An Act To Improve Timeliness of Unemployment Trust Fund Deposits
Maine Legislature, Session 121, LD 1476
Committee: Labor
Sponsors: SMITH, BLAIS
Amends: 26 MRSA §1161

Legislative Document 
No. 1476 
H.P.1081 
House of Representatives, March 31, 2003 
An Act To Improve Timeliness of Unemployment Trust Fund 
Deposits 
Submitted by the Department of Labor pursuant to Joint Rule 204. 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative SMITH of Van Buren. 
Cosponsored by Senator: BLAIS of Kennebec. 
_ 
Printed on recycled paper 
/rj~1J?~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 26 MRSA §1161, as amended by PL 1977, c. 675, §15, is 
further amended to read: 
§1161. 
Accounts and deposit 
The Treasurer of State saall-se II the ex officio treasurer 
and custodian of the Unemployment Compensation Fund and shall 
administer saea ~ 
fund in accordance with the directions of the 
commissioner. The Treasurer of State shall maintain within the 
fund 6 1 separate accounts: 
1. 
Clearing account. 
A clearing account for all money 
payable to the trust fund account that is not deposited into the 
combined 
unemployment 
insurance 
contributions 
and 
income 
tax 
withholding account; 
2. 
Trust fund account. An unemployment trust fund account; 
aHa 
3. 
Benefit account. A benefit accountT: and 
4. 
Combined unemploJRent insurance contributions and income 
tax witbbolding account. 
A clearing account for that portion of 
unemployment insurance contributions payable to the trust fund 
account 
from 
the 
combined 
money 
of 
unemployment 
insurance 
contributions and state income tax withholding payments. 
All Rl9Heys ~ 
payable to the fund, upon receipt t:heFee€ 
by the commissioner, shall ~ 
be forwarded to the Treasurer of 
StateL 
who shall immediately deposit t:heRl it in the clearing 
account or the combined unemployment insurance contributions and 
income 
tax withholding 
account. 
Refunds 
payable 
pursuant 
to 
section 1043, subsection 11, paragraph F, 
subparagraph (2) or 
section 1225 may be paid from the clearing accountL-the combined 
unemployment insurance contributions and income tax withholding 
account or the benefit account upon warrants prepared by the 
commissioner and signed by the State Controller. After clearance 
t:heFe9f, all other Rl9Heys money in the clearing account shall or 
the combined unemployment insurance contributions and income tax 
withholding 
account 
must 
be 
immediately 
deposited 
with 
the 
Secretary of the Treasury of the United States of America to the 
credit of the account of this State in the Unemployment Trust 
Fund, established and maintained pursuant to seet:ieH Section 904 
of the Social Security Act, as amended, any provisions of law in 
this State relating to the deposit, administration, release or 
disbursement of RleHeys money in the possession or custody of this 
State to the contrary notwithstanding. The benefit account shall 
Page l-LRI855(1) 
must consist of all meReys ~ 
requisitioned from this s~a~e~s 
State's account in the Unemployment Trust Fund. 
Except as otherwise provided, meReys ~ 
in the clearingL 
combined 
unemployment 
insurance 
contributions 
and 
income 
tax 
withholding 
and 
benefit 
accounts 
may 
be 
deposited 
by 
the 
Treasurer of State, under the direction of the commissioner, in 
any bank or public depository in which general funds of the State 
may be deposited, 
but no public deposit insurance charge or 
premium sha±± may be paid out of the fund. 
The Governor, has-seeR-aRS is heFesy authorized to apply for 
advances to the account of, this State in the Unemployment Trust 
Fund in accordance with the provisions of Title XII of the Social 
Security Act, 42 YTSTbTAr-§ United States Code, Section 1321, as 
amended, 
or 
under 
any other 
Act of Congress 
extending such 
authority, in order to secure to this State and its citizens the 
advantages available under the provisions of Title XII of the 
Social Security Act. 
SUMMARY 
This bill would help to ensure the more timely deposit of 
unemployment insurance contributions into the Unemployment Trust 
Fund, as required by the Federal Deposit Standard. 
Currently the 
interagency cooperation that requires the combined payment for 
unemployment insurance contributions and income tax withholding 
is deposited into a combined unemployment insurance contributions 
and 
income 
tax 
withholding 
account, 
and 
the 
unemployment 
insurance contributions portion is subsequently deposited into 
the clearing account as is now required under the Maine Revised 
Statutes, 
Title 
26, 
section 
1161. 
The 
reconciliation 
and 
clearance process in 2 accounts is not efficient cash management 
and is an unnecessary duplication. 
It delays the timely deposit 
of contributions into the Unemployment Trust Fund, resulting in a 
loss of interest, and creates conditions that impede meeting the 
Federal Deposit Standard.