HOUSE
BILL ANALYSIS
HB
2214
Brief
Description: Continuing the work
force employment and training program.
Sponsors: Representatives Huff, Clements, Carlson,
Alexander, Mastin, McMorris, and Buck
Hearing:
March 14, 1997
BACKGROUND:
The
Employment and Training Trust Fund was established in 1993, to fund training
and related support services, including financial aid, for unemployed workers
and to fund improvements in the state=s employment security system. The program is
subject to sunset review and termination on June 30, 1998.
Employer
tax
The
source of money for the trust fund is an employer tax of 0.12 percent of
taxable employee wages for employer=s in 19 of the 20 rate classes. The tax is paid
and collected in the same manner as employer contributions to the unemployment
insurance trust fund. It was the Legislature=s intent
that no net increase occur in employer tax rates so an off-setting reduction of
0.12 percent of taxable wages occurred in employer contributions to the
unemployment insurance trust fund for all rate classes except rate class 20.
The employer tax and the off-set expire with the end of calendar year 1997.
Education
and training
Under
this program, money from the trust fund is provided to the State Board for
Community and Technical Colleges to provide increased enrollments in training
programs for individuals who are unemployed and are eligible for or have
exhausted their unemployment benefits within the previous two years. A
priority is given to those unemployed workers who are not likely to return to
their previous employment because their particular skills are no longer in
demand.
Training
may include instruction in basic skills and literacy, occupational skills,
vocational education, or supplemental instruction for an individual enrolled in
a state-approved apprenticeship program. If a student requests training in a
private vocational school and no similar course of training is available at a
public institution in the student=s congressional district, a community college may
contract with a private vocational school to provide the training.
According
to the State Community and Technical College Board=s 1996-97 implementation plan, once money was received by the state
board, distribution to individual colleges occurred in three ways. Each
college received money according to a formula based on the level of
unemployment in the college=s service area. A second amount of money was
reserved for dislocated aerospace workers. The remainder was allocated through
a request for proposal process with recommendations made by a state-wide
advisory committee representing business, labor, the Employment Security
Department, the Workforce Training and Education Coordinating Board, and the
college system. Each college has a local business and labor advisory committee
that reviews proposals. A reserve pool of money is held for responding to
unexpected plant closures or other economic dislocations.
The
Workforce Training and Education Coordinating Board must review and approve the
State Community and Technical College Board=s plan for
use and evaluation of the funds. The plan must be consistent with the
workforce board=s comprehensive plan for workforce training.
Benefits
for individuals
Money
from the employment and training trust fund may be used for financial aid to
eligible students. Financial aid is awarded by the college to needy students.
Trust fund money is designated through the Omnibus Appropriations Act for
training completion aid that is available to those students who have exhausted their
unemployment benefits but have not yet completed their training. No specific
provision was made for eligible individuals to receive any additional
unemployment benefits when their regular benefits were exhausted.
Employment
services
Money
from the Employment and Training Trust Fund is provided to the Employment
Security Department to assist workers in finding employment, provide labor
market information, collect revenue for and administer the trust fund, improve
information technology, and collocate employment security and job service
locations on community and technical college campuses.
Accountability
reporting
Both
the Employment Security Department and the State Board for Community and
Technical Colleges must report to the Legislature annually on the outcomes of
providing training and services to unemployed workers under this program.
SUMMARY
OF BILL:
Modifications
are made to the training programs and employment services funded by the
Employment and Training Trust Fund that emphasize training of unemployed
workers. The program is extended one year and terminates June 30, 1999. The
employer tax terminates at the end of the calendar year 1997 as scheduled.
Education
and training
All
money appropriated from the Employment and Training Trust Fund for purposes of
training unemployed and dislocated workers must be allocated through a request
for proposal process. Along with community and technical colleges, private
vocational schools and federally-approved apprenticeship programs may compete
under the request for proposal process for money for training programs. A
state work force training advisory council reviews and approves proposals at
the state-level. The state board is allowed to withhold a reserve pool to
respond to emergencies.
Training
for basic skills and literacy is not included as training that may be funded
under this program.
Employment
services
Funding
under the program no longer includes activities provided by the Employment
Security Department to assist workers in finding employment, provide labor
market information, collect revenue for and administer the trust fund, improve
information technology, or provide collocated employment security and job
service locations on community and technical college campuses.
Benefits
for individuals
Individuals
who are unemployed and in training funded by the trust fund may continue to
receive unemployment benefits for up to two years while in training.
Funding
authority is not provided for individual financial assistance.
Accountability
reporting
The
Employment Security Department must report to the Legislature on the number of
individuals receiving unemployment insurance benefits while in training. The
State Board for Community and Technical Colleges must report to the Legislature
on program outcomes. These reports are due by December 1, in every
even-numbered year.
Analysis
of all state-funded work force training programs
The
Workforce Training and Education Coordinating Board must analyze state-funded
programs to determine program effectiveness and make recommendations on whether
these programs should continue. The board must report its recommendations to
the Legislature by December 1, 1999.
RULES
AUTHORITY: The bill does not
contain provisions addressing the rule-making powers of an agency.
FISCAL
NOTE: Not requested.
EFFECTIVE
DATE: The bill contains an
emergency clause and takes effect on July 1, 1997.