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SF 80: Unemployment Compensation Amendments
2005 General Session
Sponsor: Joint Labor, Health and Social Services Interim Committee

         SF 80 explicitly prohibited any employer or their agent from intentionally attempting to avoid or minimize their rate for unemployment insurance taxes, and provided civil and criminal penalties for anyone caught doing so. The bill closed some loopholes in present statutes to prevent employers from achieving a lower unemployment contribution rate by buying or selling their business.
         Under the provisions of SF 80, if an employer is found guilty of attempting to manipulate their unemployment contribution rates to a lower rate, that employer will be assigned the highest possible rate for three years, and may face felony prosecution punishable by a fine up to $50,000 and up to five years imprisonment. A person who is found guilty of the same crime who is not an employer will be subject to a civil penalty up to $50,000, and may receive the same felony prosecution.
         SF 80 also authorized the Department of Employment to withhold unemployment benefits from a recipient who owes child support.
         Proponents of SF 80 maintained that some employers take unfair advantage of loopholes in current statutes to reduce their unemployment taxes. They pointed to the Legislative Service Office estimate that closing these loopholes would lead to $750,000 more in unemployment insurance contributions each year.
         There was minimal opposition to SF 80, with only one recorded NO vote from the entire legislature. The bill passed the Senate Labor, Health and Social Services Committee unanimously, and passed the full Senate on third reading unanimously. It passed the House Labor, Health and Social Services Committee unanimously, and passed the House with one dissenting vote, from Representative Deborah Alden (R-H3, Wheatland).