FRANKFORT, Ky. — House lawmakers made quick work of a sweeping piece of legislation to reform the unemployment system in Kentucky.

A House committee approved House Bill 4 Thursday morning, and then the full House approved the bill Thursday evening after a few hours of debate.

The bill’s sponsor, Rep. Russell Webber (R-Shepherdsville), said the bill will drive more people back into the workforce.

“It’s been proven when individuals are proactive in their look for jobs, looking for jobs, and active in that search, that more opportunities open up,” he said.

HB 4 does several things to change how unemployment works:

• Ties benefits to the state’s unemployment rate, with benefits lasting anywhere from 12 to 24 weeks, depending on how low the rate is. The current benefits last up to 26 weeks.
• Unemployment benefits can get scaled back starting at six weeks.
• New work search requirements: unemployment recipients have to show evidence of five different attempts to find a job per week, instead of just once per week under current law
• Provides additional benefits to people who go through work training programs while searching for work
• Lowers unemployment taxes for businesses

The Kentucky Chamber of Commerce supports the bill.

“We know that people tend to work more intensely when their benefits are going to end,” Kentucky Chamber of Commerce Vice President Kate Shanks said. “And reducing the weeks when more jobs are available means getting people back to work more quickly.”

Opponents of the measure argued it’ll hurt people who are trying to find work, especially in rural areas, where the unemployment rate tends to be much higher than the statewide average.

Several groups testified against the bill in committee, including the Kentucky Council of Churches.

“What rationale can there be for enacting a law that will harm Kentuckians, already hanging on by a thread?” Kentucky Council of Churches Vice President Dale Raines said.

The bill passed 57-37 with several Republicans joining all Democrats in opposing the bill.

“Trying to address current low labor force participation rates, which actually collapsed in the last 18-plus months due to a global pandemic, by significantly reducing the number of unemployment checks those who lost their jobs can collect while looking for new work is just bad policy,” Rep. Al Gentry (D-Louisville) said.

Many Republicans who voted against the bill live in rural areas. Rep. John Blanton (R-Salyersville) attempted to add an amendment tying unemployment benefits to the unemployment rates in individual counties, but it was rejected.