H-2085

AN ACT Relating to economic development; adding a new chapter to Title 43 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds a state's economic development efforts can be characterized as going through waves. The first wave of economic development efforts were designed to attract businesses to the state. The second wave of economic development efforts were designed to encourage the retention and expansion of existing businesses within the state. The third wave of economic development efforts are designed to leverage limited state and local resources to facilitate business growth.

The state of Washington does not have a long-term economic development policy to guide state and local efforts in the allocation of limited resources for economic development. An essential first step is to establish a public and private consensus on a long-term economic development strategy which recognizes both the competitive position and needs of key businesses and industries and the need to establish new businesses and industries. A unique partnership between the public and private sectors can attract new businesses and encourage greater investment in Washington state.

NEW SECTION. Sec. 2. There is established the Washington state economic development board, referred to in this chapter as the board. The board is charged with the responsibility for creating a long-term economic development strategy for the state.

NEW SECTION. Sec. 3. (1) The board is comprised of representatives from both the private and public sectors who are actively engaged in organizations and businesses which support economic expansion and job creation. The board consists of twenty-seven members composed of as follows:

(a) The governor;

(b) Two members of the house of representatives, one member from each caucus, appointed by the speaker of the house of representatives;

(d) Three representatives of manufacturing companies, one representative shall be from a manufacturing company that employs less than one hundred people;

(e) One representative from organized labor;

(f) One representative from a financial institution;

(g) One representative from the agricultural industry;

(h) Three representatives from education, one representative each from institutions of higher education, vocational-technical education, and common schools;

(i) One representative from the tourism industry;

(j) One representative from the high-technology industry;

(k) One representative from a local associate development organization;

(l) One owner of a women-owned business enterprise certified under chapter 39.19 RCW;

(m) One owner of a minority-owned business enterprise certified under chapter 39.19 RCW;

(n) One representative from the service industry;

(o) One representative from the retail industry;

(p) Three representatives at large;

(q) The director of the department of community, trade, and economic development serves as an ex officio member of the board;

(r) The director of the department of revenue serves as an ex officio member of the board;

(s) The director of the office of financial management serves as an ex officio member of the board.

(2) The governor shall, within thirty days of the effective date of this act, appoint all members of the board except those in subsections (1)(b) and (c) of this section. The first meeting of the board will occur within sixty days of the effective date of this act.

(3) The governor shall serve as the chairperson and shall designate the vice-chairperson of the board. Members serve four-year terms. Of the initial members, two are appointed for a one-year term, two are appointed for a two-year term, four are appointed for a three-year term, and the remainder are appointed for a four-year term. Thereafter, members are appointed for four-year terms.

(4) The board shall meet regularly and shall create subcommittees needed to address specific issues and concerns. Members of the board will be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060, except legislative members will be reimbursed under RCW 44.04.120.

NEW SECTION. Sec. 4. (1) The board shall develop a long-term economic development plan based on a strategic analysis. The objectives of the plan are to spur new job creation and investment that is consistent with the preservation of the state's quality of life and environment. The board shall submit an initial plan to the governor and legislature by January 1, 1999, and shall submit revisions to the plan based on continuing analysis and oversight by January 1 of each year thereafter.

(2) The board shall produce a report by January 1, 1998, submitting the report to the governor and legislature, addressing the following issues:

(a) Methods of increasing the effectiveness and coordination of existing economic development and tax incentive programs administered by state and local agencies; and

(b) Methods of facilitating economic activity in distressed urban and rural areas of the state.

NEW SECTION. Sec. 5. The board has the following responsibilities and powers:

(1) To secure and encourage substantial private sector, nonprofit sector, and community support in the analysis of economic development opportunities and development of specific recommendations for economic growth;

(2) To identify and analyze key targeted businesses and industries to determine their potential for expansion, diversification, and production of high-value goods and services;

(3) To propose an appropriate state role in technology transfer, new product development, industrial marketing, venture capital formation, workforce training and education, and research and development;

(4) To evaluate the performance of existing state economic development programs and tax incentives for consistency and coordination, as well as for their effect on job creation, and to evaluate the long-term benefits to the state of these efforts;

(5) To propose, along with other state, local, and private groups, new methods to increase public and private partnerships to foster economic development efforts;

(6) To develop a long-term economic development strategy based on consensus goals and principals, an in-depth analysis of market opportunities, private sector support and investment, and specific private and public economic development measures which have a substantial potential to increase or retain employment;

(7) To study the key components of the state's business climate as they relate to the long-term development strategy;

(8) To review the various economic development policy recommendations made by other agencies or organizations and recommend to the governor and legislature those strategies, policies, and programs it deems to be in the best interest of the state;

(9) To make specific recommendations for the establishment of public-private cooperative efforts in economic development and state-local cooperative efforts including but not limited to the need for establishing formal working relationships, by either contract or otherwise, for purposes of engaging in joint, cooperative economic development activities;

(10) To cooperate with and secure the cooperation of any department, agency, or instrumentality in state and local government, and other associations affected by or concerned with the business of the board; and

(11) To accept gifts and grants upon such terms as the board may deem proper.

NEW SECTION. Sec. 6. The board may employ such staff as it requires and may contract for services as it deems necessary in order to carry out its duties and responsibilities. The governor and the legislature may provide additional staff and facilities as may be reasonably required to assist the board in carrying out its duties and responsibilities.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 8. The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1999, from the general fund to the office of the governor for the purposes of sections 1 through 6 of this act.