Bill Text: NC H24 | 2015-2016 | Regular Session | Amended
Bill Title: Unemployment Insurance Law Changes
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Introduced - Dead) 2015-02-02 - Ref To Com On Finance [H24 Detail]
Download: North_Carolina-2015-H24-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
H 1
HOUSE BILL 24*
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Short Title: Unemployment Insurance Law Changes. |
(Public) |
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Sponsors: |
Representatives Howard, Arp, Tine, and Warren (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Finance. |
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February 2, 2015
A BILL TO BE ENTITLED
AN ACT TO AMEND THE UNEMPLOYMENT INSURANCE LAWS, as recommended by the joint legislative oversight committee on unemployment insurance.
The General Assembly of North Carolina enacts:
PART I: authorizING DMV TO disclose social security numbers; requiring UI claimants to contact FIVE potential employers per week; and eliminating the procedure to request reconsideration of decisions.
SECTION 1.1. G.S. 20‑7(b2) is amended by adding a new subdivision to read:
"(b2) Disclosure of Social Security Number. – The social security number of an applicant is not a public record. The Division may not disclose an applicant's social security number except as allowed under federal law. A violation of the disclosure restrictions is punishable as provided in 42 U.S.C. § 408, and amendments to that law.
In accordance with 42 U.S.C. 405 and 42 U.S.C. 666, and amendments thereto, the Division may disclose a social security number obtained under subsection (b1) of this section only as follows:
…
(7) To the Department of Commerce, Division of Employment Security, for the purpose of verifying employer and claimant identity."
SECTION 1.2.(a) G.S. 96‑9.2(c) reads as rewritten:
"(c) Contribution Rate for Experience‑Rated
Employer. – The contribution rate for an experience‑rated employer who
does not qualify as a beginning employer under subsection (b) of this section
is determined in accordance with the table set out below and then rounded to
the nearest one‑hundredth percent (0.01%), subject to the minimum and maximum
contribution rates. The minimum contribution rate is six‑hundredths of
one percent (0.06%). The maximum contribution rate is five and seventy‑six
hundredths percent (5.76%). "Total insured wages" are the total wages
reported by all insured employers for the 12‑month period ending on July
31 June 30 preceding the computation date. An employer's experience
rating is computed as a reserve ratio in accordance with G.S. 96‑9.4.
An employer's reserve ratio percentage (ERRP) is the employer's reserve ratio multiplied
by sixty‑eight hundredths. A positive ERRP produces a lower contribution
rate, and a negative ERRP produces a higher contribution rate.
…."
SECTION 1.2.(b) This section is effective when it becomes law and applies to contributions payable for calendar quarters beginning on or after January 1, 2014.
SECTION 1.3.(a) G.S. 96‑14.9(e) reads as rewritten:
"(e) Actively Seeking Work. – The Division's determination of whether an individual is actively seeking work is based upon the following:
(1) The individual is registered for employment services, as required by the Division.
(2) The individual has engaged in an active search for employment that is appropriate in light of the employment available in the labor market and the individual's skills and capabilities.
(3) The individual has sought work on at least two
different days during the week and made at least two five job
contacts with potential employers.employers during the week.
(4) The individual has maintained a record of the individual's work search efforts. The record must include the potential employers contacted, the method of contact, and the date contacted. The individual must provide the record to the Division upon request."
SECTION 1.3.(b) This section becomes effective July 1, 2015, and applies to claims for benefits filed on or after that date.
SECTION 1.4.(a) G.S. 96‑15(h) reads as rewritten:
"(h) Judicial Review. – Any A decision
of the Division, in the absence of judicial review as herein provided, or in
the absence of an interested party filing a request for reconsideration, shall become
Board of Review becomes final 30 days after the date of notification
or mailing thereof, whichever is earlier. unless a party to the
decision seeks judicial review as provided in this subsection. Judicial
review shall be is permitted only after a party claiming to be
aggrieved by the decision has exhausted his remedies before the Division as
provided in this Chapter the remedies provided in this Chapter and
has filed a petition for review in the superior court of the county in which he
the petitioner resides or has his the county in which the petitioner's
principal place of business. business is located. The
petition for review shall must explicitly state what exceptions
are taken to the decision or procedure of the Division and what relief
the petitioner seeks. Within 10 days after the petition is filed with the
court, the petitioner shall must serve copies of the petition by
personal service or by certified mail, return receipt requested, upon the Division
and upon all parties of record to the Division proceedings. The Division
must furnish the petitioner the names Names and addresses of the
parties shall be furnished to the petitioner by the Division upon
request. The Division shall be deemed to be is a party to any
judicial action involving any of its decisions and may be represented in the
judicial action by any qualified attorney who has been designated by it for
that purpose. Any questions regarding the requirements of this subsection
concerning the service or filing of a petition shall must be
determined by the superior court. Any party to the Division proceeding may
become a party to the review proceeding by notifying the court within 10 days
after receipt of the copy of the petition. Any person aggrieved may petition to
become a party by filing a motion to intervene as provided in G.S. 1A‑1,
Rule 24.
Within 45 days after receipt of the copy of the petition for
review or within such additional time as the court may allow, the Division shall
must transmit to the reviewing court the original or a certified
copy of the entire record of the proceedings under review. With the permission
of the court the record may be shortened by stipulation of all parties to the
review proceedings. Any party unreasonably refusing to stipulate to limit the
record may be taxed by the court for such the additional cost as
is occasioned incurred by the refusal. The court may require or
permit subsequent corrections or additions to the record when deemed the
court considers the changes desirable."
SECTION 1.4.(b) This section becomes effective July 1, 2015, and applies to decisions made on or after that date.
SECTION 1.5.(a) G.S. 96‑3 reads as rewritten:
"§ 96‑3. Division of Employment Security.
The Division of Employment Security (DES) is created within
the Department of Commerce and shall administer the provisions of this Chapter
under the supervision of the Assistant Secretary of Commerce Commerce.through
two coordinate sections: the Employment Security Section and the Employment
Insurance Section. The Employment Security Section shall administer the
employment services functions of the Division. The Employment Insurance Section
shall administer the unemployment taxation and assessment functions of the
Division."
SECTION 1.5.(b) G.S. 96‑4(j) reads as rewritten:
"(j) Hearings. – The Assistant Secretary shall
appoint hearing officers or appeals referees to hear contested matters arising
from the Employment Security Section and the Employment Insurance Section. Division
of Employment Security. Appeals from the decisions of the hearing officers
or appeals referees shall be heard by the Board of Review."
SECTION 1.5.(c) G.S. 96‑9.15(f) reads as rewritten:
"(f) Domestic Employer Exception. – The Division
may authorize an employer of domestic service employees to file an annual
report and to file that report by telephone. An annual report allowed under
this subsection is due on or before the last day of the month following the
close of the calendar year in which the wages are paid. A domestic service
employer that files a report by telephone must contact either the tax auditor
assigned to the employer's account or the Employment Insurance Section Division
of Employment Security in Raleigh and report the required information to
that auditor or to that section by the date the report is due."
PART II: garnishment and attachment FOR the collection of unpaid UI taxes
SECTION 2.1.(a) G.S. 1‑359 reads as rewritten:
"§ 1‑359. Debtors of judgment debtor may satisfy execution.
(a) After the issuing of an execution against property, all persons indebted to the judgment debtor, or to any one of several debtors in the same judgment, may pay to the sheriff the amount of their debt, or as much thereof as is necessary to satisfy the execution; and the sheriff's receipt is a sufficient discharge for the amount paid.
(b) When the Division of Employment Security of the Department of Commerce (Division) prevails in a civil action against an employer to collect unpaid employment taxes under G.S. 96‑10(b), the Division may attach or garnish the employer's credit card receipts or other third‑party payments in payment of the unpaid taxes in the manner provided by subsection (a) of this section. Direct receipt by the Division is a sufficient discharge for the amount paid by a credit card company, clearinghouse, or third-party payment processor."
SECTION 2.1.(b) G.S. 96‑10(b)(1) reads as rewritten:
"(b) Collection. –
(1) If, after due notice, any employer defaults in any payment of contributions or interest thereon, the amount due shall be collected by civil action in the name of the Division, and the employer adjudged in default shall pay the costs of such action. Civil actions brought under this section to collect contributions or interest thereon from an employer shall be heard by the court at the earliest possible date, and shall be entitled to preference upon the calendar of the court over all other civil actions, except petitions for judicial review under this Chapter and cases arising under the Workers' Compensation Law of this State; or, if any contribution imposed by this Chapter, or any portion thereof, and/or penalties duly provided for the nonpayment thereof shall not be paid within 30 days after the same become due and payable, and after due notice and reasonable opportunity for hearing, the Division, under the hand of the Assistant Secretary, may certify the same to the clerk of the superior court of the county in which the delinquent resides or has property, and additional copies of said certificate for each county in which the Division has reason to believe the delinquent has property located. If the amount of a delinquency is less than fifty dollars ($50.00), the Division may not certify the amount to the clerk of court until a field tax auditor or another representative of the Division personally contacts, or unsuccessfully attempts to personally contact, the delinquent and collect the amount due. A certificate or a copy of a certificate forwarded to the clerk of the superior court shall immediately be docketed and indexed on the cross index of judgments, and from the date of such docketing shall constitute a preferred lien upon any property which said delinquent may own in said county, with the same force and effect as a judgment rendered by the superior court. The Division shall forward a copy of said certificate to the sheriff or sheriffs of such county or counties, or to a duly authorized agent of the Division, and when so forwarded and in the hands of such sheriff or agent of the Division, shall have all the force and effect of an execution issued to such sheriff or agent of the Division by the clerk of the superior court upon a judgment of the superior court duly docketed in said county. Provided, however, the Division may in its discretion withhold the issuance of said certificate or execution to the sheriff or agent of the Division for a period not exceeding 180 days from the date upon which the original certificate is certified to the clerk of superior court. The Division is further authorized and empowered to issue alias copies of said certificate or execution to the sheriff or sheriffs of such county or counties, or to a duly authorized agent of the Division in all cases in which the sheriff or duly authorized agent has returned an execution or certificate unsatisfied; when so issued and in the hands of the sheriff or duly authorized agent of the Division, such alias shall have all the force and effect of an alias execution issued to such sheriff or duly authorized agent of the Division by the clerk of the superior court upon a judgment of the superior court duly docketed in said county. Provided, however, that notwithstanding any provision of this subsection, upon filing one written notice with the Division, the sheriff of any county shall have the sole and exclusive right to serve all executions and make all collections mentioned in this subsection and in such case no agent of the Division shall have the authority to serve any executions or make any collections therein in such county. A return of such execution, or alias execution, shall be made to the Division, together with all moneys collected thereunder, and when such order, execution, or alias is referred to the agent of the Division for service the said agent of the Division shall be vested with all the powers of the sheriff to the extent of serving such order, execution or alias and levying or collecting thereunder. The agent of the Division to whom such order or execution is referred shall give a bond not to exceed three thousand dollars ($3,000) approved by the Division for the faithful performance of such duties. The liability of said agent shall be in the same manner and to the same extent as is now imposed on sheriffs in the service of executions. If any sheriff of this State or any agent of the Division who is charged with the duty of serving executions shall willfully fail, refuse, or neglect to execute any order directed to him by the said Division and within the time provided by law, the official bond of such sheriff or of such agent of the Division shall be liable for the contributions, penalty, interest, and costs due by the employer. Any judgment that is executable and allowed under this section shall be subject to attachment and garnishment under G.S. 1‑359(b) in payment of unpaid taxes that are due from the employer and collectable under this Article."
PART iii: REQUIRE PHOTO IDENTIFICATION TO RECEIVE ui BENEFITS
SECTION 3.1. G.S. 96‑14.9 reads as rewritten:
"§ 96‑14.9. Weekly certification.
(a) Requirements. – An individual's eligibility for a weekly benefit amount is determined on a week‑to‑week basis. An individual must meet all of the requirements of this section for each weekly benefit period. An individual who fails to meet one or more of the requirements is ineligible to receive benefits until the condition causing the ineligibility ceases to exist:
(1) File a claim for benefits.
(2) Report at an employment office as requested
by the Division.Division and present valid photo identification meeting
the requirements of subsection (k) of this section.
(3) Meet the work search requirements of subsection (b) of this section.
…
(k) Photo Identification. – The individual must present the Division one of the following documents bearing the individual's photograph:
(1) A drivers license, learner's permit, provisional license, or nonoperator's identification card issued by North Carolina, another state, the District of Columbia, United States territory, or United States commonwealth.
(2) A United States passport.
(3) A United States military identification card.
(4) A Veterans Identification Card issued by the United States Department of Veterans Affairs.
(5) A tribal enrollment card issued by a federally recognized tribe.
(6) Any other document that the Division determines adequately identifies the individual and that is issued by the United States, any state, the District of Columbia, United States territory, or United States commonwealth."
PART IV: EXTEND DEADLINE FOR ADOPTION OF DIVISION OF EMPLOYMENT SECURITY RULES
SECTION 4.1. Section 1.10(c) of S.L. 2011‑401 reads as rewritten:
"SECTION 1.10.(c) The Department of Commerce,
Division of Employment Security, shall adopt all existing rules and
regulations in accordance with Article 2A of Chapter 150B of the General
Statutes. Any existing rule that has not been readopted by December 31,
2012, April 20, 2015, shall expire."
PART V: set the duration of unemployment benefits based only on unemployment rates
SECTION 5.1.(a) G.S. 96‑14.4 is repealed.
SECTION 5.1.(b) G.S. 96‑14.3 reads as rewritten:
"§ 96‑14.3.
Minimum and maximum duration Duration of benefits.
(a) Duration. – The minimum and
maximum number of weeks an individual is allowed to receive unemployment
benefits depends on the seasonal adjusted statewide unemployment rate that
applies to the six‑month base period in which the claim is filed. One six‑month
base period begins on January 1 and one six‑month base period begins on
July 1. For the base period that begins January 1, the average of the seasonal
adjusted unemployment rates for the State for the preceding months of July,
August, and September applies. For the base period that begins July 1, the
average of the seasonal adjusted unemployment rates for the State for the
preceding months of January, February, and March applies. The Division must use
the most recent seasonal adjusted unemployment rate determined by the U.S.
Department of Labor, Bureau of Labor Statistics, and not the rate as revised in
the annual benchmark. The number of weeks allowed for an individual is
determined in accordance with G.S. 96‑14.4.
Seasonal Adjusted Minimum
Number Maximum Number
Unemployment Rate of
Weeks of Weeks
Less than or equal to 5.5% 5 12
Greater than 5.5% up to 6% 6 13
Greater than 6% up to 6.5% 7 14
Greater than 6.5% up to 7% 8 15
Greater than 7% up to 7.5% 9 16
Greater than 7.5% up to 8% 10 17
Greater than 8% up to 8.5% 11 18
Greater than 8.5% up to 9% 12 19
Greater than 9% 13 20
(b) Total Benefits. – The total benefits paid to an individual equals the individual's weekly benefit amount allowed under G.S. 96‑14.2 multiplied by the number of weeks allowed under subsection (a) of this section."
SECTION 5.1.(c) G.S. 96‑14.12(b) reads as rewritten:
"(b) Duration of Benefits. – This subsection
applies to an individual and the spouse of an individual who is unemployed
based on services performed for a corporation in which the individual held five
percent (5%) or more of the outstanding shares of the voting stock of the
corporation. The maximum number of weeks an individual or an individual's
spouse may receive benefits is limited to the lesser of six weeks or
the applicable weeks determined under G.S. 96‑14.4.weeks."
SECTION 5.1.(d) G.S. 96‑16(f) reads as rewritten:
"(f) (1) A seasonal worker shall be eligible to receive benefits based on seasonal wages only for a week of unemployment which occurs, or the greater part of which occurs within the active period or periods of the seasonal pursuit or pursuits in which he earned base period wages.
(2) A seasonal worker shall be eligible to receive benefits based on nonseasonal wages for any week of unemployment which occurs during any active period or periods of the seasonal pursuit in which he has earned base period wages provided he has exhausted benefits based on seasonal wages. Such worker shall also be eligible to receive benefits based on nonseasonal wages for any week of unemployment which occurs during the inactive period or periods of the seasonal pursuit in which he earned base period wages irrespective as to whether he has exhausted benefits based on seasonal wages.
(3) The maximum amount of benefits which a seasonal
worker shall be eligible to receive based on seasonal wages shall be an amount,
adjusted to the nearest multiple of one dollar ($1.00), determined by
multiplying the maximum benefits payable in his benefit year, as provided in G.S. 96‑14.4,
G.S. 96‑14.3, by the percentage obtained by dividing the
seasonal wages in his base period by all of his base period wages.
(4) The maximum amount of benefits which a seasonal
worker shall be eligible to receive based on nonseasonal wages shall be an
amount, adjusted to the nearest multiple of one dollar ($1.00), determined by
multiplying the maximum benefits payable in his benefit year, as provided in G.S. 96‑14.4,
G.S. 96‑14.3, by the percentage obtained by dividing the
nonseasonal wages in his base period by all of his base period wages.
(5) In no case shall a seasonal worker be eligible to
receive a total amount of benefits in a benefit year in excess of the maximum
benefits payable for such benefit year, as provided in G.S. 96‑14.4.G.S. 96‑14.3."
SECTION 5.1.(e) This section becomes effective July 1, 2015. Changes made by this section to unemployment benefits apply to claims for benefits filed on or after July 1, 2015.
PART VI: effective date
SECTION 6.1. Except as otherwise provided, this act is effective when it becomes law.
