Date: 02/20/2006

Final
BILL SUMMARY for HB06-1327

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved to refer House Bill 06-1327 to the CommitteePASS



04:58 PM -- House Bill 06-1327

Representative Cerbo, prime sponsor, explained House Bill 1327 that would create a pilot program for an alternative base period for unemployment insurance benefits where if a person does not make $2,500 in the base period, then the last four quarters prior to the benefit period would be included. . He explained the unemployment insurance process and how benefits are determined. Currently, in order to qualify for unemployment benefits a person must: make at least $2,500 in the first four out of the last five quarters preceding the benefit period, known as the base period. Committee discussion followed about the fiscal note.

05:02 PM

There was committee discussion about the provision of the bill that allows the Division of Employment to accept an affidavit for the quarter immediately preceding the benefit period if the employer cannot produce the information. The committee talked about the quality and reliability of the employee's as opposed to the employer's records.

05:05 PM

Mike Cullen, representing the Department of Labor and Employment (DOLE), testified on the bill. He explained the process the department uses to determine eligibility for unemployment benefits. He stated that the reason for the lag period is because it takes employers time to report those wages. He explained that the bill would require DOLE to go to the employers and shift to the lag period, or if the employer does not respond in time they would accept an affidavit from the employee of their wages.

05:13 PM -- Chuck Berry, representing the Colorado Association of Commerce and Industry, testified in opposition to the bill based on the fiscal note. He stated that unemployment insurance taxes will increase by $0.9 million in FY 2007-08, $2.0 million in FY 2008-09, and $2.4 million in FY 2008-09.

05:15 PM -- Rich Jones, representing the Bell Policy Center, testified in support of the bill. He distributed a handout (Attachment N).

05:18 PM -- Cathy White, representing the Colorado Fiscal Policy Institute, testified in support of the bill. She gave some statistics on the impact of unemployment benefits to low income families. Ms. White stated that the bill addresses very low wage workers and a very small percentage of those workers. She added that the unemployment insurance rules require recipients to be actively seeking a job, and that they must have lost their job though no fault of their own in order to qualify for benefits as well as meet the $2,500 threshold. Ms. White stated that low-income unemployed individuals seek new work quickly since, even with unemployment insurance benefits, there is not sufficient income.

05:25 PM -- Linda Meric, Director, 9 to 5, National Association of Working Women, spoke in support of the bill. She provided a copy of a study which evaluates the impact and cost of implementing an alternative base period (a copy is available on file at the Colorado State Archives). She indicated that Colorado in ranked 50th in the number of unemployed individuals who receive unemployment benefits. She provided statistics on who the recipients of unemployment benefits are.

05:29 PM -- Mike Cullen, Division of Unemployment Insurance, DOLE, returned to the table to make additional comments on the bill and fiscal note, indicating that several computer systems that will require changing due to this bill.

05:32 PM

Representative Cerbo concluded his remarks on HB 1327.

BILL:HB06-1327
TIME: 05:35:09 PM
MOVED:Cerbo
MOTION:Moved to refer House Bill 06-1327 to the Committee on Appropriations. The motion passed 7-6.
SECONDED:Butcher
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
McCluskey
No
Paccione
Yes
Penry
No
Welker
No
Cerbo
Yes
Marshall
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS