AN
ACT Relating to unemployment insurance; amending RCW 50.04.355, 50.24.010,
50.29.020, 50.29.025, 50.29.026, 50.20.050, 50.20.060, and 50.20.080;
reenacting and amending RCW 50.24.014; adding new sections to chapter 50.22
RCW; adding a new section to chapter 50.20 RCW; creating new sections;
providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
50.04.355 and 1977 ex.s. c 33 s 2 are each amended to read as follows:
On
or before the fifteenth day of June of each year, an "average
annual wage", an "average weekly wage", and an "average
annual wage for contributions purposes" shall be computed from information
for the specified preceding calendar years including corrections
thereof reported within three months after the close of ((that)) the
final year of the specified years by all employers as defined in RCW
50.04.080.
(1)
The "average annual wage" is the quotient derived by dividing the
total remuneration reported by all employers for the preceding calendar year
by the average number of workers reported for all months of the preceding
calendar year and if the result is not a multiple of one dollar, rounding
the result to the next lower multiple of one dollar.
(2)
The "average weekly wage" is the quotient derived by dividing the
"average annual wage" ((thus)) obtained ((shall be divided))
under (1) of this subsection by fifty-two and if the result is not a
multiple of one dollar, rounding the result to the next lower multiple of one
dollar ((to determine the "average weekly wage")).
(3)
The "average annual wage((")) for contribution purposes"
is the quotient derived by dividing by three the total remuneration
reported by all employers subject to contributions for the preceding three
consecutive calendar years and dividing this amount by the average number
of workers reported for all months of these three years by these same
employers and if the result is not a multiple of one dollar, rounding the result
to the next lower multiple of one dollar.
Sec.
2. RCW
50.24.010 and 1984 c 205 s 2 are each amended to read as follows:
Contributions
shall accrue and become payable by each employer (except employers as described
in RCW 50.44.010 who have properly elected to make payments in lieu of
contributions and those employers who are required to make payments in lieu of
contributions) for each calendar year in which the employer is subject to this
title at the rate established pursuant to chapter 50.29 RCW.
In
each rate year, the amount of wages subject to tax for each individual shall be
one hundred fifteen percent of the amount of wages subject to tax for the
previous year rounded to the next lower one hundred dollars((: PROVIDED)),
except that the amount of wages subject to tax in any rate year shall
not exceed eighty percent of the "average annual wage for contributions
purposes" for the second preceding calendar year rounded to the next lower
one hundred dollars((: PROVIDED FURTHER, That)). However, the
amount subject to tax shall be ((twelve)) twenty-four thousand three
hundred dollars for rate year ((1984 and ten thousand dollars for rate
year 1985)) 2000.
In
making computations under this section and RCW 50.29.010, wages paid based on
services for employers making payments in lieu of contributions shall not be
considered remuneration. Moneys paid from the fund, based on services
performed for employers who make payments in lieu of contributions, which have
not been reimbursed to the fund as of any June 30 shall be deemed an asset of
the unemployment compensation fund, to the extent that such moneys exceed the
amount of payments in lieu of contributions which the commissioner has
previously determined to be uncollectible: PROVIDED, FURTHER, That the amount
attributable to employment with the state shall also include interest as
provided for in RCW 50.44.020.
Contributions
shall become due and be paid by each employer to the treasurer for the
unemployment compensation fund in accordance with such regulations as the
commissioner may prescribe, and shall not be deducted, in whole or in part,
from the remuneration of individuals in employment of the employer. Any
deduction in violation of the provisions of this section shall be unlawful.
In
the payment of any contributions, 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.
Sec.
3. RCW
50.29.020 and 1995 c 57 s 3 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 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).
(c)
Benefits paid which represent the state's share of benefits payable as
extended benefits defined under ((chapter 50.22)) RCW 50.22.010(6)
shall not be charged to the experience rating account of any contribution
paying employer.
(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.
(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.
(f)
Benefits paid under section 8 of this act shall not be charged to the
experience rating account of any contribution paying employer.
(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.
4. RCW
50.29.025 and 1995 c 4 s 2 are each amended to read as follows:
The
contribution rate for each employer subject to contributions under RCW
50.24.010 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)) 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.
(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))
2.10 to 2.89 A
((2.10
to 2.49)) 1.70 to 2.09 B
((1.70
to 2.09)) 1.40 to 1.69 C
((1.30 to 1.69)) 1.00 to 1.39 D
((1.00 to 1.29)) 0.70 to 0.99 E
Less
than ((1.00)) 0.70 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)
Except as provided in RCW 50.29.026, the contribution rate for each
employer in the array shall be the rate specified in the following tables 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 Schedules of Contributions
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 0.48 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))
Rate
From To 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 3.69 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
(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))
a contribution rate ((of five and six-tenths percent)) two-tenths
higher than that in rate class 20 for the applicable rate year, 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)) a contribution rate two-tenths higher than that in
rate class 20 for the applicable rate year; and
(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)) section, 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, or in the North American industry classification system code.
Sec.
5. RCW
50.29.026 and 1995 c 322 s 1 are each amended to read as follows:
(1)
Beginning with contributions assessed for rate year 1996, a qualified
employer's contribution rate determined under RCW 50.29.025 may be modified as
follows:
(a)
Subject to the limitations of this subsection, an employer may make a voluntary
contribution of an amount equal to part or all of the benefits charged to the
employer's account during the two years most recently ended on June 30th that
were used for the purpose of computing the employer's contribution rate. On
receiving timely payment of a voluntary contribution, plus a surcharge of ten
percent of the amount of the voluntary contribution, the commissioner shall
cancel the benefits equal to the amount of the voluntary contribution,
excluding the surcharge, and compute a new benefit ratio for the employer. The
employer shall then be assigned the contribution rate applicable to the rate
class within which the recomputed benefit ratio is included. The minimum
amount of a voluntary contribution, excluding the surcharge, must be an amount
that will result in a recomputed benefit ratio that is in a rate class at least
two rate classes lower than the rate class that included the employer's
original benefit ratio.
(b)
Payment of a voluntary contribution is considered timely if received by the
department during the period beginning on the date of mailing to the employer
the notice of contribution rate required under this title for the rate year for
which the employer is seeking a modification of his or her contribution rate
and ending on February 15th of that rate year or, for voluntary
contributions for rate year 2000, ending on March 31, 2000.
(c)
A benefit ratio may not be recomputed nor a contribution rate be reduced under
this section as a result of a voluntary contribution received after the payment
period prescribed in (b) of this subsection.
(2)
This section does not apply to any employer who has not had an increase of at
least six rate classes from the previous tax rate year.
NEW
SECTION. Sec. 6. A
new section is added to chapter 50.22 RCW to read as follows:
It
is the intent of the legislature that a training benefits program be
established to provide unemployment insurance benefits to unemployed
individuals who participate in training programs necessary for their
reemployment.
The
legislature further intends that this program serve the following goals:
(1)
Retraining should be available for those unemployed individuals whose skills
are no longer in demand;
(2)
To be eligible for retraining, an individual must have a long-term attachment
to the labor force;
(3)
Training must enhance the individual's marketable skills and earning power; and
(4)
Retraining must be targeted to those industries or skills that are in high
demand within the labor market.
Individuals
unemployed as a result of structural changes in the economy and technological
advances rendering their skills obsolete must receive the highest priority for
participation in this program. It is the further intent of the legislature
that individuals for whom suitable employment is available are not eligible for
additional benefits while participating in training.
The
legislature further intends that funding for this program be limited by a
specified maximum amount each fiscal year.
NEW
SECTION. Sec. 7. A
new section is added to chapter 50.22 RCW to read as follows:
The
employment security department is authorized to pay training benefits under
section 8 of this act, but may not obligate expenditures beyond the limits
specified in this section or as otherwise set by the legislature. Beginning
with expenditures for the fiscal year ending June 30, 2000, and including
expenditures for the fiscal biennium ending June 30, 2002, the commissioner may
not obligate more than sixty million dollars for training benefits. Any funds
not obligated in one fiscal year may be carried forward to the next fiscal
year. For each fiscal year beginning after June 30, 2002, the commissioner may
not obligate more than twenty million dollars annually in addition to any funds
carried over from previous fiscal years. The department shall develop a
process to ensure that expenditures do not exceed available funds and to
prioritize access to funds when again available.
NEW
SECTION. Sec. 8. A
new section is added to chapter 50.22 RCW to read as follows:
(1)
Subject to availability of funds, training benefits are available for an
individual who is eligible for or has exhausted entitlement to unemployment
compensation benefits and who:
(a)
Is a dislocated worker as defined in RCW 50.04.075;
(b)
Except as provided under subsection (2) of this section, has demonstrated,
through a work history, sufficient tenure in an occupation or in work with a
particular skill set. This screening will take place during the assessment
process;
(c)
Is, after assessment of demand for the individual's occupation or skills in the
individual's labor market, determined to need job-related training to find
suitable employment in his or her labor market. Beginning July 1, 2001, the
assessment of demand for the individual's occupation or skill sets must be
substantially based on declining occupation or skill sets identified in local
labor market areas by the local work force development councils, in cooperation
with the employment security department and its labor market information
division, under subsection (9) of this section;
(d)
Develops an individual training program that is submitted to the commissioner
for approval within sixty days after the individual is notified by the
employment security department of the requirements of this section;
(e)
Enters the approved training program by ninety days after the date of the
notification, unless the employment security department determines that the
training is not available during the ninety-day period, in which case the
individual enters training as soon as it is available; and
(f)
Is enrolled in training approved under this section on a full-time basis as
determined by the educational institution, and is making satisfactory progress
in the training as certified by the educational institution.
(2)
Until June 30, 2002, the following individuals who meet the requirements of
subsection (1) of this section may, without regard to the tenure requirements
under subsection (1)(b) of this section, receive training benefits as provided
in this section:
(a)
An exhaustee who has base year employment in the aerospace industry assigned
the standard industrial classification code "372" or the North American
industry classification system code "336411";
(b)
An exhaustee who has base year employment in the forest products industry,
determined by the department, but including the industries assigned the major
group standard industrial classification codes "24" and
"26" or any equivalent codes in the North American industry
classification system code, 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; or
(c)
An exhaustee who has base year employment in the fishing industry assigned the
standard industrial classification code "0912" or any equivalent
codes in the North American industry classification system code.
(3)
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;
(b)
Has a definite recall date that is within six months of the date he or she is
laid off; or
(c)
Is unemployed due to a regular seasonal layoff which demonstrates a pattern of
unemployment consistent with the provisions of RCW 50.20.015. Regular seasonal
layoff does not include layoff due to permanent structural downsizing or
structural changes in the individual's labor market.
(4)
The definitions in this subsection 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)
"Sufficient tenure" means earning a plurality of wages in a
particular occupation or using a particular skill set during the base year and
at least two of the four twelve-month periods immediately preceding the base
year.
(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:
(A)
That is targeted to training for a high demand occupation. Beginning July 1,
2001, the assessment of high demand occupations authorized for training under
this section must be substantially based on labor market and employment
information developed by local work force development councils, in cooperation
with the employment security department and its labor market information
division, under subsection (9) of this section;
(B)
That is likely to enhance the individual's marketable skills and earning power;
and
(C)
That meets the criteria for performance developed by the work force 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.
(5)
Benefits shall be paid as follows:
(a)(i)
For exhaustees who are eligible under subsection (1) of this section, 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; or
(ii)
For exhaustees who are eligible under subsection (2) of this section, the total
training benefit amount shall be seventy-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. Beginning with
new claims filed after June 30, 2002, for exhaustees eligible under subsection
(2) of this section, 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. The training benefits shall be paid
before any extended benefits but not before any similar federally funded
program.
(c)
Training benefits are not payable for weeks more than two years beyond the end
of the benefit year of the regular claim.
(6)
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.
(7)
Individuals who receive training benefits under this section or under any
previous additional benefits program for training are not eligible for training
benefits under this section for five years from the last receipt of training
benefits under this section or under any previous additional benefits program
for training.
(8)
All base year employers are interested parties to the approval of training and
the granting of training benefits.
(9)
By July 1, 2001, each local work force 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 occupations and
skill sets that are in high demand. For the purposes of sections 6 through 9
of this act, "high demand" means demand for employment that exceeds
the supply of qualified workers for occupations or skill sets in a labor market
area. Local work force development councils must use state and locally
developed labor market information. Thereafter, each local work force
development council shall update this information annually or more frequently
if needed.
(10)
The commissioner shall adopt rules as necessary to implement this section.
NEW
SECTION. Sec. 9. (1)
The work force training and education coordinating board, with the cooperation
and assistance of the state board for community and technical colleges and the
employment security department, shall review the participation in the training
benefits program under section 8 of this act and report to the appropriate
committees of the legislature by December 1, 2002, on the following:
(a)
A demographic analysis of participants in the training benefits program under
this section including the number of claimants per standard industrial
classification code and the gender, race, age, and geographic representation of
participants;
(b)
The duration of training benefits claimed per claimant;
(c)
An analysis of the training provided to participants including the occupational
category supported by the training, those participants who complete training in
relationship to those that do not, and the reasons for noncompletion of
approved training programs;
(d)
The employment and wage history of participants, including the pretraining and
posttraining wage and whether those participating in training return to their
previous employer after training terminates;
(e)
The impact of training benefits paid from the unemployment compensation fund on
employers' unemployment insurance contributions. The review shall include the
impact by rate class, industry and business size, and overall impact; and
(f)
An identification and analysis of administrative costs at both the local and
state level for implementing this program.
(2)
The employment security department shall collect the following information:
(a)
The number of applicants disqualified for unemployment benefits under Title 50
RCW by disqualifying reason;
(b)
The benefits costs resulting from claims in which the claimant requalifies
under sections 12 through 14 of this act and the extent to which these costs
are socialized;
(c)
An analysis of the disqualification and requalification for benefits and the
impact on claimants and employers; and
(d)
An analysis of RCW 50.20.050(2)(c), including demographics of affected
claimants and employers.
(3)
Any demographic information collected under this section will be aggregated to
ensure that the confidentiality provisions of chapter 50.13 RCW extend to
claimants and employers who are the subject of this study.
NEW
SECTION. Sec. 10. A
new section is added to chapter 50.20 RCW to read as follows:
(1)
To ensure that unemployment insurance benefits are paid in accordance with RCW
50.20.098, the employment security department shall verify that an individual
is eligible to work in the United States before the individual receives
training benefits under section 8 of this act.
(2)
By July 1, 2002, the employment security department shall:
(a)
Develop and implement an effective method for determining, where appropriate,
eligibility to work in the United States for individuals applying for unemployment
benefits under this title;
(b)
Review verification systems developed by federal agencies for verifying a
person's eligibility to receive unemployment benefits under this title and
evaluate the effectiveness of these systems for use in this state; and
(c)
Report its initial findings to the legislature by September 1, 2000, and its
final report by July 1, 2002.
(3)
Where federal law prohibits the conditioning of unemployment benefits on a
verification of an individual's status as a qualified or authorized alien, the
requirements of this section shall not apply.
NEW
SECTION. Sec. 11. (1) A
legislative task force is established to review and make recommendations
regarding the changes deemed necessary to ensure that the unemployment
insurance system meets the needs of employers and workers in the twenty-first
century. The task force shall consist of fifteen members, as follows:
(a)
Two members from each of the two largest caucuses of the senate, appointed by
the president of the senate;
(b)
Two members from each of the two largest caucuses of the house of
representatives, appointed by the co-speakers of the house of representatives;
(c)
Three members representing business, appointed jointly by the president of the
senate and the co-speakers of the house of representatives from nominees
provided by state-wide business organizations representing a cross-section of
industries and small business;
(d)
Three members representing labor, appointed jointly by the president of the senate
and the co-speakers of the house of representatives from nominees provided by
state-wide labor organizations; and
(e)
A representative of the executive branch, appointed by the governor.
The
task force shall choose its chair from among its membership.
(2)
The task force shall review the historical fundamentals of the unemployment
insurance system established early in the twentieth century and determine to
what extent, if any, the system should be modified to meet the challenges of
maintaining low unemployment, establishing a skilled work force, and ensuring a
strong and competitive business and employment climate in our new
technology-based twenty-first century economy.
(3)
The task force shall use legislative facilities and staff from senate committee
services and the office of program research, but may hire additional staff with
specific technical expertise if such expertise is necessary to carry out the
mandates of this study. Each nonlegislative member of the task force shall be
reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
All expenses of the task force, including travel, shall be paid jointly by the
senate and the house of representatives.
(4)
The task force shall report its findings and recommendations to the legislature
by December 1, 2000.
(5)
This section expires July 1, 2001.
Sec.
12. RCW
50.20.050 and 1993 c 483 s 8 are each amended to read as follows:
(1)
An individual shall be disqualified from benefits beginning with the first day
of the calendar week in which he or she has left work voluntarily without good
cause and thereafter for ((five)) seven calendar weeks and until
he or she has obtained bona fide work in employment covered by this title
and earned wages in that employment equal to ((five)) seven
times his or her weekly benefit amount.
The
disqualification shall continue if the work obtained is a mere sham to qualify
for benefits and is not bona fide work. In determining whether work is of a
bona fide nature, the commissioner shall consider factors including but not
limited to the following:
(a)
The duration of the work;
(b)
The extent of direction and control by the employer over the work; and
(c)
The level of skill required for the work in light of the individual's training
and experience.
(2)
An individual shall not be considered to have left work voluntarily without
good cause when:
(a)
He or she has left work to accept a bona fide offer of bona fide work as
described in subsection (1) of this section;
(b)
The separation was because of the illness or disability of the claimant or the
death, illness, or disability of a member of the claimant's immediate family if
the claimant took all reasonable precautions, in accordance with any
regulations that the commissioner may prescribe, to protect his or her
employment status by having promptly notified the employer of the reason for
the absence and by having promptly requested reemployment when again able to
assume employment: PROVIDED, That these precautions need not have been taken
when they would have been a futile act, including those instances when the
futility of the act was a result of a recognized labor/management dispatch
system; or
(c)
He or she has left work to relocate for the spouse's employment that is due
to an employer-initiated mandatory transfer that is outside the existing
labor market area if the claimant remained employed as long as was reasonable
prior to the move.
(3)
In determining under this section whether an individual has left work
voluntarily without good cause, the commissioner shall only consider work-connected
factors such as the degree of risk involved to the individual's health, safety,
and morals, the individual's physical fitness for the work, the individual's
ability to perform the work, and such other work connected factors as the
commissioner may deem pertinent, including state and national emergencies.
Good cause shall not be established for voluntarily leaving work because of its
distance from an individual's residence where the distance was known to the
individual at the time he or she accepted the employment and where, in the
judgment of the department, the distance is customarily traveled by workers in
the individual's job classification and labor market, nor because of any other
significant work factor which was generally known and present at the time he or
she accepted employment, unless the related circumstances have so changed as to
amount to a substantial involuntary deterioration of the work factor or unless
the commissioner determines that other related circumstances would work an
unreasonable hardship on the individual were he or she required to continue in
the employment.
(4)
Subsections (1) and (3) of this section shall not apply to an individual whose
marital status or domestic responsibilities cause him or her to leave
employment. Such an individual shall not be eligible for unemployment
insurance benefits beginning with the first day of the calendar week in which
he or she left work and thereafter for ((five)) seven calendar
weeks and until he or she has requalified, either by obtaining bona fide work in
employment covered by this title and earning wages in that employment
equal to ((five)) seven times his or her weekly benefit amount or
by reporting in person to the department during ten different calendar weeks
and certifying on each occasion that he or she is ready, able, and willing to
immediately accept any suitable work which may be offered, is actively seeking
work pursuant to customary trade practices, and is utilizing such employment
counseling and placement services as are available through the department.
This subsection does not apply to individuals covered by subsection (2)(b) or
(c) of this section.
Sec.
13. RCW
50.20.060 and 1993 c 483 s 9 are each amended to read as follows:
An
individual shall be disqualified from benefits beginning with the first day of
the calendar week in which he or she has been discharged or suspended for
misconduct connected with his or her work and thereafter for ((five)) seven
calendar weeks and until he or she has obtained bona fide work in
employment covered by this title and earned wages in that employment
equal to ((five)) seven times his or her weekly benefit
amount. Alcoholism shall not constitute a defense to disqualification from
benefits due to misconduct.
Sec.
14. RCW
50.20.080 and 1993 c 483 s 10 are each amended to read as follows:
An
individual is disqualified for benefits, if the commissioner finds that the
individual has failed without good cause, either to apply for available,
suitable work when so directed by the employment office or the commissioner, or
to accept suitable work when offered the individual, or to return to his or her
customary self-employment (if any) when so directed by the commissioner. Such
disqualification shall begin with the week of the refusal and thereafter for ((five))
seven calendar weeks and continue until the individual has obtained bona
fide work in employment covered by this title and earned wages ((therefor))
in that employment of not less than ((five)) seven times
his or her suspended weekly benefit amount.
Sec.
15. RCW
50.24.014 and 1998 c 346 s 901 and 1998 c 161 s 7 are each reenacted and
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. 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.
(b)
A separate and identifiable account is established in the administrative
contingency fund for financing the employment security department's
administrative cost under section 8 of this act and the costs under section
8(9) of this act. 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(6)(b), and those qualified employers
assigned rate class 20 under RCW 50.29.025, at a basic rate of one one‑hundredths
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 unemployment
compensation trust fund.
(c)
For the first calendar quarter of 1994 only, the basic two one-hundredths of
one percent contribution payable under (a) of this subsection shall be
increased by one-hundredth of one percent to a total rate of three
one-hundredths of one percent. The proceeds of this incremental one-hundredth
of one percent shall be used solely for the purposes described in section 22,
chapter 483, Laws of 1993, and for the purposes of conducting an evaluation of
the call center approach to unemployment insurance under section 5, chapter
161, Laws of 1998. During the 1997-1999 fiscal biennium, any surplus from
contributions payable under this subsection (((b))) (c) may be
deposited in the unemployment compensation trust fund, used to support tax and
wage automated systems projects that simplify and streamline employer
reporting, or both.
(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. 16. (1)
Sections 1, 2, 4, 5, and 15 of this act apply to rate years beginning on or
after January 1, 2000.
(2)(a) Except as provided under (b) of this subsection, sections 8
and 12 through 14 of this act apply beginning with weeks of unemployment that
begin on or after the Sunday following the day on which the governor signs
chapter . . ., Laws of 2000 (this act).
(b)
For individuals eligible under section 8(2)(a) of this act who are enrolled in
a national reserve grant on the effective date of this act, section 8 of this
act applies beginning with weeks of unemployment that begin after the
termination of their needs-related payments under a national reserve grant.
NEW
SECTION. Sec. 17. 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. 18. 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. 19. 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.
