2235 AMH CLEM H2889.2

2235 AMH CLEM H2889.2

HB 2235 - H AMD

By Representative Clements

Strike everything after the enacting clause and insert the following:

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

(1) An additional benefit period is established for:

(a) An individual who has base year employment of at least one thousand hours in the same industry and who:

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

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

(iii) Is, in the determination of the employment security department, in a declining occupation because of diminishing demand for his or her skills; and

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

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

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

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

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

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

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

(b) For individuals described in subsection (1)(a) of this section, no new claims for additional benefits shall be accepted for weeks beginning after July 1, 2003, but for claims established on or before July 1, 2003, weeks of unemployment occurring after July 1, 2003, shall be compensated as provided in this section.

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

(a) Develops an individual training program that is submitted to the commissioner for approval by sixty days after the individual is notified by the department of the requirements of this section;

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

(c) Is enrolled in training approved under this section on a full-time basis as determined by the educational institution, and making satisfactory progress in the training by maintaining a grade point average sufficient to graduate and attending all classes included in the approved training plan, as certified by the educational institution.

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

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

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

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

(a) "Training program" means:

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

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

(A) Is training for a demand occupation; and

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

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

(b) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016(4) or an educational institution as defined in RCW 28C.04.410(3), including equivalent educational institutions in other states.

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

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

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

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

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

(15) The department shall review the participation in the additional benefits program by individuals described in subsection (1)(a) of this section and report to the appropriate committees of the legislature on or before December 1, 2001, on the following:

(a) The number of claimants per standard industrial classification code who participate in the additional benefits program under this section;

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

(d) The employment and wage history of participants; and

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

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

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

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

Rate year Percentage

2000 65%

2001 66%

2002 67%

2003 68%

2004 69%

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

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

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

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

(1) An experience rating account shall be established and maintained for each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

(2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Interval of the

Fund Balance Ratio Effective

Expressed as a Percentage Tax Schedule

2.90 and above AA

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

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

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

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

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

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

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

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

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

((~~Percent of~~

~~Cumulative Schedules of Contributions Rates~~

~~Taxable Payrolls for Effective Tax Schedule~~

~~Rate~~

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Percent of

Cumulative Schedules of Contributions Rates

Taxable Payrolls for Effective Tax Schedule

Rate

From To Class AA A B C D E F

0.00 5.00 1 0.48 0.48 0.58 0.98 1.48 1.88 2.48

5.01 10.00 2 0.48 0.48 0.78 1.18 1.68 2.08 2.68

10.01 15.00 3 0.58 0.58 0.98 1.38 1.78 2.28 2.88

15.01 20.00 4 0.58 0.78 1.18 1.58 1.98 2.48 3.08

20.01 25.00 5 0.73 0.93 1.28 1.68 2.03 2.54 3.14

25.01 30.00 6 0.85 1.05 1.38 1.78 2.18 2.58 3.18

30.01 35.00 7 0.97 1.17 1.58 1.98 2.38 2.78 3.28

35.01 40.00 8 1.09 1.29 1.78 2.18 2.58 2.98 3.38

40.01 45.00 9 1.21 1.41 1.98 2.38 2.80 3.18 3.48

45.01 50.00 10 1.33 1.53 2.18 2.58 3.00 3.38 3.58

50.01 55.00 11 1.58 1.78 2.38 2.78 3.20 3.48 3.68

55.01 60.00 12 1.91 2.11 2.58 3.03 3.40 3.68 3.69

60.01 65.00 13 2.13 2.31 2.78 3.23 3.60 3.88 4.18

65.01 70.00 14 2.53 2.73 2.98 3.43 3.80 4.08 4.38

70.01 75.00 15 2.88 3.08 3.18 3.48 4.00 4.33 4.58

75.01 80.00 16 3.20 3.40 3.48 3.58 4.20 4.48 4.78

80.01 85.00 17 3.50 3.70 3.85 4.00 4.20 4.40 4.60

85.01 90.00 18 4.20 4.40 4.55 4.70 4.90 5.10 5.30

90.01 95.00 19 4.70 4.90 5.05 5.20 5.40 5.60 5.80

95.01 100.00 20 6.00 6.56 6.71 6.86 7.06 7.26 7.46

20A 5.70 5.90 6.05 6.20 6.35 6.50 6.65

20B 5.90 6.10 6.25 6.40 6.55 6.70 6.85

(b)(i) Rate class 20A is limited to employers whose standard industrial classification code, or the equivalent code in a successor classification system as determined by the commissioner, is "013", "016", "017", "018", and "019" and who would otherwise be in rate class 20.

(ii) Rate class 20B is limited to employers whose standard industrial classification code, or the equivalent code in a successor classification system as determined by the commissioner, is "091" or "203" and who would otherwise be in rate class 20.

(c) Contractors engaging in construction activities under the terms of a written contract or contract addendum that was entered into prior to the effective date of this section may request the project owner or owner's agent to adjust payment provisions or contract terms to reflect the additional cost attributable to the contribution increases imposed by section 4, chapter . . ., Laws of 1999 (this act). Such a request does not invalidate the original contract or contract addendum. Owners or owners' agents shall consider such a request for adjustment and equitably adjust the contract accordingly.

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

(a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned ((~~the contribution rate of five and six-tenths percent~~)) a contribution rate two-tenths higher than that in rate class 20 for the applicable rate year, except employers who have an approved agency-deferred payment contract by September 30 of the previous rate year. If any employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to ((~~five and six-tenths percent for the current rate year~~)) a contribution rate two-tenths higher than that in rate class 20 for the applicable rate year; and

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

~~(c)~~)) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code, or as found in a successor code recognized by the commissioner.

NEW SECTION. Sec. 5. The unemployment insurance advisory committee shall conduct a review of the adequacy of penalties, both criminal and administrative, for enforcing this title. The review shall include the frequency of penalties imposed and the amount of the penalty. The committee shall also review the adequacy of employer responses to notices of applications for initial determinations, or similar notices given when claimants reestablish eligibility, and the effect of employer responses on any review process conducted under chapter 50.32 RCW. The employment security department shall report the committee's findings and recommendations to the appropriate committees of the legislature by December 1, 1999.

NEW SECTION. Sec. 6. The commissioner of the employment security department is authorized to adopt rules necessary to implement this act.

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

NEW SECTION. Sec. 8. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 9. 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. 10. Sections 1 and 3 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately.

NEW SECTION. Sec. 11. Sections 2 and 4 of this act take effect January 1, 2000, and apply to rate years beginning on or after January 1, 2000."

Correct the title.