HCS HB 1075 -- UNEMPLOYMENT COMPENSATION

SPONSOR:  Fisher (125)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 11 to 0.

This substitute changes the laws regarding unemployment
compensation.  It its main provisions, the substitute:

(1)  Removes the $450 million cap on the total amount of
outstanding obligations the Board of Unemployment Fund Financing
within the Office of Administration may incur when providing
funds for the payment of unemployment benefits or maintaining an
adequate fund balance in the Unemployment Compensation Fund;

(2)  Specifies that a claimant for unemployment compensation will
be ineligible to receive benefits or waiting week credit if he or
she has an outstanding penalty that was assessed based upon a
previous overpayment of benefits;

(3)  Specifies that a claimant for unemployment compensation
benefits will be deemed to have been discharged from employment
for misconduct and will be disqualified for waiting week credit
and benefits if he or she provided false information on his or
her employment application regarding felony convictions or
training, licensure, certification, or educational job
qualifications;

(4)  Changes the requirement that employers with 250 or more
employees must file their quarterly wage report electronically by
magnetic media or the Internet to require employers with 50 or
more employees to file in an electronic manner prescribed by the
Division of Employment Security within the Department of Labor
and Industrial Relations;

(5)  Requires certain employers who submit federal 1099
miscellaneous forms to the Department of Revenue to also submit
the forms to the Department of Labor and Industrial Relations;
and

(6)  Authorizes additional options that the Division of
Employment Security within the Department of Labor and Industrial
Relations may take to collect unpaid contributions, interest, or
penalties from an employer imposed under the Unemployment
Compensation Law.  The division may serve the employer a notice
of assessment for these amounts by certified or registered mail
and may file a certificate of lien for their payment with the
recorder of deeds in the county in which the employer owns
property or has a place of business.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2010,
FY 2011, and FY 2012.  Estimated Income of Up to $166,390 in FY
2010, FY 2011, and FY 2012.

PROPONENTS:  Supporters say that removing the cap on the total
amount of outstanding obligations the board may incur is of
critical importance to Missouri employers because financing the
Unemployment Compensation Fund short fall is preferable to
borrowing from the federal government because it will result in a
lower interest rate on the borrowed money, a longer period to
repay the loan thereby taking less money from employers during
the current economic slowdown, and Missouri employers would not
be penalized by the federal government for failure to maintain an
adequate fund balance.

Testifying for the bill were Representative Fisher (125);
Missouri Chamber of Commerce and Industry; Associated Industries
of Missouri; Missouri AFL-CIO; Associated General Contractors of
Missouri; Missouri Retailers Association; Missouri Grocers'
Association; and Associated Builders and Contractors.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say the department defers
to the judgment of the Missouri State Unemployment Council.

Testifying on the bill was Department of Labor and Industrial
Relations.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:26 am