H-0939

AN ACT Relating to economic development; amending RCW 43.160.010, 43.160.020, 43.160.060, 43.160.076, 43.160.080, 43.168.050, 82.62.030, and 43.17.065; adding a new section to chapter 43.31 RCW; adding a new section to chapter 50.08 RCW; adding new sections to chapter 43.06 RCW; creating new sections; repealing RCW 82.62.040 and 82.60.050; making appropriations; and declaring an emergency.

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

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

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

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

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

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

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

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

(c) Provide tax incentives to encourage businesses to relocate to or expand in distressed or timber-dependent communities;

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

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

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

(g) Create an emergency fund administered by the governor to address gaps in state assistance to timber-dependent communities and to address unusual or emergency situations.

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

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

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

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

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

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

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

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

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

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

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

(4) The legislature finds that sharing economic growth state-wide is important to the welfare of the state. Distressed areas and timber-dependent 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. 3. RCW 43.160.020 and 1985 c 466 s 58 are each amended to read as follows:

INFRASTRUCTURE FINANCING--CERB--DEFINITIONS. 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) "Timber-dependent community" or "timber-dependent county" means any local government in a county where the employment security department certifies a logging and lumber employment location quotient of 1.0 or more of the state average or direct logging and lumber job loss of one hundred or more persons caused by the harvest level reductions recommended by the interagency scientific commission plan.

(12) "Distressed counties" or "distressed areas" includes any local government of a county in which the average level of unemployment for the previous three years exceeds the average state employment for those years by twenty percent.

Sec. 4. RCW 43.160.060 and 1990 1st ex.s. c 17 s 73 are each amended to read as follows:

INFRASTRUCTURE FINANCING--CERB--SPECULATIVE DEVELOPMENT. The board is authorized to make direct loans to political subdivisions of the state for the purposes of assisting the political subdivisions in financing the cost of public facilities, including development of land and improvements for public facilities, as well as the acquisition, construction, rehabilitation, alteration, expansion, or improvement of the facilities. A grant may also be authorized for purposes designated in this chapter, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.

Application for funds shall be made in the form and manner as the board may prescribe. In making grants or loans the board shall conform to the following requirements:

(1) The board shall not make a grant or loan:

(a) For a project the primary purpose of which is to facilitate or promote a retail shopping development or expansion.

(b) For any project that evidence exists would result in a development or expansion that would displace existing jobs in any other community in the state.

(2) The board shall only make grants or loans:

(a) For those projects which would result in specific private developments or expansions (i) in manufacturing, production, food processing, assembly, warehousing, and industrial distribution; (ii) for processing recyclable materials or for facilities that support recycling, including processes not currently provided in the state, including but not limited to, de-inking facilities, mixed waste paper, plastics, yard waste, and problem-waste processing; (iii) for manufacturing facilities that rely significantly on recyclable materials, including but not limited to waste tires and mixed waste paper; (iv) which support the relocation of businesses from nondistressed urban areas to distressed rural areas; or (v) which substantially support the trading of goods or services outside of the state's borders.

(b) For projects which it finds will improve the opportunities for the successful maintenance, establishment, or expansion of industrial or commercial plants or will otherwise assist in the creation or retention of long-term economic opportunities.

(c) When, except for applications from counties that are both timber-dependent and distressed, the application includes convincing evidence that a specific private development or expansion is ready to occur and will occur only if the grant or loan is made.

(3) The board shall prioritize each proposed project according to the relative benefits provided to the community by the jobs the project would create, not just the total number of jobs it would create after the project is completed and according to the unemployment rate in the area in which the jobs would be located, and additional priority shall be given to:

(i) Applications from communities that are both distressed and timber-dependent; and

(ii) Applications from public ports located in timber communities in which logs accounted for at least forty percent of port exports in 1990. As long as there is more demand for loans or grants than there are funds available for loans or grants, the board is instructed to fund projects in order of their priority.

(4) A responsible official of the political subdivision shall be present during board deliberations and provide information that the board requests.

Before any loan or grant application is approved, the political subdivision seeking the loan or grant must demonstrate to the community economic revitalization board that no other timely source of funding is available to it at costs reasonably similar to financing available from the community economic revitalization board.

Sec. 5. RCW 43.160.076 and 1985 c 446 s 6 are each amended to read as follows:

INFRASTRUCTURE FINANCING--CERB--PRIORITY TO TIMBER AND DISTRESSED COMMUNITIES. (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((. 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 timber-dependent counties.

(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 timber-dependent counties 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 timber-dependent counties.

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

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

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

Sec. 7. RCW 43.168.050 and 1990 1st ex.s. c 17 s 74 are each amended to read as follows:

BUSINESS FINANCING--DLF--PRIORITY TO TIMBER COMMUNITIES. (1) The committee may only approve an application providing a loan for a project which the committee finds:

(a) Will result in the creation of employment opportunities or the maintenance of threatened employment;

(b) Has been approved by the director as conforming to federal rules and regulations governing the spending of federal community development block grant funds;

(c) Will be of public benefit and for a public purpose, and that the benefits, including increased or maintained employment, improved standard of living, and the employment of disadvantaged workers, will primarily accrue to residents of the area;

(d) Will probably be successful;

(e) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable or the return on investment is inadequate.

(2) The committee shall, subject to federal block grant criteria, give higher priority to economic development projects that contain provisions for child care and projects from timber-distressed communities. A timber-distressed community is a county, city, town, or port district located in a county that:

(i) Has an unemployment rate that is twenty percent or more above the state average; and

(ii) Has a log and lumber employment location quotient of 1.0 or more of the state average or has lost one hundred or more total direct jobs from the logging and lumber industries because of the harvest reductions recommended by the interagency scientific commission plan.

(3) The committee may not approve an application if it fails to provide for adequate reporting or disclosure of financial data to the committee. The committee may require an annual or other periodic audit of the project books.

(4) The committee may require that the project be managed in whole or in part by a local development organization and may prescribe a management fee to be paid to such organization by the recipient of the loan or grant.

(5)(a) Except as provided in (b) of this subsection, the committee shall not approve any application which would result in a loan or grant in excess of three hundred fifty thousand dollars.

(b) The committee may approve an application which results in a loan or grant of up to seven hundred thousand dollars if the application has been approved by the director.

(6) The committee shall fix the terms and rates pertaining to its loans.

(7) Should there be more demand for loans than funds available for lending, the committee shall provide loans for those projects which will lead to the greatest amount of employment or benefit to a community. In determining the "greatest amount of employment or benefit" the committee shall also consider the employment which would be saved by its loan and the benefit relative to the community, not just the total number of new jobs or jobs saved.

(8) To the extent permitted under federal law the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the Washington state development loan fund created under this chapter. Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applications where the applicants on their own volition make commitments to provide for the transfer.

(9) The committee shall not approve any application to finance or help finance a shopping mall.

(10) The committee shall make at least eighty percent of the appropriated funds available to projects located in distressed areas, and may make up to twenty percent available to projects located in areas not designated as distressed. The committee shall not make funds available to projects located in areas not designated as distressed if the fund's net worth is less than seven million one hundred thousand dollars.

(11) If an objection is raised to a project on the basis of unfair business competition, the committee shall evaluate the potential impact of a project on similar businesses located in the local market area. A grant may be denied by the committee if a project is not likely to result in a net increase in employment within a local market area.

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

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

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

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

(3) Subject to funding for this subsection, the department shall contract with agents located in foreign countries to find purchasers for products produced in timber-dependent communities and to assist in the completion of the export transaction by ensuring requirements and customs of the foreign country involved are complied with. The department shall seek the assistance of other state agencies, such as the department of agriculture, when appropriate.

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

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

Sec. 9. RCW 82.62.030 and 1986 c 116 s 17 are each amended to read as follows:

B&O TAX CREDITS FOR NEW MANUFACTURING JOBS. (1) A person shall be allowed a credit against the tax due under chapter 82.04 RCW of an amount equal to ((~~one~~)) three thousand dollars for each qualified employment position directly created in an eligible business project.

(2) The department shall keep a running total of all credits granted under this chapter during each fiscal biennium. The department shall not allow any credits which would cause the tabulation for a biennium to exceed fifteen million dollars. If all or part of an application for credit is disallowed under this subsection, the disallowed portion shall be carried over for approval the next biennium. However, the applicant's carryover into the next biennium is only permitted if the tabulation for the next biennium does not exceed fifteen million dollars as of the date on which the department has disallowed the application.

(3) No recipient is eligible for tax credits in excess of three hundred thousand dollars.

(4) No recipient may use the tax credits to decertify a union or to displace existing jobs in any community in the state.

(5) No recipient may receive a tax credit on taxes which have not been paid during the taxable year.

NEW SECTION. Sec. 10. REPEAL EXPIRATION OF B&O TAX CREDITS. RCW 82.62.040 and 1988 c 41 s 4 & 1986 c 116 s 22 are each repealed.

NEW SECTION. Sec. 11. REPEAL EXPIRATION OF SALES TAX DEFERRALS. RCW 82.60.050 and 1988 c 41 s 5 & 1985 c 232 s 10 are each repealed.

Sec. 12. RCW 43.17.065 and 1990 1st ex.s. c 17 s 77 are each amended to read as follows:

EXPEDITING PERMITS IN TIMBER-DEPENDENT COMMUNITIES. (1) Where power is vested in a department to issue permits, licenses, certifications, contracts, grants, or otherwise authorize action on the part of individuals, businesses, local governments, or public or private organizations, such power shall be exercised in an expeditious manner. All departments with such power shall cooperate with officials of the business assistance center of the department of trade and economic development, and any other state officials, when such officials request timely action on the part of the issuing department.

(2)(a) The legislature finds that timber-dependent communities and distressed counties, as defined in RCW 43.160.020, are located predominately in areas characterized by little or no growth. These areas impact the environment less than areas of high growth. These timber-dependent communities and distressed counties need sites for industrial and economic development with infrastructure in place as soon as possible to help revitalize their local economies.

(b) Any state agency in which subsection (1) of this section applies shall adopt, by August 1, 1991, an expedited process for the fast and efficient processing of any permits or other actions that are necessary for economic development in timber-dependent communities and distressed counties.

NEW SECTION. Sec. 13. A new section is added to chapter 50.08 RCW to read as follows:

TRAINING AND RETRAINING SERVICES. (1) The employment security department shall establish a program for the provision of training and access to related services for workers in timber or wood products industries who have been dislocated from firms in timber-dependent communities.

(2) 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 timber-dependent communities. For the purpose of this section "dislocated worker" means any worker from a timber-dependent community who:

(a) Has been terminated or laid off, or received a notice of termination or lay-off from employment and is eligible for or has exhausted his or her entitlement to benefits under this title;

(b) Has been terminated as a result of any permanent plant closure; (c) Is long-term unemployed and is unlikely to return to employment in the individual's principal occupation or industry; or

(d) Is a self-employed individual who has been displaced due to economic conditions related to the reduction in timber harvests. Training and retraining assistance shall be designed to contribute to the diversification of the economies of timber-dependent communities or to relieve economic dislocation and distress in the timber-dependent communities resulting from the sudden and severe loss of local sources of employment. The employment security department shall enter into interagency agreements with other agencies to assist the department in providing training and retraining services.

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

(4) 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 timber-dependent communities.

(5) Training and retraining assistance provided under chapter 43.168 RCW and this title shall include but 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, especially those that apply to wood processing; and recreational and tourism development. The department shall provide a self-employment entrepreneurship development program in timber-dependent communities.

(6) The employment security department shall subcontract with local organizations, institutions, or agencies to provide expanded services to dislocated workers, older unemployed workers, and the long-term unemployed. 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 foreclosure and utilities problems counseling; drug and alcohol abuse services; and medical services.

(7) The employment security department shall coordinate the services provided in this section with all other services provided by the department and with the other assistance efforts undertaken by state and local government agencies on behalf of timber-dependent communities.

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

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

(10) The department shall make rules necessary to carry out this section, including prioritizing limited resources based on greatest need and greatest impact from the reduction in the timber harvest.

NEW SECTION. Sec. 14. A new section is added to chapter 43.06 RCW to read as follows:

TIMBER COMMUNITIES ASSISTANCE FUND. There is hereby created in the state treasury the timber communities assistance fund. The timber communities assistance fund shall be administered by the governor. The fund shall provide grants to state agencies, local governments, or associate development organizations to address gaps in the public services provided to assist timber-dependent communities or to address unusual or emergency situations. The governor may adopt rules to carry out this section, including prioritizing applications based on greatest need and impact.

NEW SECTION. Sec. 15. A new section is added to chapter 43.06 RCW to read as follows:

COORDINATION OF STATE AND LOCAL SERVICES. (1) The governor, or the governor's designee, shall coordinate state assistance provided to timber-dependent communities to ensure state services are delivered effectively and efficiently with minimal duplication and maximum local access.

(2) Associate development organizations located in timber-dependent communities shall assist the governor in coordinating the delivery of state services locally. The associate development organization, as the primary local coordinating organization for state and local economic development services, shall provide resource and referral services to ensure state and local services are delivered effectively and efficiently with minimal duplication and maximum local access.

NEW SECTION. Sec. 16. APPROPRIATION--INFRASTRUCTURE (1) There is hereby appropriated for the biennium ending June 30, 1993, fourteen million dollars to the public facilities construction loan revolving account, of which eight million dollars is from the general fund and six million dollars is from the general fund as a capital budget expenditure. Two million dollars of this amount shall be solely for ports located in timber-dependent communities in which logs accounted for forty percent or more of total port exports for facilities used for the export of finished products.

(2) There is hereby appropriated for the biennium ending June 30, 1993, five million dollars to the department of community development from the general fund to switch with federal community development block grant funds and deposit the federal funds in the development loan fund. One million dollars of the transferred funds shall be deposited in the coastal development fund administered by the department of community development.

NEW SECTION. Sec. 17. APPROPRIATION--FROM THE 1991 OPERATING BUDGET. (1) There is hereby appropriated for the biennium ending June 30, 1993, an additional one hundred fifty thousand dollars from the general fund to the department of trade and economic development for the marketplace program to assist the export of products from timber-dependent communities to urban areas through import substitution and rural-urban links.

(2) There is hereby appropriated for the biennium ending June 30, 1993, an additional two hundred thousand dollars from the general fund to the department of trade and economic development to focus business and job retention efforts in timber-dependent communities.

(3) There is hereby appropriated for the biennium ending June 30, 1993, an additional two hundred thousand dollars from the general fund to the department of trade and economic development to contract with the small business export finance assistance center to provide export financing assistance to businesses in timber-dependent communities under section 8(2)(a) of this act.

(4) There is hereby appropriated for the biennium ending June 30, 1993, two hundred fifty thousand dollars in nonstate funds to the Washington economic development finance authority for a reserve fund to provide financing for the export of products from timber-dependent communities under section 8(2)(b) of this act.

(5) There is hereby appropriated for the biennium ending June 30, 1993, five hundred thousand dollars from the general fund to the department of trade and economic development to provide five agents in foreign countries under section 8(3) of this act.

(6) There is hereby appropriated for the biennium ending June 30, 1993, one million five hundred thousand dollars from the general fund for the timber community assistance fund created in section 14 of this act.

(7) There is hereby appropriated for the biennium ending June 30 1993, an additional three hundred seventy-five thousand dollars from the general fund to the department of trade and economic development to contract with associate development organizations in timber-dependent communities to provide additional coordination and resources under section 15(2) of this act. Associate development organizations shall provide representation on their board of directors of cities, counties, businesses, and community-based public service organizations.

(8) There is appropriated for the biennium ending June 30, 1993, two million five hundred thousand dollars from the general fund to the employment security department for the purposes of section 13 of this act; five hundred thousand dollars is for the self-employment entrepreneurship development program in section 13(5) of this act.

(9) There is hereby appropriated for the biennium ending June 30, 1993, two hundred fifty thousand dollars from the general fund to the department of trade and economic development to contract with the small business development center to provide services through the Grays Harbor Community College.

NEW SECTION. Sec. 18. APPROPRIATION--GOVERNOR'S BUDGET. (1) There is appropriated for the biennium ending June 30, 1991, from the general fund:

(a) Two million dollars to the department of trade and economic development for the forest product division's value-added programs;

(b) Nine hundred seventy thousand dollars to the department of community development for its timber assistance program, grants to timber-dependent communities, and community development finance technical assistance;

(c) Seventy thousand dollars to the department of community development for enhancements to reemployment centers in timber-dependent communities; and

(d) Five hundred thousand dollars to the employment security department for a self-employment and enterprise development (SEED) program in timber-dependent communities.

(2) There is appropriated for the biennium ending June 30, 1991, from the general fund as a capital budget expenditure:

(a) Two million dollars to the development loan fund for timber-dependent communities;

(b) Two million dollars for CERB for timber-dependent communities;

(3) There is dedicated seven million dollars from the public works trust fund for speculative infrastructure development in timber-dependent communities.

NEW SECTION. Sec. 19. TITLE. This act may be referred to as "the omnibus timber community assistance act."

NEW SECTION. Sec. 20. SECTION HEADINGS ARE NOT LAW. Section headings as used in this act do not constitute any part of the law.

NEW SECTION. Sec. 21. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 22. Section 18 of this act is 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.