SB588 Alabama 2010 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Co-Sponsors

Quinton RossLinda Coleman-MadisonPriscilla Dunn

Session

Regular Session 2010

Title

Employment Security Enhancement Fund, special assessment, expiration date extended, eligibility period for payment of extended benefits further provided for, Secs. 25-4-40.1, 25-4-54, 25-4-75 am'd.

Summary

SB588 extends Alabama's Employment Security Enhancement Fund funding and updates extended unemployment benefits rules and funding mechanisms.

What This Bill Does

Extends the special 0.06% wage-based assessment funding the Employment Security Enhancement Fund through September 30, 2011 (instead of ending 2010). Repeals the December 2009 expiration for using federal funds to pay 100% of extended unemployment benefits, allowing continued federal support. Updates how the Employment Security Enhancement Fund is managed and used (including collection, administration, and oversight) and how funds are allocated for job search/placement and program administration. Revises the extended benefits program, including how long extended benefits last, eligibility rules, weekly benefit amounts, and requirements to seek and accept suitable work.

Who It Affects

• Employers subject to unemployment contributions: they would pay the extended special assessment and be affected by changes to contribution rate calculations, notices of benefit ratios, and the new or revised rate schedules.
• Unemployed claimants and extended benefit recipients: they would be affected by longer or adjusted extended benefit periods, different benefit amounts, eligibility conditions (including work-seeking requirements), and rules for interstate claims.

Key Provisions

• Extension of the Employment Security Enhancement Fund's special assessment to 9/30/2011 and repeal of the December 2009 expiration for federal funding of extended benefits.
• Creation and ongoing operation of the Employment Security Enhancement Fund, including retroactive assessment (from 1992), collection methods, and allowable uses such as special claimant assistance and program administration; establishment of an overview committee and required annual reporting.
• Revised extended benefits framework under Section 25-4-75, including definitions of extended benefit period, eligibility, weekly amounts (50% of regular benefits or 13 weeks, with higher amounts during high unemployment periods), and conditions restricting eligibility (e.g., requirement to seek work, acceptance of suitable work).
• Contribution rate mechanics and shared costs under Section 25-4-54, including interaction with the rate schedules (A-D), fund balance triggers to determine rates, and the concept of shared costs among employers; requires notice to employers and provides for review and adjustment processes.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Industrial Relations