House committee substitute to the 2nd edition deletes the provisions of the 2nd edition and replaces it with the following.

Amends GS 96-6(1), as amended, to require the Division of Employment Security to administer the Unemployment Insurance Fund solely for the payment of unemployment compensation (as defined in section 3306(h) of the Code), exclusive of expenses of administration, and for refunds of sums erroneously paid into the fund (was, administer the fund exclusively for the purposes of GS Chapter 96). Makes technical changes.

Amends GS 96-9.2, as amended, to add that taxable wages are determined in accordance with GS 96-9.3. Provides that the applicable contribution percentage for an employer is considered the employer's contribution rate and determined in accordance with this statute (was, determined by the employer's base rate and the balance in the Unemployment Insurance Fund as of the computation date). Sets the contribution rate for a beginning employer, until the employer's account has been chargeable with benefits for at least 12 months ending July 31 immediately preceding the computation date, at 1%. Requires the contribution rate for an experienced rated employer who does not qualify as a beginning employer to be the amount set out in specified table (same as in current law, except removes reference to 1% contribution rate for standard beginning rate) and then rounded to the nearest .01%. Adds that an employer's experience rating is computed as a reserve ratio in accordance with GS 96-9.4, with the reserve ratio percentage being the employer's reserve ratio multiplied by sixty-eight hundredths.

Amends GS 96-14.1 to add that temporary unemployment benefits are payable on the basis of service, to which section 3309(a)(1) of the Code applies, performed for a governmental entity, a nonprofit, and an Indian tribe in the same amount, on the same terms, and subject to the same conditions as compensation payable on the basis of other service. Also provides that an individual who is disqualified from receiving benefits may have the disqualification removed by filing a valid claim based on employment with a bona fide employer that employed the individual subsequent to the employment that resulted in disqualification. Allows an individual who had a prior disqualification removed to be determined to be disqualified based on the reason for separation from employment, and the individual must be otherwise eligible for employment. Provides that benefits are not payable for services performed by individuals who performed services described in existing (e)(1) (instructional, research, or principal administrative employees of educational institutions) or (e)(2) (employees who provide services in any other capacity for an educational institution) in an education institution while in the employ of an educational service agency. Makes clarifying and technical changes.

Amends GS 96-14.2(c), requiring the amount of benefits payable to an individual be reduced as provided in specified Code section, to provide that it does not apply to social security retirement benefits.

Amends GS 96-14.9 to provide that an individual who is otherwise eligible may not be denied benefits for any week because of the application to any such week of requirements related to availability for work, active search for work, or refusal to accept work if the individual is attending an approved training program (was, an individual has satisfied the work search requirements for any given week for one or more of the three specified occurrences applied).

Amends GS 96-14.11(c), as amended, to provide that an individual is disqualified for any remaining benefits if it is determined that the individual is unemployed (was, the individual, at the time a claim is filed, is unemployed) because the individual, without good cause and after receiving notice, refuse to return to work under specified circumstances.

Amends GS 96-16(g) to provide that all benefits paid to a seasonal worker must be charged according to GS 96-11.2.

Amends GS 96-32 to change the name of the Division of Labor and Economic Analysis to the Labor and Economic Analysis Division.

Effective July 1, 2013. Provides that changes made by the act to unemployment benefits apply to claims for benefits filed on or after June 30, 2013, with changes to the determination and application of the contribution rate applicable to contributions payable for calendar quarters beginning on or after January 1, 2014.

Amends the act's titles.