2901 AMH  REIN 39

HB 2901 - H AMD TO H AMD (H4760.7) Failed 3-11-02 0514

By Representative ___

     On page 8, after line 9, insert the following:

     "NEW SECTION. Sec. 5.  A new section is added to chapter 50.24 RCW to read as follows:

     (1) For the purposes of this section, Aindividual contributions@ means the money payments due to the state unemployment compensation fund as provided under this section.

     (2) Beginning on January 1, 2003, individual contributions to the state unemployment compensation fund shall accrue and become payable by each employer in accordance with such rules as the commissioner may adopt.

     (3) Beginning on September 30, 2002, and on September 30 of each year thereafter, the commissioner shall determine the rate of  individual contributions.  The individual contribution rate shall be the lowest rate necessary to ensure that the total amount of individual contributions that accrue and become payable for the next rate year equals the total amount of benefits paid in the last completed state fiscal year less the total amount of benefits that would have been paid in the last completed state fiscal year if weekly benefit amounts were equal to one percent of the total wages paid in the base year.

     (4) The commissioner shall determine the amount of wages subject to the individual contribution rate under RCW 50.24.010.

     (5) An employer may deduct individual contributions, in whole or in part, from the remuneration of individuals in employment of the employer.

     (6) In the payment of any individual 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.

     (7) This section does not apply to: (a) Employers who are required to make payments in lieu of contributions; (b) employers described in RCW 50.44.010, 50.44.030, and 50.50.030 who have properly elected to make payments in lieu of contributions; and (c) taxable local government employers described in RCW 50.44.035.

     Sec. 6.  RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:

      The terms "contributions," "individual contributions," and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to the state unemployment compensation fund, to the federal interest payment fund under RCW 50.16.070, or to the special account in the administrative contingency fund under RCW 50.24.014 and are deemed to be taxes due to the state of Washington.

     Sec. 7.  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, 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.

     The unemployment compensation fund shall consist of

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

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

     (3) all earnings of such property or securities,

     (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,

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

     (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,

     (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

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

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

     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.

     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."

     Renumber remaining sections and correct internal references accordingly.

     Correct the title.

EFFECT:

$Requires employers to pay "individual contributions" to the Unemployment Insurance Trust Fund, and permits employers to deduct "individual contributions" from employee wages.

$Directs the Commissioner of the Employment Security Department to set the rate of individual contributions.

$Requires that the rate be the lowest rate necessary to collect contributions in an amount equal to the difference between benefits calculated using average wages in the two quarters in the base period in which wages were highest and benefits calculated using wages in the four quarters of the base period.