Chapter 13-144-14

ARTICLE 14

RELATING TO EMPLOYMENT SECURITY JOB DEVELOPMENT FUND ASSESSMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

coordination, and training activities to promote workforce development and business

development as established by the human resource investment council;

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

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

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

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

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

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

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

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

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

labor and training; and

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

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

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

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

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

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

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

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

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

security fund for the payment of benefits.

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

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

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

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

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

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

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

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

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

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

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

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

interest that accrues on that debt.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the full repayment occurs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

costs and printing disbursements as fixed by the court.

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

employment security administrative funds in each of the following cases:

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

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

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

awarded under a prior administrative or judicial decision;

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

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

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

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

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

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

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

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

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

fund;

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

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

42 U.S.C. section 1103.

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

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

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

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

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

SECTION 5. This article shall take effect upon passage.