SENATE BILL REPORT

SB 5105

BYSenators Lee, Warnke, Anderson, McMullen, Smitherman and Conner

Establishing a business and job retention program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 11, 1989

Senate Staff:Jack Brummel (786-7428)

AS OF JANUARY 20, 1989

BACKGROUND:

Washington's business failure rate has been among the highest in the nation over the past 20 years.  The costs to the state include lost taxes, lost jobs, and increased social service 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 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 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, and solicits proposals for and selects job retention teams for each region.

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, the State Board for Community College Education, and the Superintendent of Public Instruction each assist the Department of Trade and Economic Development in carrying out the purposes of the act.

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.

Appropriation:    $900,000 for program, $170,000 for feasibility fund

Revenue:    yes

Fiscal Note:      requested January 10, 1989