Louisiana 2021 2021 Regular Session

Louisiana House Bill HB610 Comm Sub / Analysis

                    DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part of the
legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 610 Engrossed	2021 Regular Session	Lyons
Abstract: Provides relative to the maximum weekly benefit amount for unemployment benefits and
creates a back-to-work enhancement program.
Present law provides that the administrator shall apply the proper procedure found in present law to
the next calendar year beginning January 1
st
 for maximum dollar amount of "wages", maximum
weekly benefit amount, with any applicable discounts under present law, and the formula for
computation of benefits. 
Proposed law provides that the administrator shall apply the proper procedure found in present law
to the next calendar year beginning January 1
st
 for maximum dollar amount of "wages", the
maximum weekly benefit amount, with any applicable discounts under present law, and publish
annually the formula for computation of benefits. 
Present law provides a table, containing different categories such as, the different procedures, applied
trust fund balance range, maximum dollar amount of "wages", the formula for computation of
benefits, and the maximum weekly benefit amount, that the administrator shall apply when making
the determination for the comparative balance and applied trust fund balance range.  
Present law provides in the table found in present law the formula for computation of benefits, which
is to apply present law without the seven percent discount found in present law and then multiply
by one point five percent and then multiply such amount by one point three percent.
Proposed law deletes the multiplication portion of the formula calculation and instead adds 
the phrase "to formula for computation of benefits".
Present law establishes the procedure which shall be applied by the administrator in determining the
maximum weekly benefit amount.
(1)Procedure 1:  When the applied trust fund balance is less than $750 million, the maximum
benefit amount is $221.
(2)Procedure 2:  When the applied trust fund balance is equal to or greater than $750 million
but less than $1.15 billion, the maximum weekly benefit amount is $247.
(3)Procedure 3:  When the applied trust fund balance is equal to or greater than $1.15 billion
but less than $1.4 billion, the maximum benefit amount is $258. (4)Procedure 4:  When the applied trust fund balance is greater than $1.4 billion, the maximum
benefit amount is $284.
Proposed law changes Procedure 1 by increasing the weekly maximum benefit amount from $221
to $249.
Proposed law changes Procedure 2 by increasing the weekly maximum benefit amount from $247
to $275.
Proposed law changes Procedure 3 by increasing the weekly maximum benefit amount from $258
to $282.
Proposed law changes Procedure 4 by increasing the weekly maximum benefit amount from $284
to $312.
Present law provides that in no event shall the weekly amount paid exceed $284.
Proposed law increases the weekly benefit amount from $284 to $312.
Proposed law creates a back-to-work enhancement program.  
Proposed law provides that the Louisiana Workforce Commission (LWC) may make a one-time
lump sum payment to each individual who was eligible to receive Federal Pandemic Unemployment
Compensation and who meets all of the following requirements:
(1)The individual was eligible for Federal Pandemic Unemployment Compensation for any
week beginning after the date of enactment of proposed law.
(2)The individual is no longer eligible, as determined by the LWC, to receive Federal Pandemic
Unemployment Compensation as a result of earnings due to being employed.
(3)The individual was verified by his employer pursuant to proposed law.
(4)The individual is employed for wages equivalent to an annual salary of not more than
$75,000 and he remains employed with an intent to continue such employment.
(5)The employee has not previously received a back-to-work incentive pursuant to proposed
law.
Proposed law  provides that if an individual, on average, has worked at least 30 hours or more per
week during the qualifying period, he shall be paid $1000 in a lump sum amount.  Proposed law
further provides that if an individual, on average, has worked at least 10 hours or more in a week,
but not more than 20 hours per week, during the qualifying period, he shall be paid in a lump sum
amount of $500.   Proposed law provides that for the purpose of proposed law, the term "qualifying period" means,
with respect to an individual, a period beginning on the date the individual commenced employment
and extending at least 24 consecutive weeks from such date.
Proposed law provides that no lump sum payment may be made to any individual pursuant  to
proposed law with respect to a qualifying period beginning on or after July 1, 2021.
Proposed law provides that before making a lump sum payment to an individual pursuant to
proposed law, the LWC shall require verification from the individual's employer all of the following:
(1)The individual's employment status.
(2)The wages paid to the individual during the qualifying period.
(3)The hours the individual worked during the qualifying period.
Proposed law provides that the LWC may not provide more than one payment to an individual. 
Proposed law  further provides that the LWC may not provide unemployment benefits to a qualifying
individual for a period of 26 weeks following acceptance of a back-to-work incentive.
Proposed law provides that the La. Dept. of Treasury, in conjunction with the LWC, shall administer
the program and distribute the funds from the state's unemployment trust fund.  Proposed law further
provides that the La. Dept. of Treasury and the LWC, respectively, shall promulgate rules and
regulations necessary for the implementation of proposed law.
(Amends R.S. 23:1474(G)(3)(b) and (I) and 1592(E); Adds R.S. 23:1475)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Labor and Industrial Relations
to the original bill:
1. Make technical changes.
2. Delete proposed law that created a new determination for the maximum weekly benefit
amount.
3. Change how the formula for computation of benefits is applied and calculated.
4. Provide an effective date of January 1, 2022.
5. Provide for an increase in the maximum weekly benefit amount.
6. Restore provisions in present law that referred to the weekly benefit amount.
7. Create a back-to-work enhancement program to provide a monetary incentive for
individuals who meet certain requirements.