5555-S AAS 3/20/91

5555-S AAS 3/20/91

SSB 5555 - S AMD

By Senators Owen, McDonald, Snyder and Conner

ADOPTED 3/20/91 - Voice Vote

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that:

(1) Cutbacks in allowable sales of old growth timber in Washington state pose a substantial threat to the region and the state with massive layoffs, loss of personal income, and declines in state revenues;

(2) The timber-impacted communities are of critical significance to the state because of their leading role in the overall economic well-being of the state and their importance to the quality of life to all residents of Washington, and that this region requires a special state effort to diversify the local economy;

(3) There are key opportunities to broaden the economic base in the timber-impacted communities including agriculture, high-technology, tourism, and regional exports; and

(4) A coordinated state, local, and private sector effort offers the greatest potential to promote economic diversification and to provide support for new projects within the region.

The legislature further finds that if a special state effort does not take place the decline in allowable timber sales may result in a loss of six thousand logging and milling jobs; two hundred million dollars in direct wages and benefits; twelve thousand indirect jobs; and three hundred million dollars in indirect wages and benefits.

It is the intent of the legislature to develop comprehensive programs to provide diversified economic development and promote job creation and employment opportunities for the citizens of the timber-impacted communities."

"NEW SECTION. Sec. 2. For the purposes of sections 1 through 10 of this act:

(1) "Department" means the department of trade and economic development;

(2) "Board" means the economic recovery coordination board;

(3) "Federal timber impact area" means a county or city or town located within 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 positions or more; or (c) an annual unemployment rate twenty percent above the state average."

"NEW SECTION. Sec. 3. There is established the economic recovery coordination board. The board shall consist of one member from each economic development council in a timber impact area appointed by the governor, with representation from representatives of local businesses, labor organizations, local governments, visitor and convention bureaus, local educational institutions, local associate development organizations, the agribusiness community, and local ports. In making the appointments, the governor shall endeavor to ensure that the appointees have experience in local diversification efforts. Vacancies shall be filled in the same manner as the original appointment.

The board shall review and provide recommendations on proposals for the diversification of the timber-impacted areas presented to it by the department.

The board shall appoint members to local recovery advisory committees in each timber impact area. In making the appointments the board shall endeavor to recruit members of the community with expertise in areas needed to create a revitalized economy. The advisory committee shall assist the recovery board with review and recommendations.

Members of the board and committees shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060."

"NEW SECTION. Sec. 4. The department of trade and economic development shall begin implementation of economic diversification programs.

In carrying out these programs, the department, in consultation with the economic recovery coordination board, shall determine which objectives are most likely to lead to economic recovery and diversification. Consideration shall be given to potential jobs and income benefits, generation of additional fiscal support, increased private sector participation, and market forces supporting the proposed objectives. The department shall further employ a project manager who will coordinate with the economic recovery board. The board shall consider such studies and governmental agencies which could support the priority goals determined under this section."

"NEW SECTION. Sec. 5. The department shall designate a project manager to facilitate the department's activities within the timber-impacted regions. The manager's responsibilities shall include but not be limited to:

(1) Seeking to increase the use of existing state economic development programs in the timber-impacted regions;

(2) Helping to locate additional funds to be used for diversification and recovery activities;

(3) Seeking advice and recommendations from the board on activities within the priority areas;

(4) Coordinating evaluation of state programs in the region;

(5) Seeking to increase the effectiveness of existing efforts to incubate new enterprises in the timber-impacted areas and to increase the resources devoted to the incubation of new enterprises;

(6) Facilitating a new technology and research base in the region for local businesses, including efforts to increase: The availability and accessibility of venture capital in the timber-impacted areas, especially for the early stages of enterprise development and for the expansion of existing enterprises, the accessibility of legal expertise, especially in regard to licenses and patents, and the identification of and assistance to entrepreneurs with expertise in managing new product development; and

(7) Increasing the availability and coordination of resources devoted to the expansion, development, and modernization of enterprises in existing promising growth areas of the timber-impacted regional economy such as the industrial applications of advanced technology and recreational development."

"NEW SECTION. Sec. 6. The department shall contract with local bodies to develop various programs to promote diversification, such as regional exporting, waterfront tourism, job retention, small business marketing and training, small business incubators, investment opportunities, and securing federal contracts. The department, after consultation with the board, shall establish guidelines for the awarding of contracts under this section."

"NEW SECTION. Sec. 7. The department, in consultation with the board, 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) Receive assistance from the board in the department's efforts to increase the competitiveness of the industry and increase the production of value-added products by providing grants for feasibility studies and product research and development. The grants under this subsection shall:

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

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

(c) Be less than thirty five thousand dollars unless seventy-five percent of the department authorizes up to fifty thousand dollars.

(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 department determines appropriate for public or private actions needed to improve the competitiveness of the wood products industry in this state.

In pursuing efforts to stimulate the growth of timber enterprises and to strengthen the timber economy, the state should identify opportunities to learn from and/or work with other states and provinces. A regional working session on value-added timber products, jointly sponsored by the Pacific Northwest economic region and the northwest policy center, shall be held in 1991. Washington state and its appropriate agencies are encouraged to participate in this working session."

"NEW SECTION. Sec. 8. (1) The department shall develop an implementation plan for a forest products development center to be located in Forks, Washington, as a model public/private manufacturing partnership. The center plan shall determine methods to:

(a) Improve the technology in the timber industry by improving production methods and equipment to become more competitive;

(b) Work with private industry to improve the infrastructure to finance the capital expenditures necessary for public facilities such as roads and utilities;

(c) Train new production workers to be more sophisticated production workers by offering training opportunities allowing workers to adapt to a changing workplace;

(d) Provide updated knowledge of the consumer and industry trends around the world to identify markets; and

(e) Serve as a model to demonstrate environmental compliance techniques allowing efficient, profitable production to be sustained at all times.

(2) This plan shall be submitted to the legislature by July 1, 1992."

"NEW SECTION. Sec. 9. The department, in consultation with the board, shall conduct long-range policy planning surveys to determine the best options and alternative economic programs for long-term development in the timber-impacted counties of the state of Washington. These surveys are to include:

(1) A survey of the feasibility of developing tele-commuting businesses;

(2) A growers' marketing cooperative for alternative forest products;

(3) Strengthening the business assistance center concept in the timber-impacted areas to insure expanding and new businesses will be able to have all inquiries answered at one governmental agency;

(4) A survey and recommendation by the department to develop small business relocation grants to encourage the influx of new business to the timber-impacted counties;

(5) Expansion of the Washington market place program including: The development of a wood products manufacturers network to encourage cooperative product marketing and expanded export assistance;

(6) The department and the board shall conduct a survey to determine the actual future employment needs and jobs skills in the timber-impacted areas.

The Washington state air transportation commission shall conduct a study of the possibility of locating an airport facility designed to relieve air traffic overflow from Seattle-Tacoma international airport in Grays Harbor county.

The commission shall consider airport facilities currently in use in Grays Harbor county, the property set aside at the uncompleted Satsop nuclear site, the distance from operating port facilities, the desires of the community, and linkage with the Interstate 5 corridor by rapid transit rail service."

"NEW SECTION. Sec. 10. (1) Through an interagency agreement with the department, the employment security department shall provide enhanced retraining, support services, and job search assistance, including an out-of-area job search and relocation component, if needed, for dislocated workers in the timber-impacted areas. For the purpose of this section "dislocated workers" means workers in the timber-impacted areas who (a) have been terminated or laid off, or received a notice of termination or layoff from employment and are eligible for or have exhausted their entitlement to benefits under Title 50 RCW; (b) have been terminated as a result of any permanent plant closure; (c) are long-term unemployed and are unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry; or (d) are farmers or other self-employed individuals who have been displaced due to economic conditions or natural disasters. Training and retraining assistance shall be designed to contribute to the diversification of the economy of the timber-impacted areas or to relieve economic dislocation and distress in the timber-impacted areas resulting from the sudden and severe loss of local sources of employment.

(2) The employment security department shall consult with and may subcontract with local educational institutions, local businesses, local labor organizations, local associate development organizations, local private industry councils, local social service organizations, and local governments in carrying out this program of training and services for dislocated workers in the timber-impacted areas.

(3) Training and retraining assistance provided under sections 1 through 10 of this act should include but need not be limited to the following areas: Entrepreneurial development and training; short-term job creation; training in the incubation of new business enterprises and training at incubator facilities; agriculture, agricultural processing, and agricultural services; the industrial applications of advanced technology; recreational and tourism development; and training through the self-employment and enterprise development (SEED) program. The department of social and health services shall help families and workers make the transition through economic difficulties and provide workers with marketable skills. Funding shall be coordinated through the board which will establish a fund to provide child care assistance, mortgage assistance, and counseling which cannot be met through current programs.

(4) Such services shall be either direct or referral services to the unemployed, and should include, but need not be limited to: Credit counseling; social services including marital counseling; psychotherapy or psychological counseling; mortgage foreclosures and utilities problems counseling; drug and alcohol abuse services; medical services; and residential heating and food acquisition.

(5) The employment security department shall coordinate the services provided in this section with all other services provided by the department and with the other economic recovery efforts undertaken by state and local government agencies on behalf of the timber-impacted areas.

(6) Subcontractors shall conduct outreach efforts to encourage the unemployed to seek assistance.

(7) The department shall make every effort to procure additional federal and other moneys for the efforts enumerated in this section."

"NEW SECTION. Sec. 11. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 12 through 16 of this act:

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

(2) "Timber worker" means any person employed in industries within the standard industrial classification code numbers 8, 24, and 26.

(4) "Program" or "counter-cyclical program" means the program for dislocated timber workers administered by the employment security department in conjunction with the department of natural resources.

(5) "Enrollee" means any person enrolled in the counter-cyclical program."

"NEW SECTION. Sec. 12. (1) The counter-cyclical program for dislocated timber workers is established in the department. The program shall provide forest-related employment and job retraining assistance to unemployed timber workers residing in federal timber impact areas. The department shall notify timber workers receiving unemployment benefits, or who have exhausted unemployment benefits of their eligibility for the program.

(2) A person is considered a dislocated timber worker and eligible to participate in this program:

(a) Upon exhaustion of unemployment insurance benefits received upon termination of employment from industries within the standard industrial classification code numbers 8, 24, and 26; or

(b) If currently unemployed, employed part time, or if employment has been terminated within one year previous to the effective date of this act.

(3) The department of natural resources shall employ candidates for the counter-cyclical program from a pool of eligible workers developed by the department."

"NEW SECTION. Sec. 13. The department shall contract with the department of natural resources to provide employment opportunities for not less than two hundred eligible enrollees. Employment opportunities under the counter-cyclical program shall consist of activities that improve the value of state lands and waters managed by the department of natural resources. These activities may include, but are not limited to, thinning and precommercial thinning, pruning, slash removal, reforestation, fire suppression, trail maintenance, maintenance of recreational facilities, dike repair, development and maintenance of tourist facilities, stream enhancement."

"NEW SECTION. Sec. 14. Enrollees in the counter-cyclical program shall receive medical and dental benefits as provided under chapter 41.05 RCW, but are exempt from the provisions of chapter 41.06 RCW. Compensation for the counter-cyclical program shall be at least nine dollars per hour of employment. Employees shall not work more than thirty-two hours each week in this program and must agree to participate in the career orientation program established in this chapter, under the department. Participation in the counter-cyclical program is limited to six months. Employment under the program shall not result in the displacement or partial displacement of currently employed workers. This includes, but is not limited to, state employees or currently or normally contracted service employees."

"NEW SECTION. Sec. 15. The department shall develop a career orientation program for enrollees in the counter-cyclical program. The department shall provide at least eight hours of career counseling each week for enrollees in this program. The career orientation program shall include, but is not limited to, counseling on employment options and assistance in accessing retraining programs, and assistance in accessing social service programs."

"NEW SECTION. Sec. 16. The department of natural resources shall provide compensation for enrollees in this program as provided under section 14 of this act."

"NEW SECTION. Sec. 17. A new section is added to chapter 50.22 RCW to read as follows:

A program to provide training and extended benefits for unemployed forest products workers is established. The program shall begin on the third Sunday after the effective date of this section. The program shall provide that:

(1) To be eligible for the program, a person must:

(a) Be certified by his or her employer to be permanently or indefinitely unemployed due to lack of work caused by a curtailment of timber harvesting or a shortage of raw materials resulting from compliance with environmental laws or rules; and

(b) Have one thousand three hundred sixty hours of employment in the forest products industry in the first eight of the last nine completed calendar quarters prior to his or her application for unemployment compensation benefits.

(2) The department shall notify potentially eligible persons who apply for unemployment compensation benefits of the provisions of this section.

(3) Eligible persons shall develop individual training plans and submit the plans to the commissioner for approval.

(4) If a training plan is approved by the commissioner within the first sixteen weeks of a person's unemployment compensation claim or within sixteen weeks of the effective date of this act, whichever is later, the person shall be eligible for extended benefits under subsection (5) of this section and for tuition waivers under section 18 of this act.

(5) Persons eligible under subsections (1) and (4) of this section who are either enrolled in a training course that has been approved by the commissioner or have applied to and are waiting for admission into an approved training course are eligible for extended benefits for an additional twenty-six weeks. Total unemployment compensation benefits may not exceed fifty-two times the eligible person's weekly benefit amount reduced by other state or federal unemployment benefits available for the same weeks of unemployment.

(6) Benefits paid pursuant to this section shall be paid under the same terms and conditions as extended benefits and shall not be charged to the experience rating accounts of individual employers.

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

"NEW SECTION. Sec. 18. A new section is added to chapter 28B.15 RCW to read as follows:

Unemployed forest workers eligible for benefits under section 17 of this act who comply with all requirements for admittance shall be admitted to and may attend any public four-year institution of higher education, community college, or vocational-technical institution that has space available without paying tuition and service and activity fees for courses approved by the commissioner of employment security under section 17 of this act. A tuition waiver is limited to a maximum of six academic quarters, four semesters, or the equivalent of two academic years of full-time study.

This section shall expire on June 30, 1996.

"Sec. 19. RCW 28B.15.740 and 1989 c 340 s 2 are each amended to read as follows:

(1) The boards of trustees or regents of each of the state's regional universities, The Evergreen State College, or state universities, and the various community colleges, consistent with regulations and procedures established by the state board for community college education, may waive, in whole or in part, tuition and services and activities fees subject to the limitations set forth in subsections (2) and (3) of this section.

(2) Except as provided in subsection (3) of this section, the total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college, shall not exceed four percent, and for the community colleges considered as a whole, such amount shall not exceed three percent of an amount determined by estimating the total collections from tuition and services and activities fees had no such waivers been made and deducting the portion of that total amount which is attributable to the difference between resident and nonresident fees: PROVIDED, That at least three‑fourths of the dollars waived shall be for needy students who are eligible for resident tuition and fee rates pursuant to RCW 28B.15.012 through 28B.15.015: PROVIDED FURTHER, That the remainder of the dollars waived, not to exceed one‑fourth of the total, may be applied to other students at the discretion of the board of trustees or regents, except on the basis of participation in intercollegiate athletic programs: PROVIDED FURTHER, That the waivers for undergraduate and graduate students of foreign nations under RCW 28B.15.556 and the waivers for unemployed forest industry workers under section 18 of this act are not subject to the limitation under this section.

(3) In addition to the tuition and fee waivers provided in subsection (2) of this section and subject to the provisions of RCW 28B.15.455 and 28B.15.460, a total dollar amount of tuition and fee waivers awarded by any state university, regional university, or state college, not to exceed one percent, as calculated in subsection (2) of this section, may be used for the purpose of achieving or maintaining gender equity in intercollegiate athletic programs. At any institution that has an underrepresented gender class in intercollegiate athletics, any such waivers shall be awarded:

(a) First, to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; and

(b) Second, (i) to nonmembers of the underrepresented gender class who participate in intercollegiate athletics, where such waivers result in saved or displaced money that can be used for athletic programs for members of the underrepresented gender class. Such saved or displaced money shall be used for programs for the underrepresented gender class; or (ii) to members of the underrepresented gender class who participate in intercollegiate athletics, where such waivers do not result in any saved or displaced money that can be used for athletic programs for members of the underrepresented gender class."

"Sec. 20. RCW 70.47.010 and 1987 1st ex.s. c 5 s 3 are each amended to read as follows:

(1) The legislature finds that:

(a) A significant percentage of the population of this state does not have reasonably available insurance or other coverage of the costs of necessary basic health care services;

(b) This lack of basic health care coverage is detrimental to the health of the individuals lacking coverage and to the public welfare, and results in substantial expenditures for emergency and remedial health care, often at the expense of health care providers, health care facilities, and all purchasers of health care, including the state; and

(c) The use of managed health care systems has significant potential to reduce the growth of health care costs incurred by the people of this state generally, and by low-income pregnant women who are an especially vulnerable population, along with their children, and who need greater access to managed health care.

(2) The purpose of this chapter is to provide necessary basic health care services in an appropriate setting to working persons and others who lack coverage, at a cost to these persons that does not create barriers to the utilization of necessary health care services. To that end, this chapter establishes a program to be made available to those residents under sixty-five years of age not otherwise eligible for medicare with gross family income at or below two hundred percent of the federal poverty guidelines or who have been dislocated from their jobs as a result of changes in the local economy where they work, who share in the cost of receiving basic health care services from a managed health care system.

(3) It is not the intent of this chapter to provide health care services for those persons who are presently covered through private employer-based health plans, nor to replace employer-based health plans. Further, it is the intent of the legislature to expand, wherever possible, the availability of private health care coverage and to discourage the decline of employer-based coverage.

(4) The program authorized under this chapter is strictly limited in respect to the total number of individuals who may be allowed to participate and the specific areas within the state where it may be established. All such restrictions or limitations shall remain in full force and effect until quantifiable evidence based upon the actual operation of the program, including detailed cost benefit analysis, has been presented to the legislature and the legislature, by specific act at that time, may then modify such limitations."

"Sec. 21. RCW 70.47.020 and 1987 1st ex.s. c 5 s 4 are each amended to read as follows:

As used in this chapter:

(1) "Washington basic health plan" or "plan" means the system of enrollment and payment on a prepaid capitated basis for basic health care services, administered by the plan administrator through participating managed health care systems, created by this chapter.

(2) "Administrator" means the Washington basic health plan administrator.

(3) "Managed health care system" means any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof, that provides directly or by contract basic health care services, as defined by the administrator and rendered by duly licensed providers, on a prepaid capitated basis to a defined patient population enrolled in the plan and in the managed health care system.

(4) "Enrollee" means an individual, or an individual plus the individual's spouse and/or dependent children, all under the age of sixty-five and not otherwise eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, whose gross family income at the time of enrollment does not exceed twice the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services, or who has been dislocated from his or her job as a result of changes in the local economy where he or she works, who chooses to obtain basic health care coverage from a particular managed health care system in return for periodic payments to the plan.

(5) "Subsidy" means the difference between the amount of periodic payment the administrator makes, from funds appropriated from the basic health plan trust account, to a managed health care system on behalf of an enrollee and the amount determined to be the enrollee's responsibility under RCW 70.47.060(2).

(6) "Premium" means a periodic payment, based upon gross family income and determined under RCW 70.47.060(2), which an enrollee makes to the plan as consideration for enrollment in the plan.

(7) "Rate" means the per capita amount, negotiated by the administrator with and paid to a participating managed health care system, that is based upon the enrollment of enrollees in the plan and in that system.

(8) "Dislocated workers" means workers in timber-impacted areas who (a) have been terminated or laid off or received a notice of termination or layoff from employment and are eligible for or have exhausted their entitlement to benefits under Title 50 RCW; (b) have been terminated as a result of any permanent plant closure; or (c) are long-term unemployed and are unlikely to return to employment in a timber-related occupation because of a diminishing demand for their skills in that occupation."

"Sec. 22. RCW 70.47.060 and 1987 1st ex.s. c 5 s 8 are each amended to read as follows:

The administrator has the following powers and duties:

(1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, and other services that may be necessary for basic health care, which enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care, shall include all services necessary for prenatal, postnatal, and well-child care, and shall include a separate schedule of basic health care services for children, eighteen years of age and younger, for those enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.42.080, and such other factors as the administrator deems appropriate.

(2) To design and implement a structure of periodic premiums due the administrator from enrollees that is based upon gross family income, giving appropriate consideration to family size as well as the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan.

(3) To design and implement a structure of nominal copayments due a managed health care system from enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services.

(4) To design and implement, in concert with a sufficient number of potential providers in a discrete area, an enrollee financial participation structure, separate from that otherwise established under this chapter, that has the following characteristics:

(a) Nominal premiums that are based upon ability to pay, but not set at a level that would discourage enrollment;

(b) A modified fee-for-services payment schedule for providers;

(c) Coinsurance rates that are established based on specific service and procedure costs and the enrollee's ability to pay for the care. However, coinsurance rates for families with incomes below one hundred twenty percent of the federal poverty level shall be nominal. No coinsurance shall be required for specific proven prevention programs, such as prenatal care. The coinsurance rate levels shall not have a measurable negative effect upon the enrollee's health status; and

(d) A case management system that fosters a provider-enrollee relationship whereby, in an effort to control cost, maintain or improve the health status of the enrollee, and maximize patient involvement in her or his health care decision-making process, every effort is made by the provider to inform the enrollee of the cost of the specific services and procedures and related health benefits.

The potential financial liability of the plan to any such providers shall not exceed in the aggregate an amount greater than that which might otherwise have been incurred by the plan on the basis of the number of enrollees multiplied by the average of the prepaid capitated rates negotiated with participating managed health care systems under RCW 70.47.100 and reduced by any sums charged enrollees on the basis of the coinsurance rates that are established under this subsection.

(5) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists.

(6) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080.

In the selection of any area of the state for the initial operation of the plan, the administrator shall take into account the levels and rates of unemployment in different areas of the state, the need to provide basic health care coverage to a population reasonably representative of the portion of the state's population that lacks such coverage, and the need for geographic, demographic, and economic diversity.

Before July 1, 1988, the administrator shall endeavor to secure participation contracts with managed health care systems in discrete geographic areas within at least five congressional districts.

(7) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state.

(8) To receive periodic premiums from enrollees, employers, and the department of labor and industries, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.

(9) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and at least annually thereafter, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums or status as a dislocated worker. An enrollee who remains current in payment of the sliding-scale premium, as determined under subsection (2) of this section, and whose gross family income has risen above twice the federal poverty level or whose status as a dislocated worker has changed, may continue enrollment unless and until the enrollee's gross family income has remained above ((~~twice~~)) four times the poverty level for six consecutive months, by making payment at the unsubsidized rate required for the managed health care system in which he or she may be enrolled. No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level, who is a dislocated worker, or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to re-enroll in the plan.

(10) To require that prospective enrollees who may be eligible for categorically needy medical coverage under RCW 74.09.510 or whose income does not exceed the medically needy income level under RCW 74.09.700 apply for such coverage, but the administrator shall enroll the individuals in the plan pending the determination of eligibility under chapter 74.09 RCW.

(11) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.

(12) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the administrator. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the ((~~hospital commission~~)) department of health, to minimize duplication of effort.

(13) To monitor the access that state residents have to adequate and necessary health care services, determine the extent of any unmet needs for such services or lack of access that may exist from time to time, and make such reports and recommendations to the legislature as the administrator deems appropriate.

(14) To evaluate the effects this chapter has on private employer-based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.

(15) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.

(16) To provide, consistent with available resources, technical assistance for rural health activities that endeavor to develop needed health care services in rural parts of the state."

"Sec. 23. RCW 70.47.080 and 1987 1st ex.s. c 5 s 10 are each amended to read as follows:

On and after July 1, 1988, the administrator shall accept for enrollment applicants eligible to receive covered basic health care services from the respective managed health care systems which are then participating in the plan. The administrator shall not allow the total enrollment of those eligible for subsidies to exceed thirty thousand.

Thereafter, total enrollment shall not exceed the number established by the legislature in any act appropriating funds to the plan.

Before July 1, 1988, the administrator shall endeavor to secure participation contracts from managed health care systems in discrete geographic areas within at least five congressional districts of the state and in such manner as to allow residents of both urban and rural areas access to enrollment in the plan. The administrator shall make a special effort to secure agreements with health care providers in one such area that meets the requirements set forth in RCW 70.47.060(4).

The administrator shall at all times closely monitor growth patterns of enrollment so as not to exceed that consistent with the orderly development of the plan as a whole, in any area of the state or in any participating managed health care system.

This section shall not apply to those areas where there are enrollees designated as dislocated workers."

"NEW SECTION. Sec. 24. (1) The Pacific Northwest export assistance project is hereby created for the following purposes:

(a) To assist small to medium-sized manufacturers relatively new to exporting with gross annual revenues less than twenty-five million dollars with comprehensive services for designing and managing introductory export strategies and in securing financing and credit guarantees for export transactions;

(b) To provide, in cooperation with the export promotion services offered by the department of trade and economic development and the Washington state department of agriculture, information and assistance to businesses with gross annual revenues less than twenty-five million dollars about the methods and procedures of structuring company specific export financing and credit guarantee alternatives; or

(c) To provide information to their clients about opportunities in organizing cooperative export networks, foreign sales corporations, or export trading companies under the United States export trading company act of 1982, for the purpose of increasing their comparative sales volume and ability to export their products to foreign markets.

(2) The Pacific Northwest export assistance project is a separate branch of the small business export finance assistance center for accounting and auditing purposes.

(3) The Pacific Northwest export assistance project is subject to the authority of the small business export finance assistance center, under RCW 43.210.020, and shall be governed and managed by the board of directors, under RCW 43.210.030."

"NEW SECTION. Sec. 25. (1) The small business export finance assistance center has the following powers and duties when exercising its authority under section 24(3) of this act:

(a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other public or private sources to carry out its purposes;

(b) Offer comprehensive export assistance and counseling to manufacturers relatively new to exporting with gross annual revenues less than twenty-five million dollars. As close to ninety percent as possible of each year's new cadre of clients must have gross annual revenues of less than five million dollars at the time of their initial contract. Counseling may include, but not be limited to, helping clients obtain debt or equity financing, in constructing competent proposals, and assessing federal guarantee and/or insurance programs that underwrite exporting risk; assisting clients in evaluating their international marketplace by developing marketing materials, assessing and selecting targeted markets; assisting firms in finding foreign customers by conducting foreign market research, evaluating distribution systems, selecting and assisting in identification of and/or negotiations with foreign agents, distributors, retailers, and by promoting products through attending trade shows abroad; advising companies on their products, guarantees, and after sales service requirements necessary to compete effectively in a foreign market; designing a competitive strategy for a firm's products in targeted markets and methods of minimizing their commercial and political risks; securing for clients specific assistance as needed, outside the center's field of expertise, by referrals to other public or private organizations. The Pacific Northwest export assistance project shall focus its efforts on facilitating export transactions for its clients, and in doing so, provide such technical services as are appropriate to accomplish its mission either with staff or outside consultants;

(c) Sign three-year counseling agreements with its clients that provide for termination if adequate funding for the Pacific Northwest export assistance project is not provided in future appropriations. Counseling agreements shall not be renewed unless there are compelling reasons to do so, and under no circumstances shall they be renewed for more than two additional years. A counseling agreement may not be renewed more than once. The counseling agreements shall have mutual performance clauses, that if not met, will be grounds for releasing each party, without penalty, from the provisions of the agreement. Clients shall be immediately released from a counseling agreement with the Pacific Northwest export assistance project, without penalty, if a client wishes to switch to a private export management service and produces a valid contract signed with a private export management service, or if the president of the small business export finance assistance center determines there are compelling reasons to release a client from the provisions of the marketing agreement;

(d) May contract with private or public international trade education services to provide Pacific Northwest export assistance project clients with training in international business. The president and board of directors shall decide the amount of funding allocated for educational services based on the availability of resources in the operating budget of the budget of the Pacific Northwest export assistance project;

(e) May contract with the Washington state international trade fair to provide services for Pacific Northwest export assistance project clients to participate in one trade show annually. The president and board of directors shall decide the amount of funding allocated for trade fair assistance based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;

(f) Provide biennial assessments of its performance. The Pacific Northwest export assistance project is an innovative program for the promotion of international trade. As such, the project personnel shall work with the department of revenue and employment security department to confidentially track the performance of the project's clients in increasing tax revenues to the state, increasing gross sales revenues and volume of products destined to foreign clients, and in creating new jobs for Washington citizens. A biennial report shall be prepared for the governor and legislature to assess the costs and benefits to the state from creating the project. The president of the small business export finance assistance center shall design an appropriate methodology for biennial assessments in consultation with the director of the department of trade and economic development and the director of the Washington state department of agriculture. The department of revenue and the employment security department shall provide data necessary to complete this biennial evaluation, if the data being requested is available from existing data bases. Client-specific information generated from the files of the department of revenue and the employment security department for the purposes of this evaluation shall be kept strictly confidential by each department and the small business export finance assistance center;

(g) Take whatever action may be necessary to accomplish the purposes set forth in sections 24 through 27 of this act; and

(h) Limit its assistance to promoting the exportation of value-added manufactured goods. The project shall not provide counseling or assistance, under any circumstances, for the importation of foreign made goods into the United States.

(2) The Pacific Northwest export assistance project shall not, under any circumstances, assume ownership or take title to the goods of its clients.

(3) The Pacific Northwest export assistance project may not use any Washington state funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement. Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement. Debts of the center shall be center debts only and may be satisfied only from the resources of the center. The state of Washington shall not in any way be liable for such debts.

(4) The Pacific Northwest export assistance project shall make every effort to seek nonstate funds to supplement its operations.

(5) The Pacific Northwest export assistance project shall take whatever steps are necessary to provide its services, if requested, to the states of Oregon, Idaho, Montana, Alaska, and the Canadian provinces of British Columbia and Alberta. Interstate services shall not be provided by the Pacific Northwest export assistance project during its first biennium of operation. The provision of services may be temporary and subject to the payment of fees, or each state may request permanent services contingent upon a level of permanent funding adequate for services provided. Temporary services and fees may be negotiated by the small business export finance assistance center's president subject to approval of the board of directors. The president of the small business export finance assistance center may enter into negotiations with neighboring states to contract for delivery of the project's services. Final contracts for providing the project's counseling and services outside of the state of Washington on a permanent basis shall be subject to approval of the governor, appropriate legislative oversight committees, and the small business export finance assistance center's board of directors.

(6) The small business export finance assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the Pacific Northwest export assistance project and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

(7) The president of the small business export finance assistance center, in consultation with the board of directors, may use the following formula in determining the number of clients that can be reasonably served by the Pacific Northwest export assistance project relative to its appropriation. Divide the amount appropriated for administration of the Pacific Northwest export assistance project by the marginal cost of adding each additional Pacific Northwest export assistance project client. For the purposes of this calculation, and only for the first biennium of operation, the biennial marginal cost of adding each additional Pacific Northwest export assistance project client shall be fifty-seven thousand ninety-five dollars. The biennial marginal cost of adding each additional client after the first biennium of operation shall be established from the actual operating experience of the Pacific Northwest export assistance project.

(8) All receipts from the Pacific Northwest export assistance project shall be deposited into the general fund."

"NEW SECTION. Sec. 26. The department of trade and economic development shall adopt rules under chapter 34.05 RCW as necessary to carry out the purposes of sections 24 through 27 of this act."

"NEW SECTION. Sec. 27. The small business export finance assistance center fund is created in the custody of the state treasurer. Expenditures from the fund may be used only for the purposes of funding the services of the small business export finance assistance center and its projects under this chapter. Only the director of the department of trade and economic development or the director's designee may authorize expenditures from the fund. The director of the department of trade and economic development shall not withhold funds appropriated for the administration of the small business export finance assistance center and its projects, if the small business export finance assistance center complies with the provisions of its contract under RCW 43.210.050 and section 24 of this act. Funding appropriated by the state of Washington shall not be used to provide services to other states or provinces. The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures."

"Sec. 28. RCW 43.210.030 and 1985 c 231 s 3 are each amended to read as follows:

The small business export finance assistance center and its branches shall be governed and managed by a board of ((~~seventeen~~)) nineteen directors appointed by the governor and confirmed by the senate. The directors shall serve terms of six years except that two of the original directors shall serve for two years and two of the original directors shall serve for four years. The directors may provide for the payment of their expenses. The directors shall include a representative of a not‑for‑profit corporation formed for the purpose of facilitating economic development, at least two representatives of state financial institutions engaged in the financing of export transactions, a representative of a port district, and a representative of organized labor. Of the remaining board members, there shall be ((~~a representative of the governor,~~)) one representative of business from the area west of Puget Sound, one representative of business from the area east of Puget Sound and west of the Cascade range, one representative of business from the area east of the Cascade range and west of the Columbia river, ((~~and~~)) one representative of business from the area east of the Columbia river, the director of the department of trade and economic development, and the director of the department of agriculture. One of the directors shall be a representative of the public selected from the area in the state west of the Cascade mountain range and one director shall be a representative of the public selected from that area of the state east of the Cascade mountain range. One director shall be a representative of the public at large. The directors shall be broadly representative of geographic areas of the state, and the representatives of businesses shall represent at least four different industries in different sized businesses as follows: (a) One representative of a company employing fewer than one hundred persons; (b) one representative of a company employing between one hundred and five hundred persons; ((~~and~~)) (c) ((~~two~~)) one representative((s)) of companies employing more than five hundred persons; (d) one representative from an export management company; and (e) one representative from an agricultural or food processing company. Any vacancies on the board due to the expiration of a term or for any other reason shall be filled by appointment by the governor for the unexpired term."

"Sec. 29. RCW 43.210.050 and 1985 c 466 s 64 and 1985 c 231 s 5 are each reenacted and amended to read as follows:

The small business export finance assistance center formed under RCW 43.210.020 and 43.210.030 ((~~is eligible to receive consideration for~~)) shall enter into a contract under this chapter ((~~from the~~)) with the department of trade and economic development or its statutory successor. The contract shall require the center to provide export assistance services, ((~~may not have a duration of longer than two years,~~)) consistent with sections 24 through 27 of this act, shall have a duration of two years, and shall require the center to aggressively seek to fund its continued operation from nonstate funds. The contract shall also require the center to report ((~~at least twice~~)) annually to the department on its success in obtaining nonstate funding. Upon expiration of the contract, any provisions within the contract applicable to the Pacific Northwest export assistance project shall be automatically renewed without change provided the legislature appropriates funds for administration of the small business export assistance center and the Pacific Northwest export assistance project. The provisions of the contract related to the Pacific Northwest export assistance project may be changed at any time if the director of the department of trade and economic development or the president of the small business export finance assistance center present compelling reasons supporting the need for a contract change to the board of directors and a majority of the board of directors agrees to the changes. The department of agriculture shall be included in the contracting negotiations with the department of trade and economic development and the small business export finance assistance center when the Pacific Northwest export assistance project provides export services to industrial sectors within the administrative domain of the Washington state department of agriculture. The department of trade and economic development, the small business export finance assistance center, and, if appropriate, the department of agriculture, shall report annually, as one group, to the appropriate legislative oversight committees on the progress of the Pacific Northwest export assistance project."

"NEW SECTION. Sec. 30. The following acts or parts of acts are each repealed:

(1) RCW 43.131.325 and 1985 c 231 s 10; and

(2) RCW 43.131.326 and 1985 c 231 s 11."

"NEW SECTION. Sec. 31. A new section is added to chapter 43.131 RCW to read as follows:

The Pacific Northwest export assistance project shall be terminated on June 30, 1996, as provided in section 32 of this act."

"NEW SECTION. Sec. 32. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1997:

(1) Section 24 of this act;

(2) Section 25 of this act;

(3) Section 26 of this act; and

(4) Section 27 of this act."

"Sec. 33. RCW 82.60.020 and 1988 c 42 s 16 are each amended to read as follows:

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

(1) "Applicant" means a person applying for a tax deferral under this chapter.

(2) "Department" means the department of revenue.

(3) "Eligible area" means: (a) A county in which the average level of unemployment for the three years before the year in which an application is filed under this chapter exceeds the average state unemployment for those years by twenty percent; or (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent. Applications under this subsection (3)(b) shall be filed by April 30, 1989. However, counties eligible under section 2 of this act may file an application by July 1, 1993.

(4)(a) "Eligible investment project" means that portion of an investment project which:

(i) Is directly utilized to create at least one new full-time qualified employment position for each three hundred thousand dollars of investment on which a deferral is requested; and

(ii) Either initiates a new operation, or expands or diversifies a current operation by expanding or renovating an existing building with costs in excess of twenty-five percent of the true and fair value of the plant complex prior to improvement; or

(iii) Acquires machinery and equipment to be used for either manufacturing or research and development if the machinery and equipment is housed in a new leased structure: PROVIDED, That the lessor/owner of the structure is not eligible for a deferral unless the underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person.

(b) "Eligible investment project" does not include any portion of an investment project undertaken by a light and power business as defined in RCW 82.16.010(5) or investment projects which have already received deferrals under this chapter.

(5) "Investment project" means an investment in qualified buildings and qualified machinery and equipment, including labor and services rendered in the planning, installation, and construction of the project.

(6) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.

(7) "Person" has the meaning given in RCW 82.04.030.

(8) "Qualified buildings" means new structures used for manufacturing and research and development activities, including plant offices and warehouses or other facilities for the storage of raw material or finished goods if such facilities are an essential or an integral part of a factory, mill, plant, or laboratory used for manufacturing or research and development. If a building is used partly for manufacturing or research and development and partly for other purposes, the applicable tax deferral shall be determined by apportionment of the costs of construction under rules adopted by the department.

(9) "Qualified employment position" means a permanent full-time employee employed in the eligible investment project during the entire tax year.

(10) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.

(11) "Recipient" means a person receiving a tax deferral under this chapter.

(12) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars."

"Sec. 34. RCW 82.62.010 and 1988 c 42 s 17 are each amended to read as follows:

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

(1) "Applicant" means a person applying for a tax credit under this chapter.

(2) "Department" means the department of revenue.

(4)(a) "Eligible business project" means manufacturing or research and development activities which are conducted by an applicant in an eligible area at a specific facility: PROVIDED, That the applicant's average full-time qualified employment positions at the specific facility will be at least fifteen percent greater in the year for which the credit is being sought than the applicant's average full-time qualified employment positions at the same facility in the immediately preceding year.

(b) "Eligible business project" does not include any portion of a business project undertaken by a light and power business as defined in RCW 82.16.010(5) or that portion of a business project creating qualified full-time employment positions outside an eligible area or those recipients of a sales tax deferral under chapter 82.61 RCW.

(5) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.

(6) "Person" has the meaning given in RCW 82.04.030.

(7) "Qualified employment position" means a permanent full-time employee employed in the eligible business project during the entire tax year.

(8) "Tax year" means the calendar year in which taxes are due.

(9) "Recipient" means a person receiving tax credits under this chapter.

(10) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars."

"Sec. 35. RCW 43.168.020 and 1988 c 42 s 18 are each amended to read as follows:

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

(1) "Committee" means the Washington state development loan fund committee.

(2) "Department" means the department of community development.

(3) "Director" means the director of the department of community development.

(4) "Distressed area" means: (a) A county which has an unemployment rate which is twenty percent above the state average for the immediately previous three years; (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent. Applications under this subsection (4)(b) shall be filed by April 30, 1989; ((or)) (c) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate; or (d) a county designated as a timber impact area under section 2 of this act if an application is filed by July 1, 1993. For purposes of this definition, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.

(5) "Fund" means the Washington state development loan fund.

(6) "Local development organization" means a nonprofit organization which is organized to operate within an area, demonstrates a commitment to a long-standing effort for an economic development program, and makes a demonstrable effort to assist in the employment of unemployed or underemployed residents in an area.

(7) "Project" means the establishment of a new or expanded business in an area which when completed will provide employment opportunities. "Project" also means the retention of an existing business in an area which when completed will provide employment opportunities."

"NEW SECTION. Sec. 36. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 37 through 40 of this act.

(1) "Timber-dependent community" means a community in which thirty percent or more of the work force is employed in the timber industry.

(2) "Permanent residence" means the residence in which an individual resides on the effective date of this act on a full-time basis, including detached, semi-detached, or townhouse units; modular homes; condominium units or manufactured housing units which meet the program standards.

(3) "Program" means the emergency mortgage assistance program."

"NEW SECTION. Sec. 37. The department shall establish and administer the emergency mortgage assistance program under the following general guidelines:

(1) A loan provided under the program shall not exceed an amount equal to twenty-four months of mortgage payments.

(2) The maximum loan amount allowed under the program shall not exceed twenty thousand dollars.

(3) Loans shall be made to applicants who meet specific income guidelines established by the department.

(4) Loans shall be granted on a first-come, first-served basis.

(5) Loan payments shall be made directly to the mortgage lender by the department.

(6) Repayment of loans provided under the program must not take more than twenty years.

(7) The department may provide for emergency short-term loans."

"NEW SECTION. Sec. 38. The goals of the program are to:

(1) Provide up to twenty-four months of emergency assistance loans to households who, because of their loss of employment in the timber industry for a period of six consecutive months, are unable to make current mortgage payments on their permanent residence and are likely to face imminent home mortgage or other home loan foreclosure proceedings;

(2) Prevent the dislocation of individuals and families from their permanent residences and their communities; and

(3) Maintain the economic and social stability of timber-dependent communities."

"NEW SECTION. Sec. 39. To become eligible to receive emergency mortgage assistance loans provided for under sections 36 through 40 of this act, an applicant must:

(1) Be unable to keep payments on his or her home mortgage current, due to a temporary loss of employment in the timber industry, and shall be at significant risk of forfeiting the title to his or her home;

(2) Have his or her permanent residence located in a timber-dependent community and be the owner of an equitable interest in such residence;

(3) Intend to reside in the home being financed;

(4) Be actively seeking new employment or be enrolled in a training program approved by the director; and

(5) With the assistance of the applicant's lender or other financial adviser, submit an application by June 30, 1996, to the department requesting assistance from the program."

"NEW SECTION. Sec. 40. The department shall carry out the following duties:

(1) Administer and implement the program;

(2) Develop and adopt the necessary rules for implementation of the program;

(3) Establish the interest rate for repayment of loans at two percent below the market rate;

(4) Work with lending institutions in timber-dependent communities to assure that all eligible homeowners are informed about the program;

(5) Utilize federal and state programs that complement or facilitate carrying out the program;

(6) Evaluate the program effectiveness;

(7) Submit a report to the senate commerce and labor committee by January 31, 1992."

"Sec. 41. RCW 43.160.010 and 1989 c 431 s 61 are each amended to read as follows:

(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 counties 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 counties 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 counties."

"Sec. 42. 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) "Federal timber impact area" means a county or a city or town located within 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 above the state average."

"NEW SECTION. Sec. 43. 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 federal timber impact areas 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. 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."

"NEW SECTION. Sec. 44. A new section is added to chapter 43.160 RCW to read as follows:

The board shall establish guidelines for making grants and loans to ensure that the requirements of this chapter are complied with. The guidelines shall include:

(1) A process to equitably compare and evaluate applications from competing communities.

(2) 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: (a) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (b) an analysis that establishes the project is feasible using standard economic principles; and (c) an explanation from the applicant regarding how the project is consistent with the communities', economic strategy and goals.

(3) 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."

"Sec. 45. RCW 43.160.076 and 1985 c 446 s 6 are each amended to read as follows:

(1) Except as authorized to the contrary under subsection (2) of this section, from all funds available to the board for loans and grants, the board shall spend at least ((~~twenty~~)) fifty percent for grants and loans for projects in distressed counties or federal timber impact areas. For purposes of this section, the term "distressed counties" includes any county, in which the average level of unemployment for the three years before the year in which an application for a loan or grant is filed, exceeds the average state employment for those years by twenty percent or federal timber impact areas.

(2) If at any time during the last six months of a biennium the board finds that the actual and anticipated applications for qualified projects in distressed counties or federal timber impact areas are clearly insufficient to use up the ((~~twenty~~)) fifty percent allocation, then the board shall estimate the amount of the insufficiency and during the remainder of the biennium may use that amount of the allocation for loans and grants for projects not located in distressed counties or federal timber impact areas."

"NEW SECTION. Sec. 46. (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 under section 2 of this act, 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 section and section 47 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 community economic revitalization 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. 47. (1) As authorized by section 46 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 section and section 46 of this act.

(3) The board shall award loans only to those projects that meet the criteria and will fulfill the purpose of this section and section 46 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. 48. The board shall provide to the office of financial management and the legislative fiscal committees a report by January 15, 1994, on the loans awarded through the biennium ending June 30, 1993."

"NEW SECTION. Sec. 49. To the extent that funds are specifically appropriated therefor, the state board for community college education shall provide training and retraining in timber-dependent communities as follows:

(1) Disbursement of funds to individual community colleges for supplemental slots in cases where enrollment demand exceeds allocation;

(2) Pilot projects for innovative approaches to literacy and employment training;

(3) Personnel and equipment for cranberry industry research;

(4) Grays Harbor Community College shall establish a program to train displaced timber workers to fill positions as safety training and vessel inspectors. They shall contract with those organizations deemed appropriate to carry out this program;

(5) Skagit Valley Community College shall establish a program to train displaced timber workers in natural resources technical programs in stream enhancement, including waters upstream or downstream as well as adjacent to state lands; water quality enhancement; irrigation repair; and the building of shellfish beds;

(6) Agricultural development, diversification, marketing, and processing programs in timber-impacted areas under sections 1 through 10 of this act. The department of trade and economic development shall contract with local organizations, institutions, or agencies to:

(a) Seek to increase the utilization of existing federal, state, and local programs for agricultural development, diversification, marketing, and processing in the timber-impacted regions;

(b) Seek to increase the coordination and effectiveness of existing federal, state, and local programs for agricultural development, diversification, marketing, and processing in the timber-impacted areas; and

(c) Undertake efforts to promote and further the existing strengths of the timber-impacted areas in the value-added program. To accomplish this the department shall provide a targeted industry strategy to increase the amount of value added to each board foot of timber harvested. The department shall provide technical assistance, plant-specific feasibility studies, additional industrial extension and outreach efforts, plus market development.

No contract may be entered into under this section until the department has consulted with the board.

For the purpose of this section, enrollment restrictions shall not apply in the community colleges in timber-impacted communities."

"NEW SECTION. Sec. 50. To the extent that funds are specifically appropriated therefor, the department of community development shall develop a community assistance program to enable communities to build local capacity for sustainable economic development efforts. The focus of this effort is to provide resources and technical assistance to local community leaders to carry out locally determined economic development projects."

"NEW SECTION. Sec. 51. To the extent that funds are specifically appropriated therefor, the employment security department shall establish and maintain a job service message center for displaced workers without phone service. The voice-mail service shall allow twenty-four hour access to phone messages from employers for job prospects and from case managers who provide essential employment and support services."

"NEW SECTION. Sec. 52. To the extent that funds are specifically appropriated therefor, the department of community development shall enhance the two reemployment centers in timber-dependent communities in order to continue providing referral services, counseling, and support."

"NEW SECTION. Sec. 53. To the extent that funds are specifically appropriated therefor, the University of Washington shall establish a research center for natural resources on the Olympic Peninsula. The center shall conduct research for forest resources and marine resources and shall coordinate research in marine resources with Grays Harbor and Peninsula Community Colleges."

"NEW SECTION. Sec. 54. If specific funding for the purposes of sections 3 through 10 of this act, referencing sections 3 through 10 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 3 through 10 of this act shall be null and void."

"NEW SECTION. Sec. 55. If specific funding for the purposes of sections 11 through 16 of this act, referencing sections 11 through 16 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 11 through 16 of this act shall be null and void."

"NEW SECTION. Sec. 56. If specific funding for the purposes of section 17 of this act, referencing section 17 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, section 17 of this act shall be null and void."

"NEW SECTION. Sec. 57. If specific funding for the purposes of sections 20 through 23 of this act, referencing sections 20 through 23 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 20 through 23 of this act shall be null and void."

"NEW SECTION. Sec. 58. If specific funding for the purposes of sections 24 through 32 of this act, referencing sections 24 through 32 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 24 through 32 of this act shall be null and void."

"NEW SECTION. Sec. 59. If specific funding for the purposes of sections 36 through 40 of this act, referencing sections 36 through 40 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 36 through 40 of this act shall be null and void."

"NEW SECTION. Sec. 60. If specific funding for the purposes of sections 41 through 45 of this act, referencing sections 41 through 45 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 41 through 45 of this act shall be null and void."

"NEW SECTION. Sec. 61. If specific funding for the purposes of sections 46 through 48 of this act, referencing sections 46 through 48 of this act by bill and section number, is not provided by June 30, 1991, in the omnibus appropriations act, sections 46 through 48 of this act shall be null and void."

"NEW SECTION. Sec. 62. (1) Sections 1 through 10 of this act are each added to chapter 43.31 RCW.

(2) Sections 11 through 16 of this act shall constitute a new chapter in Title 50 RCW.

(3) Sections 24 through 27 of this act are each added to chapter 43.210 RCW.

(4) Sections 36 through 40 of this act are each added to chapter 43.63A RCW."

"NEW SECTION. Sec. 63. Sections 46 through 48 of this act expire on June 30, 1994."

"NEW SECTION. Sec. 64. Sections 18, 19, 33 through 35, 49 through 51, and 54 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."

SSB 5555 - S AMD

By Senators Owen, McDonald, Snyder and Conner

ADOPTED 3/20/91 - Voice Vote

On page 1, line 2 of the title, after "state;" strike the remainder of the title and insert "amending RCW 28B.15.740, 70.47.010, 70.47.020, 70.47.060, 70.47.080, 43.210.030, 82.60.020, 82.62.010, 43.168.020, 43.160.010, 43.160.020, and 43.160.076; reenacting and amending RCW 43.210.050; adding new sections to chapter 43.31 RCW; adding a new section to chapter 50.22 RCW; adding a new section to chapter 28B.15 RCW; adding new sections to chapter 43.210 RCW; adding new sections to chapter 43.131 RCW; adding new sections to chapter 43.63A RCW; adding new sections to chapter 43.160 RCW; adding a new chapter to Title 50 RCW; creating new sections; repealing RCW 43.131.325 and 43.131.326; providing an expiration date; and declaring an emergency."