Revision: Jan. 11, 2018, 9:18 a.m.
SB 566-FN - AS INTRODUCED
2018 SESSION
18-2728
08/05
SENATE BILL 566-FN
AN ACT relative to unemployment compensation for school bus drivers and monitors.
SPONSORS: Sen. Soucy, Dist 18; Sen. Reagan, Dist 17; Sen. Feltes, Dist 15; Sen. Carson, Dist 14; Sen. Cavanaugh, Dist 16; Rep. Williams, Hills. 4; Rep. O'Brien, Hills. 36; Rep. M. McCarthy, Hills. 29; Rep. DiSilvestro, Hills. 9; Rep. Morrison, Rock. 9
COMMITTEE: Commerce
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ANALYSIS
This bill makes school bus drivers and monitors eligible for employment security benefits.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2728
08/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT relative to unemployment compensation for school bus drivers and monitors.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Private Contractors; School Bus Drivers and Monitors; Employment Security. Amend RSA 282-A:31 by inserting after paragraph II-a the following new paragraph:
II-b. Notwithstanding paragraph II, a person employed by a private contractor to an educational institution as a bus driver or monitor, who is subject to an agreement which provides reasonable assurance of a return to work within 12 weeks, shall be eligible to receive benefits and shall be exempt from the requirement to look for employment under RSA 282-A:31, I(c) and (d).
2 Effective Date. This act shall take effect 60 days after its passage.
18-2728
1/8/18
SB 566-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to unemployment compensation for school bus drivers and monitors.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Other - Unemployment Trust Fund | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 | Indeterminable Increase of less than $10,000 |
METHODOLOGY:
This bill would waive the work search and work requirements for bus drivers and monitors seeking unemployment benefits who have a reasonable assurance of returning to work with their employers within 12 weeks.
The Department of Employment Security indicates RSA 282-A:31, I (d) (2) requires an individual on a temporary layoff to search for and accept temporary work unless they have reasonable assurance of returning to work within 27 days from the last day worked. For the 2016 calendar year there were a total of 2,120 school bus employees as reported to the Department. The Department has no information on how many employees are drivers and how many are monitors. A total of 1,090, or 51% of school bus employees filed for unemployment compensation benefits. The average total paid was $1,137.72 and the average duration was 6.45 weeks for an average weekly benefit of $176. The total amount of unemployment compensation benefits paid to school bus driver employees in 2016 was $1,240,114. The total unemployment contributions paid by school bus driver employers for 2016 was $1,076,553. Therefore, the unemployment trust fund paid out more in unemployment benefits for these employees than was paid into the fund in unemployment taxes by these employers.
The Department indicates the fiscal impact is indeterminable as there is no information on why some school bus drivers currently do not file for benefits, but if all 2,120 employees filed for benefits and received average benefit amount then the total amount of benefits would have been $2,411,966, an increase of $1,171,852 over what was actually paid in 2016. This also assumes the same average duration for collecting the benefits.
Regarding the potential impact on the unemployment compensation trust fund, any increase in disbursements reduces the trust fund balance. The current forecast for trust fund balance through 2019 is based on actual performance through November 2017. The Department indicates the bill could change the forecasted rate reductions to employers for the 2nd and 3rd quarters of 2019. The employer’s rate reductions are a function of the trust fund balance. The current forecast shows the trust fund maintaining a balance above $275 million but less than $300 million through 2019 during which time employers would experience a 1.0% reduction to their tax rates. However, the forecasted trust fund balance for the 1st quarter of 2019 is only slightly above $275 million ($275,210,628). Therefore, any increase in benefit payments from the trust fund could cause the trust fund to fall below $275 million for that quarter which would reduce the employer's rate reduction to 0.5% rather than 1.0%
This difference would result in an additional $9.13 million in unemployment taxes being paid by employers during these two quarters. The Department cautions the trust fund forecast is fluid and is updated each month. The forecasted balance is so close to the trigger threshold of $275 million in the 1st quarter of 2019 and it continues to hover just above or just below critical threshold with each updated forecast. The Department indicates there would be no impact on State expenditures because the State is not a taxpaying entity. Only 48 of the 565 political subdivisions are taxpaying entities and the Department estimates any impact on county or local expenditures would be less than $10,000.
AGENCIES CONTACTED:
Department of Employment Security