AN ACT Relating to the establishment of a business and job retention program; adding new sections to chapter 43.31 RCW; and creating new sections.

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

NEW SECTION. Sec. 1. The legislature finds that the Washington state economy has suffered as a result of plant closures, business failures, and mass layoffs, and that fluctuations in defense spending can have a devastating effect on defense dependent communities, industries, and workforces in the state. The state has a substantial and continuing interest in assuring the survival of firms currently operating in the state by assisting them in adjusting to changing economic conditions.

NEW SECTION. Sec. 2. The department shall establish a business and job retention advisory committee. The governor shall appoint eight people to serve on the advisory committee by July 1, 1990, including equal representation from business and labor, and may also appoint up to four additional nonvoting members with expertise in business and job retention activities. Staff assistance shall be provided to the committee by the department.

NEW SECTION. Sec. 3. The business and job retention program is created. In carrying out the program, the director shall:

(1) Designate, after consultation with the job retention advisory committee, no more than twelve service delivery regions in the state, each of which shall have no less than one county and no more than five counties within it.

(2) Select, in response to proposals solicited in each service delivery region and with the approval of the job retention advisory committee, local organizations in each service delivery region to receive funds for local business and job retention activities. Within any service delivery region, no more than two local organizations shall be selected and no more than thirty-five thousand dollars shall be awarded. Funds granted to the local organizations for business and job retention activities must be matched by local resources on a dollar-for-dollar basis. All local organizations submitting proposals must demonstrate in the proposals the ability to (a) implement a system to identify firms at risk of closure, mass layoff, or relocation out-of-state through the administration of local business surveys or other appropriate methods; (b) conduct outreach activities to notify firms and workforces within the region of any public or private technical training or placement assistance available; (c) coordinate local, state, and federal resources to assist firms and workforces that request assistance; and (d) maintain in confidence any information provided by a business owner or potential business owner.

(3) Develop model local business surveys and assist the selected local organizations in administering surveys of businesses and employees in each region.

(4) Develop and implement for the selected local organizations training programs that will train people in the tools and processes for (a) retraining businesses and jobs, (b) developing and coordinating local resources, (c) assisting with the need for outside resources, and (d) locating other public and private resources needed to assist firms and workers.

NEW SECTION. Sec. 4. The director shall, in consultation with the job retention advisory committee, develop and maintain a list of firms and individuals with expertise in the field of business retention, including management consultants, financial consultants, personnel consultants, efficiency experts, and industrial engineers. The department shall utilize such firms and individuals, as appropriate, in delivering and coordinating the delivery of retention services when requested by business owners, potential business owners, or local organizations selected for business and job retention activities.

NEW SECTION. Sec. 5. The director shall, in consultation with the job retention advisory committee, provide funds to study the feasibility of various options for continuing or renewing the operation of industrial facilities that are threatened with closure or that have already closed. Funding shall be made available as follows:

(1) Local governments, ports, local associate development organizations, or local nonprofit community organizations shall be eligible for funds.

(2) The director may require that money be matched by recipients based on their ability to pay or returned to the department for use consistent with the provisions of this section.

(3) No more than twenty-five thousand dollars of state money provided for feasibility studies shall be made available for each study. Only one study may be funded for each industrial facility.

(4) Priority in availability of funds shall be given to (a) closure, mass layoffs, or relocations out-of-state affecting large numbers of employees; and (b) industrial facilities in distressed areas as defined under RCW 43.165.010.

(5) In providing funding for studies, the department shall also consider the severity of the problems affecting the business or workforce and the extent and severity of the social and economic costs of the closure, mass layoff, or relocation.

NEW SECTION. Sec. 6. The director of the department of trade and economic development shall report to the house of representatives appropriations, trade and economic development, and commerce and labor committees, and the senate ways and means and economic development and labor committees on its progress in implementing this act by January 1, 1991.

NEW SECTION. Sec. 7. Sections 2 through 5 of this act are each added to chapter 43.31 RCW.