Brief Description: Providing a source of funding for customized work force training.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Shin, Rasmussen, Pflug, Doumit, Rockefeller, Weinstein, Pridemore, Hewitt, Jacobsen, Thibaudeau, Swecker, Sheldon, Oke, Keiser, Kohl-Welles, Franklin, Kline and Berkey).

Senate Committee on International Trade & Economic Development
Senate Committee on Ways & Means
House Committee on Higher Education & Workforce Education
House Committee on Appropriations

Background: The Washington Competitiveness Council has recommended the acceleration of worker training in high-demand fields for new workers, incumbent workers, and displaced workers. The council advocates an increase in capacity to provide customized training for business recruitment or expansion. The state's Job Skills Program is a customized training program that matches employer investments in on-the-job training but it is among the smallest customized training programs in the nation.

Summary: The Washington Customized Employment Workforce Training program is created for employers locating or expanding in the state. The State Board for Community and Technical Colleges (SBCTC) is to administer the program. Training allowances are awarded to employers who have entered into training agreements with colleges in the state. Preference in granting training allowances is given to employers with fewer than 50 employees.

The Employment Training Finance Account is created and funds in the account are solely for the SBCTC to provide training allowances. At the completion of training, employers are required to pay one quarter of the cost of the training into the account. The additional three quarters of the cost are to be paid into the account over the following 18 months. A business and occupation tax credit is provided to employers for half of the amount that they pay into the account for employee training.

Employers are to increase their employment in the state by an amount equal to at least 75 percent of the trainees in their training program.

A participating employer who takes the tax credit must file a survey with the Department of Revenue with employment information. The Department of Revenue is to report to the Legislature in December 2011 regarding job creation and related information. The program expires on July 1, 2012

Votes on Final Passage:

Senate      48   0
House      63   32   (House amended)
Senate      47   1   (Senate concurred)

Effective: June 7, 2006