Bill Text - SB144 (2009)

Allowing the unemployment compensation trust fund to be charged for benefits paid for certain employee terminations.


Revision: Jan. 30, 2009, midnight

SB 144-FN – AS INTRODUCED

2009 SESSION

09-0956

08/09

SENATE BILL 144-FN

AN ACT allowing the unemployment compensation trust fund to be charged for benefits paid for certain employee terminations.

SPONSORS: Sen. Hassan, Dist 23; Sen. DeVries, Dist 18; Sen. Reynolds, Dist 2; Rep. Schlachman, Rock 13; Rep. R. Holden, Hills 7; Rep. Craig, Hills 9

COMMITTEE: Commerce, Labor and Consumer Protection

ANALYSIS

This bill allows the unemployment compensation trust fund to be charged for benefits paid for certain employee terminations.

This bill is a request of the department of employment security.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-0956

08/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT allowing the unemployment compensation trust fund to be charged for benefits paid for certain employee terminations.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Unemployment Compensation Trust Fund. RSA 282-A:75 is repealed and reenacted to read as follows:

282-A:75 Fund Chargeable. In assigning the charges for benefits to the account of the most recent employer under this subdivision, no benefits shall be charged to the account of an individual employer but shall be charged by the commissioner against the fund where:

I. Benefits are paid and are not chargeable against any employer's account in accordance with the provisions of RSA 282-A:42 and RSA 282-A:44-52;

II. Benefits are paid to a claimant solely through error or inadvertence of the commissioner or his or her authorized representative as provided in RSA 282-A:165;

III. Benefits are paid to an individual by reason of RSA 282-A:31, III,

IV. Benefits are paid to an individual by reason of RSA 282-A:32, I(a)(3); or

V. Benefits are paid to an individual whose separation from employment is caused by the individual’s inability to continue to perform some or all of his or her job duties due to a non-job-related illness or injury.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

09-0956

01/29/09

SB 144-FN - FISCAL NOTE

AN ACT allowing the unemployment compensation trust fund to be charged for benefits paid for certain employee terminations.

FISCAL IMPACT:

The Department of Employment Security states this bill increases unemployment compensation trust fund expenditures by $263,250, state expenditures by $7,020, local expenditures by $24,570, and county expenditures by $3,510 in FY 2010 and each year thereafter. This bill increases unemployment compensation trust fund revenue by $35,100 in FY 2010 and each year thereafter. This bill has no fiscal impact on county and local revenues.

METHODOLOGY:

The Department of Employment Security states this bill allows the unemployment compensation trust fund to be charged for benefits paid to individuals whose separation from employment is caused by the individual’s inability to continue to perform some or all of his job duties due to a non-job related illness or injury. The Department states there were approximately 10,700 separation cases in 2008, of which approximately 75 claimants will now be deemed payable under this bill. The average compensation per claimant was $3,510 in FY 2008 (average of $270 a week for 13 weeks). State, county, and municipality employers are obligated to reimburse the unemployment compensation trust fund dollar for dollar for monies paid from the trust fund. According to statistics developed by the NH Economic Labor and Market Bureau the Department anticipates of the 75 claimants now deemed payable under this bill, 2 will be in a state position, 1 will be in a county position, and 7 will be in a municipality position. Using the average compensation per claimant of $3,510 the Department states this bill will increase unemployment compensation trust fund expenditures by $263,250 (75 * $3,510), state expenditures by $7,020, county expenditures by $3,510 (1 * $3,510), and local expenditures by $24,570 (7 * $3,510). The Department states this bill will increase state restricted revenue by $35,100.

This bill does not appropriate funds or establish positions.