BP BHEAD INT S [atlas:bill]

AN ACT Relating to the education and training credit fund; amending RCW 50.16.020 and 50.16.020; reenacting and amending RCW 50.16.010 and 50.16.010; and adding a new section to chapter 50.16 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 50.16 RCW to read as follows:

(1) No later than July 1, 1999, an education and training credit fund shall be established and administered under the direction of the commissioner. The fund shall consist of moneys transferred to the employment security department by the department of social and health services from the federal temporary assistance for needy families block grant. Transfers of moneys must be in amounts necessary to maintain actuarial solvency of the fund. Moneys from the fund may be disbursed by the commissioner only for the payment of education expenses of individuals who establish credits under subsection (2) of this section and for administration of this section.

(2) Beginning on a date determined by the commissioner, but no later than July 1, 1999, education and training credits shall be earned, accrued, and used by eligible individuals as follows:

(a) Credits are earned at a rate of twenty-five cents per hour of work in which the individual earned wages at a rate of no more than seven dollars per hour or no more than the adjusted wage calculated and in effect under subsection (3) of this section;

(b) The maximum education and training fund credits that may be accrued by an individual is five hundred dollars. The total of credits accrued by all eligible individuals may not exceed twenty million dollars annually;

(c) An eligible individual may not use credits earned under this subsection until the individual has earned wages in bona fide employment for at least six months. Credits may be used only to pay tuition and education-related expenses for the individual at a state technical or community college. The individual must use the credits accrued within four years after the date that the last credits were earned by the individual.

(3) Beginning on July 1, 2001, and every other July 1st thereafter, an adjusted wage for the purposes of subsection (2)(a) of this section shall take effect based on a calculation by the employment security department that takes into account the constant dollar value of the wage stated in subsection (2)(a) of this section.

(4) The commissioner shall establish a system for maintaining individual accounts within the education and training credit fund and accounting for the fund balances for each eligible employee. The commissioner may adopt rules necessary to implement this section.

(5) As used in this section, "eligible individual" means an individual who is liable for and provides support for the individual's child or children who live with the individual.

Sec. 2. RCW 50.16.010 and 1993 c 483 s 7 and 1993 c 226 s 9 are each reenacted and 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, an employment and training trust fund, an education and training credit 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) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

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

(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,

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

(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,

(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

(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:

(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.

(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.

(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.

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 employment and training trust fund shall consist of all contributions received from the employment and training trust fund contributions in accordance with RCW 50.24.018.

(4) The education and training credit fund shall consist of moneys transferred to the employment security department by the department of social and health services from the federal temporary assistance for needy families block grant.

Sec. 3. 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:

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, an education and training credit fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable.

(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) 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.

Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, shall be expended upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary for:

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

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

(c) 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.

(3) The education and training credit fund shall consist of moneys transferred to the employment security department by the department of social and health services from the federal temporary assistance for needy families block grant.

Sec. 4. RCW 50.16.020 and 1993 c 226 s 11 are each amended to read as follows:

The commissioner shall designate a treasurer and custodian of the unemployment compensation fund, the employment and training trust fund, the education and training credit fund, and 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. 5. 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 education and training credit 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.