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A bill to be entitled

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An act relating to workforce development; creating s.

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445.06, F.S.; creating the Florida Business and Workforce

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Competitiveness Program within the Agency for Workforce

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Innovation; providing the purpose of the program;

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requiring Workforce Florida, Inc., to allocate funds from

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the Business and Workforce Competitiveness Trust Fund to

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regional workforce boards; providing that only certain

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employers are eligible for an award of a grant under the

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program; providing the time and method in which the

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employment training investment assessment is due;

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providing conditions when the employment training

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investment assessment is not imposed; requiring Workforce

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Florida, Inc., to establish guidelines governing the

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program and criteria to evaluate applications for funding;

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amending s. 443.131, F.S.; providing for an adjustment in

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the contribution rates for unemployment compensation of

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certain employers; providing an exception from the

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restriction against rounding an employer's contribution

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rate to less than 0.1 percent; providing a contingent

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effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 445.06, Florida Statutes, is created to

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read:

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     445.06 Florida Business and Workforce Competitiveness

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Program.--

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     (1) The Business and Workforce Competitiveness Program is

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created within the Agency for Workforce Innovation and funds

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allocated to the program shall be used by regional workforce

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boards as defined in s. 445.007 to award competitive grants to

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employers for the purpose of fostering economic development by

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training incumbent, underemployed, and employed workers in

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occupations that are in demand. The purpose of the program is to

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provide the training needed to effectively address the changing

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skill requirements resulting from new technology, retooling, new

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product lines, and new organizational structuring. Each regional

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workforce board shall administer the grants, including

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determining award recipients within funding available to it for

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that purpose.

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     (2) Workforce Florida, Inc., shall allocate to each

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regional workforce board its share of funds available under the

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Florida Business and Workforce Competitiveness Trust Fund in

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accordance with procedures established for this purpose.

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     (3) The trust fund shall consist of a quarterly employment

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and training investment assessment imposed on or after January 1,

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2009, on each employer paying contributions under s. 443.131 at a

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rate below the maximum contribution rate of 5.4 percent as

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provided in s. 443.131(3)(e) as a separate assessment of one-

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hundredth of 1 percent of wages paid by the employer as defined

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in s. 443.1217.

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     (4) Only employers who are subject to the contribution

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method of financing unemployment compensation benefits under s.

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443.131 and who are subject to the employment training investment

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assessment are eligible for a grant under this program.

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     (5) The employment training investment assessment is due at

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the same time, collected in the same manner, and subject to the

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same penalties and interest as other contributions assessed under

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s. 443.131.

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     (6) The employment training investment assessment may not

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be imposed for any year in which the balance in the unemployment

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compensation trust fund requires the computation of a positive

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adjustment factor as provided in s. 443.131(2)(e).

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     (7) Workforce Florida, Inc., shall establish guidelines

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governing the administration of the Florida Business and

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Workforce Competitiveness Program and shall establish criteria to

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be used by regional workforce boards in evaluating applications

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for funding.

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     Section 2.  Paragraph (c) is added to subsection (2) of

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section 443.131, Florida Statutes, and paragraph (e) of

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subsection (3) of that section is amended, to read:

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     443.131  Contributions.--

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     (2)  CONTRIBUTION RATES.--Each employer must pay

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contributions equal to the following percentages of wages paid by

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him or her for employment:

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     (c) Adjustment.--On and after January 1, 2009, the

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contribution rate of each employer having an initial or variable

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rate below the maximum contribution rate of 5.4 percent provided

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in paragraph (3)(e) shall be adjusted to a rate computed by

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subtracting one-hundredth of one percent from the rate otherwise

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computed under this section. However, the adjustment provided in

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this paragraph is not effective for any year in which the balance

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in the unemployment compensation trust fund requires the

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computation of a positive adjustment factor as provided in s.

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443.131(2)(e).

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     (3)  VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT

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EXPERIENCE.--

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     (e)  Assignment of variations from the standard rate.--

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     1.  The tax collection service provider shall assign a

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variation from the standard rate of contributions for each

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calendar year to each eligible employer. In determining the

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contribution rate, varying from the standard rate to be assigned

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each employer, adjustment factors computed under sub-

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subparagraphs a.-c. shall be added to the benefit ratio. This

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addition shall be accomplished in two steps by adding a variable

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adjustment factor and a final adjustment factor. The sum of these

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adjustment factors computed under sub-subparagraphs a.-c. shall

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first be algebraically summed. The sum of these adjustment

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factors shall next be divided by a gross benefit ratio determined

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as follows: Total benefit payments for the 3-year period

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described in subparagraph (b)2. shall be charged to employers

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eligible for a variation from the standard rate, minus excess

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payments for the same period, divided by taxable payroll entering

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into the computation of individual benefit ratios for the

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calendar year for which the contribution rate is being computed.

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The ratio of the sum of the adjustment factors computed under

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sub-subparagraphs a.-c. to the gross benefit ratio shall be

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multiplied by each individual benefit ratio that is less than the

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maximum contribution rate to obtain variable adjustment factors;

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except that in any instance in which the sum of an employer's

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individual benefit ratio and variable adjustment factor exceeds

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the maximum contribution rate, the variable adjustment factor

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shall be reduced in order that the sum equals the maximum

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contribution rate. The variable adjustment factor for each of

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these employers is multiplied by his or her taxable payroll

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entering into the computation of his or her benefit ratio. The

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sum of these products shall be divided by the taxable payroll of

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the employers who entered into the computation of their benefit

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ratios. The resulting ratio shall be subtracted from the sum of

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the adjustment factors computed under sub-subparagraphs a.-c. to

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obtain the final adjustment factor. The variable adjustment

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factors and the final adjustment factor shall be computed to five

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decimal places and rounded to the fourth decimal place. This

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final adjustment factor shall be added to the variable adjustment

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factor and benefit ratio of each employer to obtain each

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employer's contribution rate. With the exception of the

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adjustment provided in paragraph (2)(c), an employer's

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contribution rate may not, however, be rounded to less than 0.1

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percent.

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     a.  An adjustment factor for noncharge benefits shall be

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computed to the fifth decimal place and rounded to the fourth

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decimal place by dividing the amount of noncharge benefits during

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the 3-year period described in subparagraph (b)2. by the taxable

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payroll of employers eligible for a variation from the standard

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rate who have a benefit ratio for the current year which is less

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than the maximum contribution rate. For purposes of computing

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this adjustment factor, the taxable payroll of these employers is

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the taxable payrolls for the 3 years ending June 30 of the

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current calendar year as reported to the tax collection service

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provider by September 30 of the same calendar year. As used in

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this sub-subparagraph, the term "noncharge benefits" means

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benefits paid to an individual from the Unemployment Compensation

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Trust Fund, but which were not charged to the employment record

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of any employer.

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     b.  An adjustment factor for excess payments shall be

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computed to the fifth decimal place, and rounded to the fourth

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decimal place by dividing the total excess payments during the 3-

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year period described in subparagraph (b)2. by the taxable

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payroll of employers eligible for a variation from the standard

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rate who have a benefit ratio for the current year which is less

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than the maximum contribution rate. For purposes of computing

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this adjustment factor, the taxable payroll of these employers is

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the same figure used to compute the adjustment factor for

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noncharge benefits under sub-subparagraph a. As used in this sub-

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subparagraph, the term "excess payments" means the amount of

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benefits charged to the employment record of an employer during

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the 3-year period described in subparagraph (b)2., less the

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product of the maximum contribution rate and the employer's

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taxable payroll for the 3 years ending June 30 of the current

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calendar year as reported to the tax collection service provider

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by September 30 of the same calendar year. As used in this sub-

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subparagraph, the term "total excess payments" means the sum of

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the individual employer excess payments for those employers that

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were eligible to be considered for assignment of a contribution

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rate different from the standard rate.

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     c.  If the balance of the Unemployment Compensation Trust

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Fund on June 30 of the calendar year immediately preceding the

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calendar year for which the contribution rate is being computed

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is less than 3.7 percent of the taxable payrolls for the year

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ending June 30 as reported to the tax collection service provider

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by September 30 of that calendar year, a positive adjustment

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factor shall be computed. The positive adjustment factor shall be

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computed annually to the fifth decimal place and rounded to the

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fourth decimal place by dividing the sum of the total taxable

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payrolls for the year ending June 30 of the current calendar year

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as reported to the tax collection service provider by September

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30 of that calendar year into a sum equal to one-fourth of the

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difference between the balance of the fund as of June 30 of that

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calendar year and the sum of 4.7 percent of the total taxable

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payrolls for that year. The positive adjustment factor remains in

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effect for subsequent years until the balance of the Unemployment

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Compensation Trust Fund as of June 30 of the year immediately

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preceding the effective date of the contribution rate equals or

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exceeds 3.7 percent of the taxable payrolls for the year ending

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June 30 of the current calendar year as reported to the tax

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collection service provider by September 30 of that calendar

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year. If the balance of the Unemployment Compensation Trust Fund

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as of June 30 of the year immediately preceding the calendar year

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for which the contribution rate is being computed exceeds 4.7

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percent of the taxable payrolls for the year ending June 30 of

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the current calendar year as reported to the tax collection

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service provider by September 30 of that calendar year, a

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negative adjustment factor shall be computed. The negative

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adjustment factor shall be computed annually to the fifth decimal

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place and rounded to the fourth decimal place by dividing the sum

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of the total taxable payrolls for the year ending June 30 of the

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current calendar year as reported to the tax collection service

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provider by September 30 of the calendar year into a sum equal to

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one-fourth of the difference between the balance of the fund as

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of June 30 of the current calendar year and 4.7 percent of the

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total taxable payrolls of that year. The negative adjustment

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factor remains in effect for subsequent years until the balance

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of the Unemployment Compensation Trust Fund as of June 30 of the

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year immediately preceding the effective date of the contribution

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rate is less than 4.7 percent, but more than 3.7 percent of the

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taxable payrolls for the year ending June 30 of the current

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calendar year as reported to the tax collection service provider

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by September 30 of that calendar year.

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     d.  The maximum contribution rate that may be assigned to an

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employer is 5.4 percent, except employers participating in an

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approved short-time compensation plan may be assigned a maximum

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contribution rate that is 1 percent greater than the maximum

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contribution rate for other employers in any calendar year in

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which short-time compensation benefits are charged to the

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employer's employment record.

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     2.  If the transfer of an employer's employment record to an

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employing unit under paragraph (f) which, before the transfer,

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was an employer, the tax collection service provider shall

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recompute a benefit ratio for the successor employer based on the

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combined employment records and reassign an appropriate

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contribution rate to the successor employer effective on the

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first day of the calendar quarter immediately after the effective

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date of the transfer.

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     Section 3.  This act shall take effect upon becoming a law,

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if SB ____, or similar legislation is adopted in the same

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legislative session or an extension thereof and becomes law.