SS#2 SCS HS HCS HB 1268 & 1211 -- EMPLOYEES

This bill requires the Division of Employment Security on a
weekly basis to check Missouri unemployment compensation
recipients against any federal database containing state wage
information.  Effective January 1, 2007, the division is required
at least monthly to check unemployment compensation applicants
and recipients with the Department of Revenue's driver license
databases.

The bill changes the laws regarding unemployment insurance.
Those changes include:

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

(2)  For initial unemployment benefit claims filed after December
31, 2004, a worker is required to have been paid wages for
insured work in the amount of $1,200 or more; after December 31,
2005, $1,300 or more; after December 31, 2006, $1,400 or more;
after December 31, 2007, $1,500 or more in at least one calendar
quarter of the worker's base period; or in the alternative, a
worker's wages in two quarters of the base period total exceeds
one and one-half times any employer's maximum taxable wage base;

(3)  The state taxable wage base for calendar years 2005, 2006,
and 2007 will be $11,000 and $12,000 for year 2008.  Effective
January 1, 2009, the wage base will be determined by the balance
in the Unemployment Compensation Trust Fund, less any outstanding
Federal Title XII advances, credit instrument indebtedness, and
any obligations related to financial agreements.  If the balance
in the fund is less than $350 million, the state taxable wage
base will increase by $1,000.  If the balance exceeds $650
million, the wage base will decrease by $500 for the subsequent
calendar year.  The wage base will not exceed $12,000 until
calendar year 2009 at which time the wage base will be $12,500.
For calendar year 2010 and thereafter, the maximum wage base will
be $13,000, and the minimum will be $7,000;

(4)  The maximum weekly benefit amount for years 2004 and 2005
will be $250; $270 for 2006; $280 for 2007; $300 for 2008; $310
for 2009; and $320 for 2010 and each year thereafter;

(5)  The employer work search waiver will not exceed 16 weeks;

(6)  The current waiting week for unemployment benefits becoming
compensable after nine consecutive weeks of receiving benefits is
suspended.  Effective in 2008, the one week waiting period will
become compensable once the remaining balance on the claim is
equal to or less than the compensable amount of the waiting week;

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

(8)  If an employee is at work with a detectable amount of
alcohol or a controlled substance in his or her system in
violation of the employer's workplace policy, the employee will
have committed misconduct.  Employee testing, notification, loss
of wage credits, chain of evidence, and conformation testing are
specified.  Effective January 1, 2005, any employer who initiates
an alcohol and drug policy is required to allow at least 60 days
to laps between the initial notice of the policy and its
implementation;

(9)  A temporary employee of a temporary help firm will have
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;

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

(11)  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;

(12)  In determining whether the degree of absenteeism or
tardiness constitutes a pattern of misconduct, the division will
consider whether the discharge was a result of the violation of
the employer's attendance policy, provided the employee was aware
of the policy prior to the absence or tardiness upon which the
discharge is based;

(13)  Beginning 2007, an employee's partial benefit amount will
be the difference between the employee's weekly benefit amount
and the employee's wage in excess of $20 for the week or 20% of
the benefit amount, whichever is greater;

(14)  Effective January 1, 2005, the division is required to
verify certain claimant information when the claimant initially
files for benefits;

(15)  The division is required to establish an average industry
contribution rate for each industrial classification listed in
the industrial classification system established by the federal
government;

(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)  Employers having the maximum experience rating for two
consecutive years will have a surcharge of .25% added to their
contribution rate and an additional .25% will be added for up to
three additional years.  On the fourth year, an additional .5%
will be added.  The accumulated surcharge cannot exceed 1.5%;

(18)  If the balance in the Unemployment Compensation 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%.  If the balance falls below $350 million for
calendar years 2005, 2006, and 2007 and the employer is paying
the maximum contribution rate, the rate will increase by 40%.
For calendar years 2005, 2006, and 2007, an employer's
contribution rate will be increased by a temporary debt
indebtedness assessment;

(19)  If the balance in the fund is more than $600 million but
less than $750 million, the employer's contribution rate will be
decreased by 7%.  If the balance exceeds $750 million, the
employer's contribution rate will be decreased by 12%.  If the
balance in the fund exceeds $750 million and the employer's
experience rating is 6% or greater, the employer's contribution
rate will be decreased by 10%;

(20)  In addition to all other contributions due, if the fund is
utilizing the proceeds of credit instruments or advances from
financial agreements or both, each employer will be assessed a
credit instrument and financing agreement repayment surcharge.
Each employer's proportionate share will be assessed by a
specified formula.  Each employer will be notified of the amount
due by January 31 of each year, and it will be due within 30 days
of the notice;

(21)  The division is authorized to collect any debt by
interception of the debtor's federal income tax refund, as
allowed by federal law;

(22)  The Unemployment Compensation Trust Fund, if insolvent, is
required to utilize advances from the federal government.  The
procedure and requirements for repayment of moneys advanced by
the federal government, credit instruments if issued, and/or
financial agreements if entered into are specified; and

(23)  Persons participating in the Shared Work Unemployment
Compensation Program will receive no shared work benefits for pay
periods when reduced hours reflect holiday earnings already
committed to be paid by the employer.

The bill also creates the Board of Unemployment Fund Financing.
The board members will be the Governor, Lieutenant Governor,
Attorney General, Director of the Department of Labor and
Industrial Relations, and Commissioner of the Office of
Administration.  The powers, responsibilities, and limitations of
the board are specified.  The board is authorized to sell credit
instruments and/or enter into financial agreements, not exceeding
$450 million.  The board will enter into any contract or
agreement deemed necessary to effectuate cost effective financing
for the repayment of past borrowing under federal legislation.
Credit instrument and financial agreement obligations are not to
continue for more than three consecutive years and all
obligations are to be satisfied by January 15, 2008, and does not
constitute a debt of the state and will be repaid solely with
revenue provided under the provisions of the bill.

Effective July 1, 2005, any individual or employer who receives
or denies unemployment benefits by intentionally misrepresenting,
misstating, or failing to disclose material fact has committed
fraud.  Recovery of overpayment, nonpayment of benefits, and
graduated penalties are specified.

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 the amount of the fraud.  A person or entity guilty of a
subsequent violation is guilty of a class D felony.

The division is authorized to contract with consumer reporting
agencies to provide secure electronic access to information in
quarterly wage reports to the division by employing units.
Confidentiality requirements and use limitations are specified.
The reporting agency will require that the information released
to the division be used only for the verification of accuracy of
the wage or employment information.  Any person or entity who
fails to comply with the confidentiality requirements imposed
with respect to any consumer will be liable to the consumer to
the extent provided under the Federal Fair Credit Reporting Act.
Any person who obtains information from the consumer agency under
false pretenses will be punished as provided under the Federal
Fair Credit Reporting Act.

The Missouri State Unemployment Council is created by the bill.
Annually the council is to report to the Governor and the General
Assembly its recommendations on pertinent legislation, the status
and projected maintenance requirements for solvency of
unemployment insurance, and the adequacy of unemployment
compensation.  The division 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 council's composition, terms, appointment
requirements, and voting and nonvoting designations are
specified.

The bill contains an emergency clause for the sections of the
bill which aid in restoring the Unemployment Compensation Fund
solvency.  The remaining sections of the bill become effective
January 1, 2005.

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