BP BHEAD INT S [atlas:bill]

AN ACT Relating to economic development by improving the skills and productivity of Washington workers; adding new sections to chapter 28C.18 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.16 RCW; providing an effective date; and providing an expiration date.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28C.18 RCW to read as follows:

The board shall create a skills gap program for the purpose of promoting economic development in Washington state by increasing the skills and productivity of Washington workers. The program shall be used to create partnerships with business, labor, and the work force employment and training system to close the skills gap in Washington state. The grants shall be used to:

(1) Create partnerships with businesses, labor organizations, and industry associations that share common occupations for the purpose of determining their future employment and training needs;

(2) Bring together community colleges and other employment and training providers to develop the programs that meet the employment and training needs defined by the above industry partnerships;

(3) Expand the use of skills standards and customized training designed to meet the specific needs of business;

(4) Upgrade the skills of existing workers; and

(5) Support increased use of on-the-job learning strategies among small and medium-sized enterprises.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

(1) A person whose application has been approved by the department under this section may take a credit against the tax imposed by this chapter, subject to the limitations in this section.

(2)(a) The credit under this section is equal to fifty percent of work force training payments. A person may not receive credit for work force training payments over five thousand dollars per employee per calendar year. A person is not eligible to receive a total credit in excess of one hundred thousand dollars for each calendar year.

(b) As a precondition to approval by the department under subsection (4) of this section, the person must have entered into a training contract with a public or private accredited training institution. The work force training and education coordinating board shall provide a list of accredited institutions to interested persons and to the department.

(3) For the purposes of this section:

(a) "Employer" means the same as "person" as defined in RCW 82.04.030; and

(b) "Work force training payments" means the direct payments for employees in job classes covered by the federal fair labor standards act and made under a contract with a public or private accredited training institution for technical or skill training, including basic skills. The term includes amounts in the contract for instruction, materials, equipment, rental of class space, marketing, and overhead. "Work force training payments" do not include employee tuition reimbursements, unless the tuition reimbursement is specifically included in a contract under subsection (2)(b) of this section.

(4) Application for credits under this section shall be made to the department in a form and manner prescribed by the department. The application shall include an affidavit form regarding the person's compliance with this section. The department shall approve or deny an application for credits using the criteria under this section. The department shall require the person receiving approval to keep any records necessary for the department to verify eligibility under this section. A person shall apply for the credit after making a payment. Tax credit applications shall not be approved for work force training payments that occurred before the effective date of this act.

(5) Employers participating in the partnerships defined in section 1 of this act shall apply for the tax credit upon receiving the grants described in section 1 of this act. Any funds remaining after those tax credits are granted shall be available to other employers on a first-come basis, with priority based on the date and time the application is received by the department. The total amount of credits granted under this section and section 3 of this act shall be no more than one million dollars each fiscal year. If the amount submitted for a credit will cause the cap to be exceeded, the department shall give a partial approval of the application, equal to the amount of remaining credit available for the fiscal year.

(6) If an employer has tax credits in excess of the amount of tax that would otherwise be due under this chapter, they may carry forward the tax credit for up to five years. Refunds shall not be given in place of credits.

(7) If a person has used a payment to obtain a credit against tax due under chapter 82.16 RCW, the person may not use the same payment credit for tax due under this chapter.

(8) A person who takes credits under RCW 82.04.4333 may not take a credit under this section for the same training.

NEW SECTION. Sec. 3. A new section is added to chapter 82.16 RCW to read as follows:

The tax credit program under section 2 of this act is available to persons for taxes due under this chapter. If a person has used a payment to obtain a credit against taxes due under chapter 82.04 RCW, the person may not use the same payment for tax due under this chapter. A person who takes credits under RCW 82.04.4333 may not take a credit under this section for the same training.

NEW SECTION. Sec. 4. A new section is added to chapter 28C.18 RCW to read as follows:

The board shall review the impact of tax credits provided under sections 2 and 3 of this act by September 1, 2002, and report to the legislature as to its effectiveness in expanding the amount of incumbent worker training in Washington state.

NEW SECTION. Sec. 5. This act takes effect July 1, 2000.

NEW SECTION. Sec. 6. This act expires June 30, 2003.