HB 7147

1	A bill to be entitled
2	An act relating to the Unemployment Compensation Trust
3	Fund; amending s. 443.1217, F.S.; revising the amount of
4	an employee's wages that are subject to an employer's
5	contribution to the fund for specified periods; amending
6	s. 443.131, F.S.; revising the rate and recoupment period
7	for computing the employer's contribution to the fund for
8	specified periods; providing the calculation for lowering
9	an employer's contribution to the fund beginning on a
10	specified date; providing for a suspension of lowering the
11	employer's contribution under certain circumstances;
12	providing for determination of "taxable payroll"; amending
13	s. 443.191, F.S.; providing for certain advances to be
14	credited to the fund upon request by the Governor or the
15	Governor's designee; providing that moneys may be
16	requisitioned from the state's account in the federal fund
17	for the repayment of such advances; providing an effective
18	date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Paragraph (a) of subsection (2) of section
23	443.1217, Florida Statutes, is amended to read:
24	443.1217  Wages.--
25	(2)  For the purpose of determining an employer's
26	contributions, the following wages are exempt from this chapter:
27	(a)  That part of remuneration paid to an individual by an
28	employer for employment during a calendar year in excess of the
29	first $8,500 $7,000 of remuneration paid to the individual by
30	the employer or his or her predecessor during that calendar
31	year, unless that part of the remuneration is subject to a tax,
32	under a federal law imposing the tax, against which credit may
33	be taken for contributions required to be paid into a state
34	unemployment fund. As used in this section only, the term
35	"employment" includes services constituting employment under any
36	employment security law of another state or of the Federal
37	Government. Beginning January 1, 2015, the part of remuneration
38	paid to an individual by an employer for employment during a
39	calendar year in excess of the first $7,000 is exempt from this
40	chapter.
41	Section 2.  Paragraph (e) of subsection (3) of section
42	443.131, Florida Statutes, is amended to read:
43	443.131  Contributions.--
44	(3)  VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
45	EXPERIENCE.--
46	(e)  Assignment of variations from the standard rate.--
47	1.  The tax collection service provider shall assign a
48	variation from the standard rate of contributions for each
49	calendar year to each eligible employer. In determining the
50	contribution rate, varying from the standard rate to be assigned
51	each employer, adjustment factors computed under sub-
52	subparagraphs a.-d. a.-c. shall be added to the benefit ratio.
53	This addition shall be accomplished in two steps by adding a
54	variable adjustment factor and a final adjustment factor. The
55	sum of these adjustment factors computed under sub-subparagraphs
56	a.-d. a.-c. shall first be algebraically summed. The sum of
57	these adjustment factors shall next be divided by a gross
58	benefit ratio determined as follows: Total benefit payments for
59	the 3-year period described in subparagraph (b)2. shall be
60	charged to employers eligible for a variation from the standard
61	rate, minus excess payments for the same period, divided by
62	taxable payroll entering into the computation of individual
63	benefit ratios for the calendar year for which the contribution
64	rate is being computed. The ratio of the sum of the adjustment
65	factors computed under sub-subparagraphs a.-d. a.-c. to the
66	gross benefit ratio shall be multiplied by each individual
67	benefit ratio that is less than the maximum contribution rate to
68	obtain variable adjustment factors; except that in any instance
69	in which the sum of an employer's individual benefit ratio and
70	variable adjustment factor exceeds the maximum contribution
71	rate, the variable adjustment factor shall be reduced in order
72	that the sum equals the maximum contribution rate. The variable
73	adjustment factor for each of these employers is multiplied by
74	his or her taxable payroll entering into the computation of his
75	or her benefit ratio. The sum of these products shall be divided
76	by the taxable payroll of the employers who entered into the
77	computation of their benefit ratios. The resulting ratio shall
78	be subtracted from the sum of the adjustment factors computed
79	under sub-subparagraphs a.-d. a.-c. to obtain the final
80	adjustment factor. The variable adjustment factors and the final
81	adjustment factor shall be computed to five decimal places and
82	rounded to the fourth decimal place. This final adjustment
83	factor shall be added to the variable adjustment factor and
84	benefit ratio of each employer to obtain each employer's
85	contribution rate. An employer's contribution rate may not,
86	however, be rounded to less than 0.1 percent.
87	a.  An adjustment factor for noncharge benefits shall be
88	computed to the fifth decimal place and rounded to the fourth
89	decimal place by dividing the amount of noncharge benefits
90	during the 3-year period described in subparagraph (b)2. by the
91	taxable payroll of employers eligible for a variation from the
92	standard rate who have a benefit ratio for the current year
93	which is less than the maximum contribution rate. For purposes
94	of computing this adjustment factor, the taxable payroll of
95	these employers is the taxable payrolls for the 3 years ending
96	June 30 of the current calendar year as reported to the tax
97	collection service provider by September 30 of the same calendar
98	year. As used in this sub-subparagraph, the term "noncharge
99	benefits" means benefits paid to an individual from the
100	Unemployment Compensation Trust Fund, but which were not charged
101	to the employment record of any employer.
102	b.  An adjustment factor for excess payments shall be
103	computed to the fifth decimal place, and rounded to the fourth
104	decimal place by dividing the total excess payments during the
105	3-year period described in subparagraph (b)2. by the taxable
106	payroll of employers eligible for a variation from the standard
107	rate who have a benefit ratio for the current year which is less
108	than the maximum contribution rate. For purposes of computing
109	this adjustment factor, the taxable payroll of these employers
110	is the same figure used to compute the adjustment factor for
111	noncharge benefits under sub-subparagraph a. As used in this
112	sub-subparagraph, the term "excess payments" means the amount of
113	benefits charged to the employment record of an employer during
114	the 3-year period described in subparagraph (b)2., less the
115	product of the maximum contribution rate and the employer's
116	taxable payroll for the 3 years ending June 30 of the current
117	calendar year as reported to the tax collection service provider
118	by September 30 of the same calendar year. As used in this sub-
119	subparagraph, the term "total excess payments" means the sum of
120	the individual employer excess payments for those employers that
121	were eligible to be considered for assignment of a contribution
122	rate different from the standard rate.
123	c.  If the balance of the Unemployment Compensation Trust
124	Fund on June 30 of the calendar year immediately preceding the
125	calendar year for which the contribution rate is being computed
126	is less than 4 3.7 percent of the taxable payrolls for the year
127	ending June 30 as reported to the tax collection service
128	provider by September 30 of that calendar year, a positive
129	adjustment factor shall be computed. The positive adjustment
130	factor shall be computed annually to the fifth decimal place and
131	rounded to the fourth decimal place by dividing the sum of the
132	total taxable payrolls for the year ending June 30 of the
133	current calendar year as reported to the tax collection service
134	provider by September 30 of that calendar year into a sum equal
135	to one-third one-fourth of the difference between the balance of
136	the fund as of June 30 of that calendar year and the sum of 5
137	4.7 percent of the total taxable payrolls for that year. The
138	positive adjustment factor remains in effect for subsequent
139	years until the balance of the Unemployment Compensation Trust
140	Fund as of June 30 of the year immediately preceding the
141	effective date of the contribution rate equals or exceeds 5 3.7
142	percent of the taxable payrolls for the year ending June 30 of
143	the current calendar year as reported to the tax collection
144	service provider by September 30 of that calendar year.
145	Beginning January 1, 2015, and for each year thereafter, the
146	positive adjustment factor authorized by this sub-subparagraph
147	shall be computed by dividing the sum of the total taxable
148	payrolls for the year ending June 30 of the current calendar
149	year as reported to the tax collection service provider by
150	September 30 of that calendar year into a sum equal to one-
151	fourth of the difference between the balance of the fund as of
152	June 30 of that calendar year and the sum of 5 percent of the
153	total taxable payrolls for that year. The positive adjustment
154	factor remains in effect for subsequent years until the balance
155	of the Unemployment Compensation Trust Fund as of June 30 of the
156	year immediately preceding the effective date of the
157	contribution rate equals or exceeds 4 percent of the taxable
158	payrolls for the year ending June 30 of the current calendar
159	year as reported to the tax collection service provider by
160	September 30 of that calendar year.
161	d.  Beginning January 1, 2015, and each year thereafter, if
162	the balance of the Unemployment Compensation Trust Fund as of
163	June 30 of the year immediately preceding the calendar year for
164	which the contribution rate is being computed exceeds 5 4.7
165	percent of the taxable payrolls for the year ending June 30 of
166	the current calendar year as reported to the tax collection
167	service provider by September 30 of that calendar year, a
168	negative adjustment factor shall be computed. Beginning January
169	1, 2015, and each year thereafter, the negative adjustment
170	factor shall be computed annually to the fifth decimal place and
171	rounded to the fourth decimal place by dividing the sum of the
172	total taxable payrolls for the year ending June 30 of the
173	current calendar year as reported to the tax collection service
174	provider by September 30 of the calendar year into a sum equal
175	to one-fourth of the difference between the balance of the fund
176	as of June 30 of the current calendar year and 5 4.7 percent of
177	the total taxable payrolls of that year. The negative adjustment
178	factor remains in effect for subsequent years until the balance
179	of the Unemployment Compensation Trust Fund as of June 30 of the
180	year immediately preceding the effective date of the
181	contribution rate is less than 5 4.7 percent, but more than 4
182	3.7 percent of the taxable payrolls for the year ending June 30
183	of the current calendar year as reported to the tax collection
184	service provider by September 30 of that calendar year. The
185	negative adjustment factor authorized by this sub-subparagraph
186	is suspended in any calendar year in which repayment of the
187	principal amount of an advance received from the federal
188	Unemployment Compensation Trust Fund under 42 U.S.C. s. 1321 is
189	due to the Federal Government.
190	e.d.  The maximum contribution rate that may be assigned to
191	an employer is 5.4 percent, except employers participating in an
192	approved short-time compensation plan may be assigned a maximum
193	contribution rate that is 1 percent greater than the maximum
194	contribution rate for other employers in any calendar year in
195	which short-time compensation benefits are charged to the
196	employer's employment record.
197	f.  For purposes of this subparagraph, "taxable payroll"
198	shall be determined by excluding any part of the remuneration
199	paid to an individual by an employer for employment during a
200	calendar year in excess of the first $7,000.
201	2.  If the transfer of an employer's employment record to
202	an employing unit under paragraph (f) which, before the
203	transfer, was an employer, the tax collection service provider
204	shall recompute a benefit ratio for the successor employer based
205	on the combined employment records and reassign an appropriate
206	contribution rate to the successor employer effective on the
207	first day of the calendar quarter immediately after the
208	effective date of the transfer.
209	Section 3.  Subsections (1) and (3) of section 443.191,
210	Florida Statutes, are amended to read:
211	443.191  Unemployment Compensation Trust Fund;
212	establishment and control.--
213	(1)  There is established, as a separate trust fund apart
214	from all other public funds of this state, an Unemployment
215	Compensation Trust Fund, which shall be administered by the
216	Agency for Workforce Innovation exclusively for the purposes of
217	this chapter. The fund shall consist of:
218	(a)  All contributions and reimbursements collected under
219	this chapter;
220	(b)  Interest earned on any moneys in the fund;
221	(c)  Any property or securities acquired through the use of
222	moneys belonging to the fund;
223	(d)  All earnings of these properties or securities; and
224	(e)  All money credited to this state's account in the
225	federal Unemployment Compensation Trust Fund under 42 U.S.C. s.
226	1103; and
227	(f)  Advances on the amount in the federal Unemployment
228	Compensation Trust Fund credited to the state under 42 U.S.C. s.
229	1321, as requested by the Governor or the Governor's designee.
230
231	Except as otherwise provided in s. 443.1313(4), all moneys in
232	the fund shall be mingled and undivided.
233	(3)  Moneys may only be requisitioned from the state's
234	account in the federal Unemployment Compensation Trust Fund
235	solely for the payment of benefits and extended benefits and for
236	payment in accordance with rules prescribed by the Agency for
237	Workforce Innovation, or for the repayment of advances made
238	under 42 U.S.C. s. 1321, as authorized by the Governor or the
239	Governor's designee, except that money credited to this state's
240	account under 42 U.S.C. s. 1103 may only be used exclusively as
241	provided in subsection (5). The Agency for Workforce Innovation,
242	through the Chief Financial Officer, shall requisition from the
243	federal Unemployment Compensation Trust Fund amounts, not
244	exceeding the amounts credited to this state's account in the
245	fund, as necessary for the payment of benefits and extended
246	benefits for a reasonable future period. Upon receipt of these
247	amounts, the Chief Financial Officer shall deposit the moneys in
248	the benefit account in the State Treasury and warrants for the
249	payment of benefits and extended benefits shall be drawn upon
250	the order of the Agency for Workforce Innovation against the
251	account. All warrants for benefits and extended benefits are
252	payable directly to the ultimate beneficiary. Expenditures of
253	these moneys in the benefit account and refunds from the
254	clearing account are not subject to any law requiring specific
255	appropriations or other formal release by state officers of
256	money in their custody. All warrants issued for the payment of
257	benefits and refunds must bear the signature of the Chief
258	Financial Officer. Any balance of moneys requisitioned from this
259	state's account in the federal Unemployment Compensation Trust
260	Fund which remains unclaimed or unpaid in the benefit account
261	after the period for which the moneys were requisitioned shall
262	be deducted from estimates for, and may be used for the payment
263	of, benefits and extended benefits during succeeding periods,
264	or, in the discretion of the Agency for Workforce Innovation,
265	shall be redeposited with the Secretary of the Treasury of the
266	United States, to the credit of this state's account in the
267	federal Unemployment Compensation Trust Fund, as provided in
268	subsection (2).
269	Section 4.  This act shall take effect upon becoming a law.

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