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art.014/3/014/2/014/1

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ARTICLE 14 SUBSTITUTE A

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RELATING TO EMPLOYMENT SECURITY JOB DEVELOPMENT FUND ASSESSMENT

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     SECTION 1. Section 28-42-84 of the General Laws in Chapter 28-42 entitled

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"Employment Security – General Provisions" is hereby amended to read as follows:

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     28-42-84. Job development fund – Disbursements – Unexpended balance. -- (a) The

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moneys in the job development fund shall be used for the following purposes:

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      (1) To reimburse the department of labor and training for the loss of any federal funds

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resulting from the collection and maintenance of the fund by the department;

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      (2) To make refunds of contributions erroneously collected and deposited in the fund;

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      (3) To pay any administrative expenses incurred by the department of labor and training

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associated with the collection of the contributions for employers paid pursuant to section 28-43-

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8.5, and any other administrative expenses associated with the maintenance of the fund, including

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the payment of all premiums upon bonds required pursuant to section 28-42-85;

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      (4) To provide for job training, counseling and assessment services, and other related

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activities and services. Services will include, but are not limited to, research, development,

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coordination, and training activities to promote workforce development and business

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development as established by the human resource investment council;

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      (5) To support the state's job training for economic development;

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      (6)(i) Beginning January 1, 2001, two hundredths of one percent (0.02%) out of the

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twenty-one hundredths of one percent (0.21%) job development assessment paid pursuant to

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section 28-43-8.5 shall be used to support necessary core services in the unemployment insurance

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and employment services programs operated by the department of labor and training; and

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      (ii) Beginning January 1, 2011, and ending in tax year 2015, two hundredths of one

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percent (0.02%) out of the fifty- one hundredths of one percent (0.51%) job development

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assessment paid pursuant to section 28-43-8.5 shall be used to support necessary core services in

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the unemployment insurance and employment services programs operated by the department of

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labor and training; and

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      (7) Beginning January 1, 2011, and ending in tax year 2015, three tenths of one percent

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(0.3%) out of the fifty-one hundredths of one percent (0.51%) job development assessment paid

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pursuant to section 28-43.8.5 shall be deposited into a restricted receipt account to be used solely

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to pay the principal and/or interest due on Title XII advances received from the federal

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government in accordance with the provisions of Section 1201 of the Social Security Act;

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provided, however, that if the federal Title XII loans are repaid through a state revenue bond or

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other financing mechanism, then these funds may also be used to pay the principal and/or interest

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that accrues on that debt. Any remaining funds in the restricted receipt account, after the

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outstanding principal and interest due has been paid, shall be transferred to the employment

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security fund for the payment of benefits.

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      (b) The general treasurer shall pay all vouchers duly drawn by the council upon the fund,

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in any amounts and in any manner that the council may prescribe. Vouchers so drawn upon the

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fund shall be referred to the controller within the department of administration. Upon receipt of

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those vouchers, the controller shall immediately record and sign them and shall promptly transfer

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those signed vouchers to the general treasurer. Those expenditures shall be used solely for the

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purposes specified in this section and its balance shall not lapse at any time but shall remain

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continuously available for expenditures consistent with this section. The general assembly shall

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annually appropriate the funds contained in the fund for the use of the human resource investment

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council and, in addition, for the use of the department of labor and training effective July 1, 2000,

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and for the payment of the principal and interest due on federal Title XII loans beginning July 1,

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2011; provided, however, that if the federal Title XII loans are repaid through a state revenue

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bond or other financing mechanism, then the funds may also be used to pay the principal and/or

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interest that accrues on that debt.

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     SECTION 2. Section 28-43-8.5 of the General Laws in Chapter 28-43 entitled

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"Employment Security – Contributions" is hereby amended to read as follows:

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     28-43-8.5. Job development assessment. -- For the tax year years 2011 through 2014,

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and subsequent tax years each employer subject to this chapter shall be required to pay a job

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development assessment of fifty-one hundredths of one percent (0.51%) of that employer's

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taxable payroll, in addition to any other payment which that employer is required to make under

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any other provision of this chapter; provided, that the assessment shall not be considered as part

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of the individual employer's contribution rate for the purpose of determining the individual

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employer's balancing charge pursuant to § 28-43-9. The tax rate for all employers subject to the

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contribution provisions of chapters 42 – 44 of this title shall be reduced by twenty-one hundredths

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of one percent (0.21%). For tax year 2015, each employer subject to this chapter shall be required

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to pay a job development assessment of fifty-one hundredths of one percent (0.51%) of that

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employer's taxable payroll, in addition to any other payment which that employer is required to

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make under any other provision of this chapter; provided, that the assessment shall not be

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considered as part of the individual employer's contribution rate for the purpose of determining

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the individual employer's balancing charge pursuant to section 28-43-9. However, upon full

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repayment of any outstanding principal and/or interest due on Title XII advances received from

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the federal government in accordance with the provisions of section 1201 of the Social Security

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Act, including any principal and/or interest that accrues on debt from a state revenue bond or

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other financing mechanism used to repay the Title XII advances, then the job development

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assessment shall be reduced to twenty-one hundredths of one percent (0.21%) beginning the tax

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quarter after the full repayment occurs.

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     SECTION 3. Section 28-44-57 of the General Laws in Chapter 28-44 entitled

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"Employment Security - Benefits" is hereby amended to read as follows:

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     28-44-57. Fees and costs chargeable. -- (a) No individual claiming benefits shall be

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charged fees of any kind by the director or his or her representative, or by the board of review or

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its representatives, in any proceeding under chapters 42 -- 44 of this title. Any individual claiming

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benefits in any proceeding or court action may be represented by counsel or other duly authorized

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agent. The director shall have the authority to fix the fees of that counsel or other duly authorized

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agent, but no counsel or agent shall together be allowed to charge or receive for those services

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more than ten percent (10%) of the maximum benefits at issue in that proceeding or court action

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but not less than fifty dollars ($50.00) except as specifically allowed by the superior court.

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      (b) In any case in which either an employer appeals from a determination in favor of the

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claimant or a claimant successfully appeals from a decision unfavorable to the claimant to an

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appeals body other than a court of law and the claimant retains an attorney-at-law to represent

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him or her, the attorney shall be entitled to a counsel fee of fifteen percent (15%) ten percent

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(10%) of the amount of benefits at issue before the appeals body but not less than fifty dollars

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($50.00), which shall be paid by the director out of the employment security administrative funds,

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within thirty (30) days of the date of his or her appearance.

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      (c) (1) An attorney-at-law who represents an individual claiming benefits on an appeal to

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the courts shall be entitled to counsel fees upon final disposition of the case and necessary court

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costs and printing disbursements as fixed by the court.

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      (2) The director shall pay those counsel fees, costs, and disbursements, out of the

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employment security administrative funds in each of the following cases:

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      (i) Any court appeal taken by a party other than the claimant from an administrative or

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judicial decision favorable in whole or in part to the claimant;

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      (ii) Any court appeal by a claimant from a decision denying or reducing benefits

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awarded under a prior administrative or judicial decision;

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      (iii) Any court appeal as a result of which the claimant is awarded benefits.

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     SECTION 4. Section 28-42-18 of the General Laws in Chapter 28-42 entitled

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"Employment Security - General Provisions" is hereby amended to read as follows:

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     28-42-18. Establishment of fund. -- (a) There is created the employment security fund,

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to be administered by the director without liability on the part of the state beyond the amounts

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paid into and earned by the fund. This fund shall consist of:

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      (1) All contributions paid pursuant to sections 28-43-16 -- 28-43-22;

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      (2) All other moneys paid into and received by the fund;

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      (3) Property and securities acquired by and through the use of moneys belonging to the

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fund;

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      (4) Interest earned upon the money belonging to the fund; and

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      (5) All money credited to this state's account in the unemployment trust fund pursuant to

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42 U.S.C. section 1103.

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      (6) Advances from the general fund, authorized by the governor and the director of

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administration, for the purpose of repaying loans outstanding from the federal government in a

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given fiscal year. However, all such advances made to the fund shall be repaid to the general

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fund, with interest as determined by the general treasurer, within the same fiscal year.

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      (b) All moneys in the fund shall be mingled and undivided.

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     SECTION 5. This article shall take effect upon passage.