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Subcommittee endorses changes to unemployment indexing, agrees to 2027 effective date
Summary
Officials say House Bill 3477's indexing of unemployment insurance can be implemented but urged changes: allow benchmarked BLS data, delay the indexing to Jan. 1, 2027 for system updates, and avoid mandated regulation language; the subcommittee reported the bill favorably with the new effective date.
A legislative subcommittee voted to report House Bill 3477 favorably after the Department of Employment and Workforce (DEW) outlined implementation needs and statutory adjustments for the bill that would index unemployment insurance benefits to labor-market conditions.
Paul Familari, the department's assistant executive director for unemployment insurance, told the panel DEW can implement the indexing with sufficient lead time but recommended several changes to reduce operational risk. "Our preference is for this indexing portion of the bill to be effective for unemployment insurance claims that are effective on or after 01/01/2027," Familari said, noting that date would provide time for coding and regression testing.
Why it matters: The bill would change the weeks of benefits available depending on the unemployment rate. Familari said using benchmarked Bureau of Labor Statistics data is more reliable for the bill's reference periods and advised striking language that prohibits DEW from using such data. He also recommended removing a statutory requirement that the agency promulgate detailed regulations on work-search and fraud responses, saying that prescriptive rules can constrain fraud-fighting agility.
Statutory concerns: Familari urged the committee to consider revising statutory disqualification language in section 41-35-120 that imposes indefinite disqualification for certain offenses (including some drug-related and "gross misconduct" provisions), proposing those penalties mirror existing misconduct penalties rather than remain indefinite.
Committee action: Members asked whether these recommendations had been raised in the prior session; Familari said some had and two recommendations were newly identified in oversight and trust-fund reports. The committee consented to change the bill's effective date to Jan. 1, 2027. Staff called the roll and recorded "aye" votes during the favorable report.
Next steps: The subcommittee said it may consider additional technical amendments before the full committee takes up the bill. The department indicated it can implement the policy changes if given the recommended lead time and statutory clarifications.
(Provable details: DEW requested striking a sentence that would bar use of benchmarked BLS data, changing the effective date to 01/01/2027, and removing a required regulation promulgation; the transcript cites section 41-35-120 in relation to indefinite disqualifications.)
