ENGROSSED SUBSTITUTE HOUSE BILL NO. 2137



State of Washington                               51st Legislature                              1989 Regular Session


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



Read first time 3/1/89 and referred to Committee on Appropriations.



AN ACT Relating to targeted sectors for economic development; and adding new sections to chapter 43.31 RCW.




          NEW SECTION.  Sec. 1.     (1) The legislature finds that the future health of certain sectors of Washington state's economy is at risk in the face of increasing global competition.  The service and aerospace industries have responded well to this increasing global competition.  However, certain traditional industries, such as forest products and agriculture, have experienced some decline. Significant public and private resources are being directed toward restoring the vitality of these industries.

          (2) The legislature finds that, in addition to these industries, there are a number of emerging sectors in the state economy which offer real promise.  These include biotechnology and food processing.  In the next decade, these emerging sectors can be two of the state's strongest, most stable sectors able to successfully compete in the global market.  It is the purpose of sections 1 through 6 of this act to help these emerging sectors by encouraging a broader base and support for their development.  It is also the purpose of sections 1 through 6 of this act to ensure that more specific direction is given to the department in developing its programs and that the impact of resources the department directs toward targeted sectors is better measured.

          (3)  The legislature also finds that the state must work in partnership with the private sector to enhance economic development, whether restoring the vitality of declining industries or developing new industries with good economic potential.  In order for the public and private efforts to be most successful, the state, particularly the department, must clearly articulate:  (a) Its goals and objectives; (b) its appraisal of the sector that led to the goals and objectives; (c) its choice of strategy for achieving the goals and objectives; (d) its implementation plans and timetables; and (e) its evaluation criteria and process.  The department must work with the private sector and the legislature in the analysis, the setting of goals, the choice of strategy, and the evaluation process so that all parties have input into and understand how the problem is being defined and how the problem is being solved.


          NEW SECTION.  Sec. 2.     (1) The department shall establish targeted sector programs in the areas of biotechnology and food processing.  The purpose of these programs shall be to analyze the current state of the targeted sector and develop an action plan and program for each targeted sector to increase the sales of products from these sectors nationally and internationally.  The department shall also develop an evaluation process to measure the effectiveness of the targeted sector programs.  The targeted sector programs are intended to significantly increase the jobs and capital investment in these sectors through a well-conceived and implemented marketing plan.

          (2)  A targeted sector program staff person in the department shall:

          (a) Administer the targeted sector programs established in subsection (1) of this section;

          (b) Work with the advisory committees created in section 4 of this act to appraise each targeted sector, develop alternatives to assist in the development of the sector, choose a strategy for assisting the targeted sector, and evaluate the strategy and its implementation for effectiveness; and

          (c) Work with other state agencies, local governments, and the private sector.


          NEW SECTION.  Sec. 3.     (1) The department shall appraise the targeted sector to determine the current state of the sector prior to undertaking program development or marketing under section 2 of this act.  In making this appraisal, the department shall consider, but shall not be limited to, the following:  (a) The strengths and weaknesses of the sector; (b) the opportunities and risks in the sector; (c) any emerging products, processes and market niches in the sector; (d) the commercialization of technology related to the sector; (e) the availability of capital in the sector; (f) the education and training needs in the sector; (g) the infrastructure development in the sector; (h) the number of employees and businesses in the sector; and (i) the role the state should play in the long-term development of the sector.

          (2) The department shall base its marketing strategy and action plan for each targeted sector on the appraisal of the sector under subsection (1) of this section.  Where needs are identified in the appraisal of the sector but are beyond the scope of the department's program or ability to accomplish without additional resources, the department shall provide clear recommendations to the legislature regarding an action plan the state should implement to address these identified needs.


          NEW SECTION.  Sec. 4.     (1) The governor shall appoint an advisory committee and a committee chair for each targeted sector program.  The advisory committee shall have at least seven members but not more than fifteen members.  The advisory committee shall provide policy direction regarding:

          (a) The appraisal process;

          (b) Program development;

          (c) Program implementation; and

          (d) The evaluation criteria and process for the target sector programs.

          (2) Each advisory committee shall include:

          (a) Four legislators, one from each caucus in the house of representatives appointed by the speaker of the house, and one from each caucus in the senate appointed by the president of the senate;

          (b) One representative from a large company in the targeted sector;

          (c) One representative from a small company in the targeted sector; and

          (d) Other members appointed by the governor such as industry experts, venture capitalists, patent attorneys, and marketing experts, representing a variety of interests and geographic areas, with at least one member from east of the Cascades.

          (3)  The advisory committee shall provide policy and program direction to the targeted sector staff person created under section 2(2) of this act, and shall consider the role of other state agencies and the private sector in advising the department.

          (4) The members of the advisory board shall serve two-year terms.  The legislative members may be reimbursed for travel expenses under RCW 44.04.120.  Other members may be reimbursed for their travel expenses under RCW 43.03.050 and 43.03.060.


          NEW SECTION.  Sec. 5.     By January 10th of each year the department shall report in writing on its targeted sector programs to the trade and economic development committee in the house of representatives and the economic development and labor committee in the senate.  The department shall report on each element of the targeted sector program, including:  (1) Appraisal of the sector; (2) alternatives for assisting in the growth and development of the sector; (3) the choice of the strategy and the rationale  behind that choice; (4) the implementation of the strategy; and (5) the evaluation of the targeted sector program.  The department shall also make current information available on a regular basis to the legislature and the private sector regarding its targeted sector programs.


          NEW SECTION.  Sec. 6.     The department shall work with industry trade groups, local governments and local economic development organizations in implementing the target sector programs.  The department shall seek and utilize nonstate funds to help carry out these programs.


          NEW SECTION.  Sec. 7.     Sections 1 through 6 of this act are each added to chapter 43.31 RCW.