BILL NUMBER: S6788

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to direct the governor to withdraw from the federal pandemic
unemployment compensation program and the mixed earner unemployment
compensation program

 
PURPOSE:

Directs the governor to withdraw from the federal pandemic unemployment
compensation programs and the mixed earner unemployment compensation
programs.

 
SUMMARY OF PROVISIONS:

Section 1. Notwithstanding any other law or provision to the contrary,
the governor shall be directed to take the necessary steps to withdraw
from the federal pandemic unemployment compensation (FPUC) program and
the mixed earner unemployment compensation (MEUC) programs.
              

Section 2. This act shall take effect immediately.

 
EXISTING LAW:

 
JUSTIFICATION:

Initiated in 2020, the Coronavirus Aid Relief and Economic Security
(CARES) Act, Emergency Unemployment Insurance Stabilization and Access
(EUISAA) Act and the Consolidated Appropriations Act of 2021, directed
federal funding to the Federal Pandemic Unemployment Compensation (FPUC)
program and the Mixed Earners Unemployment Compensation (MEUC) program.
The MEUC extended a $100 each week incentive to individuals with $5,000
or more in self-employment income in the previous tax year, and who are
now receiving Pandemic Unemployment Assistance (PUA). The FPUC extended
$300 as a supplement to individual earners receiving PUA.

Pursuant to Section XI of the agreement, as outlined in the Employment
and Training Administration Advisory system of the U.S. Department of
Labor Advisory program letter N. 9- 21, a state may terminate specific
provisions within the agreement listed in XIV within thirty days written
notice. This bill will require the Governor, in conjunction with the
Commissioner, to initiate the 30 day notice of withdrawal from these 2
specific programs, no later than the close of business the following
day, as well as notify all parties receiving these benefits of the with-
drawal.

The FPUC and MEUC are not extensions of duration of unemployment for
those who need it, and are not changes to qualifications or requirements
currently enacted. Both are supplemental, attributing additional sums to
individuals on unemployment during the pandemic, than what would normal-
ly be paid during a period of unemployment.  This supplemental allo-
cation has increased the total sum of unemployment insurance beyond the
income of what many employers can pay, and what earners previously
earned; incentivizing many to remain on unemployment. These additional
sums also increase unemployment payments beyond initial unemployment
insurance calculations; which has created a $10 Billion deficit.

The State of Montana and the State of South Carolina have both withdrawn
from these programs, citing the need to fill an excess of vacant jobs
concurrent with high unemployment rates. Several New York based busi-
nesses have similarly indicated issues filling job openings. As the
recovery from the pandemic continues, the incentive to return to normal
needs to be emphasized. Removing the FPUC and MEUC will de-incentivize
staying on unemployment.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately