MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Labor; Ways and Means

By: Representative Clark

House Bill 458

AN ACT TO CREATE A NEW SECTION TO BE CODIFIED AS SECTION 71-5-205, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR AN EMPLOYMENT SERVICE CONTRIBUTION BY ALL EMPLOYERS SUBJECT TO THE MISSISSIPPI EMPLOYMENT SECURITY LAW IN LIEU OF UNEMPLOYMENT FUND CONTRIBUTIONS; TO CREATE THE EMPLOYMENT SERVICE FUND AND TO DEDICATE SUCH EMPLOYMENT SERVICE CONTRIBUTIONS FOR THE SUPPORT OF EMPLOYMENT SERVICES; TO AMEND SECTION 71-5-351, MISSISSIPPI CODE OF 1972, TO PROVIDE WHEN SUCH EMPLOYMENT SERVICE CONTRIBUTIONS SHALL BE DUE BY EMPLOYERS; TO AMEND SECTION 71-5-353, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE RATE OF THE EMPLOYMENT SERVICE CONTRIBUTIONS; TO AMEND SECTION 71-5-355, MISSISSIPPI CODE OF 1972, TO LOWER THE MINIMUM CONTRIBUTION RATES TO THE UNEMPLOYMENT COMPENSATION FUND; TO AMEND SECTIONS 71-5-363, 71-5-365, 71-5-367, 71-5-369, 71-5-373, 71-5-375, 71-5-377, 71-5-379, 71-5-381 AND 71-5-383, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO AMEND SECTION 71-5-453, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FUNDS COLLECTED PURSUANT TO THE EMPLOYMENT SERVICE CONTRIBUTION PAID BY EMPLOYERS SHALL BE PAID INTO A CLEARING ACCOUNT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following provision shall be codified as Section 71-5-205, Mississippi Code of 1972:

71-5-205. (1) Effective January 1, 1998, the employment service contribution shall be applied at the rate of five one-hundredths of one percent (.05%) upon the wages, as defined by Section 71-5-11, of all employers; however, state boards, instrumentalities and political subdivisions of the State of Mississippi referred to in Sections 71-5-357 and 71-5-359, and nonprofit employers providing reimbursement to the commission for the unemployment fund under Section 71-5-357(a) shall not be affected by the employment service contribution. The employment service contribution provided for herein shall apply only to employers whose contribution rate, computed under Sections 71-5-353 and 71-5-355, is less than five and four-tenths percent (5.4%).

(2) There is created in the State Treasury a special fund, to be known as the "Employment Service Fund," which consists of all funds collected under the employment service contribution provided for in Section 71-5-353(3).

(3) All monies which are deposited in the Employment Service Fund are made available to the commission to be expended solely for the following purposes:

(a) To assist with the reemployment of unemployed workers using the most efficient and effective means of service delivery;

(b) To supplement basic employment security services, with special job search and claimant placement assistance designed to assist unemployment insurance claimants to obtain employment;

(c) To undertake any program or activity which furthers the goals of the Mississippi Employment Security Law;

(d) To provide employment services, such as recruitment, screening and referral of qualified workers, to growth industries and service areas in the economy in an effort to assist workers who have lost employment in a declining industry or service area;

(e) For the costs of administration and collection of the employment service contribution and fund.

(4) This section shall be repealed June 30, 2001.

Upon repeal of this section, any delinquent employment service contributions collected after June 30, 2001, and any other sums on deposit in the Employment Service Fund created by this section shall be deposited in the Special Employment Security Administration Fund and expended in accordance with the provisions of Section 71-5-114 providing for such fund and expenditures therefrom.

SECTION 2. Section 71-5-351, Mississippi Code of 1972, is amended as follows:

71-5-351. Contributions and employment service contributions shall accrue and become payable by each employer for each calendar year in which he is subject to this chapter. Such contributions and employment service contributions shall become due and be paid by each employer to the commission for the fund in monthly installments on or before the last day of the month next succeeding each month in which the contributions and employment service contributions accrue, except that the commission may by regulation make such contributions and employment service contributions due and payable quarterly instead of monthly. Such contributions and employment service contributions shall not be deducted, in whole or in part, from the wages of individuals in such employer's employ.

For purposes of payment of contributions and employment service contributions on remuneration paid to individuals, if two (2) or more related corporations concurrently employ the same individual and compensate such individual through a common paymaster which is one of such corporations, each such corporation shall be considered to have paid as remuneration to such individual only the amounts actually disbursed by it to such individual and shall not be considered to have paid as remuneration to such individual such amounts actually disbursed to such individual by another of such corporations.

In the payment of any contributions and employment service contributions, a fractional part of a cent shall be disregarded unless it amounts to One-half Cent (1/24) or more, in which case it shall be increased to One Cent (14).

For the purposes of this section and Section 71-5-353, and subsequent to December 31, 1977, and prior to January 1, 1983, wages shall not include that part of remuneration which, after remuneration equal to Six Thousand Dollars ($6,000.00) has been paid in a calendar year to an individual by an employer or his predecessor with respect to employment during any calendar year, is paid to such individual by such employer during such calendar year unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. On and after January 1, 1983, wages shall not include that part of remuneration which, after remuneration equal to Seven Thousand Dollars ($7,000.00) has been paid in a calendar year to an individual by an employer or his predecessor with respect to employment during any calendar year, is paid to such individual by such employer during such calendar year unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state employment fund. For the purposes of this subsection, the term "employment" shall include service constituting employment under any unemployment compensation law of another state.

Provided, however, that, absent evidence of willful or fraudulent attempt to avoid taxation, the effective date of liability of an employer or assessment of liability for covered employment against an employer shall not occur for any period preceding the three (3) calendar years before the date of registration or assessment, unless said three-year limitations period is waived by the employer.

SECTION 3. Section 71-5-353, Mississippi Code of 1972, is amended as follows:

71-5-353. (1) Each employer shall pay contributions equal to four percent (4%) of wages paid by him during each calendar year with respect to employment occurring through December 31, 1984, except as may be otherwise provided in Section 71-5-361, and except that each newly subject employer whose liability for contributions under the chapter becomes effective on and after January 1, 1980, and prior to January 1, 1985, shall pay contributions at the rate of one percent (1%) or the current minimum rate for eligible employers, whichever is greater, until his experience-rating record has been chargeable throughout not less than the twelve (12) consecutive calendar months ending on the computation date; thereafter his contribution rate shall be determined in accordance with the provisions of Section 71-5-355.

(2) From and after January 1, 1985, each employer shall pay contributions equal to five and four-tenths percent (5.4%) of wages paid by him during 1985 and each calendar year thereafter, except as may be otherwise provided in Section 71-5-361 and except that each newly subject employer whose liability for contributions under the chapter becomes effective on and after January 1, 1985, shall pay contributions at the rate of two and seven-tenths percent (2.7%) until his experience-rating record has been chargeable throughout not less than the twelve (12) consecutive calendar months ending on the computation date; thereafter his contribution rate shall be determined in accordance with the provisions of Section 71-5-355.

(3) From and after January 1, 1998, contribution rates assigned to employers by the commission, as computed or otherwise assigned under Sections 71-5-351, 71-5-353 and 71-5-355, shall be reduced by five one-hundredth of one percent (.05%). Such reduction shall apply only to employers whose contribution rate, computed under Sections 71-5-353 and 71-5-355, is less than five and four-tenths percent (5.4%). The reduction in contribution rates provided for herein shall not apply to state boards, instrumentalities and political subdivisions referred to in Sections 71-5-357 and 71-5-359 or to nonprofit employers providing reimbursement to the commission for the unemployment fund under Section 71-5-357(a).

This subsection (3) shall be repealed on December 31, 2000.

SECTION 4. Section 71-5-355, Mississippi Code of 1972, is amended as follows:

71-5-355. (1) As used in this section, the following words and phrases shall have the following meanings, unless the context clearly requires otherwise:

(a) "Tax year" means any period beginning on January 1 and ending on December 31 of a year.

(b) "Computation date" means June 30 of any calendar year immediately preceding the tax year during which the particular contribution rates are effective.

(c) "Effective date" means January 1 of the tax year.

(d) Except as hereinafter provided, "payroll" means the total of all wages paid for employment by an employer as defined in Section 71-5-11, subsection H, plus the total of all remuneration paid by such employer excluded from the definition of wages by Section 71-5-351. For the computation of modified rates, "payroll" means the total of all wages paid for employment by an employer as defined in Section 71-5-11, subsection H.

(e) For the computation of modified rates, "eligible employer" means an employer whose experience-rating record has been chargeable with benefits throughout the thirty-six (36) consecutive calendar-month period ending on the computation date, except that any employer who has not been subject to the Mississippi Employment Security Law for a period of time sufficient to meet the thirty-six (36) consecutive calendar-month requirement shall be an eligible employer if his experience-rating record has been chargeable throughout not less than the twelve (12) consecutive calendar-month period ending on the computation date. No employer shall be considered eligible for a contribution rate less than four percent (4%) with respect to any tax year prior to January 1, 1985, who has failed to file any two (2) quarterly reports within the qualifying period by September 30 following the computation date. No employer shall be considered eligible for a contribution rate less than five and four-tenths percent (5.4%) with respect to any tax year subsequent to December 31, 1984, who has failed to file any two (2) quarterly reports within the qualifying period by September 30 following the computation date.

(f) With respect to any tax year, "reserve ratio" means the ratio which the total amount available for the payment of benefits in the Unemployment Compensation Fund, excluding any amount which has been credited to the account of this state under Section 903 of the Social Security Act, as amended, and which has been appropriated for the expenses of administration pursuant to Section 71-5-457 whether or not withdrawn from such account, on November 1 of each calendar year bears to the aggregate of the taxable payrolls of all employers for the twelve (l2) calendar months ending on June 30 next preceding.

(g) "Modified rates" means the rates of employer contributions determined under the provisions of this chapter and the rates of newly subject employers, as provided in Section 71-5-353.

(h) For the computation of modified rates, "qualifying period" means a period of not less than the thirty-six (36) consecutive calendar months ending on the computation date throughout which an employer's experience-rating record has been chargeable with benefits; except that with respect to any eligible employer who has not been subject to this article for a period of time sufficient to meet the thirty-six (36) consecutive calendar-month requirement, "qualifying period" means the period ending on the computation date throughout which his experience-rating record has been chargeable with benefits, but in no event less than the twelve (12) consecutive calendar-month period ending on the computation date throughout which his experience-rating record has been so chargeable.

(i) The "exposure criterion" (EC) is defined as the cash balance of the Unemployment Compensation Fund which is available for the payment of benefits as of November 1 of each calendar year, divided by the total wages, exclusive of wages paid by all state agencies, all political subdivisions, reimbursable nonprofit corporations, and tax exempt public service employment, for the twelve-month period ending June 30 immediately preceding such date. The EC shall be computed to four (4) decimal places.

(j) The "cost rate criterion" (CRC) is defined as follows: Beginning with January 1974, the benefits paid for the twelve-month period ending December 1974 are summed and divided by the total wages for the twelve-month period ending on June 30, 1975. Similar ratios are computed by subtracting the earliest month's benefit payments and adding the benefits of the next month in the sequence and dividing each sum of twelve (12) months' benefits by the total wages for the twelve-month period ending on the June 30 which is nearest to the final month of the period used to compute the numerator. If December is the final month of the period used to compute the numerator, then the twelve-month period ending the following June 30 will be used for the denominator. The highest value of these ratios beginning with the ratio for benefits paid in calendar year 1974 is the cost rate criterion. The cost rate criterion shall be computed to four (4) decimal places. Benefits and total wages used in the computation of the cost rate criterion shall exclude all benefits and total wages applicable to state agencies, political subdivisions, reimbursable nonprofit corporations, and tax exempt PSE employment.

(k) "Size of fund index" (SOFI) is defined as the ratio of the EC to the CRC.

(l) For the tax years prior to January 1, 1985, no employer's contribution rate shall exceed four percent (4%), nor be less than one-tenth of one percent (.1%); for tax years subsequent to December 31, 1984, no employer's contribution rate shall exceed five and four-tenths percent (5.4%), nor be less than one-tenth of one percent (.1%). For tax years subsequent to December 31, 1992, no employer's contribution rate shall exceed five and four-tenths percent (5.4%), nor be less than four-tenths of one percent (.4%). However, from and after January 1, 1998, and continuing until repeal of Sections 71-5-205 and 71-5-353(3), no employer's contribution rate shall be less than four-tenths of one percent (.4%), unless such employer qualifies for a lower rate by operation of this section. In such event, the minimum rate of contribution shall be thirty-five one hundredths of one percent (.35%).

(2) Modified rates:

(a) For any tax year, when the reserve ratio on the preceding November 1, in the case of any tax year, equals or exceeds four percent (4%), the modified rates, as hereinafter prescribed, shall be in effect.

(b) Modified rates shall be determined for the tax year for each eligible employer on the basis of his experience-rating record in the following manner:

(i) The commission shall maintain an experience-rating record for each employer. Nothing in this chapter shall be construed to grant any employer or individuals performing services for him any prior claim or rights to the amounts paid by the employer into the fund.

(ii) Benefits paid to an eligible individual shall be charged against the experience-rating record of his base period employers in the proportion to which the wages paid by each base period employer bears to the total wages paid to the individual by all the base period employers, provided that benefits shall not be charged to an employer's experience-rating record if the commission finds that the individual:

1. Voluntarily left the employ of such employer without good cause attributable to the employer,

2. Was discharged by such employer for misconduct connected with his work,

3. Refused an offer of suitable work by such employer without good cause, and the commission further finds that such benefits are based on wages for employment for such employer prior to such voluntary leaving, discharge or refusal of suitable work, as the case may be, or

4. Had base period wages which included wages for previously uncovered services as defined in Section 71-5-511(e) to the extent that the Unemployment Compensation Fund is reimbursed for such benefits pursuant to Section 121 of P.L. 94-566,

5. Extended benefits paid under the provisions of Section 71-5-541 which are not reimbursable from federal funds shall be charged to the experience-rating record of base period employers,

6. Is still working for such employer on a regular part-time basis under the same employment conditions as hired. Provided, however, that benefits shall be charged against an employer if an eligible individual is paid benefits who is still working for such employer on a part-time "as-needed" basis,

7. Was hired to replace a United States serviceman or servicewoman called into active duty and was laid off upon the return to work by that serviceman or servicewoman, unless such employer is a state agency or other political subdivision or instrumentality of the state,

8. Was paid benefits during any week while in training with the approval of the commission, under the provisions of Section 71-5-513B, or for any week while in training approved under Section 236(a)(1) of the Trade Act of 1974, under the provisions of Section 71-5-513C.

(iii) The commission shall compute a benefit ratio for each eligible employer, which shall be the quotient obtained by dividing the total benefits charged to his experience-rating record during the period his experience-rating record has been chargeable, but not less than the twelve (12) consecutive calendar-month period nor more than the thirty-six (36) consecutive calendar-month period ending on the computation date, by his total taxable payroll for the same period on which all contributions due have been paid on or before the September 30 immediately following the computation date. Such benefit ratio shall be computed to the tenth of a percent (.1%), rounding any remainder to the next higher tenth.

For the calendar year 1988, the following conversion table shall be applied, and shall be designated "1988 Table":

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.1%

0.1 0.1

0.2 0.1

0.3 0.1

0.4 0.1

0.5 0.2

0.6 0.3

0.7 0.4

0.8 0.5

0.9 0.6

1.0 0.7

1.1 0.8

1.2 0.9

1.3 1.0

1.4 1.1

1.5 1.2

1.6 1.3

1.7 1.4

1.8 1.5

1.9 1.6

2.0 1.7

2.1 1.8

2.2 1.9

2.3 2.0

2.4 2.1

2.5 2.2

2.6 2.3

2.7 2.4

2.8 2.5

2.9 2.6

3.0 2.7

3.1 2.8

3.2 2.9

3.3 3.0

3.4 3.1

3.5 3.2

3.6 3.3

3.7 3.4

3.8 3.5

3.9 3.6

4.0 3.7

4.1 3.8

4.2 3.9

4.3 4.0

4.4 4.1

4.5 4.2

4.6 4.3

4.7 4.4

4.8 4.5

4.9 4.6

5.0 4.7

5.1 4.8

5.2 4.9

5.3 5.0

5.4 5.1

5.5 5.2

5.6 5.3

5.7 and above 5.4

For the calendar year 1992, the following conversion table shall be applied, and shall be designated "1992 Table":

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% -0.10%

0.1 -0.10

0.2 -0.10

0.3 0.10

0.4 0.20

0.5 0.30

0.6 0.40

0.7 0.50

0.8 0.60

0.9 0.70

1.0 0.80

1.1 0.90

1.2 1.00

1.3 1.10

1.4 1.20

1.5 1.30

1.6 1.40

1.7 1.50

1.8 1.60

1.9 1.70

2.0 1.80

2.1 1.90

2.2 2.00

2.3 2.10

2.4 2.20

2.5 2.30

2.6 2.40

2.7 2.50

2.8 2.60

2.9 2.70

3.0 2.80

3.1 2.90

3.2 3.00

3.3 3.10

3.4 3.20

3.5 3.30

3.6 3.40

3.7 3.50

3.8 3.60

3.9 3.70

4.0 3.80

4.1 3.90

4.2 4.00

4.3 4.10

4.4 4.20

4.5 4.30

4.6 4.40

4.7 4.50

4.8 4.60

4.9 4.70

5.0 4.80

5.1 4.90

5.2 5.00

5.3 5.10

5.4 5.20

5.5 5.30

5.6 and above 5.40

For the calendar year 1993, the following conversion table shall be applied, and shall be designated "1993 Table":

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% -0.60%

0.1 -0.50

0.2 -0.40

0.3 -0.30

0.4 -0.20

0.5 -0.10

0.6 0.00

0.7 0.10

0.8 0.20

0.9 0.30

1.0 0.40

1.1 0.50

1.2 0.60

1.3 0.70

1.4 0.80

1.5 0.90

1.6 1.00

1.7 1.10

1.8 1.20

1.9 1.30

2.0 1.40

2.1 1.50

2.2 1.60

2.3 1.70

2.4 1.80

2.5 1.90

2.6 2.00

2.7 2.10

2.8 2.20

2.9 2.30

3.0 2.40

3.1 2.50

3.2 2.60

3.3 2.70

3.4 2.80

3.5 2.90

3.6 3.00

3.7 3.10

3.8 3.20

3.9 3.30

4.0 3.40

4.1 3.50

4.2 3.60

4.3 3.70

4.4 3.80

4.5 3.90

4.6 4.00

4.7 4.10

4.8 4.20

4.9 4.30

5.0 4.40

5.1 4.50

5.2 4.60

5.3 4.70

5.4 4.80

5.5 4.90

5.6 5.00

5.7 5.10

5.8 5.20

5.9 5.30

6.0 and above 5.40

For the calendar year 1994, the following conversion table

shall be applied, and shall be designated "1994 Table":

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% -0.70%

0.1 -0.60

0.2 -0.50

0.3 -0.40

0.4 -0.30

0.5 -0.20

0.6 -0.10

0.7 0.00

0.8 0.10

0.9 0.20

1.0 0.30

1.1 0.40

1.2 0.50

1.3 0.60

1.4 0.70

1.5 0.80

1.6 0.90

1.7 1.00

1.8 1.10

1.9 1.20

2.0 1.30

2.1 1.40

2.2 1.50

2.3 1.60

2.4 1.70

2.5 1.80

2.6 1.90

2.7 2.00

2.8 2.10

2.9 2.20

3.0 2.30

3.1 2.40

3.2 2.50

3.3 2.60

3.4 2.70

3.5 2.80

3.6 2.90

3.7 3.00

3.8 3.10

3.9 3.20

4.0 3.30

4.1 3.40

4.2 3.50

4.3 3.60

4.4 3.70

4.5 3.80

4.6 3.90

4.7 4.00

4.8 4.10

4.9 4.20

5.0 4.30

5.1 4.40

5.2 4.50

5.3 4.60

5.4 4.70

5.5 4.80

5.6 4.90

5.7 5.00

5.8 5.10

5.9 5.20

6.0 5.30

6.1 and above 5.40

If for the calendar year 1995, or any calendar year thereafter, the size of fund index (SOFI), as defined in this section, shall have computed for such calendar year at 1.75 or above, for purposes of adjustment of the general experience rate for such calendar year, then Table 6 or one of the tables subsequent to Table 6 shall be applied, according to their provisions:

TABLE 1

ILLUSTRATES A .10% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.51 OR ABOVE BUT LESS THAN 1.55

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.20

0.4 0.30

0.5 0.40

0.6 0.50

0.7 0.60

0.8 0.70

0.9 0.80

1.0 0.90

1.1 1.00

1.2 1.10

1.3 1.20

1.4 1.30

1.5 1.40

1.6 1.50

1.7 1.60

1.8 1.70

1.9 1.80

2.0 1.90

2.1 2.00

2.2 2.10

2.3 2.20

2.4 2.30

2.5 2.40

2.6 2.50

2.7 2.60

2.8 2.70

2.9 2.80

3.0 2.90

3.1 3.00

3.2 3.10

3.3 3.20

3.4 3.30

3.5 3.40

3.6 3.50

3.7 3.60

3.8 3.70

3.9 3.80

4.0 3.90

4.1 4.00

4.2 4.10

4.3 4.20

4.4 4.30

4.5 4.40

4.6 4.50

4.7 4.60

4.8 4.70

4.9 4.80

5.0 4.90

5.1 5.00

5.2 5.10

5.3 5.20

5.4 5.30

5.5 and above 5.40

TABLE 2

ILLUSTRATES A .20% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.55 OR ABOVE BUT LESS THAN 1.60

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.20

0.5 0.30

0.6 0.40

0.7 0.50

0.8 0.60

0.9 0.70

1.0 0.80

1.1 0.90

1.2 1.00

1.3 1.10

1.4 1.20

1.5 1.30

1.6 1.40

1.7 1.50

1.8 1.60

1.9 1.70

2.0 1.80

2.1 1.90

2.2 2.00

2.3 2.10

2.4 2.20

2.5 2.30

2.6 2.40

2.7 2.50

2.8 2.60

2.9 2.70

3.0 2.80

3.1 2.90

3.2 3.00

3.3 3.10

3.4 3.20

3.5 3.30

3.6 3.40

3.7 3.50

3.8 3.60

3.9 3.70

4.0 3.80

4.1 3.90

4.2 4.00

4.3 4.10

4.4 4.20

4.5 4.30

4.6 4.40

4.7 4.50

4.8 4.60

4.9 4.70

5.0 4.80

5.1 4.90

5.2 5.00

5.3 5.10

5.4 5.20

5.5 5.30

5.6 and above 5.40

TABLE 3

ILLUSTRATES A .30% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.60 OR ABOVE BUT LESS THAN 1.65

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.20

0.6 0.30

0.7 0.40

0.8 0.50

0.9 0.60

1.0 0.70

1.1 0.80

1.2 0.90

1.3 1.00

1.4 1.10

1.5 1.20

1.6 1.30

1.7 1.40

1.8 1.50

1.9 1.60

2.0 1.70

2.1 1.80

2.2 1.90

2.3 2.00

2.4 2.10

2.5 2.20

2.6 2.30

2.7 2.40

2.8 2.50

2.9 2.60

3.0 2.70

3.1 2.80

3.2 2.90

3.3 3.00

3.4 3.10

3.5 3.20

3.6 3.30

3.7 3.40

3.8 3.50

3.9 3.60

4.0 3.70

4.1 3.80

4.2 3.90

4.3 4.00

4.4 4.10

4.5 4.20

4.6 4.30

4.7 4.40

4.8 4.50

4.9 4.60

5.0 4.70

5.1 4.80

5.2 4.90

5.3 5.00

5.4 5.10

5.5 5.20

5.6 5.30

5.7 and above 5.40

TABLE 4

ILLUSTRATES A .40% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.65 OR ABOVE BUT LESS THAN 1.70

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.20

0.7 0.30

0.8 0.40

0.9 0.50

1.0 0.60

1.1 0.70

1.2 0.80

1.3 0.90

1.4 1.00

1.5 1.10

1.6 1.20

1.7 1.30

1.8 1.40

1.9 1.50

2.0 1.60

2.1 1.70

2.2 1.80

2.3 1.90

2.4 2.00

2.5 2.10

2.6 2.20

2.7 2.30

2.8 2.40

2.9 2.50

3.0 2.60

3.1 2.70

3.2 2.80

3.3 2.90

3.4 3.00

3.5 3.10

3.6 3.20

3.7 3.30

3.8 3.40

3.9 3.50

4.0 3.60

4.1 3.70

4.2 3.80

4.3 3.90

4.4 4.00

4.5 4.10

4.6 4.20

4.7 4.30

4.8 4.40

4.9 4.50

5.0 4.60

5.1 4.70

5.2 4.80

5.3 4.90

5.4 5.00

5.5 5.10

5.6 5.20

5.7 5.30

5.8 and above 5.40

TABLE 5

ILLUSTRATES A .50% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.70 OR ABOVE BUT LESS THAN 1.75

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.20

0.8 0.30

0.9 0.40

1.0 0.50

1.1 0.60

1.2 0.70

1.3 0.80

1.4 0.90

1.5 1.00

1.6 1.10

1.7 1.20

1.8 1.30

1.9 1.40

2.0 1.50

2.1 1.60

2.2 1.70

2.3 1.80

2.4 1.90

2.5 2.00

2.6 2.10

2.7 2.20

2.8 2.30

2.9 2.40

3.0 2.50

3.1 2.60

3.2 2.70

3.3 2.80

3.4 2.90

3.5 3.00

3.6 3.10

3.7 3.20

3.8 3.30

3.9 3.40

4.0 3.50

4.1 3.60

4.2 3.70

4.3 3.80

4.4 3.90

4.5 4.00

4.6 4.10

4.7 4.20

4.8 4.30

4.9 4.40

5.0 4.50

5.1 4.60

5.2 4.70

5.3 4.80

5.4 4.90

5.5 5.00

5.6 5.10

5.7 5.20

5.8 5.30

5.9 and above 5.40

TABLE 6

ILLUSTRATES A .60% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.75 OR ABOVE BUT LESS THAN 1.80

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.10

0.8 0.20

0.9 0.30

1.0 0.40

1.1 0.50

1.2 0.60

1.3 0.70

1.4 0.80

1.5 0.90

1.6 1.00

1.7 1.10

1.8 1.20

1.9 1.30

2.0 1.40

2.1 1.50

2.2 1.60

2.3 1.70

2.4 1.80

2.5 1.90

2.6 2.00

2.7 2.10

2.8 2.20

2.9 2.30

3.0 2.40

3.1 2.50

3.2 2.60

3.3 2.70

3.4 2.80

3.5 2.90

3.6 3.00

3.7 3.10

3.8 3.20

3.9 3.30

4.0 3.40

4.1 3.50

4.2 3.60

4.3 3.70

4.4 3.80

4.5 3.90

4.6 4.00

4.7 4.10

4.8 4.20

4.9 4.30

5.0 4.40

5.1 4.50

5.2 4.60

5.3 4.70

5.4 4.80

5.5 4.90

5.6 5.00

5.7 5.10

5.8 5.20

5.9 5.30

6.0 and above 5.40

TABLE 7

ILLUSTRATES A .70% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.80 OR ABOVE BUT LESS THAN 1.85

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.10

0.8 0.10

0.9 0.20

1.0 0.30

1.1 0.40

1.2 0.50

1.3 0.60

1.4 0.70

1.5 0.80

1.6 0.90

1.7 1.00

1.8 1.10

1.9 1.20

2.0 1.30

2.1 1.40

2.2 1.50

2.3 1.60

2.4 1.70

2.5 1.80

2.6 1.90

2.7 2.00

2.8 2.10

2.9 2.20

3.0 2.30

3.1 2.40

3.2 2.50

3.3 2.60

3.4 2.70

3.5 2.80

3.6 2.90

3.7 3.00

3.8 3.10

3.9 3.20

4.0 3.30

4.1 3.40

4.2 3.50

4.3 3.60

4.4 3.70

4.5 3.80

4.6 3.90

4.7 4.00

4.8 4.10

4.9 4.20

5.0 4.30

5.1 4.40

5.2 4.50

5.3 4.60

5.4 4.70

5.5 4.80

5.6 4.90

5.7 5.00

5.8 5.10

5.9 5.20

6.0 5.30

6.1 and above 5.40

TABLE 8

ILLUSTRATES A .80% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.85 OR ABOVE BUT LESS THAN 1.90

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.10

0.8 0.10

0.9 0.10

1.0 0.20

1.1 0.30

1.2 0.40

1.3 0.50

1.4 0.60

1.5 0.70

1.6 0.80

1.7 0.90

1.8 1.00

1.9 1.10

2.0 1.20

2.1 1.30

2.2 1.40

2.3 1.50

2.4 1.60

2.5 1.70

2.6 1.80

2.7 1.90

2.8 2.00

2.9 2.10

3.0 2.20

3.1 2.30

3.2 2.40

3.3 2.50

3.4 2.60

3.5 2.70

3.6 2.80

3.7 2.90

3.8 3.00

3.9 3.10

4.0 3.20

4.1 3.30

4.2 3.40

4.3 3.50

4.4 3.60

4.5 3.70

4.6 3.80

4.7 3.90

4.8 4.00

4.9 4.10

5.0 4.20

5.1 4.30

5.2 4.40

5.3 4.50

5.4 4.60

5.5 4.70

5.6 4.80

5.7 4.90

5.8 5.00

5.9 5.10

6.0 5.20

6.1 5.30

6.2 and above 5.40

TABLE 9

ILLUSTRATES A .90% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.90 OR ABOVE BUT LESS THAN 1.95

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.10

0.8 0.10

0.9 0.10

1.0 0.10

1.1 0.20

1.2 0.30

1.3 0.40

1.4 0.50

1.5 0.60

1.6 0.70

1.7 0.80

1.8 0.90

1.9 1.00

2.0 1.10

2.1 1.20

2.2 1.30

2.3 1.40

2.4 1.50

2.5 1.60

2.6 1.70

2.7 1.80

2.8 1.90

2.9 2.00

3.0 2.10

3.1 2.20

3.2 2.30

3.3 2.40

3.4 2.50

3.5 2.60

3.6 2.70

3.7 2.80

3.8 2.90

3.9 3.00

4.0 3.10

4.1 3.20

4.2 3.30

4.3 3.40

4.4 3.50

4.5 3.60

4.6 3.70

4.7 3.80

4.8 3.90

4.9 4.00

5.0 4.10

5.1 4.20

5.2 4.30

5.3 4.40

5.4 4.50

5.5 4.60

5.6 4.70

5.7 4.80

5.8 4.90

5.9 5.00

6.0 5.10

6.1 5.20

6.2 5.30

6.3 and above 5.40

TABLE 10

ILLUSTRATES A 1.00% REDUCTION OF THE INDIVIDUAL EXPERIENCE RATE

BASED ON A SOFI FACTOR OF 1.95 OR ABOVE

A B

If Benefit Ratio is The Individual Experience Rate is

0.0% 0.10%

0.1 0.10

0.2 0.10

0.3 0.10

0.4 0.10

0.5 0.10

0.6 0.10

0.7 0.10

0.8 0.10

0.9 0.10

1.0 0.10

1.1 0.10

1.2 0.20

1.3 0.30

1.4 0.40

1.5 0.50

1.6 0.60

1.7 0.70

1.8 0.80

1.9 0.90

2.0 1.00

2.1 1.10

2.2 1.20

2.3 1.30

2.4 1.40

2.5 1.50

2.6 1.60

2.7 1.70

2.8 1.80

2.9 1.90

3.0 2.00

3.1 2.10

3.2 2.20

3.3 2.30

3.4 2.40

3.5 2.50

3.6 2.60

3.7 2.70

3.8 2.80

3.9 2.90

4.0 3.00

4.1 3.10

4.2 3.20

4.3 3.30

4.4 3.40

4.5 3.50

4.6 3.60

4.7 3.70

4.8 3.80

4.9 3.90

5.0 4.00

5.1 4.10

5.2 4.20

5.3 4.30

5.4 4.40

5.5 4.50

5.6 4.60

5.7 4.70

5.8 4.80

5.9 4.90

6.0 5.00

6.1 5.10

6.2 5.20

6.3 5.30

6.4 and above 5.40

(iv)1.a. For the tax years through December 31, 1984, the contribution rate for each eligible employer shall be the sum of two (2) rates: His individual experience rate in the range from zero percent (0%) to four percent (4%), plus a general experience rate. In no event shall the resulting rate be in excess of four percent (4%).

b. For the tax year beginning January 1, 1985, the contribution rate for each eligible employer shall be the sum of three (3) rates: His individual experience rate in the range from zero percent (0%) to five and four-tenths percent (5.4%), plus a general experience rate plus an employment service contribution of five one-hundredths of one percent (.05%) pursuant to Section 71-5-205. In no event shall the resulting rate be in excess of five and four-tenths percent (5.4%).

2. The employer's individual experience rate shall be equal to his benefit ratio as computed under subsection (2)(b)(iii) above.

3. The general experience rate shall be determined in the following manner: The commission shall determine annually, for the thirty-six (36) consecutive calendar-month period ending on the computation date, the amount of benefits which were not charged to the record of any employer and of benefits which were ineffectively charged to the employer's experience-rating record. For the purposes of subsection (2)(b)(iv)3, the term "ineffectively charged benefits" shall include:

a. For the tax years through December 31, 1984, the total of the amounts of benefits charged to the experience-rating records of all eligible employers which caused their benefit ratios to exceed four percent (4%), the total of the amounts of benefits charged to the experience-rating records of all ineligible employers which would cause their benefit ratios to exceed four percent (4%) if they were eligible employers, and the total of the amounts of benefits charged or chargeable to the experience-rating record of any employer who has discontinued his business or whose coverage has been terminated within such period; provided, that solely for the purposes of determining the amounts of ineffectively charged benefits as herein defined, a "benefit ratio" shall be computed for each ineligible employer, which shall be the quotient obtained by dividing the total benefits charged to his experience-rating record throughout the period ending on the computation date, during which his experience-rating record has been chargeable with benefits, by his total taxable payroll for the same period on which all contributions due have been paid on or before the September 30 immediately following the computation date; and provided further, that such benefit ratio shall be computed to the tenth of one percent (.1%) and any remainder shall be rounded to the next higher tenth. The ratio of the sum of these amounts to the taxable wages paid during the same period by all eligible employers whose benefit ratio did not exceed four percent (4%), computed to the next higher tenth of one percent (.1%), shall be the general experience rate.

b. For tax years subsequent to December 31, 1984, the total of the amounts of benefits charged to the experience-rating records of all eligible employers which caused their benefit ratios to exceed five and four-tenths percent (5.4%), the total of the amounts of benefits charged to the experience-rating records of all ineligible employers which would cause their benefit ratios to exceed five and four-tenths percent (5.4%) if they were eligible employers, and the total of the amounts of benefits charged or chargeable to the experience-rating record of any employer who has discontinued his business or whose coverage has been terminated within such period; provided, that solely for the purposes of determining the amounts of ineffectively charged benefits as herein defined, a "benefit ratio" shall be computed for each ineligible employer, which shall be the quotient obtained by dividing the total benefits charged to his experience-rating record throughout the period ending on the computation date, during which his experience-rating record has been chargeable with benefits, by his total taxable payroll for the same period on which all contributions due have been paid on or before the September 30 immediately following the computation date; and provided further, that such benefit ratio shall be computed to the tenth of one percent (.1%) and any remainder shall be rounded to the next higher tenth. The ratio of the sum of these amounts to the taxable wages paid during the same period by all eligible employers whose benefit ratio did not exceed five and four-tenths percent (5.4%), computed to the next higher tenth of one percent (.1%), shall be the general experience rate.

4. For tax years subsequent to December 31, 1979, the general experience rate shall be adjusted by use of the size of fund index factor. This factor may be positive or negative, and shall be determined as follows: From the target SOFI of 2.50, subtract the simple average of the current and preceding years' exposure criterions divided by the cost rate criterion. The result is then multiplied by the product of the CRC and total wages for the twelve-month period ending June 30 divided by the taxable wages for the twelve-month period ending June 30. This is the percentage positive or negative added to the general experience rate. This percentage is computed to one (1) decimal place, and rounded to the next higher tenth. For the year 1980, if the simple average of the EC for 1978 and 1979 divided by the CRC is less than 2.40, then the target SOFI will be defined as this amount plus one-third (1/3) the difference between 2.50 and the amount. If the simple average of the ECs for 1978 and 1979 divided by the CRC is greater than or equal to 2.40, then the target SOFI will be 2.50. If the target SOFI for 1980 is less than 2.50, the target SOFI for 1981 will be the simple average of the ECs for 1979 and 1980 divided by the CRC plus two-thirds (2/3) the difference between 2.50 and the simple average of the ECs for 1979 and 1980 divided by the CRC, provided the simple average of the ECs for 1979 and 1980 divided by the CRC is less than 2.40; otherwise, the target SOFI will be 2.50. For 1982, the target SOFI is 2.50; for 1983, 2.0; and for 1984, 1985, 1986, 1987, 1988 and thereafter, 1.5. The target SOFI will be computed to two (2) decimal places.

5. Notwithstanding any other provisions of subsection (2)(b)(iv), if the general experience rate for any tax year prior to January 1, 1980, as computed and adjusted on the basis of the reserve ratio, is a negative percentage, it shall be disregarded; and notwithstanding any other provisions of subsection (2)(b)(iv), if the general experience rate for any tax year subsequent to December 31, 1979, as computed and adjusted on the basis of the size of fund index is a negative percentage, it shall be disregarded.

6. For tax years prior to January 1, 1980, the commission shall include in its annual rate notice to employers a brief explanation of the elements of the general experience rate, and shall include in its regular publications an annual analysis of benefits not charged to the record of any employer, and of the benefit experience of employers by industry group whose benefit ratio exceeds two and seven-tenths percent (2.7%), and of any other factors which may affect the size of the general experience rate; and for tax years subsequent to December 31, 1979, the commission shall include in its annual rate notice to employers a brief explanation of the elements of the general experience rate, and shall include in its regular publications an annual analysis of benefits not charged to the record of any employer, and of the benefit experience of employers by industry group whose benefit ratio exceeds four percent (4%), and of any other factors which may affect the size of the general experience rate.

7. For tax years prior to January 1, 1980, the "excess payments adjustment rate" is for the purpose of replenishing the fund for benefit costs not otherwise recoverable because the general experience rate causes an employer's individual tax rate to exceed the maximum rate of two and seven-tenths percent (2.7%). The "excess payments adjustment rate" shall be determined annually by the commission in the following manner: Add each eligible employer's individual experience rate plus the general experience rate. For those eligible employers whose individual experience rate plus the general experience rate would have exceeded two and seven-tenths percent (2.7%) except for the limitation on the maximum tax rate, multiply each such employer's taxable payroll during the same period times the percentage by which such combined rate would exceed two and seven-tenths percent (2.7%). Add the resulting amounts together to get the total "excess payments." The ratio of the total "excess payments" to the total taxable wages paid, computed to the next higher tenth, during the same period by those eligible employers whose combined rate does not exceed the maximum rate of two and seven-tenths percent (2.7%) shall be the "excess payments adjustment rate." This rate shall be added to the tax rate of each eligible employer whose tax rate, when his individual experience rate is added to the general experience rate, does not exceed the maximum rate; provided, however, that in no event may the "excess payments adjustment rate" cause an employer's combined tax rate to exceed two and seven-tenths percent (2.7%); provided further, that there will not be an "excess payments adjustment rate" for any taxable year that the general experience rate, as computed in accordance with subsection (2)(b)(iv)3, above, is five-tenths percent (.5%) or less.

(v) When any employing unit in any manner succeeds to or acquires the organization, trade, business or substantially all the assets thereof of an employer, excepting any assets retained by such employer incident to the liquidation of his obligations, whether or not such acquiring employing unit was an employer within the meaning of Section 71-5-11, subsection H, prior to such acquisition, and continues such organization, trade or business, the experience-rating and payroll records of the predecessor employer shall be transferred as of the date of acquisition to the successor employer for the purpose of rate determination.

(vi) When any employing unit succeeds to or acquires a distinct and severable portion of an organization, trade or business, the experience-rating and payroll records of such portion, if separately identifiable, shall be transferred to the successor upon:

1. The mutual consent of the predecessor and the successor,

2. Approval of the commission,

3. Continued operation of the transferred portion by the successor after transfer, and

4. The execution and the filing with the commission by the predecessor employer of a waiver relinquishing all rights to have the experience-rating and payroll records of the transferred portion used for the purpose of determining modified rates of contribution for such predecessor.

(vii) If the successor was an employer subject to this chapter prior to the date of acquisition, it shall continue to pay contributions at the rate applicable to it from the date the acquisition occurred until the end of the then current tax year. If the successor was not an employer prior to the date of acquisition, it shall pay contributions at the rate applicable to the predecessor or, if more than one (1) predecessor and the same rate is applicable to both, the rate applicable to the predecessor or predecessors, from the date the acquisition occurred until the end of the then current tax year. If the successor was not an employer prior to the date the acquisition occurred and simultaneously acquires the businesses of two (2) or more employers to whom different rates of contributions are applicable, it shall pay contributions from the date of the acquisition until the end of the current tax year at a rate computed on the basis of the combined experience-rating and payroll records of the predecessors as of the computation date for such tax year. In all cases the rate of contributions applicable to such successor for each succeeding tax year shall be computed on the basis of the combined experience-rating and payroll records of the successor and the predecessor or predecessors.

(viii) The commission shall notify each employer quarterly of the benefits paid and charged to his experience-rating record; and such notification, in the absence of an application for redetermination filed within thirty (30) days after the date of the mailing of such notice, shall be final, conclusive and binding upon the employer for all purposes. A redetermination, made after notice and opportunity for a fair hearing, by a hearing officer designated by the commission who shall consider and decide these and related applications and protests; and the finding of fact in connection therewith may be introduced into any subsequent administrative or judicial proceedings involving the determination of the rate of contributions of any employer for any tax year, and shall be entitled to the same finality as is provided in this subsection with respect to the findings of fact in proceedings to redetermine the contribution rate of an employer.

(ix) The commission shall notify each employer of his rate of contribution as determined for any tax year as soon as reasonably possible after November 1 of the preceding year. Such determination shall be final, conclusive and binding upon such employer unless, within thirty (30) days after the date of the mailing of such notice to his last known address, the employer files with the commission an application for review and redetermination of his contribution rate, setting forth his reasons therefor. If the commission grants such review, the employer shall be promptly notified thereof and shall be afforded an opportunity for a fair hearing by a hearing officer designated by the commission who shall consider and decide these and related applications and protests; but no employer shall be allowed, in any proceeding involving his rate of contributions or contribution liability, to contest the chargeability to his account of any benefits paid in accordance with a determination, redetermination or decision pursuant to Sections 71-5-515 through 71-5-533 except upon the ground that the services on the basis of which such benefits were found to be chargeable did not constitute services performed in employment for him, and then only in the event that he was not a party to such determination, redetermination, decision or to any other proceedings provided in this chapter in which the character of such services was determined. The employer shall be promptly notified of the denial of this application or of the redetermination, both of which shall become final unless, within ten (10) days after the date of mailing of notice thereof, there shall be an appeal to the commission itself. Any such appeal shall be on the record before said designated hearing officer, and the decision of said commission shall become final unless, within thirty (30) days after the date of mailing of notice thereof to the employer's last known address, there shall be an appeal to the Circuit Court of the First Judicial District of Hinds County, Mississippi, in accordance with the provisions of law with respect to review of civil causes by certiorari.

SECTION 5. Section 71-5-363, Mississippi Code of 1972, is amended as follows:

71-5-363. Contributions and employment service contributions unpaid on the date on which they are due and payable shall bear interest at the rate of one percent (1%) per month from and after such date until payment plus accrued interest is received by the commission, provided that the commission may prescribe fair and reasonable general rules pursuant to which such interest shall not accrue during the first calendar year that any employer is subject to this chapter. Interest collected pursuant to this section shall be paid into the special employment security administration fund established by Section 71-5-114.

SECTION 6. Section 71-5-365, Mississippi Code of 1972, is amended as follows:

71-5-365. If any employer fails to make and file any report as and when required by the terms and provisions of this chapter or by any rule or regulation of the commission for the purpose of determining the amount of contributions and employment service contributions due by him under this chapter, or if any report which has been filed is deemed by the executive director to be incorrect or insufficient, and such employer, after having been given written notice by mail by the executive director to file such report, or a corrected or sufficient report, as the case may be, shall fail to file such report within fifteen (15) days after the date of the mailing of such notice, the executive director may (a) determine the amount of contributions and employment service contributions due from such employer on the basis of such information as may be readily available to him, which said determination shall be prima facie correct, (b) assess such employer with the amount of contribution and employment service contributions so determined, to which amount may be added and assessed by the executive director in his discretion, as damages, an amount equal to ten percent (10%) of said amount, and (c) immediately give written notice by mail to such employer of such determination, assessment, and damages, if any, added and assessed, demanding payment of same together with interest, as herein provided, on the amount of contributions and employment service contributions from the date when same were due and payable. Such determination and assessment by the executive director shall be final at the expiration of fifteen (15) days from the date of the mailing of such written notice thereof demanding payment, unless such employer shall have filed with the commission a written protest and petition for a hearing, specifying his objections thereto. Upon receipt of such petition within the fifteen (15) days allowed, the commission shall fix the time and place for a hearing and shall notify the petitioner thereof. At any hearing held before the commission as herein provided, evidence may be offered to support such determination and assessment or to prove that it is incorrect, and the commission shall have all the power provided in Sections 71-5-137 and 71-5-139. Immediately after such hearing a final decision in the matter shall be made by the commission, and any contributions and employment service contributions or deficiencies in contributions and employment service contributions found and determined by the commission to be due shall be assessed and paid, together with interest, within fifteen (15) days after notice of such final decision and assessment, and demand for payment thereof by the commission shall have been mailed to such employer.

Sixty (60) days after the due date of the contributions and employment service contributions, together with interest and damages, or upon issuance of a warrant, whichever occurs first, the commission, in its discretion, may assess an additional sum not exceeding one hundred percent (100%) of the amount of the unpaid contributions and employment service contributions due as damages for failure to pay.

SECTION 7. Section 71-5-367, Mississippi Code of 1972, is amended as follows:

71-5-367. If an employer shall file a report in proper form and in proper amount, but shall fail to pay the amount of contributions and employment service contributions shown to be due thereby at the time of such filing, or if an employer shall fail to pay any assessment as provided and made under Section 71-5-365 within fifteen (15) days after such assessment has become final as herein provided, the commission may issue a warrant under its official seal, directed to the sheriff of any county of the state, commanding him to levy upon and sell the real and personal property of such employer as has defaulted in the payment of such contributions, employment service contributions or other assessments, which may be found within his county, for the payment of the amount thereof, together with interest, damages, if any, assessed for failure to make and file a report or a corrected or sufficient report, and an additional sum not exceeding one hundred percent (100%) of the amount of the unpaid contributions and employment service contributions due, in the discretion of the commission, as damages for failure to pay, if not already assessed under Section 71-5-365 and the costs of executing the warrant and to return such warrant to the commission, and to pay to it the money collected by virtue thereof on the date specified therein. The sheriff shall, within five (5) days after the receipt of the warrant, file with the clerk of the circuit court of his county a copy thereof. Such clerk shall enter in the judgment roll, in the column for judgment debtors, the name of the employer mentioned in the warrant and, in appropriate columns, the amount of contributions, employment service contributions, interest, and damages for which the warrant is issued and the date when such copy is filed. Thereupon the amount of such warrant so filed and entered shall become a lien upon the title to and interest in all real and personal property, including choses in action against negotiable instruments not past due, of the employer against whom the warrant is issued in the same manner as a judgment duly enrolled in the office of such clerk. The sheriff shall proceed upon the warrant in the same manner and with like effect as that provided by law in respect to executions issued against property upon judgments or in attachment proceedings of a court of record, and the remedies by garnishment shall apply; and for his services in executing the warrant the sheriff shall be entitled to the same fees, which he may collect in the same manner.

On the suggestion of the commission, in writing, that any person is indebted to an employer named in any warrant which has been entered on the judgment roll in the office of the circuit clerk of any county, or has property of such employer in his hands, or knows of some other person who is so indebted, or who has effects or property of such employer in his hands, it shall be the duty of the clerk of the circuit court of such county to issue a writ of garnishment directed to the sheriff or proper officer, commanding him to summon such person as garnishee to appear at a term of the circuit court of said county, or a term of the county court, as in cases provided by law for garnishment upon the judgments of such court, to answer accordingly. The said circuit court or county court, as the case may be, shall assume full jurisdiction over the subject matter and the parties, and all the provisions of law with respect to garnishment proceedings instituted in the circuit court under Sections 11-35-1 through 11-35-61 of the Mississippi Code of 1972 shall be applicable as far as possible thereto.

SECTION 8. Section 71-5-369, Mississippi Code of 1972, is amended as follows:

71-5-369. If the commission has just cause to believe and does believe that the collection of contributions or employment service contributions from an employer will be jeopardized by delay, it may assess such contributions and employment service contributions immediately, together with interest and other amounts provided by this chapter, and may immediately issue a jeopardy warrant under its official seal, directed to the sheriff of any county of said state. The sheriff shall, immediately upon receipt of such jeopardy warrant, file with the clerk of the circuit court of his county a copy thereof, and thereafter both the clerk and the sheriff shall proceed in accordance with the provisions of Section 71-5-367.

SECTION 9. Section 71-5-373, Mississippi Code of 1972, is amended as follows:

71-5-373. An employer liable for contributions or employment service contributions under the provisions of this chapter who fails to make and file his returns and reports as required, or who fails to pay any contributions or employment service contributions when due under the provisions of this chapter, shall forfeit his right to do business in this state until he complies with all the provisions of this chapter and until he enters into a bond with sureties, to be approved by the commission, in an amount not to exceed all contributions and employment service contributions estimated to become due by said employer under the provisions of this chapter for any three-month period, conditioned to comply with the provisions of this chapter, and to pay all contributions and employment service contributions legally due or to become due by him. The commission may proceed by injunction to prevent the continuance of said business, and any temporary injunction enjoining the continuance of such business shall be granted without notice by any judge or chancellor now authorized by law to grant injunctions.

SECTION 10. Section 71-5-375, Mississippi Code of 1972, is amended as follows:

71-5-375. The contributions and employment service contributions required by this chapter shall be a lien upon the property of any employer subject to its provisions who shall sell out his business or stock of goods, or who shall quit business, or whose property used or acquired in the business shall be sold under voluntary conveyance or under foreclosure, execution, attachment, distraint, or other judicial proceedings. Such employer shall, within ten (10) days before the happening of any of the above contingencies, be required to file such reports as the commission shall prescribe and to pay the contributions and employment service contributions required by this chapter with respect to wages payable for employment up to the date of the happening of such contingency. The purchaser or successor in business shall withhold sufficient of the purchase money to cover the amount of contributions and employment service contributions due and unpaid, until such time as such employer shall produce a receipt from the commission showing that the contributions and employment service contributions have been paid or a certificate that no contributions or employment service contributions are due. If such purchaser or successor shall fail to withhold purchase money as above provided, and the contributions or employment service contributions shall not be paid within the ten (10) days specified above, such purchaser or successor shall be personally liable for the payment of the contributions or employment service contributions accrued and unpaid on account of the operation of the business by the former owner.

SECTION 11. Section 71-5-377, Mississippi Code of 1972, is amended as follows:

71-5-377. In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of this state, including any receivership, assignment for benefit of creditors, adjudicated insolvency, composition, or similar proceedings, contributions and employment service contributions then or thereafter due shall be paid in full prior to all other claims except taxes, but on a parity with claims for wages of not more than Two Hundred Fifty Dollars ($250.00) to each claimant, earned within six (6) months of the commencement of the proceedings. In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposals, or composition under the Federal Bankruptcy Act of 1898, as amended, contributions and employment service contributions then or thereafter due shall be entitled to such priority as is provided therein for taxes due and owing this state.

SECTION 12. Section 71-5-379, Mississippi Code of 1972, is amended as follows:

71-5-379. If, after due notice, an employer defaults in any payment of contributions, employment service contributions or interest thereon, the amount due may be collected by civil action in the name of the commission, and this remedy shall be in addition to such other remedies as may be herein provided or otherwise provided by law. An employer adjudged in default shall pay the costs of such action. Civil actions brought under this section to collect contributions, employment service contributions or interest thereon from an employer shall be heard by the court at the earliest possible date, and shall be entitled to preference upon the calendar of the court over all other civil actions except petitions for judicial review of claims for benefits under this chapter.

SECTION 13. Section 71-5-381, Mississippi Code of 1972, is amended as follows:

71-5-381. No injunction shall be awarded by any court or judge to restrain the collection of contributions or employment service contributions required by this chapter or to restrain the enforcement of this chapter. The provisions of Section 11-13-11 shall not apply to contributions or employment service contributions required by this chapter.

SECTION 14. Section 71-5-383, Mississippi Code of 1972, is amended as follows:

71-5-383. The commission is authorized and empowered to refund, without interest, such contributions, employment service contributions, interest and penalties as it may determine were paid erroneously by an employer, or may make or authorize an adjustment thereof in connection with subsequent contribution or employment service contribution payments, provided the employer shall make written application for such refund or adjustment within three (3) years to the last day of the calendar year in which the services of individuals in employment, with respect to which such contributions and employment service contributions were erroneously paid, were performed. For like cause and within the same period, adjustment or refund may be made on the commission's own initiative.

SECTION 15. Section 71-5-453, Mississippi Code of 1972, is amended as follows:

71-5-453. The State Treasurer shall be the ex officio treasurer and custodian of the fund, and shall administer such fund in accordance with the directions of the commission, and shall issue his warrants upon it in accordance with such regulations as the commission shall prescribe. He shall maintain within the fund three (3) separate accounts: (a) a clearing account, (b) an unemployment trust fund account, and (c) a benefit account. All monies payable to the fund, upon receipt thereof by the commission, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to Section 71-5-383 may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commission. Transfers pursuant to Section 71-5-114 of all interest, penalties and damages collected shall be made to the special employment security administration fund as soon as practicable after the end of each calendar quarter. Funds collected pursuant to the employment service contribution made, as provided by Section 71-5-205, shall be deposited in the clearing account only for the purpose of transfer to the Employment Service Fund and shall be expended in accordance with the provisions of Section 71-5-205. All other monies in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States of America to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to Section 904 of the Social Security Act, as amended, any provisions of law in this state relating to the deposit, administration, release or disbursement of monies in the possession or custody of this state to the contrary notwithstanding. The benefit account shall consist of all monies requisitioned from this state's account in the unemployment trust fund. Except as herein otherwise provided, monies in the clearing and benefit accounts may be deposited by the treasurer, under the direction of the commission, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund. The State Treasurer shall be liable on his official bond for the faithful performance of his duties in connection with the unemployment compensation fund under this chapter.

SECTION 16. Nothing in this act shall be construed to repeal or otherwise affect any exemptions previously provided under the Mississippi Employment Security Law to any employer or the Mississippi Employment Security Commission.

SECTION 17. This act shall take effect and be in force from and after July 1, 1998.