A BILL TO BE ENTITLED
AN ACT to PROTECT THE UNEMPLOYED FROM THE UNNECESSARY LOSS OF FEDERAL EMERGENCY UNEMPLOYMENT COMPENSATION IN 2013.
Whereas, North Carolina has one of the highest unemployment rates in the country; and
Whereas, currently in 2013, there are not enough jobs for all North Carolinians who are looking for work; and
Whereas, unemployment insurance benefits provide much needed assistance to workers who have lost their jobs through no fault of their own until they are able to get back to work; and
Whereas, unemployment insurance benefits provide a safety net to North Carolina families to help meet basic living costs like housing, utilities, food, clothing, and other necessities; and
Whereas, the federal Emergency Unemployment Compensation (EUC) program currently provides benefits to unemployed North Carolinians who exhaust their State benefits; and
Whereas, the EUC is 100% funded by the United States federal government; and
Whereas, House Bill 4 (Session Law 2013‑2) contained provisions that reduce State unemployment insurance benefits effective July 1, 2013; and
Whereas, the cuts to State unemployment insurance benefits contained in House Bill 4 violate North Carolina's agreement with the United States Department of Labor regarding EUC ending the payment of EUC on July 1, 2013, to North Carolina workers who have exhausted their State benefits; and
Whereas, on July 1, 2013, North Carolina will be the only State that does not provide additional weeks of unemployment benefits under the federal Extended Unemployment Compensation program; and
Whereas, it is estimated that approximately 104,000 North Carolinians will be cut off from EUC because of the effective date of July 1, 2013, for the cuts to benefits contained in House Bill 4; and
Whereas, it is estimated that another 66,000 workers who will need extended benefits will not be able to access EUC after July 1, 2013, because of the effective date of July 1, 2013, for the cuts to benefits contained in House Bill 4; and
Whereas, by deliberately violating the federal agreement regarding EUC, North Carolina will lose over $700 million in federal funds over the last six months of 2013; and
Whereas, it is estimated that the debt owed to the federal government for the payment of unemployment insurance benefits will be paid off or other measures are available over the next three years so that reductions to employers' federal Unemployment Tax Credit will end in 2016; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  Section 11 of S.L. 2013‑2 reads as rewritten:
"SECTION 11. This act becomes effective January 1, 2014. Changes made by this act to unemployment benefits apply to claims for benefits filed on or after January 1, 2014. Changes made by this act to require an account balance by an employer that is a governmental entity or a nonprofit organization and that elects to finance benefits by making reimbursable payments in lieu of contributions apply to advance payments payable for calendar quarters beginning on or after January 1, 2014. Changes made by this act to the determination and application of the contribution rate apply to contributions payable for calendar quarters beginning on or after January 1, 2014."
SECTION 2.  This act is effective when it becomes law.