HB279 Alabama 2010 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Frank McDaniel
Democrat
Session: Regular Session 2010
Title: Employment Security Enhancement Fund, special assessment, expiration date extended to 2011, extended unemployment compensation benefits paid with federal funds further provided for, Secs. 25-4-40.1, 25-4-54, 25-4-75 am'd.
Summary: HB279 updates and funds Alabama's Employment Security program by extending and reorganizing the Employment Security Enhancement Fund and the rules for extended unemployment benefits and employer contributions.
What This Bill Does
It extends (and retroactively applies to) the special 0.06% wage assessment to fund the Employment Security Enhancement Fund, creating a dedicated, non-lapsing state treasury fund to support claimant assistance, program administration, and related costs. It adds an overview committee to plan and monitor claimant assistance programs and requires annual reporting on collections, expenditures, and program success. It also updates how unemployment insurance taxes and benefits are calculated, including shared costs, benefit ratios, and schedules for employer contribution rates, and overhauls the extended unemployment benefits program with new eligibility rules, benefit amounts, and coordination with interstate claims.

Who It Affects
Employers (including governmental entities, nonprofits, hospitals, and educational institutions that pay contributions) by changing how their contribution rates and shared costs are determined and applied.
Unemployed individuals and benefit claimants by modifying eligibility for extended benefits, how much they can receive, and the conditions for receiving extended unemployment benefits.

Key Provisions
Creates and funds the Employment Security Enhancement Fund in the State Treasury, financed by a retroactive 0.06% special assessment on wages, with money dedicated to claimant assistance, program administration, and related costs; funds do not lapse and are intended to supplement federal funds, with leftover money transferred to the Unemployment Compensation Trust Fund if the program ends.
Establishes an overview committee (5 members) to plan the claimant assistance program and monitor standards, reporting, and results; committee members serve without pay but are reimbursed for expenses from the Employment Security Enhancement Fund.
Defines and updates the use and administration of funds, including annual reporting to the Governor, Lieutenant Governor, and Speaker of the House; allows the director to pay necessary costs related to employment security enhancements from the fund; and sets rules for collection and enforcement similar to those for contributions.
Amends Sections 25-4-54 and 25-4-75 to revise how employer contribution rates and benefit charges are determined, introduce shared costs, and apply new rate schedules (A-D) based on benefit ratios and other factors; includes transitional rules for prior years and organizations subject to different rate calculations.
Overhauls extended unemployment benefits by detailing eligibility, weekly and total extended benefit amounts, the calculation of those benefits, eligibility period rules, and restrictions on benefits when the recipient fails to seek or accept suitable work, with coordination for interstate claims and periodic adjustments for high unemployment periods.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Industrial Relations