Senate committee holds first hearing on bill requiring legislative approval for voluntary federal unemployment benefits

The Senate Financial Institutions, Insurance and Technology Committee held a first hearing on Senate Bill 51, which would require legislative approval before the state accepts voluntary federal unemployment benefit programs, Sen. Schafer, sponsor of the bill, told the committee.

Schafer said the bill would “provide the legislative oversight of executive action on unplanned loans or grants of federal voluntary unemployment compensation benefits.” He argued the state should be a “proactive participant in the oversight of unemployment benefits” and said pandemic-era benefits had unintended economic effects, including reports of businesses “begging for employees, restricting hours, and even closing.”

The bill sponsor told the committee that Governor DeWine ended the extra $300 weekly federal unemployment payments in June 2021 and that new applications for Pandemic Unemployment Assistance (PUA) ended Sept. 4, 2021. Schafer said the measure is not intended as an attack on any administration and added, “I would make that argument. It backfired on our businesses and the economy.”

Committee Chairman Wilson called the bill up for its first hearing, asked for testimony, and excused the sponsor after Schafer’s remarks. No committee vote or formal committee action was recorded during the hearing.

Why it matters: The bill would shift authority over whether to accept certain federal unemployment programs from the executive branch to the Legislature, changing the balance of oversight and approval for future federal offerings of voluntary unemployment benefits.

The committee did not take further action on Senate Bill 51 during the meeting; the sponsor was excused after testimony and the hearing concluded.