Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Employment Security topic
No spam. Unsubscribe anytime.
House advances Employment Security Act amendments after debate over outside collections
Summary
Lawmakers approved substitute House Bill 63, which makes seven changes to Utah's Employment Security Act including clarifying sick-pay definitions, permitting private out-of-state collection agencies (with required notice of rights), and authorizing withholding of taxes from benefit checks. The bill passed after adoption of a sponsor'ed amendment and a floor amendment; vote tally was 70-1 in favor.
Representative Fred Hunsaker, sponsor of substitute House Bill 63, told the House the measure "make[s] 7 changes in the Employment Security Act," describing a bundle of technical and operational changes including aligning the sick-pay definition with federal unemployment tax rules and clarifying cafeteria-plan exemptions.
Hunsaker said the bill would also permit the Industrial Commission to hire private collectors for out-of-state accounts and add an option for claimants to have federal and state income taxes withheld from benefit checks. He framed the revisions as bringing Utah into conformity with practices in other states and addressing administrative efficiency.
Representative John L. Valentine moved a floor amendment printed on a pink sheet that would require the agency to notify affected parties of their rights before outside collection begins. "Therefore, the amendments that I propose requires the agency to give that notice before collection procedures are started," Valentine said, arguing for a clear statutory protection so claimants understand abatement, correction and appeal options.
Debate on the amendment focused on the scope and cost of allowing private collectors. Sponsors described the amendment as limited to out-of-state collections, noting the Department currently handles in-state accounts with its own staff and that some out-of-state accounts are costly to pursue without contractors. Lawmakers discussed the proposed cap on collector compensation (the text as amended contemplated up to 25 percent in some drafts) and whether that rate was reasonable to engage firms with interstate reach.
After adoption of the Valentine pink-sheet amendment and brief further discussion, the House voted to pass substitute HB63. The clerk announced the tally as 70 yes votes and 1 no vote. The bill will be transmitted to the Senate for consideration.
The House record shows sponsors and proponents emphasized administrative uniformity with other states and protections for claimants when private collection agents are used; opponents raised questions about the potential cost and the adequacy of due-process protections if collection is outsourced.
