SENATE BILL REPORT

SB 6790

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.

As Reported by Senate Committee On:

Economic Development, Trade & Innovation, February 3, 2010

Ways & Means, February 9, 2010

Title: An act relating to providing regional economic development services.

Brief Description: Providing regional economic development services.

Sponsors: Senator Kastama.

Brief History:

Committee Activity: Economic Development, Trade & Innovation: 2/01/10, 2/03/10 [DPS-WM].

Ways & Means: 2/09/10 [DP2S].

SENATE COMMITTEE ON ECONOMIC DEVELOPMENT, TRADE & INNOVATION

Majority Report: That Substitute Senate Bill No. 6790 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

Signed by Senators Kastama, Chair; Shin, Vice Chair; Zarelli, Ranking Minority Member; Delvin, Eide and McCaslin.

Staff: Jack Brummel (786-7428)

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: That Second Substitute Senate Bill No. 6790 be substituted therefor, and the second substitute bill do pass.

Signed by Senators Prentice, Chair; Tom, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Hewitt, Hobbs, Keiser, Kline, Kohl-Welles, McDermott, Murray, Oemig, Parlette, Pflug, Pridemore, Regala and Rockefeller.

Staff: Richard Ramsey (786-7412)

Background: The Legislature created the Innovation Partnership Zones (IPZ) program in 2007 to stimulate the growth of industry clusters and to build regional economies. IPZs bring together research, workforce training and globally-competitive companies in close geographic proximity for a cooperative, research-based effort that will lead to new commercially viable products and jobs. The Department of Commerce (Department) is to convene an annual information sharing event for IPZ administrators and other interested parties.

Summary of Bill (Recommended Second Substitute): In developing industry cluster-based strategies, the Department is to promote industry cluster involvement in IPZs and in the application process for designation of IPZs. The competitive cluster grant program is changed. It is to integrate sector-based and cluster-based strategies with the development of IPZs.

EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Recommended Second Substitute): The appropriation is removed and required activities of the Department are made subject to appropriation.

EFFECT OF CHANGES MADE BY ECONOMIC DEVELOPMENT, TRADE & INNOVATION COMMITTEE (Recommended First Substitute): The sections related to regional grants and ADOs are removed.

Appropriation: None.

Fiscal Note: Requested on January 29, 2010.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill (Economic Development, Trade & Innovation): CON: The section dealing with regional grants would cause counties and regions to compete with each other. The current system works well. ADO funding is through private-public partnerships. ADOs are jobs focused, and focus on solutions.

OTHER: Language regarding coordination of workforce and economic development planning efforts is better in the current code.

Persons Testifying (Economic Development, Trade & Innovation): CON: Matt Matayoshi, Mason County EDC.

OTHER: Bryan Wilson, Workforce Development Board.

Staff Summary of Public Testimony (Ways & Means): None.

Persons Testifying (Ways & Means): No one.