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S.B. 181 Enrolled
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8 LONG TITLE
9 General Description:
10 This bill repeals the Employment Security Administration Fund and makes conforming
11 changes within Title 35A, Utah Workforce Services Code, and Title 63J, Budgeting.
12 Highlighted Provisions:
13 This bill:
14 . eliminates the Employment Security Administration Fund due to its obsolescence,
15 allowing the Unemployment Insurance Division of the Department of Workforce
16 Services to better meet its federal reporting requirements; and
17 . makes conforming and technical changes.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 35A-3-115, as renumbered and amended by Laws of Utah 1998, Chapter 1
25 35A-4-201, as last amended by Laws of Utah 2005, Chapter 81
26 35A-4-501, as last amended by Laws of Utah 2006, Chapter 22
27 35A-4-506, as last amended by Laws of Utah 1997, Chapter 375
28 35A-4-507, as renumbered and amended by Laws of Utah 1996, Chapter 240
29 63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
30 REPEALS:
31 35A-4-505, as last amended by Laws of Utah 1998, Chapter 1
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 35A-3-115 is amended to read:
35 35A-3-115. Public Employment Offices -- Agreements with other authorities --
36 Federal system accepted -- Appropriation.
37 (1) (a) The division shall establish and maintain free public employment offices in
38 [
39 chapter and for the purposes of performing the functions as are within the purview of the Act
40 of Congress entitled "An act to provide for the establishment of a national employment system
41 and for co-operation with the states in the promotion of such system, and for other purposes,"
42 approved June 6, 1933, 48 Stat. 113; U. S. Code, Title 29, Section 49 (c) as amended,
43 hereinafter referred to as the "Wagner-Peyser Act."
44 (b) The division shall consult with regional councils on workforce services when
45 determining the location of public employment offices.
46 (c) A public employment office may be located in connection with or as an integrated
47 part of an employment center established under Section 35A-2-203 .
48 (2) (a) The provisions of the Wagner-Peyser Act, 29 U.S.C. 49-49c, 49g, 49h, 49k,
49 and 557, are accepted by this state[
50 (b) The department is designated and constitutes the agency of this state for the
51 purposes of the act.
52 [
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56 offices, and promoting the use of their facilities, the division [
57 agreements with the railroad retirement board, or any other agency of the United States, or of
58 this or any other state, charged with the administration of any law whose purposes are
59 reasonably related to the purposes of this chapter[
60 (b) As a part of [
61 the division may accept moneys, services, or quarters as a contribution to the maintenance of
62 the state system of public employment offices or as reimbursement for services performed.
63 [
64
65 Section 2. Section 35A-4-201 is amended to read:
66 35A-4-201. General definitions.
67 As used in this chapter:
68 (1) "Base-period" means the first four of the last five completed calendar quarters next
69 preceding the first day of the individual's benefit year with respect to any individual whose
70 benefit year commences on or after January 5, 1986.
71 (2) "Benefit year" means the 52 consecutive week period beginning with the first week
72 with respect to which an individual files for benefits and is found to have an insured status.
73 (3) "Benefits" means the money payments payable to an individual as provided in this
74 chapter with respect to the individual's unemployment.
75 (4) "Calendar quarter" means the period of three consecutive months ending on March
76 31, June 30, September 30, or December 31, or the equivalent, as the department may by rule
77 prescribe.
78 (5) "Contribution" means the money payments required by this chapter to be made
79 into the Unemployment Compensation Fund by any employing unit on account of having
80 individuals in its employ.
81 (6) "Division" means the Unemployment Insurance Division.
82 (7) "Employment office" means a free public employment office or branch operated by
83 this or any other state as a part of a state-controlled system of public employment offices or by
84 a federal agency charged with the administration of an unemployment compensation program
85 or free public employment offices.
86 [
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89 35A-4-402 (7)(f).
90 [
91 chapter.
92 [
93 each year, the total wages of insured workers for the preceding calendar year, divided by the
94 average monthly number of insured workers, determined by dividing by 12 the total insured
95 workers for the preceding calendar year as determined under the rules of the department
96 calculated to two decimal places, disregarding any fraction of one cent.
97 [
98 November of each year, the total wages of insured workers for the preceding fiscal year,
99 divided by the average monthly number of insured workers, determined by dividing by 12 the
100 total insured workers for the preceding fiscal year as determined under the rules of the
101 department calculated to two decimal places, disregarding any fraction of one cent.
102 [
103 year wage determined in Subsection [
104 places, disregarding any fraction of one cent.
105 [
106 determined in Subsection [
107 disregarding any fraction of one cent.
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109 base-period, performed services and earned wages in employment sufficient to qualify for
110 benefits under Section 35A-4-403 .
111 [
112 35A-4-203 .
113 [
114 average fiscal year wage for the preceding fiscal year, for example, fiscal year 1990 for
115 individuals establishing benefit years in 1991, rounded up to the next higher multiple of $100.
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117 the District of Columbia.
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119 owned by an American Indian tribe.
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121 the department may prescribe by rule.
122 Section 3. Section 35A-4-501 is amended to read:
123 35A-4-501. Unemployment Compensation Fund -- Administration -- Contents --
124 Treasurer and custodian -- Separate accounts -- Use of money requisitioned -- Advances
125 under Social Security Act.
126 (1) (a) There is established the Unemployment Compensation Fund, separate and apart
127 from all public moneys or funds of this state, that shall be administered by the department
128 exclusively for the purposes of this chapter.
129 (b) This fund shall consist of the following moneys, all of which shall be mingled and
130 undivided:
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132 made from the clearing account under Subsection 35A-4-306 (5);
133 [
134 [
135 the fund;
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138 under Section 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended; and
139 [
140 (2) (a) The state treasurer shall:
141 (i) be the treasurer and custodian of the fund[
142 (ii) administer the fund in accordance with the directions of the division; and [
143 (iii) pay all warrants drawn upon it by the division or its duly authorized agent in
144 accordance with rules made by the department.
145 (b) The division shall maintain within the fund three separate accounts:
146 (i) a clearing account;
147 (ii) an unemployment trust fund account; and
148 (iii) a benefit account.
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150 immediately deposited in the clearing account.
151 [
152 otherwise provided in this section, be deposited immediately with the secretary of the treasury
153 of the United States of America to the credit of the account of this state in the unemployment
154 trust fund, established and maintained under Section 904 of the Social Security Act, 42 U.S.C.
155 1104, as amended, any provisions of law in this state relating to the deposit, administration,
156 release, or disbursement of moneys in the possession or custody of this state to the contrary
157 notwithstanding.
158 (ii) Refunds of contributions payable under Subsections 35A-4-205 (1)(a) and
159 35A-4-306 (5) may be paid from the clearing account or the benefit account.
160 [
161 account in the unemployment trust fund in the United States treasury.
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163 depository bank in which general funds of this state may be deposited, but no public deposit
164 insurance charge or premium may be paid out of the fund.
165 [
166 other state funds, but shall be maintained in separate accounts on the books of the depository
167 bank.
168 (ii) The money shall be secured by the depository bank to the same extent and in the
169 same manner as required by the general depository law of this state.
170 (iii) Collateral pledged for this purpose shall be kept separate and distinct from any
171 collateral pledged to secure other funds of the state.
172 [
173 faithful performance of the state treasurer's duties in connection with the unemployment
174 compensation fund provided for under this chapter.
175 (ii) The liability on the official bond shall be effective immediately upon the
176 enactment of this provision, and that liability shall exist in addition to the liability upon any
177 separate bond existent on the effective date of this provision, or which may be given in the
178 future.
179 (iii) All sums recovered for losses sustained by the fund shall be deposited in the fund.
180 (3) (a) (i) Moneys requisitioned from the state's account in the unemployment trust
181 fund shall, except as set forth in this section, be used exclusively for the payment of benefits
182 and for refunds of contributions under Subsections 35A-4-205 (1)(a) and 35A-4-306 (5).
183 (ii) The department shall from time to time requisition from the unemployment trust
184 fund amounts, not exceeding the amounts standing to this state's account in the fund, as it
185 considers necessary for the payment of those benefits and refunds for a reasonable future
186 period.
187 (iii) (A) Upon receipt the treasurer shall deposit the moneys in the benefit account and
188 shall pay benefits and refunds from the account by means of warrants issued by the division in
189 accordance with rules prescribed by the department.
190 (B) Expenditures of these moneys in the benefit account and refunds from the clearing
191 account are not subject to any provisions of law requiring specific appropriations or other
192 formal release by state officers of money in their custody.
193 (b) Moneys in the state's account in the unemployment trust fund that were collected
194 under the Federal Unemployment Tax Act, 26 U.S.C. 3301 et seq., and credited to the state
195 under Section 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended may be
196 requisitioned from the state's account and used in the payment of expenses incurred by the
197 department for the administration of the state's unemployment law and public employment
198 offices, if the expenses are incurred and the withdrawals are made only after and under a
199 specific appropriation of the Legislature that specifies:
200 (i) the purposes and amounts;
201 (ii) that the moneys may not be obligated after the two-year period that began on the
202 date of the enactment of the appropriation law; and
203 (iii) that the total amount which may be used during a fiscal year shall not exceed the
204 amount by which the aggregate of the amounts credited to this state's account under Section
205 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended, during the fiscal year and
206 the 34 preceding fiscal years, exceeds the aggregate of the amounts used by this state for
207 administration during the same 35 fiscal years.
208 (A) For the purpose of Subsection (3)(b)(iii), amounts used during any fiscal year shall
209 be charged against equivalent amounts that were first credited and that have not previously
210 been so charged. An amount used during any fiscal year may not be charged against any
211 amount credited during a fiscal year earlier than the 34th preceding fiscal year.
212 (B) Except as appropriated and used for administrative expenses, as provided in this
213 section, moneys transferred to this state under Section 903 of the Social Security Act as
214 amended, may be used only for the payment of benefits.
215 (C) Any moneys used for the payment of benefits may be restored for appropriation
216 and use for administrative expenses, upon request of the governor, under Section 903(c) of the
217 Social Security Act.
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223 expenditure, and return of funds deposited.
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225 fund and, if not expended, shall be returned promptly to the account of this state in the
226 unemployment trust fund.
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228 expended or available for expenditure in any manner that would permit their substitution for,
229 or a corresponding reduction in, federal funds that would in the absence of the moneys be
230 available to finance expenditures for the administration of this chapter.
231 (c) Any balance of moneys requisitioned from the unemployment trust fund that
232 remains unclaimed or unpaid in the benefit account after the expiration of the period for which
233 the sums were requisitioned shall either be deducted from estimates for, and may be utilized
234 for the payment of, benefits and refunds during succeeding periods, or in the discretion of the
235 division, shall be redeposited with the secretary of the treasury of the United States of America
236 to the credit of the state's account in the unemployment trust fund, as provided in Subsection
237 (2).
238 (4) (a) The provisions of Subsections (1), (2), and (3), to the extent that they relate to
239 the unemployment trust fund, shall be operative only so long as the unemployment trust fund
240 continues to exist and so long as the secretary of the treasury of the United States of America
241 continues to maintain for the state a separate book account of all moneys deposited in the fund
242 by the state for benefit purposes, together with the state's proportionate share of the earnings of
243 the unemployment trust fund, from which no other state is permitted to make withdrawals.
244 (b) (i) When the unemployment trust fund ceases to exist, or the separate book account
245 is no longer maintained, all moneys belonging to the unemployment compensation fund of the
246 state shall be administered by the division as a trust fund for the purpose of paying benefits
247 under this chapter, and the division shall have authority to hold, invest, transfer, sell, deposit,
248 and release the moneys, and any properties, securities, or earnings acquired as an incident to
249 the administration.
250 (ii) The moneys shall be invested in readily marketable bonds or other interest-bearing
251 obligations of the United States of America, of the state, or of any county, city, town, or school
252 district of the state, at current market prices for the bonds.
253 (iii) The investment shall be made so that all the assets of the fund shall always be
254 readily convertible into cash when needed for the payment of benefits.
255 Section 4. Section 35A-4-506 is amended to read:
256 35A-4-506. Special Administrative Expense Fund.
257 (1) There is created in the General Fund a restricted account known as the Special
258 Administrative Expense Fund.
259 (2) (a) All interest and penalties collected under this chapter, less refunds made under
260 Subsection 35A-4-306 (5), shall be paid into this fund from the clearing account of the fund at
261 the end of each calendar month.
262 (b) Any voluntary contributions tendered as a contribution to this fund and any other
263 moneys received for that purpose shall be paid into this fund.
264 (c) The moneys shall not be expended or available for expenditure in any manner that
265 would permit their substitution for, or a corresponding reduction in, federal funds that would
266 in the absence of those moneys be available to finance expenditures for the administration of
267 this chapter.
268 (3) Nothing in this section shall prevent those moneys from being used as a revolving
269 fund to cover expenditures, necessary and proper under this chapter, for which federal funds
270 have been duly requested but not yet received subject to the charging of those expenditures
271 against the funds when received.
272 (4) The moneys in this fund shall be deposited, administered, and dispersed in
273 accordance with the directions of the Legislature.
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282 within a reasonable time any moneys received by this state under Section 302 of the Federal
283 Social Security Act, 42 U.S.C. 502, as amended, that because of any action of contingency
284 have been lost or have been expended for purposes other than or in amounts in excess of those
285 necessary for the proper administration of this chapter.
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287 expenditure in accordance with this section and shall not lapse at any time or be transferred to
288 any other fund except as directed by the Legislature.
289 [
290 duly authorized agent in accordance with such rules as the department shall prescribe.
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292 the faithful performance of the treasurer's duties in connection with the special administrative
293 expense fund provided for under this chapter.
294 (b) Liability on the official bond shall exist in addition to any liability upon any
295 separate bond existent on the effective date of this provision or that may be given in the future.
296 (c) All sums recovered on any surety bond losses sustained by the special
297 administrative expense fund shall be deposited in that fund or in the General Fund if so
298 directed by the Legislature.
299 Section 5. Section 35A-4-507 is amended to read:
300 35A-4-507. Authority to obtain money from state's account in federal
301 unemployment trust fund -- Use and deposit.
302 (1) Notwithstanding the provisions of Sections 35A-4-501 [
303 35A-4-506 , the department [
304 account in the unemployment trust fund in the treasury of the United States the moneys
305 standing to the state's credit as may, consistent with conditions for approval of this chapter
306 under the Federal Unemployment Tax Act, 26 U.S.C. 3301 et seq., be used for expenses of
307 administering this chapter and to expend [
308 (2) Moneys [
309 Administrative Expense Fund.
310 Section 6. Section 63J-1-602 is amended to read:
311 63J-1-602. Nonlapsing accounts and funds.
312 (1) The following revenue collections, appropriations from a fund or account, and
313 appropriations to a program are nonlapsing:
314 (a) appropriations made to the Legislature and its committees;
315 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
316 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
317 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
318 (e) funds collected by pesticide dealer license registration fees, as provided in Section
319 4-14-3 ;
320 (f) funds collected by pesticide applicator business registration fees, as provided in
321 Section 4-14-13 ;
322 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
323 (h) funds deposited as dedicated credits under the Insect Infestation Emergency
324 Control Act, as provided in Section 4-35-6 ;
325 (i) the Percent-for-Art Program created in Section 9-6-404 ;
326 (j) the Centennial History Fund created in Section 9-8-604 ;
327 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
328 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
329 (m) the LeRay McAllister Critical Land Conservation Program created in Section
330 11-38-301 ;
331 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
332 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided
333 in Section 19-6-120 ;
334 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
335 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
336 (q) award monies under the Crime Reduction Assistance Program, as provided under
337 Section 24-1-19 ;
338 (r) funds collected from the emergency medical services grant program, as provided in
339 Section 26-8a-207 ;
340 (s) fees and other funding available to purchase training equipment and to administer
341 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
342 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
343 federal Social Security Act, as provided in Section 26-18-3 ;
344 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
345 26-46-102 ;
346 (v) monies collected from subscription fees for publications prepared or distributed by
347 the insurance commissioner, as provided in Section 31A-2-208 ;
348 (w) monies received by the Insurance Department for administering, investigating
349 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
350 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
351 provided in Section 31A-31-109 ;
352 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
353 provided in Section 31A-38-104 ;
354 (z) certain funds in the Department of Workforce Services' program for the education,
355 training, and transitional counseling of displaced homemakers, as provided in Section
356 35A-3-114 ;
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358 [
359 [
360 under Section 36-24-101 ;
361 [
362 [
363 of license plates and decals, as provided in Section 41-1a-1201 ;
364 [
365 as provided in Section 41-1a-1221 ;
366 [
367 Business Regulation Act, as provided in Section 41-3-601 ;
368 [
369 Business Regulation Act, as provided in Section 41-3-604 ;
370 [
371 Section 41-22-19.5 ;
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373 as provided in Section 41-22-36 ;
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375 46-1-23 ;
376 [
377 provided in Section 51-9-411 ;
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379 53-1-118 ;
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381 provided in Section 53-2-107 ;
382 [
383 Department of Public Safety Restricted Account, as provided in Section 53-3-106 ;
384 [
385 Section 53-3-905 ;
386 [
387 Prevention and Safety Act, as provided in Section 53-7-314 ;
388 [
389 [
390 [
391 of Education for new teacher bonus and performance-based compensation plans, as provided
392 in Section 53A-17a-148 ;
393 [
394 of Education for implementation of proposals to improve mathematics achievement test
395 scores, as provided in Section 53A-17a-152 ;
396 [
397 [
398 certain products or services, as provided in Section 53A-24-105 ;
399 [
400 [
401 Regents for teacher preparation programs, as provided in Section 53B-6-104 ;
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403 School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
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405 lines imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
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407 Licensing for violation of unlawful or unprofessional conduct that are used for education and
408 enforcement purposes, as provided in Section 58-17b-505 ;
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410 58-31b-103 ;
411 [
412 58-37-7.7 ;
413 [
414 Section 58-44a-103 ;
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416 Section 58-56-9 ;
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418 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
419 provided in Section 58-63-103 ;
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421 Section 58-76-103 ;
422 [
423 Fund, as provided in Section 59-12-103 ;
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425 background check for broker and sales agent licenses, as provided in Section 61-2-9 ;
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427 61-2-28 ;
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429 background check for a mortgage loan license, as provided in Section 61-2c-202 ;
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431 records in an investigation, as provided in Section 61-2c-401 ;
432 [
433 provided in Section 62A-1-111 ;
434 [
435 provided in Section 62A-4a-110 ;
436 [
437 provided in Section 62A-13-109 ;
438 [
439 by a county treasurer, as provided in Section 62A-15-503 ;
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441 provided in Section 62A-5-102 ;
442 [
443 as provided in Section 62A-15-103 ;
444 [
445 sale or disposal of buffalo, as provided under Section 63-11-19.2 ;
446 [
447 State Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
448 [
449 under Section 63-11-19.6 ;
450 [
451 created under Section 63-11a-503 ;
452 [
453 63-11a-504 ;
454 [
455 63-73-10 ;
456 [
457 [
458 63A-11-203 ;
459 [
460 63C-4-103 ;
461 [
462 Commission, as provided in Section 63C-6-104 ;
463 [
464 Medical Education Council, as provided in Section 63C-8-102 ;
465 [
466 Utah Athletic Commission, as provided under Section 63C-11-301 ;
467 [
468 publications, as provided in Section 63G-3-402 ;
469 [
470 Development's Enterprise Zone Act, as provided in Section 63M-1-416 ;
471 [
472 63M-1-1406 ;
473 [
474 Development in the Governor's Office of Economic Development, as provided in Section
475 63M-1-1604 ;
476 [
477 Restricted Account, as provided in Section 63M-1-2003 ;
478 [
479 Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
480 [
481 Section 63M-1-2303 ;
482 [
483 in Section 64-13-21.2 ;
484 [
485 state parole inmates, as provided in Subsection 64-13e-104 (2);
486 [
487 65A-5-1 ;
488 [
489 Forestry, Fire, and State Lands, as provided in Section 65A-8-103 ;
490 [
491 program, as provided in Section 67-19-6 ;
492 [
493 provided in Section 69-2-5.5 ;
494 [
495 Loan Fund, as provided in Section 72-2-117 ;
496 [
497 provided in Section 72-2-117.5 ;
498 [
499 provided in Section 77-2-120 ;
500 [
501 as provided in Section 77-2-122 ;
502 [
503 Program, as provided in Section 72-3-207 ;
504 [
505 [
506 drilling fines or bonds, as provided in Section 73-3-25 ;
507 [
508 Jordan River that are transferred to the Division of Parks and Recreation, as provided in
509 Section 73-10e-1 ;
510 [
511 Boating Act, as provided in Section 73-18-25 ;
512 [
513 and Development Fund, as provided in Section 73-23-2 ;
514 [
515 created in Section 73-28-404 ;
516 [
517 Reserve Account, as provided in Section 73-103-1 ;
518 [
519 as provided in Section 77-10a-19 ;
520 [
521 Section 77-32-601 ;
522 [
523 [
524 provided in Subsection 78A-6-203 (1)(c);
525 [
526 78A-6-210 ; and
527 [
528 interpreters, as provided in Section 78B-1-146 .
529 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
530 program may be treated as nonlapsing unless:
531 (a) it is expressly referenced by this section;
532 (b) it is designated in a condition of appropriation in the appropriations bill; or
533 (c) nonlapsing authority is granted under Section 63J-1-603 .
534 (3) Each legislative appropriations subcommittee shall review the accounts and funds
535 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
536 Section 7. Repealer.
537 This bill repeals:
538 Section 35A-4-505, Employment Security Administration Fund.
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