Senate Bill S6767

                                 
BILL NUMBER: S6767

SPONSOR: BORRELLO
 
TITLE OF BILL:

An act to amend the labor law, in relation to suspending employer
contributions to the interest assessment surcharge fund; making an
appropriation to pay interest due on advances from the federal unemploy-
ment account; and providing for the repeal of such provisions upon the
expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL::

This bill would suspend employer contributions to the interest assess-
ment surcharge fund until December 31, 2027, and appropriates funds from
the Economic Uncertainties Fund to replace such contributions.

 
SUMMARY OF PROVISIONS::

Section one of the bill amends section 581-d of the Labor Law to suspend
employer contributions to the interest assessment surcharge fund until
December 31, 2027.
              

Section two of the bill appropriates $500 million from the Economic
Uncertainties Fund for the purpose of replacing such employer contrib-
utions during the suspended period.

Section three of the bill establishes the effective date. JUSTIFICATION:
Title XII of the Social Security Act permits the Governor of a state to
request repayable advances from the Federal Unemployment Trust Fund
Account for any three consecutive month period during which reserves in
the state account in the Unemployment Trust Fund are insufficient to pay
benefits. The Department of Treasury currently levies an interest rate
of 2.61% on the total amount of advances that are provided to a State.
As of December 30, 2024, the outstanding balance for New York State's
Title XII advances is $6.3 billion, and in 2022 the interest assessment
surcharge which the State paid was approximately $160 million.

The Economic Uncertainties Fund is a pot of money that is unappropriated
from settlement funds that the state has received. By using this appro-
priation, it would be cash funds that are available to replace employer
contributions to the interest assessment surcharge fund.

Pursuant to Section 581-d of the Labor Law, once the total amount of
federal interest charges have been paid, the excess funds allocated to
the interest assessment surcharge fund shall be deposited into the State
Unemployment Insurance Trust Fund Account and credited to employer
accounts.

 
PRIOR LEGISLATIVE HISTORY::

A.2982 (2023-2024) - referred to Labor

A.7211 (2021-2022) - held for consideration in Labor

 
FISCAL IMPLICATION::D FOR STATE AND LOCAL GOVERNMENT:

None to state.

 
EFFECTIVE DATE::

This act shall take effect immediately