HOUSE BILL REPORT

                  HB 2588

             As Reported By House Committee On:

                      Commerce & Labor

Title:  An act relating to the joint task force on unemployment insurance.

Brief Description:  Requiring the joint task force on unemployment insurance to study additional issues.

Sponsors:  Representatives King, Lisk, Veloria, Chandler, Quall, Jones, Conway and Rayburn.

Brief History:

  Reported by House Committee on:

Commerce & Labor, February 4, 1994, DPA.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass as amended.  Signed by 9 members:  Representatives Heavey, Chair; G. Cole, Vice Chair; Lisk, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Conway; Horn; King; Springer and Veloria.

Staff:  Jim Kelley (786-7166).

Background:  In 1993 the Legislature established the Joint Task Force on Unemployment Insurance in order to undertake an in-depth review of Washington's unemployment insurance program.  The task force is composed of four members of the House of Representatives, four senators, four representatives of labor and four representatives of business.  The task force report to the Legislature included recommendations about the policies and the administration of unemployment insurance in Washington State. 

The task force has requested that it be reauthorized through 1994 in order to:  undertake a more in-depth review of targeted issues; work collaboratively with the Employment Security Department in implementation of task force recommendations; and assist the department in responding to federal initiatives and economic change.

Summary of Amended Bill:  The Joint Task Force on Unemployment Insurance is reauthorized in order to:  (1) undertake more in-depth review of targeted issues concerning unemployment insurance; (2) work collaboratively with the Employment Security Department in implementation of task force recommendations, including reviewing the issue of whether employers who are exempt from the federal unemployment tax should pay a share of unemployment insurance administrative costs; and (3) assist the department in responding to federal initiatives and economic change, in particular the new claimant profile requirement which must be implemented by 1994.

The task force is scheduled to report to the Legislature by December 31, 1994.

Amended Bill Compared to Original Bill:  The amended bill adds to the study the issue of whether reimbursable employers should pay a share of unemployment insurance administrative costs.

Fiscal Note:  Available.

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

Testimony For:  In 1993 the task force included many very dedicated members who worked well together.  However, there was not enough time to effectively address all of the major issues.  One particular issue that needs more study is the question of whether reimbursable employers, such as charities, should have to pay administrative costs.

Testimony Against:  None.

Witnesses:  (In favor) Representative Dick King, prime sponsor; and Sharon Foster, Council of Youth Agencies.