[atlas:bill]

AN ACT Relating to the rural area economic growth; amending RCW 43.168.140 and 43.163.210; adding new sections to chapter 43.31 RCW; adding a new section to chapter 28C.04 RCW; creating new sections; and repealing 1997 c 366 s 10 (uncodified).

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

NEW SECTION. Sec. 1. LEGISLATIVE RECOGNITION AND INTENT. The legislature recognizes the economic hardship that rural distressed areas throughout the state have undergone in recent years. Numerous rural distressed areas across the state have encountered serious economic downturns resulting in significant job loss and business failure. In 1991 the legislature enacted two major pieces of legislation to promote economic development and job creation, with particular emphasis on worker training, income, and emergency services support, along with community revitalization through planning services and infrastructure assistance. However even though these programs have been of assistance, rural distressed areas still face serious economic problems including: Above-average unemployment rates from job losses and below-average employment growth; low rate of business start-ups; and persistent erosion of vitally important resource-dependent industries.

The legislature also recognizes that rural distressed areas in Washington have an abiding ability and consistent will to overcome these economic obstacles by building upon their historic foundations of business enterprise, local leadership, and outstanding work ethic.

The legislature intends to assist rural distressed areas in their ongoing efforts to address these difficult economic problems by providing a comprehensive and significant array of economic tools, necessary to harness the persistent and undaunted spirit of enterprise that resides in the citizens of rural distressed areas throughout the state.

The further intent of this act is to provide:

(1) A strategically designed plan of assistance, emphasizing state, local, and private sector leadership and partnership;

(2) A comprehensive and significant array of business assistance, services, and tax incentives that are accountable and performance-based;

(3) An array of community assistance including infrastructure development and business retention, attraction, and expansion programs that will provide a competitive advantage to rural distressed areas throughout Washington; and

(4) Regulatory relief to reduce and streamline zoning, permitting, and regulatory requirements in order to enhance the capability of businesses to grow and prosper in rural distressed areas.

NEW SECTION. Sec. 2. GOALS. The primary goals of this act, are to:

(1) Promote and retain the operation of businesses in rural distressed areas;

(2) Promote the expansion of existing businesses in rural distressed areas;

(3) Attract new businesses to rural distressed areas;

(4) Assist in the development of new businesses from within rural distressed areas;

(5) Provide family wage jobs to the citizens of rural distressed areas; and

(6) Promote the development of communities of excellence in rural distressed areas.

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

STATE OFFICE OF BUSINESS ASSISTANCE AND RECRUITMENT FOR RURAL DISTRESSED AREAS. There is established within the department of community, trade, and economic development the office of business assistance and recruitment for rural distressed areas. The primary responsibilities of the office are to coordinate and administer a comprehensive and effective set of business assistance programs and services including:

(1) Business recruitment. The office shall: Provide a comprehensive and aggressive program to attract viable businesses to rural distressed areas; work with local communities to identify select industry sectors that have a competitive advantage in specific rural distressed areas; collaborate with state and local officials to modify their infrastructure plans and priorities to facilitate business growth; and assist rural distressed areas in developing strategic business recruitment plans.

(2) Business permitting and zoning one-stop shop. The office shall: Provide a streamlined and customer driven siting service to businesses in order to promote their attraction and expansion in rural distressed areas; provide preliminary permit application and zoning information and services for businesses in order to attract firms and facilitate business growth in rural distressed areas.

(3) Business regulatory assistance and ombudsman services. The office shall: Provide comprehensive business regulatory services to assist businesses in addressing and responding to local, state, and federal regulations; and provide recommendations on streamlining and modifying government regulations.

(a) The office is authorized to review state zoning, permitting, or regulatory requirements that pose difficulty for businesses wishing or likely to site in a rural enterprise area. In situations where the office considers the zoning, permitting, or regulatory requirements placed on a business in a rural enterprise area to be burdensome the director may petition the regulatory agency or agencies for regulatory relief. In addition the director may petition the agency or agencies for relief under the regulatory fairness act, chapter 19.85 RCW.

(b) In situations where a business or entity in a rural enterprise zone is encountering regulatory oversight from more than one state agency and is experiencing conflicting direction or an unintended consequence as a result of a confusing process, the business or entity may petition the director to intercede. The director upon review of the circumstances involved is authorized to designate a lead agency to collaborate with other state agencies in order to streamline and reduce the regulatory difficulties.

(c) Businesses or entities in a rural enterprise zone may petition the director for an accelerated zoning, permitting, or regulatory process. The director upon reviewing the petition and the circumstances involved may make a finding of regulatory burden and may direct the state agency or agencies to process the business or entities' application in an expeditious manner.

(4) "Brown Fields" Program. The office shall develop with the department of ecology and recommend to the legislature a streamlined and cost-effective process to redevelop hazardous sites that are suitable for industrial and commercial growth in order to promote industrial and commercial growth in rural distressed areas.

(5) Rural enterprise zone development and foreign trade zone. The office is authorized to provide technical assistance to local governments in rural distressed areas to establish rural enterprise zones and foreign trade zones. The office shall target rural enterprise zones and foreign trade zones in the delivery of its services in order to maximize the impact of its economic development assistance as outlined in RCW 43.63A.715 to businesses and rural distressed areas.

NEW SECTION. Sec. 4. A new section is added to chapter 43.31 RCW to read as follows:

OFFICE ADMINISTRATION. The office shall be administered by an appointee of the director of community, trade, and economic development, in consultation with the rural distressed areas economic recovery coordination board. The office appointee shall coordinate activities with the rural distressed areas resource coordinator and report on the activities and performance of the office on a quarterly basis.

NEW SECTION. Sec. 5. A new section is added to chapter 28C.04 RCW to read as follows:

JOB SKILLS/RURAL DISTRESSED AREA EMPLOYEE TRAINING. At least seventy-five percent of all discretionary expenditures in the job skills program shall be made to assist businesses in rural distressed areas. For the purposes of this section, "rural distressed area" means the same as "rural natural resources impact area" under RCW 43.31.601.

Sec. 6. RCW 43.168.140 and 1995 c 226 s 28 are each amended to read as follows:

RURAL DISTRESSED AREAS. Any funds appropriated by the legislature to the development loan fund for purposes of the timber recovery act shall be used for development loans in rural ((~~natural resources impact areas as defined in RCW 43.31.601~~)) distressed areas. At least seventy-five percent of all discretionary expenditures shall be to assist businesses in rural distressed areas. For the purposes of this section, "rural distressed area" means the same as "rural natural resources impact area" under RCW 43.31.601.

Sec. 7. RCW 43.163.210 and 1998 c 48 s 2 are each amended to read as follows:

For the purpose of facilitating economic development in the state of Washington and encouraging the employment of Washington workers at meaningful wages:

(1) The authority may develop and conduct a program or programs to provide nonrecourse revenue bond financing for the project costs for economic development activities.

(2) The authority may develop and conduct a program that will stimulate and encourage the development of new products within Washington state by the infusion of financial aid for invention and innovation in situations in which the financial aid would not otherwise be reasonably available from commercial sources. The authority is authorized to provide nonrecourse revenue bond financing for this program.

(a) For the purposes of this program, the authority shall have the following powers and duties:

(i) To enter into financing agreements with eligible persons doing business in Washington state, upon terms and on conditions consistent with the purposes of this chapter, for the advancement of financial and other assistance to the persons for the development of specific products, procedures, and techniques, to be developed and produced in this state, and to condition the agreements upon contractual assurances that the benefits of increasing or maintaining employment and tax revenues shall remain in this state and accrue to it;

(ii) Own, possess, and take license in patents, copyrights, and proprietary processes and negotiate and enter into contracts and establish charges for the use of the patents, copyrights, and proprietary processes when the patents and licenses for products result from assistance provided by the authority;

(iii) Negotiate royalty payments to the authority on patents and licenses for products arising as a result of assistance provided by the authority;

(iv) Negotiate and enter into other types of contracts with eligible persons that assure that public benefits will result from the provision of services by the authority; provided that the contracts are consistent with the state Constitution;

(v) Encourage and provide technical assistance to eligible persons in the process of developing new products;

(vi) Refer eligible persons to researchers or laboratories for the purpose of testing and evaluating new products, processes, or innovations; and

(vii) To the extent permitted under its contract with eligible persons, to consent to a termination, modification, forgiveness, or other change of a term of a contractual right, payment, royalty, contract, or agreement of any kind to which the authority is a party.

(b) Eligible persons seeking financial and other assistance under this program shall forward an application, together with an application fee prescribed by rule, to the authority. An investigation and report concerning the advisability of approving an application for assistance shall be completed by the staff of the authority. The investigation and report may include, but is not limited to, facts about the company under consideration as its history, wage standards, job opportunities, stability of employment, past and present financial condition and structure, pro forma income statements, present and future markets and prospects, integrity of management as well as the feasibility of the proposed product and invention to be granted financial aid, including the state of development of the product as well as the likelihood of its commercial feasibility. After receipt and consideration of the report set out in this subsection and after other action as is deemed appropriate, the application shall be approved or denied by the authority. The applicant shall be promptly notified of action by the authority. In making the decision as to approval or denial of an application, priority shall be given to those persons operating or planning to operate businesses of special importance to Washington's economy, including, but not limited to: (i) Existing resource-based industries of agriculture, forestry, and fisheries; (ii) existing advanced technology industries of electronics, computer and instrument manufacturing, computer software, and information and design; and (iii) emerging industries such as environmental technology, biotechnology, biomedical sciences, materials sciences, and optics.

(3) The authority may also develop and implement, if authorized by the legislature, such other economic development financing programs adopted in future general plans of economic development finance objectives developed under RCW 43.163.090.

(4) The authority shall develop a program and target their resources in assisting rural distressed areas in their business and job creation and assistance efforts under chapter . . ., Laws of 1999 (this act). For the purposes of this section, "rural distressed area" means the same as "rural natural resources impact area" under RCW 43.31.601.

(5) The authority may not issue any bonds for the programs authorized under this section after June 30, 2004.

NEW SECTION. Sec. 8. REVIEW AND EVALUATION. The joint legislative audit and review committee shall design an evaluation mechanism for economically distressed counties under this act and complete an evaluation of this act's effectiveness by November 1, 2003. The agencies implementing the programs under this act shall assist the joint legislative audit and review committee evaluation.

NEW SECTION. Sec. 9. 1997 c 366 s 10 (uncodified) is repealed.

NEW SECTION. Sec. 10. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 11. Captions used in this act are not any part of the law.