Gov. Butch Otter has issued his first line-item veto of the year, on SB 1192, the Department of Labor appropriation bill. Otter sliced out a $3 million transfer from excess dedicated funds at the Industrial Commission to “industry sector grants” under the workforce development program, something he specifically sought – except that he wanted $5 million in state general funds. JFAC declined.

“The Legislature chose to take it from a reserve fund at the state Industrial Commission dedicated to the workers’ compensation program,” Otter wrote in his veto message; you can read it here. “There is no logical or policy nexus between” the two, he said. “Such a precedent is unwise and could lead to an increase in the rates that employers pay for workers’ compensation insurance. The Department of Labor will continue working to educate businesses and legislators about the importance and efficacy of industry sector grants.”

In the labor budget bill, Otter had previously objected to “legislative intent” language JFAC added to the bill requiring local offices to remain open; at his urging, the Senate sent the appropriation bill back to committee and JFAC wrote a new one with revised language suggested by Otter’s office, which still promised not to close any existing labor offices in small Idaho communities, though his budget director, Jani Revier, said they may be down-sized. Language like that in appropriation bills isn’t subject to the line-item veto; just dollar amounts are.

Also today, Otter signed two bills into law: HB 318, creating a special liquor license for a single conference center of at least 4,000 square feet in any resort city in Idaho, proposed to accommodate a center in Ketchum; and SB 1168, which permanently lowers the premium tax rate employers pay for workers compensation in Idaho. That bill passed both houses unanimously; the special liquor license bill passed the House 40-28 and the Senate 18-16.