CS for CS for SB 810                            Second Engrossed
       
       
       
       
       
       
       
       
       2009810e2
       
    1                        A bill to be entitled                      
    2         An act relating to unemployment compensation; amending
    3         s. 443.1217, F.S.; raising the amount of an employee’s
    4         wages subject to an employer’s contribution to the
    5         trust fund, with a reversion to current law after
    6         January 1, 2015; amending s. 443.131, F.S.; revising
    7         the rate and recoupment period for computing the
    8         employer contribution to the trust fund, with a
    9         reversion to current law for recoupment after January
   10         1, 2015; providing the calculation for lowering an
   11         employer’s contribution to the trust fund under
   12         certain circumstances beginning January 1, 2015;
   13         providing for a suspension of lowering the employer’s
   14         contribution under certain circumstances; providing a
   15         definition of taxable payroll; amending s. 443.191,
   16         F.S.; providing for advances to be credited to the
   17         Unemployment Compensation Trust Fund; providing
   18         authority to the Governor or the Governor’s designee
   19         to request advances; creating s. 443.1117, F.S.;
   20         providing for retroactive application; establishing
   21         temporary state extended benefits for weeks of
   22         unemployment between February 22, 2009, and January 2,
   23         2010; creating definitions; providing for state
   24         extended benefits for certain weeks and for periods of
   25         high unemployment; providing for applicability of s.
   26         443.1117, F.S.; amending s. 443.101, F.S.; providing
   27         additional provisions dealing with disqualification
   28         for benefits under certain conditions; providing that
   29         the act fulfills an important state interest;
   30         providing effective dates.
   31  
   32  Be It Enacted by the Legislature of the State of Florida:
   33  
   34         Section 1. Effective January 1, 2010, paragraph (a) of
   35  subsection (2) of section 443.1217, Florida Statutes, is amended
   36  to read:
   37         443.1217 Wages.—
   38         (2) For the purpose of determining an employer’s
   39  contributions, the following wages are exempt from this chapter:
   40         (a) That part of remuneration paid to an individual by an
   41  employer for employment during a calendar year in excess of the
   42  first $8,500 $7,000 of remuneration paid to the individual by
   43  the employer or his or her predecessor during that calendar
   44  year, unless that part of the remuneration is subject to a tax,
   45  under a federal law imposing the tax, against which credit may
   46  be taken for contributions required to be paid into a state
   47  unemployment fund. As used in this section only, the term
   48  “employment” includes services constituting employment under any
   49  employment security law of another state or of the Federal
   50  Government. Beginning January 1, 2015, the part of remuneration
   51  paid to an individual by an employer for employment during a
   52  calendar year in excess of the first $7,000 is exempt from this
   53  chapter.
   54         Section 2. Effective January 1, 2010, paragraph (e) of
   55  subsection (3) of section 443.131, Florida Statutes, is amended
   56  to read:
   57         443.131 Contributions.—
   58         (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
   59  EXPERIENCE.—
   60         (e) Assignment of variations from the standard rate.For
   61  the calculation of contribution rates effective January 1, 2010,
   62  and thereafter:
   63         1. The tax collection service provider shall assign a
   64  variation from the standard rate of contributions for each
   65  calendar year to each eligible employer. In determining the
   66  contribution rate, varying from the standard rate to be assigned
   67  each employer, adjustment factors computed under sub
   68  subparagraphs a.-d. a.-c. shall be added to the benefit ratio.
   69  This addition shall be accomplished in two steps by adding a
   70  variable adjustment factor and a final adjustment factor. The
   71  sum of these adjustment factors computed under sub-subparagraphs
   72  a.-d. a.-c. shall first be algebraically summed. The sum of
   73  these adjustment factors shall next be divided by a gross
   74  benefit ratio determined as follows: Total benefit payments for
   75  the 3-year period described in subparagraph (b)2. shall be
   76  charged to employers eligible for a variation from the standard
   77  rate, minus excess payments for the same period, divided by
   78  taxable payroll entering into the computation of individual
   79  benefit ratios for the calendar year for which the contribution
   80  rate is being computed. The ratio of the sum of the adjustment
   81  factors computed under sub-subparagraphs a.-d. a.-c. to the
   82  gross benefit ratio shall be multiplied by each individual
   83  benefit ratio that is less than the maximum contribution rate to
   84  obtain variable adjustment factors; except that in any instance
   85  in which the sum of an employer’s individual benefit ratio and
   86  variable adjustment factor exceeds the maximum contribution
   87  rate, the variable adjustment factor shall be reduced in order
   88  that the sum equals the maximum contribution rate. The variable
   89  adjustment factor for each of these employers is multiplied by
   90  his or her taxable payroll entering into the computation of his
   91  or her benefit ratio. The sum of these products shall be divided
   92  by the taxable payroll of the employers who entered into the
   93  computation of their benefit ratios. The resulting ratio shall
   94  be subtracted from the sum of the adjustment factors computed
   95  under sub-subparagraphs a.-d. a.-c. to obtain the final
   96  adjustment factor. The variable adjustment factors and the final
   97  adjustment factor shall be computed to five decimal places and
   98  rounded to the fourth decimal place. This final adjustment
   99  factor shall be added to the variable adjustment factor and
  100  benefit ratio of each employer to obtain each employer’s
  101  contribution rate. An employer’s contribution rate may not,
  102  however, be rounded to less than 0.1 percent.
  103         a. An adjustment factor for noncharge benefits shall be
  104  computed to the fifth decimal place and rounded to the fourth
  105  decimal place by dividing the amount of noncharge benefits
  106  during the 3-year period described in subparagraph (b)2. by the
  107  taxable payroll of employers eligible for a variation from the
  108  standard rate who have a benefit ratio for the current year
  109  which is less than the maximum contribution rate. For purposes
  110  of computing this adjustment factor, the taxable payroll of
  111  these employers is the taxable payrolls for the 3 years ending
  112  June 30 of the current calendar year as reported to the tax
  113  collection service provider by September 30 of the same calendar
  114  year. As used in this sub-subparagraph, the term “noncharge
  115  benefits” means benefits paid to an individual from the
  116  Unemployment Compensation Trust Fund, but which were not charged
  117  to the employment record of any employer.
  118         b. An adjustment factor for excess payments shall be
  119  computed to the fifth decimal place, and rounded to the fourth
  120  decimal place by dividing the total excess payments during the
  121  3-year period described in subparagraph (b)2. by the taxable
  122  payroll of employers eligible for a variation from the standard
  123  rate who have a benefit ratio for the current year which is less
  124  than the maximum contribution rate. For purposes of computing
  125  this adjustment factor, the taxable payroll of these employers
  126  is the same figure used to compute the adjustment factor for
  127  noncharge benefits under sub-subparagraph a. As used in this
  128  sub-subparagraph, the term “excess payments” means the amount of
  129  benefits charged to the employment record of an employer during
  130  the 3-year period described in subparagraph (b)2., less the
  131  product of the maximum contribution rate and the employer’s
  132  taxable payroll for the 3 years ending June 30 of the current
  133  calendar year as reported to the tax collection service provider
  134  by September 30 of the same calendar year. As used in this sub
  135  subparagraph, the term “total excess payments” means the sum of
  136  the individual employer excess payments for those employers that
  137  were eligible to be considered for assignment of a contribution
  138  rate different from the standard rate.
  139         c. If the balance of the Unemployment Compensation Trust
  140  Fund on June 30 of the calendar year immediately preceding the
  141  calendar year for which the contribution rate is being computed
  142  is less than 4 3.7 percent of the taxable payrolls for the year
  143  ending June 30 as reported to the tax collection service
  144  provider by September 30 of that calendar year, a positive
  145  adjustment factor shall be computed. The positive adjustment
  146  factor shall be computed annually to the fifth decimal place and
  147  rounded to the fourth decimal place by dividing the sum of the
  148  total taxable payrolls for the year ending June 30 of the
  149  current calendar year as reported to the tax collection service
  150  provider by September 30 of that calendar year into a sum equal
  151  to one-third one-fourth of the difference between the balance of
  152  the fund as of June 30 of that calendar year and the sum of 5
  153  4.7 percent of the total taxable payrolls for that year. The
  154  positive adjustment factor remains in effect for subsequent
  155  years until the balance of the Unemployment Compensation Trust
  156  Fund as of June 30 of the year immediately preceding the
  157  effective date of the contribution rate equals or exceeds 5 3.7
  158  percent of the taxable payrolls for the year ending June 30 of
  159  the current calendar year as reported to the tax collection
  160  service provider by September 30 of that calendar year.
  161  Beginning January 1, 2015, and for each year thereafter, the
  162  positive adjustment authorized by this section shall be computed
  163  by dividing the sum of the total taxable payrolls for the year
  164  ending June 30 of the current calendar year as reported to the
  165  tax collection service provider by September 30 of that calendar
  166  year into a sum equal to one-fourth of the difference between
  167  the balance of the fund as of June 30 of that calendar year and
  168  the sum of 5 percent of the total taxable payrolls for that
  169  year. The positive adjustment factor remains in effect for
  170  subsequent years until the balance of the Unemployment
  171  Compensation Trust Fund as of June 30 of the year immediately
  172  preceding the effective date of the contribution rate equals or
  173  exceeds 4 percent of the taxable payrolls for the year ending
  174  June 30 of the current calendar year as reported to the tax
  175  collection service provider by September 30 of that calendar
  176  year.
  177         d. If, beginning January 1, 2015, and each year thereafter,
  178  the balance of the Unemployment Compensation Trust Fund as of
  179  June 30 of the year immediately preceding the calendar year for
  180  which the contribution rate is being computed exceeds 5 4.7
  181  percent of the taxable payrolls for the year ending June 30 of
  182  the current calendar year as reported to the tax collection
  183  service provider by September 30 of that calendar year, a
  184  negative adjustment factor shall be computed. The negative
  185  adjustment factor shall be computed annually beginning on
  186  January 1, 2015, and each year thereafter, to the fifth decimal
  187  place and rounded to the fourth decimal place by dividing the
  188  sum of the total taxable payrolls for the year ending June 30 of
  189  the current calendar year as reported to the tax collection
  190  service provider by September 30 of the calendar year into a sum
  191  equal to one-fourth of the difference between the balance of the
  192  fund as of June 30 of the current calendar year and 5 4.7
  193  percent of the total taxable payrolls of that year. The negative
  194  adjustment factor remains in effect for subsequent years until
  195  the balance of the Unemployment Compensation Trust Fund as of
  196  June 30 of the year immediately preceding the effective date of
  197  the contribution rate is less than 5 4.7 percent, but more than
  198  4 3.7 percent of the taxable payrolls for the year ending June
  199  30 of the current calendar year as reported to the tax
  200  collection service provider by September 30 of that calendar
  201  year. The negative adjustment authorized by this section is
  202  suspended in any calendar year in which repayment of the
  203  principal amount of an advance received from the federal
  204  Unemployment Compensation Trust Fund under 42 U.S.C. s. 1321 is
  205  due to the Federal government.
  206         e.d. The maximum contribution rate that may be assigned to
  207  an employer is 5.4 percent, except employers participating in an
  208  approved short-time compensation plan may be assigned a maximum
  209  contribution rate that is 1 percent greater than the maximum
  210  contribution rate for other employers in any calendar year in
  211  which short-time compensation benefits are charged to the
  212  employer’s employment record.
  213         f.As used in this subsection, “taxable payroll” shall be
  214  determined by excluding any part of the remuneration paid to an
  215  individual by an employer for employment during a calendar year
  216  in excess of the first $7,000.
  217         2. If the transfer of an employer’s employment record to an
  218  employing unit under paragraph (f) which, before the transfer,
  219  was an employer, the tax collection service provider shall
  220  recompute a benefit ratio for the successor employer based on
  221  the combined employment records and reassign an appropriate
  222  contribution rate to the successor employer effective on the
  223  first day of the calendar quarter immediately after the
  224  effective date of the transfer.
  225         Section 3. Subsections (1) and (3) of section 443.191,
  226  Florida Statutes, are amended to read:
  227         443.191 Unemployment Compensation Trust Fund; establishment
  228  and control.—
  229         (1) There is established, as a separate trust fund apart
  230  from all other public funds of this state, an Unemployment
  231  Compensation Trust Fund, which shall be administered by the
  232  Agency for Workforce Innovation exclusively for the purposes of
  233  this chapter. The fund shall consist of:
  234         (a) All contributions and reimbursements collected under
  235  this chapter;
  236         (b) Interest earned on any moneys in the fund;
  237         (c) Any property or securities acquired through the use of
  238  moneys belonging to the fund;
  239         (d) All earnings of these properties or securities; and
  240         (e) All money credited to this state’s account in the
  241  federal Unemployment Compensation Trust Fund under 42 U.S.C. s.
  242  1103; and.
  243         (f)Advances on the amount in the federal Unemployment
  244  Compensation Trust Fund credited to the state under 42 U.S.C. s.
  245  1321, as requested by the Governor or the Governor’s designee.
  246  
  247  Except as otherwise provided in s. 443.1313(4), all moneys in
  248  the fund shall be mingled and undivided.
  249         (3) Moneys may only be requisitioned from the state’s
  250  account in the federal Unemployment Compensation Trust Fund
  251  solely for the payment of benefits and extended benefits and for
  252  payment in accordance with rules prescribed by the Agency for
  253  Workforce Innovation, or for the repayment of advances made
  254  pursuant to 42 U.S.C. s. 1321, as authorized by the Governor or
  255  the Governor’s designee, except that money credited to this
  256  state’s account under 42 U.S.C. s. 1103 may only be used
  257  exclusively as provided in subsection (5). The Agency for
  258  Workforce Innovation, through the Chief Financial Officer, shall
  259  requisition from the federal Unemployment Compensation Trust
  260  Fund amounts, not exceeding the amounts credited to this state’s
  261  account in the fund, as necessary for the payment of benefits
  262  and extended benefits for a reasonable future period. Upon
  263  receipt of these amounts, the Chief Financial Officer shall
  264  deposit the moneys in the benefit account in the State Treasury
  265  and warrants for the payment of benefits and extended benefits
  266  shall be drawn upon the order of the Agency for Workforce
  267  Innovation against the account. All warrants for benefits and
  268  extended benefits are payable directly to the ultimate
  269  beneficiary. Expenditures of these moneys in the benefit account
  270  and refunds from the clearing account are not subject to any law
  271  requiring specific appropriations or other formal release by
  272  state officers of money in their custody. All warrants issued
  273  for the payment of benefits and refunds must bear the signature
  274  of the Chief Financial Officer. Any balance of moneys
  275  requisitioned from this state’s account in the federal
  276  Unemployment Compensation Trust Fund which remains unclaimed or
  277  unpaid in the benefit account after the period for which the
  278  moneys were requisitioned shall be deducted from estimates for,
  279  and may be used for the payment of, benefits and extended
  280  benefits during succeeding periods, or, in the discretion of the
  281  Agency for Workforce Innovation, shall be redeposited with the
  282  Secretary of the Treasury of the United States, to the credit of
  283  this state’s account in the federal Unemployment Compensation
  284  Trust Fund, as provided in subsection (2).
  285         Section 4. Effective upon becoming a law, and retroactive
  286  to February 1, 2009, and expiring January 2, 2010, section
  287  443.1117, Florida Statutes, is created to read:
  288         443.1117 Temporary extended benefits.—
  289         (1) APPLICABILITY OF EXTENDED BENEFITS STATUTE.—Except when
  290  the result is inconsistent with the other provisions of this
  291  section, the provisions of s. 443.1115(3), (4), (6), and (7)
  292  apply to all claims covered by this section.
  293         (2) DEFINITIONS.—For the purposes of this section the term:
  294         (a) “Regular benefits” and “extended benefits” have the
  295  same meaning as in s. 443.1115.
  296         (b) “Eligibility period” means the period consisting of the
  297  weeks in an individual’s benefit year or emergency benefit
  298  period which begin in an extended benefit period and, if the
  299  benefit year or emergency benefit period ends within that
  300  extended benefit period, any subsequent weeks beginning in that
  301  period.
  302         (c) “Emergency benefits” means Emergency Unemployment
  303  Compensation paid pursuant to Pub. L. No. 110-252, Pub. L. No.
  304  110-449, and Pub. L. No. 111-5.
  305         (d) “Extended benefit period” means a period that:
  306         1. Begins with the third week after a week for which there
  307  is a state “on” indicator; and
  308         2. Ends with any of the following weeks, whichever occurs
  309  later:
  310         a. The third week after the first week for which there is a
  311  state “off” indicator;
  312         b. The 13th consecutive week of that period.
  313  
  314  However, an extended benefit period may not begin by reason of a
  315  state “on” indicator before the 14th week after the end of a
  316  prior extended benefit period that was in effect for this state.
  317         (e) “Emergency benefit period” means the period during
  318  which an individual receives emergency benefits as defined in
  319  paragraph (c).
  320         (f) “Exhaustee” means an individual who, for any week of
  321  unemployment in her or his eligibility period:
  322         1. Has received, before that week, all of the regular
  323  benefits and emergency benefits, if any, available under this
  324  chapter or any other law, including dependents’ allowances and
  325  benefits payable to federal civilian employees and ex
  326  servicemembers under 5 U.S.C. ss. 8501-8525, in the current
  327  benefit year or emergency benefit period that includes that
  328  week. For the purposes of this subparagraph, an individual has
  329  received all of the regular benefits and emergency benefits, if
  330  any, available although, as a result of a pending appeal for
  331  wages paid for insured work which were not considered in the
  332  original monetary determination in the benefit year, she or he
  333  may subsequently be determined to be entitled to added regular
  334  benefits;
  335         2. Had a benefit year which expired before that week, and
  336  was paid no, or insufficient, wages for insured work on the
  337  basis of which she or he could establish a new benefit year that
  338  includes that week; and
  339         3.a. Has no right to unemployment benefits or allowances
  340  under the Railroad Unemployment Insurance Act or other federal
  341  laws as specified in regulations issued by the United States
  342  Secretary of Labor; and
  343         b. Has not received and is not seeking unemployment
  344  benefits under the unemployment compensation law of Canada; but
  345  if an individual is seeking those benefits and the appropriate
  346  agency finally determines that she or he is not entitled to
  347  benefits under that law, she or he is considered an exhaustee.
  348         (g) “State ‘on’ indicator” means, with respect to weeks of
  349  unemployment beginning on or after February 1, 2009, and ending
  350  on or before December 12, 2009, the occurrence of a week in
  351  which the average total unemployment rate, seasonally adjusted,
  352  as determined by the United States Secretary of Labor, for the
  353  period consisting of the most recent 3 months for which data for
  354  all states are published by the United States Department of
  355  Labor:
  356         1. Equals or exceeds 110 percent of the average of those
  357  rates for the corresponding 3 month period ending in each of the
  358  preceding 2 calendar years; and
  359         2. Equals or exceeds 6.5 percent.
  360         (h) “High unemployment period” means, with respect to weeks
  361  of unemployment beginning on or after February 1, 2009, and
  362  ending on or before December 12, 2009, any week in which the
  363  average total unemployment rate, seasonally adjusted, as
  364  determined by the United States Secretary of Labor, for the
  365  period consisting of the most recent 3 months for which data for
  366  all states are published by the United States Department of
  367  Labor:
  368         1. Equals or exceeds 110 percent of the average of those
  369  rates for the corresponding 3 month period ending in each of the
  370  preceding 2 calendar years; and
  371         2. Equals or exceeds 8 percent.
  372         (i) “State ‘off’ indicator” means the occurrence of a week
  373  in which there is no state “on” indicator or which does not
  374  constitute a high unemployment period.
  375         (3) TOTAL EXTENDED BENEFIT AMOUNT.—Except as provided in
  376  subsection (5):
  377         (a) For any week for which there is an “on” indicator
  378  pursuant to paragraph (3)(g), the total extended benefit amount
  379  payable to an eligible individual for her or his applicable
  380  benefit year is the lesser of:
  381         1. Fifty percent of the total regular benefits payable
  382  under this chapter in the applicable benefit year; or
  383         2. Thirteen times the weekly benefit amount payable under
  384  this chapter for a week of total unemployment in the applicable
  385  benefit year.
  386         (b) For any high unemployment period as defined in
  387  paragraph (3)(h), the total extended benefit amount payable to
  388  an eligible individual for her or his applicable benefit year is
  389  the lesser of:
  390         1. Eighty percent of the total regular benefits payable
  391  under this chapter in the applicable benefit year; or
  392         2. Twenty times the weekly benefit amount payable under
  393  this chapter for a week of total unemployment in the applicable
  394  benefit year.
  395         (4) EFFECT ON TRADE READJUSTMENT.—Notwithstanding any other
  396  provision of this chapter, if the benefit year of an individual
  397  ends within an extended benefit period, the number of weeks of
  398  extended benefits the individual is entitled to receive in that
  399  extended benefit period for weeks of unemployment beginning
  400  after the end of the benefit year, except as provided in this
  401  section, is reduced, but not to below zero, by the number of
  402  weeks for which the individual received, within that benefit
  403  year, trade readjustment allowances under the Trade Act of 1974,
  404  as amended.
  405         Section 5. The provisions of s. 443.1117, Florida Statutes,
  406  as created by this act, apply only to claims for weeks of
  407  unemployment, in which an exhaustee establishes entitlement to
  408  extended benefits pursuant to that section, established for the
  409  period between February 22, 2009, and January 2, 2010.
  410         Section 6. Paragraph (a) of subsection (1) of section
  411  443.101, Florida Statutes, is amended to read:
  412         443.101 Disqualification for benefits.—An individual shall
  413  be disqualified for benefits:
  414         (1)(a) For the week in which he or she has voluntarily left
  415  his or her work without good cause attributable to his or her
  416  employing unit or in which the individual has been discharged by
  417  his or her employing unit for misconduct connected with his or
  418  her work, based on a finding by the Agency for Workforce
  419  Innovation. As used in this paragraph, the term “work” means any
  420  work, whether full-time, part-time, or temporary.
  421         1. Disqualification for voluntarily quitting continues for
  422  the full period of unemployment next ensuing after he or she has
  423  left his or her full-time, part-time, or temporary work
  424  voluntarily without good cause and until the individual has
  425  earned income equal to or in excess of 17 times his or her
  426  weekly benefit amount. As used in this subsection, the term
  427  “good cause” includes only that cause attributable to the
  428  employing unit or which consists of illness or disability of the
  429  individual requiring separation from his or her work. Any other
  430  disqualification may not be imposed. An individual is not
  431  disqualified under this subsection for voluntarily leaving
  432  temporary work to return immediately when called to work by the
  433  permanent employing unit that temporarily terminated his or her
  434  work within the previous 6 calendar months. For benefit years
  435  beginning on or after July 1, 2004, an individual is not
  436  disqualified under this subsection for voluntarily leaving work
  437  to relocate as a result of his or her military-connected
  438  spouse’s permanent change of station orders, activation orders,
  439  or unit deployment orders.
  440         2. Disqualification for being discharged for misconduct
  441  connected with his or her work continues for the full period of
  442  unemployment next ensuing after having been discharged and until
  443  the individual has become reemployed and has earned income of at
  444  least 17 times his or her weekly benefit amount and for not more
  445  than 52 weeks that immediately follow that week, as determined
  446  by the Agency for Workforce Innovation in each case according to
  447  the circumstances in each case or the seriousness of the
  448  misconduct, under the agency’s rules adopted for determinations
  449  of disqualification for benefits for misconduct.
  450         3. When an individual has provided notification to the
  451  employing unit of his or her intent to voluntarily leave work
  452  and the employing unit discharges the individual for reasons
  453  other than misconduct prior to the date the voluntary quit was
  454  to take effect, the individual, if otherwise entitled, will
  455  receive benefits from the date of the employer’s discharge until
  456  the effective date of his or her voluntary quit.
  457         4. When an individual is notified by the employing unit of
  458  the employer’s intent to discharge the individual for reasons
  459  other than misconduct and the individual quits without good
  460  cause, as defined in this section, prior to the date the
  461  discharge was to take effect, the claimant is ineligible for
  462  benefits pursuant to s. 443.091(1)(c)1. for failing to be
  463  available for work for the week or weeks of unemployment
  464  occurring prior to the effective date of the discharge.
  465         Section 7. The Legislature finds that this act fulfills an
  466  important state interest.
  467         Section 8. Except as otherwise expressly provided in this
  468  act, this act shall take effect upon becoming a law.