SENATE BILL REPORT

                   SB 5769

              As Reported By Senate Committee On:

          Labor, Commerce & Trade, February 20, 1995

Title:  An act relating to recovery of unemployment insurance overpayments.

Brief Description:  Revising provision on recovery of unemployment insurance overpayments.

Sponsors:  Senator Deccio; by request of Employment Security Department.

Brief History:

Committee Activity:  Labor, Commerce & Trade:  2/16/95, 2/20/95 [DPS].

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Majority Report:  That Substitute Senate Bill No. 5769 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Pelz, Chair; Heavey, Vice Chair; Deccio, Franklin, Fraser, Hale, Newhouse, Palmer and Wojahn.

Staff:  Patrick Woods (786-7430)

Background:  Currently, the Employment Security Department may only assess overpayments on unemployment insurance (UI) benefits within two years of the individual's "benefit year." A "benefit year" is the 52-week period in which a worker is eligible to receive unemployment benefits.

The department has requested that this time limit be extended due to the recent state and federal benefit extensions, which allows UI benefits to be paid beyond the individual benefit year.

Summary of Substitute Bill:  The Employment Security Department may assess overpayments on UI benefits up to two years after the final payments are made to a worker, or two years after the individual benefit year, whichever is greater.

Substitute Bill Compared to Original Bill:  The department's existing authority to assess overpayments on UI benefits is reauthorized to include up to two years after the individual's benefit year.

The act applies to job separations occurring after July 1, 1995.

Appropriation:  None.

Fiscal Note:  Requested on February 10, 1995.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  The bill will address overpayments that are made to claimants participating in extended benefit programs that may continue some time past the individual's benefit year.

Testimony Against:  None.

Testified:  PRO:  Dale Ziegler, ESD; Jeff Johnson, WSLC; Clif Finch, AWB.