Report - 2021 03 25 A28816 D233683 Bill Report 1170 S Sbr Bfst Ta 21

Summary

A Senate Bill Report on SHB 1170, as of March 23, 2021, concerning building economic strength through manufacturing, prepared by staff of the Senate Committee on Business, Financial Services & Trade. The report records that the bill passed the House 96-0 and is sponsored by the House Committee on Community & Economic Development. It states the bill creates the Washington BEST Manufacturing Act with a goal to double the state's manufacturing base, small businesses, and women and minority owned businesses within ten years. It requires the Department of Commerce to prepare a biennial report, convene a manufacturing council, fund regional cluster initiatives, appoint a workforce innovation sector lead, and report beginning December 1, 2022, and it creates a subaccount under the economic development strategic reserve account. Supporting testimony cites the impact of COVID-19 on manufacturing.

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                            SENATE BILL REPORT
                                 SHB 1170

                                      As of March 23, 2021

Title: An act relating to building economic strength through manufacturing.

Brief Description: Concerning building economic strength through manufacturing.

Sponsors: House Committee on Community & Economic Development (originally sponsored
    by Representatives Boehnke, Paul, Walsh, Kloba, Shewmake, Santos, Springer, Dolan,
    Dye, Graham, Leavitt, McCaslin, Young, Walen, Riccelli, Bateman, Lovick, Lekanoff,
    Eslick, Frame, Barkis, Sutherland, Robertson and Dent).

Brief History: Passed House: 3/9/21, 96-0.
     Committee Activity: Business, Financial Services & Trade: 3/23/21.


                                     Brief Summary of Bill
           • Provides a state goal to double the state's manufacturing employment
             base, the number of small manufacturing businesses, and the number of
             women and minority-owned manufacturing businesses in ten years.
           • Requires the Department of Commerce (Commerce) to prepare a
             biennial report to the Legislature on the state of the manufacturing and
             research and development industry and workforce in Washington.
           • Requires Commerce to convene a manufacturing council to advise and
             consult on the development of the report and recommendations.
           • Requires Commerce to grant funding for initiatives that accelerate the
             development of regional clusters in manufacturing and research and
             development.
           • Requires Commerce to appoint a workforce innovation lead to
             coordinate needs identified by the manufacturing, clean technology, and
             aerospace sector leads.




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                        SHB 1170
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Kellee Gunn (786-7429)

     Background: Department of Commerce. The Department of Commerce (Commerce) is
     the lead state agency tasked with enhancing and promoting community and economic
     vitality in Washington. As the agency responsible for growing the Washington State
     economy, it supports sector leads in areas such as aerospace, agriculture and food
     manufacturing, clean technology, information and communication technology, forest
     products, life sciences and biotechnology, maritime, and the military. Sector leads work
     closely with the Governor, industry heads, and government leaders to develop strategies to
     support business growth statewide.

     The Economic Development Strategic Reserve Account. The account was created to
     prevent closure of a business or facility and relocation of a Washington State business or
     facility outside the state, or to recruit a business or facility to the state. Only the Governor,
     with the recommendation of the director of Commerce may authorize expenditures from the
     account.

     Summary of Bill: The Washington BEST Manufacturing Act. Creates the Washington
     BEST Manufacturing Act to build and reinforce the state's manufacturing and research and
     development (R&D) centers. The goal of the act is to double the state's manufacturing base,
     the number of small businesses, and the number of women and minority owned businesses
     within the next ten years. Commerce is responsible for identifying and developing
     strategies to achieve the goal.

     Report. Each fiscal biennium, Commerce must develop a report that identifies progress or
     challenges in achieving its objectives and make recommendations. The report may include:
        • recommendations to:
              1. develop a manufacturing workforce pipeline and specific subsectors that
                  present workforce opportunities or challenges;
              2. improve the state's competitiveness for manufacturing and R&D job retention
                  and creation; and
              3. streamline environmental permit approval and appeal processes.
        • identification of:
              1. high-demand global manufacturing industries and subsectors;
              2. site selection criteria of advanced manufacturing industries; and
              3. dislocated workers.
        • other information on:
              1. career-connected learning opportunities; and
              2. financial aid that may fund manufacturing workforce training.

     State agencies with workforce and economic development expertise are encouraged to assist
     identifying public policy challenges and developing recommendations. The Office of the


Senate Bill Report                              -2-                                         SHB 1170
     Superintendent of Public Instruction (OSPI) and the State Board for Community and
     Technical Colleges (SBCTC) must be consulted in the first biennial report to assess gaps in
     delivering hands on, skill-based learning remotely to those seeking to enter into, or upskill
     within, the manufacturing workforce.

     Manufacturing Council. Commerce must convene a manufacturing council to advise and
     consult on the development of the report and make recommendations. The director of
     Commerce is responsible for appointing council members. Council members must include
     representatives of certain businesses, educational institutions, and workforce entities. There
     should be equal representation between labor and business, regions, and women and
     minority manufacturing executives.

     Regionally Tailored Strategies. Commerce must provide grant funding for initiatives that
     accelerate the development of regional clusters intended to produce living wage jobs in
     manufacturing and research and development (R&D).

     Workforce Innovation Sector Lead and Reporting. Commerce must appoint a workforce
     innovation sector lead to coordinate workforce activities and needs identified by industry
     sectors to connect the work to inform funding allocation.

     Beginning December 1, 2022, and once every four years thereafter, Commerce must report
     on the progress made developing, recruiting, and retaining R&D employers and workforce
     with a description of how competitor state policies strengthen each state's R&D sector in
     comparison to Washington's.

     Account Created. A subaccount is established under the economic development strategic
     reserve account. Commerce may use the subaccount funds for regional cluster acceleration
     strategies. Commerce is encouraged to seek matching funds to any state funds appropriated
     to this account.

     Appropriation: None.

     Fiscal Note: Available.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.

     Staff Summary of Public Testimony: PRO: This bill is a result of seeing the impact of
     COVID-19 on manufacturing. It will allow us to double the manufacturing jobs, number of
     small businesses, and the number of women and minority owned businesses. This has been
     unanimously approved in committee and on the floor of the House. COVID-19 has brought
     the need for a strong manufacturing sector. Manufacturing provides the things we need,
     such as personal protection equipment, as well as good-paying jobs. The goal of this bill


Senate Bill Report                             -3-                                       SHB 1170
     will encourage more people to engage in manufacturing. Many of the manufacturers in
     Washington have suffered long-term impacts because of the pandemic. This policy is
     timely.

     This bill aligns with the mission of Commerce and with new programs the agency is about
     to begin on sector acceleration efforts. This will help get more resources out throughout the
     state.

     Persons Testifying: PRO: Representative Matt Boehnke, Prime Sponsor; Tommy Gantz,
     Association of Washington Business; Vladimir Gutman-Britten, Washington State Labor
     Council; John Dimas, Society of Professional Engineering Employees in Aerospace,
     International Federation of Professional and Technical Engineers; Chris Green, Department
     of Commerce; Michael Transue, Tacoma Pierce County Chamber and the Manufacturing
     Industrial Council for the South Sound.

     Persons Signed In To Testify But Not Testifying: No one.




Senate Bill Report                             -4-                                      SHB 1170


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