6480.E AMS VOGN S5985.1

 

 

 

ESB 6480 - S AMD

By Senators Vognild and Newhouse

 

                                                   Adopted 3/11/94

 

    Strike everything after the enacting clause and insert the following:

 

    "NEW SECTION.  Sec. 1.  A new section is added to chapter 50.20 RCW to read as follows:

    The employment security department shall report to the appropriate standing committees of the legislature no later than July 1, 1995, regarding any updating of the department's computer technology that is necessary to or could address eliminating or reducing the need to make conditional payments.

 

    Sec. 2.  RCW 50.16.094 and 1993 c 226 s 6 are each amended to read as follows:

    An individual may be eligible for applicable employment security benefits while participating in work force training.  Eligibility is at the discretion of the commissioner of employment security after submitting a commissioner-approved training waiver and developing a detailed individualized training plan.

    ((Benefits paid under this section may not be charged to the experience rating accounts of individual employers.))

    The commissioner shall adopt rules as necessary to implement this section.

 

    Sec. 3.  RCW 50.22.090 and 1993 c 316 s 10 are each amended to read as follows:

    (1) An additional benefit period is established for counties identified under subsection (2) of this section beginning on the first Sunday after July 1, 1991, and for the forest products industry beginning with the third week after the first Sunday after July 1, 1991.  Benefits shall be paid as provided in subsection (3) of this section to exhaustees eligible under subsection (4) of this section.

    (2) The additional benefit period applies to counties having a population of less than five hundred thousand beginning with the third week after a week in which the commissioner determines that a county meets two of the following three criteria, as determined by the department, for the most recent year in which such data is available:  (a) A lumber and wood products employment location quotient at or above the state average; (b) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (c) an annual unemployment rate twenty percent or more above the state average.  The additional benefit period for a county may end no sooner than fifty-two weeks after the additional benefit period begins.

    (3) Additional benefits shall be paid as follows:

    (a) No new claims for additional benefits shall be accepted for weeks beginning after July 1, 1995, but for claims established on or before July 1, 1995, weeks of unemployment occurring after July 1, 1995, shall be compensated as provided in this section.

    (b) The total additional benefit amount shall be one hundred four 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.  Additional benefits shall not be payable for weeks more than two years beyond the end of the benefit year of the regular claim for an individual whose benefit year ends on or after July 27, 1991, and shall not be payable for weeks ending on or after two years after March 26, 1992, for individuals who become eligible as a result of chapter 47, Laws of 1992.

    (c) Notwithstanding the provisions of (b) of this subsection, individuals will be entitled to up to five additional weeks of benefits following the completion or termination of training.

    (d) The weekly benefit amount shall be calculated as specified in RCW 50.22.040.

    (e) Benefits paid under this section shall be paid under the same terms and conditions as regular benefits ((and shall not be charged to the experience rating account of individual employers)).  The additional benefit period shall be suspended with the start of an extended benefit period, or any totally federally funded benefit program, with eligibility criteria and benefits comparable to the program established by this section, and shall resume the first week following the end of the federal program.

    (f) The amendments in chapter 316, Laws of 1993 affecting subsection (3) (b) and (c) of this section shall apply in the case of all individuals determined to be monetarily eligible under this section without regard to the date eligibility was determined.

    (4) An additional benefit eligibility period is established for any exhaustee who:

    (a)(i) At the time of last separation from employment, resided in or was employed in a county identified under subsection (2) of this section; or

    (ii) During his or her base year, earned wages in at least six hundred eighty hours in the forest products industry, which shall be determined by the department but shall include the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment.  The commissioner may adopt rules further interpreting the industries covered under this subsection.  For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c); and

    (b)(i) Has received notice of termination or layoff; and

    (ii) Is unlikely to return to employment in his or her principal occupation or previous industry because of a diminishing demand within his or her labor market for his or her skills in the occupation or industry; and

    (c)(i)(A) Is notified by the department of the requirements of this section and develops an individual training program that is submitted to the commissioner for approval not later than sixty days after the individual is notified of the requirements of this section, and enters the approved training program not later than ninety days after the date of the individual's termination or layoff, or ninety days after July 1, 1991, whichever is later, unless the department determines that the training is not available during the ninety-day period, in which case the individual shall enter training as soon as it is available; or

    (B) Is unemployed as the result of a plant closure that occurs after November 1, 1992, in a county identified under subsection (2) of this section, did not comply with the requirements of (c)(i)(A) of this subsection due to good cause as demonstrated to the department, such as ambiguity over possible sale of the plant, develops a training program that is submitted to the commissioner for approval not later than sixty days from a date determined by the department to accommodate the good cause, and enters the approved training program not later than ninety days after the revised date established by the department, unless the department determines that the training is not available during the ninety-day period, in which case the individual shall enter training as soon as it is available; or

    (ii) Is enrolled in training approved under this section on a full-time basis and maintains satisfactory progress in the training; and

    (d) Does not receive a training allowance or stipend under the provisions of any federal or state law.

    (5) For the purposes of this section:

    (a) "Training program" means:

    (i) A remedial education program determined to be necessary after counseling at the educational institution in which the individual enrolls pursuant to his or her approved training program; or

    (ii) A vocational training program at an educational institution that:

    (A) Is training for a labor demand occupation;

    (B) Is likely to facilitate a substantial enhancement of the individual's marketable skills and earning power; and

    (C) Does not include on-the-job training or other training under which the individual is paid by an employer for work performed by the individual during the time that the individual receives additional benefits under subsection (1) of this section.

    (b) "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(3).

    (c) "Training allowance or stipend" means discretionary use, cash-in-hand payments available to the individual to be used as the individual sees fit, but does not mean direct or indirect compensation for training costs, such as tuition or books and supplies.

    (6) The commissioner shall adopt rules as necessary to implement this section.

    (7) For the purpose of this section, an individual who has a benefit year beginning after January 1, 1989, and ending before July 27, 1991, shall be treated as if his or her benefit year ended on July 27, 1991.

 

    Sec. 4.  RCW 50.29.020 and 1993 c 483 s 19 are each amended to read as follows:

    (1) An experience rating account shall be established and maintained for 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, based on existing records of the employment security department.  Benefits paid to any eligible individuals shall be charged to the experience rating accounts of each of such individual's employers during the individual's base year in the same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all employers to that individual during that base year, except as otherwise provided in this section.

    (2) The legislature finds that certain benefit payments, in whole or in part, should not be charged to the experience rating accounts of employers except those employers 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 described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, as follows:

    (a) Benefits paid to any individuals later determined to be ineligible shall not be charged to the experience rating account of any contribution paying employer.

    (b) ((Benefits paid to an individual under the provisions of RCW 50.12.050 shall not be charged to the account of any contribution paying employer if the wage credits earned in this state by the individual during his or her base year are less than the minimum amount necessary to qualify the individual for unemployment benefits.

    (c))) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer only if:

    (i) The individual files under RCW 50.06.020(1) after receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or

    (ii) The individual files under RCW 50.06.020(2).

    (((d))) (c) Benefits paid which represent the state's share of benefits payable under chapter 50.22 RCW shall not be charged to the experience rating account of any contribution paying employer.

    (((e))) (d) In the case of individuals who requalify for benefits under RCW 50.20.050 or 50.20.060, benefits based on wage credits earned prior to the disqualifying separation shall not be charged to the experience rating account of the contribution paying employer from whom that separation took place.

    (((f))) (e) In the case of individuals identified under RCW 50.20.015, benefits paid with respect to a calendar quarter, which exceed the total amount of wages earned in the state of Washington in the higher of two corresponding calendar quarters included within the individual's determination period, as defined in RCW 50.20.015, shall not be charged to the experience rating account of any contribution paying employer.

    (((g) Benefits paid to an individual who does not successfully complete an approved on-the-job training program under RCW 50.12.240 may not be charged to the experience rating account of the contribution-paying employer who provided the approved on-the-job training.))

    (3)(a) Beginning July 1, 1985, a contribution-paying base year employer, not otherwise eligible for relief of charges for benefits under this section, may receive such relief if the benefit charges result from payment to an individual who:

    (i) Last left the employ of such employer voluntarily for reasons not attributable to the employer;

    (ii) Was discharged for misconduct connected with his or her work not a result of inability to meet the minimum job requirements;

    (iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, work site, or other facility.  This closure must be for reasons directly attributable to a catastrophic occurrence such as fire, flood, or other natural disaster; or

    (iv) Continues to be employed on a regularly scheduled permanent part-time basis by a base year employer and who at some time during the base year was concurrently employed and subsequently separated from at least one other base year employer.  Benefit charge relief ceases when the employment relationship between the employer requesting relief and the claimant is terminated.  This subsection does not apply to shared work employers under chapter 50.60 RCW.

    (b) The employer requesting relief of charges under this subsection must request relief in writing within thirty days following mailing to the last known address of the notification of the valid initial determination of such claim, stating the date and reason for the separation or the circumstances of continued employment.  The commissioner, upon investigation of the request, shall determine whether relief should be granted.

 

    Sec. 5.  RCW 50.29.025 and 1993 c 483 s 21 and 1993 c 226 s 13 are each reenacted and 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:

 

           Interval of the

           Fund Balance Ratio                             Effective 

           Expressed as a Percentage                   Tax Schedule

 

           ((3.90)) 2.90 and above                               AA    

           ((3.40 to 3.89)) 2.50 to 2.89                          A    

           ((2.90 to 3.39)) 2.10 to 2.49                          B    

           ((2.40 to 2.89)) 1.60 to 2.09                          C    

           ((1.90 to 2.39)) 1.10 to 1.59                          D    

           ((1.40 to 1.89)) 0.60 to 1.09                          E    

           Less than ((1.40)) 0.60                                F    

 

    (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:

 

            Percent of

           Cumulative               Schedule of Contribution Rates

       Taxable Payrolls          for Effective Tax Schedule

                           ((Rate

     From    To      Class    AA      A      B              C              D             E              F

   0.00     5.00   1          0.48    0.36    0.46         0.86         1.36         1.76         2.36

   5.01   10.00   2          0.48    0.36    0.66         1.06         1.56         1.96         2.56

10.01   15.00   3          0.58    0.46    0.86         1.26         1.66         2.16         2.76

15.01   20.00   4          0.58    0.66    1.06         1.46         1.86         2.36         2.96

20.01   25.00   5          0.78    0.86    1.26         1.66         2.06         2.56         3.06

25.01   30.00   6          0.98    1.06    1.46         1.86         2.26         2.66         3.16

30.01   35.00   7          1.08    1.26    1.66         2.06         2.46         2.86         3.26

35.01   40.00   8          1.28    1.46    1.86         2.26         2.66         3.06         3.46

40.01   45.00   9          1.48    1.66    2.06         2.46         2.86         3.26         3.66

45.01   50.00 10          1.68    1.86    2.26         2.66         3.06         3.46         3.86

50.01   55.00 11          1.98    2.16    2.46         2.86         3.26         3.66         3.96

55.01   60.00 12          2.18    2.36    2.66         3.06         3.46         3.86         4.16

60.01   65.00 13          2.38    2.56    2.86         3.26         3.66         4.06         4.36

65.01   70.00 14          2.58    2.76    3.06         3.46         3.86         4.26         4.56

70.01   75.00 15          2.88    2.96    3.26         3.66         4.06         4.46         4.66

75.01   80.00 16          3.08    3.16    3.46         3.86         4.26         4.56         4.76

80.01   85.00 17          3.28    3.36    3.66         4.06         4.46         4.76         4.86

85.01   90.00 18          3.68    3.76    4.06         4.46         4.76         4.86         5.06

90.01   95.00 19          4.08    4.16    4.46         4.86         4.96         5.06         5.26

95.01 100.00 20          5.40    5.40    5.40         5.40         5.40         5.40         5.40))

 

                           Rate

From         To      Class    AA      A      B              C              D             E              F

 

 0.00       5.00   1          0.36    0.36    0.46         0.86         1.36         1.76         2.36

 5.01     10.00   2          0.36    0.36    0.66         1.06         1.56         1.96         2.56

 10.01   15.00   3          0.46    0.46    0.86         1.26         1.66         2.16         2.76

 15.01   20.00   4          0.46    0.66    1.06         1.46         1.86         2.36         2.96

20.01    25.00   5          0.66    0.86    1.26         1.66         2.06         2.56         3.06

25.01    30.00   6          0.86    1.06    1.46         1.86         2.26         2.66         3.16

30.01    35.00   7          0.96    1.26    1.66         2.06         2.46         2.86         3.26

35.01    40.00   8          1.16    1.46    1.86         2.26         2.66         3.06         3.46

40.01    45.00   9          1.36    1.66    2.06         2.46         2.86         3.26         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          1.86    2.16    2.46         2.86         3.26         3.66         3.96

55.01    60.00 12          2.06    2.36    2.66         3.06         3.46         3.86         4.16

60.01    65.00 13          2.26    2.56    2.86         3.26         3.66         4.06         4.36

65.01    70.00 14          2.46    2.76    3.06         3.46         3.86         4.26         4.56

70.01    75.00 15          2.76    2.96    3.26         3.66         4.06         4.46         4.66

75.01    80.00 16          2.96    3.16    3.46         3.86         4.26         4.56         4.76

80.01    85.00 17          3.16    3.36    3.66         4.06         4.46         4.76         4.86

85.01    90.00 18          3.56    3.76    4.06         4.46         4.76         4.86         5.06

90.01    95.00 19          3.96    4.16    4.46         4.86         4.96         5.06         5.26

95.01  100.00 20          5.40    5.40    5.40         5.40         5.40         5.40         5.40

 

    (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

    (a) 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 six-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 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 five and six-tenths percent for the current rate year;

    (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

    (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one 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.

 

    Sec. 6.  RCW 50.29.025 and 1994 c ... s 5 (section 5 of this act) 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:

 

           Interval of the

           Fund Balance Ratio                             Effective 

           Expressed as a Percentage                   Tax Schedule

 

           2.90 and above                                        AA    

           2.50 to 2.89                                           A    

           2.10 to 2.49                                           B    

           1.60 to 2.09                                           C    

           1.10 to 1.59                                           D    

           0.60 to 1.09                                           E    

           Less than 0.60                                         F    

 

    (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:

 

            Percent of

           Cumulative               Schedule of Contribution Rates

       Taxable Payrolls          for Effective Tax Schedule

                           ((Rate

From         To      Class    AA      A      B              C              D             E              F

 

 0.00       5.00   1          0.36    0.36    0.46         0.86         1.36         1.76         2.36

 5.01     10.00   2          0.36    0.36    0.66         1.06         1.56         1.96         2.56

10.01    15.00   3          0.46    0.46    0.86         1.26         1.66         2.16         2.76

15.01    20.00   4          0.46    0.66    1.06         1.46         1.86         2.36         2.96

20.01    25.00   5          0.66    0.86    1.26         1.66         2.06         2.56         3.06

25.01    30.00   6          0.86    1.06    1.46         1.86         2.26         2.66         3.16

30.01    35.00   7          0.96    1.26    1.66         2.06         2.46         2.86         3.26

35.01    40.00   8          1.16    1.46    1.86         2.26         2.66         3.06         3.46

40.01    45.00   9          1.36    1.66    2.06         2.46         2.86         3.26         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          1.86    2.16    2.46         2.86         3.26         3.66         3.96

55.01    60.00 12          2.06    2.36    2.66         3.06         3.46         3.86         4.16

60.01    65.00 13          2.26    2.56    2.86         3.26         3.66         4.06         4.36

65.01    70.00 14          2.46    2.76    3.06         3.46         3.86         4.26         4.56

70.01    75.00 15          2.76    2.96    3.26         3.66         4.06         4.46         4.66

75.01    80.00 16          2.96    3.16    3.46         3.86         4.26         4.56         4.76

80.01    85.00 17          3.16    3.36    3.66         4.06         4.46         4.76         4.86

85.01    90.00 18          3.56    3.76    4.06         4.46         4.76         4.86         5.06

90.01    95.00 19          3.96    4.16    4.46         4.86         4.96         5.06         5.26

95.01  100.00 20          5.40    5.40    5.40         5.40         5.40         5.40         5.40))

 

                           Rate

From         To      Class    AA      A      B              C              D             E              F

 

 0.00       5.00   1          0.48    0.48    0.58         0.98         1.48         1.88         2.48

 5.01     10.00   2          0.48    0.48    0.78         1.18         1.68         2.08         2.68

10.01    15.00   3          0.58    0.58    0.98         1.38         1.78         2.28         2.88

15.01    20.00   4          0.58    0.78    1.18         1.58         1.98         2.48         3.08

20.01    25.00   5          0.78    0.98    1.38         1.78         2.18         2.68         3.18

25.01    30.00   6          0.98    1.18    1.58         1.98         2.38         2.78         3.28

30.01    35.00   7          1.08    1.38    1.78         2.18         2.58         2.98         3.38

35.01    40.00   8          1.28    1.58    1.98         2.38         2.78         3.18         3.58

40.01    45.00   9          1.48    1.78    2.18         2.58         2.98         3.38         3.78

45.01    50.00 10          1.68    1.98    2.38         2.78         3.18         3.58         3.98

50.01    55.00 11          1.98    2.28    2.58         2.98         3.38         3.78         4.08

55.01    60.00 12          2.18    2.48    2.78         3.18         3.58         3.98         4.28

60.01    65.00 13          2.38    2.68    2.98         3.38         3.78         4.18         4.48

65.01    70.00 14          2.58    2.88    3.18         3.58         3.98         4.38         4.68

70.01    75.00 15          2.88    3.08    3.38         3.78         4.18         4.58         4.78

75.01    80.00 16          3.08    3.28    3.58         3.98         4.38         4.68         4.88

80.01    85.00 17          3.28    3.48    3.78         4.18         4.58         4.88         4.98

85.01    90.00 18          3.68    3.88    4.18         4.58         4.88         4.98         5.18

90.01    95.00 19          4.08    4.28    4.58         4.98         5.08         5.18         5.38

95.01  100.00 20          5.40    5.40    5.40         5.40         5.40         5.40         5.40

 

    (6) The contribution rate for each employer not qualified to be in the array shall be as follows:

    (a) 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 six-tenths percent, except employers who have an approved agency-deferred payment contract by September 30 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 five and six-tenths percent for the current rate year;

    (b) The contribution rate for employers exempt as of December 31, 1989, who are newly covered under the section 78, chapter 380, Laws of 1989 amendment to RCW 50.04.150 and not yet qualified to be in the array shall be 2.5 percent for employers whose standard industrial code is "013", "016", "017", "018", "019", "021", or "081"; and

    (c) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one 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.

 

    Sec. 7.  RCW 50.29.062 and 1989 c 380 s 81 are each amended to read as follows:

    Predecessor and successor employer contribution rates shall be computed in the following manner:

    (1) If the successor is an employer, as defined in RCW 50.04.080, at the time of the transfer, ((his or her)) its contribution rate shall remain unchanged for the remainder of the rate year in which the transfer occurs.  From and after January 1 following the transfer, the successor's contribution rate for each rate year shall be based on ((his or her)) its experience with payrolls and benefits including the experience of the acquired business or portion of a business from the date of transfer, as of the regular computation date for that rate year.

    (2) If the successor is not an employer at the time of the transfer, ((he or she)) it shall pay contributions at the ((rate class assigned to the predecessor employer at the time of the transfer for the remainder for that rate year and continuing until such time as he or she qualifies for a different rate in his or her own right)) lowest rate as determined by either of the following manners:

    (a) At the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year and continuing until the successor qualifies for a different rate in its own right.  Any experience relating to the assignment of that rate class attributable to the predecessor is transferred to the successor; or

    (b) At the contribution rate equal to the average industry rate as determined by the commissioner, but not less than one percent, and continuing until the successor qualifies for a different rate in its own right.  Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, must 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.

    (3) If the successor is not an employer at the time of the transfer and simultaneously acquires the business or a portion of the business of two or more employers in different rate classes, ((his or her)) its rate from the date the transfer occurred until the end of that rate year and until ((he or she)) it qualifies in ((his or her)) its own right for a new rate, shall be the highest rate class applicable at the time of the acquisition to any predecessor employer who is a party to the acquisition.

    (4) The contribution rate on any payroll retained by a predecessor employer shall remain unchanged for the remainder of the rate year in which the transfer occurs.

    (5) In all cases, from and after January 1 following the transfer, the predecessor's contribution rate for each rate year shall be based on ((his or her)) its experience with payrolls and benefits as of the regular computation date for that rate year including the experience of the acquired business or portion of business up to the date of transfer:  PROVIDED, That if all of the predecessor's business is transferred to a successor or successors, the predecessor shall not be a qualified employer until ((he or she)) it satisfies the requirements of a "qualified employer" as set forth in RCW 50.29.010.

 

    NEW SECTION.  Sec. 8.  The joint task force on unemployment insurance created by section 22, chapter 483, Laws of 1993 (uncodified) shall evaluate, in addition to the issues required for study in chapter ... (Substitute Senate Bill No. 6217), Laws of 1994, the adequacy of the unemployment insurance trust fund balance, including the effectiveness of the mechanisms that determine the tax schedule each rate year, and report recommendations as required by chapter ... (Substitute Senate Bill No. 6217), Laws of 1994.

 

    NEW SECTION.  Sec. 9.  Section 2 of this act is remedial in nature and applies retroactively to January 1, 1994.

 

    NEW SECTION.  Sec. 10.  Sections 3 and 4 of this act apply only to benefit charges attributable to new claims effective after July 2, 1994.

 

    NEW SECTION.  Sec. 11.  (1) Sections 2 and 5 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

    (2) Section 6 of this act shall take effect January 1, 1998."

 

 

 

ESB 6480 - S AMD

By Senator

 

                                                   ADOPTED 3/11/94

 

    On page 1, line 1 of the title, after "compensation;" strike the remainder of the title and insert "amending RCW 50.16.094, 50.22.090, 50.29.020, 50.29.025, and 50.29.062; reenacting and amending RCW 50.29.025; adding a new section to chapter 50.20 RCW; creating new sections; providing an effective date; and declaring an emergency."

 


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