Bill C-404

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First Reading

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	2nd Session, 36th Parliament, 48 Elizabeth II, 1999
	The House of Commons of Canada
	BILL C-404
	An Act to amend the Employment Insurance Act and the Department of Human Resources Development Act, 1999
1996, c. 23; 1997, c. 26; 1998, cc. 19, 21; 1999, c. 17	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	*1. Subsection 2(5) of the Employment Insurance Act* is replaced by the following:**
Weeks of regular benefits paid	(5) For the purposes of section 145, the Commission may, with the approval of the Governor in Council, make regulations for establishing how many weeks of regular benefits a claimant was paid, in order to take into account benefit reductions or deductions in the calculation or payment of those benefits.
	2. The last line of the Table following subsection 7(2) of the Act is replaced by the following:
	more than 13% but not more than 14% 420
	more than 14% but not more than15% 385
	more than 15% 350
	3. The last two lines of the Table following subsection 7.1(1) of the Act are replaced by the following:
	more than 13% but not more than 14% /le plus de 13 % mais au plus 14 % 525 630 735 840
	more than 14% but not more than 15% /le plus de 14 % mais au plus 15 % 481 578 674 770
	more than 15% / plus de 15 % 438 525 613 700
	4. Section 4 of the Act is replaced by the following:
Maximum for each year	4. For the purposes of subsection 82(2) and sections 95 and 145, the maximum yearly insurable earnings is the amount obtained by multiplying the weekly insurable earnings by 52.
	5. The definition of ``major attachment claimant'' in section 6 of the Act is replaced by the following:
``major attachment claimant'' « prestataire de la première catégorie »	``major attachment claimant'' means a claimant who qualifies to receive benefits and has had at least,
	(a) in the case of a claimant who requests special benefits, 300 hours of insurable employment during the claimant's qualifying period; or
	(b) in any other case , 700 hours of insurable employment during the claimant's qualifying period.
	6. (1) The portion of subsection 7(2) of the Act before the table is replaced by the following:
Qualification requirement	(2) An insured person qualifies if the person
	(a) has had an interruption of earnings from employment; and
	(b) has had during the person's qualifying period at least
	(i) 300 hours of insurable employment, in the case of a person who requests special benefits; or
	(ii) the number of hours of insurable employment set out in the following table in relation to the regional rate of unemployment that applies to the person, in any other case.
	(2) Subsection 7(3) to (5) of the Act are repealed.
	7. (1) The portion of subsection 7.1(1) of the Act before the table is replaced by the following:
Increase in required hours	7.1 (1) The number of hours that an insured person requires under section 7 to qualify for benefits is increased to the number provided in the following table if the insured person accumulates one or more violations in the 260 weeks before making the initial claim for benefits.
	(2) Subsections 7.1(2) and (3) of the Act are replaced by the following:
Limitation	(3) A violation may not be taken into account under subsection (1) in more than two initial claims for benefits if the insured person qualified for benefits with the increased number of hours in each of those claims.
	8. Paragraph 10(8)(c) of the Act is replaced by the following:
	(c) 50 weeks of benefit has been paid to the claimant in the claimant's benefit period; or
	9. (1) Subsections 14(1.1) and (2) of the Act are replaced by the following:
Maximum weekly insurable earnings	(1.1) The maximum weekly insurable earnings has the same meaning as in sections 45 to 47 of the Unemployment Insurance Act, R.S. 1985, c. U-1, as those sections read on June 29, 1996.
Regulations	(1.2) The Governor in Council may make regulations for the application of section 46 referred to in subsection (1.1).
Weekly insurable earnings	(2) A claimant's weekly insurable earnings are the claimant's average insurable earnings for the number of weeks in which the claimant had the highest insurable earnings in the rate calculation period determined in accordance with the following table by reference to the applicable regional rate of unemployment.
	TABLE
	Regional Rate of Unemployment Weeks
	not more than 6% 20
	more than 6% but not more than 7% 19
	more than 7% but not more than 8% 18
	more than 8% but not more than 9% 17
	more than 9% but not more than 10% 16
	more than 10% but not more than 11% 15
	more than 11% but not more than 12% 14
	more than 12% but not more than 13% 13
	more than 13% but not more than 14% 12
	more than 14% but not more than15% 11
	more than 15% 10
	(2) The portion of subsection 14(4) of the Act immediately before paragraph (a) is replaced by the following:
Rate calculation period	(4) The rate calculation period is the period of not more than 52 consecutive weeks in the claimant's qualifying period ending with the later of
	(3) Subsection 14(4.1) of the Act is replaced by the following:
Length of rate calculation period	(4.1) The rate calculation is 52 weeks, unless the claimant's qualifying period begins on a Sunday that is less than 52 weeks before the Sunday of the week in which the rate calculation period ends under subsection (4), in which case it is the number of weeks between those Sundays.
	10. Section 15 of the Act is repealed.
	11. Section 17 of the Act is repealed.
	12. Subsection 19(2) of the Act is replaced by the following:
Earnings in periods of unemploymen t	(2) Subject to subsections (3) and (4), if the claimant has earnings during any other week of unemployment, there shall be deducted from benefits payable in that week the amount, if any, of the earnings that exceeds 25% of the maximum rate of weekly benefit.
	13. Subsection 21(1) of the Act is repealed.
	14. Subsection 28(6) of the Act is replaced by the following:
Presumption	(6) For the purposes of this Part, benefits are deemed to be paid for the weeks of disqualification.
	15. Subsection 38(3) of the Act is replaced by the following:
Determination s under subsection 145(2) or (3)	(3) For greater certainty, the repayment of benefits overpaid as a result of an act or omission mentioned in subsection (1) does not affect the determination, for the purposes of subsection 145(2) or (3), of the number of weeks of regular benefits paid to a claimant.
	*16. Section 66 of the Employment Insurance Act* is replaced by the following:**
	66. (1) On the first day of October in each year, the Commission shall cause a report to be sent to the Minister containing its recommendations respecting the setting of the premium rate for the year and the change, if any, to the amount of benefits at a rate that the Commission considers will, to the extent possible,
	(a) ensure that there will be enough revenue over a business cycle to pay the expenses authorized to be charged to the Employment Insurance Account; and
	(b) maintain relatively stable rate levels throughout the business cycle.
Contents of report	(2) The report under subsection (1) shall contain
	(a) a detailed description of the assets of the Commission on the first day of September in each year;
	(b) a detailed description of the amounts that have been paid into or paid out of the Employment Insurance Account since the previous report;
	(c) an estimate of the amounts to be paid into the Employment Insurance Account under this Act for the following year, calculated on the basis of the premium rate recommended by the Commission in the report;
	(d) an estimate of the amounts to be paid out of the Employment Insurance Account under this Act for the following year, calculated on the basis of the amount of benefits to be paid according to the recommendations made by the Commission in the report; and
	(e) any other information that the Commission considers necessary to explain the choice of recommendations contained in the report.
Tabling of report	(3) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first five days on which that House is sitting after the report is submitted to the Minister.
Annual premium rate setting	66.1 (1) Not later than November 30 in each year, the Minister shall set the premium rate that the Minister considers will, to the extent possible,
	(a) ensure that that will be enough revenue over a business cycle to pay the expenses authorized to be charged to the Employment Insurance Account; and
	(b) maintain relatively stable rate levels throughout the business cycle.
Duty to take recommendati ons into account	(2) In performing the duty referred to under subsection (1), the Minister shall take into account the recommendations contained in the report under section 66.
	17. Sections 71 to 76 of the Act are replaced by the following:
Employment Insurance Account established	71. There shall be established in the name of the Commission an account to be known as the Employment Insurance Account.
Payment into the Employment Insurance Account	72. (1) There shall be paid into the Employment Insurance Account
	(a) all the amounts credited to the Employment Insurance Account - as this account existed immediately prior to the day this section comes into force - and not charged to this account for the purposes of this Act on the coming into force of this section;
	(b) all amounts received under Parts I and III to IX, as or on account of premiums, fines, penalties, interest, repayment of overpaid benefits and benefit repayment;
	(c) all amounts collected by the Commission for services rendered to other government departments or agencies or to the public;
	(d) all amounts received on account of principal or interest on loans made by the Commission under Part II or as repayment of overpayments made by the Commission under that Part;
	(e) all premiums required to be paid by Her Majesty in right of Canada as employer's premiums for persons employed in insurable employment by Her Majesty in right of Canada;
	(f) all amounts paid into the Consolidated Revenue Fund that are
	(i) received as or on account of penalties imposed under section 38, 39 or 65.1 and repayments of overpaid benefits, except interest and penalties on benefit repayment,
	(ii) received on account of principal or interest on loans made by the Commission under Part II,
	(iii) received as repayments of overpayments by the Commission under section 61 for employment benefits and support measures authorized by Part II,
	(iv) received as repayments of overpayments by the Commission under agreements entered into under section 63, or
	(v) received as interest under section 80.1;
	(g) any amount provided out of the Consolidated Revenue Fund to the Commission by the Minister of Finance under section 74;
	(h) any amount provided out of the Consolidated Revenue Fund appropriated by Parliament intended for any purpose related to employment insurance and administered by the Commission; and

Bill C-404

BILL C-404

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