HS HCS HB 1268 & 1211 -- EMPLOYEES (Smith, 118)

This substitute requires the Division of Employment Security on a
weekly basis to cross-check Missouri unemployment compensation
recipients against any data base containing state wage
information which is maintained by the federal government.

The substitute also makes changes in unemployment insurance.
Those changes include:

(1)  The terms "misconduct," "temporary employee," and "temporary
help firm" are defined;

(2)  Severance pay is deductible from unemployment benefits,
except for any week a person is registered and attending any
state institution of higher education, public secondary school,
or any qualified vocational, educational, or training program;

(3)  The state taxable wage base for calender year 2005 will be
$11,000.  Thereafter, the wage base will be determined by the
balance in the Unemployment Compensation Trust Fund, less any
outstanding Federal Title XII advances, bonded indebtedness, and
any obligations related to financial agreements;

(4)  If the balance in the Unemployment Compensation Trust Fund
is less than $350 million, the wage base will increase by $1,000
for the subsequent year.  If the balance in the fund exceeds $500
million, the wage base will decrease by $500 for the subsequent
calender year;

(5)  The maximum weekly benefit amount for years 2004 and 2005 is
$250.  For years 2006 and 2007, the amount will be $260.  For
years 2008 and thereafter, the amount will be $270;

(6)  When connected with work, a positive test for the use of a
controlled substance other than required by a doctor's order or a
blood alcohol content of .08% or more will be deemed misconduct.
The employer's workplace drug and alcohol policy is subject to
certain requirements for employee notification;

(7)  Claimants will not be considered ineligible for benefits if
they are participating in a state-approved drug or alcohol
treatment program;

(8)  Suspensions of four weeks or more will be treated as
discharge;

(9)  A person who quits work because of fear for his or her
safety by reason of domestic violence qualifies for benefits.
The claimant is subject to certain qualification requirements;

(10)  A temporary employee of a temporary help firm will have
been deemed to voluntarily quit employment if the employee does
not contact the firm for reassignment prior to filing for
benefits.  A temporary employee is to be advised of this
requirement;

(11)  An offer to work is established when an employer sends a
notification by certified mail to the worker's last known
address;

(12)  If a claimant is discharged for misconduct, no benefits are
to be paid or charged against the employer for any period of
employment within the base period until the claimant has earned
wages insured under the unemployment law;

(13)  If a claimant is disqualified a second or subsequent time,
the claimant is required to earn wages at least eight times the
claimant's weekly benefit amount for each disqualification and
the additionally required wages will run consecutively;

(14)  Absenteeism or tardiness may result in discharge and
constitute misconduct;

(15)  A worker's weekly wage in excess of $40, increased from the
current $20, subtracted from the weekly benefit amount will
determine the worker's partial weekly benefit amount;

(16)  The recalculation procedure for the contribution rate for a
successor employer based upon the combined experience of all
predecessor and successor employers is specified;

(17)  If the balance in the Unemployment Compensation Trust Fund
for the four preceding quarters falls between $450 million and
$400 million, the employer's contribution rate will be increased
for the succeeding four quarters by 10%.  If the balance falls
between $400 million and $350 million, the rate will be increased
by 20%.  If the balance falls below $350 million, the rate will
increase by 30%.  Effective January 1, 2005, if the balance falls
below $350 million and the employer is paying the maximum
contribution rate of 6%, the rate will increase by 40%.
Effective January 1, 2005, an employer's total contribution rate
will equal the employer's base rate plus a temporary solvency
charge of .1% added to the percentage increases;

(18)  Effective January 1, 2006, if the balance in the
Unemployment Compensation Fund including any outstanding loans or
indebtedness is zero or less and the Governor applies for an
advance from the federal Unemployment Trust Fund, the State of
Missouri is required to pay the interest incurred as a result of
the advance;

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

(20)  The Division of Employment Security is authorized to
contract with private entities to provide employment and
reemployment services.  The contracted or subcontracting private
entities are required to exclusively employ persons lawfully
authorized to work or natural citizens to perform the services.

The substitute also creates the Missouri Commission on Employment
Security Financing.  The commission is authorized to sell bonds
and enter into financial agreements, provided that the total
indebtedness does not exceed $450 million and the agreement
avoids borrowing under federal legislation or in an amount to
refinance any previous state borrowing.  Prior to any bond
issuance and/or entering into financial agreements, the
commission must make an affirmative finding that the issuance of
bonds and/or the entering into financial agreements results in a
savings to the state and to employers.  Bonded indebtedness and
financial agreement obligations are not to continue for more than
five consecutive years.  The bonded indebtedness and financial
agreement debt does not constitute a debt of the state.  The
powers, composition, additional responsibilities, and limitations
of the commission and bonding provisions are specified.

The Missouri State Unemployment Council is created by the
substitute.  Annually the council is to report to the Governor
and the General Assembly its recommendations on pertinent
legislation, status and projected maintenance requirements for
solvency of unemployment insurance, and the adequacy of
unemployment compensation.  The Division of Employment Security
will provide the commission with access to the division's
records, services required, employee testimony, and give
consideration to recommendations on relevant legislation and
rules.  The council may, except if prohibited by concurrent
resolution by 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 certain member voting and
nonvoting designations are specified.

The substitute requires the Division of Employment Security to
send to all employing units in the state by October 1, 2004, a
summary of the changes enacted in the substitute.  Additionally,
the division is required to provide pertinent information to
enable the employing unit to comply with the resulting employer
requirements.

The substitute stipulates that the Department of Labor and
Industrial Relations may project financial data for proposed
legislation if the data is given to the sponsor of the
legislation at least 48 hours prior to making the data public.
Any employee in violation of this provision will be assessed a
$500 civil penalty.

Provisions for the confidentiality of information received by the
Division of Employment Security are specified.  Any person in
violation of the confidentiality provisions is guilty of a class
D felony.  Any person or entity perpetrating fraud or
misrepresentation under the provision of the unemployment
security chapter for which a penalty has not been specifically
provided is guilty of a class A misdemeanor and liable to the
state for a civil penalty equal to double the amount of the
fraud.  A person or entity guilty of a subsequent violation is
guilty of a class D felony.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in FY
2005, Unknown in FY 2006, and Unknown in FY 2007.  Estimated
Income on Other State Funds of Unknown in FY 2005, FY 2006, and
FY 2007.

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