SENATE BILL REPORT

SB 6277

BYSenators Warnke, Smitherman, Fleming, Williams, Conner and Lee

Establishing the business and job retention program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 14, 1988; January 28, 1988; January 29, 1988

Majority Report:  That Substitute Senate Bill No. 6277 be substituted therefor, and the substitute bill do pass and be referred to Ways & Means.

      Signed by Senators Lee, Chairman; Conner, Deccio, McMullen, Saling, Smitherman, Warnke.

Senate Staff:Jack Brummel (786-7428)

                  January 29, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 8, 1988

Majority Report:  That Second Substitute Senate Bill No. 6277 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Saling, Smith, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:Kevin Johnson (786-7715)

                  February 11, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 8, 1988

BACKGROUND:

Washington's business failure rate historically has been among the highest in the nation.  The costs to the state include lost taxes, lost jobs, and increased social expenditures.  The formation of public/private partnerships to address the problems associated with business failure and job loss has proved effective in a number of states.  These programs typically include a means to identify those businesses or work forces needing assistance and coordination of public and private resources at the local level.

SUMMARY:

The Business and Job Retention Program is established in the Department of Trade and Economic Development.  The managing director of the program is appointed by the governor and consults with an advisory committee in implementation of the program.  The managing director designates service delivery regions, establishes local business and job retention teams for each region, and designates a team coordinator for each team.

The managing director develops and implements a training program to prepare the local teams and team coordinators for their responsibilities.  In addition, the managing director develops a model business survey for use by the local teams.  Information from the surveys will be used to target various types of assistance to those businesses and work forces indicating a need.

Team coordinators are responsible for soliciting assistance from private and public entities within their regions as well as appropriate expertise from outside the region.  The local teams provide marketing, technical, managerial, and training assistance as appropriate.

The Employment Security Department, the Department of Community Development, and the State Board for Vocational Education each assist the Department of Trade and Economic Development in carrying out the purposes of the act.

To mitigate the effects of dislocation caused by business failure, both Community Economic Revitalization Board projects and public works trust fund projects are subject to first source hiring agreements.

EFFECT OF PROPOSED ECONOMIC DEVELOPMENT & LABOR SUBSTITUTE:

The Community Economic Revitalization Board and the public works trust fund provisions are removed.  The advisory committee examines state, local, and federal government policies and regulations as potential causes of business closures.

The director may provide funds for the study of the feasibility of various options for continuing or renewing the operation of industrial facilities which are threatened with closure or which have already closed.

EFFECT OF PROPOSED WAYS & MEANS SUBSTITUTE:

The appropriation for the feasibility study fund is lowered from $250,000 to $120,000 from the federal interest payment fund.

Appropriation:    $620,000

Revenue:    yes

Fiscal Note:      requested January 13, 1988

Senate Committee - Testified: ECONOMIC DEVELOPMENT & LABOR:  John Anderson, DTED; Greg Dohrn, DCD; Susan Dann, ESD; Pete Butkus, State Public Works Board; Jim Tussler, Washington State Labor Council; Jeff Johnson, Washington State Labor Council; Bob Bell, Economic Development Partnership; Tom Croft, Seattle Worker Center; Pat Dann, Seattle-King County EDC; Steve White, Skamania County EDC; Jim Brumitt; Terry Millard; Terry Gressett; Larry Cramer; Lee Franklin, Pacific Coast Metal Trades

Senate Committee - Testified: WAYS & MEANS: No one