HB 1678 -- MISSOURI STATE UNEMPLOYMENT COUNCIL

SPONSOR:  St. Onge

COMMITTEE ACTION:  Voted "do pass" by the Committee on Small
Business by a vote of 15 to 0.

This bill creates the Missouri State Unemployment Council, which
will annually report to the Governor and the General Assembly
recommendations on pertinent legislation, the status and
projected maintenance requirements for solvency of unemployment
insurance, and the adequacy of unemployment compensation.  The
Division of Employment Security will provide the council with
access to the division's records, services required, employee
testimony, and recommendations on relevant legislation and rules.
The council may, except if prohibited by a concurrent resolution
of the General Assembly, commission an outside study of the
solvency, adequacy, and staffing and operational efficiency of
the Missouri unemployment system.  The first study is authorized
to begin in Fiscal Year 2005 and a successor study every five
years thereafter.  The commission's composition, terms,
appointment requirements, and voting and nonvoting designations
are specified.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2005, FY
2006, and FY 2007.  Estimated Cost on Other State Funds of Up to
$100,000 in FY 2005, FY 2006, and FY 2007.

PROPONENTS:  Supporters say that the bill will create the
Missouri State Unemployment Council and provide an independent
review of Missouri's unemployment compensation statutes with the
hope of recommending meaningful solutions to the problems this
fund faces.  Currently, the unemployment fund is insolvent; and
there has never been a long-term solution for this problem.

Testifying for the bill were Representative St. Onge; St. Louis
Area Contractors Association; Site Improvement Association;
Associated Industries of Missouri; and National Federation of
Independent Business.

OPPONENTS:  There was no opposition voiced to the committee.

Karla Strobel, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am