[atlas:bill]

AN ACT Relating to benefits for individuals who are unable to work as a result of a natural disaster; amending RCW 43.88.180; adding a new section to chapter 43.33A RCW; adding a new title to the Revised Code of Washington; creating new sections; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that natural disasters often cause individuals to lose wages from employment or income from self-employment, and that natural disasters adversely affect these individuals and their families with great severity. The legislature intends to help alleviate the hardships that result from natural disasters by providing partial wage and income replacement benefits to individuals unable to work as a result of natural disasters for whom no other wage or income replacement programs are available.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this title unless the context clearly requires otherwise.

(1) "Base year" means the same as in RCW 50.04.020 and, with respect to a self-employed individual, the previous calendar year.

(2) "Commissioner" means the same as in RCW 50.04.060.

(3) "Employer" means the same as in RCW 50.04.080.

(4) "Employment" means the same as the term is used in chapter 50.04 RCW, and that is covered under Title 50 RCW.

(5) "Natural disaster" means specified unusual and adverse weather conditions or other natural phenomena that cause the governor: (a) To proclaim a state of emergency in the affected county or counties under RCW 43.06.010; and (b) to direct the commissioner to pay natural disaster benefits under this title.

(6) "Natural disaster area" means the county or counties in which the state of emergency is proclaimed by the governor.

(7) "Natural disaster benefit period" means the period beginning with the first week following the date the state of emergency is proclaimed by the governor, and ending with the thirtieth week following that date.

(8) "Natural disaster benefits" means benefits paid under section 101 of this act.

(9) "Natural disaster benefits trust account" means the trust account created under section 201 of this act.

(10) "Natural disaster-impacted self-employed individual" means an individual who was self-employed in or was to commence self-employment in the natural disaster area at the time the natural disaster began, and whose principal source of income and livelihood is dependent upon the individual's performance of service in the individual's own business, or on the individual's own farm, and whose unemployment is a direct result of the natural disaster.

(11) "Natural disaster-impacted worker" means an individual who was employed in or was to commence employment in the natural disaster area at the time the natural disaster began, and whose principal source of income and livelihood is dependent upon the individual's employment for wages, and whose unemployment is a direct result of the natural disaster. An individual who had a bona fide offer of work before the natural disaster benefit period and who is not employed as a direct result of the natural disaster is an individual who was to commence employment.

(12) "Self-employed individual" means an individual whose primary reliance for income is on the performance of services in the individual's own business, or on the individual's own farm.

(13) "Unemployment" means:

(a) For a natural disaster-impacted worker, when the individual performs no work and earns no wages, or has less than full-time work and earns wages not exceeding the amount permitted in RCW 50.20.130; and

(b) For a natural disaster-impacted self-employed individual, when the individual earns less than his or her customary wages as a direct result of the major disaster, and earns wages not exceeding the amount permitted in RCW 50.20.130.

(14) "Unusual and adverse weather conditions or natural phenomena" includes:

(a) A major single natural occurrence or event such as an earthquake, tornado, or volcanic eruption;

(b) A single storm, or series of storms, accompanied by severe hail, excessive rain, heavy snow, ice, or high wind;

(d) A severe weather pattern over a period of time that, due to excessive rainfall, unusual lack of rainfall, or periods of high or low temperatures, causes flooding, substantial water damage, drought, or freezing, or results in the spreading and flourishing of insects or pests, or in plant or animal diseases spreading into epidemic proportions, or prevents the control of fire, however caused.

(15) "Wages" means the same as in RCW 50.04.320(2) and, with respect to a self-employed individual, net income from services performed in self-employment in the previous calendar year.

(16) "Week" means the same as in RCW 50.04.360.

PART I

BENEFITS

NEW SECTION. Sec. 101. (1) The commissioner may pay natural disaster benefits from the natural disaster benefits trust account created in section 201 of this act, but may not obligate expenditures beyond the limits set by the legislature in an appropriations act. Natural disaster benefits may not be paid from the unemployment trust fund, the accident fund, or the medical aid fund.

The commissioner must develop a process to ensure that expenditures under this section do not exceed available funds and to prioritize access to funds when again available. The commissioner may not pay or otherwise obligate the payment of benefits after the natural disaster period ends.

(2) Subject to availability of funds and except as provided in subsection (3) of this section, natural disaster benefits are available for an individual with respect to a week of unemployment if:

(a) The week of unemployment begins during a natural disaster benefit period;

(b) The individual is a natural disaster-impacted worker or a natural disaster-impacted self-employed individual;

(d) The individual's unemployment with respect to that week is a direct result of the natural disaster;

(e) The individual filed a timely initial application for natural disaster benefits. An initial application filed under this section is timely if filed within thirty days after the date the natural disaster is proclaimed by the governor or within thirty days after the effective date of this act, whichever is later;

(f) The individual satisfies the benefit eligibility conditions set forth in RCW 50.20.010(3). A natural disaster-impacted self-employed individual is deemed to satisfy these conditions if the individual performs service or activities that are solely for the purpose of enabling the individual to resume self-employment; and

(g) The individual is eligible to work in the United States, and the commissioner has verified the individual's eligibility.

(3) Subject to availability of funds and in lieu of benefits under subsection (2) of this section, natural disaster benefits are available in a single payment for an individual with respect to a natural disaster benefit period if:

(a) The unemployment begins during a natural disaster benefit period;

(b) The individual is a natural disaster-impacted self-employed individual;

(d) The individual's unemployment is a direct result of the natural disaster;

(e) The individual filed a timely initial application for natural disaster benefits, and elected to receive benefits in a single payment;

(f) The individual performs services or activities that are solely for the purpose of enabling the individual to resume self-employment during the natural disaster benefit period; and

(g) The individual is eligible to work in the United States, and the commissioner has verified the individual's eligibility.

(4) An individual is not eligible for natural disaster benefits if he or she:

(a) Is or was eligible for benefits, under Title 50 RCW, or benefits under similar federal or other state law, whether or not the individual has exhausted such benefits or been disqualified from receiving such benefits;

(b) Is a standby claimant who expects recall to his or her regular employer;

(d) Is unemployed due to a regular seasonal layoff which demonstrates a pattern of unemployment consistent with RCW 50.20.015.

(5) An individual is disqualified for natural disaster benefits if he or she was an employee who is disqualified for benefits under chapter 50.20 RCW. An individual who is disqualified for natural disaster benefits under this subsection is disqualified under the same terms and conditions as if he or she was disqualified for benefits under chapter 50.20 RCW, except that the individual must not be requalified for natural disaster benefits in any circumstances.

(6) No otherwise eligible natural disaster-impacted self-employed individual may be denied benefits because the individual is in training with the approval of the commissioner, nor may such individual be denied benefits because the individual is satisfactorily progressing in a training program with the approval of the commissioner by reason of the application of subsection (2)(f), (3)(f), or (5) of this section.

(7) All base year employers are interested parties to the approval and granting of benefits under this title.

NEW SECTION. Sec. 102. (1) For benefits payable to individuals under section 101(2) of this act:

(a) The maximum amounts of benefits payable are the same as the maximum amount of benefits payable under RCW 50.20.120(1); and

(b) The weekly benefit amounts payable under section 101 of this act are the same as the weekly amount payable during the applicable benefit year under RCW 50.20.120(2).

(2) For benefits payable to individuals under section 101(3) of this act, the amount payable is equal to thirty times the weekly amount payable during the applicable benefit year under RCW 50.20.120(2) or one-third of the individual's base year wages under this title.

(3) Except as provided for in section 101 of this act, the commissioner shall pay benefits under section 101 of this act under the same terms and conditions as benefits payable under chapter 50.20 RCW.

NEW SECTION. Sec. 103. (1) An individual filing a new claim for natural disaster benefits under this title must, at the time of filing the claim, disclose whether or not the individual owes child support obligations. If the individual discloses that he or she owes child support obligations and is determined to be eligible for benefits, the commissioner must notify the state or local child support enforcement agency enforcing those obligations that the individual has been determined to be eligible for natural disaster benefits.

(2) The commissioner must deduct and withhold from any benefits payable to an individual who owes child support obligations:

(a) The amount specified by the individual to the commissioner to be deducted and withheld under this subsection, if neither (b) nor (c) of this subsection is applicable;

(b) The amount, if any, determined under an agreement submitted to the commissioner under section 454(20)(B)(i) of the social security act by the state or local child support enforcement agency, unless (c) of this subsection is applicable; or

(c) Any amount otherwise required to be so deducted and withheld from such benefits pursuant to legal process, as that term is defined in section 462(e) of the social security act, properly served upon the commissioner.

(3) Any amount deducted and withheld under subsection (2) of this section must be paid by the commissioner to the appropriate state or local child support enforcement agency.

(4) Any amount deducted and withheld under subsection (2) of this section must be treated for all purposes as if it were paid to the individual as natural disaster benefits and paid by that individual to the state or local child support enforcement agency in satisfaction of the individual's child support obligations.

(5) This section applies only if appropriate arrangements have been made for reimbursement by the state or local child support enforcement agency for the administrative costs incurred by the commissioner under this section that are attributable to child support obligations being enforced by the state or local child support enforcement agency.

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

(a) "Child support obligations" means only those obligations that are being enforced under a plan described in section 454 of the social security act that has been approved by the secretary of health and human services under part D of Title IV of the social security act.

(b) "State or local child support enforcement agency" means any agency of this state or a political subdivision thereof operating pursuant to a plan described in (a) of this subsection.

PART II

FUNDING

NEW SECTION. Sec. 201. (1) A natural disaster benefits trust account is established as a separate account, identifiable and apart from all public money or funds of this state, which must be administered by the commissioner of the employment security department exclusively for the purposes of this title, and to which RCW 43.01.050 is not applicable. All money designated for the natural disaster benefits trust account from appropriations and from other sources must be deposited into the account. Money deposited in the natural disaster benefits trust account is held in trust by the state and expenditures from the account may be used only to pay natural disaster benefits and to administer the natural disaster benefits program established in this title and the natural disaster benefits trust account. Except to pay benefits, money in the account may be spent only after appropriation.

(2)(a) The commissioner must designate a treasurer and custodian of the natural disaster benefits trust account who must administer such funds in accordance with the directions of the commissioner and must issue his or her warrants upon them in accordance with such regulations as the commissioner prescribes. Money in the natural disaster benefits trust account must not be commingled with other state funds, but must 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 may be paid out of the fund. Such money must be secured by the 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 must be maintained in a separate custody account.

(b) The treasurer must 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 the bond must be paid from the natural disaster benefits trust account. All sums recovered on official bonds for losses sustained by the natural disaster benefits trust account must be deposited in the account.

(3)(a) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the natural disaster benefits trust account. All investment and operating costs associated with the investment of money must be paid as required by RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earnings from the investment of the money must be retained by the account.

(b) All investments made by the state investment board must be made with the exercise of that degree of judgment and care required under RCW 43.33A.140 and the investment policies established by the state investment board.

(c) As deemed appropriate by the state investment board, money in the account may be commingled for investment with other funds subject to investment by the board.

NEW SECTION. Sec. 202. A new section is added to chapter 43.33A RCW to read as follows:

Pursuant to section 201 of this act, the state investment board must invest money in the natural disaster benefits trust account established in section 201 of this act with full power to establish investment policies for the account.

Sec. 203. RCW 43.88.180 and 1973 1st ex.s. c 100 s 8 are each amended to read as follows:

Appropriations shall not be required for refunds, as provided in RCW 43.88.170, nor in the case of payments other than for administrative expenses or capital improvements to be made from trust funds specifically created by law to discharge awards, claims, annuities and other liabilities of the state. Said trust funds shall include, but shall not be limited to, the accident fund, medical aid fund, natural disaster benefits trust account, retirement system fund, Washington state patrol retirement fund and unemployment trust fund. Appropriations may be required in the case of public service enterprises defined for the purposes of this section as proprietary functions conducted by an agency of the state. An appropriation may be required to permit payment of obligations by revolving funds, as provided in RCW 43.88.190.

PART III

ADMINISTRATION

NEW SECTION. Sec. 301. When a natural disaster causes the governor to proclaim a state of emergency and to direct the commissioner to pay natural disaster benefits under this title, the governor must notify the secretary of the senate and the chief clerk of the house of representatives. Within thirty days after the end of a natural disaster benefit period, the governor must also notify the appropriate committees of the legislature of the amount of benefits paid under this title, the number of claimants who received benefits under this title, and other related information requested by the legislative committees.

NEW SECTION. Sec. 302. The commissioner may adopt rules necessary to implement this title.

PART IV

MISCELLANEOUS

NEW SECTION. Sec. 401. The sum of . . . . . . dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 2003, from the . . . . . . fund to the natural disaster benefits trust account created in section 201 of this act for the purposes of this act.

NEW SECTION. Sec. 402. The governor may transfer money from the governor's emergency fund to the natural disaster benefits trust account created in section 201 of this act.

NEW SECTION. Sec. 403. This act applies beginning with weeks of unemployment beginning after March 1, 2001.

NEW SECTION. Sec. 404. Part headings used in this act are not any part of the law.

NEW SECTION. Sec. 405. 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. 406. 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. 407. 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.

NEW SECTION. Sec. 408. Sections 1, 2, 101 through 103, 201, 301, and 302 of this act constitute a new title in the Revised Code of Washington.