HOUSE BILL REPORT

                 SHB 1857

                       As Passed House

                       March 15, 1991

Title:  An act relating to the hardwood commission.

Brief Description:  Revising provisions relating to the hardwood commission.

Sponsor(s):  By House Committee on Trade & Economic Development (originally sponsored by Representatives Riley, Jones, Belcher, Wilson, Spanel and Sheldon; by request of Washington Hardwoods Commission).

Brief History:

  Reported by House Committee on:

Trade & Economic Development, February 28, 1991, DPS;

Revenue, March 9, 1991, DPS(TED);

Passed House, March 15, 1991, 82-16.

HOUSE COMMITTEE ON

TRADE & ECONOMIC DEVELOPMENT

Majority Report: That Substitute House Bill No. 1857 be substituted therefor, and the substitute bill do pass.  Signed by 11 members:  Representatives Cantwell, Chair; Sheldon, Vice Chair; Forner, Ranking Minority Member; Betrozoff, Assistant Ranking Minority Member; Ferguson; Kremen; Ludwig; Moyer; Rasmussen; Riley; and Roland.

Staff:  Bill Watterson  (786-7340).

HOUSE COMMITTEE ON

REVENUE

Majority Report: The substitute bill by Committee on Trade & Economic Development be substituted therefor and the substitute bill do pass.  Signed by 14 members:  Representatives Wang, Chair; Fraser, Vice Chair; Holland, Ranking Minority Member; Wynne, Assistant Ranking Minority Member; Appelwick; Belcher; Brumsickle; Day; Leonard; Morris; Morton; Phillips; Rust; and Silver.

Staff:  Greg Pierce (786-7102).

Background:  The Washington Hardwoods Commission was established in 1990 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 hardwood, recommend a tax program to help stabilize existing firms and attract new firms, develop programs that protect the environment, and develop financial assistance programs.

The forest products industry is a key part of Washington's economy.  Approximately one-fifth of the manufacturing jobs in the state are forest products related.

Historically, this industry has relied on softwood timber as its primary source of raw materials.  Hardwood timber, such as alder, has been used less frequently as a raw material.

Summary of Bill:  Members of the Washington Hardwoods Commission shall be compensated at the standard rate for members of a class three part-time commission.

The commission levies an assessment on hardwood processors based on the processor's production, in thousands of tons, per calendar quarter.  Assessments are a personal debt of every person assessed; collection methods are provided.

Fiscal Note:  Requested February 28, 1991.

Effective Date:  The bill contains an emergency clause and takes effect immediately.

Testimony For:  (Trade & Economic Development): Collection of assessments on hardwood production will allow the Hardwoods Commission to assist in the retention, expansion, and attraction of hardwood-related industries.

(Revenue): Same as Committee on Trade & Economic Development.

Testimony Against:  (Trade & Economic Development): None.

(Revenue): None.

Witnesses:  (Trade & Economic Development): Kay Eichinger, Department of Trade and Economic Development (in favor of bill with amendment);  Terry Raettig, Governor's Timber Team (in favor of bill with amendment); and Richard W. Junk, Washington Forest Protection Association (in favor of bill with amendment).

(Revenue): Kay Eichinger, DTED (pro); and Rich Nafziger, Governor's Office (pro).