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House Bill Analysis — 2SSB 5269, Washington State Manufacturing (Hearing 3/17/23)

Summary

A House Bill Analysis of 2SSB 5269 prepared by the Office of Program Research for the Innovation, Community & Economic Development, & Veterans Committee, with a hearing date of 3/17/23 and staff Cassie Jones. The brief description is Concerning Washington state manufacturing, and the bill is sponsored by the Senate Committee on Ways & Means. The summary says the Department of Commerce must perform an independent assessment of opportunities in new and emerging industries, develop a state industrial strategy, and appoint an industrial policy advisor. The analysis lists Appropriation: None and says a fiscal note is available.

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“House Bill Analysis — 2SSB 5269, Washington State Manufacturing (Hearing 3/17/23).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-03-17-a31010-d259510-bill-analysis-300d5e28d8/, SHA-256 81d503f5a642c360af180dc30775bc2c644d06e99b7b7129965f79501629ec1f.

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Washington State                  BILL
House of Representatives
Office of Program Research   ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
                                      2SSB 5269
Brief Description: Concerning Washington state manufacturing.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Shewmake,
    Keiser, Nguyen, Randall, Valdez and Wellman).


                           Brief Summary of Second Substitute Bill
          • Requires the Department of Commerce to: (1) perform an independent
            assessment of opportunities to capture new and emerging industries that
            align with statewide greenhouse gas reduction limits and strengthen the
            state's manufacturing base; (2) develop a state industrial strategy based
            on the independent assessment; and (3) appoint an industrial policy
            advisor to guide implementation of the state industrial strategy and
            perform other specified duties.


Hearing Date: 3/17/23

Staff: Cassie Jones (786-7303).

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, the creative economy, forest products, life sciences and biotechnology, maritime,
and the military. Sector leads work closely with the Governor, industry heads, and government



     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.

House Bill Analysis                             -1-                                       2SSB 5269
leaders to develop strategies to support business growth statewide.

The Washington BEST Manufacturing Act.
In 2021, the Legislature passed The Washington BEST Manufacturing Act (Act), which directed
Commerce to develop a biennial report on the state of the manufacturing and research and
development industry and workforce. The report must identify progress or challenges the state
has encountered in achieving the goal and identify recommendations. Commerce must convene
a Manufacturing Council to advise and consult on the development of the biennial report and
recommendations. The Act also established a workforce innovation sector lead within
Commerce.

Summary of Bill:

Commerce must perform an independent assessment of opportunities for Washington to capture
new and emerging industries that align with statewide greenhouse gas reduction limits and
strengthen its existing manufacturing base. The independent assessment must submitted to the
appropriate committees of the Legislature by October 1, 2024. Commerce must use the
independent assessment to develop a state industrial strategy by June 1, 2025.

The independent assessment must include, but is not limited to:
   • an assessment of how the transition to net zero emissions by 2050 will impact
      manufacturing in Washington;
   • an assessment of the needs of the state's existing manufacturers;
   • the identification of opportunities to build and maximize environmental and economic
      benefits of a circular economy in new and existing industries;
   • the identification of requirements to attract new investment;
   • the identification of opportunities to support minority and women-owned firms, and small
      and medium-sized firms in capturing new and emerging industries;
   • the identification of existing and potential future gaps in the state's manufacturing sector
      that inhibit in-state manufacturers from creating the infrastructure and goods to transition
      to the net-zero economy; and
   • an evaluation of opportunities for the state's use of public ownership investment in
      developed and emerging manufacturing industries.

Commerce must appoint an industrial policy advisor to ensure that Washington fully leverages
available federal funding for manufacturing to meet the state's economic development goals and
statutory greenhouse gas emissions reductions and guide implementation of state industrial
strategy. The industrial policy advisor must:
    • track federal and other funding opportunities to transform and strengthen existing
       Washington manufacturers and promote the growth of new and emerging industries;
    • alert Washington manufacturers to relevant federal and other funding opportunities;
    • support Washington manufacturers in applying for federal and other funding opportunities
       and in completing required reporting;
    • work to ensure that Washington's pursuit of its manufacturing and greenhouse gas


House Bill Analysis                            -2-                                       2SSB 5269
      reduction goals are aligned and mutually reinforcing;
    • foster interagency coordination and collaboration on manufacturing-related policymaking
      and activities;
    • coordinate with the workforce innovation sector lead, particularly with respect to building
      the manufacturing workforce pipeline; and
    • provide quarterly reports to the Manufacturing Council.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                       2SSB 5269

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