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H.B. 43

             1     

UNEMPLOYMENT COMPENSATION

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Steven R. Mascaro

             6     
Senate Sponsor: Mark B. Madsen

             7      Cosponsors:
             8      Laura BlackNeil A. HansenChristine F. Watkins              9     
             10      LONG TITLE
             11      Committee Note:
             12          The Workforce Services and Community and Economic Development Interim
             13      Committee recommended this bill.
             14      General Description:
             15          This bill modifies provisions in the Employment Security Act regarding the
             16      computation of individual weekly benefits for those whose benefit year begins after
             17      July 3, 2010, and the offset of Social Security benefits against the weekly benefit
             18      amount of unemployment compensation an individual is eligible to receive under the
             19      Act.
             20      Highlighted Provisions:
             21          This bill:
             22          .    provides that Social Security benefits may not be offset against unemployment
             23      compensation weekly benefits under the Employment Security Act with respect to
             24      an individual whose benefit year begins after July 3, 2010;
             25          .    provides for the computation of weekly unemployment benefits for those whose
             26      benefit year begins after July 3, 2010; and
             27          .    makes certain technical changes.


             28      Monies Appropriated in this Bill:
             29          None
             30      Other Special Clauses:
             31          None
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          35A-4-401, as last amended by Laws of Utah 2008, Chapter 382
             35     
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 35A-4-401 is amended to read:
             38           35A-4-401. Benefits -- Weekly benefit amount -- Computation of benefits --
             39      Department to prescribe rules -- Notification of benefits -- Bonuses.
             40          (1) (a) Benefits are payable from the fund to an individual who is or becomes
             41      unemployed and eligible for benefits.
             42          (b) All benefits shall be paid through the employment offices or other agencies
             43      designated by the division in accordance with rules the department may prescribe in accordance
             44      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             45          (2) (a) (i) [An] Except as otherwise provided in Subsection (2)(a)(ii), an individual's
             46      "weekly benefit amount" is an amount equal to 1/26th, disregarding any fraction of $1, of the
             47      individual's total wages for insured work paid during that quarter of the base period in which
             48      the total wages were highest.
             49          (ii) With respect to an individual whose benefit year begins after July 3, 2010, an
             50      individual's weekly benefit amount is an amount equal to 1/26th minus $3, disregarding any
             51      fraction of $1, of the individual's total wages for insured work paid during that quarter of the
             52      base period in which the total wages were highest.
             53          (b) (i) The weekly benefit amount may not exceed [the amount determined as follows:
             54      (i) With respect to an individual whose benefit year commences on or after January 1, 2001,
             55      65% of the "insured average fiscal year weekly wage" during the preceding fiscal year, e.g.,
             56      fiscal year 2000 for individuals establishing benefit years in 2001, disregarding any fraction of
             57      $1, constitutes the maximum "weekly benefit amount" payable. (ii) With respect to an
             58      individual who files a claim for benefits on or after July 4, 2004,] 62.5% of the insured average


             59      fiscal year weekly wage during the preceding fiscal year, disregarding any fraction of $1[,
             60      constitutes the maximum weekly benefit amount payable].
             61          (ii) With respect to an individual whose benefit year begins after July 3, 2010, the
             62      weekly benefit amount may not exceed 62.5% of the insured average fiscal year weekly wage
             63      during the preceding fiscal year minus $3, disregarding any fraction of $1.
             64          (c) (i) Except as otherwise provided in [Subsection] Subsections (2)(c)(ii) and (iii), the
             65      "weekly benefit amount" of an individual who is receiving, or who is eligible to receive, based
             66      upon the individual's previous employment, a pension, which includes a governmental, Social
             67      Security, or other pension, retirement or disability retirement pay, under a plan maintained or
             68      contributed to by a base-period employer is the "weekly benefit amount" which is computed
             69      under this section less 100% of the retirement benefits, that are attributable to a week,
             70      disregarding any fraction of $1.
             71          (ii) With respect to an individual whose benefit year begins after July 1, 2004, and ends
             72      on or before July [1] 2, 2011, the "weekly benefit amount" of that individual, who is receiving
             73      or who is eligible to receive Social Security benefits based upon the individual's previous
             74      employment, is the "weekly benefit amount" which is computed under this section less 50% of
             75      the individual's Social Security benefits that are attributable to the week, but not below zero.
             76          (iii) With respect to an individual whose benefit year begins after July 3, 2010, this
             77      Subsection (2)(c) and Subsection (2)(d) do not apply to Social Security benefits an individual is
             78      receiving or is eligible to receive as they are not considered retirement benefits for purposes of
             79      those subsections.
             80          (d) (i) (A) The weekly benefit amount and the potential benefits payable to an
             81      individual who, subsequent to the commencement of the individual's benefit year, becomes or
             82      is determined to be eligible to receive retirement benefits or increased retirement benefits, shall
             83      be recomputed effective with the first calendar week during the individual's benefit year with
             84      respect to which the individual is eligible to receive retirement benefits or increased retirement
             85      benefits.
             86          (B) The new weekly benefit amount shall be determined under this Subsection (2).
             87          (ii) As recomputed the total benefits potentially payable, commencing with the
             88      effective date of the recomputation, shall be equal to the recomputed weekly benefit amount
             89      times the quotient obtained by dividing the potential benefits unpaid prior to the recomputation


             90      by the initial weekly benefit amount, disregarding fractions.
             91          (3) (a) An eligible individual who is unemployed in any week shall be paid with
             92      respect to that week a benefit in an amount equal to the individual's weekly benefit amount less
             93      that part of the individual's wage payable to the individual with respect to that week that is in
             94      excess of 30% of the individual's weekly benefit amount.
             95          (b) The resulting benefit payable shall disregard any fraction of $1.
             96          (c) For the purpose of this Subsection (3) "wages" does not include a grant paid to the
             97      individual as public assistance.
             98          (4) (a) An otherwise eligible individual is entitled during a benefit year to a total
             99      amount of benefits determined by multiplying the individual's weekly benefit amount times the
             100      individual's potential duration.
             101          (b) To determine an individual's potential duration, the individual's total wages for
             102      insured work paid during the base period is multiplied by 27%, disregarding any fraction of $1,
             103      and divided by the individual's weekly benefit amount, disregarding any fraction, but not less
             104      than 10 nor more than 26.
             105          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             106      the department may by rule prescribe:
             107          (i) that the existence of unemployment, eligibility for benefits, and the amount of
             108      benefits payable shall be determined in the case of an otherwise eligible individual who, within
             109      a week or other period of unemployment, is separated from or secures work on a regular
             110      attachment basis for that portion of the week or other period of unemployment occurring before
             111      or after separation from or securing of work; and
             112          (ii) in the case of an individual working on a regular attachment basis, eligibility for
             113      benefits and the amount of benefits payable for periods of unemployment longer than a week.
             114          (b) The rules made shall be reasonably calculated to secure general results substantially
             115      similar to those provided by this chapter with respect to weeks of unemployment.
             116          (6) The division shall, in all cases involving actual or potential disqualifying issues and
             117      prior to the payment of benefits to an eligible individual, notify the individual's most recent
             118      employer of the eligibility determination.
             119          (7) Upon written request of an individual made under rules of the department in
             120      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, all remuneration


             121      for insured work paid to the individual during the individual's period in the form of a bonus or
             122      lump-sum payment shall, for benefit purposes, be apportioned to the calendar quarters in which
             123      the remuneration was earned.




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    as of 10-21-09 4:26 PM


Office of Legislative Research and General Counsel


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