HOUSE BILL ANALYSIS

SB 6862

BYSenators McMullen, Metcalf, Amondson and Sutherland

Creating the Washington hardwoods commission.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (13)

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

House Staff:Charlie Gavigan (786-7340)

AS PASSED HOUSE MARCH 1, 1990

BACKGROUND:

The forest products industry remains a key part of Washington's economy, providing about one fifth of the manufacturing jobs in the state and contributing to many jobs in other areas of the economy. This industry has traditionally relied on softwood timber, such as Douglas fir trees.  Hardwood timber, such as alder, has been a much smaller part of the economy than softwood, with a 10 year annual average of 231 million board feet harvested in Washington state in hardwoods and an annual average of 6 billion board feet harvested in softwoods. However, while the softwood inventories are declining, hardwood inventories have been increasing.

The inventory of softwood timber in Washington in 1980 was 236 billion board feet. The inventory of hardwood timber in Washington in 1980 was 18 billion board feet.

SUMMARY:

The Washington Hardwoods Commission is created.  The commission has seven members, all representatives of the hardwood industry. The governor will appoint the members to staggered terms.

The commission is to assist in the retention, expansion, and attraction of hardwood-related industries.  The commission is to coordinate state and federal agencies, industry organizations, and higher education institutions.  The commission has the power to develop products and markets for hardwoods, recommend a tax program to help stabilize existing firms and attract new firms, develop programs that protect the environment, and develop financial assistance programs.

Funding for the hardwoods commission is through an assessment levied on processors of hardwood.  The commission must establish a method and rate of assessment on processors by December 31, 1990.  The commission must also develop a workplan.  A report to the Natural Resources Committees in the Legislature must be made by the commission regarding the assessment and the workplan by December 31, 1990.

Fiscal Note:      Not Requested.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    Bob Platz, Western Hardwoods Association; and Rich Nafzinger, Office of the Governor.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The hardwood industry can have a much greater economic impact if it is better organized.  Washington needs a hardwoods commission to foster development of the industry, educate the public as to the benefits of hardwoods, and to improve markets for hardwood products.  The commission, as agreed to by the interested parties, is funded by an assessment on processors of hardwoods.

House Committee - Testimony Against:      None.