BILL REQ. #:  S-1694.1 

READ FIRST TIME 02/12/07.   

     AN ACT Relating to assisting manufacturers; amending RCW 24.50.010; creating a new section; and making appropriations.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that:
     (a) Through modernization programs reflecting the specific needs and capabilities of the individual firms, Washington manufacturers can compete successfully in the market of the future and provide living wage jobs. Most small and midsize manufacturers will face financing, marketing, production, or other challenges during their early formation. Often, they do not have the resources that will allow them to easily access the technical assistance and skills training needed to make them globally competitive;
     (b) Foreign markets are now providing small manufacturers with opportunities for direct sale of their products and for opportunities to become a supplier in a large manufacturer's supply chain. To enter these markets, advanced manufacturers must demonstrate high standards of product and process quality and be certified by organizations such as the international standards organization 9000 and the AS9100 aerospace standard. In the United States, Washington is twentieth in the total number of manufacturers, but twenty-fifth in the number of international standards organization certified firms, and thirty-first out of all states in the percentage of companies that are certified by the international standards organization;
     (c) Public and private partnerships directed at business education may result in benefits to manufacturing and improvements to the environment. Through a recent federally funded pilot project between the department of ecology and Washington manufacturing services, several small manufacturing firms found significant benefits through a "lean and clean" manufacturing education program. The project demonstrated that the partnerships assist manufacturers in reducing their operating costs, increase their environmental compliance, and expand the opportunity for the manufacturers to grow jobs within the state; and
     (d) Washington state manufacturers will be successful only if they are able to attract employees with the right mix of skills in certain job functions to meet the demands of modern manufacturing. The "dream it do it" campaign, which is being coordinated in Washington state by Washington manufacturing services, is providing information on a wide range of ways in which students can learn about high paying careers in manufacturing and how they might qualify for those jobs. An early understanding of career opportunities and of those skills necessary to enter such professions will improve the qualifications of our workforce and ensure economic expansion within our manufacturing community.
     (2) It is the intent of the legislature that Washington state increase its support for the manufacturing extension program, to expand the delivery of modernization services to small Washington manufacturers, and to leverage federal and private resources devoted to such efforts.

Sec. 2   RCW 24.50.010 and 2006 c 34 s 2 are each amended to read as follows:
     (1) Washington manufacturing services is organized as a private, nonprofit corporation in accordance with chapter 24.03 RCW and this section. The mission of the center is to operate a modernization extension system, coordinate a network of public and private modernization resources, and stimulate the competitiveness of small and midsize manufacturers in Washington.
     (2) Washington manufacturing services shall be governed by a board of directors. A majority of the board of directors shall be representatives of small and medium-sized manufacturing firms and industry associations, networks, or consortia. The board shall also include at least one member representing labor unions or labor councils and, as ex officio members, the director of the department of community, trade, and economic development, the executive director of the state board for community and technical colleges, and the director of the work force training and education coordinating board, or their respective designees.
     (3) Washington manufacturing services may:
     (a) 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 chapter; and
     (b) Receive funds from federal, state, or local governments, private businesses, foundations, or any other source for purposes consistent with this chapter.
     (4) Washington manufacturing services shall:
     (a) Develop policies, plans, and programs to assist in the modernization of businesses in targeted sectors of Washington's economy and coordinate the delivery of modernization services;
     (b) In cooperation with industry associations, cluster associations, chambers of commerce, and associate development organizations, create programs which:
     (i) Provide modernization services to manufacturing firms with fifty or fewer employees;
     (ii) Assist small manufacturers to become certified in internationally accepted quality assurance programs by providing training classes on the requirements of international standards. Through the classes the Washington manufacturing services will provide internal audit training, critique processes and procedures, and provide a gap audit by a lead auditor, who has obtained certification from a nationally recognized certification board, to help companies finalize their requirements for certification;
     (iii) Develop partnerships for the delivery of services which will assist manufacturers in reducing costs, and increases their environmental compliance; or
     (iv) Educate students about careers in manufacturing, provide teachers with valuable education resources, provide analytical tools with which young people may choose careers, or provide other resources that will help students find great, high paying careers they can be proud of;
     (c) Provide information about the advantages of modernization and the modernization services available in the state to federal, state, and local economic development officials, state colleges and universities, and private providers;
     (((c))) (d) Collaborate with the Washington quality initiative in the development of manufacturing quality standards and quality certification programs;
     (((d))) (e) Serve as an information clearinghouse and provide access for users to the federal manufacturing extension partnership national research and information system; and
     (((e))) (f) Provide, either directly or through contracts, assistance to industry associations, networks, or consortia, that would be of value to their member firms in:
     (i) Adopting advanced business management practices such as strategic planning and total quality management;
     (ii) Developing mechanisms for interfirm collaboration and cooperation;
     (iii) Appraising, purchasing, installing, and effectively using equipment, technologies, and processes that improve the quality of goods and services and the productivity of the firm;
     (iv) Improving human resource systems and work force training in a manner that moves firms toward flexible, high-performance work organizations;
     (v) Developing new products;
     (vi) Conducting market research, analysis, and development of new sales channels and export markets;
     (vii) Improving processes to enhance environmental, health, and safety compliance; and
     (viii) Improving credit, capital management, and business finance skills.

NEW SECTION.  Sec. 3   (1) The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2008, from the general fund--state to the department of community, trade, and economic development to carry out the purposes of section 2 of this act.
     (2) The sum of five hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the general fund--state to the department of community, trade, and economic development to carry out the purposes of section 2 of this act.