Oklahoma 2023 Regular Session

Oklahoma House Bill HB2456 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 2456 By: Hill of the House
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	28	+	STATE OF OKLAHOMA
	29	+
	30	+	1st Session of the 59th Legislature (2023)
	31	+
	32	+	CONFERENCE COMMITTEE
	33	+	SUBSTITUTE
	34	+	FOR ENGROSSED
	35	+	HOUSE BILL NO. 2456 By: Hill of the House
4	36
5	37		and
6	38
7	39		Paxton of the Senate
8	40
9	41
10	42
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12	44
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	46	+	CONFERENCE COMMITTEE SUBSTITUTE
13	47
14	48		An Act relating to labor; amending 40 O.S. 2021,
15	49		Sections 3-109.3, 3-301, 3-311, 3-806, 6-202, 6-204,
16	50		and 6-205, which relate to the Employment Security
17	51		Act of 1980; modifying dates for certain rate
18	52		reduction; increasing penalt ies; modifying refund of
19	53		remaining credit balance; removing expenditure limit;
20	54		modifying technology reinvestment apportionment;
21	55		providing for limit of fund; and providing an
22	56		effective date.
23	57
24	58
25	59
26	60
27	61
28		-	SUBJECT: Labor
29		-
30	62		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
31		-
32	63		SECTION 1. AMENDATORY 40 O. S. 2021, Section 3-109.3, is
33	64		amended to read as follows:
34		-
35	65		Section 3-109.3
36		-
37	66		RATE REDUCTION FOR TECHNOLOGY REINVESTMENT APPORTIONMENT.
38		-
39	67		Notwithstanding the provisions o f Sections 3-109, 3-110.1 and 3-
40	68		113 of Title 40 of the Oklah oma Statutes this title, for the time
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41	95		period beginning January 1, 2018, and ending December 3 1, 2022 2023,
42	96		and ending December 31, 2027 , the tax rate computed for or assigned
43	97		to an employer shall be reduced by five percent (5%). Provided, the
44	98		tax rate of employers assigned a tax rate pur suant to Section 3-
45	99		110.1 of Title 40 of the Oklahoma Statutes shall not be reduced to
46		-	less than one percent (1%). Provided further, employers who qualify ~~ENR. H. B. NO. 2456 Page 2~~
	100	+	less than one percent (1%). Provided further, employers who qualify
47	101		for an earned tax rate calculated pursuant to Section 3 -109 of Title
48	102		40 of the Oklahoma Statutes , and are given the highest tax rate in
49	103		the rate table for the given yea r, shall not be eligible for the
50	104		rate reduction provided for in this section.
51		-
52	105		SECTION 2. AMENDATORY 40 O.S. 2021, Section 3 -301, is
53	106		amended to read as follows:
54		-
55	107		Section 3-301.
56		-
57	108		PENALTY AND INTEREST ON PAST-DUE CONTRIBUTIONS.
58		-
59	109		A. If contributions are not paid on the date on which they are
60	110		due and payable as prescribed by the Ok lahoma Employment Security
61	111		Commission, the whole or part thereafter remaining unpaid shall be ar
62	112		interest at the rate of one perc ent (1%) per month for each mont h or
63	113		fraction thereof from and after such date until payment is received
64	114		by the Commission. The date on which payment of contributions is
65	115		deemed to have been received may be determined by such rules as the
66	116		Commission may prescribe.
67		-
68	117		B. If any employer fails or refuses to file contribution and
69	118		wage reports required under the provisions of this act wi thin
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70	145		fifteen (15) days after written notice has been mailed to the
71	146		employer by the Commission or its representative regardless of
72	147		whether or not any wages or taxable wages were paid, there shall
73	148		accrue a penalty of One Hundred Dollars ($100.00) and in Two Hundred
74	149		Dollars ($200.00). In addition to such penalty, there shall be a
75	150		penalty of ten percent (10%) added to the total contributions due,
76	151		collected and paid. Such penalties shall be in addition to any
77	152		interest due. The provisions of this subsection shall not apply to
78	153		employers that are subject to subsection B of Section 3-806 of this
79	154		title.
80		-
81	155		SECTION 3. AMENDATORY 40 O.S. 2021, Section 3 -311, is
82	156		amended to read as follows:
83		-
84	157		Section 3-311.
85		-
86	158		FORFEITURE OF TERMINATED EMPLOYER UNEMP LOYMENT TAX ACCOUNT
87	159		OVERPAYMENTS.
88		-
89	160		A. It is the fiduciary duty of the Oklahoma Employment Security
90	161		Commission to return overpayment s received in the employer's
91		-	unemployment tax account . Upon the termination of the employer's ~~ENR. H. B. NO. 2456 Page 3~~
	162	+	unemployment tax account . Upon the termination of the employer's
92	163		unemployment tax account, the Commission will issue a refund of any
93	164		remaining credit balance that is equal to or greater than One
94	165		Hundred Dollars ($100.00) by mailing it to the last addre ss provided
95	166		by the employer. If an e mployer's unemployment tax account has been
96	167		terminated and has a credit balance that has been at that level for
97	168		a period of one hundred eighty (180) days or more without a refund
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98	195		being requested from the employer, the C ommission will reduce the
99	196		balance of that unemployment tax accou nt to zero (0) and consider
100	197		the credit to be forfeited after the Commission has exercised its
101	198		fiduciary duty.
102		-
103	199		B. Once the Commission has completed its fiduciary duty in
104	200		facilitating the retur n of the credit to the employer, base d upon
105	201		the most current mailing address provided by the employ er, the
106	202		Commission can assume its fiduciary duty is completed. I f the
107	203		refund of the overpayment is returned to the Commission, the
108	204		employer shall consider t he funds forfeited and will be prohib ited
109	205		from requesting the c redit balance in the future. All re turns of
110	206		overpayment shall be returned to the clearing account as set forth
111	207		in Section 3-604 of Title 40 of the Okla homa Statutes this title.
112		-
113	208		SECTION 4. AMENDATORY 40 O.S. 2021, Section 3 -806, is
114	209		amended to read as follows:
115		-
116	210		Section 3-806.
117		-
118	211		PAYMENT OF IN-LIEU CONTRIBUTIONS.
119		-
120	212		A. At the end of each calendar quarter the Oklahoma Employment
121	213		Security Commission shall notify in writing each nonprofit
122	214		organization, or the agent of a group of nonprofit o rganizations,
123	215		which has elected to mak e payments in lieu of contributions, the
124	216		amount, if any, equal to the full amount of regular benefits plus
125	217		one-half (1/2) of the amount of extended benefits paid by the
126	218		Commission during the quarter that is attributabl e to service in the
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127	245		employ of the organization or the members of a group of the
128	246		organizations. The full amount shall include all amounts paid as
129	247		benefits that are attributable to base period wages paid by the
130	248		organization, including any benefit amounts pa id in error. The
131	249		notification shall b e deemed and treated as an assessment of
132	250		contributions and the payment of the amount owing shall be collected
133	251		as contributions, interest, penalty and fees, if any, are collected,
134	252		in accordance with the provisions of th e Employment Security Act of
135	253		1980. The employer, or group of employers, shall have the rights
136		-	and remedies provided by the Employment Security Act of 1980 with ~~ENR. H. B. NO. 2456 Page 4~~
	254	+	and remedies provided by the Employment Security Act of 1980 with
137	255		respect to assessments of contributions, including the right of
138	256		protest, hearing and appeal. T he Commission shall make its
139	257		assessment or amend its assessment within three (3) years of the
140	258		ending date of the calendar quarter to which the assessment or
141	259		amendment applies. If no protest is filed or if filed and confirmed
142	260		by the Commission or its autho rized representatives, said assessment
143	261		shall be immediately due and payable and shall bear interest after
144	262		forty-five (45) days at the rate of one percent (1%) per month until
145	263		paid. If any nonprofit organization or group of organizations fails
146	264		or refuses to pay said assessment after same has b ecome delinquent
147	265		within forty-five (45) days after written request has been mailed to
148	266		the organization or the agent of the group by the Commission or its
149	267		representative, a penalty of five percent (5%) of the amount due
150	268		shall be added thereto, collected and paid. In the case of group
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151	295		accounts, assessments and penalty and interest provided in this
152	296		subsection may be prorated in accordance with Section 3 -809 of this
153	297		title. All collections made shall be deposited in the Un employment
154	298		Compensation Fund.
155		-
156	299		B. The electing organization, or group of organizations, shall
157	300		file reports of wages paid, in the same time and manner as required
158	301		of nongovernmental employers for profit. If any electing
159	302		organization, or group of organizati ons, fails or refuses to file
160	303		its wage report within fifteen (15) days after written notice, a
161	304		penalty of Ten Dollars ($10.00) Twenty Dollars ($20.00) for each day
162	305		until the report is filed with a maximum of One Hundred Dollars
163	306		($100.00) Two Hundred Dollars ( $200.00) is hereby imposed against
164	307		the organization or group and shall be collected and paid.
165		-
166	308		C. Payments made by any nonprofit organization under the
167	309		provisions of this section shall not be deducted or deductible, in
168	310		whole or in part, from the remuneration of individuals in the employ
169	311		of the organization.
170		-
171	312		SECTION 5. AMENDATORY 40 O.S. 2021, Section 6-202, is
172	313		amended to read as follows:
173		-
174	314		Section 6-202.
175		-
176	315		EXPENDITURES FROM FUND.
177		-
178	316		A. The monies in the OESC Technology Fund shall be used fo r the
179	317		following purposes:
180		-	ENR. H. B. NO. 2456 Page 5
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181	344		1. To purchase or lease new technology systems hardware for the
182	345		Oklahoma Employment Security Commission to be used in its mission to
183	346		provide employment services, unemployment insurance and economic
184	347		research for the citizens of th is state as well as the
185	348		administration of these programs;
186		-
187	349		2. To purchase or lease any auxiliary or peripheral equipment
188	350		necessary for the operation of the new technology systems;
189		-
190	351		3. To pay for the maintenance of all OESC technology system
191	352		hardware;
192		-
193	353		4. To purchase or lease any and all software needed for the
194	354		operation of the new technology systems;
195		-
196	355		5. To pay for all OESC technology system software license fees;
197		-
198	356		6. To pay for all programming and analysis necessary to make
199	357		the new technology system operat ional;
200		-
201	358		7. To pay for all testin g, designing, engineering, planning,
202	359		networking and training to m ake the new technology system
203	360		operational;
204		-
205	361		8. To pay for all shipping and installation charges for the
206	362		technology system and its auxiliary and peripheral equi pment;
207		-
208	363		9. To contract with vend ors and hire personnel as necessary to
209	364		accomplish the modernizati on effort;
210		-
211	365		10. To analyze business processes and develop requirements for
212	366		Requests for Proposals;
213	367
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214	393		11. To fund project planning, project management, strategy
215	394		development and project consulti ng services; and
216		-
217	395		12. To make refunds of money erroneously collec ted and
218	396		deposited in the OESC Technology Fund.
219		-
220	397		B. The total expenditures from the OESC Technology Fund shall
221	398		not exceed Thirty-nine Million Dollars ($39,000,0 00.00) between
222	399		January 1, 2018, and December 31, 2022, without legislative
223	400		authority. Prior to expenditures authorized by paragraphs 1, 4, 6,
224	401		7, 9, 10 and 11 of subsection A of this section, the Chief
225		-	Information Officer of the Office of Management and En terprise ~~ENR. H. B. NO. 2456 Page 6~~
	402	+	Information Officer of the Office of Management and En terprise
226	403		Services shall be consu lted for recommendations. The Office of
227	404		Management and Enterpris e Services shall provide periodic oversight
228	405		of the technology modernization efforts and may assist the Oklahoma
229	406		Employment Security Commission in any manner ne cessary to accomplish
230	407		the purposes of this fund, including requiring the Oklahoma
231	408		Employment Security Commission to provide regular reports to the
232	409		Office of Management and Enterprise Services on the technology
233	410		modernization efforts.
234		-
235	411		C. If any money remain s in this fund after the new tec hnology
236	412		system has been brought online and made fully operational , that
237	413		excess money shall be transferred to the Unemployment Compensation
238	414		Fund.
239		-
240	415		SECTION 6. AMENDATORY 40 O.S. 2021, Section 6 -204, is
241	416		amended to read as follows:
242	417
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243	443		Section 6-204.
244		-
245	444		TECHNOLOGY REINVESTMENT APPORTIONMENT.
246		-
247	445		A. 1. For the period from beginning January 1, 2018, to
248	446		December 31, 2022 2023, and ending December 31, 2027 , each employer
249	447		subject to the provisions of Sections 3 -109, 3-110.1 and 3-113 of
250	448		Title 40 of the Oklahoma Statutes this title shall be required to
251	449		pay an OESC Technology Reinvestment Apport ionment equal to five
252	450		percent (5%) of the unemployment taxes that would be owed to the
253	451		Oklahoma Employment Security Commission before any rate reduction is
254	452		made pursuant to Section 3-109.3 of this title. This apportionment
255	453		shall be in addition to any cont ribution which that employ er is
256	454		required to make pursuant to the provisions of the Employment
257	455		Security Act of 1980.
258		-
259	456		2. The apportionment provided for in this section shall not be
260	457		considered part of any unemployment taxes required of an individual
261	458		employer pursuant to the Employmen t Security Act of 1980, nor shall
262	459		it be considered for purposes of determining the individual
263	460		employer's tax rate.
264		-
265	461		B. Employers assigned a tax rate pursuant to Section 3-110.1 of
266	462		Title 40 of the Oklahoma Statutes this title shall pay an OESC
267	463		Technology Reinvestment Apportionment equal to the rate red uction
268	464		granted them pursuant to Section 3 -109.3 of this title.
269		-	ENR. H. B. NO. 2456 Page 7
270	465		C. Employers who qualif y for an earned tax rate calc ulated
271	466		pursuant to Section 3-109 of this title, and are given the hi ghest
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272	493		tax rate in the rate table for the given year, shall be exempt fro m
273	494		the provisions of this section.
274		-
275	495		D. Employers making payments in lieu of contribution s pursuant
276	496		to Sections 3-702, 3-705 and 3-806 of this title shall be exempt
277	497		from the provisions o f this section.
278		-
279	498		E. D. The apportionment shall be made and collected by the
280	499		Oklahoma Employment Security Commission for deposit, on a monthly
281	500		basis, to the credit of the OESC Technology Fund. Provided, all
282	501		monies received by the Oklahoma Employment Securi ty Commission for
283	502		the account of the OES C Technology Fund, upon receipt, sh all be
284	503		deposited in a clearance account.
285		-
286	504		F. E. The Oklahoma Employment Security Com mission shall
287	505		promulgate such rules as may be necessary to implement the
288	506		provisions of Sections 3-109.3 and 6-201 to through 6-205 of this
289	507		title.
290		-
291	508		G. F. The Oklahoma Employment Security Commission shall create
292	509		an annual report detailing the collection of the a pportionment funds
293	510		and the expenditures from the OESC Technology Fund. The report
294	511		shall be filed on or before March 31 of each year following the
295	512		effective date of this act, and shall continue until all money in
296	513		the OESC Technology Fund is expended or tra nsferred pursuant to
297	514		subsection C of Section 6-202 of this title. The report shall be
298	515		filed with the Governor, the President Pro Tempore of the Se nate,
299	516		the Speaker of the House of R epresentatives, the State Treasurer,
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300	543		the State Auditor and Inspector, and the Director of the Office o f
301	544		Management and Enterprise Services.
302		-
303	545		SECTION 7. AMENDATORY 40 O.S. 2021, Section 6 -205, is
304	546		amended to read as follows:
305		-
306	547		Section 6-205.
307		-
308	548		TECHNOLOGY FUND BALANCE.
309		-
310	549		The balance of the OESC Technology Fund on July 1 of any given
311	550		year shall be used in the cal culation of conditional factors
312	551		pursuant to Section 3-113 of Title 40 of the Oklahoma Statutes this
313	552		title as long as the OESC Technology Fund has a balance greater than
314		-	zero (0). ENR. H. B. NO. 2456 Page 8
315		-
	553	+	zero (0).
316	554		The balance of the fund sha ll not exceed Twenty-five Million
317	555		Dollars ($25,000,000.00) prior to June 30, 2024, or be greater than
318	556		the calculated amount of Twenty -five Million Dollars
319	557		($25,000,000.00). All funds in excess of these amount s shall be
320	558		transferred to the Unemployment Comp ensation Fund.
321		-
322	559		The calculation shall be conducted in the following manner : The
323	560		balance of the OESC Technology Fund as of July 1 of any gi ven year
324	561		shall be aggregated with the balance of the Unemployment
325	562		Compensation Fund as of July 1 of the same year, wit h the resulting
326	563		sum to be used in the calculation of t he conditional factors as set
327	564		out in Section 3-113 of Title 40 of the Oklahoma Statu tes this
328	565		title. The aggregate of the two fund balances shall only be for the
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	570	+	4
	571	+	5
	572	+	6
	573	+	7
	574	+	8
	575	+	9
	576	+	10
	577	+	11
	578	+	12
	579	+	13
	580	+	14
	581	+	15
	582	+	16
	583	+	17
	584	+	18
	585	+	19
	586	+	20
	587	+	21
	588	+	22
	589	+	23
	590	+	24
	591	+
329	592		purpose of the calculation and in no way shall balances in these two
330	593		funds be commingled.
331		-
332	594		SECTION 8. This act shall become effective November 1, 2023.
333	595
334		-
335		-	ENR. H. B. NO. 2456 Page 9
336		-
337		-	Passed the House of R epresentatives the 24th day of May, 2023.
338		-
339		-
340		-
341		-
342		-	Presiding Officer of the House
343		-	of Representatives
344		-
345		-
346		-	Passed the Senate the 25th day of May, 2023.
347		-
348		-
349		-
350		-
351		-	Presiding Officer of the Senate
352		-
353		-
354		-	OFFICE OF THE GOVERNOR
355		-	Received by the Office of the Governor this __ __________________
356		-	day of ___________________, 20_______, at _______ o'clock _______ M.
357		-	By: _________________________________
358		-	Approved by the Governor of the State of Oklahoma this ___ ______
359		-	day of ___________________, 20_____ __, at _______ o'clock _______ M.
360		-
361		-
362		-	_________________________________
363		-	Governor of the State of Oklahoma
364		-
365		-	OFFICE OF THE SECRETARY OF STATE
366		-	Received by the Office of the Secretary of State this __________
367		-	day of ___________________, 20_______, at _______ o 'clock _______ M.
368		-	By: _________________________________
	596	+	59-1-8377 LRB 05/15/23
369	597