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S.B. 5 Enrolled
Karen Hale
LONG TITLE
General Description:
This bill modifies the benefits and eligibility provisions of the Employment Security Act
and a related provision of the Utah Exemptions Act.
Highlighted Provisions:
This bill:
. modifies the filing penalty for failure to provide timely quarterly wage information;
. provides a filing penalty for failure to make timely reimbursable employment and
wage reports;
. removes an archaic provision regarding reimbursable employers paying premiums or
expenditures in advance;
. makes a technical change to the definition of employer;
. modifies the fraud penalty and overpayment calculation provisions;
. provides, consistent with federal law, that unemployment benefits may not have
creditor's claims deducted from them; and
. makes certain technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill takes effect on July 1, 2004.
Utah Code Sections Affected:
AMENDS:
35A-4-305, as last amended by Chapter 135, Laws of Utah 2003
35A-4-309, as last amended by Chapter 144, Laws of Utah 2001
35A-4-310, as renumbered and amended by Chapter 240, Laws of Utah 1996
35A-4-405, as last amended by Chapter 144, Laws of Utah 2001
78-23-10, as last amended by Chapter 9, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 35A-4-305 is amended to read:
35A-4-305. Collection of contributions -- Unpaid contributions to bear interest.
(1) (a) Contributions unpaid on the date on which they are due and payable, as prescribed
by the division, shall bear interest at the rate of 1% per month from and after that date until
payment plus accrued interest is received by the division.
(b) (i) Contribution reports not made and filed by the date on which they are due as
prescribed by the division [
same manner as contributions due under this section equal to 5% of the contribution due if the
failure to file on time was not more than 15 days, with an additional 5% for each additional 15
days or fraction thereof during which the failure continued, but not to exceed 25% in the
aggregate and not less than $25 with respect to each reporting period.
(ii) If a report is filed after the required time and it is shown to the satisfaction of the
division or its authorized representative that the failure to file was due to a reasonable cause and
not to willful neglect, no addition shall be made to the contribution.
(c) (i) If contributions are unpaid after ten days from the date of the mailing or personal
delivery by the division or its authorized representative, of a written demand for payment, there
shall attach to the contribution, to be assessed and collected in the same manner as contributions
due under this section, a penalty equal to 5% of the contribution due.
(ii) A penalty may not attach if within ten days after the mailing or personal delivery,
arrangements for payment have been made with the division, or its authorized representative, and
payment is made in accordance with those arrangements.
(d) The division shall assess as a penalty a service charge, in addition to any other
penalties that may apply, in an amount not to exceed the service charge imposed by Section
7-15-1 for dishonored instruments if:
(i) any amount due the division for contributions, interest, other penalties or benefit
overpayments is paid by check, draft, order, or other instrument; and
(ii) the instrument is dishonored or not paid by the institution against which it is drawn.
(e) Except for benefit overpayments under Subsection 35A-4-405 (5), benefit
overpayments, contributions, interest, penalties, and assessed costs, uncollected three years after
they become due, may be charged as uncollectable and removed from the records of the division
if:
(i) no assets belonging to the liable person and subject to attachment can be found; and
(ii) in the opinion of the division there is no likelihood of collection at a future date.
(f) Interest and penalties collected in accordance with this section shall be paid into the
Special Administrative Expense Fund.
(g) Action required for the collection of sums due under this chapter is subject to the
applicable limitations of actions under Title 78, Chapter 12, Limitation of Actions.
(2) (a) If an employer fails to file a report when prescribed by the division for the purpose
of determining the amount of the employer's contribution due under this chapter, or if the report
when filed is incorrect or insufficient or is not satisfactory to the division, the division may
determine the amount of wages paid for employment during the period or periods with respect to
which the reports were or should have been made and the amount of contribution due from the
employer on the basis of any information it may be able to obtain.
(b) The division shall give written notice of the determination to the employer.
(c) The determination is considered correct unless:
(i) the employer, within ten days after mailing or personal delivery of notice of the
determination, applies to the division for a review of the determination as provided in Section
35A-4-508 ; or
(ii) unless the division or its authorized representative of its own motion reviews the
determination.
(d) The amount of contribution so determined shall be subject to penalties and interest as
provided in Subsection (1).
(3) (a) If, after due notice, an employer defaults in the payment of contributions, interest,
or penalties on the contributions, or a claimant defaults in a repayment of benefit overpayments
and penalties on the overpayments, the amount due shall be collectible by civil action in the name
of the division, and the employer adjudged in default shall pay the costs of the action.
(b) Civil actions brought under this section to collect contributions, interest or penalties
from an employer, or benefit overpayments and penalties from a claimant shall be:
(i) heard by the court at the earliest possible date; and
(ii) entitled to preference upon the calendar of the court over all other civil actions
except:
(A) petitions for judicial review under this chapter; and
(B) cases arising under the workers' compensation law of this state.
(c) (i) (A) To collect contributions, interest or penalties, or benefit overpayments and
penalties due from employers or claimants located outside Utah, the division may employ private
collectors providing debt collection services outside Utah.
(B) Accounts may be placed with private collectors only after the employer or claimant
has been given a final notice that the division intends to place the account with a private collector
for further collection action.
(C) The notice shall advise the employer or claimant of the employer's or claimant's rights
under this chapter and the applicable rules of the department.
(ii) (A) A private collector may receive as compensation up to 25% of the lesser of the
amount collected or the amount due, plus the costs and fees of any civil action or postjudgment
remedy instituted by the private collector with the approval of the division.
(B) The employer or claimant shall be liable to pay the compensation of the collector,
costs, and fees in addition to the original amount due.
(iii) A private collector is subject to the federal Fair Debt Collection Practices Act, 15
U.S.C. Sec. 1692 et seq.
(iv) (A) A civil action may not be maintained by any private collector without specific
prior written approval of the division.
(B) When division approval is given for civil action against an employer or claimant, the
division may cooperate with the private collector to the extent necessary to effect the civil action.
(d) (i) Notwithstanding Section 35A-4-312 , the division may disclose the contribution,
interest, penalties or benefit overpayments and penalties, costs due, the name of the employer or
claimant, and the employer's or claimant's address and telephone number when any collection
matter is referred to a private collector under Subsection (3)(c).
(ii) A private collector is subject to the confidentiality requirements and penalty
provisions provided in Section 35A-4-312 and Subsection 76-8-1301 (4), except to the extent
disclosure is necessary in any civil action to enforce collection of the amounts due.
(e) An action taken by the division under this section may not be construed to be an
election to forego other collection procedures by the division.
(4) (a) In the event of a distribution of an employer's assets under an order of a court
under the laws of Utah, including a receivership, assignment for benefits of creditors, adjudicated
insolvency, composition, or similar proceedings, contributions then or thereafter due shall be paid
in full prior to all other claims except taxes and claims for wages of not more than $400 to each
claimant, earned within five months of the commencement of the proceeding.
(b) If an employer commences a proceeding in the Federal Bankruptcy Court under a
chapter of the Bankruptcy Reform Act of 1978, 11 U.S.C. 101 et seq., as amended, contributions,
interest, and penalties then or thereafter due shall be entitled to the priority provided for taxes,
interest, and penalties in the Bankruptcy Reform Act of 1978.
(5) (a) In addition and as an alternative to any other remedy provided by this chapter and
provided that no appeal or other proceeding for review provided by this chapter is then pending
and the time for taking it has expired, the division may issue a warrant in duplicate, under its
official seal, directed to the sheriff of any county of the state, commanding the sheriff to levy upon
and sell the real and personal property of a delinquent employer or claimant found within the
sheriff's county for the payment of the contributions due thereon, with the added penalties,
interest, or benefit overpayment and penalties, and costs, and to return the warrant to the division
and pay into the fund the money collected by virtue of the warrant by a time to be specified in the
warrant, not more than 60 days from the date of the warrant.
(b) (i) Immediately upon receipt of the warrant in duplicate, the sheriff shall file the
duplicate with the clerk of the district court in the sheriff's county.
(ii) The clerk shall enter in the judgment docket, in the column for judgment debtors, the
name of the delinquent employer or claimant mentioned in the warrant, and in appropriate
columns the amount of the contribution, penalties, interest, or benefit overpayment and penalties,
and costs, for which the warrant is issued and the date when the duplicate is filed.
(c) The amount of the docketed warrant shall:
(i) have the force and effect of an execution against all personal property of the delinquent
employer; and
(ii) become a lien upon the real property of the delinquent employer or claimant in the
same manner and to the same extent as a judgment duly rendered by a district court and docketed
in the office of the clerk.
(d) After docketing, the sheriff shall:
(i) proceed in the same manner as is prescribed by law with respect to execution issued
against property upon judgments of a court of record; and
(ii) be entitled to the same fees for the sheriff's services in executing the warrant, to be
collected in the same manner.
(6) (a) Contributions imposed by this chapter are a lien upon the property of an employer
liable for the contribution required to be collected under this section who shall sell out the
employer's business or stock of goods or shall quit business, if the employer fails to make a final
report and payment on the date subsequent to the date of selling or quitting business on which
they are due and payable as prescribed by rule.
(b) (i) An employer's successor, successors, or assigns, if any, are required to withhold
sufficient of the purchase money to cover the amount of the contributions and interest or penalties
due and payable until the former owner produces a receipt from the division showing that they
have been paid or a certificate stating that no amount is due.
(ii) If the purchaser of a business or stock of goods fails to withhold sufficient purchase
money, the purchaser [
contributions required to be paid by the former owner, interest and penalties accrued and unpaid
by the former owner, owners, or assignors.
(7) (a) If an employer is delinquent in the payment of a contribution, the division may give
notice of the amount of the delinquency by registered mail to all persons having in their
possession or under their control, any credits or other personal property belonging to the
employer, or owing any debts to the employer at the time of the receipt by them of the notice.
(b) A person notified under Subsection (7)(a) shall neither transfer nor make any other
disposition of the credits, other personal property, or debts until:
(i) the division has consented to a transfer or disposition; or
(ii) 20 days after the receipt of the notice.
(c) All persons notified under Subsection (7)(a) shall, within five days after receipt of the
notice, advise the division of credits, other personal property, or other debts in their possession,
under their control or owing by them, as the case may be.
(8) (a) (i) Each employer shall furnish the division necessary information for the proper
administration of this chapter and shall include wage information for each employee, for each
calendar quarter.
(ii) The information shall be furnished at a time, in the form, and to those individuals as
the department may by rule require.
(b) (i) Each employer shall furnish each individual worker who is separated that
information as the department may by rule require, and shall furnish within 48 hours of the receipt
of a request from the division a report of the earnings of any individual during the individual's
base-period.
(ii) The report shall be on a form prescribed by the division and contain all information
prescribed by the division.
(c) (i) For each failure by an employer to conform to this Subsection (8) the division shall,
unless good cause is shown [
if the filing was not more than 15 days late.
(ii) If the filing is more than 15 days late, the division shall assess an additional penalty of
$50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250 per
filing.
(iii) The penalty is to be collected in the same manner as contributions due under this
chapter.
(d) The division shall prescribe rules providing standards for determining which
contribution reports must be filed on magnetic media or in other machine-readable form. In
prescribing these rules, the division:
(i) [
unless that employer is required to file wage data on at least 250 employees during any calender
quarter;
(ii) shall take into account, among other relevant factors, the ability of the employer to
comply at reasonable cost with the requirements of the rules; and
(iii) may require an employer to post a bond for failure to comply with the rules required
by this Subsection (8)(d).
(9) (a) (i) An employer liable for payments in lieu of contributions shall file Reimbursable
Employment and Wage Reports.
(ii) The reports are due on the last day of the month that follows the end of each calendar
quarter unless the division, after giving notice, changes the due date.
(iii) A report postmarked on or before the due date is considered timely.
(b) (i) Unless the employer can show good cause, the division shall assess a $50 penalty
against an employer who does not file Reimbursable Employment and Wage Reports within the
time limits set out in Subsection (9)(a) if the filing was not more than 15 days late.
(ii) If the filing is more than 15 days late, the division shall assess an additional penalty of
$50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250 per
filing.
(iii) The division shall assess and collect the penalties referred to in this Subsection (9)(b)
in the same manner as prescribed in Sections 35A-4-309 and 35A-4-311 .
[
chapter neglects or refuses to pay it after demand, the amount, including any interest, additional
amount, addition to contributions, or assessable penalty, together with any additional accruable
costs, shall be a lien in favor of the division upon all property and rights to property, whether real
or personal belonging to the person.
[
assessment, as defined in the department rules, is made and continues until the liability for the
amount assessed, or a judgment against the taxpayer arising out of the liability, is satisfied.
(b) The lien imposed by Subsection [
of a security interest, mechanics' lien holder, or judgment lien creditor until a warrant which meets
the requirements of Subsection (5) has been filed with the clerk of the district court. For the
purposes of this Subsection [
(i) "Judgment lien creditor" means a person who obtains a valid judgment of a court of
record for recovery of specific property or a sum certain of money, and who in the case of a
recovery of money, has a perfected lien under the judgment on the property involved. A
judgment lien does not include inchoate liens such as attachment or garnishment liens until they
ripen into a judgment. A judgment lien does not include the determination or assessment of a
quasi-judicial authority, such as a state or federal taxing authority.
(ii) "Mechanics' lien holder" means any person who has a lien on real property, or on the
proceeds of a contract relating to real property, for services, labor, or materials furnished in
connection with the construction or improvement of the property. A person has a lien on the
earliest date the lien becomes valid against subsequent purchasers without actual notice, but not
before the person begins to furnish the services, labor, or materials.
(iii) "Person" means:
(A) an individual;
(B) a trust;
(C) an estate;
(D) a partnership;
(E) an association;
(F) a company;
(G) a limited liability company;
(H) a limited liability partnership; or
(I) a corporation.
(iv) "Purchaser" means a person who, for adequate and full consideration in money or
money's worth, acquires an interest, other than a lien or security interest, in property which is
valid under state law against subsequent purchasers without actual notice.
(v) "Security interest" means any interest in property acquired by contract for the purpose
of securing payment or performance of an obligation or indemnifying against loss or liability. A
security interest exists at any time:
(A) the property is in existence and the interest has become protected under the law
against a subsequent judgment lien arising out of an unsecured obligation; and
(B) to the extent that, at that time, the holder has parted with money or money's worth.
Section 2. Section 35A-4-309 is amended to read:
35A-4-309. Nonprofit organizations -- Contributions -- Payments in lieu of
contributions.
(1) Notwithstanding any other provisions of this chapter for payments by employers,
benefits paid to employees of nonprofit organizations, as described in Section 501(c)(3) of the
Internal Revenue Code, 26 U.S.C. 501(c)(3), that [
501(a), shall be financed in accordance with the following provisions:
(a) Any nonprofit organization which is, or becomes, subject to this chapter [
elects in accordance with this Subsection (1) to pay to the division for the unemployment fund an
amount equal to the amount of regular benefits and of 1/2 of the extended benefits paid that is
attributable to service in the employ of [
of unemployment that begin during the effective period of this election.
(b) (i) Any nonprofit organization that is, or becomes, subject to this chapter [
not less than one contribution year beginning with the date on which the organization becomes
subject to this chapter.
(ii) The nonprofit organization shall file a written notice of its election with the division
not later than 30 days immediately following the date that the division gives notice to the
organization that it is subject to this chapter.
(c) Any nonprofit organization that makes an election in accordance with Subsection
(1)(b)(i) shall continue to be liable for payments in lieu of contributions until it files with the
division a written notice terminating its election, not later than 30 days prior to the beginning of
the contribution year for which this termination shall first be effective.
(d) (i) Any nonprofit organization that has been paying contributions under this chapter
for a period subsequent to January 1, 1972, may change to a reimbursable basis by filing with the
division, no later than 30 days prior to the beginning of any contribution year, a written notice of
election to become liable for payments in lieu of contributions.
(ii) This election is not terminable by the organization for that year or the next year.
(e) The division may, for good cause, extend the period within which a notice of election
or a notice of termination must be filed and may permit an election to be retroactive [
(f) (i) The division, in accordance with department rules, shall notify each nonprofit
organization of any determination that the division may make of the organization's status as an
employer, of the effective date of any election that it makes, and of any termination of this
election.
(ii) These determinations shall be subject to reconsideration, appeal, and review in
accordance with [
(2) Payments in lieu of contributions shall be made in accordance with [
this Subsection (2).
(a) At the end of each calendar month, or at the end of any other period as determined by
the division, the division shall bill each nonprofit organization or group of [
organizations that has elected to make payments in lieu of contributions for an amount equal to
the full amount of regular benefits plus 1/2 of the amount of extended benefits paid during this
month or other prescribed period that is attributable to service in the employ of the organization.
[
[
[
[
[
[
[
no later than 30 days after the bill was mailed to the last-known address of the nonprofit
organization or was otherwise delivered to it, unless there has been an application for review and
redetermination in accordance with Subsection (2)[
[
Subsection (2) [
remuneration of individuals in the employ of the organization.
[
the organization unless, not later than 15 days after the bill was mailed to its last-known address
or otherwise delivered to it, the organization files an application for redetermination by the
division or an appeal to the Workforce Appeals Board, setting forth the grounds for the
application or appeal.
(ii) The division shall promptly review and reconsider the amount due specified in the bill
and shall thereafter issue a redetermination in any case in which the application for
redetermination has been filed.
(iii) Any redetermination shall be conclusive on the organization unless, no later than 15
days after the redetermination was mailed to its last known address or otherwise delivered to it,
the organization files an appeal to a Workforce Appeals Board in accordance with Section
35A-4-508 and Chapter 1, Part 3, Adjudicative Proceedings, setting forth the grounds for the
appeal.
(iv) Proceedings on appeal to the Workforce Appeals Board from the amount of a bill
rendered under Subsection (2) or a redetermination of the amount shall be in accordance with
Section 35A-4-508 .
[
same interest and penalties that, under Subsection 35A-4-305 (1), attach to past due contributions.
(3) If any nonprofit organization is delinquent in making payments in lieu of contributions
as required under Subsection (2), the division may terminate the organization's election to make
payment in lieu of contributions as of the beginning of the next contribution year, and [
termination [
(4) (a) In the discretion of the division, any nonprofit organization that elects to become
liable for payments in lieu of contributions shall be required, within 30 days after the effective date
of its election, to deposit money with the division.
(b) The amount of the deposit shall be determined in accordance with [
this Subsection (4).
[
1% of the organization's total wages paid for employment as defined in Section 35A-4-204 for the
four calendar quarters immediately preceding the effective date of the election, or the biennial
anniversary of the effective date of election, whichever date shall be most recent and applicable.
(ii) If the nonprofit organization did not pay wages in each of these four calendar
quarters, the amount of the deposit [
[
by the division in an escrow account until liability under the election is terminated, at which time
it shall be returned to the organization, less any deductions as provided in this Subsection (4).
(ii) The division may deduct from the money deposited under this Subsection (4) by a
nonprofit organization to the extent necessary to satisfy any due and unpaid payments in lieu of
contributions and any applicable interest and penalties provided for in Subsection (2)[
(iii) The division shall require the organization within 30 days following any deduction
from a money deposit under [
money to make whole the organization's deposit at the prior level.
(iv) (A) The division may, at any time, review the adequacy of the deposit made by any
organization.
(B) If, as a result of this review, the division determines that an adjustment is necessary, it
shall require the organization to make additional deposit within 30 days of written notice of the
division's determination or shall return to it any portion of the deposit the division no longer
considers necessary, as considered appropriate.
[
whole the amount of a previously made deposit, as provided under this Subsection (4), the
division may terminate the organization's election to make payments in lieu of contributions.
[
four-consecutive-calendar-quarter period beginning with the quarter in which the termination
becomes effective.
(ii) The division may extend for good cause the applicable filing, deposit, or adjustment
period by not more than 60 days.
(5) (a) Each employer liable for payments in lieu of contributions shall pay to the division
for the fund the amount of regular benefits plus the amount of 1/2 of extended benefits paid that
are attributable to service in the employ of the employer.
(b) If benefits paid to an individual are based on wages paid by more than one employer
and one or more of these employers are liable for payments in lieu of contributions, the amount
payable to the fund by each employer liable for the payments shall be determined in accordance
with [
[
employers who are liable for payments in lieu of contributions and on wages paid by one or more
employers who are liable for contributions, the amount of benefits payable by each employer that
is liable for payments in lieu of contributions shall be an amount that bears the same ratio to the
total benefits paid to the individual as the total base-period wages paid to the individual by [
that employer bear to the total base-period wages paid to the individual by all of the individual's
base-period employers.
[
employers who are liable for payments in lieu of contributions, the amount of benefits payable by
each [
total benefits paid to the individual as the total base-period wages paid to the individual by the
employer bear to the total base-period wages paid to the individual by all of the individual's
base-period employers.
(6) (a) (i) Two or more employers who have become liable for payments in lieu of
contributions, in accordance with [
35A-4-204 (2)(d), may file a joint application to the division for the establishment of a group
account for the purpose of sharing the cost of benefits paid that are attributable to service in the
employ of these employers.
(ii) Each application shall identify and authorize a group representative to act as the
group's agent for the purpose of this Subsection (6).
(b) (i) Upon approval of the application, the division shall establish a group account for
these employers effective as of the beginning of the calendar quarter in which it receives the
application and shall notify the group's representative of the effective date of the account.
(ii) This account shall remain in effect for not less than two contribution years and
thereafter until terminated at the discretion of the division or upon application by the group.
(c) Upon establishment of the account, each member of the group [
payments in lieu of contributions with respect to each calendar quarter in the amount that bears
the same ratio to the total benefits paid in such quarter attributable to service performed in the
employ of all members of the group as the total wages paid for service in employment by such
member in such quarter bear to the total wages paid during such quarter for service performed in
the employ of all members of the group.
(d) The department shall prescribe rules, with respect to applications for establishment,
maintenance, and termination of group accounts authorized by this Subsection (6), for addition of
new members to, and withdrawal of active members from, these accounts, for the determination
of the amounts that are payable under this Subsection (6) by members of the group, and the time
and manner of these payments.
(7) (a) An employing unit that acquires a nonprofit organization or substantially all the
assets of a nonprofit organization that has elected reimbursable coverage as defined in Subsection
(1), in accordance with rules made by the commission, shall be given the subject date of the
transferring nonprofit organization, provided the transferring nonprofit organization ceases to
operate as an employing unit at the point of acquisition.
(b) The acquiring entity shall reimburse the Unemployment Compensation Fund for the
transferring nonprofit organization's share of any unreimbursed benefits paid to former employees
of the transferring nonprofit organization.
Section 3. Section 35A-4-310 is amended to read:
35A-4-310. Employing units.
(1) (a) Any employing unit that is or becomes an employer subject to this chapter within
any calendar quarter [
quarter.
(b) (i) No employing unit is liable as an employer under Section 35A-4-302 for any period
prior to three calendar years immediately preceding the calendar year in which the division
determines the employing unit to be an employer as defined in Section 35A-4-203 .
(ii) This limitation does not apply if the division determines that the employing unit
knowingly or willfully failed to report to the division to avoid liability for contributions imposed
by this chapter.
[
[
initiative terminate coverage when it finds that an employing unit had no calendar quarter within
the preceding calendar year during which there were wages paid for employment [
employing unit did not meet any of the conditions for subjectivity to this chapter.
(3) (a) (i) An employing unit not otherwise subject to this chapter that files with the
division its written election to become an employer subject to this chapter for not less than two
calendar years shall, with the written approval of the election by the division, become an employer
subject to this chapter to the same extent as all other employers, as of the date stated in the
approval[
(ii) The employing unit shall cease to be subject to this chapter as of January 1 of any
calendar year subsequent to [
if, at least 30 days prior to the first day of January, it has filed with the division a written notice to
the effect.
(b) (i) Services which do not constitute employment as defined in this chapter shall, upon
the filing by the employing unit for whom the services are performed of a written election that
services performed by individuals in its employ in one or more distinct establishments or places of
work shall be considered to constitute employment for all the purposes of this chapter for not less
than two calendar years, and upon the written approval of the election by the division, be
considered to constitute employment subject from and after the date stated in [
approval[
(ii) The services referred to in Subsection (3)(b)(i) shall cease to be considered to be
employment subject to this chapter as of January 1 of any calendar year subsequent to the two
calendar years only if, at least 30 days prior to the first day of January, the employing unit has
filed with the division a written notice to that effect.
Section 4. Section 35A-4-405 is amended to read:
35A-4-405. Ineligibility for benefits.
[
or for purposes of establishing a waiting period:
(1) (a) For the week in which the claimant left work voluntarily without good cause, if so
found by the division, and for each week thereafter until the claimant has performed services in
bona fide, covered employment and earned wages for those services equal to at least six times the
claimant's weekly benefit amount.
(b) A claimant [
under circumstances [
conscience to impose a disqualification.
(c) Using available information from employers and the claimant, the division shall
consider for the purposes of this chapter the reasonableness of the claimant's actions, and the
extent to which the actions evidence a genuine continuing attachment to the labor market in
reaching a determination of whether the ineligibility of a claimant is contrary to equity and good
conscience.
(d) Notwithstanding any other subsection of this section, a claimant who has left work
voluntarily to accompany, follow, or join the claimant's spouse to or in a new locality does so
without good cause for purposes of Subsection (1).
(2) (a) For the week in which the claimant was discharged for just cause or for an act or
omission in connection with employment, not constituting a crime, which is deliberate, willful, or
wanton and adverse to the employer's rightful interest, if so found by the division, and thereafter
until the claimant has earned an amount equal to at least six times the claimant's weekly benefit
amount in bona fide covered employment.
(b) For the week in which [
crime or any felony or class A misdemeanor in connection with [
by the facts, together with [
conviction of that crime in a court of competent jurisdiction and for the 51 next following weeks.
(c) Wage credits shall be deleted from the claimant's base period, and are not available for
this or any subsequent claim for benefits.
(3) (a) (i) If the division finds that the claimant has failed without good cause to properly
apply for available suitable work, to accept a referral to suitable work offered by the employment
office, or to accept suitable work offered by an employer or the employment office.
(ii) The ineligibility continues until the claimant has performed services in bona fide
covered employment and earned wages for the services in an amount equal to at least six times
the claimant's weekly benefit amount.
(b) (i) A claimant [
accept referral, or accept available suitable work under circumstances [
where it would be contrary to equity and good conscience to impose a disqualification.
(ii) The division shall consider the purposes of this chapter, the reasonableness of the
claimant's actions, and the extent to which the actions evidence a genuine continuing attachment
to the labor market in reaching a determination of whether the ineligibility of a claimant is
contrary to equity and good conscience.
(c) In determining whether [
consider the:
(i) degree of risk involved to his health, safety, and morals;
(ii) individual's physical fitness and prior training;
(iii) individual's prior earnings and experience;
(iv) individual's length of unemployment;
(v) prospects for securing local work in his customary occupation;
(vi) wages for similar work in the locality; and
(vii) distance of the available work from his residence.
(d) Prior earnings shall be considered on the basis of all four quarters used in establishing
eligibility and not just the earnings from the most recent employer. The division shall be more
prone to find work as suitable the longer the claimant has been unemployed and the less likely the
prospects are to secure local work in his customary occupation.
(e) Notwithstanding any other provision of this chapter, no work is suitable, and benefits
[
accept new work under any of the following conditions:
(i) if the position offered is vacant due directly to a strike, lockout, or other labor dispute;
(ii) if the wages, hours, or other conditions of the work offered are substantially less
favorable to the individual than those prevailing for similar work in the locality; or
(iii) if as a condition of being employed the individual would be required to join a
company union or to resign from or refrain from joining any bona fide labor organization.
(4) For any week in which the division finds that [
to a stoppage of work that exists because of a strike involving [
group of workers at the factory or establishment at which [
employed.
(a) If the division finds that a strike has been fomented by a worker of any employer, none
of the workers of the grade, class, or group of workers of the individual who is found to be a
party to the plan, or agreement to foment a strike, shall be eligible for benefits. However, if the
division finds that the strike is caused by the failure or refusal of any employer to conform to [
conditions of work, the strike [
(b) If the division finds that the employer, [
conspired, planned, or agreed with any of [
representatives to foment a strike, that strike [
benefits.
(c) A worker may receive benefits if, subsequent to [
because of a strike as defined in this Subsection (4), [
and has been paid wages of not less than the amount specified in Subsection 35A-4-401 (4) and
has worked as specified in Subsection 35A-4-403 (1)(f). During the existence of the stoppage of
work due to this strike the wages of the worker used for the determination of his benefit rights
[
strike.
(5) (a) For each week with respect to which the claimant willfully made a false statement
or representation or knowingly failed to report a material fact to obtain any benefit under the
provisions of this chapter, and an additional 13 weeks for the first week the statement or
representation was made or fact withheld and six weeks for each week thereafter; the additional
weeks not to exceed 49 weeks.
(b) The additional period shall commence on the Sunday following the issuance of a
determination finding the claimant in violation of this Subsection (5).
(c) (i) Each [
the division the [
penalty, an amount equal to the [
overpayment.
(ii) The overpayment is the amount of benefits the claimant received by direct reason of
fraud.
(iii) The penalty amount shall be regarded as any other penalty under this chapter.
(iv) These amounts shall be collectible by civil action or warrant in the manner provided
in Subsections 35A-4-305 (3) and (5).
(d) A claimant is ineligible for future benefits or waiting week credit, and any wage
credits earned by the claimant shall be unavailable for purposes of paying benefits, if any amount
owed under this Subsection (5) remains unpaid.
(e) Determinations under this Subsection (5) shall be appealable in the manner provided
by this chapter for appeals from other benefit determinations.
(f) If the fraud determination is based solely on unreported or under reported work or
earnings, or both, and the claimant would have been eligible for benefits if the work or earnings,
or both, had been correctly reported, the individual does not lose eligibility because of the
misreporting but is liable for the overpayment and the penalties in Subsection (5)(c).
(6) For any week with respect to which or a part of which [
or is seeking unemployment benefits under an unemployment compensation law of another state
or the United States. If the appropriate agency of the other state or of the United States finally
determines that [
disqualification does not apply.
(7) (a) For any week with respect to which [
is entitled to receive remuneration in the form of:
(i) wages in lieu of notice, or a dismissal or separation payment; or
(ii) accrued vacation or terminal leave payment.
(b) If the remuneration is less than the benefits that would otherwise be due, [
claimant is entitled to receive for that week, if otherwise eligible, benefits reduced as provided in
Subsection 35A-4-401 (3).
(8) (a) For any week in which the individual's benefits are based on service for an
educational institution in an instructional, research, or principal administrative capacity and that
begins during the period between two successive academic years, or during a similar period
between two regular terms, whether or not successive, or during a period of paid sabbatical leave
provided for in the individual's contract if the individual performs services in the first of those
academic years or terms and if there is a contract or reasonable assurance that the individual will
perform services in that capacity for an educational institution in the second of the academic years
or terms.
(b) (i) For any week in which the individual's benefits are based on service in any other
capacity for an educational institution, and that week begins during a period between two
successive academic years or terms if the individual performs those services in the first of the
academic years or terms and there is a reasonable assurance that the individual will perform the
services in the second of the academic years or terms.
(ii) If compensation is denied to any individual under this Subsection (8) and the
individual was not offered an opportunity to perform the services for the educational institution
for the second of the academic years or terms, the individual shall be entitled to a retroactive
payment of compensation for each week for which the individual filed a timely claim for
compensation and for which compensation was denied solely by reason of this Subsection (8).
(c) With respect to any services described in Subsection (8)(a) or (b), compensation
payable on the basis of those services shall be denied to an individual for any week that
commences during an established and customary vacation period or holiday recess if the individual
performs the services in the period immediately before the vacation period or holiday recess, and
there is a reasonable assurance that the individual will perform the services in the period
immediately following the vacation period or holiday recess.
(d) (i) With respect to services described in Subsection (8)(a) or (b), compensation
payable on the basis of those services as provided in Subsection (8)(a), (b), or (c) shall be denied
to an individual who performed those services in an educational institution while in the employ of
an educational service agency.
(ii) For purposes of this Subsection (8)(d), "educational service agency" means a
governmental agency or entity established and operated exclusively for the purpose of providing
the services described in Subsection (8)(a) or (b) to an educational institution.
(e) Benefits based on service in employment, defined in Subsections 35A-4-204 (2)(d) and
(e) are payable in the same amount, on the same terms and subject to the same conditions as
compensation payable on the basis of other service subject to this chapter.
(9) For any week that commences during the period between two successive sport
seasons or similar periods if the individual performed any services, substantially all of which
consists of participating in sports or athletic events or training or preparing to participate in the
first of those seasons or similar periods and there is a reasonable assurance that individual will
perform those services in the later of the seasons or similar periods.
(10) (a) For any week in which the benefits are based upon services performed by an
alien, unless the alien is an individual who has been lawfully admitted for permanent residence at
the time the services were performed, was lawfully present for purposes of performing the
services or, was permanently residing in the United States under color of law at the time the
services were performed, including an alien who is lawfully present in the United States as a result
of the application of Subsection 212(d)(5) of the Immigration and Nationality Act, 8 U.S.C.
1182(d)(5)(A).
(b) Any data or information required of individuals applying for benefits to determine
whether benefits are not payable to them because of their alien status shall be uniformly required
from all applicants for benefits.
(c) In the case of an individual whose application for benefits would otherwise be
approved, no determination that benefits to the individual are not payable because of his alien
status shall be made except upon a preponderance of the evidence.
Section 5. Section 78-23-10 is amended to read:
78-23-10. Allowable claims against exempt property.
(1) Notwithstanding other provisions of this chapter, but subject to the provisions of the
Utah Uniform Consumer Credit Code:
(a) A creditor may levy against exempt property of any kind, except unemployment
benefits, to enforce a claim for:
(i) alimony, support, or maintenance;
(ii) unpaid earnings of up to one month's compensation or the full-time equivalent of one
month's compensation for personal services of an employee; or
(iii) state or local taxes.
(b) The only deductions that can be withheld from unemployment benefits are those listed
in Section 35A-4-103 .
[
(i) the purchase price of the property or a loan made for the purpose of enabling an
individual to purchase the specific property used for that purpose;
(ii) labor or materials furnished to make, repair, improve, preserve, store, or transport the
specific property; and
(iii) a special assessment imposed to defray costs of a public improvement benefiting the
property.
(2) This section does not affect the right to enforce any statutory lien or security interest
in exempt property.
Section 6. Effective date.
This bill takes effect on July 1, 2004.
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