2235 AMH .... H3033.1

2235 AMH .... H3033.1

HB 2235 - H AMD

By Representative

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 50.22 RCW to read as follows:

(1) An additional benefit period is established for:

(a) An individual who has base year employment of at least one thousand hours in the same industry, but if the individual does not have one thousand hours, then has base year employment in the same industry of at least six hundred eighty hours during his or her base year and of at least six hundred eighty hours during the period of four consecutive calendar quarters prior to his or her base year, and who:

(i) Has been terminated or has received a notice of termination from employment;

(ii) Is eligible for or has exhausted entitlement to unemployment compensation benefits;

(iii) Is, in the determination of the employment security department, in consultation with its labor market and economic analysis division, in a declining occupation because of diminishing demand for his or her skills; and

(iv) Is identified by the department through the profiling system under RCW 50.20.011 as likely to exhaust regular benefits; and

(b) An individual who meets the provisions of (a)(i) and (ii) of this subsection, who is unlikely, in the determination of the employment security department in consultation with its labor market and economic analysis division, to return to employment in his or her principal occupation or previous industry because of diminishing demand for his or her skills in that occupation or industry, and who has base year employment of at least one thousand hours, but if the individual does not have one thousand hours, then has base year employment in the same industry of at least six hundred eighty hours during his or her base year and of at least six hundred eighty hours during the period of four consecutive calendar quarters prior to his or her base year, in the:

(i) Forest products industry, determined by the department, but including the industries assigned the major group standard industrial classification codes "24" and "26" or any equivalent codes in a successor classification system as determined by the commissioner, and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. New claims for additional benefits under this subsection (1)(b)(i) shall be accepted only for weeks of unemployment beginning after July 1, 1999;

(ii) Fishing industry assigned the standard industrial classification code "0912" or any equivalent codes in a successor classification system as determined by the commissioner. New claims for additional benefits under this subsection (1)(b)(ii) shall be accepted only for weeks of unemployment beginning after July 1, 1999; or

(iii) Aerospace industry assigned the standard industrial classification code "372" or any equivalent codes in a successor classification system as determined by the commissioner.

(2) The total additional benefit amount for individuals described in subsection (1)(a) of this section shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits paid, or deemed paid, with respect to the benefit year.

(3) The total additional benefit amount for individuals described in subsection (1)(b) of this section shall be one hundred four times the individual's weekly benefit amount, reduced by the total amount of regular benefits paid, or deemed paid, with respect to the benefit year.

(4)(a) For individuals described in subsection (1)(a) of this section, no new claims for additional benefits shall be accepted for weeks beginning after July 1, 2001, but for claims established on or before July 1, 2001, weeks of unemployment occurring after July 1, 2001, shall be compensated as provided in this section.

(b) For individuals described in subsection (1)(b) of this section, no new claims for additional benefits shall be accepted for weeks beginning after July 1, 2001, but for claims established on or before July 1, 2001, weeks of unemployment occurring after July 1, 2001, shall be compensated as provided in this section.

(5) An additional benefit eligibility period is established for any exhaustee meeting the requirements of subsection (1)(a) or (b) of this section who:

(a) Develops an individual training program that is submitted to the commissioner for approval by sixty days after the individual is notified by the department of the requirements of this section or after the individual is profiled under RCW 50.20.011, whichever occurs later;

(b) Enters the approved training program by ninety days after the date of the notification or profiling, whichever occurs later, unless the department determines that the training is not available during the ninety-day period, in which case the individual enters training as soon as it is available; and

(c) Is enrolled in training approved under this section on a full-time basis as determined by the educational institution, and making satisfactory progress in the training by maintaining a grade point average sufficient to graduate and attending all classes included in the approved training plan, as certified by the educational institution. The educational institution shall provide the certification, including the grade point average, to the department following the end of each academic quarter or semester, as applicable, for eligibility verification purposes.

(6) The weekly benefit amount shall be the same as the regular weekly amount payable during the applicable benefit year.

(7) Benefits paid under this section shall be paid under the same terms and conditions as regular benefits. The additional benefits shall be paid before any extended benefits but not before any similar federally funded program.

(8) Additional benefits may not be payable for weeks more than one year beyond the end of the benefit year of the regular claim for individuals described in subsection (1)(a) of this section or more than two years beyond the end of the benefit year of the regular claim for individuals described in subsection (1)(b) of this section.

(9) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Training program" means:

(i) A remedial education program determined to be necessary after counseling at the educational institution in which the individual enrolls under his or her approved training program; or

(ii) A vocational training program at an educational institution that:

(A) Is training for a demand occupation; and

(B) Is likely to enhance the individual's marketable skills and earning power.

"Training program" does not include any course of education primarily intended to meet the requirements of a baccalaureate or higher degree, unless the training meets specific requirements for certification, licensing, or for specific skills necessary for the occupation.

(b) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including equivalent educational institutions in other states.

(10) The commissioner shall adopt rules as necessary to implement this section.

(11) The requirement under RCW 50.22.010(10) relating to exhausting regular benefits does not apply to an individual otherwise eligible for additional benefits under this section when the individual's benefit year ends before his or her additional benefits are exhausted and the individual is eligible for a new benefit year. These individuals will have the option of remaining on the original claim or filing a new claim.

(12) All base year employers will be considered interested parties to the granting of additional benefits which gives them the right to appeal an additional benefits determination.

(13) Individuals who receive additional benefits under this section are not eligible for a second additional benefits eligibility period for five years from the first receipt of additional benefits under this section.

(14) Any individual who participates in the commercial fleet reduction buy-back program through the department of fish and wildlife, may not receive additional benefits under this section.

(15) The department, with the cooperation and assistance of the state board for community and technical colleges and the work force training and education coordinating board, shall review the participation in the additional benefits program under this section and report to the joint legislative task force on unemployment insurance created in section 14 of this act and the appropriate committees of the legislature on or before December 1, 2001, on the following:

(a) A demographic analysis of participants in the additional benefits program under this section including the number of claimants per standard industrial classification code and the geographic representation of participants;

(b) The duration of additional benefits claimed per claimant;

(c) An analysis of the training provided to participants including the occupational category supported by the training, those participants who complete training in relationship to those that do not, and the reasons for noncompletion of approved training programs;

(d) The employment and wage history of participants including the pretraining and posttraining wage and whether those participating in training return to their previous employer after training terminates; and

(e) A comparison of the employment history of participants and otherwise eligible nonparticipants.

The department shall provide progress reports to the joint legislative task force on unemployment insurance created in section 14 of this act, the state trust account labor-management advisory board created in section 15 of this act, and the unemployment insurance advisory committee quarterly beginning with meetings held during calendar year 2000.

Sec. 2. RCW 50.24.010 and 1984 c 205 s 2 are each amended to read as follows:

Contributions shall accrue and become payable by each employer (except employers as described in RCW 50.44.010 who have properly elected to make payments in lieu of contributions and those employers who are required to make payments in lieu of contributions) for each calendar year in which the employer is subject to this title at the rate established pursuant to chapter 50.29 RCW.

In each rate year, the amount of wages subject to tax for each individual shall be one hundred fifteen percent of the amount of wages subject to tax for the previous year rounded to the next lower one hundred dollars((~~: PROVIDED, That~~)). However, the amount of wages subject to tax in any rate year shall not exceed ((~~eighty~~)) seventy percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars((~~: PROVIDED FURTHER, That the amount subject to tax shall be twelve thousand dollars for rate year 1984 and ten thousand dollars for rate year 1985.~~)), except that the maximum percentage of the average annual wage shall be as follows for the specified rate year:

Rate year Percentage

2000 65%

2001 66%

2002 67%

2003 68%

2004 69%

In making computations under this section and RCW 50.29.010, wages paid based on services for employers making payments in lieu of contributions shall not be considered remuneration. Moneys paid from the fund, based on services performed for employers who make payments in lieu of contributions, which have not been reimbursed to the fund as of any June 30 shall be deemed an asset of the unemployment compensation fund, to the extent that such moneys exceed the amount of payments in lieu of contributions which the commissioner has previously determined to be uncollectible: PROVIDED, FURTHER, That the amount attributable to employment with the state shall also include interest as provided for in RCW 50.44.020.

Contributions shall become due and be paid by each employer to the treasurer for the unemployment compensation fund in accordance with such regulations as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in employment of the employer. Any deduction in violation of the provisions of this section shall be unlawful.

In the payment of any contributions, 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.

Sec. 3. RCW 50.29.020 and 1995 c 57 s 3 are each amended to read as follows:

(1) An experience rating account shall be established and maintained for 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, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

(2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers 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 described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

(a) Benefits paid to any individuals later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer.

(b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:

(i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or

(ii) The individual files under RCW 50.06.020(2).

(c) Benefits paid which represent the state's share of benefits payable under ((~~chapter 50.22~~)) RCW 50.22.010(6) and benefits paid from the state reserve interest account shall not be charged to the experience rating account of any contribution paying employer.

(d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.

(e) In the case of individuals identified under RCW 50.20.015, benefits paid with respect to a calendar quarter, which exceed the total amount of wages earned in the state of Washington in the higher of two corresponding calendar quarters included within the individual's determination period, as defined in RCW 50.20.015, shall not be charged to the experience rating account of any contribution paying employer.

(3)(a) ((~~Beginning July 1, 1985,~~)) A contribution-paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:

(i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;

(ii) Was discharged for misconduct connected with his or her work not a result of inability to meet the minimum job requirements;

(iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, work site, or other facility. This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or

(iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer. Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated. This subsection does not apply to shared work employers under chapter 50.60 RCW.

(b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be granted.

NEW SECTION. Sec. 4. A new section is added to chapter 50.24 RCW to read as follows:

(1)(a) A state reserve trust account is established as a separate account, identifiable and apart from all public moneys or funds of this state. Contributions to this account shall accrue and become payable by each qualified employer defined in RCW 50.29.010 for tax rate year 2000 and 2001, or as provided in (b) of this subsection. The contribution rate applicable to wages paid during the calendar quarter shall be determined under section 9 of this act. The amount of wages subject to contributions shall be determined under RCW 50.24.010.

(b) If, after January 1, 2001, at any computation date under RCW 50.29.025, the balance in the state reserve trust account is less than six hundred million dollars, contributions under (a) of this subsection shall accrue and become payable for the following tax rate year. This subsection (1)(b) does not apply if the balance in the unemployment compensation fund at the computation date in question is less than six hundred million dollars.

(2)(a) Contributions collected under subsection (1) of this section shall be deposited into the state reserve trust account.

(b) Contributions under this section are due and must be paid by each employer under rules that the commissioner may prescribe, and may not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. A deduction in violation of this section is unlawful.

(c) In the payment of a contribution 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.

(3)(a) Money deposited in the state reserve trust account may be used only for loans to the unemployment trust fund and as security for loans from the federal unemployment insurance trust fund. An appropriation is not required for expenditures.

(b)(i) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment moneys in the state reserve trust account. All investment and operating costs associated with the investment of money shall be paid as required by RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earnings from the investment of the money shall be retained by the account.

(ii) All investments made by the state investment board shall be made with the exercise of that degree of judgment and care required under RCW 43.33A.140 and the investment policies established by the state investment board.

(iii) As deemed appropriate by the state investment board, moneys in the account may be commingled for investment with other funds subject to investment by the board.

(4) Interest earned from investment of the state reserve trust account shall be deposited quarterly as follows:

(a) Interest in the amount that would have been earned if the state reserve trust account had been invested in interest-bearing obligations of the United States, or in obligations guaranteed as to both principal and interest by the United States, shall be deposited in the unemployment compensation fund. If the interest earned on investment of the state reserve trust account in any fiscal year is less than the amount that would have been earned if the account had been invested in interest-bearing obligations of the United States, or in obligations guaranteed as to both principal and interest by the United States, then all future interest earned from investment of the state reserve trust account must be deposited into the unemployment compensation fund until the lost interest earnings have been restored; and

(b) After the deposit required in (a) of this subsection, the remaining interest shall be deposited in the state reserve interest account established in subsection (5) of this section.

(5) The state reserve interest account is established as a separate account, identifiable and apart from all public moneys or funds of this state. The state reserve interest account shall consist of the interest deposited under subsection (4)(b) of this section. Moneys in the state reserve interest account may be used only to pay administrative costs related to collecting contributions under this section and to administer the state reserve trust account and the state reserve interest account, and the remaining balance may be used only as follows:

(a) One-half of the balance may be used to fund the unemployment insurance additional benefits program for dislocated workers in retraining, including administrative costs, that will allow fifty-two weeks of combined regular and additional benefits, with eligibility criteria and program prioritization as authorized in section 15 of this act; and

(b) One-half of the balance may be used to finance unemployment insurance socialized cost, including administrative costs, as authorized in section 11 of this act.

(6) If the proposed amendment to Article II of the state Constitution (House Joint Resolution No. 4208, securing unemployment benefits) is not approved and ratified by the voters, this section is null and void.

Sec. 5. RCW 50.04.070 and 1985 ex.s. c 5 s 4 are each amended to read as follows:

"Contributions" means the money payments due to the state unemployment compensation fund as provided in RCW 50.24.010, to the federal interest payment fund under RCW 50.16.070, to the state reserve trust account under section 4 of this act, or to the special account in the administrative contingency fund under RCW 50.24.014.

Sec. 6. RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:

The terms "contributions" and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to the state unemployment compensation fund, to the federal interest payment fund under RCW 50.16.070, to the state reserve trust account under section 4 of this act, or to the special account in the administrative contingency fund under RCW 50.24.014 and are deemed to be taxes due to the state of Washington.

Sec. 7. RCW 50.16.010 and 1993 c 483 s 7 and 1993 c 226 s 10 are each reenacted and amended to read as follows:

(1) 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, a state reserve trust account, a state reserve interest account, 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.

(2) The unemployment compensation fund shall consist of

((~~(1)~~)) (a) All contributions collected under RCW 50.24.010 and payments in lieu of contributions collected pursuant to the provisions of this title((,));

((~~(2)~~)) (b) Any property or securities acquired through the use of moneys belonging to the fund((,));

((~~(3)~~)) (c) All earnings of such property or securities((,));

((~~(4)~~)) (d) 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((,));

((~~(5)~~)) (e) All money recovered on official bonds for losses sustained by the fund((,));

((~~(6)~~)) (f) All money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended((,));

((~~(7)~~)) (g) 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

((~~(8)~~)) (h) All moneys received for the fund from any other source.

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

(3)(a) The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title, 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.

(b) 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)~~)) (i) 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)~~)) (ii) 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.

((~~(c)~~)) (iii) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.

(c) Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW 50.62.010, 50.62.020, 50.62.030, 50.04.070, 50.04.072, 50.16.010, 50.29.025, 50.24.014, 50.44.053, and 50.22.010.

(4) The state reserve trust account shall consist of contributions collected under section 4(1) of this act and may be expended only for the purposes specified in section 4(3)(a) of this act. The state reserve interest account shall consist of the amounts deposited in the account under section 4(4)(b) of this act and may be expended only for the purposes specified in section 4(5) of this act.

Sec. 8. RCW 50.16.020 and 1993 c 226 s 12 are each amended to read as follows:

The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the state reserve trust account, the state reserve interest account, and ((of)) the administrative contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue his or her warrants upon them in accordance with such regulations as the commissioner shall prescribe. The treasurer and custodian shall maintain within the unemployment compensation fund three separate accounts as follows:

(1) A clearing account((,));

(2) An unemployment trust fund account((,)); and

(3) A benefit account.

All moneys payable to the unemployment compensation fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation fund may be paid from the clearing account upon warrants issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or penalties on delinquent contributions shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the direction of the commissioner.

After clearance thereof, all other moneys in the clearing account shall be immediately deposited with the Secretary of the Treasury of the United States to the credit of the account of this state in the unemployment trust fund, established and maintained pursuant to section 904 of the social security act, as amended, any provisions of law in this state relating to the deposit, administration, release, or disbursement of moneys in the possession or custody of this state to the contrary notwithstanding.

The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust fund. Moneys in the clearing and benefit accounts and in the administrative contingency fund shall not be commingled with other state funds, but shall be deposited by the treasurer, under the direction of the commissioner, in any bank or public depository in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of the fund.

Such moneys shall be secured by said bank or public depository to the same extent and in the same manner as required by the general depository law of the state and collateral pledged shall be maintained in a separate custody account.

The treasurer shall give a bond conditioned upon the faithful performance of his or her duties as a custodian of the funds in an amount fixed by the director of the department of general administration and in a form prescribed by law or approved by the attorney general. Premiums for said bond shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All sums recovered on official bonds for losses sustained by the administrative contingency fund shall be deposited in such fund.

NEW SECTION. Sec. 9. A new section is added to chapter 50.29 RCW to read as follows:

(1) The state reserve trust account contribution rate for each employer subject to contributions under section 4(1) of this act shall be determined under this section.

(a) The effective tax schedule and rate classes shall be assigned as required in RCW 50.29.025.

(b)(i) The state reserve trust account contribution rate for each employer shall be the rate specified in the following table for the rate class to which he or she has been assigned, as determined under RCW 50.29.025(4), within the tax schedule which is to be in effect during the specified rate year:

For rate year 2000:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.36 0.36 0.44 0.74 1.11 1.41 1.86

5.01 10.00 2 0.36 0.36 0.59 0.89 1.26 1.56 2.01

10.01 15.00 3 0.44 0.44 0.74 1.04 1.34 1.71 2.16

15.01 20.00 4 0.44 0.59 0.87 1.13 1.41 1.79 2.24

20.01 25.00 5 0.53 0.65 0.91 1.22 1.52 1.86 2.31

25.01 30.00 6 0.67 0.81 1.00 1.33 1.64 1.94 2.39

30.01 35.00 7 0.77 0.86 1.16 1.46 1.79 2.09 2.46

35.01 40.00 8 0.86 0.97 1.29 1.62 1.94 2.24 2.54

40.01 45.00 9 0.96 1.08 1.43 1.76 2.10 2.39 2.61

45.01 50.00 10 1.07 1.16 1.56 1.90 2.25 2.54 2.69

50.01 55.00 11 1.25 1.34 1.68 2.03 2.40 2.61 2.76

55.01 60.00 12 1.43 1.57 1.90 2.22 2.55 2.76 2.91

60.01 65.00 13 1.62 1.74 2.05 2.41 2.70 2.91 3.14

65.01 70.00 14 1.84 2.01 2.19 2.54 2.85 3.06 3.29

70.01 75.00 15 2.09 2.21 2.36 2.64 3.00 3.25 3.44

75.01 80.00 16 2.29 2.40 2.59 2.84 3.15 3.36 3.59

80.01 85.00 17 2.56 2.70 2.93 3.12 3.40 3.62 3.70

85.01 90.00 18 3.21 3.41 3.56 3.68 3.76 3.91 4.06

90.01 95.00 19 3.56 3.86 4.01 4.15 4.30 4.60 4.67

95.01 100.00 20 0.60 1.16 1.31 1.46 1.61 1.76 1.91

For rate year 2001:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.24 0.24 0.29 0.49 0.74 0.94 1.24

5.01 10.00 2 0.24 0.24 0.39 0.59 0.84 1.04 1.34

10.01 15.00 3 0.29 0.29 0.49 0.69 0.89 1.14 1.44

15.01 20.00 4 0.29 0.39 0.58 0.76 0.94 1.19 1.49

20.01 25.00 5 0.36 0.44 0.61 0.81 1.02 1.24 1.54

25.01 30.00 6 0.45 0.54 0.67 0.89 1.09 1.29 1.59

30.01 35.00 7 0.52 0.58 0.77 0.98 1.19 1.39 1.64

35.01 40.00 8 0.57 0.65 0.86 1.08 1.29 1.49 1.69

40.01 45.00 9 0.64 0.72 0.96 1.18 1.40 1.59 1.74

45.01 50.00 10 0.71 0.78 1.04 1.27 1.50 1.69 1.79

50.01 55.00 11 0.83 0.90 1.12 1.36 1.60 1.74 1.84

55.01 60.00 12 0.95 1.05 1.27 1.48 1.70 1.84 1.94

60.01 65.00 13 1.08 1.16 1.37 1.61 1.80 1.94 2.09

65.01 70.00 14 1.23 1.34 1.46 1.69 1.90 2.04 2.19

70.01 75.00 15 1.39 1.47 1.58 1.76 2.00 2.17 2.29

75.01 80.00 16 1.53 1.60 1.73 1.89 2.10 2.24 2.39

80.01 85.00 17 1.71 1.80 1.95 2.08 2.27 2.42 2.47

85.01 90.00 18 2.14 2.28 2.38 2.45 2.51 2.61 2.71

90.01 95.00 19 2.38 2.57 2.68 2.77 2.87 3.07 3.12

95.01 100.00 20 0.60 1.16 1.31 1.46 1.61 1.76 1.91

For rate year 2002 and beyond, if contributions under section 4(1) of this act are in effect:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.12 0.12 0.14 0.24 0.37 0.47 0.62

5.01 10.00 2 0.12 0.12 0.19 0.29 0.42 0.52 0.67

10.01 15.00 3 0.14 0.14 0.24 0.34 0.44 0.57 0.72

15.01 20.00 4 0.14 0.19 0.29 0.38 0.47 0.59 0.74

20.01 25.00 5 0.18 0.22 0.30 0.40 0.51 0.62 0.77

25.01 30.00 6 0.22 0.27 0.33 0.44 0.54 0.64 0.79

30.01 35.00 7 0.26 0.29 0.38 0.49 0.59 0.69 0.82

35.01 40.00 8 0.28 0.32 0.43 0.54 0.64 0.74 0.84

40.01 45.00 9 0.32 0.36 0.48 0.59 0.70 0.79 0.87

45.01 50.00 10 0.35 0.39 0.52 0.63 0.75 0.84 0.89

50.01 55.00 11 0.41 0.45 0.56 0.68 0.80 0.87 0.92

55.01 60.00 12 0.47 0.52 0.63 0.74 0.85 0.92 0.97

60.01 65.00 13 0.54 0.58 0.68 0.80 0.90 0.97 1.04

65.01 70.00 14 0.61 0.67 0.73 0.84 0.95 1.02 1.09

70.01 75.00 15 0.69 0.73 0.79 0.88 1.00 1.08 1.14

75.01 80.00 16 0.76 0.80 0.86 0.94 1.05 1.12 1.19

80.01 85.00 17 0.85 0.90 0.97 1.04 1.13 1.21 1.23

85.01 90.00 18 1.07 1.14 1.19 1.22 1.25 1.30 1.35

90.01 95.00 19 1.19 1.28 1.34 1.38 1.43 1.53 1.56

95.01 100.00 20 0.60 1.16 1.31 1.46 1.61 1.76 1.91

(ii) The maximum contribution rate under this section for employers whose standard industrial classification code, or the equivalent code in a successor classification system as determined by the commissioner, is within major group "01," or is "091" or "203," may not exceed the following applicable rate when the rate under this section and under RCW 50.29.025 are added together:

Rate year Maximum rate

2000 5.40

2001 5.60

2002 5.80

2003 6.05

2004 6.30

(2) The commissioner shall adopt rules as necessary to implement this section.

(3) If the proposed amendment to Article II of the state Constitution (House Joint Resolution No. 4208, securing unemployment benefits) is not approved and ratified by the voters, this section is null and void.

Sec. 10. RCW 50.29.025 and 1995 c 4 s 2 are each amended to read as follows:

The contribution rate for each employer subject to contributions under RCW 50.24.010 shall be determined under this section.

(1) A fund balance ratio shall be determined by dividing the combined balances in the unemployment compensation fund and the state reserve trust account 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:

Interval of the

Fund Balance Ratio Effective

Expressed as a Percentage Tax Schedule

2.90 and above AA

((~~2.50 to 2.89~~)) 2.10 to 2.89 A

((~~2.10 to 2.49~~)) 1.70 to 2.09 B

((~~1.70 to 2.09~~)) 1.40 to 1.69 C

((~~1.30 to 1.69~~)) 1.00 to 1.39 D

((~~1.00 to 1.29~~)) 0.70 to 0.99 E

Less than ((~~1.00~~)) 0.70 F

(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) Except as provided in RCW 50.29.026 and section 11 of this act, the contribution rate for each employer in the array shall be the rate specified in the following tables 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 specified rate year:

((~~Percent of~~

~~Cumulative Schedules of Contributions Rates~~

~~Taxable Payrolls for Effective Tax Schedule~~

~~Rate~~

~~From To Class AA A B C D E F~~

~~0.00 5.00 1 0.48 0.48 0.58 0.98 1.48 1.88 2.48~~

~~5.01 10.00 2 0.48 0.48 0.78 1.18 1.68 2.08 2.68~~

~~10.01 15.00 3 0.58 0.58 0.98 1.38 1.78 2.28 2.88~~

~~15.01 20.00 4 0.58 0.78 1.18 1.58 1.98 2.48 3.08~~

~~20.01 25.00 5 0.78 0.98 1.38 1.78 2.18 2.68 3.18~~

~~25.01 30.00 6 0.98 1.18 1.58 1.98 2.38 2.78 3.28~~

~~30.01 35.00 7 1.08 1.38 1.78 2.18 2.58 2.98 3.38~~

~~35.01 40.00 8 1.28 1.58 1.98 2.38 2.78 3.18 3.58~~

~~40.01 45.00 9 1.48 1.78 2.18 2.58 2.98 3.38 3.78~~

~~45.01 50.00 10 1.68 1.98 2.38 2.78 3.18 3.58 3.98~~

~~50.01 55.00 11 1.98 2.28 2.58 2.98 3.38 3.78 4.08~~

~~55.01 60.00 12 2.18 2.48 2.78 3.18 3.58 3.98 4.28~~

~~60.01 65.00 13 2.38 2.68 2.98 3.38 3.78 4.18 4.48~~

~~65.01 70.00 14 2.58 2.88 3.18 3.58 3.98 4.38 4.68~~

~~70.01 75.00 15 2.88 3.08 3.38 3.78 4.18 4.58 4.78~~

~~75.01 80.00 16 3.08 3.28 3.58 3.98 4.38 4.68 4.88~~

~~80.01 85.00 17 3.28 3.48 3.78 4.18 4.58 4.88 4.98~~

~~85.01 90.00 18 3.68 3.88 4.18 4.58 4.88 4.98 5.18~~

~~90.01 95.00 19 4.08 4.28 4.58 4.98 5.08 5.18 5.38~~

~~95.01 100.00 20 5.40 5.40 5.40 5.40 5.40 5.40 5.40~~))

(a)(i) This subsection (5)(a) applies only if the proposed amendment to Article II of the state Constitution (House Joint Resolution No. 4208, securing unemployment benefits) is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not approved and ratified, this subsection (5)(a) is null and void.

For rate year 2000:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.12 0.12 0.14 0.24 0.37 0.47 0.62

5.01 10.00 2 0.12 0.12 0.19 0.29 0.42 0.52 0.67

10.01 15.00 3 0.14 0.14 0.24 0.34 0.44 0.57 0.72

15.01 20.00 4 0.14 0.19 0.29 0.38 0.47 0.59 0.74

20.01 25.00 5 0.18 0.22 0.30 0.40 0.51 0.62 0.77

25.01 30.00 6 0.22 0.27 0.33 0.44 0.54 0.64 0.79

30.01 35.00 7 0.26 0.29 0.38 0.49 0.59 0.69 0.82

35.01 40.00 8 0.28 0.32 0.43 0.54 0.64 0.74 0.84

40.01 45.00 9 0.32 0.36 0.48 0.59 0.70 0.79 0.87

45.01 50.00 10 0.35 0.39 0.52 0.63 0.75 0.84 0.89

50.01 55.00 11 0.41 0.45 0.56 0.68 0.80 0.87 0.92

55.01 60.00 12 0.47 0.52 0.63 0.74 0.85 0.92 0.97

60.01 65.00 13 0.54 0.58 0.68 0.80 0.90 0.97 1.04

65.01 70.00 14 0.61 0.67 0.73 0.84 0.95 1.02 1.09

70.01 75.00 15 0.69 0.73 0.79 0.88 1.00 1.08 1.14

75.01 80.00 16 0.76 0.80 0.86 0.94 1.05 1.12 1.19

80.01 85.00 17 0.85 0.90 0.97 1.04 1.13 1.21 1.23

85.01 90.00 18 1.07 1.14 1.19 1.22 1.25 1.30 1.35

90.01 95.00 19 1.19 1.28 1.34 1.38 1.43 1.53 1.56

95.01 100.00 20 5.40 5.40 5.40 5.40 5.40 5.40 5.40

For rate year 2001:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.24 0.24 0.29 0.49 0.74 0.94 1.24

5.01 10.00 2 0.24 0.24 0.39 0.59 0.84 1.04 1.34

10.01 15.00 3 0.29 0.29 0.49 0.69 0.89 1.14 1.44

15.01 20.00 4 0.29 0.39 0.58 0.75 0.94 1.19 1.49

20.01 25.00 5 0.35 0.43 0.60 0.81 1.01 1.24 1.54

25.01 30.00 6 0.44 0.54 0.66 0.88 1.09 1.29 1.59

30.01 35.00 7 0.51 0.57 0.77 0.97 1.19 1.39 1.64

35.01 40.00 8 0.57 0.64 0.86 1.08 1.29 1.49 1.69

40.01 45.00 9 0.64 0.72 0.95 1.17 1.40 1.59 1.74

45.01 50.00 10 0.71 0.77 1.04 1.26 1.50 1.69 1.79

50.01 55.00 11 0.83 0.89 1.12 1.35 1.60 1.74 1.84

55.01 60.00 12 0.95 1.04 1.26 1.48 1.70 1.84 1.94

60.01 65.00 13 1.08 1.16 1.36 1.60 1.80 1.94 2.09

65.01 70.00 14 1.22 1.34 1.46 1.69 1.90 2.04 2.19

70.01 75.00 15 1.39 1.47 1.57 1.76 2.00 2.16 2.29

75.01 80.00 16 1.52 1.60 1.72 1.89 2.10 2.24 2.39

80.01 85.00 17 1.70 1.80 1.95 2.08 2.26 2.41 2.46

85.01 90.00 18 2.14 2.27 2.37 2.45 2.50 2.60 2.70

90.01 95.00 19 2.37 2.57 2.67 2.76 2.86 3.06 3.11

95.01 100.00 20 5.40 5.40 5.40 5.40 5.40 5.40 5.40

For rate year 2002 and beyond, if contributions under section 4(1) of this act are in effect:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.36 0.36 0.44 0.74 1.11 1.41 1.86

5.01 10.00 2 0.36 0.36 0.59 0.89 1.26 1.56 2.01

10.01 15.00 3 0.44 0.44 0.74 1.04 1.34 1.71 2.16

15.01 20.00 4 0.44 0.59 0.87 1.13 1.41 1.79 2.24

20.01 25.00 5 0.53 0.65 0.91 1.22 1.52 1.86 2.31

25.01 30.00 6 0.67 0.81 1.00 1.33 1.64 1.94 2.39

30.01 35.00 7 0.77 0.86 1.16 1.46 1.79 2.09 2.46

35.01 40.00 8 0.86 0.97 1.29 1.62 1.94 2.24 2.54

40.01 45.00 9 0.96 1.08 1.43 1.76 2.10 2.39 2.61

45.01 50.00 10 1.07 1.16 1.56 1.90 2.25 2.54 2.69

50.01 55.00 11 1.25 1.34 1.68 2.03 2.40 2.61 2.76

55.01 60.00 12 1.43 1.57 1.90 2.22 2.55 2.76 2.91

60.01 65.00 13 1.62 1.74 2.05 2.41 2.70 2.91 3.14

65.01 70.00 14 1.84 2.01 2.19 2.54 2.85 3.06 3.29

70.01 75.00 15 2.09 2.21 2.36 2.64 3.00 3.25 3.44

75.01 80.00 16 2.29 2.40 2.59 2.84 3.15 3.36 3.59

80.01 85.00 17 2.56 2.70 2.93 3.12 3.40 3.62 3.70

85.01 90.00 18 3.21 3.41 3.56 3.68 3.76 3.91 4.06

90.01 95.00 19 3.56 3.86 4.01 4.15 4.30 4.60 4.67

95.01 100.00 20 5.40 5.40 5.40 5.40 5.40 5.40 5.40

For rate year 2002 and beyond, if contributions under section 4(1) of this act are not in effect:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.48 0.48 0.58 0.98 1.48 1.88 2.48

5.01 10.00 2 0.48 0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00 3 0.58 0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00 4 0.58 0.78 1.16 1.51 1.88 2.38 2.98

20.01 25.00 5 0.71 0.87 1.21 1.62 2.03 2.48 3.08

25.01 30.00 6 0.89 1.08 1.33 1.77 2.18 2.58 3.18

30.01 35.00 7 1.03 1.15 1.54 1.95 2.38 2.78 3.28

35.01 40.00 8 1.14 1.29 1.72 2.16 2.58 2.98 3.38

40.01 45.00 9 1.28 1.44 1.91 2.35 2.80 3.18 3.48

45.01 50.00 10 1.42 1.55 2.08 2.53 3.00 3.38 3.58

50.01 55.00 11 1.66 1.79 2.24 2.71 3.20 3.48 3.68

55.01 60.00 12 1.90 2.09 2.53 2.96 3.40 3.68 3.88

60.01 65.00 13 2.16 2.32 2.73 3.21 3.60 3.88 4.18

65.01 70.00 14 2.45 2.68 2.92 3.38 3.80 4.08 4.38

70.01 75.00 15 2.78 2.94 3.15 3.52 4.00 4.33 4.58

75.01 80.00 16 3.05 3.20 3.45 3.78 4.20 4.48 4.78

80.01 85.00 17 3.41 3.60 3.90 4.16 4.53 4.83 4.93

85.01 90.00 18 4.28 4.55 4.75 4.90 5.01 5.21 5.41

90.01 95.00 19 4.75 5.14 5.35 5.53 5.73 6.13 6.23

95.01 100.00 20 6.00 6.56 6.71 6.86 7.01 7.16 7.31

(ii) The maximum contribution rate for employers whose standard industrial classification code, or the equivalent code in a successor classification system as determined by the commissioner, is within major group "01," or is "091" or "203," may not exceed the following applicable rate:

Rate year Maximum rate

2000 5.40

2001 5.60

2002 5.80

2003 6.05

2004 6.30

(b)(i) This subsection (5)(b) applies if subsection (5)(a) is not in effect:

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.48 0.48 0.58 0.98 1.48 1.88 2.48

5.01 10.00 2 0.48 0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00 3 0.58 0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00 4 0.58 0.78 1.16 1.51 1.88 2.38 2.98

20.01 25.00 5 0.71 0.87 1.21 1.62 2.03 2.48 3.08

25.01 30.00 6 0.89 1.08 1.33 1.77 2.18 2.58 3.18

30.01 35.00 7 1.03 1.15 1.54 1.95 2.38 2.78 3.28

35.01 40.00 8 1.14 1.29 1.72 2.16 2.58 2.98 3.38

40.01 45.00 9 1.28 1.44 1.91 2.35 2.80 3.18 3.48

45.01 50.00 10 1.42 1.55 2.08 2.53 3.00 3.38 3.58

50.01 55.00 11 1.66 1.79 2.24 2.71 3.20 3.48 3.68

55.01 60.00 12 1.90 2.09 2.53 2.96 3.40 3.68 3.88

60.01 65.00 13 2.16 2.32 2.73 3.21 3.60 3.88 4.18

65.01 70.00 14 2.45 2.68 2.92 3.38 3.80 4.08 4.38

70.01 75.00 15 2.78 2.94 3.15 3.52 4.00 4.33 4.58

75.01 80.00 16 3.05 3.20 3.45 3.78 4.20 4.48 4.78

80.01 85.00 17 3.41 3.60 3.90 4.16 4.53 4.83 4.93

85.01 90.00 18 4.28 4.55 4.75 4.90 5.01 5.21 5.41

90.01 95.00 19 4.75 5.14 5.35 5.53 5.73 6.13 6.23

95.01 100.00 20 6.00 6.56 6.71 6.86 7.01 7.16 7.31

Rate year Maximum rate

2000 5.40

2001 5.60

2002 5.80

2003 6.05

2004 6.30

(c) Contractors engaging in construction activities under the terms of a written contract or contract addendum that was entered into prior to the effective date of this section may request the project owner or owner's agent to adjust payment provisions or contract terms to reflect the additional cost attributable to the contribution increases imposed by section 10, chapter . . ., Laws of 1999 1st sp. sess. (section 10 of this act). Such a request does not invalidate the original contract or contract addendum. Owners or owners' agents shall consider such a request for adjustment and equitably adjust the contract accordingly.

(6) The contribution rate for each employer not qualified to be in the array shall be as follows:

(a) 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 six-tenths percent~~)) a contribution rate two-tenths higher than that in rate class 20 for the applicable rate year, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to ((~~five and six-tenths percent for the current rate year~~)) a contribution rate two-tenths higher than that in rate class 20 for the applicable rate year; and

(b) ((The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

~~(c)~~)) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this ((~~subsection~~)) section, 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, or as found in a successor code recognized by the commissioner.

NEW SECTION. Sec. 11. A new section is added to chapter 50.29 RCW to read as follows:

(1) Beginning with tax rate year 2001, unemployment insurance socialized cost financing shall be implemented as follows:

(a) For the completed fiscal year prior to the applicable tax rate year, the commissioner shall determine:

(i) The unemployment insurance socialized cost rate, which is the total socialized cost for the fiscal year as a percent of total taxable wages paid in the fiscal year; and

(ii) The socialized cost deposit, which is the amount deposited during the fiscal year in the state reserve interest account under section 4 of this act, less the amount authorized for administrative costs.

(b) The amount of the socialized cost deposit shall be transferred to the unemployment compensation fund.

(c) Except for those qualified employers whose contribution rate for the applicable tax rate year under RCW 50.29.025(5) is less than the socialized cost rate or who are assigned a rate class for the applicable tax rate year in which the aggregate estimated contributions are less than the aggregate benefit charges for employers in the rate class, the contribution rate for each employer in the array shall be adjusted pro rata in proportion to the employer's experience to account for the socialized cost deposit.

(2) As used in this section:

(a) "Inactive account charges" means charges for unemployment benefits paid to a claimant whose former employer has gone out of business, or made similar changes in the employer's account, and from which contributions cannot be collected.

(b) "Ineffective account charges" means charges for unemployment benefits paid to claimants that exceed the contributions paid by the respective employer.

(c) "Noncharged benefits" means the unemployment benefits paid to claimants that are not charged to an employer's experience rating account under RCW 50.29.020.

(d) "Socialized cost" means the sum of the inactive account charges, the ineffective account charges, and the noncharged benefits.

NEW SECTION. Sec. 12. A new section is added to chapter 50.29 RCW to read as follows:

For the purpose of simplification of employer reports, the "combined contribution rate" shall be used in the calculation of employer taxes. The combined contribution rate shall include the regular contribution rate as determined under RCW 50.29.025, and the special contribution rates required under RCW 50.24.014 and section 4 of this act. A mention of the "combined contribution rate" may not be made on a tax form or publication unless the form or publication specifically identifies the specific contributions. The combined contribution rate may not be quoted on a form unless the specific component rates are also quoted. The sole purpose of the combined contribution rate is to allow an employer to perform a single calculation on a tax return rather than several separate calculations.

NEW SECTION. Sec. 13. A new section is added to chapter 43.33A RCW to read as follows:

Pursuant to section 4 of this act, the state investment board shall invest moneys in the state reserve trust account established in section 4 of this act with full power to establish investment policies for the account.

NEW SECTION. Sec. 14. (1) A joint legislative task force on unemployment insurance is established. The task force shall consist of nine members, as follows:

(a) One member from each of the two largest caucuses of the senate, appointed by the president of the senate;

(b) One member from each of the two largest caucuses of the house of representatives, appointed by the co-speakers of the house of representatives;

(c) Two members representing employees, each appointed from a list of at least three names per position, submitted by recognized state-wide organizations representing a cross section of employees, appointed jointly by the president of the senate and the co-speakers of the house of representatives;

(d) Two members representing employers, each appointed from a list of at least three names per position, submitted by recognized state-wide organizations representing a cross section of employers and industries, appointed jointly by the president of the senate and the co-speakers of the house of representatives; and

(e) One member representing the governor, who shall be a nonvoting member.

The task force shall choose its co-chairs from among its membership.

(2)(a) The employment security department shall report to the task force by December 1, 2001, with preliminary reports as requested by the task force prior to that date, on its review of the additional benefit program established in section 1 of this act. By January 1, 2002, the task force shall report to the appropriate committees of the legislature its recommendations regarding the additional benefits program.

(b) As determined by the task force, the task force may receive reports from the state trust account labor-management advisory board established in section 15 of this act.

(3) The employment security department shall cooperate and maintain a liaison with the task force. The task force shall use legislative facilities and staff from senate committee services and the office of program research, but may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of this study. Each nonlegislative member of the task force shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. All expenses of the task force, including travel, shall be paid jointly by the senate and the house of representatives.

(4) This section expires July 1, 2002.

NEW SECTION. Sec. 15. A new section is added to chapter 50.12 RCW to read as follows:

(1) A state trust account labor-management advisory board is established to oversee and provide recommendations regarding the programs funded through the state reserve trust account interest earnings. The board shall consist of eight members, as follows:

(a) Three members representing labor, each appointed by the commissioner from a list of names submitted by recognized state-wide organizations representing a cross section of employees;

(b) Three members representing business, each appointed by the commissioner from a list of names submitted by recognized state-wide organizations representing a cross section of employers and industries; and

(c) Two members representing the employment security department and the state investment board, respectively, who shall be nonvoting members.

(2) The advisory board shall choose its chair from among its membership. The board shall adopt bylaws and shall meet at least quarterly, and at such other times as determined by the chair or at the request of a majority of the voting members.

(3)(a) Each business member may cast a proxy vote or votes for any business member who is not present and who authorizes in writing the present member to cast such vote.

(b) Each labor member may cast a proxy vote or votes for any labor member who is not present and who authorizes in writing the present member to cast such vote.

(4)(a) The members of the board shall serve for terms of four years, the terms expiring on June 30th of the fourth year of the term, except that for initial members, one business member and one labor member shall be appointed to a two-year term, one business member and one labor member shall be appointed to a three-year term, and one business member and one labor member shall be appointed to a four-year term.

(b) Any vacancies among business and labor members shall be filled by the commissioner from nominations provided as required in subsection (1) of this section.

(5) The advisory board shall review and make recommendations regarding:

(a) The programs funded from the state reserve interest account. Recommendations may include, but are not limited to, distribution of the funding; programmatic changes, including eligibility criteria, benefit periods and levels, and program prioritization; and alternative funding mechanisms. For the purposes of funding an unemployment insurance additional benefits program beginning July 1, 2001, for dislocated workers in retraining, the commissioner shall adopt rules, after consultation with and receiving advice from the advisory board, that establish an additional benefits program allowing fifty-two weeks of combined regular and additional benefits, with eligibility criteria and program prioritization as determined by rule. By December 1, 2002, the advisory board shall develop a plan for a funding mechanism for unemployment insurance additional benefits for dislocated workers in retraining that requires, by July 1, 2003, equal sharing of the program's cost by employers and employees. The employment security department shall report the plan to the appropriate committees of the legislature by January 1, 2003; and

(b) The state reserve trust account, including, but not limited to, the size of the account and the contribution schedule.

After consultation with and receiving advice from the advisory board, the employment security department shall report recommendations, if any, to the joint legislative task force on unemployment insurance established in section 14 of this act, and to the appropriate committees of the legislature. The advisory board shall, as requested, provide reports to the joint task force.

(6) The employment security department shall provide necessary administrative support for the advisory board. Members of the board are entitled to reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

(7) If the proposed amendment to Article II of the state Constitution (House Joint Resolution No. 4208, securing unemployment benefits) is not approved and ratified by the voters at the next general election, this section is null and void.

NEW SECTION. Sec. 16. RCW 50.20.042 (Unemployed aerospace workers--Training) and 1993 c 226 s 7 are each repealed.

NEW SECTION. Sec. 17. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 18. 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. 19. Sections 1 and 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

NEW SECTION. Sec. 20. Sections 2 and 10 of this act take effect January 1, 2000, and apply to rate years beginning on or after January 1, 2000.

NEW SECTION. Sec. 21. Sections 4 through 9 and 11 through 13 of this act take effect January 1, 2000, and sections 9 and 12 of this act apply to tax rate years beginning on or after January 1, 2001, if the proposed amendment to Article II of the state Constitution (House Joint Resolution No. 4208, securing unemployment benefits) is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not approved and ratified, sections 4 through 9 and 11 through 13 of this act are void in their entirety."

HB 2235 - H AMD

By Representative

On page 1, line 2 of the title, after "contributions;" strike the remainder of the title and insert "amending RCW 50.24.010, 50.29.020, 50.04.070, 50.04.072, 50.16.020, and 50.29.025; reenacting and amending RCW 50.16.010; adding a new section to chapter 50.22 RCW; adding a new section to chapter 50.24 RCW; adding new sections to chapter 50.29 RCW; adding a new section to chapter 43.33A RCW; adding a new section to chapter 50.12 RCW; creating new sections; repealing RCW 50.20.042; providing an effective date; providing a contingent effective date; providing an expiration date; and declaring an emergency."