(a) (1) (A) In addition to the contributions and any stabilization and extended benefits taxes levied under other provisions of §§ 11-10-703 -- 11-10-708, each employer, except employers that have made an election to reimburse the Unemployment Compensation Fund under § 11-10-713(c), shall pay a separate and additional tax, to be known as the advance interest tax, on wages paid by that employer with respect to employment.

(B) For rate years beginning on and after January 1, 1993, the advance interest tax shall be two-tenths of one percent (0.2%) when the state has an outstanding interest-bearing advance under Title XII of the Social Security Act.

(C) The tax is effective the first month of the quarter following the state's obtaining an interest-bearing advance and shall remain until the quarter immediately following the repayment of the advancement and the Employment Security Advance Interest Trust Fund, § 19-5-935, attains a balance of five million dollars ($5,000,000);

(2) For purposes of this section, the definition of the assets of the trust fund shall be the same as that set forth in § 11-10-706, and the computation date is defined as September 30 of the calendar year preceding the tax year.

(3) This advance interest tax shall not be credited to the separate account of any employer. It shall be levied and collected in the same manner as contributions and shall be subject to the same penalty and interest, collection, impoundment, priority, lien, certificate of assessment, and assessment provisions and procedures set forth in §§ 11-10-716 -- 11-10-722.

(b)

(1) Receipts from this advance interest tax and any penalty and interest collected on overdue advance interest taxes shall be deposited into the Unemployment Compensation Fund Clearing Account.

(2) At least once each month, deposits that have been established as advance interest tax payments and any interest and penalty payments applicable to the advance interest payments shall be paid over to the Treasurer of State and credited by the Treasurer of State to the Employment Security Advance Interest Trust Fund created and established in the State Treasury.

(3) All income from investment of the Employment Security Advance Interest Trust Fund shall be deposited and credited to that Employment Security Advance Interest Trust Fund.

(4) All withdrawals shall be upon voucher warrants issued, or caused to be issued, by the Director of the Department of Workforce Services as authorized by legislative appropriation and, except as otherwise provided herein, shall be used only for the purpose of:

(A) Paying interest incurred by the state on advances obtained from the federal Unemployment Trust Fund under Title XII of the Social Security Act;

(B) Making refunds of the aforementioned advance interest tax and interest and penalty payments attributed to the advance interest tax which were erroneously paid; and

(C) Returning moneys to the Unemployment Compensation Fund Clearing Account that may have been incorrectly identified and erroneously transferred to the Employment Security Advance Interest Trust Fund in the State Treasury.

(c)

(1) On November 10 of each calendar year, the director shall transfer all assets of the Employment Security Advance Interest Trust Fund, which exceed five million dollars ($5,000,000) to the Unemployment Compensation Fund, § 11-10-801, provided that the state has no interest-bearing advances obtained from the federal Unemployment Trust Fund under Title XII of the Social Security Act outstanding.

(2) Notwithstanding any other provision of this section, all income from investment of the Employment Security Advance Interest Trust Fund earned during calendar years 1995 and 1996 shall be deposited and credited to the Department of Workforce Services Special Fund, § 19-5-984, as set out in § 11-10-716.

(d) Any interest required to be paid on advances obtained by the state under Title XII of the Social Security Act shall be paid in a timely manner and shall not be paid directly or indirectly by an equivalent reduction in unemployment contributions or taxes imposed under other provisions of §§ 11-10-701 -- 11-10-715 or otherwise from amounts in the Unemployment Compensation Fund established under § 11-10-801 et seq.

(e) The director shall promulgate such regulations as are necessary to carry out the provisions of this section.