HB 5266 — AN ACT AMENDING THE TIME TO PROTEST BENEFIT CHARGES ON AN EMPLOYER'S UNEMPLOYMENT INSURANCE QUARTERLY STATEMENT.

House of Representatives General Assembly RaisedFile Bill No.

526659 February Session, 2024 LCOHouse Bill No.

11155266 ReferredHouse toof Representatives, March 20, 2024 The Committee on LABORLabor ANDand PUBLICPublic EMPLOYEESEmployees Introducedreported by:through REP.

(LAB)SANCHEZ, ANE. ACT AMENDING THE TIME TO PROTEST BENEFIT CHARGES ON AN EMPLOYER'S UNEMPLOYMENT INSURANCE QUARTERLY STATEMENT.

of the 24th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT AMENDING THE TIME TO PROTEST BENEFIT CHARGES ON AN EMPLOYER'S UNEMPLOYMENT INSURANCE QUARTERLY STATEMENT.

(2)HB5266 The/ administratorFile shall, not less frequently than once each calendar quarter, provide a statement of charges to each employer to LCO 1115 \\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05266-R011 of 3 HB.docx Bill No.

526659 whose1 experienceHB5266 recordFile anyNo. charges have been made since the last previous such statement.

59 (2) The administrator shall, not less frequently than once each calendar quarter, provide a statement of charges to each employer to whose experience record any charges have been made since the last previous such statement.

Section 1 October 1, 2024 31-225a(h) LCOHB5266 1115/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-052662File of 3 R01-HB.docx } Bill No.

526659 LAB2 JointHB5266 FavorableFile LCONo. 1115 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2024HB-05266- 3 of 3 R01-HB.docx }

59 LAB Joint Favorable HB5266 / File No.

59 3 HB5266 File No.

59 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ Labor Dept.

Unemployment Minimal Minimal Insurance Trust Fund - See Below Municipal Impact:

None Explanation The bill, which shortens the time an employer can protest any unemployment benefits they contend have been improperly charged to their unemployment insurance quarterly statements from 60 to 40 days, results in a minimal net impact to the Unemployment Insurance Trust Fund.

To the extent the bill results in charges that otherwise would be contested, this would result in an increase in the employer experience rate and therefore result in a minimal revenue gain due to higher taxes paid by employers.

Alternatively, the bill could also result in a higher volume of fraudulent claims not being caught via employer's due diligence, which would have a minimal cost to the Unemployment Insurance Trust Fund.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to employer's compliance levels to the 40-day deadline to protest unemployment benefits improperly charged to their unemployment insurance quarterly statements.

HB5266 / File No.

59 4 HB5266 File No.

59 OLR Bill Analysis HB 5266 AN ACT AMENDING THE TIME TO PROTEST BENEFIT CHARGES ON AN EMPLOYER'S UNEMPLOYMENT INSURANCE QUARTERLY STATEMENT.

SUMMARY By law, the Department of Labor (DOL) gives employers quarterly statements that generally show their charges for unemployment benefits paid to their former employees.

This bill decreases, from 60 to days after the statement was provided, the amount of time an employer has to file a written protest with DOL explaining that the charges were improperly charged due to fraud or error.

Existing law, unchanged by the bill, prevents an eligibility issue from being reopened based on these quarterly statements if the employer previously received a notification about the former employee’s eligibilityforbenefitsandfailedtotimelyappealit ortheeligibilityissue was resolved against the employer.

EFFECTIVE DATE:

October 1, 2024 COMMITTEE ACTION Labor and Public Employees Committee Joint Favorable Yea 8 Nay 4 (03/07/2024) HB5266 / File No.

59 5