Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Labor & Workforce Development Committee

HB 2348

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Expresses legislative findings and intent about strengthening the state's workforce development system.
Transfers powers, functions, and duties pertaining to administration of Title I-B of the Workforce Investment Act from the Employment Security Department to the Workforce Training and Education Coordinating Board.
Requires the Workforce Training and Education Coordinating Board and local workforce development councils to establish as their primary mission: developing a workforce for top industries; and increasing the percentage of Washington households living in the middle-income bracket or higher.

Background:

Congress enacted the federal Workforce Investment Act of 1998 (WIA) to prepare youth, dislocated workers, and adults for entry into the labor force and to provide for the planning, implementation, and ongoing oversight of a comprehensive state workforce development system designed to improve workforce training, employment, literacy, and vocational rehabilitation. The WIA Title I-B provides a framework for state and local workforce investment systems. This framework includes a state board and plan, local boards and plans, one-stop delivery systems, and employment and training providers. Governor Locke then issued Executive Order 99-02 relating to workforce development.

The Workforce Training and Education Coordinating Board (Board) acts as the state workforce investment board and develops the state unified plan for workforce development. The Board provides planning, coordination, evaluation, monitoring, and policy analysis for the state training system as a whole.

The Employment Security Department (Department) administers the state employment service unemployment insurance programs. The Department is the administrative lead for WIA Title I-B and employment statistics.

Twelve local workforce development councils act as local workforce investment boards and develop local unified plans for workforce development. These organizations oversee the local one-stop systems and select local one-stop operators to manage the day-to-day functioning of one-stop centers. The one-stop operators may be postsecondary educational institutions, local employment service offices, community-based organizations, for-profit entities, or government agencies.

Congress appropriates funds for youth, dislocated worker, and adult activities under WIA Title I‑B and the federal Department of Labor sets allotments for the states based on statutory formulae. The states then distribute most funds among local areas and reserve other funds based on those formulae and the provisions of the state plans. Washington's total allotment for Program Year 2011 was $52.5 million, with at least $44.4 million allocated for local activities, about $5.5 million reserved for rapid response activities, and about $2.6 million reserved for statewide activities.

Summary of Bill:

Findings and Intent.

The Legislature finds that the workforce development system may be strengthened by focusing on the key roles and responsibilities of state partners, ensuring cohesive governance and management of the state's workforce system, improving accountability and performance, and eliminating possible conflicts of interest.

The Legislature expresses its intent that greater focus and better alignment will strengthen the ability of state partners to develop a workforce needed by top industries such as aerospace, biotechnology, and information technology, and to increase the percentage of Washington households living in the middle-income bracket or higher.

The Legislature also expresses its intent that:

Policy, planning, and performance continue to be the Workforce Training and Education Coordinating Board's (Board) core business;
The Board assume administrative and operational responsibility for funds received under Title I-B of the Workforce Investment Act (WIA Title I-B); and
Employment services and unemployment insurance continue to be the Employment Security Department's (Department) core business.

Administration of WIA Title I-B.

The powers, functions, and duties of the WorkSource Standards and Integration Division (WorkSource Division) pertaining to the administration of Title I-B are transferred from the Department to the Board. These powers, functions, and duties include:

compliance, assistance, research and grant origination;
related technical assistance, education, and support;
related quality assurance and compliance; and
related system performance.

All assets and personnel of the WorkSource Division are transferred from the Department to the Board, including records, appropriations, and employees. Transferred employees in an existing Department bargaining unit become part of the existing Board bargaining unit.

Mission of State and Local Boards.

The Board must establish as its primary mission the following: developing a workforce for top industries such as aerospace, biotechnology, and information technology; and increasing the percentage of Washington households living in the middle-income bracket or higher. Workforce development councils must do the same.

The Board must assume the administrative lead for WIA Title I-B, and oversee the WorkSource service delivery system. The Board also must develop strategies to expand cohort training in fields with critical skill shortages.