|04/13/09||REFERRED TO LABOR|
STATE OF NEW YORK ________________________________________________________________________ 4110 2009-2010 Regular Sessions IN SENATE April 13, 2009 ___________ Introduced by Sen. ONORATO -- (at request of the Governor) -- 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 unemployment insurance benefits and part-time work, voluntary separations from employment, and on/off indicators for extended unemployment insurance benefits; and in relation to extended benefits The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 593 of the labor law, as amended 2 by chapter 415 of the laws of 1983, paragraph (a) as amended by chapter 3 268 of the laws of 1999, and paragraph (b) as amended by chapter 589 of 4 the laws of 1998, is amended to read as follows: 5 1. Voluntary separation; separation for a compelling family reason. 6 (a) No days of total unemployment shall be deemed to occur after a 7 claimant's voluntary separation without good cause from employment until 8 he or she has subsequently worked in employment and earned remuneration 9 at least equal to five times his or her weekly benefit rate. In addition 10 to other circumstances that may be found to constitute good cause, 11 including a compelling family reason as set forth in paragraph (b) of 12 this subdivision, voluntary separation from employment shall not in 13 itself disqualify a claimant if circumstances have developed in the 14 course of such employment that would have justified the claimant in 15 refusing such employment in the first instance under the terms of subdi- 16 vision two of this section or if the claimant, pursuant to an option 17 provided under a collective bargaining agreement or written employer 18 plan which permits waiver of his right to retain the employment when 19 there is a temporary layoff because of lack of work, has elected to be 20 separated for a temporary period and the employer has consented thereto. 21 (b) A [
voluntary separation may also be deemed for good cause if it22 occurred as a consequence of circumstances directly resulting from theEXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12032-04-9
S. 4110 2 1
claimant being a victim of domestic violence] claimant shall not be 2 disqualified from receiving benefits for separation from employment due 3 to any compelling family reason. For purposes of this paragraph, the 4 term "compelling family reason" shall include, but not be limited to, 5 separations related to: 6 (i) domestic violence, verified by reasonable and confidential 7 documentation which causes the individual reasonably to believe that 8 such individual's continued employment would jeopardize his or her safe- 9 ty or the safety of any member of his or her immediate family; or 10 (ii) the illness or disability of a member of the individual's immedi- 11 ate family; or 12 (iii) the need for the individual to accompany such individual's 13 spouse (A) to a place from which it is impractical for such individual 14 to commute and (B) due to a change in location of the spouse's employ- 15 ment. 16 [ (b)] (c) A disqualification as provided in this subdivision shall 17 also apply after a claimant's voluntary separation from employment if 18 such voluntary separation was due to claimant's marriage. 19 § 2. Paragraph (d) of subdivision 2 of section 593 of the labor law, 20 as amended by chapter 282 of the laws of 2002, is amended to read as 21 follows: 22 (d) the wages or compensation or hours or conditions offered are 23 substantially less favorable to the claimant than those prevailing for 24 similar work in the locality, or are such as tend to depress wages or 25 working conditions; or 26 (e) the claimant is seeking part-time work as provided in subdivision 27 five of section five hundred ninety-six of this title and the offer of 28 employment is not comparable to his or her part-time work as defined in 29 such subdivision. 30 § 3. Subdivision 5 of section 596 of the labor law, as added by chap- 31 ter 705 of the laws of 1944 and as renumbered by section 148-a of part B 32 of chapter 436 of the laws of 1997, is amended to read as follows: 33 5. [ Short-time worker. A] Part time work. Notwithstanding any other 34 provisions of this article, a claimant who for reasons personal to 35 himself or herself is unable or unwilling to work [ usual] full time and 36 who customarily [ works] worked less than the full time prevailing in his 37 or her place of employment [ shall register, when unemployed, as a short-38 time worker in such manner as the commissioner shall prescribe. The time39 which such claimant normally works in any calendar week shall be deemed40 his week of full-time employment] for a majority of the weeks worked 41 during the applicable base period, shall not be denied unemployment 42 insurance solely because the claimant is only seeking part time work. 43 For purposes of this subdivision, "seeking part time work" shall mean 44 the claimant is willing to work for a number of hours per week that are 45 comparable to the claimant's part time work during the majority of time 46 in the base period. 47 § 4. Section 601 of the labor law, as added by chapter 2 of the laws 48 of 1971, paragraphs (a) and (b) of subdivision 1, paragraph (e) of 49 subdivision 2, subdivisions 3 and 6 as amended and paragraph (f) of 50 subdivision 2 as added by chapter 554 of the laws of 1982, clause (i) of 51 subparagraph 1 of paragraph (a) of subdivision 1 as amended by section 3 52 of chapter 554 of the laws of 1982, paragraphs (c) and (d) of subdivi- 53 sion 2 as amended by chapter 1035 of the laws of 1981, subdivision 4 as 54 amended by chapter 589 of the laws of 1998, subdivision 5 as amended by 55 chapter 1034 of the laws of 1981 and paragraph (f) of subdivision 5 as 56 added by chapter 341 of the laws of 1993, is amended to read as follows:
S. 4110 3 1 § 601. Extended benefits. 1. Definitions. For the purposes of this 2 section: 3 (a) (1) There shall be a "state 'on' indicator" for a week if, as 4 determined by the commissioner in accordance with the regulations of the 5 secretary of labor of the United States, the rate of insured unemploy- 6 ment for the period consisting of such week and the preceding twelve 7 weeks [
equals or exceeds] 8 (i) equaled or exceeded five [ percentum] per centum and 9 (ii) equaled or exceeded one hundred and twenty [ percentum] per centum 10 of the average of such rates for the corresponding thirteen-week periods 11 ending in each of the preceding two calendar years; or 12 (iii) for weeks of unemployment beginning on or after February first, 13 two thousand nine until the week ending three weeks prior to the last 14 week for which one hundred percent federal sharing is authorized by 15 section 2005(a) of Public Law 111-5, or for weeks of unemployment ending 16 three weeks prior to the last week for which Congress, pursuant to any 17 future amendment of the Federal State Extended Compensation Act of 1970, 18 has authorized one hundred percent federal sharing, which meet the 19 following: 20 (A) the average rate of total unemployment (seasonably adjusted), as 21 determined by the United States secretary of labor, for the period 22 consisting of the most recent three months for which data for all states 23 are published before the close of such week equals or exceeds six and 24 one-half percent, and 25 (B) the average rate of total unemployment in the state (seasonably 26 adjusted), as determined by the United States secretary of labor, for 27 the three-month period referred to in item (A) of this clause, equals or 28 exceeds one hundred ten percent of the average for either or both of the 29 corresponding three-month periods ending in the two preceding calendar 30 years; or 31 (iv) for any period of high unemployment which shall otherwise meet 32 all of the provisions of clause (iii) of this subparagraph, except that 33 "eight percent" is substituted for "six and one-half percent" in item 34 (A) of clause (iii) of this subparagraph. 35 (2) There shall be a "state 'off' indicator" for a week [ if, as deter-36 mined by the commissioner in accordance with the regulations of the37 secretary of labor of the United States, for the period consisting of38 such week and the preceding twelve weeks either of the conditions set39 forth under (i) or (ii) of subparagraph (1) is not met] only, if for the 40 period consisting of such week and the immediately preceding twelve 41 weeks, none of the options specified in subparagraph one of this para- 42 graph result in an "on" indicator. Notwithstanding any provision of 43 this article, there shall be a "state 'off' indicator" with respect to 44 clauses (iii) and (iv) of subparagraph one of this paragraph for the 45 week ending three weeks prior to the last week for which one hundred 46 percent federal sharing is authorized by section 2005(a) of Public Law 47 111-5 or for the week ending three weeks prior to the last week for 48 which Congress, pursuant to any future amendment of the Federal State 49 Extended Compensation Act of 1970, has authorized one hundred percent 50 federal sharing. 51 (3) "Rate of insured unemployment" means for the purposes of this 52 paragraph the percentage obtained upon dividing the average weekly 53 number of persons filing claims for regular benefits in this state for 54 unemployment with respect to the most recent thirteen consecutive week 55 period, as determined by the commissioner on the basis of his or her 56 reports to the secretary of labor of the United States, by the average
S. 4110 4 1 monthly employment subject to this article for the first four of the 2 last six calendar quarters ending before the end of such period. Compu- 3 tations required hereunder shall be made in accordance with regulations 4 prescribed by the secretary of labor of the United States. 5 (4) "Rate of total unemployment" means, for the purposes of this para- 6 graph, the average percentage obtained by dividing the total number of 7 unemployed residents of the state for the most recent three consecutive 8 months, as determined by the United States Bureau of Labor Statistics, 9 by the total civilian labor force of the state for the same three-month 10 period, also as determined by the United States Bureau of Labor Statis- 11 tics. Computations required hereunder shall be made in accordance with 12 regulations prescribed by the secretary of labor of the United States. 13 (b) "Extended benefit period" means a period 14 (1) beginning with the third week after the first week for which there 15 is a state "on" indicator, except that it may not begin before the four- 16 teenth week after the end of a prior extended benefit period, and 17 (2) ending with the third week after the first week for which there is 18 a state "off" indicator, except that the duration of such period shall 19 in no event be less than thirteen weeks. 20 [
(d)] (c) "Eligibility period" of a claimant means the period consist- 21 ing of the weeks in his or her benefit year which begin in an extended 22 benefit period and, if his or her benefit year ends within such extended 23 benefit period, any weeks thereafter which begin in such period. 24 Notwithstanding any provision of this article, a claimant's eligibility 25 period shall include any alternative eligibility period provided for in 26 section 2005(b) of Public Law 111-5 or other federal law. 27 [ (e)] (d) "Extended benefits" means benefits, including benefits paya- 28 ble to federal civilian employees and to ex-servicemen pursuant to 5 29 U.S.C. chapter 85, payable to a claimant under the provisions of this 30 section for unemployment in his or her eligibility period. 31 [ (f)] (e) "Regular benefits" means benefits payable to a claimant 32 under this article or under any other State unemployment insurance law, 33 including benefits payable to federal civilian employees and to ex-ser- 34 vicemen pursuant to 5 U.S.C. chapter 85, other than extended benefits. 35 2. Eligibility conditions. Extended benefits shall be payable to a 36 claimant for effective days occurring in any week within an eligibility 37 period, provided the claimant 38 (a) has exhausted his or her rights to regular benefits under this 39 article in his or her current benefit year or, his or her benefit year 40 having expired prior to such week, he or she does not have the required 41 weeks of employment or earnings to establish a new benefit year, and he 42 or she has no rights to benefits under the unemployment insurance law of 43 any other state; 44 (b) has no rights to unemployment benefits or allowances under the 45 railroad unemployment insurance act, the trade expansion act of nineteen 46 hundred sixty-two, the automotive products trade act of nineteen hundred 47 sixty-five, or such other federal laws as are specified in regulations 48 issued by the secretary of labor of the United States; 49 (c) has not received and is not seeking unemployment benefits under 50 the unemployment compensation law of the Virgin Islands or of Canada 51 unless, if he or she is seeking such benefits, the appropriate agency 52 finally determines that he or she is not entitled to benefits under such 53 law; 54 (d) has satisfied the conditions of this article, required to render a 55 claimant eligible for regular benefits, which are applicable to extended
S. 4110 5 1 benefits, including not being subject to a disqualification or suspen- 2 sion; [
and] 3 (e) is not claiming benefits pursuant to an interstate claim filed 4 under the interstate benefit payment plan in a state where an extended 5 benefit period is not in effect, except that this condition shall not 6 apply with respect to the first eight effective days for which extended 7 benefits shall otherwise be payable pursuant to an interstate claim 8 filed under the interstate benefit payment plan; and 9 (f) in his or her base period has [ twenty weeks of full time employ-10 ment subject to this article or] remuneration [ which equals or exceeds11 forty times his most recent benefit rate] of one and one-half times the 12 high calendar quarter earnings in accordance with section five hundred 13 twenty-seven of this article. 14 3. Extended benefit amounts; rate and duration. Extended benefits 15 shall be paid to a claimant 16 (a) at a rate equal to his or her rate for regular benefits during his 17 or her applicable benefit year but 18 (b) for not more than fifty-two effective days with respect to his or 19 her applicable benefit year, with a total maximum amount equal to fifty 20 percentum of the total maximum amount of regular benefits payable in 21 such benefit year, and 22 (c) if a claimant's benefit year ends within an extended benefit peri- 23 od, the remaining balance of extended benefits to which he or she would 24 be entitled, if any, shall be reduced by the number of effective days 25 for which he or she was entitled to receive trade readjustment allow- 26 ances under the federal trade act of nineteen hundred seventy-four 27 during such benefit year, and 28 (d) for periods of high unemployment for not more than eighty effec- 29 tive days with respect to the applicable benefit year with a total maxi- 30 mum amount equal to eighty percent of the total maximum amount of regu- 31 lar benefits payable in such benefit year. 32 4. Charging of extended benefits. The provisions of paragraph (e) of 33 subdivision one of section five hundred eighty-one of this article shall 34 apply to benefits paid pursuant to the provisions of this section, and 35 if they were paid for effective days occurring in weeks following the 36 end of a benefit year, they shall be deemed paid with respect to that 37 benefit year. However, except for governmental entities as defined in 38 section five hundred sixty-five and Indian tribes as defined in section 39 five hundred sixty-six of this article, only one-half of the amount of 40 such benefits shall be debited to the employers' account; the remainder 41 thereof shall be debited to the general account, and such account shall 42 be credited with the amount of payments received in the fund pursuant to 43 the provisions of the federal-state extended unemployment compensation 44 act. Notwithstanding the foregoing, where the state has entered an 45 extended benefit period triggered pursuant to subparagraph one of para- 46 graph (a) of subdivision one of this section for which federal law 47 provides for one hundred percent federal sharing of the costs of bene- 48 fits, all charges shall be debited to the general account and such 49 account shall be credited with the amount of payments received in the 50 fund pursuant to the provisions of the federal-state extended unemploy- 51 ment compensation act or other federal law providing for one hundred 52 percent federal sharing for the cost of such benefits. 53 5. Applicability of other provisions. (a) Unless inconsistent with the 54 provisions of this section, all provisions of this article shall apply 55 to [ entended] extended benefits in the same manner as they apply to 56 regular benefits.
S. 4110 6 1 (b) No days of total unemployment shall be deemed to occur in any week 2 within an eligibility period during which a claimant fails to accept any 3 offer of suitable work or fails to apply for suitable work to which he 4 or she was referred by the commissioner, who shall make such referral if 5 such work is available, or during which he or she fails to engage 6 actively in seeking work by making a systematic and sustained effort to 7 obtain work and providing tangible evidence of such effort, and until he 8 or she has worked in employment during at least four subsequent weeks 9 and earned remuneration of at least four times his or her benefit rate. 10 (c) For purposes of this subdivision, "suitable work" means any 11 employment which is within the claimant's capabilities, but if he or she 12 furnishes evidence that his or her prospects for obtaining work in his 13 or her customary occupation within a reasonably short period are good, 14 the provisions of subdivision two of section five hundred ninety-three 15 of this article shall apply instead of the provisions hereof. 16 (d) Notwithstanding the foregoing, a claimant shall not be disquali- 17 fied for a failure to accept an offer of or apply for suitable work if 18 (i) the gross average weekly remuneration payable for the employment 19 does not exceed the claimant's benefit rate plus the amount of any 20 supplemental unemployment compensation benefits (as defined in section 21 five hundred one (c) (17) (D) of the internal revenue code of nineteen 22 hundred fifty-four) payable to the claimant for such week; or 23 (ii) the employment was not offered to the claimant in writing and was 24 not listed with the department; or 25 (iii) such failure would not result in denial of regular benefits, to 26 the extent that the provisions of this article for payment of regular 27 benefits are not inconsistent with the provisions of this subdivision; 28 or 29 (iv) the employment pays wages less than the higher of the minimum 30 wage provided by section six (a) (1) of the fair labor standards act of 31 nineteen hundred thirty-eight, without regard to any exemption, or the 32 minimum wage provided under this chapter; or 33 (v) the claimant is in approved training pursuant to section five 34 hundred ninety-nine of this title. 35 (e) No days of total unemployment shall be deemed to occur in any week 36 within an eligibility period [
with respect to a claimant who was37 disqualified for twelve months for an act constituting a felony as38 provided in subdivision four of] under section five hundred ninety-three 39 of this article, until he or she has subsequently worked in employment 40 [ on not less than three days in each of four weeks or earned remunera-41 tion of at least two hundred dollars, whether during or subsequent to42 the twelve month period] in accordance with the requirements set forth 43 in section five hundred ninety-three of this article. 44 [ (f) The provisions of paragraphs (b), (c), (d) and (e) of subdivision45 five of this section shall not apply to weeks of unemployment beginning46 after March sixth, nineteen hundred ninety-three and before January47 first, nineteen hundred ninety-five.] 48 6. Suspension of condition for state indicators. The governor, by 49 executive order, upon advice by the [ industrial] commissioner and the 50 commissioner of [ commerce] economic development may for a period speci- 51 fied in the order suspend the applicability of the provisions of [ item] 52 clause (ii) of subparagraph [ (1)] one of paragraph (a) of subdivision 53 one of this section, or of the reference to such [ item] subparagraph one 54 in subparagraph [ (2)] two of such paragraph, or of both, if he or she 55 finds that such suspension is required in order to assure adequate 56 payment of benefits to unemployed workers in the state who are experi-
S. 4110 7 1 encing unemployment for an extended duration, provided the rate of 2 insured unemployment for the applicable period equals or exceeds six 3 [
percentum] per centum and such suspension is not in conflict with the 4 provisions of the federal-state extended unemployment compensation act. 5 The governor may at any time prolong or shorten the period specified in 6 such order. 7 § 5. This act shall take effect immediately.
BILL NUMBER: S4110 SPONSOR: ONORATO?????????????
TITLE OF BILL: An act to amend the labor law, in relation to unemployment insurance benefits and part-time work, voluntary separations from employment, and on/off indicators for extended unemployment insurance benefits; and in relation to extended benefits PURPOSE: The purpose of this bill is to conform the unemployment insurance (UI) law to federal statutory requirements necessary to allow the State to receive funds for unemployment insurance modernization, of which $29.5 million is reserved for UI administration and $412.7 million is primari- ly reserved for UI benefit payments to claimants under the "UI Modern- ization" portion of the American Recovery and Reinvestment Act of 2009 (ARRA). The bill also allows the Commissioner of Labor additional options in determining the "state on indicator" for extended unemploy- ment benefits when Congress has appropriated 100% federal reimbursement for such extended unemployment benefits, which will trigger Federally funded benefit payments under ARRA. The bill further makes technical changes to conform the New York State extended benefits statute to the Federal-State Extended Unemployment Compensation Act of 1970 and other more recent amendments to the State's UI Law. SUMMARY OF PROVISIONS: Section 1 of the bill would amend Labor Law § 593(1) to confirm that individuals who are voluntarily separated from employment due to compel- ling family reasons are eligible for UI benefits. Section 2 of the bill would amend Labor Law §§ 593(2) and 596(5) of the Labor Law to provide that individuals who have worked on a part-time basis for the majority of time during their base period shall remain eligible to receive UI benefits if they are available to work a corre- sponding number of hours in new employment, and may not be disqualified from receiving benefits due to their refusal to accept full-time employ- ment. Section 3 of the bill would make various changes to Labor Law § 601, as follows: * Labor Law § 601(1)(a)(1) would be amended to expand the definition of "state on indicator" to add an optional "state on indicator" using the State's Total Unemployment Rate (TUR), whenever Congress has appropri- ated funds to fully reimburse the benefit costs from the State UI Trust Fund resulting thereunder, as has occurred under ARRA. * Labor Law § 601(1)(a)(2) would be amended to provide that the defi- nition of "state off indicator" is only applicable if none of the options specified in subparagraph 1 result in an "on" indicator. * A new Labor Law § 601(1)(a)(4) would be added to provide a definition for the term "rate of total unemployment." Labor Law § 601(1)(a)(4) would be amended to extend the eligibility period to include the alternate eligibility period provided for in Section 2005(b) of Public Law 111-5 or other federal law. * The definitions of "extended benefits" and "regular benefits" in Labor Law § 601 would be amended to conform to definitions found in federal law and to reflect the alternative extended benefits eligibility period set forth in ARRA. Labor Law § 601(2)(t) would be amended to conform language setting forth the earnings requirements for UI eligibility contained in UI Reform legislation enacted as Chapter 589 of the Laws of 1998 with federal law. * Labor Law § 601(3) would be amended to provide for additional benefits during "periods of high unemployment," provided Congress provides for 100% sharing of the benefit costs resulting thereunder. * Labor Law § 601(4) would be amended to conform the UI benefit charging provisions related to Indian tribes to corresponding language in recent federal legislation covering this topic. This section is also amended to provide that benefit costs for an extended benefit program that are subject to 100% federal sharing shall be charged to the UI general account and credited with such federal payments received in the fund. * Labor Law § 601(5) would be amended to provide an exclusion authorized by federal law relating to work search requirements for claimants in approved training programs, and to conform state law to federal law provisions related to disqualifying circumstances and the subsequent work requirements for reestablishing eligibility under Labor Law § 593. Section 4 provides that the bill would become effective immediately. EXISTING LAW: Labor Law § 593(1) provides that a voluntary separation from employment may be deemed to be with good cause if such separation was as a conse- quence of circumstances directly resulting from the claimant being a victim of domestic violence. Labor Law § 593(2) provides that a claimant shall not be deemed ineligi- ble to receive unemployment benefits as a consequence of refusing to accept employment under certain defined circumstances. Labor Law § 596(5) provides that a claimant who is unable or unwilling to work usual full-time hours, and customarily works less than the full time hours prevailing in the place of employment, shall register as a short time worker, and the time which such claimant normally works in any calendar week shall be deemed his week of full-time employment. Labor Law § 601 provides that a state "on indicator" for extended bene- fits may be established only by reference to the State's Insured Unem- ployment Rate (IUR). The federal reimbursement rate for extended bene- fits paid using the IUR trigger is 50%. Labor Law § 601(1)(a)(4) defines "eligibility period" to mean the period consisting of the weeks within a claimant's benefit year which begin within an extended benefit period until the end of an extended benefit period. Labor Law § 601(2)(t) provides that, in order to receive extended bene- fits, a claimant must have twenty weeks of full-time employment or remuneration which equals forty times his most recent benefit rate. Labor Law § 601(4) provides that governmental entities must be charged for 100% of the cost of extended benefits because such entities may not receive any share of the federal reimbursement. This section also provides that extended benefits will generally be charged fifty percent to employer accounts and fifty percent to the ill general account, which latter account will be credited with federal funds received pursuant to the federal-state extended unemployment compensation act. PRIOR LEGISLATIVE HISTORY: None. This is a new proposal. JUSTIFICATION: The American Recovery and Reinvestment Act of 2009 (ARRA) contains financial incentives for states to modernize their UI laws to make bene- fits more widely and equitably available to the unemployed. These "UI Modernization" incentives would bring nearly $442.2 million of federal funds to New York in the form of an additional $412.7 million dollars in ill benefit money and an additional $29.5 million in UI administrative dollars. One-third of the benefit funds will come to New York by virtue of having provisions which allow an alternative base period for UI eligibility. However, in order for the State to qualify for the remain- ing two thirds of such federal dollars (Le. $275 million), New York State law must contain at least two out of four alternative provisions related to benefit eligibility. New York law already arguably meets the UI Modernization requirements relating to part-time work and voluntary separation for compelling fami- ly reasons. The State's eligibility is, however, based upon the Secre- tary of Labor's reading of case law and decisions implementing New York UI law. Given that $275 million of federal funding is at stake, prudence dictates that state law provisions clearly contain language that meets the requirements of ARRA in this regard, so that there is no doubt as to the State's eligibility to receive this funding. The statutory changes regarding both part-time work (Labor Law §§ 596(5) and 593(2)) and voluntary separations due to compelling family reasons (Labor Law Section § 593(1)) set forth in this bill accomplish this goal and have already been approved by the VSDOL as meeting the language requirements set forth in ARRA. Therefore, passage of this bill will ensure that $275 million in UI Modernization funds will come to New York in accordance with the provisions of the ARRA. The vast majority of these dollars will go to benefit payments and will help to address a UI Trust Fund short- fall which is expected to be significant over the next year or more. Other statutory amendments contained in this bill would create an alter- nate trigger for thirteen weeks of additional extended benefits for the State's eligible unemployed based upon the State's TUR. At present, the IUR is New York State's only available trigger. The amendment would make the TUR alternative trigger option available to the Commissioner only if the Congress has appropriated funds to pay 100% of the costs of such extended benefits (except for the State, localities and Indian tribes.) If such federal funds are not available, and the federal government will reimburse states for the cost of benefits at a 50% reimbursement rate, the extended benefit provisions requiring use of the IUR must be used as the on/off indicator. The Department projects that the IUR is not likely to trigger on this year so that the period of 100% reimbursement under the IUR would not likely become effective. In light of this circumstance, the availability of federal funds to reimburse states for extended benefits under ARRA will likely only apply if the State uses the TUR trigger. The Unemployment Compensation Amend- ments of 1992 authorized states to add this optional trigger, but New York State did not do so. At the time, the reimbursement rate offered states as an incentive was 50%. Under ARRA, Congress has provided a 100% reimbursement rate for extended benefits in states triggering on using the TUR. Currently, over 120,000 New Yorkers are receiving extended benefits under the existing 2008 Emergency Unemployment Compensation program. Assuming the same number of New Yorkers would qualify for the federal regular extended benefits program, at an average benefit rate of $311 per week, the thirteen weeks of extended benefits covered by this part of the proposal cost approximately $370 million. New York's most recently calculated TUR of 6.6 percent meets this trigger threshold. Without the statutory authority to use this alternative trigger, New York would not currently qualify for extended benefits since its IUR falls short of the 5% trigger. Unless the IUR rises significantly in the short term, New York will be forced to forego the 100% federal reimbursement for these extended benefits valued at $370 million. The end result of the failure to enact an alternate trigger is that unem- ployed New Yorkers could lose hundreds of millions of dollars of extended benefits, which would otherwise have been released into the local and state economies in the form of payments for items such as food, housing, clothing, utilities, and sales taxes. In light of current economic conditions, the State must do all it can to deliver UI benefits to the unemployed, and make maximum use of all funds available to meet its UI costs and lower the deficit in the State's UI Trust Fund. FISCAL IMPLICATIONS: The changes proposed in this legislation will bring an estimated $645 million in new federal funding to New York to cover the costs of UI benefits, extended benefits, and the administration of the State UI system. The bill would increase costs on the State and localities, for which benefits are not federally funded under ARRA, by $4 million and $26 million respectively. These added costs will be offset, in part, by increased tax revenue from recipients of UI benefits. EFFECTIVE DATE: This proposal would take effect immediately upon enactment.