288.290. Unemployment compensation fund, established--administration, deposit of funds--purposes--erroneous collection of interest or penalties. - Missouri Statutes

Unemployment compensation fund, established--administration,deposit of funds--purposes--erroneous collection of interest orpenalties.

288.290. 1. There is hereby established as a special fund, separateand apart from all public moneys or funds of this state, an "UnemploymentCompensation Fund", which shall be administered by the division exclusivelyfor the purposes of this law. This fund shall consist of:

(1) All contributions and payments in lieu of contributions collectedunder this law;

(2) Interest earned upon any moneys in the fund;

(3) Any property or securities acquired through the use of moneysbelonging to the fund;

(4) All earnings of such property or securities;

(5) All voluntary contributions permitted under the law; and

(6) All funds set aside or appropriated by the Congress of the UnitedStates or any federal agency, to be deposited to the fund. All moneys inthe funds shall be mingled and undivided, except that all money credited tothis state's account in the Unemployment Trust Fund pursuant to Section 903of the Social Security Act, as amended, and which has been appropriated forexpenses of administration, shall be used only for the purposes set out insubsection 5 of this section and shall not be included in the cash balancein the unemployment compensation fund for the purposes of sections 288.100and 288.113 to 288.126.

2. The director shall designate a treasurer and custodian of the fundand he or she shall administer the fund and shall issue his or her warrantsupon it in accordance with such regulations as the director shallprescribe. He or she shall maintain within the fund three separateaccounts:

(1) A clearing account;

(2) An unemployment trust fund account; and

(3) A benefit account.To ensure that unemployment compensation trust fund moneys are utilizedonly for the purpose authorized, no other fund shall be established withincreased employer taxes that are offset by a reduction of unemploymentcontributions, except for the special employment security fund created insection 288.310.

3. All moneys payable to the fund, upon their receipt by thedivision, shall immediately be deposited in the clearing account. Refundsof contributions or payments made necessary under the provisions ofsections 288.140 and 288.340 may be paid from the clearing account or thebenefit account. After clearance, all moneys in the clearing account shallbe immediately deposited with the Secretary of the Treasury of the UnitedStates of America to the credit of the account of this state in theUnemployment Trust Fund, established and maintained pursuant to Section 904of the Social Security Act, as amended, any provisions of law in this staterelating to the deposit, administration, release, or disbursement of statemoneys in the possession or custody of the state treasurer to the contrarynotwithstanding. The benefit account shall consist of all moneysrequisitioned from the Missouri account in the federal Unemployment TrustFund. Except as otherwise provided, moneys in the clearing and benefitaccounts may be deposited in any bank or public depositary in which generalfunds of the state may be deposited, but no public deposit insurance chargeor premium shall be paid out of the fund. Moneys in the clearing andbenefit accounts shall not be commingled with other state funds but shallbe maintained in separate accounts on the books of the depositary bank.All funds required by this law to be deposited in any state depositaryshall be secured by such depositary to the same extent and in the samemanner as is or may hereafter be required by section 30.270, RSMo, and allthe amendments thereto; provided, that the division shall do those actsdirected to be done by the governor, attorney general and state treasurer,or any of them, under section 30.270, RSMo, which are not inconsistent withthe other provisions of this law. Collateral pledged for this purposeshall be kept separate and distinct from any collateral pledged to secureother funds of the state, or, if combined, shall be first used to satisfyand make whole the accounts herein established. The treasurer shall give aseparate bond conditioned upon the faithful performance of his or herduties as custodian of the fund in an amount not to exceed twenty-fivethousand dollars and in the form prescribed by law or approved by theattorney general. Premiums for such bonds shall be paid from theadministration fund. All sums recovered for losses sustained by the fundshall be deposited therein.

4. Moneys shall be requisitioned from the Missouri account in thefederal Unemployment Trust Fund solely for the payment of benefits or forrefunds of contributions or payments in lieu of contributions in accordancewith regulations prescribed by the director, except that money credited tothis state's account pursuant to Section 903 of the Social Security Act, asamended, shall be used exclusively as provided in subsection 5 of thissection. The director shall from time to time requisition from the federalUnemployment Trust Fund such amounts, not exceeding the amounts standing tothe Missouri account therein, as he or she deems necessary for the paymentof benefits and refunds for a reasonable future period. Upon its receiptthe treasurer shall deposit such money in the benefit account and shallissue his or her warrants for the payment of benefits solely from suchbenefit account. Expenditures of such moneys in the benefit account andrefunds from the clearing account shall not be subject to any provisions oflaw requiring specific appropriations or other formal release by stateofficers of moneys belonging to this state in their custody. All warrantsissued by the treasurer for the payment of benefits and refunds shall bearthe signature of the treasurer and the countersignature of the director orother duly authorized division representative. Any balance of moneysrequisitioned from the federal Unemployment Trust Fund which remainsunclaimed or unpaid in the benefit account after the expiration of theperiod for which such sums were requisitioned shall either be deducted fromestimates for, and may be utilized for the payment of, benefits duringsucceeding periods, or, in the discretion of the director, shall beredeposited with the Secretary of the Treasury of the United States ofAmerica to the credit of the Missouri account in the federal UnemploymentTrust Fund as provided in subsection 3 of this section.

5. (1) Money credited to the account of this state in theUnemployment Trust Fund by the Secretary of the Treasury of the UnitedStates of America pursuant to Section 903 of the Social Security Act, asamended, may be requisitioned and used for the payment of expenses incurredfor the administration of this law pursuant to a specific appropriation bythe legislature, provided that the expenses are incurred and the money isrequisitioned as needed after the enactment of an appropriation law which:

(a) Specifies the purpose for which such money is appropriated andthe amounts appropriated therefor;

(b) Limits the period within which such money may be obligated to aperiod ending not more than two years after the date of the enactment ofthe appropriation law; and

(c) Limits the amount which may be obligated during a twelve-monthperiod beginning on July first and ending on the next June thirtieth to anamount which does not exceed the amount by which the aggregate of theamount transferred to the account of this state in the Unemployment TrustFund pursuant to subsections (a) and (b) of Section 903 of the SocialSecurity Act, as amended, exceeds the aggregate of the amounts used by thisstate pursuant to this subsection and charged against the amountstransferred to the account of this state in the Unemployment Trust Fund.

(2) The use of the money referred to in subdivision (1) of thissubsection shall be accounted for in accordance with standards establishedby the Secretary of Labor.

(3) For purposes of subdivision (1) of this subsection, amounts usedby this state for administration shall be chargeable against transferredamounts at the exact time the obligation is entered into.

(4) Money credited to the account of this state pursuant to Section903 of the Social Security Act, as amended, may not be withdrawn or usedexcept for the payment of benefits and for the payment of expenses for theadministration of this law and of public employment offices pursuant tothis subsection.

(5) Money appropriated as provided under subdivision (1) of thissubsection for the payment of expenses of administration shall berequisitioned as needed for the payment of obligations incurred under suchappropriation and, upon requisition, shall be deposited in the unemploymentcompensation administration fund from which such payments shall be made.Money so deposited shall, until expended, remain a part of the unemploymentcompensation fund and, if it will not be expended, shall be returnedpromptly to the account of this state in the Unemployment Trust Fund.

(6) Money credited to the account of the state in the federalUnemployment Trust Fund by the Secretary of the Treasury of the UnitedStates of America pursuant to Title 42, Section 903 of the Social SecurityAct with respect to the federal fiscal years 1999, 2000 and 2001, shall beused solely for the administration of the unemployment compensationprogram.

6. The provisions of subsections 1, 2, 3, 4, and 5 of this section,to the extent that they relate to the federal Unemployment Trust Fund,shall be operative only so long as such federal Unemployment Trust Fundcontinues to exist and so long as the Secretary of the Treasury of theUnited States of America continues to maintain a separate book account ofall funds deposited therein by contributions from employers of this statefor benefit purposes, and by money credited pursuant to Section 903 of theSocial Security Act, as amended, together with a proportionate share of theearnings apportioned to the Missouri account of such federal UnemploymentTrust Fund, from which no other state is permitted to make or authorizewithdrawals. If and when such Unemployment Trust Fund ceases to exist, orsuch separate book account is no longer maintained, all moneys, properties,or securities therein belonging to the unemployment compensation fund ofthis state shall be transferred to the treasurer of the unemploymentcompensation fund, who shall hold, invest, transfer, sell, deposit, andrelease such moneys, properties or securities in a manner approved by thedirector in accordance with the provisions of this law; provided, that suchmoneys shall be invested in the following readily marketable classes ofsecurities: bonds or other interest-bearing obligations of the UnitedStates of America, or securities on which the payment of principal andinterest are guaranteed by the United States of America, and bonds or otherinterest-bearing obligations of the state of Missouri; and provided,further, that such investments shall at all times be so made that all theassets of the fund shall always be readily convertible into cash whenneeded for the payment of benefits. The treasurer shall dispose ofsecurities or other properties belonging to the unemployment compensationfund only under the direction of the director.

7. Notwithstanding any other provision of this law, any interest orpenalties found to have been erroneously collected and which is ordered tobe refunded shall, if paid into the unemployment compensation fund, berefunded out of the unemployment compensation fund and, if paid into thespecial employment security fund, shall be refunded out of the specialemployment security fund; except that, in the event any interest andpenalties paid into the unemployment compensation fund shall be transferredto the special employment security fund, the refund of any such interestand penalties shall be made from the special employment security fund.

(L. 1951 p. 564 § 288.210, A.L. 1957 p. 520, A.L. 1959 S.B. 282, A.L. 1965 p. 434, A.L. 1969 p. 399, A.L. 1971 S.B. 171, A.L. 1974 S.B. 449, A.L. 1984 H.B. 1251 & 1549, A.L. 1991 H.B. 422, et al., A.L. 1994 S.B. 559, A.L. 1998 S.B. 922, A.L. 2004 H.B. 1268 & 1211)

Effective 1-01-05