WEST virginia Legislature
2016 regular session
Senate Bill 558
By Senators Cole (Mr.
President) and Kessler
(By Request of the Executive)
Referred to the Committee on Finance.]
A BILL to amend and reenact §21A-8-10 and §21A-8-16 of the Code of West Virginia, 1931, as amended, all relating to maintaining the solvency of the Unemployment Compensation Fund; providing a mechanism for the Governor to borrow funds from the Revenue Shortfall Reserve Fund for a limited period and deposit those funds into the Unemployment Compensation Fund if the balance of the Unemployment Compensation Fund drops below $50 million; providing that borrowed funds may only be used to pay benefits; providing that no amount borrowed may exceed $50 million; and providing for repayment of borrowed amounts.
Be it enacted by the Legislature of West Virginia:
That §21A-8-10 and §21A-8-16 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 8. UNEMPLOYMENT COMPENSATION FUND.
Except as provided in
section thirteen of this article, money shall be requisitioned from this
state's account in the Unemployment Trust Fund solely for the payment of
benefits and repayment of any loans outstanding from the Revenue
Construction Fund Shortfall Reserve Fund created in section twenty,
article two, chapter eleven-b of this code, as provided in section sixteen
of this article. The commissioner may requisition from the Unemployment Trust
Fund such amounts, not exceeding the amount of the account, as the commissioner
determines to be necessary for the payment of benefits for a reasonable future
period or to repay a loan outstanding from the Revenue Center Construction
Shortfall Reserve Fund as provided in section sixteen of this article.
Upon receipt of the money the commissioner shall deposit it in the benefit account.
§21A-8-16. Loans to
Unemployment Compensation Fund from Revenue
Center Construction Shortfall
(a) Notwithstanding any
provision of this code to the contrary and subject to the provisions of this
section, the Governor
is hereby authorized may, by executive
order, after first notifying the presiding officers of both houses of the
Legislature in writing, to borrow funds from the Revenue Center
Construction Shortfall Reserve Fund created by chapter nineteen,
acts of the Legislature, first extraordinary session, two thousand six, in
section twenty, article two, chapter eleven-b of this code, for deposit into
the Unemployment Compensation Fund, created in section one of this article, to
be expended in accordance with this code. The amount of funds borrowed and
outstanding under this section may not exceed $20 $50 million at
any one time, or the amount the Governor determines is necessary to adequately
sustain the balance in the Unemployment Compensation Fund at a minimum of $20
$50 million, whichever is less.
(b) Notwithstanding the
provisions of subsection (a) of this section, the Governor may not borrow funds
from the Revenue
Center Construction Shortfall Reserve Fund
unless the Executive Director of Workforce West Virginia has projected that the
balance in the state’s Unemployment Compensation Fund will be less than $20
$50 million at any time during the next thirty days.
(c) Any funds borrowed pursuant to this section shall be used to pay benefits only.
(c) (d) Any funds borrowed pursuant to this
subsection shall be repaid from funds on deposit in the Unemployment Trust Fund
in excess of $20 $50 million or from other funds legally
available for such purpose, without interest, and redeposited to the credit of
the Revenue Center Construction Shortfall Reserve Fund within
one-hundred-eighty days of their withdrawal. (d) (e) No amounts may be borrowed pursuant to the
provisions of this section after September 1, 2011 2017.
NOTE: The purpose of this bill is to authorize borrowing from the Revenue Shortfall Reserve Fund for the Unemployment Compensation Fund for up to 180 days in an amount not to exceed $50 million when the balance of the Unemployment Compensation Fund is to be less than $50 million at any time over a 30-day period.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.