KRS 341.240: Unemployment compensation administration fund.

(1) There is hereby created in the State Treasury a special fund to be known as the

unemployment compensation administration fund. All money deposited or paid into

this fund is hereby appropriated and shall be continuously available to the secretary

for expend iture consistent with this chapter, and shall not lapse at any time. A

general statement that all continuing appropriations are repealed shall not be

construed as repealing this section.

(2) All money in the unemployment compensation administration fund sh all be

expended solely to defray the cost of the administration of this chapter.

(3) (a) The unemployment compensation administration fund shall consist of all

money appropriated by this state and all money received from the United

States, or any agency th ereof or from any other source, for the administration

of this chapter.

(b) The secretary is authorized to obtain funding through any commercially

reasonable means for the benefit of the unemployment compensation

administration fund, including reasonable e xpenses, so long as the debt, note,

security, or obligations are payable solely from the surcharge proceeds,

revenues, or funds and accounts specifically authorized for such purpose

under this chapter. The State Treasurer shall maintain a separate record o f all

money received for the unemployment compensation administration fund

under this paragraph. The secretary is authorized to pledge the surcharge

proceeds under this chapter as security for financing obtained pursuant to this

section.

(c) Any obligation incurred under this subsection shall not constitute a debt,

liability, obligation, or pledge of the credit or taxing power of this

Commonwealth. Any debt or obligation incurred as a result of this subsection

shall be payable solely from the surcharge proc eeds, revenues, or funds and

accounts pledged or available for such purpose under this chapter.

(d) On or before July 1, 2012, and quarterly thereafter, the secretary shall report to

the Legislative Research Commission, for referral to the Appropriations a nd

Revenue Committee and the Economic Development and Workforce

Investment Committee, on the financing authorized in this section for the

payment of interest on advances under Title XII of the Social Security Act, the

status of the trust fund, and efforts to obtain a cap on the federal

unemployment tax credit reduction.

(4) In order to establish and maintain free employment offices, the secretary may enter

into agreements with the Railroad Retirement Board or any other agency charged

with the administration of an unemployment insurance law, with any cities or other

political subdivisions of this state or with any private nonprofit organization. As a

party to any such agreement, the secretary may accept money, service or quarters as

a contribution to the unemployment compensation administration fund.