HCS HB 500 & 533 -- TRANSFER OF EMPLOYER ACCOUNTS

SPONSOR:  Hunter (Smith, 118)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 12 to 0.

This substitute requires that the unemployment experience rate
transfer with a business if both employers involved in the
transfer have substantially common ownership, management, or
control of the business and the transfer was made to lower the
rating.  The rate and liabilities of both employers will be
recalculated.  The rate does not transfer with the business if
the employer acquiring the business is not an employer in the
state at the time of the acquisition.

If an employer knowingly violates, attempts to violate, or
knowingly advises another in a manner that results in a violation
of the provisions relating to the determination of an
unemployment experience rate, the employer's rate will be the
greater of the maximum rate or the employer's rate plus 2% for
the current year and the following three rate years.

Out-of-state employers will be subject to a civil penalty of up
to $5,000 that will be deposited into the Special Employment
Security Fund.  A person violating any provision relating to the
unemployment experience rating is guilty of a class A misdemeanor
for the first offense and a class D felony for any subsequent
offense.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2006, FY
2007, and FY 2008.  Estimated Income on Other State Funds of
Unknown in FY 2006, FY 2007, and FY 2008.  Expected to exceed
$100,000.

PROPONENTS:  Supporters say that the current law allows
unscrupulous employers to fix their experience rating for the
purpose of lowering their workers' compensation insurance costs.
The bill is federally mandated and if not passed this session
could cost the employers of the state $990 million in lost
Federal Unemployment Tax Act tax credits and $7 million in
grants.

Testifying for the bill were Representatives Smith (118) and
Faith; Department of Labor and Industrial Relations; Missouri
Chamber of Commerce and Industry; and Associated Industries of
Missouri.

OPPONENTS:  There was no opposition voiced to the committee.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm