341.243 Service capacity upgrade fund.

627 words·~3 min read·/ky/chapter-341/341-243

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)There is created within the State Treasury a special fund known as the service

capacity upgrade fund that shall be administered separate and apart from all public

money or funds of the state.

(2)The service capacity upgrade fund shall be used solely for acquisition and

upgrading of the technology base, program integrity functions, and service delivery

capacity in support of the programs administered by the Office of Unemployment

Insurance. The secretary shall have full power, authority, and jurisdiction over the

fund, including all money, property, and securities belonging thereto, and shall

perform any act necessary or convenient in the administration of the fund consistent

with this section. Any expenditure of the fund shall be coordinated with and

approved by the Commonwealth Office of Technology, and nothing in this section

shall be construed as reducing or limiting the authority of the Commonwealth's

chief information officer over all technology expenditures. The secretary shall

provide an annual report to the Interim Joint Committee on Economic Development

and Workforce Investment detailing all receipts and expenditures of the fund.

(3)Any money collected under the provisions of this section shall be invested at

interest in banks or other interest-bearing obligations of the United States.

Investments shall at all times be made so that all the assets of the service capacity

upgrade fund shall be convertible into cash when needed for the payment of

expenses incurred in upgrading the service capacity of the Office of Unemployment

Insurance. All interest income received under this section shall be credited to the

fund. The State Treasurer shall dispose of securities or other property belonging to

the fund only under the direction of the secretary and the secretary of the Finance

and Administration Cabinet.

(4)Beginning October 1, 2018, all rates otherwise established under KRS 341.270 and

341.272 shall be adjusted by subtracting seventy-five thousandths percent (0.075%)

from each rate, but only if the unemployment insurance trust fund balance exceeds

the balance of the trust fund as of December 31, 2017.

(5)For any calendar year in which all rates have been reduced in accordance with

subsection

(4)of this section, all contributory employers shall pay into the service

capacity upgrade fund an amount equal to the percentage by which rates were

reduced multiplied by their taxable wages paid during that calendar year. Payments

shall be made at the same time and in the same manner as prescribed for payment of

contributions under KRS 341.260 and all regulations prescribed by the secretary in

support of that section. The restrictions in KRS 341.470(1) apply equally to the

provisions of this section. Failure to make these payments shall be subject to

interest and all other collection actions provided for failure to make contributions

under KRS 341.300.

(6)All payments required under subsection

(5)of this section, along with any interest

due to late payment of these assessments, shall be deposited in the service capacity

upgrade fund.

(7)Notwithstanding subsection

(4)of this section, the secretary may exercise his or her

discretion to reduce the percentage rate prescribed in subsection

(4)of this section

or suspend required payments to the service capacity upgrade fund at any time.

(8)The secretary shall suspend the reduction of the rate prescribed in subsection

(4)of

this section at any time when collections for the service capacity upgrade fund

exceed a cumulative amount of sixty million dollars ($60,000,000). At the time

payments are suspended, any funds thus far collected under subsection

(4)of this

section in excess of those necessary to fund technology upgrades, shall be deposited

into the unemployment insurance trust fund. Any future collection of past due

payments to the service capacity upgrade fund, including any applicable penalty

and interest funds, shall be deposited into the penalty and interest fund.