HOUSE BILL REPORT

HB 1653

BYRepresentatives Grimm, Ballard, Holm, Heavey, Jones, Sayan, P. King, Brough, Dorn and May; by request of Employment Security Department

Changing provisions relating to the Washington youth employment exchange.

House Committe on Trade & Economic Development

Majority Report:  Do pass. (15)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Beck, Cantwell, Doty, Fox, Hargrove, Heavey, Holm, Kremen, McLean, Moyer, Rasmussen,  Schoon and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

FEBRUARY 3, 1988

BACKGROUND:

The Washington Service Corps was created by the Legislature as the Washington Youth Employment Exchange in 1983.  The program provides training to young people 18-25 years of age through community service opportunities in nonprofit and public agencies.  In 1985, the Legislature set administrative goals for the program, including a limitation of program administrative costs to fifteen percent of total program costs and a directive that sixty percent of enrollee funds were to be expended in distressed areas.  The program was reauthorized during the 1987 session, and extended to July 1, 1993.

The shifts in industrial structure in the state which have led to only modest increases in manufacturing employment have resulted in large increases in service employment.  Wage levels for service employment are sharply divided between high and low wage employment, with educational attainment levels and training a major difference between high and low wage positions. Apprenticeship programs to provide young people with work experience are a proven method of increasing the level achievement of participants.

SUMMARY:

The Service Corps is expanded to include training and community service opportunities through the private sector.  The Service Corps is permitted to establish internship positions with private corporations for young adults from 18 to 25 years of age, especially members of ethnic minority groups or enrollees in the Family Independence Program.  Positions are to be part-time during the school year and full-time during the summer.  An appropriation is made to the Employment Security Department of three hundred thousand dollars from the federal interest payment fund for the current biennium.  The effective date of the program is April 1, 1988.

Appropriation:    $300,000.00 to the Employment Security Department from the Federal Interest Payment Fund.

Fiscal Note:      Requested February 1, 1988.

Effective Date:The bill takes effect on April 1, 1988.

House Committee ‑ Testified For:    Ike Turner, Employment Security Department; Bill Basil, Employment Security Department.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Service Corps program has been in operation for five years. Would increase the applicability of the Service Corps concept to work with the private sector.  The proposed program would increase the usefulness of the Corps for serving minority youth.  There are programs in other states which bear some resemblance to the proposed Youth Exchange, but none exactly the same or operated on a statewide basis.

House Committee - Testimony Against:      None Presented.