Revises provisions relating to unemployment compensation, including, without

limitation, modernizing and simplifying the systems and procedures used for various
unemployment compensation programs by providing for a unified computing system with a
streamlined application process, revising the base period for determining entitlement to benefits,
imposing time limits for the Department of Employment, Training and Rehabilitation (DETR) to
make eligibility determinations and to issue payments for unemployment benefits, revising
procedures for appealing denials and terminations of unemployment benefits, providing for the
payment of reasonable attorney’s fees for persons who successfully challenge such denials or
terminations, requiring DETR to issue paper checks for the payment of unemployment benefits
in order to verify the recipient’s identity, revising provisions governing the confidentiality of
certain information, revising provisions governing the transmission of certain communications
and notices, holding recipients and employers harmless for certain overpayments, removing the
authority for DETR to suspend the application of certain statutes, and establishing an office of
applicant advocate for applicants for benefits to advocate on behalf of such applicants.

The bill proposes to address the following deficiencies:

1. System Modernization - $40M for new systems that would allow combination of UI and
PUA systems, as well as automated online applications and information.

2. Service of process and communications may be made online (by email) on an opt-in
basis. All service of notices or other communications of substantive decisions must still
be mailed. If a party does not opt-in to electronic service, then they must be mailed
everything and timelines must have 3 days for mailing added to the timeline.

3. Combine UI and PUA (or DUA) Systems

a. Let the two systems run concurrently on the same platform to allow for eligibility
and exhaustion-of-benefits verification;
b. Allows dual UI/PUA recipients to automatically move to PUA upon exhaustion of
UI benefits;
c. Allows for data sharing across all programs – one stop application process for all
programs.

4. Two-step application/benefit process:

a. Eligibility Determination (w/o “conditional eligibility” and mass denials) once the
application is made;
b. Denials of eligibility are subject to appeal, which appeal can be requested online.
c. Requires a due process hearing prior to stopping payments once eligibility is
acknowledged and payments begun
i. Requires EVIDENCE of fraud or deliberate bad faith by applicant, not just
“hallmarks of fraud.”
ii. Burden on DETR to show evidence prior to termination or suspension of
benefits.

5. Time Limits applied to each step

a. 30 days to make determination and send acknowledgement to applicant;
b. 14 days from determination to pay.
6. All payment to be made by PAPER CHECK.
a. Paper checks to be deposited at chartered financial institution (bank, C.U., etc.) or
short-term lender for verification of ID.
b. Checks cover only one week’s time period – no aggregated payments even if
checks are retained for any reason (though they shouldn’t be retained once the
eligibility is acknowledged. (Multiple checks, one for each period, is fine.)

7. Appeals to be heard within 30 days by an individual properly trained and empowered to

resolve the issue.
a. If requested by email (after opt-in) the clock starts on the day the email was sent;
b. If no opt-in for electronic service, 30 days after postmark on mail – must be sent
certified mail with instructions on the website.

8. Utilize allowable forgiveness of overpayments (referred to as “accident forgiveness”) for

recipients who made a mistake and received PUA payments when UI may have been
available, with what was paid offset against UI benefits owed.

9. Hold employers harmless from inadvertent overpayments (“accident forgiveness”) and

for payments of UI benefits when the recipient might not have been eligible.

10. Retain electronic notice under Section 3 of SB75.

11. Retain alternate base period language of Section 2 of SB75.

12. Repeal ability of DETR to suspend statutes (as adopted by SB3 of the special session).

13. Match federal confidentiality rules.

14. Retain Section 22.11 of SB75 DOL trigger for High Unemployment Period.

15. Payment of reasonable attorney’s fees for appellants who successfully challenge denied
or terminated benefits.

16. Retain Section 15 subsections 9 & 10 of SB75 – give employers charging relief for Q3
and Q4 2020.

17. Establish an office of an applicant advocate to act as an independent ombudsman to

advocate on behalf of the applicants. Currently, Angela Hansen has been acting as a de
facto advocate through her Facebook page – a model for what we’re thinking.