GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

S                                                                                                                                                    D

SENATE BILL DRS15152-TMx-7   (03/17)

 

 

 

Short Title:      UI for High Unemployment Areas/State Funding.		(Public)
Sponsors:	Senators Clark and Ford (Primary Sponsors).
Referred to:

 

A BILL TO BE ENTITLED

AN ACT to raise the minimum number of weeks of UNEMPLOYMENT insurance benefits, modify the calculation for determining the duration of benefits to account for REGIonal variation in the unemployment rate, and provide state funding for unemployment benefits when EMPLOYERS are subject to a surtax.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 96‑14.3 reads as rewritten:

"§ 96‑14.3.  Duration of benefits.

(a)        Duration. – The number of weeks an individual is allowed to receive unemployment benefits depends on the seasonal adjusted statewide average of the modified MSA unemployment raterates, as calculated under subsection (c) of this section, that appliesapply 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 modified MSA 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 modified MSA 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 following table lists the number of weeks allowed based on the average of the modified MSA unemployment rates applicable to the base period:

Seasonal Adjusted                                  Number

Modified MSA                                       Number

Unemployment Rate                               of Weeks

Less than or equal to 5.5%                           12

Greater than 5.5% up to 6%                         13

Greater than 6% up to 6.5%                         14

Greater than 6.5% up to 7%                         15

Greater than 7% up to 7.5%                         16

Less than or equal to 7.5%                           16

Greater than 7.5% up to 8%                         17

Greater than 8% up to 8.5%                         18

Greater than 8.5% up to 9%                         19

Greater than 9%                                           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.

(c)        Modified MSA Unemployment Rate. – The modified MSA unemployment rate equals the mean of the MSA unemployment rates modified by adding one standard deviation. The standard deviation equals the mean of the difference between each of the MSA unemployment rates and the mean of all the MSA unemployment rates. For the purposes of this section, "MSA Unemployment Rates" means the seasonally adjusted, unemployment rate estimates for the metropolitan areas in the State as released by the U.S. Department of Labor, Bureau of Labor Statistics, prior to the beginning of the base period."

SECTION 2.  Article 2 of Chapter 96 of the General Statutes is amended by adding a new section to read:

"§ 96‑9.9.  State Contribution to Unemployment Insurance Fund.

When the surtax imposed by G.S. 96‑9.7 applies, the Secretary must notify the State Treasurer of the quarterly collections of the surtax on each of March 1, June 1, September 1, and December 1. An amount equal to ten percent (10%) of the quarterly collections is appropriated from the General Fund to the Unemployment Insurance Fund. The State Treasurer must transfer the appropriated amount to the Unemployment Insurance Fund."

SECTION 3.  This act becomes effective July 1, 2017, applies to claims for benefits filed on or after that date, and applies to tax calculations on or after that date.