SENATE BILL REPORT

SB 5383

BYSenators Lee, Smitherman, Anderson, McMullen and Bailey

Establishing a program for employment and training planning.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 24, 1989; March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5383 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:Jack Brummel (786-7428)

                  March 1, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 1, 1989

BACKGROUND:

The federal Job Training Partnership Act (JTPA) of 1982 created a mechanism to establish job training programs for youth and unskilled adults through local service delivery areas.  Several states have adopted comprehensive legislation which institutionalizes into state policy the goals and resources of JTPA.

SUMMARY:

The Washington State Job Training Coordinating Council is established, consistent with the provisions of the federal Job Training Partnership Act.  The council is responsible for preparing a two-year coordination and special services plan which includes a description of resources and programs, an evaluation of programs, recommendations for improvement, and coordination criteria.  The council also establishes standards and criteria for local service delivery area plans and the allocation of JTPA funds, maintains the performance of programs, and reviews and approves the labor market information plan and dislocated worker plan required by law.  The Governor is to transfer to the state council other coordinating duties currently required by federal statute but carried out by other bodies.  The council is also required to develop, in conjunction with the Northwest Policy Center, a plan for increasing the level of state support for training programs.

All state agencies which provide employment and training services are required to submit yearly plans on their training activities for council review and comment prior to agency adoption.  The state council reports to the Legislature yearly.

Service delivery areas and private industry councils are established and operate consistent with federal JTPA requirements.  Economically disadvantaged women and minorities are to be served at a rate which approximates their percent of the eligible population in a service delivery area.

Private industry councils are to review and comment on vocational education courses and programs conducted by state, schools, colleges or technical institutes.

Service delivery areas are to serve as the substate areas for dislocated worker services under Title III of the Job Training Partnership Act.  At least 60 percent of the funds provided for dislocated workers shall be expended on training.

The employment futures fund is established with moneys collected from employers at a rate of 6/100th of 1 percent of employee wages.  Contributions will be collected from January 1, 1990 to December 31, 1995.  Funds shall be used for training of JTPA eligible individuals.  The unemployment insurance taxes collected from employers are reduced by an amount equivalent to that collected for the employment futures fund.

EFFECT OF PROPOSED SUBSTITUTE: 

The provisions relating to the employment futures fund are removed.  The council is required to perform analyses of training programs, supply and demand of training services and other matters relating to training rather than develop a plan for increasing state support.  Private industry councils are to review programs but not courses conducted by state, schools, colleges or technical institutes.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 23, 1989

Senate Committee - Testified: Jeff Johnson, State Labor Council; Doug Marshall, AWB; Jan Gee, Washington Retail Association (pro); Gary Smith, IBA (pro)