February 22, 1999

BILL ANALYSIS

TO:       Members, Committee on Economic Development, Housing,  and Trade

FROM:     Jean Ann Quinn, Counsel  (786-7310)

RE:       HB 2029 - Creating a state plan for economic development.

 Brief Summary of Bill

CRequires the Department of Community, Trade, and Economic Development to create and maintain a state economic development plan by September 15, 2000.

CRequires that the plan be based on a study and review of economic development issues and current state and local policies that affect economic development.

1

BACKGROUND:

State and local government agencies, as well as private sector businesses, pursue a variety of economic development activities independent of each other.  For example, the Department of Community, Trade, and Economic Development and the Department of Agriculture each have programs to promote the export of Washington products.   Since 1989, when the Washington State Economic Development Board (since disbanded) issued its final report on recommendations for a long-term economic development strategy, there has not been a statewide, comprehensive, and coordinated plan to guide and maximize the state=s economic development efforts.  

SUMMARY:

The Department of Community Trade and Economic Development is required to create and maintain an economic development plan for the state of Washington.

The economic development plan must be based on a review of current state and local policies that promote or affect economic development, and a study of overall economic development issues, such as work force training, industrial modernization, technology diffusion, sustainable development, export assistance, tourism, investment, and entrepreneurial development.  

In developing the plan, the department is authorized to analyze the economic development policies of other states and countries, the economic trends within the state and with the state=s regional and international trading partners; and the impact of various business and industrial sectors on Washington=s economy.  The department is also encouraged to consult with the private sector and the academic community in preparing the plan.

The plan is to be delivered to the Legislature by September 15, 2000, and updated every two years.  The plan must include proposals for the legislation and/or administrative actions necessary for its implementation.

Appropriation: None.

Fiscal Note:  Requested February 22, 1999.

Effective Date:  Ninety days after adjournment of session in which bill is passed.