96.9 UNEMPLOYMENT COMPENSATION FUND.
1. Establishment and control. There is hereby established as
a special fund, separate and apart from all public moneys or funds of
this state, an unemployment compensation fund, which shall be
administered by the department exclusively for the purposes of this
chapter. This fund shall consist of:
a. All contributions collected under this chapter,
b. Interest earned upon any moneys in the fund,
c. Any property or securities acquired through the use of
moneys belonging to the fund,
d. All earnings of such property or securities, and
e. All money credited to this state's account in the
unemployment trust fund pursuant to section 903 of the Social
Security Act, codified at 42 U.S.C. § 501--503, 1103--1105,
1321--1324. All moneys in the unemployment compensation fund shall
be mingled and undivided.
2. Accounts and deposits.a. The state treasurer shall be ex officio treasurer and
custodian of the fund and shall administer such fund in accordance
with the directions of the department. The director of the
department of administrative services shall issue warrants upon the
fund pursuant to the order of the department and such warrants shall
be paid from the fund by the treasurer.
b. The treasurer shall maintain within the fund three
separate accounts:
(1) A clearing account.
(2) An unemployment trust fund account.
(3) A benefit account.
c. All moneys payable to the unemployment compensation fund
and all interest and penalties on delinquent contributions and
reports shall, upon receipt thereof by the department, be forwarded
to the treasurer who shall immediately deposit them in the clearing
account, but the interest and penalties on delinquent contributions
and reports shall not be deemed to be a part of the fund. Refunds of
contributions payable pursuant to section 96.14 shall be paid by the
treasurer from the clearing account upon warrants issued by the
director of the department of administrative services under the
direction of the department. After clearance thereof, all other
moneys in the clearing account, except interest and penalties on
delinquent contributions and reports, shall be immediately deposited
with the secretary of the treasury of the United States to the credit
of the account of this state in the unemployment trust fund,
established and maintained pursuant to section 904 of the Social
Security Act as amended, any provisions of law in this state relating
to the deposit, administration, release or disbursement of moneys in
the possession or custody of this state to the contrary
notwithstanding. Interest and penalties on delinquent contributions
and reports collected from employers shall be transferred from the
clearing account to the special employment security contingency fund.
The benefit account shall consist of all moneys requisitioned from
this state's account in the unemployment trust fund for the payment
of benefits. Except as herein otherwise provided, moneys in the
clearing and benefit account may be deposited by the treasurer, under
the direction of the department, in any bank or public depository in
which general funds of the state may be deposited, but no public
deposit insurance charge or premium shall be paid out of the fund.
The treasurer shall give a separate bond conditioned upon the
faithful performance of the treasurer's duties as custodian of the
fund in an amount fixed by the governor and in form and manner
prescribed by law. Premiums for said bond shall be paid from the
administration fund.
d. Interest paid upon the moneys deposited with the secretary
of the treasury of the United States shall be credited to the
unemployment compensation fund.
3. Withdrawals. Moneys shall be requisitioned from this
state's account in the unemployment trust fund solely for the payment
of benefits and in accordance with regulations prescribed by the
department, except that money credited to this state's account
pursuant to section 903 of the Social Security Act may, subject to
the conditions prescribed in subsection 4 of this section, be used
for the payment of expenses incurred for the administration of this
chapter. The department shall from time to time requisition from the
unemployment trust fund such amounts, not exceeding the amounts
standing to the account of this state therein, as the department
deems necessary for the payment of benefits for a reasonable future
period. Upon receipt thereof the treasurer shall deposit such moneys
in the benefit account, and shall disburse such moneys upon warrants
drawn by the director of the department of administrative services
pursuant to the order of the department for the payment of benefits
solely from such benefit account. Expenditures of such moneys from
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 money in their custody.
All warrants issued by the director of the department of
administrative services for the payment of benefits and refunds shall
bear the signature of the director of the department of
administrative services. Any balance of moneys requisitioned from
the unemployment trust fund which remains unclaimed or unpaid in the
benefit account after the expiration of the period for which such
sums were requisitioned shall either be deducted from estimates for,
and may be utilized for the payment of, benefits during succeeding
periods, or, in the discretion of the department, 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,
as provided in subsection 2 of this section.
4. Money credited under section 903 of the Social Security
Act.a. Money 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 may
not be requisitioned from this state's account or used except for the
payment of benefits and for the payment of expenses incurred for the
administration of this chapter. Such money may be requisitioned
pursuant to subsection 3 of this section for the payment of benefits.
Such money may also be requisitioned and used for the payment of
expenses incurred for the administration of this chapter but only
pursuant to a specific appropriation by the legislature and only if
the expenses are incurred and the money is requisitioned after the
enactment of an appropriation law which (1) specifies the purposes
for which such money is appropriated and the amounts appropriated
therefor, (2) limits the period within which such money may be
obligated to a period ending not more than two years after the date
of the enactment of the appropriation law, and (3) limits the amount
which may be obligated during a twelve-month period beginning on July
1 and ending on the next June 30 to an amount which does not exceed
the amount by which the aggregate of the amounts transferred to the
account of this state pursuant to section 903 of the Social Security
Act exceeds the aggregate of the amounts used by this state pursuant
to this chapter and charged against the amounts transferred to the
account of this state during the same twelve-month period. For
purposes of this subsection, amounts used by this state for
administration shall be chargeable against transferred amounts at the
exact time the obligation is entered into. The use of money
appropriated under this subsection shall be accounted for in
accordance with standards established by the United States secretary
of labor.
b. Money requisitioned as provided herein for the payment of
expenses of administration shall be deposited in the employment
security administration fund, but, until expended, shall remain a
part of the unemployment compensation fund. The treasurer of state
shall maintain a separate record of the deposit, obligation,
expenditure, and return of funds so deposited. Any money so
deposited which either will not be obligated within the period
specified by the appropriation law or remains unobligated at the end
of the period, and any money which has been obligated within the
period but will not be expended, shall be returned promptly to the
account of this state in the unemployment trust fund.
5. Administration expenses excluded. Any amount credited to
this state's account in the unemployment trust fund under section 903
of the Social Security Act which has been appropriated for expenses
of administration pursuant to subsection 4 of this section, whether
or not withdrawn from such account, shall not be deemed assets of the
unemployment compensation fund for the purpose of computing
contribution rates under section 96.7, subsection 3, of this chapter.
6. Management of funds in the event of discontinuance of
unemployment trust fund. The provisions of subsections 1, 2, and 3
to the extent that they relate to the unemployment trust fund shall
be operative only so long as such unemployment trust fund continues
to exist and so long as the secretary of the treasury of the United
States continues to maintain for this state a separate book account
of all funds deposited therein by this state for benefit purposes,
together with this state's proportionate share of the earnings of
such unemployment trust fund, from which no other state is permitted
to make withdrawals. If and when such unemployment trust fund ceases
to exist, or such separate book account is no longer maintained, all
moneys, properties, or securities therein, belonging to the
unemployment compensation fund of this state shall be transferred to
the treasurer of the unemployment compensation fund, who shall hold,
invest, transfer, sell, deposit, and release such moneys, properties,
or securities in a manner approved by the director, treasurer of
state, and governor, in accordance with the provisions of this
chapter: Provided, that such moneys shall be invested in the
following readily marketable classes of securities; such securities
as are authorized by the laws of the state of Iowa for the investment
of trust funds. The treasurer shall dispose of securities and other
properties belonging to the unemployment compensation fund only under
the direction of the director, treasurer of state, and governor.
7. Cancellation of warrants. The director of the department
of administrative services, as of January 1, April 1, July 1, and
October 1 of each year, shall stop payment on all warrants for the
payment of benefits which have been outstanding and unredeemed by the
state treasurer for six months or longer. Should the original
warrants subsequently be presented for payment, warrants in lieu
thereof shall be issued by the director of the department of
administrative services at the discretion of and certification by the
department.
8. Unemployment compensation reserve fund.a. A special fund to be known as the unemployment
compensation reserve fund is created in the state treasury. The
reserve fund is separate and distinct from the unemployment
compensation fund. All moneys collected as reserve contributions, as
defined in paragraph "b", shall be deposited in the reserve fund.
The moneys in the reserve fund may be used for the payment of
unemployment benefits and shall remain available for expenditure in
accordance with the provisions of this subsection. The treasurer of
state shall be the custodian of the reserve fund and shall disburse
the moneys in the reserve fund in accordance with this subsection and
the directions of the director of the department of workforce
development.
b. If the balance in the reserve fund on July 1 of the
preceding calendar year for calendar year 2004 and each year
thereafter is less than one hundred fifty million dollars, a
percentage of contributions, as determined by the director, shall be
deemed to be reserve contributions for the following calendar year.
If the percentage of contributions, termed the reserve contribution
tax rate, is not zero percent as determined pursuant to this
subsection, the combined tax rate of contributions to the
unemployment compensation fund and to the unemployment compensation
reserve fund shall be divided so that a minimum of fifty percent of
the combined tax rate equals the unemployment contribution tax rate
and a maximum of fifty percent of the combined tax rate equals the
reserve contribution tax rate except for employers who are assigned a
combined tax rate of five and four-tenths. For those employers, the
reserve contribution tax rate shall equal zero and their combined tax
rate shall equal their unemployment contribution rate. When the
reserve contribution tax rate is determined to be zero percent, the
unemployment contribution rate for all employers shall equal one
hundred percent of the combined tax rate. The reserve contributions
collected in any calendar year shall not exceed fifty million
dollars. The provisions for collection of contributions under
section 96.14 are applicable to the collection of reserve
contributions. Reserve contributions shall not be deducted in whole
or in part by any employer from the wages of individuals in its
employ. All moneys collected as reserve contributions shall not
become part of the unemployment compensation fund but shall be
deposited in the reserve fund created in this subsection.
c. Moneys in the reserve fund shall only be used to pay
unemployment benefits to the extent moneys in the unemployment
compensation fund are insufficient to pay benefits during a calendar
quarter.
d. The interest earned on the moneys in the reserve fund
shall be deposited in and credited to the reserve fund.
e. Moneys from interest earned on the unemployment
compensation reserve fund shall be used by the department only upon
appropriation by the general assembly and for administrative costs to
collect the reserve contributions.
96.9 UNEMPLOYMENT COMPENSATION FUND.
1. Establishment and control. There is hereby established as
a special fund, separate and apart from all public moneys or funds of
this state, an unemployment compensation fund, which shall be
administered by the department exclusively for the purposes of this
chapter. This fund shall consist of:
a. All contributions collected under this chapter,
b. Interest earned upon any moneys in the fund,
c. Any property or securities acquired through the use of
moneys belonging to the fund,
d. All earnings of such property or securities, and
e. All money credited to this state's account in the
unemployment trust fund pursuant to section 903 of the Social
Security Act, codified at 42 U.S.C. § 501--503, 1103--1105,
1321--1324. All moneys in the unemployment compensation fund shall
be mingled and undivided.
2. Accounts and deposits.a. The state treasurer shall be ex officio treasurer and
custodian of the fund and shall administer such fund in accordance
with the directions of the department. The director of the
department of administrative services shall issue warrants upon the
fund pursuant to the order of the department and such warrants shall
be paid from the fund by the treasurer.
b. The treasurer shall maintain within the fund three
separate accounts:
(1) A clearing account.
(2) An unemployment trust fund account.
(3) A benefit account.
c. All moneys payable to the unemployment compensation fund
and all interest and penalties on delinquent contributions and
reports shall, upon receipt thereof by the department, be forwarded
to the treasurer who shall immediately deposit them in the clearing
account, but the interest and penalties on delinquent contributions
and reports shall not be deemed to be a part of the fund. Refunds of
contributions payable pursuant to section 96.14 shall be paid by the
treasurer from the clearing account upon warrants issued by the
director of the department of administrative services under the
direction of the department. After clearance thereof, all other
moneys in the clearing account, except interest and penalties on
delinquent contributions and reports, shall be immediately deposited
with the secretary of the treasury of the United States to the credit
of the account of this state in the unemployment trust fund,
established and maintained pursuant to section 904 of the Social
Security Act as amended, any provisions of law in this state relating
to the deposit, administration, release or disbursement of moneys in
the possession or custody of this state to the contrary
notwithstanding. Interest and penalties on delinquent contributions
and reports collected from employers shall be transferred from the
clearing account to the special employment security contingency fund.
The benefit account shall consist of all moneys requisitioned from
this state's account in the unemployment trust fund for the payment
of benefits. Except as herein otherwise provided, moneys in the
clearing and benefit account may be deposited by the treasurer, under
the direction of the department, in any bank or public depository in
which general funds of the state may be deposited, but no public
deposit insurance charge or premium shall be paid out of the fund.
The treasurer shall give a separate bond conditioned upon the
faithful performance of the treasurer's duties as custodian of the
fund in an amount fixed by the governor and in form and manner
prescribed by law. Premiums for said bond shall be paid from the
administration fund.
d. Interest paid upon the moneys deposited with the secretary
of the treasury of the United States shall be credited to the
unemployment compensation fund.
3. Withdrawals. Moneys shall be requisitioned from this
state's account in the unemployment trust fund solely for the payment
of benefits and in accordance with regulations prescribed by the
department, except that money credited to this state's account
pursuant to section 903 of the Social Security Act may, subject to
the conditions prescribed in subsection 4 of this section, be used
for the payment of expenses incurred for the administration of this
chapter. The department shall from time to time requisition from the
unemployment trust fund such amounts, not exceeding the amounts
standing to the account of this state therein, as the department
deems necessary for the payment of benefits for a reasonable future
period. Upon receipt thereof the treasurer shall deposit such moneys
in the benefit account, and shall disburse such moneys upon warrants
drawn by the director of the department of administrative services
pursuant to the order of the department for the payment of benefits
solely from such benefit account. Expenditures of such moneys from
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 money in their custody.
All warrants issued by the director of the department of
administrative services for the payment of benefits and refunds shall
bear the signature of the director of the department of
administrative services. Any balance of moneys requisitioned from
the unemployment trust fund which remains unclaimed or unpaid in the
benefit account after the expiration of the period for which such
sums were requisitioned shall either be deducted from estimates for,
and may be utilized for the payment of, benefits during succeeding
periods, or, in the discretion of the department, 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,
as provided in subsection 2 of this section.
4. Money credited under section 903 of the Social Security
Act.a. Money 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 may
not be requisitioned from this state's account or used except for the
payment of benefits and for the payment of expenses incurred for the
administration of this chapter. Such money may be requisitioned
pursuant to subsection 3 of this section for the payment of benefits.
Such money may also be requisitioned and used for the payment of
expenses incurred for the administration of this chapter but only
pursuant to a specific appropriation by the legislature and only if
the expenses are incurred and the money is requisitioned after the
enactment of an appropriation law which (1) specifies the purposes
for which such money is appropriated and the amounts appropriated
therefor, (2) limits the period within which such money may be
obligated to a period ending not more than two years after the date
of the enactment of the appropriation law, and (3) limits the amount
which may be obligated during a twelve-month period beginning on July
1 and ending on the next June 30 to an amount which does not exceed
the amount by which the aggregate of the amounts transferred to the
account of this state pursuant to section 903 of the Social Security
Act exceeds the aggregate of the amounts used by this state pursuant
to this chapter and charged against the amounts transferred to the
account of this state during the same twelve-month period. For
purposes of this subsection, amounts used by this state for
administration shall be chargeable against transferred amounts at the
exact time the obligation is entered into. The use of money
appropriated under this subsection shall be accounted for in
accordance with standards established by the United States secretary
of labor.
b. Money requisitioned as provided herein for the payment of
expenses of administration shall be deposited in the employment
security administration fund, but, until expended, shall remain a
part of the unemployment compensation fund. The treasurer of state
shall maintain a separate record of the deposit, obligation,
expenditure, and return of funds so deposited. Any money so
deposited which either will not be obligated within the period
specified by the appropriation law or remains unobligated at the end
of the period, and any money which has been obligated within the
period but will not be expended, shall be returned promptly to the
account of this state in the unemployment trust fund.
5. Administration expenses excluded. Any amount credited to
this state's account in the unemployment trust fund under section 903
of the Social Security Act which has been appropriated for expenses
of administration pursuant to subsection 4 of this section, whether
or not withdrawn from such account, shall not be deemed assets of the
unemployment compensation fund for the purpose of computing
contribution rates under section 96.7, subsection 3, of this chapter.
6. Management of funds in the event of discontinuance of
unemployment trust fund. The provisions of subsections 1, 2, and 3
to the extent that they relate to the unemployment trust fund shall
be operative only so long as such unemployment trust fund continues
to exist and so long as the secretary of the treasury of the United
States continues to maintain for this state a separate book account
of all funds deposited therein by this state for benefit purposes,
together with this state's proportionate share of the earnings of
such unemployment trust fund, from which no other state is permitted
to make withdrawals. If and when such unemployment trust fund ceases
to exist, or such separate book account is no longer maintained, all
moneys, properties, or securities therein, belonging to the
unemployment compensation fund of this state shall be transferred to
the treasurer of the unemployment compensation fund, who shall hold,
invest, transfer, sell, deposit, and release such moneys, properties,
or securities in a manner approved by the director, treasurer of
state, and governor, in accordance with the provisions of this
chapter: Provided, that such moneys shall be invested in the
following readily marketable classes of securities; such securities
as are authorized by the laws of the state of Iowa for the investment
of trust funds. The treasurer shall dispose of securities and other
properties belonging to the unemployment compensation fund only under
the direction of the director, treasurer of state, and governor.
7. Cancellation of warrants. The director of the department
of administrative services, as of January 1, April 1, July 1, and
October 1 of each year, shall stop payment on all warrants for the
payment of benefits which have been outstanding and unredeemed by the
state treasurer for six months or longer. Should the original
warrants subsequently be presented for payment, warrants in lieu
thereof shall be issued by the director of the department of
administrative services at the discretion of and certification by the
department.
8. Unemployment compensation reserve fund.a. A special fund to be known as the unemployment
compensation reserve fund is created in the state treasury. The
reserve fund is separate and distinct from the unemployment
compensation fund. All moneys collected as reserve contributions, as
defined in paragraph "b", shall be deposited in the reserve fund.
The moneys in the reserve fund may be used for the payment of
unemployment benefits and shall remain available for expenditure in
accordance with the provisions of this subsection. The treasurer of
state shall be the custodian of the reserve fund and shall disburse
the moneys in the reserve fund in accordance with this subsection and
the directions of the director of the department of workforce
development.
b. If the balance in the reserve fund on July 1 of the
preceding calendar year for calendar year 2004 and each year
thereafter is less than one hundred fifty million dollars, a
percentage of contributions, as determined by the director, shall be
deemed to be reserve contributions for the following calendar year.
If the percentage of contributions, termed the reserve contribution
tax rate, is not zero percent as determined pursuant to this
subsection, the combined tax rate of contributions to the
unemployment compensation fund and to the unemployment compensation
reserve fund shall be divided so that a minimum of fifty percent of
the combined tax rate equals the unemployment contribution tax rate
and a maximum of fifty percent of the combined tax rate equals the
reserve contribution tax rate except for employers who are assigned a
combined tax rate of five and four-tenths. For those employers, the
reserve contribution tax rate shall equal zero and their combined tax
rate shall equal their unemployment contribution rate. When the
reserve contribution tax rate is determined to be zero percent, the
unemployment contribution rate for all employers shall equal one
hundred percent of the combined tax rate. The reserve contributions
collected in any calendar year shall not exceed fifty million
dollars. The provisions for collection of contributions under
section 96.14 are applicable to the collection of reserve
contributions. Reserve contributions shall not be deducted in whole
or in part by any employer from the wages of individuals in its
employ. All moneys collected as reserve contributions shall not
become part of the unemployment compensation fund but shall be
deposited in the reserve fund created in this subsection.
c. Moneys in the reserve fund shall only be used to pay
unemployment benefits to the extent moneys in the unemployment
compensation fund are insufficient to pay benefits during a calendar
quarter.
d. The interest earned on the moneys in the reserve fund
shall be deposited in and credited to the reserve fund.
e. Moneys from interest earned on the unemployment
compensation reserve fund shall be used by the department only upon
appropriation by the general assembly and for administrative costs to
collect the reserve contributions.
96.9 UNEMPLOYMENT COMPENSATION FUND.
1. Establishment and control. There is hereby established as
a special fund, separate and apart from all public moneys or funds of
this state, an unemployment compensation fund, which shall be
administered by the department exclusively for the purposes of this
chapter. This fund shall consist of:
a. All contributions collected under this chapter,
b. Interest earned upon any moneys in the fund,
c. Any property or securities acquired through the use of
moneys belonging to the fund,
d. All earnings of such property or securities, and
e. All money credited to this state's account in the
unemployment trust fund pursuant to section 903 of the Social
Security Act, codified at 42 U.S.C. § 501--503, 1103--1105,
1321--1324. All moneys in the unemployment compensation fund shall
be mingled and undivided.
2. Accounts and deposits.a. The state treasurer shall be ex officio treasurer and
custodian of the fund and shall administer such fund in accordance
with the directions of the department. The director of the
department of administrative services shall issue warrants upon the
fund pursuant to the order of the department and such warrants shall
be paid from the fund by the treasurer.
b. The treasurer shall maintain within the fund three
separate accounts:
(1) A clearing account.
(2) An unemployment trust fund account.
(3) A benefit account.
c. All moneys payable to the unemployment compensation fund
and all interest and penalties on delinquent contributions and
reports shall, upon receipt thereof by the department, be forwarded
to the treasurer who shall immediately deposit them in the clearing
account, but the interest and penalties on delinquent contributions
and reports shall not be deemed to be a part of the fund. Refunds of
contributions payable pursuant to section 96.14 shall be paid by the
treasurer from the clearing account upon warrants issued by the
director of the department of administrative services under the
direction of the department. After clearance thereof, all other
moneys in the clearing account, except interest and penalties on
delinquent contributions and reports, shall be immediately deposited
with the secretary of the treasury of the United States to the credit
of the account of this state in the unemployment trust fund,
established and maintained pursuant to section 904 of the Social
Security Act as amended, any provisions of law in this state relating
to the deposit, administration, release or disbursement of moneys in
the possession or custody of this state to the contrary
notwithstanding. Interest and penalties on delinquent contributions
and reports collected from employers shall be transferred from the
clearing account to the special employment security contingency fund.
The benefit account shall consist of all moneys requisitioned from
this state's account in the unemployment trust fund for the payment
of benefits. Except as herein otherwise provided, moneys in the
clearing and benefit account may be deposited by the treasurer, under
the direction of the department, in any bank or public depository in
which general funds of the state may be deposited, but no public
deposit insurance charge or premium shall be paid out of the fund.
The treasurer shall give a separate bond conditioned upon the
faithful performance of the treasurer's duties as custodian of the
fund in an amount fixed by the governor and in form and manner
prescribed by law. Premiums for said bond shall be paid from the
administration fund.
d. Interest paid upon the moneys deposited with the secretary
of the treasury of the United States shall be credited to the
unemployment compensation fund.
3. Withdrawals. Moneys shall be requisitioned from this
state's account in the unemployment trust fund solely for the payment
of benefits and in accordance with regulations prescribed by the
department, except that money credited to this state's account
pursuant to section 903 of the Social Security Act may, subject to
the conditions prescribed in subsection 4 of this section, be used
for the payment of expenses incurred for the administration of this
chapter. The department shall from time to time requisition from the
unemployment trust fund such amounts, not exceeding the amounts
standing to the account of this state therein, as the department
deems necessary for the payment of benefits for a reasonable future
period. Upon receipt thereof the treasurer shall deposit such moneys
in the benefit account, and shall disburse such moneys upon warrants
drawn by the director of the department of administrative services
pursuant to the order of the department for the payment of benefits
solely from such benefit account. Expenditures of such moneys from
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 money in their custody.
All warrants issued by the director of the department of
administrative services for the payment of benefits and refunds shall
bear the signature of the director of the department of
administrative services. Any balance of moneys requisitioned from
the unemployment trust fund which remains unclaimed or unpaid in the
benefit account after the expiration of the period for which such
sums were requisitioned shall either be deducted from estimates for,
and may be utilized for the payment of, benefits during succeeding
periods, or, in the discretion of the department, 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,
as provided in subsection 2 of this section.
4. Money credited under section 903 of the Social Security
Act.a. Money 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 may
not be requisitioned from this state's account or used except for the
payment of benefits and for the payment of expenses incurred for the
administration of this chapter. Such money may be requisitioned
pursuant to subsection 3 of this section for the payment of benefits.
Such money may also be requisitioned and used for the payment of
expenses incurred for the administration of this chapter but only
pursuant to a specific appropriation by the legislature and only if
the expenses are incurred and the money is requisitioned after the
enactment of an appropriation law which (1) specifies the purposes
for which such money is appropriated and the amounts appropriated
therefor, (2) limits the period within which such money may be
obligated to a period ending not more than two years after the date
of the enactment of the appropriation law, and (3) limits the amount
which may be obligated during a twelve-month period beginning on July
1 and ending on the next June 30 to an amount which does not exceed
the amount by which the aggregate of the amounts transferred to the
account of this state pursuant to section 903 of the Social Security
Act exceeds the aggregate of the amounts used by this state pursuant
to this chapter and charged against the amounts transferred to the
account of this state during the same twelve-month period. For
purposes of this subsection, amounts used by this state for
administration shall be chargeable against transferred amounts at the
exact time the obligation is entered into. The use of money
appropriated under this subsection shall be accounted for in
accordance with standards established by the United States secretary
of labor.
b. Money requisitioned as provided herein for the payment of
expenses of administration shall be deposited in the employment
security administration fund, but, until expended, shall remain a
part of the unemployment compensation fund. The treasurer of state
shall maintain a separate record of the deposit, obligation,
expenditure, and return of funds so deposited. Any money so
deposited which either will not be obligated within the period
specified by the appropriation law or remains unobligated at the end
of the period, and any money which has been obligated within the
period but will not be expended, shall be returned promptly to the
account of this state in the unemployment trust fund.
5. Administration expenses excluded. Any amount credited to
this state's account in the unemployment trust fund under section 903
of the Social Security Act which has been appropriated for expenses
of administration pursuant to subsection 4 of this section, whether
or not withdrawn from such account, shall not be deemed assets of the
unemployment compensation fund for the purpose of computing
contribution rates under section 96.7, subsection 3, of this chapter.
6. Management of funds in the event of discontinuance of
unemployment trust fund. The provisions of subsections 1, 2, and 3
to the extent that they relate to the unemployment trust fund shall
be operative only so long as such unemployment trust fund continues
to exist and so long as the secretary of the treasury of the United
States continues to maintain for this state a separate book account
of all funds deposited therein by this state for benefit purposes,
together with this state's proportionate share of the earnings of
such unemployment trust fund, from which no other state is permitted
to make withdrawals. If and when such unemployment trust fund ceases
to exist, or such separate book account is no longer maintained, all
moneys, properties, or securities therein, belonging to the
unemployment compensation fund of this state shall be transferred to
the treasurer of the unemployment compensation fund, who shall hold,
invest, transfer, sell, deposit, and release such moneys, properties,
or securities in a manner approved by the director, treasurer of
state, and governor, in accordance with the provisions of this
chapter: Provided, that such moneys shall be invested in the
following readily marketable classes of securities; such securities
as are authorized by the laws of the state of Iowa for the investment
of trust funds. The treasurer shall dispose of securities and other
properties belonging to the unemployment compensation fund only under
the direction of the director, treasurer of state, and governor.
7. Cancellation of warrants. The director of the department
of administrative services, as of January 1, April 1, July 1, and
October 1 of each year, shall stop payment on all warrants for the
payment of benefits which have been outstanding and unredeemed by the
state treasurer for six months or longer. Should the original
warrants subsequently be presented for payment, warrants in lieu
thereof shall be issued by the director of the department of
administrative services at the discretion of and certification by the
department.
8. Unemployment compensation reserve fund.a. A special fund to be known as the unemployment
compensation reserve fund is created in the state treasury. The
reserve fund is separate and distinct from the unemployment
compensation fund. All moneys collected as reserve contributions, as
defined in paragraph "b", shall be deposited in the reserve fund.
The moneys in the reserve fund may be used for the payment of
unemployment benefits and shall remain available for expenditure in
accordance with the provisions of this subsection. The treasurer of
state shall be the custodian of the reserve fund and shall disburse
the moneys in the reserve fund in accordance with this subsection and
the directions of the director of the department of workforce
development.
b. If the balance in the reserve fund on July 1 of the
preceding calendar year for calendar year 2004 and each year
thereafter is less than one hundred fifty million dollars, a
percentage of contributions, as determined by the director, shall be
deemed to be reserve contributions for the following calendar year.
If the percentage of contributions, termed the reserve contribution
tax rate, is not zero percent as determined pursuant to this
subsection, the combined tax rate of contributions to the
unemployment compensation fund and to the unemployment compensation
reserve fund shall be divided so that a minimum of fifty percent of
the combined tax rate equals the unemployment contribution tax rate
and a maximum of fifty percent of the combined tax rate equals the
reserve contribution tax rate except for employers who are assigned a
combined tax rate of five and four-tenths. For those employers, the
reserve contribution tax rate shall equal zero and their combined tax
rate shall equal their unemployment contribution rate. When the
reserve contribution tax rate is determined to be zero percent, the
unemployment contribution rate for all employers shall equal one
hundred percent of the combined tax rate. The reserve contributions
collected in any calendar year shall not exceed fifty million
dollars. The provisions for collection of contributions under
section 96.14 are applicable to the collection of reserve
contributions. Reserve contributions shall not be deducted in whole
or in part by any employer from the wages of individuals in its
employ. All moneys collected as reserve contributions shall not
become part of the unemployment compensation fund but shall be
deposited in the reserve fund created in this subsection.
c. Moneys in the reserve fund shall only be used to pay
unemployment benefits to the extent moneys in the unemployment
compensation fund are insufficient to pay benefits during a calendar
quarter.
d. The interest earned on the moneys in the reserve fund
shall be deposited in and credited to the reserve fund.
e. Moneys from interest earned on the unemployment
compensation reserve fund shall be used by the department only upon
appropriation by the general assembly and for administrative costs to
collect the reserve contributions.
