5932-S

AN ACT Relating to establishing the Washington alliance for manufacturing; 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; creating a new section; and making an appropriation.

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 global marketplace, smaller Washington firms must master advanced technologies and production processes, incorporate best management practices, and adopt modern business and work force approaches;

(b) Only through modernization can Washington firms both compete successfully and pay good wages;

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

(d) To be effective, modernization assistance must be industry driven.

(2) It is the intent of the legislature that the state increase its support for delivery of modernization services to Washington's smaller manufacturers and leverage federal and private resources devoted to such efforts. The purpose of this act is to assist in meeting the modernization needs of smaller manufacturers and to support the development and growth of a manufacturing extension system in Washington state.

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 serve as a partner in the operation of a manufacturing extension system that includes the Washington alliance for manufacturing, consistent with this section and sections 3 and 4 of this act. The department shall: (a) Assist extension service partners in applying for federal and private grants; (b) assist extension service partners in 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 extension service partners for delivery of client-directed problem-solving services that will assist the modernization efforts of manufacturing firms, industry associations, networks, and consortiums in targeted sectors.

(2) The department, in consultation with an advisory committee composed of two labor and two business members, appointed by the director, shall report annually on the effectiveness of extension service partners 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. The Washington alliance for manufacturing shall be organized under Title 24 RCW. The mission of the alliance shall be to operate a modernization extension system, coordinate a network of public and private modernization resources, and stimulate the competitiveness of smaller manufacturers within the state. The alliance 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 alliance shall provide the department of community, trade, and economic development data on employment growth on firms served and such other data as the department requests for evaluation of the alliance's effectiveness. The alliance shall not be an instrumentality of the state.

NEW SECTION. Sec. 4. The Washington alliance for manufacturing shall be an organization composed of representatives of small and medium-sized manufacturing firms, organized labor and industry associations, networks, or consortiums. The board of directors of the Washington alliance for manufacturing shall be representative of the groups mentioned in this section.

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

In order to assist the Washington alliance for manufacturing in brokering training programs to small manufacturers, the state board for community and technical colleges shall 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.

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

NEW SECTION. Sec. 7. The sum of one million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1997, from the general fund to the department of community, trade, and economic development for the purposes of section 2 of this act.