BILL REQ. #:  H-3108.1 

     AN ACT Relating to aerospace competitiveness; adding a new section to chapter 43.330 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:
     (a) The state of Washington is positioned in a globally accessible, strategic location and offers one of the world's most outstanding natural environments and qualities of life. It also possesses abundant social capital, affordable housing, vibrant cultural and arts organizations, and an innovative, creative workforce that is in high demand;
     (b) The state is recognized as having a first rate business climate, as evidenced by its:
     (i) 2008 national magazine ranking as the third best state to do business and as the sole state in the top five in the labor, regulatory environment, and growth categories;
     (ii) 2008 national small business survival index ranking as the fifth best state in terms of tax relief and regulatory reform that benefits small businesses; and
     (iii) 2009 national business think-tank ranking as the twelfth best state in terms of business-friendly tax environment;
     (c) Among the state's greatest assets is its well-trained aerospace workforce, including but not limited to engineers, machinists, and airframe and propulsion certified mechanics. The workforce possesses the expertise necessary to generate complex products for commercial airlines, military, space, and communications. This expertise includes: Research and development; design, use of exotic materials, and application of high-tolerance manufacturing; logistical management, tracking, and precision assembly of over four million parts typically found in aircraft structures, aeronautical systems, and aerodynamics; certification and regulatory compliance; and customer service and in-service operations; and
     (d) Historically, during downturns in the Puget Sound economy, citizens have demonstrated that "innovation is in our nature" by greatly increasing their patent development activities with a resulting explosion of patents granted.
     (2) The legislature intends to capitalize upon the state's positive business climate, its locally owned and operated businesses, and its creative, competent workforce to be the catalysts for Washington's economic renewal and recovery.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.330 RCW to read as follows:
     (1) The department shall consider the societal benefits of unleashing the innovative, creative, and entrepreneurial talents of the Washington state workforce to "innovate here" through application development and patent commercialization for the aerospace industry.
     (2) Using existing resources, the department must immediately engage in a worldwide search for potential investors in aerospace plant and equipment in Washington state. The department is encouraged to pursue direct foreign investment by the global aerospace sector. The department shall invite aerospace manufacturing companies to "choose Washington" for their next expansion by featuring the aerospace manufacturing industry tax incentives, fee waivers, expenditure discounts, and any other preferences approved by the legislature in 2003 including:
     (a) Income tax credits;
     (b) Sales and use tax exemptions and refunds;
     (c) Real and personal property tax abatements;
     (d) Infrastructure grants and technical assistance;
     (e) Free or discounted land and buildings;
     (f) Low-cost financing for capital expenditures;
     (g) Utility discounts;
     (h) Waiver of permit fees;
     (i) Expedited permits;
     (j) Environmental and pollution control incentives;
     (k) Federal and state research and development credits;
     (l) Wage rebates;
     (m) Job creation tax incentives;
     (n) Employee training grants and credits;
     (o) Federal and state targeted employment credits;
     (p) Hiring and employee screening assistance; and
     (q) Any additional available preferences.
     (3) The department must assist small businesses that are locally owned and operated by enterprising engineers, machinists, mechanics, and other innovators in commercializing their patents and innovations. The department must partner with Washington manufacturing services to ensure that these new enterprises have access to advanced manufacturing processes.
     (4) The department shall work in partnership with all major stakeholders on efforts to recruit new investors and to retain and expand the existing aerospace industry cluster.
     (5) The department must submit a written report to appropriate legislative committees every six months regarding the number of potential investors contacted, the amount of private capital invested, the number and type of patent applications submitted and granted, product commercialization achieved, jobs created and retained, and other relevant information. The department, in consultation with the department of revenue, must feature in the report the specific preferences and incentives used by the state to attract, retain, and expand aerospace businesses and jobs.