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KentuckySB 1292026 Regular SessionSenate

AN ACT relating to unemployment insurance.

Sponsored By: Michael J. Nemes (Republican)

Signed by Governor

FundsTechnologyUnemployment Compensation

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Lower unemployment taxes but new fund payment

From Oct 1, 2018 to Dec 31, 2026, employer unemployment insurance tax rates drop by 0.075 percentage points, but only if the unemployment insurance trust fund is above its Dec 31, 2017 balance. Starting Jan 1, 2027, rates drop each year by an amount set by the secretary (initially 0.0115 percentage points, capped at 0.025). In any year rates drop, contributory employers must pay the same percentage times their taxable wages into the Service Capacity Upgrade Fund, due with regular unemployment contributions. Late payments owe interest and face the same collection actions. The secretary may lower the adjustment or suspend these fund payments at any time.

New fund to upgrade unemployment systems

The law creates the Service Capacity Upgrade Fund to improve unemployment insurance technology, program integrity, and customer service. The agency secretary runs the fund. Tech spending must be approved by the Commonwealth Office of Technology, and the Chief Information Officer keeps overall authority. The secretary must report each year to the Interim Joint Committee on Economic Development and Workforce Investment on all money in and out. Money in the fund earns interest in banks or U.S. obligations, and all interest stays in the fund. Assets must stay easy to convert to cash. The State Treasurer may sell fund assets only if directed by the secretary and the Finance and Administration secretary. The law removes the old $60,000,000 cap that paused rate cuts and sent extra collections back to other funds, so collections can keep supporting upgrades.

Sponsors & Cosponsors

Sponsor

  • Michael J. Nemes

    Republican • Senate

Cosponsors

  • Gex Williams

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 123 • No: 1

House vote • 4/15/2026

3rd reading, passed

Yes: 86 • No: 1

Senate vote • 2/24/2026

passed

Yes: 37 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 188)

    4/17/2026

  2. delivered to Governor

    4/15/2026

  3. enrolled, signed by Speaker of the House

    4/15/2026Senate

  4. enrolled, signed by President of the Senate

    4/15/2026Senate

  5. received in Senate

    4/15/2026Senate

  6. 3rd reading, passed 86-1

    4/15/2026House

  7. placed in the Orders of the Day

    4/15/2026House

  8. taken from Rules

    4/15/2026House

  9. floor amendment (1) withdrawn

    4/1/2026House

  10. floor amendments (2) and (3-title) filed

    3/31/2026House

  11. floor amendment (1) filed

    3/20/2026House

  12. 2nd reading, to Rules

    3/20/2026House

  13. reported favorably, 1st reading, to Calendar

    3/19/2026House

  14. to Economic Development & Workforce Investment (H)

    3/17/2026House

  15. to Committee on Committees (H)

    2/25/2026House

  16. received in House

    2/25/2026House

  17. passed 37-0 with Floor Amendment (2)

    2/24/2026Senate

  18. floor amendment (1) withdrawn

    2/24/2026Senate

  19. 3rd reading

    2/24/2026Senate

  20. passed over and retained in the Orders of the Day

    2/23/2026Senate

  21. floor amendment (2) filed

    2/23/2026Senate

  22. posted for passage in the Regular Orders of the Day for Monday, February 23 2026

    2/20/2026Senate

  23. 2nd reading, to Rules

    2/20/2026Senate

  24. floor amendment (1) filed

    2/19/2026Senate

  25. reported favorably, 1st reading, to Calendar

    2/19/2026Senate

Bill Text

  • Current

    2/24/2026

    PDF

  • Introduced

    2/24/2026

    PDF

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