35A-4-502 - Administration of Employment Security Act.
35A-4-502. Administration of Employment Security Act.
(1) (a) The department shall administer this chapter through the division.
(b) The department may make, amend, or rescind any rules and special orders necessaryfor the administration of this chapter.
(c) The division may:
(i) employ persons;
(ii) make expenditures;
(iii) require reports;
(iv) make investigations;
(v) make audits of any or all funds provided for under this chapter when necessary; and
(vi) take any other action it considers necessary or suitable to that end.
(d) No later than the first day of October of each year, the department shall submit to thegovernor a report covering the administration and operation of this chapter during the precedingcalendar year and shall make any recommendations for amendments to this chapter as thedepartment considers proper.
(e) (i) The report required under Subsection (1)(d) shall include a balance sheet of themoney in the fund in which there shall be provided, if possible, a reserve against liability infuture years to pay benefits in excess of the then current contributions, which reserve shall be setup by the division in accordance with accepted actuarial principles on the basis of statistics ofemployment, business activity, and other relevant factors for the longest possible period.
(ii) Whenever the department believes that a change in contribution or benefit rates willbecome necessary to protect the solvency of the fund, it shall promptly inform the governor andthe Legislature and make appropriate recommendations.
(2) (a) The department may make, amend, or rescind rules in accordance with Title 63G,Chapter 3, Utah Administrative Rulemaking Act.
(b) The director of the division or the director's designee may adopt, amend, or rescindspecial orders after appropriate notice and opportunity to be heard. Special orders becomeeffective 10 days after notification or mailing to the last-known address of the individuals orconcerns affected thereby.
(3) The director of the division or the director's designee shall cause to be printed fordistribution to the public:
(a) the text of this chapter;
(b) the department's rules pertaining to this chapter;
(c) the department's annual reports to the governor required by Subsection (1)(e); and
(d) any other material the director of the division or the director's designee considersrelevant and suitable and shall furnish them to any person upon application.
(4) (a) The division may delegate to any person so appointed the power and authority itconsiders reasonable and proper for the effective administration of this chapter and may bond anyperson handling money or signing checks under this authority.
(b) The department may, when permissible under federal and state law, makearrangements to voluntarily elect coverage under the United States Civil Service RetirementSystem or a comparable private retirement plan with respect to past as well as future services ofindividuals employed under this chapter who:
(i) were hired prior to October 1, 1980; and
(ii) have been retained by the department without significant interruption in the
employees' services for the department.
(c) An employee of the department who no longer may participate in a federal or otherretirement system as a result of a change in status or appropriation under this chapter maypurchase credit with the employee's assets from the federal or other retirement system in whichthe employee may no longer participate in a retirement system created under:
(i) Title 49, Chapter 13, Public Employees' Noncontributory Retirement Act for apurchase made under this Subsection (4)(c) made prior to July 1, 2011; or
(ii) Title 49, Chapter 22, Public Employees' Tier II Contributory Retirement Act, if thedate of purchase under this Subsection (4)(c) is on or after July 1, 2011.
(5) There is created an Employment Advisory Council composed of the members listedin Subsections (5)(a) and (b).
(a) The executive director shall appoint:
(i) not less than five employer representatives chosen from individuals recommended byemployers, employer associations, or employer groups;
(ii) not less than five employee representatives chosen from individuals recommended byemployees, employee associations, or employee groups; and
(iii) five public representatives chosen at large.
(b) The executive director or the executive director's designee shall serve as a nonvotingmember of the council.
(c) The employee representatives shall include both union and nonunion employees whofairly represent the percentage in the labor force of the state.
(d) Employers and employees shall consider nominating members of groups whohistorically may have been excluded from the council, such as women, minorities, andindividuals with disabilities.
(e) (i) Except as required by Subsection (5)(e)(ii), as terms of current council membersexpire, the executive director shall appoint each new member or reappointed member to afour-year term.
(ii) Notwithstanding the requirements of Subsection (5)(e)(i), the executive directorshall, at the time of appointment or reappointment, adjust the length of terms to ensure that theterms of council members are staggered so that approximately half of the council is appointedevery two years.
(f) When a vacancy occurs in the membership for any reason, the replacement shall beappointed for the unexpired term.
(g) The executive director shall terminate the term of any council member who ceases tobe representative as designated by the council member's original appointment.
(h) The council shall advise the department and the Legislature in formulating policiesand discussing problems related to the administration of this chapter including:
(i) reducing and preventing unemployment;
(ii) encouraging the adoption of practical methods of vocational training, retraining, andvocational guidance;
(iii) monitoring the implementation of the Wagner-Peyser Act;
(iv) promoting the creation and development of job opportunities and the reemploymentof unemployed workers throughout the state in every possible way; and
(v) appraising the industrial potential of the state.
(i) The council shall assure impartiality and freedom from political influence in the
solution of the problems listed in Subsection (5)(h).
(j) The executive director or the executive director's designee shall serve as chair of thecouncil and call the necessary meetings.
(k) A member may not receive compensation or benefits for the member's service, butmay receive per diem and travel expenses in accordance with:
(i) Section 63A-3-106;
(ii) Section 63A-3-107; and
(iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and63A-3-107.
(l) The department shall provide staff support to the council.
(6) In the discharge of the duties imposed by this chapter, the division director or thedirector's designee as designated by department rule, may in connection with a disputed matter orthe administration of this chapter:
(a) administer oaths and affirmations;
(b) take depositions;
(c) certify to official acts; and
(d) issue subpoenas to compel the attendance of witnesses and the production of books,papers, correspondence, memoranda, and other records necessary as evidence.
(7) (a) In case of contumacy by or refusal to obey a subpoena issued to any person, anycourt of this state within the jurisdiction of which the inquiry is carried on or within thejurisdiction of which the person guilty of contumacy or refusal to obey is found or resides ortransacts business, upon application by the director of the division or the director's designee shallhave jurisdiction to issue to that person an order requiring the person to appear before thedirector or the director's designee to produce evidence, if so ordered, or give testimony regardingthe matter under investigation or in question. Any failure to obey that order of the court may bepunished by the court as contempt.
(b) Any person who, without just cause, fails or refuses to attend and testify or to answerany lawful inquiry or to produce books, papers, correspondence, memoranda, and other records,if it is in that person's power to do so, in obedience to a subpoena of the director or the director'sdesignee shall be punished as provided in Subsection 35A-1-301(1)(b). Each day the violationcontinues is a separate offense.
(c) In the event a witness asserts a privilege against self-incrimination, testimony andevidence from the witness may be compelled pursuant to Title 77, Chapter 22b, Grants ofImmunity.
(8) (a) In the administration of this chapter, the division shall cooperate with the UnitedStates Department of Labor to the fullest extent consistent with the provisions of this chapter andshall take action, through the adoption of appropriate rules by the department and administrativemethods and standards, as necessary to secure to this state and its citizens all advantagesavailable under the provisions of:
(i) the Social Security Act that relate to unemployment compensation;
(ii) the Federal Unemployment Tax Act; and
(iii) the Federal-State Extended Unemployment Compensation Act of 1970.
(b) In the administration of Section 35A-4-402, which is enacted to conform with therequirements of the Federal-State Extended Unemployment Compensation Act of 1970, 26U.S.C. 3304, the division shall take any action necessary to ensure that the section is interpreted
and applied to meet the requirements of the federal act, as interpreted by the United StatesDepartment of Labor and to secure to this state the full reimbursement of the federal share ofextended and regular benefits paid under this chapter that are reimbursable under the federal act.
Amended by Chapter 266, 2010 General Session
Amended by Chapter 286, 2010 General Session