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341.243 Service capacity upgrade fund.
(1)
(2)
(3)
(4)
(5)
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.
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 Employment and
Training. 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. The secretary shall provide an annual report to the Interim Joint
Committee on Labor and Industry detailing all receipts and expenditures of the
fund.
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 Employment
and Training. 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.
Effective January 1, 1999, all rates otherwise established under KRS 341.270 and
341.272 shall be reduced by subtracting seventy-five thousandths percent (0.075%)
from each rate, but only if the trust fund balance as of December 31 of the
preceding year is equal to or greater than one and eighteen hundredths percent
(1.18%) of the total wages paid in the state during the state fiscal year ended as of
June 30 of that year.
(a) If the trust fund balance as of December 31, 1999, is less than the trust fund
balance as of December 31, 1998, the amount of the rate reduction for
calendar year 2000 shall be reduced by forty percent (40%) to the level of
forty-five thousandths percent (0.045%).
(b) If the trust fund balance as of December 31, 2000, is less than the trust fund
balance as of December 31, 1999, the amount of the rate reduction for
calendar year 2001 shall be forty percent (40%) less than the amount of the
rate reduction which was in effect in calendar year 2000.
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
(6)
(7)
interest and all other collection actions provided for failure to make contributions
under KRS 341.300.
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.
The provisions of this section shall expire with regard to rates assigned for calendar
years beginning after December 31, 2001, and any balance of moneys or property in
the fund not expended or obligated for purposes consistent with this section by June
30, 2002, shall be deposited in the unemployment insurance trust fund.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 211, sec. 140, effective July 12, 2006. -- Created
1998 Ky. Acts ch. 167, sec. 11, effective July 15, 1998.
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