No. 29956: R994-303. Contribution Rates and Relief of Charges.

DAR File No.: 29956
Filed: 05/17/2007, 02:07
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 35A-4-303 establishes contribution rates for employers. This rule explains when and how the rate is determined and when and how to appeal a rate. The rule also explains and defines terms such as successorship necessary to avoid "SUTA dumping" (State Unemployment Tax Act) which occurs when an employer with a high unemployment rate makes changes to unlawfully obtain a lower rate. Section 35A-4-102 sets forth the public policy considerations of the Employment Security Act and the creation, under the state's police power, of free public employment offices and the setting aside of reserves for the payment to unemployed individuals. Subsection 35A-4-502(1)(b) authorizes the Department to make rules as necessary for the administration of the Act. Subsection 35A-1-104(a) authorizes the Department to adopt rules.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The Department has received no comments since the last five-year review.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The rule is necessary to define terms, explain how and when rates are assigned, and the basis for making the rate determination. Therefore, this rule should be continued. It should be noted that this rule is being repealed and reenacted effective 07/01/2007. There are no substantive changes to the reenactment but many changes were made to eliminate archaic language and reflect changes in Department procedures. (DAR NOTE: The repeal and reenactment on Rule R994-303 is under DAR No. 29687 in the April 1, 2007, issue of the Bulletin.)

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Workforce Services
Unemployment Insurance
140 E 300 S
SALT LAKE CITY UT 84111-2333

Direct questions regarding this rule to:

Suzan Pixton at the above address, by phone at 801-526-9645, by FAX at 801-526-9211, or by Internet E-mail at [e-mail]

Authorized by:

Kristen Cox, Executive Director