HOUSE BILL REPORT

HB 706

BYRepresentatives Sayan, Vekich, Ballard, Grimm, Locke, Meyers, Heavey, R. King, O'Brien, P. King, Baugher, Rasmussen, Unsoeld and Todd; by request of Employment Security Department

Modifying youth employment and conservation provisions.

House Committe on Trade & Economic Development

Majority Report:     Do pass with amendments.  (18)

     Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Braddock, Cantwell, Doty, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Stephen Hodes (786-7092)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (23)

     Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver, L. Smith, H. Sommers, Sprenkle and B. Williams.

House Staff:    Susan Kavanaugh (786-7145)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 7, 1987

BACKGROUND:

The Washington Youth Employment Exchange was created by the legislature in 1983.  It was designed to operate a community service job training program for young people in the 18-25 year old age group.  The Employment Exchange also acted to coordinate youth service activities in the Employment Security Department and to provide coordination and administrative support for the Washington Conservation Corps program, which consists of community service jobs program in six state agencies.

In 1985, the legislature responded to concerns expressed about program operation by setting spending ceilings and directions for the program.  Program administrative costs are limited to 15 percent of total program costs or total program costs are restricted to no more than $7,000 per six month slot.  At least 60 percent of enrollee funds are to be expended in distressed areas. 

Current administrative costs are approximately 13 percent of total program costs, with the average cost of a six-month slot at $4,200.  At present, 72 percent of enrollees live or work in distressed areas.  The program has had a total of 652 participants in the biennium to date, with 182 currently enrolled.

SUMMARY:

SUBSTITUTE BILL:  The Washington Youth Employment Exchange is reauthorized in the Department of Employment Security and its name is changed to the Washington Service Corps.  The commissioner of Employment Security is permitted to establish a program of educational incentives to encourage enrollees to complete the program.  The commissioner is authorized to enter into agreements with the state community college system and other educational institutions and non-profit agencies to provide enrollees education in basic skills.  Participation in such programs is not to be mandatory.

Social Security benefits are added to the benefits not provided to enrollees.  The Service Corps is continued as the sole recipient of federal funds for youth employment and conservation corps programs.  The Washington Service Corps program is extended to July 1, 1993.

AMENDED BILL COMPARED TO ORIGINAL:  The training stipends paid to program enrollees are not to be less than the prevailing federal minimum wage.  This provision does not apply to enrollees in the pilot Summer Volunteer Corps program.

SUBSTITUTE BILL COMPARED TO AMENDED BILL:  The Summer Volunteer Corps program is not established.  No requirement is made that Washington Service Corps participants be paid the minimum wage.

CHANGES PROPOSED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS:  Substitute proposed.

Fiscal Note:    Attached.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:     (Trade & Economic Development)  Representative Sayan; Israel Mendoza, Employment Security Department; Bill Lotto, Thurston County Economic Development Council; Leslie Boyd, Lacey Service Corps graduate; Cindy Domingo, Central Area Self Help Program; Wendy Hanes, Service Corps participant with Victim Witness Program.

(Ways & Means/Appropriations)  Isiah Turner,  Commissioner of Employment Security.

House Committee - Testified Against: (Trade & Economic Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:     (Trade & Economic Development)  This has been an extremely successful program.  It has been seen as a national model and introduced in Congress.  The major focus is on job development.  This program works and local communities also benefit.

(Ways & Means/Appropriations)  This program has been a great success.  It benefits both young people and the community.

House Committee - Testimony Against: (Trade & Economic Development)  None Presented.

(Ways & Means/Appropriations)  None Presented.