South Carolina General Assembly
117th Session, 2007-2008

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Bill 334

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter Stricken

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COMMITTEE REPORT

March 14, 2007

S. 334

Introduced by Senators Leventis, Hayes, Knotts, Drummond, Anderson and Ford

S. Printed 3/14/07--S.

Read the first time January 24, 2007.

            

THE COMMITTEE ON

LABOR, COMMERCE AND INDUSTRY

To whom was referred a Bill (S. 334) to amend Section 41-35-120, as amended, Code of Laws of South Carolina, 1976, relating to disqualification for benefits of an insured worker under the employment, etc., respectfully

REPORT:

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 striking all after the enacting words and inserting:

/    SECTION 1.    Article 1, Chapter 35, of Title 41 is amended by adding:

"Section 41-35-126.    Notwithstanding the provisions of Section 41-35-120, an individual is eligible for waiting week credit and for unemployment compensation if the Commission finds that the individual has left work voluntarily to relocate because of the transfer of a spouse who has been reassigned from one military assignment to another, provided that the separation from employment occurs within fifteen days of the scheduled relocation date."

SECTION 2.    Section 41-35-130 of the 1976 Code is amended by adding:

"(j)    Benefits paid to an individual pursuant to Section 41-35-126 must not be charged to the account of a contributing employer."

SECTION 3.    This act takes effect upon approval by the Governor.    /

Amend the Bill further, by striking the title and inserting:

/        TO ADD SECTION 41-35-126, AND TO AMEND SECTION 41-35-130, AS AMENDED, OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PAYMENT OF BENEFITS TO AN INSURED WORKER UNDER THE EMPLOYMENT SECURITY LAW, SO AS TO PROVIDE THAT LEAVING AN EMPLOYER BECAUSE OF THE TRANSFER OF A SPOUSE FROM ONE MILITARY ASSIGNMENT TO ANOTHER DOES NOT DISQUALIFY A PERSON FROM THESE BENEFITS.            /

Renumber sections to conform.

WILLIAM MESCHER for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

This bill would have no impact on state or local revenues.

Explanation

Currently, a person voluntarily leaving a position covered by employment insurance in this state is deemed to have left "without good cause" and is, therefore, not eligible or unemployment compensation by definition. This bill provides an exception for those workers who leave covered employment to follow a spouse from one military assignment to another. Such workers would now be eligible for applicable benefits as having left insured employment for "good cause". The bill further provides that these benefits would not be charged to that person's former employer.

Based on an assessment by Unemployment Insurance staff, this bill would have minimal impact upon the state unemployment compensation fund that is used to pay these benefits. since these funds stem from pooled contributions of applicable employers, the bill would have no impact on state or local revenues in FY 2007-08.

Approved By:

William C. Gillespie

Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact by the BEA, or Section 2-7-76 for a local revenue impact or Section 6-1-85(B) for an estimate of the shift in local property tax incidence by the Office of Economic Research.

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

See Below

EXPLANATION OF IMPACT:

Employment Security Commission

This bill would have no direct impact on the General Fund of the State. In addition, the number of instances which may occur is unknown. The commission reports the average unemployment claim for all state employers is $3,150 per person paid at a rate of $225 per week for 14 weeks. These claims are paid directly from the Unemployment Compensation Trust Fund. These funds expenditures are not budgeted funds within the State appropriations act.

State Government

The State Budget and Control Board-Office of Human Resources (OHR) reports 14 terminations from state employment in FY 2005-06 related to military service. However, The office cannot determine which of these terminations may have resulted from the transfer or reassignment of the employee's spouse. Based on this data, the Comptroller General indicates this bill will have a minimal impact on the State's Unemployment Compensation Fund administered by the Comptroller General.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND SECTION 41-35-120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DISQUALIFICATION FOR BENEFITS OF AN INSURED WORKER UNDER THE EMPLOYMENT SECURITY LAW, SO AS TO PROVIDE THAT LEAVING AN EMPLOYER BECAUSE OF THE TRANSFER OF A SPOUSE FROM ONE MILITARY ASSIGNMENT TO ANOTHER DOES NOT DISQUALIFY A PERSON FROM THESE BENEFITS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 41-35-120(1) of the 1976 Code is amended to read:

"(1)    Leaving work voluntarily. - If the Commission finds that he has left voluntarily, without good cause, his most recent work prior to before filing a request for determination of insured status or a request for initiation of a claim series within an established benefit year, with ineligibility beginning with the effective date of the request and continuing until he has secured employment and shows to the satisfaction of the Commission that he has performed services in employment as defined by Chapters 27 through 41 of this title and earned wages for such these services equal to at least eight times the weekly benefit amount of his claim. However, leaving an employer to accompany a spouse who has been reassigned from one military assignment to another is deemed to be for good cause. The employer's account may not be charged for any benefits paid out to the person who leaves to accompany a spouse reassigned from one military assignment to another."

SECTION    2.    This act takes effect upon approval by the Governor.

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