BP BHEAD INT H [atlas:bill]

AN ACT Relating to earned income training credits; and adding new sections to chapter 28B.50 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28B.50 RCW to read as follows:

(1)(a) The college board shall establish and administer an earned income training credit program as provided in this section for persons with qualifying children who received an earned income tax credit under the federal internal revenue code. Persons with qualifying children who received an earned income tax credit shall receive earned income training credits in an amount equal to fifty percent of the earned income tax credit received in a year, up to the maximum established in (b) of this subsection. If the recipient of training credits does not use the credits in the year the credits are received, then credits may be accumulated over time up to the maximum established in (b) of this subsection.

(b) For each school year beginning with the 2000-01 school year, the college board shall determine the maximum amount that a recipient may receive in earned income training credits, which shall equal six times the quarterly tuition, as defined in RCW 28B.15.020, for that school year at community and technical colleges.

(2)(a) Earned income training credits must be used within five years from the year in which the credits are received. A recipient must have a minimum of one thousand dollars in credits before the credits may be used. The maximum amount of credits that the recipient may use during his or her lifetime is equal to the maximum amount of credits established under subsection (1)(b) of this section for the school year in which the recipient first uses the credits.

(b) Earned income training credits are not transferable.

(3) Earned income training credits may be used, subject to available funding:

(a) For tuition at an institution of higher education as defined in RCW 28B.10.016 or a private career school as defined in RCW 28C.10.060; or

(b) To reimburse a current or prospective employer who redeems the credits from the recipient and agrees to provide training for the recipient under a training contract entered into by the employer, or prospective employer, the employee, and an eligible training institution under the rules of the college board. The training contract must meet the college board's standards for training and must establish the value of the training. The employer participating under a contract to train a recipient who is an employee or prospective employee may be reimbursed for the on-the-job training provided under the contract in an amount not exceeding the value of the training as established by the contract or the earned income training credits redeemed by the employer, whichever is less. A minimum of twenty-five percent of funds set aside for training credits shall be used for on-the-job training under this subsection.

(4) The college board shall adopt rules setting standards for defining the training, employment, and wage assumptions, and for establishing the value of the training under a training contract for employer reimbursement purposes.

(5) Earned income training credits shall be available beginning January 1, 2001, for earned income tax credits received for federal income taxes filed for the 2000 tax year.

(6) Subject to available funding, if a recipient of training provided under subsection (3)(a) of this section is enrolled in a program of study at least half time, the recipient is eligible, as provided under rules adopted by the college board, for:

(a) State subsidized child care; and

(b) A financial aid state supplement not to exceed the student's remaining unmet need after the receipt of training credits and the total financial aid awarded for the academic year to the student from federal, state, or institutional programs.

(7) Training credits earned shall be considered a self-help contribution for purposes of financial aid and shall not reduce eligibility for or supplant state and federal financial aid grants.

(8) Only persons who would qualify as resident students under RCW 28B.15.012 are eligible for the earned income training credit program.

NEW SECTION. Sec. 2. A new section is added to chapter 28B.50 RCW to read as follows:

The college board shall, with the cooperation of the employment security department, report on the impact of section 1 of this act to the work force training and education coordinating board, or a successor board, and the appropriate committees of the legislature by December 1st of even-numbered years, beginning in 2002. The report must include:

(1) The number of people receiving training;

(2) The cost of the training;

(3) The cost of program administration;

(4) For those persons whose credits were used for training at institutions of higher education under section 1(3)(a) of this act:

(a) Their employment status; and

(b) The number of workers receiving tuition benefits by institution and general area of study; and

(c) Training outcomes, including indices of placement rates, student demographics, training plan completion rates, and comparisons of preprogram and postprogram wage levels; and

(5) For those persons using the credit for employee training under section 1(3)(b) of this act, a report on:

(a) Their job and wage progression; and

(b) The number of workers receiving training by industry, size of firm, and occupation.