HOUSE BILL REPORT
E2SSB 5441
As Amended by the House
BYSenate Committee on Ways & Means (originally sponsored by Senators DeJarnatt, Lee, Warnke, Smitherman, Newhouse, Tanner, McDonald and Rasmussen; by request of Joint Select Committee on Unemployment Compensation and Insurance)
Authorizing establishment of local reemployment centers.
House Committe on Commerce & Labor
Majority Report: Do pass with amendments. (8)
Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, Patrick, Sayan, C. Smith and Walker.
House Staff:Chris Cordes (786-7117)
Rereferred House Committee on Ways & Means/Appropriations
Majority Report: Do pass with amendments by Committee on Commerce and Labor and as further amended by Committee on Ways & Means/Appropriations. (13)
Signed by Representatives Locke, Chair; Belcher, Braddock, Brekke, Bristow, Ebersole, Grant, Grimm, Hine, McMullen, Peery, Sayan and Sprenkle.
Minority Report: Do not pass. (2)
Signed by Representatives McLean and Silver.
House Staff: Susan Kavanaugh (786-7145)
AS PASSED HOUSE APRIL 16, 1987
BACKGROUND:
The unemployment rate in the United States has continued at high rates over the last several years. A few states have established pilot projects to test innovative approaches to solving the problems caused by the continued high unemployment. Successful pilot projects have included incentives to workers and employers and comprehensive worker reemployment centers.
The Joint Select Committee on Unemployment Insurance and Compensation recommended that locally based and controlled reemployment centers be established that would be designed to aid the unemployed and their families during the transition back to work. The committee based this recommendation on the findings that the number of unemployment compensation exhaustees in the state more than doubled between 1979 and 1985. Many of the long-term unemployed have multiple emotional, medical, financial and family problems associated with their unemployment. These problems have been found to undermine the ability of many of the unemployed to conduct a sustained work search.
SUMMARY:
The Department of Community Development is directed to issue requests for proposals to nonprofit agencies and local government agencies to serve as local reemployment centers. As many as three centers may be established. Each reemployment center shall receive $90,000 per year for two years. Each center must provide matching funds equal to the state grant.
The local reemployment centers will provide direct and referral services to the unemployed, avoiding duplication of existing services. These services may include reemployment assistance, medical services, social services including marital counseling, psychotherapy, mortgage foreclosure and utility problem counseling, drug and alcohol abuse, credit counseling and other services as deemed appropriate. These services must be designed to supplement but not supplant the on-going efforts of the local job service centers operated by the Employment Security Department.
The Employment Security Department and the Department of Social and Health Services are directed to locate at least one employee at each center. The confidentiality of client-provider relations is to be maintained in all reports to the Department of Community Development.
The Employment Security Department is authorized to implement a reemployment bonus demonstration project in one or more of the local reemployment centers to provide reemployment incentives to qualified unemployment compensation claimants, if federal and private funding is available. The reemployment bonus program would provide a lump sum payment to qualified workers who return to employment prior to established time limits and retain that job for four months. The department is directed to report to the governor and the legislature on the effectiveness of the project. The project terminates June 30, 1989.
The Department of Community Development must report on the effectiveness of the reemployment centers to the legislature and governor prior to the start of the 1989 session.
Fiscal Note: Attached.
House Committee ‑ Testified For: (AMENDED BILL - Commerce & Labor) Jeff Johnson, Washington State Labor Council, Tom Croft, Office and Professional Employees International Union; Bob Dilger, State Building and Construction Trades Council; Graeme Sackrison, Employment Security Department; Ralph Burnett, David Pickerell; Katherine Briar, Chair, Joint Select Committee on Unemployment Compensation and Insurance.
(Ways & Means/Appropriations) None Presented.
House Committee - Testified Against: (AMENDED BILL - Commerce & Labor) Senator Cantu.
(Ways & Means/Appropriations) None Presented.
House Committee - Testimony For: (AMENDED BILL - Commerce & Labor) Worker centers are needed to assist workers to cope with the many stresses caused by long spells of unemployment.
(Ways & Means/Appropriations) None Presented.
House Committee - Testimony Against: (AMENDED BILL - Commerce & Labor) The centers should not provide services that are already available locally for unemployed workers.
(Ways & Means/Appropriations) None Presented.