Florida Governor Rick Scott recently signed into law a number of bills comprising his Job Creation and Economic Growth Agenda. The bills streamline state regulations; transform the unemployment system into a reemployment system; provide tax relief to job creators; and make Florida’s workforce boards more efficient and accountable.
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Get Your Report Now!Under HB 7027, the unemployment compensation law has been rebranded as the reemployment assistance (RA) program, with corresponding name changes for related entities. The law builds on the mandatory skills testing that Governor Scott introduced last year for all jobless benefit claimants. Under the new law, DEO must establish a numeric score for the initial skills review that includes a minimum proficiency level in workforce skills. Claimants who fail to meet that standard will be encouraged to take advantage of free training to achieve proficiency. HB 7027 makes Florida the first state in the country to change from an unemployment compensation system to a reemployment assistance program.
Another provision of HB 7027 allows professional employer organizations (PEOs) to make a one-time, irrevocable election to calculate, report, and pay state unemployment taxes under their client accounts rather than their own. Existing PEOs must make the election by July 1, 2012. The provision applies to taxes owed on or after January 1, 2013.
Finally, HB 7027 provides some tax relief by reducing a scheduled increase in the unemployment taxable wage base from $8,500 to $8,000. This provision is effective for tax years 2012 through 2014. The law also extends the recoupment period for the unemployment trust fund from 3 to 5 years through 2017, which will help stabilize future rates.
HB 7023 gives the Governor and the Department of Economic Opportunity (DEO) greater control over workforce boards and their budgets and requires increased financial disclosures by board members. The law also extends a provision that designates participants in work experience activities employees of the state for workers’ compensation purposes.
HB 7029 eliminates hundreds of burdensome state rules and regulations as part of the rule review and elimination process Governor Scott started on his first day in office.