H-3720              _______________________________________________

                                                   HOUSE BILL NO. 1530

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Jacobsen, D. Nelson, Niemi, Vekich, Unsoeld, Lux, Sayan, Fisher, Sommers, Todd, Wineberry, Appelwick, Locke, Fisch, Grimm, Madsen, Leonard, Basich, R. King and Wang

Read first time 1/17/86 and referred to Committee on Commerce & Labor.

AN ACT Relating to private business entities receiving public assistance; adding a new chapter to Title 19 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.     In the state of Washington, individuals who receive public assistance from the state are required to meet certain standards in order to receive funds.  It is reasonable that private business entities that receive public assistance in the form of grants or tax exemptions should also be subject to some rules of conduct which are acceptable to the state.  In particular the state should not be granting funds to private business entities which are in  the process of breaking union contracts or which close down their operations without some minimal advance consultation with employees and the community.

NEW SECTION. Sec. 2.     All private business entities that are direct or indirect beneficiaries of the state's sales and use tax deferral programs, state and local government industrial development bonds, and any of the programs administered by the community economic revitalization board are subject to the following:

          (1) Private business entities which intend to close down or relocate facilities financed in whole or in part by the programs listed in this section shall give at least three months notice of any closing or any reduction in operations affecting at least fifteen percent of the entity's work force.  They shall also discuss the effects of any closing with city or county officials and union representatives affected by the closing.

          (2) Private business entities with collective-bargaining agreements which relocate an operation within the state and receive assistance from the state programs listed in this section shall continue to recognize any union, international or local, which is a party to the collective-bargaining agreement.

NEW SECTION. Sec. 3.     In the case of the sales and use tax deferral, failure to comply with this chapter shall constitute a default of the company's deferral and the entire amount of the tax deferred plus a ten percent penalty and interest will be immediately payable.

          (2) In the case of industrial revenue bonds, failure to comply with this chapter shall result in a fine equal to the value of the federal tax exemption received plus a ten percent penalty and interest.

NEW SECTION. Sec. 4.     Any recipient who violates the provisions of this chapter is no longer eligible for any of the benefits of any state bond, any development program, or any state tax exemptions.

NEW SECTION. Sec. 5.     The employment security department shall oversee the plant closure and employment provisions of this chapter and the department of revenue shall be responsible for the collection of any penalties.

NEW SECTION. Sec. 6.     Sections 1 through 5 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 7.     This act will take effect January 1, 1987.