BILL REQ. #: S-2295.2
State of Washington | 61st Legislature | 2009 Regular Session |
READ FIRST TIME 03/02/09.
AN ACT Relating to workforce employment and training; amending RCW 50.16.010, 50.29.025, 50.24.014, and 50.20.---; adding a new section to chapter 50.22 RCW; creating new sections; providing an effective date; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 It is the purpose of this act to reduce the
amount paid by employers in the state to the unemployment compensation
fund by one-tenth of one percent of taxable wages.
It is also the purpose of this act to establish a separate fund for
workforce training grants for dislocated workers. This fund shall
consist of contributions of one-tenth of one percent of taxable wages.
It is the intent of the legislature that this act not result in any
net increase in employer tax rates.
Sec. 2 RCW 50.16.010 and 2009 c 4 s 906 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) Any property or securities acquired through the use of moneys
belonging to the fund;
(iii) All earnings of such property or securities;
(iv) 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) All money recovered on official bonds for losses sustained by
the fund;
(vi) 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) 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) 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) During the 2007-2009 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 the (i) 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 (ii) 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, and the remaining
appropriation 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.
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 section 5 of this act until the funds from the rate
transfer in RCW 50.24.014 are expended or no later than June 30, 2012,
RCW 50.62.010, 50.62.020, 50.62.030, 50.24.014, 50.44.053, and
50.22.010.
Sec. 3 RCW 50.29.025 and 2007 c 51 s 1 are each amended to read
as follows:
(1) Except as provided in subsection (2) of this section, the
contribution rate for each employer subject to contributions under RCW
50.24.010 shall be determined under this subsection.
(a) A fund balance ratio shall be determined by dividing the
balance in the unemployment compensation fund as of the September 30th
immediately preceding the rate year by the total remuneration paid by
all employers subject to contributions during the second calendar year
preceding the rate year and reported to the department by the following
March 31st. The division shall be carried to the fourth decimal place
with the remaining fraction, if any, disregarded. The fund balance
ratio shall be expressed as a percentage.
(b) The interval of the fund balance ratio, expressed as a
percentage, shall determine which tax schedule in (e) of this
subsection shall be in effect for assigning tax rates for the rate
year. The intervals for determining the effective tax schedule shall
be:
Interval of the Fund Balance Ratio Expressed as a Percentage | Effective Tax Schedule | |
2.90 and above | AA | |
2.10 to 2.89 | A | |
1.70 to 2.09 | B | |
1.40 to 1.69 | C | |
1.00 to 1.39 | D | |
0.70 to 0.99 | E | |
Less than 0.70 | F |
Percent of Cumulative Taxable Payrolls | Schedules of Contributions Rates for Effective Tax Schedule | |||||||||
From | To | Rate Class | AA | A | B | C | D | E | F | |
0.00 | 5.00 | 1 | 0.47 | 0.47 | 0.57 | 0.97 | 1.47 | 1.87 | 2.47 | |
5.01 | 10.00 | 2 | 0.47 | 0.47 | 0.77 | 1.17 | 1.67 | 2.07 | 2.67 | |
10.01 | 15.00 | 3 | 0.57 | 0.57 | 0.97 | 1.37 | 1.77 | 2.27 | 2.87 | |
15.01 | 20.00 | 4 | 0.57 | 0.73 | 1.11 | 1.51 | 1.90 | 2.40 | 2.98 | |
20.01 | 25.00 | 5 | 0.72 | 0.92 | 1.30 | 1.70 | 2.09 | 2.59 | 3.08 | |
25.01 | 30.00 | 6 | 0.91 | 1.11 | 1.49 | 1.89 | 2.29 | 2.69 | 3.18 | |
30.01 | 35.00 | 7 | 1.00 | 1.29 | 1.69 | 2.08 | 2.48 | 2.88 | 3.27 | |
35.01 | 40.00 | 8 | 1.19 | 1.48 | 1.88 | 2.27 | 2.67 | 3.07 | 3.47 | |
40.01 | 45.00 | 9 | 1.37 | 1.67 | 2.07 | 2.47 | 2.87 | 3.27 | 3.66 | |
45.01 | 50.00 | 10 | 1.56 | 1.86 | 2.26 | 2.66 | 3.06 | 3.46 | 3.86 | |
50.01 | 55.00 | 11 | 1.84 | 2.14 | 2.45 | 2.85 | 3.25 | 3.66 | 3.95 | |
55.01 | 60.00 | 12 | 2.03 | 2.33 | 2.64 | 3.04 | 3.44 | 3.85 | 4.15 | |
60.01 | 65.00 | 13 | 2.22 | 2.52 | 2.83 | 3.23 | 3.64 | 4.04 | 4.34 | |
65.01 | 70.00 | 14 | 2.40 | 2.71 | 3.02 | 3.43 | 3.83 | 4.24 | 4.54 | |
70.01 | 75.00 | 15 | 2.68 | 2.90 | 3.21 | 3.62 | 4.02 | 4.43 | 4.63 | |
75.01 | 80.00 | 16 | 2.87 | 3.09 | 3.42 | 3.81 | 4.22 | 4.53 | 4.73 | |
80.01 | 85.00 | 17 | 3.27 | 3.47 | 3.77 | 4.17 | 4.57 | 4.87 | 4.97 | |
85.01 | 90.00 | 18 | 3.67 | 3.87 | 4.17 | 4.57 | 4.87 | 4.97 | 5.17 | |
90.01 | 95.00 | 19 | 4.07 | 4.27 | 4.57 | 4.97 | 5.07 | 5.17 | 5.37 | |
95.01 | 100.00 | 20 | 5.40 | 5.40 | 5.40 | 5.40 | 5.40 | 5.40 | 5.40 |
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 |
History Ratio | History Factor (percent) | ||
At least | Less than | ||
(I) | .95 | 90 | |
(II) | .95 | 1.05 | 100 |
(III) | 1.05 | 115 |
Sec. 4 RCW 50.24.014 and 2007 c 327 s 2 are each amended to read
as follows:
(1)(a) A separate and identifiable account to provide for the
financing of special programs to assist the unemployed is established
in the administrative contingency fund. All money in this account
shall be expended solely for the purposes of this title and for no
other purposes whatsoever. Contributions to this account shall accrue
and become payable by each employer, 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, at a basic rate of two one-hundredths of one percent. The amount of wages subject to tax shall be
determined under RCW 50.24.010. Using the rate transferred from the
social cost factor rate in RCW 50.29.025(2) (b)(ii)(C), (c)(ii), and
(d)(ii)(B), the account may also be used for the administration and
provision of workforce training grants under section 5 of this act
until the funds from the rate transfer are expended or no later than
June 30, 2012. These funds shall not replace or supplant any existing
enrollments, programs, support services, or funding sources.
(b) A separate and identifiable account is established in the
administrative contingency fund for financing the employment security
department's administrative cost under RCW 50.22.150 and the costs
under RCW 50.22.150(10). All money in this account shall be expended
solely for the purposes of this title and for no other purposes
whatsoever. Contributions to this account shall accrue and become
payable by each employer, 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, those employers who are required to make payments in
lieu of contributions, those employers described under RCW
50.29.025(1)(f)(ii), and those qualified employers assigned rate class
20 or rate class 40, as applicable, under RCW 50.29.025, at a basic
rate of one one-hundredth of one percent. The amount of wages subject
to tax shall be determined under RCW 50.24.010. Any amount of
contributions payable under this subsection (1)(b) that exceeds the
amount that would have been collected at a rate of four one-thousandths
of one percent must be deposited in the account created in (a) of this
subsection.
(2)(a) Contributions under this section shall become due and be
paid by each employer under rules as the commissioner may prescribe,
and shall not be deducted, in whole or in part, from the remuneration
of individuals in the employ of the employer. Any deduction in
violation of this section is unlawful.
(b) In the payment of any contributions under this section, 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.
(3) If the commissioner determines that federal funding has been
increased to provide financing for the services specified in chapter
50.62 RCW, the commissioner shall direct that collection of
contributions under this section be terminated on the following January
1st.
NEW SECTION. Sec. 5 A new section is added to chapter 50.22 RCW
to read as follows:
(1) Subject to availability of funds, workforce training grants are
available to workforce development councils and eligible colleges to
serve individuals who are eligible for or have exhausted entitlement to
unemployment compensation benefits and are enrolled in a high demand
training program.
(2) The employment security department shall consult the state
board for community and technical colleges and the workforce training
and education coordinating board to identify high demand training
programs that are consistent with workforce training priorities and
based upon the comprehensive plan for workforce training developed by
the workforce training and education coordinating board.
(3) Workforce training grants can be used for the following
purposes for individuals eligible under subsection (1) of this section:
Expenses related to educational and career counseling services,
training plan development, and referral to appropriate training
programs in high demand occupations; increased capacity at community
and technical colleges to make training programs in high demand
occupations available; financial aid for eligible students enrolled at
an institution of higher education as defined in RCW 28B.10.016 or an
educational institution as defined in RCW 28C.04.410; and job
development and referral services.
(4) In consultation with the state board for community and
technical colleges and the workforce training and education
coordinating board, the employment security department shall review
proposals submitted jointly by workforce development councils and
eligible colleges and award funds through a competitive process.
Preference shall be given to proposals emphasizing health care workers
and energy efficiency workers. The employment security department
shall disburse funds for workforce training grants to workforce
development councils and eligible colleges whose projects are selected
for funding.
(5) The employment security department shall establish rules that
provide for the awarding of workforce training grants from the
administrative contingency fund defined in RCW 50.24.014(1)(a).
(6) After the first year of the program, if funds are not fully
expended, the employment security department may broaden individual
eligibility criteria.
(7) Workforce training grants cannot be used to replace or supplant
any existing enrollments, programs, support services, or funding
sources.
Sec. 6 RCW 50.20.--- and 2009 c 3 s 2 are each amended to read as
follows:
(1) This section applies beginning May 3, 2009.
(2)(a) For claims with an effective date before May 3, 2009, in
weeks of unemployment beginning on or after May 3, 2009, an
individual's weekly benefit amount shall be the amount established
under RCW 50.20.120 and subsection (3) of this section plus an
additional ((forty-five)) thirty-one dollars. For individuals who have
a balance of regular unemployment benefits available, the weekly
benefit amount under this subsection (2)(a) is payable for all
remaining weeks of regular, extended, emergency, supplemental, or
additional benefits on that claim. For individuals who have exhausted
regular benefits but have a balance of training benefits available as
provided in RCW 50.22.--- (section 4, chapter 3, Laws of 2009) or
50.22.150, the weekly benefit amount under this subsection (2)(a) is
payable for all remaining weeks of training benefits, but not for weeks
of extended, emergency, supplemental, or additional benefits on that
claim unless specifically authorized under federal or state law.
(b) For claims with an effective date on or after May 3, 2009, and
before January 3, 2010, an individual's weekly benefit amount shall be
the amount established under RCW 50.20.120 and subsection (3) of this
section plus an additional ((forty-five)) thirty-one dollars. The
weekly benefit amount under this subsection (2)(b) is payable for all
weeks of regular, extended, emergency, supplemental, or additional
benefits on that claim.
(3)(a) For benefit years beginning before May 3, 2009, in weeks of
unemployment beginning on or after May 3, 2009, the minimum amount
payable weekly shall be one hundred fifty-five dollars. For
individuals who have a balance of regular unemployment benefits
available, the minimum amount payable weekly under this subsection
(3)(a) is payable for all remaining weeks of regular, extended,
emergency, supplemental, or additional benefits on that claim. For
individuals who have exhausted regular benefits but have a balance of
training benefits available as provided in RCW 50.22.--- (section 4,
chapter 3, Laws of 2009) or 50.22.150, the minimum amount payable
weekly under this subsection (3)(a) is payable for all remaining weeks
of training benefits, but not for weeks of extended, emergency,
supplemental, or additional benefits on that claim unless specifically
authorized under federal or state law.
(b) For benefit years beginning on or after May 3, 2009, and before
January 3, 2010, the minimum amount payable weekly shall be one hundred
fifty-five dollars. The minimum amount payable weekly under this
subsection (3)(b) is payable for all weeks of regular, extended,
emergency, supplemental, or additional benefits on that claim.
(4) The weekly benefit amounts and the minimum amounts payable
weekly under this section shall increase the maximum benefits payable
to the individual under RCW 50.20.120(1) by a corresponding dollar
amount.
(5) The weekly benefit amounts under this section shall increase
the maximum amount payable weekly, irrespective of the provisions of
RCW 50.20.120(3).
(6) Payment of benefits to individuals whose weekly benefit amounts
are increased under this section shall be subject to the same terms and
conditions under this title that apply to the payment of benefits to
individuals whose benefit amounts are established under RCW 50.20.120.
(7) This section does not apply to claims with an effective date on
or after January 3, 2010.
NEW SECTION. Sec. 7 The employment security department together
with the state board for community and technical colleges shall report
to the appropriate committees of the legislature by December 1, 2012,
on the number of certified full-time equivalent students receiving
training as provided in this act and the types of training received by
the students. The report shall also include student demographics,
number of training plans developed, training completion rates,
employment rates, and comparisons of preprogram and postprogram wage
levels.
NEW SECTION. Sec. 8 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. 9 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. 10 Section 6 of 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 April 5, 2009.