HOUSE BILL REPORT

SB 5636

BYSenators Smitherman and Lee; by request of Employment Security Department

Revising the state/federal relationship regarding unemployment compensation benefits, recovery, and confidentiality.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE APRIL 11, 1989

BACKGROUND:

Federal law provides that aliens who are legally entitled to work in the United States are eligible for unemployment compensation benefits.  Although state law does not clearly provide this coverage, the Employment Security Department interprets the state statute to conform with federal law.

The department is authorized to collect overpayments on behalf of another state, but only if the overpayment results from a false statement or misrepresentation in a claim.  Because of this limitation on overpayment collections, the department is not able to enter into interstate collection agreements with other states.

In 1987, the period for filing an appeal of an administrative decision by the department was extended from 10 days to 30 days. The appeal period for overpayment determinations was not changed; these appeals must be filed in 10 days.

Several state or federal agencies that collect statistics have discontinued providing information to the department because the department is not authorized to keep the information confidential. The department also may not maintain the confidentiality of information supplied voluntarily, on condition that the information remain confidential.

SUMMARY:

As required by federal law, unemployment compensation benefits may be paid to aliens who are lawfully entitled to work in the United States.

The Commissioner of the Employment Security Department may collect overpayments on behalf of another state without the requirement that the overpayment resulted from a false statement or misrepresentation of a material fact in the claim.  An appeal of an overpayment determination must be made within 30 days of the mailing of the overpayment notice, rather than within 10 days.

The department may not release information provided to the department by a governmental agency if that information is held confidential by the providing agency.  The department may hold statistical information obtained for analysis or research confidential if the information was supplied voluntarily, conditioned upon maintaining confidentiality.  Persons requesting disclosure of information that is held confidential must request disclosure from the agency providing the information to the department.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Graeme Sackrison, Employment Security Department.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    These housekeeping changes are needed to conform with federal law and/or to enable the Employment Security Department to participate in interstate agreements and obtain unemployment statistical data.

House Committee - Testimony Against:      None Presented.