House Committee Substitutemakes the following changes to the 1st edition.

Makes organizational changes to GS Chapter 96. Moves the definitions from Article 2 of GS Chapter 96 to Article 1. Puts the definitions in alphabetical order, cross-references many of the definitions to their meaning under the Federal Unemployment Tax Act (FUTA), and deletes definitions that are not needed.

Identifiesthe four funds used to administer GS Chapter 96with namesto more accurately reflect their purpose: (1) Unemployment Insurance Fund, (2) Unemployment Insurance Reserve Fund, (3) Employment Security Administration Fund, and (4) Supplemental Employment Security Administration Fund.

The 1st edition created a new Article 2A in Chapter 96; repealedtheexisting provisions of Article 2, Unemployment Insurance Division;andrecodified statutes that were previously in Article 2 under new Article 2A. The PCS reinserts Article 2 and renames itas Contributions and Payments by Employers. Amends Article 2 ofChapter96andrepeals the current stepped tax schedules that determine an employer's State Unemployment Tax Act (SUTA) contribution rate and replaces the schedules with an equation based on a reserve ratio.

Amendsproposed Article 2A from the 1st edition to nowcover Administration andCollection of Contributions; deletes the recodification of statutory provisions previously innew Article 2AinChapter 96; andplacesprovisions previously in new Article 2A in a new Article 2B, Administration of Employer Accounts.

Further reorganizes recodified statutes placed in proposed Article 2A in the 1st edition, moving some of those provisions to a new Article 2C in Chapter 96 with the heading Benefits Payable for Unemployment Compensation and some to a new Article 2D in Chapter 96 with the heading Administration of Benefits.

Makes additional conforming changes.

Adds a new Article 12R, Joint Legislative Oversight Committee on Unemployment insurance,in GS Chapter 120 (creation of committee in the 1st edition was uncodified). Provides that Article 12R expires as of July 1, 2023.

Removes provisions providing for the transfer of funds to the Unemployment Insurance (UI)Fund and the appropriation of funds from the Special Employment Security Administration Fund to the UI Fund tomake principal payments on the debt to the Federal government for advances to pay unemployment compensation benefits.

Declares the act effective as of July 1, 2013 (was, when the act becomes law).Clarifies that changes made by the act to unemployment benefits apply to claims filed on or after July 1, 2013. Provides that changes made by the act to require an account balance by an employer that is a governmental entity or a nonprofit organization and that elects to finance benefits by making reimbursement payments in lieu of contributions apply to advance payments payable for calendar quarters beginning on or after July 1, 2013. Changes made by the act to the determination and application of the contribution rate apply to contributions payable for calendar quarters beginning on or after January 1, 2014.