SENATE BILL REPORT

                                    SB 6350

          AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 11, 1992

Brief Description:  Providing for aircraft maintenance vocational training.

SPONSORS: Senators West, A. Smith, Saling, Stratton, M. Kreidler, Hayner, Owen, von Reichbauer, McCaslin, Pelz, Patterson, McMullen, Gaspard, Niemi, Erwin, Thorsness, Anderson, Nelson, Amondson, Oke, Moore, Sellar, Vognild, Jesernig, Bailey, Craswell, Metcalf, Madsen, Barr, Bauer and Roach

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass and be referred to Committee on Ways & Means. 

      Signed by Senators Matson, Chairman; Anderson, Vice Chairman; Bluechel, McDonald, McMullen, Moore, Murray, and Skratek.

Staff:  Catherine Mele (786‑7457)

Hearing Dates: February 6, 1992; February 7, 1992

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 6350 be substituted therefor, and the substitute bill do pass. 

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Gaspard, M. Kreidler, Matson, Metcalf, Murray, Newhouse, Owen, Rinehart, Saling, L. Smith, West, Williams, and Wojahn.

Staff:  Linda Brownell (786-7715)

Hearing Dates:February 10, 1992; February 11, 1992

BACKGROUND:

Several commercial airlines are considering establishing a major aircraft maintenance facility in Washington State.  It has been suggested that additional vocational training at the community and technical colleges would provide the skilled work force necessary for a new commercial aircraft maintenance facility. 

SUMMARY:

An appropriation of $500,000 from the general fund is given to the Department of Trade and Economic Development for the biennium ending June 30, 1993.  For the biennium ending June 30 of 1995, $1 million is appropriated.  The monies appropriated are allocated by the Department of Trade and Economic Development to a state technical or community college for a vocational training program in commercial aircraft maintenance.

The Department of Trade and Economic Development may not use the appropriated monies for administrative expenses or overhead.  There are no appropriations of any monies unless a commercial airline establishes a new maintenance facility in Washington State.  If a commercial aircraft maintenance facility is not established, the appropriation section lapses.

EFFECT OF PROPOSED SUBSTITUTE:

The appropriation to the Department of Trade and Economic Development of $500,000 is removed.  The Work Force Training and Education Coordination Board is directed to allocate existing funds from the job skills program in the amount of $500,000 this biennium and $1 million next biennium to a vocational or community college for the aircraft maintenance program.  A deadline of January 1, 1993 is set for commitment by an airline to establish a new facility in Washington or the funds may be allocated to other job skills projects.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

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

TESTIMONY FOR (Commerce & Labor):

A new commercial airline maintenance facility would provide more jobs, growth, and economic development.  Washington is competing for this facility against other states that can offer financial incentives to attract a new airline.  Washington's Constitution restricts the state from offering similar financial incentives.  Establishing a new training facility would provide Washington with the incentive needed to attract a commercial airline. 

TESTIMONY AGAINST (Commerce & Labor):  None

TESTIFIED (Commerce & Labor):  Terrance Brown, Community Colleges, Economic Development Council (pro); John Morrison, Spokane Airport (pro); Katie Reikofski, Spokane City Counsel (pro); Roy Koegen, Perkins Coie (pro); Collins Sprague, WA Water and Power (pro); Jim Halstron, Momentum (pro)

TESTIMONY FOR (Ways & Means):

This bill would increase employment opportunities by providing 2,000 new jobs in Washington, bring $60 million in maintenance facilities and generating $14.8 million in retail sales.

TESTIMONY AGAINST (Ways & Means):  None

TESTIFIED (Ways & Means):  PRO:  Jim Halstron, Momentum of Spokane; Collins Sprague, Washington Water Power; Nancy Bratton, Seattle Chamber of Commerce