[atlas:bill]

AN ACT Relating to earned income training credits; adding new sections to chapter 28B.10 RCW; making appropriations; and providing expiration dates.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28B.10 RCW to read as follows:

(1) Subject to legislative appropriation, the higher education coordinating board with the assistance of the state board for community and technical colleges, shall establish and administer an earned income training credit pilot project as provided in this section for eligible persons who received an earned income tax credit under the federal internal revenue code. The higher education coordinating board and the state board for community and technical colleges may adopt rules as necessary to implement this section.

(2) Eligible persons must be resident students as defined under RCW 28B.15.012(2) (a) through (d), must have qualifying children, and have received an earned income tax credit under the federal internal revenue code.

(3) Eligible persons may receive earned income training credits in an amount equal to fifty percent of the earned income tax credits received in the previous three tax years, up to the maximum established in subsection (5) of this section.

(4) The higher education coordinating board shall award the earned income training credits and the financial aid supplement on a first-come, first-served basis, subject to available funding.

(5)(a) For each school year beginning with the 2001-02 school year, the higher education coordinating board shall determine the maximum amount that an eligible person 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 colleges.

(b) An eligible person must have a minimum of one thousand dollars in training credits before the credits may be used.

(6) Subject to available funding, earned income training credits may be used for tuition or job training.

(a) The training credit may be used for tuition at:

(i) An institution of higher education as defined in RCW 28B.10.016, not including graduate level courses;

(ii) Any college, university, school, or institute in the state of Washington offering instruction beyond the high school level that is a member of an accrediting association recognized by rule of the higher education coordinating board; or

(iii) A private vocational school as defined in RCW 28C.10.060.

(b) The training credit may be used to reimburse a current or prospective employer who redeems the credits from the eligible person and agrees to provide training for the eligible person under a training contract entered into by the current or prospective employer, the employee, and an eligible training institution under the rules of the state board for community and technical colleges.

(i) The state board for community and technical colleges shall administer on-the-job training as part of the pilot program.

(ii) The training contract under this subsection (6)(b) must meet the state board for community and technical college's standards for training and must establish the monetary value of the training.

(iii) The employer participating under a contract to train an eligible person who is a current 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.

(iv) Twenty-five percent of funds set aside for training credits shall be used for on-the-job training under this subsection (6)(b).

(c) The higher education coordinating board shall transfer the necessary information about an eligible person applying the training credits under subsection (6)(b) to the state board for community and technical colleges.

(7) The state board for community and technical colleges shall adopt rules setting standards for defining the training and for establishing the value of the training under the training contract for employer reimbursement purposes.

(8) As required, the higher education coordinating board shall work with the department of revenue and the federal internal revenue service to determine a person's eligibility.

(9) If an eligible person is enrolled in a program of study of at least half-time, the person may receive state-subsidized child care and a financial aid supplement.

(a) The higher education coordinating board shall, in collaboration with the state board for community and technical colleges and the department of social and health services, connect an eligible person with state-subsidized child care in currently established programs. Persons receiving training or education under this section are eligible for working connections child care.

(b) A financial aid supplement shall be available for the unmet need after the receipt of training credits and the total financial aid awarded for the academic year to the student from federal, state, and institutional programs.

(i) The eligible person must be attending an institution eligible to participate in federal and state financial aid programs.

(ii) The eligible person must make satisfactory progress in a degree or certificate program as defined by the institution offering the program.

(iii) The financial aid supplement is subject to the maximum as set by the higher education coordinating board and shall not exceed two times the annual tuition at a public community college.

(c) If an eligible person with training credits is receiving tuition assistance from another source, he or she is still eligible for the financial aid supplement and child care under this subsection (9).

(10) Training credits shall be considered self-help for the purposes of financial aid and shall not reduce or supplant state and federal financial aid grants up to the amount of financial need.

(11) The higher education coordinating board shall work with the state board for community and technical colleges to promote the training program to potentially eligible persons as well as streamline the eligibility process.

(12) An amount not to exceed four percent of funds available for the earned income training credit program may be expended on agency administrative costs. Agency administrative costs are indirect expenses such as personnel, payroll, contract administration, fiscal services, and other overhead costs.

(13) The higher education coordinating board may transfer funds to the state board for community and technical colleges as necessary to accomplish the purpose of this section and section 2 of this act.

(14) This section expires June 30, 2003.

NEW SECTION. Sec. 2. A new section is added to chapter 28B.10 RCW to read as follows:

(1) The higher education coordinating board shall, with the cooperation of the state board for community and technical colleges and 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 1, 2003. The report must include:

(a) The number of people receiving training;

(b) The cost of the training;

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

(i) Their employment status;

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

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

(iv) The number of people receiving a financial aid supplement and child care; and

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

(i) Their job and wage progression; and

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

(2) This section expires December 31, 2003.

NEW SECTION. Sec. 3. (1) The sum of three million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2002, from the general fund-federal temporary assistance for needy families grant to the higher education coordinating board to carry out the purposes of this act.

(2) The sum of seven million dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2003, from the general fund-federal temporary assistance for needy families grant to the higher education coordinating board to carry out the purposes of this act.