An Act To Amend the Unemployment Compensation Laws
Maine Legislature, Session 129, LD 1911
Committee: Labor and Housing
Sponsors: BELLOWS
Amends: 26 MRSA §1221, 26 MRSA §1225, 26 MRSA §1232

Legislative Document
No. 1911
S.P. 658
In Senate, December 24, 2019
An Act To Amend the Unemployment Compensation Laws
(EMERGENCY)
Submitted by the Department of Labor pursuant to Joint Rule 203.
Received by the Secretary of the Senate on December 20, 2019.  Referred to the Committee 
on Labor and Housing pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BELLOWS of Kennebec.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, changes made to the laws governing unemployment compensation will 
have an adverse impact on the employer community if implemented; and
Whereas, this legislation makes changes to those laws that are necessary to 
eliminate the adverse impact; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  26 MRSA §1221, sub-§3, ¶A,as amended by PL 2019, c. 343, Pt. TTT, 
§1, is further amended to read:
A.  At the time the status of an employing unit is ascertained to be that of an 
employer, the commissioner shall establish and maintain, until the employer status is 
terminated, for the employer an experience rating record, to which are credited all the 
contributions that the employer pays on the employer's own behalf. This chapter may 
not be construed to grant any employer or individuals in the employer's service prior 
claims or rights to the amounts paid by the employer into the fund. Benefits paid to 
an eligible individual under the Employment Security Law must be charged against 
the experience rating record of the claimant's most recent subject employer, except 
that, beginning January 1, 2022, benefits paid to an eligible individual under the 
Employment Security Law must be charged against the experience rating record of 
the claimant's employers in a ratio inversely proportional to the claimant's 
employment beginning with the most recent employer, or to the General Fund if the 
otherwise chargeable experience rating record is that of an employer whose status as 
such has been terminated; except that no charge may be made to an individual 
employer but must be made to the General Fund if the commission finds that: 
(1)  The claimant's separation from the claimant's last employer was for 
misconduct in connection with the claimant's employment or was voluntary 
without good cause attributable to the employer; 
(2)  The claimant has refused to accept reemployment in suitable work when 
offered by a previous employer, without good cause attributable to the employer; 
(3)  Benefits paid are not chargeable against any employer's experience rating 
record in accordance with section 1194, subsection 11, paragraphs B and C; 
(5)  Reimbursements are made to a state, the Virgin Islands or Canada for 
benefits paid to a claimant under a reciprocal benefits arrangement as authorized 
in section 1082, subsection 12, as long as the wages of the claimant transferred to 
the other state, the Virgin Islands or Canada under such an arrangement are less 
than the amount of wages for insured work required for benefit purposes by 
section 1192, subsection 5;
(6)  The claimant was hired by the claimant's last employer to fill a position left 
open by a Legislator given a leave of absence under chapter 7, subchapter 5-A, 
and the claimant's separation from this employer was because the employer 
restored the Legislator to the position after the Legislator's leave of absence as 
required by chapter 7, subchapter 5-A; 
(7)  The claimant was hired by the claimant's last employer to fill a position left 
open by an individual who left to enter active duty in the United States military, 
and the claimant's separation from this employer was because the employer 
restored the military serviceperson to the person's former employment upon 
separation from military service;
(8)  The claimant was hired by the claimant's last employer to fill a position left 
open by an individual given a leave of absence for family medical leave provided 
under Maine or federal law, and the claimant's separation from this employer was 
because the employer restored the individual to the position at the completion of 
the leave; or
(9)  The claimant initiated a partial separation or reduction of hours and that 
partial separation or reduction of hours was agreed to by the employee and 
employer.
Sec. 2.  26 MRSA §1221, sub-§3, ¶C-2 is enacted to read:
C-2.  For the purposes of paragraph A, the experience rating record of the most recent 
subject employer may not be charged with benefits paid to a claimant whose work 
record with that employer totaled 5 consecutive weeks or less of total or partial 
employment, in which case the most recent subject employer with whom the 
claimant's work record exceeded 5 consecutive weeks of total or partial employment 
must be charged if that employer would have otherwise been chargeable had not 
subsequent employment intervened.
Sec. 3.  26 MRSA §1221, sub-§4-A, ¶C, as amended by PL 2007, c. 352, Pt. A, 
§2, is further amended to read:
C.  The commissioner shall:
(1)  Promptly notify each employer of the employer's rate of contributions as 
determined for the 12-month period commencing January 1st of each year.  The 
determination is conclusive and binding upon the employer unless within 30 days 
after notice of the determination is mailed to the employer's last known address 
or, in the absence of mailing, within 30 days after the delivery of the notice, the 
employer files an application for review and redetermination, setting forth the 
employer's reasons.  If the commission Division of Administrative Hearings 
grants the review, the employer must be promptly notified and must be granted 
an opportunity for a hearing.  An employer does not have standing in any 
proceedings involving the employer's rate of contributions or contribution 
liability to contest the chargeability to the employer's experience rating record of 
any benefits paid in accordance with a determination, redetermination or decision 
pursuant to section 1194, except upon the ground that the services for which 
benefits were found to be chargeable did not constitute services performed in 
employment for the employer and only when the employer was not a party to the 
determination, redetermination or decision or to any other proceedings under this 
chapter in which the character of the services was determined.  The employer 
must be promptly notified of the commission's Division of Administrative 
Hearings' denial of the employer's application or the commission's 
redetermination, both of which are subject to appeal pursuant to Title 5, chapter 
375, subchapter 7, which is subject to appeal pursuant to section 1226; and
(2)  Provide each employer at least monthly with a notification of benefits paid 
and chargeable to the employer's experience rating record.  In the absence of an 
application for redetermination filed in the manner and within the period 
prescribed by the commission 30 days after the notification was mailed, a 
notification is conclusive and binding upon the employer for all purposes.  A 
redetermination made after notice and opportunity for hearing and the 
commission's findings of fact may be introduced in subsequent administrative or 
judicial proceedings involving the determination of the rate of contributions of an 
employer for the 12-month period commencing January 1st of any year and has 
the same finality as provided in this section with respect to the findings of fact 
made by the commission in proceedings to redetermine the contribution rates of 
an employer Any request for reconsideration must be made in accordance with 
section 1226.
Sec. 4.  26 MRSA §1221, sub-§11, ¶D, as amended by PL 1979, c. 651, §28, is 
further amended to read:
D.    The amount due specified in any assessment from the commissioner shall be is 
conclusive on the employer or governmental entity, unless not later than 15 days after 
the assessment was mailed to the last known address, the employer or governmental 
entity files an application for redetermination by the commission Division of 
Administrative Hearings setting forth the grounds for such application.
Sec. 5.  26 MRSA §1225, sub-§2, as amended by PL 1993, c. 312, §3, is further 
amended to read:
2.  Jeopardy assessment. If the Director of Unemployment Compensation 
determines that the collection of any contribution, interest or penalty under this 
subchapter, as amended, will be jeopardized by delay, the director may immediately 
assess the contributions, interest or penalties, whether or not the time prescribed by law or 
any rules issued pursuant to section 1082, subsection 2, for making reports and paying the 
contributions has expired, and shall give written notice of the assessment to the employer. 
In these cases, the right to appeal to the commission Division of Administrative Hearings, 
as provided in section 1226, is conditioned upon payment of the contributions, interest or 
penalties so assessed, or upon giving appropriate security to the commissioner for the 
payment thereof.
Sec. 6.  26 MRSA §1232, sub-§2, as enacted by PL 1993, c. 312, §5, is amended 
to read:
2.  Failure to file or pay taxes; determination to prevent renewal, reissuance or 
other extension of license or certificate.  If the commissioner determines that an 
employer who holds a state-issued license or certificate of authority to conduct a 
profession, trade or business has failed to file a return at the time required under this 
chapter or has failed to pay a tax liability due under this chapter that has been demanded, 
and the employer continues to fail to file or pay after at least 2 specific written requests to 
do so, the commissioner shall notify the employer in writing by certified mail, return 
receipt requested, that refusal to file the required tax return or to pay the overdue tax 
liability may result in loss of license or certificate of authority.
This written notice must include information about the opportunity to request a fact-
finding interview for the purpose of determining essential facts, negotiating a payment 
agreement and determining the appropriateness of further enforcement under this section.
If the employer requests a fact-finding interview within 30 days, the commissioner shall 
schedule the interview at which the commissioner shall attempt to negotiate a reasonable 
payment agreement.  The employer must be notified in writing if the commissioner's 
determination is to prevent renewal, reissuance or extension of the license or certificate of 
authority by the issuing agency.  If the employer enters into a payment agreement, a 
determination may not be made under this section until the employer fails to comply with 
the agreement.
If the employer continues, for a period in excess of 30 days from notice of possible denial 
of renewal or reissuance of a license or certificate of authority, to fail to file or show 
reason why the person is not required to file or if the employer continues not to pay, the 
commissioner shall notify the employer in writing of the determination to prevent 
renewal, reissuance or extension of the license or certificate of authority by the issuing 
agency.
A review of the determination is available by filing an appeal under section 1226 to the 
Maine Unemployment Insurance Commission Division of Administrative Hearings.  
Either by failure to proceed to the next step of appeal or by exhaustion of the steps of 
appeal, the determination of the commissioner's right to prevent renewal or reissuance 
becomes final unless otherwise determined by appeal.
In any event, the license or certificate of authority in question remains in effect until all 
appeals are taken to their final conclusion.  This subsection may not be invoked for any 
tax liability under appeal.
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved.
SUMMARY
This bill makes the following changes to the laws governing unemployment 
compensation.
1.  Current law provides that, beginning January 1, 2022, benefits paid to an 
individual under the laws governing unemployment compensation must be charged 
against the experience rating record of the claimant's employers in a ratio inversely 
proportional to the claimant's employment beginning with the most recent employer.  
This bill strikes that language and instead restores the previous language governing the 
employer benefit charging model.
2.  It provides that the experience rating record of the most recent subject employer 
may not be charged with benefits paid to a claimant whose work record with that 
employer totals 5 or fewer consecutive weeks.
3.  It provides that, in the absence of an application for redetermination filed within 
days after the mailing of notification of benefits paid and chargeable to the employer's 
experience rating, the notification is conclusive and binding.  Under the bill, any request 
for reconsideration must be made under the laws governing appeals of determination or 
assessment.
4.  It replaces references to the Unemployment Insurance Commission with 
references to the Division of Administrative Hearings to conform with changes made in 
Public Law 2017, chapter 284, Part AAAAA.