HOUSE BILL REPORT

HB 2137

BYRepresentatives Cantwell, Moyer, Rasmussen and Walk

Establishing target sector programs for state economic development.

House Committe on Trade & Economic Development

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; G. Fisher, Kremen, Moyer, Rasmussen, Raiter, Rector, Tate, Walk and Youngsman.

House Staff:Charlie Gavigan (786-7340)

Rereferred House Committee on Appropriations

Majority Report:  The substitute bill by Committee on Trade & Economic Development as amended by Committee on Appropriations be substituted therefor and the substitute as amended do pass.  (24)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Minority Member; Belcher, Bowman, Braddock, Brekke, Brough, Dorn, Ebersole, Ferguson, Hine, May, McLean, Padden, Peery, Rust, Sayan, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Susan Nakagawa (786-7136)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS

MARCH 5, 1989

BACKGROUND:

In the past few years, the legislature has requested studies that in part analyzed how the state could better focus its efforts in identified economic sectors of the state to enhance economic development.

In 1987, the legislature required the Department of Trade and Economic Development to study the market trends and investment opportunities in at least eight key areas of the state economy. This study is expected to be completed by June 1989.

In 1987, the legislature also commissioned a study by the International Trade Assistance Advisory Committee (ITAAC).  This study focuses on improving the trade promotion and assistance programs in the state.  The ITAAC study recommended that the state target areas of its economy where products could be more effectively marketed internationally.

SUMMARY:

SUBSTITUTE BILL:  The Department of Trade and Economic Development (DTED) is to establish targeted sector programs in the areas of biotechnology and food processing.  These programs are to analyze the current state of the targeted economic sectors and develop a plan to increase the sale of products from these sectors nationally and internationally.  An evaluation process must also be developed to measure the effectiveness of the targeted sector programs.

An advisory committee is to be appointed by the governor for each targeted sector program.  The advisory committee must have seven but not more than 15 members.  The advisory committee shall provide policy direction to DTED on the department's targeted sector programs, including the appraisal of the sector, the development of the program, the implementation of the program, and the evaluation of the program.

The advisory committees include four legislators, representatives of large and small businesses in the sector, and other members appointed by the governor with expertise in the sector and representing various industries and geographic areas.

A targeted sector program staff person is to administer, with guidance from the advisory committee, both targeted sector programs in DTED.  The staff person and the department are also to work with state agencies, local governments, and the private sector.

The Department of Trade and Economic Development is to report in writing each January to the legislature on its targeted sector programs.  The department shall make current information available regularly to the legislature and the private sector on these programs.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The original bill targeted the sectors of advanced technology, agriculture, and natural resources.  The department would organize trade shows and trade missions in these three targeted sectors.

The substitute bill requires the Department of Trade and Economic Development to establish targeted sector programs in two areas, biotechnology and food processing.  The substitute bill also adds the targeted sector staff person and the advisory committees.  Instead of focusing on trade shows and trade missions, the substitute bill requires that the department (1) analyze and appraise the target sector; (2) list alternatives for improving the sale of products, job creation, and capital infusion in the sector; (3) choose and implement a program for each sector; and (4) evaluate and report on the program in each sector.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS: The appropriation of $200,000 from the general fund for the biennium ending June 30, 1991, to the Department of Trade and Economic Development is deleted.

Fiscal Note:      Requested March 2, 1989.

House Committee ‑ Testified For:    (Trade & Economic Development) Don Lorenz and Jean Cobb, Department of Trade and Economic Development.

(Appropriations) None Presented.

House Committee - Testified Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.

House Committee - Testimony For:    (Trade & Economic Development) Programs that focus on and market specific areas or sectors of the economy can result in more jobs and capital investment.  The coordination and awareness that a targeted sector program can accomplish is especially important in marketing products internationally.

(Appropriations) None Presented.

House Committee - Testimony Against:      (Trade & Economic Development) None Presented.

(Appropriations) None Presented.