AN ACT Relating to economic development; amending RCW 43.240.020, 43.17.010, 43.17.020, 43.63A.075, 28C.04.040, 28C.04.410, 28C.04.420, 28C.04.430, 28C.04.440, 28C.04.460, 28C.04.470, and 28C.04.480; adding new sections to chapter 43.31 RCW; adding a new section to chapter 43.63A RCW; creating new sections; recodifying RCW 28C.04.400, 28C.04.410, 28C.04.420, 28C.04.430, 28C.04.440, 28C.04.450, 28C.04.460, 28C.04.470, and 28C.04.480; and repealing RCW 43.63A.030 and 43.63A.040.

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

NEW SECTION. Sec. 1. A new section is added to chapter 43.63A RCW to read as follows:

The department of community development is hereby abolished and its powers, duties, and functions are hereby transferred to the department of trade and economic development. All references to the director or department of community development in the Revised Code of Washington shall be construed to mean the director or department of trade and economic development.

Sec. 2. Section 10, chapter 467, Laws of 1985 and RCW 43.240.020 are each amended to read as follows:

((~~There is hereby established~~)) The Washington state economic development board, referred to in this chapter as the board, is hereby established within the department of trade and economic development. The board is charged with the responsibility for creating a long-term economic development strategy for the state.

Sec. 3. Section 1, chapter 10, Laws of 1979 as last amended by section 47, chapter 466, Laws of 1985 and RCW 43.17.010 are each amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of game, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of trade and economic development, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, and (14) the department of corrections, ((~~and (15) the department of community development,~~)) which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 4. Section 2, chapter 10, Laws of 1979 as last amended by section 48, chapter 466, Laws of 1985 and RCW 43.17.020 are each amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of game, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of trade and economic development, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, and (14) the secretary of corrections((~~, and (15) the director of community development~~)).

Such officers, except the secretary of transportation and the director of game, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041, and the director of game shall be appointed by the game commission.

NEW SECTION. Sec. 5. A new section is added to chapter 43.31 RCW to read as follows:

The following programs are transferred to the department and the department shall have all powers necessary to implement these programs:

(1) The business license information service, the master license service, trade name registration, the uniform commercial code service, and securities registration exemptions, from the department of licensing.

(2) The educational coordination and grants program, from the commission for vocational education.

(3) The environmental permit information center, from the department of ecology.

Sec. 6. Section 6, chapter 125, Laws of 1984 as amended by section 53, chapter 466, Laws of 1985 and RCW 43.63A.075 are each amended to read as follows:

The department shall establish a community development finance program. Pursuant to this program, the department shall: (1) Develop expertise in federal, state, and local community and economic development programs; and (2) assist communities and businesses to secure available financing((~~; and (3) work closely with the department of trade and economic development on financial and technical assistance programs available to small and medium sized businesses~~)). To the extent permitted by federal law, the department is encouraged to use federal community block grant funds to make urban development action grants to communities which have not been eligible to receive such grants prior to June 30, 1984.

Sec. 7. Section 4, chapter 174, Laws of 1975 1st ex. sess. as last amended by section 78, chapter 266, Laws of 1986 and RCW 28C.04.040 are each amended to read as follows:

The commission for vocational education shall have the following functions:

(1) Plan development. The commission shall be responsible for complying with federal directives to insure the development and maintenance of a state plan for vocational education but initial planning shall be accomplished by the secondary and postsecondary education systems. Prior to the adoption of the state plan, the commission shall request comments from the higher education coordinating board and the advisory council for vocational education.

(2) State plan modification adjudication. Decisions on new programs and/or facilities for vocational education shall be made internally within the respective secondary or postsecondary education system in accordance with the provisions of the state plan. The commission may review such decisions to insure compliance with the state plan and avoid unnecessary duplication of current or projected programs.

Any common school or community college district, or the superintendent of public instruction, or the state board for community college education, or other interested parties as authorized by the commission, shall be afforded the opportunity to comment upon any new programs or facilities proposed. The commission, subject to dispute resolution rules adopted by said commission, shall have the final determination on any disputes arising out of such program proposals.

In adjudicating disputes between the two secondary and postsecondary education systems regarding the state plan, the commission will use at least the following criteria: Recognition that secondary education is constitutionally the responsibility of the superintendent of public instruction and that by legislative action postsecondary education is the responsibility of institutions of higher education; adhere to the general policy set forth in the state plan; consider the particular vocational need of the community, region, or state and whether the common school or community college, or both, can best respond to those needs; encourage cooperation and coordination rather than competition and program conflict between secondary and postsecondary education systems; consider the desires and preferences of the residents of the immediate program service area and of the representatives of the fields of management, labor, and agriculture which benefit from possible program offerings; and avoid unnecessary duplication of vocational education programs and facilities.

(3) Vocational education administration. The commission shall be the sole agency for the receipt and allocation of federal funds in accordance with the state plan. The supervision of the state plan shall be carried out by the commission; however, daily administration of the state plan shall be primarily the responsibility of the superintendent of public instruction and the state board for community college education: PROVIDED, That the commission shall review and approve state plan development proposals or special programs requiring personal service contracts, and activities beyond the program responsibilities of the superintendent of public instruction and the state board for community college education.

Under the state plan the commission shall make periodic compliance audits at least once a biennium of the vocational education programs individually and jointly conducted by the common schools and community colleges to insure compliance with the state plan.

The commission shall be the primary state liaison with the federal government for the state plan for vocational education.

((~~(4) Job skills program. The commission shall have the following powers and duties for the job skills program:~~

(a) To collect and disseminate to interested individuals, in cooperation with and through any agencies of federal, state, and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith, and any other relevant information;

(b) To apply for, utilize, and accept grants from other federal, state, and local agencies for the purposes of matching requirements and to facilitate the purposes of RCW 28C.04.420 through 28C.04.480;

(c) To help identify, upon the request of business and industry, those educational institutions which could provide the training services sought by business and industry and to identify any existing programs which could serve the particular needs of business and industry;

~~(d) To provide job skills grants to educational institutions to facilitate the development of programs of job skills training and education consistent with employment needs;~~

~~(e) To work cooperatively with the employment security department to enhance and update the state's occupational information system and the state's career information system;~~

~~(f) To adopt rules to carry out its powers and duties for the job skills program.~~))

Sec. 8. Section 2, chapter 21, Laws of 1983 1st ex. sess. and RCW 28C.04.410 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.31.--- through 43.31.--- (RCW ((~~28C.04.040 and~~)) 28C.04.420 through 28C.04.480 as recodified by section 22 of this 1987 act).

(1) "Applicant" means an educational institution which has made application for a job skills grant under RCW 43.31.--- through 43.31.--- (RCW 28C.04.420 through 28C.04.480 as recodified by section 22 of this 1987 act).

(2) "Business and industry" means a private corporation, institution, firm, person, group, or association concerned with commerce, trades, manufacturing, or the provision of services within the state, or a public or nonprofit hospital licensed by the department of social and health services.

(3) "Educational institution" means a public secondary or postsecondary institution or an independent institution within the state authorized by law to provide a program of skills training or education beyond the secondary school level. Any educational institution receiving a job skills grant under RCW 43.31.--- through 43.31.--- (RCW 28C.04.420 through 28C.04.480 as recodified by section 22 of this 1987 act) shall be free of sectarian control or influence as set forth in Article IX, section 4 of the state Constitution.

(4) "Equipment" means tangible personal property which will further the objectives of the supported program and for which a definite value and evidence in support of the value have been provided by the donor.

(5) "Financial support" means any thing of value which is contributed by business and industry to an educational institution which is reasonably calculated to support directly the development and expansion of a particular program under RCW 43.31.--- through 43.31.--- (RCW 28C.04.420 through 28C.04.480 as recodified by section 22 of this 1987 act) and represents an addition to any financial support previously or customarily provided to such educational institutions by the donor. "Financial support" includes, but is not limited to, funds, equipment, facilities, faculty, and scholarships for matriculating students and trainees.

(6) "Job skills grant" means funding that is provided to an educational institution by the commission for the development or significant expansion of a program under RCW 43.31.--- through 43.31.--- (RCW 28C.04.420 through 28C.04.480 as recodified by section 22 of this 1987 act).

(7) "Job skills program" means a program of skills training or education separate from and in addition to existing vocational education programs and which:

(a) Provides short-term training which has been designated for specific industries;

(b) Provides training for prospective employees before a new plant opens or when existing industry expands;

(c) Includes training and retraining for workers already employed by an existing industry or business where necessary to avoid dislocation or where upgrading of existing employees would create new vacancies for unemployed persons;

(d) Serves areas with high concentrations of economically disadvantaged persons and high unemployment;

(e) Serves areas with new and growing industries;

(f) Serves areas where there is a shortage of skilled labor to meet job demands; or

(g) Promotes the location of new industry in areas affected by economic dislocation.

(8) "Technical assistance" means professional and any other assistance provided by business and industry to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program and which represents an addition to any technical assistance previously or customarily provided to the educational institutions by the donor.

((~~(9) "Commission" or "commission for vocational education" shall mean the commission for vocational education or any successor agency or organization.~~))

NEW SECTION. Sec. 9. A new section is added to chapter 43.31 RCW to read as follows:

The department shall have the following powers and duties for the job skills program:

(1) To collect and disseminate to interested individuals, in cooperation with and through any agencies of federal, state, and municipal government, information concerning areas of present and projected employment need, programs of skills training and education consistent therewith, and any other relevant information;

(2) To apply for, utilize, and accept grants from other federal, state, and local agencies for the purposes of matching requirements and to facilitate the purposes of RCW 43.31.--- through 43.31.--- (RCW 28C.04.420 through 28C.04.480 as recodified by section 22 of this act);

(3) To help identify, upon the request of business and industry, those educational institutions which could provide the training services sought by business and industry and to identify any existing programs which could serve the particular needs of business and industry;

(4) To provide job skills grants to educational institutions to facilitate the development of programs of job skills training and education consistent with employment needs;

(5) To work cooperatively with the employment security department to enhance and update the state's occupational information system and the state's career information system; and

(6) To adopt rules to carry out its powers and duties for the job skills program.

Sec. 10. Section 4, chapter 21, Laws of 1983 1st ex. sess. and RCW 28C.04.420 are each amended to read as follows:

The ((~~commission~~)) department may, subject to appropriation from the legislature or from funds made available from any other public or private source and pursuant to rules adopted by the ((~~commission~~)) department, provide job skills grants to educational institutions. The job skills grants shall be used exclusively for programs which are consistent with the job skills program. A job skills grant may be awarded only after:

(1) Receipt of an application from an educational institution which contains a proposal for a program of skills training and education, including a description of the program, the type of skills training or education to be provided, a statement of the total cost of the program and a breakdown of the costs associated with equipment, personnel, facilities, and materials, a statement of the employment needs for the program and evidence in support thereof, demonstrates that the program does not unnecessarily duplicate existing programs in the area and is provided at a reasonable cost, a statement of the technical assistance and financial support for the program received or to be received from business and industry, and such other information as the ((~~commission~~)) department requests; and

(2) The ((~~commission~~)) department, based on the application submitted by the educational institution and such additional investigation as the ((~~staff of the commission~~)) department shall make, finds that:

(a) The program is within the scope of the job skills program under this chapter and may reasonably be expected to succeed and thereby increase employment within the state;

(b) Provision has been made to use any available alternative funding from local, state, and federal sources;

(d) The program will not unnecessarily duplicate existing programs and could not be provided by another educational institution more effectively or efficiently;

(e) The program involves an area of skills training and education for which there is a demonstrable need;

(f) The applicant has made provisions for the use of existing federal and state resources for student financial assistance;

(g) The job skills grant is essential to the success of the program as the resources of the applicant are inadequate to attract the technical assistance and financial support necessary for the program from business and industry;

(h) The commitment of financial support from business and industry shall be equal to or greater than the amount of the requested job skills grant;

(i) Binding commitments have been made to the ((~~commission~~)) department by the applicant for adequate reporting of information and data regarding the program to the ((~~commission~~)) department, particularly information concerning the recruitment and employment of trainees and students, and including a requirement for an annual or other periodic audit of the books of the applicant directly related to the program, and for such control on the part of the ((~~commission~~)) department as it considers prudent over the management of the program, so as to protect the use of public funds, including, in the discretion of the ((~~commission~~)) department and without limitation, right of access to financial and other records of the applicant directly related to the programs;

(j) Provision has been made by the applicant to work, in cooperation with the employment security department, to identify and screen potential trainees and that provision has been made by the applicant of persons who are victims of economic dislocation and persons from minority and economically disadvantaged groups to participate in the program; and

(k) Binding commitments have been made to the ((~~commission~~)) department by the applicant for compliance with the monitoring and evaluation rules of the ((~~commission~~)) department.

Sec. 11. Section 5, chapter 21, Laws of 1983 1st ex. sess. and RCW 28C.04.430 are each amended to read as follows:

Upon approval of a job skills grant application by the ((~~commission~~)) department, the ((~~commission~~)) department shall immediately provide notification of its decision to the employment security department. The notification shall include the following information regarding the supported program: The trade, occupation, or profession with which the program is concerned; a description of the curriculum, the requirements for participation, and the procedures for making application; the duration of the program; a description of support services available to participants in the program; and any other information relevant to encouraging and facilitating the participation in the program of those in economic need.

Sec. 12. Section 6, chapter 21, Laws of 1983 1st ex. sess. as amended by section 40, chapter 466, Laws of 1985 and RCW 28C.04.440 are each amended to read as follows:

The ((~~department of trade and economic development or its successor~~)) commission for vocational education and the employment security department shall each enter into an interagency agreement with the ((~~commission on vocational education~~)) department to establish cooperative working arrangements for the purposes of RCW 43.31.--- through 43.31.--- (RCW 28C.04.410 through 28C.04.480 as recodified by section 22 of this 1987 act).

Sec. 13. Section 8, chapter 21, Laws of 1983 1st ex. sess. as amended by section 41, chapter 466, Laws of 1985 and RCW 28C.04.460 are each amended to read as follows:

The department ((~~of trade and economic development or its successor~~)) shall for the purposes of RCW 43.31.--- through 43.31.--- (RCW 28C.04.410 through 28C.04.480 as recodified by section 22 of this 1987 act):

(1) Work cooperatively with the commission on vocational education to market the job skills program to business and economic development agencies and other firms; and

(2) Recruit industries from outside the state to participate in the job skills training program((~~; and~~

~~(3) Refer business and industry interested in developing a job skills training program to the commission on vocational education~~)).

Sec. 14. Section 9, chapter 21, Laws of 1983 1st ex. sess. and RCW 28C.04.470 are each amended to read as follows:

The ((~~commission~~)) department shall annually submit a complete and detailed report of the ((~~commission's~~)) department's activities within ninety days after the end of the fiscal year to the chief clerk of the house of representatives, to the secretary of the senate, and to the governor. The annual report shall include, but not be limited to, descriptions of all programs funded, and evaluation of the performance of each program, a summary of the public moneys expended, and the demographic and economic characteristics of the individuals trained, educated, and employed, including, in particular, the number of minority and economically disadvantaged individuals.

Sec. 15. Section 10, chapter 21, Laws of 1983 1st ex. sess. and RCW 28C.04.480 are each amended to read as follows:

A person making satisfactory progress in a program under this section and RCW 43.31.--- through 43.31.--- (RCW 28C.04.410 through 28C.04.470 as recodified by section 22 of this 1987 act) and who in the determination of the commissioner of employment security has no reasonable expectation of securing work without training shall be deemed to be in training with the approval of the commissioner of employment security for the purposes of RCW 50.20.043.

NEW SECTION. Sec. 16. All reports, documents, surveys, books, records, files, papers, or written material pertaining to the powers, functions, and duties transferred by this act shall be delivered to the custody of the department of economic development. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in carrying out the powers, functions, and duties transferred shall be made available to the department of economic development. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred shall be assigned to the department of economic development.

Any appropriations made for carrying out the powers, functions, and duties transferred shall, on the effective date of this section, be transferred and credited to the department of economic development.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 17. All employees engaged in performing the powers, functions, and duties transferred by this act are transferred to the jurisdiction of the department of economic development. All employees classified under chapter 41.06 RCW, the state civil service law, or chapter 28B.16 RCW, the state higher education personnel law, are assigned to the department of economic development to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 18. All rules and all pending business pertaining to the powers, functions, and duties transferred by this act shall be continued and acted upon by the department of economic development. All existing contracts and obligations shall remain in full force and shall be performed by the department of economic development.

NEW SECTION. Sec. 19. The transfer of the powers, duties, functions, and personnel shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 20. If apportionments of budgeted funds are required because of the transfers directed by this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 21. Nothing contained in this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 22. The following sections are recodified as sections in chapter 43.31 RCW: RCW 28C.04.400, 28C.04.410, 28C.04.420, 28C.04.430, 28C.04.440, 28C.04.450, 28C.04.460, 28C.04.470, and 28C.04.480.

NEW SECTION. Sec. 23. The following acts or parts of acts are each repealed:

(1) Section 3, chapter 74, Laws of 1967, section 1, chapter 125, Laws of 1984 and RCW 43.63A.030; and

(2) Section 4, chapter 74, Laws of 1967, section 10, chapter 40, Laws of 1975, section 3, chapter 125, Laws of 1984 and RCW 43.63A.040.