Bill 1004

                    Current Status

Bill Number:               1004
Ratification Number:       473
Act Number:                406
Introducing Body:          Senate
Subject:                   Relating to payment of employment
                           security benefits based on certain services in
                           schools or institutions of higher
                           education

(A406, R473, S1004)

AN ACT TO AMEND SECTION 41-35-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENT OF EMPLOYMENT SECURITY BENEFITS BASED ON CERTAIN SERVICES IN SCHOOLS OR INSTITUTIONS OF HIGHER EDUCATION, SO AS TO REVISE THESE PROVISIONS IN ORDER TO CONFORM THEM TO FEDERAL LAW CONCERNING THE SAME SUBJECT MATTER; TO AMEND SECTION 41-33-60, RELATING TO THE BENEFIT ACCOUNT OF THE UNEMPLOYMENT COMPENSATION FUND SO AS TO PROVIDE THAT NO MONIES MAY BE WITHDRAWN FROM THE UNEMPLOYMENT TRUST FUND FOR THE PAYMENT OF INTEREST WHICH HAS ACCRUED ON CERTAIN ADVANCES; AND TO AMEND SECTION 41-31-50 RELATING TO THE DETERMINATION OF EMPLOYER CONTRIBUTION RATES, SO AS TO REVISE THE MANNER IN WHICH THESE RATE COMPUTATIONS ARE MADE FOR CALENDAR YEAR 1985 AND THEREAFTER.

Be it enacted by the General Assembly of the State of South Carolina:

Benefits

SECTION 1. Section 41-35-20 of the 1976 Code, as last amended by Act 62 of 1983, is further amended to read:

"Section 41-35-20. (1) Benefits based on service in an instructional, research, or principal administrative capacity in an institution of higher education as defined in Section 41-27-290 or educational institution as defined in Section 41-27-340 must not be paid to an individual for any week of unemployment which begins during the period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, if the individual has a contract or a reasonable assurance that the individual will perform services in this capacity for both these academic years or both these terms.

(2) (a) With respect to services performed after December 31, 1977, in any other capacity for an educational institution or institution of higher education, irrespective of whether the institution is a public, private, or nonprofit organization, benefits shall not be payable on the basis of these services to any individual for any week which commences during a period between two successive academic years or terms if the individual performs these services in the first of those academic years or terms and there is a reasonable assurance that the individual will perform these services in the second of those academic years or terms. However, if compensation is denied to any individual under this subsection and the individual was not offered an opportunity to perform these services for the educational institution or institution of higher education for the second of these academic years or terms, the individual is entitled to a retroactive payment of compensation for each week for which the individual filed a timely claim for compensation and for which compensation was denied solely by reason of this item (a).

(b) The provisions of this subsection apply both to employees of the educational institution concerned or to persons employed by a governmental agency or entity which is established and operated exclusively for the purpose of providing services to one or more educational institutions and these persons perform these services in the educational institution.

(c) With respect to any services described in items (a) and (b) of this subsection, benefits shall not be payable on the basis of services in any such capacities as specified in items (a) and (b) of the subsection to any individual who performed these services in an educational institution or institution of higher education while in the employ of an educational service agency. For purposes of this section, the term 'educational service agency' means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing these services to one or more educational institutions.

(3) With respect to any services described in subsections (1) and (2), benefits shall not be payable on the basis of services in any such capacities to any individual for any week which commences during an established and customary vacation period or holiday recess if the individual performs these services in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the individual will perform these services in the period immediately following the vacation period or holiday recess.

(4) For the purpose of subsections (1), (2), and (3), 'reasonable assurance' means a written notice of intent to rehire.

Benefit account

SECTION 2. Section 41-33-60 of the 1976 Code is amended to read:

"Section 41-33-60. The benefit account consists of all monies requisitioned from this state's account in the unemployment trust fund and no monies may be withdrawn from the unemployment trust fund for the payment of any interest accrued on advances granted to the State under Title XII of the Social Security Act for the purposes of this chapter, and this interest must be paid from sources other than the unemployment trust fund."

Rate computation

SECTION 3. Section 41-31-50 of the 1976 Code is amended to read:

"Section 41-31-50. Each employer eligible for a rate computation shall have his rate determined in the following manner:

(1) If on the computation date as of which an employer's rate is to be computed as provided in Section 41-31-40, the total of all his contributions paid on his own behalf for all past periods exceeds the total benefits charged to his account for all such periods his contribution rate for the period specified in Section 41-31-40 shall, except for the provisions of Section 41-31-80, be as follows:

(a) With respect to the calendar year 1973:

(i) Two and thirty-five hundredths percent, if such excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;

(ii) Two percent, if such excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;

(iii) One and sixty-five hundredths percent, if such excess equals or exceeds seven percent but is less than eight percent of his most recent annual payroll;

(iv) One and thirty hundredths percent, if such excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll;

(v) Ninety-five hundredths of one percent, if such excess equals or exceeds nine percent but is less than ten percent of his most recent annual payroll;

(vi) Six tenths of one percent, if such excess equals or exceeds ten percent but is less than eleven percent of his most recent annual payroll; and

(vii) Twenty-five hundredths of one percent, if such excess equals or exceeds eleven percent of his most recent annual payroll.

(b) With respect to any calendar year commencing with the calendar year 1974:

(i) Two and thirty-five hundredths percent, if such excess equals or exceeds three percent but is less than four percent of his most recent annual payroll;

(ii) Two percent, if such excess equals or exceeds four percent but is less than five percent of his most recent annual payroll;

(iii) One and sixty-five hundredths percent, if such excess equals or exceeds five percent but is less than six percent of his most recent annual payroll;

(iv) One and thirty hundredths percent, if such excess equals or exceeds six percent but is less than seven percent of his most recent annual payroll;

(v) Ninety-five hundredths of one percent, if such excess equals or exceeds seven percent but is less than eight percent of his most recent annual payroll;

(vi) Six tenths of one percent, if such excess equals or exceeds eight percent but is less than nine percent of his most recent annual payroll; and

(vii) Twenty-five hundredths of one percent, if such excess equals or exceeds nine percent of his most recent annual payroll.

(2) If, on the computation date as of which an employer's rate is to be computed, as provided in Section 41-31-40, the total of all his contributions paid on his own behalf for all past periods is less than the total benefits charged to his account for all such periods his contribution rate for the period specified in Section 41-31-40 shall be as follows:

(a) Three and five hundredths percent, if such deficit equals five percent but is less than ten percent of his most recent annual payroll;

(b) Three and forty hundredths percent, if such deficit equals ten percent but is less than fifteen percent of his most recent annual payroll;

(c) Three and seventy-five hundredths percent, if such deficit equals fifteen percent but is less than twenty percent of his most recent annual payroll; and

(d) Four and ten hundredths percent, if such deficit equals or exceeds twenty percent of his most recent annual payroll.

(3) For any rate computation for the calendar year 1985 and any subsequent calendar year:

(a) Three and five hundredths percent, if such deficit equals five percent but is less than ten percent of his most recent annual payroll;

(b) Three and four tenths percent, if such deficit equals ten percent but is less than fifteen percent of his most recent annual payroll;

(c) Three and seventy-five hundredths percent, if such deficit equals fifteen percent but is less than twenty percent of his most recent annual payroll;

(d) Four and one tenth percent, if such deficit equals twenty percent but is less than twenty-five percent of his most recent annual payroll;

(e) Four and forty-five hundredths percent, if such deficit equals twenty-five percent but is less than thirty percent of his most recent annual payroll;

(f) Four and eight tenths percent, if such deficit equals thirty percent but is less than thirty-five percent of his most recent annual payroll;

(g) Five and fifteen hundredths percent, if such deficit equals thirty-five percent but is less than forty percent of his most recent annual payroll; and

(h) Five and four tenths percent, if such deficit equals or exceeds forty percent of his most recent annual payroll.

(4) Any employer may make voluntary payments in addition to the contributions required in this section, in accordance with regulations adopted by the Commission, and by so doing obtain the benefit of a lower rate of required contributions, but such voluntary payments once made shall not be refunded in whole or in part.

(5) In determining an employer's contribution rate, contributions for the quarter immediately preceding the computation date shall be considered as paid before the computation date if they are paid by the employer on or before the end of the month following such quarter or within any period of grace allowed by the Commission for payment of such quarter's contribution."

Time effective

SECTION 4. This act shall take effect upon approval by the Governor.