House File 292
HOUSE FILE
BY THOMAS, LENSING, STEVENS, SWAIM,
MILLER, D. OLSON, MASCHER, WISE,
OLDSON, REASONER, MURPHY, OSTERHAUS,
SHOULTZ, JOCHUM, HUSER, WHITAKER,
KUHN, HUNTER, CONNORS, HEDDENS,
BELL, LYKAM, COHOON, BUKTA, MYERS,
QUIRK, WENDT, GASKILL, BERRY,
WINCKLER, MERTZ, FREVERT, GREIMANN,
WHITEAD, T. TAYLOR, and D. TAYLOR
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the employment security administrative
2 contribution surcharge, and providing an effective date.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1236HH 80
5 ec/sh/8
PAG LIN
1 1 Section 1. Section 96.7, subsection 12, paragraph a, Code
1 2 2003, is 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", subject to the
1 8 surcharge formula to be developed by the department under this
1 9 paragraph. The department shall develop a surcharge formula
1 10 that provides a target revenue level of no greater than six
1 11 million five hundred twenty=five thousand dollars annually.
1 12 The department shall reduce the administrative contribution
1 13 surcharge established for any calendar year proportionate to
1 14 any federal government funding that provides an increased
1 15 allocation of moneys for workforce development offices, under
1 16 the federal employment services financing reform legislation.
1 17 Any administrative contribution surcharge revenue that is
1 18 collected in any calendar year 2002 in excess of six million
1 19 five hundred twenty=five thousand dollars shall be deducted
1 20 from the amount to be collected in the subsequent calendar
1 21 year 2003 before the department establishes the administrative
1 22 contribution surcharge. The department shall recompute the
1 23 amount as a percentage of taxable wages, as defined in section
1 24 96.19, subsection 37, and shall add the percentage surcharge
1 25 to the employer's contribution rate determined under this
1 26 section. The percentage surcharge shall be capped at a
1 27 maximum of seven dollars per employee. The department shall
1 28 adopt rules prescribing the manner in which the surcharge will
1 29 be collected. Interest shall accrue on all unpaid surcharges
1 30 under this subsection at the same rate as on regular
1 31 contributions and shall be collectible in the same manner.
1 32 Interest accrued and collected under this paragraph and
1 33 interest earned and credited to the fund under paragraph "b"
1 34 shall be used by the department only for the purposes set
1 35 forth in paragraph "c".
2 1 Sec. 2. Section 96.7, subsection 12, paragraph d, Code
2 2 2003, is amended to read as follows:
2 3 d. This subsection is repealed July 1, 2003 2008, and the
2 4 repeal is applicable to contribution rates for calendar year
2 5 2004 2009 and subsequent calendar years.
2 6 Sec. 3. 2001 Iowa Acts, First Extraordinary Session,
2 7 chapter 2, section 2, unnumbered paragraph 4, is amended to
2 8 read as follows:
2 9 The department shall submit a report of its annual
2 10 departmental offices review to the governor and general
2 11 assembly by December 21, 2001, by December 21, 2002, and by
2 12 December 21, 2003 of each subsequent calendar year through
2 13 December 21, 2008.
2 14 Sec. 4. EFFECTIVE DATE. This Act, being deemed of
2 15 immediate importance, takes effect upon enactment.
2 16 EXPLANATION
2 17 This bill extends the repeal of the employment security
2 18 administrative contribution surcharge from July 1, 2003, to
2 19 July 1, 2008. In addition, the bill extends the requirement
2 20 to submit an annual review of rural and satellite departmental
2 21 offices through 2008.
2 22 The bill takes effect upon enactment.
2 23 LSB 1236HH 80
2 24 ec/sh/8