FINAL BILL REPORT

HB 148

                                  C 111 L 87

BYRepresentatives R. King,  Patrick, Wang, P. King, Fisch, Dellwo and Valle; by request of Office of Financial Management

Implementing the uniform business identification system among state agencies.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

In 1977, the Master License Service was established in Washington to provide a one-stop licensing service to state businesses.  A Business Licensing Center, administered by the Department of Licensing, was created in Olympia. 

During 1986, Governor Gardner appointed a task team from among representatives of several state agencies to review the one-stop licensing process and develop a plan for expanding these services into the community. Using the Unified Business Identifier (UBI) concept, this team's goal was to provide streamlined and efficient services through one-stop business registration, consolidated business reporting, and agency-shared collection and payable procedures.

To prepare for a consolidated business reporting and collection system, the UBI task team reviewed the enforcement and collection procedures of the Department of Revenue, the Department of Labor and Industries and the Employment Security Department.  The statutory procedures were found to differ in many respects among the agencies.

SUMMARY:

The Employment Security Department, the Department of Labor and Industries and the Department of Revenue are directed to examine the feasibility of establishing unified business reporting and compliance requirements and make recommendations to the legislature by January 1, 1988.

The following changes are made in the enforcement provisions for the Employment Security Department:

(1)  The $10 penalty for employers who fail to file a timely and complete report is made a minimum penalty;

(2)  Late payment penalties are increased from 4 to 5 percent of the amount of contributions for the first month of delinquency, from 9 to 10 percent for the second month and from 19 to 20 percent for the third month, with the minimum penalty increased from $2 to $10;

(3)  The ceiling of 24 percent on interest charges for delinquent contributions is removed;

(4)  Service of a notice of assessment on a delinquent employer may be made by certified mail at the employer's last known address;

(5)  The commissioner's authority to issue a notice to withhold and deliver property is extended to include overpayment assessments and is made continuous from the date of the notice until the liability is satisfied or becomes unenforceable; and

(6)  The appeal period for employers receiving a notice of assessment is extended from 10 to 30 days.

The following changes are made in the enforcement provisions for the Department of Labor and Industries:

(1)  An action by the department against an employer who files no report or a fraudulent report may be brought at any time and is not subject to the three-year statute of limitations for other actions brought by the department;

(2)  Penalties on delinquent premiums are changed from 5, 10 and 20 percent of the amount of the premium at the end of specified time periods to 5 percent for the first month of delinquency, 10 percent for the second month and a total penalty of 20 percent for the third month; and

(3)  A contractor, when applying for contractor registration, is permitted to use a unified business identifier number in place of the registration numbers assigned by the Department of Labor and Industries, the Department of Revenue and the Employment Security Department.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    44     0

EFFECTIVE:July 1, 1987