HOUSE BILL REPORT

HB 148

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

Majority Report:     Do pass.  (11)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes, 786-7117

AS PASSED HOUSE JANUARY 28, 1987

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 mandates were found to differ in many respects from agency to agency.

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 ten dollar penalty for employers who fail to file a timely and complete report is made a minimum penalty;

(2)  Late payment penalties are raised from four to five percent of the amount of contributions for the first month, from nine to ten percent for the second month, and from nineteen to twenty percent for the third month, with the minimum penalty raised from two to ten dollars;

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

(4)  Service of 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 overpayment assessments and is made continuous from the date of the notice until the liability is satisfied or becomes unenforceable;

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

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

(1)  An action by the department in a case in which an employer 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 five, ten and twenty percent of the amount of the premium after specified time periods to five percent for the first month of delinquency, ten percent for the second month and a total penalty of twenty percent for the third month.

(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.

Any part of the act found to be in conflict with federal law is declared inoperative.  If any provision is held invalid, the remainder of the act is not affected.

Fiscal Note:    Requested January 12, 1987.

Effective Date:The bill takes effect on July 1, 1987.

House Committee ‑ Testified For:     Gary Alexander, Office of Financial Management; and Barney McClure, Department of Revenue.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Providing for similar collection and enforcement procedures in Employment Security Department and Department of Labor and Industries will allow the agencies to use a shared enforcement arrangement under the Unified Business Identifier System.

House Committee - Testimony Against: None Presented.