COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         5056-01

Bill No.:          HB 2438

Subject:           Employees - Employers

Type:              Original

Date:               April 2, 2008

Bill Summary:            This proposal disqualifies waiting week credit and benefits for claimants who are discharged for providing false information on an employment application regarding criminal convictions or job qualifications.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials at the Office of the Attorney General assume that there is no fiscal impact from this proposal.

Officials at the Department of Labor and Industrial Relations assume that the number of individuals affected by this provision would be small. However, the Department is unable to determine the actual number of individuals who would be discharged under these circumstances. Based on an average weekly benefit amount ($224.81) and the average claim duration (14 weeks), each claim would potentially result in $3,147.34 in unemployment benefits being paid from the Unemployment Compensation Trust Fund. For each claimant that would be disqualified for receiving waiting week credit and benefits, it is assumed $3,147.34 would be saved.

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

FISCAL DESCRIPTION

This bill specifies that a claimant for unemployment benefits will be deemed discharged for misconduct and disqualified for waiting week credit and benefits if he or she was discharged for providing false information on his or her employment application regarding criminal convictions or job qualifications.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of the Attorney General

Department of Labor and Industrial Relations

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 2, 2008