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H.B. 43 Enrolled

             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      General Description:
             12          This bill modifies provisions in the Employment Security Act regarding the
             13      computation of individual weekly benefits for those whose benefit year begins after the
             14      termination of Pub. L. No. 111-5, Sec. 2002 as amended and the offset of Social
             15      Security benefits against the weekly benefit amount of unemployment compensation an
             16      individual is eligible to receive under the Act.
             17      Highlighted Provisions:
             18          This bill:
             19          .    provides that Social Security benefits may not be offset against unemployment
             20      compensation weekly benefits under the Employment Security Act with respect to
             21      an individual whose benefit year begins after the termination of Pub. L. No. 111-5,
             22      Sec. 2002 as amended;
             23          .    provides for the computation of weekly unemployment benefits for those whose
             24      benefit year begins after the termination of Pub. L. No. 111-5, Sec. 2002 as
             25      amended; and
             26          .    makes certain technical changes.
             27      Monies Appropriated in this Bill:
             28          None
             29      Other Special Clauses:


             30          None
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          35A-4-401, as last amended by Laws of Utah 2008, Chapter 382
             34     
             35      Be it enacted by the Legislature of the state of Utah:
             36          Section 1. Section 35A-4-401 is amended to read:
             37           35A-4-401. Benefits -- Weekly benefit amount -- Computation of benefits --
             38      Department to prescribe rules -- Notification of benefits -- Bonuses.
             39          (1) (a) Benefits are payable from the fund to an individual who is or becomes
             40      unemployed and eligible for benefits.
             41          (b) All benefits shall be paid through the employment offices or other agencies
             42      designated by the division in accordance with rules the department may prescribe in
             43      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             44          (2) (a) (i) [An] Except as otherwise provided in Subsection (2)(a)(ii), an individual's
             45      "weekly benefit amount" is an amount equal to 1/26th, disregarding any fraction of $1, of the
             46      individual's total wages for insured work paid during that quarter of the base period in which
             47      the total wages were highest.
             48          (ii) With respect to an individual whose benefit year begins after the termination of
             49      any payable week under Pub. L. No. 111-5, Sec. 2002 as amended, an individual's weekly
             50      benefit amount is an amount equal to 1/26th minus $5, disregarding any fraction of $1, of the
             51      individual's total wages for insured work paid during that quarter of the base period in which
             52      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
             59      average fiscal year weekly wage during the preceding fiscal year, disregarding any fraction of
             60      $1[, constitutes the maximum weekly benefit amount payable].
             61          (ii) With respect to an individual whose benefit year begins after the termination of
             62      any payable week under Pub. L. No. 111-5, Sec. 2002 as amended, the weekly benefit amount
             63      may not exceed 62.5% of the insured average fiscal year weekly wage during the preceding
             64      fiscal year minus $5, disregarding any fraction of $1.
             65          (c) (i) Except as otherwise provided in [Subsection] Subsections (2)(c)(ii) and (iii), the
             66      "weekly benefit amount" of an individual who is receiving, or who is eligible to receive, based
             67      upon the individual's previous employment, a pension, which includes a governmental, Social
             68      Security, or other pension, retirement or disability retirement pay, under a plan maintained or
             69      contributed to by a base-period employer is the "weekly benefit amount" which is computed
             70      under this section less 100% of the retirement benefits, that are attributable to a week,
             71      disregarding any fraction of $1.
             72          (ii) With respect to an individual whose benefit year begins after July 1, 2004, and
             73      ends on or before [July 1, 2011] the termination of any payable week under Pub. L. No. 111-5,
             74      Sec. 2002 as amended, the "weekly benefit amount" of that individual, who is receiving or
             75      who is eligible to receive Social Security benefits based upon the individual's previous
             76      employment, is the "weekly benefit amount" which is computed under this section less 50% of
             77      the individual's Social Security benefits that are attributable to the week, but not below zero.
             78          (iii) With respect to an individual whose benefit year begins after the termination of
             79      any payable week under Pub. L. No. 111-5, Sec. 2002 as amended, this Subsection (2)(c) and
             80      Subsection (2)(d) do not apply to Social Security benefits an individual is receiving or is
             81      eligible to receive as they are not considered retirement benefits for purposes of those
             82      subsections.
             83          (d) (i) (A) The weekly benefit amount and the potential benefits payable to an
             84      individual who, subsequent to the commencement of the individual's benefit year, becomes or
             85      is determined to be eligible to receive retirement benefits or increased retirement benefits, shall


             86      be recomputed effective with the first calendar week during the individual's benefit year with
             87      respect to which the individual is eligible to receive retirement benefits or increased retirement
             88      benefits.
             89          (B) The new weekly benefit amount shall be determined under this Subsection (2).
             90          (ii) As recomputed the total benefits potentially payable, commencing with the
             91      effective date of the recomputation, shall be equal to the recomputed weekly benefit amount
             92      times the quotient obtained by dividing the potential benefits unpaid prior to the
             93      recomputation by the initial weekly benefit amount, disregarding fractions.
             94          (3) (a) An eligible individual who is unemployed in any week shall be paid with
             95      respect to that week a benefit in an amount equal to the individual's weekly benefit amount
             96      less that part of the individual's wage payable to the individual with respect to that week that is
             97      in excess of 30% of the individual's weekly benefit amount.
             98          (b) The resulting benefit payable shall disregard any fraction of $1.
             99          (c) For the purpose of this Subsection (3) "wages" does not include a grant paid to the
             100      individual as public assistance.
             101          (4) (a) An otherwise eligible individual is entitled during a benefit year to a total
             102      amount of benefits determined by multiplying the individual's weekly benefit amount times
             103      the individual's potential duration.
             104          (b) To determine an individual's potential duration, the individual's total wages for
             105      insured work paid during the base period is multiplied by 27%, disregarding any fraction of
             106      $1, and divided by the individual's weekly benefit amount, disregarding any fraction, but not
             107      less than 10 nor more than 26.
             108          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             109      the department may by rule prescribe:
             110          (i) that the existence of unemployment, eligibility for benefits, and the amount of
             111      benefits payable shall be determined in the case of an otherwise eligible individual who,
             112      within a week or other period of unemployment, is separated from or secures work on a regular
             113      attachment basis for that portion of the week or other period of unemployment occurring


             114      before or after separation from or securing of work; and
             115          (ii) in the case of an individual working on a regular attachment basis, eligibility for
             116      benefits and the amount of benefits payable for periods of unemployment longer than a week.
             117          (b) The rules made shall be reasonably calculated to secure general results
             118      substantially similar to those provided by this chapter with respect to weeks of unemployment.
             119          (6) The division shall, in all cases involving actual or potential disqualifying issues
             120      and prior to the payment of benefits to an eligible individual, notify the individual's most
             121      recent employer of the eligibility determination.
             122          (7) Upon written request of an individual made under rules of the department in
             123      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, all remuneration
             124      for insured work paid to the individual during the individual's period in the form of a bonus or
             125      lump-sum payment shall, for benefit purposes, be apportioned to the calendar quarters in
             126      which the remuneration was earned.
             127          (8) (a) The director of the division or the director's designee shall make an annual
             128      report to the Workforce Employment Advisory Council and to the Legislature's Workforce
             129      Services and Community and Economic Development Interim Committee no later than
             130      November 30 of 2011, and 2012, concerning the impact of individuals applying for
             131      unemployment compensation and the unemployment trust fund as a result of the amendments
             132      made to Subsection 35A-4-401 (2) during the Legislature's 2010 General Session.
             133          (b) The report shall include a recommendation for a potential adjustment in the weekly
             134      benefit amounts established in Subsections 35A-4-401 (2)(a)(ii) and 35A-4-401 (2)(b)(ii),
             135      taking into account the unemployment benefit costs associated with the amendments made to
             136      Subsection 35A-4-401 (2) during the Legislature's 2010 General Session.


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