(a) Duties and Powersof Commission. It shall be the duty of the Commission to administer thisChapter. The Commission shall meet at least once in each 60 days and may holdspecial meetings at any time at the call of the chairman or any three membersof the Commission, and the Commission shall have power and authority to adopt,amend, or rescind such rules and regulations, to employ such persons, make suchexpenditures, require such reports, make such investigations, and take suchother action as it deems necessary or suitable in the administration of thisChapter. Such rules and regulations shall be effective upon publication in themanner, not inconsistent with the provisions of this Chapter, which theCommission shall prescribe. The Commission shall determine its own organizationand methods of procedure in accordance with the provisions of this Chapter, andshall have an official seal which shall be judicially noticed. The chairman ofsaid Commission shall, except as otherwise provided by the Commission, bevested with all authority of the Commission, including the authority to conducthearings and make decisions and determinations, when the Commission is not insession and shall execute all orders, rules and regulations established by saidCommission. Not later than November 20 preceding the meeting of the GeneralAssembly, the Commission shall submit to the Governor a report covering theadministration and operation of this Chapter during the preceding biennium, andshall make such recommendation for amendments to this Chapter as the Commissiondeems proper. Such report shall include a balance sheet of the moneys in thefund in which there shall be provided, if possible, a reserve against theliability in future years to pay benefits in excess of the then currentcontributions, which reserve shall be set up by the Commission in accordancewith accepted actuarial principles on the basis of statistics of employment,business activity, and other relevant factors for the longest possible period.Whenever the Commission believes that a change in contribution or benefit rateswill become necessary to protect the solvency of the fund, it shall promptly soinform the Governor and the legislature, and make recommendations with respectthereto.
(b) Regulations andGeneral and Special Rules. General and special rules may be adopted, amended,or rescinded by the Commission only after public hearing or opportunity to beheard thereon, of which proper notice has been given by mail to the last knownaddress in cases of special rules, or by publication as herein provided, and byone publication as herein provided as to general rules. The Commission shallnot take final action on a general or special rule that has a substantialeconomic impact, as defined in G.S. 150B‑21.4(b1), until 60 days afterthe Office of State Budget and Management has prepared a fiscal note for therule. General rules shall become effective 10 days after filing with theSecretary of State and publication in one or more newspapers of generalcirculation in this State. Special rules shall become effective 10 days afternotification to or mailing to the last known address of the individuals orconcerns affected thereby. Before the adoption, amendment, or repeal of anypermanent regulation, the Commission shall publish notice of the public hearingand offer any person an opportunity to present data, opinions, and arguments.The notice shall be published in one or more newspapers of general circulationin this State at least 10 days before the public hearing and at least 20 daysprior to the proposed effective date of the proposed permanent regulation. Thepublished notice of public hearing shall include the time and place of thepublic hearing; a statement of the manner in which data, opinions, andarguments may be submitted to or before the Commission; a statement of theterms or substance of the proposed regulation; a statement of whether a fiscalnote has been or will be prepared for the proposed regulation; and the proposedeffective date of the regulation. Any permanent regulation adopted afterfollowing the above procedure shall become effective on its effective date andafter it is published in the manner provided for in subsection (c) as well assuch additional publication as the Commission deems appropriate. Additionally,the Commission shall provide notice of adoption by mail to the last knownaddresses of all persons who submitted data, opinions, or arguments to theCommission with respect to the regulation. Temporary regulations may beadopted, amended, or rescinded by the Commission and shall become effective inthe manner and at the time prescribed by the Commission but shall remain inforce for no longer than 120 days.
(c) Publication. TheCommission shall cause to be printed for distribution to the public the text ofthis Chapter, the Commission's regulations and general rules, and any othermaterial the Commission deems relevant and suitable, and shall furnish the sameto any person upon application therefor. All publications printed shall complywith the requirements of G.S. 143‑170.1.
(d) Personnel. Subjectto other provisions of this Chapter, the Commission is authorized to appoint,fix the compensation, and prescribe the duties and powers of such officers,accountants, attorneys, experts, and other persons as may be necessary in theperformance of its duties. It shall provide for the holding of examinations todetermine the qualifications of applicants for the positions so classified, andexcept for temporary appointments not to exceed six months in duration, shallappoint its personnel on the basis of efficiency and fitness as determined insuch examinations. All positions shall be filled by persons selected andappointed on a nonpartisan merit basis. The Commission may delegate to any suchperson so appointed such power and authority as it deems reasonable and properfor the effective administration of this Chapter, and may, in its discretion,bond any person handling moneys or signing checks hereunder.
(e) Advisory Councils. The Governor shall appoint a State Advisory Council composed of men and womenrepresenting employers, employees, and the general public, in equal numbers.The Chairman of the Commission shall be a member of the State Advisory Counciland shall serve as its chairman. There shall be 15 members of the Council(other than its chairman) who shall each be appointed for a term of four years.A quorum of the State Advisory Council shall consist of the chairman, or suchappointed member as he may designate, plus one half of the total appointedmembers. The function of the Council shall be to aid the Commission informulating policies and discussing problems related to the administration ofthis Chapter. Each member of the State Advisory Council attending meetings ofthe Council shall be paid the same amount per diem for his services as isprovided for the members of other State boards, commissions, and committees whoreceive compensation for their services, including necessary time spent intraveling to and from his place of residence within the State to the place ofmeeting while engaged in the discharge of the duties of his office, and hisactual mileage and subsistence at the same rate allowed to State officials.
(f) EmploymentStabilization. The Commission, with the advice and aid of its advisorycouncils, and through its appropriate divisions, shall take all appropriatesteps to reduce and prevent unemployment; to encourage and assist in theadoption of practical methods of vocational training, retraining and vocationalguidance; to investigate, recommend, advise, and assist in the establishmentand operation, by municipalities, counties, school districts, and the State, ofreserves for public works to be used in times of business depression and unemployment;to promote the reemployment of unemployed workers throughout the State in everyother way that may be feasible; and to these ends to carry on and publish theresults of investigations and research studies.
(g) Records and Reports.
(1) Each employing unitshall keep true and accurate employment records, containing such information asthe Commission may prescribe. Such records shall be open to inspection and besubject to being copied by the Commission or its authorized representatives atany reasonable time and as often as may be necessary. Any employing unit doingbusiness in North Carolina shall make available in this State to theCommission, such information with respect to persons, firms, or other employingunits performing services for it which the Commission deems necessary inconnection with the administration of this Chapter. The Commission may requirefrom any employing unit any sworn or unsworn reports, with respect to personsemployed by it, which the Commission deems necessary for the effectiveadministration of this Chapter.
(2) If the Commissionfinds that any employer has failed to file any report or return required bythis Chapter or any regulation made pursuant hereto, or has filed a reportwhich the Commission finds incorrect or insufficient, the Commission may makean estimate of the information required from such employer on the basis of thebest evidence reasonably available to it at the time, and make, upon the basisof such estimate, a report or return on behalf of such employer, and the reportor return so made shall be deemed to be prima facie correct, and the Commissionmay make an assessment based upon such report and proceed to collectcontributions due thereon in the manner as set forth in G.S. 96‑10(b) ofthis Chapter: Provided, however, that no such report or return shall be madeuntil the employer has first been given at least 10 days' notice by registeredmail to the last known address of such employer: Provided further, that no suchreport or return shall be used as a basis in determining whether such employingunit is an employer within the meaning of this Chapter.
(h) Oaths andWitnesses. In the discharge of the duties imposed by this Chapter, thechairman and any duly authorized representative or member of the Commissionshall have power to administer oaths and affirmations, take depositions,certify to official acts, and issue subpoenas to compel the attendance ofwitnesses and the production of books, papers, correspondence, memoranda, andother records deemed necessary as evidence in connection with a disputed claimor the administration of this Chapter. Upon a motion, the chairman and any dulyauthorized representative or member of the Commission may quash a subpoena if,after a hearing, the Commission finds any of the following:
(1) The subpoenarequires the production of evidence that does not relate to a matter in issue.
(2) The subpoena failsto describe with sufficient particularity the evidence required to be produced.
(3) The subpoena issubject to being quashed for any other reason sufficient in law.
(h1) Hearing on Motion toQuash Subpoena; Appeal. A hearing on a motion to quash a subpoena pursuant tosubsection (h) of this section shall be heard at least 10 days prior to thehearing for which the subpoena was issued. The denial of a motion to quash asubpoena is subject to immediate judicial review in the Superior Court of WakeCounty or in the superior court of the county where the person subject to thesubpoena resides.
(i) Subpoenas. Incase of contumacy by, or refusal to obey a subpoena issued to any person by theCommission or its authorized representative, any clerk of a superior court ofthis State within the jurisdiction of which the inquiry is carried on or withinthe jurisdiction of which said person guilty of contumacy or refusal to obey isfound or resides or transacts business, upon application by the Commission, orits duly authorized representatives, shall have jurisdiction to issue to suchperson an order requiring such person to appear before the Commission, or itsduly authorized representatives, there to produce evidence if so ordered, orthere to give testimony touching upon the matter under investigation or inquestion; and any failure to obey such order of the said clerk of superiorcourt may be punished by the said clerk of superior court as a contempt of saidcourt. Any person who shall, without just cause, fail or refuse to attend andtestify or to answer any lawful inquiry or to produce books, papers,correspondence, memoranda, or other records in obedience to a subpoena of theCommission, shall be punished by a fine of not more than fifty dollars ($50.00)or by imprisonment for not longer than 30 days.
(j) Protection againstSelf‑Incrimination. No person shall be excused from attending andtestifying or from producing books, papers, correspondence, memoranda, andother records before the Commission or in obedience to the subpoena of theCommission or any member thereof, or any duly authorized representative of theCommission, in any cause or proceeding before the Commission, on the groundthat the testimony or evidence, documentary or otherwise, required of him maytend to incriminate him or subject him to a penalty or forfeiture; but noindividual shall be prosecuted or subjected to any penalty or forfeiture for oron account of any transaction, matter, or thing concerning which he iscompelled, after having claimed his privilege against self‑incrimination,to testify or produce evidence, documentary or otherwise, except that suchindividual so testifying shall not be exempt from prosecution and punishmentfor perjury committed in so testifying.
(k) State‑FederalCooperation. In the administration of this Chapter, the Commission shallcooperate, to the fullest extent consistent with the provisions of thisChapter, with the federal agency, official, or bureau fully authorized andempowered to administer the provisions of the Social Security Act approvedAugust 14, 1935, as amended, shall make such reports, in such form and containingsuch information as such federal agency, official, or bureau may from time totime require, and shall comply with such provisions as such federal agency,official, or bureau may from time to time find necessary to assure thecorrectness and verification of such reports; and shall comply with theregulations prescribed by such agency, official, or bureau governing theexpenditures of such sums as may be allotted and paid to this State under TitleIII of the Social Security Act for the purpose of assisting in theadministration of this Chapter. The Commission shall further make its recordsavailable to the Railroad Retirement Board, created by the Railroad RetirementAct and the Railroad Unemployment Insurance Act, and shall furnish to theRailroad Retirement Board at the expense of the Railroad Retirement Board, suchcopies thereof as the Board shall deem necessary for its purposes in accordancewith the provisions of section 303 (c) of the Social Security Act as amended.
Upon request therefor, theCommission shall furnish to any agency of the United States charged with theadministration of public works or assistance through public employment, thename, address, ordinary occupation, and employment status of each recipient ofbenefits, and such recipient's rights to further benefits under this Chapter.
The Commission is authorizedto make such investigations, secure and transmit such information, makeavailable such services and facilities and exercise such of the other powersprovided herein with respect to the administration of this Chapter as it deemsnecessary or appropriate to facilitate the administration of any employmentsecurity or public employment service law, and in like manner, to accept andutilize information, services and facilities made available to this State bythe agency charged with the administration of such other employment security orpublic employment service law.
The Commission shall fullycooperate with the agencies of other states and shall make every proper effortwithin its means to oppose and prevent any further action which would, in itsjudgment, tend to effect complete or substantial federalization of Stateunemployment insurance funds or State employment security programs.
(l) ReciprocalArrangements.
(1) The Commission is herebyauthorized to enter into reciprocal arrangements with appropriate and dulyauthorized agencies of other states or of the federal government, or both,whereby:
a. Services performedby an individual for a single employing unit for which services are customarilyperformed in more than one state shall be deemed to be services performedentirely within any one of the states
1. In which any part ofsuch individual's service is performed or
2. In which suchindividual has his residence or
3. In which the employingunit maintains a place of business, provided there is in effect, as to suchservices, an election by the employing unit, approved by the agency chargedwith the administration of such state's employment security law, pursuant towhich the services performed by such individual for such employing unit aredeemed to be performed entirely within such state.
b. Combining wagecredits. The Commission shall participate in any arrangements for the paymentof compensation on the basis of combining an individual's wages and employmentcovered under this Chapter with his wages and employment covered under one ormore laws of the federal government and the unemployment compensation laws ofother states which are approved by the United States Secretary of Labor inconsultation with the state unemployment compensation agencies as reasonablycalculated to assure the prompt and full payment of compensation in suchsituations and which include provisions for (1) applying the base period of asingle state law to a claim involving the combining of an individual's wagesand employment covered under two or more state unemployment compensation laws,and (2) avoiding the duplicate use of wages and employment by reason of suchcombining.
c. The services of theCommission as agent may be made available to other states in taking interstateclaims for such states.
d. Contributions dueunder this Chapter with respect to wages for insured work shall for thepurposes of G.S. 96‑10 be deemed to have been paid to the fund as of the datepayment was made as contributions therefor under another state or federalemployment security law, but no such arrangement shall be entered into unlessit contains provisions for such reimbursement to the fund of such contributionsas the Commission finds will be fair and reasonable as to all affectedinterests.
e. The services of theCommission may be made available to such other agencies to assist in theenforcement and collection of judgments of such other agencies.
f. The services onvessels engaged in interstate or foreign commerce for a single employer,wherever performed, shall be deemed performed within this State or within suchother state.
g. Benefits paid byagencies of other states may be reimbursed to such agencies in cases whereservices of the claimant were "employment" under this Chapter andcontributions have been paid by the employer to this agency on remunerationpaid for such services; provided the amount of such reimbursement shall notexceed the amount of benefits such claimant would have been entitled to receiveunder the provisions of this Chapter.
(2) Reimbursements paidfrom the fund pursuant to subparagraphs b and c of subdivision (1) of thissubsection shall be deemed to be benefits for the purpose of G.S. 96‑6,96‑9, 96‑12 and 96‑12.01. The Commission is authorized tomake to other states or federal agencies and to receive from such other stateor federal agencies, reimbursements from or to the fund, in accordance witharrangements entered into pursuant to subdivision (1) of this subsection.
(3) To the extentpermissible under the laws and Constitution of the United States, theCommission is authorized to enter into or cooperate in arrangements wherebyfacilities and services provided under this Chapter and facilities and servicesprovided under the employment security law of any foreign government, may beutilized for the taking of claims and the payment of benefits under theEmployment Security Law of this State or under a similar law of suchgovernment.
(m) The Commission afterdue notice shall have the right and power to hold and conduct hearings for thepurpose of determining the rights, status and liabilities of any"employing unit" or "employer" as said terms are defined byG.S. 96‑8(4) and 96‑8(5) and subdivisions thereunder. TheCommission shall have the power and authority to determine any and allquestions and issues of fact or questions of law that may arise under theEmployment Security Law that may affect the rights, liabilities and status ofany employing unit or employer as heretofore defined by the Employment SecurityLaw including the right to determine the amount of contributions, if any, whichmay be due the Commission by any employer. Hearings may be before theCommission or a Deputy Commissioner and shall be held in the central office ofthe Commission or at any other designated place within the State. They shall beopen to the public and shall consist of a review of the evidence taken by ahearing officer designated by the Commission and a determination of the lawapplicable to that evidence. The Commission shall provide for the taking ofevidence by a hearing officer who shall be a member of the legal staff of theCommission. Such hearing officer shall have the same power to issue subpoenas,administer oaths, conduct hearings and take evidence as is possessed by theCommission and such hearings shall be recorded, and he shall transmit alltestimony and records of such hearings to the Commission for its determination.All such hearings conducted by such hearing officer shall be scheduled and heldin any county in this State in which the employing unit or employer eitherresides, maintains a place of business, or conducts business; however, theCommission may require additional testimony at any hearings held by it at itsoffice. From all decisions or determinations made by the Commission or a DeputyCommissioner any party affected thereby shall be entitled to an appeal to thesuperior court. Before such party shall be allowed to appeal, he shall within10 days after notice of such decision or determination, file with theCommission exceptions to the decision or the determination of the Commission,which exceptions will state the grounds of objection to such decision ordetermination. If any one of such exceptions shall be overruled then such partymay appeal from the order overruling the exceptions, and shall, within 10 daysafter the decision overruling the exceptions, give notice of his appeal. Whenan exception is made to the facts as found by the Commission, the appeal shallbe to the superior court in term time but the decision or determination of theCommission upon such review in the superior court shall be conclusive andbinding as to all questions of fact supported by any competent evidence. Whenan exception is made to any rulings of law, as determined by the Commission,the appeal shall be to the judge of the superior court at chambers. The partyappealing shall, within 10 days after the notice of appeal has been served,file with the Commission exceptions to the decision or determination overrulingthe exception which statement shall assign the errors complained of and thegrounds of the appeal. Upon the filing of such statement the Commission shall,within 30 days, transmit all the papers and evidence considered by it, togetherwith the assignments of errors filed by the appellant to a judge of thesuperior court holding court or residing in some district in which suchappellant either resides, maintains a place of business or conducts business,or, unless the appellant objects after being given reasonable opportunity toobject, to a judge of the Superior Court of Wake County: Provided, however, the30‑day period specified herein may be extended by agreement of parties.If there be no exceptions to any facts as found by the Commission the facts sofound shall be binding upon the court and it shall be heard by the judge atchambers at some place in the district, above mentioned, of which all partiesshall have 10 days' notice.
(n) The cause shall beentitled "State of North Carolina on Relationship of the EmploymentSecurity Commission of North Carolina against (here insert name ofappellant)," and if there are exceptions to any facts found by theCommission it shall be placed on the civil issue docket of such court and shallhave precedence over other civil actions except those described in G.S. 96‑10(b),and such cause shall be tried under such rules and regulations as areprescribed for the trial of other civil causes. By consent of all parties theappeal may be held and determined at chambers before any judge of a district inwhich the appellant either resides, maintains a place of business or conductsbusiness, or said appeal may be heard before any judge holding court therein,or in any district in which the appellant either resides, maintains a place ofbusiness or conducts business. Either party may appeal to the appellatedivision from the judgment of the superior court under the same rules andregulations as are prescribed by law for appeals, except that if an appealshall be taken on behalf of the Employment Security Commission of NorthCarolina it shall not be required to give any undertaking or make any depositto secure the cost of such appeal and such court may advance the cause on itsdocket so as to give the same a speedy hearing.
(o) The decision ordetermination of the Commission when docketed in the office of the clerk of thesuperior court of any county and when properly indexed and cross‑indexedshall have the same force and effect as a judgment rendered by the superiorcourt, and if it shall be adjudged in the decision or determination of theCommission that any employer is indebted to the Commission for contributions,penalties and interest or either of the same, then said judgment shall constitutea lien upon any realty owned by said employer in the county only from the dateof docketing of such decision or determination in the office of the clerk ofthe superior court and upon personalty owned by said employer in said countyonly from the date of levy on such personalty, and upon the execution thereonno homestead or personal property exemptions shall be allowed; provided, thatnothing herein shall affect any rights accruing to the Commission under G.S. 96‑10.The provisions of this section, however, shall not have the effect of releasingany liens for contributions, penalties or interest, or either of the same,imposed by other law, nor shall they have the effect of postponing the paymentof said contributions, penalties or interest, or depriving the said EmploymentSecurity Commission of North Carolina of any priority in order of paymentprovided in any other statute under which payment of the said contributions,penalties and interest or either of the same may be required. The superiorcourt or any appellate court shall have full power and authority to issue anyand all executions, orders, decrees, or writs that may be necessary to carryout the terms of said decision or determination of the Commission or to collectany amount of contribution, penalty or interest adjudged to be due theCommission by said decision or determination. In case of an appeal from anydecision or determination of the Commission to the superior court or from anyjudgment of the superior court to the appellate division all proceedings toenforce said judgment, decision, or determination shall be stayed until finaldetermination of such appeal but no proceedings for the collection of anyamount of contribution, penalty or interest due on same shall be suspended orstayed unless the employer or party adjudged to pay the same shall file withthe clerk of the superior court a bond in such amount not exceeding double theamount of contribution, penalty, interest or amount due and with such suretiesas the clerk of the superior court deems necessary conditioned upon the paymentof the contribution, penalty, interest or amount due when the appeal shall befinally decided or terminated.
(p) The conduct ofhearings shall be governed by suitable rules and regulations established by theCommission. The manner in which appeals and hearings shall be presented andconducted before the Commission shall be governed by suitable rules andregulations established by it. The Commission shall not be bound by common‑lawor statutory rules of evidence or by technical or formal rules of procedure butshall conduct hearings in such manner as to ascertain the substantial rights ofthe parties.
(q) Notices of hearingshall be issued by the Commission or its authorized representative and sent byregistered mail, return receipt requested, to the last known address of anyemploying unit, employers, persons, or firms involved. The notice shall be sentat least 10 days prior to the hearing date and shall contain notification ofthe place, date, hour, and purpose of the hearing. Subpoenas for witnesses toappear at any hearing shall be issued by the Commission or its authorizedrepresentative and shall order him to appear at the time, date and place shownthereon. Any bond or other undertaking required to be given in order to suspendor stay any execution shall be given payable to the Employment SecurityCommission of North Carolina. Any such bond or other undertaking may beforfeited or sued upon as are any other undertakings payable to the State.
(r) None of theprovisions or sections herein set forth in subsections (m)‑(q) shall havethe force and effect nor shall the same be construed or interpreted asrepealing any of the provisions of G.S. 96‑15 which provide for theprocedure and determination of all claims for benefits and such claims forbenefits shall be prosecuted and determined as provided by said G.S. 96‑15.
(s) Upon a finding ofgood cause, the Commission shall have the power in its sole discretion toforgive, in whole or in part, any overpayment arising under G.S. 96‑18(g)(2).
(t) Confidentiality ofRecords, Reports, and Information Obtained from Claimants, Employers, and Unitsof Government.
(1) Confidentiality ofInformation Contained in Records and Reports. (i) Except as hereinafterotherwise provided, it shall be unlawful for any person to obtain, disclose, oruse, or to authorize or permit the use of any information which is obtainedfrom any employing unit, individual, or unit of government pursuant to theadministration of this Chapter or G.S. 108A‑29. (ii) Any claimant oremployer or their legal representatives shall be supplied with information fromthe records of the Employment Security Commission to the extent necessary forthe proper presentation of claims or defenses in any proceeding under thisChapter. Notwithstanding any other provision of law, any claimant may besupplied, subject to restrictions as the Commission may by regulationprescribe, with any information contained in his payment record or on his mostrecent monetary determination, and any individual, as well as any interestedemployer, may be supplied with information as to the individual's potentialbenefit rights from claim records. (iii) Subject to restrictions as theCommission may by regulation provide, information from the records of theEmployment Security Commission may be made available to any agency or publicofficial for any purpose for which disclosure is required by statute orregulation. (iv) The Commission may, in its sole discretion, permit the use ofinformation in its possession by public officials in the performance of theirpublic duties. (v) The Commission shall release the payment and the amount ofunemployment compensation benefits upon receipt of a subpoena in a proceedinginvolving child support. (vi) The Commission shall furnish to the StateController any information the State Controller needs to prepare and publish acomprehensive annual financial report of the State or to track debtors of theState.
(2) Job ServiceInformation. (i) Except as hereinafter otherwise provided it is unlawful forany person to disclose any information obtained by the North Carolina StateEmployment Service Division from workers, employers, applicants, or otherpersons or groups of persons in the course of administering the State PublicEmployment Service Program. Provided, however, that if all interested partieswaive in writing the right to hold such information confidential, theinformation may be disclosed and used but only for those purposes that theparties and the Commission have agreed upon in writing. (ii) The EmploymentService Division shall make public, through the newspapers and any othersuitable media, information as to job openings and available applicants for thepurpose of supplying the demand for workers and employment. (iii) The LaborMarket Information Division shall collect, collate, and publish statistical andother information relating to the work under the Commission's jurisdiction;investigate economic developments, and the extent and causes of unemploymentand its remedies with the view of preparing for the information of the GeneralAssembly such facts as in the Commission's opinion may make further legislationdesirable. (iv) Except as provided by Commission regulation, any informationpublished pursuant to this subdivision shall not be published in any mannerrevealing the identity of the applicant or the employing unit.
(3) Penalties forDisclosure or Improper Use. Any person violating any provision of thissection may be fined not less than twenty dollars ($20.00) nor more than twohundred dollars ($200.00), or imprisoned for not longer than 90 days, or both.
(4) Regulations. TheCommission may provide by regulation for procedures by which requests forinformation will be considered and the methods by which such information may bedisclosed. The Commission is authorized to provide by regulation for theassessment of fees for securing and copying information released under thissection.
(5) Privileged Status ofLetters and Reports and Other Information Relating to Administration of thisChapter. All letters, reports, communication, or any other matters, eitheroral or written, including any testimony at any hearing, from the employer oremployee to each other or to the Commission or any of its agents,representatives, or employees, which letters, reports, or other communicationshall have been written, sent, delivered, or made in connection with therequirements of the administration of this Chapter, shall be absolutelyprivileged communication in any civil or criminal proceedings exceptproceedings pursuant to or involving the administration of this Chapter andexcept proceedings involving child support and only for the purpose ofestablishing the payment and amount of unemployment compensation benefits.Nothing in this subdivision shall be construed to prohibit the Commission, uponwritten request and on a reimbursable basis only, from disclosing informationfrom the records of a proceeding before an appeals referee, deputycommissioner, or other hearing officer by whatever name called, compiled forthe purpose of resolving issues raised pursuant to the Employment Security Law.
(6) Nothing in thissubsection (t) shall operate to relieve any claimant or employing unit fromdisclosing any information required by this Chapter or by regulationspromulgated thereunder.
(7) Nothing in thissubsection (t) shall be construed to prevent the Commission from allowing anyindividual or entity to examine and copy any report, return, or any otherwritten communication made by that individual or entity to the Commission, itsagents, or its employees.
(7a) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis only, to officers and employees of theDepartment of Housing and Urban Development and to representatives of a publichousing agency as defined in Section 303(i)(4) of the Social Security Act, anyinformation from the records of the Employment Security Commission with respectto individuals applying for or participating in any housing assistance programadministered by the Department of Housing and Urban Development who have signedan appropriate consent form approved by the Secretary of Housing and UrbanDevelopment. It is the purpose of this paragraph to assure the EmploymentSecurity Commission's compliance with Section 303(i)(1) of the Social SecurityAct and it shall be construed accordingly.
(7b) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis, to the Secretary of Health and HumanServices, any information from the records of the Employment SecurityCommission as may be required by Section 303(h)(1) of the Social Security Act.It is the purpose of this paragraph to assure compliance with Section 303(h)(1)of the Social Security Act and it shall be construed accordingly.
(8) Any finding of factor law, judgment, determination, conclusion or final order made by anadjudicator, appeals referee, commissioner, the Commission or any other personacting under authority of the Commission pursuant to the Employment SecurityLaw is not admissible or binding in any separate or subsequent action orproceeding, between a person and his present or previous employer broughtbefore an arbitrator, court or judge of this State or the United States,regardless of whether the prior action was between the same or related partiesor involved the same facts.
Provided,however, any finding of fact or law, judgment, determination, conclusion, orfinal order made by an adjudicator, appeals referee, commissioner, theCommission or any other person acting under the authority of the Commissionpursuant to the Employment Security Law shall be admissible in proceedingsbefore the North Carolina Industrial Commission.
(u) Service of processupon the Commission in any proceeding instituted before an administrativeagency or court of this State shall be pursuant to G.S. 1A‑1, Rule4(j)(4); however, notice of the requirement to withhold unemploymentcompensation benefits pursuant to G.S. 110‑136.2(f) shall be served uponthe process agent for the Employment Security Commission by regular or couriermail.
(v) Advisory rulingsmay be made by the Commission with respect to the applicability of any statuteor rule administered by the Commission, as follows:
(1) All requests foradvisory rulings shall be made in writing and submitted to the Chief Counsel.Such requests shall state the facts and statutes or rules on which the rulingis requested.
(2) The Chief Counselmay request from any person securing an advisory ruling any additionalinformation that is necessary. Failure to supply such additional informationshall be cause for the Commission to decline to issue an advisory ruling.
(3) The Commission maydecline to issue an advisory ruling if any administrative or judicialproceeding is pending with the person requesting the ruling on the same factualgrounds. The Commission may decline to issue an advisory ruling if such aruling may harm the Commission's interest in any litigation in which it is ormay be a party.
(4) All advisory rulingsshall be issued no later than 30 days from the date all information necessaryto make a ruling has been received by the Chief Counsel.
(5) No advisory rulingshall be binding upon the Commission provided that in any subsequentenforcement action initiated by the Commission, any person's reliance on suchruling shall be considered in mitigation of any penalty sought to be assessed. (Ex. Sess. 1936, c. 1, s. 11;1939, c. 2; c. 27, s. 8; c. 52, s. 5; cc. 207, 209; 1941, c. 279, ss. 4, 5;1943, c. 377, ss. 16‑23; 1945, c. 522, ss. 1‑3; 1947, c. 326, ss.1, 3, 4, 26; c. 598, ss. 1, 6, 7; 1949, c. 424, s. 1; 1951, c. 332, ss. 1, 18;1953, c. 401, ss. 1‑4; 1955, c. 385, ss. 1, 2; c. 479; 1957, c. 1059, s.1; 1969, c. 44, s. 63; c. 575, ss. 1, 2; 1971, c. 673, ss. 1, 2; 1977, c. 727,ss. 8‑10; 1979, c. 660, s. 2; 1979, 2nd Sess., c. 1212, s. 2; 1981, c.160, s. 1; 1983, c. 625, s. 16; 1983 (Reg. Sess., 1984), c. 995, s. 6; 1985, c.197, ss. 1, 6, 7; c. 552, s. 23; 1987, c. 273; c. 764, ss. 4, 4.1, 5; 1989, c.583, ss. 1, 2; c. 707, ss. 1, 2; 1991, c. 603, s. 1; c. 723, s. 3; 1993, c.343, s. 1; c. 512, s. 3; 1995, c. 507, s. 27.8(n); 1999‑340, s. 10; 2000‑140,s. 93.1(a); 2001‑424, s. 12.2(b); 2004‑203, s. 8; 2007‑251,ss. 1, 2.)
(a) Duties and Powersof Commission. It shall be the duty of the Commission to administer thisChapter. The Commission shall meet at least once in each 60 days and may holdspecial meetings at any time at the call of the chairman or any three membersof the Commission, and the Commission shall have power and authority to adopt,amend, or rescind such rules and regulations, to employ such persons, make suchexpenditures, require such reports, make such investigations, and take suchother action as it deems necessary or suitable in the administration of thisChapter. Such rules and regulations shall be effective upon publication in themanner, not inconsistent with the provisions of this Chapter, which theCommission shall prescribe. The Commission shall determine its own organizationand methods of procedure in accordance with the provisions of this Chapter, andshall have an official seal which shall be judicially noticed. The chairman ofsaid Commission shall, except as otherwise provided by the Commission, bevested with all authority of the Commission, including the authority to conducthearings and make decisions and determinations, when the Commission is not insession and shall execute all orders, rules and regulations established by saidCommission. Not later than November 20 preceding the meeting of the GeneralAssembly, the Commission shall submit to the Governor a report covering theadministration and operation of this Chapter during the preceding biennium, andshall make such recommendation for amendments to this Chapter as the Commissiondeems proper. Such report shall include a balance sheet of the moneys in thefund in which there shall be provided, if possible, a reserve against theliability in future years to pay benefits in excess of the then currentcontributions, which reserve shall be set up by the Commission in accordancewith accepted actuarial principles on the basis of statistics of employment,business activity, and other relevant factors for the longest possible period.Whenever the Commission believes that a change in contribution or benefit rateswill become necessary to protect the solvency of the fund, it shall promptly soinform the Governor and the legislature, and make recommendations with respectthereto.
(b) Regulations andGeneral and Special Rules. General and special rules may be adopted, amended,or rescinded by the Commission only after public hearing or opportunity to beheard thereon, of which proper notice has been given by mail to the last knownaddress in cases of special rules, or by publication as herein provided, and byone publication as herein provided as to general rules. The Commission shallnot take final action on a general or special rule that has a substantialeconomic impact, as defined in G.S. 150B‑21.4(b1), until 60 days afterthe Office of State Budget and Management has prepared a fiscal note for therule. General rules shall become effective 10 days after filing with theSecretary of State and publication in one or more newspapers of generalcirculation in this State. Special rules shall become effective 10 days afternotification to or mailing to the last known address of the individuals orconcerns affected thereby. Before the adoption, amendment, or repeal of anypermanent regulation, the Commission shall publish notice of the public hearingand offer any person an opportunity to present data, opinions, and arguments.The notice shall be published in one or more newspapers of general circulationin this State at least 10 days before the public hearing and at least 20 daysprior to the proposed effective date of the proposed permanent regulation. Thepublished notice of public hearing shall include the time and place of thepublic hearing; a statement of the manner in which data, opinions, andarguments may be submitted to or before the Commission; a statement of theterms or substance of the proposed regulation; a statement of whether a fiscalnote has been or will be prepared for the proposed regulation; and the proposedeffective date of the regulation. Any permanent regulation adopted afterfollowing the above procedure shall become effective on its effective date andafter it is published in the manner provided for in subsection (c) as well assuch additional publication as the Commission deems appropriate. Additionally,the Commission shall provide notice of adoption by mail to the last knownaddresses of all persons who submitted data, opinions, or arguments to theCommission with respect to the regulation. Temporary regulations may beadopted, amended, or rescinded by the Commission and shall become effective inthe manner and at the time prescribed by the Commission but shall remain inforce for no longer than 120 days.
(c) Publication. TheCommission shall cause to be printed for distribution to the public the text ofthis Chapter, the Commission's regulations and general rules, and any othermaterial the Commission deems relevant and suitable, and shall furnish the sameto any person upon application therefor. All publications printed shall complywith the requirements of G.S. 143‑170.1.
(d) Personnel. Subjectto other provisions of this Chapter, the Commission is authorized to appoint,fix the compensation, and prescribe the duties and powers of such officers,accountants, attorneys, experts, and other persons as may be necessary in theperformance of its duties. It shall provide for the holding of examinations todetermine the qualifications of applicants for the positions so classified, andexcept for temporary appointments not to exceed six months in duration, shallappoint its personnel on the basis of efficiency and fitness as determined insuch examinations. All positions shall be filled by persons selected andappointed on a nonpartisan merit basis. The Commission may delegate to any suchperson so appointed such power and authority as it deems reasonable and properfor the effective administration of this Chapter, and may, in its discretion,bond any person handling moneys or signing checks hereunder.
(e) Advisory Councils. The Governor shall appoint a State Advisory Council composed of men and womenrepresenting employers, employees, and the general public, in equal numbers.The Chairman of the Commission shall be a member of the State Advisory Counciland shall serve as its chairman. There shall be 15 members of the Council(other than its chairman) who shall each be appointed for a term of four years.A quorum of the State Advisory Council shall consist of the chairman, or suchappointed member as he may designate, plus one half of the total appointedmembers. The function of the Council shall be to aid the Commission informulating policies and discussing problems related to the administration ofthis Chapter. Each member of the State Advisory Council attending meetings ofthe Council shall be paid the same amount per diem for his services as isprovided for the members of other State boards, commissions, and committees whoreceive compensation for their services, including necessary time spent intraveling to and from his place of residence within the State to the place ofmeeting while engaged in the discharge of the duties of his office, and hisactual mileage and subsistence at the same rate allowed to State officials.
(f) EmploymentStabilization. The Commission, with the advice and aid of its advisorycouncils, and through its appropriate divisions, shall take all appropriatesteps to reduce and prevent unemployment; to encourage and assist in theadoption of practical methods of vocational training, retraining and vocationalguidance; to investigate, recommend, advise, and assist in the establishmentand operation, by municipalities, counties, school districts, and the State, ofreserves for public works to be used in times of business depression and unemployment;to promote the reemployment of unemployed workers throughout the State in everyother way that may be feasible; and to these ends to carry on and publish theresults of investigations and research studies.
(g) Records and Reports.
(1) Each employing unitshall keep true and accurate employment records, containing such information asthe Commission may prescribe. Such records shall be open to inspection and besubject to being copied by the Commission or its authorized representatives atany reasonable time and as often as may be necessary. Any employing unit doingbusiness in North Carolina shall make available in this State to theCommission, such information with respect to persons, firms, or other employingunits performing services for it which the Commission deems necessary inconnection with the administration of this Chapter. The Commission may requirefrom any employing unit any sworn or unsworn reports, with respect to personsemployed by it, which the Commission deems necessary for the effectiveadministration of this Chapter.
(2) If the Commissionfinds that any employer has failed to file any report or return required bythis Chapter or any regulation made pursuant hereto, or has filed a reportwhich the Commission finds incorrect or insufficient, the Commission may makean estimate of the information required from such employer on the basis of thebest evidence reasonably available to it at the time, and make, upon the basisof such estimate, a report or return on behalf of such employer, and the reportor return so made shall be deemed to be prima facie correct, and the Commissionmay make an assessment based upon such report and proceed to collectcontributions due thereon in the manner as set forth in G.S. 96‑10(b) ofthis Chapter: Provided, however, that no such report or return shall be madeuntil the employer has first been given at least 10 days' notice by registeredmail to the last known address of such employer: Provided further, that no suchreport or return shall be used as a basis in determining whether such employingunit is an employer within the meaning of this Chapter.
(h) Oaths andWitnesses. In the discharge of the duties imposed by this Chapter, thechairman and any duly authorized representative or member of the Commissionshall have power to administer oaths and affirmations, take depositions,certify to official acts, and issue subpoenas to compel the attendance ofwitnesses and the production of books, papers, correspondence, memoranda, andother records deemed necessary as evidence in connection with a disputed claimor the administration of this Chapter. Upon a motion, the chairman and any dulyauthorized representative or member of the Commission may quash a subpoena if,after a hearing, the Commission finds any of the following:
(1) The subpoenarequires the production of evidence that does not relate to a matter in issue.
(2) The subpoena failsto describe with sufficient particularity the evidence required to be produced.
(3) The subpoena issubject to being quashed for any other reason sufficient in law.
(h1) Hearing on Motion toQuash Subpoena; Appeal. A hearing on a motion to quash a subpoena pursuant tosubsection (h) of this section shall be heard at least 10 days prior to thehearing for which the subpoena was issued. The denial of a motion to quash asubpoena is subject to immediate judicial review in the Superior Court of WakeCounty or in the superior court of the county where the person subject to thesubpoena resides.
(i) Subpoenas. Incase of contumacy by, or refusal to obey a subpoena issued to any person by theCommission or its authorized representative, any clerk of a superior court ofthis State within the jurisdiction of which the inquiry is carried on or withinthe jurisdiction of which said person guilty of contumacy or refusal to obey isfound or resides or transacts business, upon application by the Commission, orits duly authorized representatives, shall have jurisdiction to issue to suchperson an order requiring such person to appear before the Commission, or itsduly authorized representatives, there to produce evidence if so ordered, orthere to give testimony touching upon the matter under investigation or inquestion; and any failure to obey such order of the said clerk of superiorcourt may be punished by the said clerk of superior court as a contempt of saidcourt. Any person who shall, without just cause, fail or refuse to attend andtestify or to answer any lawful inquiry or to produce books, papers,correspondence, memoranda, or other records in obedience to a subpoena of theCommission, shall be punished by a fine of not more than fifty dollars ($50.00)or by imprisonment for not longer than 30 days.
(j) Protection againstSelf‑Incrimination. No person shall be excused from attending andtestifying or from producing books, papers, correspondence, memoranda, andother records before the Commission or in obedience to the subpoena of theCommission or any member thereof, or any duly authorized representative of theCommission, in any cause or proceeding before the Commission, on the groundthat the testimony or evidence, documentary or otherwise, required of him maytend to incriminate him or subject him to a penalty or forfeiture; but noindividual shall be prosecuted or subjected to any penalty or forfeiture for oron account of any transaction, matter, or thing concerning which he iscompelled, after having claimed his privilege against self‑incrimination,to testify or produce evidence, documentary or otherwise, except that suchindividual so testifying shall not be exempt from prosecution and punishmentfor perjury committed in so testifying.
(k) State‑FederalCooperation. In the administration of this Chapter, the Commission shallcooperate, to the fullest extent consistent with the provisions of thisChapter, with the federal agency, official, or bureau fully authorized andempowered to administer the provisions of the Social Security Act approvedAugust 14, 1935, as amended, shall make such reports, in such form and containingsuch information as such federal agency, official, or bureau may from time totime require, and shall comply with such provisions as such federal agency,official, or bureau may from time to time find necessary to assure thecorrectness and verification of such reports; and shall comply with theregulations prescribed by such agency, official, or bureau governing theexpenditures of such sums as may be allotted and paid to this State under TitleIII of the Social Security Act for the purpose of assisting in theadministration of this Chapter. The Commission shall further make its recordsavailable to the Railroad Retirement Board, created by the Railroad RetirementAct and the Railroad Unemployment Insurance Act, and shall furnish to theRailroad Retirement Board at the expense of the Railroad Retirement Board, suchcopies thereof as the Board shall deem necessary for its purposes in accordancewith the provisions of section 303 (c) of the Social Security Act as amended.
Upon request therefor, theCommission shall furnish to any agency of the United States charged with theadministration of public works or assistance through public employment, thename, address, ordinary occupation, and employment status of each recipient ofbenefits, and such recipient's rights to further benefits under this Chapter.
The Commission is authorizedto make such investigations, secure and transmit such information, makeavailable such services and facilities and exercise such of the other powersprovided herein with respect to the administration of this Chapter as it deemsnecessary or appropriate to facilitate the administration of any employmentsecurity or public employment service law, and in like manner, to accept andutilize information, services and facilities made available to this State bythe agency charged with the administration of such other employment security orpublic employment service law.
The Commission shall fullycooperate with the agencies of other states and shall make every proper effortwithin its means to oppose and prevent any further action which would, in itsjudgment, tend to effect complete or substantial federalization of Stateunemployment insurance funds or State employment security programs.
(l) ReciprocalArrangements.
(1) The Commission is herebyauthorized to enter into reciprocal arrangements with appropriate and dulyauthorized agencies of other states or of the federal government, or both,whereby:
a. Services performedby an individual for a single employing unit for which services are customarilyperformed in more than one state shall be deemed to be services performedentirely within any one of the states
1. In which any part ofsuch individual's service is performed or
2. In which suchindividual has his residence or
3. In which the employingunit maintains a place of business, provided there is in effect, as to suchservices, an election by the employing unit, approved by the agency chargedwith the administration of such state's employment security law, pursuant towhich the services performed by such individual for such employing unit aredeemed to be performed entirely within such state.
b. Combining wagecredits. The Commission shall participate in any arrangements for the paymentof compensation on the basis of combining an individual's wages and employmentcovered under this Chapter with his wages and employment covered under one ormore laws of the federal government and the unemployment compensation laws ofother states which are approved by the United States Secretary of Labor inconsultation with the state unemployment compensation agencies as reasonablycalculated to assure the prompt and full payment of compensation in suchsituations and which include provisions for (1) applying the base period of asingle state law to a claim involving the combining of an individual's wagesand employment covered under two or more state unemployment compensation laws,and (2) avoiding the duplicate use of wages and employment by reason of suchcombining.
c. The services of theCommission as agent may be made available to other states in taking interstateclaims for such states.
d. Contributions dueunder this Chapter with respect to wages for insured work shall for thepurposes of G.S. 96‑10 be deemed to have been paid to the fund as of the datepayment was made as contributions therefor under another state or federalemployment security law, but no such arrangement shall be entered into unlessit contains provisions for such reimbursement to the fund of such contributionsas the Commission finds will be fair and reasonable as to all affectedinterests.
e. The services of theCommission may be made available to such other agencies to assist in theenforcement and collection of judgments of such other agencies.
f. The services onvessels engaged in interstate or foreign commerce for a single employer,wherever performed, shall be deemed performed within this State or within suchother state.
g. Benefits paid byagencies of other states may be reimbursed to such agencies in cases whereservices of the claimant were "employment" under this Chapter andcontributions have been paid by the employer to this agency on remunerationpaid for such services; provided the amount of such reimbursement shall notexceed the amount of benefits such claimant would have been entitled to receiveunder the provisions of this Chapter.
(2) Reimbursements paidfrom the fund pursuant to subparagraphs b and c of subdivision (1) of thissubsection shall be deemed to be benefits for the purpose of G.S. 96‑6,96‑9, 96‑12 and 96‑12.01. The Commission is authorized tomake to other states or federal agencies and to receive from such other stateor federal agencies, reimbursements from or to the fund, in accordance witharrangements entered into pursuant to subdivision (1) of this subsection.
(3) To the extentpermissible under the laws and Constitution of the United States, theCommission is authorized to enter into or cooperate in arrangements wherebyfacilities and services provided under this Chapter and facilities and servicesprovided under the employment security law of any foreign government, may beutilized for the taking of claims and the payment of benefits under theEmployment Security Law of this State or under a similar law of suchgovernment.
(m) The Commission afterdue notice shall have the right and power to hold and conduct hearings for thepurpose of determining the rights, status and liabilities of any"employing unit" or "employer" as said terms are defined byG.S. 96‑8(4) and 96‑8(5) and subdivisions thereunder. TheCommission shall have the power and authority to determine any and allquestions and issues of fact or questions of law that may arise under theEmployment Security Law that may affect the rights, liabilities and status ofany employing unit or employer as heretofore defined by the Employment SecurityLaw including the right to determine the amount of contributions, if any, whichmay be due the Commission by any employer. Hearings may be before theCommission or a Deputy Commissioner and shall be held in the central office ofthe Commission or at any other designated place within the State. They shall beopen to the public and shall consist of a review of the evidence taken by ahearing officer designated by the Commission and a determination of the lawapplicable to that evidence. The Commission shall provide for the taking ofevidence by a hearing officer who shall be a member of the legal staff of theCommission. Such hearing officer shall have the same power to issue subpoenas,administer oaths, conduct hearings and take evidence as is possessed by theCommission and such hearings shall be recorded, and he shall transmit alltestimony and records of such hearings to the Commission for its determination.All such hearings conducted by such hearing officer shall be scheduled and heldin any county in this State in which the employing unit or employer eitherresides, maintains a place of business, or conducts business; however, theCommission may require additional testimony at any hearings held by it at itsoffice. From all decisions or determinations made by the Commission or a DeputyCommissioner any party affected thereby shall be entitled to an appeal to thesuperior court. Before such party shall be allowed to appeal, he shall within10 days after notice of such decision or determination, file with theCommission exceptions to the decision or the determination of the Commission,which exceptions will state the grounds of objection to such decision ordetermination. If any one of such exceptions shall be overruled then such partymay appeal from the order overruling the exceptions, and shall, within 10 daysafter the decision overruling the exceptions, give notice of his appeal. Whenan exception is made to the facts as found by the Commission, the appeal shallbe to the superior court in term time but the decision or determination of theCommission upon such review in the superior court shall be conclusive andbinding as to all questions of fact supported by any competent evidence. Whenan exception is made to any rulings of law, as determined by the Commission,the appeal shall be to the judge of the superior court at chambers. The partyappealing shall, within 10 days after the notice of appeal has been served,file with the Commission exceptions to the decision or determination overrulingthe exception which statement shall assign the errors complained of and thegrounds of the appeal. Upon the filing of such statement the Commission shall,within 30 days, transmit all the papers and evidence considered by it, togetherwith the assignments of errors filed by the appellant to a judge of thesuperior court holding court or residing in some district in which suchappellant either resides, maintains a place of business or conducts business,or, unless the appellant objects after being given reasonable opportunity toobject, to a judge of the Superior Court of Wake County: Provided, however, the30‑day period specified herein may be extended by agreement of parties.If there be no exceptions to any facts as found by the Commission the facts sofound shall be binding upon the court and it shall be heard by the judge atchambers at some place in the district, above mentioned, of which all partiesshall have 10 days' notice.
(n) The cause shall beentitled "State of North Carolina on Relationship of the EmploymentSecurity Commission of North Carolina against (here insert name ofappellant)," and if there are exceptions to any facts found by theCommission it shall be placed on the civil issue docket of such court and shallhave precedence over other civil actions except those described in G.S. 96‑10(b),and such cause shall be tried under such rules and regulations as areprescribed for the trial of other civil causes. By consent of all parties theappeal may be held and determined at chambers before any judge of a district inwhich the appellant either resides, maintains a place of business or conductsbusiness, or said appeal may be heard before any judge holding court therein,or in any district in which the appellant either resides, maintains a place ofbusiness or conducts business. Either party may appeal to the appellatedivision from the judgment of the superior court under the same rules andregulations as are prescribed by law for appeals, except that if an appealshall be taken on behalf of the Employment Security Commission of NorthCarolina it shall not be required to give any undertaking or make any depositto secure the cost of such appeal and such court may advance the cause on itsdocket so as to give the same a speedy hearing.
(o) The decision ordetermination of the Commission when docketed in the office of the clerk of thesuperior court of any county and when properly indexed and cross‑indexedshall have the same force and effect as a judgment rendered by the superiorcourt, and if it shall be adjudged in the decision or determination of theCommission that any employer is indebted to the Commission for contributions,penalties and interest or either of the same, then said judgment shall constitutea lien upon any realty owned by said employer in the county only from the dateof docketing of such decision or determination in the office of the clerk ofthe superior court and upon personalty owned by said employer in said countyonly from the date of levy on such personalty, and upon the execution thereonno homestead or personal property exemptions shall be allowed; provided, thatnothing herein shall affect any rights accruing to the Commission under G.S. 96‑10.The provisions of this section, however, shall not have the effect of releasingany liens for contributions, penalties or interest, or either of the same,imposed by other law, nor shall they have the effect of postponing the paymentof said contributions, penalties or interest, or depriving the said EmploymentSecurity Commission of North Carolina of any priority in order of paymentprovided in any other statute under which payment of the said contributions,penalties and interest or either of the same may be required. The superiorcourt or any appellate court shall have full power and authority to issue anyand all executions, orders, decrees, or writs that may be necessary to carryout the terms of said decision or determination of the Commission or to collectany amount of contribution, penalty or interest adjudged to be due theCommission by said decision or determination. In case of an appeal from anydecision or determination of the Commission to the superior court or from anyjudgment of the superior court to the appellate division all proceedings toenforce said judgment, decision, or determination shall be stayed until finaldetermination of such appeal but no proceedings for the collection of anyamount of contribution, penalty or interest due on same shall be suspended orstayed unless the employer or party adjudged to pay the same shall file withthe clerk of the superior court a bond in such amount not exceeding double theamount of contribution, penalty, interest or amount due and with such suretiesas the clerk of the superior court deems necessary conditioned upon the paymentof the contribution, penalty, interest or amount due when the appeal shall befinally decided or terminated.
(p) The conduct ofhearings shall be governed by suitable rules and regulations established by theCommission. The manner in which appeals and hearings shall be presented andconducted before the Commission shall be governed by suitable rules andregulations established by it. The Commission shall not be bound by common‑lawor statutory rules of evidence or by technical or formal rules of procedure butshall conduct hearings in such manner as to ascertain the substantial rights ofthe parties.
(q) Notices of hearingshall be issued by the Commission or its authorized representative and sent byregistered mail, return receipt requested, to the last known address of anyemploying unit, employers, persons, or firms involved. The notice shall be sentat least 10 days prior to the hearing date and shall contain notification ofthe place, date, hour, and purpose of the hearing. Subpoenas for witnesses toappear at any hearing shall be issued by the Commission or its authorizedrepresentative and shall order him to appear at the time, date and place shownthereon. Any bond or other undertaking required to be given in order to suspendor stay any execution shall be given payable to the Employment SecurityCommission of North Carolina. Any such bond or other undertaking may beforfeited or sued upon as are any other undertakings payable to the State.
(r) None of theprovisions or sections herein set forth in subsections (m)‑(q) shall havethe force and effect nor shall the same be construed or interpreted asrepealing any of the provisions of G.S. 96‑15 which provide for theprocedure and determination of all claims for benefits and such claims forbenefits shall be prosecuted and determined as provided by said G.S. 96‑15.
(s) Upon a finding ofgood cause, the Commission shall have the power in its sole discretion toforgive, in whole or in part, any overpayment arising under G.S. 96‑18(g)(2).
(t) Confidentiality ofRecords, Reports, and Information Obtained from Claimants, Employers, and Unitsof Government.
(1) Confidentiality ofInformation Contained in Records and Reports. (i) Except as hereinafterotherwise provided, it shall be unlawful for any person to obtain, disclose, oruse, or to authorize or permit the use of any information which is obtainedfrom any employing unit, individual, or unit of government pursuant to theadministration of this Chapter or G.S. 108A‑29. (ii) Any claimant oremployer or their legal representatives shall be supplied with information fromthe records of the Employment Security Commission to the extent necessary forthe proper presentation of claims or defenses in any proceeding under thisChapter. Notwithstanding any other provision of law, any claimant may besupplied, subject to restrictions as the Commission may by regulationprescribe, with any information contained in his payment record or on his mostrecent monetary determination, and any individual, as well as any interestedemployer, may be supplied with information as to the individual's potentialbenefit rights from claim records. (iii) Subject to restrictions as theCommission may by regulation provide, information from the records of theEmployment Security Commission may be made available to any agency or publicofficial for any purpose for which disclosure is required by statute orregulation. (iv) The Commission may, in its sole discretion, permit the use ofinformation in its possession by public officials in the performance of theirpublic duties. (v) The Commission shall release the payment and the amount ofunemployment compensation benefits upon receipt of a subpoena in a proceedinginvolving child support. (vi) The Commission shall furnish to the StateController any information the State Controller needs to prepare and publish acomprehensive annual financial report of the State or to track debtors of theState.
(2) Job ServiceInformation. (i) Except as hereinafter otherwise provided it is unlawful forany person to disclose any information obtained by the North Carolina StateEmployment Service Division from workers, employers, applicants, or otherpersons or groups of persons in the course of administering the State PublicEmployment Service Program. Provided, however, that if all interested partieswaive in writing the right to hold such information confidential, theinformation may be disclosed and used but only for those purposes that theparties and the Commission have agreed upon in writing. (ii) The EmploymentService Division shall make public, through the newspapers and any othersuitable media, information as to job openings and available applicants for thepurpose of supplying the demand for workers and employment. (iii) The LaborMarket Information Division shall collect, collate, and publish statistical andother information relating to the work under the Commission's jurisdiction;investigate economic developments, and the extent and causes of unemploymentand its remedies with the view of preparing for the information of the GeneralAssembly such facts as in the Commission's opinion may make further legislationdesirable. (iv) Except as provided by Commission regulation, any informationpublished pursuant to this subdivision shall not be published in any mannerrevealing the identity of the applicant or the employing unit.
(3) Penalties forDisclosure or Improper Use. Any person violating any provision of thissection may be fined not less than twenty dollars ($20.00) nor more than twohundred dollars ($200.00), or imprisoned for not longer than 90 days, or both.
(4) Regulations. TheCommission may provide by regulation for procedures by which requests forinformation will be considered and the methods by which such information may bedisclosed. The Commission is authorized to provide by regulation for theassessment of fees for securing and copying information released under thissection.
(5) Privileged Status ofLetters and Reports and Other Information Relating to Administration of thisChapter. All letters, reports, communication, or any other matters, eitheroral or written, including any testimony at any hearing, from the employer oremployee to each other or to the Commission or any of its agents,representatives, or employees, which letters, reports, or other communicationshall have been written, sent, delivered, or made in connection with therequirements of the administration of this Chapter, shall be absolutelyprivileged communication in any civil or criminal proceedings exceptproceedings pursuant to or involving the administration of this Chapter andexcept proceedings involving child support and only for the purpose ofestablishing the payment and amount of unemployment compensation benefits.Nothing in this subdivision shall be construed to prohibit the Commission, uponwritten request and on a reimbursable basis only, from disclosing informationfrom the records of a proceeding before an appeals referee, deputycommissioner, or other hearing officer by whatever name called, compiled forthe purpose of resolving issues raised pursuant to the Employment Security Law.
(6) Nothing in thissubsection (t) shall operate to relieve any claimant or employing unit fromdisclosing any information required by this Chapter or by regulationspromulgated thereunder.
(7) Nothing in thissubsection (t) shall be construed to prevent the Commission from allowing anyindividual or entity to examine and copy any report, return, or any otherwritten communication made by that individual or entity to the Commission, itsagents, or its employees.
(7a) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis only, to officers and employees of theDepartment of Housing and Urban Development and to representatives of a publichousing agency as defined in Section 303(i)(4) of the Social Security Act, anyinformation from the records of the Employment Security Commission with respectto individuals applying for or participating in any housing assistance programadministered by the Department of Housing and Urban Development who have signedan appropriate consent form approved by the Secretary of Housing and UrbanDevelopment. It is the purpose of this paragraph to assure the EmploymentSecurity Commission's compliance with Section 303(i)(1) of the Social SecurityAct and it shall be construed accordingly.
(7b) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis, to the Secretary of Health and HumanServices, any information from the records of the Employment SecurityCommission as may be required by Section 303(h)(1) of the Social Security Act.It is the purpose of this paragraph to assure compliance with Section 303(h)(1)of the Social Security Act and it shall be construed accordingly.
(8) Any finding of factor law, judgment, determination, conclusion or final order made by anadjudicator, appeals referee, commissioner, the Commission or any other personacting under authority of the Commission pursuant to the Employment SecurityLaw is not admissible or binding in any separate or subsequent action orproceeding, between a person and his present or previous employer broughtbefore an arbitrator, court or judge of this State or the United States,regardless of whether the prior action was between the same or related partiesor involved the same facts.
Provided,however, any finding of fact or law, judgment, determination, conclusion, orfinal order made by an adjudicator, appeals referee, commissioner, theCommission or any other person acting under the authority of the Commissionpursuant to the Employment Security Law shall be admissible in proceedingsbefore the North Carolina Industrial Commission.
(u) Service of processupon the Commission in any proceeding instituted before an administrativeagency or court of this State shall be pursuant to G.S. 1A‑1, Rule4(j)(4); however, notice of the requirement to withhold unemploymentcompensation benefits pursuant to G.S. 110‑136.2(f) shall be served uponthe process agent for the Employment Security Commission by regular or couriermail.
(v) Advisory rulingsmay be made by the Commission with respect to the applicability of any statuteor rule administered by the Commission, as follows:
(1) All requests foradvisory rulings shall be made in writing and submitted to the Chief Counsel.Such requests shall state the facts and statutes or rules on which the rulingis requested.
(2) The Chief Counselmay request from any person securing an advisory ruling any additionalinformation that is necessary. Failure to supply such additional informationshall be cause for the Commission to decline to issue an advisory ruling.
(3) The Commission maydecline to issue an advisory ruling if any administrative or judicialproceeding is pending with the person requesting the ruling on the same factualgrounds. The Commission may decline to issue an advisory ruling if such aruling may harm the Commission's interest in any litigation in which it is ormay be a party.
(4) All advisory rulingsshall be issued no later than 30 days from the date all information necessaryto make a ruling has been received by the Chief Counsel.
(5) No advisory rulingshall be binding upon the Commission provided that in any subsequentenforcement action initiated by the Commission, any person's reliance on suchruling shall be considered in mitigation of any penalty sought to be assessed. (Ex. Sess. 1936, c. 1, s. 11;1939, c. 2; c. 27, s. 8; c. 52, s. 5; cc. 207, 209; 1941, c. 279, ss. 4, 5;1943, c. 377, ss. 16‑23; 1945, c. 522, ss. 1‑3; 1947, c. 326, ss.1, 3, 4, 26; c. 598, ss. 1, 6, 7; 1949, c. 424, s. 1; 1951, c. 332, ss. 1, 18;1953, c. 401, ss. 1‑4; 1955, c. 385, ss. 1, 2; c. 479; 1957, c. 1059, s.1; 1969, c. 44, s. 63; c. 575, ss. 1, 2; 1971, c. 673, ss. 1, 2; 1977, c. 727,ss. 8‑10; 1979, c. 660, s. 2; 1979, 2nd Sess., c. 1212, s. 2; 1981, c.160, s. 1; 1983, c. 625, s. 16; 1983 (Reg. Sess., 1984), c. 995, s. 6; 1985, c.197, ss. 1, 6, 7; c. 552, s. 23; 1987, c. 273; c. 764, ss. 4, 4.1, 5; 1989, c.583, ss. 1, 2; c. 707, ss. 1, 2; 1991, c. 603, s. 1; c. 723, s. 3; 1993, c.343, s. 1; c. 512, s. 3; 1995, c. 507, s. 27.8(n); 1999‑340, s. 10; 2000‑140,s. 93.1(a); 2001‑424, s. 12.2(b); 2004‑203, s. 8; 2007‑251,ss. 1, 2.)
(a) Duties and Powersof Commission. It shall be the duty of the Commission to administer thisChapter. The Commission shall meet at least once in each 60 days and may holdspecial meetings at any time at the call of the chairman or any three membersof the Commission, and the Commission shall have power and authority to adopt,amend, or rescind such rules and regulations, to employ such persons, make suchexpenditures, require such reports, make such investigations, and take suchother action as it deems necessary or suitable in the administration of thisChapter. Such rules and regulations shall be effective upon publication in themanner, not inconsistent with the provisions of this Chapter, which theCommission shall prescribe. The Commission shall determine its own organizationand methods of procedure in accordance with the provisions of this Chapter, andshall have an official seal which shall be judicially noticed. The chairman ofsaid Commission shall, except as otherwise provided by the Commission, bevested with all authority of the Commission, including the authority to conducthearings and make decisions and determinations, when the Commission is not insession and shall execute all orders, rules and regulations established by saidCommission. Not later than November 20 preceding the meeting of the GeneralAssembly, the Commission shall submit to the Governor a report covering theadministration and operation of this Chapter during the preceding biennium, andshall make such recommendation for amendments to this Chapter as the Commissiondeems proper. Such report shall include a balance sheet of the moneys in thefund in which there shall be provided, if possible, a reserve against theliability in future years to pay benefits in excess of the then currentcontributions, which reserve shall be set up by the Commission in accordancewith accepted actuarial principles on the basis of statistics of employment,business activity, and other relevant factors for the longest possible period.Whenever the Commission believes that a change in contribution or benefit rateswill become necessary to protect the solvency of the fund, it shall promptly soinform the Governor and the legislature, and make recommendations with respectthereto.
(b) Regulations andGeneral and Special Rules. General and special rules may be adopted, amended,or rescinded by the Commission only after public hearing or opportunity to beheard thereon, of which proper notice has been given by mail to the last knownaddress in cases of special rules, or by publication as herein provided, and byone publication as herein provided as to general rules. The Commission shallnot take final action on a general or special rule that has a substantialeconomic impact, as defined in G.S. 150B‑21.4(b1), until 60 days afterthe Office of State Budget and Management has prepared a fiscal note for therule. General rules shall become effective 10 days after filing with theSecretary of State and publication in one or more newspapers of generalcirculation in this State. Special rules shall become effective 10 days afternotification to or mailing to the last known address of the individuals orconcerns affected thereby. Before the adoption, amendment, or repeal of anypermanent regulation, the Commission shall publish notice of the public hearingand offer any person an opportunity to present data, opinions, and arguments.The notice shall be published in one or more newspapers of general circulationin this State at least 10 days before the public hearing and at least 20 daysprior to the proposed effective date of the proposed permanent regulation. Thepublished notice of public hearing shall include the time and place of thepublic hearing; a statement of the manner in which data, opinions, andarguments may be submitted to or before the Commission; a statement of theterms or substance of the proposed regulation; a statement of whether a fiscalnote has been or will be prepared for the proposed regulation; and the proposedeffective date of the regulation. Any permanent regulation adopted afterfollowing the above procedure shall become effective on its effective date andafter it is published in the manner provided for in subsection (c) as well assuch additional publication as the Commission deems appropriate. Additionally,the Commission shall provide notice of adoption by mail to the last knownaddresses of all persons who submitted data, opinions, or arguments to theCommission with respect to the regulation. Temporary regulations may beadopted, amended, or rescinded by the Commission and shall become effective inthe manner and at the time prescribed by the Commission but shall remain inforce for no longer than 120 days.
(c) Publication. TheCommission shall cause to be printed for distribution to the public the text ofthis Chapter, the Commission's regulations and general rules, and any othermaterial the Commission deems relevant and suitable, and shall furnish the sameto any person upon application therefor. All publications printed shall complywith the requirements of G.S. 143‑170.1.
(d) Personnel. Subjectto other provisions of this Chapter, the Commission is authorized to appoint,fix the compensation, and prescribe the duties and powers of such officers,accountants, attorneys, experts, and other persons as may be necessary in theperformance of its duties. It shall provide for the holding of examinations todetermine the qualifications of applicants for the positions so classified, andexcept for temporary appointments not to exceed six months in duration, shallappoint its personnel on the basis of efficiency and fitness as determined insuch examinations. All positions shall be filled by persons selected andappointed on a nonpartisan merit basis. The Commission may delegate to any suchperson so appointed such power and authority as it deems reasonable and properfor the effective administration of this Chapter, and may, in its discretion,bond any person handling moneys or signing checks hereunder.
(e) Advisory Councils. The Governor shall appoint a State Advisory Council composed of men and womenrepresenting employers, employees, and the general public, in equal numbers.The Chairman of the Commission shall be a member of the State Advisory Counciland shall serve as its chairman. There shall be 15 members of the Council(other than its chairman) who shall each be appointed for a term of four years.A quorum of the State Advisory Council shall consist of the chairman, or suchappointed member as he may designate, plus one half of the total appointedmembers. The function of the Council shall be to aid the Commission informulating policies and discussing problems related to the administration ofthis Chapter. Each member of the State Advisory Council attending meetings ofthe Council shall be paid the same amount per diem for his services as isprovided for the members of other State boards, commissions, and committees whoreceive compensation for their services, including necessary time spent intraveling to and from his place of residence within the State to the place ofmeeting while engaged in the discharge of the duties of his office, and hisactual mileage and subsistence at the same rate allowed to State officials.
(f) EmploymentStabilization. The Commission, with the advice and aid of its advisorycouncils, and through its appropriate divisions, shall take all appropriatesteps to reduce and prevent unemployment; to encourage and assist in theadoption of practical methods of vocational training, retraining and vocationalguidance; to investigate, recommend, advise, and assist in the establishmentand operation, by municipalities, counties, school districts, and the State, ofreserves for public works to be used in times of business depression and unemployment;to promote the reemployment of unemployed workers throughout the State in everyother way that may be feasible; and to these ends to carry on and publish theresults of investigations and research studies.
(g) Records and Reports.
(1) Each employing unitshall keep true and accurate employment records, containing such information asthe Commission may prescribe. Such records shall be open to inspection and besubject to being copied by the Commission or its authorized representatives atany reasonable time and as often as may be necessary. Any employing unit doingbusiness in North Carolina shall make available in this State to theCommission, such information with respect to persons, firms, or other employingunits performing services for it which the Commission deems necessary inconnection with the administration of this Chapter. The Commission may requirefrom any employing unit any sworn or unsworn reports, with respect to personsemployed by it, which the Commission deems necessary for the effectiveadministration of this Chapter.
(2) If the Commissionfinds that any employer has failed to file any report or return required bythis Chapter or any regulation made pursuant hereto, or has filed a reportwhich the Commission finds incorrect or insufficient, the Commission may makean estimate of the information required from such employer on the basis of thebest evidence reasonably available to it at the time, and make, upon the basisof such estimate, a report or return on behalf of such employer, and the reportor return so made shall be deemed to be prima facie correct, and the Commissionmay make an assessment based upon such report and proceed to collectcontributions due thereon in the manner as set forth in G.S. 96‑10(b) ofthis Chapter: Provided, however, that no such report or return shall be madeuntil the employer has first been given at least 10 days' notice by registeredmail to the last known address of such employer: Provided further, that no suchreport or return shall be used as a basis in determining whether such employingunit is an employer within the meaning of this Chapter.
(h) Oaths andWitnesses. In the discharge of the duties imposed by this Chapter, thechairman and any duly authorized representative or member of the Commissionshall have power to administer oaths and affirmations, take depositions,certify to official acts, and issue subpoenas to compel the attendance ofwitnesses and the production of books, papers, correspondence, memoranda, andother records deemed necessary as evidence in connection with a disputed claimor the administration of this Chapter. Upon a motion, the chairman and any dulyauthorized representative or member of the Commission may quash a subpoena if,after a hearing, the Commission finds any of the following:
(1) The subpoenarequires the production of evidence that does not relate to a matter in issue.
(2) The subpoena failsto describe with sufficient particularity the evidence required to be produced.
(3) The subpoena issubject to being quashed for any other reason sufficient in law.
(h1) Hearing on Motion toQuash Subpoena; Appeal. A hearing on a motion to quash a subpoena pursuant tosubsection (h) of this section shall be heard at least 10 days prior to thehearing for which the subpoena was issued. The denial of a motion to quash asubpoena is subject to immediate judicial review in the Superior Court of WakeCounty or in the superior court of the county where the person subject to thesubpoena resides.
(i) Subpoenas. Incase of contumacy by, or refusal to obey a subpoena issued to any person by theCommission or its authorized representative, any clerk of a superior court ofthis State within the jurisdiction of which the inquiry is carried on or withinthe jurisdiction of which said person guilty of contumacy or refusal to obey isfound or resides or transacts business, upon application by the Commission, orits duly authorized representatives, shall have jurisdiction to issue to suchperson an order requiring such person to appear before the Commission, or itsduly authorized representatives, there to produce evidence if so ordered, orthere to give testimony touching upon the matter under investigation or inquestion; and any failure to obey such order of the said clerk of superiorcourt may be punished by the said clerk of superior court as a contempt of saidcourt. Any person who shall, without just cause, fail or refuse to attend andtestify or to answer any lawful inquiry or to produce books, papers,correspondence, memoranda, or other records in obedience to a subpoena of theCommission, shall be punished by a fine of not more than fifty dollars ($50.00)or by imprisonment for not longer than 30 days.
(j) Protection againstSelf‑Incrimination. No person shall be excused from attending andtestifying or from producing books, papers, correspondence, memoranda, andother records before the Commission or in obedience to the subpoena of theCommission or any member thereof, or any duly authorized representative of theCommission, in any cause or proceeding before the Commission, on the groundthat the testimony or evidence, documentary or otherwise, required of him maytend to incriminate him or subject him to a penalty or forfeiture; but noindividual shall be prosecuted or subjected to any penalty or forfeiture for oron account of any transaction, matter, or thing concerning which he iscompelled, after having claimed his privilege against self‑incrimination,to testify or produce evidence, documentary or otherwise, except that suchindividual so testifying shall not be exempt from prosecution and punishmentfor perjury committed in so testifying.
(k) State‑FederalCooperation. In the administration of this Chapter, the Commission shallcooperate, to the fullest extent consistent with the provisions of thisChapter, with the federal agency, official, or bureau fully authorized andempowered to administer the provisions of the Social Security Act approvedAugust 14, 1935, as amended, shall make such reports, in such form and containingsuch information as such federal agency, official, or bureau may from time totime require, and shall comply with such provisions as such federal agency,official, or bureau may from time to time find necessary to assure thecorrectness and verification of such reports; and shall comply with theregulations prescribed by such agency, official, or bureau governing theexpenditures of such sums as may be allotted and paid to this State under TitleIII of the Social Security Act for the purpose of assisting in theadministration of this Chapter. The Commission shall further make its recordsavailable to the Railroad Retirement Board, created by the Railroad RetirementAct and the Railroad Unemployment Insurance Act, and shall furnish to theRailroad Retirement Board at the expense of the Railroad Retirement Board, suchcopies thereof as the Board shall deem necessary for its purposes in accordancewith the provisions of section 303 (c) of the Social Security Act as amended.
Upon request therefor, theCommission shall furnish to any agency of the United States charged with theadministration of public works or assistance through public employment, thename, address, ordinary occupation, and employment status of each recipient ofbenefits, and such recipient's rights to further benefits under this Chapter.
The Commission is authorizedto make such investigations, secure and transmit such information, makeavailable such services and facilities and exercise such of the other powersprovided herein with respect to the administration of this Chapter as it deemsnecessary or appropriate to facilitate the administration of any employmentsecurity or public employment service law, and in like manner, to accept andutilize information, services and facilities made available to this State bythe agency charged with the administration of such other employment security orpublic employment service law.
The Commission shall fullycooperate with the agencies of other states and shall make every proper effortwithin its means to oppose and prevent any further action which would, in itsjudgment, tend to effect complete or substantial federalization of Stateunemployment insurance funds or State employment security programs.
(l) ReciprocalArrangements.
(1) The Commission is herebyauthorized to enter into reciprocal arrangements with appropriate and dulyauthorized agencies of other states or of the federal government, or both,whereby:
a. Services performedby an individual for a single employing unit for which services are customarilyperformed in more than one state shall be deemed to be services performedentirely within any one of the states
1. In which any part ofsuch individual's service is performed or
2. In which suchindividual has his residence or
3. In which the employingunit maintains a place of business, provided there is in effect, as to suchservices, an election by the employing unit, approved by the agency chargedwith the administration of such state's employment security law, pursuant towhich the services performed by such individual for such employing unit aredeemed to be performed entirely within such state.
b. Combining wagecredits. The Commission shall participate in any arrangements for the paymentof compensation on the basis of combining an individual's wages and employmentcovered under this Chapter with his wages and employment covered under one ormore laws of the federal government and the unemployment compensation laws ofother states which are approved by the United States Secretary of Labor inconsultation with the state unemployment compensation agencies as reasonablycalculated to assure the prompt and full payment of compensation in suchsituations and which include provisions for (1) applying the base period of asingle state law to a claim involving the combining of an individual's wagesand employment covered under two or more state unemployment compensation laws,and (2) avoiding the duplicate use of wages and employment by reason of suchcombining.
c. The services of theCommission as agent may be made available to other states in taking interstateclaims for such states.
d. Contributions dueunder this Chapter with respect to wages for insured work shall for thepurposes of G.S. 96‑10 be deemed to have been paid to the fund as of the datepayment was made as contributions therefor under another state or federalemployment security law, but no such arrangement shall be entered into unlessit contains provisions for such reimbursement to the fund of such contributionsas the Commission finds will be fair and reasonable as to all affectedinterests.
e. The services of theCommission may be made available to such other agencies to assist in theenforcement and collection of judgments of such other agencies.
f. The services onvessels engaged in interstate or foreign commerce for a single employer,wherever performed, shall be deemed performed within this State or within suchother state.
g. Benefits paid byagencies of other states may be reimbursed to such agencies in cases whereservices of the claimant were "employment" under this Chapter andcontributions have been paid by the employer to this agency on remunerationpaid for such services; provided the amount of such reimbursement shall notexceed the amount of benefits such claimant would have been entitled to receiveunder the provisions of this Chapter.
(2) Reimbursements paidfrom the fund pursuant to subparagraphs b and c of subdivision (1) of thissubsection shall be deemed to be benefits for the purpose of G.S. 96‑6,96‑9, 96‑12 and 96‑12.01. The Commission is authorized tomake to other states or federal agencies and to receive from such other stateor federal agencies, reimbursements from or to the fund, in accordance witharrangements entered into pursuant to subdivision (1) of this subsection.
(3) To the extentpermissible under the laws and Constitution of the United States, theCommission is authorized to enter into or cooperate in arrangements wherebyfacilities and services provided under this Chapter and facilities and servicesprovided under the employment security law of any foreign government, may beutilized for the taking of claims and the payment of benefits under theEmployment Security Law of this State or under a similar law of suchgovernment.
(m) The Commission afterdue notice shall have the right and power to hold and conduct hearings for thepurpose of determining the rights, status and liabilities of any"employing unit" or "employer" as said terms are defined byG.S. 96‑8(4) and 96‑8(5) and subdivisions thereunder. TheCommission shall have the power and authority to determine any and allquestions and issues of fact or questions of law that may arise under theEmployment Security Law that may affect the rights, liabilities and status ofany employing unit or employer as heretofore defined by the Employment SecurityLaw including the right to determine the amount of contributions, if any, whichmay be due the Commission by any employer. Hearings may be before theCommission or a Deputy Commissioner and shall be held in the central office ofthe Commission or at any other designated place within the State. They shall beopen to the public and shall consist of a review of the evidence taken by ahearing officer designated by the Commission and a determination of the lawapplicable to that evidence. The Commission shall provide for the taking ofevidence by a hearing officer who shall be a member of the legal staff of theCommission. Such hearing officer shall have the same power to issue subpoenas,administer oaths, conduct hearings and take evidence as is possessed by theCommission and such hearings shall be recorded, and he shall transmit alltestimony and records of such hearings to the Commission for its determination.All such hearings conducted by such hearing officer shall be scheduled and heldin any county in this State in which the employing unit or employer eitherresides, maintains a place of business, or conducts business; however, theCommission may require additional testimony at any hearings held by it at itsoffice. From all decisions or determinations made by the Commission or a DeputyCommissioner any party affected thereby shall be entitled to an appeal to thesuperior court. Before such party shall be allowed to appeal, he shall within10 days after notice of such decision or determination, file with theCommission exceptions to the decision or the determination of the Commission,which exceptions will state the grounds of objection to such decision ordetermination. If any one of such exceptions shall be overruled then such partymay appeal from the order overruling the exceptions, and shall, within 10 daysafter the decision overruling the exceptions, give notice of his appeal. Whenan exception is made to the facts as found by the Commission, the appeal shallbe to the superior court in term time but the decision or determination of theCommission upon such review in the superior court shall be conclusive andbinding as to all questions of fact supported by any competent evidence. Whenan exception is made to any rulings of law, as determined by the Commission,the appeal shall be to the judge of the superior court at chambers. The partyappealing shall, within 10 days after the notice of appeal has been served,file with the Commission exceptions to the decision or determination overrulingthe exception which statement shall assign the errors complained of and thegrounds of the appeal. Upon the filing of such statement the Commission shall,within 30 days, transmit all the papers and evidence considered by it, togetherwith the assignments of errors filed by the appellant to a judge of thesuperior court holding court or residing in some district in which suchappellant either resides, maintains a place of business or conducts business,or, unless the appellant objects after being given reasonable opportunity toobject, to a judge of the Superior Court of Wake County: Provided, however, the30‑day period specified herein may be extended by agreement of parties.If there be no exceptions to any facts as found by the Commission the facts sofound shall be binding upon the court and it shall be heard by the judge atchambers at some place in the district, above mentioned, of which all partiesshall have 10 days' notice.
(n) The cause shall beentitled "State of North Carolina on Relationship of the EmploymentSecurity Commission of North Carolina against (here insert name ofappellant)," and if there are exceptions to any facts found by theCommission it shall be placed on the civil issue docket of such court and shallhave precedence over other civil actions except those described in G.S. 96‑10(b),and such cause shall be tried under such rules and regulations as areprescribed for the trial of other civil causes. By consent of all parties theappeal may be held and determined at chambers before any judge of a district inwhich the appellant either resides, maintains a place of business or conductsbusiness, or said appeal may be heard before any judge holding court therein,or in any district in which the appellant either resides, maintains a place ofbusiness or conducts business. Either party may appeal to the appellatedivision from the judgment of the superior court under the same rules andregulations as are prescribed by law for appeals, except that if an appealshall be taken on behalf of the Employment Security Commission of NorthCarolina it shall not be required to give any undertaking or make any depositto secure the cost of such appeal and such court may advance the cause on itsdocket so as to give the same a speedy hearing.
(o) The decision ordetermination of the Commission when docketed in the office of the clerk of thesuperior court of any county and when properly indexed and cross‑indexedshall have the same force and effect as a judgment rendered by the superiorcourt, and if it shall be adjudged in the decision or determination of theCommission that any employer is indebted to the Commission for contributions,penalties and interest or either of the same, then said judgment shall constitutea lien upon any realty owned by said employer in the county only from the dateof docketing of such decision or determination in the office of the clerk ofthe superior court and upon personalty owned by said employer in said countyonly from the date of levy on such personalty, and upon the execution thereonno homestead or personal property exemptions shall be allowed; provided, thatnothing herein shall affect any rights accruing to the Commission under G.S. 96‑10.The provisions of this section, however, shall not have the effect of releasingany liens for contributions, penalties or interest, or either of the same,imposed by other law, nor shall they have the effect of postponing the paymentof said contributions, penalties or interest, or depriving the said EmploymentSecurity Commission of North Carolina of any priority in order of paymentprovided in any other statute under which payment of the said contributions,penalties and interest or either of the same may be required. The superiorcourt or any appellate court shall have full power and authority to issue anyand all executions, orders, decrees, or writs that may be necessary to carryout the terms of said decision or determination of the Commission or to collectany amount of contribution, penalty or interest adjudged to be due theCommission by said decision or determination. In case of an appeal from anydecision or determination of the Commission to the superior court or from anyjudgment of the superior court to the appellate division all proceedings toenforce said judgment, decision, or determination shall be stayed until finaldetermination of such appeal but no proceedings for the collection of anyamount of contribution, penalty or interest due on same shall be suspended orstayed unless the employer or party adjudged to pay the same shall file withthe clerk of the superior court a bond in such amount not exceeding double theamount of contribution, penalty, interest or amount due and with such suretiesas the clerk of the superior court deems necessary conditioned upon the paymentof the contribution, penalty, interest or amount due when the appeal shall befinally decided or terminated.
(p) The conduct ofhearings shall be governed by suitable rules and regulations established by theCommission. The manner in which appeals and hearings shall be presented andconducted before the Commission shall be governed by suitable rules andregulations established by it. The Commission shall not be bound by common‑lawor statutory rules of evidence or by technical or formal rules of procedure butshall conduct hearings in such manner as to ascertain the substantial rights ofthe parties.
(q) Notices of hearingshall be issued by the Commission or its authorized representative and sent byregistered mail, return receipt requested, to the last known address of anyemploying unit, employers, persons, or firms involved. The notice shall be sentat least 10 days prior to the hearing date and shall contain notification ofthe place, date, hour, and purpose of the hearing. Subpoenas for witnesses toappear at any hearing shall be issued by the Commission or its authorizedrepresentative and shall order him to appear at the time, date and place shownthereon. Any bond or other undertaking required to be given in order to suspendor stay any execution shall be given payable to the Employment SecurityCommission of North Carolina. Any such bond or other undertaking may beforfeited or sued upon as are any other undertakings payable to the State.
(r) None of theprovisions or sections herein set forth in subsections (m)‑(q) shall havethe force and effect nor shall the same be construed or interpreted asrepealing any of the provisions of G.S. 96‑15 which provide for theprocedure and determination of all claims for benefits and such claims forbenefits shall be prosecuted and determined as provided by said G.S. 96‑15.
(s) Upon a finding ofgood cause, the Commission shall have the power in its sole discretion toforgive, in whole or in part, any overpayment arising under G.S. 96‑18(g)(2).
(t) Confidentiality ofRecords, Reports, and Information Obtained from Claimants, Employers, and Unitsof Government.
(1) Confidentiality ofInformation Contained in Records and Reports. (i) Except as hereinafterotherwise provided, it shall be unlawful for any person to obtain, disclose, oruse, or to authorize or permit the use of any information which is obtainedfrom any employing unit, individual, or unit of government pursuant to theadministration of this Chapter or G.S. 108A‑29. (ii) Any claimant oremployer or their legal representatives shall be supplied with information fromthe records of the Employment Security Commission to the extent necessary forthe proper presentation of claims or defenses in any proceeding under thisChapter. Notwithstanding any other provision of law, any claimant may besupplied, subject to restrictions as the Commission may by regulationprescribe, with any information contained in his payment record or on his mostrecent monetary determination, and any individual, as well as any interestedemployer, may be supplied with information as to the individual's potentialbenefit rights from claim records. (iii) Subject to restrictions as theCommission may by regulation provide, information from the records of theEmployment Security Commission may be made available to any agency or publicofficial for any purpose for which disclosure is required by statute orregulation. (iv) The Commission may, in its sole discretion, permit the use ofinformation in its possession by public officials in the performance of theirpublic duties. (v) The Commission shall release the payment and the amount ofunemployment compensation benefits upon receipt of a subpoena in a proceedinginvolving child support. (vi) The Commission shall furnish to the StateController any information the State Controller needs to prepare and publish acomprehensive annual financial report of the State or to track debtors of theState.
(2) Job ServiceInformation. (i) Except as hereinafter otherwise provided it is unlawful forany person to disclose any information obtained by the North Carolina StateEmployment Service Division from workers, employers, applicants, or otherpersons or groups of persons in the course of administering the State PublicEmployment Service Program. Provided, however, that if all interested partieswaive in writing the right to hold such information confidential, theinformation may be disclosed and used but only for those purposes that theparties and the Commission have agreed upon in writing. (ii) The EmploymentService Division shall make public, through the newspapers and any othersuitable media, information as to job openings and available applicants for thepurpose of supplying the demand for workers and employment. (iii) The LaborMarket Information Division shall collect, collate, and publish statistical andother information relating to the work under the Commission's jurisdiction;investigate economic developments, and the extent and causes of unemploymentand its remedies with the view of preparing for the information of the GeneralAssembly such facts as in the Commission's opinion may make further legislationdesirable. (iv) Except as provided by Commission regulation, any informationpublished pursuant to this subdivision shall not be published in any mannerrevealing the identity of the applicant or the employing unit.
(3) Penalties forDisclosure or Improper Use. Any person violating any provision of thissection may be fined not less than twenty dollars ($20.00) nor more than twohundred dollars ($200.00), or imprisoned for not longer than 90 days, or both.
(4) Regulations. TheCommission may provide by regulation for procedures by which requests forinformation will be considered and the methods by which such information may bedisclosed. The Commission is authorized to provide by regulation for theassessment of fees for securing and copying information released under thissection.
(5) Privileged Status ofLetters and Reports and Other Information Relating to Administration of thisChapter. All letters, reports, communication, or any other matters, eitheroral or written, including any testimony at any hearing, from the employer oremployee to each other or to the Commission or any of its agents,representatives, or employees, which letters, reports, or other communicationshall have been written, sent, delivered, or made in connection with therequirements of the administration of this Chapter, shall be absolutelyprivileged communication in any civil or criminal proceedings exceptproceedings pursuant to or involving the administration of this Chapter andexcept proceedings involving child support and only for the purpose ofestablishing the payment and amount of unemployment compensation benefits.Nothing in this subdivision shall be construed to prohibit the Commission, uponwritten request and on a reimbursable basis only, from disclosing informationfrom the records of a proceeding before an appeals referee, deputycommissioner, or other hearing officer by whatever name called, compiled forthe purpose of resolving issues raised pursuant to the Employment Security Law.
(6) Nothing in thissubsection (t) shall operate to relieve any claimant or employing unit fromdisclosing any information required by this Chapter or by regulationspromulgated thereunder.
(7) Nothing in thissubsection (t) shall be construed to prevent the Commission from allowing anyindividual or entity to examine and copy any report, return, or any otherwritten communication made by that individual or entity to the Commission, itsagents, or its employees.
(7a) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis only, to officers and employees of theDepartment of Housing and Urban Development and to representatives of a publichousing agency as defined in Section 303(i)(4) of the Social Security Act, anyinformation from the records of the Employment Security Commission with respectto individuals applying for or participating in any housing assistance programadministered by the Department of Housing and Urban Development who have signedan appropriate consent form approved by the Secretary of Housing and UrbanDevelopment. It is the purpose of this paragraph to assure the EmploymentSecurity Commission's compliance with Section 303(i)(1) of the Social SecurityAct and it shall be construed accordingly.
(7b) Nothing in thissubsection (t) shall be construed to prevent the Commission from disclosing,upon request and on a reimbursable basis, to the Secretary of Health and HumanServices, any information from the records of the Employment SecurityCommission as may be required by Section 303(h)(1) of the Social Security Act.It is the purpose of this paragraph to assure compliance with Section 303(h)(1)of the Social Security Act and it shall be construed accordingly.
(8) Any finding of factor law, judgment, determination, conclusion or final order made by anadjudicator, appeals referee, commissioner, the Commission or any other personacting under authority of the Commission pursuant to the Employment SecurityLaw is not admissible or binding in any separate or subsequent action orproceeding, between a person and his present or previous employer broughtbefore an arbitrator, court or judge of this State or the United States,regardless of whether the prior action was between the same or related partiesor involved the same facts.
Provided,however, any finding of fact or law, judgment, determination, conclusion, orfinal order made by an adjudicator, appeals referee, commissioner, theCommission or any other person acting under the authority of the Commissionpursuant to the Employment Security Law shall be admissible in proceedingsbefore the North Carolina Industrial Commission.
(u) Service of processupon the Commission in any proceeding instituted before an administrativeagency or court of this State shall be pursuant to G.S. 1A‑1, Rule4(j)(4); however, notice of the requirement to withhold unemploymentcompensation benefits pursuant to G.S. 110‑136.2(f) shall be served uponthe process agent for the Employment Security Commission by regular or couriermail.
(v) Advisory rulingsmay be made by the Commission with respect to the applicability of any statuteor rule administered by the Commission, as follows:
(1) All requests foradvisory rulings shall be made in writing and submitted to the Chief Counsel.Such requests shall state the facts and statutes or rules on which the rulingis requested.
(2) The Chief Counselmay request from any person securing an advisory ruling any additionalinformation that is necessary. Failure to supply such additional informationshall be cause for the Commission to decline to issue an advisory ruling.
(3) The Commission maydecline to issue an advisory ruling if any administrative or judicialproceeding is pending with the person requesting the ruling on the same factualgrounds. The Commission may decline to issue an advisory ruling if such aruling may harm the Commission's interest in any litigation in which it is ormay be a party.
(4) All advisory rulingsshall be issued no later than 30 days from the date all information necessaryto make a ruling has been received by the Chief Counsel.
(5) No advisory rulingshall be binding upon the Commission provided that in any subsequentenforcement action initiated by the Commission, any person's reliance on suchruling shall be considered in mitigation of any penalty sought to be assessed. (Ex. Sess. 1936, c. 1, s. 11;1939, c. 2; c. 27, s. 8; c. 52, s. 5; cc. 207, 209; 1941, c. 279, ss. 4, 5;1943, c. 377, ss. 16‑23; 1945, c. 522, ss. 1‑3; 1947, c. 326, ss.1, 3, 4, 26; c. 598, ss. 1, 6, 7; 1949, c. 424, s. 1; 1951, c. 332, ss. 1, 18;1953, c. 401, ss. 1‑4; 1955, c. 385, ss. 1, 2; c. 479; 1957, c. 1059, s.1; 1969, c. 44, s. 63; c. 575, ss. 1, 2; 1971, c. 673, ss. 1, 2; 1977, c. 727,ss. 8‑10; 1979, c. 660, s. 2; 1979, 2nd Sess., c. 1212, s. 2; 1981, c.160, s. 1; 1983, c. 625, s. 16; 1983 (Reg. Sess., 1984), c. 995, s. 6; 1985, c.197, ss. 1, 6, 7; c. 552, s. 23; 1987, c. 273; c. 764, ss. 4, 4.1, 5; 1989, c.583, ss. 1, 2; c. 707, ss. 1, 2; 1991, c. 603, s. 1; c. 723, s. 3; 1993, c.343, s. 1; c. 512, s. 3; 1995, c. 507, s. 27.8(n); 1999‑340, s. 10; 2000‑140,s. 93.1(a); 2001‑424, s. 12.2(b); 2004‑203, s. 8; 2007‑251,ss. 1, 2.)
