BILL REQ. #:  S-3717.2 

Read first time 01/12/2006.   Referred to Committee on International Trade & Economic Development.

     AN ACT Relating to assisting small manufacturers; adding a new section to chapter 43.330 RCW; adding a new chapter to Title 24 RCW; creating a new section; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that:
     (a) To perform in the emerging global marketplace, Washington manufacturers must master new technologies, production processes, and methods of work organization;
     (b) Only through modernization can Washington manufacturers both compete successfully in the market of the future and pay good wages;
     (c) Most small and midsize manufacturers cannot easily access the technical assistance and skills training needed to make them globally competitive;
     (d) To be effective, any program to improve the capability of Washington small and midsize manufacturers must reflect the specific needs and capabilities of those firms.
     (2) It is the intent of the legislature that the state increase its support for delivery of modernization services to small and midsize manufacturers and leverage federal and private resources devoted to such efforts. It is the further intent of the legislature that the state facilitate the delivery of modernization services and:
     (a) Encourage small and midsize firms to aggregate their demand for training and other modernization services, thus driving down the cost to the individual firm and securing more effective services; and
     (b) Encourage large firms to support training consortia among their suppliers and validate the importance of high performance work organization and workplace learning as desirable supplier practices.

NEW SECTION.  Sec. 2   (1) Washington manufacturing services is organized as a private, nonprofit corporation in accordance with chapter 24.03 RCW and this section. The mission of the center is to operate a modernization extension system, coordinate a network of public and private modernization resources, and stimulate the competitiveness of small and midsize manufacturers in Washington.
     (2) Washington manufacturing services shall be governed by a board of directors. A majority of the board of directors shall be representatives of small and medium-sized manufacturing firms and industry associations, networks, or consortia. The board shall also include at least one member representing labor unions or labor councils and, as ex officio members, the director of the department of community, trade, and economic development, the executive director of the state board for community and technical colleges, and the director of the work force training and education coordinating board, or their respective designees.
     (3) Washington manufacturing services may:
     (a) Charge fees for services, make and execute contracts with any individual, corporation, association, public agency, or any other entity, and employ all other legal instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter; and
     (b) Receive funds from federal, state, or local governments, private businesses, foundations, or any other source for purposes consistent with this chapter.
     (4) Washington manufacturing services shall:
     (a) Develop policies, plans, and programs to assist in the modernization of businesses in targeted sectors of Washington's economy and coordinate the delivery of modernization services;
     (b) Provide information about the advantages of modernization and the modernization services available in the state to federal, state, and local economic development officials, state colleges and universities, and private providers;
     (c) Collaborate with the Washington quality initiative in the development of manufacturing quality standards and quality certification programs;
     (d) Serve as an information clearinghouse and provide access for users to the federal manufacturing extension partnership national research and information system; and
     (e) Provide, either directly or through contracts, assistance to industry associations, networks, or consortia, that would be of value to their member firms in:
     (i) Adopting advanced business management practices such as strategic planning and total quality management;
     (ii) Developing mechanisms for interfirm collaboration and cooperation;
     (iii) Appraising, purchasing, installing, and effectively using equipment, technologies, and processes that improve the quality of goods and services and the productivity of the firm;
     (iv) Improving human resource systems and work force training in a manner that moves firms toward flexible, high-performance work organizations;
     (v) Developing new products;
     (vi) Conducting market research, analysis, and development of new sales channels and export markets;
     (vii) Improving processes to enhance environmental, health, and safety compliance; and
     (viii) Improving credit, capital management, and business finance skills.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.330 RCW to read as follows:
     (1) In carrying out the targeted sector assistance authorized under RCW 43.330.090, the department shall:
     (a) Assist Washington manufacturing services in applying for federal and private grants; and
     (b) Contract with Washington manufacturing services for the delivery of:
     (i) Educational assistance and training services to industry associations, networks, or consortia on continuous process improvement; quality assurance; environmental, health, and safety compliance; and market expansion opportunities; and
     (ii) Technical assistance and consulting services to individual manufacturing firms.
     (2) The department shall require Washington manufacturing services to collect such information as is necessary to determine the effectiveness of its services.

NEW SECTION.  Sec. 4   The department of community, trade, and economic development shall contract with Washington manufacturing services to develop and implement an educational strategy for assisting small manufacturing firms, with an emphasis on manufacturers who employ one hundred or fewer employees. The educational assistance program may include a combination of seminars and training sessions that provide broad instruction to a large cross section of small manufacturing employers and a program to provide direct consulting services for individual manufacturing firms. Up to a maximum of thirty percent of the funding for the Washington manufacturing services contract may be used for sponsoring seminars and training sessions. The remaining funding for the Washington manufacturing services contract shall be used to provide individualized consulting services to companies with one hundred or fewer employees. Firms that participate in this individualized training program may be required to contribute up to fifty percent of the cost of the consulting services. The educational assistance program should complement other department of community, trade, and economic development, department of ecology, or other agency strategies designed for assisting manufacturers and industrial processors.

NEW SECTION.  Sec. 5   The sum of four hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2007, from the general fund to the department of community, trade, and economic development to carry out the purposes of section 4 of this act.

NEW SECTION.  Sec. 6   Sections 1 and 2 of this act constitute a new chapter in Title 24 RCW.