SB 11

       Senate Bill No. 11–Committee on Commerce and Labor
                               CHAPTER..........
AN ACT relating to unemployment compensation; requiring that
    weekly and total extended benefit amounts payable to a
    person be reduced under certain circumstances; and
    providing other matters properly relating thereto.
Legislative Counsel’s Digest:
    The Unemployment Compensation Law, in general, makes persons who have
become unemployed and comply with certain requirements eligible for benefits
from the Unemployment Compensation Fund in an amount based on the person’s
previous wages for employment. (Chapter 612 of NRS) Existing law provides for
the payment of extended unemployment benefits to a person who has exhausted his
or her regular unemployment benefits and who meets certain eligibility
requirements during an extended benefit period. (NRS 612.377, 612.3774)
    The Balanced Budget and Emergency Deficit Control Act of 1985 requires the
President of the United States to issue an order triggering certain automatic
spending reductions, known as sequestration, if certain budgetary goals have not
been met. (Pub. L. No. 99-177, as amended) While certain federal payments
relating to unemployment compensation are exempt from sequestration, federal
payments to a state for the federal share of extended unemployment benefits are not
exempt. (2 U.S.C. § 906(i)(1)) Existing federal law authorizes a state to reduce each
weekly payment of extended unemployment benefits for any week of
unemployment during any period in which federal payments to the state are
reduced under a sequestration order by a percentage not to exceed the percentage
by which the federal payment to the state is to be reduced for the week as a result of
the order. (2 U.S.C. § 906(i)(2))
    Section 2 of this bill requires that the weekly extended benefit amount payable
to a person be reduced for any week during a period in which federal payments to
this State are reduced as a result of sequestration by a percentage equal to the
percentage of the reduction in the federal payment. Section 3 of this bill requires
that the total extended benefit amount payable to a person for a benefit year be
reduced by an amount equal to the aggregate of the reductions made to the person’s
weekly extended benefit amounts pursuant to section 2. Section 1 of this bill makes
a conforming change to update an internal reference renumbered by section 3.
    The United States Department of Labor has issued guidance concerning the
amendment of state law to provide for reductions to extended unemployment
benefits due to sequestration. The guidance specifies that a state which provides for
such reductions is required to provide notice to a claimant and an opportunity to
appeal the calculation of the amounts. The guidance additionally provides that the
required notice should inform claimants that an appeal of the sequestration
reduction itself will not succeed, as sequestration is mandated by federal law. (U.S.
Dept. of Labor UIPL 7-24 (2024))
    Section 2 requires the Administrator of the Employment Security Division of
the Department of Employment, Training and Rehabilitation to provide a notice
containing certain information to any person whose weekly extended benefit
amount has been reduced as a result of sequestration. Section 2 also authorizes
such a person to appeal the calculation of the amount of the reduced weekly
extended benefit amount. Under section 2, such an appeal is limited to the
calculation of the amount of the reduced weekly benefit amount and is prohibited
from addressing the reduction itself.
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 EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
   THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
      SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
    Section 1. NRS 612.377 is hereby amended to read as follows:
    612.377 As used in NRS 612.377 to 612.3786, inclusive,
unless the context clearly requires otherwise:
    1. “Extended benefit period” means a period which begins with
the third week after a week for which there is a Nevada “on”
indicator and ends with the third week after the first week for which
there is a Nevada “off” indicator or the 13th consecutive week after
it began, except that no extended benefit period may begin by
reason of a Nevada “on” indicator before the 14th week following
the end of a prior extended benefit period which was in effect for
Nevada, unless federal law authorizes an extended benefit period to
begin before the 14th week following the end of a prior extended
benefit period.
    2. There is a “Nevada ‘on’ indicator” for a week if the
Administrator determines, in accordance with the regulations of the
Secretary of Labor, that:
    (a) For the period consisting of that week and the immediately
preceding 12 weeks, the rate of insured unemployment in Nevada
(not seasonally adjusted) under NRS 612.377 to 612.3786,
inclusive:
       (1) Equaled or exceeded 120 percent of the average of those
rates for the corresponding 13-week period ending in each of the
preceding 2 calendar years and equaled or exceeded 5 percent; or
       (2) Equaled or exceeded 6 percent; or
    (b) For weeks of unemployment beginning on or after March 18,
2020, and ending on or before the week ending 4 weeks before the
last week for which full federal sharing is authorized by section
4105(a) of Public Law No. 116-127, or which occur during a period
of time specified by the Governor in a proclamation issued pursuant
to subsection [4] 5 of NRS 612.378, the average rate of total
seasonally adjusted unemployment in Nevada, as determined by the
Secretary of Labor, for the period consisting of the most recent 3
months for which data for all states are published before the close of
such week:
       (1) Equaled or exceeded 6.5 percent; and
       (2) Equaled or exceeded 110 percent of the average rate for
the corresponding 3-month period ending in either of the 2
preceding calendar years.
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    3. There is a “Nevada ‘off’ indicator” for a week if the
Administrator determines, in accordance with the regulations of the
Secretary of Labor, that for the period consisting of that week and
the immediately preceding 12 weeks, the rate of insured
unemployment in Nevada (not seasonally adjusted):
    (a) Was less than 120 percent of the average of those rates for
the corresponding 13-week period ending in each of the preceding 2
calendar years; or
    (b) Was less than 5 percent.
    4. “Rate of insured unemployment,” for purposes of
subsections 2 and 3, means the percentage derived by dividing the
average weekly number of persons filing claims in this State for the
weeks of unemployment for the most recent period of 13
consecutive weeks, as determined by the Administrator on the basis
of the Administrator’s reports to the Secretary of Labor using the
average monthly employment covered under this chapter as
determined by the Administrator and recorded in the records of the
Division for the first four of the most recent six completed calendar
quarters ending before the end of the 13-week period.
    5. “Regular benefits” means benefits payable to a person under
this chapter or under any other state law (including benefits payable
to federal civilian employees and to ex-servicemen or ex-
servicewomen pursuant to 5 U.S.C. §§ 8501 et seq.) other than
extended benefits.
    6. “Extended benefits” means benefits (including benefits
payable to federal civilian employees and to ex-servicemen or ex-
servicewomen pursuant to 5 U.S.C. §§ 8501 et seq.) payable to a
person under the provisions of NRS 612.377 to 612.3786, inclusive,
for the weeks of unemployment in the person’s eligibility period.
    7. “Additional benefits” means benefits payable to exhaustees
by reason of conditions of high unemployment or by reason of other
special factors under the provisions of any state law. Any person
who is entitled to both additional and extended benefits for the same
week must be given the choice of electing which type of benefit to
claim regardless of whether his or her rights to additional and
extended benefits arise under the law of the same state or different
states.
    8. “Eligibility period” of a person means the period consisting
of the weeks in the person’s benefit year under this chapter which
begin in an extended benefit period and, if that benefit year ends
within the extended benefit period, any weeks thereafter which
begin in that period.
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    9. “Exhaustee” means a person who, with respect to any week
of unemployment in the person’s eligibility period:
    (a) Has received, before that week, all of the regular, seasonal or
nonseasonal benefits that were available to him or her under this
chapter or any other state law (including augmented weekly benefits
for dependents and benefits payable to federal civilian employees
and ex-servicemen or ex-servicewomen under 5 U.S.C. §§ 8501 et
seq.) in the person’s current benefit year which includes that week,
except that, for the purposes of this paragraph, a person shall be
deemed to have received all of the regular benefits that were
available to him or her, although as a result of a pending appeal with
respect to wages that were not considered in the original monetary
determination in that benefit year, the person may subsequently be
determined to be entitled to added regular benefits; or
    (b) His or her benefit year having expired before that week, has
no, or insufficient, wages on the basis of which the person could
establish a new benefit year which would include that week,
 and has no right to unemployment benefits or allowances, as the
case may be, under the Railroad Unemployment Insurance Act, 45
U.S.C. §§ 351 et seq., the Trade Expansion Act of 1962, 19 U.S.C.
§§ 1801 et seq., the Automotive Products Trade Act of 1965, 19
U.S.C. §§ 2001 et seq. and such other federal laws as are specified
in regulations issued by the Secretary of Labor, and has not received
and is not seeking unemployment benefits under the unemployment
compensation law of Canada. If the person is seeking such benefits
and the appropriate agency finally determines that the person is not
entitled to benefits under that law the person is considered an
exhaustee.
    10. “State law” means the unemployment insurance law of any
state, approved by the Secretary of Labor under Section 3304 of the
Internal Revenue Code of 1954.
    Sec. 2. NRS 612.3776 is hereby amended to read as follows:
    612.3776 [The]
    1. Except as otherwise provided in subsection 2, the weekly
extended benefit amount payable to a person for a week of total
unemployment in the person’s eligibility period is:
    [1.] (a) The basic weekly benefit amount or the augmented
weekly benefit amount, whichever is appropriate, payable to the
person for the applicable benefit year; or
    [2.] (b) The average of the weekly benefit amounts for weeks of
total unemployment payable in the applicable benefit year if the
person was entitled to more than one weekly rate. If the amount
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computed in accordance with this [subsection] paragraph is not a
multiple of $1 it must be computed to the next lower multiple of $1.
    2. For any week during a period in which federal payments
made to this State pursuant to section 204 of the Federal-State
Extended Unemployment Compensation Act of 1970, Public Law
91-373, as amended, are reduced pursuant to an order issued
pursuant to section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985, Public Law 99-177, as amended, the
weekly extended benefit amount payable to a person for a week of
total unemployment in the person’s eligibility period must be
reduced by a percentage equal to the percentage of the reduction
in the federal payment. If the reduced weekly extended benefit
amount computed in accordance with this subsection is not a
multiple of $1 it must be computed to the next lower multiple
of $1.
    3. The Administrator shall provide timely notice to any
person whose weekly extended benefit amount is reduced pursuant
to subsection 2. The notice must:
    (a) Inform the person of the reduction in his or her weekly
extended benefit amount;
    (b) Include the specific calculation of the reduced weekly
extended benefit amount;
    (c) Inform the person of his or her right to appeal the
calculation of the reduced weekly benefit amount pursuant to
subsection 4; and
    (d) State that an appeal of the reduction itself, which is
required by sequestration pursuant to the order issued pursuant to
section 254 of the Balanced Budget and Emergency Deficit
Control Act of 1985, Public Law 99-177, as amended, will not
succeed, as such a reduction is mandated by federal law.
    4. A person whose weekly extended benefit amount has been
reduced pursuant to subsection 2 may appeal the calculation of
the reduced weekly extended benefit amount. The appeal must be
made in the manner provided in this chapter for the appeals from
determinations of benefit status. Such an appeal must be limited to
the calculation of the reduced weekly extended benefit amount
and may not address the reduction itself.
    Sec. 3. NRS 612.378 is hereby amended to read as follows:
    612.378 1. Except as otherwise provided in [subsection]
subsections 2 [,] and 3, the total extended benefit amount payable to
any eligible person for the person’s applicable benefit year is the
lesser of the following amounts:
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    (a) Fifty percent of the basic benefits which were payable to him
or her in the benefit year. If the amount computed is not a multiple
of $1, it must be computed to the next lower multiple of $1.
    (b) Thirteen times the person’s average weekly benefit amount
which was payable to him or her under this chapter for a week of
total unemployment in the applicable benefit year. If the amount
computed is not a multiple of $1, it must be computed to the next
lower multiple of $1.
    (c) Thirty-nine times the person’s average weekly benefit
amount which was payable to him or her under this chapter for a
week of total unemployment in the applicable benefit year, reduced
by the basic benefits which were payable to him or her in the benefit
year. If the amount computed is not a multiple of $1, it must be
computed to the next lower multiple of $1.
    2. In weeks beginning in a high unemployment period on or
after March 18, 2020, and ending on or before the week ending 3
weeks before the last week for which full federal sharing is
authorized by section 4105(a) of Public Law No. 116-127, or which
occur during a period of time specified by the Governor in a
proclamation issued pursuant to subsection [4,] 5, the total extended
benefit amount payable to any eligible person for the person’s
applicable benefit year is the lesser of the following amounts:
    (a) Eighty percent of the basic benefits which were payable to
him or her in the benefit year. If the amount computed is not a
multiple of $1, it must be computed to the next lower multiple of $1.
    (b) Twenty times the person’s average weekly benefit amount
which was payable to him or her under this chapter for a week of
total unemployment in the applicable benefit year. If the amount
computed is not a multiple of $1, it must be computed to the next
lower multiple of $1.
    (c) Forty-six times the person’s average weekly benefit amount
which was payable to him or her under this chapter for a week of
total unemployment in the applicable benefit year, reduced by the
basic benefits which were payable to him or her in the benefit year.
If the amount computed is not a multiple of $1, it must be computed
to the next lower multiple of $1.
    3. During any fiscal year in which federal payments made to
this State pursuant to section 204 of the Federal-State Extended
Unemployment Compensation Act of 1970, Public Law No. 91-
373, as amended, are reduced pursuant to an order issued
pursuant to section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985, Public Law No. 99-177, as amended,
the total extended benefit amount payable to an eligible person for
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the person’s applicable benefit year pursuant to subsection 1 must
be reduced by an amount equal to the aggregate of the reductions
made to his or her weekly extended benefit amounts pursuant to
subsection 2 of NRS 612.3776.
    4. If the benefit year of any person ends within an extended
benefit period, the remaining balance of extended benefits that the
person would, but for this subsection, be entitled to receive in that
period, with respect to weeks of unemployment beginning after the
end of the benefit year, must be reduced by the product of the
number of weeks for which the person received any amounts as
trade readjustment allowances pursuant to 19 U.S.C. § 2291 within
that benefit year, multiplied by the weekly benefit amount of
extended benefits, but the balance must not be reduced below zero.
    [4.] 5. If the Governor determines that a federal law authorizes
full federal sharing for one or more weeks to cover the costs of
extended benefits incurred pursuant to subsection 2, the Governor
shall issue a proclamation stating that determination and specifying
the weeks during which the extended benefits are available.
    [5.] 6. As used in this section, “high unemployment period”
means any period during which the average rate of total seasonally
adjusted unemployment in Nevada, as determined by the Secretary
of Labor, for the period consisting of the most recent 3 months for
which data for all states are published before the close of such week:
    (a) Equaled or exceeded 8 percent; and
    (b) Equaled or exceeded 110 percent of the average rate for the
corresponding 3-month period ending in either of the 2 preceding
calendar years.
    Sec. 4. This act becomes effective upon passage and approval.
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