SB 1053 — Authorizing Unemployment Automation and Administration Fund to modernize and enhance WorkForce West Virginia

SB1053WEST HFINVIRGINIA AMTLEGISLATURE McOREGULAR TheSESSION Enrolled Committee onSubstitute Financefor movesCommittee toSubstitute amendfor theSenate titleBill of1053 theBYS billENATORHELTON toARDOBERTS read[Passed asMarch follows:Com.14, 2026;

Sub.to take effect July 1, 2026] Enr CS for CS for SB 1053 AN ACT to amend and reenact §21A-5-5 of the Code of West Virginia, 1931, as amended;

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1053 -- “A BILL to amend and reenact §21A-5-5 of the Code of West Virginia, 1931, as amended;

authorizing Commissioner of WorkForce West Virginia to disburse funds  fromfrom Unemployment Automation and Administration Fund  toto modernize unemployment compensation system, upgrade job search system, cover essential administrative costs, and engage in additional initiatives designed to bolster workforce development initiatives;

and establishing an effective date.”. ADOPTED REJECTED date.

Be it enacted by the Legislature of West Virginia:

ARTICLE 5.

EMPLOYER COVERAGE AND RESPONSIBILITY.

§21A-5-5.

Rate of contribution.

(a) On or after January 1, 1941, an employer shall make payments to the unemployment compensation fund equal to two and seven-tenths percent of wages paid by him or her with respect to employment during each calendar year beginning with the calendar year 1941, subject, however, to other provisions of this article;

except that on and after January 1, 1972, each employer subject to this chapter shall pay contributions at the rate of one and five-tenths percent of wages paid by him or her with respect to employment during each calendar year until he or she has been an employer for not less than 36 consecutive months ending on the computation date;

Enr CS for CS for SB 1053 thereafter, his or her contribution rate shall be determined in accordance with the provisions of section ten of this article.

(b) On and after July 1, 1981, each employer subject to this chapter shall pay contributions at the rate of two and seven-tenths percent of wages paid by him or her with respect to employment during each calendar year until he or she has been an employer for not less than 36 consecutive months ending on the computation date;

thereafter, his or her contribution rate shall be determined in accordance with the provisions of §21A-5-10 of this code.

(c) Notwithstanding any other provision of this chapter to the contrary, on or after July 1, 1981, any foreign corporation or business entity engaged in the construction trades shall pay contributions at the rate of seven and five-tenths percent of wages paid by him or her with respect to employment during each calendar year until he or she has been an employer for not less than thirty-six consecutive months ending on the computation date;

thereafter, his or her contribution rate shall be determined in accordance with the provisions of §21A-5-10 of this code.

(d) Effective July 1, 2026, the otherwise applicable unemployment contribution rate for each employer liable for contributions under this chapter shall be reduced by seven percent, except that such contribution rate shall not be less than zero.

ARTICLE 9.

UNEMPLOYMENT COMPENSATION ADMINISTRATION FUND.

§21A-9-10.

Unemployment Automation and Administration Fund.

(a) Definitions.

— Forpurposesofthissection:

"Employer contribution" means the employer contribution to the Unemployment Compensation Fund required by §21A-5-5 of this code.

"Fiscal year" means the 12-month period beginning on July 1 and ending on June 30 of each year.

"Unemployment Compensation Fund" means the Unemployment Compensation Fund established by §21A-8-1 of this code.

Enr CS for CS for SB 1053 (b) Creation of fund.

— There is hereby created a special trust fund which shall be designated and known as the Unemployment Automation and Administration Fund, to be administered by the Commissioner of WorkForce West Virginia.

The Unemployment Automation and Administration Fund shall be treated by the Auditor and Treasurer as a special revenue fund, and not as part of the general revenues of the state.

Any funds remaining in the Unemployment Automation and Administration Fund at the end of the fiscal year shall not revert to the General Revenue Fund.

(c) Source of funding.

— The fund shall consist of the following:

(1) Effective July 1, 2026, each employer liable for contributions under this chapter, except employers with a contribution rate equal to zero, shall pay an annual unemployment automation and administration fee equal to seven percent of the employer’s total taxable wages for the twelve- month period ending the preceding June 30.

The Commissioner of Workforce West Virginia may reduce this percentage to ensure that the total amount of fee collected from all employers does not exceed $18 million annually.

Each employer liable for the fee shall be notified of the amount due by March 31 of each year, and such amount shall be considered delinquent 30 days thereafter.