The Governor’s unemployment insurance bill was amended in the Senate and passed out of both the Senate and House on a strong bipartisan vote last week. It now goes to the Governor for signature.

Earlier this session, we wrote about the Governor’s proposal, SB 5061, for revamping the state’s unemployment insurance (UI) system to lower UI tax rates for employers, improve benefits for claimants, and make the UI program more flexible in response to the COVID-19 pandemic and future emergencies. AWC’s analysis of the original bill can be found here.

Before heading to the floor, the bill was amended in the Senate Labor, Commerce, & Tribal Affairs Committee and voted out of committee on a 6-3 vote. The amendments require:

• Employment Securities Department (ESD) to report to the Governor and Legislature by December 1, 2021 to review wages subject to UI taxes and equity for employers;
• Adjustments to the expiration date of the bill’s temporary UI experience rate relief; and
• Capping weekly UI benefits based on the claimant’s previous weekly wage.

On the Senate floor, the bill was amended again to:

• Provide a legislative intent section;
• Give the weekly wage benefit cap an effective date of January 2, 2022;
• Permit ESD to adjust the weekly wage benefit cap by rule to access federal UI funds (like through the CARES Act, the Continued Assistance for Unemployed Workers Act, or other acts); and
• Keep the current period used in calculating the experience rate.

The bill passed off the Senate floor with a strong bipartisan vote of 42-7 on Wednesday, January 27 and was sent to the House for consideration on January 28. House leadership bypassed the normal committee process and brought the bill straight to the floor on Friday, January 29. The bill was voted off the House floor without any further amendments on a bipartisan 89-8 vote. The bill now goes to the Governor for signature.