44-712. Employment security fund.
44-712
44-712. Employment security fund.(a) Establishment and control. There is hereby established as aspecial fund in the state treasury, separate and apart from all public moneysor funds of this state, an employment security fund, which shall beadministered by the secretary as provided in this act. This fund shallconsist of: (1) All contributions collected under this act; (2) interestearned upon any moneys in the fund; (3) all moneys credited to this state'saccount in the federal unemployment trust fund, pursuant to section 903 of thesocial security act, 42 U.S.C.A. § 1103, as amended; (4) any propertyor securities acquired through the use of moneys belonging to the fund,and all other moneys received for the fund from any other source;(5) all earnings of such property or securities. All moneys in this fundshall be mingled and undivided.
(b) Accounts and deposits. The state treasurer shall be exofficio custodian of the fund. Payments from the fund, and for thepurposes of this act deposits with the secretary of the treasury of theUnited States shall not be deemed to be payments from the fund, shall bemade by any commercially-acceptedmeans approved by the secretary. Thereshall be maintained within the fund three separate accounts: (1) Aclearing account; (2) an unemployment trust fund account, and (3) abenefit account. All money payable to the fund upon receipt thereof bythe secretary, shall be remitted to the statetreasurerin accordance with the provisions of K.S.A. 75-4215, andamendmentsthereto. Upon receipt of each such remittance, the state treasurer shalldeposit the entire amount in the state treasury to thecredit of theclearing account of the fund. Refunds payablepursuant to K.S.A. 44-717, and amendments thereto, may bepaid from the clearing account of the fund by anycommercially-accepted means approved bythe secretary. After clearance thereof, all other moneys in the clearingaccount of the fund shall be immediately deposited with the secretary of thetreasury of the United States of America to the credit of the account ofthis state in the federal unemployment trust fund established and maintainedpursuant to section 904 of the social security act, 42 U.S.C.A.§ 1104,as amended, any provisions of law in this state relating to the deposit,administration, release, or disbursement of moneys in the possession orcustody of this state to the contrary notwithstanding. The benefitaccount of the fund shall consist of all moneys requisitioned from this state'saccount in the federal unemployment trust fund. Except as herein otherwiseprovided, moneys in the clearing and benefit accounts of the fund may bedepositedby the state treasurer in any bank or public depository as is nowprovided by law for the deposit of general funds of the state, but nopublic deposit insurance charge or premium shall be paid out of thefund. Moneys in the clearing and benefit accounts of the fund shall not becommingled with other state funds and shall be maintained inseparate bank accounts.
(c) Withdrawals. Moneys shall be requisitioned from thisstate's account in the federal unemployment trust fund solely for the paymentofbenefits and in accordance with the provisions of this act and the rulesand regulations adopted by the secretary, except that moneys creditedto this state's account pursuant to section 903 of the social securityact, 42 U.S.C.A. § 1103, as amended, shall be used exclusively asprovided in subsection (d) of this section. The secretary shall fromtime to time requisition from the federal unemployment trust fund such amounts,not exceeding the amounts standing to its account therein, as deemednecessary for the payment of benefits for a reasonable future period.Upon receipt thereof the state treasurer shall deposit such moneys in thebenefit account of the fund and paymentsof benefits shall becharged solely against such benefit account of the fund. Expenditures of suchmoneysin the benefit account and refunds from the clearing account of the fund shallnotbe subject to any provisions of law requiring specific appropriations.Any balance of moneys requisitioned from the federal unemployment trust fundwhich remains unclaimed or unpaid in the benefit account of the fund after theexpiration of the period for which such sums were requisitioned shalleither be deducted from estimates for, and may be utilized for thepayment of benefits during succeeding periods, or, in the discretion ofthe secretary shall be directed to be redeposited with the secretary ofthe treasury of the United States of America, to the credit of thisstate's account in the federal unemployment trust fund, as provided insubsection (b) of this section. All balances accrued from unpaid orcanceled warrants issued pursuant to this section, notwithstanding theprovisions of K.S.A. 10-812, and amendments thereto, shall remainin thebenefit account of the fund, and be disbursed in accordance with theprovisions of this act relating to such account.
(d) Administrative use. (1) Money credited to the account of thisstate in the federal unemployment trust fund by the secretary of the treasuryofthe United States of America, pursuant to section 903 of the social securityact, 42 U.S.C.A. § 1103, as amended, may be requisitioned andused for the payment of expenses incurred in the administration of thisact pursuant to a specific appropriation by the legislature, if expensesare incurred and the money is requisitioned after theenactment of an appropriation law which: (A) Specifies the purposes forwhich such money is appropriated and the amounts appropriated therefor,(B) limits the period within which such money may be obligated to aperiod ending not more than two years after the date of theenactment of the appropriation law, and (C) limits the amount which maybe obligated during a twelve-month period beginning on July 1 and endingon the next June 30 to an amount which does not exceed the amount bywhich (i) the aggregate of the amounts credited to the account of thisstate pursuant to section 903 of the social security act, 42 U.S.C.A.§ 1103, as amended, (ii) theaggregate of the amounts obligated pursuant to this subsection andamounts paid out for benefits and charged against the amounts creditedto the account of this state. For the purposes of this subsection, amountsobligated duringany such twelve-month period shall be charged against equivalent amountswhich were first credited and which are not already so charged.
(2) Money credited to the account of this state pursuant to section 903 ofthe social security act, 42 U.S.C.A. § 1103, as amended,may not be withdrawn or obligated except for the payment of benefits andfor the payment of expenses for the administration of this act and ofpublic employment offices pursuant to this subsection (d).
(3) Money appropriated as provided by this subsection (d) for thepayment of expenses of administration shall be requisitioned as needed forthe payment of obligations incurred under such appropriation and, uponrequisition shall be deposited in the state treasury to the credit of theemployment security administration fund from which such payments shall bemade. Money so deposited and credited shall, until expended, remain a partof the federal unemployment trust fund, and, if it will not be expended,shall be returned promptly to the account of this state in the federalunemployment trust fund.
(4) Notwithstanding paragraph (1), money credited with respect to federalfiscal years 1999, 2000 and 2001, shall be used solely for the administrationof the UC program, and such money shall not otherwise be subject to therequirements of paragraph (1) when appropriated by the legislature.
(e) Management of funds upon discontinuance of federal unemploymenttrust fund. The provisions of subsections (a), (b), (c) and (d) of thissection, to the extent that they relate to the federal unemployment trust fund,shall be operative only so long as such unemployment trust fundcontinues to exist and so long as the secretary of the treasury of theUnited States of America continues to maintain for this state a separatebook account of all funds deposited therein by this state for benefitpurposes, together with this state's proportionate share of the earningsof such unemployment trust fund, from which no other state is permittedto make withdrawals. If and when such unemployment trust fund ceases toexist, or such separate book account is no longer maintained, allmoneys, properties or securities therein, belonging to the employmentsecurity fund of this state, shall be transferred to the statetreasurer, to be administered by the secretary as a trust fund for thepurpose of paying benefits under this act, and the director of investments uponthe direction of thesecretaryshall haveauthority to hold, invest, transfer, sell, deposit, and release suchmoneys, and any properties, securities, or earnings acquired as anincident to such administration.
History: L. 1937, ch. 255, § 12; L. 1939, ch. 214, § 4;L. 1941,ch. 264, § 9; L. 1945, ch. 220, § 9; L. 1947, ch. 291, §5; L.1949, ch. 288, § 8; L. 1957, ch. 296, § 2;L. 1965, ch. 321, § 1; L. 1969, ch. 247, § 1; L. 1974, ch. 206,§ 1; L. 1976, ch. 370,§ 66; L. 1983, ch. 170, § 1; L. 1987, ch. 191, § 7;L. 1992, ch. 74, § 3;L. 1996, ch. 254, § 10;L. 1998, ch. 124, § 3;L. 2001, ch. 5, § 141;L. 2007, ch. 132, § 2; July 1.