H-3923.1  _______________________________________________

 

                          HOUSE BILL 2615

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives B. Chandler, Lisk and Clements

 

Read first time 01/18/2000.  Referred to Committee on Commerce & Labor.

Modifying the definition of wages for unemployment compensation.


    AN ACT Relating to the exercise of stock options; adding a new section to chapter 50.04 RCW; creating a new section; and declaring an emergency.

 

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

 

    NEW SECTION.  Sec. 1.  A new section is added to chapter 50.04 RCW to read as follows:

    For the purpose of paying contributions in tax rate years beginning on or after January 1, 2000, and for the purpose of paying benefits to claimants with base years beginning on or after January 1, 2000, the term "wages" does not include an employee's income from the transfer of shares of stock to the employee pursuant to his or her exercise of a stock option granted for any reason connected with his or her employment in a disqualifying disposition under section 421 of the federal internal revenue code.

 

    NEW SECTION.  Sec. 2.  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 inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act.  Rules adopted under this act must 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. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

 


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