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HB210 • 2025

Revise laws relating to unemployment insurance program collection rates and uses

Revise laws relating to unemployment insurance program collection rates and uses

Crime Labor Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Steve Fitzpatrick
Last action
2025-04-07
Official status
Chapter Number Assigned
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on the exact penalties and repayment requirements, which may vary by case.

Changes to Unemployment Insurance Program

This law updates the unemployment insurance program by enhancing integrity checks and creating lower tax schedules for employers with good records.

What This Bill Does

  • Updates the purpose of the unemployment insurance program to include using databases to verify eligibility and prevent fraud.
  • Requires weekly checks against new hire records and prison/jail lists to ensure people receiving benefits are eligible.
  • Creates a lower tax schedule for employers who have good track records with the unemployment insurance fund.

Who It Names or Affects

  • Employers who pay into the unemployment insurance program.
  • People receiving or applying for unemployment benefits.
  • The Department of Labor and Industry, which administers the program.

Terms To Know

Unemployment Insurance Program
A government program that provides financial support to people who have lost their jobs through no fault of their own.
Program Integrity
Measures taken to ensure the accuracy and fairness of a program, such as preventing fraud or misuse of funds.

Limits and Unknowns

  • The bill does not specify how much money will be transferred between different accounts.
  • It is unclear what specific databases will be used for integrity checks.

Bill History

  1. 2025-04-07 HOUSE

    (H) Signed by Governor

  2. 2025-04-07 HOUSE

    Chapter Number Assigned

  3. 2025-03-31 SENATE

    (S) Signed by President

  4. 2025-03-31 HOUSE

    (H) Transmitted to Governor

  5. 2025-03-28 HOUSE

    (H) Returned from Enrolling

  6. 2025-03-28 HOUSE

    (H) Signed by Speaker

  7. 2025-03-26 SENATE

    (S) Scheduled for 3rd Reading

  8. 2025-03-26 SENATE

    (S) 3rd Reading Concurred

  9. 2025-03-26 HOUSE

    (H) Sent to Enrolling

  10. 2025-03-25 SENATE

    (S) Committee Executive Action--Bill Concurred

  11. 2025-03-25 SENATE

    (S) Committee Report--Bill Concurred

  12. 2025-03-21 SENATE

    (S) Scheduled for 2nd Reading

  13. 2025-03-21 SENATE

    (S) 2nd Reading Concurred

  14. 2025-03-21 SENATE

    (S) Rereferred to Committee

  15. 2025-03-21 SENATE

    (S) Hearing

  16. 2025-03-19 SENATE

    (S) Committee Executive Action--Bill Concurred

  17. 2025-03-19 SENATE

    (S) Committee Report--Bill Concurred

  18. 2025-03-15 SENATE

    (S) Hearing

  19. 2025-03-06 SENATE

    (S) Hearing

  20. 2025-02-28 SENATE

    (S) Hearing Canceled

  21. 2025-02-27 SENATE

    (S) Hearing

  22. 2025-02-20 SENATE

    (S) Referred to Committee

  23. 2025-02-06 SENATE

    (S) First Reading

  24. 2025-02-05 HOUSE

    (H) Scheduled for 3rd Reading

  25. 2025-02-05 HOUSE

    (H) 3rd Reading Passed

  26. 2025-02-05 HOUSE

    (H) Transmitted to Senate

  27. 2025-02-04 HOUSE

    (H) Committee Report--Bill Passed

  28. 2025-02-03 HOUSE

    (H) Committee Executive Action--Bill Passed

  29. 2025-01-29 HOUSE

    (H) Scheduled for 2nd Reading

  30. 2025-01-29 HOUSE

    (H) 2nd Reading Passed

  31. 2025-01-29 HOUSE

    (H) Rereferred to Committee

  32. 2025-01-29 HOUSE

    (H) Hearing

  33. 2025-01-27 HOUSE

    (H) Committee Executive Action--Bill Passed

  34. 2025-01-27 HOUSE

    (H) Committee Executive Action--Bill Passed

  35. 2025-01-27 HOUSE

    (H) Committee Report--Bill Passed

  36. 2025-01-23 HOUSE

    (H) Fiscal Note Received

  37. 2025-01-23 HOUSE

    (H) Fiscal Note Printed

  38. 2025-01-16 HOUSE

    (H) Hearing

  39. 2025-01-15 HOUSE

    (LC) Draft Delivered to Requester

  40. 2025-01-15 HOUSE

    (H) Introduced

  41. 2025-01-15 HOUSE

    (H) Fiscal Note Requested

  42. 2025-01-15 HOUSE

    (H) Referred to Committee

  43. 2025-01-15 HOUSE

    (H) First Reading

  44. 2025-01-14 HOUSE

    (LC) Draft in Assembly

  45. 2025-01-14 HOUSE

    (LC) Draft Ready for Delivery

  46. 2025-01-13 HOUSE

    (LC) Draft in Input/Proofing

  47. 2025-01-13 HOUSE

    (LC) Draft in Final Drafter Review

  48. 2025-01-08 HOUSE

    (LC) Draft in Legal Review

  49. 2025-01-08 HOUSE

    (LC) Draft in Edit

  50. 2024-09-09 HOUSE

    (LC) Drafter Assigned

Official Summary Text

Revise laws relating to unemployment insurance program collection rates and uses

Current Bill Text

Read the full stored bill text
****
69th Legislature 2025 HB 210
- 1 - Authorized Print Version – HB 210
ENROLLED BILL
AN ACT GENERALLY REVISING UNEMPLOYMENT INSURANCE PROGRAM COLLECTION RATES AND
USES; CLARIFYING AND EXPANDING THE UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY ACT;
CREATING A LOWER TAX SCHEDULE TO THE UNEMPLOYMENT INSURANCE EMPLOYER
CLASSIFICATION AND EXPERIENCE RATING RATE SCHEDULE; PERMITTING CARRYFORWARD OF
PENALTY AND INTEREST MONEY ACROSS FISCAL YEARS; PROVIDING LIMITED DISCLOSURE OF THE
MOTOR VEHICLE RECORD; AMENDING SECTIONS 39-51-702, 39-51-706, 39-51-1218, 39-51-3201, 39-51-
3202, AND 61-11-508, MCA; REPEALING SECTION 39-51-703, MCA; AND PROVIDING EFFECTIVE DATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 39-51-702, MCA, is amended to read:
"39-51-702. Purpose. The purpose of this part is to enhance program integrity for the state's
unemployment insurance program by requiring the state to utilize a government or commercially available
database to verify the integrity of the state's unemployment insurance rolls, check new hire records against
unemployment insurance rolls on a weekly basis, and check state, county, and local prison and jail records."
Section 2. Section 39-51-706, MCA, is amended to read:
"39-51-706. Department duties -- integrity data hub -- review of information -- reporting to
legislature. (1) The department of labor and industry department shall further program integrity and claimant
eligibility by:
(1)(a) engage with and utilize utilizing a commercially available database to verify the integrity of the
state's unemployment insurance rolls the identity of applicants for benefits;
(2)(b) on a weekly basis, check the unemployment insurance rolls against crossmatching benefits
applicants with the department of corrections list of incarcerated individuals to verify eligibility and ensure
****
69th Legislature 2025 HB 210
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ENROLLED BILL
program integrity;
(3)(c) on a weekly basis, check the unemployment insurance rolls against utilizing the national
directory of new hires to verify eligibility; and
(4)(d) crossmatching benefits applicants with motor vehicle records, as defined in 61-11-503 and
authorized in 61-11-508.
have the authority to execute a memorandum of understanding with any department, agency,
or division for information required to be shared between agencies as outlined in this part;
(5) if it receives information concerning an individual receiving unemployment insurance benefits
that indicates a change in circumstances that may affect eligibility, review the individual's case; and
(6)(2) The department shall report to the economic affairs interim committee in accordance with 5-11-
210 relating to the administration of this part."
Section 3. Section 39-51-1218, MCA, is amended to read:
"39-51-1218. Rate schedules.
SCHEDULES OF CONTRIBUTION RATES - Part I
Sched. Sched. Sched. Sched. Sched.
I I II II III III IV IV V
Minimum Ratio of
Fund to Total Wages
(.0280) (.0260) (.0245) (.0225) (.0200)
Average Tax Rate 0.95 1.12 1.32 1.52 1.72
Rate Class Contribution Rates for Eligible Employers
1 0.00% 0.00% 0.00% 0.02% 0.22%
2 0.00 0.00 0.02 0.22 0.42
3 0.00 0.02 0.22 0.42 0.62
4 0.02 0.22 0.42 0.62 0.82
5 0.22 0.42 0.62 0.82 1.02
6 0.42 0.62 0.82 1.02 1.22
****
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ENROLLED BILL
7 0.62 0.82 1.02 1.22 1.42
8 0.82 1.02 1.22 1.42 1.62
9 1.02 1.22 1.42 1.62 1.82
10 1.22 1.42 1.62 1.82 2.02
Rate Class Contribution Rates for Deficit Employers
1 2.72 2.92% 3.12% 3.32% 3.52%
2 2.92 3.12 3.32 3.52 3.72
3 3.12 3.32 3.52 3.72 3.92
4 3.32 3.52 3.72 3.92 4.12
5 3.52 3.72 3.92 4.12 4.32
6 3.72 3.92 4.12 4.32 4.52
7 3.92 4.12 4.32 4.52 4.72
8 4.12 4.32 4.52 4.72 4.92
9 4.32 4.52 4.72 4.92 5.12
10 6.12 6.12 6.12 6.12 6.12
SCHEDULES OF CONTRIBUTION RATES - Part II
Sched. Sched. Sched. Sched. Sched. Sched. Sched.
V VI VI VII VII VIII VIII IX IX X X XI XI XII
(.0170) (.0135) (.0095) (.0075) (.0050) (.0025) (....)
1.92 2.12 2.32 2.52 2.72 2.92 3.12
Contribution Rates for Eligible Employers
0.42% 0.62% 0.82% 1.02% 1.22% 1.42% 1.62%
0.62 0.82 1.02 1.22 1.42 1.62 1.82
0.82 1.02 1.22 1.42 1.62 1.82 2.02
1.02 1.22 1.42 1.62 1.82 2.02 2.22
1.22 1.42 1.62 1.82 2.02 2.22 2.42
1.42 1.62 1.82 2.02 2.22 2.42 2.62
****
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1.62 1.82 2.02 2.22 2.42 2.62 2.82
1.82 2.02 2.22 2.42 2.62 2.82 3.02
2.02 2.22 2.42 2.62 2.82 3.02 3.22
2.22 2.42 2.62 2.82 3.02 3.22 3.42
Contribution Rates for Deficit Employers
3.72% 3.92% 4.12% 4.32% 4.52% 4.72% 4.92%
3.92 4.12 4.32 4.52 4.72 4.92 5.12
4.12 4.32 4.52 4.72 4.92 5.12 5.32
4.32 4.52 4.72 4.92 5.12 5.32 5.52
4.52 4.72 4.92 5.12 5.32 5.52 5.72
4.72 4.92 5.12 5.32 5.52 5.72 5.92
4.92 5.12 5.32 5.52 5.72 5.92 6.12
5.12 5.32 5.52 5.72 5.92 6.12 6.12
5.32 5.52 5.72 5.92 6.12 6.12 6.12
6.12 6.12 6.12 6.12 6.12 6.12 6.12
"
Section 4. Section 39-51-3201, MCA, is amended to read:
"39-51-3201. Making false statement or representation or failing to disclose material fact in
order to obtain or increase benefits -- administrative penalty and remedy. (1) (a) A person who makes a
false statement or representation knowing it to be false or who knowingly fails to disclose a material fact in
order to obtain or increase any benefit or other payment under this chapter or under an employment security
law of any other state or territory or the federal government, either for the individual or for any other person, is:
(i) disqualified for benefits for a period of not more than 52 weeks, beginning with the first
compensable week following the date of determination by the department, with the length of time of the
disqualification to be determined by the department in accordance with the severity of each case; and
(ii) required to repay to the department, pursuant to the provisions of 39-51-3206, a sum equal to
the amount wrongfully received by the individual, plus a department-assessed penalty equal to 50% of the
****
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fraudulently obtained benefits. The department-assessed penalty incorporates the 15% penalty required under
42 U.S.C. 503(a).
(b) Benefits may not be used to offset the penalty due. The individual subject to this section is not
required to repay any amount wrongfully obtained more than 5 years prior to the date of the department's
determination that the individual made false statements, willful nondisclosure, or misrepresentation.
(2) (a) An individual, other than a person with a bona fide disability that prevents the individual
from making or filing a claim for benefits on the individual's own behalf, who allows or authorizes another
person to make or file a claim for benefits on the individual's behalf without designating that person as an
authorized agent is subject to the penalties prescribed in subsection (1).
(b) The designation of a person who is not an attorney as an individual's agent must be in writing
and signed by the individual. The designation must specify:
(i) the period of time covered by the designation; and
(ii) any limits on the agent's authority.
(c) Any action taken or information provided by an agent has the same effect as an action taken or
information provided by the individual.
(3) Of the money collected from the penalties under subsection (1)(a), 70% must be deposited in
the account provided for in 39-51-406. The remaining 30% of the collected penalties must be deposited in the
unemployment insurance fund provided for in 39-51-401. Money deposited in the account provided for in 39-51-
406 may be appropriated to the department to be used to detect and collect unpaid taxes and overpayments of
benefits to the extent that federal grant revenues are inadequate for these purposes. Money in the account
provided for in 39-51-406 not appropriated for these purposes must be transferred by the department to the
unemployment insurance trust fund at the end of each fiscal year."
Section 5. Section 39-51-3202, MCA, is amended to read:
"39-51-3202. Making false statement or representation or failing to disclose material fact in
order to obtain or increase benefits -- criminal penalty. (1) A person who, in order to obtain or increase for
personal gain or for any other person benefits under this chapter or under an employment security law of any
other state or territory or the federal government, knowingly makes a false statement or representation or
****
69th Legislature 2025 HB 210
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ENROLLED BILL
knowingly fails to disclose a material fact is guilty of a crime under 45-7-203 and 45-7-210, and the department
may cause criminal proceedings to be initiated against the person.
(2) A person will be required to repay to the department an amount as determined by 39-51-
3201(1)(a).
(3) For purposes of this section, restitution awarded under this section must include a sum equal to
the amount wrongfully received, plus the department may assess a penalty not to exceed 100% of the amount
wrongfully received. All money accruing from the penalty must be deposited in the federal special revenue
account. Money deposited in that account may be appropriated to the department to be used to detect and
collect unpaid taxes and overpayments of benefits to the extent that federal grant revenues are inadequate for
these purposes. Money in the account not appropriated for these purposes must be transferred by the
department to the unemployment insurance trust fund at the end of each fiscal year."
Section 6. Section 61-11-508, MCA, is amended to read:
"61-11-508. Permitted disclosure of personal information -- specific uses. (1) On application,
proof of the identity of the person requesting a record, and payment of fees required in 61-11-510, the
department may disclose personal information, including highly restricted personal information, from a motor
vehicle record to:
(a) the person who is the subject of the motor vehicle record; or
(b) a person who represents that the use of the information will be strictly limited to one or more of
the following:
(i) a federal, state, or local government agency, including a court or a law enforcement agency,
and any individual acting on behalf of the agency in carrying out its functions, including county government
elections officials verifying voter registration information and representatives of the news media for a legitimate
law enforcement purpose, as determined by the department; or
(ii) a person, organization, or entity, on the express consent of the person to whom the information
pertains.
(2) The department may not disclose a social security number unless:
(a) it is disclosed for the purposes of subtitle VI of Title 49 of the U.S.C.;
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ENROLLED BILL
(b) it is disclosed to the department of public health and human services for use in administering
Title IV-D of the Social Security Act;
(c) the release of the social security number is specifically authorized by law, but only the final four
numbers of a social security number may be released to county government election officials verifying voter
registration information; or
(d) it is disclosed to the department of labor and industry for the purpose of unemployment
insurance program integrity, pursuant to 39-51-706; or
(d)(e) it is disclosed to the department of revenue for use in administering and enforcing Montana's
income tax laws. The department of revenue shall treat social security numbers received pursuant to this
subsection (2)(d) as confidential pursuant to 15-30-2618."
Section 7. Repealer. The following section of the Montana Code Annotated is repealed:
39-51-703. Definitions.
Section 8. Effective dates. (1) Except as provided in subsection (2), [this act] is effective October 1,
2025.
(2) [Sections 4 and 5] and this section are effective on passage and approval.
- END -
I hereby certify that the within bill,
HB 210, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 210
INTRODUCED BY S. FITZPATRICK
AN ACT GENERALLY REVISING UNEMPLOYMENT INSURANCE PROGRAM COLLECTION RATES AND
USES; CLARIFYING AND EXPANDING THE UNEMPLOYMENT INSURANCE PROGRAM INTEGRITY ACT;
CREATING A LOWER TAX SCHEDULE TO THE UNEMPLOYMENT INSURANCE EMPLOYER
CLASSIFICATION AND EXPERIENCE RATING RATE SCHEDULE; PERMITTING CARRYFORWARD OF
PENALTY AND INTEREST MONEY ACROSS FISCAL YEARS; PROVIDING LIMITED DISCLOSURE OF THE
MOTOR VEHICLE RECORD; AMENDING SECTIONS 39-51-702, 39-51-706, 39-51-1218, 39-51-3201, 39-51-
3202, AND 61-11-508, MCA; REPEALING SECTION 39-51-703, MCA; AND PROVIDING EFFECTIVE DATES.