CHAPTER 26. UNEMPLOYMENT INSURANCE BENEFIT FUND
IC 22-4-26
Chapter 26. Unemployment Insurance Benefit Fund
IC 22-4-26-1
Establishment; source of funds
Sec. 1. There is established a special fund to be known as the
unemployment insurance benefit fund which shall be administered
separate and apart from all public money or funds of the state. This
fund shall consist of:
(1) all contributions, all payments in lieu of contributions, all
money received from the federal government as reimbursements
pursuant to section 204 of the Federal-State Extended
Compensation Act of 1970, and all money paid into and
received by it as provided in this article;
(2) any property or securities and the earnings thereof acquired
through the use of money belonging to the fund;
(3) all other money received for the fund from any other source;
(4) all money credited to this state's account in the
unemployment trust fund pursuant to 42 U.S.C. 1103, as
amended; and
(5) interest earned from all money in the fund.
Subject to the provisions of this article, the board is vested with full
power, authority, and jurisdiction over the fund, including all money
and property or securities belonging thereto, and may perform any
and all acts whether or not specifically designated in this article
which are necessary or convenient in the administration thereof
consistent with the provisions of this article and the Depository Act.
The money in this fund shall be used only for the payment of
unemployment compensation benefits.
(Formerly: Acts 1947, c.208, s.2701; Acts 1957, c.299, s.8; Acts
1973, P.L.239, SEC.5.) As amended by P.L.18-1987, SEC.68.
IC 22-4-26-2
Administration of fund
Sec. 2. The fund shall be administered exclusively for the purpose
of this article, and money withdrawn therefrom, except for deposit
in the unemployment insurance benefit fund and for refund, as
provided in this article, and except for amounts credited to the
account of this state pursuant to 42 U.S.C. 1103, as amended, which
shall be used exclusively as provided in section 5 of this chapter,
shall be used solely for the payment of benefits. Payment of benefits
and refunds shall be made in accordance with the rules prescribed by
the department consistent with the provisions of this article.
Withdrawals from the fund except as provided in section 5 of this
chapter shall not be subject to any provisions of law requiring
specific appropriations or other formal release by state officers of
money in their custody.
(Formerly: Acts 1947, c.208, s.2702; Acts 1957, c.299, s.9.) As
amended by P.L.144-1986, SEC.123; P.L.18-1987, SEC.69;
P.L.108-2006, SEC.47.
IC 22-4-26-3
Treasurer of fund; depositories; investments
Sec. 3. The treasurer of state shall be ex officio treasurer and
custodian of the fund and shall administer the fund in accordance
with the provisions of this article and the directions of the
commissioner and shall pay all warrants drawn upon it in accordance
with such rules as the board may prescribe. All contributions
provided for in this article shall be paid to and collected by the
department. All contributions and other money payable to the fund
as provided in this article upon receipt thereof by the department
shall be paid to and deposited with the treasurer of state to the credit
of the unemployment insurance benefit fund. The commissioner shall
immediately order the auditor of state to issue the auditor's warrant
on the treasurer of state immediately to forward such money and
deposit it, together with any money earned thereby while in the
treasurer's custody and any other money received by the treasurer for
the payment of benefits from any source other than the
unemployment trust fund, with the Secretary of the Treasury of the
United States of America to the credit of the unemployment trust
fund. All money belonging to the unemployment insurance benefit
fund and not otherwise deposited, invested, or paid over pursuant to
the provisions of this article may be deposited by the treasurer of
state under the direction of the commissioner in any banks or public
depositories in which general funds of the state may be deposited,
but no public deposit insurance charge or premium shall be paid out
of money in the unemployment insurance benefit fund, any other
provisions of law to the contrary notwithstanding. The treasurer of
state shall, if required by the Social Security Administration, give a
separate bond conditioned upon the faithful performance of the
treasurer's duties as custodian of the fund in an amount and with such
sureties as shall be fixed and approved by the governor. Premiums
for the said bond shall be paid as provided in IC 22-4-24.
(Formerly: Acts 1947, c.208, s.2703.) As amended by P.L.144-1986,
SEC.124; P.L.18-1987, SEC.70; P.L.21-1995, SEC.106.
IC 22-4-26-4
Federal aid; requisition; disposition of balance
Sec. 4. The commissioner, through the treasurer of state acting as
its fiscal agent, shall requisition from time to time from the
unemployment trust fund such amounts not exceeding the amount
standing to its account therein as it deems necessary for the payment
of benefits for a reasonable future period and for refunds, but for no
other purpose. Upon receipt thereof, the treasurer of state shall
deposit such money in the unemployment insurance benefit fund in
a special benefit account, and upon order of the commissioner, the
auditor of state or the auditor's duly authorized agent shall issue the
auditor's warrants for the payment of benefits and refunds by the
treasurer of state. Any balance of money so requisitioned which
remains unclaimed or unpaid in the special benefit account of the
unemployment insurance benefit fund after the expiration of the
period for which such sums are requisitioned shall either be deducted
from estimates for, and may be utilized for the payment of, benefits
and refunds during succeeding periods, or in the discretion of the
commissioner shall be redeposited with the Secretary of the Treasury
of the United States to the credit of the unemployment trust fund as
provided in section 3 of this chapter.
(Formerly: Acts 1947, c.208, s.2704.) As amended by P.L.144-1986,
SEC.125; P.L.18-1987, SEC.71; P.L.21-1995, SEC.107.
IC 22-4-26-5
Use of money from federal unemployment trust fund;
appropriations
Sec. 5. (a) Money credited to the account of this state in the
unemployment trust fund by the Secretary of the Treasury of the
United States pursuant to 42 U.S.C. 1103, as amended, may be
requisitioned and used for the payment of expenses incurred for the
administration of this article and public employment offices pursuant
to a specific appropriation by the general assembly, provided that the
expenses are incurred and the money is requisitioned after the
enactment of an appropriation statute which:
(1) specifies the purposes for which such money is appropriated
and the amounts appropriated therefor;
(2) except as provided in subsection (i), limits the period within
which such money may be obligated to a period ending not
more than two (2) years after the date of the enactment of the
appropriation statute; and
(3) limits the total amount which may be obligated during a
twelve (12) month period beginning on July 1 and ending on the
next June 30 to an amount which does not exceed the amount
by which:
(A) the aggregate of the amounts credited to the account of
this state pursuant to 42 U.S.C. 1103, as amended, during
such twelve (12) month period and the twenty-four (24)
preceding twelve (12) month periods; exceeds
(B) the aggregate of the amounts obligated by this state
pursuant to this section and amounts paid out for benefits
and charged against the amounts credited to the account of
this state during such twenty-five (25) twelve (12) month
periods.
(b) For the purposes of this section, amounts obligated by this
state during any such twelve (12) month period shall be charged
against equivalent amounts which were first credited and which have
not previously been so charged, except that no amount obligated for
administration of this article and public employment offices during
any such twelve (12) month period may be charged against any
amount credited during such twelve (12) month period earlier than
the fourteenth preceding such twelve (12) month period.
(c) Amounts credited to the account of this state pursuant to 42
U.S.C. 1103, as amended, may not be obligated except for the
payment of cash benefits to individuals with respect to their
unemployment and for the payment of expenses incurred for the
administration of this article and public employment offices pursuant
to this section.
(d) Money appropriated as provided in this section for the
payment of expenses incurred for the administration of this article
and public employment offices pursuant to this section shall be
requisitioned as needed for payment of obligations incurred under
such appropriation and upon requisition shall be deposited in the
employment and training services administration fund but, until
expended, shall remain a part of the unemployment insurance benefit
fund. The commissioner shall maintain a separate record of the
deposit, obligation, expenditure, and return of funds so deposited. If
any money so deposited is for any reason not to be expended for the
purpose for which it was appropriated, or if it remains unexpended
at the end of the period specified by the statute appropriating such
money, it shall be withdrawn and returned to the Secretary of the
Treasury of the United States for credit to this state's account in the
unemployment trust fund.
(e) There is appropriated out of the funds made available to
Indiana under Section 903 of the Social Security Act, as amended by
Section 209 of the Temporary Extended Unemployment
Compensation Act of 2002 (which is Title II of the federal Jobs
Creation and Worker Assistance Act of 2002, Pub.L107-147),
seventy-two million two hundred thousand dollars ($72,200,000) to
the department of workforce development. The appropriation made
by this subsection is available for ten (10) state fiscal years
beginning with the state fiscal year beginning July 1, 2003.
Unencumbered money at the end of a state fiscal year does not revert
to the state general fund.
(f) Money appropriated under subsection (e) is subject to the
requirements of IC 22-4-37-1.
(g) Money appropriated under subsection (e) may be used only for
the following purposes:
(1) The administration of the Unemployment Insurance (UI)
program and the Wagner Peyser public employment office
program.
(2) Acquiring land and erecting buildings for the use of the
department of workforce development.
(3) Improvements, facilities, paving, landscaping, and
equipment repair and maintenance that may be required by the
department of workforce development.
(h) In accordance with the requirements of subsection (g), the
department of workforce development may allocate up to the
following amounts from the amount described in subsection (e) for
the following purposes:
(1) Thirty-nine million two hundred thousand dollars
($39,200,000) to be used for the modernization of the
Unemployment Insurance (UI) system beginning July 1, 2003,
and ending June 30, 2013.
(2) For:
(A) the state fiscal year beginning after June 30, 2003, and
ending before July 1, 2004, five million dollars
($5,000,000);
(B) the state fiscal year beginning after June 30, 2004, and
ending before July 1, 2005, five million dollars
($5,000,000);
(C) the state fiscal year beginning after June 30, 2005, and
ending before July 1, 2006, five million dollars
($5,000,000);
(D) the state fiscal year beginning after June 30, 2006, and
ending before July 1, 2007, five million dollars
($5,000,000);
(E) the state fiscal year beginning after June 30, 2007, and
ending before July 1, 2008, five million dollars
($5,000,000); and
(F) state fiscal years beginning after June 30, 2008, and
ending before July 1, 2012, the unused part of any amount
allocated in any year for any purpose under this subsection;
for the JOBS proposal to meet the workforce needs of Indiana
employers in high wage, high skill, high demand occupations.
(3) For:
(A) the state fiscal year beginning after June 30, 2003, and
ending before July 1, 2004, four million dollars
($4,000,000); and
(B) the state fiscal year beginning after June 30, 2004, and
ending before July 1, 2005, four million dollars
($4,000,000);
to be used by the workforce investment boards in the
administration of Indiana's public employment offices.
(i) The amount appropriated under subsection (e) for the payment
of expenses incurred in the administration of this article and public
employment is not required to be obligated within the two (2) year
period described in subsection (a)(2).
(Formerly: Acts 1947, c.208, s.2705; Acts 1957, c.299, s.10; Acts
1965, c.190, s.15; Acts 1969, c.300, s.6; Acts 1973, P.L.239, SEC.6.)
As amended by P.L.144-1986, SEC.126; P.L.18-1987, SEC.72;
P.L.21-1995, SEC.108; P.L.224-2003, SEC.120; P.L.234-2007,
SEC.68; P.L.3-2008, SEC.160.