HOUSE BILL REPORT

HB 867

BYRepresentatives Wang, Patrick, R. King, Sayan, Grimm, Walker, Locke, Winsley, P. King and Wineberry

Establishing a business assistance and reemployment demonstration project.

House Committe on Commerce & Labor

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (11)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, R. King, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 12, 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 worker and employers and comprehensive programs for retaining businesses and developing employment opportunities.

SUMMARY:

SUBSTITUTE BILL:  The Employment Security Department is directed to establish a demonstration project to encourage the formation of labor-management committees to assist with local business and job retention programs.

The Employment Security Department is directed to implement a reemployment bonus demonstration project 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 Employment Security Department is directed to develop an evaluation model to study the performance of the demonstration projects in retaining businesses, encouraging business growth and returning workers to employment.  A report on the results of the project is to be made to the legislature at the start of the 1989 legislative session.

The demonstration project terminates June 30, 1989, unless extended by law.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Provisions are deleted from the original bill that required the Employment Security Department to establish a business and job retention program at two or more locations in the state and to coordinate a business and worker assistance program through a rapid response team.

Appropriation:  $150,000 to the Employment Security Department.

Fiscal Note:    Requested February 13, 1987.

House Committee ‑ Testified For:     Susan Dunn and Kathy Countryman, Employment Security Department.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     These demonstration programs would create projects that fall within the mission of the Employment Security Department. The reemployment bonus project would provide an opportunity for the state to analyze some of the factors involved in creating incentives to return workers to employment.

House Committee - Testimony Against: None Presented.