SENATE BILL NO. 120                                                                                                           
                                                                                                                                
     "An Act relating to the calculation and payment of                                                                         
     unemployment compensation benefits; and providing for                                                                      
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT Work Draft for SB 120, 25-                                                                      
LSO622/N, Wayne, 3/14/08.                                                                                                       
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
DARWIN PETERSON, STAFF, SENATOR STEDMAN, explained that                                                                         
there are three main changes:                                                                                                   
                                                                                                                                
    · Sec. 9, line 7, changed to 2 year phase in for the                                                                        
      decreased  contribution  rate  paid  by  the  employer.                                                                   
      Instead  of going  from  80% to  73% in  one year,  the                                                                   
      phase  in would be  76% beginning  January 1,  2009 and                                                                   
      73% beginning January 1, 2010.                                                                                            
                                                                                                                                
    · Page 6, line 13, Sec. 10 creates the two year phase                                                                       
      in  for the  increased contribution  rate  paid by  the                                                                   
      employee.    The rate  would  change to  24%  beginning                                                                   
      January 1, 2009 and 27 % beginning January 1, 2010.                                                                       
                                                                                                                                
    · Sec. 13, 14 and 15 have been deleted.  He explained                                                                       
      that section  13 was a conforming amendment  that is no                                                                   
      longer  needed   with  the  deletion  of   section  14.                                                                   
      Section  14 is  the automatic  annual recalculation  of                                                                   
      the benefit amount (escalator  clause).  Sec.  15   was                                                                   
      deleted  as  it  conflicted   with  federal  law.    He                                                                   
      referenced the  handout of federal tax code  Chapter 23                                                                   
      - Federal Unemployment Tax Act (On File).                                                                                 
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
There being  NO OBJECTION, CSSB120 (FIN)  25-LSO622/N, Wayne,                                                                   
3/14/08 was adopted.                                                                                                            
                                                                                                                                
10:10:03 AM                                                                                                                   
                                                                                                                                
DANA  OWEN,  STAFF, SENATOR  ELLIS,  presented  SB  120.   He                                                                   
informed  the  Committee  that  for the  last  11  years  the                                                                   
maximum weekly benefit amount  for unemployment insurance has                                                                   
remained at $248.  He explained  that the intent of SB 120 is                                                                   
to raise unemployment insurance to $370.                                                                                        
                                                                                                                                
Senator Olson  asked if the  Sponsor agreed with  the changes                                                                   
in the Committee Substitute.                                                                                                    
                                                                                                                                
Mr.  Owen  said the  Sponsor  is  fine  with the  change  and                                                                   
believes it is an improvement to the bill.                                                                                      
                                                                                                                                
Senator Olson asked  if those effected by the  changes in the                                                                   
CS have commented on the change.                                                                                                
                                                                                                                                
10:12:37 AM                                                                                                                   
                                                                                                                                
Mr. Owen acknowledged that the  escalator clause may not stay                                                                   
in the bill.   He explained that members of  both houses have                                                                   
discussed  the   automatic  adjustment  to   benefit  amounts                                                                   
(escalator  clause, Sec.  15).   There  are  many who  oppose                                                                   
these adjustments and Senator  Ellis had anticipated this and                                                                   
discussed  the issue  with  others, but  there  is no  public                                                                   
testimony on record regarding the changes.                                                                                      
                                                                                                                                
Senator Thomas said he is pleased  to see the increase in the                                                                   
amount.  He would  prefer to see the escalator  clause in the                                                                   
bill, but is not concerned with its removal.                                                                                    
                                                                                                                                
10:14:26 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  REPORT  CSSB  120(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair  Stedman OBJECTED  and asked  if the  Administration                                                                   
had an opinion on the bill.                                                                                                     
                                                                                                                                
10:15:24 AM                                                                                                                   
                                                                                                                                
PAULA SCAVERA,  LEGISLATIVE LIAISON, DEPARTMENT  OF LABOR AND                                                                   
WORKFORCE  DEVELOPMENT, said  there was  no comment  from the                                                                   
Department.                                                                                                                     
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
AT EASE:  10:16:20 AM                                                                                                         
                                                                                                                                
RESUME:   10:17:17 AM