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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted:	April 11, 2019 11:02 AM
From:	Representative Patrick J. Harkins and Rep. Jim Cox
To:	All House members
Subject:	Amending the UC law to provide a more flexible schedule for drawing down these funds when L&I is acting to protect taxpayers’ investment

We are preparing to introduce legislation to provide the Department of Labor and Industry (L&I) with more flexibility on how they draw down the funding for the modernization of Unemployment Compensation’s benefit delivery system (Benefit Modernization). Act 60 of 2017 provided funding for this project – under a specific timeline. When the project vendor did not meet certain timeframes, L&I withheld payment to enforce the contract and ensure that Benefit Modernization will be successful. This is how we expect agencies to protect taxpayer dollars, but the language provided in the current law could require L&I to forfeit some of the money allocated for this project -simply because they enforced the contract. If that occurs, L&I would need to divert funds from other aspects of the Unemployment Compensation program to cover the cost of Benefit Modernization. Our legislation will amend the UC law to provide a more flexible schedule for drawing down these funds when L&I is acting to protect taxpayers’ investment. This bill would not change the total amount of funding authorized for Benefit Modernization, and it is not intended to weaken the accountability provisions included in Act 60. We hope you will join us as cosponsors.

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