S-3953               _______________________________________________

                                                   SENATE BILL NO. 6274

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Senators Fleming, Lee, Smitherman, Warnke and Anderson

Read first time 1/15/88 and referred to Committee on Economic Development & Labor.

AN ACT Relating local development; and amending RCW 43.63A.078.

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

        Sec. 1.  Section 7, chapter 125, Laws of 1984 as amended by section 33, chapter 505, Laws of 1987 and RCW 43.63A.078 are each amended to read as follows:

(1) The department shall develop and administer a local development matching fund program.  To be eligible to receive funds under this program, an organization must be a local government or a nonprofit local development entity.  Any local government or entity requesting funds must demonstrate the participation of a cross-section of the local community in the economic development project, including business, labor, education and training, and the public sector.  Under this program, the department shall provide matching funds which shall be used for the formulation of local economic development strategies, including the technical analysis necessary to designate and carry out the strategies.  A technical analysis can include, but is not limited to, the development and dissemination of data on local markets, demographics, comparative business costs, site availability, labor force characteristics, and local incentives.  Funds are to be used primarily to foster new developments and expansions which result in the trading of goods and services outside of the state's borders.  Funds may be made available for assisting local businesses in utilizing state and federal programs in exporting, training, and financing.  Funds may also be used to provide technical assistance to businesses in the areas of land use, transportation, site location, and manpower training.  Matching funds cannot be used for entertainment, capital expenses, hosting, or marketing.  Funds granted for economic development projects must be matched by local resources on a dollar-for-dollar basis.  Not more than fifty thousand dollars of state matching funds as provided by this section may be used for any one project.

(2) The department shall set aside, within its general fund appropriation, a sum of two hundred thousand dollars per biennium for small business incubator projects.  The funds for such projects may be used for feasibility studies, planning, and program development.  The funds for such projects may also be used for coordinating the delivery of management, technical, and financial assistance to small businesses both within and outside the incubator facility.