AN ACT Relating to the encouragement of early warning in the case of a reduction in business operations; adding a new chapter to Title 49 RCW; adding a new section to chapter 82.04 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds and declares that:

(1) To help reduce the number of employees laid off due to a partial plant closure and to provide employers an incentive to give early warning to its employees and the community, the legislature finds that an adjustment to the state's business and occupation tax in such cases will be beneficial to the citizens of the state;

(2) The state has an obligation to its citizens to coordinate available resources to help alleviate the unemployment and economic distress resulting from reductions in business operations and to promote a healthy business climate for the creation of new jobs to replace those lost from reductions in business operations;

(3) There is a need to provide rapid, coordinated, and systematic assistance from the state's existing resources to minimize or avoid the attendant economic impact upon dislocated workers, their families, communities, and industries; and

(4) The availability of this assistance from the state can provide incentive for early notification to workers, local government, and the early warning to the state regarding anticipated reductions in business operations in advance of its occurrence in order to avert unnecessary closings or to prevent severe economic dislocation.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Employer" means a person, firm, partnership, corporation, trust, association, or other form of business organization which employs at least fifty employees within this state.

(2) "Reduction in business operations" means the nonseasonal full or partial closure or relocation of an employer, the layoff of employees, or any other action taken by a business which results or will result within a period of six months following an employer's early warning notice in a reduction in the number of employees at a workplace:

(a) In the case of a business with fewer than six hundred fifty employees, by twenty percent of the work force or thirty-five employees, whichever is greater, for a period exceeding three months; or

(b) In the case of a business with six hundred fifty or more employees, ten percent of the work force for a period exceeding three months.

For the purpose of this subsection "early warning notice" means the notice given under section 5 of this act.

(3) "Relocation" means the permanent transfer of a part or all of the business to a place located beyond a fifty-mile radius. (4) "Community" means any municipal corporation in which an employer is located, or if an employer is not located in a municipal corporation, the county in which a business operation is located.

NEW SECTION. Sec. 3. An economic stabilization task force shall be formed by July 1, 1985. This task force shall be composed of the commissioner of employment security, the secretary of social and health services, the director of commerce and economic development, the director of community development, a representative of the commission for vocational education, a representative of the business community, and a representative of organized labor. The task force shall be chaired by the commissioner of employment security. The representatives of the business community and of organized labor shall be selected by the other members of the task force. The labor member shall be a representative of the majority of workers engaged in employment under this title and selected from a list of not less than three names submitted to the commissioner of employment security by an organization, state-wide in scope, which through its affiliates embraces a cross-section and a majority of the organized labor of this state. The business member shall be a representative of employers and appointed from a list of at least three names submitted to the commissioner of employment security by a recognized state-wide organization of employers representing a majority of employers.

NEW SECTION. Sec. 4. The purpose of this economic stabilization task force shall be to:

(1) Provide a rapid, coordinated, and systematic response by agencies of the state of Washington and community organizations in the event of a reduction in business operations;

(2) Assist, upon the request of a community, in marshaling available federal, state, and local resources, specifically including training resources, to aid employees, communities, and employers affected by a reduction in business operations;

(3) Seek the participation and advice of other related state agencies and individuals representing local governments, local education agencies, business, and labor;

(4) Prepare and publish a plan to assure the rapid, coordinated, and systematic state response to a reduction in business operations; and

(5) Maintain a record of community requests for assistance and document publicly available information on reductions in business operations for which such assistance is provided.

The task force may designate working groups of subcommittees composed of the members' designees to implement the provisions of this section.

NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:

(1) In computing the tax under this chapter a taxpayer who employs fifty or more employees and who provides early warning notice prior to a reduction in business operations taking place may credit against the tax an amount equal to the following percentage of real and personal property or leasehold excise taxes paid or payable with respect to the affected workplace for the calendar year in which there was a reduction in business operations:

!tp1,1,1Number of days for!tj1 !tlPercentage of

which early warning was!tj1!tlproperty taxes

given!tj1!tlpaid or payable

!tp1,1,1,1,1 !tcOver 120 !tj2!tc 25%

!tc91-120 !tj2!tc 15%

!tc60-90 !tj2!tc10%

(2) A taxpayer may only apply a credit pursuant to subsection (1) of this section to tax imposed with respect to business activities occurring after early warning notice was provided.

(3) The following definitions apply to this section:

(a) "Early warning notice" means written notice of an employer's intent to reduce business operations which specifies the name, location, and nature of the workplace affected; the reasons for and expected commencement date and length of the reduction in operations; the possible alternatives to undertaking the action of reduction in operations; and a good faith estimate of the number of employees to be affected by the contemplated action and which is transmitted to:

(i) The department of revenue;

(ii) Employees of the business; and

(iii) The governor's office.

(b) "Reduction in business operations" means the nonseasonal full or partial closure or relocation of an employer, the layoff of employees, or any other action taken by a business which results or will result within a period of six months following an employer's early warning notice in a reduction in the number of employees at a workplace:

(i) In the case of a business with fewer than six hundred fifty employees, by twenty percent of the work force or thirty-five employees, whichever is greater, for a period exceeding three months; or

(ii) In the case of a business with six hundred fifty or more employees, ten percent of the work force for a period exceeding three months.

(c) "Relocation" means the permanent transfer of a part or all of the business to a place located beyond a fifty-mile radius.

(d) "Employee" means an individual who performs services for wages, whether full time or part time, at an employer's workplace.

(e) "Employer" means a person, firm, partnership, corporation, trust, association, or other form of business organization which employs at least fifty employees within this state.

(f) "Workplace" means a plant, factory, commercial business, institution, or other place of employment located in this state.

(g) "Taxes paid or payable with respect to the affected workplace" means taxes incurred by the owner of the property comprising the affected workplace, whether or not such owner is the taxpayer. This section shall expire December 31, 1990.

NEW SECTION. Sec. 6. Sections 1 through 4 of this act shall constitute a new chapter in Title 49 RCW.

NEW SECTION. Sec. 7. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.