Bill Positions

Bill Number: HB 91

Bill Title: Labor and Employment - Unemployment Insurance - Modernization and Tax Relief Act

Bill Sponsor(s): The Speaker (By Request - Administration)

Subject: Unemployment Insurance

Committee: ECM

Bill Summary: This emergency Administration bill makes changes to the State unemployment insurance (UI) benefits by allowing an “alternative base period” to be used to determine eligibility and expanding eligibility for UI benefits to include individuals enrolled in a qualifying job training program. The bill eliminates UI benefits for claimants who become sick or disabled, increases the penalty for claimants who are dismissed for misconduct or gross misconduct, and decreases the amount of disregarded wages a claimant may earn while receiving UI benefits. The bill also increases the minimum earnings necessary to qualify for UI benefits. The Department of Labor, Licensing, and Regulation (DLLR) must immediately offer employers payment plan options for UI contributions in calendar 2010 and 2011 and reduce the monthly interest penalty from 1.5% to 0.5% under certain conditions. The modifications to Maryland UI law provided in the bill make Maryland eligible for a one-time payment of $126.8 million in federal incentive funds

History: In 2010, this bill died in the Economic Matters Committee without a vote. However, a companion bill, SB 107 was enacted as Chapter 2.

Chamber Position: Support

Position Summary: The bill was heavily amended to address a number of concerns raised by the business community. Since its introduction the Maryland Chamber strongly supported the provision to provide payment plans and reduced interest rates. To offset the costs associated with accepting federal stimulus money, the amended bill includes an estimated $18.2 million to $19.5 million in annual benefit reductions. Additionally, the amended bill also keeps the rate schedule at table F, rather than moving to table E. The amended bill sufficiently addresses a number of the Chamber's major concerns with the bill as introduced. For these reasons, the Maryland Chamber supported the bill as amended.

Position Statement:

Chamber Staff: Allyson Black

General Assembly: Click here to view the bill on the Maryland General Assembly's website.