AN ACT Relating to private business entities receiving public assistance; adding a new chapter to Title 19 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1. The legislature finds that public assistance in the form of grants or tax deferrals or credits allowed to private business is a public service that should be subject to rules of conduct. In particular, the state should offer assistance to those private businesses that are willing to provide advance consultation to the state and their communities prior to plant relocation, closure, or employee layoff, and to continue to honor the obligations of their labor contracts after the relocation of a facility.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Business" means a person, firm, partnership, corporation, trust, association, or other form of private business organization which employs one or more employees at a facility within this state.

(2) "Business assistance programs" means the sales and use tax deferral or credit programs created in chapter 82.60 RCW, chapter 82.61 RCW, and chapter 82.62 RCW, state and local government industrial development bonds authorized under chapter 39.84 RCW, and any business assistance programs operated by the community economic revitalization board.

(3) "Certified closure or reduction date" means the actual or anticipated date of any reduction in operations at a business facility as determined by the department.

(4) "Department" means the state employment security department.

(5) "Reduction in operations" means the total closure of a business facility or any partial closure, other reduction in operations or relocation of a business facility that results in the layoff of at least twenty-five employees at the facility within a six month period prior to the closure date as certified by the department, but shall not include any reductions in operations specified in section 3 of this act.

NEW SECTION. Sec. 3. This chapter shall not apply to reductions in business operations:

(1) Resulting solely from labor disputes as defined by the national labor relations act;

(2) Occurring at construction sites;

(3) Resulting from seasonal factors, which are customary in the industry of which the business is a part, as determined by the department; or

(4) Resulting from fire, flood, war, or other acts of God.

NEW SECTION. Sec. 4. Any business participating in any of the state's business assistance programs shall agree to accept the following rules of conduct:

(1) A business reducing operations at a facility or relocating a facility that has been financed in whole or in part or otherwise benefitted by a business assistance program shall give the maximum practicable advance notice of the reduction or relocation, which notice shall be at least ninety days prior to the certified closure date or within ten days of the date that the business made the decision to reduce operations, if that decision is made less than ninety days from the certified closure date. The notice shall be provided in the form and manner prescribed by the department and shall include notice to: each employee at the facility; the employee representative, if any; local government officials in the county and/or municipality in which the facility is located; and the department. The business shall provide an opportunity to the parties receiving notice to discuss the effects of the reduction or relocation.

(2) A business relocating a facility within the state shall continue to recognize any union, international or local, that is a signatory to a collective bargaining agreement in effect at the relocating facility at the time of relocation.

(3) The business shall allow the public release of information obtained by the department for the purposes of this chapter.

NEW SECTION. Sec. 5. Failure to comply with section 4 of this act shall subject the business to the following:

(1) If the failure to comply occurs within any period in which any tax deferral still exists, the business's tax deferral shall be rescinded and the entire amount of any remaining deferred tax together with a ten percent penalty on the tax owing and interest at twelve percent per annum shall be immediately due and payable. Interest shall accrue from the date notice of the tax deferral rescission is received by the business.

(2) If the failure to comply occurs within ten years of receiving authorization for industrial revenue bonds, the business that has received industrial revenue bonds shall be penalized an amount equal to the federal tax exemption received plus ten percent of the federal tax exemption together with interest at twelve percent per annum.

NEW SECTION. Sec. 6. No business shall receive state assistance under any business assistance program unless the business agrees to accept the rules of conduct specified under section 4 of this act. Any business that receives the benefits of a state business assistance program who violates any provision of this chapter is not eligible for any business assistance program for a period of ten years following the date of violation as determined by the department.

NEW SECTION. Sec. 7. (1) The employment security department shall be notified by the department of revenue and the community economic revitalization board of each business that participates in a business assistance program. The employment security department shall review all reductions in operations or relocations of participating businesses for compliance with this chapter, shall make any necessary administration determinations, and shall assess and collect any penalties for violations under the assessment and collection provisions of chapter 50.24 RCW. All penalties collected shall be paid into the state general fund.

(2) Any business receiving a notice of violation under this chapter may file an appeal in accordance with the provisions of chapter 50.32 RCW.

(3) The department shall adopt rules under chapter 34.04 RCW to carry out the purposes of this chapter.

NEW SECTION. Sec. 8. Sections 1 through 7 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 9. This act will take effect January 1, 1988.