SB23 – Unemployment, IEDC, Jobs and Misclassification Updated

 Unemployment Insurance and DWD Provisions
• Delays Unemployment Insurance Tax Increase for One Year
• Jury Exemption for UI Benefits
 An individual cannot be denied benefits because the individual is responding to a summons for jury service.
• Compliance Center
 Makes the compliance center provisions passed last year conform with federal Dept. of Labor regulations
• Voluntary Buy-downs
 Repeals the nonconforming voluntary buy-downs
• Administrative Law Judges
 Requires all DWD ALJs to be licensed attorneys
• Removes the Requirement that Individuals must Submit One Application for Work per Week

 IEDC Provisions
• Requires IEDC to Designate a Small Business Ombudsman
 HEA1697 passed last year already requires IEDC to maintain a Small Business Division to carry out duties for the development of small businesses.
• Requires IEDC to Designate a Compliance Officer
 Duties include determining and reporting whether incentive recipients are complying with the terms and conditions of the incentive agreement.
 IEDC already has three staff members who deal with compliance
• Recapture Provisions
 Requires IEDC to enter into agreements with applicants for job creation incentives.
• Specific number of employees that will be employed.
• Report detailing compliance with the agreement.
• The requirement for a public meeting if the applicant is required to pay back any incentives.
• Requirement that the applicant will repay the entire incentive if they leave the state closes or transfers employment positions outside Indiana.
 Provides IEDC with the ability to waive or modify a recapture provision or an agreement with an applicant under certain conditions, such as: natural disaster or any circumstance beyond the recipient’s control, as determined by IEDC
 Recapture provisions (often referred to as “claw back”) are generally bad for economic development. IEDC already does this as part of their normal operating procedures and putting this type of provision in statute sends the wrong message to businesses who are thinking of locating in Indiana.
• Just last year, IEDC was able to negotiate with Whirlpool to preserve more than 275 professional positions in Southern Indiana. Had there been “claw back” provisions in statute, IEDC would have been forced to take away all incentives and cease negotiations.

 Jobs Provisions
• Removes the 35 Employee Threshold for EDGE Job Retention Tax Credit
• New Employer Tax Credit
 Must employee at least 10 employees
 Tax credit is 10% of the wages
 Permits a carry forward provision for 9 years
 Expires December 31, 2012
• Helping Indiana Restart Employment (HIRE) Program
 Permits FSSA to apply for and administer certain TANF emergency funds.
 Allows DWD to implement a subsidized employment program for unemployed or underemployed individuals if the TANF emergency funds are approved
• Police Officer and Firefighters Hiring Preference
 Allows municipalities to give hiring preferences to laid off police officers and firefighters

 Misclassification Provisions
• Requires the Dept. Of Labor to Develop Guidelines and Procedures for Investigating Questions and Complaints Concerning Employee Classification
 Among other things, it requires the guidelines specify that any AGGRIEVED person may file a complaint.
 DOL must present outline of proposals to PMOC no later than October 1, 2010 and make recommendations to the Legislative Council before November 1, 2010.
 DOL shall adopt rules before August 1, 2011.

 Study Committee
• Requires a 4 Member Committee to Study the Feasibility and Value of Indexing Unemployment Benefits and the Taxable Wage Base.