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                                          ENGROSSED SENATE BILL NO. 4645

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                                                                            C 110 L 86

State of Washington                              49th Legislature                              1986 Regular Session

By Senators Warnke, Newhouse and Vognild; by request of Employment Security Department

Read first time 1/20/86 and referred to Committee on Commerce & Labor.

AN ACT Relating to unemployment insurance coverage of corporate officers; amending RCW 50.04.165; creating a new section; and providing an effective date.

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

        Sec. 1.  Section 13, chapter 35, Laws of 1981 as amended by section 4, chapter 23, Laws of 1983 1st ex. sess. and RCW 50.04.165 are each amended to read as follows:

          Services performed ((after October 1, 1983, in the capacity of)) by corporate officers as defined in RCW 23A.08.470,  other than those covered by chapter 50.44 RCW, shall not be considered services in employment.  However, a corporation may elect to cover not less than all of its corporate officers under RCW 50.24.160.  If an employer does not elect to cover its corporate officers under RCW 50.24.160, the employer must notify its corporate officers in writing that they are ineligible for unemployment benefits.  If the employer fails to notify any corporate officer, then that person shall not be considered to be a corporate officer for the purposes of this section.

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.

NEW SECTION. Sec. 3.     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. 4.     This act shall take effect July 1, 1986.

                                                                                                                      Passed the Senate February 14, 1986.

                                                                                                                                       President of the Senate.

                                                                                                                           Passed the House March 4, 1986.

                                                                                                                                         Speaker of the House.