MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Workforce Development; Appropriations
By: Representatives Bell (21st), Summers
AN ACT TO AMEND SECTION 71-5-353, MISSISSIPPI CODE OF 1972, TO CREATE THE MISSISSIPPI K-12 WORKFORCE DEVELOPMENT GRANT PROGRAM FUND IN THE STATE TREASURY WHICH SHALL CONSIST OF FUNDS COLLECTED FROM THE MISSISSIPPI K-12 WORKFORCE DEVELOPMENT GRANT PROGRAM CONTRIBUTIONS AND ANY OTHER MONIES THAT MAY BE APPROPRIATED TO IT FROM THE LEGISLATURE; TO PROVIDE THAT THE STATE WORKFORCE INVESTMENT BOARD CONTRIBUTIONS THAT WERE BEING DEPOSITED INTO THE STATE WORKFORCE INVESTMENT BOARD BANK ACCOUNT SHALL NOW BE CONTRIBUTIONS FOR THE MISSISSIPPI K-12 WORKFORCE DEVELOPMENT GRANT PROGRAM AND DEPOSITED INTO THE MISSISSIPPI K-12 WORKFORCE DEVELOPMENT GRANT PROGRAM FUND; TO PROVIDE THAT ADMINISTRATIVE FEE COLLECTED FOR THE TRAINING PROVIDED USING THE MISSISSIPPI WORKFORCE ENHANCEMENT TRAINING AND MISSISSIPPI WORKS FUNDS MAY NOT BE MORE THAN FIVE PERCENT; TO PROVIDE THAT THE MISSISSIPPI DEPARTMENT OF EMPLOYMENT SECURITY SHALL BE THE FISCAL AGENT FOR ALL FUNDS APPROPRIATED TO IT FOR USE BY THE OFFICE OF WORKFORCE DEVELOPMENT; TO CREATE A NEW SECTION THAT ESTABLISHES THE MISSISSIPPI K-12 WORKFORCE DEVELOPMENT GRANT PROGRAM; TO PROVIDE THAT THE PURPOSE FOR THE GRANT PROGRAM SHALL BE FOR CONSTRUCTING, REMODELING, PURCHASING OR UPGRADING EQUIPMENT OR OTHERWISE PROVIDING SUPPORT TO CAREER TECHNICAL CENTERS AT THE K-12 EDUCATION LEVEL; TO PROVIDE HOW THE PROGRAM SHALL BE FUNDED; TO PROVIDE HOW A SCHOOL MAY APPLY FOR A GRANT; TO PROVIDE THAT MAXIMUM AMOUNT OF FUNDS APPROPRIATED TO THE PROGRAM THAT MAY BE USED FOR ADMINISTERING THE PROGRAM; TO PROVIDE THE REPORTING REQUIREMENTS OF THE PROGRAM; TO AMEND SECTION 37-153-7, MISSISSIPPI CODE OF 1972, TO REVISE THE REPORTING REQUIREMENTS OF THE OFFICE OF WORKFORCE DEVELOPMENT; TO PROVIDE SPECIFIC POWERS AND DUTIES FOR THE OFFICE OF WORKFORCE DEVELOPMENT; TO AMEND SECTIONS 71-5-355 AND 71-5-453, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; TO BRING FORWARD SECTION 37-73-3, MISSISSIPPI CODE OF 1972, WHICH CREATES THE CAREER COACHING PILOT PROGRAM, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 71-5-353, Mississippi Code of 1972, is amended as follows:
71-5-353. (1) (a) Each employer shall pay unemployment insurance contributions equal to five and four-tenths percent (5.4%) of taxable wages paid by him each calendar year, except as may be otherwise provided in Section 71-5-361 and except that each newly subject employer shall pay unemployment insurance contributions at the rate of one percent (1%) of taxable wages, for his first year of liability, one and one-tenth percent (1.1%) of taxable wages for his second year of liability, and one and two-tenths percent (1.2%) of taxable wages for his third and subsequent years of liability unless the employer's experience-rating record has been chargeable throughout at least the twelve (12) consecutive calendar months ending on the most recent computation date at the time the rate for a year is determined; thereafter the employer's contribution rate shall be determined in accordance with the provisions of Section 71-5-355.
(b) Notwithstanding the newly subject employer contribution rate provided for in paragraph (a) of this subsection, the contribution rate of all newly subject employers shall be reduced by seven one-hundredths of one percent (.07%) for calendar year 2013 only. The contribution rate of all newly subject employers shall be reduced by three one-hundredths of one percent (.03%) for calendar year 2014 only. For purposes of this chapter, "newly subject employers" means employers whose unemployment insurance experience-rating record has not been chargeable throughout at least the twelve (12) consecutive calendar months ending on the most recent computation date at the time the contribution rate for a year is determined.
(2) (a) (i) There is hereby
created in the Treasury of the State of Mississippi special funds to be known as
the "Mississippi Workforce Enhancement Training Fund" * * *, the "Mississippi Works Fund"
and the "Mississippi K-12 Workforce Development Grant Program Fund"
which consist of funds collected pursuant to subsection (3) of this section and
any other monies that may be appropriated to the funds from the Legislature.
(ii) Funds collected shall initially be deposited into the Mississippi Department of Employment Security bank account for clearing contribution collections and subsequently appropriate amounts shall be transferred to the Mississippi Workforce Investment and Training Fund Holding Account described in Section 71-5-453. In the event any employer pays an amount insufficient to cover the total contributions due, the amounts due shall be satisfied in the following order:
1. Unemployment contributions;
2. Mississippi
Workforce Enhancement Training contributions, * * * Mississippi K-12 Workforce
Development Grant Program contributions and the Mississippi Works contributions,
known collectively as the Mississippi Workforce Investment and Training contributions,
on a pro rata basis;
3. Interest and damages; then
4. Legal and processing costs.
The amount of unemployment insurance contributions due for any period will be the amount due according to the actual computations unless the employer is participating in the MLPP. In that event, the amount due is the MLPP amount computed by the department.
Cost of collection and administration
of the Mississippi Workforce Enhancement Training contribution, the * * * Mississippi K-12 Workforce
Development Grant Program contribution and the Mississippi Works contribution
shall be allocated based on a plan approved by the United States Department of Labor
(USDOL). The Mississippi Community College Board shall pay the cost of collecting
the Mississippi Workforce Enhancement Training contributions, the * * * Office of Workforce
Development shall pay the cost of collecting the * * * Mississippi K-12 Workforce
Development Grant Program contributions and the Mississippi Department of Employment
Security shall pay the cost of collecting the Mississippi Works contributions.
Payments shall be made semiannually with the cost allocated to each based on a USDOL
approved plan on a pro rata basis, for periods ending in June and December of each
year. Payment shall be made by each organization to the department no later than
sixty (60) days after the billing date. Cost shall be allocated under the USDOL's
approved plan and in the same ratio as each contribution type represents to the
total authorized by subparagraph (ii)2 of this paragraph to be collected for the
period.
(b) Mississippi Workforce
Enhancement Training contributions and * * * Mississippi K-12 Workforce
Development Grant Program contributions shall be distributed * * *
for calendar years * * * after calendar year 2014 as
follows, ninety-three and seventy-five one-hundredths percent (93.75%) shall
be distributed to the Mississippi Workforce Enhancement Training Fund and the remainder
shall be distributed to the * * * Mississippi
K-12 Workforce Development Grant Program Fund;
* * *
(c) All contributions collected
for the State Workforce Enhancement Training Fund, the * * * Mississippi K-12
Workforce Development Grant Program Fund and the Mississippi Works Fund will
be initially deposited into the Mississippi Department of Employment Security bank
account for clearing contribution collections and subsequently transferred to the
Workforce Investment and Training Holding Account and will be held by the Mississippi
Department of Employment Security in such account for a period of not less than
thirty (30) days. After such period, the Mississippi Workforce Enhancement Training
contributions shall be transferred to the Mississippi Community College Board Treasury
Account, with oversight provided by the Mississippi Office of Workforce Development,
the * * *
Mississippi K-12 Workforce Development Grant Program contributions shall
be transferred to the Mississippi K-12 Workforce Development Grant Program Treasury
Account and the Mississippi Works contributions shall be transferred to the
Mississippi Department of Employment Security Mississippi Works Treasury Account.
The Mississippi K-12 Workforce Development Grant Program contributions and the
Mississippi Works contributions shall be transferred in the same ratio as each
contribution type represents to the total authorized by paragraph (a)(ii)2 of this
subsection to be collected for the period and within the time frame determined by
the department; however, except in cases of extraordinary circumstances, these funds
shall be transferred within fifteen (15) days. Interest earnings or interest credits
on deposit amounts in the Workforce Investment and Training Holding Account shall
be retained in the account to pay the banking costs of the account. If after the
period of twelve (12) months interest earnings less banking costs exceeds Ten Thousand
Dollars ($10,000.00), such excess amounts shall be transferred to the respective
accounts within thirty (30) days following the end of each calendar year on the
basis described in paragraph (b) of this subsection. Interest earnings and/or interest
credits for the * * * Mississippi K-12 Workforce Development Grant Program
funds shall be used for the payment of banking costs and excess amounts shall be
used in accordance with the rules and regulations of the * * *
Mississippi K-12 Workforce Development Grant Program created in Section 2 of
this act.
(d) All enforcement procedures
for the collection of delinquent unemployment contributions contained in Sections
71-5-363 through 71-5-383 shall be applicable in all respects for collections of
delinquent unemployment insurance contributions designated for the Unemployment
Compensation Fund, the Mississippi Workforce Enhancement Training Fund, the * * * Mississippi
K-12 Workforce Development Grant Program Fund and the Mississippi Works Fund.
(e) (i) Except as otherwise provided for in this subparagraph (i), all monies deposited into the Mississippi Workforce Enhancement Training Fund Treasury Account shall be directed by the Mississippi Office of Workforce Development, in collaboration with the Mississippi Community College Board, in accordance with the Workforce Training Act of 1994 (Section 37-153-1 et seq.) and under policies approved by the Mississippi Office of Workforce Development for the following purposes: to provide training in collaboration with the Mississippi Community College Board and individual community and junior colleges to employers and employees in order to enhance employee productivity. Such training may be subject to a minimal administrative fee of not more than five percent (5%) to be paid from the Mississippi Workforce Enhancement Training Fund as established by the Office of Workforce Development. The initial priority of these funds shall be for the benefit of existing businesses located within the state. Employers may request training for existing employees and/or newly hired employees from the Mississippi Office of Workforce Development. The office, in consultation with the Mississippi Community College Board, will be responsible for approving the training. A portion of the funds collected for the Mississippi Workforce Enhancement Training Fund shall be used for the development of performance measures to measure the effectiveness of the use of the Mississippi Workforce Enhancement Training Fund dollars. These performance measures shall be uniform for all training projects and shall be reported to the Governor, Lieutenant Governor, Speaker of the House, and members of the Legislature. Nothing in this section or elsewhere in law shall be interpreted as giving the Office of Workforce Development or State Workforce Investment Board authority to direct the Mississippi Community College Board or individual community or junior colleges on how to expend other funds, aside from funds appropriated to the Mississippi Workforce Enhancement Training Fund and Mississippi Works Fund, appropriated or received for workforce training. The Mississippi Office of Workforce Development, Mississippi Community College Board, individual community or junior colleges, State Workforce Investment Board and other agencies implementing or coordinating state-funded workforce development programs under state law shall cooperate with each other to promote effective workforce training in Mississippi, under the direction of the office. Any subsequent changes to these performance measures shall also be reported to the Governor, Lieutenant Governor, Speaker of the House, and members of the Legislature. A performance report for each training project and community college, based upon these measures, shall be submitted annually to the Governor, Lieutenant Governor, Speaker of the House, and members of the Legislature.
(ii) Except as otherwise
provided in this paragraph (e), all funds deposited into the * * * Mississippi
K-12 Workforce Development Grant Program Fund shall be used for administration
of * * * the
Mississippi K-12 Workforce Development Grant Program created in Section 2 of this
act.
(iii) All funds deposited into the Mississippi Department of Employment Security Mississippi Works Fund shall be disbursed exclusively by the Executive Director of the Mississippi Department of Employment Security, in accordance with the rules and regulations promulgated by the Office of Workforce Development, in support of workforce training activities approved by the Mississippi Office of Workforce Development in support of economic development activities. Funds allocated by the executive director under this subparagraph (iii) shall only be utilized for the training of unemployed persons, for immediate training needs for the net new jobs created by an employer, for the retention of jobs, to create a work-ready applicant pool of Mississippians with credentials and/or postsecondary education in accordance with the state's Workforce Investment and Opportunity Act plan, or for the support of local economic and community development activities related to workforce development in the state. The Mississippi Office of Workforce Development, in collaboration with the Mississippi Public Community College System and its partners, shall be the primary entity to facilitate training. Training conducted utilizing these Mississippi Works funds may be subject to a minimal administrative fee of not more than five percent (5%) to be paid from the Mississippi Works Fund as authorized by the Mississippi Office of Workforce Development. All costs associated with the administration of these funds shall be reimbursed to the Mississippi Department of Employment Security from the Mississippi Works Fund.
(iv) 1. The Department of Employment Security shall be the fiscal agent for the receipt and disbursement of all funds remaining in the State Workforce Investment Board bank account, subject to the administrative oversight of the Office of Workforce Development. The Mississippi Department of Employment Security shall be the fiscal agent for all funds appropriated to it for use by the Office of Workforce Development.
2. * * *
The Office of Workforce Development, in coordination with the Mississippi Department
of Employment Security as fiscal agent, shall ensure that any funds expended for
contractual services rendered to the Office of Workforce Development over Five Thousand
Dollars ($5,000.00) shall be paid only to service providers who have been selected
on a competitive basis. Any contract for services entered into using funds * * *
appropriated to the Mississippi Department of Employment Security for the Office
of Workforce Development shall meet the requirements for state contracts set
out in Section 31-7-1 et seq.
3. Any commodities procured for the office shall be procured in accordance with the provisions of Section 31-7-13.
* * *
(3) (a) (i) Mississippi
Workforce Enhancement Training contributions and * * * Mississippi K-12 Workforce
Development Grant Program contributions shall be collected * * *
for calendar years * * * after calendar year 2016 * * * at a rate of twenty one-hundredths percent (.20%),
based upon taxable wages, of which fifteen one-hundredths percent (.15%) shall be
the Workforce Enhancement Training contribution, one-hundredths of one percent (.01%)
shall be the * * * Mississippi K-12 Workforce Development Grant Program
contribution and four one-hundredths percent (.04%) shall be the Mississippi Works
contribution. The Mississippi Works contribution shall be collected for calendar
years in which the general experience ratio, adjusted on the basis of the trust
fund adjustment factor and reduced by fifty percent (50%), results in a general
experience rate of less than two-tenths percent (.2%). In all other years the Mississippi
Works contribution shall not be in effect.
(iii) The Mississippi
Workforce Enhancement Training Fund contribution, the * * * Mississippi K-12 Workforce
Development Grant Program Fund contribution and the Mississippi Works
contribution shall be in addition to the general experience rate plus the individual
experience rate of all employers but shall not be charged to reimbursing or rate-paying
political subdivisions or institutions of higher learning, or reimbursing nonprofit
organizations, as described in Sections 71-5-357 and 71-5-359.
(b) All Mississippi Workforce
Enhancement Training contributions, * * * Mississippi K-12 Workforce
Development Grant Program contributions and Mississippi Works contributions
collected shall be deposited initially into the Mississippi Department of Employment
Security bank account for clearing contribution collections and shall within two
(2) business days be transferred to the Workforce Investment and Training Holding
Account. Any Mississippi Workforce Enhancement Training Fund and/or * * * Mississippi
K-12 Workforce Development Grant Program Fund and/or Mississippi Works Fund
transactions from the Mississippi Department of Employment Security bank account
for clearing contribution collections that are deposited into the Workforce Investment
and Training Fund Holding Account and are not honored by a financial institution
will be transferred back to the Mississippi Department of Employment Security bank
account for clearing contribution collections out of funds in the Mississippi Workforce
Investment and Training Fund Holding Account.
(c) Suspension of the Workforce Enhancement Training Fund contributions required pursuant to this chapter shall occur if the insured unemployment rate exceeds an average of five and five-tenths percent (5.5%) for the three (3) consecutive months immediately preceding the effective date of the new rate year following such occurrence and shall remain suspended throughout the duration of that rate year. Such suspension shall continue until such time as the three (3) consecutive months immediately preceding the effective date of the next rate year that has an insured unemployment rate of less than an average of four and five-tenths percent (4.5%). Upon such occurrence, reactivation shall be effective upon the first day of the rate year following the event that lifts suspension and shall be in effect for that year and shall continue until such time as a subsequent suspension event as described in this chapter occurs.
(d) Notwithstanding any
other provision contained herein, contribution collections for the * * * Mississippi K-12 Workforce
Development Grant Program Fund, Mississippi Works Fund and Mississippi Workforce
Enhancement Training Fund shall not be suspended, under any circumstances, for tax
rate year 2021, and the resulting contribution rate of twenty one-hundredths percent
(.20%) shall be added to the employer's general and individual experience rate to
obtain the total unemployment insurance rate for 2021.
(4) All collections due or accrued prior to any suspension of the Mississippi Workforce Enhancement Training Fund will be collected based upon the law at the time the contributions accrued, regardless of when they are actually collected.
SECTION 2. (1) The Office of Workforce Development shall establish and administer the Mississippi K-12 Workforce Development Grant Program for the purpose of constructing, remodeling, purchasing or upgrading equipment or otherwise providing support to career technical centers at the K-12 education level. The grant program shall be funded from the Mississippi K-12 Workforce Development Grant Program Fund as provided in Section 71-5-353 and any other monies appropriated by the Legislature for that purpose.
(2) The Office of Workforce Development shall prescribe the terms and conditions of the grant program. To be eligible to receive a grant from the Office of Workforce Development under the grant program, a school at the K-12 education level shall provide the following information:
(a) The number of students enrolled in the workforce development program for which the funds will be used;
(b) The purpose of the program;
(c) Whether the program fits into the ecosystem for the training needs in the area;
(d) Evidence of the school's local involvement with industry partners in the area; and
(e) Any other information that the office determines is necessary.
(4) The Office of Workforce Development shall comply with the reporting requirements provided in Section 37-153-7. Each school that received grants from the program shall assist the office in completing the reporting requirement.
SECTION 3. Section 37-153-7, Mississippi Code of 1972, is amended as follows:
37-153-7. (1) There is created the Mississippi Office of Workforce Development and the Mississippi State Workforce Investment Board, which shall serve as the advisory board for the office. The Mississippi State Workforce Investment Board shall be composed of thirty-one (31) voting members, of which a majority shall be representatives of business and industry in accordance with the federal Workforce Innovation and Opportunity Act, or any successive acts.
(2) The members of the State Workforce Investment Board shall include:
(a) The Governor, or his designee;
(b) Nineteen (19) members, appointed by the Governor, of whom:
(i) A majority shall be representatives of businesses in the state, who:
1. Are owners of businesses, chief executives or operating officers of businesses, or other business executives or employers with optimum policymaking or hiring authority, and who, in addition, may be members of a local board described in Section 3122(b)(2)(A)(i) of the federal Workforce Innovation and Opportunity Act. At least two (2) of the members appointed under this item 1. shall be small business owners, chief executives or operating officers of businesses with less than fifty (50) employees;
2. Represent businesses, including small businesses, or organizations representing businesses, which provide employment opportunities that, at a minimum, include high-quality, work-relevant training and development in high-demand industry sectors or occupations in the state; and
3. Are appointed from among individuals nominated by state business organizations and business trade associations;
(ii) Not less than twenty percent (20%) shall consist of representatives of the workforce within the state, which:
1. Includes labor organization representatives who have been nominated by state labor federations;
2. Includes a labor organization member or training director from an apprenticeship program in the state, which shall be a joint labor-management apprenticeship program if such a program exists in the state;
3. May include representatives of community-based organizations, including organizations serving veterans or providing or supporting competitive, integrated employment for individuals with disabilities, who have demonstrated experience and expertise in addressing employment, training or education needs of individuals with barriers to employment; and
4. May include representatives of organizations, including organizations serving out-of-school youth, who have demonstrated experience or expertise in addressing the employment, training or education needs of eligible youth;
(iii) The balance shall include government representatives, including the lead state officials with primary responsibility for core programs, and chief elected officials (collectively representing both cities and counties, where appropriate);
(c) Two (2) representatives of businesses in the state appointed by the Lieutenant Governor;
(d) Two (2) representatives of businesses in the state appointed by the Governor from a list of three (3) recommendations from the Speaker of the House; and
(e) The following state officials:
(i) The Executive Director of the Mississippi Department of Employment Security;
(ii) The Executive Director of the Department of Rehabilitation Services;
(iii) The State Superintendent of Public Education;
(iv) The Executive Director of the Mississippi Development Authority;
(v) The Executive Director of the Mississippi Community College Board;
(vi) The President of the Community College Association; and
(vii) The Commissioner of the Institutions of Higher Learning.
(f) One (1) senator, appointed by the Lieutenant Governor, and one (1) representative, appointed by the Speaker of the House, shall serve on the state board in a nonvoting capacity.
(g) The Governor may appoint additional members if required by the federal Workforce Innovation and Opportunity Act, or any successive acts.
(h) Members of the board shall serve a term of four (4) years, and shall not serve more than three (3) consecutive terms.
(i) The membership of the board shall reflect the diversity of the State of Mississippi.
(j) The Governor shall designate the Chairman of the Mississippi State Workforce Investment Board from among the business and industry voting members of the board, and a quorum of the board shall consist of a majority of the voting members of the board.
(k) The voting members of the board who are not state employees shall be entitled to reimbursement of their reasonable expenses in the manner and amount specified in Section 25-3-41 and shall be entitled to receive per diem compensation as authorized in Section 25-3-69.
(3) Members of the state board may be recalled by their appointing authority for cause, including a felony conviction, fraudulent or dishonest acts or gross abuse of discretion, failure to meet board member qualifications, or chronic failure to attend board meetings.
(4) The Mississippi Department of Employment Security shall establish limits on administrative costs for each portion of Mississippi's workforce development system consistent with the federal Workforce Investment Act or any future federal workforce legislation.
(5) The Mississippi State Workforce Investment Board shall have the following duties. These duties are intended to be consistent with the scope of duties provided in the federal Workforce Innovation and Opportunity Act, amendments and successor legislation to this act, and other relevant federal law:
(a) Through the office, develop and submit to the Governor, Lieutenant Governor and Speaker of the House a strategic plan for an integrated state workforce development system that aligns resources and structures the system to more effectively and efficiently meet the demands of Mississippi's employers and job seekers. This plan will comply with the federal Workforce Investment Act of 1998, as amended, the federal Workforce Innovation and Opportunity Act of 2014 and amendments and successor legislation to these acts;
(b) Assist the Governor, Lieutenant Governor and Speaker of the House in the development and continuous improvement of the statewide workforce investment system that shall include:
(i) Development of linkages in order to assure coordination and nonduplication among programs and activities; and
(ii) Review local workforce development plans that reflect the use of funds from the federal Workforce Investment Act, Workforce Innovation and Opportunity Act, the Wagner-Peyser Act and the amendment or successor legislation to the acts, and the Mississippi Comprehensive Workforce Training and Education Consolidation Act;
(c) Recommend to the office the designation of local workforce investment areas as required in Section 116 of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014. There shall be four (4) workforce investment areas that are generally aligned with the planning and development district structure in Mississippi. Planning and development districts will serve as the fiscal agents to manage Workforce Investment Act funds, oversee and support the local workforce investment boards aligned with the area and the local programs and activities as delivered by the one-stop employment and training system. The planning and development districts will perform this function through the provisions of the county cooperative service districts created under Sections 19-3-101 through 19-3-115; however, planning and development districts currently performing this function under the Interlocal Cooperation Act of 1974, Sections 17-13-1 through 17-13-17, may continue to do so;
(d) Assist the Governor in the development of an allocation formula for the distribution of funds for adult employment and training activities and youth activities to local workforce investment areas;
(e) Recommend comprehensive, results-oriented measures that shall be applied to all of Mississippi's workforce development system programs;
(f) Assist the Governor in the establishment and management of a one-stop employment and training system conforming to the requirements of the federal Workforce Investment Act of 1998 and the Workforce Innovation and Opportunity Act of 2014, as amended, recommending policy for implementing the Governor's approved plan for employment and training activities and services within the state. In developing this one-stop career operating system, the Mississippi State Workforce Investment Board, in conjunction with local workforce investment boards, shall:
(i) Design broad guidelines for the delivery of workforce development programs;
(ii) Identify all existing delivery agencies and other resources;
(iii) Define appropriate roles of the various agencies to include an analysis of service providers' strengths and weaknesses;
(iv) Determine the best way to utilize the various agencies to deliver services to recipients; and
(v) Develop a financial plan to support the delivery system that shall, at a minimum, include an accountability system;
(g) To provide authority, in accordance with any executive order of the Governor, for developing the necessary collaboration among state agencies at the highest level for accomplishing the purposes of this article;
(h) To monitor the effectiveness of the workforce development centers and WIN job centers;
(i) To advise the Governor, public schools, community/junior colleges and institutions of higher learning on effective school-to-work transition policies and programs that link students moving from high school to higher education and students moving between community colleges and four-year institutions in pursuit of academic and technical skills training;
(j) To work with industry to identify barriers that inhibit the delivery of quality workforce education and the responsiveness of educational institutions to the needs of industry;
(k) To provide periodic assessments on effectiveness and results of the overall Mississippi comprehensive workforce development system and district councils;
(l) Develop broad statewide development goals, including a goal to raise the state's labor force participation rate;
(m) Perform a comprehensive review of Mississippi's workforce development efforts, including the amount spent and effectiveness of programs supported by state or federal money; and
(n) To assist the Governor in carrying out any other responsibility required by the federal Workforce Investment Act of 1998, as amended and the Workforce Innovation and Opportunity Act, successor legislation and amendments.
(6) The Mississippi State Workforce Investment Board shall coordinate all training programs and funds within its purview, consistent with the federal Workforce Investment Act, Workforce Innovation and Opportunity Act, amendments and successor legislation to these acts, and other relevant federal law.
Each state agency director responsible for workforce training activities shall advise the Mississippi Office of Workforce Development and the State Workforce Investment Board of appropriate federal and state requirements. Each state agency, department and institution shall report any monies received for workforce training activities or career and technical education and a detailed itemization of how those monies were spent to the state board. The board shall compile the data and provide a report of the monies and expenditures to the Chairs of the House and Senate Appropriations Committee, the Chair of the House Workforce Development Committee and the Chair of the Senate Economic and Workforce Development Committee by October 1 of each year. Each such state agency director shall remain responsible for the actions of his agency; however, each state agency and director shall work cooperatively to fulfill the state's goals.
(7) The State Workforce Investment Board shall establish an executive committee, which shall consist of the following State Workforce Investment Board members:
(a) The Chair of the State Workforce Investment Board;
(b) Two (2) business representatives currently serving on the state board selected by the Governor;
(c) The two (2) business representatives currently serving on the state board appointed by the Lieutenant Governor;
(d) The two (2) business representatives currently serving on the state board appointed by the Governor from a list of three (3) recommendations from the Speaker of the House;
(e) The two (2) legislators, who shall serve in a nonvoting capacity, one (1) of whom shall be appointed by the Lieutenant Governor from the membership of the Mississippi Senate and one (1) of whom shall be appointed by the Speaker of the House of Representatives from the membership of the Mississippi House of Representatives.
(8) The executive committee shall select an executive director of the Office of Workforce Development, with the advice and consent of a majority of the State Workforce Investment Board. The executive committee shall seek input from economic development organizations across the state when selecting the executive director. The executive director shall:
(a) Be a person with extensive experience in development of economic, human and physical resources, and promotion of industrial and commercial development. The executive director shall have a bachelor's degree from a state-accredited institution and no less than eight (8) years of professional experience related to workforce or economic development;
(b) Perform the functions necessary for the daily operation and administration of the office, with oversight from the executive committee and the State Workforce Investment Board, to fulfill the duties of the state board as described in Chapter 476, Laws of 2020;
(c) Hire staff needed for the performance of his or her duties under Chapter 476, Laws of 2020. The executive director, with approval from the executive committee, shall set the compensation of any hired employees from any funds made available for that purpose;
(d) Enter any part of the Mississippi Community College Board, individual community and junior colleges, or other workforce training facilities operated by the state or its subdivisions;
(e) Serve at the will and pleasure of the executive committee;
(f) Promulgate rules and regulations, subject to oversight by the executive committee, not inconsistent with this article, as may be necessary to enforce the provisions in Chapter 476, Laws of 2020; and
(g) Perform any other actions he or she, in consultation with the executive committee, deems necessary to fulfill the duties under Chapter 476, Laws of 2020.
(9) The Office of Workforce Development and Mississippi Community College Board shall collaborate in the administration and oversight of the Mississippi Workforce Enhancement Training Fund and Mississippi Works Fund, as described in Section 71-5-353. The executive director shall maintain complete and exclusive operational control of the office's functions.
(10) The office shall file an
annual and a quarterly report each year with the Governor,
Secretary of State, President of the Senate, * * * Speaker of the House, * * * Chairman of the House
Workforce Development Committee and Chairman of the Senate Economic and Workforce
Development Committee. The annual report shall be filed not later than
October 1 of each year regarding all funds approved by the office to be
expended on workforce training during the prior calendar year. The quarterly
and annual report shall include:
(a) Information on the
performance of the Mississippi Workforce Enhancement Training Fund and the Mississippi Works Fund, in terms of
adding value to the local and state economy, the contribution to future growth
of the state economy, and movement toward state goals, including increasing the
labor force participation rate; * * *
(b) With respect to specific workforce training projects:
(i) The location of the training;
(ii) The amount allocated to the project;
(iii) The purpose of the project;
(iv) The specific
business entity that is the beneficiary of the project; * * *
(v) The number of
employees intended to be trained and actually trained, if applicable, in the
course of the project * * *;
and
(vi) The types of funds used for the project; and
(c) With respect to the grants that have been awarded under the Mississippi K-12 Workforce Development Grant Program created in Section 2 of this act:
(i) The entity that was awarded the grant;
(ii) The amount allocated to the grant;
(iii) The purpose of the grant; and
(iv) How the grant has been used since it was awarded.
All information concerning a proposed project which is provided to the executive director shall be kept confidential. Such confidentiality shall not limit disclosure under the Mississippi Public Records Act of 1983 of records describing the nature, quantity, cost or other pertinent information related to the activities of, or services performed using, the Mississippi Workforce Enhancement Training Fund or the Mississippi Works Fund.
(11) In addition to other powers and duties provided in this section, the Office of Workforce Development shall also have the following powers and duties:
(a) Direct access to accounting and banking statements for all funds under its direction to ensure accurate and efficient management of funds and to improve internal control;
(b) The ability to enter into nondisclosure agreements to effectively support economic development activities and the proprietary nature of customized training for existing and new industry;
(c) To adopt and promulgate such rules and regulations as may be necessary or desirable for the purpose of implementing the Mississippi K-12 Workforce Development Grant Program created in Section 2 of this act.
( * * *12) Nothing in Chapter 476,
Laws of 2020 [Senate Bill No. 2564] shall void or otherwise interrupt any
contract, lease, grant or other agreement previously entered into by the State
Workforce Investment Board, Mississippi Community College Board, individual
community or junior colleges, or other entities.
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 or her 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 five and four-tenths percent (5.4%) with respect to any tax year, who has failed to file any two (2) quarterly reports within the qualifying period by September 30 following the computation date. No employer or employing unit shall be eligible for a contribution rate of less than five and four-tenths percent (5.4%) for the tax year in which the employing unit is found by the department to be in violation of Section 71-5-19(2) or (3) and for the next two (2) succeeding tax years. No representative of such employing unit who was a party to a violation as described in Section 71-5-19(2) or (3), if such representative was or is an employing unit in this state, shall be eligible for a contribution rate of less than five and four-tenths percent (5.4%) for the tax year in which such violation was detected by the department and for the next two (2) succeeding tax years.
(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 October 31 (close of business) of each calendar year bears to the aggregate of the taxable payrolls of all employers for the twelve (12) calendar months ending on June 30 next preceding.
(g) "Modified rates" means the rates of employer unemployment insurance 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 or her 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 or her 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 16 of each calendar year or the next working day if November 16 falls on a holiday or a weekend, 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 and rounded up if any fraction remains. Notwithstanding any other provision contained herein, the date for determining the cash balance of the Unemployment Compensation Fund which is available for the payment of benefits for the calendar years 2020 and 2021 shall be December 31.
(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. 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.
The CRC shall be computed as the average for the highest monthly value of the cost rate criterion computations during each of the economic cycles since the calendar year 1974 as defined by the National Bureau of Economic Research. The CRC shall be computed to four (4) decimal places and any remainder shall be rounded up.
The CRC shall be adjusted only through annual computations and additions of future economic cycles.
(k) "Size of fund index" (SOFI) is defined as the ratio of the exposure criterion (EC) to the cost rate criterion (CRC). The target size of fund index will be fixed at 1.0. If the insured unemployment rate (IUR) exceeds a four and five-tenths percent (4.5%) average for the most recent completed July to June period, the target SOFI will be .8 and will remain at that level until the computed SOFI (the average exposure criterion of the current year and the preceding year divided by the average cost rate criterion) equals 1.0 or the average IUR falls to four and five-tenths percent (4.5%) or less for any period July to June. However, if the IUR falls below two and five-tenths percent (2.5%) for any period July to June the target SOFI shall be 1.2 until such time as the computed SOFI is equal to or greater than 1.0 or the IUR is equal to or greater than two and five-tenths percent (2.5%), at which point the target SOFI shall return to 1.0.
(l) No employer's unemployment contribution general experience rate plus individual unemployment experience rate shall exceed five and four-tenths percent (5.4%). Accrual rules shall apply for purposes of computing contribution rates including associated functions.
(m) The term "general experience rate" has the same meaning as the minimum tax rate.
(2) Modified rates:
(a) For any tax year, when the reserve ratio on the preceding November 16, in the case of any tax year, equals or exceeds three percent (3%), the modified rates, as hereinafter prescribed, shall be in effect. In computation of this reserve ratio, any remainder shall be rounded down.
(b) Modified rates shall be determined for the tax year for each eligible employer on the basis of his or her experience-rating record in the following manner:
(i) The department 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 or her 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 or her 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 department finds that the individual:
1. Voluntarily left the employ of such employer without good cause attributable to the employer or to accept other work;
2. Was discharged by such employer for misconduct connected with his or her work;
3. Refused an offer of suitable work by such employer without good cause, and the department 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;
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 Public Law 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 department, 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;
9. Is not required to serve the one-week waiting period as described in Section 71-5-505(2). In that event, only the benefits paid in lieu of the waiting period week may be noncharged; or
10. Was paid benefits as a result of a fraudulent claim, provided notification was made to the Mississippi Department of Employment Security in writing or by email by the employer, within ten (10) days of the mailing of the notice of claim filed to the employer's last-known address.
(iii) Notwithstanding any other provision contained herein, an employer shall not be noncharged when the department finds that the employer or the employer's agent of record was at fault for failing to respond timely or adequately to the request of the department for information relating to an unemployment claim that was subsequently determined to be improperly paid, unless the employer or the employer's agent of record shows good cause for having failed to respond timely or adequately to the request of the department for information. For purposes of this subparagraph "good cause" means an event that prevents the employer or employer's agent of record from timely responding, and includes a natural disaster, emergency or similar event, or an illness on the part of the employer, the employer's agent of record, or their staff charged with responding to such inquiries when there is no other individual who has the knowledge or ability to respond. Any agency error that resulted in a delay in, or the failure to deliver notice to, the employer or the employer's agent of record shall also be considered good cause for purposes of this subparagraph.
(iv) The department shall compute a benefit ratio for each eligible employer, which shall be the quotient obtained by dividing the total benefits charged to his or her experience-rating record during the period his or her 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 or her total taxable payroll for the same period on which all unemployment insurance 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.
(v) 1. The unemployment insurance contribution rate for each eligible employer shall be the sum of two (2) rates: his or her individual experience rate in the range from zero percent (0%) to five and four-tenths percent (5.4%), plus a general experience rate. In no event shall the resulting unemployment insurance rate be in excess of five and four-tenths percent (5.4%), however, it is the intent of this section to provide the ability for employers to have a tax rate, the general experience rate plus the individual experience rate, of up to five and four-tenths percent (5.4%).
2. The employer's individual experience rate shall be equal to his or her benefit ratio as computed under paragraph (b)(iv) of this subsection (2).
3. The general experience rate shall be determined in the following manner: The department 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 this item 3, the term "ineffectively charged benefits" shall include:
a. 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%);
b. 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
c. The total of the amounts of benefits charged or chargeable to the experience-rating record of any employer who has discontinued his or her 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 or her experience-rating record throughout the period ending on the computation date, during which his or her experience-rating record has been chargeable with benefits, by his or her total taxable payroll for the same period on which all unemployment insurance 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 (subsection (2)(b)(v)3a, b and c) to the taxable wages paid during the same period divided 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; however, the general experience rate for rate year 2014 shall be two tenths of one percent (.2%) and to that will be added the employer's individual experience rate for the total unemployment insurance rate.
4. a. Except as otherwise provided in this item 4, 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, as defined in subsection (1)(k) of this section, subtract the simple average of the current and preceding years' exposure criterions divided by the cost rate criterion, as defined in subsection (1)(j) of this section. The result is then multiplied by the product of the CRC, as defined in subsection (1)(j) of this section, 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. The sum of the general experience rate and the trust fund adjustment factor shall be multiplied by fifty percent (50%) and this product shall be computed to one (1) decimal place, and rounded to the next higher tenth.
b. Notwithstanding the minimum rate provisions as set forth in subsection (1)(l) of this section, the general experience rate of all employers shall be reduced by seven one-hundredths of one percent (.07%) for calendar year 2013 only.
5. The general
experience rate shall be zero percent (0%) unless the general experience ratio for
any tax year as computed and adjusted on the basis of the trust fund adjustment
factor and reduced by fifty percent (50%) is an amount equal to or greater than
two-tenths of one percent (.2%), then the general experience rate shall be the computed
general experience ratio and adjusted on the basis of the trust fund adjustment
factor and reduced by fifty percent (50%); however, in no case shall the sum of
the general experience plus the individual experience unemployment insurance rate
exceed five and four-tenths percent (5.4%). For rate years subsequent to 2014,
Mississippi Workforce Enhancement Training contribution rate, and/or * * * Mississippi K-12 Workforce
Development Grant Program contribution rate, and/or Mississippi Works contribution
rate, when in effect, shall be added to the unemployment contribution rate, regardless
of whether the addition of this contribution rate causes the total contribution
rate for the employer to exceed five and four-tenths percent (5.4%).
6. The department 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. Notwithstanding any other provision contained herein, the general experience rate for calendar year 2021 shall be zero percent (0%). Charges attributed to each employer's individual experience rate for the period March 8, 2020, through June 30, 2020, will not impact the employer's individual experience rate calculations for purposes of calculating the total unemployment insurance rate for 2021 and the two (2) subsequent tax rate years. Moreover, charges attributed to each employer's individual experience rate for the period July 1, 2020, through December 31, 2020, will not impact the employer's individual experience rate calculations for purposes of calculating the total unemployment insurance rate for 2022 and the two (2) subsequent tax rate years.
(vi) 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 or her 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.
(vii) 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 department;
3. Continued operation of the transferred portion by the successor after transfer; and
4. The execution and the filing with the department 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.
(viii) If the successor was an employer subject to this chapter prior to the date of acquisition, it shall continue to pay unemployment insurance 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 unemployment insurance 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 unemployment insurance contributions are applicable, it shall pay unemployment insurance 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 unemployment insurance 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.
(ix) The department shall notify each employer quarterly of the benefits paid and charged to his or her experience-rating record; and such notification, in the absence of an application for redetermination filed within thirty (30) days after the date 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 department 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 unemployment insurance 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.
(x) The department shall notify each employer of his or her rate of contribution as determined for any tax year as soon as reasonably possible after September 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 such notice to his or her last-known address, the employer files with the department an application for review and redetermination of his or her contribution rate, setting forth his or her reasons therefor. If the department 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 department who shall consider and decide these and related applications and protests; but no employer shall be allowed, in any proceeding involving his or her rate of unemployment insurance contributions or contribution liability, to contest the chargeability to his or her 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 or her, and then only in the event that he or she 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 notice thereof, there shall be an appeal to the department itself. Any such appeal shall be on the record before said designated hearing officer, and the decision of said department shall become final unless, within thirty (30) days after the date 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.
(3) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:
(a) (i) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is substantially common ownership, management or control of the two (2) employers, then the unemployment experience attributable to the transferred trade or business shall be transferred to the employer to whom such business is so transferred. The rates of both employers shall be recalculated and made effective on January 1 of the year following the year the transfer occurred.
(ii) If, following a transfer of experience under subparagraph (i) of this paragraph (a), the department determines that a substantial purpose of the transfer of trade or business was to obtain a reduced liability of unemployment insurance contributions, then the experience-rating accounts of the employers involved shall be combined into a single account and a single rate assigned to such account.
(b) Whenever a person who is not an employer or an employing unit under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to such person if the department finds that such person acquired the business solely or primarily for the purpose of obtaining a lower rate of unemployment insurance contributions. Instead, such person shall be assigned the new employer rate under Section 71-5-353, unless assignment of the new employer rate results in an increase of less than two percent (2%), in which case such person would be assigned the new employer rate plus an additional two percent (2%) penalty for the rate year. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of unemployment insurance contributions, the department shall use objective factors which may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long such business enterprise was continued, or whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.
(c) (i) If a person knowingly violates or attempts to violate paragraph (a) or (b) of this subsection or any other provision of this chapter related to determining the assignment of a contribution rate, or if a person knowingly advises another person in a way that results in a violation of such provision, the person shall be subject to the following penalties:
1. If the person is an employer, then such employer shall be assigned the highest rate assignable under this chapter for the rate year during which such violation or attempted violation occurred and the three (3) rate years immediately following this rate year. However, if the person's business is already at such highest rate for any year, or if the amount of increase in the person's rate would be less than two percent (2%) for such year, then the person's tax rate shall be increased by two percent (2%) for such year. The penalty rate will apply to the successor business as well as the related entity from which the employees were transferred in an effort to obtain a lower rate of unemployment insurance contributions.
2. If the person is not an employer, such person shall be subject to a civil money penalty of not more than Five Thousand Dollars ($5,000.00). Each such transaction for which advice was given and each occurrence or reoccurrence after notification being given by the department shall be a separate offense and punishable by a separate penalty. Any such fine shall be deposited in the penalty and interest account established under Section 71-5-114.
(ii) For purposes of this paragraph (c), the term "knowingly" means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.
(iii) For purposes of this paragraph (c), the term "violates or attempts to violate" includes, but is not limited to, intent to evade, misrepresentation or willful nondisclosure.
(iv) In addition to the penalty imposed by subparagraph (i) of this paragraph (c), any violation of this subsection may be punishable by a fine of not more than Ten Thousand Dollars ($10,000.00) or by imprisonment for not more than five (5) years, or by both such fine and imprisonment. This subsection shall prohibit prosecution under any other criminal statute of this state.
(d) The department shall establish procedures to identify the transfer or acquisition of a business for purposes of this subsection.
(e) For purposes of this subsection:
(i) "Person" has the meaning given such term by Section 7701(a)(1) of the Internal Revenue Code of 1986; and
(ii) "Employing unit" has the meaning as set forth in Section 71-5-11.
(f) This subsection shall be interpreted and applied in such a manner as to meet the minimum requirements contained in any guidance or regulations issued by the United States Department of Labor.
SECTION 5. Section 71-5-453, Mississippi Code of 1972, is amended as follows:
71-5-453. The department
shall be the treasurer and custodian of the fund, and shall administer such
fund in accordance with the directions of the department, and shall issue its
warrants upon it in accordance with such regulations as the department shall
prescribe. The department shall maintain within the fund three (3) separate
accounts: (a) a clearing account, (b) an unemployment trust fund account, and
(c) a benefit payment account. All monies payable to the fund, upon receipt
thereof by the department, shall be immediately deposited in the clearing
account. Refunds payable pursuant to Section 71-5-383 may be paid from the
clearing account by the department. 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. Workforce Enhancement Training contributions, * * * Mississippi K-12 Workforce
Development Grant Program contributions and Mississippi Works contributions
shall be deposited into the Workforce Investment and Training Holding Account
as described in this section. 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 Unemployment Trust Fund account for the State of
Mississippi, 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 department, 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 department
shall be liable for the faithful performance of its duties in connection with
the Unemployment Compensation Fund under this chapter. A Workforce Investment
and Training Holding Account shall be established by and maintained under the
control of the Mississippi Department of Employment Security. Contributions
collected pursuant to the provisions in this chapter for the Workforce
Enhancement Training Fund, * * * Mississippi K-12
Workforce Development Grant Program Fund and the Mississippi Works Fund shall
be transferred from the clearing account into the Workforce Investment and
Training Holding Account on the same schedule and under the same conditions as
funds transferred to the Unemployment Compensation Fund. Such funds shall remain
on deposit in the holding account for a period of thirty (30) days. After such
period, Workforce Enhancement Training contributions shall be transferred to
the appropriate Mississippi Community College Board Treasury Account, with oversight
provided by the Mississippi Office of Workforce Development, by the department.
The * * * Mississippi K-12 Workforce Development Grant
program contributions shall be transferred to the * * * Mississippi K-12
Workforce Development Grant Program Treasury Account for the Mississippi K-12 Workforce
Development Grant Program Fund. The Mississippi Works contributions shall
be transferred to the Mississippi Department of Employment Security Treasury
Account for the Mississippi Works Fund. Such transfers shall occur within fifteen
(15) days after the funds have resided in the Workforce Investment and Training
Holding Account for thirty (30) days. One (1) such transfer shall be made
monthly, but the department, in its discretion, may make additional transfers
in any month. In the event such funds transferred are subsequently determined
to be erroneously paid or collected, or if deposit of such funds is denied or
rejected by the banking institution for any reason, or deposits are unable to
clear drawer's account for any reason, the funds must be reimbursed by the recipient
of such funds within thirty (30) days of mailing of notice by the department
demanding such refund, unless funds are available in the Workforce Investment
and Training Holding Account. In that event such amounts shall be immediately
withdrawn from the Workforce Investment and Training Holding Account by the
department and redeposited into the clearing account.
SECTION 6. Section 37-73-3, Mississippi Code of 1972, is brought forward as follows:
37-73-3. (1) Subject to appropriation by the Legislature, the Office of Workforce Development shall pilot a career coaching program to support middle schools and high schools as students are exposed, prepared and connected to career avenues within and beyond the classroom setting. Through strong partnerships with economic and business leaders, paired with viable relationships with school districts, the career coaches shall target the alignment of students' strengths with intentional academic and work-based learning in pursuit of meaningful professional employment.
(2) Subject to appropriation by the Legislature, the Office of Workforce Development, working through the Department of Employment Security as fiscal agent, shall establish rules and regulations to operate the career coaching program, which may include granting funds to eligible recipients such as state agencies, regional workforce entities and other nonprofits, to hire coaches. The Office of Workforce Development shall establish criteria for coaches and shall work with partner organizations to identify candidates and measure outcomes.
SECTION 7. This act shall take effect and be in force from and after July 1, 2023.