FISCAL NOTE

This bill requires the Department of Labor to adopt rules to implement the requirement that a person not be disqualified from receiving unemployment compensation benefits if the person is available for part-time work. The provisions of this bill would become effective June 1, 2003 and would expire June 1, 2006. The Department of Labor estimates that this bill, if enacted, would increase benefit payments from the Unemployment Compensation Trust Fund by $466,667 in fiscal year 2002-03 due to more individuals being eligible for the benefit. The department estimates the full-year impact to the fund would be approximately $5,450,000 in fiscal year 2003-04 and $5,250,000 in fiscal year 2004-05. These estimates are based on the current Insured Unemployment Rate percentage, which may vary in future years.

The State, with a few exceptions, is a direct reimbursement employer and, as such, would experience some increase in unemployment compensation costs if these rules are implemented. However, there are relatively few part-time state employees and the costs, when spread over all agencies, should be able to be absorbed.

The additional costs associated with adopting rules to implement the requirements of this bill can be absorbed by the Department of Labor utilizing existing budgeted resources.

SUMMARY

This bill provides that a person is not ineligible for unemployment benefits solely because the person is not available for full-time work, as long as the person is available to work at least part-time. The bill requires the Department of Labor to provisionally adopt a rule to implement the part-time worker standard and to submit the rule to the joint standing committee of the Legislature having jurisdiction over labor matters and any necessary statutory changes to the Legislature by February 1, 2003. The part-time worker provision would be effective beginning June 1, 2003 and would expire June 1, 2006.