AN ACT Relating to the employee ownership program; reenacting and amending RCW 43.63A.230; adding a new section to chapter 43.63A RCW; repealing section 18, chapter 186, Laws of 1988 (uncodified); and making an appropriation.

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

Sec. 1. Section 15, chapter 457, Laws of 1987 as amended by section 17, chapter 186, Laws of 1988 and RCW 43.63A.230 are each reenacted and amended to read as follows:

(1) The department of community development shall integrate an employee ownership program within its existing technical assistance programs. The employee ownership program shall provide technical assistance to cooperatives authorized under chapter 23.78 RCW and conduct educational programs on employee ownership and self-management. The department shall include information on the option of employee ownership wherever appropriate in its various programs.

(2) The director of the department shall form an employee ownership advisory panel to assist in the development of the employee ownership program. The panel shall consist of representatives of educational institutions; local, regional, and national cooperative and employee-ownership organizations; employee-owned cooperatives; firms with employee stock ownership plans; and associate development organizations.

(3) The department shall maintain a list of firms and individuals with expertise in the field of employee ownership and utilize such firms and individuals, as appropriate, in delivering and coordinating the delivery of technical, managerial, and educational services. In addition, the department shall work with and rely on the services of the department of trade and economic development, the employment security department, and state institutions of higher education to promote employee ownership.

((~~(3)~~)) (4) The department shall report to the governor, the trade and economic development committee of the house of representatives, the commerce and labor committee of the senate, and the ways and means committees of each house by December 1 of 1988, and each year thereafter, on the accomplishments of the employee-ownership program. Such reports shall include the number and types of firms assisted, the number of jobs created by such firms, the types of services, the number of workshops presented, the number of employees trained, and the results of client satisfaction surveys distributed to those using the services of the program.

((~~(4)~~)) (5) For purposes of this section, an employee stock ownership plan qualifies as a cooperative if at least fifty percent, plus one share, of its voting shares of stock are voted on a one-person-one-vote basis.

NEW SECTION. Sec. 2. A new section to chapter 43.63A RCW to read as follow:

(1) The employee ownership training fund is created in the custody of the state treasurer. Disbursements from the fund shall be on authorization of the director of the department of community development or the director's designee. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements. Expenditures from the fund may be used only to develop and provide training for employees of firms which have recently begun operation as cooperatives or firms with employee ownership plans under which a majority of the voting shares are controlled by employees. Such training shall be limited to sessions on participatory management, labor management cooperation, employee participation and involvement in decision making, and conflict resolution.

(2) The employee ownership advisory committee shall review applications for use of the employee ownership training fund and make recommendations to the department regarding approval of the applications.

(3) The department may require that funds made available for training be: (a) Matched by the recipients based on their ability to pay, or (b) returned to the employee ownership training fund once the firm has produced a profit.

(4) No more than ten thousand dollars shall be made available from the fund to any firm. Priority in availability of funds shall be given to: (a) Employee-owned firms with large numbers of employees, and (b) employee-owned firms which play a major role in the economy of distressed areas as defined in RCW 43.165.010.

(5) Firms applying for employee ownership training funds must show that they have made a good faith effort to obtain training resources from other state or federal agencies or educational institutions, and that they have inadequate internal resources to provide the necessary training at the time the application to the fund is made.

(6) The department is authorized to solicit grants from private and public sources and shall work with the administrative agencies responsible for disbursement of state and federal vocational education and training dollars to maximize the availability of such dollars to firms applying for employee ownership training funds.

NEW SECTION. Sec. 3. The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of community development for the biennium ending June 30, 1991, to carry out the purposes of this act. One hundred thousand dollars of this appropriation shall be deposited in the employee ownership training fund. One hundred thousand dollars of this appropriation shall be used to enhance technical assistance and educational outreach efforts of the employee ownership program.

NEW SECTION. Sec. 4. Section 18, chapter 186, Laws of 1988 (uncodified) is repealed.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.