BP BHEAD INT S [atlas:bill]

AN ACT Relating to youth job training and work force preparation; amending RCW 50.72.010, 50.72.020, 50.72.030, 50.72.040, 50.72.050, 50.72.070, and 43.185.070; adding a new section to chapter 82.04 RCW; adding a new section to chapter 48.14 RCW; adding a new section to chapter 50.72 RCW; adding a new section to chapter 28C.18 RCW; repealing RCW 50.67.030; making an appropriation; providing an effective date; and providing expiration dates.

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

Sec. 1. RCW 50.72.010 and 1994 sp.s. c 3 s 1 are each amended to read as follows:

(1) The legislature finds that there is a need to:

(a) Expand the supply of permanent affordable housing for homeless individuals, low and very low-income persons, and special need populations by utilizing the energies and talents of economically disadvantaged youth;

(b) Provide economically disadvantaged youth with opportunities for meaningful work and service to their communities in helping to meet the housing needs of homeless individuals, low and very low-income persons, and special need populations;

(c) Enable economically disadvantaged youth to obtain the education and employment skills necessary to achieve economic self-sufficiency; and

(d) Foster the development of leadership skills and commitment to community development among youth ((~~in designated community empowerment zones~~)).

(2) The legislature declares that the purpose of the Washington ((~~youthbuild~~)) youthbuilt program is to:

(a) Help disadvantaged youth who have dropped out of school to obtain the education and employment skills necessary to achieve economic self-sufficiency and develop leadership skills and a commitment to community development ((~~in designated community empowerment zones~~)); and

(b) Provide funding assistance to entities implementing programs that provide comprehensive education and skills training programs designed to lead to self-sufficiency for economically disadvantaged youth.

Sec. 2. RCW 50.72.020 and 1994 sp.s. c 3 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Applicant" means a public or private nonprofit organization agency eligible to provide education and employment training under federal or state employment training programs.

(2) "Commissioner" means the commissioner of employment security.

(3) "Department" means the employment security department.

(4) "Low income" has the same meaning as in RCW 43.185A.010.

(5) ((~~"Participant" means an individual that:~~

~~(a) Is sixteen to twenty-four years of age, inclusive;~~

~~(b) Is or is a member of a very low-income household; and~~

~~(c) Is~~)) "Individual who has dropped out of high school" means an individual who is neither attending any school nor subject to a compulsory attendance law and who has not received a secondary school diploma or a certificate of equivalency for such diploma.

(6) "Very low income" means a person or household whose income is at or below fifty percent of the median family income, adjusted for household size, for the county where the household is located.

(7) ((~~"Youthbuild"~~)) "Youthbuilt" means any program that provides disadvantaged youth with opportunities for employment, education, leadership development, entrepreneurial skills development, and training in the construction or rehabilitation of housing for special need populations, very low-income households, or low-income households.

Sec. 3. RCW 50.72.030 and 1994 sp.s. c 3 s 3 are each amended to read as follows:

The Washington ((~~youthbuild~~)) youthbuilt program is established within the department. The commissioner((~~, in cooperation and consultation with the director of the department of community, trade, and economic development, shall~~)) may:

(1) Make grants, up to the lesser of three hundred thousand dollars or twenty-five percent of the total costs of the ((~~youthbuild~~)) youthbuilt activities, to applicants eligible to provide education and employment training under federal or state employment training programs, for the purpose of carrying out a wide range of multidisciplinary activities and services to assist economically disadvantaged youth under the federal opportunities for youth: Youthbuild program (106 Stat. 3723; 42 U.S.C. Sec. 8011), or locally developed ((~~youthbuild-type~~)) youthbuilt-type programs for economically disadvantaged youth; ((~~and~~))

(2) Coordinate youth employment and training efforts under the department's jurisdiction and cooperate with other agencies and departments providing youth job training or work force preparation services to ensure that funds appropriated for the purposes of this chapter will be used to supplement funding from federal, state, local, or private sources; and

(3) Provide a waiver to allow an applicant's program to select no more than twenty-five percent of the participants in its program who do not meet the requirement of RCW 50.72.050(1)(c), but who have educational needs despite attainment of a high school diploma or its equivalent.

Sec. 4. RCW 50.72.040 and 1994 sp.s. c 3 s 4 are each amended to read as follows:

(1) Grants made under this chapter shall be used to fund an applicant's activities to implement a comprehensive education and employment skills training program.

(2) Activities eligible for assistance under this chapter include:

(a) Education and job skills training services and activities that include:

(i) Work experience and skills training, coordinated to the maximum extent feasible, with preapprenticeship and apprenticeship programs in construction and rehabilitation trades;

(ii) Services and activities designed to meet the educational needs of participants, including basic skills instruction and remedial education, bilingual education for participants with limited-English proficiency, secondary education services and activities designed to lead to the attainment of a high school diploma or its equivalent, and counseling and assistance in attaining postsecondary education and required financial aid;

(b) Counseling services and related activities;

(d) Support services and need-based stipends necessary to enable the participant to participate in the program and to assist participants through support services in retaining employment;

(e) Wage stipends and benefits provided to participants; and

(f) Administrative costs of the applicant, not to exceed ((~~five~~)) nine percent of the amount of assistance provided under this chapter.

Sec. 5. RCW 50.72.050 and 1994 sp.s. c 3 s 5 are each amended to read as follows:

(1) Except as provided in RCW 50.72.030(3), an individual selected to participate in a youthbuilt program funded under this chapter must be:

(a) Sixteen through twenty-four years of age, inclusive;

(b) A very low-income individual or a member of a very low-income household; and

(2) An individual selected as a participant in the ((~~youthbuild~~)) youthbuilt program under this chapter may be offered full-time participation for a period of not less than six months and not more than twenty-four months.

((~~(2)~~)) (3) An applicant's program that is selected for funding under this chapter shall be structured so that fifty percent of the time spent by the participants in the ((~~youthbuild~~)) youthbuilt program is devoted to educational services and activities, such as those outlined in RCW 50.72.040.

Sec. 6. RCW 50.72.070 and 1994 sp.s. c 3 s 7 are each amended to read as follows:

(1) An applicant selected for funding under this chapter shall provide the department information on program and participant accomplishments. The information shall be provided in progress and final reports as requested by the department.

(2) ((The department shall prepare an initial evaluation report, which shall be made available to the governor and appropriate legislative committees, on or before December 1, 1995, on the progress of individual programs funded under this chapter. A final evaluation report shall be prepared on individual programs at the time of their completion.)) The department shall include, as part of its report to the governor and legislature, a report on the activities of individual programs funded under this chapter. The ((~~final evaluation~~)) report shall include, but is not limited to, information on the effectiveness of the program, the status of program participants, and recommendations on program administration at the state and local level.

Sec. 7. RCW 43.185.070 and 1994 sp.s. c 3 s 9 are each amended to read as follows:

(1) During each calendar year in which funds from the housing trust fund or other legislative appropriations are available for use by the department for the housing assistance program, the department shall announce to all known interested parties, and through major media throughout the state, a grant and loan application period of at least ninety days' duration. This announcement shall be made as often as the director deems appropriate for proper utilization of resources. The department shall then promptly grant as many applications as will utilize available funds less appropriate administrative costs of the department. Administrative costs paid out of the housing trust fund may not exceed four percent of annual revenues available for distribution to housing trust fund projects. In awarding funds under this chapter, the department shall provide for a geographic distribution on a state-wide basis.

(2) The department shall give first priority to applications for projects and activities which utilize existing privately owned housing stock including privately owned housing stock purchased by nonprofit public development authorities and public housing authorities as created in chapter 35.82 RCW. As used in this subsection, privately owned housing stock includes housing that is acquired by a federal agency through a default on the mortgage by the private owner. Such projects and activities shall be evaluated under subsection (3) of this section. Second priority shall be given to activities and projects which utilize existing publicly owned housing stock. All projects and activities shall be evaluated by some or all of the criteria under subsection (3) of this section, and similar projects and activities shall be evaluated under the same criteria.

(3) The department shall give preference for applications based on some or all of the criteria under this subsection, and similar projects and activities shall be evaluated under the same criteria:

(a) The degree of leveraging of other funds that will occur;

(b) The degree of commitment from programs to provide necessary habilitation and support services for projects focusing on special needs populations;

(c) Recipient contributions to total project costs, including allied contributions from other sources such as professional, craft and trade services, and lender interest rate subsidies;

(d) Local government project contributions in the form of infrastructure improvements, and others;

(e) Projects that encourage ownership, management, and other project-related responsibility opportunities;

(f) Projects that demonstrate a strong probability of serving the original target group or income level for a period of at least twenty-five years;

(g) The applicant has the demonstrated ability, stability and resources to implement the project;

(h) Projects which demonstrate serving the greatest need;

(i) Projects that provide housing for persons and families with the lowest incomes;

(j) Projects serving special needs populations which are under statutory mandate to develop community housing;

(k) Project location and access to employment centers in the region or area;

(l) Projects that provide employment and training opportunities for disadvantaged youth under a ((~~youthbuild~~)) youthbuilt or ((~~youthbuild-type~~)) youthbuilt-type program as defined in RCW 50.72.020; and

(m) Project location and access to available public transportation services.

(4) The department shall only approve applications for projects for mentally ill persons that are consistent with a regional support network six-year capital and operating plan.

NEW SECTION. Sec. 8. A new section is added to chapter 82.04 RCW to read as follows:

(1) There may be credited against the tax imposed by this chapter, a credit equal to one hundred percent of the person's or company's contribution to a local youthbuilt or youthbuilt-type program as defined in RCW 50.72.020.

(2) Prior to claiming the credit under this section, the person or company must obtain approval of the contribution from the employment security department before the actual contribution is made. The application must be made in a form and manner approved by the department of revenue and the employment security department.

(3) No person or company is eligible for a tax credit in excess of one million dollars during the calendar year and a tax credit may not be granted to a person or company for an amount contributed of less than one thousand dollars.

(4) The department of revenue shall keep a running total of tax credits granted under this section and section 9 of this act during each calendar year and shall disallow any credits that would cause the total credits for any calendar year to exceed five million dollars. A person or company whose credit is disallowed under this subsection may carry the credit forward and take the credit during the earliest calendar year or calendar years during which the total of all credits granted under this section and section 9 of this act does not exceed five million dollars. The department of revenue, in allowing the credit, shall give priority to a person or company whose credit has been previously disallowed under this subsection and section 9 of this act over a person or company initially claiming the credit under this section and section 9 of this act.

(5) This section expires July 1, 2002.

NEW SECTION. Sec. 9. A new section is added to chapter 48.14 RCW to read as follows:

(1) There may be credited against the tax imposed by RCW 48.14.020, an amount equal to one hundred percent of the business's contribution to a local youthbuilt or youthbuilt-type program as defined in RCW 50.72.020.

(2) Prior to claiming the credit under this section, the business must obtain approval of the contribution from the employment security department before the actual contribution is made. The application must be made in a form and manner approved by the department of revenue and the employment security department.

(3) No business is eligible for a tax credit in excess of one million dollars during the calendar year and a tax credit may not be granted to a business for an amount contributed of less than one thousand dollars.

(4) The department of revenue shall keep a running total of tax credits granted under this section and section 8 of this act during each calendar year and shall disallow any credits that would cause the total credits for any calendar year to exceed five million dollars. A business whose credit is disallowed under this subsection may carry the credit forward and take the credit during the earliest calendar year or calendar years during which the total of all credits granted under this section and section 8 of this act does not exceed five million dollars. The department of revenue, in allowing the credit, shall give priority to a business whose credit has been previously disallowed under this subsection and section 8 of this act over a business initially claiming the credit under this section and section 8 of this act.

(5) This section expires July 1, 2002.

NEW SECTION. Sec. 10. A new section is added to chapter 50.72 RCW to read as follows:

This chapter may be known and cited as the Washington youthbuilt act.

NEW SECTION. Sec. 11. A new section is added to chapter 28C.18 RCW to read as follows:

In addition to its duties under this chapter, the work force training and education coordinating board shall advise the employment security department on the development and implementation of the Washington youthbuilt program created under chapter 50.72 RCW.

NEW SECTION. Sec. 12. RCW 50.67.030 and 1994 sp.s. c 3 s 8 are each repealed.

NEW SECTION. Sec. 13. Sections 8 and 9 of this act take effect July 1, 1998.

NEW SECTION. Sec. 14. 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. 15. The sum of six hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the employment security department for the purposes of the Washington youthbuilt program created under chapter 50.72 RCW.