WHEREAS, value-added food processing is an economic pillar of the State of Washington and in 1991 became the state's second largest manufacturing industry-employing 38,000 workers and providing $873 million in wages, $6.16 billion in gross business income and $20.67 million in Business and Occupational Tax; and

WHEREAS, over 80 percent of food products produced and processed in the State of Washington are sold in national and international markets, thereby generating new money for the state; and

WHEREAS, the Washington State Legislature in 1987 (Section 314 of Chapter 7, 1st Extraordinary Session) and 1989 (RCW 43.31.430) requested and received reports from the Department of Trade and Economic Development outlining strategies for retention and development of food processing as one of eight key targeted industry sectors; and

WHEREAS, processing crops, unlike other manufactured components, are usually seasonal and perishable and require expedited handling and an Informed regulatory climate to avoid loss due to spoilage, disease or decay; and

WHEREAS, food processing companies of all sizes are heavily impacted by federal, state and local legislative and, regulatory actions (sometimes conflicting) which affect the cost and therefore the competitive position of the Industry; and

WHEREAS, improving the competitive positions of existing Washington food processing companies Is the most certain way to retain and expand the food processing industry; and

WHEREAS, the State of Washington stands to benefit economically and can enhance the quality of life of its residents by expanding the value-added component of agricultural products through implementation of AG-2000 (the long-range strategic plan for the state's agribusiness industry, developed in cooperation with the Washington Department of Agriculture); and this expansion can result in new jobs, increased income, more profitability for businesses and expanded revenue for the state; and

WHEREAS, expansion of the food processing industry, including attracting now firms, will benefit both rural and urban areas and the thousands of individuals, organizations and businesses that supply the state's food processing industry with raw products, labor, supplies, equipment, resources and services;

NOW, THEREFORE, I, Booth Gardner, Governor of the State of Washington, by virtue of the authority vested in me, do hereby formally establish the Food Processing Industry Development Council with the purpose of strengthening the food processing Industry. In carrying out this purpose, the Council is encouraged to work with the legislature and state agencies to seek ways to accomplish the following:

I. Establish a business climate that encourages production of the numerous crop and livestock commodities used as inputs to the food processing industry.

II. Encourage retention and development of existing food processing firms.

III. Provide incentives to expand existing businesses, attract new firms and encourage use of new processes.

IV. Identify impediments to industry growth and generate voluntary actions by the industry that will enhance the quality of life of our state's citizens.

V. Evaluate the competitive position of Washington's food processing industry, including the Impact of current and proposed regulations and taxes, relative to other states and nations, In order to prevent non-competitive increases In the cost of food production and marketing.

VI. Avoid laws and regulations that restrict interstate trade and that may be in conflict with federal food safety requirements.

VII. Monitor the economic performance of the value-added food processing Industry to identify the most promising areas and market for expansion, as well as to provide advance warning of declines in the existing Industry.

VIII. Recognize that unique considerations may be necessary for firms that process seasonal and perishable raw food products.

IX. Assure the continued availability of land, water and energy to support growth and development of agribusiness in the state.

X. Encourage the development of the physical and economic Infrastructure (including water, waste treatment facilities, transportation, trained labor, technology and education) necessary to support a viable food processing Industry.

XI. Encourage development of new value-added technologies for existing and new agricultural crops, varieties and products.

The Council shall consist of the 30 members of the ad hoc committee appointed by the Governor In 1989 or thereafter, pursuant to AG-2000. Should a vacancy occur on the Council after August 1, 1992, the Governor shall determine whether a replacement is needed and, if so, appoint a replacement to assure a balanced representation of the food processing Industry, associate Industry trade organizations, local economic development organizations, support industries, research institutions, and state government.

The membership shall consist of 25 or less members who are managing owners, officers or top management representatives of food processing and related Industry sectors as follows:

Up to 17 members from direct food processing and/or related production support industries;

Up to three (3) members from associated Industry trade organizations;

Up to three (3) members from related finance, legal, technology, and transportation sectors; and

Up to two (2) members representing local economic development organizations.

Five (5) of the members shall represent state agencies and shall be ex-officio, non-voting members. Those agencies are: The Washington State Departments of Agriculture, Trade and Economic Development, Community Development, Ecology, and Labor and Industries.

Council members shall serve without compensation.

The Governor shall appoint the chair who will serve a one-year term. The Council shall elect a vice chair who will serve a one-year term.

Meetings shall be held four times per year or as determined by the chair.

Staff support shall be collectively provided by Washington State Department of Agriculture (Market Development Division), and Washington State Department of Trade and Economic Development (Targeted Sector Program). Additional staff input will be provided by the Business Assistance Center, IMPACT Center at Washington State University, and other state agencies as needed.

The council and its responsibilities shall be terminated on June 30, 1995.

This Executive Order shall take effect immediately.

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