GENERAL ASSEMBLY OF NORTH CAROLINA
EXTRA SESSION 1991
The General Assembly of North Carolina enacts:
Section 1. G.S. 96-5(f) reads as rewritten:
"(f) Employment Security Commission Reserve Fund. –
There is created in the State treasury a special trust fund, separate and apart
from all other public moneys or funds of this State, to be known as the
Employment Security Commission Reserve Fund, hereinafter 'Reserve Fund'.
as provided herein and in G.S. 96-9(b)(3)j, all Part of the proceeds
from the tax as defined on contributions imposed in G.S. 96-9(b)(3)j
and collected pursuant to G.S. 96-10 shall be paid into credited
to the Reserve Fund. Fund, as specified in that statute. The
moneys in the Reserve Fund may be used by the Commission for loans to the
Unemployment Insurance Fund, as security for loans from the federal
Unemployment Insurance Trust Fund, and to pay any interest required on advances
under Title XII of the Social Security Act as required by G.S. 96-6(f), Act,
and shall be continuously available to the Commission for expenditure in
accordance with the provisions of this section. The State Treasurer shall be
ex officio the treasurer and custodian and shall invest said moneys in
accordance with existing law as well as rules and regulations promulgated
pursuant thereto. Furthermore, the State Treasurer shall disburse the moneys
in accordance with the directions of the Commission and in accordance with such
regulations as the Commission may prescribe.
Administrative costs for the collection of the tax and
interest payable to the Reserve Fund shall be borne by the Special Employment Security
Refunds of interest and tax allowable under G.S.
96-9(b)(3)j shall be made from the Reserve Fund. No taxes shall be collected
or paid into this fund during a calendar year when, as of the computation date
(August 1) of the preceding calendar year, the balance of the fund equals to or
exceeds one percent (1%) of the taxable wages.
The interest earned from investment of the Reserve Fund moneys shall be deposited in a fund hereby established in the State Treasurer's Office, to be known as the 'Worker Training Trust Fund'. These moneys shall be used to:
(1) Fund programs, specifically for the benefit of unemployed workers or workers who have received notice of long-term layoff or permanent unemployment, which will enhance the employability of workers, including, but not limited to, adult basic education, adult high school or equivalency programs, occupational skills training programs, assessment, job counseling and placement programs;
(2) Continue operation of local Employment Security Commission offices throughout the State; or
(3) Provide refunds to employers.
The use of funds from the Worker Training Trust Fund, for the
purposes set out in the above paragraph, shall be pursuant to appropriations in
the Current Operations Appropriations Act.
Funds deposited in the Worker
Training Trust Fund prior to July 1, 1987, shall be used as provided in the
Current Operations Appropriations Act for 1987-89. Funds appropriated from
the Worker Training Trust Fund that are unexpended and unencumbered at the end
of the fiscal year for which they are appropriated shall revert to the State
treasury to the credit of the Worker Training Trust Fund in accordance with
Sec. 2. G.S. 96-9(b)(3)j. reads as rewritten:
Effective January 1, 1987, a A tax
shall be and is hereby imposed upon the contributions and
shall be at the rate of twenty percent (20%) of the amount of
contributions due. The tax is due and payable at the time and in the same
manner as the contributions. For each quarter during calendar year 1987 and
each calendar year thereafter, if The tax does not apply in a calendar
year if, as of August 1 of the preceding year, the amount in the Reserve
Fund is less than one percent (1%) of the taxable wages as determined on the
computation date (August 1) of the preceding calendar year, the standard
beginning tax rate and the tax rate assigned to any employer subject to either
the experience rating formula table in G.S. 96-9(b)(3)d or the rate schedule
for Overdrawn Accounts in G.S. 96-9(b)(3)e shall be twenty percent (20%) of the
contributions due and payable. equals or exceeds one hundred sixty-three
million three hundred forty-nine thousand dollars ($163,349,000), which is one
percent (1%) of taxable wages for calendar year 1984. The collection of
this tax, the assessment of interest and penalty penalties on
unpaid taxes, the filing of judgment liens, and the enforcement
of said the liens for unpaid taxes shall be is governed
by the provisions of G.S. 96-10 where applicable. Taxes collected under
this subpart shall be credited to the Employment Security Commission Reserve
Fund, and refunds of the taxes shall be paid from the same Fund. Any
interest and or penalties collected pursuant to this
subsection on unpaid taxes shall be paid into credited to the
Special Employment Security Administration Fund, and any interest or penalties
refunded under this subsection on taxes imposed by this subpart shall
be paid from the same Fund. out of the Special Employment Security
Administration Fund. Except as to taxes unpaid on the date on which they are
due and payable, this tax shall not be collectible for any calendar year, if,
as of the computation date (August 1) of the preceding year, the balance of the
Employment Security Commission Reserve Fund equals to or exceeds one percent
(1%) of the taxable wages."
Sec. 3. This act is effective for taxes imposed for calendar years beginning on or after January 1, 1992. This act does not affect the date set in G.S. 96-9(c)(3) by which an employer must file an application for review or redetermination of the employer's rate of contributions for the 1992 calendar year.
In the General Assembly read three times and ratified this the 24th day of January, 1992.
James C. Gardner
President of the Senate
Daniel Blue, Jr.
Speaker of the House of Representatives