NY State Senate Bill 2021-S8306

Senate Bill S8306

2021-2022 Legislative Session

Requires the department of labor to collect and report certain information regarding requests for federal Title XII advances for the state unemployment trust fund

download bill text pdf

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 10, 2022	referred to labor

2021-S8306 (ACTIVE) - Details

See Assembly Version of this Bill:: A4420
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §550, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: A11113
2023-2024: A2911
2025-2026: A1152

2021-S8306 (ACTIVE) - Summary

Relates to requiring the department of labor to collect and report certain information regarding requests from the governor or his or her authorized agent for federal Title XII advances for the state unemployment trust fund.

2021-S8306 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8306

SPONSOR: GALLIVAN
 
TITLE OF BILL:

An act to amend the labor law, in relation to requiring the department
of labor to collect and report certain information regarding requests
from the governor or his or her authorized agent for federal Title XII
advances for the state unemployment trust fund

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require the Department of Labor to report on any request
for a Federal Title XII advance to supplement the State's unemployment
insurance benefit fund.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 550 of the Labor Law by adding a
new subdivision 5 that creates reporting requirements for the Department
of Labor in any instance when the Governor or his or her authorized
agent requests a Federal Title XII advance to supplement the State's

unemployment insurance benefit fund. This bill will require the report-
ing of the total dollar amount that is requested, the requested advance
for each individual month, the interest rate that will accrue on any
such advance, a descriptive list of the reason why such advance is
requested, any supplemental or amended request that is submitted by the
Governor or his or her authorized agent, the anticipated repayment date
of the advance, a descriptive list of the impacts on employers if the
State does not repay the advance within the required timeframe and any
other information that the Commissioner deems important.

Section two of the bill establishes the effective date.

 
JUSTIFICATION:

Section 1201 of the Social Security Act permits the Governor of a state
to request repayable advances from the Federal Unemployment Account for
any three consecutive month period during which reserves in the state
account in the Unemployment Trust Fund are insufficient to pay benefits.

When such advance is approved, the state has approximately two years to
repay the advance in full without penalty. If a state fails to repay the
advance in full in the allotted timeframe, all taxable employers in that
state will be subject to a reduced credit on their Federal Unemployment
Tax Act (FUTA) of .3%. The reduced credit will increase by .3% for each
January 1' that passes without full repayment by November 10th of that
year. This legislation aims to provide relevant information on any
possible increase to an employer's FUTA tax as a result of the state
requesting additional funds for the unemployment insurance benefit fund.

 
PRIOR LEGISLATIVE HISTORY:

A.11113 (2020) - referred to labor

 
FISCAL IMPLICATIONS:

None to state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S8306 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8306
 
                             I N  S E N A T E
 
                             February 10, 2022
                                ___________
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to requiring  the  department
   of  labor to collect and report certain information regarding requests
   from the governor or his or her authorized agent for federal Title XII
   advances for the state unemployment trust fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  550  of the labor law is amended by adding a new
 subdivision 5 to read as follows:
   5. (A) THE DEPARTMENT  SHALL  COLLECT  THE  FOLLOWING  DATA  REGARDING
 REQUESTS  FROM  THE  GOVERNOR OR HIS OR HER AUTHORIZED AGENT FOR FEDERAL
 TITLE XII ADVANCES FOR THE STATE UNEMPLOYMENT TRUST FUND,  AS  PERMITTED
 BY SECTION 1201 OF THE FEDERAL SOCIAL SECURITY ACT, AND COMPILE A REPORT
 THAT INCLUDES THE FOLLOWING:
   (I)  THE  TOTAL  DOLLAR AMOUNT REQUESTED BY THE GOVERNOR OR HIS OR HER
 AUTHORIZED AGENT FOR FEDERAL TITLE XII ADVANCES PURSUANT TO SECTION 1201
 (A)(1)(A) OF THE FEDERAL SOCIAL SECURITY ACT;
   (II) THE ADVANCE REQUESTED FOR EACH INDIVIDUAL MONTH OF THE THREE-CON-
 SECUTIVE-MONTH LOAN PERIOD AS REQUIRED BY SECTION 1201 (A)(1)(A) OF  THE
 FEDERAL SOCIAL SECURITY ACT;
   (III)  THE CURRENT INTEREST RATE APPLIED TO ANY STATE ADVANCE RECEIVED
 BY THE GOVERNOR OR HIS OR HER AUTHORIZED AGENT AS DEFINED BY THE  UNITED
 STATES GOVERNMENT OR ITS AGENT;
   (IV)  A  DESCRIPTIVE LIST OF THE REASON OR REASONS THE GOVERNOR OR HIS
 OR HER AUTHORIZED AGENT REQUESTED SUCH STATE ADVANCE;
   (V) ANY SUPPLEMENTAL OR AMENDED REQUESTS FOR ADVANCES IN ANY MONTH  IN
 WHICH  IT  IS DETERMINED THAT THE PREVIOUSLY APPROVED AMOUNT IS INSUFFI-
 CIENT TO MEET BENEFIT PAYMENT OBLIGATIONS;
   (VI) THE ANTICIPATED REPAYMENT DATE OF ANY STATE ADVANCE  RECEIVED  BY
 THE GOVERNOR OR HIS OR HER AUTHORIZED AGENT;
   (VII)  A  DESCRIPTIVE LIST OF THE IMPACT ON EMPLOYERS THAT THE STATE'S
 FAILURE TO REPAY SUCH LOAN WOULD HAVE ACCORDING  TO  FEDERAL  TITLE  XII
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08073-01-1

 S. 8306                             2
 
 ADVANCES  IN RELATION TO THE REDUCTION OF THEIR FEDERAL UNEMPLOYMENT TAX
 ACT (FUTA) TAX; AND
   (VIII)  ANY  OTHER  INFORMATION THE COMMISSIONER MAY DEEM NECESSARY TO
 INCLUDE IN SUCH REPORT.
   (B) THE DEPARTMENT SHALL SUBMIT  SUCH  REPORT  TO  THE  GOVERNOR,  THE
 SPEAKER  OF  THE  ASSEMBLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE
 ASSEMBLY MINORITY LEADER, THE SENATE MINORITY LEADER, THE CHAIRPERSON OF
 THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE CHAIRPERSON OF THE  SENATE
 FINANCE COMMITTEE NO LATER THAN THIRTY DAYS AFTER THE GOVERNOR OR HIS OR
 HER  AUTHORIZED  AGENT SUBMITS A REQUEST FOR A FEDERAL TITLE XII ADVANCE
 FROM THE UNITED STATES SECRETARY OF LABOR, AND SHALL CONTINUE TO  REPORT
 THE   INFORMATION  REQUIRED  BY  THIS  SUBDIVISION  ANNUALLY  UNTIL  THE
 OUTSTANDING FEDERAL TITLE XII ADVANCE IS REPAID IN FULL.
   § 2. This act shall take effect immediately.

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