Bill No.:                     SF0073                                   Drafter:  JWL

LSO No.:                   13LSO-0171                         Effective Date:  7/1/2013

Enrolled Act No.:    SEA0051

Chapter No.:            CH0133

Prime Sponsor:       Joint Labor, Health and Social Services Interim Committee

Catch Title:              Unemployment insurance-federal compliance.

Subject:                     Implements two federally required amendments to the unemployment insurance program.

Summary/Major Elements:

· Under current law, unemployment benefits paid pursuant to a division determination to pay are not charged to the employer’s experience account if the determination is later reversed upon reconsideration or on appeal.

· This act provides that benefits paid erroneously will be charged to an employer’s account if the payment resulted from the employer’s failure to timely provide requested information to the division, and if the employer has established a pattern of failing to provide timely or adequate information to the division.

· Also under current law, claimants must repay fraudulently received benefits, plus an initial 5% penalty and 5% of any unpaid balance at the end of every six month period.

· This act increases the initial penalty to 20% of the overpayment, with 75% of that initial penalty used to replenish the unemployment trust fund account and the balance of penalties used for administrative costs of overpayment collection, fraud investigation and educational programs.