BILL REQ. #:  S-1448.1 

Read first time 02/12/2007.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to the economic development commission; amending RCW 43.162.005, 43.162.010, 43.162.020, and 43.162.030; adding a new section to chapter 43.162 RCW; and making appropriations.

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

Sec. 1   RCW 43.162.005 and 2003 c 235 s 1 are each amended to read as follows:
     The legislature finds that Washington's innovation and trade-driven economy has provided tremendous opportunities for citizens of the state, but that there is no guarantee that globally competitive firms will continue to grow and locate in the state. The current economic development system is fragmented among numerous programs, councils, centers, and organizations with inadequate overall coordination and insufficient guidance built into the system to ensure that the system is responsive to its customers. The current economic development system's data-gathering and evaluation methods are inconsistent and unable to provide adequate information for determining how well the system is performing on a regular basis so the system may be held accountable for its outcomes.
     The legislature also finds that developing ((an effective)) a comprehensive economic development ((strategy for the state and operating)) strategic plan to guide the operation of effective economic development programs, including workforce training, infrastructure development, small business assistance, technology transfer, and export assistance, ((are)) is vital to the state's efforts to increase the competitiveness of state businesses, encourage employment growth, increase state revenues, and generate economic well-being. ((In addition, the legislature finds that)) There is a need for responsive and consistent involvement of the private sector in the state's economic development efforts. It is the intent of the legislature to create an economic development commission that will ((develop and update the state's economic development strategy and performance measures and provide advice to and oversight of the department of community, trade, and economic development)) provide planning, coordination, evaluation, monitoring, and policy analysis and development for the state economic development system as a whole, and advice to the governor and legislature concerning the state economic development system.

Sec. 2   RCW 43.162.010 and 2003 c 235 s 2 are each amended to read as follows:
     (1) The Washington state economic development commission is established ((to oversee the economic development strategies and policies of the department of community, trade, and economic development)) as a state agency.
     (2)(a) The Washington state economic development commission shall consist of ((at least seven and no more than nine)) ten voting members appointed by the governor with the consent of the senate as follows: Six representatives of the private sector, one representative of labor, one representative of port districts, one representative of institutions of higher education, and one representative of associate development organizations. The director of the department of community, trade, and economic development, the director of the workforce training and education coordinating board, and the chairs of the standing committees of the house of representatives and the senate overseeing economic development policies shall serve as nonvoting ex officio members.
     The chair of the commission shall be a nonvoting member selected by the governor with the consent of the senate, and shall serve at the pleasure of the governor. In selecting the chair, the governor shall seek a person who understands the future economic needs of the state and nation and the role the state's economic development system has in meeting those needs. Each member of the commission may appoint a designee to function in his or her place and designees appointed by a voting member shall have the right to vote.
     (b) In making the appointments, the governor shall consult with organizations that have an interest in economic development, including, but not limited to, industry associations, labor organizations, minority business associations, economic development councils, chambers of commerce, port associations, tribes, and the chairs of the legislative committees with jurisdiction over economic development.
     (c) The members shall be representative of the geographic regions of the state, including eastern and central Washington, as well as represent the ethnic diversity of the state. ((Representation shall derive primarily from the)) Private sector((, including, but not limited to,)) members shall represent existing and emerging industries, small businesses, women-owned businesses, and minority-owned businesses((, but other sectors of the economy that have experience in economic development, including labor organizations and nonprofit organizations, shall be represented as well. A minimum of seventy-five percent of the members shall represent the private sector)). Members of the commission shall serve statewide interests while preserving their diverse perspectives, and shall be recognized leaders in their fields with demonstrated experience in economic development or disciplines related to economic development.
     (3) Members appointed by the governor shall serve at the pleasure of the governor for three-year terms((, except that through June 30, 2004, members currently serving on the economic development commission created by executive order may continue to serve at the pleasure of the governor. Of the initial members appointed to serve after June 30, 2004, two members shall serve one-year terms, three members shall serve two-year terms, and the remainder of the commission members shall serve three-year terms)).
     (4) ((The commission chair shall be selected from among the appointed members by the majority vote of the members.
     (5))) The commission may establish committees as it desires, and may invite nonmembers of the commission to serve as committee members.
     (5) The director of the commission shall be appointed by the governor from a list of three names submitted by the voting members of the commission. The governor may request, and the commission shall provide, an additional list or lists from which the governor shall select the director. The lists compiled by the commission may not be subject to public disclosure. The governor may dismiss the director only with the approval of a majority vote of the commission. The commission, by a majority vote, may dismiss the director with the approval of the governor.
     (6) The commission may adopt rules for its own governance.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.162 RCW to read as follows:
     (1) The director shall serve as chief executive officer of the commission who shall administer the provisions of this chapter, employ such personnel as may be necessary to implement the purposes of this chapter, and utilize staff of existing operating agencies to the fullest extent possible.
     (2) The director may not be the chair of the commission.
     (3) Subject to the approval of the commission, the director shall appoint necessary deputy and assistant directors and other staff who shall be exempt from the provisions of chapter 41.06 RCW. The director's appointees shall serve at the director's pleasure on such terms and conditions as the director determines but subject to chapter 42.52 RCW.
     (4) The director shall appoint and employ such other employees as may be required for the proper discharge of the functions of the commission.

Sec. 4   RCW 43.162.020 and 2003 c 235 s 3 are each amended to read as follows:
     The Washington state economic development commission shall ((perform the following duties:
     (1) Review and periodically update the state's economic development strategy, including implementation steps, and performance measures, and perform an annual evaluation of the strategy and the effectiveness of the state's laws, policies, and programs which target economic development;
     (2) Provide policy, strategic, and programmatic direction to the department of community, trade, and economic development regarding strategies to:
     (a) Promote business retention, expansion, and creation within the state;
     (b) Promote the business climate of the state and stimulate increased national and international investment in the state;
     (c) Promote products and services of the state;
     (d) Enhance relationships and cooperation between local governments, economic development councils, federal agencies, state agencies, and the legislature;
     (e) Integrate economic development programs, including work force training, technology transfer, and export assistance; and
     (f) Make the funds available for economic development purposes more flexible to meet emergent needs and maximize opportunities;
     (3) Identify policies and programs to assist Washington's small businesses;
     (4) Assist the department of community, trade, and economic development with procurement and deployment of private funds for business development, retention, expansion, and recruitment as well as other economic development efforts;
     (5) Meet with the chairs and ranking minority members of the legislative committees from both the house of representatives and the senate overseeing economic development policies; and
     (6) Make a biennial report to the appropriate committees of the legislature regarding the commission's review of the state's economic development policy, the commission's recommendations, and steps taken by the department of community, trade, and economic development to implement the recommendations. The first report is due by December 31, 2004)):
     (1) Concentrate its major efforts on planning, coordination, evaluation, policy analysis, and recommending improvements to the state's training system;
     (2) Develop and maintain a state comprehensive plan for economic development, including but not limited to goals, objectives, and priorities for the state economic development system, and review the state system for consistency with the state comprehensive plan. In developing the state comprehensive plan for economic development, the commission shall use, but may not be limited to: Economic, labor market, and populations trend reports in office of financial management forecasts; the annual state economic climate report prepared by the economic climate council; joint office of financial management and employment security department labor force, industry employment, and occupational forecasts; the results of scientifically based outcome, net-impact, and cost-benefit evaluations; the needs of industry associations, industry clusters, businesses, and employees as evidenced in formal surveys and other input;
     (3) Establish and maintain an inventory of the programs of the state economic development system and related state programs; perform a biennial assessment of the ongoing and strategic economic development needs of the state; and assess the extent to which the economic development system and related programs represent a consistent, coordinated, and integrated approach to meet such needs;
     (4)(a) Monitor for consistency with the state comprehensive plan for economic development the policies and plans established for:
     (i) Business and technical assistance by the small business development center, the Washington manufacturing service, the Washington technology center, associate development organizations, the department of community, trade, and economic development, and the office of minority and women-owned business enterprises; and
     (ii) Export assistance by the small business export finance assistance center, the international marketing program for agricultural commodities and trade, the department of agriculture, the center for international trade in forest products, associate development organizations, and the department of community, trade, and economic development;
     (b) Work with the workforce training and education coordinating board to ensure alignment of the state comprehensive plan for economic development with the state comprehensive plan for workforce training and education; and
     (c) Review and make recommendations to the office of financial management and the legislature on budget requests and legislative proposals relating to the state economic development system for purposes of consistency with the state comprehensive plan for economic development;
     (5) Provide for coordination among the different agencies, organizations, and components of the state economic development system at the state level and at the regional level;
     (6) Advocate for the state economic development system and for meeting the needs of industry associations, industry clusters, businesses, and employees;
     (7) Develop a consistent and reliable database on participation rates, costs, program activities, and outcomes from publicly funded economic development programs in this state;
     (8) Establish standards for data collection and maintenance for providers in the economic development system in a format that is accessible to use by the commission. The commission shall require a minimum of common core data to be collected by each entity providing economic development services with public funds and shall develop requirements for minimum common core data in consultation with the economic climate council, the office of financial management, and the providers of economic development services;
     (9) Establish minimum common standards and metrics for program evaluation of economic development programs, and monitor such program evaluations;
     (10) Every two years administer scientifically based outcome evaluations of the state economic development system including, but not limited to, surveys of industry associations, industry cluster associations, and businesses served by publicly funded economic development programs; matches with employment security department payroll and wage files; and matches with department of revenue tax files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state economic development system;
     (11) Provide for effectiveness and efficiency reviews of the state economic development system;
     (12) Participate in the development of coordination criteria for business recruitment, expansion and retention activities carried out by the department of community, trade, and economic development, and related programs and services provided by local economic development entities such as ports, associate development organizations, and chambers of commerce;
     (13) Facilitate the development of school-to-work transition programs that combine classroom education and on-the-job training in high demand industries and occupations which evidence a gap between the need for skilled workers and the supply available from state education and training programs; and
     (14) Evaluate proposals for expenditure from the economic development strategic reserve account and recommend expenditures from the account.
     The commission may delegate to the director any of the functions of this section.

Sec. 5   RCW 43.162.030 and 2003 c 235 s 4 are each amended to read as follows:
     (((1) The Washington state economic development commission shall receive the necessary staff support from the staff resources of the governor, the department of community, trade, and economic development, and other state agencies as appropriate, and within existing resources and operations.
     (2))) Creation of the Washington state economic development commission shall not be construed to modify any authority or budgetary responsibility of the governor or the department of community, trade, and economic development.

NEW SECTION.  Sec. 6   (1) The sum of six hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2008, from the economic development strategic reserve account created under RCW 43.330.250 to the economic development commission for the purposes of this act.
     (2) The sum of eight hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the economic development strategic reserve account created under RCW 43.330.250 to the economic development commission for the purposes of this act.