SENATE BILL REPORT

                           SSB 5909

               AS PASSED SENATE, MARCH 11, 1993

Brief Description:  Enhancing the community diversification program.

SPONSORS: Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Sheldon, Oke and Owen)

SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT

Majority Report:  That Substitute Senate Bill No. 5909 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Deccio, Erwin, M. Rasmussen, and Williams.

Staff:  Midori Okazaki (786‑7444)

Hearing Dates: March 2, 1993

BACKGROUND:

Kitsap County is home to the Puget Sound Naval Shipyard, the Bangor nuclear submarine base and other federal military installations.   Reductions in federal defense spending will have a significant impact on the defense-dependent Kitsap County economy.  The future economic health of the county will depend on its ability to diversify its economy.

SUMMARY:

The Department of Community Development's community diversification program is directed to work with defense-dependent communities to develop a community diversification plan, focusing on utilization of the communities' unique economic assets, and develop specific strategies for each community or county to the extent practicable.  The sum of $49,000 is appropriated for the current biennium to DCD to assist Kitsap County in its diversification efforts, and any funds remaining at the end of the biennium are reappropriated.

Appropriation:  $49,000

Revenue:  none

Fiscal Note:  requested

Effective Date:  The bill contains an emergency clause and takes effect immediately.

TESTIMONY FOR:

Kitsap County is the most heavily defense-dependent county in the state.  It has attempted to anticipate reductions in defense spending and the associated impacts on the county's economy and is currently planning an economic summit.  These efforts have strained the community's available resources.  State assistance would be used to implement the plans which are currently being developed.

TESTIMONY AGAINST:  None

TESTIFIED:  PRO:  Senator Betti Sheldon; Earle Smith, Kitsap County Economic Development Council; Warren Olsen, Silverdale Chamber of Commerce; Andrew Huff, Kitsap County Commissioners' Office