1732-S AMH CORR BLAC 094

SHB 1732 - H AMD 776

By Representative Corry

SCOPE AND OBJECT 01/19/2022

On page 1, after line 9, insert the following:

"NEW SECTION. Sec. (1) The legislature finds:

(a) Persons born before January 1, 1968, may be struggling to make ends meet and adding additional financial burden may cause extreme harm;

(b) These individuals born before January 1, 1968, may have to leave their jobs to avoid paying this tax, removing their ability to become qualified individuals and receive the benefit of this program; and

(c) An exemption based on hardship allows individuals born before January 1, 1968, and others to continue to vest during financial hardship, thereby protecting these individuals from having to quit their jobs and risk never becoming eligible beneficiaries.

(2) The legislature, therefore, intends to modify the conditions to become a qualified individual by extending the opportunity for those born before January 1, 1968, and others to become qualified individuals through the use of an exemption based on hardship."

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 7, line 30, after "(1)" strike "((The)) Except as provided in subsection (2) of this section" and insert "(a) ((The)) Except as provided in subsection (2) of this section and section 4 of this act"

On page 7, at the beginning of line 35, strike "(a)" and insert "(((a)))(i)"

On page 7, at the beginning of line 37, strike "(b)" and insert "(((b)))(ii)"

On page 7, after line 38, insert the following:

"(b) When determining the number of years worked under (a) of this subsection, the employment security department shall consider each year that a person held an approved exemption based on hardship under section 4 of this act as the equivalent of one year toward meeting the minimum number of years of premium payments in either (a)(i) or (a)(ii) of this subsection."

On page 8, after line 25, insert the following:

"NEW SECTION. Sec. 4. A new section is added to chapter 50B.04 RCW to read as follows:

(1) Beginning January 1, 2023, the employment security department shall accept and approve applications for exemptions from the premium assessment under RCW 50B.04.080 for those individuals who meet the criteria for an exemption based upon hardship, as provided in this section.

(2) An individual may demonstrate hardship by establishing that the income of the individual's household does not exceed 300 percent of the federal poverty guidelines, as adjusted for family size, as determined annually by the department of health and human services. The commission may recommend other circumstances that constitute hardship for the employment security department to consider. The employment security department may establish standards for any additional exemption based upon hardship upon recommendation by the commission.

(3) The employment security department shall determine standards and time periods for renewing an exemption based on hardship. The renewal period may not be less than two years.

(4) An individual with an exemption based upon hardship may, at any time, cancel the exemption and resume payment of the premium assessment under RCW 50B.04.080.

(5) Each year that an individual holds an exemption based on hardship qualifies as a year toward meeting the minimum requirement to become a qualified individual under RCW 50B.04.050.

(6) Approved exemptions will take effect on the first day of the quarter immediately following the approval of the exemption.

(7) Exempt employees are not entitled to a refund of any premium deductions made before the effective date of an approved exemption.

(8) An exempt employee must provide written notification to all employers with whom the employee is employed during the period of the exemption based on hardship.

(9) If an exempt employee fails to notify an employer of an exemption, the exempt employee is not entitled to a refund of any premium deductions made before notification is provided.

(10) Employers must not deduct premiums after being notified by an employee of an approved exemption issued under this section.

(a) Employers must retain written notifications of exemptions received from employees.

(b) An employer who deducts premiums after being notified by the employee of an exemption is solely responsible for refunding to the employee any premiums deducted after the notification.

(c) The employer is not entitled to a refund from the employment security department for any premiums remitted to the employment security department that were deducted from exempt employees.

(11) The employment security department must adopt rules necessary to implement and administer the activities specified in this section related to the program, including rules on the submission and processing of applications under this section."

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 9, line 21, after "(1)" strike "Beginning ((January 1, 2022))" and insert "((Beginning January 1, 2022)) Unless otherwise exempted pursuant to this chapter, beginning"

Correct the title.

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