AN ACT Relating to Washington employment futures act; amending RCW 50.04.075; adding a new chapter to Title 50 RCW; adding a new section to chapter 50.16 RCW; adding a new section to chapter 50.24 RCW; adding a new section to chapter 50.29 RCW; creating new sections; and declaring an emergency.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND DECLARATIONS. The legislature finds that the economy of Washington, like that of the nation, has shifted to an international economic arena. To meet this growing competition from other countries, businesses in the state need a skilled workforce. Because of the increased technical nature of the new jobs, the work force is increasingly unable to fill the needs of the job market. Action is needed to train workers for the job skills necessary now and in the future.

It is also recognized that twenty to thirty percent of the present labor force pool is deficient in various literacy skills which must be improved before they can take advantage of job training or retraining programs. It is essential that cooperative efforts to provide state citizens with appropriate job and literacy training be designed and administered in accordance with the economic conditions and employment needs of each locality. It is also recognized that existing state and federal programs addressing the employment needs of the economically disadvantaged are multiple, often uncoordinated responses to these needs.

The legislature finds that the encouragement of entrepreneurial development and business ownership is necessary if the state's opportunities for economic growth and job creation are to be realized.

The legislature finds and declares that section 126 of the federal job training partnership act requires coordination of all state job training efforts and allows the enactment of state legislation to implement the federal job training partnership act programs, provided the state legislation is consistent with the federal act. The job training coordination council and private industry councils created under the federal act have been effective and as constituted could immediately implement the requirements of this chapter. Furthermore the federal job training partnership act, P.L. 97-300, charges the state administering agency and private industry councils with the responsibility of coordinating the employment and training system in the state.

The legislature further finds that the Washington state employment service is the largest and most comprehensive public labor exchange in the state. Over the past decade federal funding for the public labor exchange has declined while the civilian labor force population to be served has continued to grow. An enhanced public labor exchange is necessary to assure that training needs are met and that workers are trained for available jobs.

NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Commissioner" means the commissioner of the employment security department.

(2) "Department" means the employment security department.

(3) "Program" means the Washington employment futures program, which is a comprehensive program created to ensure that the state workforce can produce and compete in the global economic arena.

(4) "Fund" means the employment futures fund established for the deposit and expenditure of funds acquired for the implementation of the Washington employment futures program.

(5) "State council" means the Washington state job training coordinating council.

(6) "Training and retraining" means any education or skill training activity that is needed by an individual to begin or continue full participation in the Washington workforce.

(7) "Employment and training system" includes agencies and institutions of elementary and secondary education, community colleges, vocational technical institutes, higher education, adult education, apprenticeship programs, employment training and retraining, vocational education, the public employment service and unemployment insurance system, and private and public nonprofit organizations that provide job training services, including programs authorized under the federal job training partnership act, P.L. 97-300.

(8) "Dislocated worker" means individuals who:

(a) Have been terminated or laid off or have received a notice of termination or layoff from employment, are eligible for or have exhausted their entitlement to unemployment compensation, and are unlikely to return to their previous industry or occupation;

(b) Have been terminated or have received a notice of termination of employment as a result of any permanent closure of or any substantial layoff at a plant, facility, or enterprise;

(c) Are long-term unemployed and have limited opportunities for employment or reemployment in the same or a similar occupation in the area in which they reside, including older individuals who may have substantial barriers to employment by reason of age; or

(d) Were self-employed (including farmers and ranchers) and are unemployed as a result of general economic condition in the community in which they reside or because of natural disasters.

Sec. 3. Section 1, chapter 181, Laws of 1984 and RCW 50.04.075 are each amended to read as follows:

DISLOCATED WORKER DEFINITION. "Dislocated worker" means ((~~any~~)) individuals who:

(1) ((~~Has been terminated or received a notice of termination from employment;~~

~~(2) Is eligible for or has exhausted entitlement to unemployment compensation benefits; and~~

~~(3) Is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry~~)) Have been terminated or laid off or have received a notice of termination or layoff from employment, are eligible for or have exhausted their entitlement to unemployment compensation, and are unlikely to return to their previous industry or occupation;

(2) Have been terminated or have received a notice of termination of employment as a result of any permanent closure of or any substantial layoff at a plant, facility, or enterprise;

(3) Are long-term unemployed and have limited opportunities for employment or reemployment in the same or a similar occupation in the area in which they reside, including older individuals who may have substantial barriers to employment by reason of age; or

(4) Were self-employed (including farmers and ranchers) and are unemployed as a result of general economic condition in the community in which they reside or because of natural disasters.

NEW SECTION. Sec. 4. ESTABLISHMENT OF STATE COORDINATING COUNCIL. There is hereby created the Washington state job training coordinating council. The state council is designed to promote a program of comprehensive and coordinated employment and training planning in Washington in accordance with the federal job training partnership act, P.L. 97-300, and other federal, state, and local programs, to be known as the Washington employment futures program.

The council shall develop an assessment process to evaluate coordination and duplication of employment and training programs among state and local agencies. The assessment shall include a determination of the sufficiency and adequacy of employment and training programs. The council shall make recommendations for distribution of available funds to meet the needs at the local level. The council shall provide necessary oversight of programs operated pursuant to this chapter to meet federal requirements of the job training partnership act.

NEW SECTION. Sec. 5. COMPOSITION OF COORDINATING COUNCIL‑-COMPENSATION OF MEMBERS. Current members of the Washington state job training coordinating council appointed pursuant to P.L. 97-300 shall serve as the state council for purposes of this chapter until new appointments are made consistent with this section. New appointments to the state council shall be made by December 31, 1989. The state council shall not exceed thirty members, appointed by the governor from nominations as provided in this section and as required by federal law, and shall be representative of the population mix of the state.

The governor shall appoint one of the nongovernmental members to be chair of the council, subject to confirmation by the senate.

(1) Thirty percent of the members shall be representatives of large and small business, industry, and agriculture. These members shall have or have had substantial management or policy responsibilities for a business or autonomous part of a business. One of these members shall also have a record of employing a significant number of disabled persons.

(2) Thirty percent of the members shall be representatives of state and local government and shall include: One member of the senate; one member of the house of representatives; the superintendent of public instruction; the commissioner of the employment security department; the director of the department of labor and industries; and the executive director of the state board for community college education, or their designees; an elected county officer; and a member of a city council.

(3) Thirty percent of the members shall be representatives of organized labor and representatives of community based nonprofit organizations providing employment and training services or advocacy for program participants.

(4) Ten percent of the members shall be appointed from the general public, one of whom shall be from a state-wide organization formed to address literacy problems in Washington.

Members shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060, except legislative members shall be reimbursed under RCW 44.04.120.

NEW SECTION. Sec. 6. DIRECT SERVICES PROHIBITED. In order to assure objective management and oversight, the state council shall not operate programs or provide services directly to eligible participants, but shall exist solely to plan, establish criteria, coordinate, evaluate, and monitor the provision of such programs and services.

NEW SECTION. Sec. 7. CONFLICTS. If any part of this act is found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION. Sec. 8. DUTIES OF STATE COUNCIL‑-THE WASHINGTON EMPLOYMENT FUTURES PLAN. The state council shall carry out:

(1) The planning requirements of the federal job training partnership act and this chapter. The plan shall be submitted to the governor and, within thirty days of submission to the United States secretary of labor, to the legislature.

(2) The Washington employment futures plan, which shall include the following:

(a) Recommendations for coordinating activities under this chapter with programs and services provided by state and local education and training agencies including vocational education agencies, public assistance agencies, the employment service, rehabilitation agencies, programs for the homeless, postsecondary institutions, economic development agencies, and such other agencies as the council or the governor determines to have a direct interest in employment and training and human resource utilization within the state;

(b) Recommendations for the use of provisions allowable under the federal job training partnership act and other programs to facilitate employee ownership;

(c) Recommendations to the governor for local service delivery areas and standards, criteria, and reporting requirements with respect to local service delivery area plans and substate plans;

(d) Recommendations for the allocation of federal funds received by the state pursuant to section 202(b) and Title III of the federal job training partnership act;

(e) The annual labor market and occupational supply and demand information plan developed pursuant to this chapter;

(f) The state plan on dislocated worker effort developed pursuant to this chapter;

(g) The state literacy plan developed pursuant to this chapter;

(h) The plan for the Washington futures training fund when appropriated pursuant to this chapter and sections 25, 27, and 28 of this act; and

(i) Recommendations to the governor, the state legislature, and relevant state agency directors whose plans are subject to review under of this chapter for changes in administration of programs as it deems necessary.

(3) The state council shall meet:

(a) At least once annually with the state council on vocational education established pursuant to the Carl D. Perkins vocational education act and comment on any reports of the state council on vocational education, and shall meet consecutively on the same day in the same place whenever possible; and

(b) At such other times and in such places as it deems necessary.

(4) The state council shall employ personnel necessary to carry out its responsibilities from funds available to the state council under various federal job training programs and shall share and use shared personnel with other agencies to the greatest degree practical. All personnel of the council shall be under the supervision of the person to whom this responsibility has been delegated by the state council.

(5) The state council shall establish procedures to assure that the rights and privileges of applicants for or recipients of services provided under this chapter are not abridged. The state council's monitoring and evaluation activities shall determine whether participants are being treated with fairness, equity, and courtesy.

NEW SECTION. Sec. 9. GOVERNOR TO TRANSFER RELATED FUNCTIONS. The plans and decisions of the state council shall be subject to approval by the governor. The governor may, to the extent permitted by applicable law, transfer to the state coordinating council those functions related to the duties enumerated in this section from (1) any other state coordinating committee such as the work incentive program or successor program under Title IV of the social security act, 42 U.S.C. Sec. 601 et seq., (2) state board for vocational education activities established under the Carl D. Perkins vocational education act, P.L. 88-210, as amended by P.L. 98-524, and (3) advisory council activities established under the Wagner-Peyser act, 29 U.S.C. Sec. 49 et seq.

NEW SECTION. Sec. 10. LITERACY SUBCOMMITTEE‑-ADULT LITERACY SERVICES PLAN. (1) (a) The state council shall appoint a literacy subcommittee to prepare a plan to improve adult literacy services in the state.

(b) The subcommittee shall include members of the state council and:

(i) The secretary of the department of social and health services;

(ii) The state librarian;

(iii) The director of the department of community development;

(iv) The secretary of corrections; and

(v) Two representatives of adult literacy programs or organizations that use volunteers.

State officials may designate representatives to serve on the committee in their place. The subcommittee shall select its own chair.

(2) The governor, agencies, and the legislature shall provide the council additional staff and facilities as may be reasonably required to assist the subcommittee in carrying out its responsibilities.

(3) The subcommittee shall develop an adult literacy improvement plan for the state with the objective of achieving a ninety-five percent literacy rate by 2010. In developing the literacy plan the subcommittee shall:

(a) Identify the extent of the illiteracy problem throughout the state, including:

(i) The availability of literacy training resources;

(ii) The estimated number of adult residents who have completed fewer than four, eight, and twelve years of school; and

(iii) The estimated number of adult residents who are functioning below the fourth, eighth, and tenth grade educational levels as measured by tests approved by the superintendent of public instruction, consistent with RCW 28A.03.360;

(b) Establish evaluation procedures and criteria, including standards to measure the progress of participants in literacy training programs during and after completion of the programs, and evaluate the effectiveness and cost-efficiency of public and private adult literacy training programs in the state;

(d) Evaluate the criteria of the superintendent of public instruction and the state board for community college education for awarding their even start and literacy tutor coordination grants and evaluate the results of programs funded under the grants.

The subcommittee shall update the plan biennially.

(4) The state council's literacy subcommittee shall review adult literacy services coordination programs which:

(a) Publicize and promote adult literacy programs;

(b) Provide formal mechanisms, such as forums, seminars, and workshops, to facilitate communication among literacy service providers and upgrade service provider management and instructional skills;

(c) Facilitate the development of local literacy coalitions and assist the coalitions in coordinating, expanding, and improving local literacy services;

(d) Provide a clearinghouse for information about literacy services in the state and for referral of students and volunteers to appropriate programs; and

(e) Promote and facilitate the contribution of financial and other support from the business community to adult literacy efforts.

(5) The literacy subcommittee shall review the use of existing state and federal funds by state agencies and community-based organizations to carry out adult literacy efforts.

NEW SECTION. Sec. 11. ANALYSES‑-RECOMMENDATIONS. Beginning June 1, 1989, the state coordinating council shall, in conjunction with the northwest policy center at the University of Washington, legislative staff, and the office of financial management, prepare:

(1) An analysis of existing workforce training programs in the state. This shall include the costs of each program, number of trainees served, types of training, placement rates, salary ranges of trainees once placed, and other relevant data. The analysis shall rank the programs in terms of effectiveness and cost;

(2) An analysis of the demand for and the supply of training services in the state. This shall include employer and employee demands for training, the supply of private and public training programs in the state, and possible causes of needed training being unavailable;

(3) An assessment of the workforce skill level deficiencies of various subsets of the state population, such as dislocated workers, displaced homemakers, exhaustees of unemployment benefits, incarcerated adults, high school drop-outs, high school graduates, college graduates, and welfare recipients;

(4) An analysis of the need for new workforce training programs. This shall include a review of training programs not currently available in this state and an examination of their cost-effectiveness relative to existing state programs;

(5) An analysis of the need for public funding of workforce training programs. This shall include an examination of alternative funding mechanisms and their possible tax incidence;

(6) An analysis of availability of adequate information on labor supply and demand and whether such information should be enhanced.

The state council shall submit recommendations to the legislature regarding use of the Washington employment futures fund no later than December 1, 1990, based on the results of its analyses in subsections (1) through (6) of this section. The council may form a special task force composed of some of its members plus others with needed expertise to formulate the recommendations.

NEW SECTION. Sec. 12. STATE AGENCIES TO SUBMIT PLANS. All state agencies which provide employment training and related services, including the department of social and health services, the department of labor and industries, the employment security department, the office of the superintendent of public instruction, the department of community development, the department of corrections, the military department, the higher education coordinating board, and the state board for community college education, shall submit their yearly plans on training and employment activities to the state council for review prior to agency adoption. The state council may provide comments and recommendations to each agency on its plans.

NEW SECTION. Sec. 13. ESTABLISHMENT OF SERVICE DELIVERY AREAS‑-SERVICE DELIVERY AREAS AS SUBSTATE AREAS‑-ADHERENCE TO PLAN REQUIRED CRITERIA. (1) The governor shall, after receiving the recommendations of the state council on service delivery areas, make a designation of or redesignation of service delivery areas consistent with the requirements of the federal job training partnership act. To the extent permitted by federal law, designation of service delivery areas shall reflect the intent of the legislature to integrate and coordinate employment and training services, public assistance programs, and other educational and public assistance programs, and other educational and training efforts as may exist which are designed to assist individuals in preparing for participation in the labor force. Counties, cities, and all other persons or organizations shall be given the opportunity to comment on and request revision of the proposed designation of service delivery areas.

(2) Service delivery areas shall serve as the substate areas for purposes of Title III of the job training partnership act unless the state council, after due deliberation, makes written recommendations to the governor that two or more contiguous service delivery areas which have requested designation as a substate area and have a combined population of two hundred thousand or more should serve as a substate area.

(3) The governor for purposes of Title III of the job training partnership act, P.L. 97-300, shall designate a substate grantee in accordance with an agreement among the governor, the local elected official or officials of a substate area, and the private industry council or councils of such area. Whenever a substate area is represented by more than one such official or council, the respective officials and councils shall each designate representatives, in accordance with procedures established by the governor after consultation with the state job training coordinating council, to negotiate such agreement. In the event agreement cannot be reached on the selection of a substate grantee, the governor shall select the substate grantee.

(4) To receive any federal and state funds appropriated for the purposes and requirements of this chapter, a service delivery area shall operate under and adhere to a plan approved in accordance with this chapter.

NEW SECTION. Sec. 14. ESTABLISHMENT OF PRIVATE INDUSTRY COUNCILS‑-RESPONSIBILITIES. (1) There shall be a private industry council established in each service delivery area, appointed by the chief elected officials of the local governmental unit or units involved and of such size as the unit or units deem appropriate for the purposes of this chapter. The council shall include representatives of business, education, community-based organizations, and organized labor.

Members shall be appointed for fixed and staggered terms of a duration reflected in the bylaws of the private industry council and the private industry council shall select annually from among its membership a chairman, vice-chairman, and any other officers the council deems necessary. Members of the private industry council shall be reimbursed only for their necessary and actual expenses incurred in the performance of their official duties.

The private industry council, in order to carry out its functions, shall, in accordance with its plan, prepare and approve a budget and may hire staff, incorporate, and solicit and accept contributions and grant funds from other sources.

(2) The governor shall certify a private industry council if the governor determines that its composition and appointments are consistent with federal requirements and provisions of this chapter. Such certification shall be made or denied within thirty days after the date on which a list of members and necessary supporting documentation are submitted to the governor. Current private industry councils appointed under the job training partnership act, P.L. 97-300, are deemed certified for the purposes of this chapter. When the governor certifies the council, it shall be convened within thirty days by the official or officials who made the appointments to such council.

(3) It shall be the duty of the private industry council to: Design and plan the program of job preparation and training services for the service delivery area; in conjunction with the labor market and economic analysis branch of the employment security department, survey local employment needs and local economic conditions; monitor the performance of the job preparation and training services system to assure its compliance with the service delivery area plan; and prepare and distribute to interested parties a quarterly program assessment for review and comment. In addition, the private industry council shall review and comment on the vocational education programs available in the service delivery area; pursuant to the federal Wagner-Peyser act, as amended, develop jointly with local offices of the department operating within the service delivery area the employment services and training plans; and submit information to the child care coordinating committee created under chapter 74.13 RCW which shall describe any unmet child care needs of participants eligible for services under this chapter.

NEW SECTION. Sec. 15. SERVICE DELIVERY AREA SYSTEMS‑-ELEMENTS OF SERVICES. There shall be established in each service delivery area, subject to the direction of the chief elected officials and the private industry councils acting in accordance with the provisions of this chapter and the federal job training partnership act, a system for providing job preparation, training, and placement services to persons eligible under the provisions of this chapter. Elements of services to be provided by the system shall include, but are not limited to:

(1) Receiving applications for services and screening the applicants in accordance with priorities and services provided pursuant to a job preparation and training services plan;

(2) Assessment of an eligible participant's training needs and employment potential, including potential for success as an independent business person;

(3) Immediate job search assistance which provides applicants and recipients of public assistance with self-help job search skills and other job finding services which promote quick entry into unsubsidized jobs;

(4) Job training services and entrepreneurial training for those participants who without such training would be unable to obtain unsubsidized employment within a reasonable period of time;

(5) Basic and remedial education for those participants whose deficiency is a barrier to necessary job skills training;

(6) Job placement services for participants completing training programs; and

(7) Specialized employment placement assistance, where appropriate, for individuals whose access to services is limited due to physical disabilities but who are otherwise eligible for services.

Economically disadvantaged women and minorities shall be served with federal job training partnership act funds, with respect to Title I and Title II of the act, at a rate that approximates their rate of representation and need for job training among the economically disadvantaged within each service delivery area.

NEW SECTION. Sec. 16. SERVICE DELIVERY AREA PLAN‑-PUBLIC REVIEW AND COMMENT‑-APPROVAL OF PLAN. A service delivery area plan shall be prepared in accordance with an agreement or agreements between the local private industry council and the chief elected official or officials in the service delivery area. The plan shall conform to and be prepared in accordance with the criteria, rules, and procedures established pursuant to this chapter and the federal job training partnership act.

The opportunity shall be provided for public review and comment on the service delivery area plan prior to final approval. Each service delivery area's plan shall require the approval of the local private industry council, prior to submission to the state coordinating council for certification and to the governor for approval.

NEW SECTION. Sec. 17. SELECTION OF ADMINISTRATIVE ENTITY‑-NO NEEDLESS DUPLICATION OF SERVICES‑-CONSORTIUM AUTHORIZED. (1) The private industry council and appropriate local elected officials in each service delivery area shall determine the entity to administer the service delivery area plan and the organization and structure necessary to administer the system of services provided pursuant to federal requirements and this chapter.

(2) The administrative structure shall provide access to employment and training services for those receiving benefits under the aid to families with dependent children program, the family independence program, and other public assistance programs. It shall also integrate employment and training resources available within the service delivery area into a comprehensive employment services system.

(3) The entity administering the service delivery area plan in each service delivery area may contract for the provision of services to persons eligible under this chapter. In selecting services or facilities for training, existing services and community facilities shall be utilized to the fullest extent possible.

(4) Governmental units are hereby authorized to establish through a joint powers agreement a consortium empowered to fulfill the requirements of this chapter. The consortium shall conform to the provisions of this chapter. The state council and the employment security department shall give full cooperation and assistance in assuring the effective, efficient formulation and operation of the consortium.

NEW SECTION. Sec. 18. ELIGIBILITY‑-PRIORITIES. In the event that available funding is not sufficient to provide the full range of services authorized under this chapter to persons eligible for such services, the state council shall establish criteria to be used in service delivery areas in determining both of the following:

(1) The priority order among eligible persons for access to services; and

(2) The priority order among the types of services to be provided.

The criteria shall provide sufficient flexibility in order that local service delivery area plans can respond to the needs of eligible groups for programs developed in response to local conditions.

NEW SECTION. Sec. 19. EMPLOYMENT SECURITY‑-COORDINATION OF PLANS‑-PLAN FOR INFORMATION SYSTEM. The employment security department shall assure that the services and resources provided by its various networks, systems, and functions are fully supportive of the service delivery areas.

(1) The department shall assure that its local offices develop operational plans which are coordinated with and support the development and operation of service delivery area plans prepared pursuant to this chapter.

(2) The employment security department shall develop and annually update a plan for the use of available resources to design and implement a state-wide comprehensive labor market and occupational supply and demand information system as specified in section 125 of the federal job training partnership act. The plan shall be submitted to the state council no later than May 1 of each year.

(3) The department shall seek and obtain funds or in-kind contributions to the maximum extent possible from the national occupational information coordinating committee and other federal, state, local, and private sources and may accept and use any such funds or in-kind contributions for the purposes of subsection (2) of this section.

NEW SECTION. Sec. 20. DISLOCATED WORKER ASSISTANCE PROGRAM. The employment security department shall establish a dislocated workers assistance program consistent with the requirements of Title III of the federal job training partnership act, P.L. 97-300, as amended. The program will have the capability to respond rapidly, on site, to permanent closures and substantial layoffs throughout the state to assess the need for, and initially to provide for, appropriate basic readjustment services.

The program shall:

(1) Make appropriate retraining and basic readjustment services available to eligible dislocated workers through the use of rapid response teams, substate grantees, and other appropriate organizations;

(2) Work with employers and labor organizations in promoting labor-management cooperation to achieve the goals of this chapter and the federal job training partnership act;

(3) Operate a monitoring, reporting, and management system which provides an adequate information base for effective program management, review, and evaluation;

(4) Exchange information and coordinate programs with other state agencies;

(5) Disseminate throughout the state information on the availability of all state services and activities under this program; and

(6) Integrate the delivery of services under the program with services or payments provided pursuant to Title II of the federal trade act of 1974.

NEW SECTION. Sec. 21. DISLOCATED WORKER PLAN. The dislocated workers assistance program shall be responsible for the development of a biennial state plan describing in detail the dislocated worker efforts that will be assisted with funds under this chapter and Title III of the job training partnership act. The dislocated worker plan shall be prepared in consultation with and subject to the approval of the state council. The dislocated worker plan shall be developed in conjunction with the state's coordination and special services plan prepared by the state council. The dislocated worker plan shall include:

(1) Provisions sufficient to demonstrate that the department and the private industry councils will comply with the requirements of this chapter and Title III of the job training partnership act;

(2) Incentives to provide training of greater duration for those who require it; and

(3) Assurances that services will be provided only to eligible dislocated workers or displaced homemakers as provided in Title III of the job training partnership act.

NEW SECTION. Sec. 22. SUBSTATE PLAN. The substate grantee designated in accordance with section 13(3) of this act shall be responsible for the preparation of a substate plan describing the manner in which the dislocated worker activities of the substate grantee will be conducted within the substate area. The substate grantee shall submit the substate plan to the governor for approval or modification. Prior to the submission to the governor, the plan shall be submitted to the state council for certification that the plan is consistent with criteria established by the state council and to the other parties to the agreement described in section 13(3) of this act for their review and comment.

The substate plan shall contain a statement of:

(1) The mechanism the substate grantee will use for coordinating dislocated worker programs with the unemployment compensation system in the substate area;

(2) A description of the methods by which the substate grantee will respond expeditiously to worker dislocation where the rapid response assistance required of the department's dislocated workers assistance program is inappropriate, including worker dislocation in sparsely populated areas; and

(3) The means whereby coordination with other appropriate programs, services, and systems will be affected, particularly where such coordination is intended to provide access to the services of such other systems for program participants at no cost to the worker readjustment program.

NEW SECTION. Sec. 23. USE OF FUNDS FOR RETRAINING SERVICES. Not less than sixty percent of the funds provided for dislocated workers from the employment futures fund or under Title III of the job training partnership act to a substate grantee shall be expended for training and retraining services. This requirement is subject to the waiver provision of the federal job training partnership act, P.L. 97-300. Training shall be in job skills for which demand exceeds supply.

NEW SECTION. Sec. 24. FUNDING FOR SERVICES. The funding for services authorized under this chapter is to be administered through:

(1) Federal job training partnership act funds;

(2) The employment futures fund; and

(3) Appropriate state and federal categorical funds for demonstration and special assistance programs.

NEW SECTION. Sec. 25. EMPLOYMENT FUTURES FUND ESTABLISHED. A new section is added to chapter 50.16 RCW to read as follows:

The employment futures fund is established to be administered by the commissioner as a separate and identifiable fund subject to appropriation. The employment futures fund shall consist of contributions paid under section 27 of this act, public and private grants for the purposes of chapter 50.-- RCW (sections 1, 2, 4 through 24, and 26 of this act), and other funds provided for the employment futures program. Money in the employment futures fund may be expended only for the purposes allowed by chapter 50.__ RCW (sections 1, 2, 4 through 24, and 26 of this act) and money from contributions paid under section 27 of this act must be appropriated. No funds from the employment futures fund shall be expended until the legislature has received the recommendations called for in section 11 of this act, and approved the expenditure of such funds. Funds not approved for expenditure by July 1, 1991, or annually thereafter, shall revert to the unemployment insurance trust fund.

NEW SECTION. Sec. 26. FEDERAL FUND USE TO BE CONSISTENT WITH FEDERAL LAW‑-WAIVERS. That portion of the employment futures fund consisting of funds granted to the state by the federal government shall be identified and used in ways consistent with the purposes of this chapter and the provisions of federal law. To the extent federal law and regulations impede the efficient and appropriate uses of the employment futures fund as approved by the legislature, the commissioner of the employment security department shall seek to obtain waivers from such law and regulations which would allow the fullest flexible use of federal funds for the purposes of this chapter.

NEW SECTION. Sec. 27. CONTRIBUTIONS TO THE EMPLOYMENT FUTURES FUND. A new section is added to chapter 50.24 RCW to read as follows:

(1) Beginning January 1, 1989, contributions to the employment futures fund established in section 25 of this act shall accrue and become payable by each employer, except employers as described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and those employers who are required to make payments in lieu of contributions, at the rate of six one-hundredths of one percent. Contributions shall accumulate until appropriated by the legislature or until the funds revert to the unemployment insurance trust fund.

(2) The amount of wages subject to tax shall be determined under RCW 50.24.010.

(3) Contributions under this section shall become due and be paid by each employer pursuant to rules prescribed by the commissioner of the employment security department and shall not be deducted, in whole or in part, from the remuneration of individuals in the employ of the employer. Any deduction in violation of this section is unlawful.

(4) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent.

NEW SECTION. Sec. 28. CONTRIBUTION RATES FOR EMPLOYERS. A new section is added to chapter 50.29 RCW to read as follows:

Tax rates for rate classes 1 through 19, described in RCW 50.29.025, shall be reduced by six one-hundredths of one percent for rate years 1989 through 1993.

NEW SECTION. Sec. 29. SEVERABILITY. 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.

NEW SECTION. Sec. 30. LEGISLATIVE DIRECTIVE. Sections 1, 2, 4 through 24, and 26 of this act shall constitute a new chapter in Title 50 RCW.

NEW SECTION. Sec. 31. SECTION CAPTIONS. Section captions used in this act constitute no part of the law.

NEW SECTION. Sec. 32. EMERGENCY. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.