MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Labor; Ways and Means

By: Representative Smith (35th)

AN ACT TO AMEND SECTION 71-5-355, MISSISSIPPI CODE OF 1972, TO REMOVE THE INCREASE IN AN EMPLOYER'S EXPERIENCE RATIO DUE TO THE EMPLOYER'S FAILURE TO FILE TIMELY HIS QUARTERLY REPORTS WITH THE EMPLOYMENT SECURITY COMMISSION; TO AMEND SECTION 71-5-365, MISSISSIPPI CODE OF 1972, TO REVISE THE PENALTIES FOR LATE REPORTING; TO AMEND SECTION 71-5-367, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. 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 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 commission 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 contributions rate of less than five and four-tenths percent (5.4%) for the tax year in which such violation was detected by the commission 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 November 1 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 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) No employer's contribution rate shall exceed five and four-tenths percent (5.4%), nor be less than four-tenths of one percent (.4%).

(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 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 commission, under the provisions of Section 71-5-B, 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-C.

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.

(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.

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. 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 five and four-tenths percent (5.4%), plus a general experience rate. 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:

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. 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 1.50, 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.

5. Notwithstanding any other provisions of subsection (2)(b)(iv), if the general experience rate for any tax year as computed and adjusted on the basis of the size of fund index is a negative percentage, it shall be disregarded.

6. 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.

(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 2. 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 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 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 so determined, to which amount may be added and assessed by the executive director a penalty for the first late report equal to ten percent (10%) of the amount of contribution plus one percent (1%) interest per month until the report is filed, a penalty for the second late report equal to ten percent (10%) of the amount of contribution plus one percent (1%) interest per month until the report is filed and a penalty for the third late report of twenty-five percent (25%) of the amount of contribution plus one percent (1%) interest per month until the report is filed; and (c) immediately give written notice by mail to such employer of such determination and penalty assessment, * * * if any, added and assessed, demanding payment of same together with interest, as herein provided, on the amount of 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 or deficiencies in 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.

SECTION 3. 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 shown to be due thereby at the time of such filing, or if an employer shall fail to pay any penalty 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 or penalty assessments, which may be found within his county, for the payment of the amount thereof, together with interest, * * * if any, assessed for failure to make and file a report or a corrected or sufficient report, * * * 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 commission shall cause to be delivered to the clerk of the circuit court a copy of such warrant issued to the sheriff. 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, interest and damages for which the warrant is issued, a notation that the lien covers all previous, current and future periods for the life of the lien, 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. Any such liens shall cover all contributions, interest and damages owed to the commission from previous, current and future periods until the expiration of such lien or until the amount of the lien is fully satisfied. Such judgment shall not be a lien upon the property of the employer for a period of more than seven (7) years from the date of filing of the notice of the tax lien for failure to pay contributions, damages and interest unless action be brought thereon before the expiration of such time or unless the commission refiles such notice of tax lien before the expiration of such time. The judgment shall be a lien upon the property of the employer for a period of seven (7) years from the date of refiling such notice of tax lien unless action be brought thereon before the expiration of such time or unless the commission refiles such notice of tax lien before the expiration of such time. There shall be no limit upon the number of times the commission may refile notices of tax liens. 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.

The commission may elect to issue the warrant directly to the circuit clerk of any county of this state for enrollment upon the judgment rolls of the county. In such case, the 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, interest and damages for which the warrant is issued, a notation that the lien covers all previous, current and future periods for the life of the lien, and the date when such warrant is filed. The lien shall have the same effect and remedies 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.

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 the 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 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 4. This act shall take effect and be in force from and after July 1, 2001.