S-2078.3                   _______________________________________________

 

                                            SUBSTITUTE SENATE BILL 5203

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1993 Regular Session

 

By Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, Gaspard and Sheldon)

 

Read first time 03/03/93.

 

Providing for employment and training services.


          AN ACT Relating to employment and training; amending RCW 50.16.010, 50.16.010, 50.16.020, 50.16.020, 50.29.025, and 50.29.025; adding new sections to chapter 50.16 RCW; adding new sections to chapter 50.24 RCW; adding new sections to chapter 50.29 RCW; adding a new section to chapter 28C.18 RCW; creating new sections; making appropriations; providing an effective date; and providing an expiration date.

 

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

 

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

          (1) The economy of the state depends on a well-trained work force and a strong employment and unemployment system.  A well-trained work force generates the productivity employers need in order to compete in the global economy and to pay workers good wages.  A strong employment and unemployment system ameliorates the negative impacts of unemployment and matches the needs of employers with individuals seeking employment.

          (2) The legislature further finds that too many Washington workers are unemployed, many of whom need new or enhanced work force skills in order to meet current demand in the labor market.  With the increasing pace of economic change, employees must become life-long learners who periodically obtain additional education and training.  The state should provide unemployed workers a variety of effective services, including timely payment of unemployment benefits, job and career counseling, job referral services, and training.

          (3) At the same time, too many employers report problems finding workers with the right skills.  The state should provide employers with an effective training system and an efficient method for locating well-qualified workers.  The state should also maintain the administrative integrity of the state's unemployment insurance system.

          (4) Despite these needs, contributions paid by Washington employers specifically for the benefit of the unemployed in the state of Washington have increasingly been held hostage by the federal deficit.  42 U.S.C. Sec. 502(a) mandates that the secretary of labor must certify payment to each state the amounts necessary for the proper and efficient administration of employment security services.  However, this duty of the secretary of labor is now curtailed by other federal acts dealing with the federal deficit that have no relationship to the unemployment insurance program.  This results in uncertainty for the customers of Washington state employment security services.  Continued federal funding reductions may result in widespread closure of employment security offices, increased inability to administer an efficient and effective employment security system, and elimination of employment and training services for all but a handful of the most impoverished citizens.

          Therefore, the legislature finds it necessary and in the public interest to create an employment and training trust fund in order to provide state funding for employment and training services.  The legislature further finds it necessary and in the public interest to create a state reserve trust fund for the payment of unemployment insurance benefits in the event moneys in the unemployment compensation trust fund in the federal treasury are insufficient or unavailable for payment of unemployment insurance benefits within the state of Washington.

 

          NEW SECTION.  Sec. 2.  A new section is added to chapter 50.16 RCW to read as follows:

          (1) A separate and identifiable fund, separate and apart from all public moneys or funds of this state, to provide a reserve for payment of unemployment insurance benefits shall be established and administered under the direction of the commissioner. This fund shall be called the Washington benefit reserve trust fund.  This fund shall consist of contributions payable by each employer described under RCW 50.04.080 for any calendar quarter that begins on or after January 1, 1994, except employers as described by 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.  The amount of wages subject to contributions shall be determined according to RCW 50.24.010.  The tax rate applicable to wages paid during the calendar quarter shall be determined under section 7 of this act.

          (2) Contributions under this section are due and must be paid by an employer in accordance with rules adopted by the commissioner and may not be deducted, in whole or in part, from the remuneration of an individual in the employ of the employer.  A deduction in violation of this section is unlawful.

          (3) 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.

          (4) The Washington benefit reserve trust fund is irrevocably vested for the payment of unemployment insurance benefits.

          (5) The Washington benefit reserve trust fund shall be a separate and identifiable account in the state treasury. The state treasurer shall invest the funds and deposit the interest earned in the employment and training trust fund.

          (6) The Washington benefit reserve trust fund is not available for appropriation for a purpose other than the payment of unemployment benefits. Should the unemployment compensation fund have insufficient funds to meet benefit payment needs without requesting advances from the federal government, the necessary funds must be transferred to the unemployment compensation fund.  No payment may be made from the Washington benefit reserve trust fund nor transfers made except through transfer to the unemployment compensation fund.

          (7) Should the legislature appropriate funds from the Washington benefit reserve trust fund inconsistent with federal requirements for the use of the unemployment compensation fund or with the mandate of chapter . . ., Laws of 1993 (this act), the entire balance in the state reserve trust fund must be transferred immediately into the unemployment insurance trust fund.

 

          NEW SECTION.  Sec. 3.  A new section is added to chapter 50.24 RCW to read as follows:

          Employment and training trust fund contributions to the employment and training trust fund 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 one-tenth of one percent for rate year 1994, seventy-eight one-thousandths of one percent for rate year 1995, five one-hundredths of one percent for rate year 1996, and sixteen one-thousandths of one percent for rate year 1997.  The amount of wages subject to tax shall be determined under RCW 50.24.010.

 

          NEW SECTION.  Sec. 4.  A new section is added to chapter 50.16 RCW to read as follows:

          There is hereby established the employment and training trust fund.  All moneys in this fund are irrevocably vested for the administration of this title.  The employment and training trust fund shall consist of all moneys from employment and training trust fund contributions as established in section 3 of this act and all moneys received as interest earned on the investments made by the state treasurer from the Washington benefit reserve trust fund.  The treasurer of the employment security department shall deposit, administer, and disburse all moneys in the fund under rules adopted by the commissioner and RCW 43.01.050 and 43.84.092 are not applicable to this fund.  The treasurer of the employment security department shall be the treasurer of the employment and training trust fund as described in RCW 50.16.020 and shall give a bond conditioned upon the faithful performance of his or her duties in connection with the fund.  All sums recovered on the official bond for losses sustained by the employment and training trust fund must be deposited in the fund.  Notwithstanding any provision of this section, all moneys received and deposited in the fund under chapter . . ., Laws of 1993 (this act), remain part of the employment and training trust fund and may be used solely for the following purposes:

          (1) Providing training and related support services to individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months;

          (2) Maintaining and improving quality of unemployment insurance service;

          (3) Assisting workers in finding employment through job referral, job development, counseling, and referral to training resources;

          (4) Providing access to services in locations remote from permanent office locations;

          (5) Maintaining and improving service delivery to speed appropriate payment of unemployment insurance benefits;

          (6) Obtaining labor market information necessary for the administration of the unemployment insurance program and to assist unemployed workers in finding employment;

          (7) Performing research to determine effectiveness of unemployment insurance programs and to determine whether program changes would benefit workers and employers;

          (8) Collecting contributions for the benefit reserve trust fund and the employment and training trust fund;

          (9) Providing related services for the benefit of individuals eligible for programs administered by the employment security department; and

          (10) Improving service through improved use of information technology.

 

          NEW SECTION.  Sec. 5.  The treasurer of the employment security department shall disburse the amounts appropriated by sections 16 and 17, chapter . . ., Laws of 1993 (sections 16 and 17 of this act) to the state board for community and technical colleges.  The community and technical college system may contract or otherwise work in partnership with other public and private providers of training services to serve the individuals eligible for training under chapter . . ., Laws of 1993 (this act).  These funds shall be allotted for, and only for, training programs and related support services that:

          (1) Are consistent with work force training priorities and based upon the comprehensive plan for work force training developed by the work force training and education coordinating board.  The state board for community and technical colleges shall develop a plan for use and evaluation of these funds which is to be approved by the work force training and education coordinating board for consistency with their work force priorities.  Further, the state board for community and technical colleges shall report to the work force training and education coordinating board and the legislature annually on the progress and results of the training and support services provided to eligible participants;

          (2) Provide increased enrollments for individuals who have been terminated or have received a notice of termination from employment, and who are eligible for or have exhausted their entitlement to unemployment compensation benefits within the previous twenty-four months, with first priority given to individuals who are unlikely to return to employment in the individuals' principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry; and

          (3) Provide increased enrollments and support services that do not replace or supplant any existing enrollments, programs, support services, or funding sources.

 

          NEW SECTION.  Sec. 6.  A new section is added to chapter 50.24 RCW to read as follows:

          (1) The Washington benefit reserve trust fund balance ratio shall be determined by dividing the balance in the state reserve trust fund as of the June 30th immediately preceding the rate year by the total taxable wages 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) If the Washington benefit reserve trust fund balance ratio exceeds two percent on the date of calculation, any amount in excess of two percent shall be transferred to the unemployment compensation trust fund.

 

          NEW SECTION.  Sec. 7.  A new section is added to chapter 50.29 RCW to read as follows:

          The Washington benefit reserve trust fund contribution rate for each employer shall be determined as follows:

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

          (2) The Washington benefit reserve trust fund contribution rate for an employer shall be the rate specified in the following table for the rate class to which the employer has been assigned, as determined under RCW 50.29.025(5) within the tax schedule which is to be in effect during the rate year:

 

                                 Percent of

                               Cumulative                             Schedule of Contribution Rates for

                           Taxable Payrolls                                    Effective Tax Schedule

                                                    Rate

                  From              To         Class:                 A             B             C             D             E             F

 

                   0.00              5.00            1                 0.10          0.12          0.20          0.30          0.38          0.50

                   5.01             10.00            2                 0.10          0.16          0.24          0.34          0.42          0.54

                  10.01             15.00            3                 0.12          0.20          0.28          0.36          0.46          0.58

                  15.01             20.00            4                 0.16          0.24          0.32          0.40          0.50          0.62

                  20.01             25.00            5                 0.20          0.28          0.36          0.44          0.54          0.64

                  25.01             30.00            6                 0.24          0.32          0.40          0.48          0.56          0.66

                  30.01             35.00            7                 0.28          0.36          0.44          0.52          0.60          0.68

                  35.01             40.00            8                 0.32          0.40          0.48          0.56          0.64          0.72

                  40.01             45.00            9                 0.36          0.44          0.52          0.60          0.68          0.76

                  45.01             50.00          10                 0.40          0.48          0.56          0.64          0.72          0.80

                  50.01             55.00          11                 0.46          0.52          0.60          0.68          0.76          0.82

                  55.01             60.00          12                 0.50          0.56          0.64          0.72          0.80          0.86

                  60.01             65.00          13                 0.54          0.60          0.68          0.76          0.84          0.90

                  65.01             70.00          14                 0.58          0.64          0.72          0.80          0.88          0.94

                  70.01             75.00          15                 0.62          0.68          0.76          0.84          0.92          0.96

                  75.01             80.00          16                 0.66          0.72          0.80          0.88          0.94          0.98

                  80.01             85.00          17                 0.70          0.76          0.84          0.92          0.98          1.00

                  85.01             90.00          18                 0.78          0.84          0.92          0.98          1.00          1.04

                  90.01             95.00          19                 0.86          0.92          1.00          1.02          1.04          1.08

                  95.01           100.00          20                 0              0              0              0              0              0

 

            (3) The contribution rate for an employer not qualified to be in the array shall be determined as follows:

            (a) An employer who does not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of one and eight one-hundredths percent, except employers who have an approved agency‑deferred payment contract by September 30 of the previous rate year.  If an employer with an approved agency‑deferred payment contract fails to make one of the succeeding deferred payments or fails to submit a succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to one and eight one-hundredths percent for the current rate year;

            (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 0.5 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 twenty percent of the average industry rate as determined by the commissioner, but the rate may not be less than two‑tenths of one percent.  The calculated rate shall be rounded to the nearest one-hundredth percent.  Assignment of an employer 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. 8.  RCW 50.16.010 and 1991 sp.s. c 13 s 59 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, a Washington benefit reserve trust fund, an employment and training trust 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 and 43.84.092 shall not be applicable.

            (1) The unemployment compensation fund shall consist of

            (((1))) (a) all contributions 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.

            (2)(a) The administrative contingency fund shall consist of:

            (i) All interest on delinquent contributions collected pursuant to this title((,));

            (ii) All fines and penalties collected pursuant to the provisions of this title((,));

            (iii) All sums recovered on official bonds for losses sustained by the fund((,)); and

            (iv) 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.

            Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in RCW ((74.09.035, 74.09.510, 74.09.520, and 74.09.700)) 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.

            (3) The Washington benefit reserve trust fund shall consist of those contributions collected under section 2 of this act, and shall be used in accordance with section 2 of this act.

            (4) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 3 of this act and interest earned and deposited by the state treasurer in accordance with section 2 of this act.

 

          Sec. 9.  RCW 50.16.010 and 1993 c .. s 8 (section 8 of this act) 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, ((a Washington benefit reserve trust fund, an employment and training trust 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 ((and 43.84.092)) shall not be applicable.

            (((1))) The unemployment compensation fund shall consist of

            (((a))) (1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

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

            (((c))) (3) all earnings of such property or securities,

            (((d))) (4) 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,

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

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

            (((g))) (7) 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

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

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

            (((2)(a))) The administrative contingency fund shall consist of((:

            (i))) all interest on delinquent contributions collected pursuant to this title((;)),

            (((ii))) all fines and penalties collected pursuant to the provisions of this title((;)),

            (((iii))) all sums recovered on official bonds for losses sustained by the fund((;)), and

            (((iv))) 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:

            (((i))) (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.

            (((ii))) (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 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.

            (((3) The Washington benefit reserve trust fund shall consist of those contributions collected under section 2 of this act, and shall be used in accordance with section 2 of this act.

            (4) The employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with section 3 of this act and interest earned and deposited by the state treasurer in accordance with section 2 of this act.))

 

          Sec. 10.  RCW 50.16.020 and 1983 1st ex.s. c 23 s 10 are each amended to read as follows:

            The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the Washington benefit reserve trust fund, the employment and training trust fund, 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.  ((He)) 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.

 

          Sec. 11.  RCW 50.16.020 and 1993 c .. s 10 (section 10 of this act) are each amended to read as follows:

            The commissioner shall designate a treasurer and custodian of the unemployment compensation fund((, the Washington benefit reserve trust fund, the employment and training trust fund,)) 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.

 

          Sec. 12.  RCW 50.29.025 and 1990 c 245 s 7 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 fund balance ratio, expressed as a percentage, shall be increased by 1.20 to determine the adjusted fund balance ratio.  However, the increase for rate years 1994 and 1995 shall be 0.00, for rate year 1996 shall be 0.40, for rate year 1997 shall be 0.60, and for rate year 1998 shall be 1.00.

            (3) The interval of the adjusted fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (((5))) (6) 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

 

                        3.40 and above                                                                             A

                        2.90 to 3.39                                                                                 B

                        2.40 to 2.89                                                                                 C

                        1.90 to 2.39                                                                                 D

                        1.40 to 1.89                                                                                 E

                        Less than 1.40                                                                             F

 

            (((3))) (4) 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))) (5) 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))) (6) 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))) (6) 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))) (5) of this section, within the tax schedule which is to be in effect during the specified rate year:

 

  For Rate Year 1994:

             Percent of

             Cumulative                                Schedule((s)) of Contribution((s)) Rates    Taxable Payrolls                              for Effective Tax Schedule

                                                Rate

From                 To                     Class     A     B     C     D     E     F

 

((0.00    5.00                     1                     0.48       0.58  0.98  1.48  1.88  2.48

 5.01    10.00                     2                     0.48  0.78  1.18  1.68  2.08  2.68

10.01    15.00                     3                     0.58  0.98  1.38  1.78  2.28  2.88

15.01    20.00                     4                     0.78  1.18  1.58  1.98  2.48  3.08

20.01    25.00                     5                     0.98  1.38  1.78  2.18  2.68  3.18

25.01    30.00                     6                     1.18  1.58  1.98  2.38  2.78  3.28

30.01    35.00                     7                     1.38  1.78  2.18  2.58  2.98  3.38

35.01    40.00                     8                     1.58       1.98  2.38  2.78  3.18  3.58

40.01    45.00                     9                     1.78  2.18  2.58  2.98  3.38  3.78

45.01    50.00                   10                    1.98  2.38  2.78  3.18  3.58  3.98

50.01    55.00                   11                    2.28  2.58  2.98  3.38  3.78  4.08

55.01    60.00                   12                    2.48  2.78  3.18  3.58  3.98  4.28

60.01    65.00                   13                    2.68  2.98  3.38  3.78  4.18  4.48

65.01    70.00                   14                    2.88  3.18  3.58  3.98  4.38  4.68

70.01    75.00                   15                    3.08  3.38  3.78  4.18  4.58  4.78

75.01    80.00                   16                    3.28  3.58  3.98  4.38  4.68  4.88

80.01    85.00                   17                    3.48  3.78  4.18  4.58  4.88  4.98

85.01    90.00                   18                    3.88  4.18  4.58  4.88  4.98  5.18

90.01    95.00                   19                    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))

 

                   0.00              5.00            1                 0.28          0.36          0.68          1.08          1.40          1.88

                   5.01             10.00            2                 0.28          0.52          0.84          1.24          1.56          2.04

                  10.01             15.00            3                 0.36          0.68          1.00          1.32          1.72          2.20

                  15.01             20.00            4                 0.52          0.84          1.16          1.48          1.88          2.36

                  20.01             25.00            5                 0.68          1.00          1.32          1.64          2.04          2.44

                  25.01             30.00            6                 0.84          1.16          1.48          1.80          2.12          2.52

                  30.01             35.00            7                 1.00          1.32          1.64          1.96          2.28          2.60

                  35.01             40.00            8                 1.16          1.48          1.80          2.12          2.44          2.76

                  40.01             45.00            9                 1.32          1.64          1.96          2.28          2.60          2.92

                  45.01             50.00          10                 1.48          1.80          2.12          2.44          2.76          3.08

                  50.01             55.00          11                 1.72          1.96          2.28          2.60          2.92          3.16

                  55.01             60.00          12                 1.88          2.12          2.44          2.76          3.08          3.32

                  60.01             65.00          13                 2.04          2.28          2.60          2.92          3.24          3.48

                  65.01             70.00          14                 2.20          2.44          2.76          3.08          3.40          3.64

                  70.01             75.00          15                 2.36          2.60          2.92          3.24          3.56          3.72

                  75.01             80.00          16                 2.52          2.76          3.08          3.40          3.64          3.80

                  80.01             85.00          17                 2.68          2.92          3.24          3.56          3.80          3.88

                  85.01             90.00          18                 3.00          3.24          3.56          3.80          3.88          4.04

                  90.01             95.00          19                 3.32          3.56          3.88          3.96          4.04          4.20

                  95.01           100.00          20                 5.40          5.40          5.40          5.40          5.40          5.40

 

  For Rate Year 1995:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A      B      C      D      E      F

 

 0.00     5.00                        1                     0.302  0.382  0.702  1.102  1.422  1.902

 5.01    10.00                        2                     0.302  0.542  0.862  1.262  1.582  2.062

10.01    15.00                       3                     0.382  0.702  1.022  1.342  1.742  2.222

15.01    20.00                       4                     0.542  0.862  1.182  1.502  1.902  2.382

20.01    25.00                       5                     0.702  1.022  1.342  1.662  2.062  2.462

25.01    30.00                       6                     0.862  1.182  1.502  1.822  2.142  2.542

30.01    35.00                       7                     1.022  1.342  1.662  1.982  2.302  2.622

35.01    40.00                       8                     1.182  1.502  1.822  2.142  2.462  2.782

40.01    45.00                       9                     1.342  1.662  1.982  2.302  2.622  2.942

45.01    50.00                     10                    1.502  1.822  2.142  2.462  2.782  3.102

50.01    55.00                     11                    1.742  1.982  2.302  2.622  2.942  3.182

55.01    60.00                     12                    1.902  2.142  2.462  2.782  3.102  3.342

60.01    65.00                     13                    2.062  2.302  2.622  2.942  3.262  3.502

65.01    70.00                     14                    2.222  2.462  2.782  3.102  3.422  3.662

70.01    75.00                     15                    2.382  2.622  2.942  3.262  3.582  3.742

75.01    80.00                     16                    2.542  2.782  3.102  3.422  3.662  3.822

80.01    85.00                     17                    2.702  2.942  3.262  3.582  3.822  3.902

85.01    90.00                     18                    3.022  3.262  3.582  3.822  3.902  4.062

90.01    95.00                     19                    3.342  3.582  3.902  3.982  4.062  4.222

95.01   100.00                     20                    5.400  5.400  5.400  5.400  5.400  5.400

 

  For Rate Year 1996:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A     B     C     D     E     F

 

 0.00     5.00                        1                     0.33  0.41  0.73  1.13  1.45  1.93

 5.01    10.00                        2                     0.33  0.57  0.89  1.29  1.61  2.09

10.01    15.00                       3                     0.41  0.73  1.05  1.37  1.77  2.25

15.01    20.00                       4                     0.57  0.89  1.21  1.53  1.93  2.41

20.01    25.00                       5                     0.73  1.05  1.37  1.69  2.09  2.49

25.01    30.00                       6                     0.89  1.21  1.53  1.85  2.17  2.57

30.01    35.00                       7                     1.05  1.37  1.69  2.01  2.33  2.65

35.01    40.00                       8                     1.21  1.53  1.85  2.17  2.49  2.81

40.01    45.00                       9                     1.37  1.69  2.01  2.33  2.65  2.97

45.01    50.00                     10                    1.53  1.85  2.17  2.49  2.81  3.13

50.01    55.00                     11                    1.77  2.01  2.33  2.65  2.97  3.21

55.01    60.00                     12                    1.93  2.17  2.49  2.81  3.13  3.37

60.01    65.00                     13                    2.09  2.33  2.65  2.97  3.29  3.53

65.01    70.00                     14                    2.25  2.49  2.81  3.13  3.45  3.69

70.01    75.00                     15                    2.41  2.65  2.97  3.29  3.61  3.77

75.01    80.00                     16                    2.57  2.81  3.13  3.45  3.69  3.85

80.01    85.00                     17                    2.73  2.97  3.29  3.61  3.85  3.93

85.01    90.00                     18                    3.05  3.29  3.61  3.85  3.93  4.09

90.01    95.00                     19                    3.37  3.61  3.93  4.01  4.09  4.25

95.01   100.00                     20                    5.40  5.40  5.40  5.40  5.40  5.40

 

  For Rate Year 1997:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A      B      C      D      E      F

 

 0.00     5.00                        1                     0.364  0.444  0.764  1.164  1.484  1.964

 5.01    10.00                        2                     0.364  0.604  0.924  1.324  1.644  2.124

10.01    15.00                       3                     0.444  0.764  1.084  1.404  1.804  2.284

15.01    20.00                       4                     0.604  0.924  1.244  1.564  1.964  2.444

20.01    25.00                       5                     0.764  1.084  1.404  1.724  2.124  2.524

25.01    30.00                       6                     0.924  1.244  1.564  1.884  2.204  2.604

30.01    35.00                       7                     1.084  1.404  1.724  2.044  2.364  2.684

35.01    40.00                       8                     1.244  1.564  1.884  2.204  2.524  2.844

40.01    45.00                       9                     1.404  1.724  2.044  2.364  2.684  3.004

45.01    50.00                     10                    1.564  1.884  2.204  2.524  2.844  3.164

50.01    55.00                     11                    1.804  2.044  2.364  2.684  3.004  3.244

55.01    60.00                     12                    1.964  2.204  2.524  2.844  3.164  3.404

60.01    65.00                     13                    2.124  2.364  2.684  3.004  3.324  3.564

65.01    70.00                     14                    2.284  2.524  2.844  3.164  3.484  3.724

70.01    75.00                     15                    2.444  2.684  3.004  3.324  3.644  3.804

75.01    80.00                     16                    2.604  2.844  3.164  3.484  3.724  3.884

80.01    85.00                     17                    2.764  3.004  3.324  3.644  3.884  3.964

85.01    90.00                     18                    3.084  3.324  3.644  3.884  3.964  4.124

90.01    95.00                     19                    3.404  3.644  3.964  4.044  4.124  4.284

95.01   100.00                     20                    5.400  5.400  5.400  5.400  5.400  5.400

 

  For Rate Year 1998 and Beyond:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A     B     C     D     E     F

 

 0.00     5.00                        1                     0.38  0.46  0.78  1.18  1.50  1.98

 5.01    10.00                        2                     0.38  0.62  0.94  1.34  1.66  2.14

10.01    15.00                       3                     0.46  0.78  1.10  1.42  1.82  2.30

15.01    20.00                       4                     0.62  0.94  1.26  1.58  1.98  2.46

20.01    25.00                       5                     0.78  1.10  1.42  1.74  2.14  2.54

25.01    30.00                       6                     0.94  1.26  1.58  1.90  2.22  2.62

30.01    35.00                       7                     1.10  1.42  1.74  2.06  2.38  2.70

35.01    40.00                       8                     1.26  1.58  1.90  2.22  2.54  2.86

40.01    45.00                       9                     1.42  1.74  2.06  2.38  2.70  3.02

45.01    50.00                     10                    1.58  1.90  2.22  2.54  2.86  3.18

50.01    55.00                     11                    1.82  2.06  2.38  2.70  3.02  3.26

55.01    60.00                     12                    1.98  2.22  2.54  2.86  3.18  3.42

60.01    65.00                     13                    2.14  2.38  2.70  3.02  3.34  3.58

65.01    70.00                     14                    2.30  2.54  2.86  3.18  3.50  3.74

70.01    75.00                     15                    2.46  2.70  3.02  3.34  3.66  3.82

75.01    80.00                     16                    2.62  2.86  3.18  3.50  3.74  3.90

80.01    85.00                     17                    2.78  3.02  3.34  3.66  3.90  3.98

85.01    90.00                     18                    3.10  3.34  3.66  3.90  3.98  4.14

90.01    95.00                     19                    3.42  3.66  3.98  4.06  4.14  4.30

95.01   100.00                     20                    5.40  5.40  5.40  5.40  5.40  5.40

 

               (((6))) (7) 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 four-tenths)) four and thirty-two one-hundredths percent, 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 four-tenths)) four and thirty-two one-hundredths percent for the current rate year;

               (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)) 2.0 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, 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. 13.  RCW 50.29.025 and 1993 c.. s 12 (section 12 of this act) 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 fund balance ratio, expressed as a percentage, shall be increased by 1.20 to determine the adjusted fund balance ratio.  However, the increase for rate years 1994 and 1995 shall be 0.00, for rate year 1996 shall be 0.40, for rate year 1997 shall be 0.60, and for rate year 1998 shall be 1.00.

               (3))) The interval of the ((adjusted)) fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (((6))) (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

 

                           3.40 and above                                                                             A

                           2.90 to 3.39                                                                                 B

                           2.40 to 2.89                                                                                 C

                           1.90 to 2.39                                                                                 D

                           1.40 to 1.89                                                                                 E

                           Less than 1.40                                                                             F

 

               (((4))) (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.

               (((5))) (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 (((6))) (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.

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

 

  ((For Rate Year 1994:))

                Percent of

                Cumulative                                Schedules of Contributions Rates                Taxable Payrolls             for Effective Tax Schedule

                                                   Rate

From                   To                     Class     A     B     C     D     E     F

 

                 ((0.00              5.00            1                 0.28          0.36          0.68          1.08          1.40          1.88

                   5.01             10.00            2                 0.28          0.52          0.84          1.24          1.56          2.04

                  10.01             15.00            3                 0.36          0.68          1.00          1.32          1.72          2.20

                  15.01             20.00            4                 0.52          0.84          1.16          1.48          1.88          2.36

                  20.01             25.00            5                 0.68          1.00          1.32          1.64          2.04          2.44

                  25.01             30.00            6                 0.84          1.16          1.48          1.80          2.12          2.52

                  30.01             35.00            7                 1.00          1.32          1.64          1.96          2.28          2.60

                  35.01             40.00            8                 1.16          1.48          1.80          2.12          2.44          2.76

                  40.01             45.00            9                 1.32          1.64          1.96          2.28          2.60          2.92

                  45.01             50.00          10                 1.48          1.80          2.12          2.44          2.76          3.08

                  50.01             55.00          11                 1.72          1.96          2.28          2.60          2.92          3.16

                  55.01             60.00          12                 1.88          2.12          2.44          2.76          3.08          3.32

                  60.01             65.00          13                 2.04          2.28          2.60          2.92          3.24          3.48

                  65.01             70.00          14                 2.20          2.44          2.76          3.08          3.40          3.64

                  70.01             75.00          15                 2.36          2.60          2.92          3.24          3.56          3.72

                  75.01             80.00          16                 2.52          2.76          3.08          3.40          3.64          3.80

                  80.01             85.00          17                 2.68          2.92          3.24          3.56          3.80          3.88

                  85.01             90.00          18                 3.00          3.24          3.56          3.80          3.88          4.04

                  90.01             95.00          19                 3.32          3.56          3.88          3.96          4.04          4.20

                  95.01           100.00          20                 5.40          5.40          5.40          5.40          5.40          5.40

 

  For Rate Year 1995:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A      B      C      D      E      F

 

 0.00     5.00                        1                     0.302  0.382  0.702  1.102  1.422  1.902

 5.01    10.00                        2                     0.302  0.542  0.862  1.262  1.582  2.062

10.01    15.00                       3                     0.382  0.702  1.022  1.342  1.742  2.222

15.01    20.00                       4                     0.542  0.862  1.182  1.502  1.902  2.382

20.01    25.00                       5                     0.702  1.022  1.342  1.662  2.062  2.462

25.01    30.00                       6                     0.862  1.182  1.502  1.822  2.142  2.542

30.01    35.00                       7                     1.022  1.342  1.662  1.982  2.302  2.622

35.01    40.00                       8                     1.182  1.502  1.822  2.142  2.462  2.782

40.01    45.00                       9                     1.342  1.662  1.982  2.302  2.622  2.942

45.01    50.00                     10                    1.502  1.822  2.142  2.462  2.782  3.102

50.01    55.00                     11                    1.742  1.982  2.302  2.622  2.942  3.182

55.01    60.00                     12                    1.902  2.142  2.462  2.782  3.102  3.342

60.01    65.00                     13                    2.062  2.302  2.622  2.942  3.262  3.502

65.01    70.00                     14                    2.222  2.462  2.782  3.102  3.422  3.662

70.01    75.00                     15                    2.382  2.622  2.942  3.262  3.582  3.742

75.01    80.00                     16                    2.542  2.782  3.102  3.422  3.662  3.822

80.01    85.00                     17                    2.702  2.942  3.262  3.582  3.822  3.902

85.01    90.00                     18                    3.022  3.262  3.582  3.822  3.902  4.062

90.01    95.00                     19                    3.342  3.582  3.902  3.982  4.062  4.222

95.01   100.00                     20                    5.400  5.400  5.400  5.400  5.400  5.400

 

  For Rate Year 1996:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A     B     C     D     E     F

 

 0.00     5.00                        1                     0.33  0.41  0.73  1.13  1.45  1.93

 5.01    10.00                        2                     0.33  0.57  0.89  1.29  1.61  2.09

10.01    15.00                       3                     0.41  0.73  1.05  1.37  1.77  2.25

15.01    20.00                       4                     0.57  0.89  1.21  1.53  1.93  2.41

20.01    25.00                       5                     0.73  1.05  1.37  1.69  2.09  2.49

25.01    30.00                       6                     0.89  1.21  1.53  1.85  2.17  2.57

30.01    35.00                       7                     1.05  1.37  1.69  2.01  2.33  2.65

35.01    40.00                       8                     1.21  1.53  1.85  2.17  2.49  2.81

40.01    45.00                       9                     1.37  1.69  2.01  2.33  2.65  2.97

45.01    50.00                     10                    1.53  1.85  2.17  2.49  2.81  3.13

50.01    55.00                     11                    1.77  2.01  2.33  2.65  2.97  3.21

55.01    60.00                     12                    1.93  2.17  2.49  2.81  3.13  3.37

60.01    65.00                     13                    2.09  2.33  2.65  2.97  3.29  3.53

65.01    70.00                     14                    2.25  2.49  2.81  3.13  3.45  3.69

70.01    75.00                     15                    2.41  2.65  2.97  3.29  3.61  3.77

75.01    80.00                     16                    2.57  2.81  3.13  3.45  3.69  3.85

80.01    85.00                     17                    2.73  2.97  3.29  3.61  3.85  3.93

85.01    90.00                     18                    3.05  3.29  3.61  3.85  3.93  4.09

90.01    95.00                     19                    3.37  3.61  3.93  4.01  4.09  4.25

95.01   100.00                     20                    5.40  5.40  5.40  5.40  5.40  5.40

 

  For Rate Year 1997:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A      B      C      D      E      F

 

 0.00     5.00                        1                     0.364  0.444  0.764  1.164  1.484  1.964

 5.01    10.00                        2                     0.364  0.604  0.924  1.324  1.644  2.124

10.01    15.00                       3                     0.444  0.764  1.084  1.404  1.804  2.284

15.01    20.00                       4                     0.604  0.924  1.244  1.564  1.964  2.444

20.01    25.00                       5                     0.764  1.084  1.404  1.724  2.124  2.524

25.01    30.00                       6                     0.924  1.244  1.564  1.884  2.204  2.604

30.01    35.00                       7                     1.084  1.404  1.724  2.044  2.364  2.684

35.01    40.00                       8                     1.244  1.564  1.884  2.204  2.524  2.844

40.01    45.00                       9                     1.404  1.724  2.044  2.364  2.684  3.004

45.01    50.00                     10                    1.564  1.884  2.204  2.524  2.844  3.164

50.01    55.00                     11                    1.804  2.044  2.364  2.684  3.004  3.244

55.01    60.00                     12                    1.964  2.204  2.524  2.844  3.164  3.404

60.01    65.00                     13                    2.124  2.364  2.684  3.004  3.324  3.564

65.01    70.00                     14                    2.284  2.524  2.844  3.164  3.484  3.724

70.01    75.00                     15                    2.444  2.684  3.004  3.324  3.644  3.804

75.01    80.00                     16                    2.604  2.844  3.164  3.484  3.724  3.884

80.01    85.00                     17                    2.764  3.004  3.324  3.644  3.884  3.964

85.01    90.00                     18                    3.084  3.324  3.644  3.884  3.964  4.124

90.01    95.00                     19                    3.404  3.644  3.964  4.044  4.124  4.284

95.01   100.00                     20                    5.400  5.400  5.400  5.400  5.400  5.400

 

  For Rate Year 1998 and Beyond:

               Percent of

               Cumulative                                 Schedule of Contribution Rates for

                Taxable Payrolls                                     Effective Tax Schedule

                                                   Rate

From                   To                     Class     A     B     C     D     E     F

 

 0.00     5.00                        1                     0.38  0.46  0.78  1.18  1.50  1.98

 5.01    10.00                        2                     0.38  0.62  0.94  1.34  1.66  2.14

10.01    15.00                       3                     0.46  0.78  1.10  1.42  1.82  2.30

15.01    20.00                       4                     0.62  0.94  1.26  1.58  1.98  2.46

20.01    25.00                       5                     0.78  1.10  1.42  1.74  2.14  2.54

25.01    30.00                       6                     0.94  1.26  1.58  1.90  2.22  2.62

30.01    35.00                       7                     1.10  1.42  1.74  2.06  2.38  2.70

35.01    40.00                       8                     1.26  1.58  1.90  2.22  2.54  2.86

40.01    45.00                       9                     1.42  1.74  2.06  2.38  2.70  3.02

45.01    50.00                     10                    1.58  1.90  2.22  2.54  2.86  3.18

50.01    55.00                     11                    1.82  2.06  2.38  2.70  3.02  3.26

55.01    60.00                     12                    1.98  2.22  2.54  2.86  3.18  3.42

60.01    65.00                     13                    2.14  2.38  2.70  3.02  3.34  3.58

65.01    70.00                     14                    2.30  2.54  2.86  3.18  3.50  3.74

70.01    75.00                     15                    2.46  2.70  3.02  3.34  3.66  3.82

75.01    80.00                     16                    2.62  2.86  3.18  3.50  3.74  3.90

80.01    85.00                     17                    2.78  3.02  3.34  3.66  3.90  3.98

85.01    90.00                     18                    3.10  3.34  3.66  3.90  3.98  4.14

90.01    95.00                     19                    3.42  3.66  3.98  4.06  4.14  4.30

95.01   100.00                     20                    5.40  5.40  5.40  5.40  5.40  5.40

               (7)))

 0.00     5.00                        1                     0.48  0.58  0.98  1.48  1.88  2.48

 5.01    10.00                        2                     0.48  0.78  1.18  1.68  2.08  2.68

10.01    15.00                       3                     0.58  0.98  1.38  1.78  2.28  2.88

15.01    20.00                       4                     0.78  1.18  1.58  1.98  2.48  3.08

20.01    25.00                       5                     0.98  1.38  1.78  2.18  2.68  3.18

25.01    30.00                       6                     1.18  1.58  1.98  2.38  2.78  3.28

30.01    35.00                       7                     1.38  1.78  2.18  2.58  2.98  3.38

35.01    40.00                       8                     1.58       1.98  2.38  2.78  3.18  3.58

40.01    45.00                       9                     1.78  2.18  2.58  2.98  3.38  3.78

45.01    50.00                     10                    1.98  2.38  2.78  3.18  3.58  3.98

50.01    55.00                     11                    2.28  2.58  2.98  3.38  3.78  4.08

55.01    60.00                     12                    2.48  2.78  3.18  3.58  3.98  4.28

60.01    65.00                     13                    2.68  2.98  3.38  3.78  4.18  4.48

65.01    70.00                     14                    2.88  3.18  3.58  3.98  4.38  4.68

70.01    75.00                     15                    3.08  3.38  3.78  4.18  4.58  4.78

75.01    80.00                     16                    3.28  3.58  3.98  4.38  4.68  4.88

80.01    85.00                     17                    3.48  3.78  4.18  4.58  4.88  4.98

85.01    90.00                     18                    3.88  4.18  4.58  4.88  4.98  5.18

90.01    95.00                     19                    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

               (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 ((four and thirty-two one-hundredths)) five and four-tenths percent, 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 ((four and thirty-two one-hundredths)) five and four-tenths percent for the current rate year;

               (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 ((2.0)) 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, 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.

 

               NEW SECTION.  Sec. 14.  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, the Washington benefit reserve trust fund contribution rate as determined under section 7 of this act, employment and training trust fund contributions as determined under section 3 of this act, and special contributions required under RCW 50.24.014.  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 four separate calculations.

 

               NEW SECTION.  Sec. 15.  A new section is added to chapter 28C.18 RCW to read as follows:

               (1) The board shall conduct an annual evaluation of: (a) The performance of the employment security department and the state board for community and technical colleges in carrying out the purposes of chapter . . ., Laws of 1993 (this act); (b) the outcomes of the services provided by the employment security department and the state board for community and technical colleges under chapter . . ., Laws of 1993 (this act); and (c) the long-term impact of the services provided by the employment security department and the state board for community and technical colleges under chapter . . ., Laws of 1993 (this act) on service recipients.  The board shall give the first annual evaluation to the appropriate standing committees of the legislature by January 1, 1995.

               (2) The employment security department shall report to the board by September 1, 1994, and every year thereafter, on the status of the programs provided in chapter . . ., Laws of 1993 (this act) and the resulting outcomes.  The employment security department shall include in its report quantitative and demographic information on job orders, placement referrals, individualized training plans, skill assessments, and other interventions carried out as a result of chapter . . ., Laws of 1993 (this act), as well as any other information requested by the board.

               (3) The state board for community and technical colleges shall report to the board by September 1, 1994, and every year thereafter, the number of certified student full-time equivalents receiving training as provided in chapter . . ., Laws of 1993 (this act).  In addition, the report must include information on the outcomes of the provided training, indices of placement rates, student demographics, training plan completion rates, and comparisons of preprogram and postprogram wage levels for those trained as a result of chapter . . ., Laws of 1993 (this act), as well as any other information requested by the board.

 

               NEW SECTION.  Sec. 16.  The sum of twenty-six million dollars, or as much thereof as may be necessary, is appropriated from the employment and training trust fund to the state board for community and technical colleges for the biennium ending June 30, 1995, to carry out training and related support services under this act.  Of the amount appropriated by this section, twenty-three million three hundred thousand dollars shall provide for training enrollments, two million dollars shall provide for child care for dependents of individuals being trained under this section, and seven hundred thousand dollars shall provide for transportation costs to individuals being trained under this act.

 

               NEW SECTION.  Sec. 17.  The sum of twelve million nine hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the employment and training trust fund to the employment security department for the biennium ending June 30, 1995, to carry out the purposes of section 4 of this act.

 

               NEW SECTION.  Sec. 18.  To the extent that available funding from the employment and training trust fund is not sufficient to provide the appropriations in sections 16 and 17 of this act, the available funds shall be appropriated to the state board for community and technical colleges and the employment security department in the same ratio as funds are appropriated in sections 16 and 17 of this act.

 

               NEW SECTION.  Sec. 19.  Sections 1 through 8, 10, 12, 14, and 15 of this act shall expire June 30, 1997.

 

               NEW SECTION.  Sec. 20.  Sections 9, 11, and 13 of this act shall take effect June 30, 1997.

 

               NEW SECTION.  Sec. 21.            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 or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the 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 that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

 

               NEW SECTION.  Sec. 22.            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. 23.            This act applies to tax rate years beginning with tax rate year 1994.

 


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