AN ACT Relating to services for employers; amending RCW 50.04.070, 50.04.072, 50.16.010, and 50.29.025; adding new sections to chapter 50.12 RCW; adding a new section to chapter 50.24 RCW; creating a new section; making an appropriation; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds it necessary and in the public interest to establish a job service program to certify that workers are legally entitled to work in the United States, maintain such records as required by law, and make such records available for inspection by the United States immigration and naturalization service and the United States department of labor. The legislature finds and declares that:

(1) National immigration reform and control legislation mandates added documentation requirements for new workers under the threat of increased employer sanctions. The Washington state employment security department is authorized to certify worker documentation, and can thereby alleviate the burdens placed on employers when hiring new workers.

(2) Employment services provided by the employment security department to Washington state agricultural employers and farmworkers need to be increased in view of agricultural labor shortages experienced since the enactment of the federal immigration and control act of 1986. This effort must involve working much more closely with the employers and employer organizations while ensuring that farmworkers are provided the full range of employment services available.

(3) Agricultural labor market information collection and analysis is necessary for the decision-making processes necessary to support immigration reform and control act activities on a local and state-wide basis.

NEW SECTION. Sec. 2. For the purposes of section 1 of this act, "to certify" refers to the act of verifying that an applicant is authorized to work in the United States by examining documentation as prescribed in the federal immigration reform and control act of 1986.

Sec. 3. Section 8, chapter 35, Laws of 1945 as last amended by section 4, chapter 5, Laws of 1985 ex. sess. and RCW 50.04.070 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, ((or)) to the special account in the administrative contingency fund under RCW 50.24.014, or to the special employer services account in the administrative contingency fund under section 7 of this 1988 act.

Sec. 4. Section 8, chapter 266, Laws of 1959 as last amended by section 5, chapter 5, Laws of 1985 ex. sess. and RCW 50.04.072 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, ((or)) to the special account in the administrative contingency fund under RCW 50.24.014 ((~~and~~)), or to the special employer services account in the administrative contingency fund under section 7 of this 1988 act. Such contributions and payments are deemed to be taxes due to the state of Washington.

Sec. 5. Section 60, chapter 35, Laws of 1945 as last amended by section 218, chapter 202, Laws of 1987 and RCW 50.16.010 are each amended to read as follows:

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. The unemployment compensation fund shall consist of

(1) all contributions and payments in lieu of contributions collected pursuant to the provisions of this title,

(2) interest earned upon any moneys in the fund,

(3) any property or securities acquired through the use of moneys belonging to the fund,

(4) all earnings of such property or securities,

(5) 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,

(6) all money recovered on official bonds for losses sustained by the fund,

(7) all money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended,

(8) 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

(9) all moneys received for the fund from any other source.

All moneys in the unemployment compensation fund shall be commingled and undivided.

The administrative contingency fund shall consist of all interest on delinquent contributions collected pursuant to this title after June 20, 1953, all fines and penalties collected pursuant to the provisions of this title, all sums recovered on official bonds for losses sustained by the fund, and revenue received under RCW 50.24.014 and section 7 of this 1988 act: PROVIDED, That all fees, fines, forfeitures and penalties collected or assessed by a district court because of the violation of a state law shall be remitted as provided in chapter 3.62 RCW as now exists or is later amended. Moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014, or the special employer services account created under section 7 of this 1988 act, 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 for:

(a) The proper administration of this title and no 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.

(b) 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.

Money in the special account created under RCW 50.24.014 may only be expended, after appropriation, for the purposes specified in this 1985 act. Money in the special employer services account created under section 7 of this 1988 act may only be expended, after appropriation, for services described in sections 1 and 2 of this 1988 act.

Sec. 6. Section 5, chapter 205, Laws of 1984 as last amended by section 3, chapter 171, Laws of 1987 and RCW 50.29.025 are each amended to read as follows:

The contribution rate for each employer shall be determined under this section.

(1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 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.

(2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:

!tm2,1,1 !tcInterval!sc ,1of!sc ,1the

!tcFund!sc ,1Balance!sc ,1Ratio!tj1!tcEffective

!tcExpres!ttsed!sc ,1as!sc ,1a!sc ,1Percentage!tj1!tcTax!sc ,1Sc!tthedule

!tl3.40 and!sc ,1above!tcA

!tl2.90 to 3.39!tcB

!tl2.40 to 2.89!tcC

!tl1.90 to 2.39!tcD

!tl1.40 to 1.89!tcE

!tlLess!sc ,1than!sc ,0011.40!tcF

(3) 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; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

(4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

(5) The contribution rate for each employer in the array shall be the rate specified in the following table for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

!tp1,4 !tcPercent!sc ,1of

!tcCumulative!tj1!trSchedule!sc ,1of!sc ,1Contribution!sc ,1Rates!sc ,1for

!tcTaxable!sc ,1Pa!ttyrolls!trEffective!sc ,1Tax!sc ,1Schedule!sc ,6

!tm1,2,1,1,1,1,1,1,1 !tj2!tcRate

From!tj1!tcTo!tcClass!tlA!tcB!tcC !tcD!tcE!tcF

!sc ,001((~~0.00!tj1!tc5. 00!tc1!tc0.48!tc0.58!tc0.98!tc1.48!tc1.88!tc2.48~~

~~!sc ,0015.01!tj1!tc10.00!tc2!tc0.48!tc0.78!tc1.18!tc1.68!tc2.08!tc2.68~~

~~10.01!tj1!tc15.00!tc3!tc0.58!tc0.98!tc1.38!tc1.78!tc2.28!tc2.88~~

~~15.01!tj1!tc20.00!tc 4!tc0.78!tc1.18!tc1.58!tc1.98!tc2.48!tc3.08~~

~~20.01!tj1!tc25.00!tc5!tc0.98!tc1.38!tc1.78!tc2.18!tc2.68!tc3.18~~

~~25.01!tj1!tc30.00!tc6!tc1.18!tc1.58!tc1.98!tc2.38!tc2.78!tc3.28~~

~~30.01!tj1!tc35.00!tc7!tc1.38!tc1.78!tc2.18!tc2.58!tc2.98!tc3.38~~

~~35.01!tj1!tc40.00!tc8!tc1.58!tc1.98!tc2.38!tc2.78!tc3.18!tc3.58~~

~~40.01!tj1!tc45.00!tc9!tc1.78!tc2.18!tc2.58!tc2.98!tc3.38!tc3.78~~

~~45.01!tj1!tc50.00!tc10!tc1.98!tc2.38!tc2.78!tc3.18!tc3.58!tc3.98~~

~~50.01!tj1!tc55.00!tc11!tc2.28!tc2.58!tc2.98!tc3.38!tc3.78!tc4.08~~

~~55.01!tj1!tc60.00!tc12!tc2.48!tc2.78!tc3.18!tc3.58!tc3.98!tc4.28~~

~~60.01!tj1!tc65.00!tc13!tc2.68!tc2.98!tc3.38!tc3.78!tc4.18!tc4.48~~

~~65.01!tj1!tc70.00!tc14!tc2.88!tc3.18!tc3.58!tc3.98!tc4.38!tc4.68~~

~~70.01!tj1!tc75.00!tc15!tc3.08!tc3.38!tc3.78!tc4.18!tc4.58!tc4.78~~

~~75.01!tj1!tc80.00!tc16!tc3.28!tc3.58!tc3.98!tc4.38!tc4.68!tc4.88~~

~~80.01!tj1!tc85.00!tc17!tc3.48!tc3.78!tc4.18!tc4.58!tc4.88!tc4.98~~

~~85.01!tj1!tc90.00!tc18!tc3.88!tc4.18!tc4.58!tc4.88!tc4.98!tc5.18~~

~~90.01!tj1!tc95.00!tc19!tc4.28!tc4.58!tc4.98!tc5.08!tc5.18!tc5.38~~

~~95.01!tj1!tc100.00!tc20!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40~~))

!sc ,0010.00!tj1!tc5. 00!tc1!tc0.46!tc0.56!tc0.96!tc1.46!tc1.86!tc2.46

!sc ,0015.01!tj1!tc10.00!tc2!tc0.46!tc0.76!tc1.16!tc1.66!tc2.06!tc2.66

10.01!tj1!tc15.00!tc3!tc0.56!tc0.96!tc1.36!tc1.76!tc2.26!tc2.86

15.01!tj1!tc20.00!tc 4!tc0.76!tc1.16!tc1.56!tc1.96!tc2.46!tc3.06

20.01!tj1!tc25.00!tc5!tc0.96!tc1.36!tc1.76!tc2.16!tc2.66!tc3.16

25.01!tj1!tc30.00!tc6!tc1.16!tc1.56!tc1.96!tc2.36!tc2.76!tc3.26

30.01!tj1!tc35.00!tc7!tc1.36!tc1.76!tc2.16!tc2.56!tc2.96!tc3.36

35.01!tj1!tc40.00!tc8!tc1.56!tc1.96!tc2.36!tc2.76!tc3.16!tc3.56

40.01!tj1!tc45.00!tc9!tc1.76!tc2.16!tc2.56!tc2.96!tc3.36!tc3.76

45.01!tj1!tc50.00!tc10!tc1.96!tc2.36!tc2.76!tc3.16!tc3.56!tc3.96

50.01!tj1!tc55.00!tc11!tc2.26!tc2.56!tc2.96!tc3.36!tc3.76!tc4.06

55.01!tj1!tc60.00!tc12!tc2.46!tc2.76!tc3.16!tc3.56!tc3.96!tc4.26

60.01!tj1!tc65.00!tc13!tc2.66!tc2.96!tc3.36!tc3.76!tc4.16!tc4.46

65.01!tj1!tc70.00!tc14!tc2.86!tc3.16!tc3.56!tc3.96!tc4.36!tc4.66

70.01!tj1!tc75.00!tc15!tc3.06!tc3.36!tc3.76!tc4.16!tc4.56!tc4.76

75.01!tj1!tc80.00!tc16!tc3.26!tc3.56!tc3.96!tc4.36!tc4.66!tc4.86

80.01!tj1!tc85.00!tc17!tc3.46!tc3.76!tc4.16!tc4.56!tc4.86!tc4.96

85.01!tj1!tc90.00!tc18!tc3.86!tc4.16!tc4.56!tc4.86!tc4.96!tc5.16

90.01!tj1!tc95.00!tc19!tc4.26!tc4.56!tc4.96!tc5.06!tc5.16!tc5.36

95.01!tj1!tc100.00!tc20!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40

(6) The contribution rate for each employer not qualified to be in the array shall be a rate equal to the average industry tax rate as determined by the commissioner; however, the rate may not be less than one percent: PROVIDED, That employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

NEW SECTION. Sec. 7. A new section is added to chapter 50.24 RCW to read as follows:

A separate and identifiable account to provide for the financing of special employer services programs is established in the administrative contingency fund. 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 the rate of two one-hundredths of one percent. The amount of wages subject to tax shall be determined under RCW 50.24.010.

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.

In the payment of any contribution 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.

If the commissioner determines that federal funding has been increased to provide financing for the services described in sections 1 and 2 of this act, the commissioner shall direct that collection of contributions under this section be decreased or terminated on the following January 1st.

NEW SECTION. Sec. 8. The sum of four million six hundred twenty-six thousand seven hundred fifteen dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1989, from the special employer service account of the administrative contingency fund to the employment security department for the purposes of the job service program under sections 1 and 2 of this act. However, if federal funding is provided or increased to provide for the financing of the services specified in this act, this appropriation shall be reduced by the amount that federal funding is increased specifically for such services. This portion of the state appropriation shall be deposited in the unemployment compensation fund.

NEW SECTION. Sec. 9. If any part of this act shall be found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state, such conflicting part of this act is hereby declared to be inoperative solely to the extent of such conflict, and such finding or determination shall not affect the operation of the remainder of this act.

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. Sections 1 and 2 of this act are each added to chapter 50.12 RCW.

NEW SECTION. Sec. 12. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately, except that sections 6 and 7 of this act shall be effective for rate years beginning January 1, 1988, and thereafter.