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S.B. 129 Enrolled
7 J. Stuart Adams
8 Casey O. Anderson
9 Allen M. Christensen
10 Lyle W. Hillyard
11 David P. HinkinsPeter C. Knudson
Mark B. Madsen
Stuart C. Reid
Howard A. StephensonJerry W. Stevenson
Daniel W. Thatcher
Kevin T. Van Tassell
Todd Weiler 12
13 LONG TITLE
14 General Description:
15 This bill modifies the Employment Security Act by reducing the maximum
16 unemployment insurance contribution rate for an employer beginning in calendar year
17 2012 and capping the social unemployment insurance contribution rate for all
18 employers for calendar year 2012 only.
19 Highlighted Provisions:
20 This bill:
21 . reduces the maximum unemployment insurance contribution rate for an employer
22 from 9% plus the social contribution rate to 7% plus the social contribution rate
23 beginning in calendar year 2012;
24 . caps the social unemployment insurance contribution rate for all employers at .4%
25 for calendar year 2012 only;
26 . provides that if the reserve fund is insolvent, the reserve factor is 2.0 until the
27 reserve fund becomes solvent;
28 . allows the Unemployment Insurance Division to accept an offer of compromise
29 from an employer or claimant to reduce past due debt under certain circumstances;
30 . requires the Unemployment Insurance Division to make rules allowing for an offer
31 of compromise; and
32 . makes technical changes.
33 Money Appropriated in this Bill:
35 Other Special Clauses:
36 This bill provides an immediate effective date.
37 Utah Code Sections Affected:
39 35A-4-303, as last amended by Laws of Utah 2011, Chapters 297 and 342
40 35A-4-304, as last amended by Laws of Utah 2011, Chapter 297
41 35A-4-305, as last amended by Laws of Utah 2011, Chapter 297
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 35A-4-303 is amended to read:
45 35A-4-303. Determination of contribution rates.
46 (1) (a) An employer's basic contribution rate is the same as the employer's benefit
48 during the immediately preceding four fiscal years by the total taxable wages of the employer
49 for the same time period, calculated to four decimal places, disregarding [
51 (b) In calculating the basic contribution rate under Subsection (1)(a)[
52 years of data are not available[
53 (i) the data of [
54 divided by the total taxable wages for the same time period[
69 (ii) if the employer is a new employer, the basic contribution rate shall be determined
70 as described in Subsection (5).
71 (2) (a) Subject to Subsection (2)(b), the division shall [
72 contribution rate by dividing all social costs as defined in Subsection 35A-4-307 (1) applicable
73 to the preceding four fiscal years by the total taxable wages of all employers subject to
74 contributions for the same period, calculated to four decimal places, disregarding any
75 remaining fraction, and [
77 (i) if the fourth decimal place is [
79 (ii) if the fourth decimal place is [
81 (b) For calendar year 2012 only, if the calculation of the social contribution rate under
82 Subsection (2)(a) is greater than .004, the social contribution rate for calendar year 2012 is
84 (3) (a) [
85 set the reserve factor at a rate that [
86 (b) For the purpose of setting the reserve factor:
90 24 months of benefits at the average of the five highest benefit cost rates in the last 25 years;
91 (ii) the division shall set the reserve factor [
92 balance as of June 30 preceding the computation date is determined to be an adequate reserve;
93 (iii) the division shall set the reserve factor [
94 the actual reserve fund balance as of June 30 preceding the computation date is greater than the
95 adequate reserve;
96 (iv) the division shall set the reserve factor [
97 the actual reserve fund balance as of June 30 prior to the computation date is less than the
98 adequate reserve;
99 (v) if the actual reserve fund balance as of June 30 preceding the computation date is
100 insolvent or negative or if there is an outstanding loan from the Federal Unemployment
102 2.0000 until the actual reserve fund balance as of June 30 preceding the computation date is
103 determined [
104 outstanding loan;
105 (vi) the division shall set the reserve factor [
106 year; and
107 (vii) money made available to the state under Section 903 of the Social Security Act,
108 42 U.S.C. 1103, as amended, which is received on or after January 1, 2004, may not be
109 considered in establishing the reserve factor under this section for the rate year 2005 or any
119 (i) except as provided in Subsection (4)(a)(ii) or (iii), the employer's basic contribution
120 rate multiplied by the reserve factor established [
121 calculated to four decimal places, disregarding [
122 contribution rate established [
123 three decimal places, disregarding [
126 (ii) if under Subsection (4)(a)(i), the overall contribution rate calculation for an
127 employer is greater than 9% plus the applicable social contribution rate, the overall
128 contribution rate for the employer shall be reduced to 9% plus the applicable social
129 contribution rate; or
130 (iii) if under Subsection (4)(a)(i), the overall contribution rate calculation for a new
131 employer is less than 1.1%, the overall contribution rate for the new employer shall be
132 increased to 1.1%.
133 (b) Beginning January 1, 2012, an employer's overall contribution rate is:
134 (i) except as provided in Subsection (4)(b)(ii) or (iii), the employer's basic contribution
135 rate multiplied by the reserve factor established under Subsection (3)(b), calculated to four
136 decimal places, disregarding any remaining fraction, plus the social contribution rate
137 established under Subsection (2), and the result calculated to three decimal places, disregarding
138 any remaining fraction;
139 (ii) if under Subsection (4)(b)(i), the overall contribution rate calculation for an
140 employer is greater than 7% plus the applicable social contribution rate, the overall
141 contribution rate for the employer shall be reduced to 7% plus the applicable social
142 contribution rate; or
143 (iii) if under Subsection (4)(b)(i), the overall contribution rate calculation for a new
144 employer is less than 1.1%, the overall contribution rate for the new employer shall be
145 increased to 1.1%.
146 (c) The overall contribution rate described under this Subsection (4) does not include
147 the addition of any penalty applicable to an employer:
148 (i) as a result of delinquency in the payment of contributions as provided in Subsection
152 (ii) that is assessed a penalty rate under Subsection 35A-4-304 (5)(a).
153 (5) (a) Except as otherwise provided in [
155 average benefit cost rate experienced by employers of the major industry, as defined by
156 department rule, to which the new employer belongs[
159 basic contribution rate to be used in computing [
160 under Subsection (4) is the benefit cost rate [
161 (i) the amount calculated by dividing the total benefit costs charged back to both active
162 and inactive employers of the same major industry for the last two fiscal years by the total
163 taxable wages paid by those employers that were paid during the same time period, computed
164 to four decimal places, disregarding [
165 (ii) 1%.
167 for which a benefit cost rate does not exist because the industry has not operated in the state or
168 has not been covered under this chapter, the employer's basic contribution rate [
169 5.4%. This basic contribution rate is used in computing the employer's overall contribution
170 rate under Subsection (4).
171 (6) Notwithstanding any other provision of this chapter, and except as provided in
172 Subsection (7), if an employing unit that moves into this state is declared to be a qualified
173 employer because it has sufficient payroll and benefit cost experience under another state, a
174 rate shall be computed on the same basis as a rate is computed for all other employers subject
175 to this chapter if that unit furnishes adequate records on which to compute the rate.
176 (7) An employer who begins to operate in this state after having operated in another
177 state shall be assigned the maximum overall contribution rate until the employer acquires
178 sufficient experience in this state to be considered a "qualified employer" if the employer is:
179 (a) regularly engaged as a contractor in the construction, improvement, or repair of
180 buildings, roads, or other structures on lands;
181 (b) generally regarded as being a construction contractor or a subcontractor specialized
182 in some aspect of construction; or
183 (c) required to have a contractor's license or similar qualification under Title 58,
184 Chapter 55, Utah Construction Trades Licensing Act, or the equivalent in laws of another state.
185 (8) (a) If an employer acquires the business or all or substantially all the assets of
186 another employer and the other employer had discontinued operations upon the acquisition or
187 transfers its trade or business, or a portion of its trade or business, under Subsection
188 35A-4-304 (3)(a):
189 (i) for purposes of determining and establishing the acquiring party's qualifications for
190 an experience rating classification, the payrolls of both employers during the qualifying period
191 shall be jointly considered in determining the period of liability with respect to:
192 (A) the filing of contribution reports;
193 (B) the payment of contributions; and
194 (C) [
195 (ii) the transferring employer shall be divested of the transferring employer's
196 unemployment experience provided the transferring employer had discontinued operations, but
197 only to the extent as defined under Subsection 35A-4-304 (3)(c); and
198 (iii) if an employer transfers its trade or business, or a portion of its trade or business,
199 as defined under Subsection 35A-4-304 (3), the transferring employer may not be divested of its
200 employer's unemployment experience.
201 (b) An employing unit or prospective employing unit that acquires the unemployment
202 experience of an employer shall, for all purposes of this chapter, be an employer as of the date
203 of acquisition.
204 (c) Notwithstanding Section 35A-4-310 , when a transferring employer, as provided in
205 Subsection (8)(a), is divested of the employer's unemployment experience by transferring all of
206 the employer's business to another and by ceasing operations as of the date of the transfer, the
207 transferring employer shall cease to be an employer, as defined by this chapter, as of the date of
209 (9) (a) [
211 overall contribution rate [
212 new employers and to those qualified employers who, except for amounts due under division
213 determinations that have not become final, paid all contributions prescribed by the division
215 preceding the computation date [
216 (b) Notwithstanding Subsections (1), (5), (6), and (8), [
217 employer who fails to pay all contributions prescribed by the division [
218 four consecutive calendar quarters in the fiscal year immediately preceding the computation
219 date, except for amounts due under determinations that have not become final, shall pay a
220 contribution rate equal to the overall contribution rate determined under the experience rating
221 provisions of this chapter, plus a surcharge of 1% of wages.
222 (c) An employer who pays all required contributions shall, for the current contribution
223 year, be assigned a rate based upon the employer's own experience as provided under the
224 experience rating provisions of this chapter effective the first day of the calendar quarter in
225 which the payment was made.
226 (d) Delinquency in filing contribution reports may not be the basis for denial of a rate
227 less than the maximum contribution rate.
228 (10) If an employer makes a contribution payment based on the overall contribution
229 rate in effect at the time the payment was made and a provision of this section retroactively
230 reduces the overall contribution rate for that payment, the division:
231 (a) may not directly refund the difference between what the employer paid and what
232 the employer would have paid under the new rate; and
233 (b) shall allow the employer to make an adjustment to a future contribution payment to
234 offset the difference between what the employer paid and what the employer would have paid
235 under the new rate.
236 Section 2. Section 35A-4-304 is amended to read:
237 35A-4-304. Special provisions regarding transfers of unemployment experience
238 and assignment rates.
239 (1) As used in this section:
240 (a) "Knowingly" means having actual knowledge of or acting with deliberate ignorance
241 or reckless disregard for the prohibition involved.
242 (b) "Person" has the meaning given that term by Section 7701(a)(1) of the Internal
243 Revenue Code of 1986.
244 (c) "Trade or business" includes the employer's workforce.
245 (d) "Violate or attempt to violate" includes intent to evade, misrepresentation, or
246 willful nondisclosure.
247 (2) Notwithstanding any other provision of this chapter, Subsections (3) and (4) shall
248 apply regarding assignment of rates and transfers of unemployment experience.
249 (3) (a) If an employer transfers its trade or business, or a portion of its trade or
250 business, to another employer and, at the time of the transfer, there is common ownership,
251 management, or control of the employers, then the unemployment experience attributable to
252 each employer shall be combined into a common experience rate calculation.
253 (b) The contribution rates of the employers shall be recalculated and made effective
254 upon the date of the transfer of trade or business as determined by division rule in accordance
255 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
256 (c) (i) If one or more of the employers is a qualified employer at the time of the
257 transfer, then all employing units that are party to a transfer described in Subsection (3)(a) of
258 this section shall be assigned an overall contribution rate under Subsection 35A-4-303 (4)[
259 using combined unemployment experience rating factors, for the rate year during which the
260 transfer occurred and for the subsequent three rate years.
261 (ii) If none of the employing units is a qualified employer at the time of the transfer,
262 then all employing units that are party to the transfer described in Subsection (3)(a) shall be
263 assigned the highest overall contribution rate applicable at the time of the transfer to any
264 employer who is party to the acquisition for the rate year during which the transfer occurred
265 and for subsequent rate years until the time when one or more of the employing units is a
266 qualified employer.
267 (iii) Once one or more employing units described in Subsection (3)(c)(ii) is a qualified
268 employer, all the employing units shall be assigned an overall rate under Subsection
269 35A-4-303 (4)[
270 rate years, not to exceed three years following the year of the transfer.
271 (d) The transfer of some or all of an employer's workforce to another employer shall be
272 considered a transfer of its trade or business when, as the result of the transfer, the transferring
273 employer no longer performs trade or business with respect to the transferred workforce, and
274 the trade or business is now performed by the employer to whom the workforce is transferred.
275 (4) (a) Whenever a person is not an employer under this chapter at the time it acquires
276 the trade or business of an employer, the unemployment experience of the acquired business
277 may not be transferred to that person if the division finds that the person acquired the business
278 solely or primarily for the purpose of obtaining a lower rate of contributions.
279 (b) The person shall be assigned the applicable new employer rate under Subsection
280 35A-4-303 (5).
281 (c) In determining whether the business was acquired solely or primarily for the
282 purpose of obtaining a lower rate of contributions, the division shall use objective factors
283 which may include:
284 (i) the cost of acquiring the business;
285 (ii) whether the person continued the business enterprise of the acquired business;
286 (iii) how long the business enterprise was continued; or
287 (iv) whether a substantial number of new employees were hired for performance of
288 duties unrelated to the business activity conducted prior to acquisition.
289 (5) (a) If a person knowingly violates or attempts to violate Subsection (3) or (4) or any
290 other provision of this chapter related to determining the assignment of a contribution rate, or if
291 a person knowingly advises another person in a way that results in a violation of any of those
292 subsections or provisions, the person is subject to the following penalties:
293 (i) (A) If the person is an employer, then the employer shall be assigned an overall
294 contribution rate of 5.4% for the rate year during which the violation or attempted violation
295 occurred and for the subsequent rate year.
296 (B) If the person's business is already at 5.4% for any year, or if the amount of increase
297 in the person's rate would be less than 2% for that year, then a penalty surcharge of
298 contributions of 2% of taxable wages shall be imposed for the rate year during which the
299 violation or attempted violation occurred and for the subsequent rate year.
300 (ii) (A) If the person is not an employer, the person shall be subject to a civil penalty of
301 not more than $5,000.
302 (B) The fine shall be deposited in the penalty and interest account established under
303 Section 35A-4-506 .
304 (b) (i) In addition to the penalty imposed by Subsection (5)(a), a violation of this
305 section may be prosecuted as unemployment insurance fraud.
306 (ii) The determination of the degree of an offense shall be measured by the total value
307 of all contributions avoided or reduced or contributions sought to be avoided or reduced by the
308 unlawful conduct as applied to the degrees listed under Subsection 76-8-1301 (2)(a).
309 (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
310 division shall make rules to identify the transfer or acquisition of a business for purposes of this
312 (7) This section shall be interpreted and applied in a manner that meets the minimum
313 requirements contained in any guidance or regulations issued by the United States Department
314 of Labor.
315 Section 3. Section 35A-4-305 is amended to read:
316 35A-4-305. Collection of contributions -- Unpaid contributions to bear interest --
317 Offer to compromise.
318 (1) (a) Contributions unpaid on the date on which they are due and payable, as
319 prescribed by the division, shall bear interest at the rate of 1% per month from and after that
320 date until payment plus accrued interest is received by the division.
321 (b) (i) Contribution reports not made and filed by the date on which they are due as
322 prescribed by the division are subject to a penalty to be assessed and collected in the same
323 manner as contributions due under this section equal to 5% of the contribution due if the failure
324 to file on time was not more than 15 days, with an additional 5% for each additional 15 days or
325 fraction thereof during which the failure continued, but not to exceed 25% in the aggregate and
326 not less than $25 with respect to each reporting period.
327 (ii) If a report is filed after the required time and it is shown to the satisfaction of the
328 division or its authorized representative that the failure to file was due to a reasonable cause
329 and not to willful neglect, no addition shall be made to the contribution.
330 (c) (i) If contributions are unpaid after 10 days from the date of the mailing or personal
331 delivery by the division or its authorized representative, of a written demand for payment, there
332 shall attach to the contribution, to be assessed and collected in the same manner as
333 contributions due under this section, a penalty equal to 5% of the contribution due.
334 (ii) A penalty may not attach if within 10 days after the mailing or personal delivery,
335 arrangements for payment have been made with the division, or its authorized representative,
336 and payment is made in accordance with those arrangements.
337 (d) The division shall assess as a penalty a service charge, in addition to any other
338 penalties that may apply, in an amount not to exceed the service charge imposed by Section
339 7-15-1 for dishonored instruments if:
340 (i) any amount due the division for contributions, interest, other penalties or benefit
341 overpayments is paid by check, draft, order, or other instrument; and
342 (ii) the instrument is dishonored or not paid by the institution against which it is drawn.
343 (e) Except for benefit overpayments under Subsection 35A-4-405 (5), benefit
344 overpayments, contributions, interest, penalties, and assessed costs, uncollected three years
345 after they become due, may be charged as uncollectible and removed from the records of the
346 division if:
347 (i) no assets belonging to the liable person and subject to attachment can be found; and
348 (ii) in the opinion of the division there is no likelihood of collection at a future date.
349 (f) Interest and penalties collected in accordance with this section shall be paid into the
350 Special Administrative Expense Account created by Section 35A-4-506 .
351 (g) Action required for the collection of sums due under this chapter is subject to the
352 applicable limitations of actions under Title 78B, Chapter 2, Statutes of Limitations.
353 (2) (a) If an employer fails to file a report when prescribed by the division for the
354 purpose of determining the amount of the employer's contribution due under this chapter, or if
355 the report when filed is incorrect or insufficient or is not satisfactory to the division, the
356 division may determine the amount of wages paid for employment during the period or periods
357 with respect to which the reports were or should have been made and the amount of
358 contribution due from the employer on the basis of any information it may be able to obtain.
359 (b) The division shall give written notice of the determination to the employer.
360 (c) The determination is considered correct unless:
361 (i) the employer, within 10 days after mailing or personal delivery of notice of the
362 determination, applies to the division for a review of the determination as provided in Section
363 35A-4-508 ; or
364 (ii) unless the division or its authorized representative of its own motion reviews the
366 (d) The amount of contribution determined under Subsection (2)(a) is subject to
367 penalties and interest as provided in Subsection (1).
368 (3) (a) If, after due notice, an employer defaults in the payment of contributions,
369 interest, or penalties on the contributions, or a claimant defaults in a repayment of benefit
370 overpayments and penalties on the overpayments, the amount due shall be collectible by civil
371 action in the name of the division, and the employer adjudged in default shall pay the costs of
372 the action.
373 (b) Civil actions brought under this section to collect contributions, interest, or
374 penalties from an employer, or benefit overpayments and penalties from a claimant shall be:
375 (i) heard by the court at the earliest possible date; and
376 (ii) entitled to preference upon the calendar of the court over all other civil actions
378 (A) petitions for judicial review under this chapter; and
379 (B) cases arising under the workers' compensation law of this state.
380 (c) (i) (A) To collect contributions, interest, or penalties, or benefit overpayments and
381 penalties due from employers or claimants located outside Utah, the division may employ
382 private collectors providing debt collection services outside Utah.
383 (B) Accounts may be placed with private collectors only after the employer or claimant
384 has been given a final notice that the division intends to place the account with a private
385 collector for further collection action.
386 (C) The notice shall advise the employer or claimant of the employer's or claimant's
387 rights under this chapter and the applicable rules of the department.
388 (ii) (A) A private collector may receive as compensation up to 25% of the lesser of the
389 amount collected or the amount due, plus the costs and fees of any civil action or postjudgment
390 remedy instituted by the private collector with the approval of the division.
391 (B) The employer or claimant shall be liable to pay the compensation of the collector,
392 costs, and fees in addition to the original amount due.
393 (iii) A private collector is subject to the federal Fair Debt Collection Practices Act, 15
394 U.S.C. Sec. 1692 et seq.
395 (iv) (A) A civil action may not be maintained by a private collector without specific
396 prior written approval of the division.
397 (B) When division approval is given for civil action against an employer or claimant,
398 the division may cooperate with the private collector to the extent necessary to effect the civil
400 (d) (i) Notwithstanding Section 35A-4-312 , the division may disclose the contribution,
401 interest, penalties or benefit overpayments and penalties, costs due, the name of the employer
402 or claimant, and the employer's or claimant's address and telephone number when any
403 collection matter is referred to a private collector under Subsection (3)(c).
404 (ii) A private collector is subject to the confidentiality requirements and penalty
405 provisions provided in Section 35A-4-312 and Subsection 76-8-1301 (4), except to the extent
406 disclosure is necessary in a civil action to enforce collection of the amounts due.
407 (e) An action taken by the division under this section may not be construed to be an
408 election to forego other collection procedures by the division.
409 (4) (a) In the event of a distribution of an employer's assets under an order of a court
410 under the laws of Utah, including a receivership, assignment for benefits of creditors,
411 adjudicated insolvency, composition, or similar proceedings, contributions then or thereafter
412 due shall be paid in full prior to all other claims except taxes and claims for wages of not more
413 than $400 to each claimant, earned within five months of the commencement of the
415 (b) If an employer commences a proceeding in the Federal Bankruptcy Court under a
416 chapter of 11 U.S.C. 101 et seq., as amended by the Bankruptcy Abuse Prevention and
417 Consumer Protection Act of 2005, contributions, interest, and penalties then or thereafter due
418 shall be entitled to the priority provided for taxes, interest, and penalties in the Bankruptcy
419 Abuse Prevention and Consumer Protection Act of 2005.
420 (5) (a) In addition and as an alternative to any other remedy provided by this chapter
421 and provided that no appeal or other proceeding for review provided by this chapter is then
422 pending and the time for taking it has expired, the division may issue a warrant in duplicate,
423 under its official seal, directed to the sheriff of any county of the state, commanding the sheriff
424 to levy upon and sell the real and personal property of a delinquent employer or claimant found
425 within the sheriff's county for the payment of the contributions due, with the added penalties,
426 interest, or benefit overpayment and penalties, and costs, and to return the warrant to the
427 division and pay into the fund the money collected by virtue of the warrant by a time to be
428 specified in the warrant, not more than 60 days from the date of the warrant.
429 (b) (i) Immediately upon receipt of the warrant in duplicate, the sheriff shall file the
430 duplicate with the clerk of the district court in the sheriff's county.
431 (ii) The clerk shall enter in the judgment docket, in the column for judgment debtors,
432 the name of the delinquent employer or claimant mentioned in the warrant, and in appropriate
433 columns the amount of the contribution, penalties, interest, or benefit overpayment and
434 penalties, and costs, for which the warrant is issued and the date when the duplicate is filed.
435 (c) The amount of the docketed warrant shall:
436 (i) have the force and effect of an execution against all personal property of the
437 delinquent employer; and
438 (ii) become a lien upon the real property of the delinquent employer or claimant in the
439 same manner and to the same extent as a judgment duly rendered by a district court and
440 docketed in the office of the clerk.
441 (d) After docketing, the sheriff shall:
442 (i) proceed in the same manner as is prescribed by law with respect to execution issued
443 against property upon judgments of a court of record; and
444 (ii) be entitled to the same fees for the sheriff's services in executing the warrant, to be
445 collected in the same manner.
446 (6) (a) Contributions imposed by this chapter are a lien upon the property of an
447 employer liable for the contribution required to be collected under this section who shall sell
448 out the employer's business or stock of goods or shall quit business, if the employer fails to
449 make a final report and payment on the date subsequent to the date of selling or quitting
450 business on which they are due and payable as prescribed by rule.
451 (b) (i) An employer's successor, successors, or assigns, if any, are required to withhold
452 sufficient of the purchase money to cover the amount of the contributions and interest or
453 penalties due and payable until the former owner produces a receipt from the division showing
454 that they have been paid or a certificate stating that no amount is due.
455 (ii) If the purchaser of a business or stock of goods fails to withhold sufficient purchase
456 money, the purchaser is personally liable for the payment of the amount of the contributions
457 required to be paid by the former owner, interest and penalties accrued and unpaid by the
458 former owner, owners, or assignors.
459 (7) (a) If an employer is delinquent in the payment of a contribution, the division may
460 give notice of the amount of the delinquency by registered mail to all persons having in their
461 possession or under their control, any credits or other personal property belonging to the
462 employer, or owing any debts to the employer at the time of the receipt by them of the notice.
463 (b) A person notified under Subsection (7)(a) shall neither transfer nor make any other
464 disposition of the credits, other personal property, or debts until:
465 (i) the division has consented to a transfer or disposition; or
466 (ii) 20 days after the receipt of the notice.
467 (c) All persons notified under Subsection (7)(a) shall, within five days after receipt of
468 the notice, advise the division of credits, other personal property, or other debts in their
469 possession, under their control or owing by them, as the case may be.
470 (8) (a) (i) Each employer shall furnish the division necessary information for the proper
471 administration of this chapter and shall include wage information for each employee, for each
472 calendar quarter.
473 (ii) The information shall be furnished at a time, in the form, and to those individuals
474 as the department may by rule require.
475 (b) (i) Each employer shall furnish each individual worker who is separated that
476 information as the department may by rule require, and shall furnish within 48 hours of the
477 receipt of a request from the division a report of the earnings of any individual during the
478 individual's base-period.
479 (ii) The report shall be on a form prescribed by the division and contain all information
480 prescribed by the division.
481 (c) (i) For each failure by an employer to conform to this Subsection (8) the division
482 shall, unless good cause is shown, assess a $50 penalty if the filing was not more than 15 days
484 (ii) If the filing is more than 15 days late, the division shall assess an additional penalty
485 of $50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250
486 per filing.
487 (iii) The penalty is to be collected in the same manner as contributions due under this
489 (d) (i) The division shall prescribe rules providing standards for determining which
490 contribution reports shall be filed on magnetic or electronic media or in other machine-readable
492 (ii) In prescribing these rules, the division:
493 (A) may not require an employer to file contribution reports on magnetic or electronic
494 media unless the employer is required to file wage data on at least 250 employees during any
495 calendar quarter or is an authorized employer representative who files quarterly tax reports on
496 behalf of 100 or more employers during any calendar quarter;
497 (B) shall take into account, among other relevant factors, the ability of the employer to
498 comply at reasonable cost with the requirements of the rules; and
499 (C) may require an employer to post a bond for failure to comply with the rules
500 required by this Subsection (8)(d).
501 (9) (a) (i) An employer liable for payments in lieu of contributions shall file
502 Reimbursable Employment and Wage Reports.
503 (ii) The reports are due on the last day of the month that follows the end of each
504 calendar quarter unless the division, after giving notice, changes the due date.
505 (iii) A report postmarked on or before the due date is considered timely.
506 (b) (i) Unless the employer can show good cause, the division shall assess a $50
507 penalty against an employer who does not file Reimbursable Employment and Wage Reports
508 within the time limits set out in Subsection (9)(a) if the filing was not more than 15 days late.
509 (ii) If the filing is more than 15 days late, the division shall assess an additional penalty
510 of $50 for each 15 days, or a fraction of the 15 days that the filing is late, not to exceed $250
511 per filing.
512 (iii) The division shall assess and collect the penalties referred to in this Subsection
513 (9)(b) in the same manner as prescribed in Sections 35A-4-309 and 35A-4-311 .
514 (10) If a person liable to pay a contribution or benefit overpayment imposed by this
515 chapter neglects or refuses to pay it after demand, the amount, including any interest, additional
516 amount, addition to contributions, or assessable penalty, together with any additional accruable
517 costs, shall be a lien in favor of the division upon all property and rights to property, whether
518 real or personal belonging to the person.
519 (11) (a) The lien imposed by Subsection (10) arises at the time the assessment, as
520 defined in the department rules, is made and continues until the liability for the amount
521 assessed, or a judgment against the taxpayer arising out of the liability, is satisfied.
522 (b) (i) The lien imposed by Subsection (10) is not valid as against a purchaser, holder
523 of a security interest, mechanics' lien holder, or judgment lien creditor until the division files a
524 warrant with the clerk of the district court.
525 (ii) For the purposes of this Subsection (11)(b):
526 (A) "Judgment lien creditor" means a person who obtains a valid judgment of a court
527 of record for recovery of specific property or a sum certain of money, and who in the case of a
528 recovery of money, has a perfected lien under the judgment on the property involved. A
529 judgment lien does not include inchoate liens such as attachment or garnishment liens until
530 they ripen into a judgment. A judgment lien does not include the determination or assessment
531 of a quasi-judicial authority, such as a state or federal taxing authority.
532 (B) "Mechanics' lien holder" means any person who has a lien on real property, or on
533 the proceeds of a contract relating to real property, for services, labor, or materials furnished in
534 connection with the construction or improvement of the property. A person has a lien on the
535 earliest date the lien becomes valid against subsequent purchasers without actual notice, but not
536 before the person begins to furnish the services, labor, or materials.
537 (C) "Person" means:
538 (I) an individual;
539 (II) a trust;
540 (III) an estate;
541 (IV) a partnership;
542 (V) an association;
543 (VI) a company;
544 (VII) a limited liability company;
545 (VIII) a limited liability partnership; or
546 (IX) a corporation.
547 (D) "Purchaser" means a person who, for adequate and full consideration in money or
548 money's worth, acquires an interest, other than a lien or security interest, in property which is
549 valid under state law against subsequent purchasers without actual notice.
550 (E) "Security interest" means any interest in property acquired by contract for the
551 purpose of securing payment or performance of an obligation or indemnifying against loss or
552 liability. A security interest exists at any time:
553 (I) the property is in existence and the interest has become protected under the law
554 against a subsequent judgment lien arising out of an unsecured obligation; and
555 (II) to the extent that, at that time, the holder has parted with money or money's worth.
556 (12) (a) Except in cases involving a violation of unemployment compensation
557 provisions under Section 76-8-1301 , Subsection 35A-4-304 (5), or Subsection 35A-4-405 (5),
558 and at the discretion of the division, the division may accept an offer in compromise from an
559 employer or claimant to reduce past due debt arising from contributions or benefit
560 overpayments imposed under this chapter.
561 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
562 division shall make rules for allowing an offer in compromise provided under Subsection
564 Section 4. Effective date.
565 If approved by two-thirds of all the members elected to each house, this bill takes effect
566 upon approval by the governor, or the day following the constitutional time limit of Utah
567 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
568 the date of veto override.
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