2901 AMH CLEM CORD 127

HB 2901 - H AMD TO H AMD (2901 AMH .... H4760.7)

By Representative Clements 0515 WITHDRAWN 3-11-02

     On page 6, beginning on line 28 of the amendment, strike all of sections 3 through 5 and insert the following:

     "NEW SECTION. Sec. 3.  For rate years 2003 and 2004, the contribution rate of each employer subject to contributions under RCW 50.24.010 shall include, in addition to the contribution rate under RCW 50.29.025, an insolvency surcharge of fifteen one-hundredths of one percent, except that for the employers whose assigned standard industrial classification code is within major group "01," "02," or "07," or is "5148," or the equivalent code in the North American industry classification system code, the insolvency surcharge is one tenth of one percent.  However, the insolvency surcharge is not in effect:

     (1) For rate year 2003, if, before January 1, 2003, federal Reed act moneys are transferred to the account of this state pursuant to section 903 of the social security act (42 U.S.C. Sec. 1103), as amended, in an amount equal to or greater than fifteen one-hundredths of one percent multiplied by the amount of total taxable payroll for fiscal year 2002.

     (2) For rate year 2004, if the fund balance ratio under RCW 50.29.025 is equal to or greater than 1.70 on September 30, 2003."

Renumber the remaining sections consecutively and correct internal references accordingly.

     On page 11, beginning on line 20 of the amendment, strike all of sections 7 through 18.

Correct the title.

EFFECT:  Deletes all provisions relating to unemployment insurance taxes except the requirement for charging training benefits to employers' experience rating accounts and for an insolvency surcharge of 0.15 percent to be in effect for 2003 (unless the state receives specified Reed Act funds) and 2004 (unless the fund balance ratio is at least 1.70, rather than 1.40).  However, for the agriculture industry the insolvency surcharge will be 0.1 percent.