[First Reprint]

SENATE, No. 986

STATE OF NEW JERSEY

INTRODUCED MARCH 18, 1996

By Senators LaROSSA, INVERSO, Littell, Sinagra, Bennett, Bubba, Bassano, Palaia, Cafiero, Kosco, Gormley, Scott, Ciesla, Kyrillos and Matheussen

An Act concerning unemployment insurance benefits and ¹[revising various parts of the statutory law] supplementing chapter 21 of Title 43 of the Revised Statutes¹.

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

    ¹[1. Section 5 of P.L.1970, c.324 (C.43:21-24.11) is amended to read as follows:

    5. For the purposes of the extended benefit program and as used in this act, unless the context clearly requires otherwise:

    a. "Extended benefit period" means a period which

    (1) Begins with the third week after a week for which there is a state "on" indicator; and

    (2) Ends with either of the following weeks, whichever occurs later:

    (a) The third week after the first week for which there is a state "off" indicator; or

    (b) The thirteenth consecutive week of such period; provided, that no extended benefit period may begin by reason of a state "on" indicator before the fourteenth week after the close of a prior extended benefit period which was in effect with respect to this State; and provided further, that no extended benefit period may become effective in this State prior to the effective date of this act.

    b. (Deleted by amendment.)

    c. (Deleted by amendment.)

    d. There is a "state "on' indicator" for this State for a week if [the]:

    (1) The division determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of the respective week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.):

    [(1)] (a) Equaled or exceeded 120% of the average of these rates for the corresponding 13-week period during each of the preceding 2 calendar years, and [equaled or exceeded 4%; provided that], for weeks beginning after September 25, 1982, [the rate] equaled or exceeded 5%; or

    [(2)] (b) With respect to benefits for weeks of unemployment beginning after [March 30, 1977, equaled or exceeded 5%; provided that for weeks beginning after] September 25, 1982, [the rate] equaled or exceeded 6%; or

    (2) With respect to any week of unemployment beginning after June 30, 1996, the average seasonally adjusted rate of total unemployment in the State, as determined by the United States Secretary of Labor for the most recent three-month period for which data for all states are published before the close of that week:

    (a) Equals or exceeds 6.5%; and

    (b) Equals or exceeds 110% of the average seasonally adjusted rate of total unemployment in the State during either of the corresponding three-month periods ending in the two preceding calendar years.

    e. There is a "state "off' indicator" for this State for a week if the division determines, in accordance with the regulations of the United States Secretary of Labor, that for the period consisting of the respective week and the immediately preceding 12 weeks, neither [subparagraph] paragraph (1) or (2) of [paragraph] subsection d. was satisfied.

    f. "Rate of insured unemployment," for purposes of subsections d. and e. means the percentage derived by dividing

    (1) The average weekly number of individuals filing claims for regular benefits in this State for weeks of unemployment with respect to the most recent 13-consecutive-week period, as determined by the division on the basis of its reports to the United States Secretary of Labor, by

    (2) The average monthly covered employment for the specified period.

    g. "Regular benefits" means benefits payable to an individual under the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.) or under any other State law (including benefits payable to Federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than extended benefits.

    h. "Extended benefits" means benefits (including benefits payable to Federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) payable to an individual under the provisions of this act for weeks of unemployment in his eligibility period.

    i. "Eligibility period" of an individual means the period consisting of the weeks in his benefit year which begin in an extended benefit period and, if his benefit year ends within the extended benefit period, any weeks thereafter which begin in the period.

    j. "Exhaustee" means an individual who, with respect to any week of unemployment in his eligibility period:

    (1) Has received prior to the week, all of the regular benefits that were available to him under the [Unemployment Compensation Law] "unemployment compensation law" or any other State law (including dependents' allowances and benefits payable to Federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85) in his current benefit year that includes such week, provided, that for the purposes of this [subparagraph] paragraph, an individual shall be deemed to have received all of the regular benefits that were available to him although as a result of a pending appeal with respect to wages and/or employment that were not considered in the original monetary determination in his benefit year, he may subsequently be determined to be entitled to added regular benefits; or

    (2) His benefit year having expired prior to such week, has no, or insufficient, wages and/or employment on the basis of which he could establish a new benefit year that would include such week; and

    (3) (a) has no right to unemployment benefits or allowances, as the case may be, under the Railroad Unemployment Insurance Act, the Trade Expansion Act of 1962, the Automotive Products Trade Act of 1965 and such other Federal laws as are specified in regulations issued by the United States Secretary of Labor; and

    (b) has not received and is not seeking unemployment benefits under the Unemployment Compensation Law of Canada; but if he is seeking these benefits and the appropriate agency finally determines that he is not entitled to benefits under that law he is considered an exhaustee if the other provisions of this definition are met.

    k. "State law" means the unemployment insurance law of any state approved by the United States Secretary of Labor under section 3304 of the Internal Revenue Code of [1954] 1986, 26 U.S.C. §3304.

    l. "High unemployment period" means any period during which the average seasonally adjusted rate of total unemployment in the State, as determined by the United States Secretary of Labor for the most recent three-month period for which data for all states are published:

    (1) Equals or exceeds 8%; and

    (2) Equals or exceeds 110% of the average seasonally adjusted rate of total unemployment in the State during either of the corresponding three-month periods ending in the two preceding calendar years.

(cf: P.L.1982, c.144, s.1)]¹

    ¹[2. Section 9 of P.L.1970, c.324 (C.43:21-24.15) is amended to read as follows:

    9. [The] a. Except as provided in subsection b. of this section, the total extended benefit amount payable to any eligible individual with respect to his applicable benefit year shall be the lesser of the following amounts:

    [a.] (1) 50% of the total of regular benefits which were payable to him under the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.) in his applicable benefit year; or

    [b.] (2) thirteen times his weekly benefit amount which was payable to him under the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.) for a week of total unemployment in the applicable benefit year.

    b. With respect to weeks beginning during a high unemployment period, the total extended benefit amount payable to an eligible individual with respect to his applicable benefit year shall be the lesser of the following amounts:

    (1) 80% of the total of regular benefits which were payable to the individual under the "unemployment compensation law" (R.S.43:21-1 et seq.) during the applicable benefit year; or

    (2) Twenty times the weekly benefit amount which was payable to the individual under the "unemployment compensation law" (R.S.43:21-1 et seq.) for a week of total unemployment during the applicable benefit year.

    c. Notwithstanding any other provisions of the [Unemployment Compensation Law] "unemployment compensation law" (R.S.43:21-1 et seq.), if the benefit year of an adversely affected worker covered by a certification under subchapter A, chapter 2, Title II of the Trade Act of 1974, P.L.93-618, 5 U.S.C.5312 et seq. as amended, ends within an extended benefit period, the remaining balance of extended benefits that the individual would, but for this section, be entitled to receive in that extended benefit period, with respect to weeks of unemployment beginning after the end of the benefit year, shall be reduced (but not below zero) by the product of the number of weeks for which the individual received any amounts as trade readjustment allowances within that benefit year, multiplied by the individual's weekly benefit amount for extended benefits.

(cf: P.L.1982, c.144, s.3)]¹

    ¹[3. (New Section)] 1.¹ For the purposes of the Emergency Unemployment Benefits Program and as used in ¹[Sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act:

    "Emergency unemployment benefits" means benefits financed entirely by the State and paid to exhaustees pursuant to ¹[Sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act.

    "Emergency unemployment benefit period" means a period not within an extended benefit period which:

    a. Begins on ¹[March 3, 1996] April 1, 1996 ¹, and

    b. Ends upon the conclusion of the second week after the first week for which there is a State "on" indicator as defined in section 5 of P.L.1970, c.324 (C.43:21-24.11) or other federally-financed supplemental benefits program, or

    c. If there is no such "on" indicator, ends with the occurrence of either of the following:

    (1) The third week after the first week for which there is a State emergency unemployment benefits "off" indicator; or

    (2) The calendar week after the calendar week in which total expenditures of emergency unemployment compensation fund Statewide first exceed $250 million.

    There is a State emergency unemployment benefits "off" indicator for any week in which it is determined by the division based on data reported by the U.S. Bureau of Labor Statistics that, for the prior four calendar months, the average total unemployment rate (seasonally adjusted) in this State is less than 6.0 percent.

    Notwithstanding any other provision of this subsection c., no emergency unemployment benefits shall be paid after ¹[September] October¹ 1, 1996, except that emergency benefits shall be paid to individuals who established emergency unemployment claims prior to that date. No emergency unemployment benefits shall be paid to any individual after December 8, 1996.

    "Eligibility period" of an exhaustee means the period consisting of the weeks in the exhaustee's benefit year which begin in an emergency unemployment benefit period and, if that benefit year ends in the emergency unemployment benefit period, any weeks thereafter which begin in the period.

    "Exhaustee" means an individual who exhausted all of the regular benefits that were available to the individual pursuant to the "unemployment compensation law," R.S.43:21-1 et seq., (including benefits payable to federal civilian employees and ex-service persons or payable under the combined wage program), after ¹[September] October¹ 2, 1995 and before ¹[March 3,] April 1,¹ 1996, or during any calendar week of the emergency unemployment benefit period. No individual who exhausted all of the available regular benefits prior to ¹[September] October¹ 3, 1995 shall be eligible for emergency unemployment benefits. An individual whose benefit year has expired prior to the beginning of the emergency unemployment benefit period shall not be eligible for such benefits.

    ¹[4. (New section)] 2.¹ During an emergency unemployment benefit period exhaustees, who otherwise continue to meet the eligibility requirements for regular benefits pursuant to the provisions of the "unemployment compensation law," R.S.43:21-1 et seq., and who are not eligible for any other unemployment benefits, including benefits provided for by any federal law extending benefits beyond those provided for as regular benefits or extended benefits, may receive weekly emergency unemployment benefits for weeks subsequent to ¹[March 3,] April l,¹ 1996 in an amount equal to the weekly benefit amount of the individual's most recent regular unemployment benefit claim subject to the provisions of the "unemployment compensation law," R.S.43:21-1 et seq. The maximum emergency unemployment benefits an individual may receive pursuant to ¹[Sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act is 25 percent of the regular unemployment benefits which were payable to the individual pursuant to the "unemployment compensation law," R.S.43:21-1 et seq., (including benefits payable to federal civilian employees and ex-service persons or payable under the combined wage program) in the individual's applicable benefit year.

    ¹[5. (New section)] 3.¹ No employer's account shall be charged for emergency unemployment benefits paid to an unemployed individual pursuant to ¹[sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act, except for the account of an out-of -State employer who is liable for charges under the Combined Wage Program. However, nothing in this section shall be construed to relieve employers electing to make payments in lieu of contributions pursuant to section 3 or 4 of P.L.1971, c.346 (C.43:21-7.2 or C.43:21-7.3) from reimbursing the unemployment benefits paid to an unemployed individual pursuant to ¹[sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act.

    Emergency unemployment benefits paid to federal civilian employees shall be charged to the appropriate federal account. Emergency unemployment benefits paid to ex-service persons shall be charged to the General Fund.

    ¹[6. (New section)] 4.¹ Emergency unemployment benefits may be paid pursuant to the provisions of ¹[sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act only with respect to weeks not within an extended benefit period, and not within a period covered by any federal law allowing the filing of new claims extending benefits beyond those provided for as regular or extended benefits. If a federal extended benefits period triggers "on" , maximum benefits payable to an individual under the federal extended benefits program or any federal supplemental benefits program shall be reduced by an amount equal to that received by the individual under the emergency unemployment benefits program.

    ¹[7. (New section)] 5.¹ Notwithstanding the provisions of any other law, the division shall use appropriate administrative means to insure that emergency unemployment benefits are paid only to individuals who meet the requirements of ¹[sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act. These administrative actions may include, but shall not be limited to, the following procedure. The division shall match the claimant's social security number against available wage records to insure that no earnings were reported for that claimant by employers under R.S.43:21-14 for periods in which emergency unemployment benefits were paid.

    ¹[8. (New section)] 6.¹ No exhaustee shall receive benefits pursuant to ¹[sections 3 through 8 of]¹ this ¹[1996 amendatory and supplementary]¹ act during the portion of the emergency unemployment benefit period which occurs prior to the effective date of this ¹[1996 amendatory and supplementory]¹ act unless the exhaustee submits to the division a signed written statement, on a form approved by the division, that the exhaustee was actively seeking work during that portion of the benefit period and was otherwise eligible for the benefits.

    ¹[9.] 7.¹ This act shall take effect immediately.

Concerns extended UI benefits.