HB 859 (Edition 1)

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2021

H 1

HOUSE BILL 859

Short Title: Unemployment Insurance Study.		(Public)
Sponsors:	Representatives Butler and Harris (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to:	Rules, Calendar, and Operations of the House

May 5, 2021

A BILL TO BE ENTITLED

AN ACT to establish the legislative study committee on unemployment insurance in north carolina.

The General Assembly of North Carolina enacts:

SECTION 1.1. Findings. – The General Assembly finds that:

(1) Recent historic events affecting the national economy have required unprecedented numbers of North Carolinians to access the State's unemployment insurance program (UI program).

(2) It is imperative that the State maximize the effectiveness and efficiency of the UI program and provide benefits to workers in need that provide the level of assistance that workers need at the time they need it most.

(3) Therefore, a comprehensive review of the State's UI benefits levels, administration, outcomes, and other features will guide the General Assembly toward making any modifications necessary to make the State's UI program the best in the nation.

SECTION 2.1. Committee Established. – There is established the Legislative Study Committee on Unemployment Insurance in North Carolina (Committee). The Committee shall include 13 voting members, as follows:

(1) Three persons representing employees and labor organizations in this State appointed by the Governor.

(2) Three persons representing employers or trade organizations focused on the automated workplace appointed by the Governor.

(3) Three persons appointed by the President Pro Tempore of the Senate, including (i) two persons who are members of the Senate at the time of appointment, at least one of whom represents the minority party, and (ii) one person from the general public.

(4) Three persons appointed by the Speaker of the House of Representatives, including (i) two persons who are members of the House of Representatives at the time of appointment, at least one of whom represents the minority party, and (ii) one person from the general public.

(5) One person elected to membership by the members of the Committee designated in subdivisions (1) through (4) of this subsection.

SECTION 2.2. Nonvoting Members. – The following officials or the official's designee shall serve as a nonvoting ex officio member of the Committee:

(1) The Commissioner of Labor.

(2) The Assistant Secretary of Commerce in charge of the Division of Employment Security.

(3) The State Chief Information Officer.

SECTION 2.3.(a) Charge. – The Committee is charged with studying the State's UI program with a special emphasis on comparing the features and performance of unemployment insurance administration and benefits in North Carolina to the unemployment insurance programs of other states. The Committee's examination shall include all of the following issues:

(1) A comparison of the State's UI program administration, benefits, performance, and other relevant parameters relative to the following jurisdictions having the largest populations in the nation:

a. California

b. Texas

c. Florida

d. New York

e. Pennsylvania

f. Illinois

g. Ohio

h. Georgia

i. Michigan.

(2) A comparison of the State's UI program administration, benefits, performance, and other relevant features relative to jurisdictions in the nation's southeast region having either different or similar characteristics:

a. Alabama

b. Florida

c. Georgia

d. Kentucky

e. Mississippi

f. South Carolina

g. Tennessee.

(3) Review of the amount of assistance that unemployed North Carolina workers need during unemployment and the most appropriate duration of benefits.

(4) The current and potential future impact of continuing the State's UI program without any modifications.

(5) Whether modifications, including changes related to information technology, are necessary to maximize the effectiveness and efficiency of the State's UI program.

(6) Consideration of any other pertinent matter relevant to the Committee's charge.

SECTION 2.3.(b) The findings and recommendations of the Committee shall be made upon majority vote of the voting members. Any recommendation for modification of a policy, rule, or law shall be accompanied by a specific policy or legislative proposal and the estimated cost of implementing the modification.

SECTION 2.4. Terms. – Except for the person elected by the Committee, all appointing authorities shall make appointments to the Committee by October 1, 2021, and the terms of all members shall commence on October 1, 2021. The election of members shall be conducted during the initial organizational meeting of the Committee with the terms of the elected members deemed to begin on October 1, 2021.

SECTION 2.5. Organization/Administration. – The Minority Leader in the House of Representatives and the Majority Leader in the Senate shall each designate a cochair from among the voting members of the Committee. The cochair designated by the House Minority Leader shall preside over the Committee during the odd‑numbered year, and the cochair designated by the Senate Majority Leader shall preside in the even‑numbered year. A cochair may preside at any time during the absence of the presiding cochair or upon the presiding cochair's designation. The Committee shall meet upon the call of its cochairs.

All voting members shall be appointed for a term of two years. Voting members may be reappointed to successive terms. A vacancy on the Committee shall be filled by the original appointing authority using the criteria for the prior appointment. Any appointment to fill a vacancy on the Committee created by the resignation, dismissal, death, disability, or disqualification of a member shall be for the balance of the unexpired term. The Governor may remove any member of the Committee for misfeasance, malfeasance, or nonfeasance, pursuant to the provisions of G.S. 143B‑13.

Members of the Committee shall receive per diem and necessary travel and subsistence expenses in accordance with G.S. 120‑3.1, 138‑5, and 138‑6, as applicable. The Committee may meet in the Legislative Building or the Legislative Office Building. A majority of the voting members shall constitute a quorum.

The Legislative Services Officer shall assign professional and clerical staff and provide other necessary resources for the Committee in its work, including the engagement of any necessary consulting services as determined by the Committee.

SECTION 3.1. Reporting. – The Committee shall submit its initial written report to the Governor and to the Joint Legislative Commission on Governmental Operations by March 1, 2022. The Committee shall submit its final report prior to the convening of the 2023 General Assembly. The final report shall contain a detailed summary of findings, conclusions, and recommendations for each issue reviewed under this act.

SECTION 3.2. Expiration. – The Committee expires upon submission of the final report unless extended by the General Assembly.

SECTION 4.1. Effective Date. – This act is effective when it becomes law.