Arkansas Code of 1987 (2023) › Title 11 - LABOR AND INDUSTRIAL RELATIONS (§§ 11-1-201 — 11-15-105) › Chapter 10 - DEPARTMENT OF WORKFORCE SERVICES LAW (§§ 11-10-101 — 11-10-1018) › Subchapter 10 - UNEMPLOYMENT TRUST FUND FINANCING ACT OF 2011 (§§ 11-10-1001 — 11-10-1018) › Section 11-10-1017 - Unemployment obligation assessment

(a)
(1)
(A)
Except employers that have made an election to reimburse the Unemployment Compensation Fund under §
11-10-713(c)
, each employer shall pay a separate and additional assessment, to be known as the "unemployment obligation assessment", on wages paid by that employer with respect to employment in addition to the contributions, stabilization and extended benefits taxes, and advance interest taxes levied under §§
11-10-703
-
11-10-708
.
(B)
The unemployment obligation assessment shall be based on the aggregate principal amount of bonds issued for nonrefunding purposes and shall be determined by multiplying the employer's contribution rate as described in §§
11-10-704
and
11-10-705
and in effect on the date that the Governor issues a proclamation calling an election on the issuance of the bonds for employers with accounts as of such date and in effect as of the employer's liability date for employers establishing accounts after the date of the proclamation, by:
(i)
Twenty-five percent (25%) if the aggregate principal amount of bonds issued is three hundred fifty million dollars ($350,000,000) or less;
(ii)
Thirty percent (30%) if the aggregate principal amount of bonds issued is three hundred fifty million one dollars ($350,000,001) to four hundred million dollars ($400,000,000);
(iii)
Thirty-three and five-tenths percent (33.5%) if the aggregate principal amount of bonds issued is four hundred million one dollars ($400,000,001) to four hundred fifty million dollars ($450,000,000); and
(iv)
Thirty-seven and five-tenths percent (37.5%) if the aggregate principal amount of bonds issued is four hundred fifty million one dollars ($450,000,001) to five hundred million dollars ($500,000,000).
(C)
(i)
The effective date of the unemployment obligation assessment shall be the first day of the calendar quarter immediately following the month in which the Secretary of State certifies the vote of the voters approving the unemployment obligation assessment and the issuance of the bonds under this subchapter.
(ii)
The unemployment obligation assessment is effective until the end of the quarter immediately following the repayment of all bonds authorized under this subchapter.
(2)
(A)
This unemployment obligation assessment shall not be credited to the separate account of any employer.
(B)
The unemployment obligation assessment shall be levied and collected in the same manner as contributions and shall be subject to the same penalty and interest, collection, impoundment, priority, lien, certificate of assessment, and assessment provisions and procedures under §§
11-10-716
-
11-10-722
.
(b)
(1)
Receipts from the unemployment obligation assessment and any penalty and interest on the unemployment obligation assessment shall be deposited into the Unemployment Compensation Fund Clearing Account.
(2)
At least once each month, deposits of the unemployment obligation assessment payment and any interest and penalty payments applicable to the unemployment obligation assessment shall be deposited into the Division of Workforce Services' Bond Financing Trust Fund.
(c)
Debt service on the bonds shall be paid in a timely manner and shall not be paid directly or indirectly by an equivalent reduction in unemployment contributions or taxes imposed under:
(1)
Sections
11-10-701
-
11-10-715
; or
(2)
Section
11-10-801
et seq.
(d)
The unemployment obligation assessment may be used to:
(1)
Repay the principal of and interest on advances from the federal trust fund under Title XII of the Social Security Act,
42 U.S.C. § 1321
;
(2)
Pay the costs of issuance of the bonds, including without limitation the costs of bond insurance or other credit enhancement;
(3)
Pay unemployment benefits by depositing bond proceeds into the Unemployment Compensation Fund;
(4)
Provide a debt service reserve; and
(5)
Pay capitalized interest on the bonds for a period not to exceed two (2) years.
(e)
The Director of the Division of Workforce Services shall promulgate rules to carry out the provisions of this section.
(f)
Upon retirement of all bonds, the following shall be transferred to the Unemployment Compensation Fund:
(1)
Surplus unemployment obligation assessment collections; and
(2)
Delinquent taxes, penalties, or interest due under the unemployment obligation assessment.
Amended by Act 2019, No. 910,§ 324, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 323, eff. 7/1/2019.
Acts 2011, No. 1125, § 1.