Virginia Commission on Unemployment Compensation Summary
The Virginia Commission on Unemployment Compensation is tasked with evaluating current unemployment laws, monitoring the Unemployment Trust Fund, and making recommendations to enhance program effectiveness. Recent legislative updates introduced bills to improve benefit eligibility conditions and program integrity. These updates include requiring checks prior to awarding benefits and conducting eligibility reviews. The Commission aims to implement these changes effectively to ensure efficiency in the unemployment insurance program.
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Presentation Transcript
Commission on Unemployment Compensation Interim Commission Meeting August 17, 2022
Powers and Duties of the Commission 30-222 A. A. The Commission shall have the following powers and duties: 1. Evaluate the impact of existing statutes and proposed legislation on unemployment compensation and the Unemployment Trust Fund; 2. Assess the Commonwealth's unemployment compensation programs and examine ways to enhance effectiveness; 3. Monitor the current status and long-term projections for the Unemployment Trust Fund; and 4. Report annually its findings and recommendations to the General Assembly and the Governor.
Legislative Updates H.B. 652 (Wampler) 60.2-612 Benefit Eligibility Conditions S.B. 769 (Reeves) 60.2-612.1 Program Integrity H.B. 270 (Byron) / S.B. 219 (McPike) 30-222, 60.2-111, and 60.2-619 New sections in Article 2 of Chapter 1 of Title 60.2: 60.2-121.2 and 60.2-121.3
H.B. 652 Unemployment compensation; benefit eligibility Requires the VEC to conduct an incarceration check and employment identification check prior to awarding benefits to any individual
S.B. 769 Unemployment compensation; program integrity Requires the VEC to: Conduct all mandatory and recommended program integrity activities as identified by the U.S. Department of Labor Employment and Training Administration and the U.S. Department of Labor Office of Inspector General Perform a full eligibility review of suspicious or potentially improper unemployment claims Recover any improper overpayment of benefits to the fullest extent authorized by state and federal law Requires the Department of Social Services, the Department of Medical Assistance Services, and the Department of Housing and Community Development to notify the VEC if an individual enrolled in public assistance programs has become employed. Authorizes the VEC to enter a MOU with any state agency necessary to implement the provisions of the bill. Requires the VEC to report by 12/1 of each year to the Commission on Unemployment Compensation on the implementation and enforcement of the provisions of the bill. Effective 1/1/23.
H.B. 270/S.B. 219 Seeks to codify a number of recommendations made in the JLARC report: Operations and Performance of the Virginia Employment Commission Requires VEC to calculate and report: Average unemployment insurance benefit levels Average income replacement of unemployment insurance benefits Recipiency rate for unemployment insurance benefits in the Commonwealth as part of the Commission s annual balance sheet Requires VEC, as part of its biennial strategic plan submitted to the Department of Planning and Budget, to develop and maintain an unemployment insurance Resiliency Plan Must include specific actions the agency will take depending on the level of unemployment insurance claims To address staffing, communications, and other operations to ensure efficient and effective administration of UI program.
H.B. 270/S.B. 219 (continued) The bill creates within the Commission on Unemployment Compensation a SUBCOMMITTEE responsible for monitoring the VEC s management of the unemployment insurance program. Meet at least once each quarter Report annually, beginning on 12/1/22 to these General Assembly committees: House Committee on Appropriations House Committee on Commerce and Energy Senate Committee on Commerce and Labor Senate Committee on Finance and Appropriations
H.B. 270/S.B. 219 (continued) Directs Commission on Unemployment Compensation to convene an advisory committee comprised of stakeholders and subject matter experts to review information related to unemployment insurance claims. Requires employers to submit claim-related forms and separation information electronically, as well as other information and tax payments upon the Commission s request, unless the employer has received a waiver. A claim for unemployment benefits determined invalid by the VEC as a result of monetary ineligibility shall first be reviewed upon a request for redetermination prior to filing an appeal.
H.B. 270/S.B. 219 (continued) Unemployment Compensation Ombudsman created to provide information and assistance to persons navigating the unemployment compensation process. Confidential case files will be exempt from FOIA disclosure. Directs the Virginia Department of Human Resource Management to lead a multi agency work group to discuss strategies for staffing assistance and support for agencies that might need staffing assistance during emergencies. VEC is directed to task its internal audit division to review and revise documents and online resources related to unemployment compensation. The bill contains an emergency clause.
H.B. 270/S.B. 219 (summary) VEC Calculate and report on unemployment benefits Develop unemployment insurance Resiliency Plan Create Unemployment Compensation Ombudsman position Internal audit division: review documents and online resources Commission on Unemployment Compensation Create subcommittee to monitor VEC operations, meet each quarter, and submit annual report Convene advisory committee VDHRM Lead multi-agency work group for staffing shortages Employers Submit information electronically to VEC or seek waiver
Unemployment Compensation Subcommittee 30-222 B. Responsible for monitoring the VEC's management of the Commonwealth's unemployment insurance system 1. 2. Efforts to identify, prevent, and recover incorrect unemployment insurance benefit payments, including fraudulent payments; 3. Modernization of the unemployment insurance information technology system and subsequent efforts to improve functionality; 4. Expenditures of state funds appropriated for unemployment insurance administration; and 5. Implementation of recommendations from the 2021 Operations and Performance of the Virginia Employment Commission report by the Joint Legislative Audit and Review Commission. Key performance metrics related to unemployment insurance backlogs;
Unemployment Compensation Subcommittee 30-222 C. Membership: (i) at least one employee stakeholder representative, (ii) at least one employer representative, (iii) at least one member of the Commission on Unemployment Compensation, (iv) at least one member from each of the following committees: the House Committee on Appropriations, the House Committee on Commerce and Energy, the Senate Committee on Commerce and Labor, and the Senate Committee on Finance and Appropriations.
Unemployment Compensation Subcommittee 30-222 D. Meetings: At least once each quarter from July 1, 2022, through June 30, 2025 Report: At least annually, beginning on December 1, 2022 To the House Committee on Appropriations, the House Committee on Commerce and Energy, the Senate Committee on Commerce and Labor, and the Senate Committee on Finance and Appropriations.
Unemployment Compensation Advisory Committee 30-222 E. The Commission shall periodically convene an advisory committee composed of: an employer representative, an employee representative, a labor economist, a finance expert, a labor law expert, and any other stakeholders or subject matter experts deemed appropriate by the Commission For the following purposes: (i) to review UI benefits, replacement ratios, and recipiency rates; (ii) to identify factors that affect UI benefits and recipiency, such as design of UI benefit calculations or UI eligibility criteria; (iii) to assess the advantages and disadvantages of potential changes to benefits; and (iv) to recommend to the Commission options to change benefit levels when needed. Establish by December 1, 2022, and convene at least every five years thereafter.
Commissions Next Steps from H.B. 270/S.B. 219. . . Subcommittee Advisory Committee Appoint members per 30-222 C Appoint members by December 1, 2022 Convene quarterly through 2025 Convene at least once every 5 years Annual report due December 1, 2022
Commission on Unemployment Compensation
