Committee approves redirecting 7% of employer contributions into unemployment automation fund; reports bill to Finance and full Senate

The Senate Workforce Committee approved a committee substitute for Senate Bill 1053 that would create a special revenue account called the Unemployment Automation and Administration Fund to support modernization and administrative activities at Workforce West Virginia.

Counsel said the substitute would redirect 7% of existing employer contributions to the unemployment compensation fund into the new automation and administration fund; remaining employer contributions would continue to support unemployment compensation. The substitute includes automatic checks: if the new fund receives $18,000,000 or more in employer contributions in a fiscal year, the diversions would cease for the rest of that fiscal year, and if the unemployment compensation fund falls below $300,000,000, contributions to the new fund would stop until the threshold is satisfied for two quarters or the fiscal year ends. (Counsel)

Authorized uses described by counsel include modernizing the unemployment compensation system, upgrading the job-search system, covering certain administrative costs, and establishing expanded training programs to bolster workforce development. Counsel said the committee substitute sets an effective date of July 1 and will be referred to Finance under the bill's double reference for fiscal review.

The committee adopted the substitute by voice vote and reported it to the full Senate with a recommendation that it pass.