1999-02-10                     Senate Journal                      Page 0206
SB 63                                                                        
SENATE BILL NO. 63 BY THE SENATE RULES COMMITTEE                               
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
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 State Affairs and Finance          
Committees.                                                                    
                                                                               
Zero fiscal note published today from Department of Labor.                     
                                                                               
Governors transmittal letter dated February 8:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
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.                        
                                                                               
                                                                               

1999-02-10                     Senate Journal                      Page 0207
SB 63                                                                        
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