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341.243 Service capacity upgrade fund.
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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 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
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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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