Administrative Rule Review Report  #AR07-064

Legislative Service Office

26-Nov-07

AGENCY: Department of Employment, Unemployment Insurance Division.

DATE SUBMITTED: November 5, 2007.

SUBJECT: Chapter 15, Contribution Rates.

NATURE OF RULES:                     Legislative and procedural.

STATUTORY AUTHORITY:         W.S. 27-3-505(b), 27-3-602(a)(i).

DETERMINATION OF PROCEDURAL COMPLIANCE BASED UPON INFORMATION

SUBMITTED BY THE AGENCY TO LSO:              Apparently complete to date.   Notice of the proposed adoption of new rules was provided by the LSO as required by W.S. 28-9-103(d).  No comments have been received to date.

SUMMARY OF RULES:          W.S. 27-3-505(b) requires the Department of Employment to impose a surcharge, known as a "positive fund balance adjustment factor," on employer unemployment insurance contributions if the fund balance falls below a designated level (3.5% of payroll reported during the previous year).  Prior law required that the adjustment factor be imposed equally upon all employers.  2007 Wyoming Laws, Chapter 144 (SF0066/SEA0061) amended W.S. 27-3-505(b) to direct the Department to adopt a formula for apportioning the adjustment factor between those employers against whom unemployment claims were made and those against whom no unemployment claims were made in the previous year.  This rule implements the apportionment by creating a new Section 3 in the Unemployment Tax Division Rules, Chapter 15, "Contribution Rates."  The rule defines two groups of employers: those with no established experience period or with a benefit ratio greater than zero ("Group 1") and those with a zero benefit ratio ("Group 2").  The rule allocates the adjustment factor between the two groups in the same proportion as the groups' projected contribution revenue for the current year.

FINDINGS:     The rules appear to be within the scope of statutory authority and legislative intent.

STAFF RECOMMENDATION:        That the rules be placed on the Consent List and be approved by the Council as submitted by the Agency.

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Gerald W. Laska

Staff Attorney

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David K. Gruver

Assistant Director

GWL/