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COMMITTEE REPORT
February 20, 2002
H. 4013
S. Printed 2/20/02--H.
Read the first time April 25, 2001.
To whom was referred a Bill (H. 4013) to amend Section 41-27-310, Code of Laws of South Carolina, 1976, relating to the definition of "insured worker" under the South Carolina Employment Security Law, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by deleting Sections 1, 2, and 3 of the bill in their entirety.
Renumber sections to conform.
Amend totals and title to conform.
HARRY F. CATO for Committee.
EXPLANATION OF IMPACT:
The Employment Security Commission has indicated that enactment of this bill would have no fiscal impact on the General Fund of the State nor on federal and/or other funds. This bill clarifies the definition of an "insured worker"
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 41-27-310, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE DEFINITION OF "INSURED WORKER" UNDER THE SOUTH CAROLINA EMPLOYMENT SECURITY LAW, SO AS TO PROVIDE THAT THIS TERM IS DEPENDENT UPON PAYMENT OF WAGES IN AT LEAST TWO QUARTERS RATHER THAN UPON THE AMOUNT OF WAGES PAID IN A SPECIFIED PERIOD; TO AMEND SECTION 41-27-370, AS AMENDED, RELATING TO THE DEFINITION OF "UNEMPLOYED", SO AS TO PROVIDE THAT IF AN INDIVIDUAL HAS MADE ANY CONTRIBUTIONS TO A RETIREMENT OR OTHER TYPE PLAN THERE MUST NOT BE A REDUCTION IN THE WEEKLY BENEFIT AMOUNT PAYABLE TO THE INDIVIDUAL; TO AMEND SECTION 41-35-130, RELATING TO UNEMPLOYMENT BENEFIT PAYMENTS WHICH MAY NOT BE CHARGED TO A FORMER EMPLOYER, SO AS TO CLARIFY THAT SUCH PAYMENTS MAY NOT BE CHARGED IF THE PERSON LEFT EMPLOYMENT FOR GOOD CAUSE NOT CONNECTED WITH THE EMPLOYMENT; TO AMEND SECTION 41-41-20, RELATING TO THE SUSPENSION OF BENEFITS TO A CLAIMANT WHO MADE A FALSE STATEMENT OR FAILED TO DISCLOSE A MATERIAL FACT WHEN FILING A CLAIM, SO AS TO AUTHORIZE THE EMPLOYMENT SECURITY COMMISSION TO PENALIZE THE CLAIMANT BY WITHHOLDING FUTURE BENEFITS HE MAY BECOME ENTITLED TO; AND TO AMEND SECTION 41-41-40, AS AMENDED, RELATING TO RECOVERY OF BENEFITS PAID TO A PERSON NOT ENTITLED TO RECEIVE THEM, SO AS TO ESTABLISH CIRCUMSTANCES UNDER WHICH THE COMMISSION MAY WAIVE REPAYMENT OF OVERPAID BENEFITS AND TO REQUIRE A PERSON WHO RECEIVED BENEFITS IN ANOTHER STATE TO WHICH HE WAS NOT ENTITLED TO PAY THE COMMISSION FOR THESE OVERPAYMENTS IF BOTH STATES HAVE ENTERED INTO AN INTERSTATE RECIPROCAL OVERPAYMENT RECOVERY AGREEMENT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 41-27-310 of the 1976 Code is amended to read:
"Section 41-27-310. An 'insured worker' is an individual who has been paid wages in at least two quarters in his base period for insured work equal to or exceeding one and one-half times the total of his wages paid in the quarter of such base period in which his wages for insured work were highest; provided, however, that no individual shall qualify qualifies as an insured worker unless he has been paid at least nine hundred dollars in his base period for insured work and five hundred forty dollars in that quarter of his base period in which such his wages were highest."
SECTION 2. Section 41-27-370(2) of the 1976 Code, as amended by Act 349 of 2000, is further amended to read:
"(2) An individual is deemed 'unemployed' in any week during which no governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment which is attributable to his employment is payable to him, or, if such the payment is payable to him with respect to such these weeks, the amount thereof is less than his weekly benefit amount. Each An eligible individual who is unemployed in any week and who is receiving a governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment which is attributable to his employment must be paid with respect to such that week a benefit in an amount equal to his weekly benefit amount less the pension, retirement or retired pay, annuity, or other similar periodic payment payable to him with respect to such that week. Such The benefit if not a multiple of one dollar must be computed to the next lower multiple of one dollar. The amount of benefits payable to an individual for any a week which begins after the effective date of the applicable provision in the Federal Unemployment Tax Act and which begins in a period with respect to which such the individual is receiving a governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment which is based on the previous work of such the individual must be reduced (, but not below zero), by an amount equal to the amount of such the pension, retirement or retired pay, annuity, or other payment which is reasonably attributable to such that week. However, if the provisions of the Federal Unemployment Tax Act permit, the requirements of this subsection shall only apply in the case of a pension, retirement or retired pay, annuity, or other similar periodic payment under a plan maintained ( or contributed to) by a base period employer or chargeable employer.
In the event If the individual has participated in any a pension, retirement or retired pay, annuity, or other similar plan of the base period employer or chargeable employer by having made any contributions to such the plan, there must be no reduction in the weekly benefit amount payable to such the individual for such the week shall be reduced (but not below zero):
(a) by the pro-rated weekly amount of the pension after deductions of that portion of the pension that is directly attributable to the percentage of the contributions made to the plan by such individual; or.
(b) by No part of the pension may be deducted if the entire contributions to the plan were provided by such the individual, or by the individual and an employer (or any other a person or organization) who is not a base period employer or chargeable employer; or
(c) by the entire pro-rated weekly amount of the pension if item (a) or item (b) does not apply.
This provision is effective for all weeks commencing on or after August 29, 1982.
For purposes of this subsection, social security benefits are not considered a governmental or other pension, retirement or retired pay, annuity, or other similar periodic payment attributable to the beneficiary's employment. As a result, the offset of social security will must be reduced from 50% to 0% based on the fact that individuals are required to contribute to social security."
SECTION 3. Section 41-35-130 of the 1976 Code is amended to read:
"Section 41-35-130. (a) Benefits paid to any a claimant for unemployment immediately after the expiration of disqualification for (1) voluntarily leaving his most recent work without good cause, (2) discharge from his most recent work for misconduct cause connected with the employment or, (3) refusal of suitable work without good cause shall must not be charged to the account of any an employer.
(b) Benefits paid to any a claimant shall must not be charged against the account of any an employer by reason of the provisions of this subparagraph subsection only if the commission determines under Section 41-35-120 that such the individual (1) voluntarily left his most recent employment with that employer without good cause connected with the employment or for good cause not connected with the employment, (2) was discharged from his most recent employment with that employer for misconduct connected with his work, or (3) subsequent to his most recent employment refused without good cause to accept an offer of suitable work made by that employer if, in any such case, such the employer furnishes the commission with such those notices regarding the separation of the individual from work or the refusal of the individual to accept an offer of work as are or may be required by the law and the regulations of the commission.
(c) If benefits are paid pursuant to a decision which is finally reversed in subsequent proceedings with respect thereto, no employer's account shall may be charged with benefits so paid.
(d) Any Benefits paid to any a claimant for a week in which he is in training with the approval of the commission shall must not be charged to any an employer.
(e) The provisions of paragraphs subsections (a) through (d), all inclusive, hereof with respect to the noncharging of benefits paid shall be are applicable only to those employers subject to the payment of contributions.
(f) Benefits paid to a claimant during an extended benefit period as defined in Chapter 35, Article 3, shall must not be charged to any an employer; provided, however, that any a nonprofit organization electing to become liable for payments in lieu of contributions in accord with Section 41-31-620 shall be required to reimburse fifty percent of extended benefits attributable to services performed in its employ and provided, further, that. After January 1, 1979, the State or any a political subdivision or any an instrumentality thereof of the State as defined in Section 41-27-230(2)(b) electing to become liable for payment in lieu of contributions in accord with Section 41-31-620 shall be required to reimburse all extended benefits attributable to services performed in its employ.
(g) Any A nonprofit organization which elects to make payments in lieu of contributions into the unemployment compensation fund as provided in Section 41-31-620(2) or Section 41-31-810 shall is not be liable to make such these payments with respect to the benefits paid to any an individual whose base period wages include wages for previously uncovered services as defined in Section 41-35-65 to the extent that the unemployment compensation fund is reimbursed for such these benefits pursuant to Section 121 of P.L. 94-566.
(h) Benefits paid to any an individual whose base period wages include wages for previously uncovered services as defined in Section 41-35-65 shall must not be charged against the account of any an employer to the extent that the unemployment compensation fund is reimbursed for such these benefits pursuant to Section 121 of P.L. 94-566."
SECTION 4. Section 41-41-20 of the 1976 Code is amended to read:
"Section 41-41-20. (A) Any A claimant found by the commission knowingly to have made a false statement or who knowingly failed to disclose a material fact when filing a compensable claim to establish his right to or increase the amount of his benefits, shall be is ineligible to receive any benefits for any week for which such the claim was filed, and in addition shall be is ineligible to receive any further benefits for not less than ten nor and not more than fifty-two consecutive weeks as determined by the commission according to the circumstances of the case, such these weeks to commence with the date of the determination. In any case the determination may be appealed in the same manner, within the same time, and through the same procedures as any other determination with respect to the benefit eligibility of a claimant.
(B) If the commission finds that a fraudulent misrepresentation has been made by a claimant with the object of obtaining benefits under this chapter to which he was not entitled, in addition to any other penalty or prosecution provided under this chapter, the commission may make a determination that there must be deducted from benefits to which the claimant might become entitled during this present benefit year or the next subsequent benefit year, or both, an amount not less than two times his weekly benefit amount and not more than his maximum benefit amount payable in a benefit year, as determined under Chapter 35. This deduction takes effect on the date of the determination. An appeal from this determination must be made in the manner prescribed in Chapter 35, Article 5."
SECTION 5. Section 41-41-40 of the 1976 Code, as amended by Act 181 of 1993, is further amended to read:
"Section 41-41-40. (A)(1) Any A person who, has received any a sum as benefits under Chapters 27 through 41 of this title while any conditions for the receipt of benefits imposed by such these chapters were not fulfilled in his case or while he was disqualified from receiving benefits shall be is liable to repay the commission for the unemployment compensation fund a sum equal to the amount so received by him.
(2) In the event If full repayment of benefits, to which an individual was determined not entitled, has not been made such the sum will must be deducted from any future benefits payable to him under Chapters 27 through 41 of this title, and such the sum shall must be collectible in the manner provided in Sections 41-31-380 to 41-31-400 for the collection of past-due contributions.
(3) The commission may, at its discretion, attempt collection of overpayments through the South Carolina Department of Revenue in accordance with Section 12-7-2240 12-56-10 et. seq. If the overpayment is collectible in accordance with Section 12-7-2240 12-56-60, the commission shall add to the amount of the overpayment a collection fee of ten not more than twenty-five dollars for each collection attempt to defray administrative costs.
(4) Notwithstanding any other provision of this section, no action to enforce recovery or recoupment of any overpayment may begin after five years from the date of the final determination.
(B)(1) A person who is overpaid any amounts as benefits under Chapters 27 through 41 is liable to repay those amounts, except as otherwise provided by this subsection.
(2) Upon written request by the person submitted to the commission within the statutory appeal period from the issuance of the determination of overpayment, the commission may waive repayment if the commission finds that the:
(a) overpayment was not due to fraud, misrepresentation, or wilful nondisclosure on the part of the person;
(b) overpayment was received without fault on the part of the person; and
(c) recovery of the overpayment from the person would be contrary to equity and good conscience.
(3) Decisions denying waiver requests are subject to the appeal provisions of Chapter 35.
(C) A person who has received a sum as benefits under the comparable unemployment law of any other state while conditions imposed by that law were not fulfilled or while he was disqualified from receiving benefits by that law is liable to repay the commission for the corresponding unemployment compensation fund of the other state a sum equal to the amount received by him if the other state has entered into an Interstate Reciprocal Overpayment Recovery Agreement with the State and has furnished the commission with verification of the overpayment as required by the agreement. Recovery of overpayments under this subsection are not subject to the provisions of subsections (A)(3) and (B)."
SECTION 6. This act takes effect upon approval by the Governor.
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