HB 475 -- EMPLOYEES

CO-SPONSORS:  Yates, Hunter, Schneider, Goodman, Bearden, Jetton,
Byrd, Smith (118)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 9 to 7.

This bill makes several changes to the law concerning employees.
The bill:

(1)  Requires the Division of Employment Security to cross-check
unemployment compensation recipients against the federal new hire
database monthly;

(2)  Exempts unemployment insurance claimants from the "seeking
work" requirement if they are participating in a state-approved
drug or alcohol treatment program;

(3)  Defines "misconduct" in connection with work as including
acts of wanton or willful disregard of the employer's interest,
deliberate violation of rules, disregard of standards of
behavior, excessive negligence, and a positive test on a
professionally administered chemical test for controlled
substances and alcohol in excess of .08%.  The employer must have
a written policy on drugs and alcohol;

(4)  Requires that if a deputy determines that an unemployment
insurance claimant has been discharged due to misconduct in
connection with work that the claimant be disqualified from
waiting week credit and benefits.  Current law allows deputies to
consider the seriousness of the misconduct in each case and
disqualify claimants for not less than four and not more than 16
weeks;

(5)  Requires the division to recalculate the contribution rate
of a newly acquired business on the first day of the next
calendar quarter after acquisition instead of as of the date of
acquisition; and

(6)  Prohibits the disclosure of confidential information related
to employment security.  Unlawful disclosure is a class D felony.

FISCAL NOTE:  Estimated Net Savings to Unemployment Compensation
Trust Fund of Less than $36,000,000 in FY 2004, FY 2005, and FY
2006.

PROPONENTS:  Supporters say that the bill provides more frequent
cross-checks in order to minimize wrongful payments; protects
confidentiality; defines "misconduct"; allows people in drug
treatment to receive benefits; and protects employers.

Testifying for the bill were Representatives Yates and Smith
(118); Patty Penny; Wainwright Industries; Associated Builders
and Contractors; Recycle Missouri, Inc.; Associated Industries of
Missouri; Missouri Chamber of Commerce; Missouri Retailers'
Association; and Missouri Grocers' Association.

OPPONENTS:  Those who oppose the bill say that it does not come
close to addressing the solvency issue with the fund or adjusting
the taxable wage base and that the insolvency of the fund is
forcing the state to borrow money from the federal government
that employers will have to pay back.

Testifying against the bill were United Steelworkers of America,
District 11; AFL-CIO; St. Louis Area Contractors; and Missouri
Laborers.

Mark Pioli, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am