Bill Text: FL S1728 | 2011 | Regular Session | Introduced
Bill Title: Unemployment Compensation [Track Bill]
Status: 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1728 Detail]
Florida Senate - 2011 SB 1728 By Senator Latvala 16-00783A-11 20111728__ 1 A bill to be entitled 2 An act relating to unemployment compensation; amending 3 s. 443.036, F.S.; defining the terms “community 4 service” and “reemployment services”; amending s. 5 443.091, F.S.; providing that an unemployed individual 6 is eligible to receive benefits if he or she 7 participates in a community service program 8 administered by a one-stop career center; amending ss. 9 443.1216 and 443.131, F.S.; conforming cross 10 references; providing an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Present subsections (13) through (36) of section 15 443.036, Florida Statutes, are renumbered as subsections (14) 16 through (37), respectively, present subsections (37) through 17 (45) of that subsection are renumbered as subsections (39) 18 through (47), respectively, and amended, and new subsections 19 (13) and (38) are added to that section, to read: 20 443.036 Definitions.—As used in this chapter, the term: 21 (13) “Community service” means any program operated by a 22 one-stop career center in which unemployed persons are required 23 to perform volunteer services for private nonprofit or public 24 entities. 25 (14)
(13)“Contributing employer” means an employer who is 26 liable for contributions under this chapter. 27 (15) (14)“Contribution” means a payment of payroll tax to 28 the Unemployment Compensation Trust Fund which is required under29 this chapterto finance unemployment benefits. 30 (16) (15)“Crew leader” means an individual who: 31 (a) Furnishes individuals to perform service in 32 agricultural labor for another person. 33 (b) Pays, eitheron his or her own behalf or on behalf of 34 the other person, the individuals furnished by him or her for 35 the service in agricultural labor performed by those 36 individuals. 37 (c) Has not entered into a written agreement with the other 38 person under which the individual is designated as an employee 39 of the other person. 40 (17) (16)“Earned income” means gross remuneration derived 41 from work, professional service, or self-employment. The term 42 includes commissions, bonuses, back pay awards, and the cash 43 value of all remuneration paid in a medium other than cash. The 44 term does not include income derived from invested capital or 45 ownership of property. 46 (18) (17)“Educational institution” means an institution, 47 except for an institution of higher education: 48 (a) In which participants, trainees, or students are 49 offered an organized course of study or training designed to 50 transfer to them knowledge, skills, information, doctrines, 51 attitudes, or abilities from, by, or under the guidance of, an 52 instructor or teacher; 53 (b) Which Thatis approved, licensed, or issued a permit to 54 operate as a school by the Department of Education or other 55 governmental agency that is authorized within the state to 56 approve, license, or issue a permit for the operation of a 57 school; and 58 (c) Which Thatoffers courses of study or training which 59 are academic, technical, trade, or preparation for gainful 60 employment in a recognized occupation. 61 (19) (18)“Employee leasing company” means an employing unit 62 that has a valid and active license under chapter 468, and that63 maintains the records required by s. 443.171(5), and produces ,64 in addition, is responsible for producingquarterly reports 65 concerning the clients and the internal staff of the employee 66 leasing company and the internal staff of the employee leasing67 company. As used in this subsection, the term “client” means a 68 party who has contracted with an employee leasing company that 69 provides to provide a worker, orworkers ,to perform services 70 for the client. Leased employees include employees subsequently 71 placed on the payroll of the employee leasing company on behalf 72 of the client. An employee leasing company must notify the tax 73 collection service provider within 30 days after the initiation 74 or termination of the company’s relationship with a anyclient 75 company under chapter 468. 76 (20) (19)“Employer” means an employing unit subject to this 77 chapter under s. 443.1215. 78 (21) (20)“Employing unit” means an individual; an or typ e79 oforganization, including a partnership, limited liability 80 company, association, trust, estate, joint-stock company, 81 insurance company, or corporation, whether domestic or foreign; 82 the receiver, trustee in bankruptcy, trustee, or successor of 83 any of the foregoing; or the legal representative of a deceased 84 person, who whichhas or had in his or her itsemploy one or 85 more individuals performing services for it within this state. 86 (a) Each individual employed to perform or to assist in 87 performing the work of any agent or employee of an employing 88 unit is deemed to be employed by the employing unit for the89 purposes of this chapter,regardless of whether the individual 90 was hired or paid directly by the employing unit or by an agent 91 or employee of the employing unit, if the employing unit had 92 actual or constructive knowledge of the work. 93 (b) Each individual performing services in this state for 94 an employing unit maintaining at least two separate 95 establishments in this state is deemed to be performing services 96 for a single employing unit for the purposes of this chapter. 97 (c) A person who is an officer of a corporation, or a 98 member of a limited liability company classified as a 99 corporation for federal income tax purposes, and who performs 100 services for the corporation or limited liability company in 101 this state, regardless of whether those services are continuous, 102 is deemed an employee of the corporation or the limited 103 liability company during all of each week of his or her tenure 104 of office, regardless of whether he or she is compensated for 105 those services. Services are presumed to be rendered for the 106 corporation if in cases in whichthe officer is compensated by 107 means other than dividends upon shares of stock of the 108 corporation owned by him or her. 109 (d) A limited liability company shall be treated as having 110 the same status as it is classified for federal income tax 111 purposes. However, a single-member limited liability company 112 shall be treated as the employer. 113 (22) (21)“Employment” means a service subject to this114 chapter unders. 443.1216 which is performed by an employee for 115 his or her employer the person employing him or her. 116 (23) (22)“Farm” includes stock, dairy, poultry, fruit, fur 117 bearing animal, and truck farms, plantations, ranches, 118 nurseries, ranges, greenhouses or other similar structures used 119 primarily for the raising of agricultural or horticultural 120 commodities, and orchards. 121 (24) (23)“Fund” means the Unemployment Compensation Trust 122 Fund created under this chapter,into which all contributions 123 and reimbursements required under this chapter are deposited and 124 from which all benefits provided under this chapter are paid. 125 (25) (24)“High quarter” means the quarter in an 126 individual’s base period in which the individual has the 127 greatest amount of wages paid, regardless of the number of 128 employers paying wages in that quarter. 129 (26) (25)“Hospital” means an establishment institution that130 islicensed as a hospital under chapter 395 , certified, or131 approved by the Agency for Health Care Administration as a132 hospital. 133 (27) (26)“Institution of higher education” means an 134 educational institution that: 135 (a) Admits as regular students only individuals having a 136 certificate of graduation from a high school, or the recognized 137 equivalent of a certificate of graduation; 138 (b) Is legally authorized in this state to provide a 139 program of education beyond high school; 140 (c) Provides an educational program that for which it141 awards a bachelor’s or higher degree, or provides a programthat 142 is acceptable for full credit toward a bachelor’s or higher 143 degree; a program of postgraduate or postdoctoral studies; or a 144 program of training to prepare students for gainful employment 145 in a recognized occupation; and 146 (d) Is a public or other nonprofit institution. 147 148 The term includes each community college and state university in 149 this state, and any each otherinstitution in this state 150 authorized under s. 1005.03to use the designation “college” or 151 “university .” under s. 1005.03. 152 (28) (27)“Insured work” means employment for employers. 153 (29) (28)“Leave of absence” means a temporary break in 154 service to an employer, for a specified period of time, during 155 which the employing unit guarantees the same or a comparable 156 position to the worker at the expiration of the leave. 157 (30) (29)“Misconduct” includes, but is not limited to, the 158 following, which may not be construed in pari materia with each 159 other: 160 (a) Conduct demonstrating willful or wanton disregard of an 161 employer’s interests and found to be a deliberate violation or 162 disregard of the standards of behavior which the employer has a 163 right to expect of his or her employee; or 164 (b) Carelessness or negligence to a degree or recurrence 165 that manifests culpability, wrongful intent, or evil design or 166 shows an intentional and substantial disregard of the employer’s 167 interests or of the employee’s duties and obligations to his or 168 her employer. 169 (31) (30)“Monetary determination” means a determination of 170 whether and in what amount a claimant is eligible for benefits 171 based on the claimant’s employment during the base period of the 172 claim. 173 (32) (31)“Nonmonetary determination” means a determination 174 of the claimant’s eligibility for benefits based on an issue 175 other than monetary entitlement and benefit overpayment. 176 (33) (32)“Not in the course of the employer’s trade or 177 business” means not promoting or advancing the trade or business 178 of the employer. 179 (34) (33)“One-stop career center” means a service site 180 established and maintained as part of the one-stop delivery 181 system under s. 445.009. 182 (35) (34)“Pay period” means a period of31 or fewer 183 consecutive days for which a payment or remuneration is 184 ordinarily made to the employee by the person employing him or 185 her. 186 (36) (35)“Public employer” means: 187 (a) A state agency or political subdivision of the state; 188 (b) An instrumentality that is wholly owned by one or more 189 state agencies or political subdivisions of the state; or 190 (c) An instrumentality that is wholly owned by one or more 191 state agencies, political subdivisions, or instrumentalities of 192 the state and one or more state agencies or political 193 subdivisions of one or more other states. 194 (37) (36)“Reasonable assurance” means a written or verbal 195 agreement, an agreement between an employer and a worker 196 understood through tradition within the trade or occupation, or 197 an agreement defined in an employer’s policy. 198 (38) “Reemployment services” means all activities provided 199 to unemployed persons which are designed to assist them in 200 finding work, including, but not limited to: 201 (a) Job search, referral and placement assistance, and 202 provision of labor market information. 203 (b) Creation of an individualized employability development 204 plan that is developed by a case manager and job seeker and 205 includes career goals, work history, certification, and services 206 required to meet such goals. The plan is agreed to by the job 207 seeker who must meet each goal in order to continue 208 participating in job training programs. 209 (c) Assessment of skill levels, abilities, and aptitudes. 210 (d) Career guidance, if appropriate, and referral to 211 training as required. 212 (e) Job search workshops such as resume writing and 213 interviewing classes. 214 (d) Community service programs operated by a one-stop 215 career center. 216 (39) (37)“Reimbursement” means a payment of money to the 217 Unemployment Compensation Trust Fund in lieu of a contribution 218 which is required under this chapter to finance unemployment 219 benefits. 220 (40) (38)“Reimbursing employer” means an employer who is 221 liable for reimbursements in lieu of contributions made under 222 this chapter. 223 (41) (39)“State” includes the states of the United States, 224 the District of Columbia, Canada, the Commonwealth of Puerto 225 Rico, and the Virgin Islands. 226 (42) (40)“State law” means the unemployment insurance law 227 of any state, approved by the United States Secretary of Labor 228 under s. 3304 of the Internal Revenue Code of 1954. 229 (43) (41)“Tax collection service provider” or “service 230 provider” means the state agency providing unemployment tax 231 collection services under contract with the Agency for Workforce 232 Innovation through an interagency agreement pursuant to s. 233 443.1316. 234 (44) (42)“Temporary layoff” means a job separation due to 235 lack of work which does not exceed 8 consecutive weeks and which 236 has a fixed or approximate return-to-work date. 237 (45) (43)“Unemployment” or “unemployed” means: 238 (a) An individual is “totally unemployed” in any week 239 during which he or she does not perform any services and for 240 which earned income is not payable to him or her. An individual 241 is “partially unemployed” in any week of less than full-time 242 work if the earned income payable to him or her for that week is 243 less than his or her weekly benefit amount. The Agency for 244 Workforce Innovation may adopt rules prescribing distinctions in 245 the procedures for unemployed individuals based on total 246 unemployment, part-time unemployment, partial unemployment of 247 individuals attached to their regular jobs, and other forms of 248 short-time work. 249 (b) An individual’s week of unemployment commences only 250 after his or her registration with the Agency for Workforce 251 Innovation as required in s. 443.091, except as the agency may 252 otherwise prescribe by rule. 253 (46) (44)“Wages” means remuneration subject to this chapter 254 under s. 443.1217. 255 (47) (45)“Week” means a period of7 consecutive days as 256 defined in the rules of the Agency for Workforce Innovation. The 257 Agency for Workforce Innovation may by rule prescribe that a 258 week is deemed to be “in,” “within,” or “during” the benefit 259 year that contains the greater part of the week. 260 Section 2. Subsection (1) of section 443.091, Florida 261 Statutes, is amended to read: 262 443.091 Benefit eligibility conditions.— 263 (1) An unemployed individual is eligible to receive 264 benefits for any week only if the Agency for Workforce 265 Innovation finds that: 266 (a) She or he has made a claim for benefits for that week 267 in accordance with the rules adopted by the Agency for Workforce 268 Innovation. 269 (b) She or he has registered with the agency for work and 270 subsequently reports to the one-stop career center as directed 271 by the regional workforce board for reemployment services. This 272 requirement does not apply to persons who are: 273 1. Non-Florida residents; 274 2. On a temporary layoff , as defined in s. 443.036 (42); 275 3. Union members who customarily obtain employment through 276 a union hiring hall; or 277 4. Claiming benefits under an approved short-time 278 compensation plan as provided in s. 443.1116. 279 (c) To make continued claims for benefits, she or he is 280 reporting to the agency in accordance with its rules. These 281 rules may not conflict with s. 443.111(1)(b), including the 282 requirement that each claimant continue to report regardless of 283 any pending appeal relating to her or his eligibility or 284 disqualification for benefits. 285 (d) She or he is able to work and is available for work. In 286 order to assess eligibility for a claimed week of unemployment, 287 the agency shall develop criteria to determine a claimant’s 288 ability to work and availability for work. However: 289 1. Notwithstanding any other provision of this paragraph or 290 paragraphs (b) and (e), an otherwise eligible individual may not 291 be denied benefits for any week because she or he is in training 292 with the approval of the agency, or by reason of s. 443.101(2) 293 relating to failure to apply for, or refusal to accept, suitable 294 work. Training may be approved by the agency in accordance with 295 criteria prescribed by rule. A claimant’s eligibility during 296 approved training is contingent upon satisfying eligibility 297 conditions prescribed by rule. 298 2. Notwithstanding any other provision of this chapter, an 299 otherwise eligible individual who is in training approved under 300 s. 236(a)(1) of the Trade Act of 1974, as amended, may not be 301 determined ineligible or disqualified for benefits due to her or 302 his enrollment in such training or because of leaving work that 303 is not suitable employment to enter such training. As used in 304 this subparagraph, the term “suitable employment” means work of 305 a substantially equal or higher skill level than the worker’s 306 past adversely affected employment, as defined for purposes of 307 the Trade Act of 1974, as amended, the wages for which are at 308 least 80 percent of the worker’s average weekly wage as 309 determined for purposes of the Trade Act of 1974, as amended. 310 3. Notwithstanding any other provision of this section, an 311 otherwise eligible individual may not be denied benefits for any 312 week because she or he is before any state or federal court 313 pursuant to a lawfully issued summons to appear for jury duty. 314 4. Notwithstanding any other provision of this section, an 315 otherwise eligible individual may not be denied benefits for any 316 week because she or he is participating in a community service 317 program as provided in paragraph (f). 318 (e) She or he participates in reemployment services, such 319 as job search assistance services if , wheneverthe individual 320 has been determined, by a profiling system established by agency 321 rule, to be likely to exhaust regular benefits and to be in need 322 of reemployment services. 323 (f) She or he participates in a community service program 324 administered by a one-stop career center. This requirement 325 applies only to claims in which the 12th week of his or her 326 regular benefits falls after July 2, 2011. 327 (g) (f)She or he has been unemployed for a waiting period 328 of 1 week. A week may not be counted as a week of unemployment 329 under this subsection unless: 330 1. UnlessIt occurs within the benefit year that includes 331 the week for which she or he claims payment of benefits. 332 2. IfBenefits have been paid for that week. 333 3. UnlessThe individual was eligible for benefits for that 334 week as provided in this section and s. 443.101, except for the 335 requirements of this subsection and of s. 443.101(5). 336 (h) (g)She or he has been paid wages for insured work equal 337 to 1.5 times her or his high quarter wages during her or his 338 base period, except that an unemployed individual is not 339 eligible to receive benefits if the base period wages are less 340 than $3,400. 341 (i) (h)She or he submitted to the agency a valid social 342 security number assigned to her or him. The agency may verify 343 the social security number with the United States Social 344 Security Administration and maydeny benefits if the agency is 345 unable to verify the individual’s social security number, the 346 social security number is invalid, or the social security number 347 is not assigned to the individual. 348 Section 3. Paragraph (a) of subsection (1) and paragraph 349 (f) of subsection (13) of section 443.1216, Florida Statutes, 350 are amended to read: 351 443.1216 Employment.—Employment, as defined in s. 443.036, 352 is subject to this chapter under the following conditions: 353 (1)(a) The employment subject to this chapterincludes a 354 service performed, including a service performed in interstate 355 commerce, by: 356 1. An officer of a corporation. 357 2. An individual who, under the usual common-law rules 358 applicable for indetermining the employer-employee 359 relationship, is an employee. However, if whenevera client who ,360 as defined in s. 443.036 (18), whichwould otherwise be 361 designated as an employing unit has contracted with an employee 362 leasing company to supply it with workers, those workers are 363 considered employees of the employee leasing company. An 364 employee leasing company may lease corporate officers of the 365 client to the client and other workers to the client, except as 366 prohibited by regulations of the Internal Revenue Service. 367 Employees of an employee leasing company must be reported under 368 the employee leasing company’s tax identification number and 369 contribution rate for work performed for the employee leasing 370 company. 371 a. In addition to any other report required to be filed by 372 law, an employee leasing company shall submit a report to the 373 Labor Market Statistics Center within the Agency for Workforce 374 Innovation which includes each client establishment and each 375 establishment of the employee leasing company, or as otherwise 376 directed by the agency. The report must include the following 377 information for each establishment: 378 (I) The trade or establishment name; 379 (II) The former unemployment compensation account number, 380 if available; 381 (III) The former federal employer’s identification number 382 (FEIN), if available; 383 (IV) The industry code recognized and published by the 384 United States Office of Management and Budget, if available; 385 (V) A description of the client’s primary business activity 386 in order to verify or assign an industry code; 387 (VI) The address of the physical location; 388 (VII) The number of full-time and part-time employees who 389 worked during, or received pay that was subject to unemployment 390 compensation taxes for, the pay period including the 12th of the 391 month for each month of the quarter; 392 (VIII) The total wages subject to unemployment compensation 393 taxes paid during the calendar quarter; 394 (IX) An internal identification code to uniquely identify 395 each establishment of each client; 396 (X) The month and year that the client entered into the 397 contract for services; and 398 (XI) The month and year that the client terminated the 399 contract for services. 400 b. The report shall be submitted electronically or as in a401 mannerotherwise prescribed by the Agency for Workforce 402 Innovation and in the format specified by the Bureau of Labor 403 Statistics of the United States Department of Labor for its 404 Multiple Worksite Report for Professional Employer 405 Organizations. The report must be provided quarterly to the 406 Labor Market Statistics Center within the Agency for Workforce 407 Innovation, or as otherwise directed by the agency, and must be 408 filed by the last day of the month immediately following the end 409 of the calendar quarter. The information required in sub-sub 410 subparagraphs a.(X) and (XI) need be provided only in the 411 quarter in which the contract to which it relates was entered 412 into or terminated. The sum of the employment data and the sum 413 of the wage data in the thisreport must match the employment 414 and wages reported in the unemployment compensation quarterly 415 tax and wage report. A report is not required for any calendar 416 quarter preceding the third calendar quarter of 2010. 417 c. The Agency for Workforce Innovation shall adopt rules as 418 necessary to administer this subparagraph, and may administer, 419 collect, enforce, and waive the penalty imposed by s. 420 443.141(1)(b) for the report required by this subparagraph. 421 d. For the purposes of this subparagraph, the term 422 “establishment” means any location where business is conducted 423 or where services or industrial operations are performed. 424 3. An individual other than an individual who is an 425 employee under subparagraph 1. or subparagraph 2., who performs 426 services for remuneration for any person: 427 a. As an agent-driver or commission-driver engaged in 428 distributing meat products, vegetable products, fruit products, 429 bakery products, beverages other than milk, or laundry or 430 drycleaning services for his or her principal. 431 b. As a traveling or city salesperson engaged on a full 432 time basis in the solicitation on behalf of, and the 433 transmission to, his or her principal of orders from 434 wholesalers, retailers, contractors, or operators of hotels, 435 restaurants, or other similar establishments for merchandise for 436 resale or supplies for use in their business operations. This 437 sub-subparagraph does not apply to an agent-driver, ora 438 commission-driver, or and does not apply tosideline sales 439 activities performed on behalf of a person other than the 440 salesperson’s principal. 441 4. The services described in subparagraph 3. are employment 442 subject to this chapter only if: 443 a. The contract of service contemplates that substantially 444 all of the services are to be performed personally by the 445 individual; 446 b. The individual does not have a substantial investment in 447 facilities used in connection with the services, other than 448 facilities used for transportation; and 449 c. The services are not in the nature of a single 450 transaction that is not part of a continuing relationship with 451 the person for whom the services are performed. 452 (13) The following are exempt from coverage under this 453 chapter: 454 (f) Service performed in the employ of a public employer as455 defined in s. 443.036, except as provided in subsection (2), and 456 service performed in the employ of an instrumentality of a 457 public employer as described in s. 443.036(36)(b) or (c) s.458 443.036 (35)(b) or (c), to the extent that the instrumentality is 459 immune under the United States Constitution from the tax imposed 460 by s. 3301 of the Internal Revenue Code for that service. 461 Section 4. Paragraph (f) of subsection (3) of section 462 443.131, Florida Statutes, is amended to read: 463 443.131 Contributions.— 464 (3) VARIATION OF CONTRIBUTION RATES BASED ON BENEFIT 465 EXPERIENCE.— 466 (f) Transfer of employment records.— 467 1. For the purposes of this subsection, two or more 468 employers who are parties to a transfer of business or the 469 subject of a merger, consolidation, or other form of 470 reorganization, effecting a change in legal identity or form, 471 are deemed a single employer and are considered to be one 472 employer with a continuous employment record if the tax 473 collection service provider finds that the successor employer 474 continues to carry on the employing enterprises of all of the 475 predecessor employers, and that the successor employerhas paid 476 all contributions required of and due from all of the 477 predecessor employers, and has assumed liability for all 478 contributions that may become due from all of the predecessor 479 employers. In addition,An employer may not be considered a 480 successor under this subparagraph if the employer purchases a 481 company with a lower rate into which employees with job 482 functions unrelated to the business endeavors of the predecessor 483 are transferred for the purpose of acquiring the low rate and 484 avoiding payment of contributions. As used in this paragraph,485 Notwithstanding s. 443.036(15) s. 443.036 (14), the term 486 “contributions,” as used in this paragraph, means all 487 indebtedness to the tax collection service provider, including, 488 but not limited to, interest, penalty, collection fee, and 489 service fee. 490 2. A successor employer must accept the transfer of all of 491 the predecessor employers’ employment records within 30 days 492 after the date of the official notification of liability by 493 succession. If a predecessor employer has unpaid contributions 494 or outstanding quarterly reports, the successor employer must 495 pay the total amount with certified funds within 30 days after 496 the date of the notice listing the total amount due. After the 497 total indebtedness is paid, the tax collection service provider 498 shall transfer the employment records of all of the predecessor 499 employers to the successor employer’s employment record. The tax 500 collection service provider shall determine the contribution 501 rate of the combined successor and predecessor employers upon 502 the transfer of the employment records, as prescribed by rule, 503 in order to calculate any change in the contribution rate 504 resulting from the transfer of the employment records. 505 3. 2.Regardless of whether a predecessor employer’s 506 employment record is transferred to a successor employer under 507 this paragraph, the tax collection service provider shall treat 508 the predecessor employer, if he or she subsequently employs 509 individuals, as an employer without a previous employment record 510 or, if his or her coverage is terminated under s. 443.121, as a 511 new employing unit. 512 4. 3.The state agency providing unemployment tax collection 513 services may adopt rules governing the partial transfer of 514 experience rating when an employer transfers an identifiable and 515 segregable portion of his or her payrolls and business to a 516 successor employing unit. As a condition of each partial 517 transfer, these rules must require the following to be filed 518 with the tax collection service provider: an application by the 519 successor employing unit, an agreement by the predecessor 520 employer, and the evidence required by the tax collection 521 service provider to show the benefit experience and payrolls 522 attributable to the transferred portion through the date of the 523 transfer. These rules must provide that the successor employing 524 unit, if not an employer subject to this chapter, becomes an 525 employer as of the date of the transfer and that the transferred 526 portion of the predecessor employer’s employment record is 527 removed from the employment record of the predecessor employer. 528 For each calendar year after the date of the transfer of the 529 employment record in the records of the tax collection service 530 provider, the service provider shall compute the contribution 531 rate payable by the successor employer or employing unit based 532 on his or her employment record, combined with the transferred 533 portion of the predecessor employer’s employment record. These 534 rules may also prescribe what contribution rates are payable by 535 the predecessor and successor employers for the period between 536 the date of the transfer of the transferred portion of the 537 predecessor employer’s employment record in the records of the 538 tax collection service provider and the first day of the next 539 calendar year. 540 5. 4.This paragraph does not apply to an employee leasing 541 company and client contractual agreement as defined in s.542 443.036. The tax collection service provider shall, if the 543 contractual agreement is terminated or the employee leasing 544 company fails to submit reports or pay contributions as required 545 by the service provider, treat the client as a new employer 546 without previous employment record unless the client is 547 otherwise eligible for a variation from the standard rate. 548 Section 5. This act shall take effect July 1, 2011.