SF2677 Summary

• Appropriates $2.73 billion ($2.32 billion from federal fiscal recovery fund and $405.8 million from general fund) to repay federal unemployment insurance trust fund loans and replenish the state unemployment insurance trust fund.

• Freezes employer base tax rate at 0.1% and eliminates additional assessments for calendar years 2022-2023; establishes zero percent special assessment rate for 2022; credits employers for overpayments and waives penalties on first quarter 2022 taxes paid after May 31, 2022.

• Creates frontline worker payment program providing up to $1,500 per eligible worker in 15 designated sectors (healthcare, retail, food service, manufacturing, etc.) who worked at least 120 hours between March 15, 2020 and June 30, 2021 and meets income thresholds of $85,000-$175,000 for single filers or $185,000-$350,000 for joint filers.

• Appropriates $500 million for frontline worker payments and $11.65 million for administrative costs; excludes payments from income for tax and benefit eligibility purposes.

• Appropriates $190 million for COVID-19 management costs (testing, vaccinations, outbreak management, health system supports) from May 23, 2022 through February 15, 2023, subject to Legislative COVID-19 Response Commission review.