SENATE BILL REPORT

2SSB 6790

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to cluster and innovation partnership zone grants.

Brief Description: Concerning cluster and innovation partnership zone grants.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senator Kastama).

Committee Activity: Economic Development, Trade & Innovation: 2/01/10, 2/03/10 [DPS-WM].

Ways & Means: 2/09/10 [DP2S].

Majority Report: That Substitute Senate Bill No. 6790 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

Signed by Senators Kastama, Chair; Shin, Vice Chair; Zarelli, Ranking Minority Member; Delvin, Eide and McCaslin.

Majority Report: That Second Substitute Senate Bill No. 6790 be substituted therefor, and the second substitute bill do pass.

Signed by Senators Prentice, Chair; Tom, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Hewitt, Hobbs, Keiser, Kline, Kohl-Welles, McDermott, Murray, Oemig, Parlette, Pflug, Pridemore, Regala and Rockefeller.

Background: The Legislature created the Innovation Partnership Zones (IPZ) program in 2007 to stimulate the growth of industry clusters and to build regional economies. IPZs bring together research, workforce training and globally-competitive companies in close geographic proximity for a cooperative, research-based effort that will lead to new commercially viable products and jobs. The Department of Commerce (Department) is to convene an annual information sharing event for IPZ administrators and other interested parties.

Summary of Second Substitute Bill: In developing industry cluster-based strategies, the Department is to promote industry cluster involvement in IPZs and in the application process for designation of IPZs. The competitive cluster grant program is changed. It is to integrate sector-based and cluster-based strategies with the development of IPZs.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill (Economic Development, Trade & Innovation): CON: The section dealing with regional grants would cause counties and regions to compete with each other. The current system works well. ADO funding is through private-public partnerships. ADOs are jobs focused, and focus on solutions.

OTHER: Language regarding coordination of workforce and economic development planning efforts is better in the current code.

Persons Testifying (Economic Development, Trade & Innovation): CON: Matt Matayoshi, Mason County EDC.

OTHER: Bryan Wilson, Workforce Development Board.