House Bill No. 5266, reported by the Committee on Labor and Public Employees, 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 current 60-day period with a 40-day period for employers to file a written protest if they believe that benefits have been improperly charged due to fraud or error. The bill maintains that an eligibility issue cannot be reopened based on the quarterly statement if the employer had previously been notified of the issue and either failed to file a timely appeal or had the issue resolved against them.

The fiscal impact of the bill is considered minimal for the Unemployment Insurance Trust Fund. The bill could lead to a slight increase in revenue due to higher taxes paid by employers if charges that would otherwise be contested are not protested within the shortened time frame. 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 bill is set to take effect on October 1, 2024, and 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.