"Sec. 3   RCW 50.29.062 and 2006 c 47 s 2 are each amended to read as follows:
     Except as provided in RCW 50.29.063, predecessor and successor employer contribution rates shall be computed in the following manner:
     (1) If the successor is an employer, as defined in RCW 50.04.080, at the time of the transfer of a business, the following applies:
     (a) The successor's contribution rate shall remain unchanged for the remainder of the rate year in which the transfer occurs; and
     (b) Beginning January 1st following the transfer, the successor's contribution rate for each rate year shall be based on a combination of the following:
     (i) The successor's experience with payrolls and benefits; and
     (ii) Any experience assigned to the predecessor involved in the transfer. If only a portion of the business was transferred, then the experience attributable to the acquired portion is assigned to the successor.
     (2) If the successor is not an employer at the time of the transfer, the following applies:
     (a) For transfers before January 1, 2005:
     (i) Except as provided in (ii) of this subsection (2)(a), the successor shall pay contributions at the lowest rate determined under either of the following:
     (A) The contribution rate of the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year. Any experience relating to the assignment of that rate class attributable to the predecessor is transferred to the successor. Beginning with the January 1st following the transfer, the successor's contribution rate shall be based on a combination of the transferred experience of the acquired business and the successor's experience after the transfer; or
     (B) The contribution rate equal to the average industry rate as determined by the commissioner, but not less than one percent, and continuing until the successor qualifies for a different rate in its own right. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, must be in accordance with established classification practices found in the North American industry classification system issued by the federal office of management and budget to the fourth digit provided in the North American industry classification system.
     (ii) If the successor simultaneously acquires the business or a portion of the business of two or more employers in different rate classes, its rate from the date the transfer occurred until the end of that rate year and until it qualifies in its own right for a new rate((,)) shall be the rate of the highest rate class applicable at the time of the acquisition to any predecessor employer who is a party to the acquisition, but not less than one percent.
     (b) For transfers on or after January 1, 2005:
     (i) Except as provided in (ii) and (iii) of this subsection (2)(b), the successor shall pay contributions:
     (A) At the contribution rate assigned to the predecessor employer at the time of the transfer and not the new employer rate for the remainder of that rate year, so long as the successor retains at least sixty percent of the predecessor's employees. Any experience attributable to the predecessor relating to the assignment of the predecessor's rate class is transferred to the successor.
     (B) Beginning January 1st following the transfer, the successor's contribution rate for each rate year shall be based on an array calculation factor rate that is a combination of the following: The successor's experience with payrolls and benefits; and any experience assigned to the predecessor involved in the transfer. If only a portion of the business was transferred, then the experience attributable to the acquired portion is assigned to the successor if qualified under RCW 50.29.010(6) by including the transferred experience. If not qualified under RCW 50.29.010(6), the contribution rate shall equal the sum of the rates determined by the commissioner under RCW 50.29.025(2) (((c)(ii) and (d)(ii))) (d)(i), and 50.29.041, if applicable, and continuing until the successor qualifies for a different rate, including the transferred experience.
     (ii) If there is a substantial continuity of ownership, control, or management by the successor of the business of the predecessor, the successor shall pay contributions at the contribution rate determined for the predecessor employer at the time of the transfer for the remainder of that rate year. Any experience attributable to the predecessor relating to the assignment of the predecessor's rate class is transferred to the successor. Beginning January 1st following the transfer, the successor's array calculation factor rate shall be based on a combination of the transferred experience of the acquired business and the successor's experience after the transfer.
     (iii) If the successor simultaneously acquires the business or a portion of the business of two or more employers with different contribution rates, the successor's rate from the date the transfer occurred until the end of that rate year and until it qualifies in its own right for a new rate, shall be the sum of the rates determined by the commissioner under RCW 50.29.025(2) (a) and (b), and 50.29.041, applicable at the time of the acquisition, to the predecessor employer who, among the parties to the acquisition, had the largest total payroll in the completed calendar quarter immediately preceding the date of transfer, but not less than the sum of the rates determined by the commissioner under RCW 50.29.025(2) (((c)(ii) and (d)(ii))) (d)(i), and 50.29.041, if applicable.
     (3) With respect to predecessor employers:
     (a) The contribution rate on any payroll retained by a predecessor employer shall remain unchanged for the remainder of the rate year in which the transfer occurs.
     (b) In all cases, beginning January 1st following the transfer, the predecessor's contribution rate or the predecessor's array calculation factor for each rate year shall be based on its experience with payrolls and benefits as of the regular computation date for that rate year excluding the experience of the transferred business or transferred portion of business as that experience has transferred to the successor: PROVIDED, That if all of the predecessor's business is transferred to a successor or successors, the predecessor shall not be a qualified employer until it satisfies the requirements of a "qualified employer" as set forth in RCW 50.29.010.
     (4) For purposes of this section, "transfer of a business" means the same as RCW 50.29.063(4)(c)."

"Sec. 4   RCW 50.04.310 and 2007 c 146 s 5 are each amended to read as follows:
     (1) An individual is "unemployed" in any week during which the individual performs no services and with respect to which no remuneration is payable to the individual, or in any week of less than full time work, if the remuneration payable to the individual with respect to such week is less than one and one-third times the individual's weekly benefit amount plus five dollars. The commissioner shall prescribe regulations applicable to unemployed individuals making such distinctions in the procedures as to such types of unemployment as the commissioner deems necessary.
     (2) An individual is not "unemployed" during any week which falls totally within a period during which the individual, pursuant to a collective bargaining agreement or individual employment contract, is employed full time in accordance with a definition of full time contained in the agreement or contract, and for which compensation for full time work is payable. This subsection may not be applied retroactively to an individual who had no guarantee of work at the start of such period and subsequently is provided additional work by the employer.
     (3)(a) An officer of a corporation who owns ten percent or more of the outstanding stock of the corporation, or a corporate officer who is a family member of an officer who owns ten percent or more of the outstanding stock of the corporation, whose claim for benefits is based on any wages with that corporation, is:
     (((a))) (i) Not "unemployed" in any week during the individual's term of office or ownership in the corporation, even if wages are not being paid;
     (((b))) (ii) "Unemployed" in any week upon dissolution of the corporation or if the officer permanently resigns or is permanently removed from their appointment and responsibilities with that corporation in accordance with its articles of incorporation or bylaws.
     (b) This subsection does not apply to officers of corporations with annual revenues of less than two million five hundred thousand dollars.
     (4) As used in this section, "family member" means persons who are members of a family by blood or marriage as parents, stepparents, grandparents, spouses, children, brothers, sisters, stepchildren, adopted children, or grandchildren."