FINAL BILL REPORT
2SHB 1835
C 42 L 88
BYHouse Committee on Ways & Means (originally sponsored by Representatives Grant, Hankins, Jesernig, Brooks, Meyers, Ballard, Hine, Rayburn, Sayan, Silver, Appelwick, Moyer, Ebersole, Nealey, Dellwo, Miller, Jacobsen, S. Wilson, Grimm, Chandler, Fuhrman, Schoon, B. Williams, Ferguson, Doty, Day, Basich, P. King, Anderson, Pruitt and Todd)
Providing for economic diversification in the Tri-Cities.
House Committe on Trade & Economic Development
Senate Committee on Economic Development & Labor
SYNOPSIS AS ENACTED
BACKGROUND:
The Hanford Nuclear Reactor was originally scheduled to cease plutonium production in the mid-1990s. The United States Department of Energy announced early in 1988 that the facility will not be restarted. The Department of Energy predicts that 8,000 jobs will be lost in Washington state by 1991 as a result of the closure of the reactor, and the total employment loss is expected to be 13,800 jobs by 1996. Employment at Hanford accounts for approximately 27 percent of all non-farm employment, 45 percent of the non-farm payroll and 75 percent of the industrial labor base of the Tri-Cities area.
The Legislature directed the state Department of Trade and Economic Development to undertake a study of economic diversification options for the Tri-Cities area in 1987, focusing on methods of utilizing the Tri-Cities economic development assets to diversify the regional economy. The study was also to examine potential markets for Tri-Cities services and products, the transfer of new technologies to commercial production, and higher education capacity in the region.
SUMMARY:
The Department of Trade and Economic Development is directed to undertake economic diversification activities in the Tri- Cities area and to designate a project manager to coordinate such activities. A 15-member Tri-Cities diversification board, appointed by the governor, is established to review diversification proposals presented by the department.
The Department of Trade and Economic Development is responsible for oversight and implementation of state activities to encourage the diversification of the Tri-Cities economy. The department is also directed to act as liaison with local governments, the federal government and financial institutions to address the financing and other needs in the region.
The department is directed to contract with local organizations or agencies for economic diversification activities, after consultation with the diversification board, such as a regional export program, a local import substitution program, regional business and job retention efforts, enhancement of small business incubator activities, and targeted business recruiting and business development efforts.
The Department of Trade and Economic Development is directed to contract with local organizations, after consultation with the diversification board, to establish a regional agribusiness development program.
The Department of Community Development is directed to enhance its services and programs in the Tri-Cities region.
Funds are appropriated to Washington State University for new faculty at the Tri-Cities University Center in the field of business development and agribusiness development and additional funds are appropriated to the university for faculty and equipment for wine industry research and for a high-capacity telecommunications link between the Tri-Cities University Center and Washington State University.
The Department of Trade and Economic Development is directed to undertake a study through the Tri-Cities University Center on the feasibility of using heat generated by existing nuclear facilities for commercial industrial applications. State funds are not to exceed one-third of the federal funds provided for the study.
The Employment Security Department is directed to provide enhanced retraining, support services and job search assistance to dislocated workers in the Tri-Cities region. The department is also directed to subcontract with local organizations to provide expanded services to dislocated workers, older unemployed workers and the long-term unemployed, including credit counseling, social services, counseling and medical services.
Liability for civil damages of persons assisting in development of local hazardous materials incidents response plans is limited to cases of gross negligence or wilful misconduct.
Eligibility for the distressed area sales tax deferral program, the distressed area business and occupation tax credit program, and the Development Loan Fund are expanded to permit their continued use in the entire Tri-Cities area. The expansion of eligibility for these programs is limited to applications filed prior to April 30, 1989.
VOTES ON FINAL PASSAGE:
House 95 2
Senate 46 1(Senate amended)
House (House refused to concur)
Free Conference Committee
Senate 48 0
House 95 2
EFFECTIVE:March 15, 1988