SENATE BILL REPORT

SB 6792

BYSenators Bluechel, Warnke, Hayner, Smitherman, Patrick, Niemi and Sellar

Creating the community diversification program.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 1, 1990; February 2, 1990

Majority Report:     That Substitute Senate Bill No. 6792 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Jack Brummel (786-7428)

                February 2, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1990

BACKGROUND:

Industries in Washington which are dependent on defense spending are subject to major fluctuations in economic activity.  National leaders are predicting large cutbacks in military expenditures.  Communities, firms and workforces affected by cuts in federal spending may benefit from state coordinated efforts to diversify local economies.

SUMMARY:

The Community Diversification Program is created in the Department of Community Development.  The program is to monitor defense employment, identify communities and firms dependent on federal defense contracts, assist communities to broaden their economic base, assist businesses to produce new products or use new production processes, and formulate a state plan for diversification in defense dependent communities.

An advisory council is created to assist the department in carrying its diversification program.  The advisory council has representatives from business, labor, community groups active in diversification efforts, local governments from defense dependent communities, financial institutions, military leadership, and the Legislature.

EFFECT OF PROPOSED SUBSTITUTE:

The act is null and void if funds are not specifically authorized by the Legislature.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Appointments by Legislature Required: Two appointments from the House, two from the Senate and one from each caucus in each house.

Senate Committee - Testified:   Senator Bluechel (pro); John Davis, Sane/Freeze (pro); Tom Donnelly, Sixth Sense (pro)