H-1510              _______________________________________________

                                                   HOUSE BILL NO. 2164

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Kremen, Cantwell and Moyer

Read first time 2/27/89 and referred to Committee on Trade & Economic Development.

AN ACT Relating to an industrial extension grant program; adding a new chapter to Title 18 RCW; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that the industrial and manufacturing base of the Washington economy has undergone tremendous change during the past two decades.  The challenge facing Washington firms is to become as productive and efficient as possible to survive in an increasingly competitive world market.  Many small and medium-sized firms are in need of engineering and technical assistance to become or remain competitive.  Such firms normally lack access to the knowledge base necessary to introduce new products or production processes.  Many states, to encourage the innovation necessary to withstand foreign competition, operate technical assistance programs for their firms.  It is the intent of the legislature to provide industrial technical assistance which can increase the speed with which Washington firms innovate and adjust to the demands of competition in world markets.

NEW SECTION. Sec. 2.     The business assistance center of the department of trade and economic development, in consultation with the Washington state institute for public policy shall administer an industrial extension grant program.  A minimum of two grants shall be given to operate industrial extension services within the state.  At least one grant program shall operate in eastern Washington and at least one grant program shall operate in western Washington.  Grants must be awarded on a competitive basis.

NEW SECTION. Sec. 3.     The successful grant recipient shall:

          (1) Demonstrate the participation of local higher education institutions, trade or industry associations, and local economic development groups.  The recipient must also demonstrate that local financial support can be raised to assist the program.

          (2) Provide the services of industrial engineers, efficiency experts, and other technicians familiar with the modernization needs of local industries.

          (3) Offer firm-specific assistance for a maximum of five person-days, after which firms may negotiate assistance on a fee basis.

          (4) Work primarily with small firms which could not otherwise afford the expertise.

          (5) Develop mechanisms to provide information on new manufacturing technologies to existing small and medium-sized firms.

          (6) Designate a substate region and coordinate the delivery of technical assistance resources to small and medium-sized firms throughout that region.

          (7) Provide whatever information the business assistance center deems necessary to evaluate the effectiveness of the services delivered by the grant recipient.

NEW SECTION. Sec. 4.     The business assistance center shall report to the economic development and labor committee of the senate and the trade and economic development committee of the house of representatives by December 1, 1990, and each year thereafter on the accomplishments of the industrial extension grant program.  Such reports shall include an assessment of the number and types of firms assisted, the number of jobs created or saved as a result of the assistance, and the results of client satisfaction surveys distributed to those using the services of the program.  The report shall also include an assessment of the process utilized to deliver industrial extension services in each of the local grant areas in order to evaluate the transferability of the model to other parts of the state.

NEW SECTION. Sec. 5.     The sum of two hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of trade and economic development for the purposes of this act.

NEW SECTION. Sec. 6.     Sections 1 through 4 of this act shall constitute a new chapter in Title 18 RCW.