HOUSE BILL REPORT

HB 1132

BYRepresentatives Jesernig, Hankins, Brooks, Vekich, Baugher, Todd, Jacobsen, Unsoeld, Cantwell, Sutherland, Grant, Hine, Rasmussen, Holm, Belcher, Wineberry, Hargrove, Beck, Schoon, Braddock, Amondson, McMullen, Moyer, Rayburn, Locke, Dellwo, Ebersole, Grimm, Prince, Miller, Nealey, P. King, Basich, Ferguson and Spanel

Providing for diversification of economy of Tri-Cities.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (18)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen, Schoon, B. Williams and J. Williams.

House Staff:Bonnie Austin (786-7107)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 4, 1987

BACKGROUND:

The Hanford Nuclear Reactor is scheduled to cease plutonium production in the mid-1990's.  The United States Department of Energy (DOE) issued a study predicting that 19,780 jobs would be lost state-wide in the event of a shut down.  According to the DOE study, Hanford jobs account for about 27 percent of all non-farm jobs in the Tri-Cities area and 45 percent of the non-farm payroll.  When employment in the service economy is excluded, Hanford workers account for about 75 percent of the Tri-Cities' industry labor base.

SUMMARY:

SUBSTITUTE BILL:  The Department of Trade and Economic Development, in conjunction with the Department of Community Development, shall study the state's role in the economic diversification of the economy of the Tri-Cities area.  The study shall focus on:  higher education capabilities, methods of utilizing the Tri-Cities economic development assets to diversify the economy, methods of addressing the economic development liabilities of the area, potential markets for Tri-Cities services and products, the availability of potential funding sources, federally-developed technology transfer to the commercial arena, and the development of a diversification plan.

Relevant local, state, and federal agencies shall be consulted in conducting the study. The department shall submit a final report to the appropriate standing committees of the legislature by January 1, 1988.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The department shall submit a final report to the legislature by January 1, 1988, rather than submitting preliminary findings by January 1, 1988 and submitting a final report by January 1, 1989.

Fiscal Note:      Requested March 3, 1987.

House Committee ‑ Testified For:    Representative Jesernig; Representative Hankins; Representative Brooks; Representative Grant.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The Nuclear Reactor at Hanford will shut down in the mid- 1990's and the result will be the direct loss of 6,300 jobs.  The Tri-Cities economy is overly dependent on defense production and needs to diversify its industrial base.  The potential for an excellent research and development center exists in the Tri- Cities because of the high percentage of Ph.D.'s per capita. Additionally, there is a strong agricultural base and an excellent transportation system already in existence which can be utilized for diversification.

House Committee - Testimony Against:      None Presented.