Conference report to the 4th edition makes the following changes:

Expands Section 1 to deny authority to the Division of Employment Security (Division) from administering payments under the Mixed Earners Unemployment Compensation program (MEUC program), as defined, in addition to the Federal Pandemic Unemployment Compensation program (FPUC program). Makes conforming changes to the Section's purpose. Now specifies that Section 1 has no effect upon the authority of the Division to administer payments under either programs paid or accrued before the effective date of the Section; requires such payments to be paid, adjudicated, collected, or otherwise administered after the effective date of the Section. Changes the effective date of Section 1 to the earliest date meeting both of the following conditions: (1) the date is a Saturday; and (2) the date is 30 days after the act becomes law (previously, did not require the date be a Saturday). Makes changes to make the definitions of FPUC and MEUC apply to the entire act (previously, FPUC definition was limited to Section 1).

Eliminates the content of previous Sections 2 through 5, which made various amendments to taxation provisions set forth in GS Chapter 105 regarding covered loans and unemployment compensation under the federal CARES Act. Makes conforming organizational changes.

Conditions the appropriation to the Department of Health and Human Services, Division of Child Development and Early Childhood Education, from Federal Child Care and Development block grant funds received under the American Rescue Plan Act of 2021, P.L. 117-2, for subsidized child care for eligible children upon the Division ceasing to administer payments under the FPUC and MEUC programs on or before August 14, 2021. Makes the provision effective July 1, 2021.

Adds the following content, organized as Section 4.

Amends GS 96-14.9 regarding the four work search requirements that must be met on a weekly basis for an individual to maintain eligibility for unemployment benefits for each weekly benefit period. Modifies the requirement for the individual to be actively seeking work to no longer allow satisfaction of one of the three required job contacts with potential employers during the week by attending a reemployment activity offered by a local career center. Adds to the required record of the individual's work search efforts to include whether any of the potential employers have made an interview request and, if so, the responses made under new subsection (f1). Enacts new subsection (f1), establishing response requirements for an individual who has received an interview request by an employer offering suitable work under the statute, including: (1) responding to the request within 48 hours; (2) scheduling an interview following a request within seven days, with later interviews permitted upon agreement with the potential employer; (3) appearing for a scheduled interview; and (4) attending any reemployment activity associated with the interview request if required by an employer. Allows employers to report violations to the Division and requires the Division to audit, on its own or through a private third party, all reported violations to determine if an individual's eligibility to receive benefits is impacted by the violation. Regarding the requirement for an individual to accept suitable work when offered after the first 10 weeks of a benefit period which meets the threshold specified based on the individual's weekly benefit amount, clarifies that the weekly benefit amount considered by the Division to determine if the offer is for suitable work includes only benefits paid under GS Chapter 96.

Amends GS 96-14.11 to disqualify an individual for any remaining benefits if the Division determines that the individual has failed, without good cause, to satisfy any of the interview response requirements set forth in new GS 96-14.9(f1) three or more times during a benefit year.

Makes the provisions of Section 4 apply to claims with weekly certification under GS 96-14.9 filed on or after the date the act becomes law. 

Changes the act's effective date provisions, making the act effective on the date the act becomes law, except as otherwise provided (was, effective for taxable years beginning on or after January 1, 2020.

Changes the act's long title.

House committee substitute deletes the content of the 2nd edition and now provides the following.

Section 1

Explicitly denies the Division of Employment Security, Department of Commerce, the authority to administer payments under the Federal Pandemic Unemployment Compensation (FPUC, as described) program, effective 30 days after the date the act becomes law. States the legislative purpose of the Section is to withdraw from the FPUC agreement that provides additional payments to unemployment insurance claimants through September 6, 2021.

Section 2

Modifies the definition set forth for the defined term Code under GS 105-228.90(b)(7) to provide a distinct definition for the purpose of the amount of any expense deducted under the Code (defined as the Internal Revenue Code as it existed as of May 1, 2020) to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act, defining the term to mean the Internal Revenue Code as enacted as of January 1, 2021. Defines covered loan by federal statutory cross-reference to section 1106 of the CARES Act, to include certain small business loans under the Paycheck Protection Program/PPP. Effective for taxable years beginning on or after January 1, 2020, and expires for taxable years beginning on or after January 1, 2022.

Sections 3 and 4

Effective for taxable years beginning on or after January 1, 2020, repeals GS 105-130.5(a)(32) and GS 105-153.5(c2)(20), which require corporate and individual taxpayers to add to the taxpayer's adjusted gross income the amount of any expense deducted under the Internal Revenue Code to the extent that payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the federal CARES Act (governing the Payment Protection Program/PPP) and the income associated with the forgiveness is excluded from gross income pursuant to section 1106(i) of the CARES Act. Effective for taxable years beginning on or after January 1, 2022, these provisions are reenacted as they existed immediately before the repeal.

Section 5

Adds a new deduction to GS 105-153.5(b), allowing a taxpayer to deduct the amount excluded from the taxpayer's gross income for unemployment compensation received by the taxpayer under section 9042 of the American Rescue Plan Act of 2021.

Section 6 makes the act effective for taxable years beginning on or after January 1, 2020, except as otherwise provided. 

Changes the act's titles.