Revision: June 6, 2009, midnight
SB 144-FN – AS AMENDED BY THE HOUSE
03/11/09 0384s
04/01/09 1088s
04/01/09 1162s
06May2009… 1429h
03Jun2009… 1730h
2009 SESSION
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
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/11/09 0384s
04/01/09 1088s
04/01/09 1162s
06May2009… 1429h
03Jun2009… 1730h
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 Benefit Eligibility. Amend RSA 282-A:32, I(a)(2)-(3) to read as follows:
(2) An individual terminates employment in good faith to accept better full-time employment, which is to begin within a reasonable period, and subsequently becomes unemployed from such employment due to unavailability of work before earning the requalifying wages set forth in this section. Notwithstanding any other provision of this chapter, such subsequent employer shall be deemed to be that individual's most recent employer; [or]
(3) [The leaving of employment was necessary to protect the individual from domestic abuse, as defined in RSA 173-B:1 and in accordance with rules adopted by the commissioner, and the individual made all reasonable efforts to preserve the employment, and in addition:
(A) The individual relocated to escape the abuse; or
(B) The individual, due to changed circumstances, is able to return to the individual's employment, but the employer is unable to return the individual to the individual's job, or to comparable work, due solely to:
(i) A reduction in work force; or
(ii) Other economic conditions, and the individual did all things that a reasonably prudent person would have done to continue the employer-employee relationship or the possibility of reemployment during the period the individual was unable to work due to the domestic abuse;] The individual reasonably believes that separation from employment is necessary to protect himself or herself or any member of his or her immediate family from domestic abuse, as defined in RSA 173-B:1. The existence of domestic abuse shall be verified by the department, through reasonable documentation, and the department shall keep such information confidential;
(4) The individual is separated from employment because he or she has become unable to perform some or all of his or her job duties due to pregnancy or to an illness or injury that is not work-related, provided that a physician has attested to the individual’s inability to perform work duties in a written notice. Nothing in this section shall relieve an employer of the duty to provide reasonable accommodation as that term is defined by state or federal law;
(5) The leaving of employment was necessary to allow the individual to accompany his or her spouse to a place from which it is impractical for the individual to commute due to a change in location of the spouse's employment; or
(6) The leaving of employment was due to the illness or disability of a member of the individual's immediate family as those terms are defined by the Secretary of the United States Department of Labor.
2 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 by reason of RSA 282-A:32, I(a)(4).
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
09-0956
Amended 06/03/09
SB 144 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, as amended by the House (Amendment #2009-1730h), increases unemployment compensation trust fund expenditures by $1,054,080, state expenditures by $38,880, local expenditures by $95,040, and county expenditures by $4,320 in FY 2010 through FY 2012 and increases unemployment compensation trust fund expenditures by $428,220, state expenditures by $14,040, local expenditures by $38,610, and county expenditures by $3,510 in FY 2013. Additionally, this bill increases unemployment trust fund revenue by $20,830,903 in FY 2010 due to federal stimulus funds. There will be no fiscal impact on county and local revenue.
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 pregnancy, a non-job related illness or injury, must leave work to relocate with their spouse, or leave employment due to disability or illness of a member the individual’s immediate family. The Department states there will be approximately 244 claimants deemed payable under this bill for FY 2010 through FY 2012 and 122 claimants in FY 2013. The Department assumes a higher number of claimants FY 2010 through FY 2012 due to the state of the economy. State, county, and municipality employers are obligated to reimburse the unemployment compensation trust fund dollar for dollar for monies paid from the trust fund. The Department estimates of the 244 claimants deemed payable under this bill during FY 2010 through FY 2012, 9 will be in a state position, 1 will be in a county position, and 22 will be in a municipal position. For FY 2013, the Department estimates of the 122 claimants, 4 will be in a state position, 1 will be in a county position, and 11 will be in a municipal position.
The average compensation per claimant was $3,510 in FY 2008 (average of $270 a week for 13 weeks). The Department estimates the average compensation per claimant for FY 2010 though FY 2012 will be $4,320 (average of $270 a week for 16 weeks) returning to an average compensation per claimant in FY 2013 of $3,510 (average of $270 a week for 13 weeks). Using the average compensation per claimant of $4,320 for FY 2010, FY 2011, and FY 2012, the Department states this bill will increase unemployment compensation trust fund expenditures by $1,054,080 (244 * $4,320), state expenditures by $38,880 (9 *$4,320), county expenditures by $4,320 (1 * $4,320), and local expenditures by $95,040 (22 * $4,320). The Department states this bill will increase state restricted revenue by $138,240.
Using the average compensation per claimant of $3,510 for FY 2013, the Department states this bill will increase unemployment compensation trust fund expenditures by $428,220 (122 * $3,510) , state expenditures by $14,040 (4 *$3,510), county expenditures by $3,510 (1 * $3,510), and local expenditures by $38,610 (11 * $3,510). The Department states this bill will increase state restricted revenue by $56,160.
The Department also states passage of this bill will allow the state to be eligible for $20,830,903 of federal stimulus funds.