| 1 | A bill to be entitled |
| 2 | An act relating to workforce development; creating s. |
| 3 | 445.06, F.S.; creating the Florida Business and Workforce |
| 4 | Competitiveness Program within the Agency for Workforce |
| 5 | Innovation; requiring funds allocated to the program to be |
| 6 | used for competitive grants awarded by the regional |
| 7 | workforce boards; providing the purpose of the program; |
| 8 | requiring Workforce Florida, Inc., to allocate funds from |
| 9 | the Florida Business and Workforce Competitiveness Trust |
| 10 | Fund to regional workforce boards; providing that only |
| 11 | certain employers are eligible for an award of a grant |
| 12 | under the program; imposing an employment training |
| 13 | investment assessment; providing the time and method in |
| 14 | which the employment training investment assessment is |
| 15 | due; providing conditions when the employment training |
| 16 | investment assessment is not imposed; requiring Workforce |
| 17 | Florida, Inc., to establish guidelines governing the |
| 18 | program and criteria to evaluate applications for funding; |
| 19 | amending s. 443.131, F.S.; providing for an adjustment in |
| 20 | the contribution rates for unemployment compensation of |
| 21 | certain employers; providing an exception from the |
| 22 | restriction against rounding an employer's contribution |
| 23 | rate to less than 0.1 percent; providing a contingent |
| 24 | effective date. |
| 25 |
|
| 26 | Be It Enacted by the Legislature of the State of Florida: |
| 27 |
|
| 28 | Section 1. Section 445.06, Florida Statutes, is created to |
| 29 | read: |
| 30 | 445.06 Florida Business and Workforce Competitiveness |
| 31 | Program.-- |
| 32 | (1) The Florida Business and Workforce Competitiveness |
| 33 | Program is created within the Agency for Workforce Innovation |
| 34 | and funds allocated to the program shall be used by regional |
| 35 | workforce boards, as defined in s. 445.007, to award competitive |
| 36 | grants to employers for the purpose of fostering economic |
| 37 | development by training incumbent, underemployed, and employed |
| 38 | workers in occupations that are in demand. The purpose of the |
| 39 | program is to provide the training needed to effectively address |
| 40 | the changing skill requirements resulting from new technology, |
| 41 | retooling, new product lines, and new organizational |
| 42 | structuring. Each regional workforce board shall administer the |
| 43 | grants, including determining award recipients within funding |
| 44 | available to it for that purpose. |
| 45 | (2) Workforce Florida, Inc., shall allocate to each |
| 46 | regional workforce board its share of funds available under the |
| 47 | program in accordance with procedures established for this |
| 48 | purpose. |
| 49 | (3) A quarterly employment training investment assessment |
| 50 | shall be imposed on or after January 1, 2009, on each employer |
| 51 | paying contributions under s. 443.131 at a rate below the |
| 52 | maximum contribution rate of 5.4 percent as provided in s. |
| 53 | 443.131(3)(e)1.d. as a separate assessment of one-hundredth of 1 |
| 54 | percent of wages paid by the employer as defined in s. 443.1217 |
| 55 | and the proceeds shall be deposited in the Florida Business and |
| 56 | Workforce Competitiveness Trust Fund for the purposes of this |
| 57 | section. |
| 58 | (4) Only employers who are subject to the contribution |
| 59 | method of financing unemployment compensation benefits under s. |
| 60 | 443.131 and who are subject to the employment training |
| 61 | investment assessment are eligible for award of a grant under |
| 62 | this program. |
| 63 | (5) The employment training investment assessment is due |
| 64 | at the same time, collected in the same manner, and subject to |
| 65 | the same penalties and interest as other contributions assessed |
| 66 | under s. 443.131. |
| 67 | (6) The employment training investment assessment may not |
| 68 | be imposed for any year in which the balance in the Unemployment |
| 69 | Compensation Trust Fund requires the computation of a positive |
| 70 | adjustment factor as provided in s. 443.131(3)(e)1.c. |
| 71 | (7) Workforce Florida, Inc., shall establish guidelines |
| 72 | governing the administration of the Florida Business and |
| 73 | Workforce Competitiveness Program and shall establish criteria |
| 74 | to be used by regional workforce boards in evaluating |
| 75 | applications for funding. |
| 76 | Section 2. Paragraph (c) is added to subsection (2) of |
| 77 | section 443.131, Florida Statutes, and paragraph (e) of |
| 78 | subsection (3) of that section is amended, to read: |
| 79 | 443.131 Contributions.-- |
| 80 | (2) CONTRIBUTION RATES.--Each employer must pay |
| 81 | contributions equal to the following percentages of wages paid |
| 82 | by him or her for employment: |
| 83 | (c) Adjustment.--On or after January 1, 2009, the |
| 84 | contribution rate of each employer having an initial or variable |
| 85 | rate below the maximum contribution rate of 5.4 percent provided |
| 86 | in sub-subparagraph (3)(e)1.d. shall be adjusted to a rate |
| 87 | computed by subtracting one-hundredth of 1 percent from the rate |
| 88 | otherwise computed under this section. However, the adjustment |
| 89 | provided in this paragraph shall not be in effect for any year |
| 90 | in which the balance in the Unemployment Compensation Trust Fund |
| 91 | requires the computation of a positive adjustment factor as |
| 92 | provided in sub-subparagraph (3)(e)1.c. |
| 93 | (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT |
| 94 | EXPERIENCE.-- |
| 95 | (e) Assignment of variations from the standard rate.-- |
| 96 | 1. The tax collection service provider shall assign a |
| 97 | variation from the standard rate of contributions for each |
| 98 | calendar year to each eligible employer. In determining the |
| 99 | contribution rate, varying from the standard rate to be assigned |
| 100 | each employer, adjustment factors computed under sub- |
| 101 | subparagraphs a.-c. shall be added to the benefit ratio. This |
| 102 | addition shall be accomplished in two steps by adding a variable |
| 103 | adjustment factor and a final adjustment factor. The sum of |
| 104 | these adjustment factors computed under sub-subparagraphs a.-c. |
| 105 | shall first be algebraically summed. The sum of these adjustment |
| 106 | factors shall next be divided by a gross benefit ratio |
| 107 | determined as follows: Total benefit payments for the 3-year |
| 108 | period described in subparagraph (b)2. shall be charged to |
| 109 | employers eligible for a variation from the standard rate, minus |
| 110 | excess payments for the same period, divided by taxable payroll |
| 111 | entering into the computation of individual benefit ratios for |
| 112 | the calendar year for which the contribution rate is being |
| 113 | computed. The ratio of the sum of the adjustment factors |
| 114 | computed under sub-subparagraphs a.-c. to the gross benefit |
| 115 | ratio shall be multiplied by each individual benefit ratio that |
| 116 | is less than the maximum contribution rate to obtain variable |
| 117 | adjustment factors; except that in any instance in which the sum |
| 118 | of an employer's individual benefit ratio and variable |
| 119 | adjustment factor exceeds the maximum contribution rate, the |
| 120 | variable adjustment factor shall be reduced in order that the |
| 121 | sum equals the maximum contribution rate. The variable |
| 122 | adjustment factor for each of these employers is multiplied by |
| 123 | his or her taxable payroll entering into the computation of his |
| 124 | or her benefit ratio. The sum of these products shall be divided |
| 125 | by the taxable payroll of the employers who entered into the |
| 126 | computation of their benefit ratios. The resulting ratio shall |
| 127 | be subtracted from the sum of the adjustment factors computed |
| 128 | under sub-subparagraphs a.-c. to obtain the final adjustment |
| 129 | factor. The variable adjustment factors and the final adjustment |
| 130 | factor shall be computed to five decimal places and rounded to |
| 131 | the fourth decimal place. This final adjustment factor shall be |
| 132 | added to the variable adjustment factor and benefit ratio of |
| 133 | each employer to obtain each employer's contribution rate. With |
| 134 | the exception of the adjustment provided in paragraph (2)(c), an |
| 135 | employer's contribution rate may not, however, be rounded to |
| 136 | less than 0.1 percent. |
| 137 | a. An adjustment factor for noncharge benefits shall be |
| 138 | computed to the fifth decimal place and rounded to the fourth |
| 139 | decimal place by dividing the amount of noncharge benefits |
| 140 | during the 3-year period described in subparagraph (b)2. by the |
| 141 | taxable payroll of employers eligible for a variation from the |
| 142 | standard rate who have a benefit ratio for the current year |
| 143 | which is less than the maximum contribution rate. For purposes |
| 144 | of computing this adjustment factor, the taxable payroll of |
| 145 | these employers is the taxable payrolls for the 3 years ending |
| 146 | June 30 of the current calendar year as reported to the tax |
| 147 | collection service provider by September 30 of the same calendar |
| 148 | year. As used in this sub-subparagraph, the term "noncharge |
| 149 | benefits" means benefits paid to an individual from the |
| 150 | Unemployment Compensation Trust Fund, but which were not charged |
| 151 | to the employment record of any employer. |
| 152 | b. An adjustment factor for excess payments shall be |
| 153 | computed to the fifth decimal place, and rounded to the fourth |
| 154 | decimal place by dividing the total excess payments during the |
| 155 | 3-year period described in subparagraph (b)2. by the taxable |
| 156 | payroll of employers eligible for a variation from the standard |
| 157 | rate who have a benefit ratio for the current year which is less |
| 158 | than the maximum contribution rate. For purposes of computing |
| 159 | this adjustment factor, the taxable payroll of these employers |
| 160 | is the same figure used to compute the adjustment factor for |
| 161 | noncharge benefits under sub-subparagraph a. As used in this |
| 162 | sub-subparagraph, the term "excess payments" means the amount of |
| 163 | benefits charged to the employment record of an employer during |
| 164 | the 3-year period described in subparagraph (b)2., less the |
| 165 | product of the maximum contribution rate and the employer's |
| 166 | taxable payroll for the 3 years ending June 30 of the current |
| 167 | calendar year as reported to the tax collection service provider |
| 168 | by September 30 of the same calendar year. As used in this sub- |
| 169 | subparagraph, the term "total excess payments" means the sum of |
| 170 | the individual employer excess payments for those employers that |
| 171 | were eligible to be considered for assignment of a contribution |
| 172 | rate different from the standard rate. |
| 173 | c. If the balance of the Unemployment Compensation Trust |
| 174 | Fund on June 30 of the calendar year immediately preceding the |
| 175 | calendar year for which the contribution rate is being computed |
| 176 | is less than 3.7 percent of the taxable payrolls for the year |
| 177 | ending June 30 as reported to the tax collection service |
| 178 | provider by September 30 of that calendar year, a positive |
| 179 | adjustment factor shall be computed. The positive adjustment |
| 180 | factor shall be computed annually to the fifth decimal place and |
| 181 | rounded to the fourth decimal place by dividing the sum of the |
| 182 | total taxable payrolls for the year ending June 30 of the |
| 183 | current calendar year as reported to the tax collection service |
| 184 | provider by September 30 of that calendar year into a sum equal |
| 185 | to one-fourth of the difference between the balance of the fund |
| 186 | as of June 30 of that calendar year and the sum of 4.7 percent |
| 187 | of the total taxable payrolls for that year. The positive |
| 188 | adjustment factor remains in effect for subsequent years until |
| 189 | the balance of the Unemployment Compensation Trust Fund as of |
| 190 | June 30 of the year immediately preceding the effective date of |
| 191 | the contribution rate equals or exceeds 3.7 percent of the |
| 192 | taxable payrolls for the year ending June 30 of the current |
| 193 | calendar year as reported to the tax collection service provider |
| 194 | by September 30 of that calendar year. If the balance of the |
| 195 | Unemployment Compensation Trust Fund as of June 30 of the year |
| 196 | immediately preceding the calendar year for which the |
| 197 | contribution rate is being computed exceeds 4.7 percent of the |
| 198 | taxable payrolls for the year ending June 30 of the current |
| 199 | calendar year as reported to the tax collection service provider |
| 200 | by September 30 of that calendar year, a negative adjustment |
| 201 | factor shall be computed. The negative adjustment factor shall |
| 202 | be computed annually to the fifth decimal place and rounded to |
| 203 | the fourth decimal place by dividing the sum of the total |
| 204 | taxable payrolls for the year ending June 30 of the current |
| 205 | calendar year as reported to the tax collection service provider |
| 206 | by September 30 of the calendar year into a sum equal to one- |
| 207 | fourth of the difference between the balance of the fund as of |
| 208 | June 30 of the current calendar year and 4.7 percent of the |
| 209 | total taxable payrolls of that year. The negative adjustment |
| 210 | factor remains in effect for subsequent years until the balance |
| 211 | of the Unemployment Compensation Trust Fund as of June 30 of the |
| 212 | year immediately preceding the effective date of the |
| 213 | contribution rate is less than 4.7 percent, but more than 3.7 |
| 214 | percent of the taxable payrolls for the year ending June 30 of |
| 215 | the current calendar year as reported to the tax collection |
| 216 | service provider by September 30 of that calendar year. |
| 217 | d. The maximum contribution rate that may be assigned to |
| 218 | an employer is 5.4 percent, except employers participating in an |
| 219 | approved short-time compensation plan may be assigned a maximum |
| 220 | contribution rate that is 1 percent greater than the maximum |
| 221 | contribution rate for other employers in any calendar year in |
| 222 | which short-time compensation benefits are charged to the |
| 223 | employer's employment record. |
| 224 | 2. If the transfer of an employer's employment record to |
| 225 | an employing unit under paragraph (f) which, before the |
| 226 | transfer, was an employer, the tax collection service provider |
| 227 | shall recompute a benefit ratio for the successor employer based |
| 228 | on the combined employment records and reassign an appropriate |
| 229 | contribution rate to the successor employer effective on the |
| 230 | first day of the calendar quarter immediately after the |
| 231 | effective date of the transfer. |
| 232 | Section 3. This act shall take effect upon becoming a law, |
| 233 | if HB 1507 or similar legislation is adopted in the same |
| 234 | legislative session or an extension thereof and becomes law. |