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Text: HSB00546                          Text: HSB00548
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House Study Bill 547

Conference Committee Text

PAG LIN
  1  1    Section 1.  Section 96.7, subsection 2, paragraph e, Code
  1  2 Supplement 1995, is amended to read as follows:
  1  3    e.  The division shall fix the contribution rate for each
  1  4 employer and notify the employer of the rate by regular mail
  1  5 to the last known address of the employer.  An employer may
  1  6 appeal to the division for a revision of the contribution rate
  1  7 within thirty days from the date of the notice to the
  1  8 employer.  After providing an opportunity for a hearing, the
  1  9 division may affirm, set aside, or modify its former
  1 10 determination and may grant the employer a new contribution
  1 11 rate.  The division shall notify the employer of its decision
  1 12 by regular mail.  Judicial review of action of the division
  1 13 may be sought pursuant to chapter 17A.
  1 14    If an employer's account has been charged with benefits as
  1 15 the result of a decision allowing benefits and the decision is
  1 16 reversed, the employer may appeal, within thirty days from the
  1 17 date of the next contribution rate notice, for a recomputation
  1 18 of the rate.  If contributions become due at a disputed
  1 19 contribution rate prior to the employer receiving a decision
  1 20 reversing benefits, the employer shall pay the contributions
  1 21 at the disputed rate but shall be eligible for a refund
  1 22 pursuant to section 96.14, subsection 5.  If a base period
  1 23 employer's account has been charged with benefits paid to an
  1 24 employee at a time when the employee was employed by the base
  1 25 period employer in the same employment as in the base period,
  1 26 the employer may appeal, within thirty days from the date of
  1 27 the first notice of the employer's contribution rate which is
  1 28 based on the charges, for a recomputation of the rate.
  1 29    Sec. 2.  Section 96.7, subsection 7, paragraph e, Code
  1 30 Supplement 1995, is amended to read as follows:
  1 31    e.  If an the entire enterprise or business of a
  1 32 reimbursable government governmental entity is sold or
  1 33 otherwise transferred to a subsequent employing unit and the
  1 34 successor acquiring employing unit continues to operate the
  1 35 enterprise or business, the successor acquiring employing unit
  2  1 shall assume the position of the reimbursable government
  2  2 governmental entity with respect to the reimbursable
  2  3 government governmental entity's liability to pay the division
  2  4 for reimbursable benefits based on the governmental entity's
  2  5 payroll and reimbursable benefits to the same extent as if no
  2  6 change in the ownership or control of the enterprise or
  2  7 business had occurred, whether or not the successor employer
  2  8 acquiring employing unit elected or elects, or was or is
  2  9 eligible to elect, to become a reimbursable employer with
  2 10 respect to the employer's acquiring employing unit's own
  2 11 payroll prior to or after the sale or transfer acquisition of
  2 12 the governmental entity's enterprise or business.
  2 13    Sec. 3.  Section 96.7, subsection 8, paragraph b,
  2 14 subparagraph (6), Code Supplement 1995, is amended to read as
  2 15 follows:
  2 16    (6)  If an the entire enterprise or business of a
  2 17 reimbursable nonprofit organization is sold or otherwise
  2 18 transferred to a subsequent employing unit and the successor
  2 19 acquiring employing unit continues to operate the enterprise
  2 20 or business, the successor acquiring employing unit shall
  2 21 assume the position of the reimbursable nonprofit organization
  2 22 with respect to the nonprofit organization's liability to pay
  2 23 the division for reimbursable benefits based on the nonprofit
  2 24 organization's payroll and reimbursable benefits to the same
  2 25 extent as if no change in the ownership or control of the
  2 26 enterprise or business had occurred, whether or not the
  2 27 successor employer acquiring employing unit elected or elects,
  2 28 or was or is eligible to elect, to become a reimbursable
  2 29 employer with respect to the employer's acquiring employing
  2 30 unit's own payroll prior to or after the sale or transfer
  2 31 acquisition of the nonprofit organization's enterprise or
  2 32 business.
  2 33    Sec. 4.  Section 96.14, subsection 5, Code 1995, is amended
  2 34 to read as follows:
  2 35    5.  REFUNDS, COMPROMISES AND SETTLEMENTS.  If the division
  3  1 of job service finds that an employer has paid contributions,
  3  2 or interest on contributions, or penalties, which have been
  3  3 erroneously paid or which have been paid if the employer has
  3  4 overpaid contributions because the employer's contribution
  3  5 rate was subsequently reduced pursuant to section 96.7,
  3  6 subsection 2, paragraph "e", solely due to benefits initially
  3  7 charged against but later removed from an employer's account,
  3  8 and the employer has filed an application for adjustment
  3  9 refund, the division shall make an adjustment, compromise, or
  3 10 settlement, and, at the employer's option, shall either refund
  3 11 the payments or treat the payments as voluntary contributions
  3 12 with no limitation on the payments' effects on the employer's
  3 13 contribution rate refund the erroneous payment or overpayment.
  3 14 Refunds so made shall be charged to the fund to which the
  3 15 collections have been credited, and shall be paid to the
  3 16 claimant employer without interest.  A claim for refund shall
  3 17 be made within three years from the date of payment.  For like
  3 18 cause, adjustments refunds, compromises, or refunds and
  3 19 settlements may be made by the division on its own initiative
  3 20 within three years of the date of the payment or assessment.
  3 21 If the division finds that the contribution that has been
  3 22 assessed against an employer is of doubtful collectibility or
  3 23 may not be collected in full, the division may institute a
  3 24 proceeding in the district court in the county in which the
  3 25 employer against which the tax is levied is located,
  3 26 requesting authority to compromise the contribution.  Notice
  3 27 of the filing of an application shall be given to the
  3 28 interested parties as the court may prescribe.  The court upon
  3 29 hearing may authorize the division to compromise and settle
  3 30 its claim for the contribution and shall fix the amount to be
  3 31 received by the division in full settlement of the claim and
  3 32 shall authorize the release of the division's lien for the
  3 33 contribution.  
  3 34                           EXPLANATION
  3 35    Section 1 of the bill provides that the division of job
  4  1 service send contribution rate notices to employers by regular
  4  2 mail at the employer's last known address.  The section also
  4  3 provides that the employer shall pay contributions at a
  4  4 disputed rate prior to a decision concerning the rate but that
  4  5 the employer is eligible for a refund pending a decision
  4  6 reversing benefits.  Sections 1 and 4 also add language
  4  7 providing that the two Code sections dealing with employer
  4  8 contribution rates and refunds both refer to the other
  4  9 section.
  4 10    Sections 2 and 3 change language concerning what occurs
  4 11 when governmental or nonprofit reimbursable employers sell
  4 12 their entire business.  The bill changes "government" to
  4 13 "governmental" and "successor employer" to "acquiring
  4 14 employing unit".  
  4 15                      BACKGROUND STATEMENT
  4 16                     SUBMITTED BY THE AGENCY
  4 17    The changes in all four sections of this bill are technical
  4 18 in nature and are intended for clarification of meaning,
  4 19 consistency with other sections of the Code, and to remove
  4 20 outdated language.
  4 21    Section 1 clarifies that the division of job service send
  4 22 contribution rate notices by regular mail to the last known
  4 23 address and links section 96.7, subsection 2, to section
  4 24 96.14, subsection 5, to clarify that the two sections must be
  4 25 read together.  Section 96.14, subsection 5, already infers
  4 26 that the employer must pay tax at the disputed rate by
  4 27 authorizing a refund if an overpayment of contributions is
  4 28 caused by benefits being reversed.
  4 29    The words "the entire" are being added to sections 2 and 3
  4 30 of the bill to clarify that these sections deal with a
  4 31 complete sale of a reimbursable employer's business.  The rest
  4 32 of the changes in language in sections 2 and 3 are for
  4 33 consistency or clarification only.
  4 34    Section 4 adds the words "or penalties" to clarify that
  4 35 erroneously paid penalties may be refunded as is already
  5  1 inferred by section 96.13, subsection 3, which states that
  5  2 refunds of penalties are to come from the special employment
  5  3 security contingency fund.  Section 4 links the refund of
  5  4 overpaid contributions because of the reversal of benefit
  5  5 charges back to section 96.7, subsection 2, because there can
  5  6 be no such overpayment of contributions if the rate is not
  5  7 reduced on appeal.  Section 4 removes outdated language about
  5  8 voluntary contributions because private employer rates have
  5  9 not used contributions in the computation since 1987.  The
  5 10 rest of the changes in section 4 are strictly for
  5 11 clarification purposes.  
  5 12 LSB 3285DP 76
  5 13 ec/jw/5.1
     

Text: HSB00546                          Text: HSB00548
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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