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H.B. 8






Sponsor: David N. Cox

             6      Karen W. Morgan
             7      LaWanna Lou ShurtliffBrent H. Goodfellow
Dana C. LovePeggy Wallace              8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies the unemployment insurance benefits provision of the Employment
             12      Security Act.
             13      Highlighted Provisions:
             14          This bill:
             15          .    reduces the offset of Social Security benefits against weekly unemployment
             16      compensation from 100% to 50%; and
             17          .    provides that the reduced offset operates for a three-year period.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          35A-4-401, as last amended by Chapter 292, Laws of Utah 2000
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 35A-4-401 is amended to read:

             28           35A-4-401. Benefits -- Weekly benefit amount -- Computation of benefits --
             29      Department to prescribe rules -- Notification of benefits -- Bonuses.
             30          (1) (a) Benefits are payable from the fund to any individual who is or becomes
             31      unemployed and eligible for benefits.
             32          (b) All benefits shall be paid through the employment offices or other agencies
             33      designated by the division in accordance with the rules the department may prescribe.
             34          (2) (a) An individual's "weekly benefit amount" is an amount equal to 1/26th,
             35      disregarding any fraction of $1, of his total wages for insured work paid during that quarter of
             36      his base period in which the total wages were highest.
             37          (b) The weekly benefit amount may not exceed the amount determined as follows:
             38          (i) With respect to any individual whose benefit year commences on or after July 1,
             39      1984, but prior to January 3, 1988, 60% of the "insured average weekly wage," disregarding
             40      any fraction of $1, constitutes the maximum "weekly benefit amount" payable.
             41          (ii) With respect to any individual whose benefit year commences on or after January
             42      3, 1988, 60% of the "insured average fiscal year weekly wage" during the preceding fiscal year,
             43      e.g., fiscal year 1987 for individuals establishing benefit years in 1988, disregarding any
             44      fraction of $1, constitutes the maximum "weekly benefit amount" payable.
             45          (iii) With respect to any individual whose benefit year commences on or after January
             46      1, 2001, 65% of the "insured average fiscal year weekly wage" during the preceding fiscal year,
             47      e.g., fiscal year 2000 for individuals establishing benefit years in 2001, disregarding any
             48      fraction of $1, constitutes the maximum "weekly benefit amount" payable.
             49          (c) (i) [The] Except as otherwise provided in Subsection (2)(c)(ii), the "weekly benefit
             50      amount" of an individual who is receiving, or who is eligible to receive, based upon the
             51      individual's previous employment, a pension, which includes a governmental, social security,
             52      or other pension, retirement or disability retirement pay, under a plan maintained or contributed
             53      to by a base-period employer is the "weekly benefit amount" which is computed under this
             54      section less 100% of such retirement benefits, that are attributable to a week, disregarding any
             55      fraction of $1.
             56          (ii) With respect to an individual whose benefit year begins after July 1, 2004, and ends
             57      on or before July 1, 2007, the "weekly benefit amount" of that individual, who is receiving or
             58      who is eligible to receive Social Security benefits based upon the individual's previous

             59      employment, is the "weekly benefit amount" which is computed under this section less 50% of
             60      the individual's Social Security benefits that are attributable to the week, but not below zero.
             61          (d) (i) The weekly benefit amount and the potential benefits payable to an individual
             62      who, subsequent to the commencement of his benefit year, becomes or is determined to be
             63      eligible to receive retirement benefits or increased retirement benefits, shall be recomputed
             64      effective with the first calendar week during his benefit year with respect to which he is eligible
             65      to receive retirement benefits or increased retirement benefits. The new weekly benefit amount
             66      shall be determined under this Subsection (2).
             67          (ii) As recomputed the total benefits potentially payable, commencing with the
             68      effective date of the recomputation, shall be equal to the recomputed weekly benefit amount
             69      times the quotient obtained by dividing the potential benefits unpaid prior to the recomputation
             70      by the initial weekly benefit amount, disregarding fractions.
             71          (3) Each eligible individual who is unemployed in any week shall be paid with respect
             72      to that week a benefit in an amount equal to the claimant's weekly benefit amount less that part
             73      of the claimant's wage payable to the claimant with respect to that week that is in excess of
             74      30% of the claimant's weekly benefit amount. The resulting benefit payable shall disregard any
             75      fraction of $1. For the purpose of this Subsection (3) "wages" does not include grants, earned
             76      or otherwise, paid to the claimant as public assistance.
             77          (4) (a) Any otherwise eligible individual is entitled during any benefit year to a total
             78      amount of benefits determined by multiplying his weekly benefit amount times his potential
             79      duration.
             80          (b) To determine an individual's potential duration, his total wages for insured work
             81      paid during his base period is multiplied by 27%, disregarding any fraction of $1, and divided
             82      by his weekly benefit amount, disregarding any fraction, but not less than ten nor more than 26.
             83          (5) (a) Notwithstanding any other provision of this chapter, the department in its
             84      discretion may by rule prescribe:
             85          (i) that the existence of unemployment, eligibility for benefits, and the amount of
             86      benefits payable shall be determined in the case of any otherwise eligible claimant who, within
             87      a week or other period of unemployment, is separated from or secures work on a regular
             88      attachment basis for that portion of the week or other period of unemployment occurring before
             89      or after separation from or securing of work; and

             90          (ii) in the case of individuals working on a regular attachment basis, eligibility for
             91      benefits and the amount of benefits payable for periods of unemployment longer than a week.
             92          (b) The rules promulgated shall be reasonably calculated to secure general results
             93      substantially similar to those provided by this chapter with respect to weeks of unemployment.
             94          (6) The division shall, in all cases involving actual or potential disqualifying issues and
             95      prior to the payment of benefits to an eligible individual, notify the individual's most recent
             96      employer of the eligibility determination.
             97          (7) Upon written request of an employee made under rules of the department, all
             98      remuneration for insured work paid to an employee during his base period in the form of a
             99      bonus or lump-sum payment shall, for benefit purposes, be apportioned to the calendar quarters
             100      in which the remuneration was earned.

Legislative Review Note
    as of 10-15-03 4:03 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

Interim Committee Note
    as of 12-10-03 7:40 AM

The Workforce Services and Community and Economic Development Interim Committee
recommended this bill.

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