Bill No. PCS for CS/HB 15 (2021), Amendment No. 1 — Commerce Committee
Summary
Committee/Subcommittee Amendment No. 1 to Bill No. PCS for CS/HB 15 (2021), offered by Representative Nixon for the Commerce Committee hearing, described as an amendment with title amendment. It inserts between lines 177 and 178 a Section 2 that adds a new subsection (3) to section 443.036, Florida Statutes, defining "Alternative base period" as the four most recently completed calendar quarters before an individual's benefit year, if they qualify the individual for benefits. Sections 3 and 4 amend sections 443.091 and 443.111, Florida Statutes, so that wages are calculated using the alternative base period when a worker is ineligible based on base period wages, with minimum total base period wage credits of at least $3,400. A title amendment begins "An act relating to financial matters".
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. PCS for CS/HB 15 (2021)
Amendment No. 1
COMMITTEE/SUBCOMMITTEE ACTION
ADOPTED (Y/N)
ADOPTED AS AMENDED (Y/N)
ADOPTED W/O OBJECTION (Y/N)
FAILED TO ADOPT (Y/N)
WITHDRAWN (Y/N)
OTHER
1 Committee/Subcommittee hearing bill: Commerce Committee
2 Representative Nixon offered the following:
3
4 Amendment (with title amendment)
5 Between lines 177 and 178, insert:
6 Section 2. Subsections (3) through (46) of section
7 443.036, Florida Statutes, are renumbered as subsections (4)
8 through (47), respectively, a new subsection (3) is added to
9 that section, and present subsection (24) of that section is
10 amended, to read:
11 443.036 Definitions.—As used in this chapter, the term:
12 (3) "Alternative base period" means the four most recently
13 completed calendar quarters before an individual's benefit year,
14 if such quarters qualify the individual for benefits and were
15 not previously used to establish a prior valid benefit year.
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16 (25)(24) "High quarter" means the quarter in an
17 individual's base period, or in the individual's alternative
18 base period if an alternative base period is used for
19 determining benefits eligibility, in which the individual has
20 the greatest amount of wages paid, regardless of the number of
21 employers paying wages in that quarter.
22 Section 3. Paragraph (g) of subsection (1) of section
23 443.091, Florida Statutes, is amended to read:
24 443.091 Benefit eligibility conditions.—
25 (1) An unemployed individual is eligible to receive
26 benefits for any week only if the Department of Economic
27 Opportunity finds that:
28 (g) She or he has been paid wages for insured work equal
29 to 1.5 times her or his high quarter wages during her or his
30 base period, except that an unemployed individual is not
31 eligible to receive benefits if the base period wages are less
32 than $3,400. If an unemployed individual is ineligible for
33 benefits based on base period wages, his or her wages shall be
34 calculated using the alternative base period, and his or her
35 claim shall be established using such wages.
36 Section 4. Subsections (2) and (3) of section 443.111,
37 Florida Statutes, are amended to read:
38 443.111 Payment of benefits.—
39 (2) QUALIFYING REQUIREMENTS.—
40 (a) To establish a benefit year for reemployment
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41 assistance benefits, an individual must have:
42 1.(a) Wage credits in two or more calendar quarters of the
43 individual's base period or alternative base period.
44 2.(b) Minimum total base period wage credits equal to the
45 high quarter wages multiplied by 1.5, but at least $3,400 in the
46 base period, or in the alternative base period if the
47 alternative base period is used for benefits eligibility.
48 (b)1. If a worker is ineligible for benefits based on base
49 period wages, wages for that worker must be calculated using an
50 alternative base period and the claim shall be established using
51 such wages.
52 2. If the wage information for an individual's most
53 recently completed calendar quarter is unavailable to the
54 department from regular quarterly reports of systematically
55 accessible wage information, the department must promptly
56 contact the individual's employer to obtain the wage
57 information.
58 3. Wages that fall within the alternative base period of
59 claims established under this paragraph are not available for
60 reuse in qualifying for any subsequent benefit years.
61 4. The department shall adopt rules to administer this
62 paragraph.
63 (3) WEEKLY BENEFIT AMOUNT.—
64 (a) An individual's "weekly benefit amount" is an amount
65 equal to one twenty-sixth of the total wages for insured work
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66 paid during that quarter of the base period in which the total
67 wages paid were the highest, but not less than $32 or more than
68 $275. The weekly benefit amount, if not a multiple of $1, is
69 rounded downward to the nearest full dollar amount. The maximum
70 weekly benefit amount in effect at the time the claimant
71 establishes an individual weekly benefit amount is the maximum
72 benefit amount applicable throughout the claimant's benefit
73 year.
74 (b) The weekly benefit amount shall be based on either the
75 claimant's base period wages or alternative base period wages,
76 whichever period results in the greater benefit amount.
77 Section 5. Paragraph (a) of subsection (4) of section
78 215.425, Florida Statutes, is amended to read:
79 215.425 Extra compensation claims prohibited; bonuses;
80 severance pay.—
81 (4)(a) On or after July 1, 2011, a unit of government that
82 enters into a contract or employment agreement, or renewal or
83 renegotiation of an existing contract or employment agreement,
84 that contains a provision for severance pay with an officer,
85 agent, employee, or contractor must include the following
86 provisions in the contract:
87 1. A requirement that severance pay provided may not
88 exceed an amount greater than 20 weeks of compensation.
89 2. A prohibition of provision of severance pay when the
90 officer, agent, employee, or contractor has been fired for
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91 misconduct, as defined in s. 443.036(30) s. 443.036(29), by the
92 unit of government.
93 Section 6. Paragraph (a) of subsection (1) and paragraph
94 (f) of subsection (13) of section 443.1216, Florida Statutes,
95 are amended to read:
96 443.1216 Employment.—Employment, as defined in s. 443.036,
97 is subject to this chapter under the following conditions:
98 (1)(a) The employment subject to this chapter includes a
99 service performed, including a service performed in interstate
100 commerce, by:
101 1. An officer of a corporation.
102 2. An individual who, under the usual common-law rules
103 applicable in determining the employer-employee relationship, is
104 an employee. However, whenever a client, as defined in s.
105 443.036(19) s. 443.036(18), which would otherwise be designated
106 as an employing unit has contracted with an employee leasing
107 company to supply it with workers, those workers are considered
108 employees of the employee leasing company. An employee leasing
109 company may lease corporate officers of the client to the client
110 and other workers to the client, except as prohibited by
111 regulations of the Internal Revenue Service. Employees of an
112 employee leasing company must be reported under the employee
113 leasing company's tax identification number and contribution
114 rate for work performed for the employee leasing company.
115 a. However, except for the internal employees of an
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116 employee leasing company, each employee leasing company may make
117 a separate one-time election to report and pay contributions
118 under the tax identification number and contribution rate for
119 each client of the employee leasing company. Under the client
120 method, an employee leasing company choosing this option must
121 assign leased employees to the client company that is leasing
122 the employees. The client method is solely a method to report
123 and pay unemployment contributions, and, whichever method is
124 chosen, such election may not impact any other aspect of state
125 law. An employee leasing company that elects the client method
126 must pay contributions at the rates assigned to each client
127 company.
128 (I) The election applies to all of the employee leasing
129 company's current and future clients.
130 (II) The employee leasing company must notify the
131 Department of Revenue of its election by July 1, 2012, and such
132 election applies to reports and contributions for the first
133 quarter of the following calendar year. The notification must
134 include:
135 (A) A list of each client company and the unemployment
136 account number or, if one has not yet been issued, the federal
137 employment identification number, as established by the employee
138 leasing company upon the election to file by client method;
139 (B) A list of each client company's current and previous
140 employees and their respective social security numbers for the
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141 prior 3 state fiscal years or, if the client company has not
142 been a client for the prior 3 state fiscal years, such portion
143 of the prior 3 state fiscal years that the client company has
144 been a client must be supplied;
145 (C) The wage data and benefit charges associated with each
146 client company for the prior 3 state fiscal years or, if the
147 client company has not been a client for the prior 3 state
148 fiscal years, such portion of the prior 3 state fiscal years
149 that the client company has been a client must be supplied. If
150 the client company's employment record is chargeable with
151 benefits for less than 8 calendar quarters while being a client
152 of the employee leasing company, the client company must pay
153 contributions at the initial rate of 2.7 percent; and
154 (D) The wage data and benefit charges for the prior 3
155 state fiscal years that cannot be associated with a client
156 company must be reported and charged to the employee leasing
157 company.
158 (III) Subsequent to choosing the client method, the
159 employee leasing company may not change its reporting method.
160 (IV) The employee leasing company shall file a Florida
161 Department of Revenue Employer's Quarterly Report for each
162 client company by approved electronic means, and pay all
163 contributions by approved electronic means.
164 (V) For the purposes of calculating experience rates when
165 the client method is chosen, each client's own benefit charges
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166 and wage data experience while with the employee leasing company
167 determines each client's tax rate where the client has been a
168 client of the employee leasing company for at least 8 calendar
169 quarters before the election. The client company shall continue
170 to report the nonleased employees under its tax rate.
171 (VI) The election is binding on each client of the
172 employee leasing company for as long as a written agreement is
173 in effect between the client and the employee leasing company
174 pursuant to s. 468.525(3)(a). If the relationship between the
175 employee leasing company and the client terminates, the client
176 retains the wage and benefit history experienced under the
177 employee leasing company.
178 (VII) Notwithstanding which election method the employee
179 leasing company chooses, the applicable client company is an
180 employing unit for purposes of s. 443.071. The employee leasing
181 company or any of its officers or agents are liable for any
182 violation of s. 443.071 engaged in by such persons or entities.
183 The applicable client company or any of its officers or agents
184 are liable for any violation of s. 443.071 engaged in by such
185 persons or entities. The employee leasing company or its
186 applicable client company is not liable for any violation of s.
187 443.071 engaged in by the other party or by the other party's
188 officers or agents.
189 (VIII) If an employee leasing company fails to select the
190 client method of reporting not later than July 1, 2012, the
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191 entity is required to report under the employee leasing
192 company's tax identification number and contribution rate.
193 (IX) After an employee leasing company is licensed
194 pursuant to part XI of chapter 468, each newly licensed entity
195 has 30 days after the date the license is granted to notify the
196 tax collection service provider in writing of their selection of
197 the client method. A newly licensed employee leasing company
198 that fails to timely select reporting pursuant to the client
199 method of reporting must report under the employee leasing
200 company's tax identification number and contribution rate.
201 (X) Irrespective of the election, each transfer of trade
202 or business, including workforce, or a portion thereof, between
203 employee leasing companies is subject to the provisions of s.
204 443.131(3)(h) s. 443.131(3)(g) if, at the time of the transfer,
205 there is common ownership, management, or control between the
206 entities.
207 b. In addition to any other report required to be filed by
208 law, an employee leasing company shall submit a report to the
209 Labor Market Statistics Center within the Department of Economic
210 Opportunity which includes each client establishment and each
211 establishment of the leasing company, or as otherwise directed
212 by the department. The report must include the following
213 information for each establishment:
214 (I) The trade or establishment name;
215 (II) The former reemployment assistance account number, if
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216 available;
217 (III) The former federal employer's identification number,
218 if available;
219 (IV) The industry code recognized and published by the
220 United States Office of Management and Budget, if available;
221 (V) A description of the client's primary business
222 activity in order to verify or assign an industry code;
223 (VI) The address of the physical location;
224 (VII) The number of full-time and part-time employees who
225 worked during, or received pay that was subject to reemployment
226 assistance taxes for, the pay period including the 12th of the
227 month for each month of the quarter;
228 (VIII) The total wages subject to reemployment assistance
229 taxes paid during the calendar quarter;
230 (IX) An internal identification code to uniquely identify
231 each establishment of each client;
232 (X) The month and year that the client entered into the
233 contract for services; and
234 (XI) The month and year that the client terminated the
235 contract for services.
236 c. The report must be submitted electronically or in a
237 manner otherwise prescribed by the Department of Economic
238 Opportunity in the format specified by the Bureau of Labor
239 Statistics of the United States Department of Labor for its
240 Multiple Worksite Report for Professional Employer
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241 Organizations. The report must be provided quarterly to the
242 Labor Market Statistics Center within the department, or as
243 otherwise directed by the department, and must be filed by the
244 last day of the month immediately after the end of the calendar
245 quarter. The information required in sub-sub-subparagraphs b.(X)
246 and (XI) need be provided only in the quarter in which the
247 contract to which it relates was entered into or terminated. The
248 sum of the employment data and the sum of the wage data in this
249 report must match the employment and wages reported in the
250 reemployment assistance quarterly tax and wage report.
251 d. The department shall adopt rules as necessary to
252 administer this subparagraph, and may administer, collect,
253 enforce, and waive the penalty imposed by s. 443.141(1)(b) for
254 the report required by this subparagraph.
255 e. For the purposes of this subparagraph, the term
256 "establishment" means any location where business is conducted
257 or where services or industrial operations are performed.
258 3. An individual other than an individual who is an
259 employee under subparagraph 1. or subparagraph 2., who performs
260 services for remuneration for any person:
261 a. As an agent-driver or commission-driver engaged in
262 distributing meat products, vegetable products, fruit products,
263 bakery products, beverages other than milk, or laundry or
264 drycleaning services for his or her principal.
265 b. As a traveling or city salesperson engaged on a full-
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266 time basis in the solicitation on behalf of, and the
267 transmission to, his or her principal of orders from
268 wholesalers, retailers, contractors, or operators of hotels,
269 restaurants, or other similar establishments for merchandise for
270 resale or supplies for use in the business operations. This sub-
271 subparagraph does not apply to an agent-driver or a commission-
272 driver and does not apply to sideline sales activities performed
273 on behalf of a person other than the salesperson's principal.
274 4. The services described in subparagraph 3. are
275 employment subject to this chapter only if:
276 a. The contract of service contemplates that substantially
277 all of the services are to be performed personally by the
278 individual;
279 b. The individual does not have a substantial investment
280 in facilities used in connection with the services, other than
281 facilities used for transportation; and
282 c. The services are not in the nature of a single
283 transaction that is not part of a continuing relationship with
284 the person for whom the services are performed.
285 (13) The following are exempt from coverage under this
286 chapter:
287 (f) Service performed in the employ of a public employer
288 as defined in s. 443.036, except as provided in subsection (2),
289 and service performed in the employ of an instrumentality of a
290 public employer as described in s. 443.036(36)(b) or (c) s.
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291 443.036(35)(b) or (c), to the extent that the instrumentality is
292 immune under the United States Constitution from the tax imposed
293 by s. 3301 of the Internal Revenue Code for that service.
294 Section 7. Paragraph (f) of subsection (3) of section
295 443.131, Florida Statutes, is amended to read:
296 443.131 Contributions.—
297 (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT
298 EXPERIENCE.—
299 (f) Transfer of employment records.—
300 1. For the purposes of this subsection, two or more
301 employers who are parties to a transfer of business or the
302 subject of a merger, consolidation, or other form of
303 reorganization, effecting a change in legal identity or form,
304 are deemed a single employer and are considered to be one
305 employer with a continuous employment record if the tax
306 collection service provider finds that the successor employer
307 continues to carry on the employing enterprises of all of the
308 predecessor employers and that the successor employer has paid
309 all contributions required of and due from all of the
310 predecessor employers and has assumed liability for all
311 contributions that may become due from all of the predecessor
312 employers. In addition, an employer may not be considered a
313 successor under this subparagraph if the employer purchases a
314 company with a lower rate into which employees with job
315 functions unrelated to the business endeavors of the predecessor
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316 are transferred for the purpose of acquiring the low rate and
317 avoiding payment of contributions. As used in this paragraph,
318 notwithstanding s. 443.036(15) s. 443.036(14), the term
319 "contributions" means all indebtedness to the tax collection
320 service provider, including, but not limited to, interest,
321 penalty, collection fee, and service fee. A successor employer
322 must accept the transfer of all of the predecessor employers'
323 employment records within 30 days after the date of the official
324 notification of liability by succession. If a predecessor
325 employer has unpaid contributions or outstanding quarterly
326 reports, the successor employer must pay the total amount with
327 certified funds within 30 days after the date of the notice
328 listing the total amount due. After the total indebtedness is
329 paid, the tax collection service provider shall transfer the
330 employment records of all of the predecessor employers to the
331 successor employer's employment record. The tax collection
332 service provider shall determine the contribution rate of the
333 combined successor and predecessor employers upon the transfer
334 of the employment records, as prescribed by rule, in order to
335 calculate any change in the contribution rate resulting from the
336 transfer of the employment records.
337 2. Regardless of whether a predecessor employer's
338 employment record is transferred to a successor employer under
339 this paragraph, the tax collection service provider shall treat
340 the predecessor employer, if he or she subsequently employs
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341 individuals, as an employer without a previous employment record
342 or, if his or her coverage is terminated under s. 443.121, as a
343 new employing unit.
344 3. The state agency providing reemployment assistance tax
345 collection services may adopt rules governing the partial
346 transfer of experience rating when an employer transfers an
347 identifiable and segregable portion of his or her payrolls and
348 business to a successor employing unit. As a condition of each
349 partial transfer, these rules must require the following to be
350 filed with the tax collection service provider: an application
351 by the successor employing unit, an agreement by the predecessor
352 employer, and the evidence required by the tax collection
353 service provider to show the benefit experience and payrolls
354 attributable to the transferred portion through the date of the
355 transfer. These rules must provide that the successor employing
356 unit, if not an employer subject to this chapter, becomes an
357 employer as of the date of the transfer and that the transferred
358 portion of the predecessor employer's employment record is
359 removed from the employment record of the predecessor employer.
360 For each calendar year after the date of the transfer of the
361 employment record in the records of the tax collection service
362 provider, the service provider shall compute the contribution
363 rate payable by the successor employer or employing unit based
364 on his or her employment record, combined with the transferred
365 portion of the predecessor employer's employment record. These
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366 rules may also prescribe what contribution rates are payable by
367 the predecessor and successor employers for the period between
368 the date of the transfer of the transferred portion of the
369 predecessor employer's employment record in the records of the
370 tax collection service provider and the first day of the next
371 calendar year.
372 4. This paragraph does not apply to an employee leasing
373 company and client contractual agreement as defined in s.
374 443.036, except as provided in s. 443.1216(1)(a)2.a. The tax
375 collection service provider shall, if the contractual agreement
376 is terminated or the employee leasing company fails to submit
377 reports or pay contributions as required by the service
378 provider, treat the client as a new employer without previous
379 employment record unless the client is otherwise eligible for a
380 variation from the standard rate.
381
382
383 -----------------------------------------------------
384 T I T L E A M E N D M E N T
385 Remove line 2 and insert:
386 An act relating to financial matters; providing a short title;
387 amending s. 443.036, F.S.; defining and revising terms for
388 purposes of the Reemployment Assistance Program Law; amending s.
389 443.091, F.S.; revising conditions under which an individual may
390 qualify for reemployment assistance benefits; amending s.
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391 443.111, F.S.; requiring an alternative base period to be used
392 under certain circumstances when calculating wages in
393 determining qualification for reemployment assistance benefits;
394 requiring the Department of Economic Opportunity to contact an
395 individual's employer if certain wage information is unavailable
396 through specified means; specifying that wages that fall within
397 an alternative base period are not available for reuse in
398 subsequent benefit years; requiring the department to adopt
399 rules; providing that weekly benefit amounts be determined based
400 on the greater of the base period or alternative base period;
401 ss. 215.425, 443.1216, and 443.131, F.S.; conforming cross-
402 references; providing a short title;
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