AN ACT Relating to investment in human capital; adding new sections to Title 28A RCW; adding a new chapter to Title 28C RCW; creating new sections; providing expiration dates; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that demographic and economic changes are causing an increasing shortage of well trained workers within Washington. The working age population is growing at a decreasing rate due to the aging of the post World War II baby boom generation and due to a lower rate of birth. The current economic boom in the state is aggravating this long-term trend by lowering the rate of unemployed individuals seeking work. Because of the developing labor shortage, Washington businesses increasingly need to employ individuals from demographic groups which have been traditionally underrepresented among the employed population. Many of these and other individuals need training in order to have the skills required by employers. Despite economic growth, significant unemployment remains a serious and persistent problem in many areas of the state. By making first rate training available to individuals who lack suitable skills for employment in well-paying careers, the state will enhance employment opportunities for low-income individuals, unemployed persons, dislocated workers, and others enabling more citizens of the state to enjoy our economic prosperity.

The legislature further finds that our state's businesses have a growing need for highly trained workers because of the increasing technological complexity of occupations and due to increasing world market competition. Because of these technical and economic changes, businesses in the future will need to fully utilize the capacities of their workers for skilled, flexible, and intelligent work.

The legislature further finds that the vast majority of the work force for the year 2000 and beyond is already of the age eighteen years or older. For the work force of the future to be well trained will require a first-rate adult training system. This system will need to train those individuals who are entering and reentering the labor market and those individuals already employed who need new or updated skills to meet changing technological and economic conditions. For the training system to be first rate will require a system that is well coordinated between service providers, is accountable for its performance, and is responsive to the needs of businesses and the work force. The training system must emphasize training in broad- based skills with long-term career potential. For the state to have a first rate training system requires a thorough study of our present and future training needs; experimentation in new ways of providing training; and leadership and recommendations from representatives of business, workers, and training providers.

The legislature further finds that adults without the basic skills needed for training in job skills are the most likely to need unemployment compensation and welfare payments, and to fill our state's correctional institutions. The legislature intends to increase adult educational opportunities in the state for adults lacking basic literacy skills, for adults who have not received a high school diploma, and for adults who have received a high school diploma but whose level of achievement, based on standard measures, indicates that additional basic skills are necessary in order to enter a job training program.

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

(1) "Basic literacy" means achievement at a tenth grade educational level as measured by tests developed by the office of the superintendent of public instruction and approved by the state board of education.

(2) "Council" means the advisory council on investment in human capital.

(3) "Training" means any education, literacy, or skill training or retraining activity that is needed by an individual to begin or continue full participation in the Washington work force.

(4) "Training system" means the network of public and private providers of training, and includes secondary vocational education programs for gainful employment upon completion of a designated program sequence, but not other programs of primary or secondary education.

(5) "Training providers" includes agencies and institutions of secondary vocational education programs for gainful employment upon completion of a designated program sequence, adult education, vocational technical institutes, community colleges, apprenticeship programs, private and public nonprofit organizations that are representative of communities or significant segments of communities and provide job training services, and private for-profit organizations that provide training as their primary service.

NEW SECTION. Sec. 3. There is created the advisory council on investment in human capital. The council shall consist of ten voting members, eight nonvoting members, and a nonvoting chairperson. The speaker of the house of representatives shall appoint two of the nonvoting members, one from each caucus of the house of representatives; and the president of the senate shall appoint two of the nonvoting members, one from each caucus of the senate. The governor shall appoint the remaining members of the council. Three of the voting members shall be representatives of business, and three of the voting members shall be representatives of labor. Four of the voting members shall be the state superintendent of public instruction, the executive director of the state board for community college education, the commissioner of the department of employment security, and the director of the department of labor and industries. The four nonvoting members shall be a representative of the general public, a representative of a broad-based coalition of groups providing literacy services, a representative of private or public nonprofit organizations that are representative of communities or significant segments of communities and provide job training services, and a representative of private for-profit organizations which provide job training services as their primary service. The governor or the governor's designee shall serve as the nonvoting chairperson of the council. The council shall meet as necessary to carry out its purposes, and council members shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 4. (1) The council shall advise the office of financial management concerning the study of training authorized under section 5 of this act.

(2) The council shall advise the office of financial management and other appropriate state agencies concerning the pilot programs established under sections 6 through 8 of this act.

(3) The council shall make recommendations on changes necessary in state policies for training to the office of financial management and to the governor by December 1, 1990.

(4) The office of financial management and the office of the governor shall provide staff to the council as necessary to carry out the purposes of sections 4 through 8 of this act.

NEW SECTION. Sec. 5. The office of financial management shall, with the advice of the council, administer a study of the training needs of the state's work force, businesses, and the economy, including an evaluation of the training system. The office of financial management shall complete the study by December 1, 1990, and present the study to the council and the governor. For purposes of the study, the office of financial management shall use already existing data whenever appropriate. As necessary, the labor market and economic analysis unit of the department of employment security shall assist the office of financial management with labor market and economic data, and state agencies that provide training shall assist the office of financial management with data on their training programs. The director of the office of financial management may contract for services necessary for the completion of the study, and shall contract for services as necessary to ensure objectivity in evaluating the training system. The study shall include:

(1) An assessment of the employment competency needs of the present Washington work force, including regional and demographic subgroups of the state work force, and projections of these competencies to the year 2010. Employment competency needs shall include, but not be limited to, literacy, basic skills, and vocational skills;

(2) An assessment of the current work force skill needs of Washington businesses and public employers, including subgroups by region, industry, and firm size, and projections of these needs to the year 2010. Work force skill needs shall include, but not be limited to, literacy, basic skills, and vocational skills;

(3) An assessment of the gaps which may exist between the competencies of the work force and the work force skill needs of Washington businesses between now and the year 2010 given current training policies;

(4) An assessment of the characteristics, size, and geographic distribution of Washington population groups which are in need of training between now and the year 2010;

(5) An inventory and analysis of alternative training programs, policies, and funding mechanisms including, but not limited to, financial contributions from businesses, workers, and trainees, which have been proposed or are in use in other states or other nations;

(6) An assessment of current data, information, monitoring, and evaluation systems so that training needs and training providers may be assessed on an ongoing, systematic, objective, and comprehensive basis. This assessment shall include integrating an evaluation component into each of the pilot programs authorized under sections 6 through 8 of this act;

(7) An inventory and analysis of the current training system in terms of organization, coordination, responsiveness, accountability, effectiveness, resources, support services for trainees, and access, including access for subgroups of the population, including but not limited to subgroups by gender, race, ethnicity, and income level, and including an analysis of the job readiness of students graduating from the state's K-12 system, particularly students who have completed a vocational education designated program sequence for gainful employment, and an inventory of training provided by employers whose primary product is not training;

(8) An examination of the need for ongoing oversight in the governor's office of all technical training in the state; and

(9) Recommendations on changes in the training system, including but not limited to ways of improving coordination and integration to meet the present and future needs of the work force, businesses, and the economy.

NEW SECTION. Sec. 6. The office of financial management and the office of the governor, with the advice of the council, shall oversee pilot programs for job training. The pilot programs shall test means of integrating delivery systems and improving the responsiveness of training providers to the needs of businesses and the work force. Each pilot program shall integrate an evaluation component in conjunction with the study conducted under section 5 of this act.

NEW SECTION. Sec. 7. The state board for community college education shall, in cooperation with the office of financial management, administer pilot programs which provide additional community college training programs incorporating new means of responding to the needs of businesses and the work force. The state board for community college education shall, as appropriate, coordinate these projects with the economic development services provided by the department of trade and economic development and the department of employment security.

NEW SECTION. Sec. 8. The superintendent of public instruction shall administer a pilot program on integrating adult education instruction within vocational technical institutes. Under this pilot program the vocational technical institutes shall provide two hundred thousand additional hours of adult education instruction.

NEW SECTION. Sec. 9. The advisory council on investment in human capital shall develop and submit to the legislature for adoption a state plan for reducing the percentage of the adult population lacking basic literacy to five percent by the year 2000. The state plan shall provide a framework for interagency collaboration. The state plan shall include, but not be limited to, the following elements:

(1) Policies and objectives guiding the adult literacy development activities for the state of Washington, with corresponding evaluative criteria;

(2) Strategies and criteria for coordinating and enhancing adult literacy activities, programs, and services provided by entities such as state and local education and training agencies and vocational educational agencies, public libraries, and public assistance and public employment agencies to achieve state policies and objectives, meet the basic skill needs of the adult population, and maximize available state and local resources and expertise;

(3) Procedures for identifying and recruiting adults lacking basic literacy skills for placement in literacy training programs;

(4) Mechanisms for assessing program successes and for monitoring compliance with state policies and objectives; and

(5) Performance guidelines for educational agencies to follow in developing and implementing local literacy plans.

NEW SECTION. Sec. 10. The advisory council on investment in human capital shall award grants from funds appropriated for the purposes of this section exclusively for use by individuals who (1) have taken but not passed the basic literacy skills test provided for in section 11 of this act, and (2) require such funds for enrollment in a program of basic skills training. The advisory council shall establish by rule the procedures and the terms under which individuals shall qualify for and receive basic skills training funds. The advisory council may make the funds available as scholarships or recoverable grants.

NEW SECTION. Sec. 11. The office of the superintendent of public instruction shall develop, in conjunction with the state board for community college education and the council of vocational technical institutes, a standardized test to measure basic literacy skills.

NEW SECTION. Sec. 12. The state board for community college education shall institute a basic skills diploma program. Basic skills diplomas shall be awarded to individuals passing the standardized test developed by the office of the superintendent of public instruction as provided in section 11 of this act.

NEW SECTION. Sec. 13. The legislature finds that school districts may provide vocational education programs for students more effectively through cooperatives using existing district facilities, facilities at work sites, and facilities including but not limited to mobile instructional units, distance learning, and computers, without the need to construct separate facilities. It is the intent of the legislature to encourage such cooperatives among school districts on a demonstration basis.

NEW SECTION. Sec. 14. The superintendent of public instruction may establish a grant award program to establish demonstration vocational cooperatives for the purposes of sections 13 through 19 of this act. Grants may be awarded for not more than three projects. The cooperatives approved should include projects in urban and rural areas and districts of varying characteristics and size.

NEW SECTION. Sec. 15. The superintendent of public instruction shall administer sections 13 through 19 of this act subject to legislative appropriation for this purpose. The superintendent shall approve requests based on criteria established by the superintendent and notify districts of grant awards on or before August 1, 1990. The demonstration vocational cooperative projects shall begin with the 1990-91 school year. The grant awards may be continued for up to five years if the funds are so provided.

NEW SECTION. Sec. 16. Initial applications to participate in the demonstration vocational cooperative program shall be submitted to the superintendent of public instruction not later than June 30, 1990. Each application shall contain a proposed plan that:

(1) Explains how the plan meets the criteria;

(2) Describes specific activities to be carried out;

(3) Identifies the evaluation processes to be used; and

(4) Includes a copy of the agreement for joint cooperative action pursuant to chapter 39.34 RCW.

NEW SECTION. Sec. 17. The grant awards for such demonstration vocational cooperatives shall be based on an allocation which includes:

(1) The same amount as would be calculated pursuant to RCW 28A.41.140 for a skill center with the same full time equivalent enrollment; and

(2) An amount to compensate the serving districts for costs to administer the cooperatives pursuant to standards established by the superintendent of public instruction.

NEW SECTION. Sec. 18. Following the completion of each year of operation, each demonstration vocational cooperative shall submit an evaluation of the cooperative program to the superintendent of public instruction in accordance with requirements of the superintendent. On or before January 31, 1993, the superintendent of public instruction shall submit a report to the education committees of the house of representatives and the senate including the cooperative evaluations and recommendations concerning the continuation of this program.

NEW SECTION. Sec. 19. The superintendent of public instruction shall adopt rules under chapter 34.05 RCW if necessary to implement the superintendent's duties under sections 13 through 18 of this act.

NEW SECTION. Sec. 20. If specific funding for the purposes of sections 13 through 19 of this act, referencing this act by bill number and applicable section number, is not provided by June 30, 1990, in the supplemental omnibus appropriations act, sections 13 through 19 of this act shall be null and void.

NEW SECTION. Sec. 21. 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. 22. (1) Sections 1 through 3 and 9 through 12 of this act shall constitute a new chapter in Title 28C RCW.

(2) Sections 13 through 19 of this act are each added to Title 28A RCW.

NEW SECTION. Sec. 23. Sections 4 through 8 of this act shall expire on July 1, 1991.

NEW SECTION. Sec. 24. Sections 13 through 19 of this act shall expire June 30, 1995.

NEW SECTION. Sec. 25. 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.