SENATE BILL REPORT

ESHB 2137

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives Cantwell, Moyer, Rasmussen and Walk)

Establishing targeted sectors for economic development.

House Committe on Trade & Economic Development

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 27, 1989; March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:Patrick Woods (786-7430)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 31, 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:

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.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested March 2, 1989

Appointments by Legislature Required:     Two Senators, one from each caucus, appointed by the President of the Senate; two Representatives, one from each caucus, appointed by the Speaker.

SUMMARY OF PROPOSED SENATE AMENDMENTS: 

The targeted sector study program is expanded to include manufactured forest products.  The department is directed to:  contract with the North West Policy Center of the University of Washington to conduct the biotechnology industry appraisal and action plan; contract with the Center for International Trade in Forest Products to develop the manufactured forest products industry appraisal and action plan; contract with the International Marketing Program for Commodities and Trade at the Washington State University to develop the food processing industry appraisal and action plan. 

The appointment of industry advisory committees by the Governor regarding biotechnology, manufactured forest products and food processing is replaced by three existing advisory committees.  These include the Washington State Biotechnology Association, the Evergreen Partnership, and the Department of Agriculture's Processed Food Products Advisory Committee.  The department is directed to review the establishment of an industrial extension program, a flexible manufacturing program and report to the Legislature with findings and recommendations by January 1, 1990.

Senate Committee - Testified: Don Lorentz, Jeanne Cobb, Department of Trade and Economic Development (pro); John Thoresen, Snohomish County GCD (pro)