AN ACT Relating to economic development; adding a new chapter to Title 43 RCW; adding a new section to chapter 41.06 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature finds that unemployment remains persistently high in Washington. The economy, although diversifying, is shifting to a service-based economy and is still highly vulnerable to fluctuations in the national economy. In fact, unemployment has been consistently higher than the national average. Washington does not have a long-term economic development policy and has suffered from lack of a long-term plan in its attempt to resolve the economic problems which continue to plague the state.

Washington's economic development effort has not matched the scope of the problem. An essential first step is to establish a public and private consensus on a long-term economic development strategy which recognizes both the competitive position and needs of our key businesses and industries and the need to establish new businesses and industries. A unique partnership between the private and public sectors can attract new businesses and encourage greater investment in Washington state in businesses and industries which clearly relate to our comparative advantages.

NEW SECTION. Sec. 2. There is hereby established the Washington state economic development board, referred to in this chapter as the board. The board is charged with the responsibility for creating a long-term economic development strategy for the state.

NEW SECTION. Sec. 3. The board shall be composed of citizens from both the private and public sectors who are actively engaged in organizations and businesses which support economic expansion and job creation. The board shall be composed as follows:

(1) The governor;

(2) Four members of the legislature, including one member from each of the four largest caucuses in the legislature;

(3) One representative of a manufacturing company employing more than one thousand persons;

(4) One representative of a manufacturing company employing fewer than one hundred persons;

(5) One representative of a manufacturing company employing between one hundred and one thousand persons;

(6) One representative from organized labor;

(7) One representative from a major financial institution;

(8) One representative from agriculture;

(9) One representative from education;

(10) One representative from the tourism industry;

(11) One representative from the forest products industry;

(12) One economic development professional;

(13) One owner of a women-owned business enterprise certified under chapter 39.19 RCW;

(14) One owner of a minority-owned business enterprise certified under chapter 39.19 RCW; and

(15) Five citizens at large.

The director of commerce and economic development, the director of revenue, the director of financial management, and the director of community development shall serve as ex officio members of the board.

The governor shall, within fourteen days of the effective date of this act, appoint all members of the board, except those in subsection (2) of this section who shall be appointed by their respective caucuses. The first meeting of the board shall occur within thirty days of the effective date of this act.

The governor shall serve as one co-chairperson and shall designate another co-chairperson from among the citizen members of the board. Members shall serve four-year terms. Members are subject to dismissal by either chairperson due to the lack of attendance or contribution. The position of a legislative member shall become vacant if the member ceases to be a member of the legislature.

The commission shall include at least two representatives from each of the state's congressional districts.

The board shall meet regularly and shall create subcommittees as needed to deal with specific issues and concerns. Members shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060, except legislative members shall be reimbursed under RCW 44.04.120.

NEW SECTION. Sec. 4. The board shall develop a long-term economic development plan based on a strategic analysis. The objective of the plan shall be to spur new job creation and investment which is based on but not limited to the following goals:

(1) Developing a consistent and coordinated economic development strategy which is responsive to changing market opportunities and incorporates Washington's comparative advantages;

(2) Encouraging greater economic development capacity by increasing overall private sector investment in the state's economy;

(3) Maintaining the proper economic and environmental conditions and effective marketing strategy to enable businesses to locate in the state and to attract tourists;

(4) Facilitating economic activity and adjustment policies toward distressed communities and to enhance the employment opportunities of the economically disadvantaged;

(5) Improving the competitive environment by removing unnecessary regulations and other barriers to the development process; and

(6) Increasing the effectiveness and coordination of existing economic development programs and agencies, state and local.

NEW SECTION. Sec. 5. The board has the following responsibilities and powers:

(1) To secure and encourage substantial private sector, community, and citizen support in the analysis of economic development opportunities and development of specific recommendations for economic growth;

(2) To produce a report by January 10, 1986, specifically addressing the matters raised in section 4 (4) and (6) of this act and subsections (9) and (11) of this section, and a report on all items shall be produced by January 10, 1987, with continued analysis follow-up, amendment of the plan and oversight continuing thereafter;

(3) To identify and analyze key traded businesses and industries to determine their potential for expansion, diversification, and production of high value-added goods;

(4) To identify and research potential new industries which relate to the state's strategic economic advantages;

(5) To evaluate the performance of existing state economic development efforts for consistency, coordination, job creation, and long-term benefits to the state;

(6) To propose, along with other state, local, and private groups, new methods to increase public and private partnerships to foster economic development efforts;

(7) (a) To develop a long-term economic development strategy based on consensus goals and principles, an in-depth analysis of market opportunities, private sector support and investment, and specific private and public economic development measures which have a substantial potential to reduce unemployment;

(b) The economic development strategy shall include, but not be limited to: Trade in specific commodities; business attraction and marketing; research and development; industrial expansion and technology transfer; new product development incentives; education and training; methods to improve the state's business climate; and means to increase employment opportunities for economically disadvantaged areas and persons; and

(c) A preliminary report detailing the long-term development strategy shall be submitted to the governor and legislature on or before October 30, 1986. The final report shall be submitted on or before January 10, 1987;

(8) To study the key components of Washington's business climate as they relate to the long-term development strategy including, but not limited to, education and training, energy, research and development, capital, land, transportation, advanced communications, taxes, and regulations with an analysis of their linkages to the key traded sectors;

(9) To review the budget structure, professional staffing, program effectiveness, and organization of the department of commerce and economic development and advise the governor and legislature of suggested changes thereto;

(10) To review the various economic development policy recommendations made by other agencies or organizations and recommend to the governor and legislature those strategies, policies and programs it deems to be in the best interest of the state;

(11) To make specific recommendations for the establishment of public-private cooperative efforts in economic development and state-local cooperative efforts including but not limited to the need for establishing formal working relationships, whether by contract or otherwise, for purposes of engaging in joint, cooperative economic development activities;

(12) To review the administrative efforts of the department of commerce and economic development as well as other departments of state government which are designed to provide adequate developmental infrastructure and to make recommendations with regard to such additions and changes as it deems necessary and appropriate;

(13) To meet as such times and places as it may deem proper;

(14) To contract for services as it deems necessary in order to carry out its duties and responsibilities;

(15) To cooperate with and secure the cooperation of any department, agency, or instrumentality in state, county, and city government, and other associations affected by or concerned with the business of the commission;

(16) To assume legal, fiscal, and program responsibility for all services conducted by the board; and

(17) To accept gifts and grants upon such terms as the board may deem proper.

NEW SECTION. Sec. 6. The board may select and employ a full-time staff director, who shall receive no other salary, and shall not be otherwise gainfully employed. The board may also employ such staff as may be reasonably required to carry out is functions and shall fix their compensation.

NEW SECTION. Sec. 7. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions set forth in RCW 41.06.070, the provisions of this chapter shall not apply to the staff director and staff of the state economic development board authorized by section 6 of this act.

NEW SECTION. Sec. 8. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 9. Sections 1 through 6 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 10. The board shall implement this act only to the extent that funds are available.

NEW SECTION. Sec. 11. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1985.