(1) In the event of default in payment of premiums or surcharges due or reimbursements of benefit costs, the state treasurer, upon the request of the division, shall set aside state funds otherwise payable to the political subdivision as security to ensure payment of the funds due from the political subdivision to the unemployment trust fund.
Funds which may be used for this purpose include any funds in the possession of thestate treasurer which are allocated to the political subdivision for any purpose, with the exception of funds earmarked for a specific purpose.
The division may not request the state treasurer to set aside funds to cover obligations of the political subdivision until at least six months have elapsed since the due date for payment of the premium or surcharge or reimbursable obligation.
Source: L. 77: Entire section added, p. 469, § 23, effective July 7. L. 81: (1) and (3) amended, p. 502, § 15, effective July 1. L. 2009: (1) and (3) amended, (HB 09-1363), ch. 363, p. 1902, § 20, effective July 1.