HB305 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gregory Canfield
Republican
Session: Regular Session 2011
Title: Unemployment compensation, special assessments used to fund Employment Security Enhancement Fund, expiration date extended, Secs. 25-4-40.1, 25-4-54 am'd.; Act 2010-505, 2010 Reg. Sess. am'd.
Summary: HB305 extends the 0.06% special wage assessment to fund Alabama's Employment Security Enhancement Fund through September 30, 2013 and outlines how the funds are used and overseen.
What This Bill Does
It retroactively extends a 0.06% wage-based special assessment for employers subject to unemployment contributions, through Sept. 30, 2013 (from 2011). The collected money goes into the Employment Security Enhancement Fund in the State Treasury, first through a clearing account, and is used for a Special Claimant Assistance Program and general improvements to employment security, plus administration and revenue collection costs. The act also creates an oversight committee, requires an annual report on fund activity, and keeps interest earned in the fund; if the funded programs end, remaining funds transfer to the Unemployment Compensation Trust Fund in the U.S. Treasury.

Who It Affects
Employers that pay unemployment contributions will owe the 0.06% special assessment, with certain exemptions (e.g., some high-rate employers, those who pay in lieu of contributions, or those without sufficient unemployment experience). The assessment is not deducted from employees' wages.
Unemployed claimants and unemployment benefits recipients may benefit from the Special Claimant Assistance Program funded by the Employment Security Enhancement Fund.

Key Provisions
Extends the expiration date of the 0.06% special wage assessment to September 30, 2013, retroactive to April 1, 1992.
Requires the 0.06% assessment to be paid by eligible employers (subject to contributions) and specifies exemptions for certain employers.
Creates the Employment Security Enhancement Fund in the State Treasury and directs deposits from the assessment to flow first to a clearing account and then into the Fund, with funds not to substitute for federal funds.
Authorizes uses of the Fund for a Special Claimant Assistance Program, general administration and enhancement of employment security, costs of revenue collection and maintenance, and annual reporting to the Governor, Lt. Governor, and House Speaker.
Any interest earned stays in the Employment Security Enhancement Fund; if programs funded by the Fund cease, remaining funds are transferred to the Unemployment Compensation Trust Fund at the U.S. Treasury.
Establishes an overview committee (five members) to plan and monitor claimant programs, set standards, monitor progress, and report findings; committee expenses are paid from the Fund.
Requires amendments to sections 25-4-40.1 and 25-4-54 to implement the extension and funding changes.

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