CS/HB 7033

1
A bill to be entitled
2An act relating to unemployment compensation; reviving,
3readopting, and amending s. 443.1117, F.S.; providing for
4retroactive application; establishing temporary state
5extended benefits for weeks of unemployment; revising
6definitions; providing for state extended benefits for
7certain weeks and for periods of high unemployment;
8providing applicability; amending s. 443.1217, F.S.;
9reducing the amount of exempt wages beginning January 1,
102010; increasing the amount of exempt wages beginning
11January 1, 2012; suspending an exempt wages adjustment
12when repayment of a federal advance is owed; amending s.
13443.131, F.S.; providing that a positive adjustment factor
14begins January 1, 2012; providing criteria for the
15determination of taxable payroll beginning January 1,
162012; providing rate calculation direction to the tax
17collection service provider for the rate effective January
181, 2012; requiring an employer assessment when federal
19advance interest is due; requiring the Revenue Estimating
20Conference to calculate interest based on certain factors
21at a date certain; requiring an assessment by a date
22certain; providing a formula for calculation of the
23employer interest assessment rate and payment; providing
24for a separate collection of such assessment by a tax
25collection service provider; naming an account to hold
26interest collected until payment is directed; providing
27for credit of excess interest funds collected; providing
28for a suspension or termination of assessment under
29certain circumstances; providing credit for interest funds
30collected prior to suspension or termination; providing a
31limitation; providing for the elimination of provisions
32that interfere with federal interest relief or federal tax
33credit; amending s. 443.141; F.S.; providing retroactive
34effect; providing a schedule for contributing employers to
35make payments for 2010 and 2011 contributions due for
36wages; requiring a contributing employer to pay a fee of
37up to $5 to participate in the new schedule; providing for
38penalties, interest, and fees on delinquent contributions;
39providing appropriations for purposes of implementation;
40providing that the act fulfills an important state
41interest; providing an effective date.
42
43Be It Enacted by the Legislature of the State of Florida:
44
45     Section 1.  Notwithstanding the expiration date contained
46in section 4 of chapter 2009-99, Laws of Florida, effective upon
47this act becoming a law, retroactive to January 2, 2010, and
48expiring February 27, 2010, section 443.1117, Florida Statutes,
49is revived, readopted, and amended to read:
50     443.1117  Temporary extended benefits.-
51     (1)  APPLICABILITY OF EXTENDED BENEFITS STATUTE.-Except
52when the result is inconsistent with the other provisions of
53this section, the provisions of s. 443.1115(3), (4), (6), and
54(7) apply to all claims covered by this section.
55     (2)  DEFINITIONS.-For the purposes of this section, the
56term:
57     (a)  "Regular benefits" and "extended benefits" have the
58same meaning as in s. 443.1115.
59     (b)  "Eligibility period" means the period consisting of
60the weeks in an individual's benefit year or emergency benefit
61period which begin in an extended benefit period and, if the
62benefit year or emergency benefit period ends within that
63extended benefit period, any subsequent weeks beginning in that
64period.
65     (c)  "Emergency benefits" means Emergency Unemployment
66Compensation paid pursuant to Pub. L. No. 110-252, Pub. L. No.
67110-449, and Pub. L. No. 111-5, Pub. L. No. 111-92, and Pub. L.
68No. 111-118.
69     (d)  "Extended benefit period" means a period that:
70     1.  Begins with the third week after a week for which there
71is a state "on" indicator; and
72     2.  Ends with any of the following weeks, whichever occurs
73later:
74     a.  The third week after the first week for which there is
75a state "off" indicator;
76     b.  The 13th consecutive week of that period.
77
78However, an extended benefit period may not begin by reason of a
79state "on" indicator before the 14th week after the end of a
80prior extended benefit period that was in effect for this state.
81     (e)  "Emergency benefit period" means the period during
82which an individual receives emergency benefits as defined in
83paragraph (c).
84     (f)  "Exhaustee" means an individual who, for any week of
85unemployment in her or his eligibility period:
86     1.  Has received, before that week, all of the regular
87benefits and emergency benefits, if any, available under this
88chapter or any other law, including dependents' allowances and
89benefits payable to federal civilian employees and ex-
90servicemembers under 5 U.S.C. ss. 8501-8525, in the current
91benefit year or emergency benefit period that includes that
92week. For the purposes of this subparagraph, an individual has
93received all of the regular benefits and emergency benefits, if
94any, available although, as a result of a pending appeal for
95wages paid for insured work which were not considered in the
96original monetary determination in the benefit year, she or he
97may subsequently be determined to be entitled to added regular
98benefits;
99     2.  Had a benefit year which expired before that week, and
100was paid no, or insufficient, wages for insured work on the
101basis of which she or he could establish a new benefit year that
102includes that week; and
103     3.a.  Has no right to unemployment benefits or allowances
104under the Railroad Unemployment Insurance Act or other federal
105laws as specified in regulations issued by the United States
106Secretary of Labor; and
107     b.  Has not received and is not seeking unemployment
108benefits under the unemployment compensation law of Canada; but
109if an individual is seeking those benefits and the appropriate
110agency finally determines that she or he is not entitled to
111benefits under that law, she or he is considered an exhaustee.
112     (g)  "State 'on' indicator" means, with respect to weeks of
113unemployment beginning on or after February 1, 2009, and ending
114on or before January 30, 2010 December 12, 2009, the occurrence
115of a week in which the average total unemployment rate,
116seasonally adjusted, as determined by the United States
117Secretary of Labor, for the period consisting of the most recent
1183 months for which data for all states are published by the
119United States Department of Labor:
120     1.  Equals or exceeds 110 percent of the average of those
121rates for the corresponding 3-month period ending in each of the
122preceding 2 calendar years; and
123     2.  Equals or exceeds 6.5 percent.
124     (h)  "High unemployment period" means, with respect to
125weeks of unemployment beginning on or after February 1, 2009,
126and ending on or before January 30, 2010 December 12, 2009, any
127week in which the average total unemployment rate, seasonally
128adjusted, as determined by the United States Secretary of Labor,
129for the period consisting of the most recent 3 months for which
130data for all states are published by the United States
131Department of Labor:
132     1.  Equals or exceeds 110 percent of the average of those
133rates for the corresponding 3-month period ending in each of the
134preceding 2 calendar years; and
135     2.  Equals or exceeds 8 percent.
136     (i)  "State 'off' indicator" means the occurrence of a week
137in which there is no state "on" indicator or which does not
138constitute a high unemployment period.
139     (3)  TOTAL EXTENDED BENEFIT AMOUNT.-Except as provided in
140subsection (4) (5):
141     (a)  For any week for which there is an "on" indicator
142pursuant to paragraph (2)(g), the total extended benefit amount
143payable to an eligible individual for her or his applicable
144benefit year is the lesser of:
145     1.  Fifty percent of the total regular benefits payable
146under this chapter in the applicable benefit year; or
147     2.  Thirteen times the weekly benefit amount payable under
148this chapter for a week of total unemployment in the applicable
149benefit year.
150     (b)  For any high unemployment period as defined in
151paragraph (2)(h), the total extended benefit amount payable to
152an eligible individual for her or his applicable benefit year is
153the lesser of:
154     1.  Eighty percent of the total regular benefits payable
155under this chapter in the applicable benefit year; or
156     2.  Twenty times the weekly benefit amount payable under
157this chapter for a week of total unemployment in the applicable
158benefit year.
159     (4)  EFFECT ON TRADE READJUSTMENT.-Notwithstanding any
160other provision of this chapter, if the benefit year of an
161individual ends within an extended benefit period, the number of
162weeks of extended benefits the individual is entitled to receive
163in that extended benefit period for weeks of unemployment
164beginning after the end of the benefit year, except as provided
165in this section, is reduced, but not to below zero, by the
166number of weeks for which the individual received, within that
167benefit year, trade readjustment allowances under the Trade Act
168of 1974, as amended.
169     Section 2.  The provisions of s. 443.1117, Florida
170Statutes, as revived, readopted, and amended by section 1 of
171this act, apply only to claims for weeks of unemployment in
172which an exhaustee establishes entitlement to extended benefits
173pursuant to that section which are established for the period
174between February 22, 2009, and February 27, 2010.
175     Section 3.  Subsection (1) and paragraph (a) of subsection
176(2) of section 443.1217, Florida Statutes, are amended to read:
177     443.1217  Wages.-
178     (1)  The wages subject to this chapter include all
179remuneration for employment, including commissions, bonuses,
180back pay awards, and the cash value of all remuneration paid in
181any medium other than cash. The reasonable cash value of
182remuneration in any medium other than cash must be estimated and
183determined in accordance with rules adopted by the Agency for
184Workforce Innovation or the state agency providing tax
185collection services. The wages subject to this chapter include
186tips or gratuities received while performing services that
187constitute employment and are included in a written statement
188furnished to the employer under s. 6053(a) of the Internal
189Revenue Code of 1954. As used in this section only, the term
190"employment" includes services constituting employment under any
191employment security law of another state or of the Federal
192Government.
193     (2)  For the purpose of determining an employer's
194contributions, the following wages are exempt from this chapter:
195     (a)1.  Beginning January 1, 2010, that part of remuneration
196paid to an individual by an employer for employment during a
197calendar year in excess of the first $7,000 of remuneration paid
198to the individual by an employer or his or her predecessor
199during that calendar year, unless that part of the remuneration
200is subject to a tax, under a federal law imposing the tax,
201against which credit may be taken for contributions required to
202be paid into a state unemployment fund.
203     2.  Beginning January 1, 2012, that part of remuneration
204paid to an individual by an employer for employment during a
205calendar year in excess of the first $8,500 of remuneration paid
206to the individual by the employer or his or her predecessor
207during that calendar year, unless that part of the remuneration
208is subject to a tax, under a federal law imposing the tax,
209against which credit may be taken for contributions required to
210be paid into a state unemployment fund. As used in this section
211only, the term "employment" includes services constituting
212employment under any employment security law of another state or
213of the Federal Government.
214     3.  Beginning January 1, 2015, the part of remuneration
215paid to an individual by an employer for employment during a
216calendar year in excess of the first $7,000 of remuneration paid
217to the individual by an employer or his or her predecessor
218during that calendar year, unless that part of the remuneration
219is subject to a tax, under a federal law imposing the tax,
220against which credit may be taken for contributions required to
221be paid into a state unemployment fund. The wage base exemption
222adjustment authorized by this subparagraph shall be suspended in
223any calendar year in which repayment of the principal amount of
224an advance received from the Unemployment Compensation Trust
225Fund under 42 U.S.C. s. 1321 is due to the Federal Government is
226exempt from this chapter.
227     Section 4.  Paragraph (e) of subsection (3) of section
228443.131, Florida Statutes, is amended, and subsections (5) and
229(6) are added to that section, to read:
230     443.131  Contributions.-
231     (3)  VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
232EXPERIENCE.-
233     (e)  Assignment of variations from the standard rate.-For
234the calculation of contribution rates effective January 1, 2010,
235and thereafter:
236     1.  The tax collection service provider shall assign a
237variation from the standard rate of contributions for each
238calendar year to each eligible employer. In determining the
239contribution rate, varying from the standard rate to be assigned
240each employer, adjustment factors computed under sub-
241subparagraphs a.-d. shall be added to the benefit ratio. This
242addition shall be accomplished in two steps by adding a variable
243adjustment factor and a final adjustment factor. The sum of
244these adjustment factors computed under sub-subparagraphs a.-d.
245shall first be algebraically summed. The sum of these adjustment
246factors shall next be divided by a gross benefit ratio
247determined as follows: Total benefit payments for the 3-year
248period described in subparagraph (b)2. shall be charged to
249employers eligible for a variation from the standard rate, minus
250excess payments for the same period, divided by taxable payroll
251entering into the computation of individual benefit ratios for
252the calendar year for which the contribution rate is being
253computed. The ratio of the sum of the adjustment factors
254computed under sub-subparagraphs a.-d. to the gross benefit
255ratio shall be multiplied by each individual benefit ratio that
256is less than the maximum contribution rate to obtain variable
257adjustment factors; except that in any instance in which the sum
258of an employer's individual benefit ratio and variable
259adjustment factor exceeds the maximum contribution rate, the
260variable adjustment factor shall be reduced in order that the
261sum equals the maximum contribution rate. The variable
262adjustment factor for each of these employers is multiplied by
263his or her taxable payroll entering into the computation of his
264or her benefit ratio. The sum of these products shall be divided
265by the taxable payroll of the employers who entered into the
266computation of their benefit ratios. The resulting ratio shall
267be subtracted from the sum of the adjustment factors computed
268under sub-subparagraphs a.-d. to obtain the final adjustment
269factor. The variable adjustment factors and the final adjustment
270factor shall be computed to five decimal places and rounded to
271the fourth decimal place. This final adjustment factor shall be
272added to the variable adjustment factor and benefit ratio of
273each employer to obtain each employer's contribution rate. An
274employer's contribution rate may not, however, be rounded to
275less than 0.1 percent.
276     a.  An adjustment factor for noncharge benefits shall be
277computed to the fifth decimal place and rounded to the fourth
278decimal place by dividing the amount of noncharge benefits
279during the 3-year period described in subparagraph (b)2. by the
280taxable payroll of employers eligible for a variation from the
281standard rate who have a benefit ratio for the current year
282which is less than the maximum contribution rate. For purposes
283of computing this adjustment factor, the taxable payroll of
284these employers is the taxable payrolls for the 3 years ending
285June 30 of the current calendar year as reported to the tax
286collection service provider by September 30 of the same calendar
287year. As used in this sub-subparagraph, the term "noncharge
288benefits" means benefits paid to an individual from the
289Unemployment Compensation Trust Fund, but which were not charged
290to the employment record of any employer.
291     b.  An adjustment factor for excess payments shall be
292computed to the fifth decimal place, and rounded to the fourth
293decimal place by dividing the total excess payments during the
2943-year period described in subparagraph (b)2. by the taxable
295payroll of employers eligible for a variation from the standard
296rate who have a benefit ratio for the current year which is less
297than the maximum contribution rate. For purposes of computing
298this adjustment factor, the taxable payroll of these employers
299is the same figure used to compute the adjustment factor for
300noncharge benefits under sub-subparagraph a. As used in this
301sub-subparagraph, the term "excess payments" means the amount of
302benefits charged to the employment record of an employer during
303the 3-year period described in subparagraph (b)2., less the
304product of the maximum contribution rate and the employer's
305taxable payroll for the 3 years ending June 30 of the current
306calendar year as reported to the tax collection service provider
307by September 30 of the same calendar year. As used in this sub-
308subparagraph, the term "total excess payments" means the sum of
309the individual employer excess payments for those employers that
310were eligible to be considered for assignment of a contribution
311rate different from the standard rate.
312     c.(I)  Beginning January 1, 2012, if the balance of the
313Unemployment Compensation Trust Fund on June 30 of the calendar
314year immediately preceding the calendar year for which the
315contribution rate is being computed is less than 4 percent of
316the taxable payrolls for the year ending June 30 as reported to
317the tax collection service provider by September 30 of that
318calendar year, a positive adjustment factor shall be computed.
319The positive adjustment factor shall be computed annually to the
320fifth decimal place and rounded to the fourth decimal place by
321dividing the sum of the total taxable payrolls for the year
322ending June 30 of the current calendar year as reported to the
323tax collection service provider by September 30 of that calendar
324year into a sum equal to one-third of the difference between the
325balance of the fund as of June 30 of that calendar year and the
326sum of 5 percent of the total taxable payrolls for that year.
327The positive adjustment factor remains in effect for subsequent
328years until the balance of the Unemployment Compensation Trust
329Fund as of June 30 of the year immediately preceding the
330effective date of the contribution rate equals or exceeds 5
331percent of the taxable payrolls for the year ending June 30 of
332the current calendar year as reported to the tax collection
333service provider by September 30 of that calendar year.
334     (II)  Beginning January 1, 2015, and for each year
335thereafter, the positive adjustment authorized by this section
336shall be computed by dividing the sum of the total taxable
337payrolls for the year ending June 30 of the current calendar
338year as reported to the tax collection service provider by
339September 30 of that calendar year into a sum equal to one-
340fourth of the difference between the balance of the fund as of
341June 30 of that calendar year and the sum of 5 percent of the
342total taxable payrolls for that year. The positive adjustment
343factor remains in effect for subsequent years until the balance
344of the Unemployment Compensation Trust Fund as of June 30 of the
345year immediately preceding the effective date of the
346contribution rate equals or exceeds 4 percent of the taxable
347payrolls for the year ending June 30 of the current calendar
348year as reported to the tax collection service provider by
349September 30 of that calendar year.
350     d.  If, beginning January 1, 2015, and each year
351thereafter, the balance of the Unemployment Compensation Trust
352Fund as of June 30 of the year immediately preceding the
353calendar year for which the contribution rate is being computed
354exceeds 5 percent of the taxable payrolls for the year ending
355June 30 of the current calendar year as reported to the tax
356collection service provider by September 30 of that calendar
357year, a negative adjustment factor shall be computed. The
358negative adjustment factor shall be computed annually beginning
359on January 1, 2015, and each year thereafter, to the fifth
360decimal place and rounded to the fourth decimal place by
361dividing the sum of the total taxable payrolls for the year
362ending June 30 of the current calendar year as reported to the
363tax collection service provider by September 30 of the calendar
364year into a sum equal to one-fourth of the difference between
365the balance of the fund as of June 30 of the current calendar
366year and 5 percent of the total taxable payrolls of that year.
367The negative adjustment factor remains in effect for subsequent
368years until the balance of the Unemployment Compensation Trust
369Fund as of June 30 of the year immediately preceding the
370effective date of the contribution rate is less than 5 percent,
371but more than 4 percent of the taxable payrolls for the year
372ending June 30 of the current calendar year as reported to the
373tax collection service provider by September 30 of that calendar
374year. The negative adjustment authorized by this section is
375suspended in any calendar year in which repayment of the
376principal amount of an advance received from the federal
377Unemployment Compensation Trust Fund under 42 U.S.C. s. 1321 is
378due to the Federal Government.
379     e.  The maximum contribution rate that may be assigned to
380an employer is 5.4 percent, except employers participating in an
381approved short-time compensation plan may be assigned a maximum
382contribution rate that is 1 percent greater than the maximum
383contribution rate for other employers in any calendar year in
384which short-time compensation benefits are charged to the
385employer's employment record.
386     f.  As used in this subsection, "taxable payroll" shall be
387determined by excluding any part of the remuneration paid to an
388individual by an employer for employment during a calendar year
389in excess of the first $7,000. Beginning January 1, 2012,
390"taxable payroll" shall be determined by excluding any part of
391the remuneration paid to an individual by an employer for
392employment during a calendar year as described in s.
393443.1217(2). For the purposes of the employer rate calculation
394that will take effect January 1, 2012, and January 1, 2013, the
395tax collection service provider shall use the data available for
396taxable payroll from 2009 based on excluding any part of the
397remuneration paid to an individual by an employer for employment
398during a calendar year in excess of the first $7,000, and for
3992010 and 2011, the data available for taxable payroll based on
400excluding any part of the remuneration paid to an individual by
401an employer for employment during a calendar year in excess of
402the first $8,500.
403     2.  If the transfer of an employer's employment record to
404an employing unit under paragraph (f) which, before the
405transfer, was an employer, the tax collection service provider
406shall recompute a benefit ratio for the successor employer based
407on the combined employment records and reassign an appropriate
408contribution rate to the successor employer effective on the
409first day of the calendar quarter immediately after the
410effective date of the transfer.
411     (5)  ADDITIONAL RATE FOR INTEREST ON FEDERAL ADVANCES.-
412     (a)  When the Unemployment Compensation Trust Fund has
413received advances from the Federal Government under the
414provisions of 42 U.S.C. s. 1321, each contributing employer
415shall be assessed an additional rate solely for the purpose of
416paying interest due on such federal advances. The additional
417rate shall be assessed no later than February 1 in each calendar
418year in which an interest payment is due. The Revenue Estimating
419Conference shall estimate the amount of such interest no later
420than December 1 of the calendar year preceding the calendar year
421in which an interest payment is due. The Revenue Estimating
422Conference shall, at a minimum, consider the following as the
423basis for the estimate:
424     1.  The amounts actually advanced to the trust fund.
425     2.  Amounts expected to be advanced to the trust fund based
426on current and projected unemployment patterns and employer
427contributions.
428     3.  The interest payment due date.
429     4.  The interest rate that will be applied by the Federal
430Government to any accrued outstanding balances.
431     (b)  The additional rate assessed for a calendar year shall
432be determined by dividing the estimated amount of interest to be
433paid in that year by 95 percent of the taxable wages as
434described in s. 443.1217 paid by all employers for the year
435ending June 30 of the immediately preceding calendar year. The
436amount to be paid by each employer shall be the product obtained
437by multiplying such employer's taxable wages as described in s.
438443.1217 for the year ending June 30 of the immediately
439preceding calendar year by the rate as determined by this
440subsection. The tax collection service provider shall make a
441separate collection of such assessment, which may be collected
442at the time of employer contributions and subject to the same
443penalties for failure to file a report, imposition of the
444standard rate pursuant to paragraph (3)(h), and interest if the
445assessment is not received on or before June 30. Paragraphs (d)
446and (e) of s. 443.141(1) do not apply to this separately
447collected assessment. The tax collection service provider shall
448maintain those funds in the tax collection service provider's
449Audit and Warrant Clearing Trust Fund until the provider is
450directed by the Governor or the Governor's designee to make the
451interest payment to the Federal Government. Assessments on
452deposit may be invested and any interest earned shall be part of
453the balance available to pay the interest on advances received
454from the Federal Government under 42 U.S.C. s. 1321. In the
455calendar year that all advances from the Federal Government
456under 42 U.S.C. s. 1321 and associated interest are repaid, if
457there are assessment funds in excess of the amount required to
458meet the final interest payment, any such excess assessed funds
459shall be credited to employer accounts in the Unemployment
460Compensation Trust Fund in an amount equal to the employer's
461contribution to the assessment for that year divided by the
462total amount of the assessment for that year, the result of
463which is multiplied by the amount of excess assessed funds.
464However, if the state is permitted to defer interest payments
465due during a calendar year under 42 U.S.C. s. 1322, payment of
466the interest assessment shall not be due. If a deferral of
467interest expires or is subsequently disallowed by the Federal
468Government, either prospectively or retroactively, the interest
469assessment shall be immediately due and payable. Notwithstanding
470any other provision of this section, if interest due during a
471calendar year on federal advances is forgiven or postponed under
472federal law and is no longer due during that calendar year, no
473interest assessment shall be assessed against an employer for
474that calendar year, and any assessment already assessed and
475collected against an employer before the forgiveness or
476postponement of the interest for that calendar year shall be
477credited to such employer's account in the Unemployment
478Compensation Trust Fund. However, such funds may be used only to
479pay benefits or refunds of erroneous contributions.
480     (6)  INVALIDITY OF CERTAIN PROVISIONS.-If any provision of
481this section prevents the state from qualifying for any federal
482interest relief provisions provided under s. 1202 of the Social
483Security Act, 42 U.S.C. s. 1322, or prevents employers in this
484state from qualifying for the limitation on credit reduction as
485provided under s. 3302(f) of the Federal Unemployment Tax Act,
48626 U.S.C. s. 3302(f), that provision is invalid to the extent
487necessary to maintain qualification for the interest relief
488provisions and federal unemployment tax credits.
489     Section 5.  Effective upon this act becoming a law, and
490retroactive to January 1, 2010, paragraphs (d) and (e) are added
491to subsection (1) of section 443.141, Florida Statutes, to read:
492     443.141  Collection of contributions and reimbursements.-
493     (1)  PAST DUE CONTRIBUTIONS AND REIMBURSEMENTS.-
494     (d)  Payments for 2010 Contributions.-For an annual
495administrative fee not to exceed $5, a contributing employer may
496pay its quarterly contributions due for wages paid in the first
497three quarters of 2010 in equal installments if those
498contributions are paid as follows:
499     1.  For contributions due for wages paid in the first
500quarter of 2010, one-fourth of the contributions due must be
501paid on or before April 30, 2010, one-fourth must be paid on or
502before July 31, 2010, one-fourth must be paid on or before
503October 31, 2010, and the remaining one-fourth must be paid on
504or before December 31, 2010.
505     2.  In addition to the payments specified in subparagraph
5061., for contributions due for wages paid in the second quarter
507of 2010, one-third of the contributions due must be paid on or
508before July 31, 2010, one-third must be paid on or before
509October 31, 2010, and the remaining one-third must be paid on or
510before December 31, 2010.
511     3.  In addition to the payments specified in subparagraphs
5121. and 2., for contributions due for wages paid in the third
513quarter of 2010, one-half of the contributions due must be paid
514on or before October 31, 2010, and the remaining one-half must
515be paid on or before December 31, 2010.
516     4.  The annual administrative fee not to exceed $5 for the
517election to pay under the installment method shall be collected
518at the time the employer makes the first installment payment.
519The $5 fee shall be segregated from the payment and shall be
520deposited in the Operating Trust Fund within the Department of
521Revenue.
522     5.  Interest does not accrue on any contribution that
523becomes due for wages paid in the first three quarters of 2010
524if the employer pays the contribution in accordance with
525subparagraphs 1.-4. Interest and fees continue to accrue on
526prior delinquent contributions and commence accruing on all
527contributions due for wages paid in the first three quarters of
5282010 which are not paid in accordance with subparagraphs 1.-3.
529Penalties may be assessed in accordance with this chapter. The
530contributions due for wages paid in the fourth quarter of 2010
531are not affected by this paragraph and are due and payable in
532accordance with this chapter.
533     (e)  Payments for 2011 Contributions.-For an annual
534administrative fee not to exceed $5, a contributing employer may
535pay its quarterly contributions due for wages paid in the first
536three quarters of 2011 in equal installments if those
537contributions are paid as follows:
538     1.  For contributions due for wages paid in the first
539quarter of 2011, one-fourth of the contributions due must be
540paid on or before April 30, 2011, one-fourth must be paid on or
541before July 31, 2011, one-fourth must be paid on or before
542October 31, 2011, and the remaining one-fourth must be paid on
543or before December 31, 2011.
544     2.  In addition to the payments specified in subparagraph
5451., for contributions due for wages paid in the second quarter
546of 2011, one-third of the contributions due must be paid on or
547before July 31, 2011, one-third must be paid on or before
548October 31, 2011, and the remaining one-third must be paid on or
549before December 31, 2011.
550     3.  In addition to the payments specified in subparagraphs
5511. and 2., for contributions due for wages paid in the third
552quarter of 2011, one-half of the contributions due must be paid
553on or before October 31, 2011, and the remaining one-half must
554be paid on or before December 31, 2011.
555     4.  The annual administrative fee not to exceed $5 for the
556election to pay under the installment method shall be collected
557at the time the employer makes the first installment payment.
558The $5 fee shall be segregated from the payment and shall be
559deposited in the Operating Trust Fund within the Department of
560Revenue.
561     5.  Interest does not accrue on any contribution that
562becomes due for wages paid in the first three quarters of 2011
563if the employer pays the contribution in accordance with
564subparagraphs 1.-4. Interest and fees continue to accrue on
565prior delinquent contributions and commence accruing on all
566contributions due for wages paid in the first three quarters of
5672011 which are not paid in accordance with subparagraphs 1.-3.
568Penalties may be assessed in accordance with this chapter. The
569contributions due for wages paid in the fourth quarter of 2011
570are not affected by this paragraph and are due and payable in
571accordance with this chapter.
572     Section 6.  For the 2009-2010 fiscal year, the sum of
573$903,642 in nonrecurring funds is appropriated from the
574Operating Trust Fund to the Administration of Unemployment
575Compensation Tax Special Category in the Department of Revenue
576to be used to implement this act. In addition, for the 2009-2010
577fiscal year, the sum of $643,862 in nonrecurring funds is
578appropriated from the Employment Security Administration Trust
579Fund in the contracted services appropriation category to the
580Agency for Workforce Innovation to be used to contract with the
581Department of Revenue for tax-related services as required to
582implement this act.
583     Section 7.  The Legislature finds that this act fulfills an
584important state interest.
585     Section 8.  Except as otherwise expressly provided in this
586act, this act shall take effect upon becoming a law, retroactive
587to June 29, 2009.


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