HB 1211 -- Unemployment Insurance

Sponsor:  St. Onge

This bill makes changes in unemployment insurance.  Those changes
include:

(1)  The state taxable wage base for calender year 2005 and
thereafter will be $10,000;

(2)  If the balance in the Unemployment Compensation Trust Fund
is less than $500 million, the wage base will increase by $1,000
for the subsequent calender year.  If the balance exceeds $800
million, the wage base will decrease by $500 for the subsequent
calender year;

(3)  In no event will the state taxable wage base decrease to
less than $7,000;

(4)  The maximum weekly benefit amount for years 2004 and 2005 is
not to exceed $250.  For years 2006 and 2007, the amount is not
to exceed $255.  For years 2008 and thereafter, the amount is not
to exceed $260;

(5)  Claimants will not be considered ineligible for benefits if
they are temporarily unemployed through no fault of their own or
if they are participating in a state-approved drug or alcohol
treatment program;

(6)  The one-week waiting period which is currently to be
compensated if the claimant is unemployed for nine consecutive
weeks is repealed;

(7)  Claimants who are dismissed for misconduct connected with
their work will have their benefit balance reduced by an amount
equal to the number of penalty weeks assessed times their weekly
benefit;

(8)  Partially unemployed workers will be paid an amount equal to
the difference between their weekly benefit and that part of
their wages in excess of $20 or 20% of their weekly benefit
amount, whichever is greater;

(9)  Severance pay is deductible from unemployment benefits;

(10)  If the balance in the Unemployment Trust Fund for the
previous four quarters is less than $700 million, the employer's
contribution will increase by 10%.  If the balance is less than
$600 million, the contribution will increase by 20%.  If the
balance is less than $500 million, the contribution will be
increased by 30%.  Not withstanding the above stated rates, for
2005 each employer's contribution rate is to increase by 40%.  An
additional .3% for 2005 is to be paid by employers;

(11)  The new temporary solvency charge is provided in the bill;

(12)  If the Unemployment Compensation Trust Fund for the
preceding four quarters is more than $900 million, the employer's
contribution rate will be reduced by 7% for the following
calender year.  If the balance exceeds $1 billion, the employer's
contribution rate will be reduced for the following year by 12%;
and

(13)  Moneys in the Unemployment Compensation Fund are not to be
diverted for purposes other than those authorized, and no other
fund will be established with employer taxes that are offset by a
reduction of unemployment contributions.

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am