READ FIRST TIME 03/02/09.   

     AN ACT Relating to workforce employment and training; amending RCW 50.16.010; adding a new section to chapter 28B.50 RCW; adding new sections to chapter 50.22 RCW; creating a new section; and declaring an emergency.

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

Sec. 1   RCW 50.16.010 and 2009 c 4 s 906 are each amended to read as follows:
     (1) There shall be maintained as special funds, separate and apart from all public moneys or funds of this state an unemployment compensation fund, an administrative contingency fund, and a federal interest payment fund, which shall be administered by the commissioner exclusively for the purposes of this title, and to which RCW 43.01.050 shall not be applicable.
     (2)(a) The unemployment compensation fund shall consist of:
     (i) All contributions collected under RCW 50.24.010 and payments in lieu of contributions collected pursuant to the provisions of this title;
     (ii) Any property or securities acquired through the use of moneys belonging to the fund;
     (iii) All earnings of such property or securities;
     (iv) Any moneys received from the federal unemployment account in the unemployment trust fund in accordance with Title XII of the social security act, as amended;
     (v) All money recovered on official bonds for losses sustained by the fund;
     (vi) All money credited to this state's account in the unemployment trust fund pursuant to section 903 of the social security act, as amended;
     (vii) All money received from the federal government as reimbursement pursuant to section 204 of the federal-state extended compensation act of 1970 (84 Stat. 708-712; 26 U.S.C. Sec. 3304); and
     (viii) All moneys received for the fund from any other source.
     (b) All moneys in the unemployment compensation fund shall be commingled and undivided.
     (3)(a) Except as provided in (b) of this subsection, the administrative contingency fund shall consist of:
     (i) All interest on delinquent contributions collected pursuant to this title;
     (ii) All fines and penalties collected pursuant to the provisions of this title;
     (iii) All sums recovered on official bonds for losses sustained by the fund; and
     (iv) Revenue received under RCW 50.24.014.
     (b) All fees, fines, forfeitures, and penalties collected or assessed by a district court because of the violation of this title or rules adopted under this title shall be remitted as provided in chapter 3.62 RCW.
     (c) During the 2007-2009 biennium, moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014(1)(a), shall be expended as appropriated by the legislature for the (i) cost of the job skills or worker retraining programs at the community and technical colleges and administrative costs at the state board for community and technical colleges, and (ii) reemployment services such as business and project development assistance, local economic development capacity building, and local economic development financial assistance at the department of community, trade, and economic development, and the remaining appropriation upon the direction of the commissioner, with the approval of the governor, whenever it appears to him or her that such expenditure is necessary solely for:
     (i) The proper administration of this title and that insufficient federal funds are available for the specific purpose to which such expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available.
     (ii) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation.
     (iii) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.
     (d) For fiscal year 2010, moneys available in the administrative contingency fund, other than money in the special account created under RCW 50.24.014(1)(a), shall be expended as appropriated by the legislature to serve individuals who are eligible for or have exhausted entitlement to unemployment compensation benefits and are enrolled in a high employer demand program of study or a forest product industry training program pursuant to section 2 of this act, and the remaining appropriation upon the direction of the commissioner, with the approval of the governor, whenever it appears to the commissioner that such expenditure is necessary solely for:
     (i) The proper administration of this title and that insufficient federal funds are available for the specific purpose to which such expenditure is to be made, if the moneys are not substituted for appropriations from federal funds which, in the absence of such moneys, would be made available;
     (ii) The proper administration of this title for which purpose appropriations from federal funds have been requested but not yet received, if the administrative contingency fund will be reimbursed upon receipt of the requested federal appropriation; and
     (iii) The proper administration of this title for which compliance and audit issues have been identified that establish federal claims requiring the expenditure of state resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide substitute services or program support; and last priority is the direct payment of funds to the federal government.
     Money in the special account created under RCW 50.24.014(1)(a) may only be expended, after appropriation, for the purposes specified in this section and RCW 50.62.010, 50.62.020, 50.62.030, 50.24.014, 50.44.053, and 50.22.010.

NEW SECTION.  Sec. 2   A new section is added to chapter 28B.50 RCW to read as follows:
     (1) Subject to availability of funds, high employer demand training funds are available for use by the state board for community and technical colleges to serve individuals who are eligible for or have exhausted entitlement to unemployment compensation benefits and are enrolled in a high employer demand program of study or a forest product industry training program. Preference must be given to individuals enrolled in the forest product industry, health care, energy efficiency, and aerospace worker training programs.
     (2) Funds may be used for the following purposes for individuals eligible under subsection (1) of this section: Expenses related to educational and career counseling services, training plan development, and referral to appropriate training programs in high-demand occupations; increased capacity at community and technical colleges to make training programs in high-demand occupations available; financial aid for eligible students enrolled at an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410; and job development and referral services.
     (3) After the first year of the program, if funds are not fully expended, the state board for community and technical colleges may broaden individual eligibility criteria.
     (4) Funds available under this section cannot be used to replace or supplant any existing enrollments, programs, support services, or funding sources.

NEW SECTION.  Sec. 3   A new section is added to chapter 50.22 RCW to read as follows:
     Consistent with the intent of the workforce investment act of 1998, P.L. 105-220, administrative funds made available under the act shall be used to serve individuals who are eligible for or have exhausted entitlement to unemployment compensation benefits and are enrolled in a high employer demand program of study or a forest product industry training program pursuant to section 2 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 50.22 RCW to read as follows:
     The employment security department shall encourage an increase in education and training through grants and local plan modifications with workforce development councils. Consistent with the intent of the workforce investment act, adult and dislocated worker program provisions in the American recovery and reinvestment act of 2009, the employment security department shall require workforce development councils to determine the number of participants who will receive education and training. The employment security department shall encourage workforce development councils to:
     (1) Increase the number of workforce investment act adult and dislocated worker participants receiving education and training to obtain employment in high-demand occupations as defined in RCW 50.22.--- (section 4, chapter 3, Laws of 2009), through institutions of higher education as defined in RCW 28B.10.016, or educational institutions as defined in RCW 28C.04.410; and
     (2) Use workforce investment act resources for the following education and training purposes: The provision of individual training accounts that provide student financial aid; to increase the number of individuals receiving training benefits; and to enter into contracts with institutions of higher education to increase capacity for training low-income individuals for high-demand occupations and dislocated workers for high-demand occupations.

NEW SECTION.  Sec. 5   The employment security department, in collaboration with the workforce training and education coordinating board, workforce development councils, and state board for community and technical colleges, shall submit reports as follows to the appropriate committees of the legislature related to the American recovery and reinvestment act of 2009 workforce investment act adult and dislocated worker programs:
     (1) A preliminary report by December 1, 2009, that includes expenditures on education and training, the number of students receiving training, the types of training received by the students, student demographics, and institution/program demographics;
     (2) A preliminary report by December 1, 2010, that includes the innovations in training including new training capacity, new classes, and alternative training times and locations; and
     (3) A final report by December 1, 2011, that includes expenditures on education and training, the number of certified full-time equivalent students receiving training, the types of training received by the students, student demographics, training completion rates, employment rates, and comparisons of preprogram and postprogram wage levels.

NEW SECTION.  Sec. 6   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.