(a) (1) (A) Except employers that have made an election to reimburse the Unemployment Compensation Fund under § 11-10-713(c), each employer shall pay a separate and additional assessment, to be known as the "unemployment obligation assessment", on wages paid by that employer with respect to employment in addition to the contributions, stabilization and extended benefits taxes, and advance interest taxes levied under §§ 11-10-703 -- 11-10-708.
(B) The unemployment obligation assessment shall be based on the aggregate principal amount of bonds issued for nonrefunding purposes and shall be determined by multiplying the employer's contribution rate as described in §§ 11-10-704 and 11-10-705 and in effect on the date that the Governor issues a proclamation calling an election on the issuance of the bonds for employers with accounts as of such date and in effect as of the employer's liability date for employers establishing accounts after the date of the proclamation, by:
(i) Twenty-five percent (25%) if the aggregate principal amount of bonds issued is three hundred fifty million dollars ($350,000,000) or less;
(ii) Thirty percent (30%) if the aggregate principal amount of bonds issued is three hundred fifty million and one dollars ($350,000,001) to four hundred million dollars ($400,000,000);
(iii) Thirty-three and five-tenths percent (33.5%) if the aggregate principal amount of bonds issued is four hundred million and one dollars ($400,000,001) to four hundred fifty million dollars ($450,000,000); and
(iv) Thirty-seven and five-tenths percent (37.5%) if the aggregate principal amount of bonds issued is four hundred fifty million and one dollars ($450,000,001) to five hundred million dollars ($500,000,000).
(C) (i) The effective date of the unemployment obligation assessment shall be the first day of the calendar quarter immediately following the month in which the Secretary of State certifies the vote of the voters approving the unemployment obligation assessment and the issuance of the bonds under this subchapter.
(ii) The unemployment obligation assessment is effective until the end of the quarter immediately following the repayment of all bonds authorized under this subchapter.
(2) (A) This unemployment obligation assessment shall not be credited to the separate account of any employer.
(B) The unemployment obligation assessment shall be levied and collected in the same manner as contributions and shall be subject to the same penalty and interest, collection, impoundment, priority, lien, certificate of assessment, and assessment provisions and procedures under §§ 11-10-716 -- 11-10-722.
(b) (1) Receipts from the unemployment obligation assessment and any penalty and interest on the unemployment obligation assessment shall be deposited into the Unemployment Compensation Fund Clearing Account.
(2) At least once each month, deposits of the unemployment obligation assessment payment and any interest and penalty payments applicable to the unemployment obligation assessment shall be deposited into the Department of Workforce Services Bond Financing Trust Fund.
(c) Debt service on the bonds shall be paid in a timely manner and shall not be paid directly or indirectly by an equivalent reduction in unemployment contributions or taxes imposed under:
(1) Sections 11-10-701 -- 11-10-715; or
(2) Section 11-10-801 et seq.
(d) The unemployment obligation assessment may be used to:
(1) Repay the principal of and interest on advances from the federal trust fund under Title XII of the Social Security Act, 42 U.S.C. § 1321;
(2) Pay the costs of issuance of the bonds, including without limitation the costs of bond insurance or other credit enhancement;
(3) Pay unemployment benefits by depositing bond proceeds into the Unemployment Compensation Fund;
(4) Provide a debt service reserve; and
(5) Pay capitalized interest on the bonds for a period not to exceed two (2) years.
(e) The Director of the Department of Workforce Services shall promulgate rules to carry out the provisions of this section.
(f) Upon retirement of all bonds, the following shall be transferred to the Unemployment Compensation Fund:
(1) Surplus unemployment obligation assessment collections; and
(2) Delinquent taxes, penalties, or interest due under the unemployment obligation assessment.
Section: Previous 11-10-1005 11-10-1006 11-10-1007 11-10-1008 11-10-1009 11-10-1010 11-10-1011 11-10-1012 11-10-1013 11-10-1014 11-10-1015 11-10-1016 11-10-1017 11-10-1018 NextLast modified: November 15, 2016