MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Appropriations
By: Senator(s) Robertson, Dawkins, Harden, Jackson (11th), Jackson (32nd), Jordan, Walls, White
AN ACT TO AMEND SECTION 71-5-359, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO DETERMINE THE PERCENTAGE TO BE APPLIED TO THE AMOUNT OF COVERED WAGES PAID INTO THE EMPLOYMENT COMPENSATION REVOLVING FUND BY STATE AGENCIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 71-5-359, Mississippi Code of 1972, is amended as follows:
71-5-359. (1) (a) Before January 1, 1978, each state board or other instrumentality of this state or one or more other states covered under Section 71-5-11, subsection I(3), shall pay contributions under the provisions of Sections 71-5-351 through 71-5-355 for all of the hospitals or institutions of higher learning under its jurisdiction unless it elects, in the same manner and under the same conditions as provided for nonprofit organizations in subsections (a), (b) and (c) of Section 71-5-357, to pay to the department for the unemployment fund an amount equal to the regular benefits and one-half (1/2) of the extended benefits paid that are attributable to service in the employ of such hospitals or institutions. When an election is made, the amounts required to be paid in lieu of contributions shall be billed and payment made as provided in Section 71-5-357 with respect to similar payments by nonprofit organizations. A state board having jurisdiction over two (2) or more state-owned hospitals or state-owned institutions of higher learning shall be treated as a single employer for the employment in all of those hospitals or institutions of higher learning for purposes of computing contribution rates and payment of contributions, or for purposes of reimbursing the fund, unless it elects, in accordance with this section, to have one or more of those hospitals or institutions of higher learning treated as a separate employer.
(b) A state board may elect to have one or more state-owned hospitals or one or more state-owned institutions of higher learning under its jurisdiction treated as a separate employer for the purposes of this section, provided it files with the department, not later than thirty (30) days prior to the beginning of any tax year, a written notice of such election. Any such election shall be effective throughout such tax year, and shall continue in effect unless the state board files with the department a written notice of termination of such election not less than thirty (30) days prior to the beginning of the tax year for which such termination is to be effective.
(2) (a) From January 1, 1978, through December 31, 1978, the Commission of Budget and Accounting shall, in the manner provided in subsection (2)(c) of this section, pay, upon warrant issued by the State Auditor of Public Accounts, to the department for the Unemployment Compensation Fund an amount equal to the regular benefits and one-half (1/2) of the extended benefits paid that are attributable to service in the employ of a state agency. The amount required to be reimbursed by a certain agency shall be billed to the Commission of Budget and Accounting and shall be paid from the Employment Compensation Revolving Fund pursuant to subsection (2)(c) of this section not later than thirty (30) days after such bill was mailed, unless there has been an application for review and redetermination in accordance with Section 71-5-357(b)(v).
(b) The Department of Finance and Administration shall, in the manner provided in subsection (2)(c) of this section, pay, upon warrant issued by the State Auditor, or the successor to these duties, to the department for the Unemployment Compensation Fund an amount equal to the regular benefits and the extended benefits paid that are attributable to service in the employ of a state agency. The amount required to be reimbursed by a certain agency shall be billed to the Department of Finance and Administration and shall be paid from the Employment Compensation Revolving Fund pursuant to subsection (2)(c) of this section not later than thirty (30) days after such bill was mailed, unless there has been an application for review and redetermination in accordance with Section 71-5-357(b)(v).
(c) Each agency of state government shall deposit monthly for a period of twenty-four (24) months an amount equal to one-twelfth of one percent (1/12 of 1%) of the first Six Thousand Dollars ($6,000.00) paid to each employee thereof during the next preceding year into the Employment Compensation Revolving Fund that is created in the State Treasury. The Department of Finance and Administration shall determine the percentage to be applied to the amount of covered wages paid in order to maintain a balance in the revolving fund of not less than the amount determined by an actuary through an annual actuarial evaluation. The State Treasurer shall invest all funds in the Employment Compensation Revolving Fund and all interest earned shall be credited to the Employment Compensation Revolving Fund.
The reimbursement of benefits paid by the Mississippi Department of Employment Security shall be paid by the Department of Finance and Administration from the Employment Compensation Revolving Fund upon warrants issued by the State Auditor of Public Accounts, or the successor to these duties; and the auditor shall issue his warrants upon requisitions signed by the Department of Finance and Administration. However, the Department of Finance and Administration may, if it so elects, contract for the performance of the duties prescribed by subsection (2)(b) and (c), and other duties necessarily related thereto.
(d) From January 1, 1978, through December 31, 1978, any political subdivision of this state shall pay to the department for the unemployment fund an amount equal to the regular benefits and one-half (1/2) of the extended benefits paid that are attributable to service in the employ of such political subdivision unless it elects to make contributions to the unemployment fund as provided in subsection (2)(j) of this section. The amount required to be reimbursed shall be billed and shall be paid as provided in Section 71-5-357, with respect to similar payments for nonprofit organizations.
(e) On and after January 1, 1979, any political subdivision of this state shall pay to the department for the unemployment fund an amount equal to the regular benefits and the extended benefits paid that are attributable to service in the employ of such political subdivision unless it elects to make contributions to the unemployment fund as provided in subsection (2)(j) of this section. The amount required to be reimbursed shall be billed and shall be paid as provided in Section 71-5-357, with respect to similar payments for nonprofit organizations.
(f) Each political subdivision unless it elects to make contributions to the unemployment fund as provided in subsection (2)(j) of this section, shall establish a revolving fund and deposit therein monthly for a period of twenty-four (24) months an amount equal to one-twelfth of one percent (1/12 of 1%) of the first Six Thousand Dollars ($6,000.00) paid to each employee thereof during the next preceding year plus an amount each month equal to one-third (1/3) of any reimbursement paid to the department for the next preceding quarter. After January 1, 1980, the balance in the revolving fund shall be maintained at an amount not less than two percent (2%) of the covered wages paid during the next preceding year. However, the department shall by regulation establish a procedure to allow reimbursing political subdivisions to elect to maintain the balance in the revolving fund as required under this paragraph or to annually execute a surety bond to be approved by the department in an amount not less than two percent (2%) or the covered wages paid during the next preceding year.
(g) In the event any political subdivision becomes delinquent in payments due under this chapter, upon due notice, and upon certification of the delinquency by the department to the Department of Finance and Administration, the State Tax Commission, the Department of Environmental Quality and the Department of Insurance, or any of them, such agencies shall direct the issuance of warrants which in the aggregate shall be the amount of such delinquency payable to the department and drawn upon any funds in the State Treasury which may be available to such political subdivision in satisfaction of any such delinquency. This remedy shall be in addition to any other collection remedies in this chapter or otherwise provided by law.
(h) Payments made by any political subdivision under the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
(i) Any governmental entity shall not be liable to make payments to the unemployment fund with respect to the benefits paid to any individual whose base-period wages include wages for previously uncovered services as defined in Section 71-5-511, subsection (e), to the extent that the Unemployment Compensation Fund is reimbursed for such benefits pursuant to Section 121 of Public Law 94-566.
(j) Any political subdivision of this state may elect to make contributions to the unemployment fund instead of making reimbursement for benefits paid as provided in subsection (2)(d), (e) and (f) of this section. A political subdivision which makes this election shall so notify the department, not later than July 1, 1978; and shall be subject to the provisions of Section 71-5-351, with regard to the payment of contributions. A political subdivision which makes this election shall pay contributions equal to two percent (2%) of wages paid by it during each calendar quarter it is subject to this chapter. The department shall by regulation establish a procedure to allow political subdivisions the option periodically to elect either the reimbursement or the contribution method of financing unemployment compensation coverage.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.