The proposed bill seeks to exempt volunteer first responders in New Jersey from unemployment compensation coverage and related benefits under R.S.43:21-1 et seq. It specifically states that services performed by volunteer firefighters, members of first aid or emergency squads, and other individuals dispatched to emergency situations will not be subject to unemployment insurance taxes or benefits. Additionally, the bill introduces a definition for "volunteer first responder" and clarifies that any stipends, including clothing allowances, received for their services will not be included in gross income for tax purposes.

To implement these changes, the bill amends R.S.43:21-19 to clarify the status of volunteer first responders concerning unemployment benefits, ensuring their volunteer service does not affect their eligibility for such compensation. It also supplements Chapter 6 of Title 54A of the New Jersey Statutes to further define the treatment of income received for volunteer emergency services. The rationale behind this legislation is to alleviate the challenges municipalities face in recruiting volunteers for emergency services by providing financial incentives, thereby enhancing community emergency response capabilities. The bill will take effect immediately, with the provisions regarding gross income applying to taxable years beginning after January 1 of the year following its enactment.