BILL REQ. #:  S-2689.2 

Read first time 04/26/13.   Referred to Committee on Trade & Economic Development.

     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 possesses an innovative, creative workforce; and
     (b) Among the state's greatest assets is its well-trained aerospace workforce skilled in advanced mechatronics, 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, aeronautical systems, and aerodynamics; certification and regulatory compliance; and customer service and in-service operations.
     (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 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 must encourage, through new or repurposed programs, the innovative, creative, and entrepreneurial talents of the Washington state workforce to "innovate here" with access to public and private resources to prototype new technology and develop commercial applications for the aerospace industry and for other industries that may benefit from the transfer of aerospace technologies.
     (2) Using existing resources, the department must make it a top level priority to conduct a worldwide search to attract public and private investment in aerospace-related workforce, plant, and technology in Washington state. The department is encouraged to pursue direct foreign investment by the global aerospace sector to create a competitive marketplace for labor, technology, and innovation. The department must invite aerospace and related industry 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 developing their technologies and services for global markets. The department must partner with impact Washington to ensure that these new enterprises have access to advanced manufacturing processes.
     (4) The department must work to create the conditions that will recruit new investment and to develop the existing aerospace industry cluster and related industries that benefit from aerospace technology and workforce.
     (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, new product commercialization achieved, net jobs created and retained, and other relevant information pertinent to an evaluation of the department's efforts and that of the economic condition of Washington state's aerospace industry. 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, with an evaluation of which of these preferences and incentives have accomplished their intended purposes.
     (6)(a) The department must undertake an assessment of program effectiveness of research, training, and service at the state's colleges and universities in areas of importance to the state's aerospace industry, related industries, and to investment in aerospace and related industries.
     (b) By December 31, 2013, and in compliance with RCW 43.01.036, the department must submit a written report to the legislature: Assessing the funding, strengths, limitations, and regulatory barriers in research, training, and service at the state's colleges and universities in areas of importance to the state's aerospace industry and related industries; and the veracity and completeness of information provided to the public by the state's colleges and universities in relation to such research, training, and service.