SENATE BILL REPORT

SSB 5383

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Lee, Smitherman, Anderson, McMullen and Bailey)

Establishing a program for employment and training planning.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 24, 1989; March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5383 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:Jack Brummel (786-7428)

                  April 17, 1989

House Committe on Trade & Economic Development

AS PASSED SENATE, MARCH 10, 1989

BACKGROUND:

The federal Job Training Partnership Act (JTPA) of 1982 created a mechanism to establish job training programs for youth and unskilled adults through local service delivery areas.  Several states have adopted comprehensive legislation which institutionalizes into state policy the goals and resources of JTPA.

SUMMARY:

The Washington State Job Training Coordinating Council is established, consistent with the provisions of the federal Job Training Partnership Act.  The council is responsible for preparing a two-year coordination and special services plan which includes a description of resources and programs, an evaluation of programs, recommendations for improvement, and coordination criteria.  The council also establishes standards and criteria for local service delivery area plans and the allocation of JTPA funds, maintains the performance of programs, and reviews and approves the labor market information plan and dislocated worker plan required by law.  The Governor may transfer to the state council other coordinating duties currently required by federal statute but carried out by other bodies.  The council is also required to conduct analyses of training programs, supply and demand of training services and other matters relating to training.

All state agencies which provide employment and training services are required to submit yearly plans on their training activities for council review and comment prior to agency adoption.  The state council reports to the Legislature yearly.

Service delivery areas and private industry councils are established and operate consistent with federal JTPA requirements.  Economically disadvantaged women and minorities are to be served at a rate which approximates their percent of the eligible population in a service delivery area.

Private industry councils are to review and comment on vocational education courses conducted by state, schools, colleges or technical institutes.

Service delivery areas are to serve as the substate areas for dislocated worker services under Title III of the Job Training Partnership Act.  At least 60 percent of the funds provided for dislocated workers shall be expended on training.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 23, 1989

Senate Committee - Testified: Jeff Johnson, State Labor Council; Doug Marshall, AWB; Jan Gee, Washington Retail Association (pro); Gary Smith, IBA (pro)

HOUSE AMENDMENTS:

The Washington Employment Futures Program is established to provide training and related services to eligible participants.

The program is administered by the Washington Council on Employment Futures.  The council consists of six voting members and eight nonvoting members.  Three of the voting members must represent business and three of the voting members must represent labor. The nonvoting members of the council consist of the Superintendent of Public Instruction, the Executive Director of the State Board for Vocational Education, the Executive Director of the State Board for Community College Education, a legislator from each of the four caucuses, and the Commissioner of Employment Security who chairs the council.  The Department of Employment Security provides administrative support to the council.

The council contracts for training services with training providers, private industry councils, or employers or employee organizations.  Proposals are submitted jointly with either training providers or private industry councils.

Training providers must be reimbursed for the full cost of training.  Indirect costs, however, may not exceed 10 percent of the total costs and 25 percent of the costs shall not be paid to the provider until the trainee is placed and employed for at least 90 days.

Proposals must demonstrate the provider's past success in training and job placement, as well as the employment demand for the proposed trainees.  The council may only approve proposals for training that prepare people for jobs with definite career potential and long-term job security.  At least 75 percent of the funds must be expended for training linked to specific job openings.  The council may establish minimum standards for length of training, wage levels of jobs for which training will be provided, and costs per trainee.

Priority is given to training proposals in areas of critical skill shortages, for jobs in businesses that would likely fail were it not for the provision of the training, for jobs in businesses that are either newly locating in the state or expanding employment in the state, and for jobs in distressed areas.

Eligible participants include unemployment insurance claimants, individuals who have exhausted their unemployment benefits within the previous 24 months, employees who have received notice under the federal law regarding displacement within the next 60 days, employees who receive notice of displacement under any similar state law, employees who receive notice from the employer of displacement within 120 days, and displaced homemakers.

The department is to perform an evaluation of the program and develop a statewide tracking system to follow the post program employment history of program participants.  An interim report is required by January 1, 1990.  Yearly evaluations are required by January 1, 1991 and 1992.  A detailed evaluation report is required by January 1, 1993.

The employment futures fund is established to provide the resources for the Employment Futures Program.  Fund contributions are collected by the department from employers at a rate of six one- hundredths of 1 percent of employee wages.  For most employers, the unemployment insurance tax is reduced by an amount equivalent to that collected for the employment futures fund.  Moneys in the fund must be appropriated.  Contributions to the employment futures fund commence on January 1, 1989.

The Washington Employment Futures Program terminates on June 30, 1993.

There is an appropriation of $21,100,000 from the employment futures fund to the Employment Security Department.

There is a provision for the creation of the Washington State Job Training Coordination Council consistent with the federal JTPA.