S-4598

AN ACT Relating to the development of a state-wide strategic plan for economic development; adding a new chapter to Title 43 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 establishing a clear state-wide strategy for successful economic development will best prepare the state of Washington to respond to the challenges and take advantage of future economic cycles. The legislature further finds that without a state-wide economic development plan the state's budget and election cycles make it difficult for government to adhere to consistent, long-term economic development priorities that are essential to successful, enhanced economic development. The legislature further finds that the purpose of economic development is to increase the standard of living and enhance the quality of life of the citizens of this state.

(2) It is the intent of the legislature that a strategic state-wide economic development plan be created that reflects the following goals and objectives:

(a) To create and maintain jobs and income that would not otherwise be created or maintained, and to increase wealth rather than to redistribute it;

(b) To add value to private sector economic activity; and

(c) To assist businesses in developing their business strategies, increasing the skills of their workers and managers, applying advanced technologies, developing infrastructure, accessing capital, and enhancing social capital.

NEW SECTION. Sec. 2. For the purposes of this chapter "department" means the department of community, trade, and economic development, or its successor agency or agencies. "The plan" or "state plan" means a state-wide economic development plan, as developed under sections 3 and 4 of this act.

NEW SECTION. Sec. 3. (1) The legislative committee on economic development shall take the lead responsibility for creating a state‑wide strategic plan for economic development in conjunction with the department, and an advisory group of business, labor, and other interests. The advisory group shall be appointed by the lieutenant governor and shall consist of no more than twelve members.

(2) In preparing the state plan, the legislative committee on economic development and the department shall recognize:

(a) Regional economic, political, and cultural differences, and acknowledge the special challenges facing urban and rural communities; and

(b) Special contributions of, and challenges facing, women and minority-owned businesses.

(3) The plan should set priorities and concentrate resources on those priorities.

(4) The plan should include specific implementation steps and establish a process for institutionalizing economic development planning.

NEW SECTION. Sec. 4. The legislative committee on economic development and the department shall develop and include the following elements in the plan:

(1) New strategies that seek to improve the overall competitiveness of groups of similar businesses, usually termed clusters, and entire industries or sectors rather than traditional strategies that focus on individualized assistance. These strategies should foster interfirm cooperation and learning, technology adaptation, and work-based learning to improve work force skills. Under these strategies the state acts as a broker of available private and public development resources, or contracts for such broker services;

(2) Direction to the department to develop programs consistent with the state plan, and that are characterized by outcome-based performance management systems and decentralized decision making;

(3) Direction to the department to assist local governments and other interested parties in the creation of regional economic development plans consistent with the state plan; and

(4) Direction to the department to develop a professional research capacity to keep the state's trade assistance operation regularly appraised of opportunities and updated on performance.

NEW SECTION. Sec. 5. The legislature recognizes the urgent need for having a plan in place as soon as is reasonably possible. The legislative committee on economic development and the department are directed to immediately develop a work plan and take other steps necessary to implement this act.

NEW SECTION. Sec. 6. Sections 1 through 4 of this act constitute a new chapter in Title 43 RCW.