|
BILL # SB 1296 |
TITLE: unemployment benefits; requirements; disqualifications; determinations |
|
SPONSOR: Finchem |
STATUS: As Amended by House COM |
|
PREPARED BY: Gordon Robertson |
|
The bill as amended would modify the requirements for an unemployed individual to remain eligible for unemployment insurance (UI) benefits. The individual would be required to complete at least 5 "work search actions" every week and report these to the Department of Economic Security (DES) to receive weekly benefits. DES would need to successfully cross-check a claim against 8 prescribed data sets before a benefit payment can be made. Employers would also be required to report to DES when a former employee refuses to return to work or fails to appear for a scheduled interview without cause, and the individual would be disqualified from receiving UI benefits.
Estimated Impact
The bill could reduce UI benefits payments by an unknown amount if the modified job search requirements reduce weekly UI claims and thus more claims are denied by DES. Any savings generated by this bill would accrue to the UI Trust Fund as opposed to the General Fund.
For a similar bill in 2023, DES estimated that the bill would cost $655,700 one-time for training, updating system programming, and equipment. DES also estimated $1.7 million in ongoing costs for staffing associated with appeals processing.
We have asked DES for an update to their prior estimates.
The UI benefits program offers weekly benefits payments to workers who have recently become unemployed through no fault of their own. The benefits are funded through state and federal taxes on employers.
The bill makes several changes to UI eligibility and eligibility verification. First, the bill changes UI requirements so that individuals must conduct at least 5 "work search actions" each week and submit a weekly report to DES to be eligible for benefits. These actions include submitting applications/resumes to employers and attending interviews. Under current law, the individual must make an effort to obtain work at least 4 days per week with 1 "job contact" per day. Some actions specified by DES that would currently qualify someone for benefits (e.g. creating a re-employment plan or registering with a temporary work agency) are broader than the 5 actions specified in the bill. In combination with the added reporting requirements, it is possible fewer beneficiaries would maintain eligibility as a result of the bill.
Second, DES would need to successfully cross-check each claim against 8 prescribed data sets before a claim can be paid. These sets include death records databases, new hire reporting systems, and inmate databases. In a Senate committee hearing, DES testified that it already performs many of these cross-checks, but the bill would increase their frequency. The increased frequency may be able to detect additional cases of fraud. According to DES, for UI fraud convictions from October 2024 through December 2024, $453,200 in fraudulent benefit payments were recovered.
Third, employers would be required to report to DES when a former employee refuses to return to work or fails to appear for a scheduled interview without cause, among other actions. In this case, the individual would be disqualified from receiving UI benefits.
We believe these 3 changes could each reduce UI benefit payments. The magnitude of benefit payment impacts, however, is uncertain, as we do not have sufficient data to analyze each change's individual impact.
Local Government Impact
None
3/25/25