Committee OKs funding stream to modernize state's unemployment IT system, codifies fraud prevention

Jim Hudson of the Department of Commerce told the committee the bill takes two main steps: make fraud-prevention measures mandatory and earmark a portion of the employer-paid stabilization tax to fund a multi-year modernization of the Department of Workforce Services' unemployment IT system. "The current DWS unemployment IT system is about as old as I am... So it's over 50 years old," Hudson said, describing the system as cumbersome and difficult to modify for events like the pandemic.

Hudson emphasized the approach would not require tapping general revenue or restricted reserves; rather it dedicates an existing funding stream for about three years to the IT modernization. Senator Hammer asked about procurement and whether the current consultant would be allowed to bid; Hudson said the funding authorization does not change procurement rules and that the project would be run through a standard competitive RFP process.

The committee voted to pass the bill by voice vote.