HS/HCS/HB 472 - This act would modify provisions relating to employment security benefits.

EMPLOYMENT TAXES. Currently, an employer pays employment taxes based on the first $8,500 paid to the employee, subject to modification based on the balance in the Unemployment Compensation Trust Fund, less any federal advances. This act would decrease such amount to $8,000, beginning in 1997, and back up to $8,500 beginning in 1998.

Beginning in 1999, employment taxes would be based on the "state taxable wage", which is based on an annual balance in the Unemployment Compensation Trust Fund, less certain federal Title XII (Social Security Act) advances received.

If the adjusted Fund balance is $300 million or less, the wage base is increased by $500. If the adjusted Fund balance is $450 million or more, the wage base is decreased by $500. The state taxable wage base cannot be larger than $10,500, nor less than $7,000.

UNEMPLOYMENT BENEFITS. This act modifies the way the "weekly benefit amount" is calculated. Currently, the weekly benefit amount is 4.5%, with adjustable maximum dollar amounts based on the employer's contribution rate. This act would change the weekly benefit amount to 4%, beginning in 1998, with a maximum weekly benefit amount of no more than $205 in 1998, $220 in 1999, $235 in 2000 and $250 in 2001 and every year after that.

STOPPAGE OF WORK. This act would modify the definition of "stoppage of work" in subdivision (2) of subsection 6 of section 288.040. In situations where employees in the bargaining unit who initiated the strike are participating in the strike, such employees would not be eligible for waiting week credits or benefits during the strike, unless federal law requires it.

The "stoppage of work" provision is similar to SB 55.

MISCONDUCT. A pattern of absenteeism may constitute misconduct, which may result in disqualification of the claimant for a certain period of time.

EXEMPTS NEWSPAPER DELIVERING. This act would exempt certain persons who deliver newspapers from the provisions of Employment Security Law. Excluded from the term "employment" are persons who engage in newspaper delivery and distribution, regardless of age (currently only persons under 18 are excluded), and also delivery or distribution to any point for subsequent delivery or distribution. This section also excludes services by a direct seller who performs newspaper and shopping news delivery and distribution services.

TRANSIENT EMPLOYERS. Any political subdivision which requires building permits for certain construction contracts shall require transient employers to show proof that the employer has a tax clearance and has filed a financial assurance instrument before issuing such a permit. If a permit is improperly issued, the Department of Revenue shall go to court to stop further performance of such work by the transient employer. Similar transient employer provisions extend to subcontractors, except that proof is required to be shown to the contractor. The Department of Revenue shall report known transient employers in the Missouri Register at least quarterly, and shall update the list monthly.

Bond requirements for financial assurance instruments (when there is insufficient Workers' Compensation coverage) are removed.
MARGARET J. TOALSON