23-704

23-704. Requisitions and withdrawals from
accounts in unemployment compensation fund; conditions of
expenditure for benefits, refunds and administration

A. Monies requisitioned from this state's account in the unemployment trust fund
shall be used exclusively for the payment of benefits and for refunds pursuant to this
chapter in accordance with authorized regulations except that monies credited to this
state's account in the unemployment trust fund pursuant to section 903 of the social
security act, as amended, shall be used exclusively as provided in subsection E of this
section. The department from time to time shall requisition from the unemployment trust
fund such amounts, not exceeding the amounts standing to the state's account therein, as
it deems necessary for the payment of benefits and refunds for a reasonable future
period. Upon receipt thereof the treasurer shall deposit the monies in the benefit
account and shall pay warrants for payment of benefits and refunds solely from the
benefit account. If the department believes more efficient administration will result
from such practice, it, in turn, may withdraw from the benefit account amounts it deems
necessary for payment of benefits for a reasonable future period and deposit such amounts
to the account of the department in a bank or public depository of its choosing and issue
checks against it in payment of benefits to claimants entitled thereto under law. The
monies shall be secured by the depository to the same extent and in the same manner as
required by the general depository law of the state.

B. Expenditures of monies in the benefit account and refunds from the clearing
account shall not be subject to any provisions of law requiring specific appropriations
or other formal release by state officers of monies in their custody.

C. All claims, warrants or other instruments utilized by the department for the
payment of benefits and refunds shall bear the signature of an employee designated for
that purpose by the director.

D. Any balance of monies requisitioned from the unemployment trust fund which
remains unclaimed or unpaid in the benefit account after expiration of the period for
which the sums were requisitioned either shall 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 director, shall be redeposited with the secretary of the treasury of
the United States to the credit of this state's account in the unemployment trust fund
established and maintained pursuant to section 904 of the social security act, as
amended.

E. Monies credited to the account of this state in the unemployment trust fund by
the secretary of the treasury of the United States pursuant to section 903 of the social
security act, as amended, may be requisitioned and used only in accordance with the
following requirements:

1. Except as provided in paragraph 2, such monies shall be used only in the payment
of benefits exclusive of administrative expense.

2. Such monies may be requisitioned and used for the payment of expenses incurred
for the administration of this chapter if and only if the monies are requisitioned and
expenses are incurred pursuant to and after the enactment of a state appropriation law
which:

(a) Specifies the purposes for which such monies are appropriated and the amounts
appropriated therefor,

(b) Limits the period within which such monies may be obligated to a period ending
not more than two years after the date of the enactment of the appropriation law, and

(c) Limits the amount which may be obligated during a fiscal year to an amount
which does not exceed the limitations on amount as prescribed by section 903 of the
social security act, as amended. For the purposes of this subsection, amounts obligated
during any such fiscal year shall be charged against equivalent amounts which were first
credited and which are not already so charged, in accordance with the requirements for
and limitations on charging prescribed by section 903 of the social security act, as
amended.

3. Monies appropriated for the payment of the expenses of administration pursuant
to this subsection shall be requisitioned as needed for the payment of obligations
incurred under such appropriation and, upon requisition, shall be deposited in the
employment security administration fund from which such payments shall be made. The
department shall maintain a separate record of the deposit, obligation, expenditure and
return of funds so deposited. Monies so deposited shall, until expended, remain a part
of the unemployment compensation fund and, if they will not be expended they shall be
returned promptly to the secretary of the treasury for credit to this state's account in
the unemployment trust fund.