Arkansas 2023 Regular Session

Arkansas House Bill HB1430 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 196 of the Regular Session
3	2		ANS203 02-22-2023 09:57:01 ANS203
4	3
5	4		State of Arkansas As Engrossed: H2/22/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 HOUSE BILL 1430 3
8	7		4
9	8		By: Representatives Lundstrum, Beaty Jr., Bentley, Burkes, C. Cooper, 5
10	9		Duffield, Haak, D. Hodges, Ladyman, Long, Maddox, McCollum, Pilkington, Ray, 6
11	10		R. Scott Richardson, Rye, Underwood, Unger 7
12	11		By: Senators K. Hammer, M. McKee, D. Wallace 8
13	12		9
14	13		10
15	14		For An Act To Be Entitled 11
16	15		AN ACT TO AMEND THE DIVISION OF WORKFORC E SERVICES 12
17	16		LAW; TO MODIFY THE D EFINITION OF "WAGES" IN CERTAIN 13
18	17		CIRCUMSTANCES UNDER THE DIVISION OF WORK FORCE 14
19	18		SERVICES LAW; TO RED UCE THE MAXIMUM POTE NTIAL 15
20	19		UNEMPLOYMENT COMPENS ATION BENEFITS; TO R EGULATE 16
21	20		EMPLOYER CONTRIBUTIONS UNDER THE DIVISION O F 17
22	21		WORKFORCE SERVICES L AW; TO REVISE THE ST ABILIZATION 18
23	22		TAX RATE; TO AMEND T HE LAW CONCERNING TH E 19
24	23		UNEMPLOYMENT COMPENS ATION FUND, THE DIVI SION OF 20
25	24		WORKFORCE SERVICES T RAINING TRUST FUND, AND THE 21
26	25		UNEMPLOYMENT INSURAN CE ADMINISTRATION FUND; TO 22
27	26		DECLARE AN EMERGENCY ; AND FOR OTHER PURP OSES. 23
28	27		24
29	28		25
30	29		Subtitle 26
31	30		TO AMEND THE DIVISION OF WORKFORCE 27
32	31		SERVICES LAW; AND TO DECLARE AN 28
33	32		EMERGENCY. 29
34	33		30
35	34		31
36	35		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 32
37	36		33
38	37		SECTION 1. Arkansas Code § 11 -10-215(a)(2)(A)(i), concerning the 34
39	38		definition of "wages" and the taxable wage base under the Division of 35
40	39		Workforce Services Law, is amended to add additional subdivisions to read as 36 As Engrossed: H2/22/23 HB1430
41	40
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43	42
44	43
45	44		follows: 1
46	45		(f) For a calendar year begi nning on or after 2
47	46		January 1, 2024, "wages" shall not include remuneration that exceeds the 3
48	47		lesser of: 4
49	48		(1) Seven thousand dollars ($7,000) but 5
50	49		only if as of June 30 of the most recently completed state fiscal year the 6
51	50		balance of the unemployment insu rance trust fund is in excess of six hundred 7
52	51		million dollars ($600,000,000); or 8
53	52		(2) The amount calculated under 9
54	53		subdivisions (a)(2)(A)(i)(d)(1) -(3) of this section. 10
55	54		(g) For any calendar year beginning after 11
56	55		December 31, 2023, when calculating the amount to determine remuneration 12
57	56		constituting wages, then the amount that is included as wages shall not 13
58	57		exceed the sum of two thousand dollars ($2,000) and the amount applicable to 14
59	58		the immediately preceding calendar year. 15
60	59		16
61	60		SECTION 2. Arkansas Code § 11-10-504(a), concerning the maximum 17
62	61		potential benefits payable in a benefit year, is amended to read as follows: 18
63	62		(a)(1) For initial claims filed on or after January 1, 2018, the 19
64	63		maximum potential benefits of an insured worker in a benefit year shall be 20
65	64		the amount equal to the lesser of: 21
66	65		(1)(A) Sixteen (16) times his or her weekly benefit 22
67	66		amount; or 23
68	67		(2)(B) One-third (⅓) of his or her wages for insured work 24
69	68		in his or her base period. 25
70	69		(2) For initial claims filed on or after January 1, 2024, the 26
71	70		maximum potential benefits of an insured worker in a benefit year shall be 27
72	71		the amount equal to the lesser of: 28
73	72		(A) Twelve (12) times his or her weekly benefit amount; or 29
74	73		(B) One-third (1/3) of his or her wages for insured work 30
75	74		in his or her base period. 31
76	75		32
77	76		SECTION 3. Arkansas Code § 11 -10-704 is amended to read as follows: 33
78	77		11-10-704. Future rates — Experience rates generally. 34
79	78		(a) The Director of the Division of Workforce Services shall, for each 35
80	79		calendar year, classify employers in accordance with their actual experience 36 As Engrossed: H2/22/23 HB1430
81	80
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83	82
84	83
85	84		in the payment of contributions on their own behalf and with respect to 1
86	85		regular benefits charged against their accounts, with a view to fixing the 2
87	86		contribution rates as will reflect their experience. 3
88	87		(b)(1) The Except as provided in subsection (c) of this section, the 4
89	88		director shall determine the contribution rates of each employer in 5
90	89		accordance with the requirements of this section and § 11 -10-705:. 6
91	90		(1)(2)(A) Each employer's rate shall be two and nine -tenths 7
92	91		percent (2.9%) except as otherwise provided in the other provisions of this 8
93	92		subchapter. 9
94	93		(A)(i)(B)(i)(a) No employer's rate shall be les s than two 10
95	94		and nine-tenths percent (2.9%) unless and until there shall have been three 11
96	95		(3) years immediately preceding the computation date throughout which an 12
97	96		individual in the employer's employ could have received benefits if eligible. 13
98	97		(b) Provided, however, an employer who, at the 14
99	98		time of establishing an account, is in business in another state or states 15
100	99		and who is not currently doing business in Arkansas may elect to receive a 16
101	100		beginning contribution rate of two and nine -tenths percent (2.9%) or a 17
102	101		contribution rate based on the rate schedule at § 11 -10-705(b)(1), whichever 18
103	102		is lower, but in no event less than one percent (1%), provided: 19
104	103		(a)(1) The employer has been in 20
105	104		operation in the other state or states for at least three (3) year s 21
106	105		immediately preceding the date of becoming a liable employer in Arkansas, 22
107	106		throughout which an individual in the employer's employ could have received 23
108	107		benefits if eligible; 24
109	108		(b)(2) The employer must provide the 25
110	109		authenticated account history from information accumulated from operations in 26
111	110		the other state or all the other states to compute a current Arkansas rate; 27
112	111		and 28
113	112		(c)(3) The employer's business 29
114	113		operations established in Ar kansas are of the same nature as conducted in the 30
115	114		other state or states, as defined by the North American Industry 31
116	115		Classification System. 32
117	116		(ii)(a) The election authorized in subdivision 33
118	117		(b)(1)(A)(i)(b)(1)(B)(i) of this section must be made in writing wi thin 34
119	118		thirty (30) days after receiving notice of Arkansas liability. 35
120	119		(b) A two-and-nine-tenths-percent rate will be 36 As Engrossed: H2/22/23 HB1430
121	120
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123	122
124	123
125	124		assigned unless a timely election has been made. 1
126	125		(iii) If the election is made timely, the employer's 2
127	126		account will receive the rate elected for the remainder of that rate year. 3
128	127		The rate assigned for the next and subsequent years will be determined by the 4
129	128		condition of the account on the computation date. 5
130	129		(B)(C) However, any employer having no covered employment 6
131	130		under this chapter f or any calendar year shall have a rate equal to his or 7
132	131		her most recently determined contribution rate until the employer has one (1) 8
133	132		full year of benefit risk experience immediately preceding the computation 9
134	133		date. 10
135	134		(2)(A)(3)(A) Notwithstanding any other provisions of §§ 11-10-11
136	135		701 — 11-10-715, if the director determines that an employer has willfully 12
137	136		submitted false information which is material with respect to the employment 13
138	137		or separation from employment of any claimant, employee, or former employee, 14
139	138		for the purpose of preventing regular benefit charges to the employer's 15
140	139		account, the employer shall be assessed a penalty equivalent to twice the 16
141	140		amount of the claimant's maximum potential benefit amount. 17
142	141		(B) This charge penalty shall be charged against th e 18
143	142		employer's account for experience rating purposes, regardless of whether or 19
144	143		not the employer is a base -period employer and irrespective of the identity 20
145	144		or number of base-period employers. 21
146	145		(3)(4) An employer who changes from reimbursement to the 22
147	146		contributory method of financing shall be considered a new or newly covered 23
148	147		employer and can be entitled to an experience rate only when the new or newly 24
149	148		covered employer has met the requirements of this subsection. 25
150	149		(4)(5) Each employer's rate beginning Janua ry 1 for each twelve -26
151	150		month period shall be determined on the basis of the employer's record 27
152	151		through June 30 of the previous calendar year. 28
153	152		(c)(1) The director shall determine the contribution rates of each 29
154	153		employer according to the requirements of this s ection and § 11-10-705. 30
155	154		(2)(A) For any calendar year beginning on or after January 1, 31
156	155		2024, each employer's rate shall be one and nine -tenths percent (1.9%) except 32
157	156		as otherwise provided in this subchapter. 33
158	157		(B)(i)(a) An employer's rate shall not be l ess than one 34
159	158		and nine-tenths percent (1.9%) unless and until there have been three (3) 35
160	159		years immediately preceding the computation date throughout which an 36 As Engrossed: H2/22/23 HB1430
161	160
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164	163
165	164		individual in the employer's employ could have received benefits, if 1
166	165		eligible. 2
167	166		(b) Provided, however, an employer who, at the 3
168	167		time of establishing an account, is in business in another state or states 4
169	168		and who is not currently doing business in Arkansas may elect to receive a 5
170	169		beginning contribution rate of one and nine -tenths percent (1.9%) or a 6
171	170		contribution rate based on the rate schedule in § 11 -10-705(b)(1), whichever 7
172	171		is lower, but in no event less than one percent (1%), provided: 8
173	172		(1) The employer has been in operation 9
174	173		in the other state or states for at least three (3) years immediately 10
175	174		preceding the date of becoming a liable employer in Arkansas, throughout 11
176	175		which an individual in the employer's employ could have received benefits, if 12
177	176		eligible; 13
178	177		(2) The employer must provide the 14
179	178		authenticated account history from information accumul ated from operations in 15
180	179		the other state or states to compute a current Arkansas rate; and 16
181	180		(3) The employer's business operations 17
182	181		established in Arkansas are of the same nature as conducted in the other 18
183	182		state or states, as defined by the North Americ an Industry Classification 19
184	183		System. 20
185	184		(ii)(a) The election authorized in subdivision 21
186	185		(c)(2)(B)(i) of this section must be made in writing within thirty (30) days 22
187	186		after receiving notice of Arkansas liability. 23
188	187		(b) A one-and-nine-tenths-percent rate will be 24
189	188		assigned unless a timely election has been made. 25
190	189		(iii)(a) If the election is timely made, the 26
191	190		employer's account will receive the rate elected for the remainder of that 27
192	191		rate year. 28
193	192		(b) The rate assigned for the next and 29
194	193		subsequent years will be determined by the condition of the account on the 30
195	194		computation date. 31
196	195		(C)(1) However, any employer having no covered employment 32
197	196		under this chapter for any calendar year shall have a rate equal to his or 33
198	197		her most recently determined contribution r ate until the employer has one (1) 34
199	198		full year of benefit risk experience immediately preceding the computation 35
200	199		date. 36 As Engrossed: H2/22/23 HB1430
201	200
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204	203
205	204		(2)(A) Notwithstanding any other provisions of §§ 11 -10-701 — 1
206	205		11-10-715, if the director determines that an employer has willfully 2
207	206		submitted false information that is material with respect to the employment 3
208	207		or separation from employment of any claimant, employee, or former employee, 4
209	208		for the purpose of preventing regular benefit charges to the employer's 5
210	209		account, the employer shall be assess ed a penalty equivalent to twice the 6
211	210		amount of the claimant's maximum potential benefit amount. 7
212	211		(B) This penalty shall be charged against the employer's 8
213	212		account for experience rating purposes, regardless of whether or not the 9
214	213		employer is a base-period employer and irrespective of the identity or number 10
215	214		of base-period employer. 11
216	215		(3) An employer who changes from reimbursement to the 12
217	216		contributory method of financing shall be considered a new or newly covered 13
218	217		employer and can be entitled to an experience rate only when the new or newly 14
219	218		covered employer has met the requirements of this subsection. 15
220	219		(4) Each employer's rate beginning January 1 for each twelve -16
221	220		month period shall be determined on the basis of the employer's record 17
222	221		through June 30 of the prev ious calendar year. 18
223	222		19
224	223		SECTION 4. Arkansas Code § 11 -10-705(a)(2), concerning the computation 20
225	224		of employer contribution rates, is amended to read as follows: 21
226	225		(2) The record of an employer shall include, for the purpose of 22
227	226		computing an employer's contribution rate, any payment, except a payment that 23
228	227		represents a stabilization tax an administration assessment payment or a 24
229	228		payment that represents an extended bene fit tax payment, made by the employer 25
230	229		on or before July 31 on wages paid by the employer on or before June 30 of 26
231	230		the calendar year. 27
232	231		28
233	232		SECTION 5. Arkansas Code § 11 -10-705(b), concerning computation of 29
234	233		employer contribution rates, is amended to add an addi tional subdivision to 30
235	234		read as follows: 31
236	235		(3)(A) Notwithstanding any other provision of this chapter, for 32
237	236		any calendar year beginning on and after January 1, 2024, an employer that 33
238	237		has been assigned a contribution rate of six percent (6%) under this chapte r 34
239	238		and that has had such a rate for the four (4) preceding calendar years will 35
240	239		be assigned an additional contribution assessment of two percent (2%). 36 As Engrossed: H2/22/23 HB1430
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244	243
245	244		(B) After four (4) consecutive years of being assessed an 1
246	245		additional contribution of two percent (2%) u nder subdivision (b)(3)(A) of 2
247	246		this section, this additional contribution assessment shall increase to four 3
248	247		percent (4%). 4
249	248		5
250	249		SECTION 6. Arkansas Code § 11 -10-705(b)(2), concerning the computation 6
251	250		of employer contribution rates, is repealed. 7
252	251		(2)(A) Notwithstanding any other provision of this chapter, for 8
253	252		any calendar year beginning on and after January 1, 2008, an employer that 9
254	253		has been assigned a contribution rate of six percent (6%) under this chapter 10
255	254		and that has had such a rate for the two (2) precedin g calendar years will be 11
256	255		assigned an additional contribution assessment of two percent (2%). 12
257	256		(B) After two (2) consecutive years of being assessed an 13
258	257		additional contribution of two percent (2%) under subdivision (b)(2)(A) of 14
259	258		this section, this addition al contribution assessment shall increase to four 15
260	259		percent (4%). 16
261	260		(C) For calendar years beginning January 1, 2014, and 17
262	261		thereafter, after two (2) consecutive years of being assessed an additional 18
263	262		contribution of four percent (4%) under subdivision (b)(2) (B) of this 19
264	263		section, the additional contribution assessment shall increase to six percent 20
265	264		(6%). 21
266	265		(D) For calendar years beginning January 1, 2014, and 22
267	266		thereafter, after two (2) consecutive years of being assessed an additional 23
268	267		contribution of six percent (6%) under subdivision (b)(2)(C) of this section, 24
269	268		the additional contribution assessment shall increase to eight percent (8%). 25
270	269		26
271	270		SECTION 7. Arkansas Code § 11 -10-706 is amended to read as follows: 27
272	271		11-10-706. Future rates — Stabilization tax Administrative assessment . 28
273	272		(a)(1) Each Effective July 1, 2023, each employer shall be required to 29
274	273		pay a stabilization tax an administrative assessment on wages paid by the 30
275	274		employer with respect to employment. 31
276	275		(2) This stabilization tax administrative asses sment shall not 32
277	276		be credited to the separate account of each employer. 33
278	277		(b)(1) The stabilization tax For the period July 1, 2023, through June 34
279	278		30, 2024, the administrative assessment shall be determined as follows: 35
280	279		twelve and one-half hundredths of one per cent (0.125%). 36 As Engrossed: H2/22/23 HB1430
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284	283
285	284		(1)(2) If the assets of the Unemployment Compensation Fund on 1
286	285		the computation date are equal to or greater than two percent (2%) but less 2
287	286		than two and one-half percent (2.5%) of total payrolls for employment during 3
288	287		the preceding calendar year, the stabilization tax For the period beginning 4
289	288		on and after July 1, 2024, the administrative assessment shall be one-tenth 5
290	289		of one percent (0.1%) ;. 6
291	290		(2) If the assets of the Unemployment Compensation Fund on the 7
292	291		computation date are greater than one and one-half percent (1.5%) but less 8
293	292		than two percent (2%) of total payrolls for employment during the preceding 9
294	293		calendar year, the stabilization tax shall be two -tenths of one percent 10
295	294		(0.2%); 11
296	295		(3) If the assets of the Unemployment Compensation Fund on the 12
297	296		computation date are greater than one percent (1%) but less than one and one -13
298	297		half percent (1.5%) of total payrolls for employment during the preceding 14
299	298		calendar year, the stabilization tax shall be three -tenths of one percent 15
300	299		(0.3%); 16
301	300		(4) If the assets of the Unemployment Compensation Fund on the 17
302	301		computation date are greater than one -half of one percent (0.5%) but less 18
303	302		than one percent (1%) of total payrolls for employment during the preceding 19
304	303		calendar year, the stabilization tax shall be four -tenths of one percent 20
305	304		(0.4%); 21
306	305		(5) If the assets of the Unemployment Compensation Fund on the 22
307	306		computation date are less than one -half of one percent (0.5%) of total 23
308	307		payrolls for employment during the preceding calendar year, the stabilization 24
309	308		tax shall be seven-tenths of one percent (0.7%); 25
310	309		(6) If the assets of the Unemployment Compensation Fund on the 26
311	310		computation date are less than four -tenths of one percent (0.4%) of total 27
312	311		payrolls for employment during the preceding calendar year, the stabilization 28
313	312		tax shall be one and one-tenth percent (1.1%) for the calendar year 1993, 29
314	313		nine-tenths of one percent (0.9%) for the calendar year 1994, and eight -30
315	314		tenths of one percent (0.8%) for the calendar year 1995 and thereafter; and 31
316	315		(7) For the rate year beginning January 1, 2022, and ending 32
317	316		December 31, 2022, the stabilization tax shall be the lesser of: 33
318	317		(A) The amount determined according to subdivisions 34
319	318		(b)(1)-(6) of this section; or 35
320	319		(B) Two-tenths of one percent (0.2%). 36 As Engrossed: H2/22/23 HB1430
321	320
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324	323
325	324		(c) Each employer eligible for an experience rating under § 11 -10-705 1
326	325		shall have the employer's contribution rate reduced by one -tenth of one 2
327	326		percent (0.1%) for any rate year when the assets of the Unemployment 3
328	327		Compensation Fund on the computation date are greater than five percent (5%) 4
329	328		of total payrolls for employment during the preceding calendar year. 5
330	329		(d) Employers who have elected to reimburse the Unemployment 6
331	330		Compensation Fund in lieu of contributions under § 11 -10-404 or § 11-10-713 7
332	331		shall be excluded from the provisions of §§ 11 -10-703 — 11-10-708 or any 8
333	332		experience rate computation. 9
334	333		(e)(1) The provisions of this section shall not be effective for any 10
335	334		rate year when the assets of the Unemployment Compensation Fund, excluding 11
336	335		contributions not yet paid, on the computation date equal or exceed two and 12
337	336		one-half percent (2.5%) but are less than five percent (5%) of total payrolls 13
338	337		for employment during the preceding calendar year. 14
339	338		(2) For the purposes of §§ 11 -10-703 — 11-10-708, total payrolls 15
340	339		shall exclude payrolls of employers who h ave elected to reimburse the 16
341	340		Unemployment Compensation Fund in lieu of contributions under § 11 -10-404 or 17
342	341		§ 11-10-713. 18
343	342		(3)(A) For the purposes of §§ 11 -10-703 — 11-10-708, the assets 19
344	343		of the Unemployment Compensation Fund as of the computation date shall 20
345	344		include only contributions which were paid on or before June 30, the 21
346	345		computation date. 22
347	346		(B) Provided, however, for the purposes of this section, 23
348	347		the computation date is defined as September 30 of the calendar year 24
349	348		preceding the tax year. 25
350	349		(C) It shall include any accounts receivable from the 26
351	350		United States for its share of extended benefit payments which have been paid 27
352	351		from the Unemployment Compensation Fund and any accounts receivable from 28
353	352		employers who have elected to reimburse the Unemployment Comp ensation Fund 29
354	353		for benefits paid under § 11 -10-404 or § 11-10-713. 30
355	354		(D) However, it shall exclude the assets of the 31
356	355		Unemployment Compensation Fund Extended Benefits Account and shall be reduced 32
357	356		by any outstanding advances owed to the United States Govern ment. 33
358	357		(f)(1)(A)(c)(1) However, Each fiscal year, sixty percent (60%) of the 34
359	358		proceeds of the stabilization tax in the amount of two and one -half 35
360	359		hundredths of one percent (0.025%) of taxable wages collected during the 36 As Engrossed: H2/22/23 HB1430
361	360
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363	362
364	363
365	364		period July 1, 2007, through June 30, 2023 administrative assessment, up to 1
366	365		six million dollars ($6,000,000) , shall be deposited and credited to the 2
367	366		Division of Workforce Services Training Trust Fund, there to be used for 3
368	367		worker training Unemployment Insurance Administration Fund, there to be used 4
369	368		for personal services and operating expenses of the unemployment insurance 5
370	369		program necessary for the proper administration of the Division of Workforce 6
371	370		Services Law, § 11-10-101 et seq., as determined by the Director of the 7
372	371		Division of Workforce Serv ices. 8
373	372		(B) The total amount deposited into the Division of 9
374	373		Workforce Services Training Trust Fund in any one (1) fiscal year shall not 10
375	374		exceed two million five hundred thousand dollars ($2,500,000). 11
376	375		(2)(A) However, the proceeds of the stabilization ta x in the 12
377	376		amount of two and one -half hundredths of one percent (0.025%) of taxable 13
378	377		wages collected during the period July 1, 2007, through June 30, 2023, shall 14
379	378		be deposited and credited to the Division of Workforce Services Unemployment 15
380	379		Insurance Administra tion Fund, there to be used for personal services and 16
381	380		operating expenses of the unemployment insurance program necessary for the 17
382	381		proper administration of the Division of Workforce Services Law, § 11 -10-101 18
383	382		et seq., as determined by the Director of the Divi sion of Workforce Services 19
384	383		After collection of the proceeds of the administrative assessment specified 20
385	384		in subdivision (c)(1) of this section, only for the period from July 1, 2023, 21
386	385		through June 30, 2024, the remaining proceeds, if any, of the administrativ e 22
387	386		assessment shall be deposited and credited to the Division of Workforce 23
388	387		Services Unemployment Insurance Administration Fund, there to be used solely 24
389	388		for the purpose of modernizing information technology systems and hardware 25
390	389		utilized in the administration of the unemployment insurance program . 26
391	390		(B)(i) The total amount deposited into the Division of 27
392	391		Workforce Services Unemployment Insurance Administration Fund in any one (1) 28
393	392		fiscal year shall not exceed two million five hundred thousand dollars 29
394	393		($2,500,000) The maximum amount to be deposited and credited under this 30
395	394		subdivision (c)(2)(A) shall not exceed the difference between thirty -five 31
396	395		million dollars ($35,000,000) and the amounts deposited and credited in 32
397	396		previous state fiscal years to the Division of Workforce Services 33
398	397		Unemployment Insurance Administration Fund for the purpose of modernizing 34
399	398		information technology systems and hardware utilized in the administration of 35
400	399		the unemployment insurance program . 36 As Engrossed: H2/22/23 HB1430
401	400
402	401		11 02-22-2023 09:57:01 ANS203
403	402
404	403
405	404		(ii) If the amount deposited into the Divisio n of 1
406	405		Workforce Services Unemployment Insurance Administration Fund under 2
407	406		subdivision (f)(2)(B)(i) of this section is not sufficient to meet the 3
408	407		administrative needs under the Division of Workforce Services Law, § 11 -10-4
409	408		101 et seq., the Division of Workforc e Services may deposit up to an 5
410	409		additional three million five hundred thousand dollars ($3,500,000) in any 6
411	410		one (1) fiscal year to the Division of Workforce Services Unemployment 7
412	411		Insurance Administration Fund upon approval by the Chief Fiscal Officer of 8
413	412		the State. 9
414	413		(C)(i)(3) However, Each fiscal year, after collection of 10
415	414		the proceeds of the stabilization tax administrative assessment specified in 11
416	415		subdivisions (f)(2)(A) and (B) (c)(1) and (2) of this section, the remaining 12
417	416		proceeds, if any, of the stabilization tax administrative assessment in an 13
418	417		additional amount of fifteen-hundredths of one percent (0.15%) of taxable 14
419	418		wages collected during the period April 1, 2021, through December 31, 2023, 15
420	419		up to two million five hundred thousand dollars ($2,500,000) shall be 16
421	420		deposited and credited to the Division of Workforce Services Unemployment 17
422	421		Insurance Administration Fund, there to be used solely for the purpose of 18
423	422		modernizing information technology systems and hardware utilized in the 19
424	423		administration of the unemploy ment insurance program Training Trust Fund, 20
425	424		there to be used for worker training . 21
426	425		(ii) The aggregate amount to be transferred into the 22
427	426		Division of Workforce Services Unemployment Insurance Administration Fund 23
428	427		under this subdivision (f)(2)(C) shall not exceed thirty-five million dollars 24
429	428		($35,000,000) and shall be reduced by the amount, if any, received from the 25
430	429		United States Government for the purpose of modernizing information 26
431	430		technology systems and hardware utilized in the administration of the 27
432	431		unemployment insurance program. 28
433	432		(4) Each fiscal year, after collection of the proceeds of the 29
434	433		administrative assessment specified under subdivisions (c)(1) -(c)(3) of this 30
435	434		section, the remaining proceeds, if any, of the administrative assessment 31
436	435		shall be deposited and credited to the Unemployment Compensation Fund. 32
437	436		(3)(5) The director shall report to the Legislative Council on a 33
438	437		quarterly basis as to any and all uses of the Division of Workforce Services 34
439	438		Training Trust Fund and the Division of Workforce Services Unemployment 35
440	439		Insurance Administration Fund. 36 As Engrossed: H2/22/23 HB1430
441	440
442	441		12 02-22-2023 09:57:01 ANS203
443	442
444	443
445	444		1
446	445		SECTION 8. Arkansas Code § 11 -10-801(b)(10), concerning the 2
447	446		Unemployment Compensation Fund, is amended to read as follows: 3
448	447		(10) All moneys received from the stabilization tax 4
449	448		administrative assessment under § 11-10-706(c)(4), except the proceeds of § 5
450	449		11-10-706(f); and 6
451	450		7
452	451		SECTION 9. Arkansas Code § 19 -5-1131(b)(1), concerning the Division of 8
453	452		Workforce Services Training Trust Fund, is amended to read as follows: 9
454	453		(b)(1) The fund shall consist of the proceeds of the stabilization tax 10
455	454		administrative assessment specified in § 11-10-706(f) § 11-10-706(c)(3), any 11
456	455		interest accruing on these revenues, and any other f unds made available by 12
457	456		the General Assembly. 13
458	457		14
459	458		SECTION 10. Arkansas Code § 19 -5-1232(b)(1), concerning the Division 15
460	459		of Workforce Services Unemployment Insurance Administration Fund, is amended 16
461	460		to read as follows: 17
462	461		(b)(1) The fund shall consist of the pro ceeds of the stabilization tax 18
463	462		administrative assessment as specified in § 11-10-706(f) § 11-10-706(c)(3), 19
464	463		any interest accruing on these revenues, and any other funds made available 20
465	464		by the General Assembly. 21
466	465		22
467	466		SECTION 11. EMERGENCY CLAUSE. It is found an d determined by the 23
468	467		General Assembly that the Arkansas Unemployment Trust Fund is adequately 24
469	468		funded to satisfy the state's obligation to pay benefits to unemployed 25
470	469		Arkansans; that the current unemployment stabilization tax contributions paid 26
471	470		by Arkansas employers are in excess of the amounts needed to fund the state's 27
472	471		unemployment insurance program and create an unnecessary expense for 28
473	472		employers that hinders the employment of Arkansans; and that this act is 29
474	473		immediately necessary to remove obstacles to the e mployment of Arkansans and 30
475	474		promote economic opportunity within the state. Therefore, an emergency is 31
476	475		declared to exist, and this act being immediately necessary for the 32
477	476		preservation of the public peace, health, and safety shall become effective 33
478	477		on: 34
479	478		(1) The date of its approval by the Governor; 35
480	479		(2) If the bill is neither approved nor vetoed by the Governor, 36 As Engrossed: H2/22/23 HB1430
481	480
482	481		13 02-22-2023 09:57:01 ANS203
483	482
484	483
485	484		the expiration of the period of time during which the Governor may veto the 1
486	485		bill; or 2
487	486		(3) If the bill is vetoed by the Governor and the vet o is 3
488	487		overridden, the date the last house overrides the veto. 4
489	488		5
490	489		/s/Lundstrum 6
491	490		7
492	491		8
493		-	~~APPROVED: 3/6/23~~ 9
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498	497		14
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