6479-S.E AMH TED H5285.1
ESSB 6479 - H COMM AMD
By Committee on Trade & Economic Development
Strike everything after the enacting clause and insert the following:
"Sec. 1. 1994 c 302 s 1 (uncodified) is amended to read as follows:
(1) The legislature finds that when public funds are used to support private enterprise, the public may gain through the creation of new jobs, the diversification of the economy, or higher quality jobs for existing workers. The legislature further finds that such returns on public investments are not automatic and that tax-based incentives, in particular, may result in a greater tax burden on businesses and individuals that are not eligible for the public support.
(2) It is the purpose of this chapter to:
(a) Create an
advisory committee comprised of representatives of business, labor, and state
agencies to collect and analyze information sufficient to allow the
legislature and the executive branch to make informed decisions about the
merits of ((existing)) tax-based incentives and loan programs intended
to encourage economic development, job creation, or job retention in the
state; and
(b) Recommend to the legislature changes to the state's economic development assistance programs to ensure that recipients are meeting the goals of job creation or retention.
NEW SECTION. Sec. 2. (1)(a) The business assistance advisory committee is created, which shall consist of eleven members appointed by the governor as follows:
(i) Three members of the committee must represent labor. The members representing labor may be appointed from a list of names submitted to the governor by an organization, state-wide in scope, that through its affiliates embraces a cross section and a majority of the organized labor of the state.
(ii) Three members must represent business. The members representing business may be appointed from a list of names submitted to the governor by a recognized state-wide organization of employers representing a majority of employers.
(iii) Five members must represent agencies with one member from each of the following: The department of community, trade, and economic development; the department of revenue; the work force training and education coordinating board; the office of financial management; and the labor market and economic analysis section of the employment security department.
(b) The members of the advisory committee shall be appointed by September 1, 1996.
(2) The advisory committee shall analyze the effect of all state assistance to private business. The advisory committee shall:
(a) Inventory all state assistance programs to business that are administered by state agencies;
(b) Identify the type of assistance provided to businesses by type and location of business;
(c) Identify the number of jobs created or retained, by assistance program, and typical wages paid for the new or retained jobs;
(d) Evaluate the effectiveness of all state assistance programs in meeting the goal of economic development, job creation, or job retention; and
(e) Review economic development assistance programs in other states and countries and compare their effectiveness in meeting their stated goals with the stated goals of similar state assistance programs.
(3) The department of community, trade, and economic development and the department of revenue shall provide staff support to the advisory committee.
(4) The advisory committee shall present a final report of the findings of the study and its recommendations to the appropriate committees of the legislature no later than December 1, 1997.
(5) As used in this section, "assistance" means a grant, loan, bond, tax deferral, or tax abatement program administered by the state in which the business receives assistance of more than twenty-five thousand dollars."
ESSB 6479 - H COMM AMD
By Committee on Trade & Economic Development
On page 1, line 2 of the title, after "programs;" strike the remainder of the title and insert "amending 1994 c 302 s 1 (uncodified); and creating a new section."
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