To modify the reporting, penalty and corporate officer provisions of the unemployment insurance system. The bill makes several technical changes to the unemployment insurance system. See companion HB 1406.   Official Text and Analysis.

To change a number of provisions regarding the professional employee organizations and the corporate officer opt-out section.

To require ESD to report on the implementation of the PEO sections of the bill, including its impacts on the UI system, PEOs and small businesses.

To modify provisions relating to the collection of contributions, penalties or interest by the Department of Employment Security from the professional employer organization.

To clarify that officers of non-profit organizations and tribal entities cannot be exempt from unemployment insurance coverage. To do otherwise would violate federal law.

To explicitly permit professional employer organizations to file either single electronic reports containing separate and distinct information for client employers, or separate paper reports for client employers.

To make repeat violations of employer reporting requirements within a two-year period (instead of within a five-year period) subject to higher penalties.

To specify that "professional employer organizations" have the primary responsibility for payments of contributions, penalties, and interest. Authorizes the Employment Security Department to follow its usual collection procedures only if the amount of contributions assessed cannot be obtained from a bond secured for the purpose of paying such contributions. Changes references to "client employer" to "operating employer".