Gov. Corbett signs new unemployment compensation measure into law

Governor Tom Corbett signed Senate Bill 1310, a measure meant to modernizes Pennsylvania's unemployment compensation, into law Tuesday.

The new law allows Pa. to repay nearly $4 billion Unemployment Compensation Trust Fund debt to the federal government. Pennsylvania was one of 36 states that borrowed from the federal government to keep Unemployment Compensation benefits flowing during the recession.

The measure updates sections of the state's law relating to benefits and eligibility.

“Unemployment compensation reform equals jobs -- it’s that simple,” Corbett said. “I’m pleased that we’ve made this important step toward putting Pennsylvania’s financial house in order. This bill protects our workers while taking away a burden that has slowed job growth and investment."

Corbett says the new law will refinance the state's current UC debt by issuing bonds a low, fixed rate as well as restructuring benefit eligibility and establishing a Re-employment Fund, meant to help jobless Pennsylvanians get back to work.