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               ENGROSSED SUBSTITUTE SENATE BILL 6219

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State of Washington      53rd Legislature     1994 Regular Session

 

By Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, Bluechel, Sheldon, Williams, Erwin, M. Rasmussen and Winsley)

 

Read first time 02/04/94.

 

Establishing the Washington manufacturing extension center.



    AN ACT Relating to establishing the Washington manufacturing extension center; adding a new section to chapter 43.330 RCW; adding a new section to chapter 28B.50 RCW; adding a new chapter to Title 24 RCW; and creating a new section.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    NEW SECTION.  Sec. 1.  (1) The legislature finds that:

    (a) To perform in the emerging global marketplace, Washington firms must master new technologies, production processes, and methods of work organization, all of which demand substantial improvement in worker skills;

    (b) Only through modernization can Washington firms both compete successfully in the market of the future and pay good wages;

    (c) Most Washington firms are not exposed to the potential benefits of flexible, high-performance work organizations demanding highly skilled workers;

    (d) There are few mechanisms for most firms to learn from the experiences of high performance firms and few models of inter-firm cooperation in modernization; and

    (e) To be effective, any program to improve the capability of Washington firms must reflect the specific needs and capabilities of those firms.

    (2) It is the intent of the legislature that the state increase its support for delivery of modernization services to targeted sectors of the Washington economy and leverage federal and private resources devoted to such efforts.  The purpose of this act is to assist in meeting the modernization needs of targeted industry sectors and to support the formation and growth of the Washington manufacturing extension center.  It is the further intent of the legislature that the Washington manufacturing extension center coordinate the delivery of modernization services and act as a catalyst to:

    (a) Increase inter-firm cooperation in important sectors of the state's economy;

    (b) Encourage small and medium-sized firms to aggregate their demand for training and other modernization services, thus driving down the cost to the individual firm and securing more effective services; and

    (c) Encourage large firms to support training consortia among their suppliers, share their training facilities, and validate the importance of high performance work organization and workplace learning as desirable supplier practices.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 43.330 RCW to read as follows:

    (1) In carrying out the targeted sector assistance authorized under RCW 43.330.090, the department shall work with the state board for community and technical colleges to assist in the operation of the Washington manufacturing extension center, consistent with this section and sections 3, 4, and 5 of this act.  The department shall:  (a) Assist the Washington center in applying for federal and private grants; (b) jointly conduct with the center a state-wide planning process to determine the modernization needs of key industry sectors and geographic regions and optimum mechanisms for delivering modernization services; and (c) contract with the center for delivery of client-directed problem-solving services that will assist the modernization efforts of firms, industry associations, networks, and consortiums in targeted sectors.

    (2) The department shall report annually on the effectiveness of the center to the governor and the appropriate legislative committees.

    (3) In carrying out the requirements of this section, the department shall make use of the expertise available to it as a member of USNet and available from other federally funded modernization projects in the state.

 

    NEW SECTION.  Sec. 3.  A private, not-for-profit corporation shall be organized with the assistance of the department of community, trade, and economic development and the state board for community and technical colleges, under Title 24 RCW and this section and sections 2, 4, and 5 this act, to be known as the Washington manufacturing extension center.  The mission of the center shall be to operate a modernization extension system, coordinate a network of public and private modernization resources, and stimulate the competitiveness of firms within targeted business sectors of Washington's economy.  The center shall jointly conduct with the department of community, trade, and economic development a state-wide planning process to determine the modernization needs of key industry sectors and geographic regions and optimum mechanisms for delivering modernization services.  The center shall initially target firms in the aerospace, electronics, and related industries in the central Puget Sound area of the state.

 

    NEW SECTION.  Sec. 4.  The Washington manufacturing extension center shall be a membership organization.  A majority of the board of directors of the Washington manufacturing extension center shall be composed of representatives of small and medium-sized manufacturing firms and industry associations, networks, or consortiums.  The board shall also include at least two members representing labor unions or labor councils and, as ex-officio members, the director of the department of community, trade, and economic development, the director of the state board for community and technical colleges, and the director of the work force training and education coordinating board.  The board of directors' authority includes, but is not limited to, the authority to:

    (1) Set membership dues for its members;

    (2) Charge fees for services, make and execute contracts with any individual, corporation, association, public agency, or any other entity, and employ all other legal instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this section and sections 2, 3, and 5 of this act;

    (3) Receive funds from federal, state, or local governments, private businesses, foundations, or any other source for purposes consistent with this section and sections 2, 3, and 5 of this act;

    (4) Develop policies, plans, and programs to assist in the modernization of businesses in targeted sectors of Washington's economy;

    (5) Provide information about the advantages of modernization and evaluative information on the modernization services available from the center to federal, state, and local governments, state colleges and universities, and private providers;

    (6) Collaborate with the Washington quality initiative in the development of manufacturing quality standards and quality certification programs;

    (7) Establish a training program for network brokers and other modernization service providers; and

    (8) Provide, either directly or through contracts, assistance to industry associations, networks, or consortiums, that would be of value to their member firms in:

    (a) Adopting advanced business management practices such as strategic planning and total quality management;

    (b) Developing mechanisms for inter-firm collaboration and cooperation;

    (c) Appraising, purchasing, installing, and effectively using equipment, technologies, and processes that improve the quality of goods and services and the productivity of the firm;

    (d) Improving human resource systems and work force training in a manner that moves firms toward flexible, high-performance work organizations;

    (e) Developing new products;

    (f) Market research, analysis, and development of new sales channels and export markets; and

    (g) Improving credit, capital management, and business finance skills.

 

    NEW SECTION.  Sec. 5.  A new section is added to chapter 28B.50 RCW to read as follows:

    The state board for community and technical colleges shall:  (1) Assist in the establishment of the Washington manufacturing extension center; and (2) develop  competency-based technical degree programs to be offered by community and technical colleges serving modernizing firms. The programs shall include quality management training and assist small and medium-sized firms in the development of work-based learning to enhance the skills and knowledge of workers performing modern work processes.  The programs shall prepare new entrants to technical and managerial jobs in manufacturing in ways that meet the needs of firms that have chosen to modernize via high-performance work organizations.

 

    NEW SECTION.  Sec. 6.  Sections 3 and 4 of this act shall constitute a new chapter in Title 24 RCW.

 


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