Maryland 2025 Regular Session

Maryland House Bill HB554 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0554
6	6
7	7	HOUSE BILL 554
8	8	K2 5lr2051
9	9	CF 5lr2118
10	10	By: Delegate Charkoudian
11	11	Introduced and read first time: January 22, 2025
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Unemployment Insurance Modernization Act of 2025 2
19	19
20	20	FOR the purpose of repealing and establishing the methodology used to calculate the 3
21	21	weekly benefit amount; altering the taxable wage base used to determine employer 4
22	22	contributions to the Unemployment Insurance Trust Fund, the dependent allowance, 5
23	23	and the amount of earned wages subtracted from a weekly benefit amount; requiring 6
24	24	the Maryland Department of Labor, on or before a certain date each year, to 7
25	25	determine and make available online the State annual average wage applicable to 8
26	26	the rate of contribution; requiring the Secretary of Labor to set the taxable wage base 9
27	27	and the maximum weekly benefit amount in a certain manner for certain years; and 10
28	28	generally relating to unemployment insurance. 11
29	29
30	30	BY repealing 12
31	31	Article – Labor and Employment 13
32	32	Section 8–803 14
33	33	Annotated Code of Maryland 15
34	34	(2016 Replacement Volume and 2024 Supplement) 16
35	35
36	36	BY repealing and reenacting, with amendments, 17
37	37	Article – Labor and Employment 18
38	38	Section 8–607(b), (c), and (d)(1) and 8–804 19
39	39	Annotated Code of Maryland 20
40	40	(2016 Replacement Volume and 2024 Supplement) 21
41	41
42	42	BY adding to 22
43	43	Article – Labor and Employment 23
44	44	Section 8–803 24
45	45	Annotated Code of Maryland 25
46	46	(2016 Replacement Volume and 2024 Supplement) 26
47	47
48	48	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 27 2 HOUSE BILL 554
49	49
50	50
51	51	That Section(s) 8–803 of Article – Labor and Employment of the Annotated Code of 1
52	52	Maryland be repealed. 2
53	53
54	54	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 3
55	55	as follows: 4
56	56
57	57	Article – Labor and Employment 5
58	58
59	59	8–607. 6
60	60
61	61	(b) (1) Subject to paragraph (2) of this subsection, the taxable wage base is the 7
62	62	[first $8,500 in wages] AMOUNT SET UNDER SUB SECTION (C)(3) OF THIS SECTION that: 8
63	63
64	64	(i) an employing unit pays to each employee for covered employment 9
65	65	during a calendar year; 10
66	66
67	67	(ii) an employing unit pays to each employee for covered employment 11
68	68	in this State and another state during a calendar year if the employee was continuously 12
69	69	employed immediately before and after a transfer of a business from another state during 13
70	70	a calendar year; 14
71	71
72	72	(iii) a reorganized employer pays to each employee for covered 15
73	73	employment if the employee was continuously employed immediately before and after the 16
74	74	reorganization in a calendar year and if the contribution rate of the reorganized employer 17
75	75	is based on the experience with payrolls and benefit charges of the employing unit before 18
76	76	the reorganization in accordance with § 8–613(b) of this subtitle; or 19
77	77
78	78	(iv) an employing unit or predecessor employer or combination of 20
79	79	both pays to each employee for covered employment during a calendar year if the payrolls 21
80	80	and benefit charges of the predecessor employing unit are transferred to the successor 22
81	81	employing unit in accordance with § 8–613(d) or (e) of this subtitle. 23
82	82
83	83	(2) If the Federal Unemployment Tax Act or any other federal tax law that 24
84	84	allows a credit for a contribution to a state unemployment insurance fund increases the 25
85	85	maximum amount of wages taxable under that law in a calendar year to AN AMOUNT THAT 26
86	86	IS more than [$8,500] THE PERCE NTAGE OF THE AVERAGE ANNUAL WAGE FOR 27
87	87	EMPLOYEES IN THE STATE SET UNDER SUBSE CTION (C)(3) OF THIS SECTION , the 28
88	88	taxable wage base under paragraph (1) of this subsection shall be the same as under the 29
89	89	federal law. 30
90	90
91	91	(c) (1) The Secretary shall determine the rate of contribution for each 31
92	92	employing unit as of the computation date for the next calendar year. 32
93	93
94	94	(2) The rate of contribution is effective for 1 calendar year. 33
95	95
96	96	(3) (I) ON OR BEFORE JANUARY 31 EACH YEAR, THE DEPARTMENT 34 HOUSE BILL 554 3
97	97
98	98
99	99	SHALL: 1
100	100
101	101	1. DETERMINE THE A VERAGE ANNUAL WAGE F OR 2
102	102	EMPLOYEES IN THE STATE DURING THE CALE NDAR YEAR OF THE COM PUTATION 3
103	103	DATE; AND 4
104	104
105	105	2. MAKE AVAILABLE ON IT S WEBSITE THE AVERAG E 5
106	106	ANNUAL WAGE FOR EMPL OYEES IN THE STATE APPLICABLE TO T HE RATE OF 6
107	107	CONTRIBUTION . 7
108	108
109	109	(II) 1. THE SECRETARY SHALL ANNUALLY SET TH E TAXABLE 8
110	110	WAGE BASE AS AN INCR EASING PERCENTAGE OF THE AVERAGE ANNUAL W AGE FOR 9
111	111	EMPLOYEES IN THE STATE UNTIL THE TAXAB LE WAGE BASE PROVIDE D UNDER 10
112	112	SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH IS IN EFFECT. 11
113	113
114	114	2. BEGINNING CALENDAR YE AR 2028 AND EACH 12
115	115	CALENDAR YEAR THEREA FTER, THE TAXABLE WAGE BAS E SHALL BE 20% OF THE 13
116	116	AVERAGE ANNUAL WAGE FOR EMPLOYEES IN THE STATE. 14
117	117
118	118	(d) (1) By regulation, the Secretary shall set: 15
119	119
120	120	(i) THE TAXABLE WAGE BAS E; 16
121	121
122	122	(II) the date when contributions are due; and 17
123	123
124	124	[(ii)] (III) subject to § 8–607.1 of this subtitle, the manner in which 18
125	125	contributions are to be paid. 19
126	126
127	127	8–803. 20
128	128
129	129	(A) IN THIS SECTION , “STATE AVERAGE WEEKLY WAGE” MEANS THE 21
130	130	AVERAGE WEEKLY WAGE IN THE STATE, AS DETERMINED BY THE DEPARTMENT , 22
131	131	BASED ON THE WA GES IN TOTAL COVERED EMPLOYMENT FOR ALL E MPLOYERS IN 23
132	132	THE STATE FOR THE IMMEDIA TELY PRECEDING CALEN DAR YEAR. 24
133	133
134	134	(B) (1) (I) THE WEEKLY BENEFIT AM OUNT PAYABLE TO A CL AIMANT 25
135	135	UNDER THIS SECTION S HALL BE AT LEAST 15% OF THE STATE AVERAGE WEEKLY 26
136	136	WAGE BUT NOT MORE THAN THE AMOUNT OF T HE STATE AVERAGE WEEKLY WAGE 27
137	137	SET UNDER SUBPARAGRA PH (II) OF THIS PARAGRAPH . 28
138	138
139	139	(II) 1. THE SECRETARY SHALL ANNUA LLY SET THE 29
140	140	MAXIMUM WEEKLY BENEF IT AMOUNT AS AN INCR EASING PERCENTAGE OF THE 30
141	141	STATE AVERAGE WEEKLY WAGE UNTIL THE MAXIM UM WEEKLY BENEFIT AMOUNT 31
142	142	PROVIDED UNDER SUBSU BPARAGRAPH 2 OF THIS SUBPARAGRAPH IS IN EFFECT. 32 4 HOUSE BILL 554
143	143
144	144
145	145
146	146	2. BEGINNING CALENDAR YE AR 2028 AND EACH 1
147	147	CALENDAR YEAR THEREA FTER, THE MAXIMUM WEEKLY B ENEFIT SHALL BE 2
148	148	50% OF THE STATE AVERAGE WEEKLY WAGE. 3
149	149
150	150	3. THE SECRETARY SHALL ADOPT REGULATIONS TO 4
151	151	CARRY OUT THIS SUBPA RAGRAPH. 5
152	152
153	153	(2) FOR PURPOSES OF DETER MINING THE MINIMUM A ND MAXIMUM 6
154	154	WEEKLY BENEFIT AMOUN TS UNDER THIS SECTIO N, THE DEPARTMENT SHALL 7
155	155	CALCULATE AND UPDATE THE STATE AVERAGE WEEKLY WAGE ON JULY 1 EACH 8
156	156	YEAR. 9
157	157
158	158	(C) (1) FOR PURPOSES OF ASSIG NING A WEEKLY BENEFI T AMOUNT TO A 10
159	159	CLAIMANT, THE CLAIMANT ’S WEEKLY BENEFIT AMO UNT SHALL BE COMPUTE D BY 11
160	160	DIVIDING THE WAGES T HAT THE CLAIMANT WAS PAID FOR COVERED EMP LOYMENT 12
161	161	IN THE CALENDAR QUAR TER OF THE CLAIMANT ’S BASE PERIOD IN WHICH THOSE 13
162	162	WAGES WERE THE HIGHE ST BY 24. 14
163	163
164	164	(2) IN COMPUTING BENEFITS UNDER THIS SUBSECTIO N, A FRACTION 15
165	165	OF A DOLLAR SHALL BE ROUNDED TO THE NEXT HIGHER DOLLAR . 16
166	166
167	167	(D) THE WEEKLY BENEFIT AM OUNT CALCULATED UNDE R THIS SECTION 17
168	168	THAT IS IN EFFECT ON THE FIRST DAY OF A CLAIM ANT’S BENEFIT YEAR APPLI ES TO 18
169	169	THE CLAIMANT THROUGH OUT THAT BENEFIT YEA R. 19
170	170
171	171	(E) (1) EXCEPT AS PROVIDED IN § 8–1207 OF THIS TITLE FOR TH E WORK 20
172	172	SHARING PROGRAM , AN ELIGIBLE CLAIMANT SHALL BE PAID A WEEK LY BENEFIT 21
173	173	AMOUNT THAT IS COMPU TED BY: 22
174	174
175	175	(I) ASSIGNING THE CLAIMA NT’S WEEKLY BENEFIT AMO UNT 23
176	176	UNDER SUBSECTION (C) OF THIS SECTION; 24
177	177
178	178	(II) ADDING ANY ALLOWANCE FOR A DEPENDENT TO W HICH THE 25
179	179	CLAIMANT IS ENTITLED UNDER § 8–804 OF THIS SUBTITLE; AND 26
180	180
181	181	(III) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, 27
182	182	SUBTRACTING ANY WAGE S EXCEEDING $50 PAYABLE TO THE CLAIM ANT FOR THE 28
183	183	WEEK. 29
184	184
185	185	(2) EACH YEAR THE SECRETARY SHALL ADJUS T THE AMOUNT OF 30
186	186	WAGES REQUIRED TO BE SUBTRACTED UNDER PAR AGRAPH (1)(III) OF THIS 31
187	187	SUBSECTION FOR INFLA TION. 32 HOUSE BILL 554 5
188	188
189	189
190	190
191	191	(3) IN COMPUTING B ENEFITS UNDER THIS S UBSECTION, A FRACTION 1
192	192	OF A DOLLAR SHALL BE ROUNDED TO THE NEXT HIGHER DOLLAR . 2
193	193
194	194	(4) A PAYMENT TO AN INDIVI DUAL AS COMPENSATION FOR SERVING 3
195	195	AS AN ELECTION JUDGE FOR A LOCAL BOARD OF ELECTIONS IN THE STATE MAY NOT 4
196	196	BE INCLUDED WHEN COM PUTING THE WAGES REQUIR ED TO BE SUBTRACTED UNDER 5
197	197	PARAGRAPH (1)(III) OF THIS SUBSECTION . 6
198	198
199	199	(F) ANY CHILD SUPPORT PAY MENT THAT IS REQUIRE D UNDER § 8–807 OF 7
200	200	THIS SUBTITLE SHALL BE WITHHELD FROM BEN EFITS. 8
201	201
202	202	8–804. 9
203	203
204	204	(a) (1) Subject to subsection (b) of this section, in addition to the weekly benefit 10
205	205	amount [in the schedule of benefits] ASSIGNED IN ACCORDAN CE WITH § 8–803 OF THIS 11
206	206	SUBTITLE, a claimant shall be paid an allowance of [$8] $25 for each child, adopted child, 12
207	207	or stepchild of the claimant who, on the 1st day of the benefit year, is: 13
208	208
209	209	(i) wholly or partly supported by the claimant; and 14
210	210
211	211	(ii) under 16 years of age. 15
212	212
213	213	(2) A claimant shall submit to the Secretary the Social Security number or 16
214	214	copy of the birth certificate of each dependent for whom the claimant is to be paid an 17
215	215	allowance. 18
216	216
217	217	(b) (1) An allowance under this section is not payable: 19
218	218
219	219	(i) for more than 5 dependents of the claimant; 20
220	220
221	221	(ii) for longer than the number of weeks of benefits allowable to the 21
222	222	claimant for total unemployment; or 22
223	223
224	224	(iii) for any week in which an unemployment benefit is not payable 23
225	225	to the claimant. 24
226	226
227	227	(2) Benefits and the allowance under this section in any 1 week may not 25
228	228	exceed the [highest] STATE MAXIMUM weekly benefit amount [in the schedule of benefits], 26
229	229	AS DETERMINED UNDER § 8–803 OF THIS SUBTITLE . 27
230	230
231	231	(3) EACH YEAR THE SECRETARY SHALL ADJUS T THE AMOUNT OF THE 28
232	232	ALLOWANCE REQUIRED U NDER SUBSECTION (A) OF THIS SECTION FOR INFLATION. 29
233	233
234	234	(c) (1) The number of a claimant’s dependents shall be determined as of the 30 6 HOUSE BILL 554
235	235
236	236
237	237	1st day of the benefit year and shall be fixed for the duration of the benefit year. 1
238	238
239	239	(2) After an individual has been determined to be a dependent of a 2
240	240	claimant, the individual may not be considered to be a dependent of any other claimant 3
241	241	whose benefit year starts within 1 year after the determination. 4
242	242
243	243	(d) In the computation of a contribution rate under Part II of Subtitle 6 of this 5
244	244	title, an allowance for a dependent shall be considered a benefit. 6
245	245
246	246	(e) Notwithstanding subsection (d) of this section, an allowance for a dependent 7
247	247	may not be deducted from a claimant’s benefit account. 8
248	248
249	249	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
250	250	1, 2025. 10
251	251
252	252