FINAL BILL REPORT

SSB 6371

C 46 L 12

Synopsis as Enacted

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).

Senate Committee on Economic Development, Trade & Innovation

Senate Committee on Ways & Means

House Committee on Ways & Means

Background: The Washington Customized Employment Workforce Training Program (Program) was created in 2006 for employers locating or expanding in the state. The State Board for Community and Technical Colleges (SBCTC) administers the Program. Training allowances are awarded to employers who have entered into training agreements with colleges in the state. Preference in granting training allowances is given to employers with fewer than 50 employees.

The Employment Training Finance Account was funded for SBCTC to provide 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 to be paid into the account over the following 18 months. A business and occupation tax credit is provided to employers for half of the amount that they pay into the account for employee training. The credit for paying back the training allowance is no longer allowed on or after July, 1, 2016.

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.

The Program expires on July 1, 2012.

Summary: The expiration date of the Washington Customized Employment Workforce Training Program is extended five years until 2017. The expiration date of the business and occupation tax credit is extended five years until 2021.

Votes on Final Passage: