CHAPTER 26. UNEMPLOYMENT INSURANCE BENEFIT FUND
IC 22-4-26
Chapter 26. Unemployment Insurance Benefit Fund
IC 22-4-26-1
Establishment; source of funds
Sec. 1. There is established a special fund to be known as theunemployment insurance benefit fund which shall be administeredseparate and apart from all public money or funds of the state. Thisfund shall consist of:
(1) all contributions, all payments in lieu of contributions, allmoney received from the federal government as reimbursementspursuant to section 204 of the Federal-State ExtendedCompensation Act of 1970, and all money paid into andreceived by it as provided in this article;
(2) any property or securities and the earnings thereof acquiredthrough the use of money belonging to the fund;
(3) all other money received for the fund from any other source;
(4) all money credited to this state's account in theunemployment trust fund pursuant to 42 U.S.C. 1103, asamended; and
(5) interest earned from all money in the fund.
Subject to the provisions of this article, the board is vested with fullpower, authority, and jurisdiction over the fund, including all moneyand property or securities belonging thereto, and may perform anyand all acts whether or not specifically designated in this articlewhich are necessary or convenient in the administration thereofconsistent with the provisions of this article and the Depository Act.The money in this fund shall be used only for the payment ofunemployment compensation benefits.
(Formerly: Acts 1947, c.208, s.2701; Acts 1957, c.299, s.8; Acts1973, P.L.239, SEC.5.) As amended by P.L.18-1987, SEC.68.
IC 22-4-26-2
Administration of fund
Sec. 2. The fund shall be administered exclusively for the purposeof this article, and money withdrawn therefrom, except for depositin the unemployment insurance benefit fund and for refund, asprovided in this article, and except for amounts credited to theaccount of this state pursuant to 42 U.S.C. 1103, as amended, whichshall be used exclusively as provided in section 5 of this chapter,shall be used solely for the payment of benefits. Payment of benefitsand refunds shall be made in accordance with the rules prescribed bythe department consistent with the provisions of this article.Withdrawals from the fund except as provided in section 5 of thischapter shall not be subject to any provisions of law requiringspecific appropriations or other formal release by state officers ofmoney in their custody.
(Formerly: Acts 1947, c.208, s.2702; Acts 1957, c.299, s.9.) Asamended by P.L.144-1986, SEC.123; P.L.18-1987, SEC.69;P.L.108-2006, SEC.47.
IC 22-4-26-3
Treasurer of fund; depositories; investments
Sec. 3. The treasurer of state shall be ex officio treasurer andcustodian of the fund and shall administer the fund in accordancewith the provisions of this article and the directions of thecommissioner and shall pay all warrants drawn upon it in accordancewith such rules as the board may prescribe. All contributionsprovided for in this article shall be paid to and collected by thedepartment. All contributions and other money payable to the fundas provided in this article upon receipt thereof by the departmentshall be paid to and deposited with the treasurer of state to the creditof the unemployment insurance benefit fund. The commissioner shallimmediately order the auditor of state to issue the auditor's warranton the treasurer of state immediately to forward such money anddeposit it, together with any money earned thereby while in thetreasurer's custody and any other money received by the treasurer forthe payment of benefits from any source other than theunemployment trust fund, with the Secretary of the Treasury of theUnited States of America to the credit of the unemployment trustfund. All money belonging to the unemployment insurance benefitfund and not otherwise deposited, invested, or paid over pursuant tothe provisions of this article may be deposited by the treasurer ofstate under the direction of the commissioner in any banks or publicdepositories in which general funds of the state may be deposited,but no public deposit insurance charge or premium shall be paid outof money in the unemployment insurance benefit fund, any otherprovisions of law to the contrary notwithstanding. The treasurer ofstate shall, if required by the Social Security Administration, give aseparate bond conditioned upon the faithful performance of thetreasurer's duties as custodian of the fund in an amount and with suchsureties as shall be fixed and approved by the governor. Premiumsfor the said bond shall be paid as provided in IC 22-4-24.
(Formerly: Acts 1947, c.208, s.2703.) As amended by P.L.144-1986,SEC.124; P.L.18-1987, SEC.70; P.L.21-1995, SEC.106.
IC 22-4-26-4
Federal aid; requisition; disposition of balance
Sec. 4. The commissioner, through the treasurer of state acting asits fiscal agent, shall requisition from time to time from theunemployment trust fund such amounts not exceeding the amountstanding to its account therein as it deems necessary for the paymentof benefits for a reasonable future period and for refunds, but for noother purpose. Upon receipt thereof, the treasurer of state shalldeposit such money in the unemployment insurance benefit fund ina special benefit account, and upon order of the commissioner, theauditor of state or the auditor's duly authorized agent shall issue theauditor's warrants for the payment of benefits and refunds by thetreasurer of state. Any balance of money so requisitioned whichremains unclaimed or unpaid in the special benefit account of theunemployment insurance benefit fund after the expiration of the
period for which such sums are requisitioned shall either be deductedfrom estimates for, and may be utilized for the payment of, benefitsand refunds during succeeding periods, or in the discretion of thecommissioner shall be redeposited with the Secretary of the Treasuryof the United States to the credit of the unemployment trust fund asprovided in section 3 of this chapter.
(Formerly: Acts 1947, c.208, s.2704.) As amended by P.L.144-1986,SEC.125; P.L.18-1987, SEC.71; P.L.21-1995, SEC.107.
IC 22-4-26-5
Use of money from federal unemployment trust fund;appropriations
Sec. 5. (a) Money credited to the account of this state in theunemployment trust fund by the Secretary of the Treasury of theUnited States pursuant to 42 U.S.C. 1103, as amended, may berequisitioned and used for the payment of expenses incurred for theadministration of this article and public employment offices pursuantto a specific appropriation by the general assembly, provided that theexpenses are incurred and the money is requisitioned after theenactment of an appropriation statute which:
(1) specifies the purposes for which such money is appropriatedand the amounts appropriated therefor;
(2) except as provided in subsection (i), limits the period withinwhich such money may be obligated to a period ending notmore than two (2) years after the date of the enactment of theappropriation statute; and
(3) limits the total amount which may be obligated during atwelve (12) month period beginning on July 1 and ending on thenext June 30 to an amount which does not exceed the amountby which:
(A) the aggregate of the amounts credited to the account ofthis state pursuant to 42 U.S.C. 1103, as amended, duringsuch twelve (12) month period and the twenty-four (24)preceding twelve (12) month periods; exceeds
(B) the aggregate of the amounts obligated by this statepursuant to this section and amounts paid out for benefitsand charged against the amounts credited to the account ofthis state during such twenty-five (25) twelve (12) monthperiods.
(b) For the purposes of this section, amounts obligated by thisstate during any such twelve (12) month period shall be chargedagainst equivalent amounts which were first credited and which havenot previously been so charged, except that no amount obligated foradministration of this article and public employment offices duringany such twelve (12) month period may be charged against anyamount credited during such twelve (12) month period earlier thanthe fourteenth preceding such twelve (12) month period.
(c) Amounts credited to the account of this state pursuant to 42U.S.C. 1103, as amended, may not be obligated except for thepayment of cash benefits to individuals with respect to their
unemployment and for the payment of expenses incurred for theadministration of this article and public employment offices pursuantto this section.
(d) Money appropriated as provided in this section for thepayment of expenses incurred for the administration of this articleand public employment offices pursuant to this section shall berequisitioned as needed for payment of obligations incurred undersuch appropriation and upon requisition shall be deposited in theemployment and training services administration fund but, untilexpended, shall remain a part of the unemployment insurance benefitfund. The commissioner shall maintain a separate record of thedeposit, obligation, expenditure, and return of funds so deposited. Ifany money so deposited is for any reason not to be expended for thepurpose for which it was appropriated, or if it remains unexpendedat the end of the period specified by the statute appropriating suchmoney, it shall be withdrawn and returned to the Secretary of theTreasury of the United States for credit to this state's account in theunemployment trust fund.
(e) There is appropriated out of the funds made available toIndiana under Section 903 of the Social Security Act, as amended bySection 209 of the Temporary Extended UnemploymentCompensation Act of 2002 (which is Title II of the federal JobsCreation and Worker Assistance Act of 2002, Pub.L107-147),seventy-two million two hundred thousand dollars ($72,200,000) tothe department of workforce development. The appropriation madeby this subsection is available for ten (10) state fiscal yearsbeginning with the state fiscal year beginning July 1, 2003.Unencumbered money at the end of a state fiscal year does not revertto the state general fund.
(f) Money appropriated under subsection (e) is subject to therequirements of IC 22-4-37-1.
(g) Money appropriated under subsection (e) may be used only forthe following purposes:
(1) The administration of the Unemployment Insurance (UI)program and the Wagner Peyser public employment officeprogram.
(2) Acquiring land and erecting buildings for the use of thedepartment of workforce development.
(3) Improvements, facilities, paving, landscaping, andequipment repair and maintenance that may be required by thedepartment of workforce development.
(h) In accordance with the requirements of subsection (g), thedepartment of workforce development may allocate up to thefollowing amounts from the amount described in subsection (e) forthe following purposes:
(1) Thirty-nine million two hundred thousand dollars($39,200,000) to be used for the modernization of theUnemployment Insurance (UI) system beginning July 1, 2003,and ending June 30, 2013.
(2) For: (A) the state fiscal year beginning after June 30, 2003, andending before July 1, 2004, five million dollars($5,000,000);
(B) the state fiscal year beginning after June 30, 2004, andending before July 1, 2005, five million dollars($5,000,000);
(C) the state fiscal year beginning after June 30, 2005, andending before July 1, 2006, five million dollars($5,000,000);
(D) the state fiscal year beginning after June 30, 2006, andending before July 1, 2007, five million dollars($5,000,000);
(E) the state fiscal year beginning after June 30, 2007, andending before July 1, 2008, five million dollars($5,000,000); and
(F) state fiscal years beginning after June 30, 2008, andending before July 1, 2012, the unused part of any amountallocated in any year for any purpose under this subsection;
for the JOBS proposal to meet the workforce needs of Indianaemployers in high wage, high skill, high demand occupations.
(3) For:
(A) the state fiscal year beginning after June 30, 2003, andending before July 1, 2004, four million dollars($4,000,000); and
(B) the state fiscal year beginning after June 30, 2004, andending before July 1, 2005, four million dollars($4,000,000);
to be used by the workforce investment boards in theadministration of Indiana's public employment offices.
(i) The amount appropriated under subsection (e) for the paymentof expenses incurred in the administration of this article and publicemployment is not required to be obligated within the two (2) yearperiod described in subsection (a)(2).
(Formerly: Acts 1947, c.208, s.2705; Acts 1957, c.299, s.10; Acts1965, c.190, s.15; Acts 1969, c.300, s.6; Acts 1973, P.L.239, SEC.6.)As amended by P.L.144-1986, SEC.126; P.L.18-1987, SEC.72;P.L.21-1995, SEC.108; P.L.224-2003, SEC.120; P.L.234-2007,SEC.68; P.L.3-2008, SEC.160.