HOUSE BILL REPORT

                  HB 2421

             As Reported By House Committee On:

            Trade, Economic Development & Housing

Title:  An act relating to the Center for International Trade in Forest Products.

Brief Description:  Revising provisions relating to the Center for International Trade in Forest Products.

Sponsors:  Representatives Wineberry, Shin, Schoesler, Ogden, Pruitt, Sheldon, Finkbeiner, Wood, Casada, Morris and Campbell.

Brief History:

Reported by House Committee on:

Trade, Economic Development & Housing, January 27, 1994, DP.

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

Majority Report:  Do pass.  Signed by 12 members:  Representatives Wineberry, Chair; Shin, Vice Chair; Schoesler, Ranking Minority Member; Backlund; Campbell; Casada; Conway; Quall; Sheldon; Springer; Valle; and Wood.

Minority Report:  Without recommendation.  Signed by 1 member:  Representative Chandler, Assistant Ranking Minority Member.

Staff:  Bill Lynch (786-7092).

Background:  The Center for International Trade in Forest Products (CINTRAFOR) was permanently created by the Legislature in 1985.  The center is established at the University of Washington in the College of Forest Resources and is administered by a director appointed by the dean of that college.

CINTRAFOR has an executive policy board consisting of representatives of timber companies, secondary manufacturing businesses and state officials.  The board is responsible for establishing priorities for the center.  CINTRAFOR is funded from a combination of state, federal and private sector funds.  The center also receives some funds from the University of Washington.

The center is required to report biennially to the Governor and Legislature on its success in obtaining funding from nonstate sources.

CINTRAFOR's responsibilities include:  assisting in the development of research for developing policies to expand forest-based international trade, including a major focus on secondary manufacturing; developing technology for manufactured products that will meet the needs of international customers; coordinating, developing and disseminating market and technical information relevant to international trade in forest products, especially secondary manufacturing; and providing for public dissemination of research through technical workshops, short courses, international and national symposia, publications and other means.

CINTRAFOR will sunset on June 30, 1994, unless it is reauthorized by the Legislature.

Summary of Bill:  The Center for International Trade in Forest Products (CINTRAFOR) is required to assist in the development of research and analysis on other factors critical to forest-based trade, including the quality and availability of raw wood resources.  CINTRAFOR must also assist in the development of commercialization support for manufactured products that will meet the needs of international customers and make the dissemination of information on secondary manufacturing a major focus.

The center must cooperate with private sector networks and marketing associations in disseminating its research and must make its research available to all groups including direct assistance groups.

CINTRAFOR is also required to offer periodic workshops on wood products manufacturing, wood technology and trade opportunities to community colleges and private educators and trainers. 

The State Board for Community and Technical Colleges is required to develop a curriculum in wood product manufacturing and wood technology in conjunction with CINTRAFOR, the Washington State University Wood Materials and Engineering Laboratory, and the Department of Community, Trade and Economic Development.  This curriculum must be made available in every college district that serves a timber impact area.

Representatives of larger integrated businesses, state and federal agencies, and community and technical colleges are added to CINTRAFOR's executive policy board.

CINTRAFOR is directed to report annually to the Governor and Legislature on its success in obtaining funding from nonstate sources and on its accomplishments in meeting its statutory responsibilities.

The sunset date for CINTRAFOR is extended from June 30, 1994, to June 30, 2000.

Fiscal Note:  Requested January 24, 1994.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  CINTRAFOR serves an important research component for international trade in forest products.  The bill reflects suggestions contained in the Legislative Budget Committee report.  Companies need to know where and how to market before a product can be marketed.  Recent successes by Washington businesses in Italy and Japan are largely attributable to information obtained from CINTRAFOR.

Testimony Against:  None.

Witnesses:   David Thorud, Dean of University of Washington College of Forest Resources (pro); Greg Shellberg, Evergreen Partnership (pro); and Ivan Easton, University of Washington professor (pro).