AB 184

Currently, if in any year the balance in the unemployment reserve fund is

insufficient to make full payment of unemployment insurance benefits that become

payable to claimants for that year, the Department of Workforce Development

(DWD) secures an advance from the federal unemployment account to enable this

state to make full payment of all benefits that become payable. Whenever the

balance in the unemployment reserve fund is sufficient to repay the federal

government for its advances and to continue to make payment of the benefits that

become payable, DWD repays the federal government for its outstanding advances.

Annually, the federal government assesses interest to this state on this state's

outstanding advances that have not been repaid. Currently, if in any year DWD is

unable to make full payment of the interest that becomes due from certain other

limited sources, each employer must pay an assessment to the state unemployment

interest payment fund in an amount specified by law sufficient to enable DWD to

make full payment of the interest due for that year.

This bill creates a one-time appropriation in the amount of $26,000,000 from

general purpose revenues to pay any interest that becomes due to the federal

government prior to July 1, 2015, on outstanding advances made to the

unemployment reserve fund. Under the bill, DWD must first use any available

moneys from this appropriation to make payment of the interest due for any year.

If the amount appropriated, together with other available sources, is insufficient to

make full payment of the interest that becomes due for any year, each employer must

pay an assessment in the amount determined by DWD sufficient to cover the

deficiency. If any unencumbered balance remains in the appropriation account

created by the bill at the end of the 2013-15 fiscal biennium, the balance lapses to

the general fund.