BP BHEAD INT H

AN ACT Relating to economic diversification; amending RCW 43.63A.450; adding a new section to chapter 43.41 RCW; adding a new section to chapter 43.31 RCW; creating a new section; and making appropriations.

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

NEW SECTION. Sec. 1. The legislature finds that state-supported economic development efforts, including work force training, technology transfer, and industrial modernization, can make a significant difference in the health and diversification of the state's economy. There are numerous federal and private economic development grant programs and research projects designed to increase the competitiveness of American firms and local work forces, for which state agencies and local consortiums are eligible to apply. The legislature further finds that state agencies in Washington have not maximized the opportunities available to them to facilitate the receipt of federal and private funds by Washington firms, nor have they maximized the opportunities available to receive federal funds directly to augment state economic development efforts.

The legislature declares that it is the state's policy to maximize the use of federal and private funds for economic development purposes and to devote state resources to leverage federal and private dollars to supplement state economic development efforts, such as economic diversification. In furtherance of this policy, it is the purpose of section 2 of this act to authorize and fund a technical assistance and grant writing program within the office of financial management.

The legislature also declares that economic diversification, the process of making communities less reliant on one industry for their economic viability, can only be successful when federal and state resources are maximized and public-private partnerships are established. The community diversification program, created in 1990 and now a national model, likely cannot accomplish its purpose unless: Communities have access to resources such as the grant assistance program created in section 2 of this act; program funding cuts are restored and program funding is increased; and a targeted diversification fund is established to make local grants through the community diversification program. The purpose of this act is to: (1) Establish a grant assistance program to help local communities, especially those seeking to diversify, to build capacity locally for economic development; (2) increase the funding for the community diversification program; and (3) establish a diversification grant fund.

NEW SECTION. Sec. 2. A new section is added to chapter 43.41 RCW to read as follows:

The economic development grants program is created in the office of financial management. The program shall be operated by a managing director with the support of at least one grant writer either on contract or on staff. The managing director shall:

(1) Regularly review the federal register for opportunities to apply for grants, research projects, and demonstration projects;

(2) Stay abreast of grant opportunities with private foundations;

(3) Correspond and meet with federal officials, including those in the small business administration, the department of labor, the department of commerce, and the department of health and human services, as well as foundation officials, on the prospects for obtaining federal and private funds for economic development purposes in Washington state;

(4) Work with the agency heads and division directors of the departments of trade and economic development, the employment security department, the department of agriculture, the department of community development, the Washington technology center, and other state agencies as appropriate, to apprise them of the opportunities for federal and private grant dollars for economic development projects;

(5) Work with business, labor, and community groups to apprise them of the opportunities for federal and private grant dollars for economic development projects via publications, electronic bulletin boards, or toll-free phone lines;

(6) Assist state agencies in their grant-seeking efforts for economic development projects. Grant writing for and assistance in grant writing for projects sponsored or cosponsored by state agencies shall be the highest priority of the program's work;

(7) Assist local business, labor, and community consortiums in their grant-seeking efforts for economic development projects.

(8) Facilitate coordination and linkages between agencies and between local consortiums and state agencies that will increase the likelihood of success in grant seeking; and

(8) Garner the political support necessary from federal and state elected and appointed officials for success in grant seeking.

NEW SECTION. Sec. 3. A new section is added to chapter 43.31 RCW to read as follows:

The department shall ensure that the business assistance center, the small business development centers, and the associate development organizations that operate under the authority of the department notify their constituencies and clients of the availability of the technical assistance services of the economic development grants program created in section 2 of this act.

Sec. 4. RCW 43.63A.450 and 1990 c 278 s 2 are each amended to read as follows:

The community diversification program is created in the department of community development. The program shall include:

(1) The monitoring and forecasting of shifts in the economic prospects of major defense employers in the state. This shall include but not be limited to the monitoring of defense contract expenditures, other federal contracts, defense employment shifts, the aircraft and aerospace industry, computer products, and electronics;

(2) The identification of cities, counties, or regions within the state that are primarily dependent on defense or other federal contracting and the identification of firms dependent on federal defense contracts;

(3) Assistance to communities in broadening the local economic base through the provision of management assistance, assistance in financing, entrepreneurial training, and assistance to businesses in using off-the-shelf technology to start new production processes or introduce new products;

(4) Formulating a state plan for diversification in defense dependent communities in collaboration with the employment security department, the department of trade and economic development, and the office of financial management. The plan shall use the information made available through carrying out subsections (1) and (2) of this section; ((~~and~~))

(5) The identification of diversification efforts conducted by other states, the federal government, and other nations, and the provision of information on these efforts, as well as information gained through carrying out subsections (1) and (2) of this section, to firms, communities, and ((~~workforces~~)) work forces that are defense dependent; and

(6) Establishing and administering a grant program to local governments for diversification efforts.

The department shall, beginning January 1, 1992, report annually to the governor and the legislature on the activities of the community diversification program.

NEW SECTION. Sec. 5. (1) Eight hundred thousand dollars is appropriated for the biennium ending June 30, 1995, to the department of community development from the general fund for the community diversification program under RCW 43.63A.450; of this amount, four hundred thousand dollars shall be used for grants under RCW 43.63A.450(6).

(2) Two hundred thousand dollars is appropriated for the biennium ending June 30, 1995, to the office of financial management from the general fund for purposes of section 2 of this act.