Bill Summary – FastDemocracy

HOUSE BILL 1126
     K2                                       EMERGENCY BILL                       1lr0488
     By: Delegate Beitzel
     Introduced and read first time: February 5, 2021
     Assigned to: Economic Matters
                                               A BILL ENTITLED
 AN ACT concerning
 Unemployment Insurance – Earned Rating Record – Waiver of Benefit Charges
                            Due to COVID–19
 FOR the purpose of authorizing the Secretary of Labor to waive the charging of
     unemployment insurance benefits paid to a claimant against the earned rating
     record of an employing unit during a state of emergency declared by the Governor
     due to COVID–19 under certain circumstances; providing that the required waiver
     of benefit charges is in effect only until the earlier of a certain number of months
     after a certain state of emergency has ended or the date the employing unit hires a
     certain workforce; providing for the termination of this Act; making this Act an
     emergency measure; and generally relating to unemployment insurance.
 BY repealing and reenacting, without amendments,
       Article – Labor and Employment
       Section 8–610(a) and 8–611(a)
       Annotated Code of Maryland
       (2016 Replacement Volume and 2020 Supplement)
 BY repealing and reenacting, with amendments,
       Article – Labor and Employment
       Section 8–611(k)
       Annotated Code of Maryland
       (2016 Replacement Volume and 2020 Supplement)
       SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
 That the Laws of Maryland read as follows:
                                 Article – Labor and Employment
 8–610.
     EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
          [Brackets] indicate matter deleted from existing law.
                                                                  *hb1126*
      2                                 HOUSE BILL 1126
        (a)   (1)   An employing unit that meets the qualifications of this subsection shall
 be assigned an earned rate of contribution that is based on the experience of the employing
 unit.
              (2)  An employing unit qualifies under this subsection if, during each of the
 3 rating years immediately preceding the computation date the employing unit:
                    (i)    had an earned rating record that was chargeable with benefits;
 and
                     (ii) reports taxable wages as required by § 8–626 of this subtitle for
 the 3 rating years immediately preceding the computation date.
              (3)    An employing unit that does not qualify under paragraph (2) of this
 subsection qualifies if:
                    (i)  throughout the rating year immediately preceding the
 computation date, the employing unit had an earned rating record that was chargeable
 with benefits; and
                      (ii)   during each of the 2 rating years immediately preceding the
 computation date, the employing unit reports taxable wages as required by § 8–626 of this
 subtitle for the 2 rating years immediately preceding the computation date.
 8–611.
      (a)    For each employing unit, the Secretary shall keep an earned rating record that
 shows all benefits that are based on covered employment that was performed for the
 employing unit.
       (k)     (1)  [The] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, THE
 Secretary may waive the charge of benefits paid to a claimant against the earned rating
 record of an employing unit if:
                    (i)    the benefits are paid to the claimant during a period in which the
 claimant is temporarily unemployed because the employing unit shut down due to a natural
 disaster; and
                    (ii)   the Governor declared a state of emergency due to the natural
 disaster.
              (2)    If the Secretary waives the charge of benefits under paragraph (1) of
 this subsection, the waiver may be in effect only until the earlier of:
                    (i)    4 months after the natural disaster; or
                    (ii)   the date the employing unit reopens.
                                       HOUSE BILL 1126                                      3
             (3)    (I)   THE SECRETARY MAY WAIVE THE CHARGE OF BENEFITS
 PAID TO A CLAIMANT AGAINST THE EARNED RATING RECORD OF AN EMPLOYING
 UNIT IF:
                    1.  THE GOVERNOR HAS DECLARED A STATE OF
 EMERGENCY DUE TO COVID–19; AND
                          2.
                              THE UNEMPLOYMENT IS CAUSED BY A SHUTDOWN OF
 THE EMPLOYING UNIT DUE TO AN OFFICIAL ORDER, REGARDLESS OF WHETHER THE
 SHUTDOWN IS MANDATED OR DUE TO ECONOMIC HARDSHIP CAUSED BY THE ORDER.
               (II) A WAIVER OF THE CHARGE OF BENEFITS UNDER
 SUBPARAGRAPH (I) OF THIS PARAGRAPH MAY BE IN EFFECT ONLY UNTIL THE
 EARLIER OF:
                          1.     4 MONTHS AFTER THE STATE OF EMERGENCY HAS
 ENDED; OR
                          2.
                              THE DATE THE EMPLOYING UNIT HIRES A MAJORITY
 OF THE WORKFORCE THAT IT NEEDS TO RESUME NORMAL OPERATIONS.
        SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency
 measure, is necessary for the immediate preservation of the public health or safety, has
 been passed by a yea and nay vote supported by three–fifths of all the members elected to
 each of the two Houses of the General Assembly, and shall take effect from the date it is
 enacted. It shall remain effective through May 31, 2026, and, at the end of May 31, 2026,
 this Act, with no further action required by the General Assembly, shall be abrogated and
 of no further force and effect.
Statutes affected: 
Text - First - Unemployment Insurance – Earned Rating Record – Waiver of Benefit Charges Due to COVID–19: 8-610 Labor and Employment, 8-611 Labor and Employment