6/5/01...1419s

2001 SESSION

01-0395

08/10

HOUSE BILL 570

COMMITTEE: Labor, Industrial and Rehabilitative Services

AMENDED ANALYSIS

This bill makes adjustments to the maximum benefit amounts payable under the unemployment compensation law effective July 1, 2001 and June 30, 2002; increases certain late filing fees; eliminates certain required annual audits of funds administered under RSA 282-A; and changes certain timing requirements under the unemployment compensation law.

This bill also repeals the prospective repeal of RSA 282-A:87, IV relative to designating a portion of employer contributions for unemployment compensation to the commissioner's contingent fund. It establishes a new dedicated fund to be used to fund the job training program for economic growth using a portion of the employers' administrative contribution to the unemployment compensation trust fund. Any moneys in the training fund which are not expended within 2 years from the end of the fiscal year in which they accrue will lapse into the contingent fund of the commissioner of employment security.

This bill also changes the membership of the grant review committee of the job training program for economic growth, adds new eligibility requirements for training grants, raises the amount available for administering the program, and changes the grant performance reporting procedure.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

6/5/01...1419s

01-0395

08/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

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

133:1 Unemployment Compensation; Maximum Weekly Benefit Amount and Maximum Total Amount of Benefits Payable; July 1, 2001. RSA 282-A:25, I is repealed and reenacted to read as follows:

I. The maximum weekly benefit amount and maximum benefits payable to an eligible individual, the first day of whose individual benefit year is on or after the effective date of this paragraph, shall be determined by the individual's annual earnings, of which in each of 2 calendar quarters the individual must have earned not less than $1,400, as follows:

Annual Earnings of Maximum Weekly Maximum

Not Less Than Benefit Amount Benefits

$2,800 $32 $ 832

3,100 35 910

3,400 39 1,014

3,900 45 1,170

4,200 48 1,248

4,500 52 1,352

4,800 55 1,430

5,100 59 1,534

5,600 64 1,664

6,100 69 1,794

6,600 75 1,950

7,000 80 2,080

7,400 83 2,158

7,800 88 2,288

8,200 92 2,392

8,600 96 2,496

9,000 101 2,626

9,500 105 2,730

10,000 110 2,860

10,500 115 2,990

11,000 119 3,094

11,500 123 3,198

12,500 130 3,380

13,500 140 3,640

14,500 151 3,926

15,500 158 4,108

16,500 168 4,368

17,500 178 4,628

18,500 189 4,914

19,500 199 5,174

20,500 209 5,434

21,500 219 5,694

22,500 229 5,954

23,500 240 6,240

24,500 250 6,500

25,500 260 6,760

26,500 270 7,020

27,500 280 7,280

28,500 290 7,540

29,500 301 7,826

30,500 311 8,086

31,500 321 8,346

32,500 331 8,606

133:2 Unemployment Compensation; Maximum Weekly Benefit Amount and Maximum Total Amount of Benefits Payable; June 30, 2002. Amend RSA 282-A:25, I to read as follows:

I. The maximum weekly benefit amount and maximum benefits payable to an eligible individual, the first day of whose individual benefit year is on or after the effective date of this paragraph, shall be determined by the individual's annual earnings, of which in each of 2 calendar quarters the individual must have earned not less than $1,400, as follows:

Annual Earnings of Maximum Weekly Maximum

Not Less Than Benefit Amount Benefits

$2,800 $32 $ 832

3,100 35 910

3,400 39 1,014

3,900 45 1,170

4,200 48 1,248

4,500 52 1,352

4,800 55 1,430

5,100 59 1,534

5,600 64 1,664

6,100 69 1,794

6,600 75 1,950

7,000 80 2,080

7,400 83 2,158

7,800 88 2,288

8,200 92 2,392

8,600 96 2,496

9,000 101 2,626

9,500 105 2,730

10,000 110 2,860

10,500 115 2,990

11,000 119 3,094

11,500 123 3,198

12,500 130 3,380

13,500 140 3,640

14,500 151 3,926

15,500 158 4,108

16,500 168 4,368

17,500 178 4,628

18,500 189 4,914

19,500 199 5,174

20,500 209 5,434

21,500 219 5,694

22,500 229 5,954

23,500 240 6,240

24,500 250 6,500

25,500 260 6,760

26,500 270 7,020

27,500 280 7,280

28,500 290 7,540

29,500 301 7,826

30,500 311 8,086

31,500 321 8,346

32,500 331 8,606

33,500 342 8,892

133:3 Unemployment Compensation; Contribution Rates; Advisory Council on Unemployment Compensation. Amend RSA 282-A:87, IV(e) to read as follows:

(e) In the event employment security programs are devolved to the state by the federal government [prior to July 1, 2002], the advisory council on unemployment compensation shall meet and review the administrative funding provisions provided in such legislation and advise the commissioner whether to submit legislation to repeal the reserve fund [prior to July 1, 2002].

133:4 Unemployment Compensation; Late Filing Fee; Filing Extensions. Amend RSA 282-A:142 to read as follows:

282-A:142 Late-Filing Fee; Filing Extensions. Commencing with reports due beginning with the third calendar quarter of [1991] 2001:

I. If any employer subject to payment of contributions as provided in RSA 282-A:69, I, fails to file any required report on the date on which it is due, as prescribed by the commissioner of the department of employment security in a rule, [he] the employer shall pay a fee for such failure equal to 10 percent of the contributions due thereon but not less than [$10] $25 for each such failure.

II. If any employer electing to reimburse the fund as provided in RSA 282-A:69, II fails to file any required report on the date on which it is due, as prescribed by the commissioner of the department of employment security in a rule, [he] the employer shall pay a fee for such failure equal to .001 of the gross wages paid during the quarter covered by such report but not less than [$10] $25 for each such failure.

III. The state, county, city, town, or other political subdivision that elects to reimburse the fund pursuant to RSA 282-A:70 and RSA 282-A:71, I shall pay a fee of [$10] $25 for each failure to file any report on the date on which it is due as prescribed by the commissioner of the department of employment security in a rule.

IV. Upon timely application and payment of a fee of [$25] $50, the time for filing any such report may be extended 30 days. All fees shall be paid into the contingent fund provided in RSA 282-A:140.

V. All filing fees may be collected in any manner provided for the collection of contributions in this subdivision or in RSA 282-A:161-168 or by RSA 80.

133:5 Termination of the Administrative Contribution. Amend 1996, 49:7, III to read as follows:

III. Paragraph II of section 6 of this act shall take effect July 1, [2002] 2004.

133:6 Repeal. The following are repealed:

I. RSA 282-A:112, III, relative to annual audits by private firms.

II. RSA 282-A:140, I(b), relative to annual audits by private firms.

133:7 Administrative Contribution to the Training Fund. Amend RSA 282-A:87, IV(a) to read as follows:

IV.(a)(1) Each employer subject to payment of contributions pursuant to RSA 282-A:69, I shall have its rate reduced by 1/10 of one percent beginning in the second quarter of 1996. An administrative contribution equal to the amount of this reduction shall be paid by all such employers.

(2) Commencing July 1, 2001, after deduction of all costs incurred in the collection of the administrative contribution, 1/3 of the quarterly administrative contribution collected, not to exceed $1,000,000 annually, shall be deposited each quarter in the fund established by RSA 282-A:138-a and shall be expended only as provided by and for the purposes provided in that section. The remaining quarterly administrative contribution collected shall be [and] deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by and for the purposes provided in that section, and not for any other purpose.

(3) In the event the unemployment compensation trust fund fails to equal or exceed $275,000,000 throughout the preceding calendar quarter, the funds referred to in subparagraph IV(a)(2) shall not be deposited as provided in that section but shall be deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by that section, and not for any other purpose.

133:8 New Section; Training Fund Established. Amend RSA 282-A by inserting after section 138 the following new section:

282-A:138-a Training Fund.

I. There is hereby created in the state treasury a special fund to be known as the training fund. Commencing January 1, 2002, the moneys in this fund may be used, solely as determined by the commissioner of the department of employment security in accordance with rules and guidelines adopted by the commissioner, for funding training under the job training program for economic growth, established under RSA 188-F:49-56. Rulemaking authority relative to administration of the grant award process shall remain with the commissioner of regional community-technical colleges pursuant to RSA 188-F:52, II(a).

II. The commissioner of employment security shall act as the fiscal agent for moneys deposited in the training fund. All costs incurred by the commissioner acting as fiscal agent of the training fund shall be paid from such fund.

III. Any interest earned on the moneys in this fund shall be deposited in the fund established by RSA 282-A:140 and shall be expended only as provided by that section, and not for any other purpose.

IV. Any moneys paid into the training fund during a calendar year, which are either not obligated by June 30 of the following year or spent by June 30 of the year thereafter, shall lapse and be deposited into the fund established by RSA 282-A:140 and shall be expended only as provided by that section and not for any other purpose.

133:9 Grant Review Committee. RSA 188-F:52, II (b) is repealed and reenacted to read as follows:

(b) Seat a grant review committee consisting of the following:

(1) The commissioner of the department of regional community-technical colleges, or designee.

(2) The commissioner of the department of employment security, or designee.

(3) The commissioner of the department of resources and economic development, or designee.

(4) One member representing labor, nominated by the commissioner of regional community-technical colleges and approved by the board of trustees.

(5) Three members representing business and industry. The governor, senate president, and speaker of the house of representatives shall each appoint one such member. No individual shall concurrently serve as a representative of business and industry while a member of the Workforce Opportunity Council or an employee of any business represented thereon, or while a member or employee of any other entity represented on the grant review committee.

(6) One senator appointed by the senate president.

(7) One representative appointed by the speaker of the house of representatives.

(8) The president of the Workforce Opportunity Council, Inc.

133:10 New Paragraphs; Additional Eligibility for Training Grants. Amend RSA 188-F:53 by inserting after paragraph VI the following new paragraphs:

VII. Intent by a business to locate within the state shall be established to the satisfaction of the grant review committee. A minimum requirement for intent to be established shall be:

(a) Proof of substantial investment or a binding contractual obligation consistent with such intent;

(b) The lease or purchase of real estate or equipment within the state necessary for the planned move; or

(c) Such other requirement as may be established under rules adopted by the commissioner of regional community-technical colleges.

VIII. Submission of documents to substantiate proof of intent by a business to locate within the state shall be in accordance with rules adopted by the commissioner of regional community-technical colleges.

IX. No grant shall be made to the state including the state university system.

X. No grant shall be made to any county, city, town, or other political subdivision which has not currently elected to pay contributions pursuant to RSA 282-A:71, II.

XI. No grant shall be made to any organization or group of organizations, described in section 501(c)(3) and exempt under section 501(a) of the Internal Revenue Code which has not currently elected to pay contributions pursuant to RSA 282-A:69, II.

133:11 Cap on Administrative Costs. RSA 188-F:54, IV is repealed and reenacted to read as follows:

IV. The department shall be authorized to use no more than 10 percent, or $100,000, of any moneys received from the training fund established at RSA 282-A:138-a, whichever is less, to administer this program.

133:12 Performance Criteria and Reporting. RSA 188-F:56, I is repealed and reenacted to read as follows:

I. No later than April 1, 2002, the grant review committee shall establish performance criteria. The committee shall submit annually at the end of each fiscal year, to the commissioner of the department of regional community-technical colleges, the commissioner of the department of employment security, the governor, the senate president, the speaker of the house of representatives and the fiscal committee of the general court a report indicating the level of performance achieved through the program. Performance indicators shall include, at a minimum, the number of existing jobs retained, the number of existing employees retained, and the number of new jobs created, as a result of this program.

133:13 Repeal. The following are repealed:

I. RSA 282-A:87, IV (e), relative to advisory council role if employment security programs devolve to the state.

II. 1996, 49:6, II, relative to designating a portion of employer contributions for unemployment compensation to the contingent fund.

III. 1996, 49:7, III, relative to effective date of paragraph II of section 6.

133:14 New Subparagraph; Training Fund. Amend RSA 6:12, I by inserting after subparagraph (dddd) the following new subparagraph:

(eeee) Moneys deposited in the training fund established by RSA 282-A:138-a.

133:15 Effective Date.

I. Section 2 of this act shall take effect June 30, 2002.

II. Section 6 of this act shall take effect upon its passage.

III. Paragraphs I and III of section 13 of this act shall take effect 60 days after its passage.

(Approved: June 29, 2001)

(Effective Date: I. Section 2 shall take effect June 30, 2002