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Bill

SB 1053

Authorizing Unemployment Automation and Administration Fund to modernize and enhance WorkForce West Virginia

2026 Regular Session Introduced by Brian Helton and 1 co-sponsor

Creates a dedicated fund, funded by an 7% annual unemployment automation fee (capped at 18M/year, stopping at 60M total), to modernize unemployment systems and workforce services.

Chapter 160, Acts, Regular Session, 2026
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WeVote Research Nonpartisan
Bill Summary · SB 1053

Overview

SB 1053 (West Virginia, 2026) authorizes creation of the Unemployment Automation and Administration Fund (a dedicated special revenue fund) within WorkForce West Virginia to modernize and administer unemployment processes and related workforce initiatives. The bill establishes funding mechanisms funded by a new employer "unemployment automation and administration fee" and sets parameters for when and how those funds can be used, with the intent of improving technology, administration, and workforce development activities.

Main purpose and intent

  • Create the Unemployment Automation and Administration Fund to finance modernization and administration of unemployment systems and related workforce initiatives.
  • Provide a dedicated funding stream separate from the general revenue to support technology upgrades, fraud reduction, data analytics, and enhanced workforce services.
  • Ensure compliance with federal requirements and safeguard against reductions that would conflict with federal rules.
  • Establish a framework for ongoing rulemaking and oversight by the Commissioner of WorkForce West Virginia.

Key provisions and changes

  • Fund creation and administration
    • Establishes the Unemployment Automation and Administration Fund as a special revenue fund administered by the Commissioner of WorkForce West Virginia.
    • Funds are not part of the general state revenues and do not revert to the General Revenue Fund at year-end.
  • Funding source and amount
    • Beginning July 1, 2026, each employer liable for unemployment contributions (excluding those with zero contribution rate) shall pay an annual unemployment automation and administration fee equal to 7% of the employer’s total taxable wages for the prior 12 months (ending June 30), with a cap to ensure total annual collections do not exceed $18 million.
    • Employers are notified by March 31 each year; late payments may be collected as delinquent under specified tax collection authorities.
    • The fund may also earn income from investments.
    • The collection would stop once the aggregate collections reach $60 million or by July 1, 2031, whichever occurs first, at which point the Commissioner would reimpose the standard unemployment contribution rates as required by law.
  • Limitations and reallocation
    • If the fund receives $18 million or more in a fiscal year, no additional deposits to the fund are made for that year, and funds due to the fund from unemployment contributions may be diverted to the Unemployment Compensation Fund.
    • If the Unemployment Compensation Fund balance falls below $300 million, funds intended for the Automation Fund are redirected to restore the Unemployment Compensation Fund until a minimum balance is met for two consecutive quarters or the end of the fiscal year, as applicable.
  • Disbursements
    • The Commissioner may disburse funds to: modernization of the unemployment system (technology/infrastructure, fraud prevention, real-time analytics), upgrading the job search system (mobile optimization, tailored job recommendations, training program integration, virtual job fairs, partnerships), covering administrative costs (staff training, maintenance, audits), and supporting broader workforce development initiatives (expanded training, barrier removal, outreach, employer partnerships).
  • Rules and compliance
    • The Commissioner is authorized to promulgate legislative, emergency legislative, and procedural rules to implement the fund.
    • Provisions ensure compliance with federal requirements; no reduction of maximum tax rates or transfers that would violate federal rules.
  • Effective date
    • The substantive provisions are effective July 1, 2026.

Who/what is affected

  • Employers subject to unemployment contributions (excluding those with a zero contribution rate).
  • WorkForce West Virginia (as the administrator) and the Unemployment Compensation Fund (interplay between funds).
  • The Unemployment Automation and Administration Fund, its governing authority, and related administrative processes.
  • Individuals seeking unemployment benefits and job-seekers may indirectly benefit through improved processing, fraud protection, and enhanced job-matching services.

Procedural and timeline notes

  • Effective date for funding mechanisms: July 1, 2026.
  • Annual fee collection timeline: notice by March 31 each year; delinquency procedures as specified.
  • Cap on total collections: $60 million threshold triggers reversion to standard unemployment tax structure.
  • Possible reallocation safeguards: funds redirected if the Unemployment Compensation Fund balance is below $300 million for two consecutive quarters.
  • Requires rulemaking by the Commissioner to operationalize the fund and its eligible expenditures.

Potential impact

  • Provides a dedicated funding stream to modernize unemployment systems and expand workforce services, potentially improving claim processing speed, accuracy, fraud mitigation, and job-matching capabilities.
  • Creates a balance between modernization needs and federal compliance, with safeguards to avoid undermining the primary unemployment insurance programs.
  • Fiscal impact hinges on employer participation and the $18 million annual cap, after which the program ceases incremental collections and reverts to standard funding mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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