§ 22-4-25-1 — Creation; use of funds

Indiana § 22-4-25-1

• Jurisdiction: Indiana
• Art. 4: UNEMPLOYMENT COMPENSATION SYSTEM
• Ch. 25: Special Employment and Training Services Fund

Text

(a) There is created in the state treasury a
special fund to be known as the special employment and training
services fund. All interest on delinquent contributions and penalties
collected under this article, together with any voluntary contributions
tendered as a contribution to this fund, shall be paid into this fund. The
money shall not be expended or available for expenditure in any
manner which would permit their substitution for (or a corresponding
reduction in) federal funds which would in the absence of the money
be available to finance expenditures for the administration of this
article, but nothing in this section shall prevent the money from being
used as a revolving fund to cover expenditures necessary and proper
under the law for which federal funds have been duly requested but not
yet received, subject to the charging of expenditures against the funds
when received. The money in this fund shall be used by the department
for the payment of refunds of interest on delinquent contributions and
penalties so collected, for the payment of costs of administration which
are found not to have been properly and validly chargeable against
federal grants or other funds received for or in the employment and
training services administration fund, on and after July 1, 1945. The
money shall be available either to satisfy the obligations incurred by
the department directly, or by transfer by the department of the
required amount from the special employment and training services
fund to the employment and training services administration fund. The
department shall order the transfer of the funds or the payment of any
obligation or expenditure and the funds shall be paid by the treasurer
of state on requisition drawn by the department and certified by the
commissioner. The money in this fund is specifically made available
to replace within a reasonable time any money received by this state
pursuant to 42 U.S.C. 502, as amended, which, because of any action
or contingency, has been lost or has been expended for purposes other
than or in amounts in excess of those approved by the United States
Department of Labor. The money in this fund shall be continuously
available to the department for expenditures in accordance with the
provisions of this section and for the prevention, detection, and
recovery of delinquent contributions, penalties, and improper benefit
payments, and shall not lapse at any time or be transferred to any other
fund, except as provided in this article. Except as provided in
subsection (e), after making the grants required under subsection (c),
the department may expend an amount not to exceed eleven million
five hundred thousand dollars ($11,500,000) in a state fiscal year for
the purpose of prevention, detection, and recovery of delinquent
contributions, penalties, and improper benefit payments, unless an
additional amount is approved by the budget committee. Nothing in
this section shall be construed to limit, alter, or amend the liability of
the state assumed and created by IC 22-4-28, or to change the
procedure prescribed in IC 22-4-28 for the satisfaction of the liability,
except to the extent that the liability may be satisfied by and out of the
funds of the special employment and training services fund created by
this section. Each state fiscal year, the commissioner shall make the
training grants required under subsection (c) before amounts are
expended from the fund in accordance with this section for any other
purpose.
(b) The following apply to the special employment and training
services fund:
(1) If on December 31 the balance in the special employment and
training services fund exceeds eleven million five hundred
thousand dollars ($11,500,000) and the unemployment insurance
benefit fund balance is greater than or equal to one billion dollars
($1,000,000,000), the department shall order, not later than thirty
(30) days after December 31, payment of the amount that exceeds
eleven million five hundred thousand dollars ($11,500,000) into
the unemployment insurance modernization fund established by
IC 22-4-25.5.
(2) If on December 31 the balance in the special employment and
training services fund exceeds eleven million five hundred
thousand dollars ($11,500,000) and the unemployment insurance
benefit fund balance is less than one billion dollars
($1,000,000,000), the department shall order, not later than thirty
(30) days after December 31, payment of the amount that exceeds
eleven million five hundred thousand dollars ($11,500,000) into
the unemployment insurance benefit fund.
(c) Subject to the availability of funds, on July 1 each year the
commissioner shall release the following amounts before expenditures
are made in accordance with this section for any other purpose:
(1) Four million dollars ($4,000,000) to the state educational
institution established under IC 21-25-2-1 for training provided
to participants in apprenticeship programs approved by the United
States Department of Labor, Bureau of Apprenticeship and
Training.
(2) Four million dollars ($4,000,000) to the state educational
institution instituted and incorporated under IC 21-22-2-1 for
training provided to participants in joint labor and management
apprenticeship programs approved by the United States
Department of Labor, Bureau of Apprenticeship and Training.
(3) Two hundred fifty thousand dollars ($250,000) for
journeyman upgrade training to each of the state educational
institutions described in subdivisions (1) and (2).
(4) Four hundred thousand dollars ($400,000) annually for
training and counseling assistance:
(A) provided by Hometown Plans under 41 CFR 60-4.5; and
(B) approved by the United States Department of Labor, Bureau
of Apprenticeship and Training;
to individuals who have been unemployed for at least four (4)
weeks or whose annual income is less than twenty thousand
dollars ($20,000).
(5) Three hundred thousand dollars ($300,000) annually for
training and counseling assistance provided by the state
institution established under IC 21-25-2-1 to individuals who
have been unemployed for at least four (4) weeks or whose annual
income is less than twenty thousand dollars ($20,000) for the
purpose of enabling those individuals to apply for admission to
apprenticeship programs offered by providers approved by the
United States Department of Labor, Bureau of Apprenticeship and
Training.
(d) Each state educational institution described in subsection (c) is
entitled to keep ten percent (10%) of the funds released under
subsection (c) for the payment of costs of administering the funds. On
each June 30 following the release of the funds, any funds released
under subsection (c) not used by the state educational institutions under
subsection (c) shall be returned to the special employment and training
services fund.
Formerly: Acts 1947, c.208, s.2601; Acts 1955, c.317, s.12;
Acts 1963, c.373, s.1; Acts 1967, c.310, s.22. As amended by
P.L.144-1986, SEC.122; P.L.18-1987, SEC.67; P.L.105-1994, SEC.3;
P.L.21-1995, SEC.105; P.L.163-1997, SEC.1; P.L.52-1998, SEC.1;
P.L.179-1999, SEC.4; P.L.290-2001, SEC.20; P.L.273-2003, SEC.7;
P.L.202-2005, SEC.5; P.L.47-2006, SEC.46; P.L.2-2007, SEC.293;
P.L.138-2008, SEC.4; P.L.175-2009, SEC.36; P.L.182-2009(ss),
SEC.368; P.L.121-2014, SEC.17; P.L.69-2015, SEC.23; P.L.171-2016,
SEC.37; P.L.177-2017, SEC.4; P.L.122-2019, SEC.36; P.L.165-2021,
SEC.183; P.L.200-2025, SEC.28.