AN ACT Relating to the 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 new sections to chapter 50.29 RCW; adding new sections to chapter 43.131 RCW; creating a new section; making an appropriation; and declaring an emergency.

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

NEW SECTION. Sec. 1. 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 and flexible workforce. Employment is expected to increase over twenty-two percent in Washington state between 1987 and the year 2000. Over this time, almost four hundred fifty-two thousand new jobs will be created. Because of the increased technical nature of the new jobs, there will be a need for people with more than a high school education. The majority of new entrants to the work force will be hard pressed to meet the requirements of employers, and many workers currently employed will also encounter problems adapting to the needs of the future labor market. A large share of the workers will need improved technical skills. Action is needed to retrain workers to keep up with emerging technology and to provide the necessary skills to workers reentering the workforce. To assist workers in need of skills and employers in need of skilled workers, an increase in training opportunities in the state is necessary.

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 drastically declined while the civilian labor force population to be served has continued to grow. Better labor market information, improved vocational counseling, and an enhanced public labor exchange are necessary to assure that training needs are met and that employers find the right workers.

NEW SECTION. Sec. 2. 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 provide assistance to the workforce of Washington state to ensure that the state workforce can produce and compete in the global economic arena.

(4) "Fund" means the employment futures fund established in section 10 of this act for the deposit and expenditure of funds acquired for the implementation of the Washington employment futures program.

(5) "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.

(6) "Employment and training system" includes agencies and institutions of elementary and secondary education, community colleges, higher education, adult education, employment training and retraining, vocational education, the public employment service and unemployment insurance system, and private and public nonprofit organizations that are representative of communities or significant segments of communities and provide job training services. Within the employment and training system are programs authorized under the federal job training partnership act (P.L. 97-300), which charges the state administering agency and private industry councils with the responsibility of coordinating the employment and training system in the state.

(7) "Public labor exchange" means a public service, available to all employers and jobseekers legally entitled to work in the United States, that functions as a public clearinghouse for employment and employment-related activities provided by the department's local job service centers. Specific services provided by the public labor exchange include:

(a) Assisting jobseekers in finding employment;

(b) Assisting employers in filling jobs;

(d) Providing labor market information; and

(e) Assisting jobseekers in making vocational choices, determining training needs, and identifying potential training opportunities and financial assistance.

(8) "Program participant" means an individual receiving services and training assistance under the provisions of this chapter, with special emphasis on workers who are recent entrants or reentrants to the labor force or seeking improved job skills for continued employment.

NEW SECTION. Sec. 3. (1) The Washington employment futures program is created within the department to provide the state workforce with necessary skills and the employers of the state with skilled workers to compete in the world market.

(2) The program shall include:

(a) Linkages between the public labor exchange and the employment and training system.

(b) The provision of vocational counseling, training, and related services.

(d) Evaluation of the effectiveness of the program.

NEW SECTION. Sec. 4. (1) The department shall develop and implement performance standards for accountability of all funds spent under this chapter.

(2) The department shall serve as the administrative, oversight, and coordinating agency in the program and shall involve other entities in providing training opportunities as appropriate.

(3) The department shall be accountable for the identification and selection of program participants.

(4) The department and other coordinating entities shall work to obtain additional funding from the United States department of labor and other funding organizations involved in employment and training programs.

NEW SECTION. Sec. 5. The commissioner shall appoint an advisory board with representatives from business, labor, the legislature, and education. The advisory board shall provide oversight and advise the commissioner on plans for the use of funds provided under this chapter, including who should be served, the distribution of funds to service delivery areas, and evaluation of program performance. Advisory board members shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 6. A major function of the program shall be to enhance linkages between the public labor exchange and the employment and training system. This linkage shall have as its primary objective the delivery of services to program participants.

Public labor exchange services may include outreach, initial assessment, testing, vocational counseling, and referral to the employment and training system or employment opportunities when appropriate. In serving program participants, the department shall recruit applicants and prepare them for training activities or employment in the local labor market through a series of workshops and vocational counseling services. Referral shall also be made to agencies in the employment and training system for the provision of basic training and retraining services.

Public labor exchange linkages shall provide a foundation for all services delivered through the program.

NEW SECTION. Sec. 7. The department is responsible for providing vocational counseling, training, and related services in accordance with local area plans and local labor market needs. The delivery of services shall be accomplished through the existing employment and training system. Services delivered through the program shall include:

(1) Vocational training to provide workers with skills required in the labor market;

(2) Upgrading skills in areas, including data processing and communication skills, that are necessary to keep pace with technology and the global economy;

(3) Workplace literacy training, including English as a second language, and training to improve math, reading, and computational skills for workers who need advanced skills because of technological changes in the marketplace; and

(4) Other training that assists workers and employers in supporting economic development in the state.

NEW SECTION. Sec. 8. The program may provide additional labor market information to assist workers and employers and the employment and training system in support of training and retraining programs.

NEW SECTION. Sec. 9. Evaluation is an integral part of the Washington employment futures program and shall give useful, policy-relevant information about the effectiveness of program strategies and training provided in the program.

(1) Evaluation in the program shall have two major components:

(a) An analysis of program implementation and operation with a focus on the linkages among the organizations providing services; and

(b) An analysis to show the impact of the different services on program participants and short and long-term benefits to employers.

(2) The department shall develop and test an integrated state-wide education, training, and employment tracking system by following the post-program employment history of program participants. The system shall:

(a) Identify where a former program participant is employed; and

(b) Determine whether the former program participant's employment is related to prior education or training.

(3) All public education, training, and employment programs participating in the program shall provide enrollment and completion data on program participants by social security number to facilitate the matching necessary for identification, tracking, and accountability.

(4) Interim evaluation reports shall be prepared by January 1, 1991, and January 1, 1992. A detailed evaluation report shall be prepared by January 1, 1993.

NEW SECTION. Sec. 10. A new section is added tochapter 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. The employment futures fund shall consist of contributions paid under section 11 of this act, public and private grants for the purposes of chapter 50.-- RCW (sections 1 through 9 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 of chapter 50.--- RCW (sections 1 through 9 of this act) and money from contributions paid under section 11 of this act must be appropriated.

NEW SECTION. Sec. 11. 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 10 of this act shall accrue and become payable by each employer, except employers as described in RCW 50.04.010 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.

(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 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. 12. A new section is added to chapter 50.29 RCW to read as follows:

RCW 50.29.025 shall apply to employer contributions before January 1, 1989, and after December 31, 1993.

NEW SECTION. Sec. 13. A new section is added to chapter 50.29 RCW to read as follows:

The contribution rate for each employer shall be determined under this section.

(1) A fund balance ratio shall be determined by dividing the balance in the unemployment compensation fund as of the June 30th immediately preceding the rate year by the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate year and reported to the department by the following March 31st. The division shall be carried to the fourth decimal place with the remaining fraction, if any, disregarded. The fund balance ratio shall be expressed as a percentage.

(2) The interval of the fund balance ratio, expressed as a percentage, shall determine which tax schedule in subsection (5) of this section shall be in effect for assigning tax rates for the rate year. The intervals for determining the effective tax schedule shall be:

!tm2,1,1 !tcInterval!sc ,1of!sc ,1the

!tcFund!sc ,1Balance!sc ,1Ratio!tj1!tcEffective

!tcExpres!ttsed!sc ,1as!sc ,1a!sc ,1Percentage!tj1!tcTax!sc ,1Sc!tthedule

!tl3.40 and!sc ,1above!tcA

!tl2.90 to 3.39!tcB

!tl2.40 to 2.89!tcC

!tl1.90 to 2.39!tcD

!tl1.40 to 1.89!tcE

!tlLess!sc ,1than!sc ,0011.40!tcF

(3) An array shall be prepared, listing all qualified employers in ascending order of their benefit ratios. The array shall show for each qualified employer: (a) Identification number; (b) benefit ratio; (c) taxable payrolls for the four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date; (d) a cumulative total of taxable payrolls consisting of the employer's taxable payroll plus the taxable payrolls of all other employers preceding him or her in the array; and (e) the percentage equivalent of the cumulative total of taxable payrolls.

(4) Each employer in the array shall be assigned to one of twenty rate classes according to the percentage intervals of cumulative taxable payrolls set forth in subsection (5) of this section: PROVIDED, That if an employer's taxable payroll falls within two or more rate classes, the employer and any other employer with the same benefit ratio shall be assigned to the lowest rate class which includes any portion of the employer's taxable payroll.

(5) The contribution rate for each employer in the array shall be the rate specified in the following table for the rate class to which he or she has been assigned, as determined under subsection (4) of this section, within the tax schedule which is to be in effect during the rate year:

!tp1,4 !tcPercent!sc ,1of!tj1!trSchedule!sc ,1of!sc ,1Contribution!sc ,1Rates!sc ,1for

!tcCumulative!tj1!trEffective!sc ,1Tax!sc ,1Schedule!sc ,6

!tcTaxable!sc ,1Pa!ttyrolls!trBeginning!sc ,1January!sc ,0011,!sc ,0011989!sc ,5

!tm1,2,1,1,1,1,1,1,1 !tj2!tcRate

From!tj1!tcTo!tcClass!tlA!tcB!tcC !tcD!tcE!tcF

!sc ,0010.00!tj1!tc5. 00!tc1!tc0.42!tc0.52!tc0.92!tc1.42!tc1.82!tc2.42

!sc ,0015.01!tj1!tc10.00!tc2!tc0.42!tc0.72!tc1.12!tc1.62!tc2.02!tc2.62

10.01!tj1!tc15.00!tc3!tc0.52!tc0.92!tc1.32!tc1.72!tc2.22!tc2.82

15.01!tj1!tc20.00!tc 4!tc0.72!tc1.12!tc1.52!tc1.92!tc2.42!tc3.02

20.01!tj1!tc25.00!tc5!tc0.92!tc1.32!tc1.72!tc2.12!tc2.62!tc3.12

25.01!tj1!tc30.00!tc6!tc1.12!tc1.52!tc1.92!tc2.32!tc2.72!tc3.22

30.01!tj1!tc35.00!tc7!tc1.32!tc1.72!tc2.12!tc2.52!tc2.92!tc3.32

35.01!tj1!tc40.00!tc8!tc1.52!tc1.92!tc2.32!tc2.72!tc3.12!tc3.52

40.01!tj1!tc45.00!tc9!tc1.72!tc2.12!tc2.52!tc2.92!tc3.32!tc3.72

45.01!tj1!tc50.00!tc10!tc1.92!tc2.32!tc2.72!tc3.12!tc3.52!tc3.92

50.01!tj1!tc55.00!tc11!tc2.22!tc2.52!tc2.92!tc3.32!tc3.72!tc4.02

55.01!tj1!tc60.00!tc12!tc2.42!tc2.72!tc3.12!tc3.52!tc3.92!tc4.22

60.01!tj1!tc65.00!tc13!tc2.62!tc2.92!tc3.32!tc3.72!tc4.12!tc4.42

65.01!tj1!tc70.00!tc14!tc2.82!tc3.12!tc3.52!tc3.92!tc4.32!tc4.62

70.01!tj1!tc75.00!tc15!tc3.02!tc3.32!tc3.72!tc4.12!tc4.52!tc4.72

75.01!tj1!tc80.00!tc16!tc3.22!tc3.52!tc3.92!tc4.32!tc4.62!tc4.82

80.01!tj1!tc85.00!tc17!tc3.42!tc3.72!tc4.12!tc4.52!tc4.82!tc4.92

85.01!tj1!tc90.00!tc18!tc3.82!tc4.12!tc4.52!tc4.82!tc4.92!tc5.12

90.01!tj1!tc95.00!tc19!tc4.22!tc4.52!tc4.92!tc5.02!tc5.12!tc5.32

95.01!tj1!tc100.00!tc20!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40!tc5.40

(6) The contribution rate for each employer not qualified to be in the array shall be as follows:

(a) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when due shall be assigned the contribution rate of five and four-tenths percent; and

(b) For all other employers not qualified to be in the array, the contribution rate shall be a rate equal to the average industry rate as determined by the commissioner; however, the rate may not be less than one percent. Assignment of employers by the commissioner to industrial classification, for purposes of this subsection, shall be in accordance with established classification practices found in the "Standard Industrial Classification Manual" issued by the federal office of management and budget to the third digit provided in the Standard Industrial Classification code.

Sec. 14. Section 1, chapter 181, Laws of 1984 and RCW 50.04.075 are each amended to read as follows:

"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. 15. 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. 16. 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. 17. Sections 1 through 9 of this act shall constitute a new chapter in Title 50 RCW.

NEW SECTION. Sec. 18. The sum of twenty-one million one hundred thousand dollars, or as much thereof as may be necessary, is appropriated from the employment futures fund to the employment security department for the biennium ending June 30, 1991, to carry out the purposes of this act.

NEW SECTION. Sec. 19. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.

NEW SECTION. Sec. 20. A new section is added to chapter 43.131 RCW to read as follows:

The Washington employment futures program shall be terminated on December 31, 1993, as provided in section 21 of this act.

NEW SECTION. Sec. 21. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1994:

(1) Section 1, chapter ---, Laws of 1989 and RCW 50.--.--- (section 1 of this act);

(2) Section 2, chapter ---, Laws of 1989 and RCW 50.--.--- (section 2 of this act);

(3) Section 3, chapter ---, Laws of 1989 and RCW 50.--.--- (section 3 of this act);

(4) Section 4, chapter ---, Laws of 1989 and RCW 50.--.--- (section 4 of this act);

(5) Section 5, chapter ---, Laws of 1989 and RCW 50.--.--- (section 5 of this act);

(6) Section 6, chapter ---, Laws of 1989 and RCW 50.--.--- (section 6 of this act);

(7) Section 7, chapter ---, Laws of 1989 and RCW 50.--.--- (section 7 of this act);

(8) Section 8, chapter ---, Laws of 1989 and RCW 50.--.--- (section 8 of this act);

(9) Section 9, chapter ---, Laws of 1989 and RCW 50.--.--- (section 9 of this act);

(10) Section 10, chapter ---, Laws of 1989 and RCW 50.16.--- (section 10 of this act);

(11) Section 11, chapter ---, Laws of 1989 and RCW 50.24.--- (section 11 of this act);

(12) Section 12, chapter ---, Laws of 1989 and RCW 50.29.--- (section 12 of this act); and

(13) Section 13, chapter ---, Laws of 1989 and RCW 50.29.--- (section 13 of this act).