BILL REQ. #:  Z-0488.1 

Read first time 01/18/2007.   Referred to Committee on Labor, Commerce, Research & Development.

     AN ACT Relating to reporting, penalty, and corporate officer provisions of the unemployment insurance system; amending RCW 50.12.070, 50.29.021, 50.12.220, 50.04.165, 50.04.310, 50.12.070, 50.20.070, 50.04.245, 50.24.170, and 50.04.080; adding a new section to chapter 50.12 RCW; adding new sections to chapter 50.04 RCW; adding a new section to chapter 50.24 RCW; creating new sections; prescribing penalties; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 50.12.070 and 1997 c 54 s 2 are each amended to read as follows:
     (1)(a) Each employing unit shall keep true and accurate work records, containing such information as the commissioner may prescribe. Such records shall be open to inspection and be subject to being copied by the commissioner or his or her authorized representatives at any reasonable time and as often as may be necessary. The commissioner may require from any employing unit any sworn or unsworn reports with respect to persons employed by it, which he or she deems necessary for the effective administration of this title.
     (b) An employer who contracts with another person or entity for work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a record of the unified business identifier account number for the person or entity performing the work. Failure to obtain or maintain the record is subject to RCW 39.06.010 and to a penalty determined by the commissioner, but not to exceed two hundred fifty dollars, to be collected as provided in RCW 50.24.120.
     (2)(a) Each employer shall make periodic reports at such intervals as the commissioner may by regulation prescribe, setting forth the remuneration paid for employment to workers in its employ, the full names and social security numbers of all such workers, and ((until April 1, 1978, the number of weeks for which the worker earned the "qualifying weekly wage", and beginning July 1, 1977,)) the total hours worked by each worker and such other information as the commissioner may by regulation prescribe.
     (b) If the employing unit fails or has failed to report the number of hours in a reporting period for which a worker worked, such number will be computed by the commissioner and given the same force and effect as if it had been reported by the employing unit. In computing the number of such hours worked, the total wages for the reporting period, as reported by the employing unit, shall be divided by the dollar amount of the state's minimum wage in effect for such reporting period and the quotient, disregarding any remainder, shall be credited to the worker: PROVIDED, That although the computation so made will not be subject to appeal by the employing unit, monetary entitlement may be redetermined upon request if the department is provided with credible evidence of the actual hours worked. Benefits paid using computed hours are not considered an overpayment and are not subject to collections when the correction of computed hours results in an invalid or reduced claim; however:
     (i) A contribution paying employer who fails to report the number of hours worked will have its experience rating account charged for all benefits paid that are based on hours computed under this subsection; and
     (ii) An employer who reimburses the trust fund for benefits paid to workers and fails to report the number of hours worked shall reimburse the trust fund for all benefits paid that are based on hours computed under this subsection.

Sec. 2   RCW 50.29.021 and 2006 c 13 s 6 are each amended to read as follows:
     (1) This section applies to benefits charged to the experience rating accounts of employers for claims that have an effective date on or after January 4, 2004.
     (2)(a) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department.
     (b) Benefits paid to an eligible individual shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.
     (c) When the eligible individual's separating employer is a covered contribution paying base year employer, benefits paid to the eligible individual shall be charged to the experience rating account of only the individual's separating employer if the individual qualifies for benefits under:
     (i) RCW 50.20.050(2)(b)(i), as applicable, and became unemployed after having worked and earned wages in the bona fide work; or
     (ii) RCW 50.20.050(2)(b) (v) through (x).
     (3) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:
     (a) Benefits paid to any individual later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer. However, when a benefit claim becomes invalid due to an amendment or adjustment of a report where the employer failed to report or inaccurately reported hours worked or remuneration paid, or both, all benefits paid will be charged to the experience rating account of the contribution paying employer or employers that originally filed the incomplete or inaccurate report or reports. An employer who reimburses the trust fund for benefits paid to workers and who fails to report or inaccurately reported hours worked or remuneration paid, or both, shall reimburse the trust fund for all benefits paid that are based on the originally filed incomplete or inaccurate report or reports.
     (b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:
     (i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or
     (ii) The individual files under RCW 50.06.020(2).
     (c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW 50.22.010(6) shall not be charged to the experience rating account of any contribution paying employer.
     (d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.
     (e) Individuals who qualify for benefits under RCW 50.20.050(2)(b)(iv), as applicable, shall not have their benefits charged to the experience rating account of any contribution paying employer.
     (f) With respect to claims with an effective date on or after the first Sunday following April 22, 2005, benefits paid that exceed the benefits that would have been paid if the weekly benefit amount for the claim had been determined as one percent of the total wages paid in the individual's base year shall not be charged to the experience rating account of any contribution paying employer.
     (4)(a) A contribution paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:
     (i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;
     (ii) Was discharged for misconduct or gross misconduct connected with his or her work not a result of inability to meet the minimum job requirements;
     (iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, worksite, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or
     (iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.06 RCW.
     (b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be granted.

Sec. 3   RCW 50.12.220 and 2006 c 47 s 3 are each amended to read as follows:
     (1)(((a))) If an employer fails to file ((in)) a timely ((and complete manner a)) report as required by RCW 50.12.070, or the rules adopted pursuant thereto, the employer ((shall be)) is subject to a penalty ((to be determined by the commissioner, but not to exceed two hundred fifty dollars or ten percent of the quarterly contributions for each such offense, whichever is less)) of twenty-five dollars per violation, unless the penalty is waived by the commissioner.
     (((b))) (2) An employer who files an incomplete or incorrectly formatted tax and wage report as required by RCW 50.12.070 must receive a warning letter for the first occurrence. Except as provided in subsections (3) and (4) of this section, for subsequent occurrences, the employer is subject to a penalty as follows:
     (a) When no contributions are due: For the second occurrence, the penalty is seventy-five dollars; for the third occurrence, the penalty is one hundred fifty dollars; and for the fourth occurrence and for each occurrence thereafter, the penalty is two hundred fifty dollars.
     (b) When contributions are due: For the second occurrence, the penalty is ten percent of the quarterly contributions due, but not less than seventy-five dollars and not more than two hundred fifty dollars; for the third occurrence, the penalty is ten percent of the quarterly contributions due, but not less than one hundred fifty dollars and not more than two hundred fifty dollars; and for the fourth occurrence and each occurrence thereafter, the penalty is two hundred fifty dollars.
     (3) If an employer knowingly misrepresents to the employment security department the amount of his or her payroll upon which contributions under this title are based, the employer shall be liable to the state for up to ten times the amount of the difference in contributions paid, if any, and the amount the employer should have paid and for the reasonable expenses of auditing his or her books and collecting such sums. Such liability may be enforced in the name of the department.
     (((2))) (4) If contributions are not paid on the date on which they are due and payable as prescribed by the commissioner, there shall be assessed a penalty of five percent of the amount of the contributions for the first month or part thereof of delinquency; there shall be assessed a total penalty of ten percent of the amount of the contributions for the second month or part thereof of delinquency; and there shall be assessed a total penalty of twenty percent of the amount of the contributions for the third month or part thereof of delinquency. No penalty so added shall be less than ten dollars. These penalties are in addition to the interest charges assessed under RCW 50.24.040.
     (((3))) (5) Penalties shall not accrue on contributions from an estate in the hands of a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer subsequent to the date when such receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer qualifies as such, but contributions accruing with respect to employment of persons by a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer shall become due and shall be subject to penalties in the same manner as contributions due from other employers.
     (((4))) (6) Where adequate information has been furnished to the department and the department has failed to act or has advised the employer of no liability or inability to decide the issue, penalties shall be waived by the commissioner. Penalties may also be waived for good cause if the commissioner determines that the failure to ((timely)) file timely, complete, and correctly formatted reports or pay timely contributions was not due to the employer's fault.
     (((5))) (7) Any decision to assess a penalty as provided by this section shall be made by the chief administrative officer of the tax branch or his or her designee.
     (((6))) (8) Nothing in this section shall be construed to deny an employer the right to appeal the assessment of any penalty. Such appeal shall be made in the manner provided in RCW 50.32.030.

Sec. 4   RCW 50.04.165 and 1993 c 290 s 2 are each amended to read as follows:
     Services performed by a person appointed as an officer of a corporation under RCW 23B.08.400((, other than those covered by chapter 50.44 RCW, shall not be)) are considered services in employment. ((However, a corporation may elect to cover not less than all of its corporate officers under RCW 50.24.160. If an employer does not elect to cover its corporate officers under RCW 50.24.160, the employer must notify its corporate officers in writing that they are ineligible for unemployment benefits. If the employer fails to notify any corporate officer, then that person shall not be considered to be a corporate officer for the purposes of this section.))

Sec. 5   RCW 50.04.310 and 1984 c 134 s 1 are each amended to read as follows:
     (1) An individual ((shall be deemed to be)) is "unemployed" in any week during which the individual performs no services and with respect to which no remuneration is payable to the individual, or in any week of less than full time work, if the remuneration payable to the individual with respect to such week is less than one and one-third times the individual's weekly benefit amount plus five dollars. The commissioner shall prescribe regulations applicable to unemployed individuals making such distinctions in the procedures as to such types of unemployment as the commissioner deems necessary.
     (2) An individual ((shall be deemed)) is not ((to be)) "unemployed" during any week which falls totally within a period during which the individual, pursuant to a collective bargaining agreement or individual employment contract, is employed full time in accordance with a definition of full time contained in the agreement or contract, and for which compensation for full time work is payable. This subsection may not be applied retroactively to an individual who had no guarantee of work at the start of such period and subsequently is provided additional work by the employer.
     (3) An officer of a corporation who has more than a five percent equity or debt interest in the corporation, whose claim for benefits is based on any wages with that corporation is:
     (a) Not "unemployed" in any week during the individual's term of office or ownership in the corporation;
     (b) "Unemployed" in any week upon dissolution of the corporation or if the officer permanently resigns or is permanently removed from their appointment and responsibilities with that corporation in accordance with its bylaws.

Sec. 6   RCW 50.12.070 and 1997 c 54 s 2 are each amended to read as follows:
     (1)(a) Each employing unit shall keep true and accurate work records, containing such information as the commissioner may prescribe. Such records shall be open to inspection and be subject to being copied by the commissioner or his or her authorized representatives at any reasonable time and as often as may be necessary. The commissioner may require from any employing unit any sworn or unsworn reports with respect to persons employed by it, which he or she deems necessary for the effective administration of this title.
     (b) An employer who contracts with another person or entity for work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a record of the unified business identifier account number for the person or entity performing the work. Failure to obtain or maintain the record is subject to RCW 39.06.010 and to a penalty determined by the commissioner, but not to exceed two hundred fifty dollars, to be collected as provided in RCW 50.24.120.
     (2)(a) Each employer shall register with the department and obtain an employment security account number. Registration must include the names and social security numbers of the owners, partners, members, or corporate officers of the business, as well as their mailing addresses and telephone numbers and other information the commissioner may by regulation prescribe. Any changes of the owners, partners, members, or corporate officers of the business must be reported within thirty days to the department.
     (b) Each employer shall make periodic reports at such intervals as the commissioner may by regulation prescribe, setting forth the remuneration paid for employment to workers in its employ, the names of all such workers, and until April 1, 1978, the number of weeks for which the worker earned the "qualifying weekly wage", and beginning July 1, 1977, the hours worked by each worker and such other information as the commissioner may by regulation prescribe.
     (((b))) (c) If the employing unit fails or has failed to report the number of hours in a reporting period for which a worker worked, such number will be computed by the commissioner and given the same force and effect as if it had been reported by the employing unit. In computing the number of such hours worked the total wages for the reporting period, as reported by the employing unit, shall be divided by the dollar amount of the state's minimum wage in effect for such reporting period and the quotient, disregarding any remainder, shall be credited to the worker: PROVIDED, That although the computation so made will not be subject to appeal by the employing unit, monetary entitlement may be redetermined upon request if the department is provided with credible evidence of the actual hours worked.

Sec. 7   RCW 50.20.070 and 1973 1st ex.s. c 158 s 5 are each amended to read as follows:
     ((Irrespective of any other provisions of this title)) (1) With respect to determinations delivered or mailed before January 1, 2008, an individual ((shall be)) is disqualified for benefits for any week ((with respect to which)) he or she has knowingly made a false statement or representation involving a material fact or knowingly failed to report a material fact and ((has thereby)), as a result, has obtained or attempted to obtain any benefits under the provisions of this title, and for an additional twenty-six weeks ((commencing)) beginning with the first week for which he or she completes an otherwise compensable claim for waiting period credit or benefits following the date of the delivery or mailing of the determination of disqualification under this section((: PROVIDED, That)). However, such disqualification shall not be applied after two years have elapsed from the date of the delivery or mailing of the determination of disqualification under this section((, but)).
     (2) With respect to determinations delivered or mailed on or after January 1, 2008:
     (a) An individual is disqualified for benefits for any week he or she has knowingly made a false statement or representation involving a material fact or knowingly failed to report a material fact and, as a result, has obtained or attempted to obtain any benefits under the provisions of this title;
     (b) An individual disqualified for benefits under this subsection for the first time is also disqualified for an additional twenty-six weeks beginning with the Sunday of the week in which the determination is mailed or delivered;
     (c) An individual disqualified for benefits under this subsection for the second time is also disqualified for an additional fifty-two weeks beginning with the Sunday of the week in which the determination is mailed or delivered, and is subject to an additional penalty of twenty-five percent of the amount of benefits overpaid or deemed overpaid;
     (d) An individual disqualified for benefits under this subsection a third time and any time thereafter is also disqualified for an additional one hundred four weeks beginning with Sunday of the week in which the determination is mailed or delivered, and is subject to an additional penalty of fifty percent of the amount of benefits overpaid or deemed overpaid.
     (3) All penalties collected under this section must be expended for the proper administration of this title as authorized under RCW 50.16.010 and for no other purposes.
     (4) All overpayments and penalties established by such determination of disqualification ((shall)) must be collected as otherwise provided by this title.

NEW SECTION.  Sec. 8   A new section is added to chapter 50.12 RCW to read as follows:
     (1) Third party payers as defined in section 9 of this act may not establish joint accounts under RCW 50.24.170.
     (2) A third party payer must:
     (a) Register with the department as provided in RCW 50.12.070;
     (b) Provide the department with the names, addresses, and employment security account numbers of its client companies employing Washington state employees at the time of registration and at other times when requested by the department, and provide the names and addresses of its client companies not employing Washington state employees at the time of registration and at other times when requested by the department;
     (c) Notify the department within thirty days each time it adds or terminates a client company;
     (d) Provide a power of attorney or confidential information authorization completed by the client company as required by the department for each client company, authorizing it to act on behalf of the client company for unemployment insurance purposes;
     (e) File separate quarterly wage and contribution reports with the department for each client company, using the employer account number and experience rate assigned to each client company; and
     (f) Maintain accurate payroll records for each client company and make these records available in Washington state for review or inspection upon request of the department.

NEW SECTION.  Sec. 9   A new section is added to chapter 50.04 RCW to read as follows:
     (1) Personal services performed for, or for the benefit of, a client under an agreement with a third party payer is employment for the client company. The client is considered both the employer as defined in RCW 50.04.080 and the employing unit as defined in RCW 50.04.090.
     (2) For the purposes of this section:
     (a)(i) "Third party payer" means an individual or business entity that enters into an agreement with one or more clients to provide professional employer services, human resource functions, or other payroll administration services that may or may not establish a coemployment relationship. "Professional employer services" means the service of entering into a coemployment relationship in which at least a majority of the employees providing services to a client or to a division or work unit of a client are covered employment as defined in RCW 50.04.100. A "coemployment relationship" means an ongoing relationship where the rights, duties, and obligations of an employer in an employment relationship are allocated between coemployers under a professional employer agreement and state law. "Professional employer agreement" means a written contract between a client and a professional employer organization that provides for: (A) The coemployment of covered employees; and (B) the allocation of employer rights and obligations between the client and the professional employer organization with respect to the covered employees.
     (ii) "Third party payer" includes entities defined in this subsection that use the title "professional employer organization," "PEO," "staff leasing company," "registered staff leasing company," "employee leasing company," "administrative employer," "employer representative," or any other name.
     (iii) "Third party payer" does not include temporary staffing services companies or services referral agencies as defined in RCW 50.04.245, or labor organizations.
     (b) "Client" means an individual or entity that enters into a professional employer agreement with a third party payer for professional employer services, human resource functions, or other payroll administration services.
     (3) A third party payer is not considered a successor employer under RCW 50.29.062. Each client retains its experience rate as determined by RCW 50.29.020 and 50.29.021. The experience rate of a third party payer is determined solely on its own unemployment experience with its own nonclient company employees.

Sec. 10   RCW 50.04.245 and 1995 c 120 s 1 are each amended to read as follows:
     (1) Subject to the other provisions of this title, personal services performed for, or for the benefit of, a third party pursuant to a contract with a temporary staffing services ((agency, employee leasing agency)) company, services referral agency, or other entity ((shall be deemed to be)) not defined as a third party payer in section 9 of this act, constitutes employment for the temporary staffing services ((agency, employee leasing agency)) company, services referral agency, or other entity when the agency is responsible, under contract or in fact, for the payment of wages in remuneration for the services performed.
     (2) The temporary staffing services company, services referral agency, or other such entity is considered an employer as defined in RCW 50.04.080.
     (3) For the purposes of this section:
     (a) "Temporary staffing services ((agency)) company" means an individual or entity ((that is engaged in the business of furnishing individuals to perform services on a part-time or temporary basis for a third party)) other than a third party payer as defined in section 9 of this act, that engages in: Recruiting and hiring its own employees; finding other organizations that need the services of those employees; and assigning those employees on a temporary basis to perform work at or services for a client to support or supplement the client's work forces, or to provide assistance in special work situations, such as employee absences, skill shortages, and seasonal workloads, or to perform special assignments or projects, all under the direction and supervision of the client. "Temporary staffing services" does not include permanent employee leasing or permanent employee placement services.
     (b) (("Employee leasing agency" means an individual or entity that for a fee places the employees of a client onto its payroll and leases such employees back to the client.
     (c))) "Services referral agency" means an individual or entity other than a third party payer as defined in section 9 of this act that is engaged in the business of offering the services of an individual to perform specific tasks for a third party.

NEW SECTION.  Sec. 11   A new section is added to chapter 50.04 RCW to read as follows:
     (1) A common pay agent or common paymaster is not an employer as defined in RCW 50.04.080 or an employing unit as defined in RCW 50.04.090.
     (2) For the purposes of this section:
     (a) A common pay agent is an independent third party who contracts with and represents two or more employers and who files a combined tax report for those employers.
     (b) A common paymaster is two or more employers in which one of the employers is designated to disburse wages to concurrently employed individuals of any of the related companies.

Sec. 12   RCW 50.24.170 and 1945 c 35 s 105 are each amended to read as follows:
     (1) The commissioner shall prescribe regulations for the establishment, maintenance, and dissolution of joint accounts by two or more employers, and shall, in accordance with such regulations and upon application by two or more employers to establish such account, or to merge their several individual accounts in a joint account, maintain such joint account as if it constituted a single employer's account.
     (2) Joint accounts may not be established for individuals or entities described under section 9 or 11 of this act.

NEW SECTION.  Sec. 13   A new section is added to chapter 50.24 RCW to read as follows:
     (1) Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, member, manager, or other person having control or supervision of payment of unemployment tax contributions under RCW 50.24.010 or 50.24.014, or who is responsible for the filing of reports or the payment of contributions or payments in lieu of contributions, is personally liable for any unpaid contributions and interest and penalties on those contributions if such officer or other person willfully fails to pay or to cause to be paid any contributions due to the department from the corporation or limited liability company business under this title. For purposes of this section, "willfully fails to pay or to cause to be paid" means that the failure is the result of an intentional, conscious, and voluntary course of action.
     (2) Persons liable under subsection (1) of this section are liable only for contributions that became due during the period he or she had the control, supervision, responsibility, or duty to act for the corporation or limited liability company, plus interest and penalties on those contributions.
     (3) Persons liable under subsection (1) of this section are exempt from liability if the nonpayment of contributions was beyond their control as determined by the employment security department by rule. In making this determination, the department shall consider, but not be limited to, such factors as the death, illness, or personal financial situation of the person liable under subsection (1) of this section.
     (4) Persons liable under subsection (1) of this section are exempt from liability if all of the assets of the corporation or limited liability company have been applied to its debts through bankruptcy or receivership.
     (5) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under chapter 50.32 RCW.
     (6) This section applies only when the employment security department determines that there is no reasonable means of collecting the contributions owed directly from the corporation or limited liability company.
     (7) This section does not relieve the corporation or limited liability company of other tax liabilities under this title or impair other tax collection remedies afforded by law.
     (8) Collection authority and procedures described in this chapter apply to collections under this section.

Sec. 14   RCW 50.04.080 and 1985 c 41 s 1 are each amended to read as follows:
     "Employer" means any individual or type of organization, including any partnership, association, trust, estate, joint stock company, insurance company, limited liability company, or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or the legal representative of a deceased person, having any person in employment or, having become an employer, has not ceased to be an employer as provided in this title.
     For the purposes of collection remedies available under chapter 50.24 RCW, "employer," in the case of a corporation or limited liability company, includes persons found personally liable for any unpaid contributions and interest and penalties on those contributions under section 13 of this act.

NEW SECTION.  Sec. 15   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION.  Sec. 16   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 17   Section 3 of this act applies for penalties assessed on reports and contributions due beginning October 1, 2007.

NEW SECTION.  Sec. 18   Sections 1, 2, 4 through 6, and 8 through 12 of this act take effect January 1, 2008.