A bill eliminating unemployment benefits for criminals and raising the standards and accountability for those receiving benefits passed through its first committee stop Tuesday.
Sen. Nancy Detert, R-Venice, who chairs the Commerce and Tourism Committee, sponsored Senate Bill 728 and said that the recent economic implosion which led to large debts and interest payments to the federal government have pushed the need for reform.
There were thousands of businesses that used to pay into the system that are now out of business, Detert said.
Before the economic downturn, the states unemployment compensation trust fund was funded at $2 billion. But a swath of layoffs and business closings in the wake of the crumbling economy pushed Florida to borrow $2 billion from the federal government as the states unemployment rate surged into double figures.
Deterts bill requires unemployment compensation claimants to complete a skills review within two weeks of a new claim and provide proof of their efforts to seek employment either online or through regular mail, instead of over the phone as it's currently done.
The bill also requires those receiving unemployment claims to look for work that pays at least 80 percent of their former paycheck for the first 12 weeks. After that, claimants must seek work that pays at least the amount of their claims.
Some of those changes must be approved by the U.S. Department of Labor, but Detert said her staff has been working with the agency to ensure that there isnt anything in the bill that wouldnt be approved by the department.
We worked very hard with the U.S. Labor Department, we already checked with them, Detert said.
Unions and other progressive groups have spoken out against the bill, saying that it places too many burdens on those out of work and could adversely hurt the economy.
The unemployment insurance system, its not a social welfare system, its an insurance system. In times of high unemployment people become lost customers, said Rich Templin, communications director for the Florida AFL-CIO.
The committee also passed an amendment to the bill that eliminated provisions that would have raised the maximum unemployment compensation tax rate paid by employers. Businesses paying the maximum rate of $378 per employee, like many construction businesses and others with large numbers of employees, were opposed to that portion of the bill but now support it with the amendment.
Detert supported the amendment but said it could be reinserted into the bill later.
A lot of members didnt have a confidence level with it. We may put it back in, Detert said.
There may be more additions or subtractions as the bill moves through the committee process, but a provision in a House bill reducing the amount of weeks paid out in unemployment claims isnt likely to make it into Deterts bill. The state of Florida currently pays up to 26 weeks of unemployment compensation, with the federal government paying up to a total of 99 weeks, including the 26 paid by the state.
I dont support that. Thats not in my bill, she said.
Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
