129th MAINE LEGISLATURE
		LD 1058		LR 1227(02)
	An Act Concerning Liability for Direct Reimbursement of Unemployment Benefits
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Labor and Housing
	Fiscal Note Required: Yes
Fiscal Note
Current biennium cost increase - Other Funds Potential current biennium revenue decrease - Federal Expenditures Fund
Fiscal Detail and Notes
	Providing that a governmental entity that elects to make payments in lieu of contributions into the Unemployment Compensation Trust Fund is not liable to make payments for an individual who voluntarily separates from employment would create a conformity issue with the Federal Unemployment Tax Act (FUTA).  Being ruled out of conformity would jeopardize Maine employers' FUTA tax credits, increasing employer federal unemployment taxes by approximately $210 million annually, as well as $19 million in federal funds that Maine currently receives to administer the state's Employment Security laws.