READ FIRST TIME 02/28/03.   

     AN ACT Relating to establishing the Washington state economic development commission to replace the governor's small business improvement council; amending RCW 43.330.040; and adding a new chapter to Title 43 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that Washington's innovation and trade-driven economy has provided tremendous opportunities for citizens of the state, but that there is no guarantee that globally competitive firms will continue to grow and locate in the state. The legislature also finds that developing an effective economic development strategy for the state and operating effective economic development programs, including work force training, small business assistance, technology transfer, and export assistance, are vital to the state's efforts to encourage employment growth, increase state revenues, and generate economic well-being. In addition, the legislature finds that there is a need for responsive and consistent involvement of the private sector in the state's economic development efforts. It is the intent of the legislature to create an economic development commission that will develop and update the state's economic development strategy and performance measures and provide advice to and oversight of the department of community, trade, and economic development.

NEW SECTION.  Sec. 2   (1) The Washington state economic development commission is established to oversee the economic development strategies and policies of the department of community, trade, and economic development.
     (2)(a) The Washington state economic development commission shall consist of at least seven and no more than nine members appointed by the governor.
     (b) In making the appointments, the governor shall consult with organizations that have an interest in economic development, including, but not limited to, industry associations, labor organizations, minority business associations, economic development councils, chambers of commerce, port associations, tribes, and the chairs of the legislative committees with jurisdiction over economic development.
     (c) The members shall be representative of the geographic regions of the state, including eastern and central Washington, as well as represent the ethnic diversity of the state. Representation shall derive primarily from the private sector, including, but not limited to, existing and emerging industries, small businesses, women-owned businesses, and minority-owned businesses, but other sectors of the economy that have experience in economic development, including labor organizations and nonprofit organizations, shall be represented as well. A minimum of seventy-five percent of the members shall represent the private sector. Members of the commission shall serve statewide interests while preserving their diverse perspectives, and shall be recognized leaders in their fields with demonstrated experience in disciplines related to economic development.
     (3) Members appointed by the governor shall serve at the pleasure of the governor for three-year terms, except that through June 30, 2004, members currently serving on the economic development commission created by executive order may continue to serve at the pleasure of the governor. Of the initial members appointed to serve after June 30, 2004, two members shall serve one-year terms, three members shall serve two-year terms, and the remainder of the commission members shall serve three-year terms.
     (4) The commission chair shall be selected from among the appointed members by the majority vote of the members.
     (5) The commission may establish committees as it desires, and may invite nonmembers of the commission to serve as committee members.
     (6) The commission may adopt rules for its own governance.

NEW SECTION.  Sec. 3   The Washington state economic development commission shall perform the following duties:
     (1) Review and periodically update the state's economic development strategy, including implementation steps, and performance measures, and perform an annual evaluation of the strategy and the effectiveness of the state's laws, policies, and programs which target economic development;
     (2) Provide policy, strategic, and programmatic direction to the department of community, trade, and economic development regarding strategies to:
     (a) Promote business retention, expansion, and creation within the state;
     (b) Promote the business climate of the state and stimulate increased national and international investment in the state;
     (c) Promote products and services of the state;
     (d) Enhance relationships and cooperation between local governments, economic development councils, federal agencies, state agencies, and the legislature;
     (e) Integrate economic development programs, including work force training, technology transfer, and export assistance; and
     (f) Make the funds available for economic development purposes more flexible to meet emergent needs and maximize opportunities;
     (3) Identify policies and programs to assist Washington's small businesses;
     (4) Assist the department of community, trade, and economic development with procurement and deployment of private funds for business development, retention, expansion, and recruitment as well as other economic development efforts;
     (5) Meet with the chairs and ranking minority members of the legislative committees from both the house of representatives and the senate overseeing economic development policies; and
     (6) Make a biennial report to the appropriate committees of the legislature regarding the commission's review of the state's economic development policy, the commission's recommendations, and steps taken by the department of community, trade, and economic development to implement the recommendations. The first report is due by December 31, 2004.

NEW SECTION.  Sec. 4   (1) The Washington state economic development commission shall receive the necessary staff support from the staff resources of the governor, the department of community, trade, and economic development, and other state agencies as appropriate, and within existing resources and operations.
     (2) Creation of the Washington state economic development commission shall not be construed to modify any authority or budgetary responsibility of the governor or the department of community, trade, and economic development.

Sec. 5   RCW 43.330.040 and 1993 c 280 s 6 are each amended to read as follows:
     (1) The director shall supervise and administer the activities of the department and shall advise the governor and the legislature with respect to community and economic development matters affecting the state.
     (2) In addition to other powers and duties granted to the director, the director shall have the following powers and duties:
     (a) Work with the Washington state economic development commission established in section 2 of this act to develop and implement economic development policies consistent with the advice of the commission;
     (b) Enter into contracts on behalf of the state to carry out the purposes of this chapter;
     (((b))) (c) Act for the state in the initiation of or participation in any multigovernmental program relative to the purpose of this chapter;
     (((c))) (d) Accept and expend gifts and grants, whether such grants be of federal or other funds;
     (((d))) (e) Appoint such deputy directors, assistant directors, and up to seven special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;
     (((e))) (f) Prepare and submit budgets for the department for executive and legislative action;
     (((f))) (g) Submit recommendations for legislative actions as are deemed necessary to further the purposes of this chapter;
     (((g))) (h) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter;
     (((h))) (i) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director shall be responsible for the official acts of the officers and employees of the department; and
     (((i))) (j) Perform other duties as are necessary and consistent with law.
     (3) When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer and thereafter expended only upon the approval of the director.
     (4) The director may request information and assistance from all other agencies, departments, and officials of the state, and may reimburse such agencies, departments, or officials if such a request imposes any additional expenses upon any such agency, department, or official.
     (5) The director shall, in carrying out the responsibilities of office, consult with governmental officials, private groups, and individuals and with officials of other states. All state agencies and their officials and the officials of any political subdivision of the state shall cooperate with and give such assistance to the department, including the submission of requested information, to allow the department to carry out its purposes under this chapter.
     (6) The director may establish additional advisory or coordinating groups with the legislature, within state government, with state and other governmental units, with the private sector and nonprofit entities or in specialized subject areas as may be necessary to carry out the purposes of this chapter.
     (7) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.

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