HOUSE BILL ANALYSIS

HB 2982

Title: An act relating to the development of a state-wide economic development strategic plan for economic development.

Brief Description: Developing a state-wide strategic plan for economic development.

Sponsors: Representatives Veloria, Van Luven, Eickmeyer, Dunn, Ruderman and Kenney; by request of Lieutenant Governor.

Brief Summary of Bill

CDirects the Legislative Committee on Economic Development to take the lead in the development of a state-wide strategic plan for economic development.

CThe state-wide strategic plan for economic development must set priorities and concentrate resources on those identified priorities, and contain implementation steps and a process for institutionalizing economic development planning.

HOUSE ECONOMIC DEVELOPMENT, HOUSING & TRADE COMMITTEE

     Staff:  Kenny Pittman (786-7392)

     Background:

The Legislative Committee on Economic Development (LCED) was created by statute in 1985 to provide responsive and consistent involvement by the legislature in economic development to maintain a healthy state economy and to provide employment opportunities to Washington residents.  The LCED is composed of 12 legislators, six from each house and an equal number from each caucus.  The Lieutenant Governor is the chair of LCED.

In 1999, the LCED conducted a series of hearings throughout the state to receive input on the development of a state-wide economic development strategy.  During those hearings, businesses and communities expressed a need for a state-wide economic development strategy to help guide the state=s economic development efforts.

     Summary of Bill:

The Legislative Committee on Economic Development (LCED) is directed to take the lead responsibility for the development of a state-wide plan for economic development.  The economic development plan must be developed in conjunction with the Department of Community, Trade, and Economic Development (DCTED) and an advisory board that consists of business, labor and other interests.

In developing the plan the LCED must consider: (1) regional economic, cultural and political differences; (2) the special challenges facing rural and urban communities; and (3) the special contributions of and challenges facing women and minority-owned businesses.  The plan must also set priorities and concentrate resources on those identified priorities, and contain implementation steps and a process for institutionalizing economic development planning.

The state-wide plan for economic development must contain the following elements: (1) new strategies that seek to improve the overall competitiveness of groups of similar businesses; (2) direction to the DCTED to develop programs consistent with the plan; (3) direction to the DCTED to assist local governments and others in developing regional economic development plans that are consistent with the state-wide plan; and (4) direction to the DCTED to develop a professional research capacity to keep the state=s trade assistance operations aware of trade opportunities.

Appropriation:   None.

Fiscal Note:   Requested January 26, 2000.

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