Printed on recycled paper 132nd MAINE LEGISLATURE FIRST SPECIAL SESSION-2025 Legislative Document No. 1538S.P. 622 In Senate, April 8, 2025 An Act to Index Unemployment Benefits to the Unemployment Rate Reference to the Committee on Labor suggested and ordered printed. DAREK M. GRANT Secretary of the Senate Presented by Senator STEWART of Aroostook. Cosponsored by Senator: BRADSTREET of Kennebec. Page 1 - 132LR1638(01) 1 2 as enacted by PL 1997, c. 387, §2, is amended to 3 read: 4 5 Employment Security Law, chapter 13 Reemployment Assistance Program. 6 as amended by PL 1975, c. 717, §5, is further 7 amended to read: 8 A. Any individual employed in agriculture as defined in the Maine Employment 9 Security Law Reemployment Assistance Program and the Federal Unemployment 10 Insurance Tax Law Act, except when that individual performs services for or on a farm 11 with over 300,000 laying birds; 12 is amended to read: 13 14 This chapter shall be is known and may be cited as "the "Employment Security Law" 15 Reemployment Assistance Program." 16 is enacted to read: 17 18 a percentage equal to the average of the 3 months of the most recent 3rd quarter of a 19 calendar year of the seasonally adjusted unemployment rate for the State as published by 20 the Department of Labor. 21 as amended by PL 1999, c. 464, §5, is further amended to 22 read: 23 24 The Special Administrative Expense Fund is created as a special fund in the State 25 Treasury. All interest, fines and penalties collected under this chapter and all voluntary 26 contributions tendered as a contribution to this fund must be paid into this fund. The money 27 may not be expended or available for expenditure in any manner that would permit its 28 substitution for, or a corresponding reduction in, federal funds that would in the absence of 29 that money be available to finance expenditures for the administration of the Employment 30 Security Law Reemployment Assistance Program. Nothing in this This section prevents 31 does not prevent the money from being used as a revolving fund to cover expenditures, 32 necessary and proper under the law, for which federal funds have been duly requested but 33 not yet received, subject to the charging of those expenditures against those funds when 34 received. The money in this fund must be used by the commissioner either for the payment 35 of costs of administration that are found not to have been properly and validly chargeable 36 against federal grants or other funds received for or in the Employment Security 37 Administration Fund on or after January 1, 1943, to finance the Maine Wage Assurance 38 Fund established in section 632; for the payment of costs of administering chapter 26, for 39 which federal funds are not available; or to fund activities that will improve the solvency 40 of the Unemployment Compensation Fund. The money must be available either to satisfy 41 the obligations incurred by the bureau directly or by requesting the Treasurer of State to 42 transfer the required amount from the Special Administrative Expense Fund to the Page 2 - 132LR1638(01) 43 Employment Security Administration Fund or the Maine Wage Assurance Fund. The 44 Treasurer of State shall upon receipt of a written request of the commissioner make any 45 such transfer. The commissioner shall give notice to the commission prior to any 46 expenditures from this fund. The commissioner shall order the transfer of the funds or the 47 payment of any such obligation and the funds must be paid by the Treasurer of State on 48 requisitions drawn by the commissioner directing the State Controller to issue the State 49 Controller's warrant for them. The warrant must be drawn by the State Controller based 50 upon bills of particulars and vouchers certified by an officer or employee designated by the 51 commissioner. The money in this fund is specifically made available to replace, within a 52 reasonable time, any money received by this State pursuant to section Section 302 of the 53 Federal federal Social Security Act as amended that, because of any action or contingency, 54 has been lost or has been expended for purposes other than, or in amounts in excess of, 55 those necessary for the proper administration of the Employment Security Law 56 Reemployment Assistance Program. The money in this fund must be continuously 57 available to the commissioner for expenditure in accordance with this section and may not 58 lapse at any time or be transferred to any other fund except as provided. Any money in the 59 Special Administrative Expense Fund may be used to make refunds of interest, penalties 60 or fines erroneously collected and deposited in the Special Administrative Expense Fund. 61 On June 30th of each year all money in excess of $100,000 in this fund must be transferred 62 to the Unemployment Compensation Fund. 21 as amended by PL 2009, c. 271, §2, is further 22 amended to read: 23 24 paid to any eligible individual with respect to any benefit year, whether for total or partial 25 unemployment, may not exceed the lesser of 26 is 14 times the individual's weekly benefit 26 amount or 33 1/3%, rounded to the nearest dollar, of the individual's total wages paid for 27 insured work during the individual's base period, plus the supplemental weekly benefit for 28 dependents payable under subsection 6 if the state average unemployment rate is at or 29 below 5.5%, plus an additional amount equal to one week of the individual's weekly benefit 30 amount for each 0.5% of the state average unemployment rate above 5.5%, up to a 31 maximum of 26 times the individual's weekly benefit amount. 32 A. If a dislocated worker, as defined in section 1196, subsection 1, who is in training 33 approved under section 1192, subsection 6, 6-A, 6-C, 6-D or 6-E qualifies for 34 additional benefits under section 1043, subsection 5, paragraph B, or exhausts the 35 worker's entitlement to benefits available to the worker under this subsection, the 36 maximum amount under this subsection is the product of the worker's most recent 37 weekly benefit amount multiplied by the number of weeks in which the worker 38 thereafter attends an approved training program. No An increase may not be made 39 under this paragraph, with respect to any benefit period, greater than 26 times the 40 individual's weekly benefit amount. 41 (1) Benefits paid to an individual under this paragraph may not be charged against 42 the experience rating record of any employer, but must be charged to the General 43 Fund. 44 (2) No benefits Benefits may not be paid under this paragraph to any person: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Page 3 - 132LR1638(01) 1 (b) Until the person has exhausted benefits for which the person is eligible 2 under any unemployment insurance benefit program funded in whole or in part 3 by the State Government or Federal Government; or 4 (c) Who is eligible for or who has exhausted, after the effective date of this 5 paragraph, trade adjustment allowances as provided by the United States Trade 6 Act of 1974, Title II, Chapter 2, Public Law 93-617, United States Code, Title 7 19, Section 2291, et seq., and any amendments or additions thereto, or a similar 8 successor provision of that Act, except that any individual who was eligible 9 for and received less than 26 weeks of benefits under the United States Trade 10 Act may receive benefits for the number of weeks by which their benefits under 11 that Act are less than 26 weeks. 12 as amended by PL 2019, c. 585, §1, is further 13 amended to read: 14 A. At the time the status of an employing unit is ascertained to be that of an employer, 15 the commissioner shall establish and maintain, until the employer status is terminated, 16 for the employer an experience rating record, to which are credited all the contributions 17 that the employer pays on the employer's own behalf. This chapter may not be 18 construed to grant any employer or individuals in the employer's service prior claims 19 or rights to the amounts paid by the employer into the fund. Benefits paid to an eligible 20 individual under the Employment Security Law Reemployment Assistance Program 21 must be charged against the experience rating record of the claimant's most recent 22 subject employer or to the General Fund if the otherwise chargeable experience rating 23 record is that of an employer whose status as such has been terminated; except that no 24 charge may be made to an individual employer but must be made to the General Fund 25 if the commission finds that: 26 (1) The claimant's separation from the claimant's last employer was for misconduct 27 in connection with the claimant's employment or was voluntary without good cause 28 attributable to the employer; 29 (2) The claimant has refused to accept reemployment in suitable work when 30 offered by a previous employer, without good cause attributable to the employer; 31 (3) Benefits paid are not chargeable against any employer's experience rating 32 record in accordance with section 1194, subsection 11, paragraphs B and C; 33 (5) Reimbursements are made to a state, the Virgin Islands or Canada for benefits 34 paid to a claimant under a reciprocal benefits arrangement as authorized in section 35 1082, subsection 12, as long as the wages of the claimant transferred to the other 36 state, the Virgin Islands or Canada under such an arrangement are less than the 37 amount of wages for insured work required for benefit purposes by section 1192, 38 subsection 5; 39 (6) The claimant was hired by the claimant's last employer to fill a position left 40 open by a Legislator given a leave of absence under chapter 7, subchapter 41 the claimant's separation from this employer was because the employer restored 42 the Legislator to the position after the Legislator's leave of absence as required by 43 chapter 7, subchapter 5‑A Page 4 - 132LR1638(01) 1 (7) The claimant was hired by the claimant's last employer to fill a position left 2 open by an individual who left to enter active duty in the United States military, 3 and the claimant's separation from this employer was because the employer 4 restored the military serviceperson to the person's former employment upon 5 separation from military service; 6 (8) The claimant was hired by the claimant's last employer to fill a position left 7 open by an individual given a leave of absence for family medical leave provided 8 under Maine or federal law, and the claimant's separation from this employer was 9 because the employer restored the individual to the position at the completion of 10 the leave; or 11 (9) The claimant initiated a partial separation or reduction of hours and that partial 12 separation or reduction of hours was agreed to by the employee and employer. 13 as enacted by PL 2001, c. 381, §1, is 14 amended to read: 15 C. Could cause services in the employ of the Indian tribe to be excepted from 16 employment for purposes of obtaining benefits under the Employment Security Law 17 Reemployment Assistance Program. 18 as amended by PL 2021, c. 181, Pt. A, §13, 19 is further amended to read: 20 21 the State who has complied with subsection 5 and the rules adopted under that subsection 22 is allowed a credit against the tax imposed by this Part on income derived during the taxable 23 year from the production of renewable chemicals in the amount of 8¢ per pound of 24 renewable chemical produced in the State as long as the taxpayer demonstrates to the 25 Department of Economic and Community Development that at least 75% of the employees 26 of the contractors hired or retained to harvest renewable biomass used in the production of 27 the renewable chemicals meet the eligibility conditions specified in the Employment 28 Security Law Reemployment Assistance Program. 29 If the taxpayer does not contract directly with those hired or retained to harvest the 30 renewable biomass, the taxpayer may obtain the necessary documentation under this 31 subsection from the landowner or other entity that contracts directly. 32 as enacted by PL 1991, c. 885, Pt. A, §8 and 33 affected by §§9 to 11, is amended to read: 34 35 compensation under section 212, subsection 3 and lump sum settlements, to any employee 36 for any period for which the employee is receiving or has received benefits under the 37 Employment Security Law Reemployment Assistance Program, Title 26, chapter 13, must 38 be reduced by the amount of the unemployment benefits. 39 40 This bill renames the Employment Security Law the Reemployment Assistance 41 Program and establishes the maximum amount of unemployment benefits at 14 weeks if 40 41 Page 5 - 132LR1638(01) 42 the State's average unemployment rate is 5.5% or below, with an additional week added for 43 every 0.5% the rate is above 5.5% to a maximum of 26 weeks of benefits. 1 2