HLS 22RS-981 ORIGINAL 2022 Regular Session HOUSE BILL NO. 657 BY REPRESENTATIVE DESHOTEL UNEMPLOYMENT COMP: Provides relative to the unemployment compensation maximum weekly benefit amount and extended benefits 1 AN ACT 2To amend and reenact R.S. 23:1474(I), 1592(A) and (E), and 1595 and to enact R.S. 3 23:1606, relative to unemployment compensation; to provide for the maximum 4 weekly benefit amount; to provide for a formula for the calculation of the weekly 5 benefit amount; to provide for the duration of benefits; to provide definitions; to 6 provide for extended benefits; to provide for the termination of extended benefits; 7 to provide for an effective date; to provide for the promulgation of rules; and to 8 provide for related matters. 9Be it enacted by the Legislature of Louisiana: 10 Section 1. R.S. 23:1474(I), 1592(A) and (E), and 1595 are hereby amended and 11reenacted and R.S. 23:1606 is hereby enacted to read as follows: 12 §1474. Administrator; Revenue Estimating Conference; "wages"; weekly benefit 13 amounts 14 * * * 15 I. The following table shall be applied by the administrator subsequent to his 16 determination of comparative balance, and applied trust fund balance range, in 17 compliance with this Section: Page 1 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 ProcedureApplied Trust Fund Balance Range Maximum Dollar Amount of "wages" under R.S. 23:1474 Formula for Computation of Benefits Maximum Weekly Benefit Amount 2 1 Less than seven hundred fifty million dollars Eight thousand five hundred dollars Apply R.S. 23:1592 without seven percent discount under R.S. 23:1592(C) to formula for computation of benefits Two hundred forty-nine eighty dollars 3 2 Equal to or greater than seven hundred fifty million dollars but less than one billion one hundred fifty million dollars Seven thousand seven hundred dollars Apply R.S. 23:1592 without seven percent discount under R.S. 23:1592(C) and without five percent discount under R.S. 23:1592(D), to formula for computation of benefits Two hundred seventy-five Three hundred six dollars Page 2 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 3 Equal to or greater than one billion one hundred fifty million dollars but less than one billion four hundred million dollars Seven thousand dollars Apply R.S. 23:1592 without seven percent discount under R.S. 23:1592(C) and without five percent discount under R.S. 23:1592(D), to formula for computation of benefits Two hundred eighty-two Three hundred thirteen dollars 2 4 Greater than one billion four hundred million dollars Seven thousand dollars Apply R.S. 23:1592 without seven percent discount under R.S. 23:1592(C) and without five percent discount under R.S. 23:1592(D), to formula for computation of benefits Three hundred twelve forty- three dollars 3 * * * Page 3 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 §1592. Weekly benefit amount 2 A.(1) The formula for the calculation of a claimant's weekly benefit amount 3 shall be determined each calendar year based upon the state average unemployment 4 rate, as defined in R.S. 23:1595, for the third quarter of the previous calendar year. 5 Whenever a claimant's base period wages for insured work is not less than one 6 thousand two hundred dollars, his weekly benefit amount shall be one twenty-fifth 7 of the average of his total wages for insured work paid during the four quarters of his 8 base period. This amount, if not a multiple of one dollar, shall be computed to the 9 next lowest multiple of one dollar. as follows: 10 (a) An amount equivalent to one-twelfth of the average of his total wages for 11 insured work paid during the four quarters of his base period when the state's average 12 unemployment rate is at or below five and one half percent. 13 (b) An amount equivalent to one-thirteenth of the average of his total wages 14 for insured work paid during the four quarters of his base period when the state's 15 average unemployment rate is above five and one half percent and at or below six 16 percent. 17 (c) An amount equivalent to one-fourteenth of the average of his total wages 18 for insured work paid during the four quarters of his base period when the state's 19 average unemployment rate is above six percent and at or below six and one half 20 percent. 21 (d) An amount equivalent to one-fifteenth of the average of his total wages 22 for insured work paid during the four quarters of his base period when the state's 23 average unemployment rate is above six and one half percent and at or below seven 24 percent. 25 (e) An amount equivalent to one-sixteenth of the average of his total wages 26 for insured work paid during the four quarters of his base period when the state's 27 average unemployment rate is above seven percent and at or below seven and one 28 half percent. Page 4 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 (f) An amount equivalent to one-seventeenth of the average of his total 2 wages of insured work paid during the four quarters of his base period when the 3 state's average unemployment rate is above seven and one half percent and at or 4 below eight percent. 5 (g) An amount equivalent to one-eighteenth of the average of his total wages 6 for insured work paid during the four quarters of his base period when the state's 7 average unemployment rate is above eight percent and at or below eight and one half 8 percent. 9 (h) An amount equivalent to one-nineteenth of the average of his total wages 10 for insured work paid during the four quarters of his base period when the state's 11 average unemployment rate is above eight and one half percent and at or below nine 12 percent. 13 (i) An amount equivalent to one-twentieth of the average of his total wages 14 for insured work paid during the four quarters of his base period when the state's 15 average unemployment rate is above nine percent. 16 (2) If the amount provided for in Paragraph (1) of this Subsection is not a 17 multiple of one dollar, it shall be computed to the next lowest multiple of one dollar. 18 * * * 19 E. In no event shall the weekly amount paid in accordance with this Section 20 be more than three hundred twelve forty-three dollars. 21 * * * 22 §1595. Duration of benefits 23 A.(1) Any Anytime the state's average unemployment rate is at or below five 24 and one half percent, any otherwise eligible individual shall be entitled during any 25 benefit year to a total amount of benefits equal to twenty-six twelve times his weekly 26 benefit amount as determined pursuant to R.S. 23:1592 provided that such total 27 amount of benefits, if not a multiple of one dollar, shall be computed to the nearest 28 multiple of one dollar. Page 5 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 (2)(a) In addition to the amount provided in Paragraph (1) of this Subsection 2 and when the state's average unemployment rate is above five and one half percent, 3 any otherwise eligible individual shall be entitled an additional amount of benefits 4 equivalent to his weekly benefit amount as determined pursuant to R.S. 23:1592 5 times the number of half a percent increments that the state's average unemployment 6 rate exceeds five and one half percent, provided that such total amount of benefits, 7 if not a multiple of one dollar, shall be computed to the nearest multiple of one 8 dollar. 9 (b) The additional amount provided in Subparagraph (a) of this Paragraph 10 shall not exceed an amount equivalent to eight times his weekly benefit amount. 11 B.(1) No claimant shall receive a benefit check for any week beyond the 12 number of weeks computed on his initial claim unless that claimant is participating 13 in a program providing partial unemployment as set forth in R.S. 23:1472(19)(a) or 14 has been paid wages for part-time or full-time work. 15 (2) Further, if a base period employer has provided severance pay, which 16 when prorated weekly is an amount which equals or exceeds the claimant's weekly 17 benefit amount, the claimant's benefit entitlement computed pursuant to the 18 provisions of this Subsection shall be reduced by one week for each week of 19 severance pay, provided that no claimant's entitlement shall be reduced to less than 20 one week. 21 B.C.(1) For the purposes of this Section, "wages" shall be counted as "wages 22 for insured work" for the benefit purposes with respect to any benefit year only if the 23 benefit year begins subsequent to the date on which the employing unit by whom the 24 wages were paid became an employer within the meaning of this Chapter. 25 (2) For the purposes of this Section, "state average unemployment rate" 26 means the average of the three months for the most recent third calendar year quarter 27 of the seasonally adjusted unemployment rates as published by the Louisiana 28 Workforce Commission, who shall be responsible for collecting and publishing 29 unemployment rate data. Page 6 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 D. The Louisiana Workforce Commission shall promulgate all rules and 2 regulations as are necessary for the purposes of this Section. 3 * * * 4 §1606. Extended benefits for training; definitions; eligibility; weekly extended 5 benefit amount; total extended benefit amount; termination of extended 6 benefits 7 A. For the purposes of this Section, the following terms have the meanings 8 ascribed to them: 9 (1) "Eligibility period of an individual" means the period consisting of the 10 weeks in an individual's benefit year which begin in an extended benefit period and, 11 if his benefit year ends within such extended benefit period, any weeks thereafter 12 which begin in such period. 13 (2) "Exhaustee" means an individual who, with respect to any week of 14 unemployment in his eligibility period, either: 15 (a) Has received, prior to such week, all of the regular benefits that were 16 available to him in accordance with this Chapter or any other unemployment 17 insurance law of any state approved by the United States Secretary of Labor under 18 Section 3304 of the Internal Revenue Code of 1954, 26 U.S.C. §3304, including 19 dependent's allowances and benefits payable to federal civilian employees and ex- 20 servicemen pursuant to 5 U.S.C. Chapter 85, in his current benefit year that includes 21 such week. For the purposes of this Paragraph, an individual shall be considered to 22 have received all of the regular benefits that were available to him although as a 23 result of a pending appeal with respect to wages or employment, or both, that were 24 not considered in the original monetary determination in his benefit year, he may 25 subsequently be determined to be entitled to added regular benefits. 26 (b) His benefit year having expired prior to such week, has no wages, or has 27 insufficient wages or employment, or both, on the basis of which he could establish 28 a new benefit year that would include such week if all of the following apply: Page 7 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 (i) He has no right to unemployment insurance benefits or allowances, as the 2 case may be, under the Railroad Unemployment Insurance Act, 45 U.S.C. §351 et 3 seq., or under such other federal laws as are specified in regulations issued by the 4 United States secretary of labor. 5 (ii) He has not received and is not seeking unemployment insurance benefits 6 under the unemployment insurance law of Canada or the Virgin Islands, but if the 7 individual is seeking such benefits and the appropriate agency finally determines that 8 the individual is not entitled to benefits under such law, the individual shall be 9 considered an exhaustee if the other provisions of this definition are met. Provided, 10 that the reference in this Subparagraph to the Virgin Islands shall be effective on the 11 day after the day on which the United States secretary of labor approves under 12 Section 3304(a) of the Internal Revenue Code of 1954, 26 U.S.C. §3304 (a), an 13 unemployment compensation law submitted to the secretary of the Virgin Islands for 14 approval. 15 (3) "Extended benefits" means benefits payable to an individual under the 16 provisions of this Section for weeks of unemployment in his eligibility period. 17 (4) "Extended benefit period" means a period which begins upon exhaustion 18 of regular unemployment benefits and ends upon the exhaustion or disqualification 19 for extended benefits pursuant to this Section. 20 (5) "Regular benefits" means benefits payable to an individual in accordance 21 with this Chapter or in accordance with the Unemployment Insurance Law of any 22 state, approved by the United States secretary of labor under Section 3304 of the 23 Internal Revenue Code of 1954, 26 U.S.C. §3304, including benefits payable to 24 federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. Chapter 85, 25 other than extended benefits. 26 B. An individual shall be eligible to receive extended benefits with respect 27 to any week of unemployment in his eligibility period, only if the administrator finds 28 that with respect to such week the following: 29 (1) He is an exhaustee as defined in this Section. Page 8 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 1 (2) He is enrolled and participating in an approved training program as 2 provided in R.S. 23:1602 at the time his regular benefits are exhausted. 3 C. The weekly extended benefit amount payable to an individual for a week 4 of total unemployment in his eligibility period shall be an amount equal to the 5 weekly benefit amount determined pursuant to R.S. 23:1592 payable to him during 6 his benefit year with respect to which he last became an exhaustee. 7 D. The total extended benefit amount payable to any eligible individual with 8 respect to any one benefit year shall be eight times his weekly benefit amount which 9 was payable to him in accordance with this Chapter for a week of total 10 unemployment in such benefit year. 11 E. Except when the result would be inconsistent with the provisions of this 12 Section and as provided in the regulation of the administrator, the provisions of this 13 Chapter which apply for, or the payment of, regular benefits shall apply to claims for 14 and the payment of, extended benefits. 15 F. An individual shall not be eligible for extended benefits for any week if 16 the administrator determines that the individual is no longer enrolled or participating 17 in the training program or the individual has completed the training program. 18 Section 2. This Act shall take effect and become operative when the state's average 19unemployment rate, as defined in R.S. 23:1595, is less than five and one-half percent for two 20consecutive calendar quarters and the programs authorized by the Coronavirus Aid, Relief, 21and Economic Security Act of 2020, as amended, have expired. 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 657 Original 2022 Regular Session Deshotel Abstract: Provides relative to the unemployment compensation weekly benefit amount and provides for extended benefits for claimants. Present law establishes the procedure which shall be applied by the administrator in determining the maximum weekly benefit amount. Page 9 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 (1)Procedure 1: When the applied trust fund balance is less than $750 million, the maximum benefit amount is $249. (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 benefit amount is $275. (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 $282. (4)Procedure 4: When the applied trust fund balance is greater than $1.4 billion, the maximum benefit amount is $312. Proposed law changes Procedure 1 by increasing the weekly maximum benefit amount from $249 to $280. Proposed law changes Procedure 2 by increasing the weekly maximum benefit amount from $275 to $306. Proposed law changes Procedure 3 by increasing the weekly maximum benefit amount from $282 to $313. Proposed law changes Procedure 4 by increasing the weekly maximum benefit amount from $312 to $343. Present law provides that whenever a claimant's based period wages for insured work is not less than $1,200, his weekly benefit amount shall be one twenty-fifth of the average of his total wages for insured work paid during the four quarters of his base period. Proposed law provides that the formula for the calculation of a claimant's weekly benefit amount shall be determined each calendar year based upon the state average unemployment rate, as defined in present law, for the third quarter of the previous calendar year. Proposed law provides that whenever a claimant's base period wages for insured work is not less than $1,200, his weekly benefit amount shall be as follows: (1)An amount equivalent to 1/12 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is at or below 5.5%. (2)An amount equivalent to 1/13 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 5.5% and at or below 6%. (3)An amount equivalent to1/14 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 6% and at or below 6.5%. (4)An amount equivalent to 1/15 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 6.5% and at or below 7%. (5)An amount equivalent to 1/16 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 7% and at or below 7.5%. (6)An amount equivalent to 1/17 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 7.5% and at or below 8%. Page 10 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-981 ORIGINAL HB NO. 657 (7)An amount equivalent to 1/18 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 8% and at or below 8.5%. (8)An amount equivalent to 1/19 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 8.5% and at or below 9%. (9)An amount equivalent to 1/20 of the average of his total wages for insured work paid during the four quarters of his base period when the state's average unemployment rate is above 9%. Proposed law provides that if the amount provided for in proposed law is not a multiple of one dollar, it shall be computed to the next lowest multiple of one dollar. Present law provides that in no event shall the weekly benefit amount paid exceed $312. Proposed law increases the weekly benefit amount from $312 to $343. Present law provides that any otherwise eligible individual shall be entitled to receive unemployment compensation benefits for 26 weeks during a 12 month period. Proposed law changes the number of weeks from 26 to 12. Proposed law otherwise retains present law. Proposed law provides that when the state's average unemployment rate is above 5.5%, any otherwise eligible individual shall be entitled to an additional amount of benefits equivalent to his weekly benefit amount as determined pursuant to present law times the number of 0.5% increments that the state's average unemployment rate exceeds 5.5%, provided that such total amounts of benefits, if not a multiple of one dollar, shall be computed to the nearest multiple of one dollar. Proposed law defines "eligibility period of an individual", "exhaustee", "extended benefits", "extended benefit periods", and "regular benefits". Proposed law provides for extended benefits for up to eight weeks for an individual who has exhausted their regular benefits and is enrolled and participating in an approved training program. Proposed law further provides that the weekly extended benefit amount is equal to the individual's weekly benefit amount payable to such person during his benefit year. Effective when the state's average unemployment rate, as defined in present law, is less than 5.5% for two consecutive calendar quarters and the programs authorized by the 2020 Coronavirus, Aid, Relief, and Economic Security Act have expired. (Amends R.S. 23:1474(I), 1592(A) and (E), and 1595; Adds R.S. 23:1606) Page 11 of 11 CODING: Words in struck through type are deletions from existing law; words underscored are additions.