BILL REQ. #:  H-4296.5 

Read first time 02/27/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to creating the Washington works corps program; amending RCW 82.04.330; adding a new section to chapter 82.32 RCW; adding a new chapter to Title 50 RCW; adding a new chapter to Title 43 RCW; and creating new sections.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that: (a) Washington state is experiencing a prolonged rate of high unemployment; (b) the long-term unemployed, veterans returning from Iraq and Afghanistan, and people with limited employment history are finding it particularly difficult to secure employment; (c) it is in the public interest to target employment projects to those activities that have the greatest benefit to the local economy; and (d) the talent and energy of Washington's unemployed adults are an untapped resource that should be challenged to meet the serious shortage in community services and promote and conserve the valuable resources of the state.
     (2) The legislature intends to establish the Washington works corps program as an operating program of the employment security department to increase opportunities for meaningful work experience, authorize public-private partnerships, meet community and environmental needs, and benefit local economies. Therefore, the legislature intends to provide unemployed individuals with the opportunity to perform needed services in communities throughout Washington.

NEW SECTION.  Sec. 2   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Agency administrative costs" means indirect expenses such as personnel, payroll, contract administration, fiscal services, and other overhead costs.
     (2) "Commissioner" means the commissioner of the employment security department.
     (3) "Corps" means the Washington works corps program.
     (4) "Department" means the employment security department.
     (5) "Enrollees" means those persons who have completed enrollment forms, completed work agreements, and who have entered into the Washington works corps program following the approval of the director of the supervising agency or the director's designee.
     (6) "Financial support" means a financial or in-kind contribution that supports Washington works corps employment project, including but not limited to funding for enrollee stipends or benefits, equipment, facilities, and training.
     (7) "Full-time term of service" means providing service on a full-time basis for a period of at least ten but no more than twelve months in duration.
     (8) "Program support costs" include, but are not limited to, program planning, development of reports, job and career training, uniforms and equipment, and standard office space and utilities. Program support costs do not include direct scheduling and supervision of corps enrollees.
     (9) "Supervising agencies" means those nonprofit organizations or public agencies that develop and implement full-time service projects in which enrollees agree to participate.
     (10) "Work agreement" means the written agreement between the department, the enrollee, and the supervising agency under this chapter for a period of up to twelve months.

NEW SECTION.  Sec. 3   The Washington works corps program is established within the department. The department has the following powers and duties as necessary to administer the corps:
     (1) Appointing a director and other personnel as necessary to carry out the purposes of this chapter;
     (2) Recruiting enrollees;
     (3) Recruiting supervising agencies to host the enrollees in full-time service activities;
     (4) Matching enrollees with appropriate service projects;
     (5) Establishing consistent work standards and placement and evaluation procedures of corps programs;
     (6) Monitoring enrollee activities for compliance with this chapter and compliance with work agreements;
     (7) Assisting enrollees in transition to employment upon termination from the programs, including such activities as orientation to the labor market, on-the-job training, and placement in the private sector;
     (8) Executing subgrants or agreements with any other state agencies, local institutions, nonprofit organizations, or nonprofit service corps organizations in the administration of the corps;
     (9) Selecting, reviewing, approving, and evaluating the success of corps projects;
     (10) Determining appropriate financial support levels for corps projects;
     (11) Assisting supervising agencies in obtaining financial support funds from private and public agencies, individuals, and foundations in order to support a portion of the projects cost; and
     (12) Seeking, applying for, and accepting grants, funds, or donations from the federal government, other public sources, or private sources for Washington works corps projects.

NEW SECTION.  Sec. 4   The corps shall be organized and managed to benefit the community or state at-large and may include but is not limited to programs, projects, or activities that:
     (1) Protect and enhance Washington's natural resources, and participate in the recovery of the ecosystem;
     (2) Address the educational and education-related needs of children, youth, families, and young adults within public educational institutions or related programs;
     (3) Address unmet needs related to opportunities for economically disadvantaged individuals within communities including financial literacy, housing assistance, job training, and nutritional assistance;
     (4) Seek to enhance, improve, or restore the environment or increase energy efficiency in communities;
     (5) Address unmet health needs within communities including access to health care, disease prevention, and health promotion initiatives;
     (6) Address unmet needs of veterans, members of the armed forces on active duty, and family members of deployed military personnel; and
     (7) Provide child care for other enrollees at licensed or certified child care or early learning facilities.

NEW SECTION.  Sec. 5    (1) No more than fifteen percent of the funds available for the Washington works corps program may be expended for administrative costs.
     (2) The combined administrative costs and program support costs may not exceed thirty percent of the total funds available for the Washington works corps.

NEW SECTION.  Sec. 6   The commissioner may select and enroll in the corps any person who is at least eighteen years of age, a resident of the state or a military spouse, and unemployed. Enrollees must be selected from among qualified individuals submitting applications for full-time service at such time, in such form, and containing such information as may be necessary to evaluate the suitability of each individual for service, and available placements. Efforts must be made to enroll individuals who are long-term unemployed, a veteran of Iraq or Afghanistan, or economically, socially, physically, or educationally disadvantaged. Enrollees may participate in a period of service of a maximum of twelve months, and may reapply for not more than one additional twelve-month period. The commissioner may prescribe such additional standards and procedures in consultation with supervising agencies as may be necessary in conformance with this chapter.

NEW SECTION.  Sec. 7   Washington works corps enrollees shall receive a stipend for their services of one thousand six hundred eighty-eight dollars per month. The stipend is a training and subsistence allowance. The stipend amount may be increased in the operating budget.

NEW SECTION.  Sec. 8   (1) Washington works corps enrollees who successfully complete a full-time term of service are eligible for an educational award equivalent to the maximum value of the Pell grant for the award year in which the term of service is funded. Enrollees who successfully complete a second term of service are eligible for a second educational award. Enrollees who successfully complete shorter terms of service may receive a partial education award at a level determined by the department.
     (2) The education award in this section may be used to pay education costs at institutions of higher education, to pay for educational training, and to repay qualified student loans. Allowable uses and limitations on the educational award must be consistent with the AmeriCorps program's educational award. The department shall determine by rule the process and requirements for providing an educational award.

NEW SECTION.  Sec. 9   The assignment of enrollees shall not result in the displacement of currently employed workers, including partial displacement such as reduction in hours of nonovertime work, wages, or other employment benefits. Supervising agencies that participate in the program may not terminate, lay-off, or reduce the working hours of any employee for the purpose of using an enrollee with funds available.

NEW SECTION.  Sec. 10    (1) The compensation received by enrollees is considered a training and subsistence allowance. Medical insurance and premiums under Title 51 RCW must be paid for the enrollees in the corps by the commissioner in accordance with the standards and limitations of the appropriation provided for this chapter. The department must give notice of coverage to the director of labor and industries after enrollment. The department shall not be deemed an employer of an enrollee for any other purpose.
     (2) Enrollees are not considered employees for any other purpose under state law, including but not limited to Titles 41, 49, and 50 RCW.

NEW SECTION.  Sec. 11   The services provided by enrollees under the Washington works corps program are not covered for purposes of unemployment compensation coverage under RCW 50.44.040(4) and the enrollees must be so advised by the department.

NEW SECTION.  Sec. 12   (1) Placements in the corps must be made in supervising agencies under work agreements as provided under this chapter and must include those assignments that provide for addressing community needs and conservation problems. Each work agreement must:
     (a) Demonstrate that the service project is appropriate for the enrollee's interests, skills, and abilities and that the project is designed to meet unmet community needs;
     (b) Require regular performance evaluation, including clear work performance standards set by the supervising agency and procedures for identifying strengths, recommended improvement areas, and conditions for probation or dismissal of the enrollee;
     (c) Provide time for participation in a core training program common to all participants or optional additional training; and
     (d) Include a commitment for partial financial support for the enrollee from private industry, public agencies, community groups, or foundations. The commissioner may establish additional standards for the development of placements for enrollees with supervising agencies and assure that the work agreements comply with those standards.
     (2) This section does not apply to conservation corps programs established by chapter 43.220 RCW.

NEW SECTION.  Sec. 13   All parties entering into work agreements under this chapter must agree that they will not discriminate in the providing of any service on the basis of age, sex, marital status, sexual orientation, race, creed, color, national origin, honorably discharged veteran or military status, or the presence of any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a person with a disability, unless based upon a bona fide occupational qualification.

NEW SECTION.  Sec. 14   A nonprofit organization, local institution, state agency, or nonprofit service corps organization that contracts with the department to provide a specific service, appropriate for the administration of this chapter, that the department cannot otherwise provide, may be reimbursed at the discretion of the department for the reasonable costs the department would absorb for providing those services.

NEW SECTION.  Sec. 15   The department shall adopt rules to implement this chapter.

NEW SECTION.  Sec. 16   A new section is added to chapter 82.32 RCW to read as follows:
     By May 1, 2013, and by May 1st of every year thereafter, the department must annually estimate the increase in state revenue for the prior calendar year resulting from the narrowing of the exemption in RCW 82.04.330 by section 23, chapter . . ., Laws of 2012 (section 23 of this act) and certify the estimated amount to the state treasurer. By July 1, 2013, and by July 1st of every year thereafter, the state treasurer must transfer the amount into the Washington works corps account created in section 18 of this act.

NEW SECTION.  Sec. 17   For the purpose of providing funds to finance the program described and authorized in chapter 50.-- RCW (the chapter created in section 24 of this act), and all costs incidental thereto, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of two hundred forty million dollars, or as much thereof as may be required, to finance this program and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine. No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.

NEW SECTION.  Sec. 18   The proceeds from the sale of the bonds authorized in section 17 of this act and revenue transfers under section 16 of this act must be deposited in the Washington works corps account hereby created in the state treasury. These proceeds shall be used exclusively for the program described and authorized in chapter 50.-- RCW (the new chapter created in section 24 of this act) and for the payment of expenses incurred in the issuance and sale of the bonds issued for the purposes of this section, and shall be administered by the office of financial management subject to legislative appropriation.

NEW SECTION.  Sec. 19   (1) The debt-limit Washington works corps bond retirement account, hereby created in the state treasury, shall be used for the payment of the principal of and interest on the bonds authorized in section 17 of this act.
     (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in section 17 of this act.
     (3) On each date on which any interest or principal and interest payment is due on bonds issued for the purpose of section 17 of this act, the state treasurer shall withdraw from the Washington works corps account created in section 18 of this act and deposit in the debt-limit Washington works corps retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.

NEW SECTION.  Sec. 20   (1) Bonds issued under section 17 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.
     (2) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION.  Sec. 21   The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 17 of this act, and section 20 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION.  Sec. 22   The bonds authorized in section 17 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

Sec. 23   RCW 82.04.330 and 2001 c 118 s 3 are each amended to read as follows:
     (1)(a) Except as provided in (b) of this subsection, this chapter ((shall)) does not apply to any farmer that sells any agricultural product at wholesale or to any farmer who grows, raises, or produces agricultural products owned by others, such as custom feed operations. ((This))
     (b) The exemption ((shall)) under (a) of this subsection does not apply to any person selling ((such)) agricultural products at retail or to any person selling manufactured substances or articles. A farmer may not exempt more than two hundred thousand dollars under this section in any calendar year.
     (2) This chapter shall also not apply to any persons who participate in the federal conservation reserve program or its successor administered by the United States department of agriculture with respect to land enrolled in that program.

NEW SECTION.  Sec. 24   Sections 1 through 15 of this act constitute a new chapter in Title 50 RCW.

NEW SECTION.  Sec. 25   Sections 17 through 22 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION.  Sec. 26   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION.  Sec. 27   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION.  Sec. 28   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.