GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 270

Short Title:  Worker Training Trust Fund.	(Public)
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Sponsors: Senator Parnell.
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Referred to:  Manufacturing and Labor.
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February 23, 1989

A BILL TO BE ENTITLED
AN ACT TO APPROPRIATE FUNDS FROM THE WORKER TRAINING TRUST FUND, TO AMEND THE PURPOSES FOR WHICH TRUST FUND MONEY MAY BE APPROPRIATED, AND TO APPROPRIATE FUNDS FROM THE SPECIAL EMPLOYMENT SECURITY ADMINISTRATION FUND.
The General Assembly of North Carolina enacts:
Section 1.  There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of four million five hundred thirty-seven thousand seven hundred eight dollars ($4,537,708) for the 1989-90 fiscal year for the operation of local offices at the 1986-87 level of service.
Sec. 2. Notwithstanding G.S. 96-5(c), there is appropriated from the Special Employment Security Administration Fund to the Employment Security Administration of North Carolina the sum of one million dollars ($1,000,000) for the 1989-90 fiscal year for the administration of the Veterans Employment Program, Employment Services Program, and Unemployment Insurance Program. 
Sec. 3. There is appropriated from the Worker Training Trust Fund to the Employment Security Commission of North Carolina the sum of one million two hundred thousand dollars ($1,200,000) for the 1989-90 fiscal year for a Worker Readjustment Program to supplement the funds received by the State under Title III of the U.S. Job Training Partnership Act to provide a statewide program of rapid response to plant closings.
Sec. 4.  The Employment Security Commission shall report to the Joint Legislative Commission on Governmental Operations by the first of each month, prior to an expenditure of any funds appropriated by this act. Supplemental federal funds or other additional funds received by the Employment Security Commission for similar purposes shall be expended prior to the expenditure of funds appropriated by this act. The report required by this section shall be included in any other report that the Employment Security Commission is required to make to the Joint Legislative Commission on Governmental Operations.
Sec. 5. There is appropriated from the Worker Training Trust Fund to the Department of Community Colleges of North Carolina the sum of one million dollars ($1,000,000) for the 1989-90 fiscal year for the Focused Industrial Training Program administered by the Department of Community Colleges. These funds  made available in this section shall be allocated according to 1987 Session Laws, Chapter 1100, Section 36(d). The Department of Community Colleges shall submit a written evaluation of the Focused Industrial Training Program to the Joint Legislative Commission on Governmental Operations by May 1, 1990. The evaluation shall include an analysis of the effectiveness of each training center in meeting the needs of the area industries and recommended actions to improve delivery of services and training opportunities for the client population.
Sec. 6. G.S. 96-5(f) reads as rewritten:
"(f)	Employment Security Commission Reserve Fund.–There is created in the State treasury a special trust fund, separate and apart from all other public moneys or funds of this State, to be known as the Employment Security Commission Reserve Fund, hereinafter ‘Reserve Fund'.  Except as provided herein and in G.S. 96-9(b)(3)j, all proceeds from the tax as defined in G.S. 96-9(b)(3)j and collected pursuant to G.S. 96-10 shall be paid into the Reserve Fund.  The moneys in the Reserve Fund may be used by the Commission for loans to the Unemployment Insurance Fund, as security for loans from the federal Unemployment Insurance Trust Fund, and to pay any interest required on advances under Title XII of the Social Security Act as required by G.S. 96-6(f), and shall be continuously available to the Commission for expenditure in accordance with the provisions of this section.  The State Treasurer shall be ex officio the treasurer and custodian and shall invest said moneys in accordance with existing law as well as rules and regulations promulgated pursuant thereto.  Furthermore, the State Treasurer shall disburse the moneys in accordance with the directions of the Commission and in accordance with such regulations as the Commission may prescribe.
Administrative costs for the collection of the tax and interest payable to the Reserve Fund shall be borne by the Special Employment Administration Fund.  Refunds of interest and tax allowable under G.S. 96-9(b)(3)j shall be made from the Reserve Fund.  No taxes shall be collected or paid into this fund during a calendar year when, as of the computation date (August 1) of the preceding calendar year, the balance of the fund equals to or exceeds one percent (1%) of the taxable wages.
The interest earned from investment of the Reserve Fund moneys shall be deposited in a fund hereby established in the State Treasurer's Office, to be known as the ‘Worker Training Trust Fund'.  These moneys shall be used to:
(1)	Fund programs, specifically for the benefit of unemployed workers or workers who have received notice of long-term layoff or permanent unemployment, or employed workers who may need retraining to avoid future unemployment, which will enhance the employability of workers, including, but not limited to, adult basic education, adult high school or equivalency programs, occupational skills training programs, assessment, job counseling and placement programs;
(2)	Continue operation of local Employment Security Commission offices throughout the State; or
(3)	Provide refunds to employers.
The use of funds from the Worker Training Trust Fund, for the purposes set out in the above paragraph, shall be pursuant to appropriations in the Current Operations Appropriations Act.  Funds deposited in the Worker Training Trust Fund prior to July 1, 1987, shall be used as provided in the Current Operations Appropriations Act for 1987-89."
Sec. 7. This act shall become effective July 1, 1989.