SLS 12RS-498 ENGROSSED Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 604 BY SENATOR GARY SMITH UNEMPLOYMENT COMP. Provides relative to the eligibility for unemployment insurance benefits. (8/1/12) AN ACT1 To amend and reenact R.S. 23:1472(19)(a), relative to unemployment insurance benefits; to2 amend the definition of unemployment in the context of eligibility for unemployment3 insurance benefits; and to provide for related matters.4 Be it enacted by the Legislature of Louisiana:5 Section 1. R.S. 23:1472(19)(a) is hereby amended and reenacted to read as follows:6 ยง1472. Definitions7 As used in this Chapter, the following terms shall have the meaning ascribed8 to them in this Section, unless the context clearly indicates otherwise:9 * * *10 (19)(a) "Unemploym ent"--Any individual shall be deemed to be11 "unemployed" in any week during which he performs no services and with respect12 to which no wages are payable to him, or in any week of less than full-time work if13 the wages payable to him with respect to such week are less than his weekly benefit14 amount.15 (i) For the purpose of this Paragraph, any individual who bears a relationship16 of spouse, mother or mother-in-law, father or father-in-law, son or step-son or17 SB NO. 604 SLS 12RS-498 ENGROSSED Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. son-in-law, daughter or step-daughter or daughter-in-law, brother or brother-in-law,1 sister or sister-in-law, to a principal or controlling stockholder or a principal officer2 of a corporation, partnership, or proprietorship, or is himself a principal or3 controlling stockholder or a principal officer of a corporation, partnership, or4 proprietorship, shall not be deemed to be "unemployed" as provided for in this5 Paragraph, without first providing the administrator with whatever records or6 evidence the administrator may prescribe by regulation to provide proof and7 justification of such unemployment. However, the administrator shall not demand8 proof of the complete dissolution of the entire enterprise in order for the9 employee to be deemed unemployed.10 (ii) Any person meeting the criteria set forth in Item (i) of this11 Subparagraph who has for the first four of the last five quarters been listed as12 an employee and for whom unemployment insurance coverage premiums have13 been paid for that same period of time and, who, in addition, is no longer14 eligible to receive any remuneration or dividends from the enterprise for whom15 he previously worked, shall be considered to have met the criteria for16 unemployment.17 (iii) The administrator shall further prescribe regulations applicable to18 unemployed individuals making such distinctions in the procedures as to total19 unemployment, part-total unemployment, partial unemployment of individuals20 attached to their regular jobs, and other forms of short-time work, as the21 administrator deems necessary.22 * * *23 The original instrument was prepared by Mary Dozier O'Brien. The following digest, which does not constitute a part of the legislative instrument, was prepared by Carla S. Roberts. DIGEST Gary Smith (SB 604) Present law defines "unemployment" for purposes of collecting unemployment insurance benefits, listing several familial relationships that would preclude an individual from being deemed unemployed for the purpose of collecting unemployment insurance benefits. SB NO. 604 SLS 12RS-498 ENGROSSED Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law retains present law regarding the administrator's power to prescribe what constitutes proof of unemployment and further provides that the administrator shall not demand proof of dissolution of an entire enterprise in order to be deemed unemployed. Proposed law provides that if a person, who fits the familial criteria in present law excluding the individual from collecting unemployment insurance benefits, has been employed for the first four of the last five quarters, and for whom, for that same period of time, unemployment insurance premiums have been paid, shall be considered to have met the requirements for being unemployed. Effective August 1, 2012. (Amends R.S. 23:1472(19)(a)) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Labor and Industrial Relations to the original bill 1. Changes the criteria for unemployment from the "previous four quarters" to "the first four of the last five quarters".