NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 673

HOUSE BILL 942

 

 

AN ACT TO AMEND CHAPTER 96, GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED, KNOWN AS THE EMPLOYMENT SECURITY LAW.

 

The General Assembly of North Carolina do enact:

 

Section 1.  That Article 1, Chapter 96, Section 96-4(l)(1), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C be and the same is hereby amended by striking out subparagraphs. b., c, g., h., and j., relettering subparagraph i. to g., and inserting in lieu of subparagraph. b. and c. the following:

"b.        Combining wage credits. — The Commission shall participate in any arrangements for the payment of compensation on the basis of combining an individual's wages and employment covered under this chapter with his wages and employment covered under one or more laws of the Federal Government and the unemployment compensation laws of other states which are approved by the United States Secretary of Labor in consultation with the state unemployment compensation agencies as reasonably calculated to assure the prompt and full payment of compensation in such situations and which include provisions for (1) applying the base period of a single state law to a claim involving the combining of an individual's wages and employment covered under two or more state unemployment compensations laws, and (2) avoiding the duplicate use of wages and employment by reason of such combining.

c.         The services of the Commission as agent may be made available to other states in taking interstate claims for such states."

Sec. 2.  That Article 1, Chapter 96, Section 96-4(l)(2), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out the words "paragraph c." in the first line of paragraph (2) and inserting in lieu thereof the following: "subparagraphs. b. and c".

Sec. 3.  That Article 1, Chapter 96, Section 96-6(a), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding thereto new paragraphs (6) and (7) to read as follows:

"(6)      All moneys paid to this State pursuant to Section 204 of the Federal-State Extended Unemployment Compensation Act of 1970.

(7)        Reimbursement payments in lieu of contributions."

Sec. 4.  That Article 1, Chapter 96, Section 96-6(c), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding after the word "benefits" in the second line and before the word "and" the following: "(including extended benefits)".

Sec. 5.  That Article 2, Chapter 96, Section 96-8(5)a., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out subsection (5)a., and inserting in lieu thereof the following:

"a.        Prior to January 1, 1972, any employing unit which within the current or preceding calendar year and which in each of 20 different weeks within such calendar year (whether or not such weeks are or were consecutive) has or had in employment four or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week). With respect to employment on and after January 1, 1972, 'employer' means any employing unit which (a) within the current or preceding calendar year, and which for some portion of a day in each of 20 different calendar weeks within such calendar year (whether or not such weeks are or were consecutive), has or had in employment one or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week); or (b) in any calendar quarter in either the current or preceding calendar year paid for service in employment wages of one thousand five hundred dollars ($1,500) or more. Provided further, for the purpose of this paragraph, 'employment' shall include services which would constitute 'employment' but for the fact that such services are deemed to be performed entirely within another state pursuant to an election under an arrangement entered into by the Commission pursuant to subsection (1) of Section 96-4, and an agency charged with the administration of any other state or federal employment security law. Provided further, for the purpose of this paragraph, 'week' means a period of seven consecutive calendar days, and when a calendar week falls partly within each of two calendar years, the days of that week up to January 1 shall be deemed one calendar week, and the days beginning January 1 another such week."

Sec. 6.  That Article 2, Chapter 96-8(5)f., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by adding in the seventh line after the word "Fund;" and prior to the word "provided" the following: "or which, as a condition for approval of this act for full tax credit against the tax imposed by the Federal Unemployment Tax Act, is required, pursuant to such act, to be an 'employer' under this act; or any employing unit required to be covered by the Federal Unemployment Tax Act;".

Sec. 7.  That Article 2, Chapter 96, Section 96-8(5)g., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out paragraph g. and inserting in lieu thereof the following:

"g.        Prior to January 1, 1972, any employing unit with its principal place of business located outside of the State of North Carolina, which engaged in business within the State of North Carolina, and which, during any period of 12 consecutive months, has in employment four or more individuals in as many as 20 different weeks shall be deemed to be an employer and subject to the other provisions of this chapter; provided that on and after January 1, 1972, such employing unit has in employment one or more individuals for some portion of a day in as many as 20 different calendar weeks in any period of 12 consecutive months or has had in employment and paid for service wages in any quarter in 12 consecutive calendar months in the amount of one thousand five hundred dollars ($1,500) or more shall be deemed to be an employer subject to the other provisions of this chapter."

Sec. 8.  That Article 2, Chapter 96, Section 96-8(5), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by adding thereto new paragraphs j., k., and 1. to read as follows:

"j.         Notwithstanding any other provision of this chapter, and on and after January 1, 1972, 'employer' means any institution of higher education or state hospital located in this State which is an agency or instrumentality of this State, or which is owned or operated by the State or an instrumentality of this State (or by this State and one or more states or their instrumentalities), provided such employing unit, in each of 20 different calendar weeks within the current or preceding calendar year (whether or not such weeks are or were consecutive) has or had in employment one or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week), or in any calendar quarter in either the current or preceding calendar year paid for services in employment wages of one thousand five hundred dollars ($1,500) or more. Provided further, for the purposes of this section, schools which are not institutions of higher education are exempt.

k.         Notwithstanding any other provision of this chapter, and on and after January 1, 1972, 'employer' means any nonprofit organization or a group of organizations(hereafter, where the words 'nonprofit organization' are used in this chapter, it shall include a group of nonprofit organizations), corporations, any community chest, fund, or foundation which are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals as set out in Section 501(c)(3) of the Internal Revenue Code of 1954, that are exempt from income tax under Section 501(a) of the Internal Revenue Code of 1954, provided such employing unit for some portion of a day in each of 20 different calendar weeks within the current or preceding calendar year (whether or not such weeks are or were consecutive) has or had in employment four or more individuals (not necessarily simultaneously and irrespective of whether the same individuals are or were employed in each such week).

l.          For the purposes of paragraphs j. and k., 'institution of higher education' means an educational institution in this State which (a) admits as regular students only individuals having a certificate of graduation from a high school or the recognized equivalent of such certificate; (b) is legally authorized in this State to provide a program of education beyond high school; (c) provides an educational program for which it awards a bachelor's or higher degree, or provides a program which is acceptable for full credit toward such a degree or a program of training to prepare students for gainful employment in a recognized occupation; (d) is a public or other nonprofit institution; and (e) notwithstanding any of the foregoing provisions of this subsection, all universities, colleges, community colleges, and technical institutes in this State are institutions of higher education for the purposes of this section.

For the purposes of these paragraphs, 'hospital' means an institution licensed by the State Department of Mental Health as authorized under Chapter 122 of the General Statutes of North Carolina, and an institution licensed by the North Carolina Medical Care Commission as authorized under Chapter 131 of the General Statutes of North Carolina."

Sec. 9.  That Article 2, Chapter 96, Section 96-8(6), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding to paragraph. b. the following subparagraph 3:

"3.        The service, wherever performed, is within the United States, the Virgin Islands or Canada; such service is not covered under the unemployment compensation law of any other state, the Virgin Islands or Canada; and the place from which the service is directed or controlled is in this State."

Sec. 10.  That Article 2, Chapter 96, Section 96-8(6)f., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding a new subparagraph 5. to read as follows:

"5.        Notwithstanding any other provision of this chapter, 'employment' shall include on and after January 1, 1972, any individual who performs services irrespective of whether the master-servant relationship exists, for remuneration for any employing unit:

(a)        as an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages (other than milk) or laundry or dry-cleaning services, for his principal;

(b)        as a traveling or city salesman, other than as an agent-driver or commission- driver, engaged upon a full-time basis in the solicitation on behalf of, and the transmission to, his principal (except for side-line sales activities on behalf of some person) of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies for use in their business operations if the contract of services contemplates that substantially all of such services are to be performed personally by such individual; except that an individual shall not be included in the term 'employment' under the provisions of this subsection if such individual has a substantial investment in facilities used in connection with the performance of such services (other than in facilities for transportation), or if the services are in the nature of a single transaction not part of a continuing relationship with the employing unit for whom the services are performed."

Sec. 11.  That Article 2, Chapter 96, Section 96-8(6)f., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding a new subparagraph 6. to read as follows:

"6.        Service of an individual who is a citizen of the United States, performed outside of the United States (except in Canada or the Virgin Islands), after December 31, 1971, in the employ of an American employer (other than service which is deemed 'employment' under the provisions of paragraphs (b) or (e) of this subsection or the parallel provisions of another state's law), if:

(i)         the employer's principal place of business in the United States is located in this State; or

(ii)        the employer has no place of business in the United States, but

(I)        the employer is an individual who is a resident of this State; or

(II)       the employer is a corporation which is organized under the laws of this State; or

(III)      the employer is a partnership or a trust and the number of the partners or trustees who are residents of this State is greater than the number who are residents of any one other State; or

(iii)       none of the criteria of divisions (i) and (ii) of this subparagraph is met but the employer has elected coverage in this State, or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service, under the law of this State.

(iv)       an 'American employer,' for the purposes of this paragraph, means a person who is:

(I)        an individual who is a resident of the United States; or

(II)       a partnership if two-thirds or more of the partners are residents of the United States; or

(III)      a trust, if all of the trustees are residents of the United States; or

(IV)      a corporation organized under the laws of the United States or of any state.

(V)       for the purposes of this subparagraph, United States includes all the states, the District of Columbia, and the Commonwealth of Puerto Rico."

Sec. 12.  That Article 2, Chapter 96, Section 96-8(6)g., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out paragraph g. and inserting in lieu thereof the following:

"g.        The term 'employment' shall not include:

1.         Services performed in the employ of this State, or of any political subdivision thereof, or any instrumentality of this State or its political subdivisions except from and after January 1, 1972, services performed for employers as defined in G.S.96‑8(5)j., and G.S. 96-11(c)(3), and except as otherwise provided in this chapter.

2.         Except with respect to service performed for an employer as defined in G.S. 96-8(5)j., service performed in the employ of any other state or its political subdivisions, or of the United States government, or of an instrumentality of any other state or states or their political subdivisions or of the United States. From and after March 10, 1941, service performed in the employ of the United States government or an instrumentality of the United States exempt under the Constitution of the United States from the contributions imposed by this chapter, except that to the extent that the Congress of the United States shall permit states to require any instrumentalities of the United States to make payments into an unemployment fund under a state employment security law, all of the provisions of this chapter shall be applicable to such instrumentalities, and to services performed for such instrumentalities, in the same manner, to the same extent and on the same terms as to all other employers, employing units, individuals and services: Provided, that if this State shall not be certified for any year by the Secretary of Labor under section 3304 of the Federal Internal Revenue Code of 1954, the payments required of such instrumentalities with respect to such year shall be refunded by the Commission from the fund in the same manner and within the same period as is provided in G.S. 96‑10(e) with respect to contributions erroneously collected.

3.         Service with respect to which unemployment insurance is payable under an employment security system established by an act of Congress: Provided, that the Commission is hereby authorized and directed to enter into agreements with the proper agencies under such act of Congress, which agreements shall become effective ten days after publication thereof in the manner provided in G.S. 96-4(b) for general rules, to provide reciprocal treatment to individuals who have, after acquiring potential rights to benefits under this chapter, acquired rights to unemployment insurance under act of Congress, or who have, after acquiring potential rights to unemployment insurance, under such act of Congress, acquired rights to benefits under this chapter.

4.         Agricultural Labor. — Prior to January 1, 1972, for the purposes of this chapter, the term 'agricultural labor' includes all services performed: (i) on a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife; (ii) in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm; (iii) in connection with the production or harvesting of maple sirup or maple sugar or any commodity defined as an agricultural commodity in section 15(g) of the Agricultural Marketing Act, as amended. (46 Stat. 1550, sec. 3, 12 U.S.C. 1141j), or in connection with the raising or harvesting of mushrooms, or in connection with the hatching of poultry, or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways used exclusively for supplying and storing water for farming purposes; or (iv) in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, any agricultural or horticultural commodity, but only if such service is performed as an incident to ordinary farming operations or, in the case of fruits and vegetables, as an incident to the preparation of such fruits or vegetables for market. The provisions of this subparagraph shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption.

As used in this subparagraph, the term 'farm' includes stock, dairy, poultry, fruit, furbearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities and orchards.

Provided, on and after January 1, 1972, for the purposes of this chapter, the term 'agricultural labor' includes all services performed: (1) on a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife; (2) in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm; (3) in connection with the production or harvesting of crude gum (oleoresin) from a living tree, and the following products if processed by the original producer of crude gum from which derived; gum spirits of turpentine and gum resin, or in connection with the ginning of cotton or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes; or (4) (A) in the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity, but only if such operator produced more than one-half of the commodity with respect to which such service is performed; (B) in the employ of a group of operators of farms (or a cooperative organization of which such operators are members) in performance of service described in subparagraph (A), but only if such operators produced more than one-half of the commodity with respect to which such service is performed. (C) The provisions of subparagraphs (A) and (B) shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption; (D) on a farm operated for profit if such service is not in the course of the employer's trade or business or is domestic service in a private home of the employer. As used in this subsection, the term 'farm' includes stock, dairy, poultry, fruit, furbearing animal, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.

5.         Domestic service in a private home, local college club, or local chapter of a college fraternity or sorority;

6.         Service performed on or in connection with a vessel or aircraft not an American vessel or American aircraft by an individual if the individual is performing services on and in connection with such vessel or aircraft when outside the United States; or, service performed by an individual in (or as an officer or member of the crew of a vessel while it is engaged in) the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, Crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life (including service performed by such individual as an ordinary incident to any such activity), except (r) service performed in connection with the catching or taking of salmon or halibut, for commercial purposes, and (ii) service performed on or in connection with a vessel of more than ten net tons(determined in the manner provided for determining the registered tonnage of merchant vessels under the laws of the United States).

7.         Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one in the employ of his father or mother; 8. Service performed prior to January 1, 1972, shall not include service performed in the employ of a corporation, community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual and which is exempt from income tax under section 501 (a), Internal Revenue Code of 1954.

9.         Service performed on and after March 10, 1941, by an individual for an employing unit or an employer as an insurance agent or as an insurance solicitor or as a securities salesman if all such service performed by such individual for such employing unit or employer is performed for remuneration solely by way of commission; and service performed on and after January 1, 1959, by an individual during any calendar quarter for an employing unit or an employer as an insurance agent or as an insurance solicitor, or as a securities salesman, if all such service performed during such calendar quarter by such individual for such employing unit or employer is performed for remuneration solely by way of commission; services performed after July 1, 1957, by an individual for an employing unit as a real estate agent or real estate salesman, provided, that such real estate agent or salesman is compensated solely by way of commission.

10.       Services performed in employment as a newsboy, selling or distributing newspapers or magazines on the street or from house to house.

11.       Except as provided in paragraph a. of subdivision (5) of this section, service covered by an election duly approved by the agency charged with the administration of any other state or federal employment security law in accordance with an arrangement pursuant to subsection (1) of G.S. 96-4 during the effective period of such election.

12.       Notwithstanding any of the other provisions of this subsection, services shall be deemed to be in employment if with respect to such services a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment insurance fund, or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act is required to be covered under this act.

13.       Casual labor not in the course of the employing unit's trade or business.

14.       Service performed after December 31, 1961, in any calendar quarter in the employ of any organization exempt from income tax under the provisions of section 501 (a) of the Internal Revenue Code of 1954 (other than an organization described in section 401 (a) of said Internal Revenue Code of 1954) or under section 521 of the Internal Revenue Code of 1954, if the remuneration for such service is less than fifty dollars ($50.00).

15.       Service performed after December 31, 1971, in the employ of a school, college, or university, if such service is performed (i) by a student who is enrolled and is regularly attending classes at such school, college, or university, or (ii) by the spouse of such a student, if such spouse is advised, at the time such spouse commences to perform such service, that (I) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college, or university, and (II) such employment will not be covered by any program of unemployment insurance.

16.       Service performed by an individual under the age of 22 who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, which combines academic instruction with work experience, if such service is an integral part of such program, and such institution has so certified to the employer, except that this subparagraph shall not apply to service performed in a program established for or on behalf of an employer or group of employers;

17.       For the purposes of paragraphs j. and k., the term 'employment' does not apply to services performed (i) in the employ of a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church or convention or association of churches; or (ii) by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or (iii) in the employ of a school which is not an institution of higher education; or (iv) in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market by an individual receiving such rehabilitation or remunerative work; or (v) as a part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof, by an individual receiving such work relief or work training. Service performed after December 31, 1971, by an inmate for a hospital in a State prison or other State correctional institution or by a patient in any other State- operated hospital, and services performed by patients in a hospital operated by a nonprofit organization shall be exempt.

18.       Service performed after December 31, 1971, in the employ of a hospital, if such service is performed by a patient of such hospital.

Sec. 13.  That Article 2, Chapter 96, Section 96-8(17)a. and b., General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out in paragraph a. in line 17 "G.S. 96-12(b)(4)," and in paragraph b. in line 16 "G.S. 96-12(b)(4)" and inserting in lieu thereof the following:

In paragraph a. — "G.S. 96-12 (b)(3)"; and in paragraph b. — "G.S. 96-12(b)(3)".

Sec. 14.  That Article 2, Chapter 96, Section 96-9, General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding the phrase:

"Except as provided in subsection (d) hereof," at the beginning of each of the following paragraphs: (1) of subsection (a); (1) of subsection (b); and (1) of subsection(c).

Sec. 15.  That Article 2, Chapter 96, Section 96-9(a), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out paragraph (3) and inserting in lieu thereof the following:

"(3)      Benefits paid employees of this State shall be financed and administered in accordance with the provisions and conditions of Section 96-9(d) required for nonprofit organizations; except as provided by suitable regulations which may be adopted by the Commission. The Department of Administration shall make an election with respect to financing all such benefits."

Sec. 16.  That Article 2, Chapter 96, Section 96-9(a), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding paragraph (4) as follows:

"(4)      Benefits paid employees of political subdivisions of this State as defined in Section 96-11(c)(3) shall be financed and administered on a reimbursement basis in accordance with the provisions and conditions of Section 96-9(d).

Sec. 17.  That Article 2, Chapter 96, Section 96-9(a), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by adding paragraph (5) as follows:

"(5)      For the purposes of this section, the term 'wages' shall not include that part of the remuneration which, after remuneration equal to three thousand dollars ($3,000) has become payable or paid to an individual by an employer with respect to employment during the calendar year 1960 and during any year thereafter through the calendar year 1971: Provided that on and after January 1, 1960, for the purpose of this section, the term 'wages' shall not include that part of remuneration in excess of three thousand dollars ($3,000) paid to an individual by an employer during any calendar year prior to 1972 for employment irrespective of the year in which such employment occurred.

On and after January 1, 1960, and prior to January 1, 1972, for the purposes of this section, 'wages' shall not include, and no contributions shall be paid on that part of remuneration earned by an individual in this State, which, when added to wages previously earned by such individual in another state or states, exceeds the sum of three thousand dollars ($3,000), and the employer has paid contributions to such other state or states on the wages earned therein by such individual during the calendar year applicable. This provision shall be applicable only to wages earned by such individual in the employ of one and the same employer.

On and after January 1, 1960, and prior to January 1, 1972, for the purposes of this section, 'wages' shall not include and no contributions shall be paid on that part of remuneration earned by an individual in the employ of a successor employer, which when added to remuneration previously earned by such individual in the employ of the predecessor employer exceeds the sum of three thousand dollars ($3,000) in the. calendar year in which the successor acquired the organization, trade, or business of the predecessor as provided in Section 96-8(5)b.; provided, however, such individual was an employee of the predecessor at the time of the acquisition of the business by the successor and was taken over by the successor as a part of the organization acquired; provided further, that the predecessor employer has paid contributions on the earnings of such individual while in his employ during such year, and the account of the predecessor is transferred to the successor as provided in G.S. 96-9(c)(4)a.

For the purposes of this section, on and after January 1, 1972, the term 'wages' shall not include that part of remuneration which, after remuneration equals to four thousand two hundred dollars ($4,200), has been paid to an individual by an employer with respect to employment during the calendar year 1972 and any year thereafter.

On and after January 1, 1972, for the purposes of this section, 'wages' shall not include, and no contributions shall be paid on that part of remuneration earned by an individual in this State, which, when added to wages previously earned by such individual in another state or states, exceeds the sum of four thousand two hundred dollars ($4,200), and the employer has paid contributions to such other state or states on the wages earned therein by such individual during the calendar year applicable.

This provision shall be applicable only to wages earned by such individual in the employ of one and the same employer.

On and after January 1, 1972, for the purposes of this section, 'wages' shall not include, and no contributions shall be paid on that part of remuneration earned by an individual in the employ of a successor employer, which when added to remuneration previously earned by such individual in the employ of the predecessor employer, exceeds the sum of four thousand two hundred dollars ($4,200), in the calendar year in which the successor acquired the organization, trade, or business of the predecessor as provided in G.S. 96-8(5)b.; provided, however, such individual was an employee of the predecessor and was taken over by the successor as a part of the organization acquired; provided further, that the predecessor employer has paid contributions on the earnings of such individual while in his employ during such year, and the account of the predecessor is transferred to the successor as provided in G.S. 96-9(c)(4)a."

Sec. 18.  That Article 2, Chapter 96, Section 96-9(b)(3)c, General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out the words "year 1970 and thereafter" in line 1 of subparagraph c., and inserting in lieu thereof the following: "years 1970 and 1971".

Sec. 19.  That Article 2, Chapter 96, Section 96-9(b)(3), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out subparagraph d. and inserting in lieu thereof the following:

"d.        The applicable schedule of rates for the calendar year 1972 and thereafter shall be determined by the fund ratio resulting when the total amount available for benefits in the unemployment insurance fund, as of the computation date, August 1, is divided by the total amount of the taxable payroll of all subject employers for the twelve-month period ending June 30 preceding such computation date. Schedule A, B, C, D, E, F, G, H, or I appearing on the line opposite such fund ratio in the table below shall be applicable in determining and assigning each eligible employer's contribution rate for the calendar year immediately following the computation date.

FUND RATIO SCHEDULES

When the Fund Ratio Is:

As Much As                        But Less Than       Applicable Schedule

                                            2.5%                                A

2.5%                                   3.5%                                B

3.5%                                   3.5%                                C

4.5%                                   5.5%                                D

5.5%                                   6.5%                                E

6.5%                                   7.5%                                F

7.5%                                   8.5%                                G

8.5%                                   9.5%                                H

9.5% and in excess thereof                                           I

Variations from the standard rate of contributions shall be determined and assigned with respect to the calendar year 1972 and thereafter, to employers whose accounts have a credit balance and who are eligible therefor according to each such employer's credit reserve ratio, and each such employer shall be assigned the contribution rate appearing in the applicable schedule A, B, C, D, E, F, G, H, or I on the line opposite his credit reserve ratio as set forth in the Experience Rating Formula below:

EXPERIENCE RATING FORMULA

When the Credit Reserve Ratio is:

As Much As But Less Than Rate Schedules (%)

A         B           C           D           E          F          G         H         I

            0.6%     2.7       2.7         2.7         2.7         2.7       2.7       2.7       2.7       2.5

0.6%    0.8%     2.7       2.7         2.7         2.7         2.7       2.7       2.7       2.5       2.3

0.8%    1.0%     2.7       2.7         2.7         2.7         2.7       2.7       2.5       2.3       2.1

1.0%    1.2%     2.7       2.7         2.7         2.7         2.7       2.5       2.3       2.1       1.9

1.2%    1.4%     2.7       2.7         2.7         2.7         2.5       2.3       2.1       1.9       1.7

1.4%    1.6%     2.7       2.7         2.7         2.5         2.3       2.1       1.9       1.7       1.5

1.6%    1.8%     2.7       2.7         2.5         2.3         2.1       1.9       1.7       1.5       1.3

1.8%    2.0%     2.7       2.5         2.3         2.1         1.9       1.7       1.5       1.3       1.1

2.0%    2.2%     2.5       2.3         2.1         1.9         1.7       1.5       1.3       1.1       0.9

2.2%    2.4%     2.3       2.1         1.9         1.7         1.5       1.3       1.1       0.9       0.7

2.4%    2.6%     2.1       1.9         1.7         1.5         1.3       1.1       0.9       0.7       0.5

2.6%    2.8%     1.9       1.7         1.5         1.3         1.1       0.9       0.7       0.5       0.4

2.8%    3.0%     1.7       1.5         1.3         1.1         0.9       0.7       0.5       0.4       0.3

3.0%    3.2%     1.5       1.3         1.1         0.9         0.7       0.5       0.4       0.3       0.2

3.2%    3.4%     1.3       1.1         0.9         0.7         0.5       0.4       0.3       0.2       0.1

3.4%    3.6%     1.1       0.9         0.7         0.5         0.4       0.3       0.2       0.1       0.1

3.6% and in       0.9       0.7         0.5         0.4         0.3       0.2       0.1       0.1       0.1

excess thereof

 

New rates shall be assigned to eligible employers effective January 1, 1972, and each January 1 thereafter in accordance with the foregoing Fund Ratio Schedule and Experience Rating Formula.

Sec. 20.  That Article 2, Chapter 96, Section 96-9, General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by relettering subsection (d) to (e) and adding a new subsection (d) as follows:

"(d)      Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this paragraph. For the purposes of this paragraph, a nonprofit organization is an organization (or group of organizations) described in Section 501(c)(3) of the United States Internal Revenue Code of 1954 which is exempt from income tax under Section 501(a) of said code.

(1)        a.         Any nonprofit organization which becomes subject to this act on or after January 1, 1972, shall pay contributions under the provisions of this act, unless it elects in accordance with this paragraph to pay the Commission for the Unemployment Insurance Fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization, to individuals for weeks of unemployment which begin within a benefit year established during the effective period of such election.

b.         Any nonprofit organization which is or becomes subject to this act on or after January 1, 1972, may elect to become liable for payments in lieu of contributions for a period of not less than four calendar years beginning with the date on which subjectivity begins by filing a written notice of its election with the Commission not later than 30 days immediately following the date of written notification of the determination of such subjectivity. If such election is not made as set forth herein, no election can be made until after four calendar years have elapsed under the contributions method of payment.

c.         Any nonprofit organization which makes an election in accordance with subparagraph b. of this paragraph will continue after such four calendar years to be liable for payments in lieu of contributions until it files with the Commission a written notice terminating its election not later than 30 days prior to the next January 1, effective on such January 1.

d.         Any nonprofit organization which has been paying contributions under this act for a period of at least four consecutive calendar years subsequent to January 1, 1972, may elect to change to a reimbursement basis by filing with the Commission not later than 30 days prior to the next January 1 a written notice of election to become liable for payments in lieu of contributions, effective on such Janaury 1. Such election shall not be terminable for a period of four calendar years. In the event of such an election, the account of such employer shall be closed and shall not be used in any future computation of such employer's contribution rate in any manner- whatsoever.

e.         The Commission, in accordance with such regulations as it may adopt, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review.

(2)        Payments in lieu of contributions shall be made in accordance with the provisions of this subparagraph and shall be processed as provided herein.

a.         Quarterly Contributions and Wage Reports and advance payments shall be submitted to the Commission quarterly under the same conditions and requirements of Sections 96-9 and 96-10, except that the amount of advance payments shall be computed as 1% of taxable wages and entered on such reports; provided that such advance payments shall become effective only with respect to the first four thousand two hundred dollars ($4,200) in wages paid in a calendar year on and after July 1, 1972. Collection of such advance payments shall be made as provided for the collection of contributions in Section 96-10.

b.         The Commission shall establish a separate account for each such employer and such account shall be charged, credited, and maintained as provided in Section 96-9(c)(l), except that advance payments shall be credited in full and voluntary contributions are not applicable.

c.         Benefits paid shall be charged to the employer's account in accordance with Section 96-9(c)(2)a.; provided that the noncharging of benefits set forth in Section 96-9(c)(2)b. shall not apply; provided further, irrespective of any other provisions of this act, all benefits paid shall be charged to the employer's account as provided herein, and no benefits paid shall be noncharged, except an amount equal to 50% of extended benefits paid. Any such benefits paid and later determined to be overpayments shall be credited to the employer's account only if recovered.

As of July 31 of each year, and prior to January 1 of the succeeding year, the Commission shall determine the balance of each such employer's account and shall furnish him with a statement of all charges and credits thereto.

As of the second computation date (August 1) following the effective date of liability and as of each computation date thereafter, any credit balance remaining in the employer's account (after all applicable postings) in excess of whichever is the greater (a) benefits charged to such account during the twelve months ending on such computation date, or (b) 1% of taxable wages for the 12 months ending on June 30 preceding such computation date shall be refunded. Any such refund shall be made prior to February 1 following such computation date.

Should the balance in such account not equal that requiring a refund, the employer shall upon notice and demand for payment mailed to his last- known address pay into his account an amount that will bring such balance to the minimum required for a refund. Such amount shall become due on or before the 10th day following the mailing of such notice and demand for payment. Any such amount unpaid on the due date shall be collected in the same manner, including interest, as prescribed in Section 96-10.

Upon a change in election as to the method of payment from reimbursement to contributions, or upon termination of coverage and after all applicable benefits paid based on wages paid prior to such change in election or termination of coverage have been charged, any credit balance in such account shall be refunded to the employer.

Should there be a debit balance in such account, the employer shall, upon notice and demand for payment, mailed to his last-known address, pay into his account an amount equal to such debit balance. Such amount shall become due on or before the 10th day following the mailing of such notice and demand for payment.

Any such amount unpaid on the date due shall be collected in the same manner, including interest, as prescribed in Section 96-10.

e.         The Commission may make necessary rules and regulations with respect to coverage of a group of nonprofit organizations and with respect to the reimbursement of benefit payments by such group of nonprofit organizations."

Sec. 21.  That Article 2, Chapter 96, Section 9640(b), as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by renumbering paragraph (2) to (3) and inserting in lieu of paragraph (2) the following:

"(2)      Any representative of the Employment Security Commission may examine and copy the county tax listings, detailed inventories, statements of assets or similar information required under General Statutes, Chapter 105, to be filed with the tax supervisor of any county in this State by any person, firm, partnership, or corporation, domestic or foreign, engaged in operating any business enterprise in such county. Any such information obtained by an agent or employee of the Commission shall not be divulged, published, or open to public inspection other than to the Commission's employees in the performance of their public duties. Any employee or member of the Commission who violates any provision of this section shall be fined not less than twenty dollars ($20.00), nor more than two hundred dollars ($200.00), or imprisoned for not longer than 90 days, or both."

Sec. 22.  That Article 2, Chapter 96, Section 96-ll(b), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out subsection (b) and inserting in lieu thereof the following:

"(b)      Prior to January 1, 1972, and except as otherwise provided in subsections (a),(c), and (d) of this section, an employing unit shall cease to be an employer subject to this chapter only as of the first day of January of any calendar year, if it files with the Commission prior to the first day of March of such calendar year a written application for termination of coverage and the Commission finds that there were no 20 different weeks in the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed four or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week); provided that on and after January 1, 1972, except as otherwise provided in subsections (a), (c) and (d) of this section, an employing unit shall cease to be an employer subject to this chapter only as of the first day of January in any calendar year, if it files with the Commission prior to the first day of March of such year a written application for termination of coverage and the Commission finds that there were no 20 different weeks within the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed one or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individual was employed in each such week), and the Commission finds that there was no calendar quarter within the preceding calendar year in which the total wages of its employees were one thousand five hundred dollars ($1,500) or more. Provided further, except as otherwise provided in subsections (a), (c), and (d) of this section on and after January 1, 1974, an 'employer' as the term is used in Section 96-8(5)k. shall cease to be an employer subject to this chapter only as of the first day of January in any calendar year, if it files with the Commission prior to the first day of March of such year a written application for termination of coverage and the Commission finds that there were no 20 different weeks within the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed four or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week). For the purpose of this subsection, the two or more employing units mentioned in paragraphs b. or c. of Section 96-8, subdivision (5) shall be treated as a single employing unit: Provided, however, that any employer, as the term is used in Section 96-8(5)k., whose liability covers a period of more than two years when first discovered by the Commission, upon filing a written application for termination within 90 days after notification of his liability by the Commission, may be terminated as an employer effective January 1; and for any subsequent year if the Commission finds there were no 20 different weeks within the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed four or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week). Provided further, any other employer whose liability covers a period of more than two years when first discovered by the Commission, upon filing a written application for termination within 90 days after notification of his liability by the Commission may be terminated as an employer effective January 1, and for any subsequent years if the Commission finds that prior to January 1, 1972, there were no 20 different weeks within the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed four or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week); and with respect to 1972 and subsequent years, if the Commission finds that there were no 20 different weeks within the preceding calendar year (whether or not such weeks are or were consecutive) within which said employing unit employed one or more individuals in employment (not necessarily simultaneously and irrespective of whether the same individual was employed in each such week), and the Commission finds that there was no calendar quarter within the preceding calendar year in which the total wages of its employees were one thousand five hundred dollars ($1,500) or more. In such cases, a protest of liability shall be considered as an application for termination within the meaning of this provision where the decision with respect to such protest has not become final; provided further, this provision shall not apply in any case of willful attempt in any manner to defeat or evade the payment of contributions becoming due under this chapter."

Sec. 23.  That Article 2, Chapter 96, Section 96-11(c)(3), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by renumbering paragraph (3) to (4) and adding a new paragraph (3) as follows:

"(3)      a.         On and after January 1, 1972, any political subdivision of this State may elect, for a period of not less than two calendar years, to cover under this act service performed by employees in all of the hospitals and institutions of higher education, as defined in Section 96-8(5)1., operated by such political subdivisions. Any election is to be made by filing with the Commission a notice of such election at least 30 days prior to January 1, the effective date of such election. Any political subdivision electing coverage under this subsection shall make payments in lieu of contributions with respect to benefits attributable to such employment as provided with respect to nonprofit organizations in Section 96-9(d).

b.         The provisions in Section 96-8(5)m. with respect to benefit rights based on service for State and nonprofit institutions of higher education shall be applicable also to service covered by an election under this section,

c.         The amounts required to be paid in lieu of contributions by any political subdivision under this section shall be as provided in Section 96-9(d), with respect to similar payments by nonprofit organizations.

d.         An election under this section may be terminated as of January 1 of any calendar year subsequent to such two calendar years only if 30 days prior to such January 1, such employer has filed with the Commission a written notice to that effect."

Sec. 24.  That Article 2, Chapter 96, Section 96-11(d), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out subsection (d) and inserting in lieu thereof the following:

"(d)      An employer who has not had any individuals in employment for a period of two consecutive calendar years shall cease to be an employer subject to this chapter. An employer who has not had individuals in employment and who has made due application for exemption from filing contributions and wage reports required under this chapter and has been so exempted may be terminated from liability upon written application within 120 days after notification of the reactivation of his account. Such termination shall be effective January 1 of any calendar year only if the Commission finds there were no 20 different weeks within the preceding calendar year, whether or not such weeks are or were consecutive, within which said employer employed one or more individuals in employment (four or more prior to January 1, 1972), not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week, and the Commission finds that there was no calendar quarter within the preceding calendar year in which the total wages of its employees were one thousand five hundred dollars ($1,500) or more, except as otherwise provided. Provided further, an employer, as the term is used in Section 96-8(5)k., who has not had individuals in employment and who has made due application for exemption from filing contributions and wage reports required under this chapter and has been so exempted may be terminated from liability upon written application within 120 days after notification of the reactivation of its account. Such termination shall be effective January 1 of any calendar year only if the Commission finds that there were no 20 different weeks within the preceding calendar year, whether or not such weeks are or were consecutive, within which said employer employed four or more individuals in employment, not necessarily simultaneously and irrespective of whether the same individuals were employed in each such week. In such cases a protest of liability shall be considered as an application for termination within the meaning of this provision where the decision with respect to such protest has not become final."

Sec. 25.  That Article 2, Chapter 96, Section 96-12(b), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out paragraph (b)(1), changing paragraph (b)(2) to (b)(1); paragraph (b)(3) to (b)(2); striking out paragraph (b)(4), and inserting in lieu thereof the following paragraphs (b)(3) and (b)(4) to read as follows:

"(3)      Qualifying wages for exhaustees — An individual who has exhausted his maximum benefit entitlement in his last previous benefit year who files a claim for benefits prior to January 1, 1972, shall not be entitled to benefits unless he has been paid qualifying wages required in General Statutes 96‑12(b)(1), and since the beginning date of his last established previous benefit year and before the date upon which he files his new benefit claim has been paid wages equal to at least ten times the weekly benefit amount of the new benefit year claim. Such wages must have been earned with an employer subject to the provisions of this chapter or some other state employment security law or in federal service as defined in Chapter 85, Title 5, United States Code.

(4)        Qualifying wages for second benefit year — Any individual whose prior benefit year has expired and who files a claim for benefits on and after January 1, 1972, shall not be entitled to benefits unless he has been paid qualifying wages required by G.S. 96-12(b)(1), and since the beginning date of his last established previous benefit year and before the date upon which he files his new benefit claim has been paid wages equal to at least ten times the weekly benefit amount of the new benefit year claim. Such wages must have been earned with an employer subject to the provisions of this chapter or some other state employment security law or in federal service as defined in Chapter 85, Title 5, United States Code."

Sec. 26.  That Article 2, Chapter 96, Section 96-12(e), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out subsection (e) and inserting in lieu thereof the following:

"(e)       Extended benefits — Effective January 1, 1972, extended benefits shall be paid under this chapter as herein specified:

A.        Definitions. — As used in this subsection, unless the context clearly requires otherwise-

(1)        'Extended benefit period' means a period which

(a)        begins with the third week after whichever of the following weeks occurs first:

(I)        a week for which there is a national 'on' indicator, or

(II)       a week for which there is a State 'on' indicator; and

(b)        ends with either of the following weeks, whichever occurs later:

(I)        the third week after the first week for which there is both a national 'off indicator and a State 'off indicator; or

(II)       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 following the end of a prior extended benefit period which was in effect with respect to this State.

(2)        There is a 'national "on" indicator' for a week if the U. S. Secretary of Labor determines that for each of the three most recent completed calendar months ending before such week, the rate of insured unemployment (seasonally adjusted) for all states equaled or exceeded 4.5 percent.

(3)        There is a 'national "off" indicator' for a week if the U. S. Secretary of Labor determines that for each of the three most recent completed calendar months ending before such week, the rate of insured unemployment(seasonally adjusted) for all states was less than 4.5 percent.

(4)        There is a 'State "on" indicator' for this State for a week if the Commission determines, in accordance with the regulations of the U.S. Secretary of Labor, that for the period consisting of such week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under this act-

a.         equaled or exceeded 120 percent of the average of such rates for the corresponding 13-week period ending in each of the preceding two calendar years, and

b.         equaled or exceeded 4 percent.

(5)        There is a 'State "off" indicator' for this State for a week if the Commission determines, in accordance with the regulations of the U. S. Secretary of Labor, that for the period consisting of such week and the immediately preceding 12 weeks, the rate of insured unemployment (not seasonally adjusted) under this act-

a.         was less than 120 percent of the average of such rates for the corresponding 13-week period ending in each of the preceding two calendar years, or

b.         was less than 4 percent.

(6)        'Rate of insured unemployment,' for the purposes of subparagraphs (4) and (5) of this subsection, means the percentage derived by dividing

a.         the average weekly number of individuals filing claims in this State for weeks of unemployment with respect to the most recent 13 consecutive- week period, as determined by the Commission on the basis of its reports to the U. S. Secretary of Labor, by

b.         the average monthly employment covered under this act for the first four of the most recent six completed calendar quarters ending before the end of such 13-week period.

(7)        'Regular benefits' means benefits payable to an individual under this act or 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.

(8)        '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 section for weeks of unemployment in his eligibility period.

(9)        '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 such extended benefit period, any weeks thereafter which begin in such period.

(10)      'Exhaustee' means an individual who, with respect to any week of unemployment in his eligibility period:

a.         Has received, prior to such week, all of the regular benefits that were available to him under this act 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, an individual shall be deemed to have received all of the regular benefits that were available to him although (1) as a result of a pending appeal with respect to wages 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) he may be entitled to regular benefits with respect to future weeks of unemployment, but such benefits are not payable with respect to such week of unemployment by reason of the provisions in Section 96-16; or

b.         his benefit year having expired prior to such week, has no, or insufficient, wages on the basis of which he could establish a new benefit year that would include such week; and

c.         (1)        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 U.S. Secretary of Labor; and

(2)        has not received and is not seeking unemployment benefits under the unemployment compensation law of the Virgin Islands or of Canada; but if he is seeking such benefits and the appropriate agency finally determines that he is not entitled to benefits under such law, he is considered an exhaustee.

(11)      'State law' means the unemployment insurance law of any state approved by the U.S. Secretary of Labor under section 3304 of the Internal Revenue Code of 1954.

B          Effect of State law provisions relating to regular benefits on claims for, and the payment of, extended benefits.-Except when the result would be inconsistent with the other provisions of this section, as provided in the regulations of the Commission, the provisions of this act which apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of, extended benefits.

C.        Eligibility requirements for extended benefits — An individual shall be eligible to receive extended benefits with respect to any week of unemployment in his eligibility period only if the Commission finds that with respect to such week:

1.         he is an 'exhaustee' as defined in subsection (a)(10),

2.         he has satisfied the requirements of this act for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits.

D.        Weekly extended benefit amount. — The weekly extended benefit amount payable to an individual for a week of total unemployment in his eligibility period shall be an amount equal to the weekly benefit amount payable to him during his applicable benefit year. For any individual who was paid benefits during the applicable benefit year in accordance with more than one weekly benefit amount, the weekly extended benefit amount shall be the average of such weekly benefit amounts.

E.         Total extended benefit amount — The total extended benefit amount payable to any eligible individual with respect to his applicable benefit year shall be the least of the following amounts:

1.         50 percent of the total amount of regular benefits which were payable to him under this act in his applicable benefit year; or

2.         13 times his weekly benefit amount which was payable to him under this act for a week of total unemployment in the applicable benefit year.

F.         Beginning and termination of extended benefit period.-

1.         Whenever an extended benefit period is to become effective in this State (or in all states) as a result of a state or a national 'on' indicator, or an extended benefit period is to be terminated in this State as a result of state and national 'off indicators, the Commission shall make an appropriate public announcement.

2.         Computations required by the provisions of subsection (a)(6) shall be made by the Commission, in accordance with regulations prescribed by the U.S. Secretary of Labor.

G.        Irrespective of any other provisions of this act, any extended benefits paid to any claimant under G.S. 96-12(e) shall not be charged to the account of the base period employer(s) who pay contributions as required by this act. However, 50 percent of any such benefits paid shall be allocated as provided in G.S. 96-9(c)(2) a.(except that G.S. 96-9(c)(2)b. shall not apply), and the applicable amount shall be charged to the account of the appropriate employer paying on a reimbursement basis in lieu of contributions."

Sec. 27.  That Article 2, Chapter 96, Section 96-13(3), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out in line 40 after the word "work" the following:

"if such individual is not receiving a training allowance pursuant to the provisions of a federal or State law." and inserting in lieu thereof the following: "However, any unemployment insurance benefits payable with respect to any week for which a training allowance is payable pursuant to the provisions of a federal or State law, shall be reduced by the amount of such allowance."

Sec. 28.  That Article 2, Chapter 96, Section 96-13, General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by renumbering subsection (4) to (5) and adding a new subsection (4) to read as follows:

"(4)      The payment of benefits to any individual based on services for nonprofit organizations, hospitals, or state hospitals and state institutions of higher education and other institutions of higher education subject to this act shall be in the same manner and under the same conditions of the laws of this chapter as applied to individuals whose benefit rights are based on other services subject to this act. Except that with respect to services in instructional, research, or principal administrative capacity in an institution of higher education which meets the requirements of General Statutes 96‑8(5)(l), benefits shall not be payable based on such services for any week commencing during the period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, if the individual has a contract or contracts to perform services in any such capacity for any institution or institutions of higher education for both such academic years or both such terms."

Sec. 29.  That Article 2, Chapter 96, Section 96-14(3), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by adding at the end of the first paragraph the following: "Provided further, an otherwise eligible individual who is attending a vocational school or training program which has been approved by the Commission for such individual shall not be denied benefits because he refuses to apply for or accept suitable work during such period of training."

Sec. 30.  That Article 2, Chapter 96, Section 96-15(b)(l), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, be and the same is hereby amended by striking out the last sentence in the first paragraph and inserting in lieu thereof the following:

"All base period employers, as well as the most recent employer of a claimant on a temporary layoff, shall be notified upon the filing of a claim which establishes a benefit year or an ineligible amount."

Sec. 30.1.  G.S. 96-15 is hereby amended by adding a new subsection (k) to read as follows:

"(k) Irrespective of any other provision of this Chapter, the Commission may adopt minimum regulations necessary to provide for the payment of benefits to individuals promptly when due as required by Section 303(a)(1) of the Social Security Act as amended (42 U.S.C.A., § 503(a)(1)."

Sec. 31.  That Article 2, Chapter 96, Section 96-18(f), General Statutes of North Carolina, as such appears in the 1965 Replacement Volume 2C, 1969 Cumulative Supplement, be and the same is hereby amended by striking out subsection (f) and changing subsection (g) to (f).

Sec. 32.  That all laws and clauses of laws in conflict with the provisions of this act are hereby repealed

Sec. 33.  This act shall be in full force and effect upon its ratification.

In the General Assembly read three times and ratified, this the 25th day of June, 1971.