Fiscal Note & Local Impact Statement

125 th General Assembly of Ohio

Revised

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 ˛ Phone: (614) 466-3615

˛ Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Sub. S.B. 92

DATE:

November 24, 2003

STATUS:

As Passed by the Senate

SPONSOR:

Sen. Nein

LOCAL IMPACT STATEMENT REQUIRED:

No —

No local cost

 


CONTENTS:

Modifies parameters for use of new hire reports, changes unemployment compensation eligibility requirements, and makes other changes in unemployment compensation rules and procedures

 

State Fiscal Highlights

 

STATE FUND

FY 2004

FY 2005

FUTURE YEARS

Federal Operating (FSR Fund 331) and Unemployment/Comp Review Committee (FSR Fund 3V4)

     Revenue

- 0 -

- 0 -

- 0 -

     Expenditures

Potential savings

Potential savings

Potential savings

Note:  The state fiscal year is July 1 through June 30.  For example, FY 2004 is July 1, 2003 – June 30, 2004.

 

·        The bill makes changes to unemployment compensation eligibility requirements in cases of major disasters, the processing of unemployment compensation claims, and extends the collateral estoppel doctrine to reviewing courts on issues of eligibility determination.  There are no fiscal effects to these changes.

·        The bill modifies the parameters for use of new hire reports in several programs, extending their use beyond detection of fraud, and extending their use to employment security programs.  These changes may result in greater effectiveness of the administration of these programs, producing potential savings, but these effects are not measurable.

Local Fiscal Highlights

 

·        No direct fiscal effect on political subdivisions.

 



 

Detailed Fiscal Analysis

 

The bill makes modifications of the parameters for use of new hire reports, to eligibility requirements and the processing of unemployment compensation, and extends the collateral estoppel doctrine to reviewing courts on issues of eligibility determination.  The changes in the eligibility requirements of the unemployment compensation program, the delay of changes in processing unemployment claims, and the extension of the estoppel doctrine do not have a fiscal effect.  While some of the changes in the use of the new hire reports may improve the administration of programs, the fiscal effects of these changes are not measurable. 

 

The bill makes the following changes:

 

·        The bill specifies in which programs the Department of Job and Family Services must use the new hire reports to verify program eligibility.  This replaces the existing general wording that requires the Department to use the new hire report to detect fraud in any program administered by the Department.  This change has a potential for reducing non-fraud overpayments, but no estimate of any savings is possible.

 

·        The bill also requires the Department to use the new hire reports for the administration of the employment security program and for the administration of the workers’ compensation system.  This provision may result in greater effectiveness of the administration of these programs, but this effect is not measurable.  Current law permits but does not require the use of new hire reports by the workers’ compensation system.  The bill requires the use of the reports.  But since their use is routine practice, the shift from permissive to required use has no fiscal effect for the detection of fraud. 

 

·        The bill exempts individuals from the one-week waiting period and job search requirements to receive unemployment benefits when the individual’s unemployment is caused by a major disaster (declared as such by the President of the United States).  This provision merely moves up by one week the benefit period and does not extend it.  There is no fiscal impact.

 

·        The bill extends the collateral estoppel doctrine to reviewing courts.  This means that, if an individual is determined ineligible for benefits, that determination can not be used against that individual in other court cases.  There is no fiscal effect to this change.

 

·        The bill delays a requirement regarding the implementation of a new system for processing unemployment compensation claims from December 28, 2003 to December 26, 2004.  The bill declares an emergency.  The implementation of the new system may result in improved administrative effectiveness.  Any fiscal effect of a delay in the implementation of the system, however, is not measurable.

 

LSC fiscal staff:  Steve Mansfield, Fiscal Supervisor

 

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