AN ACT Relating to entrepreneurial development; adding a new chapter to Title 43 RCW; adding new sections to chapter 50.20 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that Washington state has experienced high levels of unemployment and a large number of business closures. The legislature further finds that the encouragement of entrepreneurial development and business ownership is necessary if the state's opportunities for economic growth and job creation are to be realized. It is the intent of the legislature that the state provide the maximum feasible encouragement to entrepreneurial development by targeting existing resources and coordinating the programs of state agencies and educational institutions to better facilitate entrepreneurial development.

NEW SECTION. Sec. 2. An interagency task force on entrepreneurial development shall be formed by: The department of trade and economic development; the department of community development; the employment security department; the state board for vocational education; the state board for community college education; the higher education coordinating board; and the superintendent of public instruction. The chair of the task force shall be the director or an assistant director of the department of trade and economic development.

NEW SECTION. Sec. 3. The interagency task force on entrepreneurial development shall:

(1) Clearly define the problems caused by the state's high business failure rate and low business start-up rate and the advantages that entrepreneurial development offers as an economic development tool;

(2) Gather data on: (a) The potential that increased entrepreneurial activity offers in terms of increased jobs, increased state revenues, and decreased social service costs; (b) entrepreneurial development policies and programs in other states and countries including entrepreneurial training, small business incubators, technical and managerial assistance, and financing assistance; and (c) existing programs that could be better targeted to further entrepreneurial development;

(3) Formulate interagency agreements which will facilitate and promote entrepreneurial development in the state by delineating new responsibilities for each of the agencies or institutions and redirect resources toward entrepreneurial development;

(4) Formulate policy options and program proposals designed to promote entrepreneurial development and remove barriers to entrepreneurial success;

(5) Develop criteria for measuring the potential for success of the interagency agreements, policy options, and program proposals formulated and evaluate the agreements and options based on the criteria developed;

(6) Develop recommendations for administrative and legislative action which would promote entrepreneurial development; and

(7) Report to the senate economic development and labor committee and the house of representatives trade and economic development committee on the results of action taken under this section by December 1, 1988.

NEW SECTION. Sec. 4. The coordination and special services plan prepared by the state job training coordinating council, in accordance with section 121 of the federal job training partnership act, shall include provisions allowable under the federal act to facilitate entrepreneurial development including the formation of employee-owned firms.

NEW SECTION. Sec. 5. An unemployed individual otherwise eligible for either regular, extended, or additional unemployment compensation benefits shall not be denied those benefits in any week because of RCW 50.20.010(3), 50.20.015, 50.20.080, or 50.20.020(1) relating to availability for work, active search for work, or failure to apply for or refusal to accept suitable work, if:

(1) The individual is a participant in the pilot project set forth in section 6 of this act; or

(2) The commissioner finds that the individual is actively participating in a good-faith effort to form an employee-owned business or other enterprise to be owned in part by the individual. An individual eligible under this subsection shall remain eligible until the individual begins work in the new enterprise which has begun operation, or the good-faith effort fails, or until the regular and, if applicable, extended or additional benefits have been paid, whichever occurs first.

NEW SECTION. Sec. 6. The employment security department shall conduct a four-year pilot project to provide, in lieu of unemployment compensation, a lump sum payment to unemployed individuals to be used for the start-up of a business by unemployed individuals who have been selected by the department.

NEW SECTION. Sec. 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 8. Sections 2 through 4 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 9. Sections 5 and 6 of this act are each added to chapter 50.20 RCW.