11 LC 36 1838S
House Bill 292 (COMMITTEE SUBSTITUTE)
By: Representatives Hembree of the 67th, Houston of the 170th, Rogers of the 26th, and England of the 108th


A BILL TO BE ENTITLED
AN ACT


To amend Chapter 8 of Title 34 of the Official Code of Georgia Annotated, relating to employment security, so as to extend certain contribution rates and credits; to change certain provisions relating to benefit experience; to extend suspension of adjustments based upon the State-wide Reserve Ratio for the calendar year 2012; to provide for an increase in the overall rate; to continue provisions relating to administrative assessments; to extend the provision relating to automatic repeal; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Chapter 8 of Title 34 of the Official Code of Georgia Annotated, relating to employment security, is amended by revising Code Section 34-8-151, relating to the rate of employer contributions, as follows:
"34-8-151.
(a) For periods prior to April 1, 1987, or after December 31, 2011 2016, each new or newly covered employer shall pay contributions at a rate of 2.7 percent of wages paid by such employer with respect to employment during each calendar year until the employer is eligible for a rate calculation based on experience as defined in this chapter, except as provided in Code Sections 34-8-158 through 34-8-162.
(b) For periods on or after April 1, 1987, but on or before December 31, 1999, each new or newly covered employer shall pay contributions at a rate of 2.64 percent of wages paid by such employer with respect to employment during each calendar year until the employer is eligible for a rate calculation based on experience as defined in this chapter, except as provided in Code Sections 34-8-158 through 34-8-162.
(c) For periods on or after January 1, 2000, but on or before December 31, 2011 2016, each new or newly covered employer shall pay contributions at a rate of 2.62 percent of wages paid by such employer with respect to employment during each calendar year until the employer is eligible for a rate calculation based on experience as defined in this chapter, except as provided in Code Sections 34-8-158, 34-8-159, 34-8-160, 34-8-161, and through 34-8-162."

SECTION 2.
Said chapter is further amended by revising the introductory language to subsections (c) and (e) of Code Section 34-8-155, relating to benefit experience, as follows:
"(c) For the periods prior to April 1, 1987, or after December 31, 2011 2016, variations from the standard rate of contributions shall be determined in accordance with the following requirements:"
"(e) For the periods on or after January 1, 2000, but on or before December 31, 2011 2016, variations from the standard rate of contributions shall be determined in accordance with the following requirements:"

SECTION 3.
Said chapter is further amended by revising subparagraph (d)(4)(B) of Code Section 34-8-156, relating to the State-wide Reserve Ratio, as follows:
"(B) Except for any year or portion of a year during which the provisions of paragraph (1) of subsection (f) of Code Section 34-8-155 apply, when the State-wide Reserve Ratio, as calculated above, is less than 1.7 percent, there shall be an overall increase in the rate, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155 in accordance with the following table:
If the State-wide Reserve Ratio:
Equals or
Exceeds
But Is
Less Than
Overall
Increase
1.5 percent
1.7 percent
25 percent
1.25 percent
1.5 percent
50 percent
0.75 percent
1.25 percent
75 percent
Under 0.75 percent
100 percent
provided, however, that for the periods of January 1 through December 31, 2004; January 1 through December 31, 2005; and January 1 through December 31, 2006, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.00 percent on the computation date with respect to rates applicable to calendar year 2004, 2005, or 2006, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 35 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155; and provided, further, that for the periods of January 1 through December 31, 2007, January 1 through December 31, 2008, January 1 through December 31, 2009, January 1 through December 31, 2010, and January 1 through December 31, 2011, and January 1 through December 31, 2012, the overall increase in the rate required under this subparagraph shall be suspended and the provisions of this subparagraph shall be null and void, except in the event the State-wide Reserve Ratio, as calculated above, is less than 1.25 percent on the computation date with respect to rates applicable to calendar year 2007, 2008, 2009, 2010, or 2011, or 2012, then for each such year the Commissioner of Labor shall have the option of imposing an increase in the overall rate of up to 3550 percent, as of the computation date, for each employer whose rate is computed under a rate table in Code Section 34-8-155."

SECTION 4.
Said chapter is further amended by revising subsection (b) of Code Section 34-8-180, relating to an administrative assessment on all wages, as follows:
"(b) For the periods on or after January 1, 2000, but on or before December 31, 2011 2016, there is created an administrative assessment of 0.08 percent to be assessed upon all wages as defined in Code Section 34-8-49, except the wages of:
(1) Those employers who have elected to make payments in lieu of contributions as provided by Code Section 34-8-158 or who are liable for the payment of contributions as provided in said Code section; or
(2) Those employers who, by application of the State-wide Reserve Ratio as provided in Code Section 34-8-156, have been assigned the minimum positive reserve rate or the maximum deficit reserve rate."

SECTION 5.
Said chapter is further amended by revising subsection (b) of Code Section 34-8-181, relating to an additional administrative assessment for new or newly covered employers, as follows:
"(b) For the periods on or after January 1, 2000, but on or before December 31, 2011 2016, in addition to the rate paid under Code Section 34-8-151, each new or newly covered employer shall pay an administrative assessment of 0.08 percent of wages payable by it with respect to employment during each calendar year until it is eligible for a rate calculation based on experience as defined in this chapter, except as provided in Code Section 34-8-158."
SECTION 6.
Said chapter is further amended by revising Code Section 34-8-185, relating to the automatic repeal of Article 6, as follows:
"34-8-185.
This article shall stand repealed in its entirety on December 31, 2011 2016."

SECTION 7.
This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 8.
All laws and parts of laws in conflict with this Act are repealed.