CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
                                   .
                                   .
 1                                 .
                                   .
 2                                 .
                                   .
 3                                 .
                                   .
 4                                                                

 5

 6

 7

 8

 9

10                                                                

11  Senator Harris moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         On page 45, lines 24-31, through page 48, lines 1-19,

15  delete those lines

16

17  and insert:

18         Section 5.  Subsection (1), paragraph (g) of subsection

19  (3), paragraph (a) of subsection (4), paragraphs (a), (b), and

20  (d) of subsection (5), and paragraph (b) of subsection (6) of

21  section 443.131, Florida Statutes, are amended to read:

22         443.131  Contributions.--

23         (1)  WHEN PAYABLE.--Contributions shall accrue and

24  become payable by each employer for each calendar quarter in

25  which he or she is subject to this chapter, with respect to

26  wages paid during such calendar quarter for employment.  Such

27  contributions shall become due and be paid by each employer to

28  the division for the fund, in accordance with such rules as

29  the division may prescribe. However, nothing in this

30  subsection shall be construed to prohibit the division from

31  allowing, on a limited basis, at the request of the employer,

                                  1
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  certain employers of employees performing domestic services,

 2  as defined in s. 443.036(21)(19)(g) and by rule of the

 3  division, to pay contributions or report wages at intervals

 4  other than quarterly when such payment or reporting is to the

 5  advantage of the division and the employers, and when such

 6  nonquarterly payment and reporting is authorized under federal

 7  law.  This provision gives employers of employees performing

 8  domestic services the option to elect to report wages and pay

 9  taxes annually, with a due date of April 1 and a delinquency

10  date of April 30. In order to qualify for this election, the

11  employer must have only domestic employees, be in good

12  standing, apply to this program no later than December 30 of

13  the preceding calendar year, and agree to provide the division

14  with any special reports which might be requested, as required

15  by rule 38B-2.025(5), including copies of all federal

16  employment tax forms. Failure to furnish any information when

17  required may result in the employer's loss of the privilege to

18  elect participation in this program. Contributions shall not

19  be deducted, in whole or in part, from the wages of

20  individuals in such employer's employ.  In the payment of any

21  contributions, a fractional part of a cent shall be

22  disregarded unless it amounts to one-half cent or more, in

23  which case it shall be increased to 1 cent.

24         (3)  CONTRIBUTION RATES BASED ON BENEFIT EXPERIENCE.--

25         (g)1.  For the purposes of this subsection, two or more

26  employers who are parties to a transfer of business or the

27  subject of a merger, consolidation, or other form of

28  reorganization, effecting a change in legal identity or form,

29  shall be deemed to be a single employer and shall be

30  considered as one employer with a continuous employment record

31  if the division finds that the successor employer continues to

                                  2
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  carry on the employing enterprises of the predecessor employer

 2  or employers and that the successor employer has paid all

 3  contributions required of and due from the predecessor

 4  employer or employers and has assumed liability for all

 5  contributions that may become due from the predecessor

 6  employer or employers. As used in this paragraph, the term

 7  "contributions" means all indebtedness to the division,

 8  including, but not limited to, interest, penalty, collection

 9  fee, and service fee. A successor has 30 days from the date of

10  the official notification of liability by succession to accept

11  the transfer of the predecessor's or predecessors' employment

12  record or records. If the predecessor or predecessors have

13  unpaid contributions or outstanding quarterly reports, the

14  successor has 30 days from the date of the notice listing the

15  total amount due to pay the total amount with certified funds.

16  After the total indebtedness has been paid, the employment

17  record or records of the predecessor or predecessors will be

18  transferred to the successor. Employment records may be

19  transferred by the division. The tax rate of total successor

20  and predecessor upon the transfer of employment records shall

21  be determined by the division as prescribed by rule in order

22  to calculate any tax rate change resulting from the transfer

23  of employment records.

24         2.  Whether or not there is a transfer of employment

25  record as contemplated in this paragraph, the predecessor

26  shall in the event he or she again employs persons be treated

27  as an employer without previous employment record or, if his

28  or her coverage has been terminated as provided in s. 443.121,

29  as a new employing unit.

30         3.  The division may provide by rule for partial

31  transfer of experience rating when an employer has transferred

                                  3
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  at any time an identifiable and segregable portion of his or

 2  her payrolls and business to a successor employing unit. As a

 3  condition of such partial transfer of experience, the rules

 4  shall require an application by the successor, agreement by

 5  the predecessor, and such evidence as the division may

 6  prescribe of the experience and payrolls attributable to the

 7  transferred portion up to the date of transfer. The rules

 8  shall provide that the successor employing unit, if not

 9  already an employer, shall become an employer as of the date

10  of the transfer and that the experience of the transferred

11  portion of the predecessor's account shall be removed from the

12  experience-rating record of the predecessor, and for each

13  calendar year following the date of the transfer of the

14  employment record on the books of the division, the division

15  shall compute the rate of contribution payable by the

16  successor on the basis of his or her experience, if any,

17  combined with the experience of the portion of the record

18  transferred. The rules may also provide what rates shall be

19  payable by the predecessor and successor employers for the

20  period between the date of the transfer of the employment

21  record of the transferred unit on the books of the division

22  and the first day of the next calendar year.

23         4.  This paragraph shall not apply to the employee

24  leasing company and client contractual agreement as defined in

25  s. 443.036. The client shall, in the event of termination of

26  the contractual agreement or failure by the employee leasing

27  company to submit reports or pay contributions as required by

28  the division, be treated as a new employer without previous

29  employment record unless otherwise eligible for a rate

30  computation.

31         (4)  FINANCING BENEFITS PAID TO EMPLOYEES OF NONPROFIT

                                  4
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  ORGANIZATIONS.--Benefits paid to employees of nonprofit

 2  organizations shall be financed in accordance with the

 3  provisions of this subsection.  For the purpose of this

 4  subsection, a "nonprofit" organization is an organization or

 5  group of organizations described in s. 501(c)(3) of the United

 6  States Internal Revenue Code which is exempt from income tax

 7  under s. 501(a) of such code.

 8         (a)  Liability for contributions and election of

 9  reimbursement.--Any nonprofit organization which, pursuant to

10  s. 443.036(19)(17)(c) or s. 443.121(3)(a) is, or becomes,

11  subject to this chapter shall pay contributions under the

12  provisions of subsection (1), unless it elects, in accordance

13  with this paragraph, to pay to the division for the

14  Unemployment Compensation Trust Fund an amount equal to the

15  amount of regular benefits and of one-half of the extended

16  benefits paid, that is attributable to service in the employ

17  of such nonprofit organization, to individuals for weeks of

18  unemployment which begin during the effective period of such

19  election.

20         1.  Any nonprofit organization which becomes subject to

21  this chapter may elect to become liable for payments in lieu

22  of contributions for not less than the period beginning with

23  the date on which such subjectivity begins and ending at the

24  end of the next calendar year by filing a written notice of

25  its election with the division not later than 30 days

26  immediately following the date of the determination of such

27  subjectivity.

28         2.  Any nonprofit organization which makes an election

29  in accordance with subparagraph 1. will continue to be liable

30  for payments in lieu of contributions until it files with the

31  division a written notice terminating its election not later

                                  5
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  than 30 days prior to the beginning of the calendar year for

 2  which such termination shall first be effective.

 3         3.  Any nonprofit organization which has been paying

 4  contributions under this chapter may change to a reimbursable

 5  basis by filing with the division not later than 30 days prior

 6  to the beginning of any calendar year a written notice of

 7  election to become liable for payments in lieu of

 8  contributions.  Such election shall not be terminable by the

 9  organization for that and the next calendar year.

10         4.  The division, in accordance with such rules as the

11  division may prescribe, shall notify each nonprofit

12  organization of any determination of its status as an employer

13  and of the effective date of any election which it makes and

14  of any termination of such election.  Such determinations

15  shall be subject to reconsideration, appeal, and review in

16  accordance with the provisions of s. 443.141(2)(b).

17         (5)  FINANCING BENEFITS PAID TO EMPLOYEES OF THE STATE

18  AND POLITICAL SUBDIVISIONS OF THE STATE.--Benefits paid to

19  employees of this state or any instrumentality of this state,

20  or to employees of any political subdivision of this state or

21  any instrumentality thereof, based upon service defined in s.

22  443.036(21)(19)(b), shall be financed in accordance with this

23  subsection.

24         (a)1.  Unless an election is made as provided in

25  paragraph (c), the state or any political subdivision of the

26  state shall pay into the Unemployment Compensation Trust Fund

27  an amount equivalent to the amount of regular benefits,

28  short-time compensation benefits, and extended benefits paid

29  to individuals, based on wages paid by the state or the

30  political subdivision for service defined in s.

31  443.036(21)(19)(b).

                                  6
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1         2.  Should any state agency become more than 120 days

 2  delinquent on reimbursements due to the Unemployment

 3  Compensation Trust Fund, the division shall certify to the

 4  Comptroller the amount due and the Comptroller shall transfer

 5  the amount due to the Unemployment Compensation Trust Fund

 6  from the funds of such agency that may legally be used for

 7  such purpose.  In the event any political subdivision of the

 8  state or any instrumentality thereof becomes more than 120

 9  days delinquent on reimbursements due to the Unemployment

10  Compensation Trust Fund, then, upon request by the division

11  after a hearing, the Department of Revenue or the Department

12  of Banking and Finance, as the case may be, shall deduct the

13  amount owed by the political subdivision or instrumentality

14  from any funds to be distributed by it to the county, city,

15  special district, or consolidated form of government for

16  further distribution to the trust fund in accordance with this

17  chapter. Should any employer for whom the city or county tax

18  collector collects taxes fail to make the reimbursements to

19  the Unemployment Compensation Trust Fund required by this

20  chapter, the tax collector after a hearing, at the request of

21  the division and upon receipt of a certificate showing the

22  amount owed by the employer, shall deduct the amount so

23  certified from any taxes collected for the employer and remit

24  same to the Department of Labor and Employment Security for

25  further distribution to the trust fund in accordance with this

26  chapter. This subparagraph does not apply to those amounts due

27  for benefits paid prior to October 1, 1979.  This subparagraph

28  does not apply to amounts owed by a political subdivision for

29  benefits erroneously paid where the claimant is required to

30  repay to the division under s. 443.151(6)(a) or (b) any sum as

31  benefits received.

                                  7
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1         (b)  The provisions of paragraphs (4)(b), (d), and (e),

 2  relating to reimbursement payments, allocation of benefit

 3  costs, and group accounts with respect to nonprofit

 4  organizations, are applicable also, to the extent allowed by

 5  federal law, with respect to the duties of this state or any

 6  political subdivision of this state as an employer by reason

 7  of s. 443.036(19)(17)(b).

 8         (d)  Upon establishing a financing method as provided

 9  by this subsection, such financing method shall be applicable

10  for not less than 2 calendar years.  Nothing herein shall be

11  construed to prevent an employer subject to the provisions of

12  this subsection from electing to change its method of

13  financing or its method of reporting after completing 2

14  calendar years under another financing method, so long as such

15  new election is timely filed. The division may prescribe by

16  rule the procedures for changing methods of reporting.

17         (6)  PUBLIC EMPLOYERS UNEMPLOYMENT COMPENSATION BENEFIT

18  ACCOUNT.--

19         (b)  Governmental entities subject to the Florida

20  Unemployment Compensation Law under s. 443.036(21)(19)(b) who

21  exercise the option to elect the contributory system of

22  financing unemployment compensation benefits shall have their

23  accounts maintained and shall be subject to the provisions of

24  subsections (1), (2), and (3), except that:

25         1.  The term "taxable wages" means total gross wages.

26         2.  The initial contribution rate shall be 0.25

27  percent.

28         3.  Any election by an employer to be taxed under this

29  subsection shall be effective January 1 and shall be taxed at

30  the initial rate. Effective January 1 of the following year,

31  the rate shall be computed based on 2 calendar quarters of

                                  8
    10:14 AM   03/31/98                              s1708.cm24.ee




                                                  SENATE AMENDMENT

    Bill No. CS for SB 1708

    Amendment No.    





 1  chargeability and payroll; effective January 1 of the second

 2  year after such election, the rate shall be computed based on

 3  6 quarters of chargeability and payroll; and effective January

 4  1 of the third year after such election, the rate shall be

 5  computed based on 10 quarters of chargeability and payrolls.

 6  Each January 1 thereafter, the tax rates shall be computed

 7  based on 12 quarters of chargeability and payroll.

 8         4.  An employer electing to be taxed under the

 9  provisions of this subsection shall make such election not

10  later than 30 days prior to January 1 of the year for which

11  the election is to be effective.  Upon electing this financing

12  method, such method shall be applicable for not less than 2

13  years.

14         5.  Any election under this subsection may be

15  terminated by filing with the division, not later than 30 days

16  prior to January 1, a written notice of termination.

17

18

19  ================ T I T L E   A M E N D M E N T ===============

20  And the title is amended as follows:

21         On page 1, line 10, after the semicolon

22

23  insert:

24         correcting cross references;

25

26

27

28

29

30

31

                                  9
    10:14 AM   03/31/98                              s1708.cm24.ee