2285 AMS PREN S2944

2285 AMS PREN S2944.2

HB 2285 - S AMD - 496

By Senator Prentice

Beginning on page 2, line 16, strike all of sections 1 and 2 and insert the following:

"NEW SECTION. Sec. 1. The purpose of this act is to effectively organize state efforts to address the community and economic development needs of the citizens of the state of Washington by restructuring the department of community, trade, and economic development, and by developing a strategic economic development plan. It is the intent of the legislature that the department of community, trade, and economic development be divided into two separate agencies, the department of community development and the department of trade and economic development. The department of trade and economic development will consist of the existing divisions of economic development, international trade, and energy. The department of community development will consist of the existing divisions of housing, community services, and local government.

The restructuring will allow each agency to: (1) Identify and develop a focused mission; (2) organize and deliver services in a manner that is responsive to current and future needs; and (3) effectively target resources to meet the identified mission and needs of the citizens of the state of Washington in the most efficient and effective manner.

It is the further intent of the legislature that a strategic economic development plan for the state of Washington be developed. The economic development plan will help guide and coordinate economic development efforts pursued by state and local government and the private sector. The economic development plan will be based on a review of current state and local policies and programs, a study of issues such as work force training, industrial modernization, business retention and recruitment, technology transfer, export assistance, tourism, investment and entrepreneurial development, and the state unified plan developed by the work force development board.

NEW SECTION. Sec. 2. (1) On or before September 1, 1999, the director of community, trade, and economic development shall submit a plan to the governor for transferring the department's trade, business development, tourism, and economic development responsibilities and authorities to the newly created department of trade and economic development, as provided in this act.

(a) The reorganization plan shall include, but is not limited to, the following elements:

(i) Strategies for a smooth transfer of responsibilities and authorities to the newly created department of trade and economic development, including implementation steps, evaluation measures, and benchmarks to measure the effectiveness of the implementation steps;

(ii) Division of staff, supplies, equipment, and office space between the newly created department of trade and economic development and the department that is renamed as the department of community development; and

(iii) Recommendations for statutory changes for a more appropriate division of responsibilities and authorities.

(b) In developing the reorganization plan required under this section, the director shall establish an advisory committee comprised of:

(i) Two members of the house of representatives, one member from each political caucus appointed by the co-speakers of the house of representatives;

(ii) Two members of the senate, one member from each political caucus appointed by the president of the senate;

(iii) The director of financial management or the director's designee; and

(iv) Representatives of groups using services and programs of the department that include, but are not limited to counties, cities, port districts, economic development councils, associate development organizations, businesses, low-income housing interests, the for-profit and nonprofit housing industries, Indian tribes, community service organizations, public safety groups, nonprofit community and economic development organizations, international trade organizations, minority and women business organizations, and other organizations the director determines necessary for the development of the reorganization plan.

(c) The office of financial management, in consultation with the department, shall advise the director and the advisory council on matters relating to the department's budget and program functions.

(d) The director shall implement the reorganization plan, as approved by the governor.

(e) Effective October 1, 1999, the department of trade and economic development shall be created, the transfer of responsibilities and authorities to this newly created department shall occur, and the department of community, trade, and economic development shall be renamed as the department of community development.

(2) On or before September 1, 2000, the director of trade and economic development shall submit an economic development plan for the state of Washington to the legislature. The director shall also submit an updated economic development plan to the legislature every two years thereafter.

(a) The economic development plan shall be based on:

(i) A study and review of economic development strategies, including work force training, industrial modernization, business recruitment and retention, technology diffusion, sustainable development, export assistance, tourism, investment, and entrepreneurial development;

(ii) A study and review of economic development service delivery models, including urban and rural structures, centralized and decentralized systems, public and private organizations, and government-supported and self-sustaining programs;

(iii) A study and review of current state and local policies and programs that promote or affect economic development and a determination of their cost-effectiveness, level of cooperation with other public and private programs, and consistency with sustainable development precepts; and

(iv) The state unified plan for the work force development system developed by the work force development board.

(b) The department's research, analysis, and consultation in preparation of the economic development plan may include, but is not limited to:

(i) An analysis of economic development policies and programs of other states and nations;

(ii) An analysis of the impact of various business or industrial sectors on the state's economy; and

(iii) An analysis of economic trends within the state and with regional and primary international trading partners.

(i) Assessments of the state's economic strengths, weaknesses, opportunities, and challenges;

(ii) Goals, objectives, and strategies for the delivery of economic development services and products;

(iii) A performance measurement system for state and local economic development efforts; and

(iv) Implementation steps for carrying out the plan's strategies and recommendations, including proposals for legislative and administrative action.

(d) In developing the economic development plan required under this subsection, the director shall establish an advisory committee comprised of:

(i) One member from each caucus of the senate, appointed by the president of the senate; and one member from each caucus of the house of representatives, appointed by the co-speakers of the house of representatives;

(ii) Two members representing business, appointed jointly by the president of the senate and the co-speakers of the house of representatives; and two members representing labor, appointed jointly by the president of the senate and the co-speakers of the house of representatives;

(iii) One member representing local associate development organizations, selected by the Washington association of economic development councils; and

(iv) One member from the department of trade and economic development, one member from the department of community development, one member from the work force development board, and one member from the office of financial management, all appointed by the governor."