House Journal: Page 1052: Wednesday, April 9, 2003
20 RESERVE FUND.
21 a. A special fund to be known as the unemployment
22 compensation reserve fund is created in the state
23 treasury. The reserve fund is separate and distinct
24 from the unemployment compensation fund. All moneys
25 collected as reserve contributions, as defined in
26 paragraph "b", shall be deposited in the reserve fund.
27 The moneys in the reserve fund may be used for the
28 payment of unemployment benefits and shall remain
29 available for expenditures in accordance with the
30 provisions of this subsection. The treasurer of state
31 shall be the custodian of the reserve fund and shall
32 disburse the moneys in the reserve fund in accordance
33 with this subsection and the directions of the
34 director of the department of workforce development.
35 b. If the balance in the reserve fund on July 1 of
36 the preceding calendar year for calendar year 2004 and
37 each year thereafter is less than one hundred million
38 dollars, a percentage of contributions, as determined
39 by the director, shall be deemed to be reserve
40 contributions for the following calendar year. If the
41 percentage of contributions, termed the reserve
42 contribution tax rate, is not zero percent as
43 determined pursuant to this subsection, the combined
44 tax rate of contributions to the unemployment
45 compensation fund and to the unemployment compensation
46 reserve fund shall be divided so that a maximum of
47 ninety percent of the combined tax rate equals the
48 unemployment contribution tax rate and ten percent of
49 the combined tax rate equals the reserve contribution
50 tax rate except for employers who are assigned a
Page 4
1 combined tax rate of five and four-tenths or greater.
2 For those employers, the reserve contribution tax rate
3 shall equal zero and their combined tax rate shall
4 equal their unemployment contribution rate. When the
5 reserve contribution tax rate is determined to be zero
6 percent, the unemployment contribution rate for all
7 employers shall equal one hundred percent of the
8 combined tax rate. The reserve contributions
9 collected in any calendar year shall not exceed twenty
10 million dollars. The provisions for collection of
11 contributions under section 96.14 are applicable to
12 the collection of reserve contributions. Reserve
13 contributions shall not be deducted in whole or in
14 part by any employer from the wages of individuals in
15 its employ. All moneys collected as reserve
16 contributions shall not become part of the
17 unemployment compensation fund but shall be deposited
18 in the reserve fund created in this subsection.
© 2003 Cornell College and
League of Women Voters of Iowa
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