BILL REQ. #: H-4401.2
_____________________________________________
HOUSE BILL 3103
_____________________________________________| State of Washington | 61st Legislature | 2010 Regular Session |
By Representative AndersonRead first time 01/25/10. Referred to Committee on Commerce & Labor.
AN ACT Relating to providing hiring incentives to employers by
reducing unemployment taxes; amending RCW 50.16.010; reenacting and
amending RCW 50.29.025; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 50.29.025 and 2009 c 493 s 2 and 2009 c 3 s 14 are
each reenacted and amended to read as follows:
(1) ((For contributions assessed for rate years 2005 through 2009,
the contribution rate for each employer subject to contributions under
RCW 50.24.010 shall be the sum of the array calculation factor rate and
the graduated social cost factor rate determined under this subsection,
and the solvency surcharge determined under RCW 50.29.041, if any.
(a) The array calculation factor rate shall be determined as
follows:
(i) An array shall be prepared, listing all qualified employers in
ascending order of their benefit ratios. The array shall show for each
qualified employer: (A) Identification number; (B) benefit ratio; and
(C) taxable payrolls for the four consecutive calendar quarters
immediately preceding the computation date and reported to the
employment security department by the cut-off date.
(ii) Each employer in the array shall be assigned to one of forty
rate classes according to his or her benefit ratio as follows, and,
except as provided in RCW 50.29.026, the array calculation factor rate
for each employer in the array shall be the rate specified in the rate
class to which the employer has been assigned:
Benefit Ratio | Rate
Class | Rate
(percent) |
At least | Less than |
| 0.000001 | 1 | 0.00 |
0.000001 | 0.001250 | 2 | 0.13 |
0.001250 | 0.002500 | 3 | 0.25 |
0.002500 | 0.003750 | 4 | 0.38 |
0.003750 | 0.005000 | 5 | 0.50 |
0.005000 | 0.006250 | 6 | 0.63 |
0.006250 | 0.007500 | 7 | 0.75 |
0.007500 | 0.008750 | 8 | 0.88 |
0.008750 | 0.010000 | 9 | 1.00 |
0.010000 | 0.011250 | 10 | 1.15 |
0.011250 | 0.012500 | 11 | 1.30 |
0.012500 | 0.013750 | 12 | 1.45 |
0.013750 | 0.015000 | 13 | 1.60 |
0.015000 | 0.016250 | 14 | 1.75 |
0.016250 | 0.017500 | 15 | 1.90 |
0.017500 | 0.018750 | 16 | 2.05 |
0.018750 | 0.020000 | 17 | 2.20 |
0.020000 | 0.021250 | 18 | 2.35 |
0.021250 | 0.022500 | 19 | 2.50 |
0.022500 | 0.023750 | 20 | 2.65 |
0.023750 | 0.025000 | 21 | 2.80 |
0.025000 | 0.026250 | 22 | 2.95 |
0.026250 | 0.027500 | 23 | 3.10 |
0.027500 | 0.028750 | 24 | 3.25 |
0.028750 | 0.030000 | 25 | 3.40 |
0.030000 | 0.031250 | 26 | 3.55 |
0.031250 | 0.032500 | 27 | 3.70 |
0.032500 | 0.033750 | 28 | 3.85 |
0.033750 | 0.035000 | 29 | 4.00 |
0.035000 | 0.036250 | 30 | 4.15 |
0.036250 | 0.037500 | 31 | 4.30 |
0.037500 | 0.040000 | 32 | 4.45 |
0.040000 | 0.042500 | 33 | 4.60 |
0.042500 | 0.045000 | 34 | 4.75 |
0.045000 | 0.047500 | 35 | 4.90 |
0.047500 | 0.050000 | 36 | 5.05 |
0.050000 | 0.052500 | 37 | 5.20 |
0.052500 | 0.055000 | 38 | 5.30 |
0.055000 | 0.057500 | 39 | 5.35 |
0.057500 | | 40 | 5.40 |
(b) The graduated social cost factor rate shall be determined as
follows:
(i)(A) Except as provided in (b)(i)(B) and (C) of this subsection,
the commissioner shall calculate the flat social cost factor for a rate
year by dividing the total social cost by the total taxable payroll.
The division shall be carried to the second decimal place with the
remaining fraction disregarded unless it amounts to five hundredths or
more, in which case the second decimal place shall be rounded to the
next higher digit. The flat social cost factor shall be expressed as
a percentage.
(B) If, on the cut-off date, the balance in the unemployment
compensation fund is determined by the commissioner to be an amount
that will provide more than ten months of unemployment benefits, the
commissioner shall calculate the flat social cost factor for the rate
year immediately following the cut-off date by reducing the total
social cost by the dollar amount that represents the number of months
for which the balance in the unemployment compensation fund on the cut-off date will provide benefits above ten months and dividing the result
by the total taxable payroll. However, the calculation under this
subsection (1)(b)(i)(B) for a rate year may not result in a flat social
cost factor that is more than four-tenths lower than the calculation
under (b)(i)(A) of this subsection for that rate year.
For the purposes of this subsection, the commissioner shall
determine the number of months of unemployment benefits in the
unemployment compensation fund using the benefit cost rate for the
average of the three highest calendar benefit cost rates in the twenty
consecutive completed calendar years immediately preceding the cut-off
date or a period of consecutive calendar years immediately preceding
the cut-off date that includes three recessions, if longer.
(C) The minimum flat social cost factor calculated under this
subsection (1)(b) shall be six-tenths of one percent, except that if
the balance in the unemployment compensation fund is determined by the
commissioner to be an amount that will provide:
(I) At least twelve months but less than fourteen months of
unemployment benefits, the minimum shall be five-tenths of one percent;
or
(II) At least fourteen months of unemployment benefits, the minimum
shall be five-tenths of one percent, except that, for employers in rate
class 1, the minimum shall be forty-five hundredths of one percent.
(ii)(A) Except as provided in (b)(ii)(B) of this subsection, the
graduated social cost factor rate for each employer in the array is the
flat social cost factor multiplied by the percentage specified as
follows for the rate class to which the employer has been assigned in
(a)(ii) of this subsection, except that the sum of an employer's array
calculation factor rate and the graduated social cost factor rate may
not exceed six and five-tenths percent or, for employers whose North
American industry classification system code is within "111," "112,"
"1141," "115," "3114," "3117," "42448," or "49312," may not exceed six
percent through rate year 2007 and may not exceed five and seven-tenths
percent for rate years 2008 and 2009:
(I) Rate class 1 - 78 percent;
(II) Rate class 2 - 82 percent;
(III) Rate class 3 - 86 percent;
(IV) Rate class 4 - 90 percent;
(V) Rate class 5 - 94 percent;
(VI) Rate class 6 - 98 percent;
(VII) Rate class 7 - 102 percent;
(VIII) Rate class 8 - 106 percent;
(IX) Rate class 9 - 110 percent;
(X) Rate class 10 - 114 percent;
(XI) Rate class 11 - 118 percent; and
(XII) Rate classes 12 through 40 - 120 percent.
(B) For contributions assessed beginning July 1, 2005, through
December 31, 2007, for employers whose North American industry
classification system code is "111," "112," "1141," "115," "3114,"
"3117," "42448," or "49312," the graduated social cost factor rate is
zero.
(iii) For the purposes of this section:
(A) "Total social cost" means the amount calculated by subtracting
the array calculation factor contributions paid by all employers with
respect to the four consecutive calendar quarters immediately preceding
the computation date and paid to the employment security department by
the cut-off date from the total unemployment benefits paid to claimants
in the same four consecutive calendar quarters. To calculate the flat
social cost factor for rate year 2005, the commissioner shall calculate
the total social cost using the array calculation factor contributions
that would have been required to be paid by all employers in the
calculation period if (a) of this subsection had been in effect for the
relevant period. To calculate the flat social cost factor for rate
years 2010 and 2011, the forty-five dollar increase paid as part of an
individual's weekly benefit amount as provided in RCW 50.20.1201 shall
not be considered for purposes of calculating the total unemployment
benefits paid to claimants in the four consecutive calendar quarters
immediately preceding the computation date.
(B) "Total taxable payroll" means the total amount of wages subject
to tax, as determined under RCW 50.24.010, for all employers in the
four consecutive calendar quarters immediately preceding the
computation date and reported to the employment security department by
the cut-off date.
(c) For employers who do not meet the definition of "qualified
employer" by reason of failure to pay contributions when due:
(i) The array calculation factor rate shall be two-tenths higher
than that in rate class 40, except employers who have an approved
agency-deferred payment contract by September 30th of the previous rate
year. If any employer with an approved agency-deferred payment
contract fails to make any one of the succeeding deferred payments or
fails to submit any succeeding tax report and payment in a timely
manner, the employer's tax rate shall immediately revert to an array
calculation factor rate two-tenths higher than that in rate class 40;
and
(ii) The social cost factor rate shall be the social cost factor
rate assigned to rate class 40 under (b)(ii) of this subsection.
(d) For all other employers not qualified to be in the array:
(i) For rate years 2005, 2006, and 2007:
(A) The array calculation factor rate shall be a rate equal to the
average industry array calculation factor rate as determined by the
commissioner, plus fifteen percent of that amount; however, the rate
may not be less than one percent or more than the array calculation
factor rate in rate class 40; and
(B) The social cost factor rate shall be a rate equal to the
average industry social cost factor rate as determined by the
commissioner, plus fifteen percent of that amount, but not more than
the social cost factor rate assigned to rate class 40 under (b)(ii) of
this subsection.
(ii) For contributions assessed for rate years 2008 and 2009:
(A) The array calculation factor rate shall be a rate equal to the
average industry array calculation factor rate as determined by the
commissioner, multiplied by the history factor, but not less than one
percent or more than the array calculation factor rate in rate class
40;
(B) The social cost factor rate shall be a rate equal to the
average industry social cost factor rate as determined by the
commissioner, multiplied by the history factor, but not more than the
social cost factor rate assigned to rate class 40 under (b)(ii) of this
subsection; and
(C) The history factor shall be based on the total amounts of
benefits charged and contributions paid in the three fiscal years
ending prior to the computation date by employers not qualified to be
in the array, other than employers in (c) of this subsection, who were
first subject to contributions in the calendar year ending three years
prior to the computation date. The commissioner shall calculate the
history ratio by dividing the total amount of benefits charged by the
total amount of contributions paid in this three-year period by these
employers. The division shall be carried to the second decimal place
with the remaining fraction disregarded unless it amounts to five
one-hundredths or more, in which case the second decimal place shall be
rounded to the next higher digit. The commissioner shall determine the
history factor according to the history ratio as follows:
| History
Ratio | | History
Factor
(percent) |
| | At least | Less than | |
(I) | | .95 | 90 |
(II) | .95 | 1.05 | 100 |
(III) | 1.05 | | 115 |
(2))) (a)(i) For contributions assessed in rate year 2010 ((and
thereafter)), the contribution rate for each employer subject to
contributions under RCW 50.24.010 shall be the sum of the array
calculation factor rate and the graduated social cost factor rate
determined under this subsection, and the solvency surcharge determined
under RCW 50.29.041, if any.
(((a))) (ii) For contributions assessed in rate years 2011 and
2012:
(A) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate classes 1
through 39 shall be five-sixths of the sum of the array calculation
factor rate and the graduated social cost factor rate determined under
this subsection, and the solvency surcharge determined under RCW
50.29.041, if any.
(B) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate class 40 shall
be the sum of the full array calculation factor rate and five-sixths of
the graduated social cost factor rate determined under this subsection,
and five-sixths of the solvency surcharge determined under RCW
50.29.041, if any.
(C) On the fifteenth day of the second month of each calendar
quarter, an amount shall be transferred from the general fund into the
unemployment compensation fund. The amount shall equal one-sixth of
the total contributions that would have been assessed for the previous
calendar quarter if the contribution rate for employers was the sum of
the array calculation factor rate and the graduated social cost factor
rate determined under this subsection, and the solvency surcharge
determined under RCW 50.29.041, if any.
(iii) For contributions assessed in rate years 2013 and 2014:
(A) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate classes 1
through 39 shall be two-thirds of the sum of the array calculation
factor rate and the graduated social cost factor rate determined under
this subsection, and the solvency surcharge determined under RCW
50.29.041, if any.
(B) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate class 40 shall
be the sum of the full array calculation factor rate and two-thirds of
the graduated social cost factor rate determined under this subsection,
and two-thirds of the solvency surcharge determined under RCW
50.29.041, if any.
(C) On the fifteenth day of the second month of each calendar
quarter, an amount shall be transferred from the general fund into the
unemployment compensation fund. The amount shall equal one-third of
the total contributions that would have been assessed for the previous
calendar quarter if the contribution rate for employers was the sum of
the array calculation factor rate and the graduated social cost factor
rate determined under this subsection, and the solvency surcharge
determined under RCW 50.29.041, if any.
(iv) For contributions assessed in rate year 2015 and thereafter:
(A) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate classes 1
through 39 shall be one-half of the sum of the array calculation factor
rate and the graduated social cost factor rate determined under this
subsection, and the solvency surcharge determined under RCW 50.29.041,
if any.
(B) The contribution rate for employers that are subject to
contributions under RCW 50.24.010 and assigned to rate class 40 shall
be the sum of the full array calculation factor rate and one-half of
the graduated social cost factor rate determined under this subsection,
and one-half of the solvency surcharge determined under RCW 50.29.041,
if any.
(C) On the fifteenth day of the second month of each calendar
quarter, an amount shall be transferred from the general fund into the
unemployment compensation fund. The amount shall equal one-half of the
total contributions that would have been assessed for the previous
calendar quarter if the contribution rate for employers was the sum of
the array calculation factor rate and the graduated social cost factor
rate determined under this subsection, and the solvency surcharge
determined under RCW 50.29.041, if any.
(b) The array calculation factor rate shall be determined as
follows:
(i) An array shall be prepared, listing all qualified employers in
ascending order of their benefit ratios. The array shall show for each
qualified employer: (A) Identification number; (B) benefit ratio; and
(C) taxable payrolls for the four consecutive calendar quarters
immediately preceding the computation date and reported to the
employment security department by the cut-off date.
(ii) Each employer in the array shall be assigned to one of forty
rate classes according to his or her benefit ratio as follows, and,
except as provided in RCW 50.29.026, the array calculation factor rate
for each employer in the array shall be the rate specified in the rate
class to which the employer has been assigned:
| Benefit Ratio | Rate
Class | Rate
(percent) |
| At least | Less than |
| 0.000001 | 1 | 0.00 |
| 0.000001 | 0.001250 | 2 | 0.11 |
| 0.001250 | 0.002500 | 3 | 0.22 |
| 0.002500 | 0.003750 | 4 | 0.33 |
| 0.003750 | 0.005000 | 5 | 0.43 |
| 0.005000 | 0.006250 | 6 | 0.54 |
| 0.006250 | 0.007500 | 7 | 0.65 |
| 0.007500 | 0.008750 | 8 | 0.76 |
| 0.008750 | 0.010000 | 9 | 0.88 |
| 0.010000 | 0.011250 | 10 | 1.01 |
| 0.011250 | 0.012500 | 11 | 1.14 |
| 0.012500 | 0.013750 | 12 | 1.28 |
| 0.013750 | 0.015000 | 13 | 1.41 |
| 0.015000 | 0.016250 | 14 | 1.54 |
| 0.016250 | 0.017500 | 15 | 1.67 |
| 0.017500 | 0.018750 | 16 | 1.80 |
| 0.018750 | 0.020000 | 17 | 1.94 |
| 0.020000 | 0.021250 | 18 | 2.07 |
| 0.021250 | 0.022500 | 19 | 2.20 |
| 0.022500 | 0.023750 | 20 | 2.38 |
| 0.023750 | 0.025000 | 21 | 2.50 |
| 0.025000 | 0.026250 | 22 | 2.63 |
| 0.026250 | 0.027500 | 23 | 2.75 |
| 0.027500 | 0.028750 | 24 | 2.88 |
| 0.028750 | 0.030000 | 25 | 3.00 |
| 0.030000 | 0.031250 | 26 | 3.13 |
| 0.031250 | 0.032500 | 27 | 3.25 |
| 0.032500 | 0.033750 | 28 | 3.38 |
| 0.033750 | 0.035000 | 29 | 3.50 |
| 0.035000 | 0.036250 | 30 | 3.63 |
| 0.036250 | 0.037500 | 31 | 3.75 |
| 0.037500 | 0.040000 | 32 | 4.00 |
| 0.040000 | 0.042500 | 33 | 4.25 |
| 0.042500 | 0.045000 | 34 | 4.50 |
| 0.045000 | 0.047500 | 35 | 4.75 |
| 0.047500 | 0.050000 | 36 | 5.00 |
| 0.050000 | 0.052500 | 37 | 5.15 |
| 0.052500 | 0.055000 | 38 | 5.25 |
| 0.055000 | 0.057500 | 39 | 5.30 |
| 0.057500 | | 40 | 5.40 |
(((b))) (c) The graduated social cost factor rate shall be
determined as follows:
(i)(A) Except as provided in (((b))) (c)(i)(B) and (C) of this
subsection, the commissioner shall calculate the flat social cost
factor for a rate year by dividing the total social cost by the total
taxable payroll. The division shall be carried to the second decimal
place with the remaining fraction disregarded unless it amounts to five
hundredths or more, in which case the second decimal place shall be
rounded to the next higher digit. The flat social cost factor shall be
expressed as a percentage.
(B) If, on the cut-off date, the balance in the unemployment
compensation fund is determined by the commissioner to be an amount
that will provide more than ten months of unemployment benefits, the
commissioner shall calculate the flat social cost factor for the rate
year immediately following the cut-off date by reducing the total
social cost by the dollar amount that represents the number of months
for which the balance in the unemployment compensation fund on the cut-off date will provide benefits above ten months and dividing the result
by the total taxable payroll. However, the calculation under this
subsection (((2)(b))) (1)(c)(i)(B) for a rate year may not result in a
flat social cost factor that is more than four-tenths lower than the
calculation under (((b))) (c)(i)(A) of this subsection for that rate
year.
For the purposes of this subsection, the commissioner shall
determine the number of months of unemployment benefits in the
unemployment compensation fund using the benefit cost rate for the
average of the three highest calendar benefit cost rates in the twenty
consecutive completed calendar years immediately preceding the cut-off
date or a period of consecutive calendar years immediately preceding
the cut-off date that includes three recessions, if longer.
(C) The minimum flat social cost factor calculated under this
subsection (((2)(b))) (1)(c) shall be six-tenths of one percent, except
that if the balance in the unemployment compensation fund is determined
by the commissioner to be an amount that will provide:
(I) At least ten months but less than eleven months of unemployment
benefits, the minimum shall be five-tenths of one percent; or
(II) At least eleven months but less than twelve months of
unemployment benefits, the minimum shall be forty-five hundredths of
one percent; or
(III) At least twelve months but less than thirteen months of
unemployment benefits, the minimum shall be four-tenths of one percent;
or
(IV) At least thirteen months but less than fifteen months of
unemployment benefits, the minimum shall be thirty-five hundredths of
one percent; or
(V) At least fifteen months but less than seventeen months of
unemployment benefits, the minimum shall be twenty-five hundredths of
one percent; or
(VI) At least seventeen months but less than eighteen months of
unemployment benefits, the minimum shall be fifteen hundredths of one
percent; or
(VII) At least eighteen months of unemployment benefits, the
minimum shall be fifteen hundredths of one percent through rate year
2011 and shall be zero thereafter.
(ii) The graduated social cost factor rate for each employer in the
array is the flat social cost factor multiplied by the percentage
specified as follows for the rate class to which the employer has been
assigned in (((a))) (b)(ii) of this subsection, except that the sum of
an employer's array calculation factor rate and the graduated social
cost factor rate may not exceed six percent or, for employers whose
North American industry classification system code is within "111,"
"112," "1141," "115," "3114," "3117," "42448," or "49312," may not
exceed five and four-tenths percent:
(A) Rate class 1 - 78 percent;
(B) Rate class 2 - 82 percent;
(C) Rate class 3 - 86 percent;
(D) Rate class 4 - 90 percent;
(E) Rate class 5 - 94 percent;
(F) Rate class 6 - 98 percent;
(G) Rate class 7 - 102 percent;
(H) Rate class 8 - 106 percent;
(I) Rate class 9 - 110 percent;
(J) Rate class 10 - 114 percent;
(K) Rate class 11 - 118 percent; and
(L) Rate classes 12 through 40 - 120 percent.
(iii) For the purposes of this section:
(A) "Total social cost" means the amount calculated by subtracting
the array calculation factor contributions paid by all employers with
respect to the four consecutive calendar quarters immediately preceding
the computation date and paid to the employment security department by
the cut-off date from the total unemployment benefits paid to claimants
in the same four consecutive calendar quarters.
(B) "Total taxable payroll" means the total amount of wages subject
to tax, as determined under RCW 50.24.010, for all employers in the
four consecutive calendar quarters immediately preceding the
computation date and reported to the employment security department by
the cut-off date.
(((c))) (d) For employers who do not meet the definition of
"qualified employer" by reason of failure to pay contributions when
due:
(i) The array calculation factor rate shall be two-tenths higher
than that in rate class 40, except employers who have an approved
agency-deferred payment contract by September 30th of the previous rate
year. If any employer with an approved agency-deferred payment
contract fails to make any one of the succeeding deferred payments or
fails to submit any succeeding tax report and payment in a timely
manner, the employer's tax rate shall immediately revert to an array
calculation factor rate two-tenths higher than that in rate class 40;
and
(ii) The social cost factor rate shall be the social cost factor
rate assigned to rate class 40 under (((b))) (c)(ii) of this
subsection.
(((d))) (e) For all other employers not qualified to be in the
array:
(i) The array calculation factor rate shall be a rate equal to the
average industry array calculation factor rate as determined by the
commissioner, multiplied by the history factor, but not less than one
percent or more than the array calculation factor rate in rate class
40;
(ii) The social cost factor rate shall be a rate equal to the
average industry social cost factor rate as determined by the
commissioner, multiplied by the history factor, but not more than the
social cost factor rate assigned to rate class 40 under (((b))) (c)(ii)
of this subsection; and
(iii) The history factor shall be based on the total amounts of
benefits charged and contributions paid in the three fiscal years
ending prior to the computation date by employers not qualified to be
in the array, other than employers in (((c))) (d) of this subsection,
who were first subject to contributions in the calendar year ending
three years prior to the computation date. The commissioner shall
calculate the history ratio by dividing the total amount of benefits
charged by the total amount of contributions paid in this three-year
period by these employers. The division shall be carried to the second
decimal place with the remaining fraction disregarded unless it amounts
to five one-hundredths or more, in which case the second decimal place
shall be rounded to the next higher digit. The commissioner shall
determine the history factor according to the history ratio as follows:
| History
Ratio | | History
Factor
(percent) |
| | At least | Less than | |
| (A) | | .95 | 90 |
| (B) | .95 | 1.05 | 100 |
| (C) | 1.05 | | 115 |
(((3))) (2) Assignment of employers by the commissioner to
industrial classification, for purposes of this section, shall be in
accordance with established classification practices found in the North
American industry classification system code.
Sec. 2 RCW 50.16.010 and 2009 c 564 s 946 are each amended to
read as follows:
(1) There shall be maintained as special funds, separate and apart
from all public moneys or funds of this state an unemployment
compensation fund, an administrative contingency fund, and a federal
interest payment fund, which shall be administered by the commissioner
exclusively for the purposes of this title, and to which RCW 43.01.050
shall not be applicable.
(2)(a) The unemployment compensation fund shall consist of:
(i) All contributions collected under RCW 50.24.010 and payments in
lieu of contributions collected pursuant to the provisions of this
title;
(ii) All amounts transferred from the general fund to the fund
pursuant to RCW 50.29.025;
(iii) Any property or securities acquired through the use of moneys
belonging to the fund;
(((iii))) (iv) All earnings of such property or securities;
(((iv))) (v) Any moneys received from the federal unemployment
account in the unemployment trust fund in accordance with Title XII of
the social security act, as amended;
(((v))) (vi) All money recovered on official bonds for losses
sustained by the fund;
(((vi))) (vii) All money credited to this state's account in the
unemployment trust fund pursuant to section 903 of the social security
act, as amended;
(((vii))) (viii) All money received from the federal government as
reimbursement pursuant to section 204 of the federal-state extended
compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304); and
(((viii))) (ix) All moneys received for the fund from any other
source.
(b) All moneys in the unemployment compensation fund shall be
commingled and undivided.
(3)(a) Except as provided in (b) of this subsection, the
administrative contingency fund shall consist of:
(i) All interest on delinquent contributions collected pursuant to
this title;
(ii) All fines and penalties collected pursuant to the provisions
of this title;
(iii) All sums recovered on official bonds for losses sustained by
the fund; and
(iv) Revenue received under RCW 50.24.014.
(b) All fees, fines, forfeitures, and penalties collected or
assessed by a district court because of the violation of this title or
rules adopted under this title shall be remitted as provided in chapter
3.62 RCW.
(c) Except as provided in (d) of this subsection, moneys available
in the administrative contingency fund, other than money in the special
account created under RCW 50.24.014, shall be expended upon the
direction of the commissioner, with the approval of the governor,
whenever it appears to him or her that such expenditure is necessary
solely for:
(i) The proper administration of this title and that insufficient
federal funds are available for the specific purpose to which such
expenditure is to be made, provided, the moneys are not substituted for
appropriations from federal funds which, in the absence of such moneys,
would be made available.
(ii) The proper administration of this title for which purpose
appropriations from federal funds have been requested but not yet
received, provided, the administrative contingency fund will be
reimbursed upon receipt of the requested federal appropriation.
(iii) The proper administration of this title for which compliance
and audit issues have been identified that establish federal claims
requiring the expenditure of state resources in resolution. Claims
must be resolved in the following priority: First priority is to
provide services to eligible participants within the state; second
priority is to provide substitute services or program support; and last
priority is the direct payment of funds to the federal government.
(d)(i) During the 2007-2009 fiscal biennium, moneys available in
the administrative contingency fund, other than money in the special
account created under RCW 50.24.014(1)(a), shall be expended as
appropriated by the legislature for: (A) The cost of the job skills or
worker retraining programs at the community and technical colleges and
administrative costs at the state board for community and technical
colleges; and (B) reemployment services such as business and project
development assistance, local economic development capacity building,
and local economic development financial assistance at the department
of ((community, trade, and economic development)) commerce. The
remaining appropriation may be expended as specified in (c) of this
subsection.
(ii) During the 2009-2011 fiscal biennium, moneys available in the
administrative contingency fund, other than money in the special
account created under RCW 50.24.014(1)(a), shall be expended by the
department of social and health services as appropriated by the
legislature for employment and training services and programs in the
WorkFirst program, and for the administrative costs of state agencies
participating in the WorkFirst program. The remaining appropriation
may be expended as specified in (c) of this subsection.
(4) Money in the special account created under RCW 50.24.014(1)(a)
may only be expended, after appropriation, for the purposes specified
in this section and RCW 50.62.010, 50.62.020, 50.62.030, 50.24.014,
50.44.053, and 50.22.010.
NEW SECTION. Sec. 3 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. 4 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.
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