SB11

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 am