MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Economic and Workforce Development
By: Senator(s) Parker, England, Blount, Jackson (11th)
AN ACT TO AMEND SECTION 37-153-7, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN APPOINTMENTS TO THE STATE WORKFORCE INVESTMENT BOARD; TO AMEND SECTIONS 71-5-353, 71-5-355 AND 71-5-453, MISSISSIPPI CODE OF 1972, TO REPLACE THE MISSISSIPPI WORKFORCE ENHANCEMENT TRAINING FUND, THE STATE WORKFORCE INVESTMENT FUND AND THE MISSISSIPPI WORKS FUND WITH THE ACCELERATE MISSISSIPPI WORKFORCE DEVELOPMENT FUND, AND TO DESIGNATE DECEMBER 31 AS THE DATE FOR CALCULATING THE EXPOSURE CRITERION FOR CALENDAR YEARS 2020 AND 2021; TO AMEND SECTION 43-17-1, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF HUMAN SERVICES TO COLLABORATE WITH THE OFFICE OF WORKFORCE DEVELOPMENT ON TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) PROGRAMS RELATED TO JOB PLACEMENT, JOB TRAINING AND JOB RETENTION; TO AMEND SECTION 47-5-541, MISSISSIPPI CODE OF 1972, TO REQUIRE THE CHIEF EXECUTIVE OFFICER OF THE CORPORATION FORMED UNDER THE MISSISSIPPI PRISON INDUSTRIES ACT OF 1990 TO ESTABLISH EDUCATION, TRAINING AND WORKFORCE DEVELOPMENT PROGRAMS IN COLLABORATION WITH THE OFFICE OF WORKFORCE DEVELOPMENT AND OTHER RELEVANT STATE AND FEDERAL AGENCIES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. 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) * * * Four (4) representatives of
businesses in the state appointed by the Lieutenant Governor;
* * *
( * * *d) 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.
( * * *e) 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.
( * * *f) The Governor may appoint additional
members if required by the federal Workforce Innovation and Opportunity Act, or
any successive acts.
( * * *g) Members of the board shall serve a
term of four (4) years, and shall not serve more than three (3) consecutive terms.
( * * *h) The membership of the board shall
reflect the diversity of the State of Mississippi.
( * * *i) 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.
( * * *j) 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 chapter;
(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 * * * four (4) business
representatives currently serving on the state board appointed by the
Lieutenant Governor;
* * *
( * * *d) 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 chapter, 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 * * * shall administer and oversee the Accelerate Mississippi
Workforce Development 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 report with the Governor, Secretary of State, President of the Senate, Secretary of the Senate, Speaker of the House, and Clerk of the House 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 report shall include:
(a) Information on the
performance of the * * * Accelerate
Mississippi Workforce Development 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; and
(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; and
(v) The number of employees intended to be trained and actually trained, if applicable, in the course of the project.
(c) 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 * * * Accelerate Mississippi Workforce Development
Fund.
(11) 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 2. 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 a special * * * fund to be known as the " * * *Accelerate Mississippi Workforce Development
Fund" which consist of funds collected pursuant to subsection (3) of this section.
(ii) Funds
collected shall initially be deposited into the Mississippi Department of
Employment Security bank account for clearing contribution collections and
subsequently * * * transferred to the * * *
Accelerate Mississippi Workforce Development Holding Bank 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. * * * Accelerate Mississippi Workforce Development
contributions * * *;
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.
The cost of collection
and administration of the * * * Mississippi Workforce Enhancement Training contribution, the State
Workforce Investment contribution and the Mississippi Works Accelerate
Mississippi Workforce Development contributions shall be allocated
based on a plan approved by the United States Department of Labor (USDOL). The * * * Office of Workforce Development shall pay the cost
of collecting the * * * Accelerate Mississippi Workforce Development
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) All contributions collected for the * * * Accelerate Mississippi Workforce
Development Fund will be initially deposited into the Mississippi Department
of Employment Security bank account for clearing contribution collections and
subsequently transferred to the * * * Accelerate
Mississippi Workforce Development Holding Bank 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 * * * Accelerate
Mississippi Workforce Development contributions shall be transferred to the * * * Accelerate
Mississippi Workforce Development Fund Treasury Account * * *.
In cases of extraordinary circumstances, these funds shall be transferred
within fifteen (15) days. Interest earnings or interest credits on deposit
amounts in the * * * Accelerate Mississippi Workforce
Development Holding Bank 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 * * * State Workforce Investments Accelerate Mississippi Workforce
Development 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 State
Workforce Investment Board expenditure policies.
( * * *c) All enforcement * * * for the collection of delinquent
unemployment contributions * * * shall be the responsibility of
the department pursuant to Sections 71-5-363 through 71-5-383 which
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 State Workforce Investment Board Fund
and the Mississippi Works and the Accelerate Mississippi Workforce
Development Fund.
( * * *d) (i) Except as otherwise provided
for in this subparagraph (i), all monies deposited into the * * * Accelerate
Mississippi Workforce Development Fund Treasury Account shall be directed
by the Mississippi Office of Workforce Development * * * 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 * * *
individual community and junior colleges to employers and employees in order to
enhance employee productivity, recruit individuals into training programs, improve
job retention in the state, raise the labor participation rate of the state and
otherwise create a work-ready applicant pool of individuals with credentials or
post-secondary education, as determined by the Office of Workforce Development.
Such training may be subject to a minimal administrative fee to be paid from the * * * Accelerate
Mississippi Workforce Development 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 * * * will be responsible for approving the training. A portion of
the funds collected for the * * *
Accelerate Mississippi Workforce Development Fund shall be used for the
development of performance measures to measure the effectiveness of the use of
the * * *
Accelerate Mississippi Workforce Development 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 * * * Accelerate Mississippi Workforce Development
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) * * * The amount appropriated by the Legislature out of the Accelerate
Mississippi Workforce Development Fund Treasury Account shall be transferred to
the Accelerate Mississippi Workforce Development Administrative Bank Account
for administration of State Workforce Investment Board business * * * and the Office of Workforce Development * * *.
(iii) * * * In
no case shall * * *
Accelerate Mississippi Workforce Development Funds be used to supplant workforce funds available from
any other sources, including, but not limited to, local, state or federal
sources that are available for workforce training and development. * * *
(iv) 1. The
Department of Employment Security shall be the fiscal agent for the receipt and
disbursement of all Accelerate Mississippi Workforce Development Funds * * *,
subject to the administrative oversight of the Office of Workforce Development.
On the effective date of this act, all funds existing in the Mississippi Workforce
Enhancement Training Fund, the State Workforce Investment Board Account and the
Mississippi Works Fund shall be transferred to the Accelerate Mississippi Workforce
Development Treasury Fund. All existing agreements and obligations due through
these three (3) funds shall be transferred to the Accelerate Mississippi Workforce
Development Fund and shall be honored as agreed upon.
2. In
managing the * * * Accelerate Mississippi Workforce Development
Administrative Bank Account, 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 shall be paid only to service providers who have been
selected on a competitive basis. Any contract for services entered into using
funds from the * * * Accelerate Mississippi Workforce Development Administrative
Bank Account shall contain the deliverables stated in terms that allow for the
assessment of work performance against measurable performance standards and
shall include milestones for completion of each deliverable under the contract.
For each contract for services entered into by the Office of Workforce
Development, the office shall develop a quality assurance surveillance plan
that specifies quality control obligations of the contractor as well as
measurable inspection and acceptance criteria corresponding to the performance
standards contained in the contract's statement of work.
3. Any commodities procured for the office shall be procured in accordance with the provisions of Section 31-7-13.
* * *
(3) (a) (i) * * * Accelerate Mississippi Workforce Development
contributions shall be collected * * *
at a rate of
twenty one-hundredths percent (.20%), based upon taxable wages * * *.
( * * *ii) The * * *
Accelerate Mississippi Workforce Development 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 * * * Accelerate
Mississippi Workforce Development 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 * * * Accelerate
Mississippi Workforce Development Holding Bank Account. Any * * *
Accelerate Mississippi Workforce Development Fund transactions from the
Mississippi Department of Employment Security bank account for clearing
contribution collections that are deposited into the * * * Accelerate
Mississippi Workforce Development Holding Bank 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 * * *
Accelerate Mississippi Workforce Development Holding Bank Account.
(c) Suspension of the * * * Accelerate Mississippi
Workforce Development 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 * * * Accelerate Mississippi
Workforce Development 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 * * * Accelerate
Mississippi Workforce Development Fund will be collected based upon the law
at the time the contributions accrued, regardless of when they are actually
collected.
SECTION 3. 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, * * *
Accelerate Mississippi Workforce Development 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 4. 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. * * * Accelerate Mississippi Workforce Development
contributions shall be deposited into the * * * Accelerate
Mississippi Workforce Development Holding Bank 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. An * * * Accelerate
Mississippi Workforce Development Holding Bank Account shall be
established by and maintained under the fiscal control of the
Mississippi Department of Employment Security. Contributions collected
pursuant to the provisions in this chapter for the * * * Accelerate Mississippi Workforce
Development Fund shall be transferred from the clearing account into the * * * Accelerate
Mississippi Workforce Development Holding Bank 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 bank
account for a period of thirty (30) days. After such period, * * * Accelerate Mississippi
Workforce Development contributions shall be transferred to the * * *
Accelerate Mississippi Workforce Development Fund Treasury Account, with
oversight provided by the Mississippi Office of Workforce Development * * *. Such transfers shall occur within fifteen (15) days after the
funds have resided in the * * * Workforce Investment and Training Accelerate Mississippi Workforce
Development Holding Bank 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 * * * Accelerate
Mississippi Workforce Development Holding Bank Account. In that
event such amounts shall be immediately withdrawn from the * * * Accelerate
Mississippi Workforce Development Holding Bank Account by the department
and redeposited into the clearing account.
SECTION 5. Section 43-17-1, Mississippi Code of 1972, is amended as follows:
43-17-1. (1) The State of Mississippi hereby accepts all of the mandatory provisions and benefits, with the exception of those provisions under which the state may exercise its options, of Title I of an act passed by the Senate and House of Representatives of the United States of America, in Congress assembled, entitled: "The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193)," and known as the Temporary Assistance to Needy Families (TANF) program.
(2) The Department of Human Services shall have all necessary authority to cooperate with the federal government in the administration of Public Law 104-193 and all subsequent federal amendments thereto, to administer any legislation pursuant thereto enacted by the State of Mississippi, and to administer the funds provided by the federal government and the State of Mississippi under the provisions of Section 43-17-1 et seq., for providing temporary assistance for needy families with minor children. The Department of Human Services shall have full authority to formulate state plans consistent with state law as necessary to administer and operate federal grant funds which provide temporary assistance for needy families with minor children under Title IV-A of the federal Social Security Act. The Department of Human Services shall identify in any state plan submitted to implement the TANF program those requirements or restrictions, including persons excluded from program participation which are required under federal law, and those program requirements or restrictions which the federal law authorizes but does not require.
(3) Any funds received by the State of Mississippi under the provisions of Public Law 104-193 shall be subject to appropriation by the Legislature and consistent with the terms and conditions required under such appropriation.
(4) The purpose of the Mississippi Temporary Assistance to Needy Families (TANF) program shall be to:
(a) Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives when such care is beneficial and may be monitored on a random basis by the Department of Human Services or the State Department of Health;
(b) End the dependence of needy families on government benefits by promoting job preparation, work and marriage through, among other things, job placement, job training and job retention;
(c) Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies;
(d) Encourage the formation and maintenance of two-parent families; and
(e) Prevent program fraud and abuse.
(5) The Department of Human Services shall develop outcome and output indicators for each program established under the authority of this section. These measures shall provide legislators and administrators with information which measures the success or failure of the department in implementing the programs implemented under the authority of this section. The department shall annually report to the Legislature the outputs and outcomes of these programs, with the first report due by December 15, 1997. Such reports shall include recommendations for making programs more effective or efficient which can be effected in accordance with federal law.
(6) Assistance may be granted under this chapter to any dependent child and a caretaker relative who are living in a suitable family home meeting the standards of care and health and work requirements fixed by the laws of this state, and the rules and regulations of the State Department of Human Services.
(7) The Department of Human Services shall collaborate with the Office of Workforce Development on TANF programs related to job placement, job training and job retention.
SECTION 6. Section 47-5-541, Mississippi Code of 1972, is amended as follows:
47-5-541. (1) The corporation shall be governed by a board of directors. The board of directors of the nonprofit corporation shall be composed of the following eleven (11) members who shall be appointed by the Governor with the advice and consent of the Senate: one (1) representative of the manufacturing industry, one (1) representative of the agriculture industry, one (1) representative of the banking and finance industry, one (1) representative of the labor industry, one (1) representative from the marketing industry and six (6) members from the state at large. In addition, the State Commissioner of Corrections and the President of Mississippi Delta Community College shall be ex officio members of the board of directors with full voting privileges. In making initial appointments, three (3) members shall be appointed for a term of two (2) years; four (4) members shall be appointed for a term of three (3) years; and four (4) members shall be appointed for a term of four (4) years; to be designated by the Governor at the time of appointment; and all succeeding terms shall be for four (4) years from the expiration date of the previous term. Initial appointments shall be made within thirty (30) days after passage of Sections 47-5-531 through 47-5-575. Any vacancy shall be filled by the Governor, with the advice and consent of the Senate. The officers of the corporation shall consist of a chairman, vice chairman and a secretary-treasurer. The officers shall be selected by the members of the board. However, the Commissioner of Corrections and the President of Mississippi Delta Community College shall not be eligible to serve as an officer of the corporation.
(2) The board of directors shall select and employ a chief executive officer of the corporation who shall serve at the pleasure of the board. The board shall set the compensation of the chief executive officer. The chief executive officer shall be responsible for the general business and entire operations of the corporation, and shall be responsible for operating the corporation in compliance with the bylaws of the corporation and in compliance with any provision of law. The board shall be authorized and empowered to do only those acts provided by law and by the bylaws of the corporation. Except as otherwise specifically provided by law, such board shall have the authority to establish prison industries, to cease the operation of any industry which it deems unsuitable or unprofitable, to enter into any lease or contract for the corporation and it shall have the full authority to establish prices for any industry good.
(3) No member of the board of directors shall vote on any matter that comes before the board that could result in pecuniary benefit for himself or for any entity in which such member has an interest.
(4) In addition to the board of directors, an advisory board may be set up for the benefit of each industry which is established pursuant to the provisions of Sections 47-5-531 through 47-5-575. Such boards shall be advisory only, and may be set up in the discretion of the board of directors of the corporation.
(5) Each member of the board of directors of the corporation shall receive per diem as provided in Section 25-3-69 for each day or fraction thereof spent in actual discharge of his official duties and shall be reimbursed for mileage and actual expenses incurred in the performance of his official duties in accordance with the requirements of Section 25-3-41, Mississippi Code of 1972.
(6) The board of directors shall make and publish policies, rules and regulations governing all business functions, including but not limited to accounting, marketing, purchasing and personnel, not inconsistent with the terms of Sections 47-5-531 through 47-5-575, as may be necessary for the efficient administration and operation of the corporation.
(7) The chief executive officer of the corporation shall:
(a) Employ all necessary employees of the corporation and dismiss them as is necessary;
(b) Administer the daily operations of the corporation, including establishing education, training and workforce development programs in collaboration with the Office of Workforce Development and other relevant state and federal agencies;
(c) Upon approval of the board of directors, execute any contracts on behalf of the corporation; and
(d) Take any further actions which are necessary and proper toward the achievement of the corporation purposes.
(8) A member of the board of directors of the corporation shall not be liable for any civil damages for any personal injury or property damage caused to a person as a result of any acts or omissions committed in good faith in the exercise of their duties as members of the board of directors of the corporation, except where a member of the board engages in acts or omissions which are intentional, willful, wanton, reckless or grossly negligent.
SECTION 7. This act shall take effect and be in force from and after its passage.