BILL REQ. #: Z-0432.3
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/11/11. Referred to Committee on Labor & Workforce Development.
AN ACT Relating to responding to the current economic conditions by temporarily modifying the unemployment insurance program; amending RCW 50.22.010, 50.22.155, and 50.29.025; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 50.22.010 and 2009 c 493 s 4 are each amended to read
as follows:
As used in this chapter, unless the context clearly indicates
otherwise:
(1) "Extended benefit period" means a period which:
(a) Begins with the third week after a week for which there is an
"on" indicator; and
(b) Ends with the third week after the first week for which there
is an "off" indicator: PROVIDED, That no extended benefit period shall
last for a period of less than thirteen consecutive weeks, and further
that no extended benefit period may begin by reason of an "on"
indicator before the fourteenth week after the close of a prior
extended benefit period which was in effect with respect to this state.
(2) There is an "on" indicator for this state for a week if the
commissioner determines, in accordance with the regulations of the
United States secretary of labor, that for the period consisting of
such week and the immediately preceding twelve weeks:
(a) The rate of insured unemployment, not seasonally adjusted,
equaled or exceeded one hundred twenty percent of the average of such
rates for the corresponding thirteen-week period ending in each of the
preceding two calendar years and equaled or exceeded five percent; or
(b) For benefits for weeks of unemployment beginning after March 6,
1993:
(i) The average rate of total unemployment, seasonally adjusted, as
determined by the United States secretary of labor, for the period
consisting of the most recent three months for which data for all
states are published before the close of the week equals or exceeds six
and one-half percent; and
(ii) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States secretary of
labor, for the three-month period referred to in (b)(i) of this
subsection, equals or exceeds one hundred ten percent of the average
for either or both of the corresponding three-month periods ending in
the two preceding calendar years.
(c) This subsection applies as provided under the tax relief,
unemployment insurance reauthorization, and job creation act of 2010
(P.L. 111-312) as it existed on December 17, 2010, or such subsequent
date as may be provided by the department by rule, consistent with the
purposes of this subsection:
(i) The average rate of insured unemployment, not seasonally
adjusted, equaled or exceeded one hundred twenty percent of the average
of such rates for the corresponding thirteen-week period ending in all
of the preceding three calendar years and equaled or exceeded five
percent; or
(ii) The average rate of total unemployment, seasonally adjusted,
as determined by the United States secretary of labor, for the period
consisting of the most recent three months for which data for all
states are published before the close of the week equals or exceeds six
and one-half percent; and
(iii) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States secretary of
labor, for the three-month period referred to in (c)(ii) of this
subsection, equals or exceeds one hundred ten percent of the average
for any of the corresponding three-month periods ending in the three
preceding calendar years.
(3) "High unemployment period" means any period of unemployment
beginning after March 6, 1993, during which an extended benefit period
would be in effect if:
(a) The average rate of total unemployment, seasonally adjusted, as
determined by the United States secretary of labor, for the period
consisting of the most recent three months for which data for all
states are published before the close of the week equals or exceeds
eight percent; and
(b) The average rate of total unemployment in the state, seasonally
adjusted, as determined by the United States secretary of labor, for
the three-month period referred to in (a) of this subsection, equals or
exceeds one hundred ten percent of the average for either or both of
the corresponding three-month periods ending in the two preceding
calendar years.
(c) This subsection applies as provided under the tax relief,
unemployment insurance reauthorization, and job creation act of 2010
(P.L. 111-312) as it existed on December 17, 2010, or such subsequent
date as may be provided by the department by rule, consistent with the
purposes of this subsection.
(i) The average rate of total unemployment, seasonally adjusted, as
determined by the United States secretary of labor, for the period
consisting of the most recent three months for which data for all
states are published before the close of the week equals or exceeds
eight percent; and
(ii) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States secretary of
labor, for the three-month period referred to in (a) of this
subsection, equals or exceeds one hundred ten percent of the average
for any of the corresponding three-month periods ending in the three
preceding calendar years.
(4) There is an "off" indicator for this state for a week only if,
for the period consisting of such week and immediately preceding twelve
weeks, none of the options specified in subsection (2) or (3) of this
section result in an "on" indicator.
(5) "Regular benefits" means benefits payable to an individual
under this title or under any state law (including benefits payable to
federal civilian employees and to ex-servicemen pursuant to 5 U.S.C.
chapter 85) other than extended benefits or additional benefits.
(6) "Extended benefits" means benefits payable for weeks of
unemployment beginning in an extended benefit period to an individual
under this title or under any state law (including benefits payable to
federal civilian employees and to ex-servicemen pursuant to 5 U.S.C.
chapter 85) other than regular or additional benefits.
(7) "Additional benefits" are benefits totally financed by the
state and payable under this title to exhaustees by reason of
conditions of high unemployment or by reason of other special factors.
(8) "Eligibility period" of an individual means:
(a) The period consisting of the weeks in his or her benefit year
which begin in an extended benefit period that is in effect in this
state and, if his or her benefit year ends within such extended benefit
period, any weeks thereafter which begin in such period; or
(b) For an individual who is eligible for emergency unemployment
compensation during the extended benefit period beginning February 15,
2009, the period consisting of the week ending February 28, 2009,
((through the week ending May 29, 2010)) and applies as provided under
the tax relief, unemployment insurance reauthorization, and job
creation act of 2010 (P.L. 111-312) as it existed on December 17, 2010,
or such subsequent date as may be provided by the department by rule,
consistent with the purposes of this subsection.
(9) "Additional benefit eligibility period" of an individual means
the period consisting of the weeks in his or her benefit year which
begin in an additional benefit period that is in effect and, if his or
her benefit year ends within such additional benefit period, any weeks
thereafter which begin in such period.
(10) "Exhaustee" means an individual who, with respect to any week
of unemployment in his or her eligibility period:
(a) Has received, prior to such week, all of the regular benefits
that were payable to him or her under this title or any other state law
(including dependents' allowances and regular benefits payable to
federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85)
in his or her current benefit year that includes such week; or
(b) Has received, prior to such week, all of the regular benefits
that were available to him or her under this title or any other state
law (including dependents' allowances and regular benefits available to
federal civilian employees and ex-servicemen under 5 U.S.C. chapter 85)
in his or her current benefit year that includes such week, after the
cancellation of some or all of his or her wage credits or the total or
partial reduction of his or her rights to regular benefits: PROVIDED,
That, for the purposes of (a) and (b), an individual shall be deemed to
have received in his or her current benefit year all of the regular
benefits that were payable to him or her, or available to him or her,
as the case may be, even though:
(i) As a result of a pending appeal with respect to wages or
employment, or both, that were not included in the original monetary
determination with respect to his or her current benefit year, he or
she may subsequently be determined to be entitled to more regular
benefits; or
(ii) By reason of the seasonal provisions of another state law, he
or she is not entitled to regular benefits with respect to such week of
unemployment (although he or she may be entitled to regular benefits
with respect to future weeks of unemployment in the next season, as the
case may be, in his or her current benefit year), and he or she is
otherwise an exhaustee within the meaning of this section with respect
to his or her right to regular benefits under such state law seasonal
provisions during the season or off season in which that week of
unemployment occurs; or
(iii) Having established a benefit year, no regular benefits are
payable to him or her during such year because his or her wage credits
were canceled or his or her right to regular benefits was totally
reduced as the result of the application of a disqualification; or
(c) His or her benefit year having ended prior to such week, he or
she has insufficient wages or employment, or both, on the basis of
which he or she could establish in any state a new benefit year that
would include such week, or having established a new benefit year that
includes such week, he or she is precluded from receiving regular
benefits by reason of the provision in RCW 50.04.030 which meets the
requirement of section 3304(a)(7) of the Federal Unemployment Tax Act,
or the similar provision in any other state law; and
(d)(i) Has no right for such week to unemployment benefits or
allowances, as the case may be, under the Railroad Unemployment
Insurance Act, the Trade Expansion Act of 1962, and such other federal
laws as are specified in regulations issued by the United States
secretary of labor; and
(ii) Has not received and is not seeking for such week unemployment
benefits under the unemployment compensation law of Canada, unless the
appropriate agency finally determines that he or she is not entitled to
unemployment benefits under such law for such week.
(11) "State law" means the unemployment insurance law of any state,
approved by the United States secretary of labor under section 3304 of
the internal revenue code of 1954.
Sec. 2 RCW 50.22.155 and 2009 c 3 s 4 are each amended to read as
follows:
(1) This section applies to claims with an effective date on or
after April 5, 2009.
(2) Subject to availability of funds, training benefits are
available for an individual who is eligible for or has exhausted
entitlement to unemployment compensation benefits when:
(a) The individual is a dislocated worker as defined in RCW
50.04.075 and, after assessment of the individual's labor market,
occupation, or skills, is determined to need job-related training to
find suitable employment in the individual's labor market. The
assessment of demand for the individual's occupation or skill sets must
be substantially based on declining occupation or skill sets and high-demand occupations identified in local labor market areas by the local
workforce development councils in cooperation with the employment
security department and its labor market information division; or
(b) For claims with an effective date on or after September 7,
2009, the individual:
(i) Earned an average hourly wage in the individual's base year
that is less than one hundred thirty percent of the state minimum
wage((,)) and, after assessment, it is determined that the individual's
earning potential will be enhanced through vocational training. The
individual's average hourly wage is calculated by dividing the total
wages paid by the total hours worked in the individual's base year;
(ii) Served in the United States military or the Washington
national guard during the twelve-month period prior to the application
date, was honorably discharged from military service or the Washington
national guard and, after assessment, is determined to need job-related
training to find suitable employment in the individual's labor market;
(iii) Is currently serving in the Washington national guard and,
after assessment, is determined to need job-related training to find
suitable employment in the individual's labor market; or
(iv) Is disabled due to an injury or illness and, after assessment,
is determined to be unable to return to his or her previous occupation
and to need job-related training to find suitable employment in the
individual's labor market.
(3)(a) The individual must develop an individual training program
that is submitted to the commissioner for approval within ninety days
after the individual is notified by the employment security department
of the requirements of this section;
(b) The individual must enter the approved training program by one
hundred twenty days after the date of the notification, unless the
employment security department determines that the training is not
available during the one hundred twenty days, in which case the
individual enters training as soon as it is available;
(c) The department may waive the deadlines established under this
subsection for reasons deemed by the commissioner to be good cause.
(4) The individual must be enrolled in training approved under this
section on a full-time basis as determined by the educational
institution, except that less than full-time training may be approved
when the individual has a physical, mental, or emotional disability
that precludes enrollment on a full-time basis.
(5) The individual must make satisfactory progress in the training
as defined by the commissioner and certified by the educational
institution.
(6) An individual is not eligible for training benefits under this
section if he or she:
(a) Is a standby claimant who expects recall to his or her regular
employer; or
(b) Has a definite recall date that is within six months of the
date he or she is laid off.
(7) The following definitions apply throughout this section unless
the context clearly requires otherwise.
(a) "Educational institution" means an institution of higher
education as defined in RCW 28B.10.016 or an educational institution as
defined in RCW 28C.04.410, including equivalent educational
institutions in other states.
(b) "High-demand occupation" means an occupation with a substantial
number of current or projected employment opportunities.
(c) "Training benefits" means additional benefits paid under this
section.
(d) "Training program" means:
(i) An education program determined to be necessary as a
prerequisite to vocational training after counseling at the educational
institution in which the individual enrolls under his or her approved
training program; or
(ii) A vocational training program at an educational institution
that:
(A) Is targeted to training for a high-demand occupation;
(B) Is likely to enhance the individual's marketable skills and
earning power; and
(C) Meets the criteria for performance developed by the workforce
training and education coordinating board for the purpose of
determining those training programs eligible for funding under Title I
of P.L. 105-220.
"Training program" does not include any course of education
primarily intended to meet the requirements of a baccalaureate or
higher degree, unless the training meets specific requirements for
certification, licensing, or for specific skills necessary for the
occupation.
(8) Benefits shall be paid as follows:
(a) The total training benefit amount shall be fifty-two times the
individual's weekly benefit amount, reduced by the total amount of
regular benefits and extended benefits paid, or deemed paid, with
respect to the benefit year.
(b) The weekly benefit amount shall be the same as the regular
weekly amount payable during the applicable benefit year and shall be
paid under the same terms and conditions as regular benefits.
(c) Training benefits shall be paid before any extended benefits
but not before any similar federally funded program.
(d) Training benefits are not payable for weeks more than two years
beyond the end of the benefit year of the regular claim. However,
training benefits are not payable for weeks more than three years
beyond the end of the benefit year of the regular claim when
individuals are eligible for benefits in accordance with RCW
50.22.010(2)(c) or (3)(c).
(9) The requirement under RCW 50.22.010(10) relating to exhausting
regular benefits does not apply to an individual otherwise eligible for
training benefits under this section when the individual's benefit year
ends before his or her training benefits are exhausted and the
individual is eligible for a new benefit year. These individuals will
have the option of remaining on the original claim or filing a new
claim.
(10) Individuals who receive training benefits under RCW 50.22.150
or this section are not eligible for training benefits under this
section for five years from the last receipt of training benefits.
(11) An individual eligible to receive a trade readjustment
allowance under chapter 2, Title II of the trade act of 1974, as
amended, shall not be eligible to receive benefits under this section
for each week the individual receives such trade readjustment
allowance.
(12) An individual eligible to receive emergency unemployment
compensation under any federal law shall not be eligible to receive
benefits under this section for each week the individual receives such
compensation.
(13) All base year employers are interested parties to the approval
of training and the granting of training benefits.
(14) Each local workforce development council, in cooperation with
the employment security department and its labor market information
division, must identify occupations and skill sets that are declining
and high-demand occupations and skill sets. Each local workforce
development council shall update this information annually or more
frequently if needed.
(15) The commissioner shall adopt rules as necessary to implement
this section.
Sec. 3 RCW 50.29.025 and 2010 c 72 s 1 are each 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 |
History Ratio | History Factor (percent) | ||
At least | Less than | ||
(I) | .95 | 90 | |
(II) | .95 | 1.05 | 100 |
(III) | 1.05 | 115 |
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 |
History Ratio | History Factor (percent) | ||
At least | Less than | ||
(A) | .95 | 90 | |
(B) | .95 | 1.05 | 100 |
(C) | 1.05 | 115 |
NEW SECTION. Sec. 4 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. 5 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. 6 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.