House Bill No. 5266, introduced in the February Session, 2024, proposes an amendment to the time frame within which employers can protest benefit charges on their unemployment insurance quarterly statement. The bill seeks to replace the existing 60-day period with a shorter 40-day period for employers to file a written protest if they believe benefits have been improperly charged due to fraud or error. This change is set to be effective from October 1, 2024, as per the insertion in the bill. The bill maintains that an eligibility issue cannot be reopened based on the quarterly statement if the employer had previously been notified and failed to file a timely appeal or if the issue was resolved against them.

The fiscal impact of the bill is minimal on the Unemployment Insurance Trust Fund, as noted by the Office of Fiscal Analysis. The bill could lead to a minimal revenue gain due to potentially higher taxes paid by employers if charges that would otherwise be contested are not due to the shortened protest period. Conversely, there could be a minimal cost to the fund if more fraudulent claims go unchecked due to the reduced time for employer diligence. The ongoing fiscal impact is expected to continue into the future, subject to employer compliance with the new 40-day deadline for protesting unemployment benefits improperly charged to their quarterly statements.