0116-hb 1422

AN ACT relative to the composition of and procedures for the appellate board of the department of employment security.

SPONSORS: Rep. Daniels, Hills 13

This bill changes the composition and appointment procedure of the appellate board of the department of employment security. The bill also changes the procedure for appeals to the board.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

116:1 Employment Security; Appellate Board. Amend RSA 282-A:62 to read as follows:

I. There shall be an appellate board consisting of [5] 8 members, [~~no 2 of whom shall be from the same executive council district,~~] who are and continue to be residents of New Hampshire, appointed by the governor with the advice and consent of the executive council for [~~3-year~~] 4-year terms and until their successors are appointed and qualified. Two of the members shall be attorneys-at-law admitted to the practice of law in the state of New Hampshire, one of whom shall be the chair, and one of whom shall be the vice chair and shall serve in the absence of the chair. These 2 members shall be the only members of the appellate board who are attorneys-at-law. [~~Another member~~] Two members shall be [~~a representative~~] representatives of business management familiar with unemployment compensation laws. [~~A fourth member~~] Two members shall be [~~a representative~~] representatives from organized labor familiar with unemployment compensation laws. [~~The fifth member~~] Two members, who shall also be familiar with unemployment compensation laws, shall [~~be designated as the member representing and shall~~] represent the public. The appointments shall be for [3] 4 years. No person shall serve more than 8 consecutive years. Any vacancy shall be filled for the unexpired term. The members shall be paid [~~$100~~] $150 for each day or any part thereof during which they perform services, except that the chair and vice chair shall be paid [~~$150~~] $200 for each day or any part thereof during which they perform services. All members shall be reimbursed for all expenses determined by the commissioner to be necessary to the performance of their duties including mileage and board and room necessary for the conduct of hearings, except that no person who is a member of the appellate board and holds a part time, full time or per diem position with the executive, legislative or judicial branch shall receive the per diem allowance.

II. In the event of an increased workload the chair of the appellate board may request the governor with the advice and consent of the executive council to appoint up to 4 additional [~~at-large~~] members to the board, with equal representation for business management and organized labor. These new members shall serve for [~~3 years or until notified by the chair that the workload has been reduced to a level so that their services are no longer required~~] one year from the date of appointment.

282-A:63 Organization and Support. The appellate board shall be part of the department of employment security for organizational purposes but shall operate independently of that department. [The commissioner, after consultation with the appellate board chair, shall develop a cooperative working agreement outlining the annual funding for the appellate board which shall be provided for and administered by the commissioner. The agreement shall also describe] All clerical personnel, facilities, space, supplies, services, and other support necessary to the functioning of the appellate board [~~which~~] shall be determined by, provided for, and administered by, the commissioner.

I. The appellate board shall hear appeals from decisions of the appeal tribunal or final decisions of the commissioner under RSA 282-A:95. An appeal must be filed with the appellate board or, if filed by mail, postmarked within 14 calendar days of the date of mailing of:

(a) The commissioner's decision on a request for reopening or the final decision of the commissioner; or

(b) The appeal tribunal's decision on an appeal which had been remanded by the appellate board, in which case a request for reopening is not required.

116:4 Board Sessions. Amend the introductory paragraph of RSA 282-A:66, I to read as follows:

I. The appellate board, while in session, shall consist of 3 members designated by the chair. No 2 members shall be from the same category of representation. In addition, for appeals of final decisions of the commissioner under RSA 282-A:95, the members shall consist of the chair or vice-chair, one business management representative, and one labor representative. Any party aggrieved by a decision of the appeal tribunal may appeal. The parties to such appeal shall be the claimant, all interested parties as defined in this chapter, and the commissioner. The appellate board shall adopt rules of procedure pursuant to RSA 541-A. It shall not require written briefs. The appellate board shall:

I. A formal hearing on each such appeal shall be conducted according to the rules adopted by the commissioner, whether or not such rules conform to common law or statutory rules of evidence and other technical rules of procedure; and a complete record of such hearings shall be made and kept by the commissioner except that such record may be destroyed as provided in RSA 282-A:107-135. The record shall include the evidence, the commissioner's findings of fact and [~~his~~] decision. A copy of the decision of the commissioner shall be sent by certified mail, return receipt requested, to the last address according to the records of the department, of each employing unit or employer affected thereby.

II. An employer or employing unit who is aggrieved by the decision of the commissioner may, within 20 days of the date of mailing of the commissioner's decision request that the commissioner reconsider the decision or that the commissioner order a new hearing specifying in the request the grounds therefor. Notice of the commissioner's decision on such request shall be sent as provided in paragraph I.

282-A:97 Appeal to [~~Court~~] Appellate Board. The commissioner's decision on said appeal shall be final and conclusive as to the liability of the employing unit or employer or both unless an appeal therefrom is filed in accordance with the provisions of [~~RSA 282-A:67~~] RSA 282-A:64.

116:7 Application; Appointment of New Board Members; Initial Appointments. Members of the appellate board serving on the effective date of this act shall serve out the remainder of their terms. Board members on the effective date of this act shall be eligible for recommendation and appointment pursuant to the provisions of RSA 282-A:62 as inserted by section 1 of this act, provided that no person shall be appointed who has served 8 consecutive years, or if the term of an appointment would result in the person exceeding 8 consecutive years on the board. In order to provide for staggered terms for each representative category, and upon a vacancy, the terms of initial appointments shall be made as follows:

I. In 2000, a business management representative for 2 years, a business management representative for 4 years, a labor representative for 4 years, and a public representative for 4 years.

II. In 2001, an attorney representative for one year, an attorney representative for 3 years, and a public representative for one year.

The Department of Employment Security indicates this bill will increase state restricted revenue and expenditures by $5,480 in FY 2001 and by $10,960 in FY 2002 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.

The Department determined that the fiscal impact of this bill includes restricted revenue from federal administrative funds made available by the U.S. Department of Labor for the Department to offset costs for tax hearings, training, Board compensation, travel, and miscellaneous. Tax hearings, assuming one per month, are expected to cost $6,000 (twelve months x $500 in member compensation). Training for the six members are expected to cost an additional $1,000. Board costs, based on an average of 20 days per year for unemployment compensation appeals, would require additional payments to the members of $3,000, and $960 for travel and miscellaneous expenses.

Since this bill is effective January 1, 2001, the Department assumed that one-half total expenditures and offsetting revenue would be incurred in FY 2001.