6420-S AMH CL H5352.1

SSB 6420 - H COMM AMD ADOPTED

By Committee on Commerce & Labor

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  The legislature finds that the shift by the employment security department from in-person written initial applications for unemployment insurance benefits to a call center approach creates opportunities for improved service but also raises serious concerns.  Eliminating face-to-face contact may increase the potential for fraud and reduce the probability that claimants will utilize existing reemployment resources.  Therefore, it is the intent of the legislature that if the written application process is to be eliminated, the employment security department must ensure that unemployment insurance claimants remain actively involved in reemployment activities and that an independent evaluation be conducted of the call center approach to unemployment insurance.

    Sec. 2.  RCW 50.20.140 and 1951 c 215 s 4 are each amended to read as follows:

    An application for initial determination, a claim for waiting period, or a claim for benefits shall be filed in accordance with such ((regulations)) rules as the commissioner may prescribe.  An application for an initial determination may be made by any individual whether unemployed or not.  Each employer shall post and maintain printed statements of such ((regulations)) rules in places readily accessible to individuals in his or her employment and shall make available to each such individual at the time he or she becomes unemployed, a printed statement of such ((regulations)) rules and such notices, instructions, and other material as the commissioner may by ((regulation)) rule prescribe.  Such printed material shall be supplied by the commissioner to each employer without cost to ((him)) the employer.

    The term "application for initial determination" shall mean a request in writing, or by other means as determined by the commissioner, for an initial determination.  The term "claim for waiting period" shall mean a certification, after the close of a given week, that the requirements stated herein for eligibility for waiting period have been met.  The term "claim for benefits" shall mean a certification, after the close of a given week, that the requirements stated herein for eligibility for receipt of benefits have been met.

    A representative designated by the commissioner shall take the application for initial determination and for the claim for waiting period credits or for benefits.  When an application for initial determination has been made, the employment security department shall promptly make an initial determination which shall be a statement of the applicant's base year wages, his or her weekly benefit amount, his or her maximum amount of benefits potentially payable, and his or her benefit year.  Such determination shall fix the general conditions under which waiting period credit shall be granted and under which benefits shall be paid during any period of unemployment occurring within the benefit year fixed by such determination.

NEW SECTION. Sec. 3.  A new section is added to chapter 50.20 RCW to read as follows:

    The employment security department will ensure that within a reasonably short period of time after the initiation of benefits, all unemployment insurance claimants, except those with employer attachment, union referral, in commissioner approved training, or the subject of antiharassment orders, register for job search in an electronic labor exchange system that supports direct employer access for the purpose of selecting job applicants.

NEW SECTION. Sec. 4.  A new section is added to chapter 50.20 RCW to read as follows:

    To ensure that following the initial application for benefits, an individual is actively engaged in searching for work, effective July 1, 1999, the employment security department shall implement a job search monitoring program.  Except for those individuals with employer attachment or union referral, and individuals in commissioner-approved training, an individual who has received five or more weeks of benefits under this title must provide evidence of seeking work, as directed by the commissioner or commissioner's agents, for each week beyond five in which a claim is filed.  The evidence must demonstrate contacts with at least three employers per week or documented in-person job search activity at the local reemployment center.  In developing the requirements for the job search monitoring program, the commissioner or the commissioner's agents shall utilize an existing advisory committee having equal representation of employers and workers.

NEW SECTION. Sec. 5.  (1) The joint legislative audit and review committee, in consultation with members of the senate and house of representatives commerce and labor committees and the unemployment insurance advisory committee, shall conduct an evaluation of the new call center approach to unemployment insurance.  The evaluation shall review the performance of the call center system, including, but not limited to, the:  (a) Promptness of payments; (b) number and types of errors; (c) amount and types of fraud; and (d) level of overpayments and underpayments, compared with the current system.

    (2) The joint legislative audit and review committee is directed to contract with a private entity consistent with the provisions of chapter 39.29 RCW.  The committee shall consult with the unemployment insurance advisory committee in the design of the request for proposals from potential contractors and shall use the advisory committee to evaluate the responses.  The joint legislative audit and review committee shall provide a report on its findings and recommendations to the appropriate standing committee of the senate and house of representatives by September 1, 2001.

NEW SECTION. Sec. 6.  The employment security department is authorized to expend funds provided under RCW 50.24.014(1)(b) for the purposes of the evaluation provided for in section 5 of this act.

    Sec. 7.  RCW 50.24.014 and 1994 c 187 s 3 are each amended to read as follows:

    (1)(a) A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund.  Contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at a basic rate of two one-hundredths of one percent.  The amount of wages subject to tax shall be determined under RCW 50.24.010.

    (b) For the first calendar quarter of 1994 only, the basic two one-hundredths of one percent contribution payable under (a) of this subsection shall be increased by one-hundredth of one percent to a total rate of three one-hundredths of one percent.  The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes described in section 22, chapter 483, Laws of 1993, and for the purposes ((described in RCW 50.40.060)) of conducting an evaluation of the call center approach to unemployment insurance under section 5 of this act.  Any surplus from contributions payable under this subsection (b) will be deposited in the unemployment compensation trust fund.

    (2)(a) Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer.  Any deduction in violation of this section is unlawful.

    (b) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

    (3) If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct that collection of contributions under this section be terminated on the following January 1st."

    Correct the title.

EFFECT:  The amendment adds the following:

    (1) An intent statement that if a written application process for obtaining unemployment insurance benefits is eliminated, the Legislature intends the Employment Security Department to ensure that claimants remain actively involved in reemployment activities and that the call center approach be evaluated; and

    (2) Beginning July 1, 1999, the Employment Security Department must implement a job search monitoring program.  With some exceptions, individuals who have received 5 or more weeks of benefits must provide evidence of seeking work.  Evidence includes contacts with 3 employers per week or job search activity at a local reemployment center.  In developing the program, the Department must use an advisory committee having an equal number of employers and workers.

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