ASSEMBLY, No. 121

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblyman JONES

 

 

An Act concerning the catastrophic illness in children relief fund program and amending P.L.1987, c.370.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 10 of P.L.1987, c.370 (C.26:2-157) is amended to read as follows:

    10. For the purpose of providing the moneys necessary to establish and meet the purposes of the fund, the commission shall establish a $1.00 annual surcharge per employee for all employers who are subject to the New Jersey "Unemployment Compensation Law," R.S.43:21-1 et seq. The surcharge shall be collected by the controller for the New Jersey Unemployment Compensation Fund and paid over to the State Treasurer for deposit in the fund [annually] as provided by the commission.

(cf. P.L.1987, c.370, s.10)

 

    2. Section 11 of P.L.1987, c.370 (C.26:2-158) is amended to read as follows:

    11. The State Treasurer, after consultation with the controller for the New Jersey Unemployment Compensation Fund, shall adopt rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) establishing procedures for the collection of the surcharge. In the establishment of these procedures, the State Treasurer shall consider and may adopt methods of surcharge collection which are designed to minimize any adverse economic impact on small businesses.

(cf. P.L.1987, c.370, s.11)

 

    3. This act shall take effect immediately.


STATEMENT

 

    Under current law, all employers that are subject to the New Jersey "Unemployment Compensation Law," R.S.43:21-1 et seq., are annually assessed a $1 per employee surcharge which is collected by the controller for the New Jersey Unemployment Compensation Fund and submitted to the State Treasurer for deposit in the catastrophic illness in children relief fund" (C.26:2-150). This manner of surcharge collection has placed an economic and administrative burden on small firms since the actual assessments are sometimes minimal.

    In an effort to address the need for a collection procedure which is more cost efficient to smaller businesses, this bill amends the law to remove the requirement of annual surcharge collection. Employers will continue to be assessed an annual surcharge. The removal of the annual collection requirement, however, will provide the opportunity for the development of a collection schedule that will allow small businesses to make payments in a cost-effective and economical fashion.

    The bill further amends the law by requiring the State Treasurer to consult with the controller for the New Jersey Unemployment Compensation Fund, in the promulgation of rules and regulations establishing collection procedures. By mandating the input of the controller, the bill provides a means by which the resources and concerns of small businesses can be addressed in the development of collection procedures.

 

 

 

Changes surcharge collection procedure for Catastrophic Illness in Children Relief Fund.