Washington State House of Representatives Office of Program Research | BILL ANALYSIS |
Ways & Means Committee |
SSB 6371
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 Description: Extending the customized employment training program.
Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Shin, Benton, Chase, Haugen, Kilmer, Delvin, Hatfield, Schoesler, Becker, McAuliffe and Conway).
Brief Summary of Substitute Bill |
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Hearing Date: 2/24/12
Staff: Trista Zugel (786-7157) and Rick Peterson (786-7150).
Background:
The Washington Customized Employment Workforce Training Program (Program) was created in 2006 to meet the training needs of employers locating or expanding in the state. The State Board for Community and Technical Colleges administers the Program. Training allowances are awarded to employers who have entered into training agreements with qualified community and technical colleges in the state. Preference is given to employers with fewer than 50 employees.
The Employment Training Finance Account (Account) was funded for the specific purpose of providing training allowances. At the completion of training, employers are required to pay one-quarter of the cost of the training into the Account. The additional three-quarters of the cost are paid back over the following 18 months. Repaid funds are deposited into the Account. The employer must make good faith efforts to hire from trainees in the Program; otherwise the employer is expected to make additional payments to the Account. Colleges must make good faith efforts to use trainers preferred by employers participating in the Program. Statutory authorization for the Account expires on July 1, 2012.
Participating employers may take a business and occupation tax credit equal to 50 percent of the value of their payments into the Account. Taxpayers may carry forward unused credits. However, credits may not be taken after July 1, 2016.
Summary of Bill:
The expiration date of the Washington Customized Employment Workforce
Training Program is extended five years to July 1, 2017.
The expiration date for use of customized employment training Business and Occupation tax credits is extended from July 1, 2016 to July 1, 2021.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.