HOUSE BILL REPORT

2SSB 5002

BYSenate Committee on Ways & Means (originally sponsored by Senators Lee, McMullen and Conner)

Establishing the international policy advisory council.

House Committe on Trade & Economic Development

Majority Report:  Do pass with amendments.  (11)

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

House Staff:Charlie Gavigan (786-7340)

AS REPORTED BY COMMITTEE ON TRADE & ECONOMIC DEVELOPMENT

MARCH 29, 1989

BACKGROUND:

The International Trade Assistance Advisory Committee (ITAAC) was commissioned in 1987 to study ways the state can improve its trade promotion and assistance programs.  Several recommendations were made by ITAAC.  Two of the recommendations include: (1) establishing trade representation offices in appropriate foreign countries; and (2) establishing an executive advisory board to help the Department of Trade and Economic Development and the Department of Agriculture improve the coordination and increase the effectiveness of the state's efforts regarding international trade.

The Economic Development Board also made recommendations on improving international trade.  These recommendations focused on linking Washington State with world markets.

SUMMARY:

BILL AS AMENDED:  An International Trade Advisory Council is established in the Department of Trade and Economic Development. The council is comprised of 13 members: one representative each of the Department of Trade and Economic Development and the Department of Agriculture; one representative of each of the four caucuses in the legislature; six representatives of the private sector; and one representative of port districts.

The council is to: (1) advise the directors of the Department of Trade and Economic Development and the Department of Agriculture on international trade; (2) evaluate trade and trade development programs and make recommendations to the directors and the legislature; (3) assist in the departments' short-term and long-term planning in the area of international trade; (4) evaluate current exchange programs on education, science, technology, culture, and marketing and make recommendations to the legislature; and (5) advise the directors and the legislature, by December 15, 1989, regarding whether the state should establish overseas trade offices, where any recommended offices should be located, and how much any recommended offices will cost.

The council is to be staffed by the Department of Trade and Economic Development and the Department of Agriculture.  The council is to report to the legislature each December.

AMENDED BILL COMPARED TO SECOND SUBSTITUTE:  The amendment changes the International Policy Advisory Council, which focuses on establishing policy, to the International Trade Advisory Council, which focuses on advising state agencies and making recommendations to the legislature.  The amendment does not mandate the establishment of an overseas office in Europe as the Substitute Senate Bill does, but requires the council to recommend whether overseas offices are needed and what their priority and cost would be.  The amendment removes the requirement that the Legislative Budget Committee review the council prior to the sunset provision.

Fiscal Note:      Requested March 30, 1989.

House Committee ‑ Testified For:    Don White, Washington Public Ports Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    There is a need to better coordinate public and private efforts in international trade to make these efforts even more effective.  An advisory council can assist the Department of Trade and Economic Development and the Department of Agriculture in their efforts to improve Washington State's share of international trade, and can assist these agencies and the legislature in making significant policy decisions.

House Committee - Testimony Against:      None Presented.