BILL REQ. #:  S-1035.1 

READ FIRST TIME 02/14/13.   

     AN ACT Relating to the job skills program; amending RCW 28C.04.420; reenacting and amending RCW 28C.04.410 and 43.79A.040; and adding a new section to chapter 28C.04 RCW.

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

Sec. 1   RCW 28C.04.420 and 2009 c 554 s 2 are each amended to read as follows:
     The college board ((may, subject to appropriation from the legislature or from funds made available from any other public or private source and)) shall, pursuant to rules adopted by the college board, and with the advice of the workforce training customer advisory committee established in RCW 28C.04.390, use funds from the job skills program account and the job skills program trust account in section 2 of this act to provide job skills grants to educational institutions. The job skills grants shall be used exclusively for programs which are consistent with the job skills program. The college board shall work in collaboration with the workforce training customer advisory committee established in RCW 28C.04.390 to assure that:
     (1) The program is within the scope of the job skills program under this chapter and may reasonably be expected to succeed and thereby increase employment within the state;
     (2) Provision has been made to use any available alternative funding from local, state, and federal sources;
     (3) The job skills grant will only be used to cover the costs associated with the program;
     (4) The program will not unnecessarily duplicate existing programs and could not be provided by another educational institution more effectively or efficiently;
     (5) The program involves an area of skills training and education for which there is a demonstrable need;
     (6) The applicant has made provisions for the use of existing federal and state resources for student financial assistance;
     (7) The job skills grant is essential to the success of the program as the resources of the applicant are inadequate to attract the technical assistance and financial support necessary for the program from business and industry;
     (8) The program represents a collaborative partnership between business, industry, labor, educational institutions, and other partners, as appropriate;
     (9)(a) The commitment of financial support from businesses ((and industry)) with an annual gross business income of five hundred thousand dollars or more shall be equal to or greater than the amount of the requested job skills grant;
     (b) The commitment of financial support from businesses with an annual gross business income of less than five hundred thousand dollars shall be equal to the trainees' salaries and benefits while in training;
     (c) The annual gross business income shall be the income reported to the department of revenue for the previous fiscal year;
     (10) The job skills program gives priority to applications:
     (a) Proposing training that ((leads to transferable skills that are interchangeable among different jobs, employers, or workplaces)) provides college credit or leads to a recognized industry credential;
     (b) From firms in strategic industry clusters as identified by the state or local areas;
     (c) Proposing coordination with other cluster-based programs or initiatives including, but not limited to, industry skill panels, centers of excellence, innovation partnership zones, state-supported cluster growth grants, and local cluster-based economic development initiatives;
     (d) ((Proposing industry-based credentialing)) From consortia of colleges;
     (e) From consortia of firms; and
     (((e))) (f) Proposing increased capacity for educational institutions that can be made available to industry and students beyond the grant recipients;
     (11) Binding commitments have been made to the college board by the applicant for adequate reporting of information and data regarding the program to the college board, particularly information concerning the recruitment and employment of trainees and students, and including a requirement for an annual or other periodic audit of the books of the applicant directly related to the program, and for such control on the part of the college board as it considers prudent over the management of the program, so as to protect the use of public funds, including, in the discretion of the ((commission)) college board and without limitation, right of access to financial and other records of the applicant directly related to the programs; and
     (12) A provision has been made by the applicant to work, in cooperation with the employment security department, to identify and screen potential trainees, and that provision has been made by the applicant for the participation as trainees of low-income persons including temporary assistance for needy families recipients, dislocated workers, and persons from minority and economically disadvantaged groups to participate in the program.
     Beginning ((October 1, 1999)) January 1, 2014, and every ((two)) year((s)) thereafter, the college board shall provide the legislature and the governor with a report describing the activities and outcomes of the state job skills program.

NEW SECTION.  Sec. 2   A new section is added to chapter 28C.04 RCW to read as follows:
     (1) The job skills program account is created in the state treasury. All receipts from appropriations must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the job skills program in this chapter and for college board administrative expenses for the customized training program under RCW 28B.67.020.
     (2) The job skills program trust account is created in the custody of the state treasurer. All receipts from gifts, grants, or endowments from public and private sources that are made from time to time, in trust or otherwise, must be deposited into the account. Expenditures from the account may be used only for the job skills program under this chapter. Only the executive director of the college board or the executive director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 3   RCW 28C.04.410 and 2009 c 554 s 1 are each reenacted and amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 28C.04.390 ((and)), 28C.04.420, and section 2 of this act.
     (1) "Applicant" means an educational institution which has made application for a job skills grant under RCW 28C.04.390 and 28C.04.420.
     (2) "Business and industry" means a private corporation, institution, firm, person, group, or association concerned with commerce, trades, manufacturing, or the provision of services within the state, or a public or nonprofit hospital licensed by the department of social and health services.
     (3) "College board" means the state board for community and technical colleges under chapter 28B.50 RCW.
     (4) "Dislocated worker" means an individual who meets the definition of dislocated worker contained in P.L. 105-220, Sec. 101 on July 25, 1999.
     (5) "Educational institution" means a public secondary or postsecondary institution, an independent institution, or a private career school or college within the state authorized by law to provide a program of skills training or education beyond the secondary school level. Any educational institution receiving a job skills grant under RCW 28C.04.420 shall be free of sectarian control or influence as set forth in Article IX, section 4 of the state Constitution.
     (6) "Equipment" means tangible personal property which will further the objectives of the supported program and for which a definite value and evidence in support of the value have been provided by the donor.
     (7) "Financial support" means any thing of value which is contributed by business, industry, and others to an educational institution which is reasonably calculated to support directly the development and expansion of a particular program under RCW 28C.04.390 and 28C.04.420 and represents an addition to any financial support previously or customarily provided to such educational institutions by the donor. "Financial support" includes, but is not limited to, funds, equipment, facilities, faculty, and scholarships for matriculating students and trainees.
     (8) "Job skills grant" means funding that is provided to an educational institution by the college board for the development or significant expansion of a program under RCW 28C.04.390 and 28C.04.420.
     (9) "Job skills program" means a program of skills training or education separate from and in addition to existing vocational education programs and which:
     (a) Provides short-term training which has been designated for specific industries;
     (b) Provides training for prospective employees before a new plant opens or when existing industry expands;
     (c) Includes training and retraining for workers already employed by an existing industry or business where necessary to avoid dislocation or where upgrading of existing employees would create new vacancies for unemployed persons;
     (d) Serves areas with high concentrations of economically disadvantaged persons and high unemployment;
     (e) Promotes the growth of industry clusters;
     (f) Serves areas where there is a shortage of skilled labor to meet job demands; or
     (g) Promotes the location of new industry in areas affected by economic dislocation.
     (10) "Technical assistance" means professional and any other assistance provided by business and industry to an educational institution, which is reasonably calculated to support directly the development and expansion of a particular program and which represents an addition to any technical assistance previously or customarily provided to the educational institutions by the donor.

Sec. 4   RCW 43.79A.040 and 2012 c 198 s 8, 2012 c 196 s 6, 2012 c 187 s 13, and 2012 c 114 s 3 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury, and may be commingled with moneys in the state treasury for cash management and cash balance purposes.
     (2) All income received from investment of the treasurer's trust fund must be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments must occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer must distribute the earnings credited to the investment income account to the state general fund except under (b), (c), and (d) of this subsection.
     (b) The following accounts and funds must receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the Washington advanced college tuition payment program account, the accessible communities account, the community and technical college innovation account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the county enhanced 911 excise tax account, the toll collection account, the developmental disabilities endowment trust fund, the energy account, the fair fund, the family leave insurance account, the food animal veterinarian conditional scholarship account, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the GET ready for math and science scholarship account, the Washington global health technologies and product development account, the grain inspection revolving fund, the industrial insurance rainy day fund, the job skills program trust account, the juvenile accountability incentive account, the law enforcement officers' and firefighters' plan 2 expense fund, the local tourism promotion account, the multiagency permitting team account, the pilotage account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund and breeder awards account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, the Washington state heritage center account, ((and)) the reduced cigarette ignition propensity account, the center for childhood deafness and hearing loss account, ((and)) the school for the blind account, the Millersylvania park trust fund, the public employees' and retirees' insurance reserve fund, and the radiation perpetual maintenance fund.
     (c) The following accounts and funds must receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right-of-way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (d) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the custody of the state treasurer that deposits funds into a fund or account in the custody of the state treasurer pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.