SENATE BILL REPORT

SB 6730

BYSenators Lee, Smitherman and Bluechel

Establishing the business and job retention program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1990

Senate Staff:Jack Brummel (786-7428)

AS OF JANUARY 29, 1990

BACKGROUND:

Business failure, plant closures and workforce reductions due to changing economic conditions or fluctuations in defense spending can cost the state from 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 workforces needing assistance and the coordinating 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 department designates service delivery regions and solicits proposals for local job retention activities.  Funds granted to local organizations for business and job retention work must be matched by local resources on a dollar for dollar basis.  Local organizations must:  implement a system to identify firms at risk of closure, workforce reduction or relocation; conduct outreach activities; and coordinate local, state and federal resources to assist firms and workforces.  The department is responsible for developing model surveys to be used by local groups and developing a training program for individuals involved in business and job retention activities.

The department establishes a Business and Job Retention Advisory Committee which has equal representation from business and labor.

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.  The director is required to report to the Legislature on the department's progress in implementing the act by January 1, 1991.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested