Increases the maximum weekly benefit amount from $320 to $330, effective for the benefit year beginning January 1, 2004, without regard to the balance in the Unemployment Insurance Trust Fund.

Financing

Increases each employer’s new employer rate or basic assessment, whichever is applicable to such employer, by a supplemental assessment rate of 0.2 percent beginning January 1, 2004, and thereafter, without regard to the balance in the Unemployment Insurance Trust Fund.

Financing

Extends suspension of overall rate increase through December 31, 2004, unless the State-wide Reserve Ratio is less than 1 percent in which case the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent, as of the date of computation, for each employer.

Nonmonetary Eligibility

Extends the disqualification provision relating to employees of temporary help firms who fail to contact the employer for reassignment to employees of leasing companies and professional employer organizations.

Nonmonetary Eligibility

Provides for the use of an alternative base period consisting of the four completed calendar quarters immediately preceding the first day of an individual’s benefit year if an individual fails to establish a valid claim using the standard base period and certain other requirements are satisfied, effective for benefit years beginning January 1, 2004.

Provides that employment and wages used to establish a benefit year cannot thereafter be reused to establish another benefit year.

Financing

Provides for a taxable wage base of $27,600 for calendar years 2003 and 2004 (same taxable wage base that was in effect for calendar year 2002). Assigns tax rates for positive balance employers ranging from .2 percent to 1.4 percent for calendar years 2003 and 2004. Assigns tax rates for negative balance employers ranging from 2.6 percent to 5.4 percent for calendar years 2003 and 2004.

Administration

Requires the Department of Employment Security to disclose, upon request, to a State’s Attorney of Illinois or a State’s Attorney’s investigator the current address or current information of an employer of a victim of a felony, a witness to a felony, or a person against whom an arrest warrant is outstanding.

Administration

Provides for the issuance of determinations to base-period employers regarding the chargeability of benefits. Makes these determinations conclusive and binding unless an employer files an application for review within 20 days.

Financing

Removes limitation on voluntary employer contributions to experience rating accounts.

Financing

Provides for the transfer of an employer’s experience rate whenever an employing unit succeeds to or acquires the employees of a predecessor employer.

Administration

Limits the amount attorneys for the state Department of Labor can be paid for the collection of delinquent UI contributions to 10 percent of the total dollars collected (was previously limited to 20 percent of the first $2,000 collected, 10 percent of the next $2,000 collected, and 5 percent of any amount over $4,000 collected).

Nonmonetary Eligibility

Clarifies that temporary or uncertified teachers or instructors, like other teachers, are not eligible for unemployment insurance between academic years or terms based on the instructional, research, or administrative services they provided during the year if reasonable assurance exists of performing such services in the next academic year or term.

Nonmonetary Eligibility

Provides that, beginning January 1, 2004, an individual who is not available for full-time work is not disqualified from receiving benefits if the individual worked:

• less than full time for a majority of the weeks during that individual’s base period and the individual is able and available for and actively seeking part-time work for at least the number of hours in a week comparable to those customarily worked in part-time employment during that individual’s base period; or

• full time for a majority of the weeks during that individual’s base period, but is able and available for and actively seeking only part-time work because of the illness or disability of an immediate family member or because of limitations necessary for the safety or protection of the individual or individual’s immediate family member.

Terminates for new applications for benefits on September 30, 2005, but continues to apply to individuals who have remaining entitlement as of that date.

Extensions and Special Programs

Establishes a TUR trigger on a temporary basis effective beginning May 25, 2003, and ending December 27, 2003. Provides that extended benefits are payable beginning August 17, 2003:

• For 50 percent of regular benefits up to 13 weeks when the average TUR for the most recent 3 months equals or exceeds 6.5 percent and the average state TUR equals or exceeds 110 percent of the average state TURs in the corresponding 3-month period in either or both of the preceding 2 calendar years.

• For 50 percent of regular benefits up to 20 weeks when the average TUR equals or exceeds 8 percent as described immediately above.

Charges contributing employers’ share of extended benefits based on the TUR trigger to the nonchargeable benefits account, effective for benefit charges paid for weeks of unemployment beginning the week of August l7, 2003, and ending the week ending January 17, 2004.

Charges, for reimbursing employers, the contingent fund for the full amount of extended benefits based on the TUR trigger effective for benefit charges paid for weeks of unemployment beginning the week of August l7, 2003, and ending the week ending January 17, 2004.

Financing

Requires that solvency taxes collected and deposited in the contingent fund to no longer be used for the unemployment insurance automation project.

Coverage

Excludes from the definition of "employment" service performed to provide companionship services or respite care for individuals who, because of age or infirmity, are unable to care for themselves when the person providing the service is employed directly by a family member or an individual who is a legal guardian.

Financing

Revises the ratios used to calculate unemployment insurance contribution rates resulting in the following rates:

• Eligible employers –
  Most favorable 0.00 percent to 1.67 percent
  Least favorable 1.67 percent to 3.47 percent

• Deficit employers –
  Most favorable 3.17 percent to 6.37 percent
  Least favorable 4.97 percent to 6.37 percent

Monetary Entitlement

Increases the maximum number of benefit weeks to which an individual is eligible from 26 to 28.

Provides that to qualify for the 28 week duration, an individual’s ratio of total base period earnings to the highest quarter base period earnings must be at least 3.50.

Increases the percentage for calculating the maximum weekly benefit amount from 63 percent to 66.5 percent of the average weekly wage.

Increases the minimum weekly benefit amount from $70 to $73 and the maximum weekly benefit amount from $297 to $306, effective July 7, 2003.

Administration

Provides that delivery of a written notice for collection of state contributions by an authorized representative of the commissioner must be deemed proper service of process.

Modifies the interstate collections provision to allow the courts to entertain actions in the name of the commissioner to collect benefits for which liability has accrued under the employment security law of any other state or the federal government; and gives authority to the commissioner to collect any debts of benefits, contributions, or interest by civil action in any manner provided for the collection of contributions in the state’s unemployment compensation law for debt collection.

Appeals

Modifies the appeals provisions to require that decisions from appeals be sent in whichever manner the commissioner determines to be most appropriate, including by first class mail.

Coverage

Amends the definition of "employer" to include service performed for an Indian tribe, resulting in unemployment insurance coverage of such services; and to exclude coverage of certain services. Considers as an Indian tribe any subdivision, subsidiary, or business enterprise wholly owned by an Indian tribe.

Allows an Indian tribe to either pay contributions or to elect to make reimbursements.

May require reimbursing tribe or tribal unit to execute and file a surety bond or deposit money or securities at the discretion of the commissioner.

Extended benefits not reimbursed by the federal government must be financed in their entirety by the Indian tribe.

Under certain circumstances, terminates the reimbursement election and coverage when a tribe fails to make the required payments; provides for reinstatement when failure is corrected.

Excludes from the definition of "employment" services by a direct seller if engaged in the trade or business of the delivering or distribution of newspapers or shopping news, including any services directly related to such trade or business.

Nonmonetary Eligibility

Provides individuals are ineligible for benefits between two successive academic years or terms and during vacation or holiday recess while performing services as a non professional or for an educational institution only if applicable to such services in the employ of the state or any political subdivision thereof, to Indian tribes and to certain nonprofit organizations, effective June 9, 2003.

Disqualifies an individual for benefits for any week during which the individual resides other than in New Hampshire, another State, the District of Columbia, Puerto Rico, the Virgin Islands, or a contiguous country with which the United States has an agreement with respect to unemployment compensation.

Modifies the labor dispute provisions to provide that a person unemployed due to a stoppage of work must have worked in 5 or more weeks (formerly consecutive weeks) in employment as defined in the state’s unemployment compensation law (except service performed in the employ of the United States), or wages earned in a like manner in another state to requalify for benefits.

Overpayments

Allows the commissioner to waive interest, penalties, fees and legal costs totaling $50 or less related to overpaid benefits or contribution adjustments.

Financing

Appropriates, from Reed Act funds, $53.7 million for fiscal year 2004 and $47.3 million for fiscal year 2005 for administration of the UI program, employment services, and other allowable expenditures. Provides for an increase in this appropriation, upon request of the Director of Job and Family Services, for fiscal year 2004 by the amount remaining unspent from fiscal year 2003, and, for fiscal year 2005, by the amount remaining unspent from fiscal year 2004.

Financing

Permits, rather than requires, a report of taxes due for employment consisting exclusively of domestic service in a private home, local college club or local chapter of a college fraternity or sorority where in any calendar quarter, the cash remuneration for such service is $1,000 or more, to be filed annually rather than quarterly.

Appeals

Permits an administrative law judge to dismiss a request for a hearing when:

• the request for a hearing is withdrawn by the requesting party;

• in response to a request by the administrative law judge or his/her designee, the requesting party fails to provide, in a timely manner, the information necessary to allow the matter to be scheduled for a hearing;

• the requesting party fails to appear at the time of the hearing;

• the issues are resolved by cancellation or amendment of the decision that is the subject of the hearing request;

• the requesting party fails to file the request for a hearing within the time allowed by statute or rule and fails to show good cause for the delay;

• the request for a hearing is filed prior to the date of the written decision or written determination that is the subject of the request; or

• the request for a hearing is made by a person who is not entitled to a hearing or is not the authorized representative of a party who is entitled to a hearing.

Provides that such a dismissal by the hearing officer is final unless the party whose request for a hearing has been dismissed files, within 20 days of mailing of the dismissal notice, an application for review. Further provides, however, that a requesting party whose request has been dismissed because that party failed to appear may file a request to reopen the hearing notwithstanding the 20 day time limit.

Financing

Revises the amount of bond or deposit that a nonprofit employing unit that elects to reimburse the Unemployment Compensation Trust Fund in lieu of paying taxes must provide to the Director of the Employment Department to 2 percent of the employing unit’s total wages paid for the 4 calendar quarters immediately preceding the effective date of the election (amount was previously determined according to a statutory schedule with rates ranging from 0.5 to 2.0 percent of payroll).

Financing

Excludes from the state employment security fund federal fund disbursements (i.e., Reed Act funds) made to the states from the Employment Security Administration Account when calculating the state’s unemployment insurance taxable wage base.

Provides for the deposit of such funds in the state’s Employment Tax Guarantee Fund.

Financing

Provides for non-charging of an employer’s account when separation from that employer is caused by the employer being called to active military service.

Coverage

Effective for claims filed on or after September 1, 2003, excludes from the definition of "employment" service performed by a nonresident alien during the period that the alien is temporarily in the United States under an H2-A visa (to perform agricultural service) if the service is not defined as employment under the Federal Unemployment Tax Act (FUTA).

Administration

Describes the responsibilities of the Texas Workforce Commission. Clarifies that the Commission may not:

• direct the day-to-day operations of the executive director or other commission staff; or

• establish the details for the implementation of commission policies or direct the executive director or other commission staff about those details.

Appeals

Provides for the commission to develop, by rule, procedures to ensure that an appeal tribunal makes every effort in a hearing conducted by telephone to obtain all relevant facts and evidence.

Nonmonetary Eligibility

Provides that an individual will not be disqualified from receiving benefits because the individual left work to protect the individual from family violence or stalking (prohibits evidence regarding an employee who leaves work for this reason to be disclosed to any person without the consent of the employee, except as provided by law).

Financing

Provides that the commission may deny the transfer of an experience tax rate if it determines, based on credible evidence, that an acquisition was done primarily to qualify for a reduced unemployment insurance tax rate by:

• circumventing the experience rating system; or

• manipulating the experience rating system by minimizing the impact of chargebacks to the predecessor employer’s tax account.

Requires, for a transfer of experience to be approved, that among other things:

• an application for such a transfer be filed not later than the first anniversary of the effective date of the acquisition; and

• the applicants show that:

  • the acquired part of the organization, trade, or business is capable of operating independently and separately from the predecessor employer; and

  • the wages attributable to the acquired part of the organization, trade, or business are solely attributable to services provided on behalf of the acquired part of the organization, trade, or business.

Non-charges an employer’s account for benefits paid to an employee or former employee whose separation from employment results from the employee leaving the workplace to protect the employee from family violence or stalking as evidenced by:

• an active or recently issued protective order documenting family violence against, or the stalking of, the employee or the potential for family violence against, or the stalking of, the employee;

• a police record documenting family violence against, or the stalking of, the employee; and

• a physician's statement or other medical documentation of family violence against the employee.

Non-charges an employer’s account for benefits paid to an individual who leaves work to attend training approved by the commission.

Changes the computation of the numerator of the deficit assessment by subtracting only the balance of the compensation fund from its floor, not any other liabilities of the fund.

Repeals provision dealing with the transfer to a special administration fund.

Effective June 20, 2003

Authorizes the state agency to issue bond obligations to finance the payment of unemployment benefits in order to avoid borrowing from the federal Unemployment Trust Fund or to repay principal and interest on previous advances from the federal Unemployment Trust Fund.

Abolishes the advance interest trust fund and transfers all money in that fund to the new obligation trust fund for the payment of bond obligations.

Requires an unemployment obligation assessment to be assessed annually on every employer entitled to experience rating if any bonds are outstanding, and provides for the proceeds of that assessment to be placed in the obligation trust fund.

Financing

Provides that an employer who elects to make a voluntary contribution for the recomputation of the employer’s experience rate must make the contribution as prescribed by rules adopted by the commission (previously required voluntary contributions to be made not later than the 30th day after the date on which the commission mailed the annual notice of the employer’s experience rate).