AGO 81-053.

• Case Date: June 03, 1981
• Court: North Dakota

North Dakota Attorney General Opinions 1981. AGO 81-053. OPINION 81-53Date Issued: June 3, 1981 (AGO 81-53) Requested by: Executive Director of Job Service North Dakota (Originally requested by Therman Kaldahl, but issued to Shirley Peterson, his successor)- QUESTION PRESENTED - Whether the method of benefit financing set forth in subdivision b of subsections 1 and 2 of section 52-04-19.1 of the North Dakota Century Code as amended in 1981 is a reimbursable method of financing which would allow for a refund to employers of excess contributions over benefit costs.

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ATTORNEY GENERAL'S OPINION - It is my opinion that the provisions of subdivision b of subsections 1 and 2 of section 52-04-19.1, N.D.C.C., as amended in 1981, set forth a reimbursable method of financing which allow for a refund to employers of excess contributions over benefit costs. - ANALYSIS - The provisions of subdivision b of subsections 1 and 2 of section 52-04-1 9.1, N.D.C.C., set forth a method of unemployment benefit financing available to the State of North Dakota and to political subdivisions. This method of benefit financing provides for payment by the employer of quarterly contributions in the amount of one percent of total quarterly payroll for 1978 and 1979. For each two-year period after 1979 the contribution rate is determined by Job Service North Dakota based upon the actual claim experience of the employer, with Job Service having the authority to modify the rate in order to minimize excess or insufficient payments made in prior periods. There are two methods of employer payments. One is the "contribution" or "tax-rated" method. The other is the "reimbursable" method. Subdivision b of subsections 1 and 2 of section 52-04-19.1, N.D.C.C., makes reference to "payment in lieu of contributions." Prior to the 1981 amendments it would appear that the method of financing set forth is a "contribution" or "tax-rated" method. However, the 1981 amendments adding the words "in lieu" clearly...