An Act To Allocate a Portion of the Reed Act Distribution of 2002 To Use for the Administration of the Unemployment Insurance and Employment Services Programs
Maine Legislature, Session 121, LD 1552
Committee: Labor
Sponsors: EDMONDS, TREADWELL, BLAIS, SMITH

Legislative Document 
No. 1552 
S.P.521 
In Senate, April 10, 2003 
An Act To Allocate a Portion of the Reed Act Distribution of 2002 
To Use for the Administration of the Unemployment Insurance and 
Employment Services Programs 
Submitted by the Department of Labor pursuant to Joint Rule 204. 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Senator EDMONDS of Cumberland. 
Cosponsored by Representative TREADWELL of Carmel and 
Senator: BLAIS of Kennebec, Representative: SMITH of Van Buren. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. Money credited to State of Maine account in Unemployment 
Trust Fund under Section 903(d) of Federal Social Security Act. 
Money 
credited to the account of the State of Maine in the Federal 
Unemployment Trust Fund by the United States Secretary of the 
Treasury on March 13, 
2002 pursuant to Section 903 (d) of the 
Federal Social Security Act may not be requisitioned from the 
State's account or used except for the payment of benefits and 
for the payment of expenses incurred for the administration of 
the State's unemployment compensation law and public employment 
offices. 
Money used for the payment of benefits is requisitioned 
as defined in the Maine Revised Statutes, Title 26, 
section 
1162. 
Money requisitioned and used for the payment of expenses 
incurred for 
the 
administration of 
the State's 
unemployment 
compensation 
law 
and 
public 
employment 
offices 
requires 
a 
specific appropriation by the Legislature as provided in section 
of this Act. 
That use is only permissible if the expenses are 
incurred and the money is requisitioned after the effective date 
of a law making an appropriation law that specifies the purposes 
for which the money is appropriated and the amounts appropriated 
for those purposes. 
Any amount that may be obligated under such 
an appropriation is limited to an amount that does not exceed the 
amount by which the aggregate of the amounts transferred to the 
account of the State of Maine pursuant to Section 903(d) of the 
Federal Social Security Act exceeds the aggregate of the amounts 
used by the State pursuant to this Act and charged against the 
amounts transferred to the account of the State of Maine. 
For purposes of this section, the amounts obligated under an 
appropriation for administrative purposes must be charged against 
transferred amounts at the exact time the obligation is entered 
into. 
The appropriation, obligation and expenditure or other 
disposition of money appropriated under this section must be 
accounted for in accordance with standards established by the 
United States Secretary of Labor. 
Money appropriated as provided 
in 
this 
Act 
for 
the 
payment 
of 
administration 
must 
be 
requisitioned as needed for the payment of obligations incurred 
under the appropriation and, upon requisition, must be deposited 
in 
the 
Employment 
Security 
Administration 
Fund 
from 
which 
payments are made. 
Money 
so depos i ted mus t, unti 1 
expended, 
remain a part of the unemployment fund and, if it will not be 
immediately expended, must be returned promptly to the account of 
the State of Maine in the Federal Unemployment Trust Fund. 
Sec. 2. Allocation maintaining State unemployment compensation 
and public employment system. 
There is allocated out of funds 
made available to the State under Section 903 (d) of the Federal 
Social 
Security 
Act, as amended, the sum of $9,760,000 in accordance with section 
1, to be used under the direction of the Department of Labor, for 
the purpose of maintaining and operating the State's unemployment 
compensation 
and public employment 
system. 
The 
uses 
include 
expanded unemployment, 
employment and labor market information 
program services for workers 
and employers; 
expanded service 
access options for program customers; toll-free customer access 
to unemployment services delivered via telephone; consolidation 
of 
multiple 
program 
information 
system 
platforms; 
federal 
technology upgrades; and the repair and accessibility under the 
Americans with Disabilities Act upgrade of the central employment 
security administration facility in Augusta. 
The amount obligated pursuant to this Act may not exceed at 
any 
time 
the 
amount 
by 
which the 
aggregate 
of the 
amounts 
transferred to the account of the State of Maine pursuant to 
section 903(d) of the federal Social Security Act exceeds the 
aggregate of the amounts obligated for administration and paid 
out for benefits and required by law to be charged against the 
amounts transferred to State of Maine account. 
SUMMARY 
Under federal law, Reed Act funds may be used to maintain 
the State's unemployment and public employment system, or to pay 
regular 
unemployment benefits. 
Maine 
received $32,486,816 in 
Reed 
Act 
funds 
in 
2002. 
This bill authorizes 
the 
use 
of 
$9,760,000 of these funds to maintain and operate the State's 
unemployment 
and 
employment 
offices 
and 
includes 
expanded 
unemployment, 
employment 
and labor market 
information program 
services 
for 
workers 
and 
employers 
in 
the 
State; 
expanded 
customer access options for program services; toll-free customer 
access 
to 
unemployment 
services 
delivered 
via 
telephone; 
consolidation of multiple program information system platforms; 
technology upgrades; and the repair and federal Americans with 
Disabilities Act accessibility upgrade of the primary employment 
security 
administration 
facility 
in 
Augusta. 
The 
sum 
of 
$22,786,816 of the Reed Act funds would remain in the federal 
Unemployment Trust Fund to pay unemployment benefits when needed.