02/01/2006 03:15 PM House LABOR & COMMERCE

HB 242-UNEMPLOYMENT INSURANCE FUND & TAXES                                                                                    
                                                                                                                                
3:23:25 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON announced  that the first order  of business would                                                               
be  HOUSE BILL  NO.  242,  "An Act  relating  to  the deposit  of                                                               
certain  penalties  collected  under the  unemployment  insurance                                                               
program; requiring an employing unit  with a change in ownership,                                                               
management,  or control  to notify  the Department  of Labor  and                                                               
Workforce  Development of  the  ownership  change; regarding  the                                                               
unemployment  contribution   rate  of  an  employing   unit;  and                                                               
defining   'business'   for    purposes   of   statutes   setting                                                               
unemployment  contribution  rates;   establishing  the  crime  of                                                               
obtaining an  unemployment rate by  deception; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
CHAIR ANDERSON  moved that the  committee adopt CSHB  242 Version                                                               
24-LS0821\Y,  Wayne,  1/27/06 as  the  working  document.   There                                                               
being no objection, Version Y was before the committee.                                                                         
                                                                                                                                
REPRESENTATIVE CRAWFORD  explained that the CS  would change page                                                               
2,  lines  1-3, further  defining  that  a change  in  ownership,                                                               
management or control means that  it is the responsible party who                                                               
pays the unemployment insurance.                                                                                                
                                                                                                                                
PAT  SHIER,  Acting  Deputy   Director,  Division  of  Employment                                                               
Security,  Department of  Labor &  Workforce Development  (DLWD),                                                               
stated that  [Version Y] benefits  the public by  better defining                                                               
who  is being  established as  the responsible  party.   He added                                                               
that this  language has been  used in other sections  of statute,                                                               
and has been "effective for decades."                                                                                           
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  for  confirmation  that the  only                                                               
position changes that  need to be reported to  the department are                                                               
those  in management  positions  with check  signing and  payment                                                               
confirmation responsibilities.                                                                                                  
                                                                                                                                
MR. SHIER confirmed that this is correct.                                                                                       
                                                                                                                                
REPRESENTATIVE KOTT asked  if there had been  any discussion with                                                               
the Department of  Law regarding a retroactive  effective date of                                                               
January 2006.                                                                                                                   
                                                                                                                                
REPRESENTATIVE CRAWFORD replied  that he had not had  a chance to                                                               
discuss this with the department.                                                                                               
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed  out that [Sections 1,  2, and 4]                                                               
have an effective date of July  1, 2006, while [Sections 5 and 6]                                                               
have an immediate effective date.                                                                                               
                                                                                                                                
CHAIR  ANDERSON   opined  that  the  department   feels  this  is                                                               
necessary.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GUTTENBERG  moved to report CSHB  242, Version 24-                                                               
LS0821\Y,  Wayne,  1/27/06  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  242(L&C) was reported out of  the House Labor                                                               
& Commerce Standing Committee.