§ 96-5. Employment Security Administration Fund.
§ 96‑5. EmploymentSecurity Administration Fund.
(a) Special Fund. Thereis hereby created in the State treasury a special fund to be known as theEmployment Security Administration Fund. All moneys which are deposited or paidinto this fund shall be continuously available to the Commission forexpenditure in accordance with the provisions of this Chapter, and shall notlapse at any time or be transferred to any other fund. The Employment SecurityAdministration Fund, except as otherwise provided in this Chapter, shall besubject to the provisions of the State Budget Act (Chapter 143C of the GeneralStatutes) and the Personnel Act (G.S. 126‑1 et seq.). All moneys in thisfund which are received from the federal government or any agency thereof orwhich are appropriated by this State for the purpose described in G.S. 96‑20shall be expended solely for the purposes and in the amounts found necessary bythe Secretary of Labor for the proper and efficient administration of thisChapter. The fund shall consist of all moneys appropriated by this State, allmoneys received from the United States of America, or any agency thereof,including the Secretary of Labor, and all moneys received from any other sourcefor such purpose, and shall also include any moneys received from any agency ofthe United States or any other state as compensation for services or facilitiessupplied to such agency, any amounts received pursuant to any surety bond orinsurance policy or from other sources for losses sustained by the EmploymentSecurity Administration Fund or by reason of damage to equipment or suppliespurchased from moneys in such fund, and any proceeds realized from the sale ordisposition of any such equipment or supplies which may no longer be necessaryfor the proper administration of this Chapter: Provided, any interest collectedon contributions and/or penalties collected pursuant to this Chapter shall bepaid into the Special Employment Security Administration Fund created bysubsection (c) of this section. All moneys in this fund shall be deposited,administered, and disbursed in the same manner and under the same conditionsand requirements as is provided by law for other special funds in the Statetreasury, and shall be maintained in a separate account on the books of theState treasury. The State Treasurer shall be liable on his official bond forthe faithful performance of his duties in connection with the EmploymentSecurity Administration Fund provided for under this Chapter. Such liability onthe official bond shall be effective immediately upon the enactment of thisprovision, and such liability shall exist in addition to any liability upon anyseparate bond existent on the effective date of this provision, or which may begiven in the future. All sums recovered on any surety bond for losses sustainedby the Employment Security Administration Fund shall be deposited in said fund.
(b) Replacement ofFunds Lost or Improperly Expended. If any moneys received from the Secretaryof Labor under Title III of the Social Security Act, or any unencumberedbalances in the Employment Security Administration Fund or any moneys grantedto this State pursuant to the provisions of the Wagner‑Peyser Act, or anymoneys made available by this State or its political subdivisions and matchedby such moneys granted to this State pursuant to the provisions of the Wagner‑PeyserAct, are found by the Secretary of Labor, because of any action or contingency,to have been lost or expended for purposes other than, or in amounts in excessof those found necessary by the Secretary of Labor for the properadministration of this Chapter, it is the policy of this State that suchmoneys, not available from the Special Employment Security Administration Fundestablished by subsection (c) of this section, shall be replaced by moneysappropriated for such purpose from the general funds of this State to theEmployment Security Administration Fund for expenditure as provided insubsection (a) of this section. Upon receipt of notice of such a finding by theSecretary of Labor, the Commission shall promptly pay from the SpecialEmployment Security Administration Fund such sum if available in such fund; ifnot available, it shall promptly report the amount required for suchreplacement to the Governor and the Governor shall, at the earliestopportunity, submit to the legislature a request for the appropriation of suchamount.
(c) There is herebycreated in the State treasury a special fund to be known as the SpecialEmployment Security Administration Fund. All interest and penalties, regardlessof when the same became payable, collected from employers under the provisionsof this Chapter subsequent to June 30, 1947 as well as any appropriations offunds by the General Assembly, shall be paid into this fund. No part of saidfund shall be expended or available for expenditure in lieu of federal fundsmade available to the Commission for the administration of this Chapter. Saidfund shall be used by the Commission for the payment of costs and charges ofadministration which are found by the Secretary of Labor not to be proper andvalid charges payable out of any funds in the Employment SecurityAdministration Fund received from any source and shall also be used by theCommission for: (i) extensions, repairs, enlargements and improvements tobuildings, and the enhancement of the work environment in buildings used forCommission business; (ii) the acquisition of real estate, buildings andequipment required for the expeditious handling of Commission business; and (iii)the temporary stabilization of federal funds cash flow. The Employment SecurityCommission may use funds either from the Special Employment Security CommissionAdministration Fund created by this subsection or from federal funds, or from acombination of the two, to offset the costs of compliance with Article 7A ofChapter 163 of the General Statutes of North Carolina or compliance with P.L.103‑31. Refunds of interest allowable under G.S. 96‑10, subsection(e) shall be made from this special fund: Provided, such interest was depositedin said fund: Provided further, that in those cases where an employer takescredit for a previous overpayment of interest on contributions due by suchemployer pursuant to G.S. 96‑10, subsection (e), that the amount of such credittaken for such overpayment of interest shall be reimbursed to the UnemploymentInsurance Fund from the Special Employment Security Administration Fund. TheSpecial Employment Security Administration Fund, except as otherwise providedin this Chapter, shall be subject to the provisions of the State Budget Act(Chapter 143C of the General Statutes) and the Personnel Act (G.S. 126‑1et seq.). All moneys in this fund shall be deposited, administered, anddisbursed in the same manner and under the same conditions and requirements asis provided by law for other special funds in the State treasury, and shall bemaintained in a separate account on the books of the State treasury. The StateTreasurer shall be liable on his official bond for the faithful performance ofhis duties in connection with the Special Employment Security AdministrationFund provided for under this Chapter. Such liability on the official bond shallbe effective immediately upon the enactment of this provision, and suchliability shall exist in addition to any liability upon any separate bondexistent on the effective date of this provision, or which may be given in thefuture. All sums recovered on any surety bond for losses sustained by theSpecial Employment Security Administration Fund shall be deposited in saidfund. The moneys in the Special Employment Security Administration Fund shallbe continuously available to the Commission for expenditure in accordance withthe provisions of this section.
(c1) Repealed by SessionLaws 2004‑124, s. 13.7B(b), effective July 20, 2004.
(d) The otherprovisions of this section and G.S. 96‑6, to the contrarynotwithstanding, the Commission is authorized to requisition and receive fromits account in the unemployment trust fund in the treasury of the United Statesof America, in the manner permitted by federal law, such moneys standing to itscredit in such fund, as are permitted by federal law to be used for expense ofadministering this Chapter and to expend such moneys for such purpose, withoutregard to a determination of necessity by a federal agency. The State Treasurershall be treasurer and custodian of the amounts of money so requisitioned. Suchmoneys shall be deposited, administered, and disbursed in the same manner andunder the same conditions and requirements as are provided by law for otherspecial funds in the State treasury.
(e) Reed Bill FundAuthorization. Subject to a specific appropriation by the General Assembly ofNorth Carolina to the Employment Security Commission out of funds credited toand held in this State's account in the Unemployment Trust Fund by theSecretary of the Treasury of the United States pursuant to and in accordancewith section 903 of the Social Security Act, the Commission is authorized toutilize such funds for the administration of the Employment Security Law,including personal services, operating and other expenses incurred in theadministration of said law, as well as for the purchase or rental, either orboth, of offices, lands, buildings or parts of buildings, fixtures,furnishings, equipment, supplies and the construction of buildings or parts ofbuildings, suitable for use in this State by the Employment SecurityCommission, and for the payment of expenses incurred for the construction,maintenance, improvements or repair of, or alterations to, such real orpersonal property. Provided, that any such funds appropriated by the GeneralAssembly shall not exceed the amount in the Unemployment Trust Fund which maybe obligated for expenditure for such purposes; and provided that said fundsshall not be obligated for expenditure, as herein provided, after the close ofthe two‑year period which begins on the effective date of theappropriation.
(f) EmploymentSecurity Commission Reserve Fund. There is created in the State treasury aspecial trust fund, separate and apart from all other public moneys or funds ofthis State, to be known as the Employment Security Commission Reserve Fund,hereinafter "Reserve Fund". Part of the proceeds from the tax oncontributions imposed in G.S. 96‑9(b)(3)j shall be credited to theReserve Fund, as specified in that statute. The moneys in the Reserve Fund maybe used by the Commission for loans to the Unemployment Insurance Fund, assecurity for loans from the federal Unemployment Insurance Trust Fund, and topay any interest required on advances under Title XII of the Social SecurityAct, and shall be continuously available to the Commission for expenditure inaccordance with the provisions of this section. The State Treasurer shall be exofficio the treasurer and custodian and shall invest said moneys in accordancewith existing law as well as rules and regulations promulgated pursuantthereto. Furthermore, the State Treasurer shall disburse the moneys inaccordance with the directions of the Commission and in accordance with suchregulations as the Commission may prescribe.
Administrative costs for thecollection of the tax and interest payable to the Reserve Fund shall be borneby the Special Employment Security Administration Fund.
The interest earned frominvestment of the Reserve Fund moneys shall be deposited in a fund herebyestablished in the State Treasurer's Office, to be known as the "WorkerTraining Trust Fund". These moneys shall be used to:
(1) Fund programs,specifically for the benefit of unemployed workers or workers who have receivednotice of long‑term layoff or permanent unemployment, which will enhancethe employability of workers, including, but not limited to, adult basiceducation, adult high school or equivalency programs, occupational skillstraining programs, assessment, job counseling and placement programs;
(2) Continue operationof local Employment Security Commission offices throughout the State; or
(3) Provide refunds toemployers.
The use of funds from theWorker Training Trust Fund, for the purposes set out in the above paragraph,shall be pursuant to appropriations in the Current Operations AppropriationsAct. Funds appropriated from the Worker Training Trust Fund that are unexpendedand unencumbered at the end of the fiscal year for which they are appropriatedshall revert to the State treasury to the credit of the Worker Training TrustFund in accordance with G.S. 143C‑1‑2.
(g) Notwithstandingsubsection (f) of this section, the State Treasurer may invest not more than atotal of twenty‑five million dollars ($25,000,000) of funds in theEmployment Security Commission Reserve Fund established under subsection (f) ofthis section in securities issued by the North Carolina TechnologicalDevelopment Authority, Inc., the proceeds for which are directed to supportinvestment in venture capital funds. The State Treasurer shall report to theJoint Legislative Commission on Governmental Operations and the Fiscal ResearchDivision on October 1 and March 1 of each fiscal year on investments madepursuant to this subsection. (Ex. Sess. 1936, c. 1, s. 13; 1941, c. 108, ss. 12,13; 1947, c. 326, s. 5; c. 598, s. 1; 1949, c. 424, s. 2; 1951, c. 332, s. 18;1953, c. 401, ss. 1, 5; 1977, c. 727, ss. 11‑13; 1981, c. 160, s. 2;1987, c. 17, ss. 1, 2; 1991, c. 689, s. 142; 1991, Ex. Sess., c. 6, s. 1; 1995(Reg. Sess., 1996), c. 608, s. 2; 1996, 2nd Ex. Sess., c. 18, s. 26.6; 2004‑124,s. 13.7B(b); 2005‑276, s. 6.37(h); 2006‑203, s. 22.)