{"data":{"id":"us-ky/krs-341.243","jurisdiction":"us-ky","citation":"KRS 341.243","heading":"Service capacity upgrade fund.","body":"(1) There is created within the State Treasury a special fund known as the service\ncapacity upgrade fund that shall be administered separate and apart from all public\nmoney or funds of the state.\n(2) The service capacity upgrade fund shall be used solely for a cquisition and\nupgrading of the technology base, program integrity functions, and service delivery\ncapacity in support of the programs administered by the Office of Unemployment\nInsurance. The secretary shall have full power, authority, and jurisdiction ov er the\nfund, including all money, property, and securities belonging thereto, and shall\nperform any act necessary or convenient in the administration of the fund consistent\nwith this section. Any expenditure of the fund to upgrade the technology base shall\nbe coordinated with and approved by the Commonwealth Office of Technology,\nand nothing in this section shall be construed as reducing or limiting the authority\nof the Commonwealth's chief information officer over all technology expenditures.\nThe secretary  shall provide an annual report to the Interim Joint Committee on\nEconomic Development and Workforce Investment detailing all receipts and\nexpenditures of the fund.\n(3) Any money collected under the provisions of this section shall be invested at\ninterest in banks or other interest -bearing obligations of the United States.\nInvestments shall at all times be made so that all the assets of the service capacity\nupgrade fund shall be convertible into cash when needed for the payment of\nexpenses incurred in upgrading the service capacity of the Office of Unemployment\nInsurance. All interest income received under this section shall be credited to the\nfund. The State Treasurer shall dispose of securities or other property belonging to\nthe fund only under the directi on of the secretary and the secretary of the Finance\nand Administration Cabinet.\n(4) From October 1, 2018, to December 31, 2026, all rates otherwise established under\nKRS 341.270 and 341.272 shall be adjusted by subtracting seventy-five thousandths\npercent (0.075%) from each rate, but only if the unemployment insurance trust fund\nbalance exceeds the balance of the trust fund as of December 31, 2017.\n(5) (a) Beginning January 1, 2027, all rates otherwise established under KRS\n341.270 and 341.272 shall be adjusted by subtracting one hundred fifteen ten -\nthousandths percent (0.0115%) from each rate.\n(b) The secretary shall annually set the adjustment percentage to be effective\nJanuary 1 of the subsequent year, not to exceed twenty -five thousandths\npercent (0.025%).\n(c) The secretary shall suspend the subtraction from each rate as prescribed in this\nsubsection at any time:\n1. The service capacity upgrade fund balance is fifteen million dollars\n($15,000,000) or more; or\n2. The unemployment insurance trust fund does not exceed the balance of\nthe trust fund as of December 31, 2022.\n(6) For any calendar year in which all rates have been reduced in accordance with\nsubsection (4) or (5) of this section, all contributory employers  shall pay into the\nservice capacity upgrade fund an amount equal to the percentage by which rates\nwere reduced multiplied by their taxable wages paid during that calendar year.\nPayments shall be made at the same time and in the same manner as prescribed f or\npayment of contributions under KRS 341.260 and all regulations prescribed by the\nsecretary in support of that section. The restrictions in KRS 341.470(1) apply\nequally to the provisions of this section. Failure to make these payments shall be\nsubject to  interest and all other collection actions provided for failure to make\ncontributions under KRS 341.300.\n(7) All payments required under subsection (6) of this section, along with any interest\ndue to late payment of these assessments, shall be deposited in  the service capacity\nupgrade fund.\n(8) Notwithstanding subsection (4) or (5) of this section, the secretary may exercise his\nor her discretion to reduce the percentage rate prescribed in subsection (4) or (5) of\nthis section or suspend required payments t o the service capacity upgrade fund at\nany time.","path":["KRS Chapter 341"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58140","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:28Z","sha256":"e901ed1cac5c947d1f8edb0e63d88a7a14bbe133367e2cc7e7b5bd7ed863811e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-341.240","next":"us-ky/krs-341.245"},"notice":"GroundRules: Original legal text. Not legal advice."}