GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	2 

HOUSE JOINT RESOLUTION 850
Committee Substitute Favorable 5/4/95

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Sponsors:

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Referred to:  

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April 12, 1995

A JOINT RESOLUTION HONORING THE MEMORY OF COLONEL HENRY ELI KENDALL, JR., FOR HIS COMMITMENT TO CONSERVATIVE AND EFFECTIVE UTILIZATION OF PUBLIC FUNDS DURING HIS SERVICE AS CHAIR OF THE EMPLOYMENT SECURITY COMMISSION, AND REQUESTING CONGRESS TO DEVOLVE THE UNEMPLOYMENT INSURANCE SYSTEM BACK TO STATE CONTROL.
Whereas, Colonel Henry Eli Kendall, Jr., deserves honor and recognition for his commitment to conservative and effective utilization of public funds in his unprecedented 27 years of service to North Carolina as Chair of the Employment Security Commission; and
Whereas, Colonel Kendall's contempt for needless levels of bureaucracy and unwarranted federal intervention into matters best addressed by the states was timely during his lifetime; more than a decade after his death his philosophy in this regard is shared by elected officials of both political parties in this State; and
Whereas, in 1988 the National Governors Association presented a proposal to devolve the unemployment insurance (UI) system back to the states, which proposal was defeated by a minority of states still receiving more than their fair share of operating expenses of the UI system; and
Whereas, because some states, North Carolina among them, are more efficient in their operation of the UI system than other states, the employer tax dollars of these more efficient states should not be used to support the inefficiencies of the other states in operating the UI system; and
Whereas, North Carolina employers are responsible for paying tax dollars for their own employees' coverage under the UI system and should not be responsible for paying other states' costs to provide coverage; and
Whereas, the current UI system has too many levels of bureaucracy both nationally and regionally; and
Whereas, the UI trust fund in Washington, D.C. is contained within the "unified budget”but should be separate since only employers pay this tax and do so for a very specific purpose; and
Whereas, employers are confused and burdened by having to pay two separate UI taxes to two different government agencies for the operation of the unemployment insurance (UI), employment service (ES), and LMI (local market information) programs, and for paying benefits; and
Whereas, state legislatures should have the authority to run their own UI system to fit the needs of their own workforce at a reduced cost and savings to the employers through lower UI taxes; and
Whereas, several other states are considering similar initiatives and resolutions proposing devolution of the UI system;
Now, therefore, be it resolved by the House of Representatives, the Senate concurring:
Section 1.  The General Assembly honors the memory of Colonel Henry Eli Kendall, Jr., and expresses the gratitude and appreciation of this State and its citizens for his life and devoted service to North Carolina.
Sec. 2.  The General Assembly requests that the Congress of the United States devolve the Unemployment Insurance (UI) system back to the states, and that Federal Unemployment Tax Act (FUTA) taxes be repealed, and that states be authorized to set their own method for administrative costs in implementing UI, ES, and LMI programs.
Sec. 3.  The Secretary of State shall transmit a certified copy of this resolution to the family of Colonel Henry Eli Kendall, Jr., and to the President of the United States, the President of the United States Senate, the Speaker of the United States House of Representatives, and to each of the members of North Carolina's Congressional Delegation.
Sec. 4.  This resolution is effective upon ratification.