2901.E AMS .... S4870.2

EHB 2901 - S AMD 866

By Senator Hochstatter

                                              NOT ADOPTED 03/13/02

    Beginning on page 8, line 28, strike all of sections 5 through 18 and insert the following:

    "NEW SECTION. Sec. 5.  For rate years 2003 and 2004, the contribution rate of each employer subject to contributions under RCW 50.24.010 shall include, in addition to the contribution rate under RCW 50.29.025, an insolvency surcharge of fifteen one-hundredths of one percent, except that for the employers whose assigned standard industrial classification code is within major group "01," "02," or "07," or is "5148," or the equivalent code in the North American industry classification system code, the insolvency surcharge is one-tenth of one percent.  However, the insolvency surcharge is not in effect:

    (1) For rate year 2003, if, before January 1, 2003, federal Reed act moneys are transferred to the account of this state pursuant to section 903 of the social security act (42 U.S.C. Sec. 1103), as amended, in an amount equal to or greater than fifteen one-hundredths of one percent multiplied by the amount of total taxable payroll for fiscal year 2002.

    (2) For rate year 2004, if the fund balance ratio under RCW 50.29.025 is equal to or greater than 1.70 on September 30, 2003.

NEW SECTION. Sec. 6.  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. 7.  Section 3 of this act applies beginning with claims that have an effective date on or after July 7, 2002.

NEW SECTION. Sec. 8.  Section 2 of 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."

EHB 2901 - S AMD

By Senator

    On page 1, line 2 of the title, after "50.22.150," insert "and"

    On page 1, beginning on line 2 of the title, after "50.20.120" strike all material through "50.24.014" on line 3

    On page 1, beginning on line 4 of the title, after "50.20 RCW;" strike all material through "dates;" on line 5, and insert "creating new sections;"

EFFECT:  (1) Adds specified insolvency surcharges to the contribution rates of certain employers for rate years 2003 and 2004.

    (2) Limits application of the insolvency surcharge for rate year 2003 if federal Reed act moneys are transferred to the state account.

    (3) Limits application of the insolvency surcharge for rate year 2004 if the fund balance ratio is at least 1.70 on September 30, 2003.

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