AN ACT Relating to unemployment; amending RCW 50.62.020, 50.20.043, 50.24.014, 50.16.010, 50.29.025, and 50.16.070; reenacting and amending RCW 50.62.010, 50.62.030, and 42.17.310; adding a new chapter to Title 43 RCW; adding a new chapter to Title 50 RCW; adding a new section to chapter 42.17 RCW; adding a new section to chapter 50.20 RCW; creating new sections; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that:

(1) Structural changes in the state's economy have resulted in the permanent loss of forty-four to fifty-five thousand jobs per year as a result of plant closures, business failures, and layoffs between 1979 to 1985.

(2) These permanent job losses and major changes in the state's industries and occupations has led to a large increase in the number of unemployment compensation claimants who exhaust their benefits without finding a job. In 1979 less than 27,000 claimants exhausted their benefits without finding work. By 1986 the number of unemployment compensation exhaustees rose to more than 51,000.

(3) High levels of permanent job losses and unemployed workers exhausting their unemployment benefits have resulted in large increases in social costs such as unemployment compensation, public assistance, health programs, and lost taxes normally paid by workers and businesses. Local communities also suffer from increased social costs resulting from rising demands for services by long-term unemployed workers and their families.

(4) A significant percentage of the increase in the public assistance caseloads results from unemployed workers who exhaust their unemployment benefits without finding employment.

(5) Rising long-term unemployment increases the number of families with social, medical, emotional, and financial problems which require outside assistance and intervention.

(6) Many communities in the state have inadequate and poorly coordinated resources and programs to assist the unemployed in coping with their problems that are associated with unemployment.

(7) The lack of coordinated and effective services for the unemployed seriously hampers their ability to conduct an effective work search and may have the effect of prolonging their unemployment and increasing the possibility of exhausting their unemployment benefits and entering the public assistance caseloads.

(8) Businesses also suffer from rising levels of long-term unemployment as many of their customers are forced into bankruptcy and mortgage foreclosures.

NEW SECTION. Sec. 2. It is the intent of the legislature to develop a comprehensive, state-wide policy to reduce the levels of permanent job losses and the number of unemployment compensation exhaustees. It is the purpose of this act to:

(1) Authorize and fund the creation of a state-wide business and job retention program which places primary reliance on locally based business and job retention teams to assist businesses which are likely to close, fail, or experience a permanent mass layoff. The state's primary role in the business and job retention program is to provide continuing financial and technical assistance and training to the locally based business and job retention teams to ensure their success; and

(2) Develop a comprehensive policy to reduce the number of unemployment compensation exhaustees and the long-term unemployed. This goal can be achieved by providing an array of services to the long-term unemployed and older unemployed workers as defined in RCW 50.62.020.

NEW SECTION. Sec. 3. There is established within the department of trade and economic development the business and job retention program. An exempt position is hereby created at the division director level within the department of trade and economic development for the managing director of the business and job retention program. The managing director shall be appointed by the governor and shall serve under the direction of the director of trade and economic development at the governor's pleasure. In carrying out the purposes of this chapter, the managing director shall solicit volunteer assistance, work with the business assistance center, the small business development center, the department of community development's employee ownership program, local early warning programs, local reemployment centers, labor representatives, and other appropriate public and private agencies and organizations, and contract with private consultants, with the approval of the director of trade and economic development, for such services as the managing director deems advisable.

NEW SECTION. Sec. 4. The managing director shall appoint an advisory committee having equal representation from local businesses, local government, and local labor organizations, and representatives of higher education, community colleges, vocational technical institutes, associate development organizations, community based economic development organizations, private industry councils, local early warning programs, local reemployment centers, and other advocates for dislocated and unemployed workers. The managing director shall consult with the advisory committee in developing implementation plans for carrying out this chapter and shall monitor implementation and operations of the state and regional components of the program. Staff assistance shall be provided to the committee by the departments of trade and economic development, employment security, and community development. Members of the advisory committee shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 5. The managing director, after consultation with the advisory committee, shall:

(1) Designate service delivery regions in the state, each of which shall have no less than one county and no more than six counties.

(2) Establish business and job retention teams for each region. The managing director shall designate an associate development organization or other appropriate locally based organization as the team coordinator for each regional business and job retention team. Each team shall have equal representation from local businesses, local government, and local labor organizations. In addition, each team shall have representatives from local associate development organizations, local reemployment centers, local businesses, local labor organizations, local educational institutions, community based organizations, advocates for the dislocated and unemployed workers, local private industry councils, and local governments. The team coordinator shall select appropriate marketing, management, training, and technical specialists to assist the team on any given project or group of projects. The department may subcontract with existing early warning or job retention programs to avoid duplication of effort in any region. The team coordinator shall be responsible for soliciting assistance from within the region from local chambers of commerce, private industry councils, colleges, universities, local early warning programs, local reemployment centers, and any other private, public, or nonprofit group with appropriate expertise.

(3) Develop a model local business survey and assist the regional business and job retention team in administering in each region surveys of businesses, utilities, labor unions, employees, financial institutions, and community organizations in cooperation with any existing business retention programs, reemployment centers, and associate development organizations. The surveys will gather information about business needs, expansion plans, relocation decisions, training needs, potential layoffs, financing needs, and the availability of financing, and other appropriate information.

(4) Designate criteria for receipt of services offered to businesses, labor unions, employee groups, community groups, local governments, and port districts. Such criteria shall include the number of employees affected, the type of business involved, reemployment potential of employees, severity of problems affecting the business or workforce, skill level of workforce, availability of financing, and the social and economic costs of layoffs or closure.

(5) Be responsible for the development and implementation of training programs for the regional business and job retention team coordinators and teams. The training programs shall be designed to assist the teams in developing and coordinating local resources, assessing the need for outside resources, and locating other public and private resources needed to assist firms.

(6) Shall provide or coordinate the delivery of technical and managerial assistance upon request from the local business and job retention team coordinator in the areas of financial management, marketing, product development, production process analysis, training, and other business services.

NEW SECTION. Sec. 6. The business and job retention teams shall provide marketing, technical, managerial, and training assistance appropriate to client businesses, unions, employee groups, and workforces. The teams shall initiate contact with those firms or employees indicating the potential for closure, mass layoff, or relocation. For firms or employees not indicating such potential, the provision of services from the teams will be in response to direct requests from firms, labor unions, employee groups, community groups, local governments, and port districts. The team coordinator shall be responsible for conducting an initial assessment of firms or work forces to determine viability, problems, and skill levels, in cooperation with any early warning programs, reemployment centers, and associate development organizations. The assessment shall include but not be limited to the public and private costs of any potential closure or layoff, the potential for preventing a closure, business failure, business relocation, or mass lay-off, the potential for a change in ownership, including worker and community buy-outs of the firm, and the costs of keeping the facility in operation. Where appropriate, team coordinators shall assist local governments or organizations in applying for local development matching funds from the department of community development.

After the initial assessment, the team coordinator shall coordinate the delivery of technical, managerial, financial training, and other assistance. The team coordinator shall work with the employment security department and local reemployment centers to assess the need for and to ensure the provision of training services to client businesses, prelayoff services, and the establishment of programs for dislocated workers such as job clubs, retraining counseling, and the referral and delivery of social services.

NEW SECTION. Sec. 7. In addition to the responsibilities set forth in sections 3 through 6 of this act, the department of trade and economic development shall draw upon its existing resources, employment and economic data from the employment security department, and data from the department of licensing and the department of revenue and other sources, to do nonduplicative analyses of trends in the state's industries and workforces. The department shall make such analyses available to relevant businesses, labor organizations or workforces, local governments, economic development organizations, early warning programs, and business and job retention teams, and shall work with them to develop long-term strategies for economic growth and revitalization.

NEW SECTION. Sec. 8. The employment security department shall:

(1) Track numbers of dislocated workers and part-time workers in the state.

(2) Assess the number and causes of permanent mass layoffs and closures using a modified permanent mass layoff and plant closure data base which is presently funded by the federal government.

(3) Supply the managing director with data under subsections (1) and (2) of this section, which will allow the state and local components of the program to prioritize delivery of service to distressed, mature, and cyclical industries.

(4) Provide information and assistance to the program on training resources available through the department.

(5) Offer any businesses assisted by the program its first source hiring services.

(6) Work with the department of social and health services to track dislocated workers who exhaust their unemployment compensation benefits and begin collecting public assistance.

NEW SECTION. Sec. 9. The department of community development shall provide resources to the business and job retention teams through its various programs, such as the community development finance unit, the employee ownership program, the community revitalization team and the development loan fund.

NEW SECTION. Sec. 10. The state board for vocational education shall assist the business and job retention program through the development of partnerships between educational institutions and businesses that can benefit from job skills programs.

NEW SECTION. Sec. 11. The managing director shall publish an annual report which shall be made available to the senate and house ways and means committees, the senate commerce and labor committee, and the house committee on trade and economic development. The report shall include the following:

(1) The number of businesses, labor unions, employee groups, local governments, and port districts assisted under this chapter;

(2) The types of assistance provided; and

(3) The number of businesses and jobs retained through assistance rendered under this chapter.

These reporting requirements shall be disaggregated by county, standard industrial classification, and size of firm.

NEW SECTION. Sec. 12. A new section is added to chapter 42.17 RCW to read as follows:

Notwithstanding the provisions of RCW 42.17.260 through 42.17.340, no financial or proprietary information supplied by businesses to the department of trade and economic development may be made available to the public.

NEW SECTION. Sec. 13. Sections 3 through 11 and 29 of this act shall constitute a new chapter in Title 43 RCW.

Sec. 14. Section 1, chapter 5, Laws of 1985 ex. sess. as amended by section 1, chapter 171, Laws of 1987 and by section 1, chapter 284, Laws of 1987 and RCW 50.62.010 are each reenacted and amended to read as follows:

The legislature finds and declares that:

(1) The number of persons unemployed in the state is significantly above the national average.

(2) Persons who are unemployed represent a skilled resource to the economy and the quality of life for all persons in the state.

(3) There are jobs available in the state that can be filled by unemployed persons.

(4) A public labor exchange can appreciably expedite the employment of unemployed job seekers and filling employer vacancies thereby contributing to the overall health of the state and national economies.

(5) The Washington state job service of the employment security department has provided a proven service of assisting persons to find employment for the past fifty years.

(6) Expediting the reemployment of unemployment insurance claimants will reduce payment of claims drawn from the state unemployment insurance trust fund.

(7) Increased emphasis on assisting in the reemployment of claimants and monitoring claimants' work search efforts will positively impact employer tax rates resulting from the recently enacted experience rating legislation, chapter 205, Laws of 1984.

(8) Special employment service efforts are necessary to adequately serve agricultural employers who have unique needs in the type of workers, recruitment efforts, and the urgency of obtaining sufficient workers.

(9) Study and research of issues related to employment and unemployment provides economic information vital to the decision-making process.

(10) Older workers and the long-term unemployed experience greater difficulty finding new employment at wages comparable to their prelayoff earnings relative to all unemployment insurance claimants who return to work.

(11) After a layoff, older unemployed workers and the long-term unemployed workers fail to find unemployment insurance-covered employment at a much higher rate than other groups of unemployment insurance claimants.

(12) Many older workers and the long-term unemployed are unable to find new employment at wages comparable to their prelayoff earnings due to a lack of job skills which are currently in demand or poor reading or writing skills.

The legislature finds it necessary and in the public interest to have a program of job service to assist persons drawing unemployment insurance claims to find employment, to assist the long-term unemployed and older unemployed workers who are unable to find employment at wages comparable to their prelayoff wages in obtaining the training and education necessary to find new employment at wages comparable to their prelayoff earnings, to provide employment assistance to the agricultural industry, and to conduct research into issues related to employment and unemployment.

Sec. 15. Section 2, chapter 5, Laws of 1985 ex. sess. as amended by section 2, chapter 284, Laws of 1987 and RCW 50.62.020 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Job service" means the employment assistance program of the employment security department;

(2) "Employment assistance" means services to unemployed persons focused on and measured by the obtaining of employment;

(3) "Labor exchange" means those activities which match labor supply and labor demand, including recruitment, screening, and referral of qualified workers to employers;

(4) "Special account of the administrative contingency fund" means that fund under RCW 50.24.014 established within the administrative contingency fund of the employment security department which provides revenue for the purposes of this chapter.

(5) "Continuous wage and benefit history" means an information and research system utilizing a longitudinal data base containing information on both employment and unemployment.

(6) "Long-term unemployed" means demographic groups of unemployment insurance claimants identified by the employment security department pursuant to RCW 50.62.040(1)(e) which have the highest percentages of persons who have drawn at least fifteen weeks of unemployment insurance benefits or have the highest percentage of persons who have exhausted their unemployment insurance benefits.

(7) "Older unemployed workers" means unemployment insurance claimants who are at least fifty years of age.

(8) "Comparable wages" means average weekly wages adjusted for inflation which are at least eighty-five percent of average prelayoff weekly wages.

Sec. 16. Section 3, chapter 5, Laws of 1985 ex. sess. as amended by section 2, chapter 171, Laws of 1987 and by section 3, chapter 284, Laws of 1987 and RCW 50.62.030 are each reenacted and amended to read as follows:

Job service resources shall be used to assist with the reemployment of unemployed workers using the most efficient and effective means of service delivery. The job service program of the employment security department may undertake any program or activity for which funds are available and which furthers the goals of this chapter. These programs and activities shall include, but are not limited to:

(1) Giving older unemployed workers and the long-term unemployed the highest priority for all services made available under this section. The employment security department shall make the services provided under this chapter available to the older unemployed workers and the long-term unemployed as soon as they register under the employment assistance program;

(2) Conducting an assessment of the training and remedial education needed by older unemployed workers and the long-term unemployed to obtain employment at wages comparable to their pre-layoff weekly earnings;

(3) Referring older unemployed workers and the long-term unemployed who are unable to find employment at wages comparable to their prelayoff weekly earnings to appropriate educational and training institutions for programs which will improve their employability;

(4) Informing, verbally and in writing, the older unemployed workers and the long-term unemployed of their right to attend commissioner approved training pursuant to RCW 50.20.043;

(5) Supplementing basic employment services, with special job search and claimant placement assistance designed to assist unemployment insurance claimants to obtain employment;

((~~(3)~~)) (6) Providing employment services, such as recruitment, screening, and referral of qualified workers, to agricultural areas where these services have in the past contributed to positive economic conditions for the agricultural industry;

((~~(4)~~)) (7) Providing otherwise unobtainable information and analysis to the legislature and program managers about issues related to employment and unemployment; and

(8) To research and consider the degree to which the employment security department can contract with private employment agencies, private for-profit and not-for-profit organizations in the fields of job placement, vocational counseling, career development, career change and employment preparation on a fee for service-performance basis.

Sec. 17. Section 12, chapter 3, Laws of 1971 as last amended by section 1, chapter 40, Laws of 1985 and RCW 50.20.043 are each amended to read as follows:

No otherwise eligible individual shall be denied benefits for any week because the individual is in training with the approval of the commissioner, nor shall such individual be denied benefits with respect to any week in which the individual is satisfactorily progressing in a training program with the approval of the commissioner by reason of the application of RCW 50.20.010(3), 50.20.015, 50.20.080, or 50.22.020(1) relating to availability for work and active search for work, or failure to apply for or refusal to accept suitable work.

An individual who the commissioner determines to be a dislocated worker as defined by RCW 50.04.075, or who the commissioner determines to be within the category of the long-term unemployed or to be an older unemployed worker as defined by RCW 50.62.020, and who is satisfactorily progressing in a training program approved by the commissioner shall be considered to be in training with the approval of the commissioner.

For all individuals within the categories specified in RCW 50.62.020(6) or (7), at the time the individual files an application for an initial determination, the department shall provide information concerning the individual's right to receive benefits while satisfactorily progressing in training approved by the commissioner.

NEW SECTION. Sec. 18. The department shall provide notice of the right to receive benefits while satisfactorily progressing in training approved by the commissioner to all individuals within the categories specified in RCW 50.62.020(6) or (7) who, as of the effective date of this section, have filed applications for an initial determination or who are receiving benefits.

NEW SECTION. Sec. 19. It is the intent of the legislature to assist in the creation of local reemployment support centers which would increase the capacity of local communities to aid their unemployed. The centers are intended to supplement but not supplant the efforts of the local job service centers of the employment security department. The legislature intends that the local reemployment support centers established by this chapter shall give first priority to those unemployed persons most likely to exhaust their unemployment compensation benefits or to become long-term unemployed.

NEW SECTION. Sec. 20. (1) The department of community development shall issue requests for proposals to nonprofit agencies or to local government agencies to serve as the local reemployment centers under this chapter. The requests for proposals shall authorize the selected agencies to receive funds pursuant to this chapter for a two-year period.

(2) The requests for proposals shall be issued for these five areas in the state:

(a) Eastern Washington, which for the purposes of this chapter shall include Spokane, Pend Oreille, Stevens, Ferry, Lincoln, Whitman, Garfield, Asotin, Columbia, and Adams counties;

(b) Central Washington, which for the purposes of this chapter shall include Klickitat, Grant, Douglas, Okanogan, Chelan, Kittitas, and Yakima counties;

(c) Southwest Washington and Peninsula, which for the purposes of this chapter shall include Skamania, Clark, Cowlitz, Wahkiakum, Lewis, Clallam, and Jefferson counties;

(d) South Puget Sound, which for the purposes of this chapter shall include Pierce, Thurston, Mason, and Kitsap counties; and

(e) Northwest Washington, which for the purposes of this chapter shall include Snohomish, Skagit, Whatcom, San Juan, and Island counties.

The department of community development shall select one agency from each of the five areas to serve as the reemployment support center in that area.

(3) The department of community development shall establish standards to govern the selection of the reemployment support centers. At a minimum, each local reemployment support center shall raise matching funds in an amount equal to the state grant.

NEW SECTION. Sec. 21. The local reemployment support centers shall provide direct or referral services to the unemployed. The referrals shall be made to agencies which provide any of the following services:

(1) Reemployment assistance;

(2) Medical services;

(3) Social services including marital counseling;

(4) Psychotherapy;

(5) Mortgage foreclosure and utilities problems counseling;

(6) Drug and alcohol abuse services;

(7) Credit counseling; and

(8) Other services as deemed appropriate.

The local reemployment support centers shall demonstrate the utilization of the services of volunteers to maximize the effectiveness of the centers' programs, and outreach efforts to encourage the unemployed to seek assistance.

NEW SECTION. Sec. 22. The employment security department and the department of social and health services shall each locate one or more workers on a full or part-time basis at each local reemployment support center in an effort to increase the effectiveness of the local reemployment centers.

NEW SECTION. Sec. 23. The department of community development shall require each local center which receives funds under this chapter to submit semiannual reports to the department which document the effectiveness of the center's activities.

NEW SECTION. Sec. 24. The referrals and services provided by the centers shall be confidential. Reporting and recordkeeping necessary to file the required reports with the department of community development shall be conducted in a manner which will maintain the confidentiality of the client-provider relationship.

NEW SECTION. Sec. 25. Each local reemployment support center designated by the department pursuant to this chapter shall receive a minimum of sixty thousand dollars for a one-year period.

Sec. 26. Section 2, chapter 107, Laws of 1987, section 1, chapter 337, Laws of 1987, section 16, chapter 370, Laws of 1987, section 1, chapter 404, Laws of 1987, and section 10, chapter 411, Laws of 1987 and RCW 42.17.310 are each reenacted and amended to read as follows:

(1) The following are exempt from public inspection and copying:

(a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, welfare recipients, prisoners, probationers, or parolees.

(b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

(c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

(d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

(e) Information revealing the identity of persons who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property: PROVIDED, That if at the time the complaint is filed the complainant indicates a desire for disclosure or nondisclosure, such desire shall govern: PROVIDED, FURTHER, That all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

(f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

(g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

(h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

(i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

(j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

(k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

(l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

(m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.

(n) Railroad company contracts filed with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

(o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 53.31 RCW.

(p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.

(q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

(r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapters 43.31, 43.63A, and 43.168 RCW.

(s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

(t) ((~~Except as provided under section 2 of this 1987 act [1987 c 404 § 2],~~)) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

(u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

(v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

(w) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

(x) Records of local reemployment support centers established under chapter 50.-- RCW (sections 19 through 25 of this 1988 act) if such records identify individual clients.

(2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

(3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

(4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.

Sec. 27. Section 8, chapter 5, Laws of 1985 ex. sess. as amended by section 4, chapter 171, Laws of 1987 and RCW 50.24.014 are each amended to read as follows:

A separate and identifiable account to provide for the financing of special programs to assist the unemployed is established in the administrative contingency fund. Except as otherwise provided in this section, contributions to this account shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at the rate of ((~~two~~)) four one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010. Contributions received under this section equivalent to one one-hundredth of one percent of taxable wages shall be deposited in the business and job retention fund established under section 29 of this 1988 act.

Contributions under this section shall become due and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

If the commissioner determines that federal funding has been increased to provide financing for the services specified in chapter 50.62 RCW and sections 19 through 25 of this 1988 act, the commissioner shall direct that ((~~collection of contributions under this section be terminated~~)) the contribution rate under this section be reduced to one one-hundredth of one percent on the following January 1st.

Sec. 28. Section 60, chapter 35, Laws of 1945 as last amended by section 218, chapter 202, Laws of 1987 and RCW 50.16.010 are each amended to read as follows:

There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable. The unemployment compensation fund shall consist of

(1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title, except as otherwise provided by law,

(2) interest earned upon any moneys in the fund,

(3) any property or securities acquired through the use of moneys belonging to the fund,

(4) all earnings of such property or securities,

(5) any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended,

(6) all money recovered on official bonds for losses sustained by the fund,

(7) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

(8) all money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304), and

(9) all moneys received for the fund from any other source.

All moneys in the unemployment compensation fund shall be commingled and undivided.

The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title after June 20, 1953, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended. Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

(a) The proper administration of this title and no federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.

(b) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.

Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in this 1985 act.

NEW SECTION. Sec. 29. The business and job retention fund is hereby established in the custody of the state treasurer. The fund shall consist of such money as is directed for deposit therein by law. Money in the fund may be spent only for the purposes of the business and job retention program under this chapter. Disbursements from the fund shall be on the authorization of the director of trade and economic development or the director's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

NEW SECTION. Sec. 30. A new section is added to chapter 50.20 RCW to read as follows:

Claimants who are defined as long-term unemployed under RCW 50.62.020(6) shall be required to participate in the employment service activities under RCW 50.62.030 (2) through (5) to continue to be eligible for benefits.

Sec. 31. Section 5, chapter 205, Laws of 1984 as last amended by section 3, chapter 171, Laws of 1987 and RCW 50.29.025 are each amended to read as follows:

The contribution rate for each employer shall be determined under this section.

(1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

(2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:

!tm2,1,1 !tcInterval!sc ,1of!sc ,1the

!tcFund!sc ,1Balance!sc ,1Ratio!tj1!tcEffective

!tcExpres!ttsed!sc ,1as!sc ,1a!sc ,1Percentage!tj1!tcTax!sc ,1Sc!tthedule

!tl3.40 and!sc ,1above!tcA

!tl2.90 to 3.39!tcB

!tl2.40 to 2.89!tcC

!tl1.90 to 2.39!tcD

!tl1.40 to 1.89!tcE

!tlLess!sc ,1than!sc ,0011.40!tcF

(3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

(4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

(5) The contribution rate for each employer in the array shall be the rate specified in the following table for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

!tp1,4 !tcPercent!sc ,1of

!tcCumulative!tj1!trSchedule!sc ,1of!sc ,1Contribution!sc ,1Rates!sc ,1for

!tcTaxable!sc ,1Pa!ttyrolls!trEffective!sc ,1Tax!sc ,1Schedule!sc ,6

!tm1,2,1,1,1,1,1,1,1 !tj2!tcRate

From!tj1!tcTo!tcClass!tlA!tcB!tcC !tcD!tcE!tcF

!sc ,001((~~0.00!tj1!tc5. 00!tc1!tc0.48!tc0.58!tc0.98!tc1.48!tc1.88!tc2.48~~

~~!sc ,0015.01!tj1!tc10.00!tc2!tc0.48!tc0.78!tc1.18!tc1.68!tc2.08!tc2.68~~

~~10.01!tj1!tc15.00!tc3!tc0.58!tc0.98!tc1.38!tc1.78!tc2.28!tc2.88~~

~~15.01!tj1!tc20.00!tc 4!tc0.78!tc1.18!tc1.58!tc1.98!tc2.48!tc3.08~~

~~20.01!tj1!tc25.00!tc5!tc0.98!tc1.38!tc1.78!tc2.18!tc2.68!tc3.18~~

~~25.01!tj1!tc30.00!tc6!tc1.18!tc1.58!tc1.98!tc2.38!tc2.78!tc3.28~~

~~30.01!tj1!tc35.00!tc7!tc1.38!tc1.78!tc2.18!tc2.58!tc2.98!tc3.38~~

~~35.01!tj1!tc40.00!tc8!tc1.58!tc1.98!tc2.38!tc2.78!tc3.18!tc3.58~~

~~40.01!tj1!tc45.00!tc9!tc1.78!tc2.18!tc2.58!tc2.98!tc3.38!tc3.78~~

~~45.01!tj1!tc50.00!tc10!tc1.98!tc2.38!tc2.78!tc3.18!tc3.58!tc3.98~~

~~50.01!tj1!tc55.00!tc11!tc2.28!tc2.58!tc2.98!tc3.38!tc3.78!tc4.08~~

~~55.01!tj1!tc60.00!tc12!tc2.48!tc2.78!tc3.18!tc3.58!tc3.98!tc4.28~~

~~60.01!tj1!tc65.00!tc13!tc2.68!tc2.98!tc3.38!tc3.78!tc4.18!tc4.48~~

~~65.01!tj1!tc70.00!tc14!tc2.88!tc3.18!tc3.58!tc3.98!tc4.38!tc4.68~~

~~70.01!tj1!tc75.00!tc15!tc3.08!tc3.38!tc3.78!tc4.18!tc4.58!tc4.78~~

~~75.01!tj1!tc80.00!tc16!tc3.28!tc3.58!tc3.98!tc4.38!tc4.68!tc4.88~~

~~80.01!tj1!tc85.00!tc17!tc3.48!tc3.78!tc4.18!tc4.58!tc4.88!tc4.98~~

~~85.01!tj1!tc90.00!tc18!tc3.88!tc4.18!tc4.58!tc4.88!tc4.98!tc5.18~~

~~90.01!tj1!tc95.00!tc19!tc4.28!tc4.58!tc4.98!tc5.08!tc5.18!tc5.38~~

~~95.01!tj1!tc100.00!tc20!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40~~))

!sc ,0010.00!tj1!tc5. 00!tc1!tc0.46!tc0.56!tc0.96!tc1.46!tc1.86!tc2.46

!sc ,0015.01!tj1!tc10.00!tc2!tc0.46!tc0.76!tc1.16!tc1.66!tc2.06!tc2.66

10.01!tj1!tc15.00!tc3!tc0.56!tc0.96!tc1.36!tc1.76!tc2.26!tc2.86

15.01!tj1!tc20.00!tc 4!tc0.76!tc1.16!tc1.56!tc1.96!tc2.46!tc3.06

20.01!tj1!tc25.00!tc5!tc0.96!tc1.36!tc1.76!tc2.16!tc2.66!tc3.16

25.01!tj1!tc30.00!tc6!tc1.16!tc1.56!tc1.96!tc2.36!tc2.76!tc3.26

30.01!tj1!tc35.00!tc7!tc1.36!tc1.76!tc2.16!tc2.56!tc2.96!tc3.36

35.01!tj1!tc40.00!tc8!tc1.56!tc1.96!tc2.36!tc2.76!tc3.16!tc3.56

40.01!tj1!tc45.00!tc9!tc1.76!tc2.16!tc2.56!tc2.96!tc3.36!tc3.76

45.01!tj1!tc50.00!tc10!tc1.96!tc2.36!tc2.76!tc3.16!tc3.56!tc3.96

50.01!tj1!tc55.00!tc11!tc2.26!tc2.56!tc2.96!tc3.36!tc3.76!tc4.06

55.01!tj1!tc60.00!tc12!tc2.46!tc2.76!tc3.16!tc3.56!tc3.96!tc4.26

60.01!tj1!tc65.00!tc13!tc2.66!tc2.96!tc3.36!tc3.76!tc4.16!tc4.46

65.01!tj1!tc70.00!tc14!tc2.86!tc3.16!tc3.56!tc3.96!tc4.36!tc4.66

70.01!tj1!tc75.00!tc15!tc3.06!tc3.36!tc3.76!tc4.16!tc4.56!tc4.76

75.01!tj1!tc80.00!tc16!tc3.26!tc3.56!tc3.96!tc4.36!tc4.66!tc4.86

80.01!tj1!tc85.00!tc17!tc3.46!tc3.76!tc4.16!tc4.56!tc4.86!tc4.96

85.01!tj1!tc90.00!tc18!tc3.86!tc4.16!tc4.56!tc4.86!tc4.96!tc5.16

90.01!tj1!tc95.00!tc19!tc4.26!tc4.56!tc4.96!tc5.06!tc5.16!tc5.36

95.01!tj1!tc100.00!tc20!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40

(6) The contribution rate for each employer not qualified to be in the array shall be a rate equal to the average industry tax rate as determined by the commissioner; however, the rate may not be less than one percent: PROVIDED, That employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

Sec. 32. Section 7, chapter 13, Laws of 1983 1st ex. sess. and RCW 50.16.070 are each amended to read as follows:

The federal interest payment fund shall consist of contributions payable by each employer (except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, employers who are required to make payments in lieu of contributions, and employers paying contributions under RCW 50.44.035) for any calendar quarter which begins on or after January 1, 1984, and for which the commissioner determines that the department will have an outstanding balance of accruing federal interest at the end of the calendar quarter. The amount of wages subject to tax shall be determined according to RCW 50.24.010. The tax rate applicable to wages paid during the calendar quarter shall be determined by the commissioner and shall not exceed fifteen one-hundredths of one percent. In determining whether to require contributions as authorized by this section, the commissioner shall consider the current balance in the federal interest payment fund and the projected amount of interest which will be due and payable as of the following September 30. Unless otherwise provided by legislative appropriation, any excess moneys in the federal interest payment fund shall be retained in the fund for future interest payments.

Contributions under this section shall become due and be paid by each employer in accordance with such rules as the commissioner may prescribe and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

NEW SECTION. Sec. 33. If any part of this act shall be found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state, such conflicting part of this act is hereby declared to be inoperative solely to the extent of such conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 34. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 35. The department of community development shall submit a report to the governor and to the commerce and labor committees of the house of representatives and the senate prior to the start of the 1989 legislative session. The report shall assess the effectiveness of the centers under sections 19 through 25 of this act and their service delivery approaches.

NEW SECTION. Sec. 36. Sections 19 through 25 of this act shall constitute a new chapter in Title 50 RCW.

NEW SECTION. Sec. 37. The sum of three hundred thousand dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the federal interest payment fund to the department of community development for the purposes of sections 19 through 25 of this act.