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ENGROSSED SENATE BILL 6413
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AS AMENDED BY THE HOUSE
Passed Legislature - 1996 Regular Session
State of Washington 54th Legislature 1996
Regular Session
By
Read first time 01/15/96. Referred to Committee
on Labor, Commerce & Trade.
Revising provisions for successor
unemployment compensation contribution rates.
AN ACT Relating to the
selection of successor employer contribution rates; amending RCW 50.29.062; and
creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 50.29.062 and 1995 c
56 s 1 are each amended to read as follows:
Predecessor and
successor employer contribution rates shall be computed in the following
manner:
(1) If the successor is
an employer, as defined in RCW 50.04.080, at the time of the transfer, its
contribution rate shall remain unchanged for the remainder of the rate year in
which the transfer occurs. From and after January 1 following the transfer,
the successor's contribution rate for each rate year shall be based on its
experience with payrolls and benefits including the experience of the acquired
business or portion of a business from the date of transfer, as of the regular
computation date for that rate year.
(2) If the successor is
not an employer at the time of the transfer, it shall pay contributions at the
lowest rate determined under either of the following:
(a) (i) For
transfers before January 1, 1997, the contribution rate of the rate class
assigned to the predecessor employer at the time of the transfer for the
remainder of that rate year and continuing until the successor qualifies for a
different rate in its own right;
(ii) For transfers
on or after January 1, 1997, the contribution rate of the rate class assigned
to the predecessor employer at the time of the transfer for the remainder of
that rate year. Any experience relating to the assignment of that rate
class attributable to the predecessor is transferred to the successor.
Beginning with the January 1 following the transfer, the successor's
contribution rate shall be based on the transferred experience of the acquired
business and the successor's experience after the transfer; or
(b) The contribution
rate equal to the average industry rate as determined by the commissioner, but
not less than one percent, and continuing until the successor qualifies for a
different rate in its own right. Assignment of employers by the commissioner
to industrial classification, for purposes of this subsection, must 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.
(3) If the successor is
not an employer at the time of the transfer and simultaneously acquires the
business or a portion of the business of two or more employers in different
rate classes, its rate from the date the transfer occurred until the end of
that rate year and until it qualifies in its own right for a new rate, shall be
the highest rate class applicable at the time of the acquisition to any
predecessor employer who is a party to the acquisition, but not less than
one percent.
(4) The contribution
rate on any payroll retained by a predecessor employer shall remain unchanged
for the remainder of the rate year in which the transfer occurs.
(5) In all cases, from
and after January 1 following the transfer, the predecessor's contribution rate
for each rate year shall be based on its experience with payrolls and benefits
as of the regular computation date for that rate year including the experience
of the acquired business or portion of business up to the date of transfer:
PROVIDED, That if all of the predecessor's business is transferred to a
successor or successors, the predecessor shall not be a qualified employer
until it satisfies the requirements of a "qualified employer" as set
forth in RCW 50.29.010.
NEW SECTION. Sec.
2. This act applies to
unemployment contribution rates effective on and after January 1, 1996.
NEW
SECTION. Sec. 3. 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.
