SENATE BILL REPORT

SB 6325

BYSenators Lee, Williams and Smitherman

Creating the industrial competitiveness program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 24, 1990; January 30, 1990

Majority Report:  That Substitute Senate BIll No. 6325 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Jack Brummel (786-7428)

                  January 30, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, JANUARY 30, 1990

BACKGROUND:

The report of the Washington Economic Development Board and a recent study by the Northwest Policy Center indicate that many small and medium-sized manufacturing firms in the state are experiencing increased competition due to the emergence of a global economy.  Modernization of production equipment and processes, concentration on high-quality value-added products, and cooperation among firms have been recommended as approaches which promise competitive advantages to firms.  The successes of small firms in Italy, Germany, and Denmark, indicate that government can facilitate firms' success and the prosperity of local economies.

SUMMARY:

An Industrial Competitiveness Program is established in the Department of Trade and Economic Development.  The program is to include the development of a statewide strategy and delivery system for improving the competitiveness of the state's manufacturers, and pilot projects to be operated by educational institutions, industry association, or other nonprofit organizations.  The pilot projects may involve activities related to the formation of flexible manufacturing networks.  In addition, the program will conduct an industrial census and help industries develop cooperative programs to increase their competitiveness.

An Industrial Competitiveness Advisory Board is created to offer the department advice on its program.  At least one-half of the board will be representatives of small and medium-scale manufacturers, the remainder will be representatives from labor unions, educational institutions, and economic development organizations.

EFFECT OF PROPOSED SUBSTITUTE:

The appropriation of $450,000 is deleted.  The department must report to the Legislature by January 1, 1991, and include in the report a plan for making program services under the act self-supporting.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: David Dougherty, DTED (pro)