HB 4 — AN ACT relating to unemployment insurance.

UNOFFICIALCHAPTER COPY21 221 RSCHAPTER 21 ( HB 4/VO4 ) AN ACT relating to unemployment insurance.

(a) A program approved by the secretary that leads to a short-term certificate or credential, an industry-recognizedindustry- recognized certificate, diploma, or associate of applied science degree in one (1) of Kentucky's top five (5) high-demand workforce sectors identified by the Kentucky Workforce Innovation Board and the Education and Workforce Development Cabinet;

and] [(3) "Commission" means the unemployment insurance commission.] (5) "State average unemployment rate" means the seasonal adjusted statewide unemployment rate that applies to the six (6) month period in which the claim is Page 1 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO filed.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) If the wages, hours, or other conditions of the work offered are substantially Page 2 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO less favorable than those prevailing for similar work in the locality;

and (d) If the acceptance of such work would be prejudicial to the continuance of an established employer-employeeemployer- employee relationship to which the worker is a party.

In any calendar year in which the rate schedule prescribed in paragraph (3)(a) of this section is in Page 3 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO effect, no subject employer who was assigned an entry rate of three percent (3.0%) under the provisions of subsection (1) of this section prior to January 1, 1999, shall have a contribution rate less than two and eight hundred fifty-seven thousandths percent (2.857%), unless subject to this chapter for the minimum time period specified above.

and Page 4 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO (f) Is less than one hundred fifty million dollars ($150,000,000), the rates listed in "Schedule E" of "Table A" shall be in effect.

Except as otherwise provided in this section, the contribution rate for each subject employer for the calendar year immediately following the computation date shall be the rate in that CHAPTER 21 3 "Schedule" of "Table A," as set out below, effective with respect to the calendar year, which appears on the same line as his or her reserve ratio as shown in the "Employer Reserve Ratio" column of the same table.

TABLE A Rate Schedule Employer Trust A B C D E Reserve Fund Ratio Adequacy Rates 8.0% and over 0.000%0.30%0.000% 0.30% 0.40% 0.50% 0.60% 1.00% 7.0% but under 8.0% 0.000% 0.40% 0.50% 0.60% 0.80% 1.05% 6.0% but under 7.0% 0.008% 0.50% 0.60% 0.70% 0.90% 1.10% 5.0% but under 6.0% 0.208% 0.70% 0.80% 1.00% 1.20% 1.40% 4.6% but under 5.0% 0.508% 1.00% 1.20% 1.40% 1.60% 1.80% 4.2% but Page 5 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO under 4.6% 0.808% 1.30% 1.50% 1.80% 2.10% 2.30% 3.9% but under 4.2% 1.008% 1.50% 1.70% 2.20% 2.40% 2.70% 3.6% but under 3.9% 1.308% 1.80% 1.80% 2.40% 2.60% 3.00% 3.2% but under 3.6% 1.508% 2.00% 2.10% 2.50% 2.70% 3.10% 2.7% but under 3.2% 1.608% 2.10% 2.30% 2.60% 2.80% 3.20% 2.0% but under 2.7% 1.708% 2.20% 2.50% 2.70% 2.90% 3.30% 1.3% but under 2.0% 1.808% 2.30% 2.60% 2.80% 3.00% 3.40% 0.0% but under 1.3% 1.908% 2.40% 2.70% 2.90% 3.10% 3.50% -0.5% but under -0.0% 6.500% 6.50% 6.75% 7.00% 7.25% 7.50% -1.0% but under -0.5% 6.750% 6.75% 7.00% 7.25% 7.50% 7.75% -1.5% but Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY under -1.0% 7.000% 7.00% 7.25% 7.50% 7.75% 8.00% -2.0% but under -1.5% 7.250% 7.25% 7.50% 7.75% 8.00% 8.25% -3.0% but under -2.0% 7.500% 7.50% 7.75% 8.00% 8.25% 8.50% -4.0% but under -3.0% 7.750% 7.75% 8.00% 8.25% 8.50% 8.75% Page 6 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO -6.0% but under -4.0% 8.250% 8.25% 8.50% 8.75% 9.00% 9.25% -8.0% but under -6.0% 8.500% 8.50% 8.75% 9.00% 9.25% 9.50% Less than -8.0%.

and (e) "Computation date" is July 31 of each calendar year prior to the effective date Page 7 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO of new rates of contributions.

CHAPTER 21 5 (1) He or she has made a claim for benefits;

The waiting week period shall be the first compensable week of an initial claim for Page 8 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO benefits for which he or she is eligible and qualified to receive benefits under this chapter.

Attending a job fair or networking event hosted by state or local Page 9 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO government or a business organization;

Beginning on January 1, 2020, and continuing on January 1 in even-even-numbered numbered years thereafter, the secretary shall adjust the minimum base-period wages at a rate that is directly proportional to the average percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for the two (2) previous calendar years;

or (b) If he or she has verified definite return-to-work or recall-to-work prospects Page 10 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO within a period of sixteen (16) weeks from the date of filing of the initial or reopened claim.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) Notwithstanding any other provisions of this chapter, no otherwise eligible worker shall be denied benefits for any week because he or she is in training approved under 19 U.S.C.

(b) The work search activities that were most commonly engaged in by audited Page 11 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO claimants;

(2) The weekly benefit rate payable to an eligible worker for weeks of unemployment shall, except as provided in KRS 341.390, be an amount equal to one and three thousand seventy-eight ten-thousandths percent (1.3078%) of his or her total base-base-period period wages, except that no worker's weekly benefit amount shall be less than thirty-ninethirty- nine dollars ($39), nor more than the maximum rate as determined in accordance with subsection (3) of this section.

Page 12 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO (3) Prior to the first day of July of each year the secretary shall determine the average weekly wage for insured employment by dividing the average monthly employment, as obtained by dividing the total monthly employment reported by subject employers for the preceding calendar year by twelve (12), into the total wages reported by such employers for such calendar year and dividing by fifty-two (52).

beginning in calendar year 1999, or any subsequent year in which the increase in the weekly benefit rate calculation set forth in subsection (2) of this section should take effect, sixty-two percent (62%) of the average weekly wage, adjusted to the nearest multiple of one dollar ($1), shall constitute the maximum weekly benefit rate for those workers whose benefit CHAPTER 21 7 year commences on or after the first day of July of that year and prior to the first day of July of the next following year;

(b) Equals or exceeds two hundred million dollars ($200,000,000), but is less than three hundred million dollars ($300,000,000), the maximum weekly benefit Page 13 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO rate shall not exceed the prior year's maximum weekly benefit rate by more than eight percent (8%).

or Page 14 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO (b) One-third (1/3) of his or her base-period wages, except that no worker's maximum amount shall be less than twelve (12)[fifteen (15)] times his or her weekly benefit rate.

(c) State average unemployment rate of greater than five percent (5%) up to and including five and one-halfone- half percent (5.5%):

(e) State average unemployment rate of greater than six percent (6%) up to and including six and one-halfone- half percent (6.5%):

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (f) State average unemployment rate of greater than six and one-half percent (6.5%) up to and including seven percent (7%):

(g) State average unemployment rate of greater than seven percent (7%) up to Page 15 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO and including seven and one-half percent (7.5%):

twenty-twenty-four four (24) weeks of benefits available.

(2) The classification system set forth in subsection (1) of this section shall not apply to claimants with verified definite return-to-work or recall-to-work prospects within a period of sixteen (16) weeks from the date of filing of the initial or reopened claim, who shall instead receive one hundred percent (100%) of the weekly benefit rate for each week that they are otherwise eligible, up to sixteen (16) weeks unless the state average unemployment rate is higher than six and one-half percent (6.5%), in which case the maximum duration of weeks for these claimants shall follow the classification system set forth in subsection (1) of this Page 16 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO section.

A NEW SECTION OF KRS CHAPTER 341 IS CREATED TO Page 17 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO READ AS FOLLOWS:

(1) An employer may notify the secretary in writing or electronically of each worker who has declined to accept suitable work when offered or has failed to attend a first interview for suitable work, whether held in-person,in- person, virtually, or by phone.

and CHAPTER 21 9 (c) Specific and detailed information regarding the decline of an offer of suitable work or the failure to attend a first interview regarding suitable work that may potentially disqualify the worker from receiving benefits.

(a) He or she has failed without good cause either to apply for available, suitable work when so directed by the employment office or the secretary, to accept an interview from a prospective employer offering suitable work, or to accept suitable work when offered him or her, or to return to his or her customary self-employment when so directed by the secretary;[ or] (b) He or she has been discharged for misconduct or dishonesty connected with his or her most recent work, or from any work which occurred after the first Page 18 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO day of the worker's base period and which last preceded his or her most recent work, but legitimate activity in connection with labor organizations or failure to join a company union shall not be construed as misconduct;[ or] (c) He or she has left his or her most recent suitable work or any other suitable work which occurred after the first day of the worker's base period and which last preceded his or her most recent work voluntarily without good cause attributable to the employment.

(3) No worker shall be disqualified under paragraph (b) or (c) of subsection (1) of this section unless the employer, within a reasonable time as prescribed by regulations Page 19 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO promulgated by the secretary, notifies the Education and Workforce Development Cabinet and the worker in writing of the alleged voluntary quitting or the discharge for misconduct.

except that, if the work last preceding the week of Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY unemployment was seasonal, intermittent, or temporary in nature, most recent work may be construed as that work last preceding the seasonal, intermittent, or temporary work.

unsatisfactory attendance if Page 20 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO the worker cannot show good cause for absences or tardiness;

(3) "Approved plan" means an employer's voluntary, written plan for reducing Page 21 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO unemployment under which a specified group of employees shares the work remaining after their normal weekly hours of work are reduced, which plan meets the requirements of Section 12 of this Act and which plan has been approved in writing by the secretary;

(2) "Regular benefits" means benefits payable to a worker under this chapter or under an unemployment compensation law of any other state (including benefits payable to federal civilian employees and to ex-servicemenex- servicemen pursuant to 5 U.S.C.

(3) "Extended benefits" means benefits (including benefits payable to federal civilian employees and to ex-servicemenex- servicemen pursuant to 5 U.S.C.

(4) "Additional benefits" means benefits payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors under the provisions of any state law;] CHAPTER 21 11 (4)[(5)] "Eligibility period" of a worker means the period consisting of the weeks in Page 22 of 38 HB000490.100 - 871 - XXXX Vetoed and Overriden UNOFFICIAL COPY 22 RS HB 4/VO his or her benefit year which begin in an extended benefit period and, if his or her benefit year ends within such extended benefit period, any weeks thereafter which begin in such period;[ and] (5)[(6)] "Exhaustee" means a worker who, with respect to any week of unemployment in his or her eligibility period:

(a) Has received, prior to such week, all of the regular benefits that were available to him or her under this chapter or any other state law (including dependents' allowances and benefits payable to federal civilian employees and ex-ex-servicemen servicemen under 5 U.S.C.