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.