BP BHEAD INT 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 the Washington alliance for manufacturing. It is the further intent of the legislature that the Washington alliance for manufacturing coordinate the delivery of modernization services and act as a catalyst to:

(a) Encourage large firms to support training consortia among their suppliers, share their training facilities, and validate the importance of highly competitive work organizations and workplace learning as desirable supplier practices;

(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

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 assist in the operation of the Washington alliance for manufacturing, consistent with this section and sections 3 and 4 of this act. The department shall: (a) Assist the alliance in applying for federal and private grants; (b) assist the alliance 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 the alliance 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 shall report annually on the effectiveness of the alliance 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 a membership organization. A majority of the board of directors of the Washington alliance for manufacturing shall be composed of representatives of small manufacturing firms and industry associations, networks, or consortiums. 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 and 3 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 and 3 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 alliance to federal, state, and local governments, state colleges and universities, and private providers;

(6) Collaborate with the quality awards council 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:

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.