SENATE BILL REPORT

SB 6307

BYSenators Saling and West

Regulating employment listing or employment information services.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 29, 1990; January 30, 1990

Majority Report:  That Substitute Senate Bill No. 6307 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Murray, Saling, Smitherman, West, Williams.

Senate Staff:Forrest Bathurst (786-7429)

                  February 6, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 30, 1990

BACKGROUND:

A growing number of consumer complaints are being received regarding advanced fee businesses that market employment information and related nonplacement services.  These businesses are not currently required to hold a valid employment agency license.  Therefore, the Department of Licensing and the Attorney General cannot hold them to the same professional standards as those businesses holding a valid employment agency license.

SUMMARY:

The definition is changed to include any business that charges a fee to provide:  employment listing services; employment information services; resumes, with lists of names or preaddressed envelopes that may be sent resumes.

An employment agency not possessing a valid license shall cease operations within 30 days of an order by the Department of Licensing or Attorney General, or immediately apply for and obtain a valid license.

If the agency continues to operate without a valid license, the Director of the Department of Licensing or the Attorney General can take legal action for treble the amount of fees paid by any person plus reasonable attorney's fees.

EFFECT OF PROPOSED SUBSTITUTE:

The language "employment information service" is changed throughout the bill to "employment referral service."

Employment agency includes any business providing a resume to an individual while providing that person with a list of names to whom the resume may be sent, or providing that person with preaddressed envelopes that can be mailed to prospective employers.

Resume is defined as a document of the applicant's employment history that is approved, received, and paid for by the applicant.

An unlicensed business falling under the provisions of this act shall cease operations on a demand of the Director of the Department of Licensing or the Attorney General or immediately apply for and obtain an employment agency license.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Clark Hager, Spokane Area Employment Agencies Association (pro); Alexandra Ockey, Administrative Assistant (pro); Cynthia Jones, Department of Licensing