HCS SCS SB 495 -- UNEMPLOYMENT COMPENSATION

SPONSOR:  Griesheimer (Fisher, 125)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 7 to 2.

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 at any one time
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; and

(4)  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
at the last known address of the employer or 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 on Other State Funds of
Unknown 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 Senator Griesheimer; Missouri
Chamber of Commerce and Industry; Associated Industries of
Missouri; Missouri AFL-CIO; Associated General Contractors of
Missouri; Missouri Retailers Association; Missouri Grocers'
Association; Department of Labor and Industrial Relations;
and National Federation of Independent Business.

OPPONENTS:  There was no opposition voiced to the committee.

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