KY SB129

Extends the current 0.075% unemployment insurance rate reduction for the service capacity upgrade fund through December 31, 2026, then establishes a new lower rate reduction of 0.0115% beginning January 1, 2027

Grants the secretary authority to annually adjust the rate reduction percentage, effective each January 1, with a maximum cap of 0.025%

Removes the previous $60 million cap that required automatic suspension of collections to the service capacity upgrade fund when that threshold was reached

Maintains the requirement that contributory employers pay into the service capacity upgrade fund an amount equal to the rate reduction percentage multiplied by their taxable wages

Preserves the secretary's discretionary authority to reduce the rate percentage or suspend payments to the service capacity upgrade fund at any time