1234-S2 AMS EC S2787.1

2SHB 1234 - S COMM AMD

By Committee on Economic Development

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the use of industrial clusters as a descriptive tool can provide a clear understanding of the relationships between firms that drive the local economy. An industry cluster is a group of complementary, competing, and interdependent firms that represent the entire value chain of a broadly defined industry from suppliers to end products, including supporting services and specialized infrastructure. The legislature further finds that (1) cluster-based economic analysis is a tool for understanding industry dynamics; (2) the purpose of cluster analysis is to identify those areas of the economy in which a region has or might develop a comparative advantage and to develop short and long-term strategies for growing the regional economy; and (3) using cluster analysis in the development of economic development strategies highlights opportunities for coordination and improvement in areas of mutual concern to firms without threatening or distorting competition. It is the intent of the legislature that the department of community, trade, and economic development use a cluster-based economic analysis in the development and delivery of economic development services in the state.

Sec. 2. RCW 43.330.090 and 1998 c 245 s 85 are each amended to read as follows:

(1) The department shall work with private sector organizations, industry and cluster associations, federal agencies, state agencies, local governments, local economic development organizations, and higher education and training institutions ((to assist)) in the development of industry cluster-based strategies to diversify the economy, facilitate technology transfer and diffusion, and increase value-added production ((by focusing on targeted sectors)). The initial industry clusters targeted ((sectors)) by the department may include, but are not limited to, software, forest products, biotechnology, environmental ((industries)) technology, recycling markets and waste reduction, aerospace, photonics, food processing, tourism, film and video, microelectronics, new materials, robotics, and machine tools. The department shall, on a continuing basis, evaluate the potential return to the state from devoting additional resources to ((a targeted sector's)) an industry cluster-based approach to economic development and ((including)) identifying and assisting additional ((sectors in its efforts)) clusters. The department shall use information gathered in each service delivery region in formulating its ((sectoral)) industry cluster-based strategies ((and in designating new targeted sectors)).

(2) The department shall ensure that the state continues to pursue a coordinated program to expand the tourism industry throughout the state in cooperation with the public and private tourism development organizations. The department shall work to provide a balance of tourism activities throughout the state and during different seasons of the year. In addition, the department shall promote, market, and encourage growth in the production of films and videos, as well as television commercials within the state; to this end the department is directed to assist in the location of a film and video production studio within the state.

(3) In assisting in the development of ((a targeted sector)) its industry cluster-based strategies, the department's activities may include, but are not limited to:

(a) Conducting focus group discussions, facilitating meetings, and conducting studies to identify ((members of the sector)) industry clusters, appraise the current ((state of the sector)) information linkages within a cluster, and identify issues of common concern within ((the sector)) a cluster;

(b) Supporting the formation of industry and cluster associations, publications of association directories, and related efforts to create or expand the activities ((or)) of industry and cluster associations;

(c) ((Assisting in the formation of flexible networks by providing (i) agency employees or private sector consultants trained to act as flexible network brokers and (ii) funding for potential flexible network participants for the purpose of organizing or implementing a flexible network;

(d))) Helping establish research consortia;

(((e))) (d) Facilitating joint training and education programs;

(((f))) (e) Promoting cooperative market development activities;

(((g))) (f) Analyzing the need, feasibility, and cost of establishing product certification and testing facilities and services; and

(((h))) (g) Providing for methods of electronic communication and information dissemination among firms and groups of firms to facilitate ((network)) industry cluster activity."

2SHB 1234 - S COMM AMD

By Committee on Economic Development

On page 1, line 1 of the title, after "development;" strike the remainder of the title and insert "amending RCW 43.330.090; and creating a new section."

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