SB 399

This bill makes various changes in the unemployment insurance law, which is

administered by the Department of Workforce Development. Significant changes

include all of the following:

Revisions to collections provisions

Current law provides for a number of methods that DWD may use to collect

UI-related debt, such as delinquent contributions and benefit overpayments. The

particular methods that are available depend on the type of debt that is owed. The

bill makes a number of changes to a number of these provisions regarding the

collection of UI-related debt, including all of the following:

1. The bill provides for an unrecorded lien against any person who owes DWD

a debt under the UI law. Currently, such liens are only imposed against employers.

The bill provides that such a lien is effective upon the earlier of the date on which

the amount is first due or the date on which DWD issues a determination of the

amount owed. The bill provides that any such lien is recorded when DWD issues a

warrant for the debt.

2. Current law allows DWD, in certain circumstances, to hold an individual

who is an officer, employee, member, manager, partner, or other responsible person

holding at least 20 percent of the ownership interest of a corporation, limited liability

company, or other business association personally liable for UI contributions and

certain other amounts. This bill deletes the 20 percent ownership requirement.

3. The bill allows DWD to set off any amounts against state tax refund

overpayments. Currently, DWD may only set claimants' benefit overpayments off

against state tax refund overpayments.

4. The bill allows DWD to assess a third party who fails to surrender property

that DWD attempts to collect through levy a penalty in the amount of 50 percent of

the debt owed by the debtor. The bill provides for such assessments to be deposited

in the unemployment program integrity fund. Current law instead provides that the

third party is subject to proceedings to enforce the levy and is liable to the

department for up to 25 percent of the debt.

5. Under current law, DWD may issue a warrant directed to an employee or

other agent of DWD. In the execution of such a warrant, the employee or agent has

all the powers conferred by law upon a sheriff. The bill allows DWD, when executing

such a warrant, to conduct an execution sale of property in any county of this state

and to sell the property in any manner that will bring the highest net bid or price,

including an Internet-based auction or sale.

Fiscal agents; joint and several liability

Under current law, a person receiving certain support services may be provided

the services of a fiscal agent. The fiscal agent is responsible for complying with the

person's duties as an employer under the UI law. This bill provides that a private

agency that serves as a fiscal agent or that contracts with a fiscal intermediary to