summary
Introduced
02/06/2023
02/06/2023
In Committee
02/06/2023
02/06/2023
Crossed Over
Passed
Dead
04/10/2023
04/10/2023
Introduced Session
2023 Regular Session
Bill Summary
AN ACT concerning Unemployment Insurance Modernization Act of 2023 FOR the purpose of altering the taxable wage base used to determine employer contributions to the Unemployment Insurance Trust Fund; requiring the Maryland Department of Labor, on or before a certain date each year, to determine and make available online the State annual average wage applicable to the rate of contribution; requiring the Secretary of Labor to set the taxable wage base and the maximum weekly benefit amount in a certain manner for certain years; prohibiting the applicable table of rates from shifting more than a certain number of tables under certain circumstances; establishing certain collateral requirements for certain investment funds that own certain portfolio companies; requiring and authorizing the Secretary to take certain actions related to the collateral; altering the circumstances under which an employing unit qualifies for an earned rate of contribution that is based on the experience of the employing unit; altering the circumstances under which an individual is eligible for unemployment benefits; repealing the methodology used to calculate the weekly benefit amount; establishing the methodology to be used to calculate the weekly benefit amount; and generally relating to unemployment insurance. BY repealing and reenacting, without amendments, Article - Labor and Employment Section 8-606(a) and (d) and 8-625(d) Annotated Code of Maryland (2016 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Labor and Employment Section 8-607(b), (c), and (d)(1), 8-610(a), 8-612, 8-626, 8-633, 8-802, 8-804, 8-1302, and 8-1304 Annotated Code of Maryland (2016 Replacement Volume and 2022 Supplement) SENATE BILL 670 BY adding to Article - Labor and Employment Section 8-612.1 and 8-803 Annotated Code of Maryland (2016 Replacement Volume and 2022 Supplement) BY repealing Article - Labor and Employment Section 8-803 Annotated Code of Maryland (2016 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Labor and Employment Section 8-610(a) and 8-612(b) Annotated Code of Maryland (2016 Replacement Volume and 2022 Supplement) (As enacted by Section 3 of this Act)
AI Summary
This bill, the Unemployment Insurance Modernization Act of 2023, makes several key changes to Maryland's unemployment insurance system:
1. It gradually increases the taxable wage base (the maximum amount of wages subject to unemployment contributions) to 25% of the state's average annual wage by 2027 and beyond.
2. It requires the Department of Labor to annually determine and publish the state's average annual wage, which is used to set the taxable wage base and maximum weekly benefit amount.
3. It establishes new collateral requirements for investment funds that own 30% or more of a portfolio company with a high debt ratio, requiring them to provide a surety bond or other approved collateral to the Secretary of Labor.
4. It alters the circumstances under which an employing unit qualifies for an earned rate of contribution and changes the benefit ratio calculation period from 3 to 4 or 5 years.
5. It repeals the existing methodology for calculating the weekly benefit amount and establishes a new formula based on the claimant's highest quarterly wages during the base period, with the weekly benefit set at a percentage of the state's average weekly wage.
6. It prohibits the unemployment insurance contribution rate tables from shifting more than 2 tables in a year, if that would result in a higher rate.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Senate Finance Hearing (13:00:00 2/21/2023 ) (on 02/21/2023)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0670?ys=2023RS |
| BillText | https://mgaleg.maryland.gov/2023RS/bills/sb/sb0670f.pdf |
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