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S.B. 181
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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
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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
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39 chapter and for the purposes of performing the functions as are within the purview of the Act of
40 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, and
49 557, 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.
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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.
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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 into
79 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.
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90 chapter.
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92 each year, the total wages of insured workers for the preceding calendar year, divided by the
93 average monthly number of insured workers, determined by dividing by 12 the total insured
94 workers for the preceding calendar year as determined under the rules of the department
95 calculated to two decimal places, disregarding any fraction of one cent.
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97 November of each year, the total wages of insured workers for the preceding fiscal year,
98 divided by the average monthly number of insured workers, determined by dividing by 12 the
99 total insured workers for the preceding fiscal year as determined under the rules of the
100 department calculated to two decimal places, disregarding any fraction of one cent.
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102 year wage determined in Subsection [
103 places, disregarding any fraction of one cent.
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105 determined in Subsection [
106 disregarding any fraction of one cent.
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108 base-period, performed services and earned wages in employment sufficient to qualify for
109 benefits under Section 35A-4-403 .
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111 35A-4-203 .
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113 fiscal year wage for the preceding fiscal year, for example, fiscal year 1990 for individuals
114 establishing benefit years in 1991, rounded up to the next higher multiple of $100.
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116 the District of Columbia.
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118 owned by an American Indian tribe.
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120 the department may prescribe by rule.
121 Section 3. Section 35A-4-501 is amended to read:
122 35A-4-501. Unemployment Compensation Fund -- Administration -- Contents --
123 Treasurer and custodian -- Separate accounts -- Use of money requisitioned -- Advances
124 under Social Security Act.
125 (1) (a) There is established the Unemployment Compensation Fund, separate and apart
126 from all public moneys or funds of this state, that shall be administered by the department
127 exclusively for the purposes of this chapter.
128 (b) This fund shall consist of the following moneys, all of which shall be mingled and
129 undivided:
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131 made from the clearing account under Subsection 35A-4-306 (5);
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134 the fund;
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137 Section 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended; and
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139 (2) (a) The state treasurer shall:
140 (i) be the treasurer and custodian of the fund[
141 (ii) administer the fund in accordance with the directions of the division; and [
142 (iii) pay all warrants drawn upon it by the division or its duly authorized agent in
143 accordance with rules made by the department.
144 (b) The division shall maintain within the fund three separate accounts:
145 (i) a clearing account;
146 (ii) an unemployment trust fund account; and
147 (iii) a benefit account.
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149 immediately deposited in the clearing account.
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151 otherwise provided in this section, be deposited immediately with the secretary of the treasury
152 of the United States of America to the credit of the account of this state in the unemployment
153 trust fund, established and maintained under Section 904 of the Social Security Act, 42 U.S.C.
154 1104, as amended, any provisions of law in this state relating to the deposit, administration,
155 release, or disbursement of moneys in the possession or custody of this state to the contrary
156 notwithstanding.
157 (ii) Refunds of contributions payable under Subsections 35A-4-205 (1)(a) and
158 35A-4-306 (5) may be paid from the clearing account or the benefit account.
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160 account in the unemployment trust fund in the United States treasury.
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162 depository bank in which general funds of this state may be deposited, but no public deposit
163 insurance charge or premium may be paid out of the fund.
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165 other state funds, but shall be maintained in separate accounts on the books of the depository
166 bank.
167 (ii) The money shall be secured by the depository bank to the same extent and in the
168 same manner as required by the general depository law of this state.
169 (iii) Collateral pledged for this purpose shall be kept separate and distinct from any
170 collateral pledged to secure other funds of the state.
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172 faithful performance of the state treasurer's duties in connection with the unemployment
173 compensation fund provided for under this chapter.
174 (ii) The liability on the official bond shall be effective immediately upon the enactment
175 of this provision, and that liability shall exist in addition to the liability upon any separate bond
176 existent on the effective date of this provision, or which may be given in the future.
177 (iii) All sums recovered for losses sustained by the fund shall be deposited in the fund.
178 (3) (a) (i) Moneys requisitioned from the state's account in the unemployment trust
179 fund shall, except as set forth in this section, be used exclusively for the payment of benefits
180 and for refunds of contributions under Subsections 35A-4-205 (1)(a) and 35A-4-306 (5).
181 (ii) The department shall from time to time requisition from the unemployment trust
182 fund amounts, not exceeding the amounts standing to this state's account in the fund, as it
183 considers necessary for the payment of those benefits and refunds for a reasonable future
184 period.
185 (iii) (A) Upon receipt the treasurer shall deposit the moneys in the benefit account and
186 shall pay benefits and refunds from the account by means of warrants issued by the division in
187 accordance with rules prescribed by the department.
188 (B) Expenditures of these moneys in the benefit account and refunds from the clearing
189 account are not subject to any provisions of law requiring specific appropriations or other
190 formal release by state officers of money in their custody.
191 (b) Moneys in the state's account in the unemployment trust fund that were collected
192 under the Federal Unemployment Tax Act, 26 U.S.C. 3301 et seq., and credited to the state
193 under Section 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended may be
194 requisitioned from the state's account and used in the payment of expenses incurred by the
195 department for the administration of the state's unemployment law and public employment
196 offices, if the expenses are incurred and the withdrawals are made only after and under a
197 specific appropriation of the Legislature that specifies:
198 (i) the purposes and amounts;
199 (ii) that the moneys may not be obligated after the two-year period that began on the
200 date of the enactment of the appropriation law; and
201 (iii) that the total amount which may be used during a fiscal year shall not exceed the
202 amount by which the aggregate of the amounts credited to this state's account under Section
203 903 of the Social Security Act, 42 U.S.C. 1101 et seq., as amended, during the fiscal year and
204 the 34 preceding fiscal years, exceeds the aggregate of the amounts used by this state for
205 administration during the same 35 fiscal years.
206 (A) For the purpose of Subsection (3)(b)(iii), amounts used during any fiscal year shall
207 be charged against equivalent amounts that were first credited and that have not previously
208 been so charged. An amount used during any fiscal year may not be charged against any
209 amount credited during a fiscal year earlier than the 34th preceding fiscal year.
210 (B) Except as appropriated and used for administrative expenses, as provided in this
211 section, moneys transferred to this state under Section 903 of the Social Security Act as
212 amended, may be used only for the payment of benefits.
213 (C) Any moneys used for the payment of benefits may be restored for appropriation
214 and use for administrative expenses, upon request of the governor, under Section 903(c) of the
215 Social Security Act.
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221 expenditure, and return of funds deposited.
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223 fund and, if not expended, shall be returned promptly to the account of this state in the
224 unemployment trust fund.
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226 expended or available for expenditure in any manner that would permit their substitution for,
227 or a corresponding reduction in, federal funds that would in the absence of the moneys be
228 available to finance expenditures for the administration of this chapter.
229 (c) Any balance of moneys requisitioned from the unemployment trust fund that
230 remains unclaimed or unpaid in the benefit account after the expiration of the period for which
231 the sums were requisitioned shall either be deducted from estimates for, and may be utilized for
232 the payment of, benefits and refunds during succeeding periods, or in the discretion of the
233 division, shall be redeposited with the secretary of the treasury of the United States of America
234 to the credit of the state's account in the unemployment trust fund, as provided in Subsection
235 (2).
236 (4) (a) The provisions of Subsections (1), (2), and (3), to the extent that they relate to
237 the unemployment trust fund, shall be operative only so long as the unemployment trust fund
238 continues to exist and so long as the secretary of the treasury of the United States of America
239 continues to maintain for the state a separate book account of all moneys deposited in the fund
240 by the state for benefit purposes, together with the state's proportionate share of the earnings of
241 the unemployment trust fund, from which no other state is permitted to make withdrawals.
242 (b) (i) When the unemployment trust fund ceases to exist, or the separate book account
243 is no longer maintained, all moneys belonging to the unemployment compensation fund of the
244 state shall be administered by the division as a trust fund for the purpose of paying benefits
245 under this chapter, and the division shall have authority to hold, invest, transfer, sell, deposit,
246 and release the moneys, and any properties, securities, or earnings acquired as an incident to
247 the administration.
248 (ii) The moneys shall be invested in readily marketable bonds or other interest-bearing
249 obligations of the United States of America, of the state, or of any county, city, town, or school
250 district of the state, at current market prices for the bonds.
251 (iii) The investment shall be made so that all the assets of the fund shall always be
252 readily convertible into cash when needed for the payment of benefits.
253 Section 4. Section 35A-4-506 is amended to read:
254 35A-4-506. Special Administrative Expense Fund.
255 (1) There is created in the General Fund a restricted account known as the Special
256 Administrative Expense Fund.
257 (2) (a) All interest and penalties collected under this chapter, less refunds made under
258 Subsection 35A-4-306 (5), shall be paid into this fund from the clearing account of the fund at
259 the end of each calendar month.
260 (b) Any voluntary contributions tendered as a contribution to this fund and any other
261 moneys received for that purpose shall be paid into this fund.
262 (c) The moneys shall not be expended or available for expenditure in any manner that
263 would permit their substitution for, or a corresponding reduction in, federal funds that would in
264 the absence of those moneys be available to finance expenditures for the administration of this
265 chapter.
266 (3) Nothing in this section shall prevent those moneys from being used as a revolving
267 fund to cover expenditures, necessary and proper under this chapter, for which federal funds
268 have been duly requested but not yet received subject to the charging of those expenditures
269 against the funds when received.
270 (4) The moneys in this fund shall be deposited, administered, and dispersed in
271 accordance with the directions of the Legislature.
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280 within a reasonable time any moneys received by this state under Section 302 of the Federal
281 Social Security Act, 42 U.S.C. 502, as amended, that because of any action of contingency
282 have been lost or have been expended for purposes other than or in amounts in excess of those
283 necessary for the proper administration of this chapter.
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285 expenditure in accordance with this section and shall not lapse at any time or be transferred to
286 any other fund except as directed by the Legislature.
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288 duly authorized agent in accordance with such rules as the department shall prescribe.
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290 the faithful performance of the treasurer's duties in connection with the special administrative
291 expense fund provided for under this chapter.
292 (b) Liability on the official bond shall exist in addition to any liability upon any
293 separate bond existent on the effective date of this provision or that may be given in the future.
294 (c) All sums recovered on any surety bond losses sustained by the special
295 administrative expense fund shall be deposited in that fund or in the General Fund if so
296 directed by the Legislature.
297 Section 5. Section 35A-4-507 is amended to read:
298 35A-4-507. Authority to obtain money from state's account in federal
299 unemployment trust fund -- Use and deposit.
300 (1) Notwithstanding the provisions of Sections 35A-4-501 [
301 35A-4-506 , the department [
302 account in the unemployment trust fund in the treasury of the United States the moneys
303 standing to the state's credit as may, consistent with conditions for approval of this chapter
304 under the Federal Unemployment Tax Act, 26 U.S.C. 3301 et seq., be used for expenses of
305 administering this chapter and to expend [
306 (2) Moneys [
307 Administrative Expense Fund.
308 Section 6. Section 63J-1-602 is amended to read:
309 63J-1-602. Nonlapsing accounts and funds.
310 (1) The following revenue collections, appropriations from a fund or account, and
311 appropriations to a program are nonlapsing:
312 (a) appropriations made to the Legislature and its committees;
313 (b) funds collected by the grain grading program, as provided in Section 4-2-2 ;
314 (c) the Salinity Offset Fund created in Section 4-2-8.5 ;
315 (d) the Invasive Species Mitigation Fund created in Section 4-2-8.7 ;
316 (e) funds collected by pesticide dealer license registration fees, as provided in Section
317 4-14-3 ;
318 (f) funds collected by pesticide applicator business registration fees, as provided in
319 Section 4-14-13 ;
320 (g) the Rangeland Improvement Fund created in Section 4-20-2 ;
321 (h) funds deposited as dedicated credits under the Insect Infestation Emergency Control
322 Act, as provided in Section 4-35-6 ;
323 (i) the Percent-for-Art Program created in Section 9-6-404 ;
324 (j) the Centennial History Fund created in Section 9-8-604 ;
325 (k) the Uintah Basin Revitalization Fund, as provided in Section 9-10-108 ;
326 (l) the Navajo Revitalization Fund created in Section 9-11-104 ;
327 (m) the LeRay McAllister Critical Land Conservation Program created in Section
328 11-38-301 ;
329 (n) the Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 ;
330 (o) fees deposited as dedicated credits for hazardous waste plan reviews, as provided in
331 Section 19-6-120 ;
332 (p) an appropriation made to the Division of Wildlife Resources for the appraisal and
333 purchase of lands under the Pelican Management Act, as provided in Section 23-21a-6 ;
334 (q) award monies under the Crime Reduction Assistance Program, as provided under
335 Section 24-1-19 ;
336 (r) funds collected from the emergency medical services grant program, as provided in
337 Section 26-8a-207 ;
338 (s) fees and other funding available to purchase training equipment and to administer
339 tests and conduct quality assurance reviews, as provided in Section 26-8a-208 ;
340 (t) funds collected as a result of a sanction under Section 1919 of Title XIX of the
341 federal Social Security Act, as provided in Section 26-18-3 ;
342 (u) the Utah Health Care Workforce Financial Assistance Program created in Section
343 26-46-102 ;
344 (v) monies collected from subscription fees for publications prepared or distributed by
345 the insurance commissioner, as provided in Section 31A-2-208 ;
346 (w) monies received by the Insurance Department for administering, investigating
347 under, and enforcing the Insurance Fraud Act, as provided in Section 31A-31-108 ;
348 (x) certain monies received for penalties paid under the Insurance Fraud Act, as
349 provided in Section 31A-31-109 ;
350 (y) the fund for operating the state's Federal Health Care Tax Credit Program, as
351 provided in Section 31A-38-104 ;
352 (z) certain funds in the Department of Workforce Services' program for the education,
353 training, and transitional counseling of displaced homemakers, as provided in Section
354 35A-3-114 ;
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356 [
357 [
358 Section 36-24-101 ;
359 [
360 [
361 of license plates and decals, as provided in Section 41-1a-1201 ;
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363 as provided in Section 41-1a-1221 ;
364 [
365 Business Regulation Act, as provided in Section 41-3-601 ;
366 [
367 Business Regulation Act, as provided in Section 41-3-604 ;
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369 Section 41-22-19.5 ;
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371 as provided in Section 41-22-36 ;
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373 46-1-23 ;
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375 provided in Section 51-9-411 ;
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377 53-1-118 ;
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379 provided in Section 53-2-107 ;
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381 Department of Public Safety Restricted Account, as provided in Section 53-3-106 ;
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383 Section 53-3-905 ;
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385 Prevention and Safety Act, as provided in Section 53-7-314 ;
386 [
387 [
388 [
389 of Education for new teacher bonus and performance-based compensation plans, as provided in
390 Section 53A-17a-148 ;
391 [
392 of Education for implementation of proposals to improve mathematics achievement test scores,
393 as provided in Section 53A-17a-152 ;
394 [
395 [
396 products or services, as provided in Section 53A-24-105 ;
397 [
398 [
399 Regents for teacher preparation programs, as provided in Section 53B-6-104 ;
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401 School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 ;
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403 lines imposed by the Public Service Commission, as provided in Section 54-8b-10 ;
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405 Licensing for violation of unlawful or unprofessional conduct that are used for education and
406 enforcement purposes, as provided in Section 58-17b-505 ;
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408 58-31b-103 ;
409 [
410 58-37-7.7 ;
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412 Section 58-44a-103 ;
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414 Section 58-56-9 ;
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416 Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
417 provided in Section 58-63-103 ;
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419 Section 58-76-103 ;
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421 Fund, as provided in Section 59-12-103 ;
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423 background check for broker and sales agent licenses, as provided in Section 61-2-9 ;
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425 61-2-28 ;
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427 background check for a mortgage loan license, as provided in Section 61-2c-202 ;
428 [
429 records in an investigation, as provided in Section 61-2c-401 ;
430 [
431 provided in Section 62A-1-111 ;
432 [
433 provided in Section 62A-4a-110 ;
434 [
435 in Section 62A-13-109 ;
436 [
437 by a county treasurer, as provided in Section 62A-15-503 ;
438 [
439 provided in Section 62A-5-102 ;
440 [
441 provided in Section 62A-15-103 ;
442 [
443 or disposal of buffalo, as provided under Section 63-11-19.2 ;
444 [
445 State Park, or Jordan River State Park, as provided under Section 63-11-19.5 ;
446 [
447 under Section 63-11-19.6 ;
448 [
449 created under Section 63-11a-503 ;
450 [
451 63-11a-504 ;
452 [
453 63-73-10 ;
454 [
455 [
456 [
457 63C-4-103 ;
458 [
459 Commission, as provided in Section 63C-6-104 ;
460 [
461 Medical Education Council, as provided in Section 63C-8-102 ;
462 [
463 Utah Athletic Commission, as provided under Section 63C-11-301 ;
464 [
465 publications, as provided in Section 63G-3-402 ;
466 [
467 Development's Enterprise Zone Act, as provided in Section 63M-1-416 ;
468 [
469 63M-1-1406 ;
470 [
471 Development in the Governor's Office of Economic Development, as provided in Section
472 63M-1-1604 ;
473 [
474 Restricted Account, as provided in Section 63M-1-2003 ;
475 [
476 Authority, created under Section 63M-2-301 , as provided under Section 63M-3-302 ;
477 [
478 Section 63M-1-2303 ;
479 [
480 in Section 64-13-21.2 ;
481 [
482 parole inmates, as provided in Subsection 64-13e-104 (2);
483 [
484 [
485 Forestry, Fire, and State Lands, as provided in Section 65A-8-103 ;
486 [
487 program, as provided in Section 67-19-6 ;
488 [
489 provided in Section 69-2-5.5 ;
490 [
491 Loan Fund, as provided in Section 72-2-117 ;
492 [
493 provided in Section 72-2-117.5 ;
494 [
495 provided in Section 77-2-120 ;
496 [
497 as provided in Section 77-2-122 ;
498 [
499 Program, as provided in Section 72-3-207 ;
500 [
501 [
502 drilling fines or bonds, as provided in Section 73-3-25 ;
503 [
504 Jordan River that are transferred to the Division of Parks and Recreation, as provided in
505 Section 73-10e-1 ;
506 [
507 Act, as provided in Section 73-18-25 ;
508 [
509 and Development Fund, as provided in Section 73-23-2 ;
510 [
511 created in Section 73-28-404 ;
512 [
513 Reserve Account, as provided in Section 73-103-1 ;
514 [
515 as provided in Section 77-10a-19 ;
516 [
517 77-32-601 ;
518 [
519 [
520 provided in Subsection 78A-6-203 (1)(c);
521 [
522 78A-6-210 ; and
523 [
524 interpreters, as provided in Section 78B-1-146 .
525 (2) No revenue collection, appropriation from a fund or account, or appropriation to a
526 program may be treated as nonlapsing unless:
527 (a) it is expressly referenced by this section;
528 (b) it is designated in a condition of appropriation in the appropriations bill; or
529 (c) nonlapsing authority is granted under Section 63J-1-603 .
530 (3) Each legislative appropriations subcommittee shall review the accounts and funds
531 that have been granted nonlapsing authority under this section or Section 63J-1-603 .
532 Section 7. Repealer.
533 This bill repeals:
534 Section 35A-4-505, Employment Security Administration Fund.
Legislative Review Note
as of 2-11-10 9:13 AM