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Senate Study Bill 1244

Bill Text

PAG LIN
  1  1    Section 1.  Section 96.7, subsection 12, paragraphs a, c,
  1  2 and d, Code 2001, are amended to read as follows:
  1  3    a.  An employer other than a governmental entity or a
  1  4 nonprofit organization, subject to this chapter, shall pay an
  1  5 administrative contribution surcharge equal in amount to one-
  1  6 tenth of one percent of federal taxable wages, as defined in
  1  7 section 96.19, subsection 37, paragraph "b" that is
  1  8 established by the department, by rule, as a percentage of
  1  9 taxable wages, in an amount necessary to achieve an
  1 10 administrative contribution surcharge fund balance in the
  1 11 following amount:
  1 12    (1)  For calendar year 2002, a fund balance no greater than
  1 13 six million dollars.
  1 14    (2)  For calendar year 2003, a fund balance no greater than
  1 15 five million dollars.
  1 16    Any accrued administrative contribution surcharges in the
  1 17 administrative contribution surcharge fund that remain unspent
  1 18 at the end of calendar year 2002 shall be deducted from the
  1 19 amount to be collected in calendar year 2003 before the
  1 20 department establishes the administrative contribution
  1 21 surcharge necessary to achieve the maximum administrative
  1 22 contribution surcharge fund balance for calendar year 2003.
  1 23 The department shall reduce the administrative contribution
  1 24 surcharge established for any calendar year proportionate to
  1 25 any federal government reform that provides an increased
  1 26 allocation of moneys under the federal Unemployment Tax Act to
  1 27 the state.  The department shall recompute the amount as a
  1 28 percentage of taxable wages, as defined in section 96.19,
  1 29 subsection 37, and shall add the percentage surcharge to the
  1 30 employer's contribution rate determined under this section for
  1 31 the appropriate calendar year.  The department shall adopt
  1 32 rules prescribing the manner in which the surcharge will be
  1 33 collected.  Interest shall accrue on all unpaid surcharges
  1 34 under this subsection at the same rate as on regular
  1 35 contributions and shall be collectible in the same manner.
  2  1 Interest accrued and collected under this paragraph and
  2  2 interest earned and credited to the fund under paragraph "b"
  2  3 shall be used by the department only for the purposes set
  2  4 forth in paragraph "c".
  2  5    c.  Moneys in the fund shall be used by the department only
  2  6 upon appropriation by the general assembly and only for
  2  7 personnel and nonpersonnel costs of rural and satellite
  2  8 departmental offices in population centers of less than twenty
  2  9 thousand or for the department-approved training fund funded
  2 10 in section 8, subsection 2, of 1988 Iowa Acts, chapter 1274
  2 11 for training carried out by community colleges, as defined in
  2 12 section 260C.2.  To the extent possible, the department shall
  2 13 colocate the rural and satellite departmental offices funded
  2 14 by the surcharge provided for in this subsection, at available
  2 15 community college facilities throughout the state.  Moneys in
  2 16 the fund shall not be used for purposes other than those
  2 17 identified in this paragraph or identified in the
  2 18 appropriation of the moneys in the fund by the general
  2 19 assembly.  Prohibited uses of the moneys in the fund include
  2 20 but are not limited to occupational safety and health
  2 21 consultations, services which are currently provided or
  2 22 projected to be provided by other state agencies, department
  2 23 of workforce development regional advisory board member
  2 24 expenses, and any miscellaneous purposes.
  2 25    d.  This subsection is repealed July 1, 2001 2003, and the
  2 26 repeal is applicable to contribution rates for calendar year
  2 27 2002 2004 and subsequent calendar years.
  2 28    Sec. 2.  RURAL AND SATELLITE DEPARTMENTAL OFFICES REVIEW.
  2 29 The department of workforce development shall conduct an
  2 30 annual review of the number of individuals served at each site
  2 31 and the services rendered, the number of businesses served at
  2 32 each site and the services rendered, the categories of service
  2 33 provided at each site, the number of employment applications
  2 34 completed and submitted at each site, the number of placements
  2 35 made at each site, and the average wages and benefits of
  3  1 individuals placed.
  3  2    The department, in the review, shall consider the
  3  3 feasibility of consolidating some of the rural and satellite
  3  4 departmental offices to better serve the public.
  3  5    The department shall develop a customer satisfaction survey
  3  6 that gathers information from employers and individuals who
  3  7 have utilized services at the satellite offices.  The survey
  3  8 shall include questions concerning the type of services
  3  9 rendered, the quality of services rendered, and the quality of
  3 10 referrals given.  The results of the survey shall be included
  3 11 in the department's review.
  3 12    The department shall prepare a report of its review
  3 13 findings.  The report shall contain information gathered in
  3 14 the review as well as information concerning the success of
  3 15 colocation efforts at community colleges throughout the state,
  3 16 the services provided to employers with fifty or fewer
  3 17 employees, the rent or lease costs associated with each site
  3 18 and the building square footage at each site, and efforts to
  3 19 pursue other funding sources or contracts with private sector
  3 20 vendors.
  3 21    The department shall submit a report of its annual review
  3 22 to the governor and general assembly by December 21, 2001, and
  3 23 by December 21, 2002.
  3 24    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  3 25 immediate importance, takes effect upon enactment.  
  3 26                           EXPLANATION
  3 27    This bill amends Code section 96.7, subsection 12, by
  3 28 providing for the repeal of the employment security
  3 29 administrative contribution surcharge and its fund on July 1,
  3 30 2003, instead of July 1, 2001.  The bill also transforms the
  3 31 surcharge for calendar years 2002 and 2003 from one based on a
  3 32 set percentage of taxable wages to one based on a percentage
  3 33 of taxable wages but capped for all employer surcharges at $6
  3 34 million in 2002 and $5 million in 2003.  This Code section
  3 35 change is made effective upon the bill's enactment in order to
  4  1 take effect before the scheduled repeal of Code section 96.7,
  4  2 subsection 12, on July 1, 2001.
  4  3    The bill permits moneys from the division-approved training
  4  4 fund to be used for training carried out by community
  4  5 colleges.
  4  6    The bill also requires the department of workforce
  4  7 development to colocate rural and satellite offices at
  4  8 community colleges to the extent possible.  The bill requires
  4  9 the department to use administrative contribution surcharge
  4 10 fund moneys and interest only for specified purposes
  4 11 identified in the Code or identified in the appropriation of
  4 12 the moneys from the fund.  The bill also specifies prohibited
  4 13 uses of surcharge funds including but not limited to
  4 14 occupational safety and health consultations, services which
  4 15 are currently provided or projected to be provided by other
  4 16 state agencies, workforce development regional advisory board
  4 17 member expenses, and any miscellaneous purposes.
  4 18    The department is also directed to conduct an annual review
  4 19 of the rural and satellite offices including the number of
  4 20 individuals served at each site and the services rendered, the
  4 21 number of businesses served at each site, the number of
  4 22 employment applications completed and submitted at each site,
  4 23 and the average wages and benefits of individuals placed.  The
  4 24 department is also directed to consider consolidating some of
  4 25 the rural and satellite offices and to develop a customer
  4 26 satisfaction survey that gathers information from employers
  4 27 and individuals who utilize services at satellite offices.
  4 28    The department is directed to prepare and submit a report
  4 29 of its review findings for each year that the surcharge is in
  4 30 effect to the governor and general assembly by December 21,
  4 31 2001, and by December 21, 2002.  
  4 32 LSB 3382XC 79
  4 33 av/gg/8.1
     

Text: SSB01243                          Text: SSB01245
Text: SSB01200 - SSB01299               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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