Missouri House Bill HB1587

Missouri 2022 Regular Session

• Introduced: 1/5/22
• Refer: 5/13/22

Caption

Prohibits the State of Missouri from recollecting certain incorrectly distributed employment security benefits

Impact

The passage of HB1587 would significantly impact how the state handles unemployment benefits distributed during the pandemic. By waiving the repayment of certain incorrectly distributed benefits, the bill aims to alleviate the financial burden on individuals who, through no fault of their own, received undue benefits. This provision is particularly pertinent as it addresses equity and the principle of good conscience in financial dealings with claimants. The emergency clause included in the bill ensures its prompt effectiveness upon passage.

Summary

House Bill 1587 proposes to amend Chapter 288 of the Missouri Revised Statutes by introducing a new section that addresses the waiver of repayment for incorrectly distributed employment security benefits. It is particularly focused on those benefits that were distributed during the state of emergency declared due to the COVID-19 pandemic. The bill specifies that individuals who received these benefits incorrectly but without fraud should not have to repay them, provided the funds came from the state's unemployment compensation fund or related federal programs, such as the CARES Act.

Contention

While support for HB1587 may come from those advocating for consumer protection and financial relief amid ongoing economic difficulties resulting from the pandemic, there could be concerns regarding the implications of waiving repayments on state finances and the unemployment insurance trust fund. Critics may argue that such measures could set a precedent for handling future employment security programs and lead to fiscal challenges, necessitating a close examination of whether similar policies should be adopted in the absence of a declared state of emergency.