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Montana Administrative Register Notice 24-11-258 No. 11   06/09/2011    
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BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

OF THE STATE OF MONTANA

 

In the matter of the amendment of ARM 24.11.2221, pertaining to unemployment insurance rates for

governmental entities

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NOTICE OF PUBLIC HEARING ON PROPOSED AMENDMENT

 

TO:  All Concerned Persons

 

            1.  On June 30, 2011, at 10:30 a.m., the Department of Labor and Industry (department) will hold a public hearing in in the first floor conference room (room 104) of the Walt Sullivan Building, 1315 East Lockey Avenue, Helena, Montana, to consider the proposed amendment of the above-stated rule.

 

2.  The Department of Labor and Industry will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact the department no later than 5:00 p.m. on June 24, 2011, to advise us of the nature of the accommodation that you need.  Please contact the Unemployment Insurance Division, Department of Labor and Industry, Attn: Don Gilbert, P.O. Box 8020, Helena, MT  59624-8020; telephone (406) 444-4336; fax (406) 444-2993; TDD (406) 444-5549; or e-mail [email protected].

 

3.  The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

 

            24.11.2221  STATE AND LOCAL GOVERNMENT EXPERIENCE RATING

            (1)  and (2)  remain the same.

            (3)  For wages paid on or after from July 1, 2008, through June 30, 2011:

            (a)  and (b)  remain the same.

            (4)  For wages paid on or after July 1, 2011:

            (a)  Governmental entities are assessed for purposes of 39-51-404, MCA, at the rate of .09 percent of total quarterly wages.

            (b)  The following is the rate schedule used for governmental entities.

 

RATE FOR GOVERNMENTAL ENTITIES

EXPERIENCE RATING SYSTEM

___________________________________________________________________

Individual

Employer's                                                     *Median Benefit Cost Ratio

Benefit

Cost

Ratio   .26     .36      .46     .56     .66     .76      .86      .96      1.06    1.16  1.26    1.36  1.46

 

  .1 or

less     .06     .06      .16     .26     .36     .46      .56      .66        .76      .86   1.06    1.26  1.46

 

  .2       .06     .06      .16     .26     .36     .46      .56      .66        .76      .86   1.06    1.26  1.46

 

  .3       .06     .16      .26     .36     .46     .56      .66      .76        .86      .96   1.06    1.26  1.46

 

  .4       .16     .16      .26     .36     .46     .56      .66      .76        .86      .96   1.16    1.26  1.46

 

  .5       .16     .26      .36     .46     .56     .66      .76      .86        .96    1.06  1.16    1.36  1.46

 

  .6       .16     .26      .36     .46     .56     .66      .76      .86        .96    1.06  1.26    1.36  1.46

 

  .7       .26     .36      .46     .56     .66     .76      .86      .96      1.06    1.16  1.26    1.36  1.46

 

  .8       .26     .36      .46     .56     .66     .76      .86      .96      1.06    1.16  1.26    1.36  1.46

 

  .9       .26     .36      .46     .56     .66     .76      .86      .96      1.06    1.16  1.26    1.36  1.46

 

1.0      .36     .46      .56     .66     .76     .86      .96      1.06    1.16    1.26  1.26    1.36  1.46

 

1.1      .36     .46      .56     .66     .76     .86      .96      1.06    1.16    1.26  1.36    1.36  1.46

 

1.2      .36     .56      .66     .76     .86     .96      1.06    1.16    1.26    1.36  1.36    1.46  1.46

 

1.3      .46     .56      .66     .76     .86     .96      1.06    1.16    1.26    1.36  1.36    1.46  1.46

 

1.4      .46     .66      .76     .86     .96     1.06    1.16    1.26    1.36    1.46  1.46    1.46  1.46

 

1.5      .46     .66      .76     .86     .96     1.06    1.16    1.26    1.36    1.46  1.46    1.46  1.46

 

*Total benefits charged to all governmental entities for all past periods divided by total wages paid by all governmental entities for all past periods.  This percentage is used as a median rate.  The column headed by that percent is used when the past experience computes to that figure.

 

AUTH:  39-51-302, MCA

IMP:  39-51-404, 39-51-1212, MCA

 

REASON:  There is reasonable necessity to amend ARM 24.11.2221 to correct minor errors in the contributions table for experience-rated governmental employers, which errors the department recently discovered.

 

The department proposes that it apply the changed rates to wages paid on or after July 1, 2011, the start of the state fiscal year.  The department believes that the effect of the changes will be that the affected governmental employers will have a slightly lower contribution rate.  The department believes that only 88 employing units will be directly affected by the proposed changes.  Because wages are reported by employers on a quarterly basis (30 days after the close of the calendar quarter) and taxes are due and payable at that time, there should not be any overpayment by the affected governmental employers.  In the highly unlikely event that a governmental employer would cease operations and payrolls after July 1, 2011, but before the changes in the rates were officially adopted, the department would recalculate the contributions due under the revised rates.

 

The department notes that although it has, as required, advised employers of the contributions rates that will be in effect on July 1, the proposed rule changes will be applied to all wages paid in the first calendar quarter of the state fiscal year.  Once the proposed changes are finally adopted, the department will provide notice of the revised rates to the affected governmental employers.  The department concludes that correcting the rates in the above manner will avoid or minimize the need for recalculations or providing for a refund or credit of overpaid contributions.

 

            4.  Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing.  Written data, views, or arguments may also be submitted to: Unemployment Insurance Division, Department of Labor and Industry, Attn: Don Gilbert, P.O. Box 8020, Helena, MT  59624-8020; telephone (406) 444-4336; fax (406) 444-2993; TDD (406) 444-5549; or e-mail [email protected] and must be received no later than 5:00 p.m., July 8, 2011.

 

5.  An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.  The Secretary of State strives to make the electronic copy of the notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered.  In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

 

6.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency.  Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to the Department of Labor and Industry, Attn: Mark Cadwallader, 1315 East Lockey Ave., P.O. Box 1728, Helena, Montana 59624-1728, faxed to the department at (406) 444-1394, e-mailed to [email protected], or may be made by completing a request form at any rules hearing held by the agency.

 

7.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.

 

8.  The department's Hearings Bureau has been designated to preside over and conduct the hearing.

 

9.  The department intends to make the proposed amendments effective on or about July 29, 2011, but reserves the right to make the amendments effective at a later date, or not at all.

 

 

 

 

/s/  MARK CADWALLADER                       /s/  KEITH KELLEY

Mark Cadwallader                                        Keith Kelley

Alternate Rule Reviewer                               Commissioner

                                                                        Department of Labor and Industry

           

 

 

Certified to the Secretary of State May 31, 2011

 

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