2013 -- S 0683

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LC01449

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY-

CONTRIBUTIONS

     Introduced By: Senators Pichardo, Miller, Felag, Lynch, and Goldin

     Date Introduced: March 06, 2013

     Referred To: Senate Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 28-43-3 and 28-43-30 of the General Laws in Chapter 28-43

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entitled "Employment Security - Contributions" are hereby amended to read as follows:

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     28-43-3. Employer's accounts -- Credits and charges. -- Subsequent to the

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establishment of a separate employer's account for each employer subject to chapters 42 -- 44 of

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this title as set forth in section 28-43-1(4), the credits and charges to each employer's account,

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exclusive of the state of Rhode Island, its political subdivisions, and their instrumentalities, shall

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be determined as follows:

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      (1) Credits to each employer's account:

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      (i) After the September 30, 1958 computation date all contributions required under

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section 28-43-8 and paid by each employer.

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      (ii) All surcharges required and paid under section 28-43-4.

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      (2) Charges to each employer's account:

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      (i) Refunds of overpayments under section 28-43-13, as of the date refunded;

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      (ii) For benefit years beginning subsequent to September 30, 1993, an amount equal to

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the benefits provided in sections 28-44-6(a) and (b), 28-44-7, and 28-44-8, and paid to each

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individual with respect to a benefit year, as of the date paid. Those benefits shall be charged to the

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account of the most recent base period employer, as defined in section 28-43-1(7); provided, that

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if a claimant works for two (2) or more employers concurrently, either full-time or part-time, and

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becomes unemployed on the same day from more than one employer, any benefits paid as a result

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of the unemployment shall be charged to the employers' accounts proportionately based upon the

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ratio of base period wages paid by each employer to the total base period wages paid by the

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concurrent employers from whom the claimant became separated from employment. No charge

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for benefits paid under section 28-44-7 shall be made against the account of any employer who

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shows to the satisfaction of the director that he or she has continued to employ the individual

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during the weeks of his or her claim to the same extent that he or she had employed him or her

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during that individual's base period, and those benefits, if not chargeable to the most recent base

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period employer, shall be charged to the balancing account.

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      (iii) If any base period employer, whether or not he or she was the most recent, shows to

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the satisfaction of the director that the individual who is in receipt of benefits became separated

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from his or her last employment with that employer for reasons which did result or would have

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resulted in a disqualification under section 28-44-17 or 28-44-18 had that base period employer

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been his or her most recent, those benefits shall be charged to the balancing account.

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      (iv) The entire amount charged to the employer's account under section 28-43-9 relating

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to the balancing rate.

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      (v) Whenever the provisions in this section specify that an employer's account shall not

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be charged, that non-charging shall be limited to benefits paid based on service with an employer

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required to pay contributions under the provisions of chapters 42 -- 44 of this title.

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      (vi) An amount equal to the benefits provided in section 28-44-62 and paid to each

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individual with respect to a benefit year as of the date paid minus the proportionate share of those

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benefits for which the state has been or will be reimbursed by the federal government. The federal

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share of any payments shall be charged to the balancing account and federal reimbursements shall

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be credited to the balancing account.

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      (vii) Whenever any benefits are paid for benefit years beginning subsequent to July 7,

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1996 to an individual unemployed as a result of physical damage to the real property at the

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employer's usual place of business caused by severe weather conditions, including, but not

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limited to, hurricanes, snowstorms, ice storms or flooding, or fire except where caused by the

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employer, those benefits shall be charged to the balancing account.

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     (viii) An employer's account shall not be relieved of charges relating to any benefits

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payments made if the director establishes on or after October 1, 2013 that the payment was made

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because the employer, or an agent of the employer, was at fault for failing to respond timely or

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adequately to the request of the department for information relating to the claim for

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unemployment benefits that was subsequently overpaid.

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     28-43-30. Reimbursement payments -- Nonprofit organizations and governmental

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entities. -- (a) At the end of each month, the director shall bill each nonprofit organization or

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group of those organizations or governmental entity which has elected to make payment in lieu of

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contributions, for an amount equal to the full amount of regular benefits, plus the full amount of

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extended benefits paid during that month, less any federal payments to the state under section 204

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of the Federal-State Extended Unemployment Compensation Act of 1970, that is attributable to

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service in the employ of that organization or entity; provided, that for weeks of unemployment

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beginning on or after January 1, 1979, those governmental entities shall be responsible for

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reimbursing the employment security fund for the full amount of extended benefits paid that is

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attributable to service in the employ of those entities. Each nonprofit organization or group of

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those organizations or governmental entity which has elected to make payment in lieu of

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contributions, shall also be liable to reimburse the employment security fund for any benefits

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payments made if the director establishes on or after October 1, 2013 that the payment was made

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because the employer, or an agent of the employer, was at fault for failing to respond timely or

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adequately to the request of the department for information relating to the claim for

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unemployment benefits that was subsequently overpaid.

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      (b) The amount computed for the state shall be reported monthly to the general treasurer

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and shall then be paid from the general fund of the state upon approval thereof in accordance with

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the law in effect, except that to the extent that benefits are paid by the state from special

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administrative funds, the payment by the state into the employment security fund shall be made

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from special funds.

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      (c) The amount so computed for political subdivisions, instrumentalities, and all other

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governmental entities shall be reported monthly to the financial authorities who shall pay the

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required amount into the employment security fund in accordance with regulations as prescribed.

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      (d) Payment of any bill rendered under subsection (a) of this section shall be made not

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later than thirty (30) days after that bill was mailed to the last known address of the nonprofit

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organization or governmental entity, or was otherwise delivered to it. The bill rendered to an

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employer shall constitute the director's determination and shall be binding upon the employer

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unless an appeal is duly filed in writing to the board of review in accordance with the provisions

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of section 28-43-14, within fifteen (15) days of the mailing or other delivery.

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      (e) Payments made by any nonprofit organization or governmental entity under the

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provisions of this section shall not be deducted or deductible, in whole or in part, from the

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remuneration of individuals in the employ of the organization.

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      (f) With respect to nonprofit organizations or groups of organizations and governmental

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entities, past due payments of amounts in lieu of contributions shall be subject to the same

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interest and penalties that apply to delinquent contributions under sections 28-42-65 and 28-43-

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15.

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      (g) If any nonprofit organization or governmental entity is delinquent in making

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payments in lieu of contributions as required under the provisions of this section, the director may

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terminate that organization's or entity's election to make payments in lieu of contributions as of

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the beginning of the next taxable year and that termination shall be effective for that and the next

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taxable year.

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     SECTION 2. This act shall take effect on October 1, 2013.

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LC01449

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO LABOR AND LABOR RELATIONS - EMPLOYMENT SECURITY-

CONTRIBUTIONS

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     This act would require that the accounts of employers be charged when improper

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payments are made due to the failure of the employer to respond timely or adequately to requests

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by the department for information relating to a claim for unemployment benefits that was

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subsequently overpaid.

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     This act would take effect on October 1, 2013.

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LC01449

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