HOUSE BILL REPORT

EHB 2059

BYRepresentatives Sayan, Cantwell, Basich, Van Luven, Jones, Dorn, Ferguson, Rayburn and P. King 

Creating the Washington hardwoods commission.

House Staff:Charlie Gavigan (786-7340)

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member, G. Fisher, Kremen, Moyer, Raiter, Rasmussen, Rector, Schoon, Tate and Youngsman.

House Staff:Charlie Gavigan (786-7340)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

JANUARY 26, 1990

BACKGROUND:

The forest products industry remains a key part of Washington's economy, providing about one fifth of the manufacturing jobs in the state and contributing to many jobs in other areas of the economy. This industry has traditionally relied on softwood timber, such as Douglas fir trees.  Hardwood timber, such as alder, has been a much smaller part of the economy than softwood, with a 10 year annual average of 231 million board feet harvested in Washington state in hardwoods and an annual average of six billion board feet harvested in softwoods. However while the softwood inventories are declining, hardwood inventories have been increasing.

The inventory of softwood timber in Washington in 1980 was 236 billion board feet. The inventory of hardwood timber in Washington in 1980 was 18 billion board feet.

SUMMARY:

SUBSTITUTE BILL:  The Washington Hardwoods Commission is created.  The commission has seven members, all representatives of the hardwood industry. The governor will appoint the members to staggered terms.

The commission is to assist in the retention, expansion, and attraction of hardwood-related industries.  The commission is to coordinate state and federal agencies, industry organizations, and higher education institutions.  The commission has the power to develop products and markets for hardwoods, recommend a tax program to help stabilize existing firms and attract new firms, develop programs that protect the environment, and develop financial assistance programs.

Funding for the hardwoods commission is through an assessment levied on harvesters of hardwood by the commission.  The commission must also establish a method and rate of assessment on processors by December 31, 1990.  The commission must also develop a workplan.  A report to the Natural Resource Committees in the legislature must be made by the commission regarding the assessment and the workplan by December 31, 1990.

SUBSTITUTE BILL COMPARED TO ENGROSSED BILL:  The provision that specified the amount of the assessment on hardwood harvesters to be collected by the Department of Revenue is deleted.  The hardwood commission is to set the method and rate of assessment by December 31, 1990 and report to the Natural Resource Committees in the legislature.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Rich Nafziger, Office of the Governor; Lawrence Johnson, Western Hardwoods Association; Bob Platz, Western Forest Industry; and Warren Bailey, Cascade Hardwood Incorporated.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The hardwood industry can have a much greater economic impact if it is better organized.  Washington needs a hardwoods commission to foster development of the industry, to educate the public as to the benefits of hardwoods, and to improve markets for hardwood products.  The commission should determine the method and rate of assessment for the industry as provided for in the substitute bill.

House Committee - Testimony Against:      None.

VOTE ON FINAL PASSAGE:

      Yeas 95; Excused 3 - 1989.

Excused:    Representatives Hankins, Nealey and Todd