1999-02-10                     House Journal                      Page 0190
HB 87                                                                        
"An Act relating to money credited to the account of the state in             
the unemployment trust fund by the Secretary of the Treasury of                
the United States; and providing for an effective date."                       
                                                                               
was read the first time and referred to the Labor & Commerce and               
Finance Committees.                                                            
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Labor, 2/10/99                                      
                                                                               
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
This bill I transmit today provides the state with authority to receive        
federal funds for the administration of the unemployment insurance             
program as required in the Balanced Budget Act of 1997.                        
                                                                               
                                                                               
The 1997 Act provided for a disbursement from the federal                      
unemployment trust fund to the state unemployment trust fund, known            
as "Reed Act distributions."   States must enact legislation restricting       
the use of these distributions for administration of the unemployment          
insurance program, and not for unemployment benefits or employment             
services.                                                                      
                                                                               
                                                                               
This bill complies with the federal requirement by providing the state         
with express authority to receive the Reed Act distributions for federal       
fiscal years 1999-2001 for purposes of administering the                       
unemployment insurance program.                                                
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"