NORTH CAROLINA GENERAL ASSEMBLY

1977 SESSION

CHAPTER 1124

SENATE BILL 910

AN ACT AUTHORIZING THE STATE TREASURER TO ESTABLISH A POOL ACCOUNT FOR LOCAL GOVERNMENTS TO FUND UNEMPLOYMENT COMPENSATION LIABILITY.

The General Assembly of North Carolina enacts:

Section 1.  Chapter 147 of the General Statutes is amended by adding a new G.S. 147-87 reading as follows:

"§ 147-87.  Pool account for local government unemployment compensation. — (a) The State Treasurer is authorized to establish a pool account, in accordance with rules and regulations of the Employment Security Commission, in cooperation with any one or more units of local government, for the purpose of reimbursing the Employment Security Commission for unemployment benefits paid by the commission and chargeable to each local unit of government participating in the pool account. In the pool account established pursuant to this section, the funds contributed by a unit of local government shall remain the funds of the particular unit, and interest or other investment income earned by the pool account shall be prorated and credited to the various contributing local units on the basis of the amounts thereof contributed, figured according to an average periodic balance or some other sound accounting principle.

(b)        The State Treasurer shall pay to the Employment Security Commission, within 25 days from receipt of a list thereof, all unemployment benefits charged by the commission to each unit of local government participating in the pool account from the funds in the pool account belonging to each such unit, to the extent that said funds are sufficient to do so.

(c)        Notwithstanding the participation by a unit of local government in the pool account authorized by this section, such unit shall remain liable to the Employment Security Commission for any benefits duly charged by the commission to the unit which are not paid by the State Treasurer from funds in the pool account belonging to the unit. Notwithstanding its participation in the pool account, each unit of local government shall continue to maintain an individual account with the Employment Security Commission.

(d)        The Advisory Budget Commission shall be authorized to transfer from the interest earned on the pool account, to the State Treasurer's Departmental Budget, such funds as may be necessary to defray the Treasurer's cost of administering the pool account."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 1st day of July, 1977.