Memorandum - Proposed Substitute HB 1170, Building Economic Strength Through Manufacturing (January 28, 2021)
Summary
Proposed Substitute Bill Memorandum dated January 28, 2021, from Kyle Raymond, Research Analyst, to Members of the Community & Economic Development Committee, regarding Proposed Substitute HB 1170 - Building Economic Strength Through Manufacturing, sponsored by Representative Boehnke. It lists the provisions of HB 1170 and then the changes made by the proposed substitute, including that the goal of the state is to double the state's manufacturing employment base in the next 10 years. Other listed changes make the Department of Commerce responsible for identifying and developing strategies rather than for implementing the state goal, establish a manufacturing cluster acceleration subaccount, and require the Department to submit a R&D progress report to the Legislature every four years.
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“Memorandum - Proposed Substitute HB 1170, Building Economic Strength Through Manufacturing (January 28, 2021).”
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PROPOSED SUBSTITUTE BILL MEMORANDUM
To: Members of the Community & Economic Development Committee
From: Kyle Raymond, Research Analyst
Re: Proposed Substitute HB 1170 (H–0578.1) - Building Economic Strength Through
Manufacturing
Sponsored by Representative Boehnke
Date: January 28, 2021
A brief summary of HB 1170:
• Establishes a state goal for Washington to consistently have the highest share of
workforce involved in manufacturing and research and development (R&D) occupations
of any state.
• Requires the Department of Commerce (Department) to implement the state's goal.
• Requires the Department to conduct certain activities in support of achieving the goal,
including convening stakeholders, assessing remote manufacturing workforce training
challenges, establish regional offices, and issuing multiple reports to the Legislature.
• Requires the Department to employ a sector lead for general manufacturing, and a sector
lead for R&D.
• Provides that the Department may not discriminate against or fail to use best efforts on
behalf of any lawful manufacturing or research and development activity that seeks to
employ Washingtonians.
The proposed substitute (H-0578.1) makes the following changes to HB 1170:
• Provides that the goal of the state is to double the state's manufacturing employment base,
the number of small businesses, and the number of women and minority-owned
manufacturing businesses in the next 10 years.
• Provides that the Department of Commerce (Department) is responsible for identifying
and developing strategies to help achieve, rather than being responsible for
implementing, the state goal.
• Modifies the requirements related to the biennial report on progress and challenges
related to achieving the state goal, including specifying certain items the Department may
identify and recommend in support of achieving the state goal.
• Requires the Department to convene an advisory council, rather than manufacturing and
R&D stakeholders, to advise and consult on the report.
1
• Specifies requirements related to the formation and composition of the council, including
the entities represented, the individuals represented, and the geographic distribution of the
representatives.
• Encourages, rather than requires, state agencies to provide information and resources
requested to complete the biennial state goal progress report.
• Encourages the Department to consider the creation of regional offices or duty stations,
rather than requiring the Department to establish regional offices.
• Establishes a manufacturing cluster acceleration subaccount (Account) for the purpose of
making expenditures to support regional cluster development.
• Requires the Department to grant provided funding from the Account for initiatives that
accelerate the development of regional clusters intended to grow living wage jobs in
manufacturing and R&D.
• Requires the Department to submit a R&D progress report to the Legislature every four
years within existing resources.
• Removes the provision that the Department may not discriminate against or fail to use best
efforts on behalf of any lawful manufacturing or R&D activity that seeks to employ
Washingtonians.
2
1 AN ACT Relating to building economic strength through
2 manufacturing; adding new sections to chapter 43.330 RCW; and
3 creating a new section.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5 NEW SECTION. Sec. 1. This act may be known and cited as the
6 Washington BEST manufacturing act.
7 NEW SECTION. Sec. 2. It is the intent of the legislature that
8 Washington retain and build on its leadership in the manufacturing
9 and research and development sectors. The legislature finds that a
10 thriving research and production sector are complimentary and should
11 be promoted in every region of the state. The legislature finds this
12 is critical to provide a strong, resilient tax base for good schools,
13 safe streets, and community optimism. Therefore, the legislature
14 intends to identify and invest in strategies to ensure every
15 geographic region of the state can benefit from a strong
16 manufacturing and research and development base, with the goal of
17 doubling the state's manufacturing employment base, the number of
18 small businesses, and the number of women and minority-owned
19 manufacturing businesses in the next 10 years.
Code Rev/KS:akl 1 H-0578.1/21
1 NEW SECTION. Sec. 3. (1) The department is responsible for
2 identifying and developing strategies to help achieve the goals
3 established in section 2 of this act. In support of pursuing the
4 goal, the department must prepare and update each fiscal biennium a
5 report on the state of the manufacturing and research and development
6 industry and workforce. The report must identify progress or
7 challenges the state has encountered in achieving the goals
8 established in section 2 of this act and identify recommendations to
9 the legislature.
10 (2) The report may include, but not be limited to:
11 (a) Recommendations for specific actions to develop a
12 manufacturing workforce pipeline and specific manufacturing
13 subsectors that present workforce opportunities or challenges;
14 (b) Identification of dislocated workers;
15 (c) Career-connected learning opportunities;
16 (d) A survey of financial aid that can be leveraged to fund
17 training for the manufacturing workforce pipeline, such as Washington
18 college grant opportunities, passport to careers, and prison to
19 postsecondary funding;
20 (e) Recommendations on improving the state's competitiveness for
21 manufacturing and research and development job retention and
22 creation;
23 (f) Identification of high-demand advanced manufacturing
24 industries and subsectors globally;
25 (g) Identification of site selection criteria of advanced
26 manufacturing and research and development projects; and
27 (h) Recommendations of best practices to streamline environmental
28 permit approval and appeal processes for the purpose of getting
29 manufacturing businesses who want to site or expand in Washington
30 more certainty, faster.
31 (3) The department must convene a manufacturing council to advise
32 and consult on the development of the report and recommendations.
33 (a) The director or the director's designee must appoint to the
34 council such persons from the private, nonprofit, and public sectors
35 as may best inform the state's ability to innovate, diversify supply
36 chains, and expand living wage jobs in the manufacturing sector.
37 (b) Representatives must include small to mid-sized private
38 sector manufacturing businesses, labor and apprenticeship programs,
39 statewide business associations, higher education institutions, and
40 workforce partners. The department must work to ensure:
Code Rev/KS:akl 2 H-0578.1/21
1 (i) Equal representation of business and labor on the council;
2 (ii) That a majority of labor and business appointees to the
3 council come from outside the central Puget Sound counties to support
4 prioritizing economic diversification and strength across all of
5 Washington; and
6 (iii) That the council includes a strong array of voices from
7 women and minority executives and labor in manufacturing.
8 (4) All state agencies with expertise in workforce development
9 and economic development are encouraged to provide such information
10 and resources as may be requested to inform and facilitate
11 identification and analysis of public policy challenges and potential
12 recommendations for the report in subsections (1) and (2) of this
13 section.
14 (5) In its first biennial report, the department shall coordinate
15 with the office of the superintendent of public instruction and the
16 state board for community and technical colleges to assess any
17 inadequacy or gaps in delivering hands-on, skills-based learning
18 remotely to all Washingtonians seeking to enter the manufacturing
19 workforce or to be retrained for a transition within the
20 manufacturing workforce.
21 NEW SECTION. Sec. 4. (1) The department must support the
22 development of regionally tailored strategies to facilitate the
23 continued existence and development of manufacturing workforce across
24 the state.
25 (2) To support regional manufacturing cluster development and job
26 creation, the department must grant any funding provided in section 5
27 of this act for initiatives that accelerate the development of
28 regional clusters intended to grow living wage jobs in manufacturing
29 and research and development.
30 (3) The department is encouraged to consider the creation of
31 regional offices or establishing additional duty stations that
32 facilitate sector leads to be located in the regions most dependent
33 on their sector.
34 NEW SECTION. Sec. 5. (1) The manufacturing cluster acceleration
35 subaccount is established in the economic development strategic
36 reserve account. All receipts from appropriations made to the
37 manufacturing cluster acceleration subaccount shall be deposited into
38 the subaccount.
Code Rev/KS:akl 3 H-0578.1/21
1 (2) The department may make expenditures from the subaccount to
2 support regional cluster acceleration strategies, including:
3 Supporting projects to assist manufacturers to diversify their
4 customer base and supply chain, supporting pilot or demonstration
5 manufacturing projects coordination with organized cluster
6 initiatives, and supporting projects that are intended to increase
7 manufacturing and research and development jobs regionally.
8 (3) The department is encouraged to seek match funds for any
9 funds appropriated to this account and may utilize funds to match
10 nonstate funds being expended on a specific project that aligns with
11 the purpose of this section.
12 NEW SECTION. Sec. 6. (1) The department must appoint a
13 workforce innovation sector lead, to coordinate workforce activities
14 and needs identified by industry sector leads such as the
15 manufacturing, clean technology, and aerospace sector leads, and
16 connect this work with the lead workforce agencies to inform
17 strategic allocation of funding.
18 (2) Within existing resources, the department must report to the
19 appropriate committees of the legislature beginning December 1, 2022,
20 and continuing every fourth year thereafter, the progress made in
21 developing, recruiting, and retaining research and development
22 employers and workforce; and a description of how the state's policy
23 toolkit for developing strength in research and development as a
24 sector compares to competitor states.
25 NEW SECTION. Sec. 7. The duties in sections 2 through 6 of this
26 act are subject to the availability of amounts appropriated for the
27 specific purpose.
28 NEW SECTION. Sec. 8. Sections 2 through 7 of this act are each
29 added to chapter 43.330 RCW and codified with the subchapter heading
30 of "MANUFACTURING AND RESEARCH AND DEVELOPMENT SECTOR PROMOTION."
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Code Rev/KS:akl 4 H-0578.1/21
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