SLS 14RS-897 ORIGINAL 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, 2014 SENATE BILL NO. 594 BY SENATOR CROWE UNEMPLOYMENT COMP. Prohibits an employer benefit account being relieved from payment when the employer failed to timely respond to request for information. (See Act) AN ACT1 To amend and reenact R.S. 23:1625.1(A)and (B) and to enact R.S. 23:1553.1, relative to2 unemployment compensation; to provide for the determination of claims; to provide3 for payment of benefits; to provide for prohibitions for noncharging under certain4 circumstances; to provide for definitions; to provide for retroactive effect; and to5 provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 23:1625.1(A) and (B) is hereby amended and reenacted and R.S.8 23:1553.1 is hereby enacted to read as follows:9 §1553.1. Prohibitions of noncharging due to employer fault10 A. As used in this Section, the following words, terms and phrases shall11 have the meaning ascribed to them in this Section:12 (1) "Employer's reserve account" means that account which contains13 the employer's reserve as provided for in R.S. 23:1536(D)(1).14 (2) "Reimbursable employer's account" means that accounting method15 provided for in R.S. 23:1552(A).16 B. Notwithstanding the provisions of R.S. 23:1601 and R.S. 23:1625.1,17 SB NO. 594 SLS 14RS-897 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. no contributing employer's reserve account or reimbursable employer's account1 shall be relieved of any charges for benefits relating to an improper benefit2 payment to a claimant established after October 21, 2013, if the improper3 benefit payment was made because the employer, or an agent of the employer,4 was at fault for failing to respond timely or adequately to the request of the5 administrator for information relating to a claim for benefits.6 C. Any determination under this Section shall be transmitted to the last7 known physical or electronic address provided by the employer and may be8 appealed in accordance with the provisions of R.S. 23:1629 et seq.9 D. The provisions of this Section shall be given retroactive effect to10 October 21, 2013.11 * * *12 §1625.1. Prompt determination of claims; duty of employers13 A. In making determinations of claims, the administrator shall require that14 information necessary for the prompt determination of claims be sought from each15 employer. Employers shall adequately and timely provide wage, employment, and16 separation information, and shall complete all forms and reports as requested by the17 administrator or his designee.18 (1) A response to such requests shall be timely if it is received within ten19 days from the date of mailing.20 (2) A response is adequate if it provides sufficient facts to enable the21 agency to make the correct determination. A response may not be considered22 inadequate if the agency failed to ask for all necessary information.23 B.(1) If an employer fails to provide information in a an adequate and24 timely manner without good cause, the employer shall be deemed to have abandoned25 its appeal rights as provided for in R.S. 23:1629 through 1634, and a determination26 to that effect shall be issued. Any appeal filed by such an employer, other than with27 regard to the timeliness of fulfilling its obligations in Subsection A of this Section,28 shall be dismissed, and such employer shall be liable for any resulting benefits paid,29 SB NO. 594 SLS 14RS-897 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. except as provided in Subsection C of this Section. If the employer's failure to1 adequately or timely respond results in an improper benefit payment, the2 employer shall also be subject to the provisions of R.S. 23:1553.1.3 * * *4 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Carla S. Roberts. DIGEST Crowe (SB 594) Present law provides that a former employee can be disqualified for unemployment benefits under certain circumstances. Present law provides that when a former employee is disqualified from receiving unemployment benefits, the employer's experience rating account shall not be charged under certain circumstances so long as the employer timely filed notice. Present law provides that in making determinations of unemployment claims, the administrator shall require that information necessary for the prompt determination of claims be sought from each employer. Present law provides that a response to such requests shall be timely if it is received within 10 days from the date of mailing. Proposed law retains present law but provides that a response is adequate if it provides sufficient facts to enable the agency to make the correct determination. Proposed law provides that a response may not be considered inadequate if the agency failed to ask for all necessary information. Proposed law provides that no contributing employer's reserve account or reimbursable employer's account shall be relieved of any charges for benefits relating to an improper benefit payment to a claimant established after October 21, 2013, if the improper benefit payment was made because the employer, or an agent of the employer, was at fault for failing to respond timely or adequately to the request of the administrator for information relating to a claim for benefits. Proposed law provides the following definitions: (1)"Employer's reserve account" means that employer's account which contains the amounts of money held in reserve to pay unemployment benefit claims to covered individuals who were employed by the employer. (2)"Reimbursable employer's account" means that accounting method used by the unemployment administrator to invoice the state, its political subdivisions, nonprofit organizations, and Indian tribes or tribal units for unemployment benefits paid to covered individuals who were employed by such entities. Effective retroactively to October 21, 2013. (Amends R.S. 23:1625.1(A) and (B); adds R.S. 23:1553.1)