This bill amends the Code of West Virginia to establish a mechanism for the Governor to borrow funds from the Revenue Shortfall Reserve Fund to support the Unemployment Compensation Fund when its balance falls below $50 million. The Governor can execute this borrowing by providing written notification to the presiding officers of both houses of the Legislature. The maximum amount that can be borrowed is capped at $50 million or the amount deemed necessary by the Governor to maintain the Unemployment Compensation Fund at a minimum balance of $50 million. Additionally, borrowing is contingent upon a projection from the Executive Director of Workforce West Virginia indicating that the fund's balance will drop below $50 million within the next 30 days.

The bill also stipulates that any borrowed funds must be used solely for paying benefits and must be repaid without interest within 180 days from the Unemployment Trust Fund or other legally available funds once the balance exceeds $50 million. Furthermore, the deadline for borrowing funds under this provision has been extended from September 1, 2018, to September 1, 2027. This legislative change aims to ensure the solvency of the Unemployment Compensation Fund during periods of significant federal layoffs that may deplete its resources.

Statutes affected:
Introduced Version: 21A-8-16