SENATE BILL REPORT

                            SB 5846

        AS REPORTED BY COMMITTEE ON TRADE, TECHNOLOGY &

            ECONOMIC DEVELOPMENT, FEBRUARY 25, 1993

Brief Description:  Assisting in the creation of local reemployment support centers.

SPONSORS: Senators Niemi, Pelz and Franklin

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  That Substitute Senate Bill No. 5846 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Jack Brummel (786‑7428)

Hearing Dates: February 24, 1993; February 25, 1993

BACKGROUND:

In 1987, the Legislature established, through a budget proviso, three reemployment support centers as pilot projects.  The centers were to supplement the services provided by the Department of Employment Security by providing coordinated services to eliminate emotional, physical, medical and financial barriers that hamper the ability of the unemployed person to conduct an effective job search.

In 1989, the three original projects were continued and a fourth was added to serve timber impact areas.  In 1991, three centers were funded, two in timber impact areas and one in King County.

Proponents of the centers assert that they have proven their worth and that a statutory authorization that would expand the effort is appropriate.

SUMMARY:

The Department of Community Development is to select reemployment support centers for a minimum of five areas.  The selected agencies must offer services in impact areas which include distressed areas as defined in statute, timber impact areas as defined in statute, and areas likely to experience distress in the near future.  Matching funds are required from the centers selected.

The centers are to provide direct and referral services to the unemployed including reemployment assistance, social and counseling services, mortgage and credit counseling, and medical services.

The Department of Employment Security and the Department of Social and Health Services are to locate at least one employee apiece in each center to support the work of the centers.  Each center is to receive a minimum of $60,000 per year and must report to the department semiannually.

EFFECT OF PROPOSED SUBSTITUTE:

Prioritization among the employers is not required.  Reemployment support centers may watch their growth with in-kind contributions.  There is an appropriation of $630,000, no more than 5 percent of which may be used by the department for administrative costs.

Appropriation:  $630,000

Revenue:  none

Fiscal Note:  requested February 23, 1993

TESTIMONY FOR:

One of the reemployment support centers has received national recognition for innovative approaches to helping the unemployed.  Reemployment support centers enhance and enlarge community's capacity to respond to economic hard times.

TESTIMONY AGAINST:  None

TESTIFIED:  Jim Cummings, Worker Center, Seattle & King County (pro); Paul Perz, Dept. of Community Development