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H.B. 23






Chief Sponsor: Jeremy A. Peterson

Senate Sponsor: Curtis S. Bramble

             8      LONG TITLE
             9      Committee Note:
             10          The Workforce Services and Community and Economic Development Interim
             11      Committee recommended this bill.
             12      General Description:
             13          This bill modifies the Employment Security Act by requiring the Department of
             14      Workforce Services to develop a cost allocation plan when funds from the Special
             15      Administrative Expense Account are used for certain purposes.
             16      Highlighted Provisions:
             17          This bill:
             18          .    requires the Department of Workforce Services to develop a cost allocation plan
             19      that complies with Department of Labor regulations when funds from the Special
             20      Administrative Expense Account are used for purposes unrelated to the
             21      administration of the unemployment insurance program; and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:

             28      AMENDS:
             29          35A-4-506, as last amended by Laws of Utah 2011, Chapters 297 and 303
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 35A-4-506 is amended to read:
             33           35A-4-506. Special Administrative Expense Account.
             34          (1) There is created a restricted account within the General Fund known as the "Special
             35      Administrative Expense Account."
             36          (2) (a) Interest and penalties collected under this chapter, less refunds made under
             37      Subsection 35A-4-306 (5), shall be paid into the restricted account from the clearing account of
             38      the restricted account at the end of each calendar month.
             39          (b) A contribution to the restricted account and any other money received for that
             40      purpose shall be paid into the restricted account.
             41          (c) The money in the restricted account may not be expended in any manner that would
             42      permit [their] its substitution for, or a corresponding reduction in, federal funds that would in
             43      the absence of the money be available to finance expenditures for the administration of this
             44      chapter.
             45          (3) Nothing in this section shall prevent the money from being used as a revolving fund
             46      to cover expenditures, necessary and proper under this chapter, for which federal funds have
             47      been duly requested but not yet received subject to the charging of those expenditures against
             48      the funds when received.
             49          (4) [Money] Subject to Subsection (6), money in the restricted account shall be
             50      deposited, administered, and dispersed in accordance with the directions of the Legislature.
             51          (5) [Money] Subject to Subsection (6), money in the restricted account is made
             52      available to replace, within a reasonable time, any money received by this state under Section
             53      302 of the [Federal] Social Security Act, 42 U.S.C. 502, as amended, that because of any action
             54      of contingency [have] has been lost or [have] has been expended for purposes other than or in
             55      amounts in excess of those necessary for the proper administration of this chapter.
             56          (6) If money in the restricted account is used for a purpose unrelated to the
             57      administration of the unemployment compensation program as described in Subsection
             58      303(a)(8) of the Social Security Act, 42 U.S.C. 503 (a)(8), as amended, the division shall

             59      develop and follow a cost allocation plan in compliance with United States Department of
             60      Labor regulations, including the cost principles described in 29 C.F.R. 97.22(b) and 2 C.F.R.
             61      Part 225.
             62          [(6)] (7) Money in the restricted account shall be available to the division for
             63      expenditure in accordance with this section.
             64          [(7)] (8) The state treasurer shall pay all warrants drawn upon it by the division or its
             65      duly authorized agent in accordance with [such] rules [as] made by the department [shall
             66      prescribe].
             67          [(8)] (9) (a) The state treasurer [shall be] is liable on the state treasurer's official bond
             68      for the faithful performance of the treasurer's duties in connection with the Special
             69      Administrative Expense Account [provided for under] described in this chapter.
             70          (b) Liability on the official bond [shall exist] exists in addition to any liability upon any
             71      separate bond [existent] that exists on the effective date of this provision or that may be given
             72      in the future.
             73          (c) Any money recovered on any surety bond losses sustained by the Special
             74      Administrative Expense Account shall be deposited in the restricted account or in the General
             75      Fund if [so] directed by the Legislature.

Legislative Review Note
    as of 11-17-11 9:03 AM

Office of Legislative Research and General Counsel

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