

Amends existing law to provide that gubernatorial appointees who are expressly rejected by the Senate shall not be appointed to any position requiring the advice and consent of the Senate for a period of one year following the Senate's express rejection.

This legislation prohibits the governor from appointing any individual to a position requiring Senate consent for one year following the Senate's rejection of that individual's nomination. The restriction applies to all appointments subject to Senate confirmation during that one-year period.

Amends, repeals, and adds to existing law to revise provisions regarding the rate of income taxes.

The purpose of this bill is to give the state of Idaho the flexibility to increase revenue should the uncertainty concerning state and national economic conditions require considering doing so. This bill does not repeal H40. It only puts a potential one-year pause on just the income tax portion of H40. It does not change the military or capital gains on precious metals portion of H40. The bill restores the income tax rate to the rate prior to H40 (5.695%) only for tax year 2026 and then returns to the tax rate in H40 (5.3%) for tax year 2027 and beyond. If this bill should become law and economic conditions in January 2027 are favorable, this law could be repealed retroactive to January, 2026 by the 2027 legislature and the income tax rate would remain unchanged at 5.3% for 2026 and beyond.

Amends existing law to revise provisions regarding material harmful to minors.

In 2024 the Idaho Legislature passed, H710- The Children’s and Library Protection Act. This proposed amendment responds to the Ninth Circuit’s opinion, as well as a recent decision from the U.S. Supreme Court addressing Texas’s age-verification law for pornographic websites. The proposed amendment recognizes that the State of Idaho has more latitude to select the content of educational materials in public schools and libraries than in private schools. In public schools and public libraries, the State of Idaho is exercising its own First Amendment rights through its selection of curriculum and library materials. Those choices constitute “government speech.”