HS/SB 783 - This act would make the following changes to employment law:

1. Streamlines employment security programs and services;

2. Changes the minimum amount of unemployment compensation overpayments that are required to be processed in order to prevent the administrative costs from exceeding the amount recovered; and

3. Defines "limited liability company".

4. Repeals section 288.114 (employers with ineligible employees not required to pay taxes).

More specifically, numbers 1 through 3 of the above changes are as follows:

1. STREAMLINING.

The definition of employment office includes any location designated by the state as part of the one-stop career system. Section 288.030.

Beginning on October 1, 1996, payments to an employee's cafeteria plan are not treated as wages, if it would not be treated as wages under the Federal Unemployment Tax Act (FUTA). Section 288.036.

A claimant for waiting week credit or benefits who left work voluntarily without good cause would not be disqualified, if the deputy finds that the individual left work which would have been determined not suitable, within 28 days of the first day worked. This is designed to promote flexibility in placing claimants. If the deputy finds that a claimant is not disqualified, no benefits shall be charged to the employer for wages paid prior to the date of the quit. Section 288.050.

Any employer is deemed an interested party who has experienced a job separation by a claimant during a claims series. Section 288.070.

Removes provision which exempts employers and employing units whose employees are not subject to Chapters 287 and 288, RSMo, from paying taxes under these sections. Section 288.114.

TIME LIMITS. The 15-day time limits for filing appeals and other deadlines in sections 288.100, 288.113, 288.130, 288.190 and 288.200, are changed to 30 days.

Employing units currently must keep payroll and other records for at least five years. This act decreases it to 3 years. Section 288.130.

Applications for adjustment of subsequent contribution payments, under subsection 4, may be made no later than three years after the date on which any contributions would have been required to be paid if due (current law says four years). Section 288.140.

The deadline for serving certain penalties on employers is changed from 5 years to 3 years. Section 288.160.

2. UNEMPLOYMENT COMPENSATION FUND OVERPAYMENTS. SECTIONS 288.380, 347.187, 351.488 AND 358.150.

Currently, the Division of Employment Security may elect not to process certain overpayments of five dollars or less. This bill would change the amount to 20% of the maximum state weekly benefit amount in effect at the time of discovery of the error or omission, which today would be about $25. The average cost of establishing an overpayment was $19.51 in 1992-1994. The intent of this is to prevent the administrative costs from exceeding the amount recovered.

An administratively dissolved corporation applying for reinstatement would be required to certify that all liabilities owed pursuant to Chapter 288, RSMo (Employment Security) have been paid or that a payback plan has been arranged.

Under current law, while a partner of a limited liability partnership is not liable for any debts, obligations and liabilities of the partnership, the partner is liable for the partner's own acts and those under the partner's direct supervision, and any taxes or fees administered by the Department of Revenue. This act would include liabilities owed to the Division of Employment Security.

3. "LIMITED LIABILITY COMPANY" DEFINED, SECTION 347.015.

This act also adds the definition of "limited liability company", which is defined as a legal entity that is an unincorporated organization having two or more members and organized pursuant to or subject to Chapter 347, RSMo. This act also adds to the definition of "person", in the same section, employee stock ownership trusts and any other legal entity.

Many of the provisions of this act are similar to HCS/SB 804 and SCS/HS/HB 1368.
MARGARET TOALSON

HA 1 - NOTIFICATION OF OPTION TO WITHHOLD FEDERAL INCOME TAX FROM UNEMPLOYMENT COMP. PAYMENTS (IDENTICAL TO SB 855 AND HB 1313). HA 2 - MAKES PERSONS RECEIVING WAGES IN LIEU OF NOTICE, SEVERANCE PAY, SEPARATION PAY OR DISMISSAL PAYMENTS INELIGIBLE FOR WAITING WEEK BENEFITS FOR ANY WEEK THAT SUCH PAY IS RECEIVED. HA 4 - DEFINES CORPORATION FOR THE PURPOSE OF SECTION 327.401. HA 6 - DEFINES LIMITED LIABILITY COMPANY AND MODIFIES DEFINITION OF PERSON FOR CHAPTER 347.