BILL REQ. #:  H-5039.1 

READ FIRST TIME 02/09/10.   

     AN ACT Relating to creating the opportunity express program; amending RCW 28C.04.390, 50.04.070, 50.04.072, 50.16.030, and 50.24.010; adding a new section to chapter 28B.50 RCW; adding a new section to chapter 50.24 RCW; creating new sections; and declaring an emergency.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that in times of severe economic recession, the state has a special obligation to help unemployed and low-income citizens access the training and education necessary to help them find and keep living wage jobs. The legislature also finds that during times of recession, when state revenues are at their lowest, demand for education and training are at their highest, making it especially important for the legislature to set clear goals and make the most efficient use of limited state resources.
     (2) The legislature therefore intends to expand training and education programs, which have proven to be successful, to help Washington citizens receive the training they need. These programs include the worker retraining program, the opportunity grant program, and the opportunity internship program. The legislature further intends to create more effective intake and outreach systems to reach the greatest number of citizens and connect them to the resources they need, including college, apprenticeship, and preapprenticeship.
     (3) The legislature also intends to empower employers to make voluntary donations and invest in the training and education necessary to guarantee the availability of a skilled workforce. The legislature finds that, following enactment of legislation during the 2010 session, a modernization incentive payment of approximately ninety-eight million dollars will be transferred into the unemployment trust fund. This payment will be in addition to amounts previously made available to the state by section 903 of the social security act (Reed act) and by section 2003 of the American recovery and reinvestment act of 2009, of which more than sixty million dollars will be unspent at the end of the 2009-2011 biennium and more than thirty million dollars will be unspent at the end of the 2011-2013 biennium. The legislature also finds that, in times of severe economic recession, it is especially important for the legislature to prioritize the use of these amounts to make possible investments in training and education.

Sec. 2   RCW 28C.04.390 and 1999 c 121 s 1 are each amended to read as follows:
     (1) The college board worker retraining program funds shall be used for training programs and related support services, including financial aid, counseling, referral to training resources, job referral, and job development that:
     (a) Are consistent with the unified plan for workforce development;
     (b) Provide increased enrollments for dislocated workers;
     (c) Provide customized training opportunities for dislocated workers; and
     (d) Provide increased enrollments and support services, including financial aid for those students not receiving unemployment insurance benefits, that do not replace or supplant any existing enrollments, programs, support services, or funding sources.
     (2) The college board shall develop a plan for use of the worker retraining program funds in conjunction with the workforce training customer advisory committee established in subsection (3) of this section. In developing the plan the college board shall:
     (a) Provide that applicants for worker retraining program funds shall solicit financial support for training programs and give priority in receipt of funds to those applicants which are most successful in matching public dollars with financial support;
     (b) Provide that applicants for worker retraining program funds shall develop training programs in partnership with local businesses, industry associations, labor, and other partners as appropriate and give priority in receipt of funds to those applicants who develop customized training programs in partnership with local businesses, industry associations, and labor organizations;
     (c) Give priority in receipt of funds to those applicants serving rural areas;
     (d) Ensure that applicants receiving worker retraining program funds gather information from local workforce development councils on employer workforce needs, including the needs of businesses with less than twenty-five employees; ((and))
     (e) Provide for specialized vocational training at a private career school or college at the request of a recipient eligible under subsection (1)(b) of this section. Available tuition for the training is limited to the amount that would otherwise be payable per enrolled quarter to a public institution; and
     (f) Give priority in receipt of funds to those applicants working toward careers in the aerospace, health care, advanced manufacturing, construction, renewable energy industries, high-demand occupations in strategic industry clusters identified in the state comprehensive plan and the workforce development councils' local comprehensive plans for workforce educational training as identified in RCW 28C.18.080 and 28C.18.150, or occupations and industries identified by community and technical colleges in collaboration with local workforce development councils. For purposes of this section, health care includes long-term care.
     (3) The executive director of the college board shall appoint a workforce training customer advisory committee by July 1, 1999, to:
     (a) Assist in the development of the plan for the use of the college board worker retraining program funds and recommend guidelines to the college board for the operation of worker retraining programs;
     (b) Recommend selection criteria for worker retraining programs and grant applicants for receipt of worker retraining program grants;
     (c) Provide advice to the college board on other workforce development activities of the community and technical colleges;
     (d) Recommend selection criteria for job skills grants, consistent with criteria established in this chapter and chapter 121, Laws of 1999. Such criteria shall include a prioritization of job skills applicants in rural areas;
     (e) Recommend guidelines to the college board for the operation of the job skills program; and
     (f) Recommend grant applicants for receipt of job skills program grants.
     (4) Members of the workforce training customer advisory committee shall consist of three college system representatives selected by the executive director of the college board, three representatives of business selected from nominations provided by statewide business organizations, and three representatives of labor selected from nominations provided by a statewide labor organization representing a cross-section of workers in the state.

NEW SECTION.  Sec. 3   A new section is added to chapter 28B.50 RCW to read as follows:
     By July 1, 2010, and within existing resources, the college board may create a single web site for the purpose of advertising the availability of opportunity express funding to Washington citizens; explaining that opportunity express helps people who want to pursue college and apprenticeship for certain targeted industries; and explaining that opportunity express includes three tracks: Worker retraining, training programs approved by the commissioner of the employment security department, training programs administered by labor and management partnerships for unemployed adults; opportunity internships for high school students; and opportunity grants for low-income adults. The web site may also direct interested individuals to the appropriate local intake office. The web site may also include a link to the Washington state department of labor and industries apprenticeship program.

NEW SECTION.  Sec. 4   A new section is added to chapter 50.24 RCW to read as follows:
     (1) For rate years 2010 and 2011, the opportunity express unemployment tax credit is allowed for voluntary contributions made under subsection (2) of this section. The total amount of the credit taken under this section for a calendar quarter shall equal one hundred ten percent of voluntary contributions for the same calendar quarter, but may not exceed the portion of contributions attributable to the social cost factor rate under RCW 50.29.025(2) for the same calendar quarter. The credit shall be earned, and claimed against contributions due under RCW 50.24.010, for the calendar quarter for which the voluntary contributions are made by the employer claiming credit under this subsection. Unused credits may not be carried over or used in subsequent calendar quarters. No refunds shall be granted for credits under this subsection. The total amount of all credits taken by all employers may not exceed ninety-seven million seven hundred twenty-nine thousand dollars.
     (2) For rate years 2010 and 2011, voluntary contributions to the opportunity express account shall accrue and become payable by each employer described under RCW 50.04.080 that elects to make voluntary contributions and receive opportunity express unemployment tax credits under subsection (1) of this section, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions. The total amount of the contributions made under this section for any calendar quarter shall be determined by the employer. If the amount of voluntary contributions to the account exceeds eighty-eight million eight hundred forty-four thousand dollars, any excess shall be considered surplus and transferred to the unemployment trust fund for purposes consistent with the requirements of the unemployment trust fund.
     (3) A separate and identifiable account, which shall be known as the opportunity express account, is established. Up to eighty-eight million eight hundred forty-four thousand dollars in the account may be spent only after appropriation. The account shall be used only for the worker retraining program, training programs approved by the commissioner of the employment security department, training programs administered by labor and management partnerships, the opportunity internship program, and the opportunity grant program, and for administrative costs related to these programs and collection of voluntary contributions under this section.

Sec. 5   RCW 50.04.070 and 1985 ex.s. c 5 s 4 are each amended to read as follows:
     "Contributions" means the money payments due to the state unemployment compensation fund as provided in RCW 50.24.010, to the federal interest payment fund under RCW 50.16.070, to the opportunity express account under section 4 of this act, or to the special account in the administrative contingency fund under RCW 50.24.014.

Sec. 6   RCW 50.04.072 and 1985 ex.s. c 5 s 5 are each amended to read as follows:
     The terms "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, to the opportunity express account under section 4 of this act, 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 50.16.030 and 2006 c 13 s 7 are each amended to read as follows:
     (1)(a) Except as provided in (b) and (c) of this subsection, moneys shall be requisitioned from this state's account in the unemployment trust fund solely for the payment of benefits and repayment of loans from the federal government to guarantee solvency of the unemployment compensation fund in accordance with regulations prescribed by the commissioner, except that money credited to this state's account pursuant to section 903 of the social security act, as amended, shall be used exclusively as provided in RCW 50.16.030(5). The commissioner shall from time to time requisition from the unemployment trust fund such amounts, not exceeding the amounts standing to its account therein, as he or she deems necessary for the payment of benefits for a reasonable future period. Upon receipt thereof the treasurer shall deposit such moneys in the benefit account and shall issue his or her warrants for the payment of benefits solely from such benefits account.
     (b) Moneys for the payment of regular benefits as defined in RCW 50.22.010 shall be requisitioned during fiscal year 2006 in the following order:
     (i) First, from the moneys credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended in section 209 of the temporary extended unemployment compensation act of 2002 (42 U.S.C. Sec. 1103(d)), the amount equal to the amount of benefits charged that exceed the contributions paid in the four consecutive calendar quarters ending on June 30, 2006, because the social cost factor contributions that employers are subject to under RCW 50.29.025(2)(b)(ii)(B) are less than the social cost factor contributions that these employers would have been subject to if RCW 50.29.025(2)(b)(ii)(A) had applied to these employers; and
     (ii) Second, after the requisitioning required under (b)(i) of this subsection, from all other moneys credited to this state's account in the unemployment trust fund.
     (c) Moneys for the payment of regular benefits as defined in RCW 50.22.010 shall be requisitioned during fiscal year 2011 in the following order:
     (i) First, from the moneys credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended in section 2003 of the American recovery and reinvestment act of 2009 (42 U.S.C. Sec. 1103(f)), ninety-seven million seven hundred twenty-nine thousand two hundred nineteen dollars; and
     (ii) Second, after the requisitioning required under (c)(i) of this subsection, from all other moneys credited to this state's account in the unemployment trust fund.
     (2) Expenditures of such moneys in the benefit account and refunds from the clearing account shall not be subject to any provisions of law requiring specific appropriations or other formal release by state officers of money in their custody, and RCW 43.01.050, as amended, shall not apply. All warrants issued by the treasurer for the payment of benefits and refunds shall bear the signature of the treasurer and the countersignature of the commissioner, or his or her duly authorized agent for that purpose.
     (3) Any balance of moneys requisitioned from the unemployment trust fund which remains unclaimed or unpaid in the benefit account after the expiration of the period for which sums were requisitioned shall either be deducted from estimates for, and may be utilized for the payment of, benefits during succeeding periods, or in the discretion of the commissioner, shall be redeposited with the secretary of the treasury of the United States of America to the credit of this state's account in the unemployment trust fund.
     (4) Money credited to the account of this state in the unemployment trust fund by the secretary of the treasury of the United States of America pursuant to section 903 of the social security act, as amended, may be requisitioned and used for the payment of expenses incurred for the administration of this title pursuant to a specific appropriation by the legislature, provided that the expenses are incurred and the money is requisitioned after the enactment of an appropriation law which:
     (a) Specifies the purposes for which such money is appropriated and the amounts appropriated therefor;
     (b) Limits the period within which such money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and
     (c) Limits the amount which may be obligated during a twelve-month period beginning on July 1st and ending on the next June 30th to an amount which does not exceed the amount by which (i) the aggregate of the amounts credited to the account of this state pursuant to section 903 of the social security act, as amended, during the same twelve-month period and the thirty-four preceding twelve-month periods, exceeds (ii) the aggregate of the amounts obligated pursuant to RCW 50.16.030 (4), (5) and (6) and charged against the amounts credited to the account of this state during any of such thirty-five twelve-month periods. For the purposes of RCW 50.16.030 (4), (5) and (6), amounts obligated during any such twelve-month period shall be charged against equivalent amounts which were first credited and which are not already so charged; except that no amount obligated for administration during any such twelve-month period may be charged against any amount credited during such a twelve-month period earlier than the thirty-fourth twelve-month period preceding such period: PROVIDED, That any amount credited to this state's account under section 903 of the social security act, as amended, which has been appropriated for expenses of administration, whether or not withdrawn from the trust fund shall be excluded from the unemployment compensation fund balance for the purpose of experience rating credit determination.
     (5) Money credited to the account of this state pursuant to section 903 of the social security act, as amended, may not be withdrawn or used except for the payment of benefits and for the payment of expenses of administration and of public employment offices pursuant to RCW 50.16.030 (4), (5) and (6). However, moneys credited because of excess amounts in federal accounts in federal fiscal years 1999, 2000, and 2001 shall be used solely for the administration of the unemployment compensation program and are not subject to appropriation by the legislature for any other purpose.
     (6) Money requisitioned as provided in RCW 50.16.030 (4), (5) and (6) for the payment of expenses of administration shall be deposited in the unemployment compensation fund, but until expended, shall remain a part of the unemployment compensation fund. The commissioner shall maintain a separate record of the deposit, obligation, expenditure and return of funds so deposited. Any money so deposited which either will not be obligated within the period specified by the appropriation law or remains unobligated at the end of the period, and any money which has been obligated within the period but will not be expended, shall be returned promptly to the account of this state in the unemployment trust fund.

Sec. 8   RCW 50.24.010 and 2000 c 2 s 2 are each amended to read as follows:
     Contributions shall accrue and become payable by each employer (except employers as described in RCW 50.44.010 who have properly elected to make payments in lieu of contributions and those employers who are required to make payments in lieu of contributions) for each calendar year in which the employer is subject to this title at the rate established pursuant to chapter 50.29 RCW, and for rate years 2010 and 2011, plus any voluntary contributions and less any opportunity express unemployment tax credit under section 4 of this act.
     In each rate year, the amount of wages subject to tax for each individual shall be one hundred fifteen percent of the amount of wages subject to tax for the previous year rounded to the next lower one hundred dollars, except that the amount of wages subject to tax in any rate year shall not exceed eighty percent of the "average annual wage for contributions purposes" for the second preceding calendar year rounded to the next lower one hundred dollars. However, the amount subject to tax shall be twenty-four thousand three hundred dollars for rate year 2000.
     In making computations under this section and RCW 50.29.010, wages paid based on services for employers making payments in lieu of contributions shall not be considered remuneration. Moneys paid from the fund, based on services performed for employers who make payments in lieu of contributions, which have not been reimbursed to the fund as of any June 30 shall be deemed an asset of the unemployment compensation fund, to the extent that such moneys exceed the amount of payments in lieu of contributions which the commissioner has previously determined to be uncollectible: PROVIDED, FURTHER, That the amount attributable to employment with the state shall also include interest as provided for in RCW 50.44.020.
     Contributions shall become due and be paid by each employer to the treasurer for the unemployment compensation fund in accordance with such regulations as the commissioner may prescribe, and shall not be deducted, in whole or in part, from the remuneration of individuals in employment of the employer. Any deduction in violation of the provisions of this section shall be unlawful.
     In the payment of any 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.

NEW SECTION.  Sec. 9   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, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 10   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. 11   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.