SENATE BILL REPORT

                           SHB 1673

   AS REPORTED BY COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC

                  DEVELOPMENT, MARCH 24, 1993

Brief Description:  Creating the aerospace industry legislative task force.

SPONSORS: House Committee on Trade, Economic Development & Housing (originally sponsored by Representatives Roland, Eide, Vance, Brough, Campbell, Wang, Jacobsen, Patterson and Forner)

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

HOUSE COMMITTEE ON APPROPRIATIONS

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  Do pass as amended. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Jack Brummel (786‑7428)

Hearing Dates: March 19, 1993; March 24, 1993

BACKGROUND:

The aerospace industry is the major manufacturing industry in the state with 107,300 employees.  In 1992, direct aerospace employment accounted for 4.5 percent of the state's total employment, and 30 percent of the manufacturing employment.

Recently, the Boeing Company announced that reductions in the production levels of its passenger jets would result in workforce reductions of approximately 10,500 employees.  The reductions are scheduled for the second half of 1993.  It is expected that the majority of the reductions will occur in King and Snohomish counties.

SUMMARY:

The Aerospace Industry Legislative Task Force is established, composed of representatives of the Legislature, the Governor's office, the aerospace industry, chambers of commerce, aerospace unions, the county councils of King, Pierce, Snohomish, and Spokane counties, the Suburban Cities Association, and six members at-large. 

The task force is to make recommendations to the Legislature regarding: (a) short-term and long-term assistance for unemployed aerospace workers; and (b) long-term approaches to effectively diversify the region of the state most affected by fluctuations in the aerospace industry.

Staffing to the task force is to be provided by Senate and House of Representatives staff.

The task force shall submit a report summarizing its findings and recommendation to the appropriate legislative committees by December 31, 1993.

SUMMARY OF PROPOSED SENATE AMENDMENT:

An Aerospace Industry Subcommittee is created as part of the Executive Legislative Committee on Economic Development.  The functions and the composition of the subcommittee created by the amendment are the same as the task force created by the substitute House bill.

Appropriations:  none

Revenue:  none

Fiscal Note:  none requested

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

TESTIMONY FOR:

There could be thousands of jobs lost from small business because of the downturn in the aerospace industry.  We need a long-term solution and a plan for diversification.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Roland, prime sponsor