FINAL BILL REPORT

SHB 656

                                  C 171 L 87

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Cole, Patrick, Wang, Sayan, Holm and Todd; by request of Employment Security Department)

Establishing program and funding for services for the unemployed.

House Committe on Commerce & Labor

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Commerce & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

The 1985 Legislature established a temporary two-year job service program to assist in reemployment of persons drawing unemployment compensation, to provide employment assistance to the agricultural industry and to research the degree to which the Employment Security Department could contract with private agencies and organizations to provide these job placement services.  One goal of the program is to target unemployment insurance claimants for job placement early in their claim period to reduce the length of the claims and the amount of benefits paid.  The legislature requested that the department prepare a report on the program by December 1, 1987.  The program expires July 1, 1987.

The program is funded by a special 0.02 percent surtax that is collected solely from employers.  This surtax is accompanied by a temporary 0.02 percent reduction in the unemployment tax rates for employers in 19 of the 20 experience rated classes. If federal funding is increased to provide for these same job placement services, then this surtax would not be collected.

SUMMARY:

The job service program is made permanent.  The provision is deleted that directed the Employment Security Department to research and consider contracting with private employment agencies for job placement services.

The unemployment insurance contribution rate for employers in 19 of the 20 experience rated classes is permanently reduced by 0.02 percent, and a permanent 0.02 percent surtax is established.  Sums collected from this surtax are to be used for the job service program.

Six million three hundred fifty thousand dollars is appropriated from this special account for the 1988-1989 biennium.  However, if federal funding for services provided by the job program is increased, this appropriation will be reduced by the same amount that federal funding is increased, and the savings will be deposited in the Unemployment Compensation Fund.

VOTES ON FINAL PASSAGE:

      House 95   0

      Senate    49     0

EFFECTIVE:July 26, 1987