BILL REQ. #:  S-4567.1 

Read first time 01/23/08.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to industry clusters; and amending RCW 43.330.090.

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

Sec. 1   RCW 43.330.090 and 2007 c 228 s 201 are each amended to read as follows:
     (1) The department shall work with private sector organizations, industry and cluster associations, federal agencies, state agencies that use a cluster-based approach to service delivery, local governments, local associate development organizations, and higher education and training institutions in the development of industry cluster-based strategies to diversify the economy, facilitate technology transfer and diffusion, and increase value-added production. The industry clusters targeted by the department may include, but are not limited to, aerospace, agriculture, food processing, forest products, marine services, health and biomedical, software, digital and interactive media, transportation and distribution, and microelectronics. The department shall, on a continuing basis, evaluate the potential return to the state from devoting additional resources to an industry cluster-based approach to economic development and identifying and assisting additional clusters. The department shall use information gathered ((in each service delivery region)) by each regional office in formulating its industry cluster-based strategies and shall assist local communities in identifying regional industry clusters and developing industry cluster-based strategies.
     (2)(((a) The department shall promote, market, and encourage growth in the production of films and videos, as well as television commercials within the state; to this end the department is directed to assist in the location of a film and video production studio within the state.
     (b) The department may, in carrying out its efforts to encourage film and video production in the state, solicit and receive gifts, grants, funds, fees, and endowments, in trust or otherwise, from tribal, local, or other governmental entities, as well as private sources, and may expend the same or any income therefrom for the encouragement of film and video production. All revenue received for such purposes shall be deposited into the film and video promotion account created in RCW 43.330.092.
     (3))) In assisting in the development of regional and statewide industry cluster-based strategies, the department's activities shall include, but are not limited to:
     (a) Facilitating regional focus group discussions and conducting studies to identify industry clusters, appraise the current information linkages within a cluster, and identify issues of common concern within a cluster;
     (b) Supporting industry and cluster associations, publications of association and cluster directories, and related efforts to create or expand the activities of industry and cluster associations;
     (c) Administering a competitive grant program to fund activities designed to further regional cluster growth. In administering the program, the department shall work with an industry cluster advisory committee with equal representation from the workforce training and education coordinating board, the state board for community and technical colleges, the employment security department, business, and labor.
     (i) The industry cluster advisory committee shall recommend criteria for evaluating applications for grant funds and recommend applicants for receipt of grant funds.
     (ii) Applicants must be a nonprofit industry or industry cluster association and must include: (A) Organizations from at least two counties; (B) an academic or research institution; (C) a public agency or local government; and (D) participants from the local business community. ((Eligible organizations include, but are not limited to, local governments, economic development councils, chambers of commerce, federally recognized Indian tribes, workforce development councils, and educational institutions.))
     (iii) Applications must evidence financial participation of the partner organizations.
     (iv) ((Priority shall be given to applicants which will use the)) Grant funds must be used to: (A) Build linkages and ((joint projects, to)) mechanisms for information sharing among cluster members; (B) develop common resources and common training((, and to)); and (C) develop common research and development projects or facilities.
     (v) The maximum amount of a grant is one hundred fifty thousand dollars.
     (vi) A maximum of ((one)) three hundred thousand dollars total can go to King, Pierce, Kitsap, and Snohomish counties combined.
     (vii) Five percent of funds received for the grant program shall be used by the department, with the industry cluster advisory committee, to: (A) Identify and share with grant recipients the public and private resources available that could be more intensively devoted to assist industry clusters; and (B) identify mechanisms by which public resources can be coordinated and more efficiently delivered to support the growth and competitiveness of industry clusters, including consistent timing of grant applications, the development of common criteria for receipt of grants, and the establishment of grant review committees with overlapping membership. No more than ten percent of funds received for the grant program may be used by the department for administrative costs.
     (((4))) (3) As used in ((subsection (3) of)) this section, "industry cluster" means a geographic concentration of interdependent competitive firms that do business with each other((. "Industry cluster" also includes firms that sell)), selling inside and outside of the geographic region, as well as support organizations, institutions, and firms that supply research and technical assistance, training services, information services, raw materials, components, and business services.
     (4)(a) The department shall promote, market, and encourage growth in the production of films and videos, as well as television commercials within the state; to this end the department is directed to assist in the location of a film and video production studio within the state.
     (b) The department may, in carrying out its efforts to encourage film and video production in the state, solicit and receive gifts, grants, funds, fees, and endowments, in trust or otherwise, from tribal, local, or other governmental entities, as well as private sources, and may expend the same or any income therefrom for the encouragement of film and video production. All revenue received for such purposes shall be deposited into the film and video promotion account created in RCW 43.330.092.