HOUSE BILL REPORT

SHB 2649

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to correcting references in RCW 50.29.021(2)(c)(i), (c)(ii), and (3)(e), RCW 50.29.062(2)(b)(i)(B) and (2)(b)(iii), and RCW 50.29.063(1)(b) and (2)(a)(ii) to unemployment insurance statutes concerning employer experience rating accounts and contribution rates

Brief Description: Correcting references in RCW 50.29.021(2)(c)(i), (c)(ii), and (3)(e), RCW 50.29.062(2)(b)(i)(B) and (2)(b)(iii), and RCW 50.29.063(1)(b) and (2)(a)(ii) to unemployment insurance statutes concerning employer experience rating accounts and contribution rates.

Sponsors: House Committee on Commerce & Labor (originally sponsored by Representatives Green, Conway, Moeller and Williams; by request of Employment Security Department).

Brief History:

Committee Activity:

Commerce & Labor: 1/13/10, 1/19/10 [DPS].

Floor Activity:

Passed House: 1/28/10, 97-0.

Passed Senate: 3/3/10, 46-0.

Passed Legislature.

Brief Summary of Substitute Bill

Corrects references to certain sections of the Employment Security Act that were amended and restructured or alphabetized in 2009.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives Conway, Chair; Wood, Vice Chair; Condotta, Ranking Minority Member; Chandler, Crouse, Green, Moeller and Williams.

Background:

In 2009 multiple sections of the Employment Security Act were amended and restructured, and a definition section was alphabetized.

One of the amended sections lists reasons a person is not disqualified from receiving unemployment benefits if he or she quits work. The legislation did not correct references to that section in a different section that lists circumstances in which benefits are noncharged or charged only to the separating employer's experience rating account.

Another of the amended sections specifies how contribution rates are determined. The legislation did not correct references to that section in different sections that specify how successor employer contribution rates are computed.

Summary of Substitute Bill:

Corrections are made to references to certain sections of the Employment Security Act that were amended and restructured in 2009. Corrections are also made to references to a definition section that was alphabetized in 2009.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed, except for section 1, relating to experience rating, which takes effect immediately.

Staff Summary of Public Testimony:

(In support) None.

(Opposed) The fund has $3 billion. The choice to increase taxes, rather than use the fund, is the concern. Instead of taxing employers more, they should use the fund.