Relates to expenditures from the unemployment trust fund.
TITLE OF BILL: An act to amend the labor law, in relation to expenditures from the unemployment trust fund
Purpose of the Bill: This bill would permit monies from the Unemployment Insurance Trust Fund ("Trust Fund") to be used for any program authorized by federal law or rule.
Summary of Provisions:
Section 1 of the bill amends Labor Law § 5.50 to provide that monies from the Trust Fund can be used for any program authorized by federal law or rule.
Section 2 of the bill provides that the bill would become effective immediately.
Existing Law: Labor Law § 550 (3) provides that Trust Fund monies "shall be used solely to pay benefits."
Prior Legislative History: This is a new bill.
Statement in Support: This bill would permit New York to participate in programs established by the federal government that permit the use of funds from the Trust Fund to assist unemployed workers in staying connected to the workplace. New York has been unable to apply for the on-the-job training program set forth in the Middle Class Tax Relief and Job Creation Act of 2012, because New York is required to have a law in place that would permit a more flexible use of Trust Fund monies than New York law currently provides. The passage of this bill will ensure that New York remains an innovator in the programs it offers its unemployed workers
Effective Date: This bill would take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 4954 2013-2014 Regular Sessions IN SENATE May 1, 2013 ___________Introduced by Sen. SAVINO -- (at request of the Department of Labor) -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to expenditures from the unemployment trust fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 3 of section 550 of the labor law, as amended by chapter 888 of the laws of 1956, is amended to read as follows: 3. Fund sole source of benefits. The fund shall be administered in trust and shall be used solely to pay benefits,
[except that]PROVIDED HOWEVER THAT FUNDS MAY BE USED TO PAY FOR ANY PROGRAM AUTHORIZED BY FEDERAL LAW OR RULE AND subject to the limitations therein contained moneys credited to this fund pursuant to section nine hundred three of the federal social security act may upon an appropriation duly made by the legislature be used for the administration of the unemployment insurance law and shall for such purpose and to the extent required be transferred to the administration fund established under this article. All payments shall be made upon vouchers drawn on the fund by the commissioner in accordance with procedures established by him. The fund shall be the sole and exclusive source for the payment of benefits which shall be due and payable only to the extent that contributions and other payments to the fund with increments thereon, actually collected and credited to the fund and not otherwise appropriated or allocated, are available therefor. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09007-01-3