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Senate debates temporary cut to Social Security offset for unemployment benefits; sponsor agrees to hold on third reading
Summary
On Feb. 20, 2004 the Utah Senate suspended rules to consider House Bill 8, a three-year reduction of the Social Security offset on unemployment benefits from 100% to 50% funded by Reed Act money; sponsors and skeptics debated fiscal timing and employer rate impacts and agreed to hold the bill on third reading to consider related unemployment legislation together.
The Utah Senate considered House Bill 8 on Feb. 20, 2004, a proposal to reduce the state offset of Social Security benefits against weekly unemployment compensation from 100% to 50% for a three-year period. The Senate suspended its rules to debate the measure during senate day and heard testimony about funding and employer-rate impacts.
Sen. Jenkins, presenting the bill, described it as a temporary measure funded by Reed Act (REDAC) distributions to the unemployment insurance fund and said the reduction would be in place for three years, after which the issue would be revisited. "It reduced the offset for Social Security benefits against the weekly unemployment compensation from 100% to 50% and provides that the reduced offset operates for a 3 year period," the sponsor said on the floor.
Sen. Evans drew attention to the fiscal note, stating on the floor: "On this fiscal note... $1,114,000 out of that REDAC distribution fund." Senators expressed concern about acting on HB 8 before related unemployment legislation addressing employer rate increases is considered. Sen. Stevenson said he preferred to keep the bill circled until both measures could be heard together so the combined fiscal impact would be clearer.
The sponsor agreed to hold the matter on third reading to allow the related unemployment bill to proceed and for senators to see both measures at the same time. The Senate recorded the suspension of rules to permit immediate consideration; the sponsor committed to hold HB 8 at third reading so the legislative sequence would allow comparison with the companion measure.
Next steps: the bill will be scheduled for third reading; the sponsor pledged procedural accommodation to link HB 8's final consideration with related unemployment-rate legislation.
