SS#2/SCS/HS/HCS/HBs 1268 & 1211 - This act makes numerous modifications to the Missouri Employment Security Law.

This act requires that on a weekly basis the Division of Employment Security cross check Missouri unemployment compensation applicants recipients against available federal and state databases containing new hire and wage information. (Section 285.300)

The act defines "insured worker", "misconduct", "temporary help firm", "temporary employee", and "waiting week" within Chapter 288, RSMo. (Section 288.030)

The act makes a inter-sectional reference correction within the definition of "employer". (288.032)

The act makes a inter-sectional reference correction within the definition of "employment". (288.034)

The act removes subdivision 1 of Section 288.036 which makes an exemption from the definition of "wages" for wages earned in excess of the state taxable wage base as calculated by subsection 2 of the section. The items addressed within the removed provision are addressed in subsection 2 of the section. The state taxable wage base in 2005, 2006 and 2007 shall be $11,000, in 2008 and each year thereafter the taxable wage base shall be $12,000, and for the following years shall be set based on the preceding September 30 balance of the unemployment compensation fund, less any outstanding federal advances or if the state is utilizing credit instruments the amount shall be based on a separate formula. Should the unemployment compensation fund on September 30 be below 350 million, employers must pay an additional $1,000. Should the unemployment compensation fund on September 30 be in excess of 650 million, employers are credited an amount of $500. The state taxable wage base may not be increased beyond $12,000. For calendar year 2009 the state taxable wage base shall be $12,500. In 2010, and each calendar year thereafter, in no event shall the state taxable wage base increase beyond thirteen thousand dollars, or decrease to less than seven thousand dollars. (Section 288.036)

The act revises the maximum weekly benefit amount for claims. The maximum weekly benefit amount in the following calendar years are as follows:

1. In 2004 and 2005, the maximum weekly benefit amount shall not exceed two hundred fifty dollars;

2. In 2006, the maximum weekly benefit amount shall not exceed two hundred seventy dollars;

3. In 2007, the maximum weekly benefit amount shall not exceed two hundred eighty dollars;

4. In 2008, the maximum weekly benefit amount shall not exceed three hundred dollars;

5. In 2009, the maximum weekly benefit amount shall not exceed three hundred ten dollars; and

6. In 2010 and each calendar year thereafter, the maximum weekly benefit amount shall not exceed three hundred twenty dollars. (Section 288.038)

During calendar year 2008 and each calendar year thereafter, the one-week waiting period shall become compensable once his or her remaining balance on the claim is equal to or less than the compensable amount for the waiting period. (Section 288.040)

The act establishes procedures and penalties for a professionally administered and documented positive chemical test result indicating a controlled substance is present within the claimant. The application of the alcohol and controlled substance testing provisions of this section shall not apply in the event that the claimant is subject to the provisions of any applicable collective bargaining agreement, which contains methods for alcohol or controlled substance testing. The act abrogates certain existing case law. (Section 288.045)

A temporary employee of a temporary help firm, who is aware of this law, shall be deemed to have voluntarily quit their employment if the employee does not contact the firm for reassignment prior to filing for benefits. (Section 288.050.1(1))

An offer of suitable work shall be conclusively established if an employer notifies the claimant by any form of certified mail of such an offer. (Section 288.050.1(3))

If a claimant is discharged for misconduct, no benefits are to be paid or charged against the employer for any period of employment within the base period until the claimant has earned wages insured under the unemployment law. If a claimant is disqualified a second or subsequent time, the claimant is required to earn wages at least eight times the claimant's weekly benefit amount for each disqualification and the additionally required wages will run consecutively. Further, the act deems a positive test result for controlled substances or for blood alcohol content of eight-hundredths of one percent or more as misconduct connected with work. (Section 288.050.2)

Absenteeism or tardiness may result in discharge and constitute misconduct. (Section 288.050.3)

In 2007, and each year thereafter, a workers' partial weekly benefit amount shall be an amount equal to the difference between his or her weekly benefit amount and that part of his or her wages for such week in excess of twenty dollars or twenty percent of his or her weekly benefit amount, whichever is greater, and, if such partial benefit amount is not a multiple of one dollar, such amount shall be reduced to the nearest lower full dollar amount. (Section 288.060.3)

The act sets verification requirements the division must implement to verify the identity of a claimant who initially files for unemployment insurance benefits. (Section 288.060.9)

The division shall establish an average industry contribution rate for the next succeeding calendar year for each of the industrial classification divisions listed in the Industrial Classification System established by the federal government, rather than by the Standard Industrial Classification Manual as currently required. (Section 288.090)

The recalculation procedure for the contribution rate for a successor employer based upon the combined experience of all predecessor and successor employers is specified in the act. (Section 288.110)

The act corrects a mistake in subsection 1, subdivision 4, subparagraph (e) by inserting the correct sectional reference. (Section 288.100)

Employers who have been taxed at the maximum rate pursuant to this section for two consecutive years shall have a surcharge of one-quarter percent added to their contribution rate calculated pursuant to this section. In the event that an employer remains at the maximum rate pursuant to this section for a third or subsequent year, an additional surcharge of one- quarter percent shall be annually assessed, but in no case shall this surcharge cumulatively exceed one percent. Additionally, if an employer continues to remain at the maximum rate pursuant to this section an additional surcharge of one-half percent shall be assessed. In no case shall the total surcharge assessed to any employer exceed one and one-half percent in any given year. (Section 288.120.4)

If the balance in the Unemployment Compensation Fund for the four preceding quarters falls between $450 million and $400 million, the employers contribution rate will be increased for the succeeding four quarters by 10%. If the balance falls between $400 million and $350 million, the rate will be increased by 20%. If the balance falls below $350 million, the rate will increase by 30%. For calendar year 2005, 2006, and 2007 contribution rate for employers paying the maximum contribution rate of 6%, their rate will increase by 40%. (Section 288.121.1)

For calendar years 2005, 2006, and 2007 an employer's total contribution rate shall equal the employer's contribution rate plus a temporary debt indebtedness assessment equal to the amount to be determined in subdivision 6 of subsection 2 of Section 288.330 added to the contribution rate plus the increase authorized under subsection 1 of Section 288.121. (Section 288.121.2)

The act adds a provision which states that in addition to the money from the federal government or any money from state credit instruments issued pursuant to Section 288.330, or from moneys advanced under financial agreements provided for in section 288.330, subsection 2, subdivision (17), a fee for the purpose of payment of the principal, interest, and administrative expenses shall be required by each employer. The act sets how the amount is to be determined. (Section 288.128.1)

If the fund is utilizing moneys from the proceeds of credit instruments or from the moneys advanced under financial agreements or a combination thereof each employer shall be assessed a "credit instrument and financing agreement repayment surcharge". The total of such surcharge shall be calculated as an amount up to 150% of the amount required in the 12 month period following the due date for the payment of such surcharge for the payment of the principal, interest, and administrative expenses related to such. Each employer's proportionate share shall be the product obtained by multiplying the total statewide credit instrument and financing agreement repayment surcharge by a number obtained by dividing the employer's total taxable wages for the prior year by the total taxable wages in the state for the prior year. (Section 288.128.3)

The division may collect any debt by interception of the debtor's federal income tax refund. (Section 288.175)

To ensure that unemployment compensation fund moneys are utilized only for the purpose authorized, no other fund shall be established with increased employer taxes that are offset by a reduction of unemployment contributions. (Section 288.290)

The act allows money from state credit instruments issued pursuant to Section 288.330 or from moneys advanced under financial agreements provided for in section 288.330, subsection 2, subdivision (17), to go into the state employment security fund. (Section 288.310)

The act provide a method of providing funds for the payment of unemployment benefits or maintaining an adequate fund balance in the unemployment compensation fund, and as an alternative to borrowing or obtaining advances from the federal unemployment trust fund or for refinancing those loans or advances. The section defines "credit instrument" as, any type of borrowing obligation issued under this section, including any bonds, commercial line of credit note, tax anticipation note or similar instrument. The act creates a Board of Unemployment Fund Financing, and establishes the membership, their responsibilities and powers of the board. The board may issue credit instruments that mature no later than three years after issuance and may not exceed 450 million dollars. The issuance of any credit instrument shall not constitute a debt of the state. Should the United States Secretary of Labor hold that a provision of this subsection or of any provision related to the levy or use of the credit instrument and financial agreement repayment surcharge does not conform with a federal statute or would result in the loss to the state of any federal funds otherwise available to it the board may administer this subsection, and other provisions related to the credit instrument and financial agreement repayment surcharge, to conform with the federal statute until the general assembly meets in its next regular session and has an opportunity to amend this subsection or other sections, as applicable. (Section 288.330)

The act establishes procedures and penalties relating to fraud pertaining to unemployment benefits. (Section 288.380)

The act establishes a default penalty provision for chapter 288 when fraud or misrepresentation is involved. (Section 288.395)

The act requires the Division of Employment Security to send to all employing units in the state by October 1, 2004, a summary of the changes enacted in the act. Additionally, the division is required to provide pertinent information to enable the employing unit to comply with the resulting employer requirements. (Section 288.397)

The division of employment security may contract with one or more consumer reporting agencies to provide secure electronic access to information provided in the quarterly wage report to the division of employment security by employing units, and establishes rules governing such. (Section 288.398)

No shared work plan benefits will be initiated for pay periods when the reduced hours reflect holiday earnings already committed to be paid by the employer. (Section 288.500)

The Missouri State Unemployment Council is created. Annually the council is to report to the Governor and the General Assembly its recommendations on pertinent legislation, status and projected maintenance requirements for solvency of unemployment insurance, and the adequacy of unemployment compensation. The Division of Employment Security shall provide the commission with access to the division's records, services required, employee testimony, and give consideration to recommendations on relevant legislation and rules. The council may, except if prohibited by concurrent resolution by the General Assembly, commission an outside study of the solvency, adequacy, and staffing and operational efficiency of the Missouri unemployment system. The first study is authorized to begin in Fiscal Year 2005 and a successor study every five years thereafter. The commission's composition, terms, and certain member voting and nonvoting designations are specified. (Section 288.501)

The act contains a severability clause. (Section 288.502)

This act contains an emergency clause for certain sections.

This act contains an effective date for certain sections.
RICHARD MOORE