Changes references to the Standard Industrial Classification to the North American Industry Classification System.

Updates the prohibition against denying benefits because an individual is attending State approved training to reference the Workforce Investment Act .

Benefits

Limits the disqualification for misconduct connected with work to the insured worker's last work.

Effective October 7, 2001:

Changes Abenefit year@ from the one-year period beginning with the first day a claim is filed to a 52-week period beginning the Sunday preceding the day a claim is filed.

Provides that the benefit year is a 53-week period if the filing for a determination would result in overlapping any quarter of the base period of a previously filed request for determination.

Provides that a transition period during which claims established prior to October 7, 2001, shall be completed as originally established. If an insured worker=s benefit year ends on any day other than a Sunday, the benefit year will be extended until 11:59pm the following Saturday.

Credits to the Unemployment Revenue fund: (1) penalties collected from employers for late report filings; (2) claimant penalties collected and all investigative costs awarded in connection with overpayments established due to an individual= s false representation or willful failure to disclose a material facts (repaid benefits will be deposited into the unemployment trust fund); and (3) money remaining in the federal advance interest repayment fund after interest charges a administrative costs have been paid

Increases over a 3-year period the maximum level of quarterly wage credits for purposes of computing benefits as follows:

After July 1, 2000 and prior to July 1, 2001: $6700

After July 1, 2001 and prior to July 1, 2002: $7300

After July 1, 2002 and prior to July 1, 2003: $7900

Financing

Added a new rate schedule (E) that decreases the contribution rate for certain employers; rates for positive balance employers range from 0.15 to 2.4 percent and for negative balance employers from 3.6 to 5.4 for calendar year 2001. Employer rates will be set according to schedule D for calendar year 2002.

Changes the program name from "reemployment compensation" to the "unemployment compensation program" and, where applicable, changes the term "benefit" to "unemployment benefit."

Financing

Changes the time period from 3 to 2 years for which a nonprofit organization is bound when it elects to change from taxable to reimbursable status.

Changes the conditions under which nonprofit organizations can change from taxable to reimbursable status, so that an employer can switch if it paid an amount of taxes that exceeded the benefits to its employees by 25 percent over the past 5 years. Previously, an employer either had to have no benefit charges or had to pay down its experience rating to zero.

Permits the commissioner of economic security to apply the compromise authority (i.e., to change in whole or in part any action, determination, or decision) that is applicable to all other employers to nonprofit organizations.

Modifies the filing of lien provisions to require that the commission deliver a copy of the warrant issued to the sheriff on employers failing to pay contributions and assessments to the clerk of the circuit court.

Further modifies the lien provisions to, among other things, specify that a judgement not be a lien upon the property of the employer for a period of more than 7 years from the date of filing of the notice of the tax lien unless action be brought before the expiration of such time or unless the commission refiles such notice of tax lien before the expiration of such time. The judgment is a lien upon the property of the employer for a period of 7 years from the date of refiling such notice of tax lien unless action be brought before the expiration of such time or unless the commission refiles (without limit to the number of times) such notice of tax lien before the expiration of such time.

Permits the commission to issue the warrant directly to the circuit clerk of any county of the State for enrollment upon the judgment rolls of the county.

Provides that an individual is deemed to have left employment for good cause if escaping abuse and is not disqualified from benefits for voluntarily leaving work provided all reasonable efforts to preserve the employment were made.

Provides that no benefits will be charged to an employers experience account for benefits paid based on the claimant voluntarily leaving work with good cause to escape abuse.

Deletes the language requiring the suspension of certain provisions of the extended benefits program.

Coverage

Makes technical corrections in the exclusion from employment for services performed in rehabilitation facilities or sheltered workshops.

Deletes the requirements for the risk management advisory board to annually determine and transfer balances of the State government unemployment compensation reserve fund.

Provides that the State government unemployment compensation reserve fund money may be used to establish and maintain a reserve fund for reimbursing state agencies for benefits paid to their former employees.

Provides that after December 31, 2000, new employer rates will be assigned based on the North American Industry Classification System, rather than the Standard Industrial Classification System.

Increases the maximum weekly benefit payable from 60 to 65 percent of the "insured average fiscal year weekly wage" during the preceding fiscal year for individuals whose benefit year begins on or after January 1, 2001.

Financing

Beginning January 1, 2000, establishes the social contribution at a fixed amount of 0.1 percent rather than a calculated amount, provided the reserve factor is 1.000 or less. Retains the current procedures when the reserve factor is greater than 1.000 - - social costs for the previous 4 years divided by total taxable wages

Modifies the determination of the reserve factor to set it at a rate that sustains an adequate reserve. Defines "adequate reserve" as "between 17 and 19 months of benefits at the average of the five highest benefit cost rates in the last 25 years."

Eliminates the requirement for a recorded hearing in cases of UI fraud. Therefore, determinations regarding fraud are appealable in the same manner as appeals from other benefit determinations.

Coverage

Changes the definition of wages to conform with Section 3306(b), Federal Unemployment Tax Act with some modifications.

Deletes the authority for the Employment Security Department to deduct a processing fee when intercepting or deducting child support from unemployment insurance benefits.