LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 119 HLS 24RS 408
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 8:55 AM Author: ROMERO
Dept./Agy.: Louisiana Workforce Commission
Subject: Duration of Unemployment Benefits Analyst: Noah O’Dell
UNEMPLOYMENT COMP EN +$81,550 FF EX See Note Page 1 of 1
Provides relative to the duration of unemployment compensation benefits and provides for extended benefits
Current law provides that an eligible individual is entitled to receive unemployment compensation benefits for 26 weeks
during a 12-month period. Current law provides for an extended benefit period and sets the total extended benefit amount
at 13 times a claimant’s weekly benefit amount in a benefit year.
Proposed law decreases the maximum number of weekly regular benefits a claimant may be eligible for in a benefit year
from 26 weeks to a number of weeks between 12 and 20, depending on the average of the three most recently published
seasonally adjusted state unemployment rates. The Louisiana Workforce Commission (LWC) shall publish biannually on its
website the maximum number of weekly benefits a claimant may be eligible for. Proposed law presumably decreases the
total extended benefit amount from 13 times to 8 times a claimant’s weekly benefit amount in a benefit year.
Effective January 1, 2025
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $81,550 $0 $0 $0 $0 $81,550
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $81,550 $0 $0 $0 $0 $81,550
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law increases state expenditures by $81,550 in FY 25 within the Louisiana Workforce Commission (LWC). LWC
currently uses a proprietary technology system HiRE to manage and distribute benefits. LWC estimates one-time costs of
$81,550 to reprogram the system for the number of weeks claimants are eligible as specified in the bill. LWC has one-time
federal funds available for automation that can be used to make the proposed changes.
For informational purposes, the current administration of unemployment insurance (UI) is financed entirely by federal funds.
The amount of federal funds available for LWC to staff this program is a function of the number of unemployment claims.
The federal funding follows an equation that increases/decreases depending on the number of claims.
The bill decreases the maximum number of weekly regular benefits a claimant may be eligible for in a benefit year from 26
weeks to a number of weeks between 12 and 20, depending on the average of the three most recently published state
seasonally adjusted unemployment rates. When the average unemployment rate is 5% or less, the maximum duration of
regular benefits shall be limited to 12 weeks. For each gradual increase of 0.5% in the average unemployment rate, the
maximum duration of regular benefits increases by 1 week, until 8.5%. When the average unemployment rate is greater
than or equal to 8.5%, the maximum duration of regular benefits shall be 20 weeks.
The bill also appears to reduce the total extended benefit amount from 13 times the weekly benefit amount to 8 times the
weekly benefit. The bill imposes a new requirement that exhaustees must be enrolled in and participating in an approved
training program to be eligible for extended benefits.
Note: The bill directs LWC to electronically publish every six months the number of weeks for which a claimant is eligible in a
benefit year. However, the number of eligible weeks appears to depend on the three most recently reported monthly state
unemployment rates that precede the month in which the claimant files. Therefore, it appears that the administrator will
perform calculations for eligible weeks that may not be updated timely in a biannual report.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Employers pay into the UI trust fund through a payroll tax or reimbursable program. The UI trust fund is housed at the
federal level and is used to distribute unemployment benefits to qualified claimants.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Deborah Vivien
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Chief Economist


Statutes affected:
HB119 Original:
HB119 Engrossed:
HB119 Enrolled:
HB119 Act :