This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0804 - Streamlining Employment Security Programs & Services
L.R. NO. 2952-04
BILL NO. HCS SB 804
SUBJECT: Employment Security, Employees and Employers, Labor and Industrial
Relations, Labor
TYPE: Original
DATE: May 13, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Unemployment
Insurance Trust ($10,000) $0 $0
Total Estimated
Net Effect on All
Federal Funds ($10,000) $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Labor and Industrial Relations
(DOL)-Division of Employment Security (ES) stated that the only cost due to
this proposal would be less than $10,000 for reprinting of administrative
material.
Oversight assumes there will be printing cost of $10,000.
FISCAL IMPACT-State Government FY 1997 FY 1998 FY 1999
(10 Months)
UNEMPLOYMENT INSURANCE
TRUST FUND
Cost to Department of Labor-Division
of Employment Security
Printing cost ($10,000) $0 $0
Estimated Net Effect on
Unemployment Insurance Trust Fund ($10,000) $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
$0 $0 $0
DESCRIPTION
This act would make changes to employment security programs and services.
The definition of employment office includes any location designated by the
state as part of the one-stop career system. 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). 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. Any employer is
deemed an interested party who has experienced a job separation by a claimant
during a claims series.
The following are changes to various time limits: 1. The standard period of
time for filing initial appeals with the Division of Employment Security is
changed from 15 days to 30 days. 2. Currently, interest on underpayment of
the employer's rate begins to accrue after 15 days. Under this act, it is
changed to 30 days. 3. Employing units currently must keep payroll and
other records for at least five years. This act decreases it to 3 years.
The time to file appeals from ex parte determinations in subsection 3 of this
section is changed from 15 days to 30 days. 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). 4. Appeals from
an appeals tribunal's decision must be made within 30 days after the date of
notification (current law says 15 days). The appeals tribunal also has 30
days to reconsider its decision or order (currently 15 days). 5. This
changes the time limit to file an application with the Labor and Industrial
Relations Commission from 15 days to 30 days. The definition of employment
office includes any location designated by the state as part of the one-stop
career system.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Labor and Industrial Relations