AN ACT Relating to employment and training planning; 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; and creating a new section.

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

NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS AND DECLARATIONS. The legislature finds that many state citizens, including heads of families receiving public assistance, out-of-school youths, and unemployment exhaustees, are unable to take their place in the mainstream of our economy because they lack the preparation and training necessary to obtain and retain productive private sector jobs. Government sponsored job preparation, training, and placement services form a unique juncture of public sector responsibilities with private sector interests. It is essential that government and the private sector enlist in a cooperative partnership to provide state citizens with appropriate job training. To be successful, such training must be designed and administered at the local level in close cooperation with local private sector employers, labor unions, vocational educators, recipient organizations, service organizations for the poor, and other officials and in accordance with the unique economic conditions and employment needs of each locality.

The legislature further recognizes that existing state and federal programs addressing the employment needs of the economically disadvantaged have proven to be multiple, uncoordinated responses to these needs. A successful program will require a comprehensive, unified set of services designed and administered at the local level and organized to address local conditions. It will also require that such a program be an integral part of the state's overall business and economic development and employability improvement strategies.

The legislature also finds and declares that Section 126 of the federal job training partnership act 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.

NEW SECTION. Sec. 2. LEGISLATIVE INTENT. It is the intent of the legislature to establish and implement 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). The legislature recognizes the need for an employment and training planning structure which will provide for comprehensive analysis of alternative expenditure possibilities for the fiscal resources available in this field. The basic principles of the system are:

(1) That the employment and training needs at the local, regional, and state levels be addressed;

(2) That access to public assistance benefits be integrated with access to employment and training services;

(3) That the expenditure of available funds meets the needs at the local level;

(4) That employment and training programs be integrated into a uniform employment and training services planning system within substate regions; and

(5) That a uniform planning system shall coordinate employment and training programs and eliminate duplication of programs among state and local agencies.

NEW SECTION. Sec. 3. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

"Department" means the employment security department.

"State council" means the Washington state job training coordinating council.

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 integration of employment and training programs at the state level, to further cooperation between government and the private sector in meeting Washington employers' needs for well-trained workers and Washington workers' needs for good jobs, to provide oversight of programs operated pursuant to this act, and to meet federal requirements of the job training partnership act.

NEW SECTION. Sec. 5. COMPOSITION OF COORDINATING COUNCIL‑-COMPENSATION OF MEMBERS. The state council shall consist of thirty-seven 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 of the state with regard to sex, race, ethnic background, and geographical distribution.

The governor shall appoint one nongovernmental member to be the chairperson of the council. The appointment of the chairperson, and the appointments of members designated under subsections (1) and (2) of this section, shall be subject to confirmation by the senate.

(1) Eleven members shall be representatives of large and small business, industry, and agriculture. Eight of these members shall be owners of business concerns, chief executives or chief operating officers of business concerns, or other private sector executives who have or have had substantial management or policy responsibilities for an autonomous part of a business. Of these, at least four shall be current or past members of a private industry council. Two shall be representatives from general purpose organizations representing business interests. One of the members shall also have a record of employing a significant number of disabled persons.

(2) Eleven members shall be representatives of state and local government. These representatives shall be: Two members of the senate, one nominated by the majority party and one nominated by the minority party of that body; two members of the house of representatives, one nominated by the majority party and one nominated by the minority party of that body; 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; two elected county officers nominated by the Washington association of counties; and one member of a city council nominated by the association of Washington cities.

(3) Eleven members shall be representatives of organized labor and representatives of community based nonprofit organizations providing employment and training services or advocacy for program participants. Seven of these members shall represent organized labor and a minimum of one each shall represent local vocational education organizations serving youth, organizations serving older Washingtonians, and organizations serving dislocated workers.

(4) Four members shall be appointed from the general public. One of these shall be from the population eligible for services, one shall represent persons with disabilities, one shall be from a private educational institution, and one shall be from a state-wide organization formed to address literacy problems in Washington.

In the event that the governor finds an insufficient number of acceptable nominees in a given category, the governor shall return the nomination lists to the respective nominating bodies within ten days of receipt. The bodies shall then have ten days to submit new lists of nominees. If nominations are not received within ten days, members shall be appointed at the discretion of the governor.

Members of the state council who are not members of the legislature may receive up to one hundred dollars for each day's actual attendance at meetings and other official business of the council not to exceed three hundred dollars per month. 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. DUTIES OF STATE COUNCIL--GOVERNOR TO TRANSFER RELATED FUNCTIONS. The state council shall:

(1) Prepare a coordination and special services plan for a two-year period consistent with the 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.

(a) In developing the coordination and special services plan, the state council shall identify, in coordination with the appropriate state agencies, the employment and training and vocational education needs of employers and of unemployed and underemployed persons throughout the state, assess the extent to which employment and training programs and services available in the state represent a complete, consistent, integrated, and coordinated approach to meeting these needs, and review plans of all state agencies which provide or impact employment training and related services.

(b) The coordination and special services plan shall include the following:

(i) A description of the proposed use of resources available in this state for employment and training programs and services for a two-year period, including oversight and support activities, priorities and criteria for incentive grants, and performance goals for state-supported programs;

(ii) An evaluation of the experience of employment and training programs and services over the preceding two years. The evaluation shall include the use of an integrated state-wide education, training, and employment tracking system following the postprogram employment history of training 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. The council shall ensure that all public education, training, and employment programs receiving funding under this act or under P.L. 97-300 provide enrollment and completion data on program participants by social security number to facilitate the matching necessary for identification, tracking, and accountability;

(iii) Recommendations on ways to improve the effectiveness of employment and training programs and services in this state and ensure that these programs and services represent a complete, consistent, integrated, and coordinated approach to meeting employment, training, and vocational education needs in this state;

(iv) Criteria 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;

(v) Specific coordination criteria which shall ensure that each local service delivery area plan provide job training and employment services, as defined in this act; and

(vi) Provisions allowable under the federal job training partnership act to facilitate employee ownership.

(2) Report to the legislature on or before February 1 of each year. The report shall include an analysis of the consistency of the governor's proposed budget with the coordination and special services plan.

(3) Recommend to the governor local service delivery areas. 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. The state council shall include in its recommendations a written explanation of the reasons for designating each service delivery area.

(4) Establish policies which the state council shall follow in performing all of the following functions:

(a) Approval of local service delivery area plans;

(b) Establishment of standards, criteria, and reporting requirements with respect to local service delivery area plans and substate plans; and

(5) Certify the consistency of service delivery area plans and substate plans with criteria established by the state council, prior to the approval of such plans by the governor.

(6) Review and approve each of the following:

(a) The allocation of federal funds received by the state pursuant to Section 202(b) and Title III of the federal job training partnership act. The state council shall be deemed to have approved the disbursement of funds when the governor approves a decision of the state council specifying a budget for an authorized program or activity and designating the department or agency responsible for the expenditure of the budgeted funds;

(b) The annual labor market and occupational supply and demand information plan developed pursuant to section 36 of this act; and

(7) Consider and advise the governor, the state legislature, and relevant state agency directors whose plans are subject to review under section 8 of this act and subsection (1)(a) of this section, on all matters connected with the administration of employment and training programs, and may upon its own initiative recommend changes in administration as it deems necessary.

(8) Review and comment to the governor and the legislature on the annual report prepared by the department in accordance with section 10 of this act.

(9) Recommend to the governor, following consultation with appropriate private industry councils and chief elected officials, agreements with public agencies, nonprofit private organizations, and private business concerns which will result in programs designed to assure the training and placement of (a) economically disadvantaged individuals aged fifty-five and over, and (b) economically disadvantaged persons with disabilities.

(10) Meet 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.

(11) Meet at such times and in such places as it deems necessary.

The plans and decisions of the state council shall be subject to approval by the governor. The governor shall, to the extent permitted by applicable law, transfer to the state coordinating council those functions related to the duties enumerated in this section from any state coordinating committee for the work incentive program or successor program under Title IV of the social security act (42 U.S.C.A. Sec. 601 et seq.) or any advisory council established under the Wagner-Peyser act (29 U.S.C.A. Sec. 49 et seq.).

NEW SECTION. Sec. 7. The state coordinating council shall, in conjunction with the northwest policy center at the University of Washington and legislative staff, develop a plan for increasing the level of state support for training programs. The plan shall include an analysis of existing and potential workforce training programs and funding mechanisms. The council's review of training options shall include, but need not be limited to:

(1) Adult literacy programs;

(2) The job skills program, RCW 28C.04.400 through 28C.04.480;

(3) Fee waivers at universities, community colleges, and vocational technical institutes;

(4) Apprenticeship programs;

(5) Commissioner approved training;

(6) Individual training accounts.

The state council shall submit its plan to the legislature by December 1, 1989. The plan shall include recommendations for the use of the employment futures fund established in section 48 of this act as well as identification of those training programs most cost-effective at meeting the state's workforce training needs and most suitable for implementation or expansion when considering the source of funds.

NEW SECTION. Sec. 8. 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 yearly plans on their training and employment activities to the state council for review prior to agency adoption. The state council shall provide comments and recommendations to each agency on its plans.

NEW SECTION. Sec. 9. 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. 10. REPORT TO LEGISLATURE ON COORDINATION EFFORTS. (1) The state job training coordinating council shall report to the house of representatives committees on commerce and labor and trade and economic development, and the senate committee on economic development and labor within one year of the effective date of this section concerning its coordination efforts with all state agencies and its recommendations to improve the coordination efforts by removing statutory or administrative barriers.

(2) The state coordinating council shall report to the legislature, not later than February 1 of each year, on the effectiveness of the program established under this chapter. The department's reports shall detail any economic and other advantages to the people of this state which have resulted from the program, including the effect upon state costs, the performance by recipients of public assistance in terms of the payment of wages, as opposed to cash grants, and the taxes paid by such persons.

NEW SECTION. Sec. 11. COUNCIL TO EMPLOY PERSONNEL. The state council shall employ personnel necessary to carry out its responsibilities including an executive director and a research and evaluation director. All personnel of the council shall be under the supervision of the chairperson or the executive director to whom this responsibility has been delegated.

NEW SECTION. Sec. 12. ESTABLISHMENT OF SERVICE DELIVERY AREAS--CRITERIA. 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. 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.

NEW SECTION. Sec. 13. 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 act 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 act. 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 employment potential and training needs.

(2) 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, with special emphasis on nontraditional jobs in the private sector for women.

(4) Basic and remedial education for those participants who have not received a secondary school diploma or a certificate from a program of equivalency for such a diploma;

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

(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. 14. SERVICE DELIVERY AREA 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 act and the federal job training partnership act.

NEW SECTION. Sec. 15. ADHERENCE TO PLAN REQUIRED. To receive any federal and state funds appropriated for the purposes and requirements of this act, a service delivery area shall operate under and adhere to a plan approved in accordance with this act.

NEW SECTION. Sec. 16. PLANS INTEGRATED WITH GOVERNOR'S BUDGET PROPOSAL. Service delivery area plans shall be developed and submitted to the state council as provided in section 6(5) of this act in accordance with a time schedule set forth by the state council which shall, to the extent feasible, allow for the integration of cost and services needs information contained in the plans with the development of the governor's annual state budget proposal.

NEW SECTION. Sec. 17. CONTENTS OF SERVICE DELIVERY AREA PLANS. Service delivery area plans shall contain provisions required by the federal job training partnership act and this act, including but not limited to the following:

(1) A description of the service delivery area's system for administering and delivering services including private industry council membership.

(2) A description of and the rationale for the service delivery area's eligibility and services priorities, the types of services and training provided, the industries and occupations of training, the criteria for the content and quality of training, the entities delivering services, and the performance measures used;

(3) A description of the coordination with and the uses made of other agencies and organizations within the service delivery area providing job training, vocational education, client advocacy, child care, and employment services that show the value of these other resources in addressing the needs reflected in the plan. This shall include a description of how the plan meets the needs of participants on aid to families with dependent children or served under the family independence program;

(4) A proposed budget for the planning period describing program objectives, services to be provided for the purpose of achieving those objectives, the sources and amounts of funds to be allocated to each type of service, and estimates of the number of persons in each eligibility category in need and the number of persons in each eligibility category to be served by each type of service. The budget shall also describe administrative objectives, the purpose and rationale for such objectives, and the sources and amounts of funds to be allocated to each objective;

(5) A status report on the activities of the current fiscal year describing progress toward achieving program and administrative objectives as well as other legislative requirements imposed by the current budget, including the current status and financial condition of the federal and state funds allocated to the service delivery area and the capacity to meet current year objectives;

(6) A description of the activities, financial condition, and accomplishments of the service delivery area's job preparation and training services program for the preceding fiscal year, including a description of the extent to which program and administrative objectives set forth for that year were realized and a description of expenditures by sources of funds for services provided pursuant to this act in that year;

(7) A description of the condition of job preparation and training services taking place in the service delivery area, including an analysis of issues confronting the program and recommendations appropriate to resolve such issues;

(8) A description of the unmet child care needs of participants eligible for services under this chapter, including an assessment of the role of employers in reducing this barrier to participation; and

(9) Assurance that economically disadvantaged women and minorities will 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. If the goals of the plan are not designed to comply with this subsection, the private industry council shall submit its justification for noncompliance to the state job training coordinator council and the governor.

NEW SECTION. Sec. 18. INCOME REQUIRED FROM JOBS. Jobs provided pursuant to the service delivery plan shall, to the extent possible, offer net income sufficient to meet the participant's family expenses for food, housing, utilities, child care, and transportation.

NEW SECTION. Sec. 19. PUBLIC REVIEW AND COMMENT ON PROPOSED PLAN--PROCEDURE. The opportunity shall be provided for public review and comment on the service delivery area plan prior to final approval and in accordance with procedures which the chief elected officials determine are reasonable and appropriate which shall provide all of the following:

(1) A public hearing on the proposed plan by the private industry council, with at least thirty days' advance public notice, prior to submission to the chief elected official or officials;

(2) A thirty-day posthearing comment period prior to final adoption of the plan by the private industry council and submission to the chief elected officials; and

(3) A requirement that the private industry council or the local governmental unit or units, or both, respond in writing to any comments submitted concerning the plan as a part of the plan to be submitted to the department.

NEW SECTION. Sec. 20. APPROVAL OF PLAN. Each service delivery area's plan shall require the approval of both its chief elected officials and the local private industry council, and the plan submitted to the state coordinating council shall indicate this joint approval. After certification by the state coordinating council as provided in section 6(5) of this act, the plan shall be submitted to the governor for approval.

NEW SECTION. Sec. 21. SELECTION OF ADMINISTRATIVE ENTITY--INTEGRATION OF SERVICES. (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 section 13 of this act.

(2) The administrative structure shall provide for the integration of, the application of, and access to employment and training services with the state structure for administering benefits under the aid to families with dependent children program, the family independence program, and other public assistance programs. In addition, the private industry council and appropriate local elected officials in each service delivery area shall, to the extent feasible, promote the integration of employment and training resources available within the service delivery area to eligible participants into a comprehensive employment services system.

(3) All programs, services, policies, and procedures established in the service delivery area pursuant to the requirements of this chapter, including the expenditures of all public funds, shall be in accordance with the service delivery area plan.

(4) In its administration and management of the services system established under this chapter, the appropriate local elected officials in each service delivery area shall act in a manner which promotes and supports the powers, duties, and functions of the local private industry council as set forth in sections 25 through 33 of this act.

NEW SECTION. Sec. 22. NO NEEDLESS DUPLICATION OF SERVICES ON SERVICES. The entity administering the service delivery area plan in each service delivery area may contract with state departments or public and private agencies or organizations for the provision of services to persons eligible under this act who need or would benefit from such services. In selecting facilities for job training, institutional training, or work experience programs under this chapter, it shall be determined whether existing private and public community facilities in the area are being utilized to the fullest extent before establishing any new facilities at public expense and this determination shall be documented within the plan prepared pursuant to section 17 of this act. In order to assure that the maximum utilization of existing facilities is accomplished, where appropriate an administering entity in each service delivery area shall notify all the facilities in the area prior to establishing new job training, institutional training, and work experience programs.

NEW SECTION. Sec. 23. CONSORTIUMS AUTHORIZED. Where it is determined to be impractical because of population size or geographical remoteness for an individual unit of general local government to establish a services system pursuant to this chapter, or where governmental units share common interests, needs, and resources, those 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. 24. ESTABLISHMENT OF PRIVATE INDUSTRY COUNCILS. In order to assure a more cooperative relationship between government and the private sector, a relationship that promotes a system of job preparation and training services most responsive to the needs and interests of the private sector and the participants, there shall be a private industry council established in each service delivery area.

NEW SECTION. Sec. 25. PRIVATE INDUSTRY COUNCIL MEMBERSHIP. (1) The service delivery area's private industry council shall be appointed by the chief elected officials of the local government unit or units involved and shall be of such size as the unit or units deem appropriate for the purposes of this chapter.

(a) The chairperson and at least one-half of the remaining members shall represent both large and small businesses in the private sector and shall be owners of business concerns or chief executives or chief operating officers of business concerns who have or have had substantial policy and management responsibility, or their designees.

(b) The council shall include representatives of educational agencies in the service delivery area who are representative of all educational agencies in the service delivery area, rehabilitation agencies, two community based organizations including those serving minority populations with actual minority representatives as appropriate, economic development agencies, the public employment service, and a minimum of three representatives of organized labor.

(c) The remaining members shall include representatives of significant groups of eligible participants and providers of services within the service delivery area, such as private proprietary schools, actual recipients of public assistance, and minority groups.

(d) The composition of the private industry council shall, to the extent feasible, represent the racial, ethnic, and gender characteristics of the service delivery area.

(2) The representatives on the council designated in subsection (1) (a) and (b) of this section shall be selected in accordance with the federal job training partnership act.

(3) Members shall be appointed for fixed and staggered terms of a duration reflected in the bylaws of the private industry council, but no term shall be less than two years. Members may serve past the expiration date of their appointment until their successors are appointed.

NEW SECTION. Sec. 26. CERTIFICATION BY GOVERNOR. The governor shall certify a private industry council if the governor determines that its composition and appointments are consistent with the 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. 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 pursuant to section 25 of this act.

NEW SECTION. Sec. 27. RESPONSIBILITIES OF PRIVATE INDUSTRY COUNCILS. It shall be the duty of the private industry council to:

(1) Design and plan the program of job preparation and training services for the service delivery area, which shall include all of the following:

(a) Establishing the service delivery area's eligibility and services priorities;

(b) Determining the types of services and training to be provided;

(d) Establishing criteria for the content and quality of training;

(e) Determining the entities which will deliver the training and services; and

(f) Determining the annual utilization of available funds and resources and preparing the program budget.

(2) In conjunction with the labor market and economic analysis branch of the employment security department, survey local employment needs and local economic conditions, including a description of:

(a) Unemployed, underemployed and "discouraged" workers;

(b) Jobs lost and jobs created in the region;

(d) Labor force training needs and skills assessment;

(e) Linkages with small businesses;

(f) Economic development strategies implemented or planned for the region and their employment impact; and

(g) Employment by private industry receiving contracts, loans, industrial revenue bonds, grants, tax abatements or preferential zoning from any government body. (3) Guide the development of the service delivery area plan prepared in accordance with the provisions of section 17 of this act to assure that it conforms with the priorities, criteria and standards set forth by the council pursuant to subsection (1) of this section.

(4) Monitor the performance of the job preparation and training services system to assure its compliance with the service delivery area plan, and through utilization of performance criteria established pursuant to this chapter, assess the levels of success achieved by the system. Where the system's performance is not up to standard, the private industry council shall propose modifications which will maximize successful outcomes.

(5) Assure that the system is fully responsive to the employment needs of the private sector, program participants, and the economic conditions occurring within the service delivery area, and assure that the system is compatible with and supportive of federal, state, and local business and economic development activities occurring within the service delivery area.

(6) Promote the integration of the system with all other job training, vocational education, apprenticeship programs, and employment services resources available within the service delivery area, including the joint development of plans with the employment security department for local offices for employment services, local educational agencies for vocational education programs, and local department of social and health services offices.

(7) Promote the transition of participants served by the system into full-time, unsubsidized jobs with special emphasis on nontraditional jobs in the private sector for women.

(8) Consult quarterly with department of social and health services offices to review data on the need for child care and development services for participants eligible for services under this chapter.

(9) Develop and implement a plan for participation in the planning process, program development, and program evaluation by representatives of eligible participants and service providers within the service delivery area, including all types of public and private vocational education agencies and schools, public assistance recipients, participants in services under this division, and child care resource and referral agencies.

(10) Prepare and distribute to interested parties a quarterly program assessment for review and comment.

NEW SECTION. Sec. 28. BUDGET, STAFF, ACCESS TO INFORMATION. The private industry council, in order to carry out its functions:

(1) Shall, in accordance with its plan, prepare and approve a budget;

(2) May hire staff, incorporate, and solicit and accept contributions and grant funds from other sources;

(3) Shall have access to information concerning the operation of programs covered under the service delivery area plan.

NEW SECTION. Sec. 29. OFFICES. The private industry council shall select annually from among its membership a chairman, vice-chairman, and any other officers the council deems necessary.

NEW SECTION. Sec. 30. COMPENSATION OF MEMBERS. Members of the private industry council shall be reimbursed only for their necessary and actual expenses incurred in the performance of their official duties.

NEW SECTION. Sec. 31. REVIEW OF COURSES AND PROGRAMS. To assure compliance with legislative intent regarding the content and availability of vocational education programs provided by community colleges, school districts, vocational technical institutes, and other state supported programs, each local private industry council shall, review and comment on the vocational education courses or programs provided in the service delivery area. The council shall conduct its review prior to any review by the appropriate governing body, and the council shall notify the governing body of its determinations.

NEW SECTION. Sec. 32. DEVELOPMENT OF EMPLOYMENT SERVICES AND TRAINING PLANS. To assure compliance with legislative intent regarding the content and availability of employment services provided by the employment security department, the local elected official or officials and the private industry council shall, 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.

NEW SECTION. Sec. 33. COMMENTS ON CHILD CARE NEEDS. To assure compliance with legislative intent regarding the availability of child care services, each local private industry council shall submit information to the child care coordinating committee created under chapter 74.13 RCW. The council's comments shall describe the unmet child care needs of participants eligible for services under this chapter.

NEW SECTION. Sec. 34. STATE COUNCIL TO MONITOR. The state coordinating council shall monitor and evaluate the performance of programs in the service delivery area including assessments of efficiencies of administration, effectiveness of coordination, and linkages with other training and employment services resources. The state council shall also determine levels of achievement for service delivery areas. The purpose of these monitoring and evaluation activities is to determine reasons for high and low levels of program performance, administrative efficiencies, and program coordination and to determine the appropriate allocation of performance-based funding.

NEW SECTION. Sec. 35. SUPPORTIVE SERVICES--COORDINATION OF PLANS. 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. 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.

NEW SECTION. Sec. 36. PLAN FOR INFORMATION SYSTEM. (1) 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.

The plan shall, at the minimum, include the following:

(a) The proposed design of a labor market and occupational supply and demand information system for this state meeting the requirements of section 125 of the federal job training partnership act;

(b) Proposed activities in implementing the labor market and occupational supply and demand information system for the fiscal year; and

(c) The amount and proposed use of each funding source available for the labor market and occupational supply and demand information system.

(2) 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, and private sources and may accept and use any such funds or in-kind contributions for the purposes of this section.

NEW SECTION. Sec. 37. RIGHTS AND PRIVILEGES NOT TO BE ABRIDGED. The state council shall establish procedures to assure that the rights and privileges of applicants for or recipients of services provided under this act 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. 38. STATE COUNCIL TO RECOMMEND QUALITY CONTROL COST APPORTIONMENT. The state coordinating council shall report to the legislature, no later than one hundred eighty days following the effective date of this section, a recommended formula, developed with the assistance of the employment security department and the private industry councils, which apportions fiscal responsibility for state and federal quality control sanctions between the state and the service delivery areas.

NEW SECTION. Sec. 39. ELIGIBILITY--PRIORITIES. (1) Persons eligible to receive services provided under this chapter with funds from the employment futures fund shall be limited to those who are eligible for services under the federal job training partnership act (P.L. 97-300).

(2) 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:

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

(b) 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.

(3) In establishing priority criteria, the state council may establish proportions of funding that may be used for groups of eligible participants and for types of services.

(4) Procedures and criteria for determining the eligibility of persons provided services under this chapter with federal funds received through the federal job training partnership act shall be in accordance with the provisions of that act.

NEW SECTION. Sec. 40. 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) Provide technical assistance and advice to substate grantees;

(5) Exchange information and coordinate programs with:

(a) The department of trade and economic development and any business and job retention activities operated by them for the purpose of developing strategies to avert plant closings or mass layoffs and to accelerate the reemployment of affected individuals;

(b) The department of community development and any community revitalization activities operated by them for the purpose of assisting local governments and community organizations in addressing problems caused by worker dislocation;

(c) The superintendent of public instruction, the department of social and health services, the department of labor and industries, and the state board for community college education; and

(d) All other programs available to assist dislocated workers, including the job service and the unemployment insurance system;

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

(7) 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. 41. 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 act 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. 42. SERVICE DELIVERY AREAS AS SUBSTATE AREAS. 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:

(1) Have requested designation as a substate area; and

(2) Have a combined population of two hundred thousand or more,

!ixshould serve as a substate area.

NEW SECTION. Sec. 43. DESIGNATION OF SUBSTATE GRANTEE. The state council shall recommend substate grantees to the governor for purposes of Title III of the job training partnership act. The governor shall designate such 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.

NEW SECTION. Sec. 44. SUBSTATE PLAN. The substate grantee 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 43 of this act for their review and comment.

The substate plan shall contain a statement of:

(1) The means for delivery services described in section 45 of this act to eligible dislocated workers;

(2) The means to be used to identify, select, and verify the eligibility of program participants;

(3) The means for coordinating dislocated worker programs with the unemployment compensation system in the substate area:

(4) The means for involving labor organizations in the development and implementation of services;

(5) The performance goals to be achieved consistent with those established by the federal secretary of labor pursuant to the job training partnership act;

(6) Procedures for selecting service providers which take into account past performance in job training or related activities, fiscal accountability, and ability to meet performance standards. Such procedures shall be consistent with those used in the selection of service providers in service delivery areas;

(7) 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, which methods may include, but are not limited to:

(a) Development and delivery of widespread outreach mechanisms;

(b) Provision of financial evaluation and counseling, where appropriate, to assist in determining eligibility for services and the type of services needed;

(d) Establishment of regional centers for the purpose of providing such outreach, assessment, and early readjustment assistance;

(8) A description of the methods by which the other parties to the agreement described in section 43 of this act may be involved in activities of the substate grantee;

(9) A description of training services to be provided, including:

(a) Procedures to assess participants' current education skill levels and occupational abilities;

(b) Procedures to assess participants' needs, including educational, training, employment, and social services;

(c) Methods for allocating resources to provide the services recommended by rapid response teams for eligible dislocated workers within the substate area; and

(d) A description of services and activities to be provided in the substate area;

(10) The means whereby coordination with other appropriate programs, services, and systems will be effected, 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; and

(11) A detailed budget, as required by the department.

NEW SECTION. Sec. 45. SUBSTATE GRANTEE TO PROVIDE SERVICES. The substate grantee shall be responsible for providing to eligible dislocated workers within a substate area:

(1) Basic readjustment services. The services may include but are not limited to:

(a) Development of individual readjustment plans for participants in programs under this chapter;

(b) Outreach and intake;

(d) Job or career counseling;

(e) Testing;

(f) Orientation;

(g) Assessment, including evaluation of educational attainment and participant interests and aptitudes;

(h) Determination of occupational skills;

(i) Provision of future world-of-work and occupational information;

(j) Job placement assistance;

(k) Labor market information;

(l) Job clubs;

(m) Job search;

(n) Job development;

(o) Supportive services, including child care, commuting assistance, and financial and personal counseling which shall terminate not later than ninety days after the participant has completed other services under this section, except that counseling necessary to assist participants to retain employment shall terminate not later than six months following the completion of training;

(p) Prelayoff assistance;

(q) Relocation assistance; and

(r) Programs conducted in cooperation with employers or labor organizations to provide early intervention in the event of closures of plants or facilities.

(2) Retraining services. The services may include but are not limited to:

(a) Classroom training;

(b) Occupational skill training;

(d) Out-of-area job search;

(e) Relocation;

(f) Basic and remedial education;

(g) Literacy and English for non-English speakers training;

(h) Entrepreneurial training; and

(i) Other appropriate training activities directly related to appropriate employment opportunities in the substate area.

NEW SECTION. Sec. 46. 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 specified in section 45(2) of this act. 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. 47. FUNDING FOR SERVICES. The funding for services authorized under this act is to be administered through:

(1) Federal job training partnership act funds;

(2) The employment futures fund, created in section 48 of this act; and

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

NEW SECTION. Sec. 48. A new section is added to chapter 50.16 RCW to read as follows:

EMPLOYMENT FUTURES FUND ESTABLISHED. 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 50 of this act, public and private grants for the purposes of chapter 50.-- RCW (sections 1 through 47 and 49 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 through 47 and 49 of this act) and money from contributions paid under section 50 of this act must be appropriated. The employment futures fund shall provide a single source of funding allocated by the employment security department to the state council, service delivery areas, substate areas, and other entities for the purposes of this chapter. The purpose of the employment futures fund is to assure more efficient, equitable, and appropriate use of available resources and to provide greater flexibility in responding to the needs of persons receiving training resources.

NEW SECTION. Sec. 49. 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, the commissioner of the employment security department shall seek to obtain waivers from such law and regulations which allow fullest flexible use of federal funds for the purposes of this chapter.

NEW SECTION. Sec. 50. A new section is added to chapter 50.24 RCW to read as follows:

CONTRIBUTIONS TO THE EMPLOYMENT FUTURES FUND. (1) Beginning January 1, 1990, upon an affirmative resolution of the legislature to use employer contributions for the purposes of those specifically designated training activities, contained in the plan prepared by the state council under the provisions of section 7 of this act, contributions to the employment futures fund established in section 48 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 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. 51. A new section is added to chapter 50.29 RCW to read as follows:

APPLICATION OF EXISTING STATUTE. RCW 50.29.025 shall apply to employer contributions before January 1, 1990, and after December 31, 1995.

NEW SECTION. Sec. 52. A new section is added to chapter 50.29 RCW to read as follows:

CONTRIBUTION RATES FOR EMPLOYERS. 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. 53. 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. 54. 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. 55. 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. 56. LEGISLATIVE DIRECTIVE. Sections 1 through 47 and 49 of this act shall constitute a new chapter in Title 50 RCW.

NEW SECTION. Sec. 57. Section captions used in this act constitute no part of the law.