SENATE BILL REPORT

                           SHB 1808

   AS REPORTED BY COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC

                  DEVELOPMENT, APRIL 1, 1993

Brief Description:  Creating the Washington council on international trade.

SPONSORS: House Committee on Trade, Economic Development & Housing (originally sponsored by Representatives Shin, Mastin, Forner, Wineberry, Rayburn, Jones, Cothern, J. Kohl, Wang, Van Luven, Chandler and Linville)

HOUSE COMMITTEE ON TRADE, ECONOMIC DEVELOPMENT & HOUSING

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:  Midori Okazaki (786‑7444)

Hearing Dates: March 19, 1993; April 1, 1993

BACKGROUND:

Washington State has several programs to promote international trade and exporting by small businesses.  The Department of Trade and Economic Development and the Department of Agriculture are engaged in market development activities.  Other public programs which promote international trade include the Small Business Export Finance Assistance Center, Pacific Northwest Export Assistance Project, the International Marketing Program for Agricultural Commodities and Trade and the Center for International Trade in Forest Products.  There is no state entity that coordinates these international trade programs or facilitates a state trade strategy.

SUMMARY:

The Governor's Council on International Trade is established in the Governor's Office.  The council will consist of 20 members with representatives of the public and private sector institutions with an interest or engaged in international trade, and experts in foreign marketing and export financing.  Non-legislative members are appointed by the Governor.  The director of the Department of Trade and Economic Development will chair the council.

The council's duties include advising the executive branch on policies to enhance exports; reviewing current state export targeting efforts, assisting in the coordination of public export programs, identifying long-term trade issues that should be addressed by the state; and recommending strategies to increase the awareness of the importance of trade to the state.

The council must make a preliminary report to the Governor and the Legislature by June 1, 1994, and a final report by December 1, 1994.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The striking amendment creates the Council on International Trade as a subcommittee of the Executive-Legislative Committee on Economic Development created by SB 5300.  The council will consist of three members of the Executive-Legislative Committee and may include advisory members, including representatives of the ports, trade organizations, and businesses involved in trade and experts in export marketing and export financing.  The council will review past studies on the state's export efforts, develop a strategic  plan on international trade for consideration by the full Committee, and recommend legislative actions necessary to implement the plan and coordinate state export assistance efforts.

Revenue:  none

Appropriation:  none

Fiscal Note:  available

TESTIMONY FOR:

International trade is very important to the state's economy.  For every $500 million in exports the state generates, 12,500 new jobs are created.  Geographically the state is well positioned to maximize and increase its trade opportunities.  There is a need to consolidate the state's export programs.  Coordination of the state's export programs is particularly important in light of increasing budgetary constraints.  The council would be an important advocate in the executive branch for trade and would draw private sector expertise into the policymaking arena.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Paull Shin, prime sponsor;  Jeanne Cobb, Department of Trade and Economic Development; Art Schuenemann, Department of Agriculture; Ken Keach, Export Assistance Center