SENATE BILL REPORT

SB 6624

BYSenators Halsan, Anderson, DeJarnatt, Lee, McMullen, West, Vognild, Gaspard, Warnke, Owen, Moore, Conner, Hansen, Madsen, Smitherman, Rasmussen, Talmadge, Bender, Garrett, Wojahn, Fleming and Rinehart

Establishing programs to assist job retention and unemployment.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 5, 1988

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Conner, Deccio, McMullen, Saling, Smitherman, Warnke, West, Williams.

Senate Staff:Jack Brummel (786-7428)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 5, 1988

BACKGROUND:

Over 46,000 unemployed state residents exhausted their unemployment benefits in 1987.  This high level of worker dislocation is associated with a high business failure rate.  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 workforces needing assistance and the 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 program uses local retention teams to do surveys of local business needs and coordinate the delivery of local and other resources to local businesses and workforces.

The job services program of the Employment Security Department may now provide additional reemployment assistance to older workers and the long term unemployed including assessment of training needs, referral to training programs, and verbal and written notice of their eligibility to receive unemployment benefits while in commissioner-approved training programs.

Local reemployment centers are selected by the Department of Community Development in five areas of the state.  The centers will provide direct or referral services to assist the unemployed.  Employment Security and Social and Health Services personnel place employees on a full-time or part-time basis in the reemployment centers.  Reemployment center records which identify individual clients are exempt from the public records act.

Payments to the administrative contingency fund in Employment Security are increased 2/100 of 1 percent.  1/100 of 1 percent is devoted to the Business and Job Retention Program.

SUMMARY OF PROPOSED COMMITTEE AMENDMENTS:

The appropriation is stricken.

Appropriation:    $300,000 from the Federal Interest Payment Fund to the Department of Community Development

Revenue:    yes

Fiscal Note:      requested February 3, 1988

Senate Committee - Testified: Senator Halsan; Ernie LaPalm, Department of Employment Security