KRS 341.295: Use of moneys in unemployment compensation administration fund.

(1) All fines, penalties, and interest on delinquent contributions collected under KRS

341.300 shall be credited to the unemployment compensation administration fund to

be used for the payment of interest on advances under Title XII of the Social

Security Act, for the repayment of money, including any interest thereon, received

from any source related to the payment of interest on such advances, and for the

administration of this chapter. The State Treasurer shall maintain a separate record

of all money receive d for the unemployment compensation administration fund

under this section. This money shall not be expended or available for expenditure in

any manner that would permit its substitution for, or a corresponding reduction in,

federal funds that would be ava ilable in its absence to finance expenditures for the

administration of this chapter.

(2) But nothing in this chapter shall prevent this money from being used as a revolving

fund to cover necessary and proper expenditures for which federal funds have been

requested but not received, subject to the charging of such expenditures against such

funds when received, or to supplement federal funds which are, in the opinion of the

secretary, insufficient to properly administer this chapter; provided, no more than

twenty-five percent (25%) of the balance of this account may be used in any year for

the purposes authorized under this subsection if interest on advances under Title XII

of the Social Security Act is due and owing or if the repayment of money, including

any interest thereon, received from any source related to the payment of interest on

such advances is due and owing.

(3) If interest on advances under Title XII of the Social Security Act and the repayment

of money, including any interest thereon, received f rom any source related to the

payment of interest on such advances are not due and owing, the secretary may also

authorize to be charged against such money any expenditures he deems proper and

desirable for the administration of this chapter and replace an y money necessary

under the provisions of KRS 341.610, if no other funds are available or can properly

be used to finance such expenditures. The money heretofore collected and credited

to the unemployment compensation contingent fund shall be transferred t o the

unemployment compensation administration fund and shall be available for

expenditure under the provisions of this section.