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H.B. 18

This document includes House Committee Amendments incorporated into the bill on Tue, Feb 2, 2010 at 11:08 AM by lerror. --> This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Wed, Feb 17, 2010 at 3:15 PM by rday. -->              1     

UNEMPLOYMENT INSURANCE AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Steven R. Mascaro

             5     
Senate Sponsor: Wayne L. Niederhauser

             6      Cosponsors:
             7      Laura BlackNeil A. HansenChristine F. Watkins              8     
             9      LONG TITLE
             10      Committee Note:
             11          The Workforce Services and Community and Economic Development Interim
             12      Committee recommended this bill.
             13      General Description:
             14          This bill modifies provisions of the Employment Security Act related to unemployment
             15      insurance benefits.
             16      Highlighted Provisions:
             17          This bill:
             18          .    makes modifications to the definition of base period for purposes related to
             19      qualifying for unemployment insurance benefits; and
             20          .    requires an annual report by the division on the impact of these modifications.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          35A-4-201, as last amended by Laws of Utah 2005, Chapter 81


             28          35A-4-403, as last amended by Laws of Utah 2008, Chapter 43
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 35A-4-201 is amended to read:
             32           35A-4-201. General definitions.
             33          As used in this chapter:
             34          (1) (a) ["Base-period"] Except as otherwise provided in Subsection (1)(b), "base
             35      period" means the first four of the last five completed calendar quarters next preceding the first
             36      day of the individual's benefit year with respect to any individual whose benefit year
             37      commences on or after January 5, 1986.
             38          (b) (i) For a claimant whose benefit year is effective on or after January 2, 2011, and
             39      who does not have sufficient wages in the first four of the last five completed calendar quarters
             40      to otherwise qualify for benefits under Subsection (1)(a), the base period is the last four
             41      completed calendar quarters.
             42          (ii) Wages used to establish eligibility regardless of how the base period is calculated
             43      are not available for qualifying benefits in any subsequent benefit year.
             44          (2) "Benefit year" means the 52 consecutive week period beginning with the first week
             45      with respect to which an individual files for benefits and is found to have an insured status.
             46          (3) "Benefits" means the money payments payable to an individual as provided in this
             47      chapter with respect to the individual's unemployment.
             48          (4) "Calendar quarter" means the period of three consecutive months ending on March
             49      31, June 30, September 30, or December 31, or the equivalent, as the department may by rule
             50      prescribe.
             51          (5) "Contribution" means the money payments required by this chapter to be made into
             52      the Unemployment Compensation Fund by any employing unit on account of having
             53      individuals in its employ.
             54          (6) "Division" means the Unemployment Insurance Division.
             55          (7) "Employment office" means a free public employment office or branch operated by
             56      this or any other state as a part of a state-controlled system of public employment offices or by
             57      a federal agency charged with the administration of an unemployment compensation program
             58      or free public employment offices.


             59          (8) "Employment Security Administration Fund" means the fund established by
             60      Section 35A-4-505 , and from which administrative expenses under this chapter shall be paid.
             61          (9) "Extended benefits" has the meaning specified in Subsection 35A-4-402 (7)(f).
             62          (10) "Fund" means the Unemployment Compensation Fund established by this chapter.
             63          (11) "Insured average annual wage" means on or before the 15th day of May of each
             64      year, the total wages of insured workers for the preceding calendar year, divided by the average
             65      monthly number of insured workers, determined by dividing by 12 the total insured workers for
             66      the preceding calendar year as determined under the rules of the department calculated to two
             67      decimal places, disregarding any fraction of one cent.
             68          (12) "Insured average fiscal year wage" means on or before the 15th day of November
             69      of each year, the total wages of insured workers for the preceding fiscal year, divided by the
             70      average monthly number of insured workers, determined by dividing by 12 the total insured
             71      workers for the preceding fiscal year as determined under the rules of the department calculated
             72      to two decimal places, disregarding any fraction of one cent.
             73          (13) "Insured average fiscal year weekly wage" means the insured average fiscal year
             74      wage determined in Subsection (12), divided by 52, calculated to two decimal places,
             75      disregarding any fraction of one cent.
             76          (14) "Insured average weekly wage" means the insured average annual wage
             77      determined in Subsection (11), divided by 52, calculated to two decimal places, disregarding
             78      any fraction of one cent.
             79          (15) "Insured status" means that an individual has, during the individual's base-period,
             80      performed services and earned wages in employment sufficient to qualify for benefits under
             81      Section 35A-4-403 .
             82          (16) "Insured work" means employment for an employer, as defined in Section
             83      35A-4-203 .
             84          (17) "Monetary base period wage requirement" means 8% of the insured average fiscal
             85      year wage for the preceding fiscal year, for example, fiscal year 1990 for individuals
             86      establishing benefit years in 1991, rounded up to the next higher multiple of $100.
             87          (18) "State" includes the Commonwealth of Puerto Rico, the Virgin Islands, and the
             88      District of Columbia.
             89          (19) "Tribal unit" means a subdivision, subsidiary, or business enterprise wholly owned


             90      by an American Indian tribe.
             91          (20) "Week" means the period or periods of seven consecutive calendar days as the
             92      department may prescribe by rule.
             93          Section 2. Section 35A-4-403 is amended to read:
             94           35A-4-403. Eligibility of individual -- Conditions -- Furnishing reports -- Weeks
             95      of employment -- Successive benefit years.
             96          (1) Except as provided in Subsection (2), an unemployed individual is eligible to
             97      receive benefits for any week if the division finds:
             98          (a) the individual has made a claim for benefits for that week in accordance with rules
             99      the department may prescribe, except as provided in Subsection (3);
             100          (b) the individual has registered for work with the department and acted in a good faith
             101      effort to secure employment during each and every week for which the individual made a claim
             102      for benefits under this chapter in accordance with rules the department may prescribe, except as
             103      provided in Subsection (3);
             104          (c) the individual is able to work and is available for work during each and every week
             105      for which the individual made a claim for benefits under this chapter;
             106          (d) the individual has been unemployed for a waiting period of one week for each
             107      benefit year, but a week may not be counted as a week of unemployment for the purpose of this
             108      Subsection (1)(d):
             109          (i) unless it occurs within the benefit year that includes the week for which the
             110      individual claims benefits;
             111          (ii) if benefits have been paid for the claim; or
             112          (iii) unless the individual was eligible for benefits for the week as provided in this
             113      section and Sections 35A-4-401 and 35A-4-405 , except for the requirement of this Subsection
             114      (1)(d);
             115          (e) (i) the individual has furnished the division separation and other information the
             116      department may prescribe by rule, or proves to the satisfaction of the division that the
             117      individual had good cause for failing to furnish the information;
             118          (ii) if an employer fails to furnish reports concerning separation and employment as
             119      required by this chapter and rules adopted under the chapter, the division shall, on the basis of
             120      information it obtains, determine the eligibility and insured status of an individual affected by


             121      that failure and the employer is not considered to be an interested party to the determination;
             122          (f) (i) the individual's base period wages were at least 1-1/2 times the individual's
             123      wages for insured work paid during that quarter of the individual's base period in which the
             124      individual's wages were highest; or
             125          (ii) for any claimant whose benefit year is effective on or before January 1, 2011, the
             126      individual shows to the satisfaction of the division that the individual worked at least 20 weeks
             127      in insured work during the individual's base period and earned wages of at least 5% of the
             128      monetary base period wage requirement each week, rounded to the nearest whole dollar,
             129      provided that the individual's total base-period wages were not less than the monetary base
             130      period wage requirement as defined in Section 35A-4-201 ; and
             131          (g) (i) the individual applying for benefits in a successive benefit year has had
             132      subsequent employment since the effective date of the preceding benefit year equal to at least
             133      six times the individual's weekly benefit amount, in insured work; and
             134          (ii) the individual's total wages and employment experience in the individual's base
             135      period meet the requirements specified in Subsection (1)(f).
             136          (2) (a) For purposes of this Subsection (2), "suitable employment" means:
             137          (i) work of a substantially equal or higher skill level than the individual's past adversely
             138      affected employment as defined for purposes of the Trade Act of 1974; and
             139          (ii) wages for that work at not less than 80% of the individual's average weekly wage
             140      as determined for purposes of the Trade Act of 1974.
             141          (b) (i) An individual in training with the approval of the division is not ineligible to
             142      receive benefits by reason of nonavailability for work, failure to search for work, refusal of
             143      suitable work, failure to apply for or to accept suitable work, or not having been unemployed
             144      for a waiting period of one week for any week the individual is in the approved training.
             145          (ii) For purposes of Subsection (2)(b)(i), the division shall approve any mandatory
             146      apprenticeship-related training.
             147          (c) Notwithstanding any other provision of this chapter, the division may not deny an
             148      otherwise eligible individual benefits for any week:
             149          (i) because the individual is in training approved under Section 236 (a)(1) of the Trade
             150      Act of 1974, 19 U.S.C. 2296(a);
             151          (ii) for leaving work to enter training described in Subsection (2)(c)(i) if the work left


             152      is not suitable employment; or
             153          (iii) because of the application to any such week in training of provisions in this law or
             154      any applicable federal unemployment compensation law relating to availability for work, active
             155      search for work, or refusal to accept work.
             156          (3) The department may, by rule, waive or alter either or both of the requirements of
             157      Subsections (1)(a) and (b) as to:
             158          (a) individuals attached to regular jobs;
             159          (b) a disaster in Utah as declared by the President of the United States or by the state's
             160      governor after giving due consideration to factors directly associated with the disaster,
             161      including:
             162          (i) the disaster's impact on employers and their ability to employ workers in the
             163      affected area in Utah;
             164          (ii) the disaster's impact on claimants and their ability to comply with filing
             165      requirements in the affected area in Utah; and
             166          (iii) the magnitude of the disaster and the anticipated time for recovery; and
             167          (c) cases or situations when it finds that compliance with the requirements would be
             168      oppressive, or would be inconsistent with the purposes of this chapter, as long as the rule does
             169      not conflict with Subsection 35A-4-401 (1).
             170          (4) S. (a) .S The director of the division or the director's designee shall make an annual
             170a      report to
             171      the Workforce Employment Advisory Council and to the Legislature's Workforce Services and
             172      Community and Economic Development Interim Committee no later than November 30 of
             173      2011, H. [ 2012, and 2013, ] and annually thereafter, .H concerning the impact on individuals
             173a      applying for unemployment
             174      compensation and the unemployment trust insurance fund as a result of amendments made to
             175      Subsections 35A-4-201 (1) and 35A-4-403 (1)(f) during the Legislature's 2010 General Session.
             175a      S. (b) The interim committee shall make recommendations to the Legislature from the
             175b      annual report it receives under Subsection (4)(a) that may include:
             175c          (i) further modifications to the amendments made to Subsections 35A-4-201(1) and
             175d      35A-4-403(1)(f) during the 2010 General Session; or
             175e          (ii) the repeal of those amendments. .S




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    as of 11-18-09 4:24 PM


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