House File 591
HOUSE FILE
BY COMMITTEE ON ECONOMIC GROWTH
(SUCCESSOR TO HSB 172)
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 1236HV 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 1236HV 80
2 24 ec/sh/8