HOUSE BILL REPORT

HCR 4436

BYRepresentative Vekich

Establishing the joint select committee on the state's mature industries.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments. (16)

      Signed by Representatives Vekich, Chair;  Wineberry, Vice Chair; Beck, Braddock, Cantwell, Doty, Fox, Hargrove, Heavey, Holm, Kremen, McLean, Moyer, Rasmussen,  Schoon and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS REPORTED BY COMMITTEE ON TRADE &  ECONOMIC DEVELOPMENT

FEBRUARY 3, 1988

BACKGROUND:

The majority of the citizens of the state will continue to be employed in the coming decade at firms which are currently in operation in the state. During the 1980's, major industries in the state have experienced wrenching changes as a result of structural changes, cyclical downturns, shifting currency values, and the increased involvement of the state economy in the international economy.  These changes have resulted in devastating economic consequences for workers employed in these industries, and for communities dependent on them as major employers.  The industries most deeply affected have included forest products, shipbuilding, aluminum refining, steel, and fisheries.

While a variety of factors in the state economy have been examined in the past five years, the studies which have been performed have focused primarily on the key factors of production in the economy, including the state's capital markets, natural resources, labor force, and governmental programs for economic development.  A broad examination of the status of the state's mature industries, their prospects, and the related issues of training and adequacy of financing have not been undertaken as yet.  Studies which are currently underway include: the preparation of a state economic report by the Employment Security Department; the analysis of market trends and investment opportunities in a limited number of key industries by the Department of Trade and Economic Development; and the ongoing development of an economic development strategic plan for the state by the Economic Development Board.

SUMMARY:

BILL AS AMENDED:  The House Trade and Economic Development Committee and the Senate Economic Development and Labor Committee shall form a joint select committee to examine the condition of and prospects for the state's mature industries. The committee shall examine the economic problems these industries face, with an emphasis on mature industries in traded industries, as well as the impact of their condition on employees in mature industries and on local communities dependent upon them.

The joint select committee shall examine: industry structures; the competitive market position of state firms in mature industries; contracting and subcontracting relationships; trade associations and public and private programs providing training and technical support to these industries.  The joint select committee shall also examine the degree to which mature industries have been successful at identifying new markets and developing new product lines, at incorporating new technologies into production processes, and at developing cooperative labor-management relationships.  The committee shall examine the financing needs of mature industries and availability of capital to meet the needs of mature industries and the areas of the state dependent on them.

The joint select committee shall also examine the training resources for workers in these industries, and the availability of retraining and adjustment assistance available to workers affected by industrial shifts and market cycles.  The committee shall also examine methods of cooperative training and retraining, and the training needs of the state's workforce.  The committee shall examine the adequacy of state and local programs to identify firms at risk and to reduce the impacts of industrial change for employees and communities.  The joint select committee shall also examine the adequacy of training, technical assistance, and financing for local economic development groups.

Staff support shall be provided to the joint select committee as needed by the departments of Trade and Economic Development, Employment Security, and Community Development, by the Board for Vocational Education, by the Economic Development Board, and by the Center for International Trade in Forest Products at the University of Washington, and the International Marketing Program for Agricultural Commodities and Trade at Washington State University.  The joint select committee shall submit a report to the Legislature in January of 1989.

AMENDED BILL COMPARED TO ORIGINAL:  The examination of training and retraining needs is expanded to include methods of cooperative training and retraining, and the training needs of the state's workforce.  The joint select committee would also examine the adequacy of training, technical assistance, and financing for local economic development groups.

Fiscal Note:      Requested February 1, 1988.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.