The Appropriations and Budget Natural Resources Subcommittee voted to pass Senate Bill 586, a clarifying measure to the state's Quality Jobs program that allows leased or agency-provided employees to count toward an employer's Quality Jobs eligibility, the panel heard.

Representative Kahne, who presented the bill, said, "SB 5 86, is kind of a clarifying bill to our, quality jobs program. Currently, the law allows least employees to count for quality jobs if there's an employee employer relationship." He told members the change is intended to reduce delays created when the Department of Commerce must determine employer-employee relationships for leased workers.

Members asked how the change would affect benefits and whether leased workers could be independent contractors. Representative Wilk asked about benefits and whether contract employees would qualify; Kahne replied these workers still must meet all "qualifications for the quality jobs program. That's in benefits, that's in salary. All that stays exactly the same." Kahne also said the provision is expected to cover situations where employers initially use staffing agencies and later hire workers directly, describing the arrangement as akin to a probationary period.

Committee discussion clarified that the leased employee route already occurs under Commerce review and that the employer who ultimately employs the worker receives the credit under the Quality Jobs program. Kahne said, "The manufacturer gets the benefit of the employee. It's not the, no, not the agency. It'll go to the person that's actually employed the person or who they're working for, maybe is a better way to put it." He added that benefits during the leased period would typically be provided through the staffing agency and that all salary and benefit requirements must be met from day one regardless of how the employee is engaged.

The committee adopted a motion for a do-pass recommendation and the clerk recorded the vote. With six yays and four nays, the chair declared the bill passed by the subcommittee.

The bill leaves the program's salary and benefit thresholds in place and directs that leased employees count toward Quality Jobs eligibility when the employer-employee relationship requirements are met.