SENATE BILL REPORT

                   SB 6540

              As Reported By Senate Committee On:

Commerce, Trade, Housing & Financial Institutions, February 3, 2000

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

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

Sponsors:  Senators Shin, Prentice, Hale, Jacobsen, Gardner, Heavey, B. Sheldon, Rasmussen, Oke, Costa, Winsley and Kohl‑Welles; by request of Lieutenant Governor.

Brief History:

Committee Activity:  Commerce, Trade, Housing & Financial Institutions:  2/1/2000, 2/3/2000 [DPS].

SENATE COMMITTEE ON COMMERCE, TRADE, HOUSING & FINANCIAL INSTITUTIONS

Majority Report:  That Substitute Senate Bill No. 6540 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Prentice, Chair; Shin, Vice Chair; Benton, Gardner, Hale, Rasmussen, T. Sheldon and Winsley.

Staff:  Dave Cheal (786-7576)

Background:  It is believed that establishing and implementing a clear statewide strategy for successful economic development will best prepare Washington to respond to the challenges and take advantages of future economic cycles.  Without a statewide economic development plan, the state=s budget and election cycles make it difficult for the state to adhere to consistent long term economic development policies and priorities.  The Legislative Economic Development Committee is created by statute and composed of 12 legislators, six from each house and an equal number from each caucus.  The Lieutenant Governor is the designated chair.  During the 1999 interim, this committee held several hearings in different regions of the state.  This bill embodies one of the committee=s recommendations.

Summary of Substitute Bill:  The Legislative Committee on Economic Development (Athe committee@) must take the lead responsibility for the development of a statewide plan for economic development.  The plan is developed in conjunction with the Department of Community, Trade, and Economic Development (Athe department@) and an advisory board appointed by the Lieutenant Governor that consists of business, labor and other interests.

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

Substitute Bill Compared to Original Bill:  The substitute bill gives the Lieutenant Governor the authority to appoint an advisory council and limits the size to 12 members.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  The Washington Association of Realtors supports the bill.

Testimony Against:  None.

Testified:  Jill Satran, WA Assn. of Economic Development Councils (pro).