AN ACT Relating to economic development; adding a new chapter to Title 43 RCW; adding a new section to chapter 41.06 RCW; making an appropriation; 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 and is not expected to substantially decline in the near future. 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 has not had a consistent economic development policy, and has lacked innovation in its attempt to resolve the economic problems which 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 the competitive position of our key businesses and industries. The focus should be to identify efficient and environmentally sound investment opportunities for existing or potential businesses. Businesses which trade goods and services outside of our state constitute one of our most valuable resources to promote long-term economic development and job creation. 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 of creating a long-term economic development strategy for the state.

NEW SECTION. Sec. 3. The board shall be composed primarily of citizens from the private sector who are actively engaged in organizations and businesses which support economic expansion and job creation. The governor shall appoint representatives of various geographic regions; of small, medium, and large businesses; of organized labor; of education; and of economic development professionals. The director of commerce and economic development or its successor agency, the director of financial management, and the director of the department of community development shall serve on the board. The majority and minority leaders of the senate and of the house of representatives shall be invited to nominate equal numbers of legislators to sit on the board as voting members. The governor shall serve as one co-chairperson and shall designate a co-chairperson of the board from among the citizen members of the board. The board shall consist of at least twenty-one members. Members shall serve four-year terms on an appointed and staggered basis. Members are subject to dismissal by either chairperson due to lack of attendance or contribution. The position of a legislative member shall become vacant if the member ceases to be a member of the house of representatives or the senate.

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 strategic plan to spur new job creation 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 Washington's comparative advantages;

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

(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 barriers to the development process; and

(6) Increasing the effectiveness of existing economic development programs and agencies.

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, detailing the strength and weaknesses of the state economy and priorities for economic revitalization;

(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 June 30, 1986. The final report shall be submitted on or before December 31, 1986;

(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 meet at such times and places as it may deem proper;

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

(11) 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;

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

(13) 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 its 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 5 of this act.

NEW SECTION. Sec. 8. Sections 1 through 5 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 9. To carry out this act, there is appropriated to the Washington state economic development board from the general fund for the biennium ending June 30, 1987, the sum of two hundred seventy-five thousand dollars, or so much thereof as may be necessary. This sum shall be matched by an equal amount of private sector funds, whether through cash or in-kind contributions.

NEW SECTION. Sec. 10. 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. 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 immediately.