S-2427               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5869

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Economic Development & Labor (originally sponsored by Senator Lee)

Read first time 3/1/89.

AN ACT Relating to unemployment compensation for 26 U.S.C. Sec. 501(c)(10) organizations; amending RCW 50.44.010; and creating a new section.

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

        Sec. 1.  Section 18, chapter 3, Laws of 1971 and RCW 50.44.010 are each amended to read as follows:

          Services performed subsequent to December 31, 1971, by an individual in the employ of a fraternal society, order, or association operating under the lodge system which is exempt from federal income taxation solely by reason of 26 U.S.C. Sec. 501(c)(10) or a religious, charitable, educational or other organization which is excluded from the term "employment" as defined in the federal unemployment tax act solely by reason of section 3306(c)(8) of that act shall be deemed services performed in employment unless such service is exempted under RCW 50.44.040.

          Such organization shall make payments to the unemployment compensation fund based on such services in accordance with the provisions of RCW 50.44.060.

NEW SECTION. Sec. 2.     If any part of this act is found to be in conflict with federal requirements which 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 hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act.  The rules under this act shall meet federal requirements which 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.