5555-S

5555-S.E AMH TED H2815.2

ESSB 5555 - H COMM AMD ADOPTED AS AMENDED 4-19-91

By Committee on Trade & Economic Development

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. FINDINGS AND INTENT. The legislature finds that:

(1) The economic health and well‑being of timber-dependent communities is of substantial public concern. The significant reduction in annual timber harvest levels likely will result in reduced economic activity and persistent unemployment and underemployment over time, which would be a serious threat to the safety, health, and welfare of residents of the timber-dependent communities, decreasing the value of private investments and jeopardizing the sources of public revenue.

(2) The state is experiencing a dual economy, where growth is occurring rapidly in some areas and is occurring slowly or not at all in other areas. This uneven growth rate across the state is causing some areas to suffer negative impacts from too much growth while other areas experience difficulty in creating adequate economic development. Inadequate economic development is a serious threat to the public safety, health, and welfare of a community. The state has an interest in encouraging growth state-wide, which reduces the negative impacts of growth in rapidly growing areas and assists areas of the state in need of economic development.

(3) Timber-dependent communities are most often located in areas that are experiencing little or no economic growth, creating an even greater risk to the health, safety, and welfare of these communities. The ability to remedy problems caused by the substantial reduction in harvest activity is beyond the power and control of the regulatory process and influence of the state, and the ordinary operations of private enterprise without additional governmental assistance are insufficient to adequately remedy the resulting problems of poverty and unemployment.

(4) The revitalization and diversification of the economies of timber-dependent communities require the stimulation of private investment, the development of new business ventures, the provision of capital to ventures sponsored by local organizations and capable of growth in the business markets, and assistance to viable, but under‑financed, small businesses in order to create and preserve jobs that are sustainable in the local economy. Therefore, the legislature declares there to be a substantial public purpose in providing capital to promote economic development and job creation in distressed areas in general and timber-dependent communities in particular. To accomplish this purpose, it is the intent of the legislature to:

(a) Increase the public financing of infrastructure necessary for economic development and make such financing more flexible;

(b) Increase and target the amount of public financing available to businesses to better create or preserve jobs through formation or expansion of viable enterprises;

(c) Provide technical and financial assistance to businesses to increase the export of products from timber-dependent communities;

(d) Increase the resources available to associated development organizations to provide economic and community development services in timber-dependent communities and to provide resource and referral services to the community regarding state and local economic and community development services;

(e) Increase training and retraining services accessible to timber-dependent communities; and

(f) Provide for coordination of noneconomic development services in timber-dependent communities as economic development efforts will not succeed unless social, housing, health, and other needs are addressed."

"Sec. 2. RCW 43.160.010 and 1989 c 431 s 61 are each amended to read as follows:

INFRASTRUCTURE FINANCING--CERB--INTENT. (1) The legislature finds that it is the public policy of the state of Washington to direct financial resources toward the fostering of economic development through the stimulation of investment and job opportunities and the retention of sustainable existing employment for the general welfare of the inhabitants of the state. Reducing unemployment and reducing the time citizens remain jobless is important for the economic welfare of the state. A valuable means of fostering economic development is the construction of public facilities which contribute to the stability and growth of the state's economic base. Strengthening the economic base through issuance of industrial development bonds, whether single or umbrella, further serves to reduce unemployment. Consolidating issues of industrial development bonds when feasible to reduce costs additionally advances the state's purpose to improve economic vitality. Expenditures made for these purposes as authorized in this chapter are declared to be in the public interest, and constitute a proper use of public funds. A community economic revitalization board is needed which shall aid the development of economic opportunities. The general objectives of the board should include:

(a) Strengthening the economies of areas of the state which have experienced or are expected to experience chronically high unemployment rates or below average growth in their economies;

(b) Encouraging the diversification of the economies of the state and regions within the state in order to provide greater seasonal and cyclical stability of income and employment;

(d) Encouraging new economic development or expansions to maximize employment;

(e) Encouraging the retention of viable existing firms and employment; and

(f) Providing incentives for expansion of employment opportunities for groups of state residents that have been less successful relative to other groups in efforts to gain permanent employment.

(2) The legislature also finds that the state's economic development efforts can be enhanced by, in certain instances, providing funds to improve state highways in the vicinity of new industries considering locating in this state or existing industries that are considering significant expansion.

(a) The legislature finds it desirable to provide a process whereby the need for diverse public works improvements necessitated by planned economic development can be addressed in a timely fashion and with coordination among all responsible governmental entities.

(b) It is the intent of the legislature to create an economic development account within the motor vehicle fund from which expenditures can be made by the department of transportation for state highway improvements necessitated by planned economic development. All such improvements must first be approved by the state transportation commission and the community economic revitalization board in accordance with the procedures established by RCW 43.160.074 and 47.01.280. It is further the intent of the legislature that such improvements not jeopardize any other planned highway construction projects. The improvements are intended to be of limited size and cost, and to include such items as additional turn lanes, signalization, illumination, and safety improvements.

(3) The legislature also finds that the state's economic development efforts can be enhanced by providing funds to improve markets for those recyclable materials representing a large fraction of the waste stream. The legislature finds that public facilities which result in private construction of processing or remanufacturing facilities for recyclable materials are eligible for consideration from the board.

(4) The legislature finds that sharing economic growth state-wide is important to the welfare of the state. Distressed areas and timber-dependent communities do not share in the economic vitality of the Puget Sound region. Infrastructure is one of several ingredients that are critical for economic development. Distressed areas and timber-dependent communities generally lack the infrastructure necessary to diversify and revitalize their economies. It is, therefore, the intent of the legislature to increase the availability of funds to help provide infrastructure to distressed areas and timber-dependent communities."

"Sec. 3. RCW 43.160.020 and 1985 c 466 s 58 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the community economic revitalization board.

(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.

(3) "Department" means the department of trade and economic development or its successor with respect to the powers granted by this chapter.

(4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.

(5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.

(6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.

(7) "Local government" means any port district, county, city, or town.

(8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.

(9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.

(10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.

(11) Until July 1, 1995, "timber-dependent community" means a county, city, or town located in a county meeting two of the following three criteria for the most recent year such data is available: (a) A lumber and wood products employment location quotient at or above the state average, (b) a direct lumber and wood products job loss of one hundred or more, or (c) an annual unemployment rate twenty percent or more above the state average.

(12) Until July 1, 1995, "small scale tourism project" means a project that where added to the current facilities in the area attracts additional visitors for overnight stays and will be used primarily by nonresidents of the immediate area. A small scale tourism project may be a new project or an expansion or refurbishment of an existing facility."

"NEW SECTION. Sec. 4. A new section is added to chapter 43.160 RCW to read as follows:

(1) The economic development account is created within the public facilities construction loan revolving fund under RCW 43.160.080. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of RCW 43.160.010(4) and this section. The account is subject to allotment procedures under chapter 43.88 RCW.

(2) Applications under this section for assistance from the economic development account are subject to all of the applicable criteria set forth under this chapter, as well as procedures and criteria established by the board, except as otherwise provided.

(3) Eligible applicants under this section are limited to political subdivisions of the state in timber-dependent communities that demonstrate, to the satisfaction of the board, the local economy's dependence on the forest products industry.

(4) Applicants must demonstrate that their request is part of an economic development plan consistent with applicable state planning requirements. Industrial projects must be approved by the local government and the associate development organization. Applicants must demonstrate that small scale tourism projects have been approved by the local government and are part of a regional tourism plan approved by the local and regional tourism organizations.

(5) Publicly owned projects may be financed under this section upon proof by the applicant that the public project is a necessary component of, or constitutes in whole, a small scale tourism project.

(6) Applications must demonstrate local match and participation. The amount of local match shall not be less than twenty percent of the total dollar amount sought in the application. Such match may include: Land donation, other public or private funds or both, or other means of local commitment to the project.

(7) Board financing for feasibility studies shall not exceed twenty-five thousand dollars per study. Board funds for feasibility studies may be provided as a grant and require a dollar for dollar match with up to one-half in-kind match allowed.

(8) Board financing for small scale tourism projects shall not exceed two hundred fifty thousand dollars. Other public facility projects under this section shall not exceed five hundred thousand dollars. Loans with flexible terms and conditions to meet the needs of the applicants shall be provided. Grants may also be authorized, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

(9) The board shall develop guidelines for allowable local match and feasibility studies.

(10) Applications under this section need not demonstrate evidence that specific private development or expansion is ready to occur or will occur if funds are provided.

(11) The board shall establish guidelines for making grants and loans under this section. The guidelines shall include:

(a) A process to equitably compare and evaluate applications from competing communities;

(b) Criteria to ensure that approved projects will have a high probability of success and are likely to provide long-term economic benefits to the community. The criteria shall include: (i) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (ii) an analysis that establishes the project is feasible using standard economic principles; and (iii) an explanation from the applicant regarding how the project is consistent with the communities' economic strategy and goals; and

(c) A method of evaluating the impact of the loans or grants on the economy of the community and whether the loans or grants achieved their purpose.

(12) This section shall expire July 1, 1995."

"NEW SECTION. Sec. 5. A new section is added to chapter 43.160 RCW to read as follows:

(1) For the 1991-93 biennium, half of all funds appropriated to the department for purposes of this chapter shall be used for section 4 of this act.

(2) This section shall expire on July 1, 1993."

"Sec. 6. RCW 43.160.080 and 1987 c 422 s 6 are each amended to read as follows:

INFRASTRUCTURE--CERB--REVOLVING LOAN FUND REPAYMENTS. There shall be a fund known as the public facilities construction loan revolving fund, which shall consist of all moneys collected under this chapter, except moneys of the board collected in connection with the issuance of industrial development revenue bonds, and any moneys appropriated to it by law: PROVIDED, That seventy-five percent of all principal and interest payments on loans made with the proceeds deposited in the fund under section 901, chapter 57, Laws of 1983 1st ex. sess. shall be deposited in the general fund as reimbursement for debt service payments on the bonds authorized in RCW 43.83.184. The state treasurer shall be custodian of the revolving fund. Disbursements from the revolving fund shall be on authorization of the board. In order to maintain an effective expenditure and revenue control, the public facilities construction loan revolving fund shall be subject in all respects to chapter 43.88 RCW((~~, but no appropriation is required to permit expenditures and payment of obligations from the fund~~)).

Moneys in this fund not needed to meet the current expenses and obligations of the board shall be invested in the manner authorized for moneys in revolving funds. Any interest earned shall be deposited in this fund and shall be used for the purposes specified in this chapter. The state treasurer shall render reports to the board advising of the status of any funds invested, the market value of the assets as of the date the statement is rendered, and the income received from the investments during the period covered by the report."

"NEW SECTION. Sec. 7. A new section is added to chapter 43.31 RCW to read as follows:

INCREASING EXPORTS FROM TIMBER-DEPENDENT COMMUNITIES. (1) Marketing is a vital element in expanding the economies of timber-dependent communities. The export of products produced in timber-dependent areas contributes substantial economic benefits to these communities, including an increase in jobs and an increase in tax revenues to the state and local governments.

(2)(a) Subject to funding for this subsection, the department shall contract with the small business export finance assistance center, created in chapter 43.210 RCW, to assist businesses in timber-dependent communities obtain financing for the export of their products. The department shall assist the small business export finance assistance center to ensure the services available under this subsection are understood and accessible in timber-dependent communities.

(b) Subject to funding for the necessary reserve funds, the Washington economic development finance authority, created in chapter 43.163 RCW, shall provide financing for export transactions where the product being exported is produced in timber-dependent communities.

(3) The department may make rules that are necessary to carry out this section and to coordinate the services described in this section and to prioritize the services based on greatest negative impact from the harvest reductions.

(4) For purposes of this section, the definition of "timber-dependent community" is the same as RCW 43.160.020."

"NEW SECTION. Sec. 8. A new section is added to chapter 43.31 RCW to read as follows:

(1) The Washington wood products competitiveness commission is created. The commission shall have nine members as follows:

(a) One representative each from the departments of trade and economic development, community development, natural resources, and the employment security department appointed by the directors or the commissioners of the respective departments;

(b) One representative of the office of financial management, who shall chair the commission, appointed by the governor;

(d) One member representing primary wood products manufacturers appointed by the director of the department; and

(e) Two members representing secondary wood products manufacturers appointed by the director of the department.

(2) Since the best hope for quickly replacing some of the jobs being lost in primary manufacturing may be in value-added and secondary manufacturing, the legislature intends that the commission design a set of programs to stimulate the growth of value-added and secondary wood products manufacturing in Washington and increase the involvement of the wood products industry in value-added products and business networks.

(3) The legislature also intends that after two years, the commission become industry supported and industry operated.

(4) Members not representing state government shall serve a term of three years, with the initial members serving staggered terms of one year, two years, and three years as determined by the director of the department.

(5) Travel expenses may be reimbursed under RCW 43.03.050 and 43.03.060.

(6) Staff support for the commission shall be provided by the department."

"NEW SECTION. Sec. 9. A new section is added to chapter 43.31 RCW to read as follows:

The Washington wood products competitiveness commission shall:

(1) Gather, analyze, and disseminate information about the competitiveness of the wood products industry in this state and make that information available to the wood products industry, state government, and the general public.

(2) Encourage cooperation among wood products firms through the formation of business networks to develop solutions to technology and product development problems, acquire and disseminate marketing information, promote and market wood products of this state, and address other common industry problems.

(3) Assist the department in the department's efforts to increase the competitiveness of the industry and increase the production of value-added products by contracting for feasibility studies and product research and development. The contracts under this subsection shall:

(a) Be of general benefit to the industry rather than intended to benefit a specific firm; and

(b) Be for such activities as identifying options, assessing markets, evaluating business and financial risks, addressing production issues, and assessing new technologies.

(4) Work with state agencies, wood products firms, wood products industry associations, and institutions of higher education in this state to assure close coordination of all efforts to improve the competitiveness of the wood products industry in this state.

(5) Report periodically to the governor, the legislature, the wood products industry, and the general public on the competitive position of the wood products industry in this state, and make such recommendations as the commission determines appropriate for public or private actions needed to improve the competitiveness of the wood products industry in this state. The commission shall recommend, by January 1, 1992, how to change this public commission into a commodity-style industry commission, and recommend a fair method of assessment for the industry to fund the commission."

"NEW SECTION. Sec. 10. A new section is added to chapter 43.31 RCW to read as follows:

The Washington wood products competitiveness commission may:

(1) Engage, with private sector funds only, in informational and promotional activities to increase the awareness and recognition of the value of wood products in this state and of the contribution of wood products to the economy of this state.

(2) Contract for research activities to develop and apply new technologies for wood products manufacture related to the commission's and the department's efforts to make value-added wood products industries more competitive. Any public funds used for this subsection shall be matched at least dollar for dollar by private funds. In carrying out research for development and application of new manufacture technologies, the commission may promote activities including, but not limited to:

(a) Improved utilization of wood wastes;

(b) Improved utilization of lower grade and underutilized lumber;

(d) New and improved utilization of select and clear grade lumber to produce high quality and high value-added wood products in Washington;

(e) Identifying unique properties and characteristics of wood species of this state and determining products particularly suited to those properties and characteristics; or

(f) Providing access to testing facilities and services for wood products firms in this state."

"NEW SECTION. Sec. 11. A new section is added to chapter 43.06 RCW to read as follows:

COORDINATION OF STATE AND LOCAL SERVICES. (1) The governor, or the governor's designee, shall coordinate state noneconomic development related assistance provided to timber-dependent communities to ensure state services are delivered effectively and efficiently and coordinated locally with minimal duplication and maximum local access. (2) Associate development organizations located in timber-dependent communities shall assist the governor in coordinating the delivery of state economic development related services locally. The associate development organization, as the primary local coordinating organization for state and local economic development services, shall provide resource and referral services to ensure state and local economic development services are delivered effectively and efficiently with minimal duplication and maximum local access."

"NEW SECTION. Sec. 12. Subject to an appropriation in the 1991 omnibus appropriations act by June 30, 1991, for the purposes of this section, the department of trade and economic development shall contract with associate development organizations in timber-dependent communities to provide additional coordination and economic development services. For purposes of this subsection "timber-dependent community" means a distressed county, as defined in RCW 43.160.020, that meets at least one of the following two criteria for the most recent year such data is available: (1) A lumber and wood products employment location quotient at or above the state average or (2) a direct lumber and wood products job loss of one hundred or more. Associate development organizations shall provide representation on their board of directors of cities, counties, businesses, and community-based public service organizations."

"NEW SECTION. Sec. 13. A new section is added to chapter 28B.50 RCW to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 14 through 18 of this act.

(1) "Board" means the state board for community college education.

(2) "Dislocated timber worker" means any individual who: (a) Has been terminated or received a notice of termination from employment in a timber-related industry assigned the major group standard industrial classification code "24" by the employment security department; and (b) at the time of last separation from employment, resided in or was employed in a timber-dependent community. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c).

(3) "Timber-dependent community" means a county or a city or town located in a county meeting two of the following three criteria for the most recent year such data is available: (a) A lumber and wood products employment location quotient at or above the state average; (b) a direct lumber and wood products job loss of one hundred or more; or (c) an annual unemployment rate twenty percent or more above the state average."

"NEW SECTION. Sec. 14. A new section is added to chapter 28B.50 RCW to read as follows:

The state board for community college education shall administer a program designed to provide higher education opportunities to dislocated timber workers or their spouses. In administering the program, the board shall have the following powers and duties:

(1) Appoint an advisory committee to assist the board in program design and funding distribution;

(2) Allocate funding to community colleges attended by eligible dislocated timber workers;

(3) Monitor the program and report on students' progress and outcome; and

(4) Report to the legislature by December 1, 1993, on the status of the program."

"NEW SECTION. Sec. 15. A new section is added to chapter 28B.50 RCW to read as follows:

In addition to the community college enrollment level funded by the omnibus appropriations act for the biennium ending June 30, 1993, the community college system is authorized to serve two hundred fifty full-time equivalent students in fiscal year 1992 and five hundred full-time equivalent students in fiscal year 1993. Under this program, the community colleges shall waive the tuition, services, and activities fees for dislocated timber workers or their spouses, enrolled as one of the full‑time equivalent students allocated under this section, who do not receive federal tuition assistance for retraining, provided the dislocated timber worker provides verification of the following conditions:

(1) The dislocated timber worker, during the five years before enrolling as a student, was employed in the timber industry on a full-time basis for at least six months each year; and

(2) The unemployment of the dislocated timber worker is due to reduction in work force and not misconduct of the timber worker.

The dislocated timber workers or their spouses are eligible to receive waivers for a total of six quarters within a two-year time period and must be enrolled for a minimum of ten credits per quarter.

Dislocated timber workers or their spouses shall receive priority for the full-time equivalent student allocations authorized under this section. Funding for any full-time equivalent student enrollment allocations that are unused by June 30, 1993, shall lapse."

"NEW SECTION. Sec. 16. A new section is added to chapter 28B.80 RCW to read as follows:

The higher education coordinating board shall administer a program designed to provide upper division higher education opportunities to dislocated timber workers, their spouses, and others in timber‑distressed counties. In administering the program, the board shall have the following powers and duties:

(1) Distribute funding for an institution of higher education to service Clallam county;

(2) Appoint an advisory committee to assist the board in program design and future project selection;

(3) Monitor the program and report on student progress and outcome; and

(4) Report to the legislature by December 1, 1993, on the status of the program."

"NEW SECTION. Sec. 17. A new section is added to chapter 28B.80 RCW to read as follows:

In consultation with Peninsula College, the higher education coordinating board shall contract with an institution of higher education to provide upper division classes to serve fifty full-time equivalent students per year in Clallam county. The institution shall utilize telecommunication technology, if available, to carry out the purposes of this section. The institution providing the service shall waive the tuition, service, and activities fees for dislocated timber workers or their spouses enrolled as one of the full-time equivalent students allocated to the college under this section, provided the dislocated timber worker provides verification of the following conditions:

(1) The dislocated timber worker, during the five years before enrolling as a student, was employed in the timber industry on a full-time basis for at least six months of each year; and

(2) The unemployment of the dislocated timber worker is due to reduction in work force and not misconduct of the timber worker.

The dislocated timber worker or his or her spouse is eligible to receive waivers for a total of four semesters or six quarters within a two-year time period and must be enrolled for a minimum of ten credits per semester or quarter."

"NEW SECTION. Sec. 18. A new section is added to chapter 28B.80 RCW to read as follows:

Dislocated timber workers and their spouses shall receive priority for attendance in upper division courses allocated under section 17 of this act, offered in Clallam county. Remaining allocations may be distributed to others in the timber-dependent community."

"NEW SECTION. Sec. 19. (1) The legislature finds and declares that:

(a) Families with children have been rendered homeless or are in imminent danger of becoming homeless as a result of a sudden job loss or other economic adversity;

(b) It is more economical and more socially desirable to enable people to retain possession of their houses or apartments and thereby avoid homelessness, than to house them in emergency shelters or in other facilities intended for short-term occupancy; and

(c) Economically distressed communities are faced with unique problems that require a comprehensive approach of housing and related support services.

(2) The legislature declares that a program designed to provide short-term financial assistance to assist with mortgage or rent payments and coordination of available support services is needed to keep people from becoming homeless."

"NEW SECTION. Sec. 20. A new section is added to chapter 43.63A RCW to read as follows:

(1) The department shall develop and administer a homelessness prevention program for the purpose of providing grants and technical assistance to eligible organizations to operate local homelessness prevention and related support service programs. For purposes of this section, "eligible organizations" are those organizations eligible to receive assistance through the Washington housing trust fund, chapter 43.185 RCW.

(2) The department shall select at least five eligible organizations for purposes of implementing local homelessness prevention programs. The local homelessness prevention programs are designed to provide: (a) Interest-free loans of temporary mortgage or rental assistance on behalf of families with children in imminent danger of losing housing as a result of having insufficient income to pay mortgage or rental costs; (b) interest-free loans to make payments on machinery or equipment that is essential to the household's livelihood; or (c) technical assistance to eligible organizations to help recipient eligible organizations develop and implement local strategies to prevent homelessness. In selecting local programs under this section, the department shall give priority consideration to timber-dependent communities and shall consider:

(i) The eligible organization's ability, stability, and resources to implement the local homelessness prevention program;

(ii) The eligible organization's efforts to coordinate other support programs for the family, such as job search or job retraining programs;

(iii) The level of timber unemployment experienced by the jurisdiction; and

(iv) Other factors the department deems appropriate.

(3) The recipient eligible organization shall establish priorities of eligibility for temporary mortgage or rental assistance to assist families with children in retaining housing. The recipient eligible organization shall make a determination of eligibility regarding the family's eligibility to participate in the local homelessness prevention program. A determination shall include, but is not limited to:

(a) A determination that the family is subject to immediate eviction for foreclosure of nonpayment of mortgage installments or nonpayment of rent, when nonpayment is attributable to illness, unemployment, underemployment, or any other failure of resources beyond the person's control;

(b) A verification of the loss of income; and

(c) A determination that the family does not have the financial resources to make the required mortgage installment or rental payment, or installment payment on the equipment or machinery which is essential to the family's livelihood.

(4) No family shall continue to receive temporary mortgage or rental assistance under this section if alternative sources of mortgage or rental assistance under federal, state, or local sources becomes available."

"NEW SECTION. Sec. 21. A new section is added to chapter 43.63A RCW to read as follows:

The department shall adopt rules to implement section 20 of this act, including but not limited to:

(1) The maximum length of assistance available through section 20 of this act;

(2) The eligibility of and application process for eligible organizations;

(3) The criteria by which grants and technical assistance shall be provided to eligible organizations; and

(4) The criteria eligible organizations shall use when entering into contracts with families to make mortgage or rental assistance payments, or equipment or machinery payments on their behalf."

"NEW SECTION. Sec. 22. (1) For the period beginning July 1, 1991, and ending June 30, 1993, in those areas designated by the department of community development as timber impact areas, the public works board may award low-interest or interest-free loans to local governments for construction of new public works facilities that stimulate economic growth or diversification.

(2) For the purposes of this act, "public facilities" means bridge, road and street, domestic water, sanitary sewer, and storm sewer systems.

(3) The loans may have a deferred payment of up to five years but shall be repaid within twenty years. The board may require other terms and conditions and may charge such rates of interest on its loans as it deems appropriate to carry out the purposes of this section. Repayments shall be made to the public works assistance account.

(4) The board may make such loans irrespective of the annual loan cycle and reporting required in RCW 43.155.070."

"NEW SECTION. Sec. 23. (1) As authorized by section 22 of this act, the board shall establish criteria for awarding loans to local governments including, but not limited to, the following:

(a) If a county or city, the local government must be imposing the tax authorized by chapter 82.46 RCW at a rate of at least one-quarter of one percent;

(b) The local government must have in place a capital improvement plan meeting standards established by the board and an economic development plan meeting standards established by the department;

(d) The proposed project must provide an opportunity to create or retain jobs within the local economy. Priority may be given to those projects that provide an opportunity to retain or create jobs for the pool of local workers affected by the timber economy;

(e) The local government must provide reasonable assurances of its ability to repay the debt; and

(f) The local government must meet any additional guidelines and criteria established by the board for awarding loan funds.

(2) Existing debt or other financial obligations of the local government shall not be refinanced under this act.

(3) The board shall award loans only to those projects that meet the criteria and will fulfill the purpose of this act. Any funds not obligated at the close of the biennium shall be returned to the public works assistance account."

"NEW SECTION. Sec. 24. The public works board shall provide to the office of financial management and the legislative fiscal committees quarterly reports on loan applications under consideration and loans awarded by the board and a report by January 15, 1994, on the loans awarded through the biennium ending June 30, 1993. The board shall provide to the legislative fiscal committees a report on January 15, 1995, and January 15, 1996, identifying by county the economic growth and/or economic diversification attributable to the loan awards authorized by this act."

"NEW SECTION. Sec. 25. (1) The legislature finds that an increase in unemployment due to the declining timber economy in the state is imminent. The legislature further recognizes that employment opportunities in state and local government in other natural resource management professions exist and that dislocated workers in the timber-related professions represent a potential work force in the areas of fisheries, wildlife, and recreation.

(2) The legislature further recognizes that employment opportunities in other natural resource management professions exist and that natural resource enhancements in the areas of fisheries, wildlife, and recreation can bring needed income to distressed local economies in the state. It is the intent of the legislature that dislocated timber workers be given training in and opportunities to compete for employment in other resource management professions, and to establish a pilot program in Skagit county to accomplish this objective. The Skagit river represents a potential recreational fishery that, if enhanced, will bring much needed income to Skagit county. Enhancements to the fishery on the Skagit river are planned over the next several years, and workers will be needed to fill these positions. Displaced timber workers will be available to do this work."

"NEW SECTION. Sec. 26. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Dislocated timber worker" means any individual who: (a) Has been terminated or received a notice of termination from employment in a timber-related industry assigned the major group standard industrial classification code "24" by the employment security department; and (b) at the time of last separation from employment, resided in or was employed in a timber-dependent community. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c).

(2) "Department" means the employment security department.

(3) "Project" means the natural resource worker project.

(4) "College" means Skagit Valley Community College.

(5) "Local development agency" means the economic development association of Skagit county."

"NEW SECTION. Sec. 27. The department, subject to the availability of funding under section 28 of this act or an appropriation from the general fund, shall establish the natural resource worker project. The project shall terminate on July 1, 1996, and shall provide employment and training opportunities for dislocated timber workers in the areas of fisheries, wildlife, recreation, and other natural resource professions. The department of personnel shall approve the project. The goal of the project is to allow project employees to be, upon termination of their participation in the project, eligible for permanent employment with the departments of wildlife, fisheries, ecology, and natural resources, and the parks and recreation commission."

"NEW SECTION. Sec. 28. The department shall use federal funds that it receives for dislocated timber workers to contract with the departments of wildlife, fisheries, ecology, and natural resources, and the parks and recreation commission to hire project participants to conduct tasks in the areas of fisheries, wildlife, forestry, ecology, and recreation."

"NEW SECTION. Sec. 29. The project shall include the following elements:

(1) Recruitment of dislocated timber workers;

(2) Placement in the departments of wildlife, fisheries, ecology, and natural resources, and the parks and recreation commission;

(3) On-the-job training in entry-level natural resource management skills;

(4) Comparable salaries and benefits to entry-level positions already existing in the departments of wildlife, fisheries, ecology, and natural resources, and the parks and recreation commission."

"NEW SECTION. Sec. 30. The department, along with the departments of personnel, wildlife, fisheries, ecology, and natural resources, and the parks and recreation commission shall report annually to the legislature on November 1 of each year beginning November 1, 1992, and until November 1, 1995.

The report shall include, at a minimum, the following elements:

(1) The number of project employees;

(2) The number and description of positions filled, by agency;

(3) Training received;

(4) Duration of employment; and

(5) Placement in permanent positions."

"NEW SECTION. Sec. 31. A pilot project shall be established, coordinated jointly by the department and the college, in Skagit county. The pilot project created in this section is subject to the department and the college acquiring funds for the pilot project from federal, state, or private sources. The project shall be of five years duration."

"NEW SECTION. Sec. 32. The college shall develop a training program designed for dislocated timber workers and their spouses, and in doing so, shall:

(1) Consult with, at a minimum, the departments of natural resources, ecology, wildlife, and fisheries, the parks and recreation commission, and other state, federal, local, and private employers in Skagit county to determine minimum employment qualifications in the areas of natural resource management and enhancement of the Skagit river; and

(2) Develop a program that will provide needed educational skills to dislocated timber workers and their spouses."

"NEW SECTION. Sec. 33. The department shall contract with the local development agency to coordinate with the college and the departments of wildlife, ecology, natural resources, and fisheries, the parks and recreation commission, and other state, federal, local, and private employers in assisting dislocated timber workers and their spouses in securing education and employment in the natural resource professions. The local development agency shall also provide information on the training program established under section 32 of this act."

"NEW SECTION. Sec. 34. The department and the college shall jointly report to the legislature on their progress by November 1 of each year, beginning in 1991 and ending November 1, 1996. This report shall include a college program description, numbers of students, numbers of referrals for existing positions by the local development agency, and numbers of positions filled by dislocated timber workers."

"NEW SECTION. Sec. 35. Sections 25 through 34 of this act shall constitute a new chapter in Title 50 RCW."

"NEW SECTION. Sec. 36. (1) Sections 13 through 18 of this act shall expire July 1, 1995.

(2) Sections 22 and 23 of this act shall expire on June 30, 1993.

(3) Sections 25 through 30 of this act shall expire August 1, 1996.

(4) Sections 31 through 34 of this act shall expire January 1, 1997."

"NEW SECTION. Sec. 37. If by June 30, 1991, the omnibus operating budget appropriations act for the 1991-93 biennium does not provide specific funding for any of sections 13 through 19 of this act, referencing those sections by bill number and section number, any section not referenced is null and void."

"NEW SECTION. Sec. 38. The legislature finds that the family support centers currently operating in Washington state are effectively providing support to families. The legislature further finds that these centers are positively responding to needs identified by the families and communities served by the center and are therefore empowering those families and communities. It is the intent of the legislature to give timber-dependent communities the means to support and empower their families, particularly those families experiencing stress related to job loss, through the establishment of family support centers in those communities."

"NEW SECTION. Sec. 39. A new section is added to chapter 43.121 RCW to read as follows:

The council shall contract for the operation of community-based family support centers. The council shall identify areas of need for such centers in timber-dependent communities and give priority to establishing centers in these locations. The council shall also give priority to applications from communities with high timber unemployment rates.

(1) Applicants for grants to operate a family support center shall be part of a community interagency team made up of private nonprofit or public agencies currently providing one or more of the services described in subsection (4) of this section. A lead agency shall be designated by the team as the grantee. Agencies participating in the team shall execute written interagency agreements regarding referrals and coordination of services.

(2) Family support centers shall be operated at a location in the community that is accessible to families.

(3) In awarding grants for the operation of family support centers and timber-dependent communities, preference shall be given to applications that are submitted by a county timber task force or that provide for locating the family support center at or near a job retraining center.

(4) Family support centers shall provide, at a minimum, parent support services. In addition, centers shall provide other services identified by the community to support families. Such services may include, but are not limited to, parenting education, child development assessments, health and nutrition education, counseling, and information and referral services. Such services may be provided directly by the center or through referral to other agencies participating in the interagency team. Child care services shall be available at the center for children while their parents are using the center.

(5) Twenty-five percent of the funding for a family support center shall be community matching funds provided by public or private entities in the community that will be served by the center. Contributions of materials, supplies, or physical facilities may be considered as all or part of the funding provided by the community."

"NEW SECTION. Sec. 40. A new section is added to chapter 50.22 RCW to read as follows:

(1) An additional benefit period is established for counties identified under subsection (2) of this section beginning on the first Sunday after the effective date of this section and for the lumber and wood products industry beginning with the third week after the first Sunday after the effective date of this section. Benefits shall be paid as provided in subsection (3) of this section to exhaustees eligible under subsection (4) of this section.

(2) The additional benefit period applies to counties beginning with the third week after a week in which the commissioner determines that a county has: (a) A county annual unemployment rate that is twenty percent or more above the state annual unemployment rate for the prior calendar year; and (b) a lumber and wood products employment location quotient that is at least twice the state average during the prior twelve-month period. The additional benefit period for a county may end no sooner than fifty-two weeks after the additional benefit period begins.

(3) Additional benefits shall be paid as follows:

(a) No new claims for additional benefits shall be accepted forweeks beginning after July 3, 1993, but for claims established on or before July 3, 1993, weeks of unemployment occurring after July 3, 1993, shall be compensated as provided in this section.

(b) The total additional benefit amount shall be fifty-two times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year. Additional benefits shall not be payable for weeks more than one year beyond the end of the benefit year of the regular claim, and shall be payable for up to five weeks following the completion of the training required by this section.

(d) Benefits paid under this section shall be paid under the same terms and conditions as regular benefits and shall not be charged to the experience rating account of individual employers. The additional benefit period shall be suspended with the start of an extended benefit period, or any totally federally funded benefit program, with eligibility criteria and benefits comparable to the program established by this section, and shall resume the first week following the end of the federal program.

(4) An additional benefit eligibility period is established for any exhaustee who:

(a) At the time of last separation from employment, resided in or was employed in a county identified under subsection (2) of this section, or, during his or her base year, earned wages in six hundred eighty hours of lumber and wood products employment; and

(b) Has received notice of a permanent termination of employment from the individual's employer or has been laid off and is unlikely to return to his or her previous employment because work opportunities at the individual's most recent workplace or in the individual's most recent occupation have been substantially reduced; and

(c)(i) Is notified by the department of the requirements of this section and develops an individual training program that is submitted to the commissioner for approval not later than sixty days after the individual is notified of the requirements of this section, and enters the approved training program not later than ninety days after the date of the individual's termination or layoff, or ninety days after the effective date of this section, whichever is later, unless the department determines that the training is not available during the ninety-day period, in which case the individual shall enter training as soon as it is available; or

(ii) Is enrolled in training approved under this section on a full-time basis and maintains satisfactory progress in the training; and

(d) Does not receive a training allowance or stipend under the provisions of any federal or state law.

(e) For the purposes of this section:

(i) "Training program" means:

(A) A remedial education program determined to be necessary after counseling at the educational institution in which the individual enrolls pursuant to his or her approved training program; or

(B) A vocational training program at an educational institution that:

(I) Is training for a labor demand occupation;

(II) Is likely to facilitate a substantial enhancement of the individual's marketable skills and earning power; and

(III) Does not include on-the-job training or other training under which the individual is paid by an employer for work performed by the individual during the time that the individual receives additional benefits under section 1 of this act.

(ii) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410(3).

(iii) "Training allowance or stipend" means discretionary use, cash-in-hand payments available to the individual to be used as the individual sees fit, but does not mean direct or indirect compensation for training costs, such as tuition or books and supplies.

(5) The commissioner shall adopt rules as necessary to implement this section."

"NEW SECTION. Sec. 41. TITLE. This act may be referred to as "the omnibus timber community assistance act.""

"NEW SECTION. Sec. 42. SECTION HEADINGS ARE NOT LAW. Section headings as used in this act do not constitute any part of the law."

"NEW SECTION. Sec. 43. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected."

"NEW SECTION. Sec. 44. 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 or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state."

"NEW SECTION. Sec. 45. Sections 1 through 12, 22, 23, 25 through 34, and 40 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately, except for sections 22, 23, 25 through 34, and 40 of this act which shall take effect July 1, 1991."

ESSB 5555 - H COMM AMD

By Committee on Trade & Economic Development

On page 1, line 2 of the title, after "state;" strike the remainder of the title and insert "amending RCW 43.160.010, 43.160.020, and 43.160.080; adding new sections to chapter 43.160 RCW; adding new sections to chapter 43.31 RCW; adding a new section to chapter 43.06 RCW; adding new sections to chapter 28B.50 RCW; adding new sections to chapter 28B.80 RCW; adding new sections to chapter 43.63A RCW; adding a new section to chapter 43.121 RCW; adding a new section to chapter 50.22 RCW; adding a new chapter to Title 50 RCW; creating new sections; providing an effective date; providing expiration dates; and declaring an emergency."