AN ACT Relating to a program for business assistance and reemployment of the unemployed; adding a new chapter to Title 50 RCW; making appropriations; and providing an expiration date.

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

NEW SECTION. Sec. 1. The employment security department shall establish a business assistance and reemployment demonstration project, with the cooperation of the department of community development and the department of trade and economic development. The demonstration project shall be administered by the employment security department under rules adopted by the department pursuant to chapter 34.04 RCW. The demonstration project shall include:

(1) A business and job retention project under section 2 of this act; and

(2) A rapid response project, with business and worker assistance, under section 3 of this act.

NEW SECTION. Sec. 2. (1) A business and job retention project shall be established at two or more locations selected by the employment security department. The employment security department may contract with associate development organizations where such organizations exist, or other similar existing nonprofit organizations, to coordinate each local business and job retention project. The organization selected to participate in the project shall, whenever possible, form a labor-management committee equally representing labor and management to carry out the responsibilities under this section. The committee shall elect a labor and a management representative as co-chairs. The committee or responsible organization may employ additional staff and contract for technical assistance with state educational institutions or nonprofit organizations as funding is available. Cooperation between the committee or responsible organization and state and local government agencies shall be facilitated by the employment security department.

(2) Each labor-management committee or responsible organization selected under subsection (1) of this section shall develop and implement a local business and job retention program. The program shall include a voluntary business survey addressing local business conditions and economic growth opportunities, and research on local business closures, reductions, relocations and expansions. The committee or organization shall also provide assistance to the job development and placement program of the rapid response project established in section 3 of this act. Information obtained from individual private businesses by the committee or organization shall be confidential and shall not be subject to public disclosure under chapter 42.17 RCW, except that statistical information not descriptive of any readily identifiable person or persons, business or businesses, may be disclosed. In providing information to the local committee or responsible organization, the department shall comply with any applicable state and federal laws regarding confidentiality of information.

(3) In addition to its responsibilities under subsection (2) of this section, the labor-management committee shall provide a forum for discussion of labor-management issues outside the scope of collective bargaining issues.

NEW SECTION. Sec. 3. The employment security department shall coordinate a rapid response demonstration project, in cooperation with the department of community development and the department of trade and economic development, as appropriate, using existing state agency and local government task forces or similar nonprofit organization task forces. The rapid response project shall include the business assistance and worker assistance demonstration projects. The responsibility for administering different aspects of the demonstration projects may be delegated to other state agencies by the employment security department.

(1) The business assistance demonstration project shall include coordinating delivery of the following services:

(a) Providing, at the request of a private business, technical assistance to promote positive business conditions including site specific needs, management assistance, new product line, or marketing assistance;

(b) Facilitating contact between a private business and other public business assistance programs and funding sources;

(c) Assisting in the development of worker training programs or layoff alternatives such as shared work compensation under Title 50 RCW;

(d) Assisting, where appropriate, the development of in-plant labor- management cooperative programs; and

(e) Assisting in analyzing the feasibility of new ownership or employee ownership for a closing plant.

(2) The worker assistance demonstration project shall include:

(a) Coordinating assistance and information to enable workers to receive services from existing job search, placement, training, and other available state and federal employment programs;

(b) Assisting in local job development and placement opportunities with the assistance of the local labor-management committee or responsible organization under section 2 of this act;

(c) Providing reemployment incentives for qualified unemployment compensation claimants. If federal or private funding is available, the employment security department shall establish a reemployment bonus demonstration project that provides for the payment of lump sum amounts to qualified unemployment compensation claimants who return to work within the time limits established by the department and who retain employment for a four-month period. For the purposes of this subsection, a qualified unemployment compensation claimant is one who accepts the employment security department's invitation to participate in the reemployment bonus demonstration project and who subsequently fulfills the enrollment requirements established by the department for participation in the project.

NEW SECTION. Sec. 4. The employment security department shall develop a model to evaluate the effectiveness of the demonstration projects established in this chapter in retaining businesses, encouraging business growth, and returning unemployed workers to employment. The department shall report the results of the study to the commerce and labor committees of the senate and house of representatives, or to the appropriate successor committees, by the start of the 1990 legislative session.

NEW SECTION. Sec. 5. This chapter shall expire and the demonstration projects shall cease to exist on July 1, 1989, unless extended by law for an additional fixed period of time.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act shall constitute a new chapter in Title 50 RCW.

NEW SECTION. Sec. 7. (1) There is appropriated one hundred thousand dollars to the employment security department, fifty thousand dollars to the department of community development, and fifty thousand dollars to the department of trade and economic development, or as much thereof as may be necessary, for the biennium ending June 30, 1989, from the general fund for the purposes of this act.

(2) There is appropriated one hundred twenty thousand dollars to the employment security department, or as much thereof as may be necessary, for the biennium ending June 30, 1989, from the general fund for the purposes of subsection (2)(c) of section 3 of this act, if the federal or private funding is available as specified in that section.