SENATE BILL REPORT

SB 6294

BYSenators Newhouse, Vognild, Lee, Smitherman, Benitz, Saling, Deccio and Warnke;by request of Employment Security Department

Establishing the special employer services account.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 20, 1988; January 29, 1988

Majority Report:  That Substitute Senate Bill No. 6294 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Lee, Chairman; Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Steve Boruchowitz (786-7429)

                  January 29, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6294 as recommended by Committee on Economic Development & Labor be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Bauer, Cantu, Deccio, Hayner, Johnson, Lee, Moore, Newhouse, Saling, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Kevin Johnson (786-7715)

                  February 9, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 5, 1988

BACKGROUND:

The Federal Immigration Reform and Control Act (IRCA) has had an impact upon three main areas of activity within the Department of Employment Security.  These areas are employment eligibility certification, agricultural labor shortages and recruitment, and collection of data to provide accurate projections of agricultural labor supply and demand.

The Department estimates that employment eligibility certification averages 9.7 minutes per worker.  Persons hired for positions recruited through Department agencies throughout the state are certified by that agency.  It is estimated that the agencies will certify 865,120 workers in program years 1987 and 1988, adding 140,085 staff hours.

Strict certification requirements and other provisions of the federal IRCA have reduced the number of workers generally available for seasonal agricultural work.  To prevent problems associated with under or over supply of such workers, the Department will need to work closely with employer and employee organizations and develop local contingency plans.

Overall state agricultural labor supply and demand have been affected by IRCA and other factors, and the department feels that if it could undertake more comprehensive efforts for the collection and analysis of labor market information some of the adverse impacts could be alleviated.

SUMMARY:

A separate special employer services account is created to fund agency costs for carrying out employee work eligibility certification, agricultural worker recruitment and supply and demand projections, and overall agricultural labor market analysis.  A 0.02 percent offset unemployment insurance tax provides funds into this new account.  No effective change in overall UI taxes.

EFFECT OF PROPOSED SUBSTITUTE:

The description of special employer services is consolidated into section 7.  A 1992 sunset provision is added to the special employer services and tax rate changes.

Appropriation:    $4,626,515 is appropriated from the special employer services account

Revenue:    yes

Fiscal Note:      available

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

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  Cliff Finch, AWB; Graeme Sakrison, Isiah Turner, ES

Senate Committee - Testified: WAYS & MEANS:  No one