H-4445              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1673

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By House Committee on Trade & Economic Development (originally sponsored by Representatives Jacobsen, Rayburn, Doty, Smitherman, Wineberry, Scott, Belcher, B. Williams, Padden, Peery, Sayan, Niemi, Vekich, Fisch, Leonard, D. Nelson, Madsen, McMullen, Unsoeld, Dellwo, Hargrove, Crane, Locke, Todd, Wang, P. King, May, Winsley and Lux)

Read first time 2/5/86 and passed to Committee on Rules.

AN ACT Relating to employee-owned business; adding a new section to chapter 43.63A RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1.     The legislature finds that many business closures, especially in traditional industries, have detrimentally affected the well-being of citizens in this state.  The legislature further finds that many citizens may need to enter new fields to gain secure, meaningful employment.  Employee ownership of new and existing businesses is one method of creating and retaining needed jobs.  Since federal approval of employee stock ownership plans under the employee retirement income security act of 1974, approximately five thousand companies nationwide have adopted employee stock ownership plans, and experts estimate that another one hundred thousand businesses could be subject to such plans.  Employee cooperatives have long been a tradition in this state with many forest products companies, agricultural concerns, and other businesses being run on a cooperative basis.  Appropriate and effective use of employee-owned businesses in this state can reduce unemployment caused by plant closings; can increase the income and financial security of citizens of this state, assure citizens greater control of their economic future, strengthen productivity; and can produce more efficient businesses, strengthen labor-management relations, and contribute to a more vital state economy.

NEW SECTION. Sec. 2.  A new section is added to chapter 43.63A RCW to read as follows:

          The department of community development shall, by January 1, 1987, develop educational, training, and technical assistance programs to assist in the formation, development, and management of employee-owned businesses.  The department shall publicize these programs throughout the state on a continuing basis through the small business development center under RCW 28B.30.530.

          As used in this section, the term "employee-owned businesses" includes employee stock ownership plans and employee cooperatives.

NEW SECTION. Sec. 3.     There is appropriated from the general fund to the department of community development for the biennium ending June 30, 1987, the sum of forty-five thousand dollars, or so much thereof as may be necessary to carry out the purposes of this act.