House Bill 7005, Unemployment Compensation, Passes House Finance & Tax Committee

Tallahassee, Fla. – House Bill 7005, Unemployment Compensation, today passed the House Finance & Tax Committee and is set to be heard next in the House Economic Affairs Committee.

“Florida’s current Unemployment Compensation system is broken,” said Representative Steve Precourt (R-Orlando), chair of the House Finance & Tax Committee. “The system was never designed for the severity of the current economic downturn and this has caused an unsustainable rise in payments to unemployed workers through large, automatic increases in the employer-paid taxes that fund the benefits.”

“Florida's economy simply cannot afford the taxes that fund the current Unemployment Compensation system,” said Representative Precourt. “And during these uncertain economic times, Florida cannot afford to allow the Unemployment Compensation system to completely fail, and thus hinder economic growth and job creation. House Bill 7005 is an equitable solution to this critical challenge our state is facing, ensures that employers and unemployed workers are both treated fairly, and basic needed benefits are maintained.”

“This bill provides needed tax relief to most Florida businesses by adjusting the benefit ratio calculation downward by 10%,” said Representative Doug Holder (R-Sarasota), chair of the Economic Development & Tourism Subcommittee. “This tax adjustment will ensure that we continue to foster a healthy economic environment for Florida businesses and continue to compensate unemployed workers by maintaining the same maximum weekly benefit amount that is currently available.”

“House Bill 7005 serves to update Florida’s Unemployment Compensation system so it can handle the realities of our current economic situation and adjust accordingly in the future,” said Representative Dorothy Hukill (R-Port Orange), chair of the House Economic Affairs Committee. “It also alters the system to aid with workforce development and placement for unemployed workers in an effort to get Floridians back to work faster, a component that our current system lacks.”

“I applaud the Members of the House Finance & Tax Committee for passing this bill out of committee today, and I look forward to hearing it in the Economic Affairs Committee soon,” concluded Representative Hukill.

For more information on HB 7005, please visit http://www.myfloridahouse.gov/.