(RALEIGH) -- Gov. Bev Perdue vetoed legislation that would have finalized a move of the Employment Security Commission to the Department of Commerce.

Provisions in the state budget already started the agency’s transition to its new home. Supporters say this bill would essentially tie up the loose ends and clarify existing laws that have to do with ESC. However, a press release from the governor’s office would suggest that other included changes made the bill problematic.

“This bill will raise unemployment taxes on various businesses of all shapes and sizes across the state. It will also greatly increase the amount of time a company has to respond to an unemployment claim, which violates federal policy and could delay benefits for people who are entitled to receive them,” Perdue said in a prepared statement. “Finally, this bill will likely cost North Carolina millions of federal dollars that unemployed people and their families need so desperately.”
 
Perdue cited a letter from the U.S. Department of Labor. Federal officials apparently took issue with four changes, including provisions that would prevent individuals with "unsatisfactory performance" or those convicted of criminal behavior from receiving benefits.  Another email from ESC officials suggests that employers would see Federal Unemployment Tax (FUTA) rates jump from 0.8 percent to 6.2 percent.
 
Perdue issued an Executive Order shortly following the veto to “correct many issues and to maintain the integrity of the Employment Security Commission’s process for administering unemployment benefits.”