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Committee approves DWD modernization bill, creates modernization fund and adjusts fees
Summary
Senate Bill 371 passed the committee after discussion about the unemployment trust fund, creation of a modernization fund, higher processing fees for employer-record requests and capped bank subpoena fees, and allowances for department waivers in reemployment program rules; the bill passed out of committee 23‑0.
Senator Rogers presented Senate Bill 371 on behalf of the Department of Workforce Development (DWD), describing measures intended to update operations and reduce administrative burdens. “This legislation increases the fee for processing records related to an individual's last known employer,” she said, and “allows the creation of the unemployment insurance modernization fund.”
Key provisions discussed include an increase in a records-processing fee from $2 to $6, a cap of an additional $30 that banks may charge when compelled to produce subpoenaed records, and the creation of a modernization fund for unemployment insurance systems. Money in the modernization fund will not revert to the general fund and, starting in 2026, the department must submit an annual report to the budget committee describing each expenditure in the fund balance. DWD staff explained that an existing penalty-and-interest account currently reverts only modest sums; moving those limited reverts into a dedicated modernization fund would better support system upgrades while guardrails require reversion back to the trust if the fund ever dips below a specified threshold.
Representative Jordan Porter asked whether the unemployment trust fund was adequately funded given the risk of recession and the need to avoid federal borrowing as earlier in the pandemic. Sarah Potter, legislative affairs at DWD, replied that the trust fund has been growing, is not yet at the federal suggestion of roughly $2 billion, but DWD expects to approach that level if trends continue and emphasized guardrails that would revert funds to the trust if its balance falls below established levels.
The bill also clarifies suitable-work language tied to extended federal unemployment benefits; DWD staff said the wording aligns with U.S. Department of Labor guidance. Another provision permits the department to waive certain in-person reemployment-service requirements in qualifying circumstances.
Committee members also discussed fiscal and program details: Representative Campbell asked about historical federal borrowing during COVID; DWD offered to provide specific figures. Representative Prior raised questions about the salary-plus-benefits basis for fiscal numbers; DWD noted that fiscal estimates include benefits as well as salary.
After the discussion, Representative support carried the amended bill out of committee on a recorded vote of 23 to 0. The department will report annually to the budget committee on modernization-fund expenditures beginning in 2026 and follow the statutory guardrails described during the hearing.
