SENATE BILL REPORT

SB 5354

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of January 31, 2013

Title: An act relating to changing the employment security department's settlement authority.

Brief Description: Changing the employment security department's settlement authority.

Sponsors: Senators Holmquist Newbry and Conway; by request of Employment Security Department.

Brief History:

Committee Activity: Commerce & Labor: 2/04/13.

SENATE COMMITTEE ON COMMERCE & LABOR

Staff: Mac Nicholson (786-7445)

Background: The Employment Security Department (ESD) must recover unpaid unemployment insurance contributions, interest, and penalties from employers, and recover benefit overpayments from persons determined to be ineligible. ESD's authority to settle debts owed to it either in the form of unpaid contributions, interest, and penalties, or in the form of an overpayment, varies depending on the type of debt. ESD may settle debts for unpaid contributions, interest, and penalties only when collection of the total amount owed would result in the insolvency of the employer. With overpayments, ESD may settle if collection of the total amount owed would be against equity and good conscience.

Summary of Bill: ESD may settle debts for unpaid contributions, interest, and penalties if collection of the total amount owed by the employer would be against equity and good conscience.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.