News release, Feb. 24, 1998A

Georgia Department of Labor
Suite 642 148 International Boulevard N.E. Atlanta, Georgia 30303-1751 (404)656-3032

February 24, 1998

FOR IMMEDIATE RELEASE

FULLERTON PRAISES REPRESENTATIVE SMITH FOR LEGISLATIVE ACTION

ATLANTA -- State Labor Commissioner Marti Fullerton today praised State Representative Larry Smith of Jackson, chairman of the House Industrial Relations Committee, for his leadership surrounding the passage in the House of a bill that could lead to a $100 million tax cut for employers and combat workplace drug abuse at the same time. The bill would also increase the maximum weekly unemployment insurance benefit by $20.

"This is cutting-edge legislation in that it represents the first time any state has considered using a reduction in the unemployment insurance tax to fight the growing use of drugs in the workplace," said Fullerton. "I commend Rep. Smith for introducing this bill and for his leadership in getting it passed by the House. The bill not only will save Georgia employers millions of tax dollars, it will also protect Georgia workers by encouraging employers to establish drug-free work environments. And, it will help provide improved financial security for workers who are between jobs."

The legislation would provide two reductions in the payroll tax that funds the unemployment insurance program. It will reduce the tax by two-tenths percent, or about $16 per employee, for businesses that have implemented certified drug-free workplace programs. Employers who have drug-free workplace programs normally experience fewer workplace accidents, improved productivity and cheaper production costs than those without such programs. The bill also would provide an across-the-board tax cut for all employers of $87.6 million, or $9 per employee.

The bill, House Bill 1140, would increase the maximum weekly unemployment insurance benefit paid to workers who have lost their job through no fault of their own from $224 to $244. Georgia now ranks 41st in the nation among states in the amount of unemployment insurance benefits and fifth among Southeastern states. The increase, the fifth since 1994, would become effective July 1.

The bill would also authorize the department to withhold child support payments from unemployment insurance benefits paid to "dead-beat dads" from other states and turn the money over to the court.

The bill has gone to the State Senate for consideration.

Smith represents House District 109, which includes Butts and portions of Henry and Lamar counties. In addition to serving as chairman of the Industrial Relations Committee, he is vice-chairman of the Intra-Governmental Coordination Committee, and serves on the Appropriations and Banks and Banking Committees.

NEWS MEDIA NEEDING MORE INFORMATION MAY CALL THE GEORGIA E-mail: communications@dol.state.ga.us.

FY-98-407

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