H-1541              _______________________________________________

                                                   HOUSE BILL NO. 1999

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Cantwell, Schoon, Hargrove, Rasmussen, Moyer, Walk, Doty, Winsley and P. King

Read first time 2/15/89 and referred to Committee on Trade & Economic Development. Referred to 2/17/89 to Committee on Appropriations.

AN ACT Relating to flexible manufacturing networks; creating new sections; and making an appropriation.

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

NEW SECTION. Sec. 1.     The legislature finds that small businesses are an integral part in facilitating innovation and growth in manufacturing in Washington.  The legislature further finds that cooperative efforts among small businesses on new product design, marketing, training programs, and other activities enable small businesses to add additional value to their products, access new markets, get a competitive edge on prices, increase the income of their workers, and modernize to meet new market demands.  The legislature therefore declares that it is beneficial to the economy of the state to encourage industry to form flexible manufacturing networks.

NEW SECTION. Sec. 2.     The flexible manufacturing network grant program is established in the business assistance center within the department of trade and economic development.  The business assistance center shall award grants on a competitive basis in order to establish one or more pilots under this program.  An application for a grant must include:

          (1) A description of the applicant's plan to screen and establish a network of businesses within an industry subsector to provide economies of scale, or opportunities for joint marketing, training, manufacturing, or product development that are not currently occurring among these businesses;

          (2) A description of the process for recruiting and training network brokers to establish communications among the firms and identify network opportunities; and

          (3) An assessment of how existing programs can be used to promote flexible manufacturing within the network.

          Successful grant applicants must report to the business assistance center on the level of participation and the economic benefits obtained under the program.  The business assistance center shall report to the legislature by December 31, 1990, on the results of the program and any recommendations for its reenactment.

NEW SECTION. Sec. 3.     The sum of one hundred thousand dollars, or as much thereof as may be necessary is appropriated for the biennium ending June 30, 1991, from the general fund to the department of trade and economic development to carry out the purposes of this act.